Nursing Leadership/Management Role in Budgets Essay

Budgeting refers to a detailed financial plan for carrying out the activities an organization wants to accomplish between a certain amount of time to ensure that quality and cost-effective services are provided to their patients (Stafford, 2007). Many nurse managers/leaders cringe at the word â€Å"budget† due to the lack of training and support for that position and in many cases they are left on their own to get up to speed on all the business aspects for their department within the organization (Clarke, 2006). With the various types of budgets healthcare organizations use to monitor their financial status, it is essential for the nurse manager/leader to take initiative to understand these budget types since they are the closest to the patients and know exactly what is needed to provide quality of care for their unit. Types of Budgets The operating budget is a financial plan for the day-to-day activities of the organization and departments over a one-year period (Stafford, 2007). The expected revenues and expenses generated from these daily operations, given a specified volume of patients, are stated here. Each nursing unit is considered a cost center within the organization, with its own specific budget for personnel and supplies. The personnel budget, being the largest part of the operating budget, consists of multiple factors such as the average daily census, patient acuity, personnel required relating to full-time equivalents (FTEs), as well as productive and non-productive hours. The supplies include medical and office supplies, minor equipment, orientation and training, and travel expenses. Although budgets are based on assumptions, using the previous year’s expenses for personnel and supplies, helps the nurse manager/leader to accurately predict the next year’s budget. Lastly, the revenue budget is the final component of the operating budget which projects the income the organization will receive for providing care. Although nurse managers/leaders may not be involved in developing the revenue budget, having knowledge about it is essential for great decision-making. Another type of budget is the capital expenditure budget, which reflects expenses related to the purchase of major capital items (Stafford, 2007). Capital items are those that have a useful life of more than one year and must exceed a cost level specified by the organization such as $1000. If the item is below this cost, it is considered a routine operating cost. Capital items have a depreciated value, meaning that each year a portion of its’ cost is allocated to the operating budget as an expense and therefore is subtracted from the revenue. Healthcare organizations usually set aside a fixed amount of money for capital expenditures each year for items such as safety requirements, building renovations, and large equipment purchases such as monitors or x-ray machines. Nurse managers/leaders may not have authorization to purchase capital items within their budget but it is their responsibility to notify upper management within the organization the need for specific capital items and the reasoning behind it. Lastly, the cash budget, is the operating plan for monthly cash receipts and dispursements (Stafford, 2007). Organizational survival depends on paying bills on time to keep good standings amongst vendors. Although the nurse manager/leader may not be fully involved in preparing cash budgets either, it is helpful to know and nderstand when constraints on spending are necessary. Leadership/Management Role Nurse managers/leaders are challenged daily to be as cost-effective as possible and to do this, preparation is the key (Foley, 2005). The operating budget is the budget most nurse managers/leaders are responsible for and spend most of their time in managing their personnel and supplies (Stafford, 2007). Gathering information and planning for the average daily census, FTEs, patient acuity, etc†¦ is essential for developing their budgets and understanding the variances, the difference between the projected and the actual budget. Although a nurse manager/leader cannot control all variances, some can be controlled which is where the nurse manager/leader must step in to prevent these variances in the future. Another important role the nurse manager/leader plays is in collaborating with the nursing staff the budget for the unit as well as involving staff with budget monitoring activities to help foster the relationship between cost and the mission to deliver quality patient care for the organization (Stafford, 2007). Appropriate communication is the key, according to Brennan et al. (2008) to understand the financial aspect of the organization. Looking beyond numbers cannot be accomplished while sitting in the office and looking at spreadsheets. Regular, frequent, and focused conversations between staff and nursing executives are important for nurse managers to collaborate with to fully understand the budget (Clarke, 2006). If nurse managers/leaders do not learn to defend and negotiate their budgets, the finance departments within the organization will continue to drive the budget process and the quality of care for patients may be effected since they do not have the insight of the unit and patient’s needs as nurse managers/leaders do. Conclusion Nurse managers/leaders tackle countless responsibilities on a daily basis. Mastering the budget for their unit and for the organization is still one responsibility that needs work. Taking initiative and collaborating with all key personnel the budget plan for the unit is essentialfor nurse managers/leaders in creating an understanding amongst the unit as it relates to cost and patient care. Preparation continues to be the most important aspect of a successful budget process and involves nurse managers/leaders in collecting the appropriate data as well as monitoring, evaluating, and communicating any variances (Foley, 2005). Organizations are more effective and efficient at providing services when budgets are thoughtfully prepared and adhered to throughout the budget period.

