Healthcare Organization Essay

Healthcare organizations are now stepping up their strategies in improving their programs and systems. Business and marketing are collaborated to boost resources which are expected to serve as a benefit to their clients. Considering the fact that HCOs consist of social factors and societal influences, it is vital for healthcare practitioners and most importantly the management to build a stronger foundation and forecast plan for their courses of action. The advent of technology and the tight competition in the market may apparently positively of negatively impact HCOs. Hence, given the appropriate concepts and strategies armed with proper implementation of designed concepts, any HCO is most likely to survive (Longman, 2005). Simple concepts and theories of marketing and organizational behavior will help HCOs in circumstances like risk management, conflicts, human resources and other forms of the like. Analysis Communication is one of the most important fields in any organization. Given the fact that an organization is composed of individuals with varied characteristics and personalities, it is vital for these beings to have a common channel that will serve as a bridge in closing deals and team participations. Technology is perhaps the focal element in creating a robust and efficient means for communication (Mascarenhas, 1995). HCO may take advantage of this communication-related improvement by acquiring the most updated and most effective tools in running the organization. The most recent sparks of idea which proved to be of great help to healthcare practitioners are e-Prescription and e-Documentation. It paved a way for HCO to make their services become more available not only to clients within their vicinity but globally. Through the help of the internet, they are able to endorse their products and their services with just a click away. E-Documentation has helped every HCO evidently because it helped in the documentation of patient records and made these files available in a secure database which enabled patients to track their health-related records hassle-free. These developments in communication have even made HCOs all over the world collaborate and communicate efficiently and more rapidly. Earning them the all the time that they need to conduct business. As for the case of the Veterans Health Administration, the entity is fortunate enough to receive help from the state. Even though the benefits that the latter receives continue to be criticized, their organizational, planning and marketing strategy proves to be surfacing in high grounds. They see to it that their programs are not only available and accessible to a popular few but for those who are qualified for their services. Thus, they would need a little improvement with regard to how they generate resources for their facilities. Especially since they are dealing with a continuum of patients that will grow each year, they should employ updated amenities and hear the concerns of their clients. They should make their managerial actions transparent to the public and employ activities that will drive investors to donate for their cause. Conclusions and further remarks Having technology commence in a swift sense is an opportunity for healthcare organizations to make the most out of their capacities.  Citing the problem on VHA, they lack in communication efficiency which in essence should be improved so as to keep their clients’ trust on their ability in healthcare. Healthcare organizations even so need to integrate organizational strategies especially since they are deal with the society (Karlawish, Fox, & Pearlman, 2002). Financial stability is also important which is why they should learn how to implement economy-inclined policies and strategies for their philanthropically tending organization.

Information Technology Management Essay

Information and communication technologies play critical roles in sustaining an organizations growth and profitability (Galliers & Leidner, 2003). If managed properly, investments in information and communication technologies can improve efficiency and effectiveness of business processes and an organization’s competitive posture in the market. Proper management of information and communication technologies investments can also enrich people’s lives in the organization improving job satisfaction and productivity. Galliers & Leidner, 2003). Success in managing information and communication investments depend largely on exercising good management practices like human capital management, staff training management, information technology architecture management and software management (Galliers & Leidner, 2003). However, with all the potential benefits of investments in information and communication projects, they can be risky, costly and unproductive if not managed properly (Galliers & Leidner, 2003). Organizations should therefore strive to attract and retain information technology personnel that are qualified and talented to ensure the success of information and technology investments. This is further complicated by a tight information and technology labor market where qualified information and technology personnel enjoy high mobility. Discussion The position I am required to design is a leadership position intended to provide technical direction and guide an organization in implementing strategic information and communication projects (Food and Agriculture organization of the United Nations, 2010). The occupant of this position is expected to be able to handle a wide range of duties and responsibilities. He or she should be able to use his/ her exposure, technical experience and business knowledge in developing an organization’s technical plans and to advise senior management on information technology strategies, standards and governance (Galliers & Leidner, 2003). In addition he or she will be expected to monitor the industry’s trends in information technology and respond appropriately by formulating long term information technology strategies capable of improving an organization’s competitiveness. The senior information technology manager will work under the general supervision of the chief executive officer. In line with work plans and resource allocation coordination provided by the chief executive officer, he or she will be responsible for effective planning, supervision and delivery of assigned functions that fall within an information and communication department (Food and Agriculture organization of the United Nations, 2010) so as to ensure that an organization’s requirements for information systems and information technology are effectively and efficiently met. He will also be responsibility for ensuring that an organization’s computer systems have the capacity to meet the business needs of an organization by either upgrading existing systems or developing new systems (Info Tech Employment, 2008). Additional functions will include participation in planning, coordinating and setting policies for the development and implementation of an organization’s information technology strategies, supporting standards, procedures and practices, supervising and coordinating works of external firms in special projects or functions to ensure quality and timely delivery, providing consultant services in regards to procurement of new information technology equipments and computer systems, supervising members of staff assigned to special projects or functions and coordinating their training and development to ensure that they are up to the tasks and finally, developing and monitoring key performance indicators of assigned functions within an information technology department (Food and Agriculture organization of the United Nations, 2010). The senior information technology manager is expected to have an excellent working knowledge in information technology and a commitment to keep up to dat e with the latest development (Galliers & Leidner, 2003). He should demonstrate people’s management skills with an ability to motivate staff members, provide a cooperative and productive work environment, manage resources effectively to achieve objectives, organize and coordinate work in the department and explain technical issues clearly (Info Tech Employment, 2008). He or she will be tasked with leading changes that fall within the information technology department, hence must be able to integrate organizational and departmental goals, priorities and values. In addition, he or she should have experience in managing large scale projects in information systems and technology (Food and Agriculture organization of the United Nations, 2010). To fulfill these expectations, a university degree in computer science or related fields and appropriate professional certifications are mandatory. Moreover, the candidate of choice should have at least five years management experience in information technology. He should demonstrate experience with standard software applications and data manipulation, analysis and interpretation tools (Food and Agriculture organization of the United Nations, 2010). Conclusion Information technology investments can be very beneficial to an organization as a whole if they are managed properly. Organizations should therefore strive to hire and retain qualified, experienced and talented information technology managers. This is not easy given the current information technology labor market. The labor market is characterized by high mobility of qualified labor and organizations must put in place effective measures to ensure they hire the right people. One of the measures an organization should take is defining clear structures and responsibilities of all employees in the information technology department. The senior information technology manager will provide technical direction and guidance to the organization in implementing strategic information technology projects. He will be responsible for ensuring effective and efficient management of resources within the information technology department.

Illegal Immigration Speech Essay

Give us your tired, your poor, your huddled masses yearning to breathe free. These words are engraved on the Statue of Liberty that was assembled in 1886. The statue was meant to be a beacon of hope for all immigrants that enter the U.S. Do we still agree with what those words say? I’m not against all of the immigrants who want to start a better life here by becoming legal citizens. I’m against the millions of illegal immigrants that come to the U.S. and cause trouble and make things harder for the legal immigrants that are already here. Illegal immigrants have long been a problem in the United States, and there have always been so many controversies about illegal immigration Today, I would like to inform you about the serious problems illegal immigration could cause. First, by giving you all the facts, and by explaining how illegal immigration, if continued, will affect our lives. Transition: I’ll start by telling you about some illegal immigration facts and its history. Body 1 Americans have always been realistic about illegal immigration, but if it continues at the rate it is, we will be in trouble. a The biggest issue is the fact that the U.S. is in the middle of another great wave of illegal immigration. b In 2000, the US Census Bureau puts the estimate of illegal immigrants at 8.7million. Since then, United States immigration officials have said the number has grown by as much as 500,000 a year. c If immigration continues at current levels, the nation’s population will increase from 301 million today to 468 million in 2060 – a 167 million, or 56% increase. 2 Did you know that the country is spending massive amount of money on illegal immigrants each year? a According to illegalimmigrationstatistics.org Illegal immigrants costs the U.S. $130 billion each year b And each year we’re paying $1117 each year to support the illegal immigrants. 3 Illegal immigrants are a great danger to America. According to the Manhattan Institute for Policy Research, more than 50% of illegal immigrants that come to America break laws, steal, rape, murder, form and join gangs, sell drugs and engage in the trade of illegal weapons. a Statistics show that illegal immigrants cost the federal prison and court system over 1 billion dollars each year. b 95% of outstanding warrants for homicide in Los Angeles are for illegal immigrants Transition : Transition: If proper steps are taken to reduce illegal immigration, we will see a great  improvement in our society. 4 Most Americans know our basic laws regarding illegal immigration. It is illegal to enter the United States without permission. The first time an illegal immigrant is caught in the US it is a misdemeanor civil offense. This is because we want to be able to quickly return illegal aliens back to where they come from, when they are caught at the border without the rigors of a jury trial. a After the first offense, being caught a second time is a felony! b It is also against the law to overstay a visa issued by the US Government and illegal for an employer to knowingly hire illegal immigrants. Transition. With the government working together to reduce illegal immigration, we are bound to see improvement in our county. Conclusion If illegal immigration can be stopped, many people all over the country will receive benefits. a The U.S. will save money if we don’t have to spend it on care for illegal immigrants, and then the U.S can use that money for better causes, like more money for education. b The U.S. will become a safer place for us to live in, without the increased crime rates illegal immigrants caused. Transition: Now that you have a better understanding of the harms that illegal immigration causes, here are a few things you can do. 1. Read the paper and watch the news. New developments are occurring everyday in our society; know what is going on in the world around you. 2. Spread it out, talk to people about this, have discussions with them. 3. Register to vote. What’s the first thing you do when you turn 16? You go out and get your driver’s license. When you turn 18, make registering to vote your first priority. 4. I’ve explained to you the facts of immigration and how, if continued, will affect your life as an individual. So now that you are informed. Have a say in your future and stand up for what you believe in. It all has to do with how you want to live your life.

Employee Voice Mechanisms and Their Outcome Essay

Employee Voice Mechanisms and Their Outcome - Essay Example The paper tells that employee participation is the extent to which the employees are involved in the decisions of the company. This might include joint meetings, bargaining as a group and representation of workers on the board, but all the power lies with the management only. Therefore Rose comments that Employee voice covers, "a wide range of processes and structures which allow and even empower employees, directly or indirectly, to contribute to decision making within the organization". Further, into it, the discussion will cover aspects of voice mechanism in detail and how the current methods of voice have changed. Also, the various outcomes of such voice mechanisms for the workers will be dealt with. Finally, Legal changes and methods of improvement will also be discussed. In the early part of the twentieth century, the management of the working class by F.W. Taylor took a very controlled approach, particularly in the field where the workers had to be divided into their specializ ations. To keep a check on the functioning’s of these employees the management engaged a number of hierarchical roles of authority so as to maintain discipline, order, efficiency and to inculcate within them a sense of duty and not to oppose the management in its decisions. Increased competition and technological complicacies require higher skills and a commitment strategy. So accordingly nowadays, the workforce jobs are designed to include the functions of the firm and include severe of planning. The focus shifted from self to the performance of the team, that is, shared goals and technical know how. Standards need to be improved by and by and the company considers the efficiency of the group. Also very important is the matter of giving the employees an assurance or a security that they would be heard on various issues.

