Macro Environments and Breakfast Cereals - 2315 Words

Macro environments and breakfast cereals 1. Introduction Company A’s cereals are manufacturers of healthy and nutritional breakfast cereals and ready to go breakfast bars. While their main manufacturing plant is located in Brisbane, their products are distributed in major supermarkets Australia wide. Knowing that breakfast is considered by consumers as the most important meal of the day the company’s focus is on offering a multiple product range to various target groups with the added benefits of additional fiber and cholesterol lowering properties. Only by complying with strict guidelines within governmental regulations, this company is able to promote the health benefits of consuming their products and endorsements noted on their†¦show more content†¦This may require multiple sourcing points globally, resulting in driving prices up (Parker, 2005). Company A’s cereals have redundant suppliers on hand in various locations. By having multiple suppliers, it mitigates against unforeseen natural disasters tha t may affect their supplies of raw products. c. Economic Environment Kotler describes the economic environment as â€Å"factors that affect consumer buying power and spending patterns† (Kotler, et al., 2010, p. 149). For consumers to be able to spend they need to have disposable income. Some of the factors included in the economic environment, but not limited to; income, employment levels, the value of the Australian dollar and the global economy. There are changes occurring within the economic environment all the time, particularly within income structure. Average disposable incomes vary according to states, with Tasmania and South Australia recorded at 19 percent below the national average (Australian Bureau of Statistics, 2008). Due to higher living costs, more women are returning to work resulting in dual income families. Many consumers are feeling the rising cost of living as opposed to increases in incomes and people have been changing the way they buy in efforts to save money. Bernstein, a US consumer survey, recently showed that breakfast cereals had been traded down by 27 percent ofShow MoreRelatedMacro Environmental Factors Of The Sanitarium Health Food Co, Political, Economic And Social Factors1733 Words   |  7 Pages 4.3 Macro-environmental Analysis The current report tends to discuss the three macro-environmental factors are relevant to the operations of the Sanitarium Health Food Co, namely Political, Economic and Social factors. they could either be of positive value or of negative value to the company and they should be closely monitored. Political Factor: One political factor that is bound to play a role in the regular course of operations for the company is one that governs charity, The Charities ActRead MoreBusiness Report of Kelloggs1726 Words   |  7 PagesIntroduction The company Kellogg’s Corn Flakes ® is the second large company in America began in 1906ï ¼Å'which makes breakfast and snacks for millions. The founder, W.K.kellogg, set healthy and high quality as the aim of providing nutritious products with diversify flavor.  Their provide products such as cereal, waffle, Bars, and cookies to their consumer all around the world. Today, â€Å"Kellogg’s Company  manufactures in 18 countries, also sells its products in more than 180 countries† (Kellogg’s, 2011)Read MoreKelloggs in India Marketreport4310 Words   |  18 Pagesstrategy adopted by Kellog’s In India 4 3. Question 2: What are the major challenges Kellogg’s now face? 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The factors in favour of marketing such a product on the Australian market reside in an aging population as proportion of total population, forcingRead MoreFruit Loops2856 Words   |  12 PagesFroot loops History : Froot Loops is a  brand  of  breakfast cereal  produced by  Kelloggs  and sold in  Austria,  India,  Australia,  Canada,  New Zealand, the  United States,  Germany,  The Middle East,  The Caribbean  and  Latin America. The  cereal  pieces  are  torus-shaped (hence loops) and come in a variety of bright colors and a blend of artificial fruit flavors.  Kelloggs  introduced Froot Loops in 1963. 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Music Censorship Is Not Possible Without The Color Red And...

This statement is very impactful in how he uses the example of painting the American flag, it’s not possible without the color red and for artists to not be able to write songs using their past experiences that isn’t quite possible either. Another limitation of music censorship is that lyrics are poetry and are filled with double meanings so what may be obscene to one person may be perfectly acceptable to another. John Denver testified at the 1985 hearing of the PMRC stating that his song â€Å"Rocky Mountain High†, which had previously been banned on many radio stations thinking it was about drugs, was actually about the beauty of the nature and the mountains in Colorado (Rabkin). Another example of lyrics with double meanings is the song†¦show more content†¦Ten to thirty percent of the students gave the â€Å"correct† interpretations of the songs while twenty to sixty percent gave incorrect or vague responses. The remainder of students refus ed to answer (Nuzum 64). The difference in interpretations between adults and teens can be shown through this study and there is a reason for the difference. Interpretations can be caused by the fact that one’s understanding is limited to their knowledge on the topic. Greenfield conducted a study on four different age groups: fourth, eighth, and twelfth graders and college students. Two songs, â€Å"Born in the USA† by Bruce Springsteen and â€Å"Like a Virgin† by Madonna, were played for the participants. Following each song they were asked to fill out a questionnaire. The questions asked about their comprehension of both specific words in the lyrics and about the overall meaning. The results for the understanding of Bruce Springsteen’s song was low. After hearing the song entirely and seeing certain excerpts on the questionnaire sixty percent of the overall sample couldn’t answer the questions regarding song content. Contrary to the title and refrain, the song is about the loss of hope and resentment. The percentage of participants who understood the song’s actual themes were very low. Not one of the fourth graders could recognize the real theme, while only thirty percent of eighth graders, forty percent of twelfth