Strategic Management of Haigh’s Chocolate

Table of Contents 1. Executive Summary1 2. Current Situation3 3. External Environment4 3. 1 Macro Environment4 3. 2 Porter’s Five Forces Model of Competition8 4. Internal Analysis10 Strength10 Weaknesses14 5. Strategic Factor Analysis Summary (SFAS)17 6. Current strategic21 6. 1 Business-level strategic21 6. 2 Functional-level Strategies23 6. 3 Corporate Level strategies24 7. Recommended strategies26 7. 1 Business-level strategy26 7. 2 Functional Strategy28 7. 3 Corporate strategy31 8. Implementation36 Reference List40 Appendix43Appendix A: External Factors Analysis Summary (EFAS)43 Appendix B: Internal Factor Analysis Summary (IFAS)44 1. Executive Summary The following marketing plan forms the basis for achieving Haigh’s company vision of becoming a successful top quality chocolate confectionary provider. The recommendations based on the analysis contained in this report allows us to outline the best strategies to follow for the achievement of the company’s stra tegic goals. The confectionary industry in Australia is dominated by few large players with fiercely high competition.Whilst the target market Haighs plays – targeting consumers seeking high quality premium chocolate, Haighs is one of very few providers, but the quality of chocolate provided for substitutable brands are also reasonably high. Haighs would need to ensure differentiation in their product quality; brand image, brand loyalty and brand awareness to be competitive within the market place. Haighs being a family owned and operated business, their consistent management style ensures its operational control in all areas of business are strategically aligned.In analysing Haigh’s external and internal strengths and weaknesses, operational efficiency and consistency such as efficiency in production process and stringent quality control process are found to be the main strengths whilst risk of easily being substituted with cheaper chocolate confectionary products and lack of diversified management experience due to being family operated business, are stated to be the main determinant in realizing further success for Haighs.Whilst change of management structure in view of introducing wider range of management experience is outside of this marketing plan’s scope, in order to overcome the determinant analysed, there are number of other areas Haighs can look into. In order to improve efficiency, strengthening of relationship with Haigh’s suppliers is recommended. Whilst Haighs has been successfully maintaining high quality chocolate production, this is required to ensure high quality products are continuously delivered for the future. Cross training of staff to increase labor efficiency is also recommended.Through having staff cross trained, Haighs can enjoy use of less employees and savings will arise from it. Active marketing activities are also encouraged. Haighs can look into wholesale supply into large hotels or exclusive dining places to create economies of scale. Through innovation, it would need to further develop its product in accordance with today’s consumer preference. Low fat, low sugar with high quality chocolate is recommended and opening of Haighs branded cafes that will bring new experience to its consumers are suggested.Haighs being the exclusive chocolate brand with high risk of being substituted into other brand, brand loyalty is the key in Haigh’s success. Launching of loyalty program, discount for seniors, and connecting its customers via social network sites are examples of building brand loyalty for Haighs. The report concludes by providing implementation plan to adopt the above recommendation that will help Haighs to remain competitive, sustainable and successful within its chosen market. 2. Current SituationHaigh's was founded in 1915 in Adelaide, South Australia by Alfred E Haigh and has been successfully run by his son, grandson, and great-grandsons, Alister Haigh who is current CEO. It is the oldest family-owned chocolate manufacturing retailer in Australia and one of the very few manufacturing retailers in the world still making chocolates from raw cooa beans and more than half of their chocolates are handmade, using artisan skills that require many years of experience to perfect (Haight's Chocolates). Haigh’s vision is delivering a world-class chocolate experience every time (Haigh's Chocolates).Its value is that they will be caring and considerate of their employees, customers, suppliers, shareholders, the community and the environment by showing respect to each other and valuing diversity, working together to achieve a safe, friendly and positive working environment, setting clear expectations, recognising contribution and developing their people, leading by example and taking responsibility for their actions, communicating clearly, inclusively, honestly and in a timely manner, having pride in their product and passion for the business, its heritage and its future and contributing to the community through corporate benevolence and environmentally sustainable practices (Haigh's Chocolates). Haigh’s chocolate currently has over 300 employees and 13 retail stores; six in Adelaide, six in Melbourne and one in Sydney (Haight's Chocolates). They manufacture 200 different products and also produce a number of products whose sales supports various charities. (Soong-Kroeger, 2011)Haigh’s Chocolate provides quality products and service throughout Australia and make sure to produce only the best raw materials from start to finish, and stationing agents in Europe for first pick of the finest imported cocoa beans is only the beginning. They are fairly well vertically integrated. They make chocolates and then transport or arrange for them to be transported to their own retail shops, which mean that they control the whole process to ensure that their customers get the highest quality and freshest products (OrmanSas ha, 2011). 3. External Environment External environment is an uncontrollable element that effects an operation.However, by carefully analyzing external factors that relate to the company’s industry, a company would deal with uncertainty in the market and be able to take appropriate actions to any upcoming events. 3. 1 Macro Environment Political/ Legal Confectionery manufacturers are required to follow significant regulatory restraints especially in relation to food safety, product labeling, occupational health and safety, competition and consumer law, employment law as well as taxation policies. The regulatory requirements are sources of cost increase to manufactures. However, the regulations are necessary in order to guarantee the right for consumers, employees, competition and the quality of products.Failure to follow regulations might lead to significant negative publicity that can damage the reputation and brand of the company. Product safety regulations: Chocolate and c onfectionery manufacturers must strictly follow food and health regulations. The regulations are aimed at maintaining high levels of food hygiene and protecting the consumers against health threats related to unsafe food. Confectionery manufactures are currently regulated by Food Standards Australia New Zealand. This regulatory organization is responsible for the implementation of the Australia New Zealand Joint Food Standards Code (IBISWorld, 2010). The Code also requires industry manufactures to comply with labeling requirements and serving size restrictions.In particularly, agreement with the Code demands manufacturers to supply information on the percentage share of ingredients used, nutritional information or any materials that might cause allergy like nuts. These requirements have been broadly censured for putting extra costs on manufacturers in the industry. However, with consumer groups reinforcing their demands for more nutritional instruction on product labels, the industr y is required to put more attention in implementing the regulation. Besides regulations relating to health and safety or employment, confectionery manufacturers also must conform to environmental regulations set out by the Federal and State governments.These regulations include water usage, energy usage; wastewater disposal and the treatment of waste resulting from manufacture process. Economic At a difficult time of the economic uncertainty in Europe and the USA, Australia continues to have stable and favorable economic growth. The real GDP, which grew by 1. 3% in the first quarter of 2012 over the previous quarter, demonstrates the stability of household consumption expenditure (IBISWorld, 2010). The increase in consumer spending might reinforce sales revenue of the industry. Given that, consumers of Haigh’s chocolate might not need to concern about cutting their spending on premium chocolate products and going for cheaper brands in the market.Raw materials including cocoa, sugar, milk, flavorings, sweeteners and oils represent primary inputs in the production process and any changes in their price affects industry supply. In confectionery industry, sugar is a primary input in the manufacturing process and an increase in the price of sugar will significantly impact production costs. Higher sugar prices recently will reduce manufacturing profitability unless firms can pass these costs on consumers. However, the trading environments in Australia and overseas are highly competitive, there is usually limited opportunity for manufacturers to raise selling price for their products. Moreover, the increases of post-production expenses in advertising and marketing campaigns will also unfavorably affect company’s profitability.As can be seen, the confectionery industry in Australia is highly competitive with a large number of new product lines introduced by various industry players; therefore existing manufactures in the industry need to create more exte nsive promotions and marketing programs. Socio-cultural Two key factors affect domestic demand and consequently determine future consumption structures is lifestyle change especially health consciousness and changing demographic form of the Australian population. The trend of public awareness about health and nutrition for food products is having an adverse effect on demand for sugar-based confectionery products like chocolate. Australians have become more attentive to their consuming food and account for factors such as sugar and fat content, quality of ingredients before deciding on a brand or product.Nutritional factors can affect sales revenue therefore companies in the industry are forced to be more innovative in producing low-sugar products and using organic material to meet the demand of health conscious consumers. Changing demographics of the Australian population also may affect the industry. Ageing population is growing dramatically in Australia as can be seen proportion o f young people will fall drastically while senior citizens will increase by up to 1% per year. Typically, young people tend to consume more confectionery products compared to the elderly, as people tend to develop a preference for savory food with age (IBISWorld, 2010). The result of ageing population’s raising might lead to lower total sales of the confectionery products.In general, an increase in disposable income will force spending on discretionary goods such as confectionery. According to Australian Bureau of Statistics, in the March 2012, national disposable income increased 3. 5% compared to the same period of last year (IBISWorld, 2010). However, a growth in income may also encourage consumers to change to more expensive and premium chocolates rather than increase the volume of confectionery purchased. Technology The introduction and the adoption of new technology have improved cost and operating efficiencies as well as reduced the need for labor for manufacturing, st oring, delivery and distribution. Keeping the basic production process, chocolate manufactures are using new technology to develop their recipe.Automation and computer directed controls also have been used widely in the production process to be more time efficiency and greater quality control (IBISWorld, 2010). The introduction of quality assurance systems such as Hazard Analysis Critical Control Point (HACCP) has helped the food industry in improving safety standard. Product safety plays an essential role in preserving the industry’s reputation as a healthy and reliable food manufacturer. In regard to marketing and distribution systems, E-commerce is used by manufacturers to improve customer and supplier arrangements and networks, leading to cost savings through better inventory and production planning. The widespread of social network also creates a new way for manufactures in marketing, building brand and reinforcing relationship with consumers.Environmental Raw materials of chocolate production including cocoa, sugar, and milk are natural sources; therefore a change in climate will considerably impact on the industry. Natural disasters like flood, drought might result in scarcity of a resource and force its price to an unfavorable level to manufactures. Moreover, consumers nowadays are more aware of environmental sustainability. They likely prefer to use environment friendly brands or products in order to reduce the negative impacts on the environment. As a result, confectionery manufacturers have been attempting to â€Å"go green† by using recyclable or reusable packages for their products.In particularly, Haigh’s chocolate has committed not to use any plastic bags to reduce the environmental effects of packaging on the environment (Haigh's Chocolates). The company also stated that in order to be energy efficiency, rainwater is collected and stored in large underground tanks, then filtered and converted into steam providing indirect h eat for cooking processes. In addition, their recent factory upgrade was designed to consider energy and water conservation. The major sources of food industry waste include packaging, fats, oils, syrups, nuts, candied fruits, dusts and powders. Manufactures need to reduce environmental impacts associated with waste disposal and consumption of resources by waste management programs.Furthermore, the effort in saving energy also help manufactures in reducing energy costs and minimizing energy-related greenhouse gas emissions. 3. 