Managing entrepreneurially Essay Example | Topics and Well Written Essays - 1500 words

Managing entrepreneurially - Essay Example In the use of entrepreneurship skills in management, maximization on the available resources is usually the highest priority to increase the level of output in a firm, without incurring additional costs both financially and through labor. As per the definition of entrepreneurial management, an entrepreneur is a good manager who assumes all the risks of a business by taking control of the company, as well as its goals and direction. The entrepreneurship model of management is made up of six different styles that are generated from a combination of one or more styles, but all aim at the earlier mentioned goals of effectiveness and independence. The first style is the classic and is more of a traditional entrepreneurial management style based on monitoring and supervision (Roslan et al 91). With this in mind, all hired personnel are monitored and supervised on a personal level, where personal refers to the manager taking the role of supervisor. This style also focuses on lack of delegat ion of responsibilities in the firm all thanks to the personal nature or attachment of the manager to the firm in taking the lead to oversee everything personally. The down side to this style lies in the failure to delegate duties and responsibilities due to the neurotic urge to do everything by oneself, which is more of a negative way to run a firm. The style is reformed by defining that which can be delegated and that which cannot, in order to create a convention on that which is right and wrong in running of the firm in relation to effectiveness. However, due to the common belief that this style uses team management, businesses often become too complicated to be run by the entrepreneur using this style; thus the inclusion of managers from outside to run the business. Still, due to the lack of trust in the delegation of responsibilities to subordinates and other members of staff, there is usually conflict in the running of the firm, as the leader needs to be in control. This is co ncerning running and supervising everything personally, which leads to over regulation what the managers are supposed t do for the development of the firm. As a result, it disillusions the subordinates and the firm is left without members of staff since they cannot handle the occurrence of such events on a regular basis as it appears disrespectful to the members of staff by subjecting them to some of the responsibilities that one cannot handle on his or her own. To correct the situation of the classic style of leadership with its down sides, to is crucial to identify the role of one’s leadership in relation to one’s ability to delegate. Therefore, when one cannot delegate effectively, it is crucial to keep the complexity of the business to a minimum in order to eliminate the need for managers and disillusionment of subordinates. The second style is the coordinator, which is an alternative to the classic method in that it takes the recommendations of reforming the class ic to mind. A firm can be easily run with a very limited number of employees together with the leader, where the role of the leader revolves around organization. In this case, entrepreneurial management involves the leader verifying that everything is done in the form and that the firm is

Aspect Hypothesis in Relation to Languages Essay

Aspect Hypothesis in Relation to Languages - Essay Example In addition to this, the types and sub types of aspect hypothesis will be established and for each, several examples of inherent, as well as, grammatical aspects in English and Arabic will be provided. A further explanation will be offered to clarify on why the chosen examples, in addition to, how these examples relate to each other.Considering the literal Arabic (Ø §Ã™â€žÃ™ Ã˜ µÃ˜ ­Ã™â€°, al-Fusha), the research of the findings of the research conducted by Barber indicates that the verb is constituted by two aspect tenses (532). These constituents include both the perfective as well as the imperfective. However, there are quite a number of controversial disagreements among the grammarians and, as such, they do not agree as to whether a distinction should be viewed as distinction in aspect or tense or even both. In English, what is considered as the past verb ((Ù Ã˜ ¹Ã™â€ž Ù…Ø §Ã˜ ¶Ã™Å , fi'l maadiy) is used to denote a particular verb (Ø ­Ã˜ ¯Ã˜ «, hadath), which was comple ted a long time ago or even in the near past (Barber 536). However, it indicates nothing regarding the relation of this event that took place in the past to the present status. One of the best examples to illustrate this is the phrase† he arrived† (ÙˆØ µÃ™â€ž", wasala). The phrase was a clear indication of the arrival occurring in the past (Ayres 29). However, it does not provide any sort of information regarding the present status of the person who has arrived (Altman 589). It may be that the person stayed around or he turned and left. In addition to this, the phrase does not indicate.

CCTV argument supporting the idea Essay Example | Topics and Well Written Essays - 1500 words

CCTV argument supporting the idea - Essay Example Undoubtedly, the expansion of globalisation, rise in societal complexities and new forms of criminal activities have accumulatively given rise to this need. Increasing urbanisation has exacerbated the trend towards privacy, leading to the essentiality of verifying identity. The growing frequency of crime has further emerged as one of the major reasons for both international corporations and government to increase video surveillance through CCTV (Ratcliffe & Taniguchi, 2006). Emphasising these aspects, the aim of this essay is to highlight problems arising due to the increasing number of CCTV cameras in the modern society and develop rational understanding in this regard. Need of CCTV Cameras With the advent of globalisation in the modern world, keeping track of regular activities performed within a society has become very essential for the government of any country to ensure national security. CCTVs are used not only in security purposes but also in research where people are continuo usly observed to understand human behaviour in different situations and circumstances. Increased mobility both locally and internationally has further given rise to a stranger society, where social control based on cognitive understanding matters significantly. Risk management has also become the leading mode of reasoning for both international organisations and government organisations, which has further increased the use of CCTV cameras. In the area of criminal justice, new ideas have given way to more humble defensive responses that focus on opportunity reduction, situational avoidance and risk management wherein CCTV can be regarded as a vital part of the trend towards the effective identification of punishing offenders, managing prisoners and handling rehabilitation centres. There are records that show CCTV is more effective in some context than other technology gadgets in identifying crimes. Reports published on the effectiveness of using CCTV have revealed that it had a signi ficant impact on decreasing vehicle crimes, robbery and theft. However, no such significant impact of using CCTV was seen in case of violence or felony (Damjanovski, 2005). Researches further depict that identification of the real offender is possible through the CCTV cameras, which in turn plays a vital role as evidence in any criminal prosecution. Though proper evidence has not yet been obtained in the violence sector, the cameras have been observed to record suspicious behaviours and therefore play a pivotal role in obstructing the conduct of any probable crime to ensure security of a given population. However, the effectiveness of CCTV is often affirmed as subjected to constant monitoring, which could only be done in a reliable manner by a computer programme that searches for unusual activities and highlights it for further investigation. Notably, to increase efficiencies in identifying crime and protecting the society with the assistance of CCTV, innovative software programmes, known as Artificial Intelligence Systems (AIS) are being developed, which can predict the occurrence of crime quite effectively (Ulkemen, 2009). For instance, in a recent crime activity of the â€Å"Boston Marathon Bombing†, the CCTV installed in a departmental store helped the FBI team in identifying the concerned perpetrator of the crime. CCTV has also shown significant contribution in controlling hacking

Global Economy Essay Example | Topics and Well Written Essays - 1000 words

Global Economy - Essay Example support by the International Monetary is a debt relief to developing nations that result to an increased flow of direct financial investments and technology by the private sectors. Globalization is viewed as key force that would promote worldwide economic development while unrestricted regime trade serves to increase the inequality between developing and developed nations. When there is globalized trade, the developing countries are able to acquire skilled labor and modern technology that will aid in economic growth by dealing with problems such as unskilled labor and poverty. Integral of International Monetary and trade regimes in supporting a globalized capitalist economy ensured that consumption and production were not confined within national borders any longer. It also private sectors to increase production since good and services had gained local and foreign market. Globalization of capitalist economy made the developed countries experience so-called ’Golden Age of Capit alism’ between 1953- 1973 as per capital income growth rate in Europe rose from 1.3% to 4.1% while that of U.S rose from 1.8% to 2.5%. They had a spectacular economic growth performance (Jaffe 367). Exchange rate regimes are the main regime managed by the international monetary and world trade organization. The International Monetary Fund has classified exchange rate regimes on the bases of the degree of flexibility of the arrangement or a formal or informal commitment to a given path of exchange rate into eight categories. Exchange Arrangement with No Separate Legal Tender, currency board arrangements, Conventional Fixed Pegs Arrangements, Pegged Exchange Rates within Horizontal Bands, Crawling Pegs, Exchange Rate within Crawling Bands, Managed Floating with No Predetermined Path for the Exchange and Independent Floating. This foreign exchange regime emphasizes the implications on the exchange rate regimes to the independence of monetary policy. However, monetary policy does not

Strategic Change Management in Larnaca General Hospital Assignment

Strategic Change Management in Larnaca General Hospital - Assignment Example The hospital was established in the year 1984 (Larnaca General Hospital, 2012). The hospital has been built upon the land which belongs to the â€Å"Church Committee of the Monastery of St. George Kontos†. Church committee donated the land to hospital authority during early 1980’s. Ministry of Health provided a donation to hospital authority in order to build the healthcare unit. The hospital was opened on 24th April 1985 by Spyros Kyprianou (former president of Cyprus during that time). Funding Situation Various nonprofit organizations such as Anti-Cancer Society of Cyprus and Cyprus Association of Cancer Patients and Ministry of Health will provide a fund for breast health center of Larnaca general hospital. There will not be any other stakeholders except mentioned nonprofit organizations. Mission Statement In accordance with the Directorate of Nursing Services the hospital strives for improving nursing care continuously. According to the directorate, they need constr uctive cooperation as well as participation from nurses during difficult and complex healthcare situation in order to achieve the mission objective. Change Situation Breast Health Center Breast cancer has emerged as a pernicious disease for women in last fifteen years and statistics show that in the country of Cyprus number of women affected by breast cancer has been increased sharply in recent times. There are three major cancer prevention initiatives such as Anti-Cancer society, Cyprus Association of Cancer Patients and Friends are present in the country. In the district of Larnaca, there are no special centers for observing initial symptoms of breast cancer although it is a way to prevent the disease in early stages. It is very hard to find accurate and valid healthcare data of the Cypriot population due to strict government rules. A report published by CYSTAT or Statistical Service of Cyprus shows that a number of women dying due to breast cancer are relatively high in contrast to other diseases. The statistical report shows that more than 32% of women are suffering from breast cancers. The following diagram can be used in order to understand the severity of breast cancer in the country. (Source: Golna et al., 2004) The Larnaca General Hospital needs to establish breast health center in order to reduce stress and nervousness associated with preliminary stages of breast cancer. The study shows that 1109 Cypriot women were diagnosed with breast cancer during the time period of 1999-2005. The study also shows that nearly 400 cases of breast cancer are reported by women while 90% of cases get registered by hospital officials. Although cancer patients receive treatment from Bank of Cyprus Oncology Centre of Nicosia very few people in Larnaca district have the access to such facilities.

Intellectual's in chekov's work Essay Example | Topics and Well Written Essays - 3250 words

Intellectual's in chekov's work - Essay Example He is modest and quiet, just like a girl!... He's simply wonderful." The memoirs f Maxim Gorky give us a modest and gentle and saintly Chekhov, too good to be true. In fact, not altogether true, according to Donald Rayfield's recent biography f Chekhov. Rayfield gives us the well-known facts--the boy who lived in poverty, whose father was tyrannical, who became the breadwinner f his extended family by working at two vocations (doctor and writer), who at the age f 24 began spitting blood, the first sign f the tuberculosis that would claim his life 20 years later, the doctor who treated poor peasants without receiving pay, who visited penal colonies to heal or console plague victims, the famous writer f short stories and plays--but he also tells us f Chekhov's callousness when he tried to protect his privacy and f Chekhov's many sexual relationships with women (what for many was a surprising finding about the man who had, according to V.S. Pritchett, an unusually low "sexual temperature"). The Rayfield biography gives us a truer, more balanced portrait f a complex man but it doesn't make cool the warm feelings we have toward the writer whose compassion informs his art and whose plays--complex, ambiguous, difficult--continue to be pop ular. What prods me to write about Chekhov is the American Repertory Theater's production, in Cambridge, Massachusetts, f Ivanov, which I saw in January, 2000. Ivanov (1887) is Chekhov's first full-length play--he had already written many oneact farces--written and produced before the four plays that give Chekhov his importance--The Sea Gull (1898), Uncle Vanya (1899), Three Sisters (1901), and The Cherry Orchard (1904). Four plays is a surprisingly modest number f plays on which to sustain so high a reputation; obviously, it's enough. Chekhov worked very hard at his playwriting, which, unlike his writing f short stories, did not come naturally to him. His notebooks and letters are filled with remarks on his struggle. A playful but accurate indication f his attitude toward the two kinds f writing in his comment: "Narrative is my legal wife and drama a flamboyant, rowdy, impudent, exhausting mistress." (This is a variation f his much-quoted statement, "Medicine is my legal wife and literat ure is my mistress.") Chekhov said he didn't recall a single tale f his that took him more than a day to write; he wrote short stories, he said, with haste and carelessness. His mistress, it seems, gave him more trouble and demanded more attention. My focus is Chekhov's mistress. Ivanov was the A.R.T. debut f one f Russia's leading directors, Yuri Yeremin, who is Artistic Director f the Moscow Pushkin Theatre. Because Yeremin is a disciple f the Stanislavsky method f rehearsal and acting, and because Stanislavsky's Moscow Art Theatre was the company that gave life, and took life, from Chekhov's plays, my expectations were high. They were disappointed, although I must admit I never saw a praiseworthy production f the play. Ivanov gave Chekhov much trouble in the writing; he spent many years revising it. During the revising he made many comments about it to his friends, itself a painful experience for a modest man who rarely discussed his work. From these comments we learn that Chekhov wrote the play to satirize a Russian type, whose existential sickness was a Russian disease. Its plot is conventional and melodramatic, what the Russian

Planning and Design Essay Example | Topics and Well Written Essays - 2000 words

Planning and Design - Essay Example It enables to prepare an efficient schedule for completing the project within a specified time (Public Procurement Guide, 2008). Resource Planning In this stage, the management should be focused on determining required materials or resources, laborers and tools that are required in each step of the project. This step would be useful for making proper allocation of available resources in required places. It would also facilitate to avoid any improper allocation and wastage of valuable resources so that the project completes in time (Public Procurement Guide, 2008). Cost Planning Preparation of plan with respect to allocation and use of cost is one of the vital parts for the management in the project plan. The stage comprises proper identification of required costs including internal and external costs. It also enables to make assessment of the amount of time required to complete the project, so estimation can be made regarding the budget of the project and whether the project would re quire over-budgeting or not (Public Procurement Guide, 2008). b. ... With this concern, Spencer Moneysworth consulted with Expert Industrial Developers (EID) regarding making an estimation of cash flow chart for the project. However, the EID provided an estimated plan of USD20 million with a schedule of 18 months for the project. However, the intention for Woody 2000 project was to prepare the project within USD17 million by including one million for first and last month and USD1.4 million each within the rest 10 months during the project. Moreover, the cost planning of EID depicts an excessive use of capital along with making an estimation of longer schedule for the plan including professional services and construction works. With this concern, it can be said that there is a requirement for making evaluation of available alternatives in terms of accessible contractors that can provide lowest possible cost with efficient time schedule for the project. In the successive phases of the project, the aspect of proper time scheduling would be crucial as it can largely affect positive or negatively on the factors such as project budget, delay and accessibility of resources among others (Public Procurement Guide, 2008). c. Did the project plan explain how the project and any changes would be controlled? Should this be part of the plan? Give reasons. The overall plan for the Woody 2000 project explains the facet of bringing in changes by involving software as well as hardware to efficiently complete the project related tasks. By appointing Ian Leadbetter, a mechanical engineer, specialized in ‘programming semi automatic manufacturing machinery’, efficiency in the whole process of project schedule was desired to be brought. This aspect