2 Porter’s Five Forces Model of Competition Power of Buyers: Medium Australian confectionery producers sell their products to two major purchasing groups: large retail outfits and wholesalers including large supermarket chains (Coles, Woolworth, Big W, Target, Kmart), convenience stores, petrol stations, and department stores (IBISWorld, 2010). However, instead of selling products to large retail stores, Haigh’s chocolate has integrated forward i n the market and have its own retail stores. The main purchasers of the company are individual buyers who have noticed Haigh’s unique quality products and exclusive taste.By having good awareness of the brand and finding it is hard to get this quality products from others, the buyers would not easily switch to other brands therefore it lowers their bargaining power. (Low) Low switching cost due to the buyers can easily switch to other substitutes such as cookies, ice cream, and snack foods. (High) As consumers are more aware of health and nutrition for food products, demand for sweets and chocolate, which have high level of cholesterol and sugar–contained, would reduce. Healthier food might be preferred in consumers’ choices. (High) Large retailers like Coles and Woolworth would be potential threats if they implemented backward integration (Low) Power of Suppliers: LowThe primary materials in manufacturing of chocolate are cocoa, sugar and milk. Referring to sug ar and milk, there are various suppliers of these sources available in the region or country; therefore supplier concentration and differentiation of inputs are low. (Low) There are also various cocoa farms around the world especially in the developing countries; therefore the chocolate manufactures are important purchasers of these suppliers. As a result, the chocolate suppliers’ bargaining power is typically low. Nonetheless, as Haigh’s chocolate requires premium quality of cocoa, which is only produced by a small part of suppliers in the world, the bargaining power of high-quality cocoa beans suppliers will be stronger. High) Moreover, chocolate manufacturers might not avoid the threat of suppliers could vertically integrate forward to take part manufactures’ role. (Low) Threats of New Entrants: Low The threats of new entrants are low due to the barriers to entry are high. Entry into the premium chocolate market would require new entrants a large capital inve stment for branding and product facilities. Furthermore, new entrants also have to face with major players in the market with a long history and success. These dominant companies enjoy high brand and customer loyalty and have significant resources to invest in advertising and promotions to protect and grow their market share.In addition, these companies also have built strong relationship with main suppliers in the industry including grocery stores and supermarkets that would be challenging for new entrants to secure. (Low) Government regulations and policies about food safety and quality of products might be costly and difficult for new entrants to enter in the industry (Medium) Competitive Rivalry: High The intensity of rivalry among competitors in an industry can create price wars, advertising battles, new product lines, and higher quality of customer service. The Chocolate manufacturing industry is extremely competitive, with the major players aggressively competing for market s hare.Haigh’s chocolate has potential competitors including large-scale or international companies like Nestle, Kraft Foods, Mars, Lindt chocolate, Cadbury as well as several imported brands. In a competitive environment, there is usually limited opportunity for manufacturers to implement selling price increases for their products due to price sensitivity of consumers. Consumers can easily switch their preferences for a premium brand to a lower-priced substitute. Furthermore, it is also hard for Haigh’s chocolate to compete with these huge companies who have distributed their products widely in large supermarkets with cheaper price range for similar products. Substitutes: HighThe chocolate industry must compete with different ranges of substitute products including snack foods, cakes, cereal, and biscuits as well as substitute brands. The large number of substitutes makes manufacturers feel hard to increase their products’ price as consumer can easily switch to c heaper substitutes. In addition, the change in lifestyle of being more health consciousness would switch the spending of consumers in sweet or chocolate products to healthier substitutes. The External Factor Analysis Summary (EFAS) is included in Appendix 1. 4. Internal Analysis The internal analysis process is aimed to point out the sustainable competitive advantages of the company.The advantages can be achieved when a firm has the ability to undertake value-creating activities and use its unique resources and capabilities to create new core competencies. Haigh’s has a long-standing history and has strong resources that create its competitive advantages. Haigh’s resources including tangible and intangible which are analysed to define its capabilities and core competencies in the chocolate market. Strength History ‘Haigh’s chocolates is an Australian brand associated with fine chocolate, premium gifts and outstanding retail experiences. Haigh’s choc olates are predominantly retailed through their own retail network’. Haigh’s prides itself on a long history of premium quality, consistency over its 87 years of operation. It is a privately owned family business.This history of quality and consistency aids to a competitive advantage over a number of other chocolate manufacturers and distributors, and assist in high customer loyalty and increasing profits. Quality Haigh’s targets itself as a premium and quality brand. Their major strength in their market is the quality and consistency of their production and their ability to maintain the level of outstanding quality over the course of its long history. Haigh’s manufacturers their chocolate as a premium chocolate brand. They manufacture their chocolate as a traditional small batch manufacture; therefore it is not mass-produced and has a greater quality and level of control over all products.The ingredients are all high quality local produce including cocoa beans, sugar and milk, which are then manufacturer into premium chocolate. It is an Australian made product with entirely Australian ingredients and packaging, which is another strength to increase customer loyalty and satisfaction. Customer Service Haigh’s promotes itself through great customer service, training is provided to all staff members with focus on customer service and product knowledge. Throughout Australia they employ 120 staff members and each staff member is provided with a high level of training upon employment and throughout the duration of their employment in the company. On purchasing a product, customers are handed a chocolate they have not tried with a white glove.This gesture adds to the premium brand image and creates an atmosphere, which customers want to return. Having customers try a chocolate they haven’t tasted increases repeat customers and high customer loyalty. Haigh’s does have limited marketing, its main focus is on in-store mar keting, and therefore this extra service does provide great in-store marketing and creates customers to be aware of products they have known about, and therefore repeat purchases. Control of production and distribution process Haigh’s being a private family run business gives them the strength of having the ability to control the whole production and distribution process.They control the production right through from purchasing raw materials, manufacturing, distribution, and retail to the final end consumer without any other distribution involved. Therefore if Haigh’s chose to outsource some production and distribution services they would loose total control over their products. Having total control and ownership allows them to ensure total quality and consistency over every product manufactured and distributed. Diversification of products and prices Haigh’s product range, ranges from very small packages retailing for a few dollars to large premium packages cost ing over a hundred dollars. It does have products to suit all price ranges.Having this large product range allows them to target a large number of consumer groups. Although they do have a large product range, their primary focus has been on the expensive premium products in previous years. As a result of the global financial crisis sales dropped in the smaller items, however they weren’t greatly affected by the premium products. During this time consumers were still spending on luxury chocolate products. Economic factors During times of economic decline, consumer spending does decrease. However with Haigh’s large product list, it does allow them to focus on products that consumers want to purchase during a period of decline.During the global financial crisis consumers were not spending money the lower cost products, however they were still spending on luxury products and gifts. Therefore during this time a high focus was put on the premium luxury products to maintain p rofit levels. During a time of economic decline Haigh’s does not reduce its prices. This is done to retain their reputable brand image of high quality premium products. Environmental Today consumers are becoming more environmentally aware and trends are rising in this field. Haigh’s understands that they can make a change in the practices. Haigh’s is highly focused on environmental factors and a lot of consideration is involved with the production, distribution and production of their products.Haigh’s has a strong commitment to several environmental issues including sponsorship and financial support for the bilby, a threatened marsupial native to Australia. They were the first ones to produce the bilby for Easter, it is now a continued tradition, and has created extreme awareness about the endangered marsupial. They have a policy of using recycled or recyclable packaging material and have their own internal recycling program, they carefully consider the i mpact it’s packaging and distribution methods have on the environment and on the community. ‘Haigh’s chocolates has long been concerned about the minimization and sustainability of packaging choices.The principles reflected in the Sustainable packaging guideline have been incorporated in the design, selection and planning of their packaging for many years Therefore their action are designed not around changing the processes but more around formalizing the recording and reporting behind these processes (Haigh's Chocolates). Packaging Haigh’s packages their products in a very cost effective manner however still enhancing their premium product model. The majority of products are packaged in white boxes, with brown tissue paper with a Haigh’s sticker. During Christmas and Easter and other major holidays, thick colorful foil is used for eggs and other products, this creates a premium look, it cuts costs from using boxes and they can distribute more for l ess. For premium products and gifts, tins are used. This is costly however these are used for the high end products. Online storeHaigh’s online store is a key strength for their consumer base and their distribution; they currently operate in 3 states with 6 stores. This is highly limiting for consumers in outside regions. The website offers consumers all the facts on their chocolate including company history, the chocolate, and the current products available. It also allows them to purchase the products therefore highly increasing their distribution levels. Brand image Haigh’s focus on quality, consistency and customer service has lead to a very highly trusted and recognized brand in Australia. This has been a major aid in sales increase and customer relationship solidification. Haigh’s marketing and promotion is through in-store and word of mouth marketing.The company does not focus on mass media campaigns and yet the brand has still managed to grow very consis tently. It is the quality of customer experience and product quality, which accelerates the companies growth. It is unsure as to whether increased advertising and promotion would support the brand or whether it would get rid of the exclusivity and luxurious image the brand currently represents. Weaknesses Market Entry To enter into the market it is relatively easy for competitors. It has low costs to set up a retail store, however competing can be difficult and they are up against the high brand image, quality, history, taste and the consistency of competitors’ products.No outside executive team Haigh’s is a private family owned business; therefore there is no outside executive team. The family is in total control, there is no external chief executive that can come and make changes if required, and an outside perspective could possibly enhance and develop the business further. Raising capital As it is a private company, in order to raise extra capital can be very diffi cult. One Product Company Haigh’s is a one-product company selling chocolate, which therefore reduces their target market significantly. Through expanding their product range their could therefore expand their target market thus increasing profits.This extension could be done through related product such as cookbooks, utensils and serving plates. Shop Locations Haigh’s currently operates in Victoria, New South Wales and South Australia with 6 stores, therefore they are not a majorly well-known brand in the chocolate industry, and based on industry data they represent only 1. 1% of the total Australian chocolate market. Through expansion of their stores in more states and territories in malls and up market suburbs within Australia could significantly enhance and develop the business, and create greater brand awareness. Marketing Haigh’s marketing is virtually exclusive through the shops, not a well-known advertiser on television, radio or print media generally.Th is as a result saves a lot in marketing costs, however does not highly promote the brand. The cost of not having outside marketing may be overridden through the increase of profits they may receive if they were to further promote the brand. Haigh’s could focus on low cost marketing to support an expansion in the stores, getting their products to the consumers would greatly increase profits. Haigh’s competitive advantages Haigh’s has a number of advantages over competing organization. The main advantages being consistency of product/ their long history and the overall brand image. The brand image is one of premium and luxury products. It portrays to consumers a sense of profit compared to other companies.Seasonal products and collectors items are very expensive, however due to Haigh’s brand name, specific consumers want to purchase the deluxe items offered, which other chocolate companies do not offer. Lindt chocolate used to have a very expensive and prem ium brand name. However now that they have expanded and is readily available and predominantly on sale, the quality theme has disappeared whereas Haigh’s has retained their premium image. Core competencies Haigh’s competencies are that of production and good quality chocolate products. Their major competency is their quality and consistency of production, which has remained at the same level for many decades.The core products remain the same over time; seasonal items such as during Christmas and Easter can change from year to year. At the retail end, their high quality packaging, shop design and product design is a major expertise of Haigh’s, whish high quality and reliability. Their product presentation is consistent; when new products are available there is an expectation that it will match the high quality range. Their tours in Adelaide highly promote the skills and capabilities of Haigh’s, the public see how they make the product range for free, revea ling to the public how good its product capabilities are, especially in Adelaide which is highly competitive and hard to compete. Tangible and Intangible resources and capabilitiesHaigh’s primary activity is the manufacturer, retailer and distributor of high quality chocolates, with retail outlets and distribution across Australia and online. Tangible resources Haigh’s has to majorly rely on their own ability to raise funds though their own capital, which is a pitfall, as if they wanted to expand in order to build their brand it is quite difficult. Their organic and local sourced ingredients are the most important resource to continue the quality and consistency of their products. These ingredients are the core resource for Haigh’s as they are a one-product company. Ensuring the same quality and consistency throughout their products relies heavily on their raw ingredients. Recipes are provided through the shop, highly builds the brand.Recipes for different choco late desserts are complementary for customers. All manufacturing equipment is of high standard to produce the high quality and consistent chocolate. Intangible Haigh’s has a team of experienced chocolate makers and retail staff that bring their knowledge and skills together to build a dynamic company and retail know how. Their innovation towards sustainable packaging and creating awareness about Australia’s endangered animal the Bilby has been a significant resource. Both the tangible and intangible resources all result in helping to promote value adding activities and an overall profitable company with a strong brand image. The Internal Factor Analysis Summary (IFAS) is in Appendix 2 5.Strategic Factor Analysis Summary (SFAS) External Factors| Weight| Rating| Weighted Score| Comments| Opportunities| New innovation and advanced technology| 0. 