Contribution in Religious Essay Example for Free

Contribution in Religious Essay ShÄ h WalÄ «ullÄ h was born in 1703, four years before the death of Mughal emperor Aurangzeb. His genealogy can be traced back to the family of Umar ibn al-Khattab. He received a structured education and spiritual instruction at the madrasa (religious school) established by his father, Shah Abd al-Rahim, at Delhi. Along with the Quran, he studied Arabic and Persian grammar and literature and the higher philosophical, theological, metaphysical, mystical and juridical texts. He graduated from the school when he was barely fifteen years old; in the same year, his father initiated him into the famous Naqshbandi order. He began his career as a teacher at the Madrasa-e-Rahimia under the tutelage of his father; after the death of the latter in 1719, Shah Waliullah became the head of the madrasa, teaching all the current sciences at the school for about twelve years. During the same period he continued his own studies, growing in stature as a teacher and attracting students to his circle. In 1731 he went to the Hijaz on a pilgrimage (Hajj) and stayed there for fourteen months studying Hadith and Fiqh under such distinguished scholars as Abu Tahir al-Kurdi al-Madani, Wafd Allah al-Makki, and Taj al-Din al-Qali. During this period he came into contact with people from all parts of the Muslim world and, thus, obtained first-hand information about the conditions then prevailing in the various Muslim countries. During this time, he also saw the forty-seven spiritual visions which form the subject matter of his famous mystical work Fuyud al-haramayn (Emanations or Spiritual Visions of Mecca and Medina). He returned to Delhi in 1733, where he spent the rest of his life in producing numerous works till his death in 1763 during the reign of Shah Alam II. The most important of Shah Waliullahs works is his á ¸ ¤ujjat AllÄ h al-BÄ ligha in which he made an attempt to present the teachings of Islam in a spirit of scientific objectivity. The range of his works include: economic, political, social, meta-physical, as well as purely theological aspects. Shah Waliullah married twice in his lifetime, first when he was 14 years old. He had a son and a daughter from his first marriage. He concluded the second marriage sometime after his return to India. He had four sons and a daughter from his second marriage. His historically significant contribution is that, when Marathas were expanding their area of control towards the Northwest of India, Shah Waliullah and some other Muslim leaders of India kept writing letters to Ahmad Shah Durrani,the Muslim ruler of Afghanistan, to keep him informed of the developments in India. Ahmad Shah Durrani was finally persuaded to return to India to confront the Marathas. Consequently, in 1761, in the decisive Battle of Panipat, Marathas were defeated by Ahmad Shah Durrani and his allied forces. Al-Irshad ila-Muhimmat-I-Ilm-al-Isnad (Arabic)- is about the scholars of Hejaz who taught Shah Waliullah. Izalat al-Khafa an Khilafat al- Khulfa (Persian) Al-Fauzul Kabir Fi Usoolu-Tafseer (Arabics) Atayyab al-naghm fi Madh-I-Saiyid al- Arab wal-Ajam (Arabic)- A collection of odes eulogizing the holy Prophet which speak of Shahs poetic talent and love towards Prophet. Altaf al-Quds (Persian) Deals with esoteric principles of mysticism. Al-Imdad-o-fi Maathir al-Ajdad (Persian)- A brochure giving Shah Waliullah’s genealogical table and containing brief notices about some of his ancestors. Al-Intibah-o-fi Salasil-il-Aulia Allah (Persian)- Gives the history and brief introduction of different mystic orders. Insan al-ain fi Mashikh al-Haeamyn (Persian) Al insaf-o-fi Bayan-I-Asbab al-Ikhtalaf (Arabic) Anfas aal Arifin (Persian) Al-Budur al-Bazigha (Arabic)- This work on theology employs philosophical terminology in discussing human nature and social behavior. Bawariq al-Wilayah (Persian)- The tract forms part of the Anfas al-Arifin in which the Shah has described the life and spiritual attainments of his father Shah Abdur Rahim. Tawil al-ahadith (Arabic)- It recount the stories of different prophets mentioned in the Quran in order to draw out lessons and rules of Shariah from the Quranic describtion. Tuhfatul Muwahhidin- It is a Persian tract explaining the creed of tauhid. Tarajim-o-Abwab al-Bukhari (Arabic)- It expounds the principles which would be found helpful in understanding certain difficult portions of the Bukhari. At-Tafhimat al-Ilahiyah (Arabic and Persian)- Its a mystical work, partly in Arabic and partly in Persian, giving the mystical experiences of Shah. Al-Juz al-Latif fi- Tarjumata al-Abd al- Dhayif(Persian) Hujjat Allah al-Baligha (Arabic)- The magnum opus of Shah has been discussed in the seventh section of this work. Husn al- Aqidah (Arabic)- The fundamental creed of Islam as accepted by the Ahli-I-Sunnat sect, has bee n expounded in this work in the light of Quran and Hadith. Al-Khair al-Kathir(Arabic)- This work on philosophy of religion elucidates the concept of marifat and wisdom of Divine Names, revelation etc. Ad-durrus Thamain fi-Mubashshiratil Nabi al-Amin (Arabic)- It is a collection of glad tidings the Shah and his ancestors had had from the holy Prophet. Diwan-o-Ashar (Arabic)- A collection of the Arabic verses of the Shah. Risalah- was written in reply to certain mystical issues raised by Shaikh Abdullah bin Abdul Baqi. Risalah Danishmandi (Persian) A valuable tract containing detailed directions in regard to methodology of teaching. Zahrawayn- A commentary on the Surat-ul-Baqarah and Imran. Surur al- Mahzun (Persia)- It is a concise Persian rendering of the Kitab Nur al-Uyun il-Amin al-Mamun a well-known biography of the holy Prophet. Sharh-o-Tarajim-I-Abwab-I-Sahih al-Bukhari (Arabic)- is an annotation on certain chapters of the Sahih of Bukhari. Shifa al-Qulub (Persian)- is a tract of mysticism. Shawariq al-Marifat (Persian)- a biography of the Shahs Uncle Shaikh Abdul Raza. Al-Atiyatus Samadiyah Fi Anfas Al-Muhammadiyah (Persian)- this small brochure contains a biographical sketch of the Shahs maternal grandfather Shaikh Muhammad Phulti. Iqd Al-Jid Fi-Aakham Al-Ijtihad Wat-Tajdid (Arabic) Fath-ur-Rahman (Persian)-a translation of the Quran. Fath-al-Kabir (Arabic)- A glossary of the intricate words of the Quran. In the 18th century, Islam in the Sub-continent was faced with menacing problems. Sectarian conflict, low moral tone of the society, poor understanding of the Holy Quran, and general ignorance of Islam were just some of the issues which gave rise to fear that political collapse would be accompanied by religious disintegration. This did not happen; rather an era of religious regeneration was inaugurated, which was due more than anything else to the activities of one man, Shah Wali Ullah. Early ages of Shah wali Ullah Shah Waliullah was born in the 21st of February. 1703 CE, in the town of Phulat in Muzaffarnagar, Uttar Pradesh, India. His father, Shah Abdur Rahman was a great scholar and a mystic. he named his boy Qutubuddin Ahmad. The name Shah Waliullah is given to him by people because Waliulla means close to God. So his complete name was Shah Waliullah Qutubuddin Ahmad. Education Training His father took special pain in the education and the training of his son. Shah Waliullah was introduced to Islamic education at the age of five and completed the recitation of the Qura’an by the age of sevenAt the special age of 15, Hazrat Shah Waliullah had completed his education and then became a disciple (mureed) of his father who gave him spiritual training. When he was 17, his father died, for 12 years he taught in the fashion of his father. Pilgrimage to Makkah In 1143 H.E. the 23 year old Shah Waliullah decided to perform the pilgrimage to Makkah. Despite the perils(Dangerous Journey) that lay on the journey; he reached the Mecca on 14 Dhul Qadha 1143 H.E. and performed the Hajj and then proceeded to Medina. There, he attended the discourses on Sahih Al Bukhari from Sheikh Abu Tahir Muhammad Bin Ibraheem Kurdi Madani. The Sheikh directed him in the study of the six Sahihs (Bukhari, Muslim, Tirmidhi, Abu Dawood, Nasa’ai, Ibn Ma’ajah), He returned to Makkah, performed the hajj again and learned the Muwatta Imam Maalik from Sheikh Wafadullah Maliki Makki, attended the discourses on Sahih Al Bukhari from Sheikh Tajuddin Hanafi Qalaei Makki for a few days and learned the six Sahihs from him. He was granted permission to teach all the books of hadith by Sheikh Tajuddin. After 14 months of stay in Arabia, two hajj pilgrimages and learning the books of hadith from the scholars of the holy cities, Shah Waliullah finally returned to India in early 1145 H.E. the journey home lasted six months and he reached Delhi on Friday 14 Rajab 1145 H.E. on reaching home, he started teaching again and writing until his death three decades later. OR Twice he performed the Hajj pilgrimage. He attained a certificate of Proficiency in Hadith from the famous scholar, Shaikh Abu Tahir Bin Ibrahim of Madina, when he was in Arabia, the marhatta turmoid was at its height and his friends advised Hazrat Shah Waliullah to stay in Arabia. As such he left Arabia in 1145 AH and reached Delhi on 14 Rajab 1145 AH. Work of Shah Wali Ullah On reaching Delhi, he devoted most of his time in writing books and to preaching in public meetings. The teaching activity was limited to the lessons of Hadith. The political and the moral degeneration of the Muslims had tremendous effects on the sensitive thinking mind of Hazrat Shah Waliullah. His famous book â€Å"Al-Tafheematul llahia† minutely pen points all the various defects, shortcomings and vices, which had taken roots in various sections of the Muslims. His aim, metaphorically speaking, was to destroy the rotten moral buildings and to reconstruct a new mansion over it. He bluntly wrote in one of his writings â€Å"I have arrived to destroy every old in region at present. Quran Translation into PersiAN LANGUAGE The most monumental task he performed was to translate the Quran from Arabic to Persian which was the language spoken by the Muslims at that time in India. His aim was that educated Muslims may have access to the Quran without depending on the scholars who had opposed his reformatory measures. The short sighted ullama gathered and wanted to kill him for his sin of translating the Quran from Arabic to Persian but he continued with his task till he completed it. This task was appreciated by Allah so much so that the Quran is translated to many languages. Hujatul Baligdh (Popular Book) Apart from the Holy Quran, Shah Waliullah also wrote authentic books on Hadith, the principles of Hadith, Tafseer and on mystical subjects. But the most popular book of â€Å"Hujatul Baligdh†. This book explains how Islam was found suitable for all races, cultures and people of the world and how successfully it solves social, moral, economic and political problems of human beings. Al Fauzul Kabeer Fee Usool .Al Fauzul Kabeer Fee Usool at Tafseer, a booklet in Persian that follows his Persian translation of the Quran. It contains the nucleus of the Quran, the rules for interpretation, and interpretations of the Quran by other famous scholars Analyzing his political thought, Iqbal states: The Prophetic method of teaching, according to Shah Waliullah is that, generally speaking, the law revealed by a prophet takes especial notice of the habits, ways and peculiarities of the people to whom he is specifically sent. The Prophet who aims at all-embracing principles, however, can neither reveal different peoples nor leave them to work out their own rules of conduct. His method is to train one particular people and to use it as a nucleus for the build up of a universal `Shariah. In doing so, he accentuates the principles underlying the social life of all mankind and applies them to concrete cases in the light of the specific habits of the people immediately before him. (Reconstruction of Religious Thought in Islam) Letters By Shah Wali Ullah He wrote open letters to:  · Mughal rulers, to give up their corrupt and inefficient practices.  · Soldiers, for forgetting to inculcate within themselves the spirit of Jihad.  · Artisans, workers and peasants, reminded them that on their labors the economic prosperity of the state depends.  · The Emperor, to teach a lesson to the Jats threatening the Mughal Empire and also wrote to him not to give jagirs to mansabdars, who were not loyal to the state.  · Masses, to be conscious of their duties and not to indulge in the accumulation of wealth. He wrote to Ahmad Shah Abdali to give up the life of ease, draw the sword and not to sheath it till the distinction is established between true faith and infidelity. His efforts resulted in Maratha debacle at the hands of Ahmad Shah Abdali and Najibud Daula in the third battle of Panipat in 1761 A.D. The times of Shah Waliullah Shah Waliullah lived during the times that can best be described as disastrous for the mughal dynasty in India. The descendants of the Mughal emperor Aurangzeb are alleged to have squandered the wealth amassed by their forefathers on entertainment, dance, music and wasteful constructions. The Shiites exercised significant influence on the court. The kingdom was reeling under the severe spells of droughts, poverty, hunger, hopelessness and purported indifference and cruelty at the hands of their rulers. The character of the people were alleged to have fallen to the lowest levels of civilised behavior. According to Hazrath Salman Nadwi: The sway of the Moghal Empire was only namesake, Muslims were engulfed in wrongful and unnecessary traditions, frauds and scoundrels had kidnapped the graves of the pious and became their custodians, the seminaries were disputing on the topics of philosophy and wisdom, religious edicts were being literally interpreted by jurists. Leave alone the common men; even scholars were ignorant of the meanings and teachings of the Qura’an, hadith and theology Service to Mankind After returning from Mecca and Medina, the miserable condition of Indian Muslims inspired him to improve their character, buck up their morale, inculcate the feeling of selflessness and love for their fellows. He overhauled the existing education system, separated the faith from unlawful invented traditions (bidaat), unnecessary and unwanted suspicions regarding Islam and its holy books. He presented what he considered pure and pristine Islam to the people Death of Shah Sahab He died in Delhi on the year 1176 AH corresponding to 1762 AD, behind the central jail. There is a vast ground and a graveyard known popularly as â€Å"Mehindin Kakhitta† which contains in it the grave of Shah Waliullah and his progeny His Final Willâ€Å"The final will of this humble servant of Allah is that always hold tightly to the Qura’an and Sunnath in your beliefs and acts. Regularly evaluate yourself against them. Read them regularly and if you can’t, then find someone who can and listen to at least a couple of pages everyday Children of Shah Wali Ullah Shah Abdul Aziz Hazrat Shah Waliullah was fortunate of having children who were great scholars and god-fearing men like himself. His eldest son Shah Abdul Aziz was born in 1159 AH and died in 1238 AH corresponding to 1823 AD. At the age of 17 he had become an accomplished scholar and began teaching like his father. For 60 years, he continued teaching and preaching Islam. The blessing of his knowledge reached every corner of the Indian sub-continent. Because of his versatile genius he was giving the title â€Å"Ayatullah†, a sign of God. Rafi-uddin The second of Shah Waliullah Rafi-uddin. He was born in 1163 AH and died in 1233 AH. His scholarly qualities may well be judged from the fact that when Shah Abdul Aziz had become to teach he passed on his responsibilities to Shah Rafi. Among the work of Shah Rafi his urdu translation of the Holy Quran Shah Abdul Qadir The third son of Shah Sahib was Shah Abdul Qadir who was born in 1162 AH and died in 1230 AH. He was also a big scholar by his nature, he loved solitude, and he spent his whole life in a secluded room of Akbar Badi mosque. He did not much attend to literary writings, however, his urdu translation under the title of â€Å"Mozih ul Quran† was his monumental achievement which is recognised by scholarly circles. Abdul Ghani His fourth son was Abdul Ghani. He was a saintly person. His son Shah Ismail Shaheed was a unique personality who had combined in himself all virtues of scholarly and mystical personalities. Conclusion In short, due to sincere and dedicated efforts of Shah Waliullah and his family the illustrious banner of Islam kept flying over the Indian sub continent despite the decline and fall of the Mughal empire. In Spain, the faith of Islam disappeared with disappearance of the Muslim rule. Many Muslims were killed and many were converted to Christianity. In India however the intention of the British Government did not realize and Muslim India did not convert to the faith of the ruling people despite missionary efforts of the British Government who spent millions of pounds on missionary activities and arranged lectures, debates and seminars to propagate their faith. The failure of the British Government in converting Muslim India was due to the dedicated efforts of Hazrat Shah Waliullah and his noble family. Shah Wali Ullah Biographical Details Shah Wall Ullah was born on 21 February 1703 during reign of Emperor Aurangzeb Alamgir. His real name was Qutub-ud-Din, but he later became known Shah Wali Ullah because of his piety. His father was Shah Abdul Rahim, who founded the Madrassa Rahimiya in Delhi. When his father died in 1718 Shah Wali Ullah began teaching at the Madrassa. In 1724 Shah Wali Ullah went to Saudi Arabia to perform Haj and to further his studies. He studied under the famous Sheikh Abu Tahir bin Ibrahim,before returning to Delhi in 1732. Beliefs During his time in Saudi Arabia, Shah Wali Ullah thought deeply about the problems faced by Muslims in the Mughal Empire. The Empire was in decline and Muslims were disunited and vulnerable to attacks on their religion. Shah Wall Ullah realised that reform could not come from the weak leadership in Delhi and that it had to come from within the Muslim community itself. He believed that many of the problems of the Muslims resulted from their incomplete knowledge of Quran and about Islam in general — and that what was needed was for Quranic teachings to become more accessible to the people. A major problem for the Muslim community was the way that it was divided into sectarian groups, such as Sunnis and Shias. Shah Wall Ullah wanted them to concentrate on the fundamental principles of Islam and put aside their differences, believing that this would create a more united community. It was essential to follow the moral and spiritual principles of Islam in order to create a good society. Un-Islamic principles were not acceptable in any area of society, whether politics, economics or just the day-to-day lives of the individual Muslims. Work -Shah Wall Ullah worked hard to ensure that he was a role model for other Muslims. His deep understanding of the Quran, Hadith, Fiqah and Tasawuf made him a highly knowledgeable scholar at an early age. -Since he believed that an emphasis on Quranic teachings was vital to Muslims, he translated the Quran into Persian. Few Muslims spoke Arabic and so the Quran had not been widely studied previously. Now it could be understood by a larger number of Muslims. The ulema criticised Shah Wall Ullah, but his work proved very popular. Later his two sons, Shah Abdul Qader and Shah Rafi, translated the Quran into Urdu, which meant that many more people could study it. -In addition to translating the Quran, Shah Wall Ullah wrote fifty-one books. He wrote in both Persian and Arabic. Amongst the most famous were Hujjatullah-ul-Baligha and Izalat-Akhfa. He also wrote an account of the first four caliphs of Islam in a way that was acceptable to both Shias and Sunnis. He hoped that this would help to heal the division between them. His writings brought him great fame and prestige and enabled him to have influence in other areas too. For example, in economics he emphasized the need for social justice and for peasants and craftsmen to be truly valued for their contribution to the economy. -One of Shah Wali Ullah’s most important contributions to the Muslim community was his organisation of opposition to the Marathas, who were threatening to over-run the Mughal Empire from the south. He realised that the Muslims had to unite to deal with this threat, and that of the Sikhs who were attacking in the north. Shah Wall Ullah wrote to all the Muslim nobles calling on them to join together to save the Mughal Empire. It was partly his influence which helped to persuade Ahmed Shah Abdall of Persia to intervene. He joined forces with local Muslim leaders and defeated the Marathas at the Battle of Panipat in 1761. However, despite encouragement from Shah Wall Ullah, the Muslim leaders did not unite to take advantage of the defeat of the Marathas. Perhaps if they had done so, the Muslims would not have soon found themselves under non-Muslim rule. Importance Shah Wall Ullah’s contribution towards Islamic revival was extremely important for a number of reasons: -He was one of the first Muslim thinkers to state that the decline of the Mughal Empire and the vulnerable position of the Muslims were due to neglect of the principles of Islam. He believed that if the decline in the position of the Muslims was to be stopped, there had to be spiritual and moral regeneration. -He showed how this regeneration might take place. The Madrassa Rahimiya continued to play a vital role in teaching Islamic principles and researching Islamic thought. -His writing in Persian made Islamic teaching available to large numbers of Muslims who had not been able to understand Arabic. He believed that Muslims could only prosper if they followed proper Islamic customs and did not indulge in social evils. Shah Wali Ullah provided the inspiration for Muslims to lead a pure life, based on a belief that anti-social attitudes incurred the displeasure of God. -He also showed that a Muslim revival could only take place if there was an acceptance that sectarian division was to stop. Muslims had to concentrate more on the basic principles of Islam, and not allow the differences between them to lead to conflict.He tried to build bridges between the different Muslim sects and to unite the community. He tried to do this by organising opposition to the Marathas and uniting Muslims by emphasising the importance of Jihad against a common enemy. -He trained his sons to continue his work and had such a huge following that his work remained famous for many generations. Like all great reformers, Shah Wali Ullah’s influence continued long after his death. Not only did his writings survive and translated in many languages, but the Madrassa Rahimaya continued to flourish. Many future Islamic leaders were inspired by him to fight for the good of the Muslim community.