05| 5| 0. 25| Assist the company in production efficiency and reduce costs. | Current stable economic growth in Australia/ consu mers’ confidence| 0. 04| 3| 0. 12| Reinforce the spending of consumers in discretionary goods. | Availability of materials/suppliers| 0. 04| 4| 0. 16| Lower the bargaining power| High demand in Asian market| 0. 03| 3| 0. 09| Open up new market/ expansionary | Threats| Extremely competitive environment| 0. 06| 5| 0. 3| Need to be more innovative| Increase consumers’ health consciousness| 0. 3| 4| 0. 12| Decline the demand of consumers for high sugar, cholesterol, fat products | Various substitutes/Low switching costs| 0. 05| 4| 0. 2| Decline the sale revenue, brand loyalty| Government regulations| 0. 02| 1| 0. 02| Costly, create limitations| Natural disasters | 0. 02| 2| 0. 04| Effect the price of raw materials| Increase in costs of raw material/ costs of advertisings/ labors | 0. 04| 3| 0. 12| Increase products’ price, the company might have to pass these cost to consumers| Strength| History| 0. 02| 1| 0. 02| Long history of quality and consistency strengthens b rand image and customer loyalty. | Quality products| 0. 05| 5| 0. 5| Uses high quality raw materials to produce the finest chocolate and is very consistent with the level of quality for every product range. | Customer service| 0. 05| 5| 0. 25| Highly trained staff in providing a high level of customer service, enhances brand image and reputation. | Total control over production and distribution| 0. 05| 4| 0. 2| Allows Haigh’s to ensure total quality and consistency over every product manufactured and distributed. | Diversification of products and prices| 0. 05| 4| 0. 2| Broadens target market. Ability to attract a large number of consumers. | Economic factors| 0. 02| 2| 0. 04| There is no significant decrease in sales during times of economic decline. | Environmentally sound| 0. 02| 3| 0. 6| High focus on the environment using environmentally friendly products and distribution methods. Creates awareness of the endangered Australian native Bilby. | Packaging| 0. 02| 3| 0. 06| Uses a cost effective approach while still maintaining a premium and luxury brand image. | Online store| 0. 03| 4| 0. 12| Enables distribution of products to reach a broader range of consumers who are not within the vicinity of store locations. | Brand Image| 0. 04| 5| 0. 2| Key to building long lasting customer relationships and for attracting new customers. | Weakness| Market entry| 0. 04| 3| 0. 12| Easy for competitors to enter market, relatively low costs to set up retail store. No outside executive team| 0. 04| 2| 0. 08| Haigh’s being a privately owned family company has not outside team, which may affect decisions and growth. | Raising capital| 0. 02| 2| 0. 04| | One product company| 0. 05| 4| 0. 2| Through expanding their product range their could therefore expand their target market thus increasing profits. | Shop locations| 0. 05| 3| 0. 15| Limited shop locations, limiting the availability to consumers. | Marketing| 0. 07| 3| 0. 21| Marketing is through in-store and word of mouth. Marketing increase could create a larger customer base. | Total weighted score| 1. 0| | 3| | 6. Current strategic 6. 1 Business-level strategicWhen the company has determined its mission and vision, analysed the external environment and recognised internal strengths and weaknesses, management has to select appropriate strategies. To choose strategies should generate a competitive advantage in order to maximise the market value of the existing owners' equity (Hilier et al. , 2009). Business-level strategies, functional-level strategies and corporate strategies are the component in the strategy management. The main focus of Business-Level strategy is deciding which product or service to offer and how to distribute it. It is clear that Haigh’s chocolate focuses primarily on differentiation as its Business-Level Strategy. Own production lineAustralia does not have a viable cocoa growing industry so the beans are imported from overseas. Haigh’s is a family bu siness that is small enough to take delicate care in each process to ensure that they deliver the best quality chocolate. They protect their production line from getting the best cocoa from Europe and using their own chocolate manufacturing before distributing to their own retail stores, making this a good example of product differentiation, hence the higher price. At Haigh’s chocolate store, the differentiated product is the entire service, the quality chocolate and the experience in the store, not just the product directly purchased. Product DifferentiationUnlike cost leadership strategies, product differentiation aims to produce goods and services that customers perceive as being different in important ways. To build a successful product differentiation strategy, it is key to be able to continuously and consistently upgrade the differentiated features. Haigh’s has approximately 250 different product lines that rotate throughout the year (Natalise, 2012). The differe nt stores in different regions have their own preferences and are able to produce their own chocolate flavour according to the differing demands on their customers. Delivery system Haigh’s chocolate also offers delivery, costing an additional amount determinate upon the weight of the chocolate.This can be very convenient for customers as although the cost is quite high, customers are able to choose the Haigh’s product as a gift for others due to the high quality of the chocolate. Haigh’s should look to implement more control over this delivery system with the potential to include dry ice or other temperature controlled delivery vehicles to ensure the chocolate is kept at its high quality during the delivery process. Differentiated customer service To build up customer loyalty to the company, Haigh’s chocolate is able to create a differentiated service for them. We treat everyone with respect whether they are coming in for a $1. 20 chocolate frog or a $100 box of chocolate. We give a world class experience. (Orman, 2012).In addition, around 40,000 customers visited Haigh’s chocolate every year, Haigh’s is able to give a different customer experience centred around the quality of the chocolate and encourage many customers to experience new or different chocolates but offering a free chocolate factory tour with samples. 6. 2 Functional-level Strategies Functional-level strategies consider a company's ability to attain â€Å"superior efficiency, quality, innovation, and customer responsiveness† (Hanson et al, 2011). Haigh’s chocolate also implements lean thinking process for the manufacturing strategy which enables to minimise non-productive activity and doing it right the first time. This strategy has been credited as a significant reason behind the recent success. (Austin, 2010) ProductionConsidering the production and due to the large number of products, they are able to spread high fixed costs of warehous ing and delivery to the retail stores around Australia. Moreover, learning effects are stable due to a consistent management, considering the order processing, Haigh’s chocolate is working very efficiently, too. High-quality automated chocolate factory increase the functionality of bringing the product to the end-user immensely Marketing From a marketing perspective, Haigh’s chocolate is the family company but applies a very efficient branding strategy. Good branding strategies are important for a business, because brands represent â€Å"consumers† perceptions and feelings about a product† (Jager, 2010). The company was able to build trust in Australia.Haigh’s chocolate is updated online often and efficiently, on the other hand due to the small number of the retail stores available around different area in Australia, they are given different advertising camping to keep customer loyal and engaged. Furthermore, Haigh’s chocolate also focuses on improving the brand awareness. Customer Responsiveness Customer responsiveness includes knowledge and acknowledgement about what the customer needs (Siegel, 2002). Furthermore, it is important not to compromise long-term profitability. Superior customer responsiveness will be achieved through superior efficiency, superior quality and superior innovation (Hansen et al, 2011).Through Haigh’s website, the design enhances their focus on customer needs and assists the company to detect better ways to satisfy them. Haigh’s chocolate is always looking for a new flavour of chocolate to fill up customer needs, making a variety of chocolate is the way to keep customer keeping coming back. Haigh’s chocolate store is also focused on providing a different theme at different periods to impress the customer in-store experience. Haigh’s chocolate is doing amazing job on their window display to attract customers, such as Sydney CBD store always has an eye-catching displa y to customer who walk past the store. 6. 3 Corporate Level strategiesConcentration on a single business The corporate strategy of Haigh’s chocolate is concentrated on a Single Business. Haigh’s chocolate focuses on its new technology, managerial and customer demand to stay in the strong competitive environment has made the company famous throughout Australia. Haigh’s chocolate makes quality chocolate through new technology introduced in their chocolate factory. The use of only the highest quality ingredients make sure the customer enjoys the best quality chocolate. Haigh’s believes in quality from start to finish. Haigh’s chocolate comes from the first pick of best cocoa beans in Europe and deliver the best raw material from the start.Haigh’s has a large variety of chocolate ranging from small chocolate frogs up to $100 gift hampers, there is a huge range of different chocolate varieties with a great price range to suit all customers budget s. There’s something for everyone in our shops (orman, 2012). Haigh’s produces their own chocolate in their factory located in Adelaide. Through only producing one product it allows the company to heavily focus on its managerial, financial, technological and physical resources in producing only chocolate. Tapered integration Haigh’s chocolate is considered as Tapered integration, for example Haigh’s chocolate imports the raw cocoa beans from overseas.Comprised of a chocolate maker and a transport company to arrange for the transportation to either individual customers in the case of online purchases or to retail shops, therefore the company has control of the whole process to ensure that their customers get the highest quality and freshest products. Using their own company supplier gives better control over the inputs and outputs in the operation. This control ensures that the Haigh’s chocolate family brand maintains a level of quality that it woul d not be able to guarantee if it were using suppliers that were not owned by the company. A strong level of quality control, and as such they can be certain that every part of the production process is line up to the aspect of Haigh’s chocolate.Its vertical integration has built strong barriers to entry, which enables to protect its product quality and make it costly for a company to enter the industry. International strategy Haigh’s chocolate has no international market so far since they have failed get into the Japanese market due to the certain issues such as pricing and developing new products for a different market. A further push from the company is expected in the next few years; however the Japanese mistake did cost the company a lot of money. A push into the Asian market, most likely to China or India, is expected in the next few years due to the high potential of growth in these markets with the potential recovery of the Asian markets. 7. Recommended strategi es 7. Business-level strategy The business level strategy is ‘an integrated and coordinated set of commitments and actions design to gain a competitive advantage by exploiting core competencies in specific, individual and product markets’. The following recommendations for Haigh’s will effectively exploit their core competencies. (Hanson et al, 2011). The key issues include what products and services to offer consumers, how to manufacture their product and how they are going to distribute their product’. (Hanson et al, 2011). These areas have been effectively obtained by Haigh’s however needs further enhancement and development to improve and grow the brand.From analysing Haigh’s current business level strategies it has been identified that Haigh’s is strongly focused on differentiated products. This has been a major strength for Haigh’s focusing solely on this model, and targeting a specific target market. It is strength howeve r in order to further expand the brand, broadening their selected target market would be highly beneficial and profitable. The implementation of the differentiation strategy has lead to a sustainable competitive advantage. They are one of the highest quality chocolate companies in Australia and need to continue with this strategy in the future to continue with the growing success and profitability of the company. Introduce new cost competitive product lineHaigh’s is a one-product business, therefore making it difficult to expand their target market and reach different groups of customers. Through implementing a larger product range it would be highly beneficial and profitable for the company. The brand image that Haigh’s currently has is one of very high quality. Therefore products need to be introduced that are related and at the same standard. Products that could be introduced into the business would include. Cook books, chocolate cooking utensils and serving plates. Chocolate cook books should be sold which would inspire customers to cook using Haigh’s chocolate. Haigh’s could also release their own cookbook from using the hundreds of recipes they have offered in store over the years.Cooking utensils such as chocolate molds, tempering machines, chocolate kits etc. Through adding these extra products to their product range it would highly boost sales and create a higher consumer interest for the brand. The implementation of these extra products to the line would not be a difficult