Exploratory Study of Kopitiam Business

Exploratory Study of Kopitiam Business A new breed of kopitiam (a coffee shop in local Chinese dialects) has gained popularity in Malaysia during the past few years. In fact, there are no less than a hundred different brands of kopitiam which can be found everywhere in Malaysia with little or no differentiation. In such saturated market, lowering the prices has become common strategy to attract customers, consequently, kopitiam business has been caught up in price wars and competing under the shrinking profit margin. Thus, it leads the business with nothing but bloody red oceans. However, there are limited studies in business strategies in kopitiam businesses. Therefore, this paper aims to bridge the gap by discusses a conceptual strategy approach, particularly, Blue-ocean strategy (BOS) in kopitiam businesses. Keywords: Kopitiam, Differentiation, Red Oceans, Blue-ocean strategy. 1.0 Introduction A new breed of kopitiam (a coffee shop in local Chinese dialects) has gained popularity in Malaysia during the past few years. However, the literature review suggests limited research attempts have been made in kopitiams business strategies. Thus, the purpose of this paper is to bridge the gap and it presented in four parts. The first part begins by reviewing the history of kopitiam in Malaysia. Following this, the second section reviews the new breed of kopitiam business in Malaysia. Lastly, the last two parts discusses the conceptual approach, Blue-ocean strategy in kopitiam and its untapped market respectively. 2.0 The History of Kopitiam 2.1 The Migration In nineteenth and twentieth century, British Imperialism had brought in diverse of people, mainly from China, India and Malay Archipelago. According to Kaur (2004), the growing economic opportunities in the region such as mineral and agricultural expansion were the pull factors to Southeast Asia during that time. In the colonial era of Malaya (before independent), British had introduced the practice of segregating economic activity along with racial lines such as Chinese migrant workers to work in the tin mines, Indian migrant workers to work in the rubber plantations and Malay Archipelago to work in the agriculture fields (Arif Abubakar, 2005). 2.2 The Hainanese Factor In 1900s, the main Chinese dialects groups in Malaya are Hokkien, Cantonese, Hakka, Teochew and Hainanese. According to Lai (2010) among the Chinese dialect groups, Hainanese were the late comers and the minority of migrant group. Due to the scarcity of job during that time, the other dialect groups would take any job offered or opportunity available. They became rubber tappers, seamen, cooks and just name to it a few. Most of them worked for the Europeans. In late of 1930s, Hainanese, individually or partnership, offers their personal skills such as culinary, service, housekeeping, and management skills which they learned from European households. They started to set up new concept of kopitiam (meaning coffee shop in local Chinese dialects) and involved in food and beverage related industries like coffee processing and food catering during that time. The growth fastiqium period for Hainanese distinct kopitiam were in the late 1920s to 1950s. Hainanese coffee merchants and kopitiam operators had developed their special method to roast the coffee beans and brewed the coffee (Lai, 2010). Some of them have their secret/special recipes which served as the key attractions to retain customers. In 1960s, the success of the kopitiam business had led the newcomers from other dialect groups to venture into this business. Subsequently, competition became more intense. 2.3 The Evolutions of Kopitiam Conventional Kopitiam, the basic formula was an outlet and simple menus. They served local coffee, toasted bread with margarine and kaya (a type of jam made of coconuts and eggs), half-boiled eggs and some traditional pastries. Prices were relatively cheap with a cup of coffee and other food charged which everyone could afford. In the past, the kopitiam sole proprietor dressed his white sweatshirt and stripped pajama pants making coffee. The kopitiam was a place as social centre where men could indulge eating, meeting, drinking and chatting on anything that came to mind, light or seriously in what had become known as coffee shop talk (Lai, 2010). Normally, it would be located in strategic location of the main street, village or neighborhood. According to Lai (2010), as populations grew rapidly, some of the kopitiam expanded into modest-sized eating shops in the more strategic location nearer to the towns, village, neighborhood or others. Proprietors sell both drinks and foods or solely drinks and rented out stall space to other food operators. It was the place that customers enjoyed their breakfast, lunch and dinner. Their target customers were industrial personnel, laborers, and residents. This kind of kopitiam set up remains until today. In the late twentieth century, new breed of kopitiam chains which trade on both modernized and nostalgia approach, started to emerge. The outlets are designed with old posters feature, vintage antiques and furniture to evoke a 1960s atmosphere (Euromonitor International, 2010). In the past few years, the popularity of new breed of kopitiam has begun in Malaysia. This brand new kopitiam emphasize eating experiences by offering value-added services like free Wi-Fi access, air-conditional environment and offered innovative breakfast and lunch set-meals and more choices on the menu to fulfill every level of consumers (Euromonitor International, 2009). To remain competitive, aggressive marketing strategies and management systems are implemented. They innovate and improve their kitchens technology for preparing foods and beverages (Lai, 2010). As such, kopitiam has gained the favour of young consumers to hang out at these outlets. 3.0 An Overview of New Breed Kopitiam in Malaysia Local food beverages (FB) face some challenges which are beyond the issue of rising cost of raw materials and shortage of workers but the scene with intense competition among the food service operators. This was mainly due to the low entry barriers and switching costs of buyers/suppliers. According to Selamat et. al. (2003), the entire Malaysia food industries make up from the total of 172,252 units of food service entities which consist of food stalls/kiosk and restaurant. In the new concept of kopitiam alone, there are more than 100 brands of new concept kopitiam in the market today. Statistically, the percentage of units/outlets growth in both independent and chained kopitiam accounted for 9.1 percent and 16.1 percent in 2008 respectively (Euromonitor International, 2009). Generally, the new breed of kopitiam entering the market by integrating the old fashioned of traditional kopitiam in a more trendy, hygenic, and air-conditioned environment. No doubt that the movement of these kopitiam has successfully created a new wave of eating experiences in Malaysia. However, there is little or no differentiation against one another in terms of (1) product offerings (i.e., coffee, bread toast, and other local authentic foods) are nearly the same from one outlet to another regardless of the brand; (2) targeting the same group of consumers, for example, professionals, managers, executives, and business owners; (3) physical environment such as decoration was found to be the same among these outlets. Today, marketing tasks has become complicated and more challenging than ever. Businesses today are competing in fragmentation, saturation, and storm of novelty that exist every day in the market. In fact, when the industry become more intense, businesses will continuously increase their market share by identifying and creating niche market (Kotler Tiras De Bes, 2003); strive to retain and develop existing customers (Kim Mauborgne, 2005) which would result in finer segmentation. Thus, it ends-up creating too-small target market. Besides, the increase of commoditization of products and services leads consumer hardly to differentiate their product offerings. As a solution, reducing prices has become the common competitive strategy for kopitiam businesses as competition intensifies. According to Euromonitor International (2009) found that prices of offering items in cafes/bars (including kopitiam) will likely drop gradually. Thus, promotions such as value set breakfast and lunch with lower price can be easily found in these outlets. Commonly, we found that lowering the prices with the purpose to beat competitors, but, it is often not a wise strategy in business like kopitiam as every player can do the exactly same thing. Trout Rivkin (2000) illustrated that price is always the enemy of differentiation. Consequently, the above mentioned scenario will lead the business with nothing but a bloody red ocean. Red oceans stand for the industries that are around today. In the red ocean, the rules of the game are known as it had been around for ages. Thus, businesses tend to compete to get a bigger chunk of the pie. When this happens, the market space becomes smaller, resulting to a drain in profit and growth. As this prolongs, the stiff rivalry among the companies would turn to be a bloody red ocean (Kim Mauborgne, 2005). 4.0 Swimming towards Blue Oceans Kotler Tiras De Bes (2003) described the current market is not the same as compare to 1960s and 1970s. Typically, product is designed to fulfill consumer needs; however, consumer needs are hypersatisfied today. Kim and Mauborgne (2005) pointed that business strategies and management of the 20th century are becoming extinct as the business evolves in an industry that is changing to be a shade of red, the management has to be on its feet to think on how to make it ocean blue. Generally, blue oceans denote the new market space, new creation, and high probability for growth. Most of the blue oceans created within known markets but there are a few that are completely new industries rivalry among companies are not predominant in the blue ocean as there are no known rules to follow. Indeed, Kim Mauborgne (2005) describes the future of a company depends on how the management can create and use this new strategy. Besides, both authors indicate that 86 percent of launched business (improvement within an existing red-ocean market) which accounted 62 percent of total revenue and only 39 percent of total margins. On the other hand, the remaining of 14 percent launched businesses was in blue oceans (non-competing market space) which accounted to 38 percent of the total revenues and 61 percent of total profits. Apparently, the benefits of creating blue oceans are more promising. As more and more kopitiam will be trapped into red bloody oceans in this saturated market, hence, blue-ocean strategy is significant for the industry. Unfortunately, blue-ocean strategy is literally new to Malaysias businesses. Even though, many CEOs are aware of the existence of blue-ocean strategy but they have yet to fully understand and adopt the strategy to their businesses (as cited in Yap and Ang, 2007). Most recently, an interview session with Kotler on Getting savvy in newer media, narrated: They [Asian marketing professionals] need to improve their strategic capabilities with Blue Ocean thinking and Lateral Marketingà ¢Ã¢â€š ¬Ã‚ ¦.Companies that employ Blue-ocean strategy use innovation to find uncontested blue oceans of opportunities that their competitors have yet to discover, while lateral marketing requires companies to look beyond narrow, vertical segmentation and be creative to create fresh ideas and new markets. In response to such market, Kim Mauborgne (2005) provides set of analytical tools and framework in creating blue oceans. For example, both authors urge businesses to take a reverse course from focusing on existing customers to focus on noncustomers. By doing this, businesses are able to exploits new market space that never existed before. Air Asia, for example, a successful Malaysia low-cost airline that had identified a Blue Ocean to unlock the unaddressed market space by focusing on non-customers (i.e., the masses that cannot afford the expensive flight tickets and government employees) instead of customers (i.e., corporate and customers who can afford to buy expensive tickets) to avoid head on competition with Malaysia Airline (MAS) and other regional airlines (Lau, 2007). 5.0 The Untapped Market Knowing the nature of ones market is significant to business success. As such, the changes of cultural, social, personal, and psychological factors cannot simply be ignored in the fast-changing market. Friedman (2008) pinpoints that the world is heading to a new era called Energy-Climate Era whereas the world is currently facing three pitfalls namely, global warming, flattening, and crowding that affect all of us today. Hence, not surprisingly that sustainability has become a buzzword and being discussed by people from all walks of life. Even though, the sustainable practices are still hotly debated by both scholars and practitioners, but, this is a fundamental shift in how companies should function in this era. In fact, the contemporary environmental issue provides businesses the greatest prospect for return on investment and growth that never existed before (Friedman, 2008). However, going green is far more complicated than what we think. Numerous studies found that the main force for businesses being sustainable was mainly driven by legislation, marketing, and values (Gummerson, 1994). Typically, Malaysia is one of them from launching No-Plastic Day to stem duty exemption for green buildings and New Economic Model (NEM) that emphasize on economic growth and environment. No doubt, sustainable practices are still new to Malaysia, but, these new policies are important as a head start for Malaysia. As a result, several industries such as telecommunications, plantation, and real estate are taking different steps to balance between their business growth and sustainability. Unfortunately, sustainable practices with the initiatives to reduce food waste, water consumption, and energy consumption are literally new to the local FB industry. Revell Blackburn (2005) found that sustainability practices are considered as low priority because restaurateurs foresee their impact towards environment as insignificant. Besides, numerous studies found that low awareness of the environmental impact as one of the barriers to change (Hillary, 1995; Holland Gibbon 1997; Rutherfoorrd et. al. 2000). According to Consumer Association of Penang (2009), Malaysia restaurants discards more than 10 tons of left-over food daily with a total 490 tons carbon dioxide produced annually per restaurant. Even so, many restaurateurs have the attitude of wait and see on the environmental issues because they foresee the impact has yet to affect their business. Parsa et. al. (2005) denotes that inability to understand, anticipates, and adapt to the current market trend often lead to restaurant failures. As environmentally sustainable practices are important to todays consumers, hence, local FB industry such as kopitiam should take advantage of the opportunities by creating a win-win situation between the growth of business and sustainability of environment. Friedman (2008) indicates that, green is going from boutique to better, from a choice to a necessity, from a fad to strategy to win, from insoluble problem to great opportunity. Beside, Jogaratnam et. al. (1999) urges that restaurateurs should incorporate their business by adapting to the environmental changes and find ways to link with, respond to, integrate with, or exploit environmental opportunities. In summary, there is totally an untapped market from conventional kopitiam to sustainable or green kopitiam that emphasize on both growth and sustainability. 6.0 Conclusion There is a paradigm shift from traditional kopitiam to new concept kopitiam. The shifting has gained popularity among young generation, thus, more and more entrepreneurs venture into the business. Consequently, the business become intense and eventually turns the kopitiam business into red oceans. As such, businesses should take advantage of the blue open sea. Make itself impossible to be the target, isolate from possible followers at the same time lead them far away. The goal is to make the ocean theirs and prevent other competitors from invading it. Even so, in the long run there may be competitors that follow the same strategies making the pristine blue ocean red. The company would have to distance itself from the followers by changing their game plan to create another blue ocean.