task as they have most established areas such as distribution, retail outlets and staff. Haigh’s would just need to find suppliers for the products. Differentiated customer service Haigh’s customer service is an area that is highly successful and profitable to the company. Haigh’s creates a differentiated service for customers that is very unique to their company.This area within the company is recommended to remain at that same leve l of quality. Customers are treated with extreme respect no matter what you are spending within the store. They provide a ‘world-class experience’. Upon purchase they are handed a chocolate in a white glove. This encourages customers to experience new or different chocolates. Haigh’s does need to focus on this area as they must ensure the quality and consistency of their customer service remains the same over time, and throughout all stores. It is highly important as this may determine weather or not customers return to a Haigh’s store. Delivery system Haigh’s chocolate does offer delivery, which does cost extra determined by the weight of the chocolate.This is convenient for customers who live outside the region where Haigh’s does not have a store. The additional price of delivery is quite expensive. As Haigh’s chocolate is expensive this extra cost means that it is not a preferred method for consumers and is not a highly profitable a rea for Haigh’s. It is also hard to transport packaged chocolate, due to temperature requirements. Haigh’s currently operates in 3 states in Australia. Victoria, South Australia and New South Wales. In the future Haigh’s should look at expanding their retail stores to other states and territories including, Western Australia, Northern Territory, Queensland and Australian capital territory.Through having retail stores across every state and territory across Australia it would be highly beneficial. It would expand their brand and customers. In order to become a more profitable business, Haigh’s needs to expand their store locations and introduce a large number of new consumers to the company. This process would initially be very expensive, however upon establishment it would be highly profitable to the company. Their main core competency is that of production and good quality chocolate products. Their quality and consistency of production, which has remaine d at the same level for many decades. At the retail end, their high quality packaging, shop design and product design is a major expertise of Haighs.Haighs needs to focus on their core competencies and effectively advertise to their selected target market to create more awareness about their brand and products. The recommended strategies will exploit Haighs core competencies and will help develop a stronger brand. 7. 2 Functional Strategy * Efficiency Keep practising the lean production Haigh’s chocolate so far has applied well significant strategies to maintain their efficiency in the manufacturing process. As can be seen, Haigh’s has adopted the lean production with the attempt to eliminate waste and to cut down non-productive activity and errors of products (Austin, 2010). The lean production also assists the company in using efficiently resources of labor, materials, space and time.It is recommended that besides continuing to practice the lean production, Haighâ₠¬â„¢s should start to analyze and focus on what they can do best or what product lines have more interest from consumers in order to maximize productivity. Strengthen relationship with supplier of key inputs The price of raw inputs like sugar and cocoa can be highly volatile due to uncertainties in the external environment such as weather, season, industry competitors or global economy. Contracts with suppliers will help the company to guarantee the price and availability of raw materials if any unpredictability events might occur in the market. Start applying the learning effects to improve labor productivity Learning effect will help the company in diminishing the cost of production per unit as more output will be produced per labour unit over the same amount of labour hours’ input.The learning effect not only requires labours but also managers to be involved in the production process. Managers will get used to with the process and be able to use the resources and arrange t he production process more efficiently thus leading to more output for the same amount of input. In order to carry out the learning effect, the company needs to start with comprehensive training program that enables their employees to perform multi tasks within each store such as cashiering, stocking and sales presentation. When staffs are flexible with the tasks they can do, the retail store could reduce the cost of labour. Being more incentive in marketing plans Effective marketing will help the company to seize larger market share.Haigh’s has been carrying out their marketing strategy based on in-store promotion and word of mouth. This strategy assists Haigh’s in saving cost; however, the company has not represented a remarkable market share in the industry. For example, with consumers who live in suburbs of NSW where Haigh’s stores do not exist, they properly are not aware of the brand and are not willing to travel too far to purchase the products that they would get conveniently from local supermarket. The common marketing tools would be applied to kindle new interest in existing product lines including social media and free gifts inside packaging, event sponsorship or taking part in food expos.For distribution channel, Haigh’s also can extend their supply to large purchasers such as up-scale hotels that require high quality products rather than just focus on individual buyers. Haigh’s premium products will be suitable for five-star hotel market. With this channel, Haigh’s will be able to sell larger amount, which would create economic of scale for the company. * Innovation Catch the consumers’ trend Failure to seize the consumers’ trends might lead to failure of the business. Consumers nowadays are having more awareness of health and nutrition in consumption decisions. In order to satisfy that need, Haigh’s need to be more innovative about the low-fat and low-sugar chocolate segment.Furthermo re, Haigh’s also can reduce the portion size of their product lines by producing â€Å"a small version† of original products in order to lessen the calories intake of consumers. It is also necessary for Haigh’s to promote the benefits of cocoa and dark chocolate to health in particularly for heart disease and antioxidant protection. Organic and free trading are also necessary movements for Haigh’s to raise consumers’ interest in the company. Extend into cafes The expansion into cafes might help Haigh’s to create a new product range. The innovation of cafes based on chocolate beverages and desserts will remark a turning point for the business. It not only helps Haigh’s to boost the sales of chocolate but also gives Haigh’s customers a new experience. * Customer responsiveness Building a strong brand loyaltyHaigh’s chocolate has created a great customer service by training staff and offering to them an intensive knowledge about products and branding. However, Haigh’s has not strongly focused on building brand loyalty. It is necessary for Haigh’s to engage and maintain the relationship with loyal customers by providing member cards, discount cards for large purchases. By implementing the loyalty programs, Haigh’s customers will feel they are valued. Moreover, with the discount promotions, customers might consider to buy with bigger amount in order to get more discount; as a result, Haigh’s could increase its sales revenue. Being more conscious of baby boomers segmentAs aging population in Australia is occurring faster, Haigh’s is required to take more actions in meeting the demand of this segment. Discount for senior is one of the options that Haigh’s could apply to attract more elderly people. Getting connected with consumers through social network Haigh’s has been successful in using the widespread of Facebook to engage with their consumers. In their Facebook page, a wide range of products has been introduced and received variety comments and responses from consumers. It is also a great marketing tool for Haigh’s. However, it is needed to exploit more the potential of social network and blogging community in strengthening the relationship with consumers.Haigh’s should set up more surveys and feedback pages in order to know what are best-seller products, what are their drawbacks, what consumers want and how to satisfy their needs. The creation of â€Å"make your own flavour† game would be applied in their Facebook page, which allows browser to create and mix own chocolate flavour. It would be a chance to let consumers knows that the company values their opinions and interests. Moreover, Haigh’s will also have more ideas in developing their product lines. 7. 3 Corporate strategy People always want new, innovative products. There are plenty of similar products existing and new products developed every si ngle day, which gives customers various options to choose. Therefore the company may easily experience change of consumer loyalty, especially for adolescents.Chocolate is an $83 billion a year business, which makes the industry’s value larger than the Gross Domestic Product (GDP) of more than 130 nations on earth (CNN, 2012). While they have expanded its business for almost a century, they only have 13 stores in Australia and have not expanded internationally. Their products are highly known in Australia as being of very high quality. However, Haigh’s Manufacturing represents only a small part of the Australian chocolate market. The Australian chocolate category is clearly dominated by large international players like Kraft Foods, Mars, and Nestle. Haigh’s best estimate based on industry data is 1. % of the total Australian chocolate market by turnover, a smaller portion by volume (A E HAIGH PTY LTD, 2011). In order to expand and grow the company some strategies are suggested: Tapered vertical Integration Vertical integration is commonly used in the firm’s core business to gain market power over rivals. Market power is gained as the firm develops the ability to save on its operations, avoid market costs, improve product quality and, possibly, protect its technology from imitation by rivals (Dallas Hanson, 2011). Since 1915, Haigh’s Chocolate carries out tapered vertical integration as they have controlled the whole process from raw materials to the consumer value chain.This has enabled the business to create the highest quality for its products and enabled them to protect the product quality. The company has built its own outstanding retail network. This strategy needs to keep up to protect its product quality and its long history. However, it will not be able to make continues growth in the long term as new international competitors keep entering into the market and strong international competitors have occupied the markets. Related diversification Haigh’s chocolate does not use related diversification. It is suggested to use related diversification in opening chocolate cafes in Australia, which allows them to grow their market share and reputation faster.Related diversification allows a company to swap complementary skills and create value through economise of scope. Haigh’s Chocolate has considered it but decided against it for now as they believe that is not their strength (Christina, 2011). There are some international chocolate cafes in Australia including Max Brenner, Lindt, Guylian and The Chocolate Room. One of Haigh’s strengths is breadth of its product range available to customers and it is even wider range than those international competitors which run chocolate cafes in Australia as well as worldwide (Christina, 2011). All products can be used at Haigh’s Chocolate cafe like the competitors.To differentiate, one of its current product, dark chocolate coffee beans which 100% Australian grown, for coffee lovers can be used for its coffee at the cafe and the cafe can be operated as a chocolate bar which combines a bar and a shop allowing cusomter to experience purchasing some their products at the chocolate cafe. In addition to this, buidling a solid training system for employees and developing of chocolate products such as chocolate brownie, chocolate cake can be implemented for a long term strategy of chocolate cafes. Moreover, this related diversification helps find out the latest consumer trends and behavior much more easier and also enables to advertise its new products or promotions at lower cost. International StrategyInternational strategy has been suggested as a possibility for further growth of the company. Asia market Europeans account for nearly half of all the chocolate the world eats, according to the International Cocoa Organization. (CNN, 2012) However, barriers to entry are too high in Europe as there are diverse strong competi tors. Although the Asia market is smaller compared to Europe, Asian markets are expected to hold a 20 percent share of the global market by 2016. Chocolate sales in China are expected to rise 19 percent to $1. 2 billion, India expects to see a 7 percent jump to $633 million dollars, and in Indonesia are expected to rise 25 percent to $1. billion dollars, ballooning to nearly 2 billion dollars by 2015 (CNN, 2012). Japan is Asia’s largest consumer market for chocolate confectionery with per capita consumption rate of about 1. 8 kilos (World Cocoa Foundation, 2011). Therefore the Asian market is a sutiable entry for Haigh’s Chocolates. The first entry for Haigh’s Chocolate can be Japan. Transnational strategy A transnational strategy is most suitable strategy for Haigh’s Chocolate as it helps to achieve both global efficiency and local responsiveness. They have not entered international markets since they had failed entering into Japan market due to pricing and developing new products for new market.Therefore, Haigh’s Chocolate needs new products for different markets. For instance, Japanese consumers prefer softer and less sweet products and prefer low-priced individually wrapped products are increasing (World Cocoa Foundation, 2011). Green tea, sesame flavours, individual wrapped products can be developed for Japanese markets. Haigh’s Chocolate’s are rated ‘green’ in Greenpeace True Food Guide, Signifying a clear policy on excluding GE-derived ingredients, including oils derived from GE crops, and animal products from animals fed on GE crops while other competitors such as Nestles have been rated much lower due to some criticism (True Food Network).Consumer awareness of environment-friendly products is expected to grow dramatically in the next five years (Markets and Markets, 2011). The company’s products are considered to be in a higher price range with diverse scale of products in the global market. The company can enter into international market with its clear policy as consumers seek healthier, higher quality of ingredient for health while providing different types of products for different markets for both global standardisation as well as localisation Entry mode: Strategic Alliance Strategic alliances allow companies to share the risks and the resources required to enter international markets.Furthermore, it can facilitate the development of new core competencies that contribute to the company’s future strategic competitiveness (Dal

A Study Of The Theme Of Panopticism And Jeremy Benthams, Michael Foucaults Ideas In Panopticon By Jenni Fagan And 1984 By George Orwell

A Study Of The Theme Of Panopticism And Jeremy Bentham's, Michael Foucault's Ideas In Panopticon By Jenni Fagan And 1984 By George Orwell A panopticon can be used in order to effectively keep surveillance of society. This, in all of its senses, is manipulative and coercive. As society started growing, it kept getting more difficult to control the people, and therefore, other resources or mechanisms had to be used for the monitoring of these people. In the late eighteenth century, Jeremy Bentham had an architectural design for prisons, asylums, schools, hospitals, and factories, and received help from an architect in order to put his ideas on paper . Michael Foucault, a French philosopher, did extensive research on panopticons and his ideas were taken into consideration by future authors. Bentham’s plan for the prison design gained popularity because Foucault saw it as a strategic model to internalize discipline and authority. The Panopticon, written by British young adult author Jenni Fagan, is directly linked to these ideas. 1984 by George Orwell, however, was published in 1949, so it cannot be said that Foucau lt influenced it, since the panopticist ideas were published in Discipline and Punish: The Birth of a Prison (1975). On the other hand, Bentham could have slightly influenced Orwell’s writings. These panopticist ideas come into play in today’s world as well, and it has become a controversial topic because of modern technology that society feels has become more and more invasive. The Panopticon and 1984 both have the recurring theme of panopticism, which affect the main characters in different manners. This paper aims to show the correlation between Bentham, Foucault, and how the same ideas and theories influenced works that were written decades apart. The ideas of a panopticon originally had good intentions; Jeremy Bentham created it in order to retire violent methods of punishment. He wanted to punish in another form, this being more psychological. Foucault stated that the panopticon â€Å"reverses the principle of the dungeon†. The dungeon had â€Å"three functions: to enclose, to deprive of light, and to hide; it (the panopticon) preserves only the first and eliminated the other two† . Knowledge comes from power, and the panopticon can allow the authorities to see everything that is going on around them, leading them to know more things. The panopticon also creates a constant state of control, and makes those that are observed internalize the fact that they are always watched. â€Å"Constant observation acted as a control mechanism; a consciousness of constant surveillance is internalized†. The Panopticon, as the title states, revolves around the idea that people are always being watched. Anais feels as if she is involved in an experiment, and she knows that people are always watching her, and wants to escape it. It’s a novel that goes in depth into the main character’s psyche, and the reader gets an insight into her life and fears. She’s strong, but copes with drugs and her own imagination. Ironically, these are the things that should not be done when one knows that they are under vigilance. For Anais to escape the experiment and cope with her uncertainty of where she comes from, she seeks comfort by playing the â€Å"birthday game†. By creating a life for herself, she is able to rely on those facts and pretend that she has a semi-normal life. On the other hand, it is a sign of resistance from the panopticon, because people can see her actions, but not her thoughts. Since the novel is written from her perspective, the readers do get to see h er thoughts, so the readers act as the panopticon in this case. Anais is very skeptical of all that goes around her, and has been forced to grow up quickly. In the Panopticon that she lives in, the watch tower gives no privacy, which is an act against human rights. Being in a constant state of surveillance drives Anais mad, which in the end pushes her to escape her life. She was able to run away because the watch tower shattered, â€Å"the whole surveillance window shatters, and I see them; turning on their fucking tails; the experiment, for a fraction of a fucking second: exposed† . At this point, Anais is liberated and can start her life in Paris, just like she had decided with her birthday game. The last sentence of the novel is, â€Å"I begin today† . Because the windows hiding the faces of those surveilling her have shattered, they are now at her level because they are real people. She has the power to run away and fight the system, and therefore, becomes her own person. Orwell’s novel is dystopian and reflects the society as powerless and robotic. Big Brother in this case is the panopticon. There is no face to Big Brother, but society fears him. By using these scare tactics they have been able to brainwash society into being permanently scared. They have to be in constant control of what they say or do because the consequences are brutal. It is impossible to trust anybody, because when Winston did, he was turned into the police. Orwell also introduces â€Å"Newspeak† into the novel, which would now be considered simple English. It is the official language of Oceania. Because the words are so simple and there is no complexity to them, it gives people no reason to rethink words or give other definitions to them. It limits their language so they cannot rebel against the system, which is the main reason behind changing the language. Apart from limiting language, it also limits personality and personal identity, which is also a method of br ainwashing. Newspeak does not allow for any type of personal development, and Winston breaks this by keeping a diary. He is able to express his feelings in it, but realizes he has written â€Å"DOWN WITH BIG BROTHER† multiple times on the page and sees that he has committed thoughtcrime. If the level of intelligence of this society were higher, one might have realized that it would be impossible to track all the thoughts of all the members of society, but because of the various methods of brainwashing that have been carried out, no one was able to think it through. â€Å"Thoughtcrime was not a thing that could be concealed forever. You might dodge successfully for a while, even for years, but sooner or later they were bound to get you† . Fear is the most common tactic used by oppressive societies to stay in power. If society fears the system, one will rebel against it and the oppressive state continues. Winston is also guilty of doublethink, although he realizes he is. He works for the system, but secretly is rebelling against it. At the Ministry of Truth, slogans that read â€Å"WAR IS PEACE†, â€Å"FREEDOM IS SLAVERY†, and â€Å"IGNORANCE IS STRENGTH† all brainwash society. These words are antonyms of each other, and the people do not realize that. By working at the Ministry of Truth, he is supporting these statements, but by writing in his diary and being secretive he is rebelling against it. The difference between 1984 and The Panopticon is that the latter has partial freedom. Although Winston Smith is not a prisoner and works for the party, he has less freedom than Anais does. He has no freedom of any type, he cannot do, say, or think as he pleases, because the society is a microscope that is being observed by Big Brother. Anais, though she has been arrested and is a victim of countless foster homes and misfortune, is in a controlled environment but has the freedom to think, which is extremely powerful. As Foucault stated, knowledge is power. She can liberate herself of the constant pressure from the social workers and of the panopticist society she is in. There is no type of Thought Police or thoughtcrime like it exists in 1984. On the other hand, Anais is psychologically incarcerated at times, which is why she resorts to drugs. Although she has the freedom to think and create her past life, it stops her from really knowing who she is and where she comes from. However, her mind is so powerful that she can brainwash herself into creating a past life for herself. Winston, nevertheless, is very aware of what goes on in his life and that can give him a sense of security. Even though he is not following the rules, he knows his consequences. Because both novels share similar themes, the panopticist ideas appear throughout and the characters share common traits. Anais and Winston are very similar in the sense that they are both victims of their society. They are both incarcerated metaphorically. Their minds are free, but only one of them can be safe expressing their true thoughts and feelings. There is an internal struggle occurring with each, and although the characters are very different in terms of lifestyles and persona, their inner struggles clash. Being in a state of liminality like both characters are, they struggle with their daily lives and may or may not go against their basic beliefs, like Winston did when he turned in the love of his life, Julia. Anais differs in this manner, but as the novel progresses, there are signs of maturity on her part, and she becomes more conscious of her desires. The novels also share a major common aspect; the fact that both of the societal powers do not have a face to them. In 198 4, Big Brother does not have a face, so there is enough reason to believe that he does not exist, and that there is a group of people controlling society. Likewise, in The Panopticon, Anais does not see the faces of the people in the watch tower until the windows are shattered and she is able to see for a fraction of a second. Power does not come from one sole person; there is generally a group of people in control or a political figure who is puppeteered by others. A panopticist society currently exists among us, and although it may not be in the traditional sense, people definitely feel the effects of it. People are raised to believe that they are under constant watch of those that cannot be seen, for example Santa Claus for the young, or even more in depth, a God. A panopticon is essentially what God is, all watching and all knowing. In the end, people fear the consequences that God can give them, which is why many are so dedicated to their religion. This can make people feel anxious all the time and it is not fair to make people believe that they are not free because there is a radar on them at all times. It is psychologically damaging, because there is no true freedom. Currently, there have been happenings of government interference with the general public, not only terrorists or potential suspects. Wire-tapping goes against the American Constitution, and although the Patriot Act is named and worded in a way that makes it seem as if it is s omething that is a duty to ones country, it strips society of basic human rights. Under no circumstance is it okay to spy on one’s own, because it betrays trust between the government and members of society. One very current situation is the power behind Cuba’s dictator: Fidel Castro. There is no factual evidence that he is alive, but because â€Å"his people† say he is, Cubans believe it because they have been brainwashed to extreme extents by the communist party. Panopticons exist in all various forms, but the only way that society can fall into the trap is by succumbing to the power behind the words, because words are the most powerful thing when gaining power. Ignorance is not strength, and one should have the freedom to think freely and act within reason. Being under a constant state of vigilance like the characters of The Panopticon and 1984 were wears out ones mind and persona. Anais was able to break out of the cycle, but Winston on the other hand, fell back into the system and was brainwashed once again.