Pestle Analysis Of The Beer Industry Economics Essay

Pestle Analysis Of The Beer Industry Economics Essay This report examines two organizations operating in the same industry, and their responses to the environment during the period 2007 to 2009. Heineken N.V (Heineken or the company) operates internationally through a global network of distributors and breweries. The company is one of the leading brewers that owns and manages a portfolio of more than 200 varieties of international premiums, regional, local and specialty beers. It owns or joint ventures 125 breweries and distributors in over 70 countries in five geographic segments: Europe, the Americas, Africa, the Middle East and Asia Pacific. It is headquartered in Amsterdam, the Netherlands and employs about 55,301 people. SABMiller is similarly engaged in the production and distribution of beer, malts and carbonated soft drinks. Its brands include international premium beers and the company primarily operates in the Americas, South Africa and Europe. It is headquartered in London, the United Kingdom (UK) and employs about 68,635 people. The companys markets its products in both the developed economies in Europe and North America to emerging markets such as China and India. SABMiller is also one of the largest bottlers of Coca-Cola products in the world. SABMillers operations segmented across beer manufacturing and soft drinks business and also has brewing interests or distribution agreements across six continents. This report critically analyzes Heinekens financial performance compared with one of its many competitors, SABMiller and examines the market conditions and economic statistics during the period 2007 to 2009. 2. ECONOMIC OVERVIEW In the report entitled Emerging or Developed Markets which will lead global economic recovery? by SABMiller Globalization Debates, it was concluded that Western developed economies will be the hardest hit by the current economic slump. The report confirmed that major nations and regions would emerge from this slump by the first or second half of 2010. The Middle East was expected to be the first to recover, followed by China and India. Canada is the highest place of the developed nations, in fourth. The United Kingdom (UK) and Italy were expected to be last to emerge into recovery. Heineken N.V. Heineken N.V. in its first trading update in 2009 made the following statement, The global economic downturn, bad weather and smoking bans caused global beer sales volumes to drop 6.3 percent in the first three months of 2009. However, better selling prices largely compensated for lost volumes, yielding a revenue decline of only one percent. In the first quarter of 2009, revenue increased 24 percent compared with the first quarter of 2008 owing to first-time consolidations and better pricing. This was partly offset by the financial impact of lower volume and unfavourable exchange rate fluctuations. Organically, revenue decreased one percent. Beer sales volumes declined across West European markets, while in Africa and the Middle East volumes grew. Organic volume was adversely impacted by a combination of factors, including the global economic downturn, unfavourable weather, the continued effect of smoking bans, distributor destocking, excise duty increases and selling price increases, Heineken said. Given this scenario, the company focused in 2009 on initiatives to reduce debt and costs, and improve the performance of newly acquired companies. In February 2009, Heineken announced a 74 percent drop in 2008 net profit but said it remained optimistic, as beer consumption was relatively resilient in hard economic times. The exceptional economic circumstances required Heineken to reduce the value of goodwill in Russia, their investment in India and the pub portfolios in the United Kingdom (UK). In Malaysia, consumer confidence reached an all-time low and with that Malaysians became the worlds third greatest savers, with more than half choosing to cope with rising costs by cutting down on their spending. Heineken in recognizing its challenges recommitted to utilizing its global marketing excellence to build its key brands across all markets and to maintaining, or where possible improving, its price positioning. SABMiller SABMiller, its competitor also reported, in a trading update, a dip in global beer volumes for  its fourth quarter of 2009, reflecting the impact of the economic downturn in its markets across Eastern Europe, Latin America and Asia. Compared to a similar basis, beer sales by volume  were flat for the 12 months to the end of March 2009 and fell by 1% in the final quarter of the year. Beer volumes on a non-comparable basis rose by 2% for the year of 2009. Beer sales suffered in the fourth quarter of 2009 due to the effects of the global economic downturn on consumer spending, the UK-listed brewer said. It added, however, that full-year sales revenue rose by high single digits, due to beer price rises, and that trading for the year of 2009 was in-line with the companys expectations. In 2009, Eastern Europe proved particularly difficult for SABMiller. Like-for-like beer volume sales in Russia fell by 7%, due to wholesalers running down their stocks amid weakening consumer confidence, although volumes were flat in the fourth quarter. SABs volumes also fell by 4% in Czech Republic for the year. Volumes rose by 18% in Romania, but slowed significantly in the second half, the brewer said. In other markets, China reported a 4% rise in beer volume sales for the year, despite a weakening economy and the earthquake in 2008 in Sichuan province, one of SABs strongholds in the country. China saw double-digit growth in the fourth quarter. SABMillers ability to contribute its business profitability was largely due to the impact of its business in Latin America and in the United States where it performed reasonably well. 3. THE BEER INDUSTRY 1The saturation of traditionally thriving beer markets such as North America and Europe has driven the consolidation of the industry. Major brewers have sought growth through strategic mergers and acquisitions, which has reorganized the industry and strengthened the market positions of the industrys largest brewers. Expansion into key emerging markets has become a strategic priority for leading firms, who are now competing for market share in several important regions of the world (Hutter, pg. 1). China In 2003 China eclipsed the US as the worlds largest beer market. Although China has low unemployment levels and growing urban centres, it is seen as the worlds next big consumer market. The local beer industry is firmly established and contains approximately 300 brewers (Slocum, et al. p. 35), à ¢Ã¢â€š ¬Ã‚ ¨primarily supplying the urban coastal areas. Many multinational firms have invested heavily in the Chinese beer market and although there is a threat of overà ¢Ã¢â€š ¬Ã‚ saturation, relatively low perà ¢Ã¢â€š ¬Ã‚ Ãƒ ¢Ã¢â€š ¬Ã‚ ¨capita consumption levels indicate that this market has room to grow. India 1India is one of the worlds fastest growing consumer markets. A rapidly growing population, an emerging middle class with rising perà ¢Ã¢â€š ¬Ã‚ capita incomes and blossoming urban centers make India a powerful emerging market. India has an established local beer industry and although perà ¢Ã¢â€š ¬Ã‚ capita consumption is low, as the country becomes more westernized younger generations have the potential to be highà ¢Ã¢â€š ¬Ã‚ volume consumers. However, regionalism, political unrest and the potential for growing pains temper this markets attraction. South Africa South Africa is one of the fastest growing beer markets in the world. This region has an active domestic brewing industry and a population of high perà ¢Ã¢â€š ¬Ã‚ capita beer consumers. Favorable agricultural conditions exist for harvesting beer ingredients and consumer tastes are shifting from sorghumà ¢Ã¢â€š ¬Ã‚ based beer toward Westernà ¢Ã¢â€š ¬Ã‚ style products creating growth opportunities for light beer and specialty brewers. However, SABMiller, one of the largest brewers in the world has roots in South Africa and has a strong market position there. Opportunity still exists in this market for brewers keen on pursuing a market thirsty for western imports. South Africas beer market provides an attractive investment opportunity for a multinational firm looking to capitalize on this regions high perà ¢Ã¢â€š ¬Ã‚ capita consumption and changing, westernized, tastes. Russia Latin America 1The early 2000s saw booming beer consumption rates in Russia, which spurred a flurry of foreign investment, but a subsequent slowdown and strict government regulations have driven this markets costs up. Russias longà ¢Ã¢â€š ¬Ã‚ standing preferences for spirits have waned and beer is now more ingrained in the culture, but brewers must now find opportunity in the higherà ¢Ã¢â€š ¬Ã‚ Ãƒ ¢Ã¢â€š ¬Ã‚ ¨margin specialty markets. Latin America is an active beer market with high growth potential, largely driven by growth in key demographics, a favorable farming climate, Brazils developing economy and Mexicos high levels of beer consumption. Supporting Data Figure 1.1 shows that China surpassed the US as the worlds larges beer market in 2003. However, as Figure 1.2 demonstrates, the country has relatively low perà ¢Ã¢â€š ¬Ã‚ capita consumption rates suggesting that Chinas growth has been driven by its massive population. Whether this unique dynamic limits growth or represents significant room for growth will be a key factor in Chinas future strength as a beer market. Figure 1.3 demonstrates recent general population growth trends for the key growth demographic of 15à ¢Ã¢â€š ¬Ã‚ 34 yearà ¢Ã¢â€š ¬Ã‚ olds. Asia and Latin America have shown significant growth while the US and Western Europe haveà ¢Ã¢â€š ¬Ã‚ ¨ demonstrated flat or negative growth rates. This is further evidence that the key growth opportunities in theà ¢Ã¢â€š ¬Ã‚ ¨ brewing industry are primarily in emerging markets, rather than traditional established markets. 3.1 PESTLE ANALYSIS ON THE INDUSTRY PESTLE is the Political, Economic, Sociological, Technological, Legal, and Environmental factors that describes the macro-environmental factors used in the environmental scanning component of strategic management. The following factors demonstrates: Political (includes Legal) The beer brewing industry is one that faces a large amount of government regulation. A cause for the large amount of regulation is due to the fact that in some areas brewers can be regulated by the federal government, state governments, and localities. The federal government has seven different areas of regulation relating to the beer industry. The area relating to breweries and beer production is the one that affects the beer brewing industry. The government agency that is responsible for regulating this industry is the Bureau of Alcohol, Tobacco, and Firearms. The bureau has issued regulations regarding brewing of beer that include restrictions on the location, use, construction, and equipment of breweries, as well as laws pertaining to the qualification of breweries and their issuance of bonds and consents of surety. Beer breweries also face brewing process regulations include mandatory approval of the formula and process for domestic flavored beers, such as lambics, and requirements for the measurement of beer. In addition, federal law imposes a special occupational tax (SOT) on all brewers. Breweries also face state regulations that vary according to each individual state in which they are located. The government regulations that breweries face help to prevent barriers to entry for potential firms considering entry into this industry. This is a benefit to the firms currently in the industry as it promotes an environment that is conducive to sustainable profits. Economic The Scope of competitive rivalry is one the best ways to identify the economic characteristics of any industry; with the beer industry the scope entails the global geographic area over which most of the leading brewing leaders compete. Penetration in the foreign market arena is becoming a key success indicator for most of the competitors in the beer industry. The market size of the beer industry is incredible. As you can see, this is a very large industry, which provides many jobs, and the market consists of many competitors, some being very large and some operating on a very small scale. The competitive rivalry is broken up into three segments, National, Regional, and Microbrewers. National competitors have wide market coverage and generally a large company. Regional competitors are smaller than National in the fact that they only distribute in certain regions. Microbrewers are the smallest of the three because their size and capacity limit them to only distribute to small geographic areas. The market growth rate of the beer industry is perplexing. Economies of scale are defined by Porter as the declines in unit costs of a product as the absolute volume per period increase (Porter 7). Therefore the greater quantity of a product that is produced the lower the cost of each will be to the producer. This creates an advantage for a high volume producer like those seen in the brewing industry. Economies of scale in the brewing industry also exist in areas other than in production and these include purchasing, distribution, and advertising. For example, national brewers achieve economies of scale in advertising through bulk media purchases and umbrella brand marketing. Local-craft brewers spend more than twice that spent by large brewers on marketing and advertising per barrel. Social Cultural Issues Throughout history there has consistently been opposition to the sale and use of alcohol. This opposition to the use of alcohol traditionally stemmed from a moral or religious opposition to the consumption of alcohol. Today however, increasingly it isnt a moral or religious reason that prompts this opposition; its the negative medical effects that abuse of alcohol has been shown to have on the human body. Society is also feeling the effects of alcohol abuse; it is because of this that Sin Taxes have been levied on alcohol, as an attempt for government to find a ways and means to profit from the sale and consumption of alcohol. Technological New harvesting and production technologies must be identified to increase process efficiency and ensure continued growth. Environmental The beverage industry is extremely competitive, with private labels greatly influencing the environment. In developing markets, the consumption of beer has fluctuated due to changing beverage preferences and relatively slow population growth among key demographics. Brewers must seek growth in developing countries such as India, China, South Africa and others, where global middle class is rapidly emerging. Therefore, players in the beer industry should look for ways to reinvent themselves in attracting the younger generations by responding to varying tastes and a wide range of products. à ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨Ãƒ ¢Ã¢â€š ¬Ã‚ ¨ 4. FINANCIAL ANALYSIS The years selected for review were 2007, 2008 and 2009. The outlook of these three years provides a perspective on general developments in the international beer industry, their effects on Heineken and SABMillers position, its profit forecast and its capital investment. It examines some key financial ratios, analyzing its profitability and liquidity making a comparison between Heineken and its competitor, SABMiller. The factors, which were used by the company, are contained in the report to shareholders by the Chairman and the Chief executive Officer and it is this report that provides the basis for our review. The analysis of operating ratios is seen in Appendix I and II. 4.1 The Chairman Chief Executive Officer Overview for 2007 2009 4.1.1 Heineken N.V. 2007 According to the review, 2007 was an outstanding year because of the following: The company achieved cost reductions New profit grew by 22.6% Beer volumes increased by 6.5% Premium segment increased by 10% Strategic acquisition Building leadership and; There was focus on selective opportunities For 2007, Heineken continued to benefit from their ability to extract value from their mature markets. In May of 2007, Heineken renewed the sales and marketing agreement in the USA for a further ten years which would significantly impact the growth segment in the US markets and secondly, they regained control of the Amstel brand in South Africa and decided to construct a brewery there. Performance for their Central and Eastern European (CEE), African and Asian markets were considered outstanding given the state of the market and showed signs of growth in profit and volumes. Consolidated volumes grew by 9 percent and earnings before interest and tax (EBIT) (beia) rose by 22 percent. With an 18 percent volume growth and 41 percent EBIT increase, Africa and Middle East region was again consistent in rowing both its consolidated volumes and EBIT (beia) and their Asia Pacific region continued its positive growth in volumes, revenue and profitability. Heinekens strategy continued to focus on ensuring that environmental and social sustainability remained high on their agenda. They strengthened their existing commitment to responsible consumption activities in partnership with their employees, the industry and third parties in order to play an active role in addressing alcohol misuse. They continued to maintain their focus on meeting the environmental and safety targets that they have set for themselves an invested in their people and business resources. 