Choose one arid region and write a report comparing possible methods Assignment

Choose one arid region and write a report comparing possible methods of water provision to the area - Assignment Example The magnitude of the problem is increasing because of the lack of awareness among the general public of these areas about the sustainable and economical use of water. This report discusses the situation of water supply crisis in one such region i.e. Qatar and a few solutions to the problem and methodologies for providing water are also discussed. 2. Background The problem of water shortage is not due to global warming but is more due to the increase in population and the wastage of water by a large number of people throughout the world. More 20% of the world population does not have access to clean drinking water. The United Nations water program has set a target, in Millennium Development Goals, of supplying 85% of world population with safe drinking water by the end of 2020. But with the increasing population and increased wastage and pollution of water this target cannot be achieved before 2030. The third edition of the World Water Development Report (WWDR3) presented in the fifth World Water Forum in Istanbul in March 2009, various issues have been identified as the cause of the water shortage in the world, particularly in the arid regions. ... The salient features and the application of the various alternative methods with respect to Qatar is discussed separately in the following paragraphs. a. Wastewater Treatment and Reuse A large quantity of water is used for household washing purposes. This water which can be reused after proper treatment is normally wasted and thus contributes to the problem of water shortage particularly in the arid regions of the world. Qatar being one such region can also utilize its wastewater for fulfilling the increasing demand of water in the country. Wastewater does not only fulfill the increasing water demand but it is also very effective in controlling water pollution and various water-borne diseases particularly in countries like Qatar where people are unaware of the hygienic procedures through which they can stop water pollution. Wastewater reuse has is being practiced in various countries for providing fresh water resources. Qatar generates more than 2 million cubic meters of waste water in the form of household and industrial waste (Gleik, Cooley and Morikawa, 2008). Out of which about 35% can be treated and reused. Doing so will fulfill 50% of the household demand of water in Qatar. The cost per cubic meter ($0.49) is also lower as compared to the water obtained from desalination (2$ per cubic meter). Moreover wastewater treatment also resolves the issue of water pollution because the water is treated and reused instead of discharging into land which pollutes land and underground water resources. Another advantage of the reuse of wastewater is the localized nature of water supply system because the wastewater generated by a certain locality can be treated and reused

STEP analysis and Market Segmentation Assignment

STEP analysis and Market Segmentation - Assignment Example The company manufactures its vehicles at 23 production and assembly plants in seven countries and sells them through 34 subsidiaries. The company operates through three business divisions: automobiles, motorcycles and financial services. The automobiles division develops, manufactures, assembles and sells passenger cars and off-road vehicles under the brands BMW, MINI and Rolls-Royce. It also sells spare parts and accessories. BMW and MINI brand products are sold in Germany through showrooms of BMW and independent dealers. The company sells passenger cars outside Germany through subsidiaries and independent import companies. The BMW is responsible for the manufacture products such as: BMW C1, BMW 1 series, BMW 3 series, BMW 5 series, BMW 6 series, BMW 7 series, BMW X3, BMW X5, BMW Z4, MINI, MINI Cooper, MINI Cabriolet and the Rolls-Royce Phantom. BMW's growth over the years had paid off from a boutique European automaker to a global leader in premium cars. Among their products, BMW's MINI Cooper is holding its own against more established rivals in the new car market. It is also one of the lowest depreciating models in terms of used car sales. It is for this reason that BMW has decided to increase its investment into the Mini. This is a wise move, since sustained demand, even after five years on the market, suggests that the model is a mini goldmine. It is unlikely that anyone predicted the success of the Mini Cooper when it was launched by BMW in 2001 - the revamped model has taken the European market by storm. Originally, BMW intended to produce 100,000 vehicles a year but given the high demand, an increased investment of GBP100 million has been set aside for Mini Cooper in 2005, taking the yearly production total to over 200,000 vehicles a year by 2007. After its 2001 launch, BMW hoped to sell 800,000 units of the current Mini in eight years. The Mini plant in Oxford, England, has been refurbished to boost annual capacity to 260,000 units from 200,000. The plant also will build a new variant, the Traveller station wagon, starting in late 2007, and the second-generation Mini convertible starting in 2008 (Ceferri and McVeigh, 18 Sept 2006). While sceptics argued whether it was the right move for BMW to launch Mini Cooper in 2001, the debate has now shifted towards whether the success of the Mini can continue into the future or whether it is just a fad, a little like Volkswagen's new Beetle, where sales fell dramatically after the initial consumer enthusiasm for the new model. BMW certainly thinks that its investment is well justified. The Mini's price point ranges between GBP11,000 to nearly GBP18,000, which pits the car against the popular Volkswagen Golf and Peugeot 307. Despite this, the demand for the model is generally high across the range with a UK waiting list for several models. Additionally, another key indicator with regards to the success of the model is the demand for it in the used car market, where its rate of depreciation is amongst the lowest of any vehicle in the UK. It is these metrics which must have given BMW the impetus to continue funding the development of the Mini. It is already very valuable to BMW, having surpassed all expectations in terms of popularity, and with its sales cycle having now run for four years with demand still riding high, BMW certainly seems onto a winner. In

Learning assessment Essay Example | Topics and Well Written Essays - 1750 words

Learning assessment - Essay Example In this regard the most basic elements of procedural writing should be taught to the students. Writing is an art that is noted as one of the most used expression of the human civilization. It could then be observed that through the numerous written works of different authors of books, of paper articles and other readable materials alike, there is a certain pattern that they follow. Why is it important to make effective use of these procedures' A.L. Trupe says that "Effective intervention results in better papers. Students who are asked or required to spend more time on a paper will think more about their topic, retain more information, and develop more powerful insights" (2001, Internet).Not everyone might easily see this obvious presentation of thoughts in a fine pattern. However, as it has always been said everybody and everything starts with the basics. Through this particular discussion, there are numerous factors that would be considered to be able to identify the essential proc edures that even expert or professional writers take into consideration when they are putting their thoughts into writing. When writingWhen writing a paper, or in this case a letter, there are at least three major preliminary procedures that should be considered by the writer. These procedures are called the "primary procedures". The said procedures include: (a) Prewriting Prewriting is the process by which a writer tends to scribble the words in his or her mind on paper. The words may mean nothing yet as they are all serving as key words to the main thoughts of the writer. From this so-called "scribbles" of thoughts, the writer is then able to create a plan on what he or she would more likely focus on in his writing. (b) Planning From the "scribbles" comes along the plan of the plot of the idea that is to be presented by the writer in writing. The ways by which the writer wants to layout the topic is done through outlining the primary topics of concern that needs to be addressed within the context of whatever it is that is being written about. Most often than not, this particular stage of writing makes it easier for the writer to see what the expected result of the written article or composition would actually look like. (c) Drafting From the outline comes the first-hand draft of the paper. The paper's draft looks like the actual approach of the writing, only that it is a much more basic type. It is a type of the composition that requires refurnishing. Meaning there are a lot of points that still needs to be redone in this particular step in writing. The writer is much freer when it comes

Sustainable Hospitality Research Paper Example | Topics and Well Written Essays - 2750 words

Sustainable Hospitality - Research Paper Example The concept of sustainable restaurant will be of a medium sized business that will be located in San Diego for the food loving people. The restaurant will give emphasis to organic and locally sourced ingredients and will offer healthy foods at an affordable price. The restaurant will provide a traditional yet stylish decor to make the environment attractive as well as relaxing for the customers along with the employees. The restaurant in San Diego will be developing a sustainable business operation by managing not only the finances but also the social along with environmental impact of the business. The restaurant will buy products from the local people to avoid the impact of fuel related to transportation. The services provided to the customers will be trendy yet ethnic with quality assurance without harming the environment by the supply chain management. The objective of the business concept will be to contribute much to the society and the environment by purchasing local sourced products from the local farmers to improve their financial position. The other philosophy is to operate the business ethically. The focus on fairness, honesty along with integrity will be the core corporate philosophy of the restaurant. For the business concept of the sustainable business to be effective, corporate culture is determined as a vital constituent in the business. The corporate culture is important to build strong collaboration with the people and the locality. The restaurant business will treat each and every employee as the most valuable resource of the organization irrespective of their job position. The success of the business is highly dependent on the employees and the management. They are the most important deriving forces for attaining the organizational mission and profit. In order to be successful and sustainable, the culture of the company will depend on values such as the integrity, commitment, courage, balance and passion. The proposed sustainable

Philosophies address the commonplaces of law concerning authority and Essay

Philosophies address the commonplaces of law concerning authority and the common good - Essay Example But the study of law is neither science nor metaphysics; since law is a normative phenomenon, there must always be a practical reason for studying law. As a normative construct, law attempts to correct human behaviors according to some norm. It is the attempt to determine this normative facet of law that troubles both law-makers and philosophers of law. As we see in modern philosophies of law, there are two primary ways of understanding the normativity of law, which are based either on a natural law tradition (represented primarily by L.L. Fuller), and legal positivism, which attempts to break laws down into social facts, as opposed to facts of nature. The natural law tradition as it applies to the philosophy of law is represented primarily by the 20th century philosopher L.L. Fuller, who developed eight ways to fail for any legal system in his work The Morality of Law (1967) . On Fuller’s word, if any of the eight normative principles are not represented within a government, a system will not be â€Å"legal†. Fuller argues for these principles to the extent that they represent the â€Å"internal morality of law† and that one is guided by such principles to create just laws, and straying from them makes one liable to creating evil laws (Fuller, 1967, p. 39). To that extent, Fuller seems to be following St. Augustine, a natural law philosopher, who said famously, â€Å"Unjust law is not law† (Marmor, 2001). On Fuller’s view, proper laws cannot be made without some reference to morality, making it a natural law thesis. Legal positivism stands opposed to the natural law tradition, rejecting any natural basis for laws in â€Å"natural facts† for morality. H.L.A. Hart, who belongs to the legal positivist tradition, adheres to the (2) conventionality thesis, thinks conditions for legal validity exist within standards of recognition that produce best practices in making or modifying law. These stand because they are

Career Research Paper Essay Example | Topics and Well Written Essays - 1500 words

Career Research Paper - Essay Example The conductor is the most important person in an orchestra even when they do not play any instrument at all. The most basic job for a conductor is to indicate to other members of the orchestra the beat of the music they should be playing at. The conductor does this using a long stick called a baton, which assist the conductor make the desired beat as clear as possible. As the song goes on, the conductor’s role is to move the baton towards several imaginary points indicating the beat in the bar the orchestra is currently playing. A conductor communicates with the other musicians verbally during rehearsal while during performance, different movements, gestures, and facial expressions indicate the conductor’s requirements (Wittry 61). The conductors work does not end with indicating the kind of beat the music should be played. The conductor has other roles in the orchestra such as the rehearsal and preparation of the orchestra for performance. The conductor also makes inte rpretative decisions concerning some aspects of the performance that includes whether some passages should be fast, smooth, slow, soft, aggressive, or loud. Further, the conductor in an orchestra knows the best way for all the players to play their instruments efficiently in addition to creating mood, atmosphere, and interpretation, which matches the conductor’s vision of the performed piece. Although in reality the conductor does not play any of the instruments during the performance, the orchestra as a whole is the conductor’s instrument (Mick 9). The compensation and working conditions in symphony orchestra is also attractive due to the potential it has for a stable career in addition to excellent job security, salary and other benefits. Douglas Yeo claims, â€Å"The base scale pay for performers in American cities such as Boston, New York, Chicago, Cleveland, and Philadelphia is roughly $2000 a week on the lower scale†. Performers of these orchestras are off ered up to ten weeks paid holiday, sick leave, full dental and medical insurance coverage in addition to entitlement to pension after a thirty-year career. A performer cannot be dismissed before determination by an arbitration panel, which is usually composed of peer members of the orchestra. Just like any other career taking symphony orchestra as an occupation whether as a player or a conductor has its challenges as seen from news about bankruptcy, strikes and lose of conductors (Eatock 273). A good salary and satisfied life in music notwithstanding, many artists in symphony orchestra become cynical and jaded since the profession does not recognize individuals but the whole group as a whole. For one to be satisfied with life in this industry one has to appreciate achievements made as a group and not to seek individual recognition. Yeo particularly singles out mandatory deductions made by unions claiming it can have negative influence that goes past the average 3% per week work dues deducted from a player’s income. Activism in the union is sometimes frustrating where players are denied the chance to make their own decisions by forcing them abide by those made by the union. However, happiness is an individual choice; one can decide whether to focus on the positive or negative aspects of a career in symphony orchestra. The other challenging aspect of a career as a conductor of symphony orchestra is the demanding nature of the work. There is a need for players to be in

CASE STUDY CAMP BOW WOW Example | Topics and Well Written Essays - 750 words

CAMP BOW WOW - Case Study Example the most unique effect about working at the Camp Bow Wow’s commercial headquarters is that â€Å"you get to bring your dog to work with you every day.† Workers keep baby gates at workplaces to grasp dogs, and the firm encourages regular dog-walking free. In the perception of Heidi Ganahl, obligating pets at work keep each of the workers focused on the firm’s mission and what’s good for the variety A major section of camp bow wow’s culture that will not exist in other franchises is the workforce’s deep emotional linkage immediately apparent at commercial headquarters, where offices are busy with workers and pets alike. It is alleged that what is vital to the firm is the animals. Ganahl views that if the focus and commitment concerning the pets is kept, the culture will remain to be alive and well for a good period of time (Lussier, pg 59). Rendering to Heidi Ganahl, Camp Bow Wow’s top dog, commercial culture has many elements; it can imply that logos and patented material, are an availability on the Internet, or even the associations established with customers and workers. Unseen aspects of Camp Bow Wow’s culture include such values as overpowering difficulty to realize success, a major value conversed in Heidi Ganahl’s life story. On the other hand, another invisible value encompassed at Camp Bow Wow is the notion of providing a humanitarian amenity to dogs and dog fans. This invisible value has given rise to the creation of the Bow Wow Buddies Foundation, a non-profit branch of Heidi Ganahl’s firms that discovers homes for undesirable pets, finances in animal disease-prevention investigation, and endorses humane handling of animals. (Daft & Marcic, pg 34) Camp Bow Wow’s initial family-business culture was useful in the beginning stage of Camp Bow Wow’s development. Nevertheless, Founder Heidi Ganahl said that her firm mandated a varied of culture once it grew into a national franchise. In specific, Ganahl said that the focus had to drift