2008 2008 was considered a unique year, there was large-scale industry consolidation, a global slowdown in category growth, significant increase in input cost and cost pressures and above all, an unprecedented economic crisis. Heineken managed to maintain in this environment a strong organic growth in net profit of 11 percent, revenue growth of more than 27 percent and 16 percent increase in group volume. However, goodwill in Russia had to be reduced due to the economic circumstances as well as their investments in India and the pub portfolios in the United Kingdom. Heineken entered 11 new markets and completed the largest acquisition in their history in 2008. They attained leading positions in 59 of their 66 markets, none of which accounts EBIT (beia) for more than 10 percent. The economic downturn impacted significantly on the performance in UK and a combination of other factors such as smoking bans, excise duty increased and adverse exchange rates. In this regard, Heineken reduced costs significantly, restructured parts of their business and improved pricing in order to increased the efficiency and profitability of the UK business. Heineken continued to focus on increasing their value share in all markets by increasing the efficiency and effectiveness of their marketing investments. They also focused on reducing their debt levels and introduced a company wide program aimed at restoring their cash conversion rates to more than 100 percent by 2011. 2009 In 2009, the company focused on a creating a more globally competitive business as a number of beers showed a reduction in sales in 2008 because of the economic slowdown. Transformation occurred and focus moved to growing their brands and value share in critical markets, leveraging their leadership position and developing specific action plans to grow and strengthen their business and the category. Heineken also looked at ways to accelerate their investment in consumer focused innovation. 4.1.2 Results of 2007 2009 ACTIONS In summary, an overview of the period 2007 to 2009, will indicate that Heineken was one in which the company found its market place affected by a number of very challenging events and it responded through various interventions. At the end of the period the company was transformed and able to survive. The operating profit margin declined over the years, 2007 to 2009. Although there was a decline in operating profit, Heineken is still effective in controlling its cost and expenses associated with its business operations. After reviewing its financial statements net profit continues to grow well ahead of their forecast as beer volumes continue to grow. From 2007 to 2009, cash flow from operating activities continue to improve mainly due to: Cash flow from operations before changes in working capital and provisions increased Decrease in working capital; resulting in a positive contribution to cash flow Decrease in cash flow used in operational investing activities as a result of reduced CAPEX. Heinekens net profit has grown over the years with an increase of 11 percent between 2007 and 2008 and a further increase of 18 percent from 2008 to 2009. Despite the economic downturn, Heineken experienced the highest number and value of new acquisitions ever, however, the economic situation impacted the value of certain assets and investments, it affected foreign translation reserve, hedging reserve in equity and also impacted other net financing expenses significantly. Revenues increased over the years showing a 27.3 percent between 2007 and 2008 and a 2.7 percent between 2008 and 2009. However there was a fall in beer volumes in 2009 due to the economic environment and excise duty increases. This is reflected in the decrease in the operating profit margin. The return on equity ratio had a significant decline between 2007 and 2008. This impact came about as a result of the investments made in that year when Heineken entered 11 new markets and completed their largest acquisition in history when they acquired the Scottish and Newcastle businesses in the UK, Portugal, Finland, Belgium, Ireland, India and the USA. In addition, they acquired breweries across Europe and Africa and they began construction of a brewery in South Africa. These investments would also have impacted on the returns received in that year. Heineken continued to outperform the sector with EBIT growth over the years. In 2007, the performance from the Central and Eastern European, African and Asian markets was outstanding and began to deliver on their potential for both profit and volume growth. As in 2007, the Africa and Middle East continued to grow in volume and profits hence increasing EBIT figures while Asia Pacific region continued its solid growth record. In 2009, Heineken continues to benefit from developing markets with a further increase in EBIT. In analyzing the current ratios, the companys shows that it is unable to pay off its obligations when they become due. However it does not necessarily mean that the company will go bankrupt as there maybe ways to access financing but it shows that the company may not be in good financial health. In concluding, Heineken has a high gearing ratio and based on the beer industry this can be considered risky. This is so as shareholders are concerned at the very high level of debt relative to equity and borrowers might doubt the companys potential to service the interest in new borrowings. High gearing ratios simply indicate that a company has placed a greater reliance upon borrowing than equity to finance its operations. The higher the ratio the more highly geared or levered the company is said to be. Although it should provide a higher return to its shareholders when the economy is experiencing boom conditions, during period of increased interest rates, economic recession or simply loss of customers the opposite will apply. A company which has high gearing is particularly vulnerable and might find that it cannot continue to finance its borrowings. 4.1.3 SABMiller Analysis 2007 2007 was a successful year for the group when developing and developed market operations generated 10 percent organic growth in larger volumes and 12 percent growth in earnings before interest and tax and amortization (EBITA). SABMillers total volumes in lager, soft drinks and other beverages increased and their net cash was 22 percent above the prior year reflecting the overall strength of the trading performance and strong cash characteristics. That year, SABMiller shaped and expanded its international portfolio business. Acquisitions and joint ventures in China, Vietnam, Australia and Angola have been further steps in creating an attractive, international spread of businesses with good exposure to fast growing, developing markets. 2007 was a year of good growth with strong performance in the fourth quarter. However there were challenges in increased commodities, cost pressures and the need to rebuild share of premium segment in South Africa. Despite those challenges, progress was expected. 2008 In 2008, economies in general and the brewing sector were faced with challenges such as the economic melt down and the food price inflation. However, SABMiller beverage volumes continue to grow and the net cash generated an increase from 2007. 2008 was a year of strong growth with results continuing the trend of several strong years. 2009 SABMillers growth over the previous two years had been almost double their normal expectations, despite with the growing economic pressures on consumers. In 2009, commodity prices and the cost of brewing materials increased. However, SABMiller delivered yet another year of creditable results as beverage volumes continues to grow. The market capitalization also grew and SABMIller continued to invest in the business, with capital expenditure during the year totaling some US$2,100 million and acquisitions a further US$300 million. Despite this very significant investment, net debt at the year-end was lower than the prior year and the group remains financially strong. SABMiller continued to develop their international portfolios with joint ventures in the United States. 4.1.4 Results of 2007 2009 ACTIONS In summary and overview of the period 2007 2009 for SABMiller also found its external environment changed by circumstances and responded by a number of changes to its business model. At the end of the period, it has grown through market growth. SABMiller reported EBITA profit measures give shareholders additional information on trends and make it easier to compare different segments. Segmental performance is reported after the specific apportionment of attributable head office service costs. There has been a continued growth in EBITA margins as it grew 12% in 2007, 9% in 2008 on an organic, constant currency basis. In 2007, reported EBITA, which includes the impact of currency movements and acquisitions, grew by 22% and in 2008, SABMiller managed to maintain an EBITA of 17.4% and growth in EBITA reflects the benefits of volume and revenue increases as well as productivity. Between 2007 and 2008, net cash inflow from operating activities before working capital movements, Earnings before interest, tax, depreciation and amortization (EBITDA) rose 12% and continues to grow in the following years. The groups cash flow generation was again strong as demonstrated by the ratio of EBITDA to revenue (both metrics excluding results of associates) at 21% (2007: 22%). Total assets continue to increase over the years. Goodwill increased in 2007 and 2008 as a result of foreign exchange on goodwill denominated in currencies other than the US dollar and on the acquisition of the Fosters India business and the various minority interest acquired. However, Goodwill decreased in 2009, primarily as a result of the contribution of goodwill relating to the Miller business into the MillerCoors joint venture and the impact of foreign exchange rate changes on goodwill denominated in currencies other than the US dollar. In addition, goodwill was reduced by impairments in Europe, partially offset by goodwill arising on acquisitions in Europe and Africa and Asia. During the period there was also a marginal increase in equity earnings attributable to minorities less balances acquired as part of minority interest acquisitions. The group has a good record of generating cash, and increases in cash generation reflect growth in profitability before interest and tax payments and investment activities. 5. ANALYSIS Heineken N.V. vs. SABMiller Some Observations A SWOT analysis was conducted to compare the positioning of both companies as it relates to the industry. The following was taken from Data Monitor report (published on August 12th 2010) and these were the findings of the analysis: Heineken N.V. Strengths Strong and diverse brand portfolio. Large scale of brewery and distribution network for efficient global supply chain management Brand innovation to adjust with the changes in consumer tastes and preferences Strategic planning and cost containment measure to improve cash flow and profit margins Opportunities Rising disposal income and cultural shift towards alcoholic beverages in Asia Association with sports events enhances the companys visibility and popularity Partnerships and strategic acquisitions Weaknesses Higher debt poses liquidity problems Weak presence in the top beer consuming countries Threats Declining beer market in Europe Stringent advertising regulations for alcoholic drinks SABMiller Strengths Globally spread operations Wide portfolio of international and local brands Opportunities Partnering with big retailers Booming beer industry in China Strategic alliance Weaknesses Sluggish financial performance Weak employee productivity Weak liquidity position Threats Rising raw material prices Sluggish growth in the US and Europe Increasing labour costs The global economic environment will continue to lead to lower beer consumption and down-trading in a number of regions in the foreseeable future. Heineken N.V. However Heineken plans to continue utilizing its global marketing excellence to build its key brands across all markets and to maintaining, or where possible improving, its price positioning. Price increases will be at levels well below of those of 2009. Heineken aims to continue passing on excise duty increases through its higher sales prices. Heineken has significant market leadership in Europe and there are plans to capitalize on this opportunity despite the intense competition. However, that task would not be easy given the economic, market, consumer and regulatory dynamics across many markets. The company will leverage their leadership positions and develop specific action plans to grown and strengthen the business and the category. Heineken will accelerate their investment in consumer-focused innovation especially on the Heineken brand. SABMiller SABMiller has a record of improving its productivity over time, notwithstanding increases in capital investment and in sales and marketing expenses. In summary, the group delivered resilient underlying results over the period 2007 to 2009 despite the strong h