Whitbread Plc SWOT Analysis Free Essays

Abstract: An analysis of the FTSE 100 company Whitbread Plc, utilising the SWOT tool as a framework to investigate the strengths, weaknesses, opportunities and threats that the company faces in relation to its position within the Leisure industry. Drawing from an internal perspective, the SWOT analysis evaluates the company’s operation in both its national and international domains. Introduction: The following essay comprises an analysis of Whitbread Plc, a company operating within the Leisure and Hospitality sector, presently ranked 85th on the FTSE 100 index (Source: etf. We will write a custom essay sample on Whitbread Plc SWOT Analysis or any similar topic only for you Order Now db.com). With engagements in the hotels, restaurants and coffee shop businesses, its portfolio of subsidiary companies includes the market leading brands Premier Inn and Costa Coffee, alongside a range of restaurant chains comprising Beefeater Grill, Brewers Fayre, Table Table and Taybarns. Analysis will centre around an investigation of Whitbread Plc’s internal strengths and weaknesses, examining the presence of opportunities and threats that stand to prepare or hinder its progress within the leisure industry. This theme will be examined both within the context of both its national and international operations. The current operating environment that all brands falling under the Whitbread corporate umbrella face is undoubtedly a challenging one, owing to increased cautiousness on the part of consumers in light of an unstable economic climate. This is particularly the case with discretionary expenditure on leisure and non essential services, for which the company firmly caters. However, recent financial figures suggest robust performances across the board; the company share price in the 12 months to April 2012 has risen by 6.56 per cent (source ft.com), reaching a 52 week peak of 1889 pence per share on 28th March 2012 (Appendix 1). In line with this, the company are expected to announce a 15 per cent increase in underlying pre-tax profits of ?314.2 million when their annual report is published on 26th April 2012 (Source business.scotsmann.com). Further, the trend in recent years has been to peruse expansion both on the UK and international scenes. Costa Coffee has seen notable growth, with over 1600 stores worldwide; up from just 346 in 2003/04 (Appendix 2). It is now the leading UK coffee chain (Whitbread annual reports and accounts 2010/11). Similarly, Premier Inn has grown to 590 hotels throughout the UK and is targeting aggressive expansion into Dubai and India. It appears that cautious optimism has been the basis for a continued strategy of growth in a market charged with both opportunities and threats for what is an established and experienced operator. Focussing on the company’s internal environment, what follows is a brief SWOT analysis, detailing the Strengths, Weaknesses, Opportunities and Threats within its national and international markets: Whitbread Plc SWOT Analysis Strengths: Whitbread are in the position of owning a strong brand portfolio. Premier Inn and Costa are market leading performers (Appendix 3), where as their restaurant arm is expected to announce a 1.9 percent increase in total sales for the year ending April 2011. (Source scotsman.com) Further, the parent company is well established with many years experience in the brewery industry, before recently changing tack to focus on hospitality and restaurants. Recent managerial board moves in April 2012 have seen the well regarded company finance director, Chris Rogers, take control of the Costa business. (The Telegraph 03 Apr 12) This can perhaps be interpreted as a means of ensuring the future stability of a high performing brand. Weaknesses: Although the Costa brand has been very much the ‘Rising Star’ of Whitbread’s brand portfolio over the past 10 years, there is perhaps a perception that the underlying reason for the company’s rapid expansion has been based on a fad, subject to changing customer tastes and therefore lacking in longevity. Being situated at the luxury end of the coffee chain spectrum, Costa is also at risk of overpricing its products; perhaps a door through which competitor coffee chains can leverage some market share during a period of recession. Seeing as Whitbread has traditionally managed a domestic portfolio, many of its brands remain untested outside of the UK market, with only a small number of Premier Inn and Costa outlets competing in the international marketplace. There remains a lack of necessary brand awareness in what is already a very saturated international leisure marketplace. Opportunities: On the domestic scene, with many traditional high street retailers facing store cutbacks or even complete closure, there exist strong opportunities to capitalise on the availability of prime high street retail space. There are further opportunities to become more flexible with the pricing structures employed in the Premier Inn chain, whereby the current CEO Andy Harrison has mooted plans to employ a ‘Dynamic Pricing Model’ which aims to maximise occupancy rates in each of its hotels. (Whitbread Interim Results Presentation 2011/12). This could prove particularly valuable at a time when UK residents are increasingly choosing domestic holidays over foreign travel. Viewing from an international perspective, there remains scope for considerable expansion, as is currently being undertaken with moves into Dubai and India, alongside Costa’s recent acquisition of Poland’s biggest chain, ‘ Coffeeheavan’ for ?32m in 2009 (telegraph.co.uk/finance). The sp ectre of London 2012 is perhaps the most tangible short-term prospect, with many chances to capitalise on tourist expenditure over the Gamestime period. Threats: In the Annual Report and Accounts for 2010/11, Whitbread chairman Anthony Habgood wrote, â€Å"Over the next twelve months the focus will be on strengthening our value propositions, controlling costs and accelerating our expansion.† This intention to control capital expenditure will indeed need to be followed through rigidly, in order for expansion plans to progress without any financial backlash. With the global economic environment remaining turbulent, there remains a sizable degree of uncertainty in the process of expanding into new markets. The increasing frequency of news articles based in the instability of world markets, with current headlines reading ‘FTSE Tumbles Amid Political Doubt’ (The Press Association – 23.04.12) adds testament to this. Further recent speculationsuggests the Costa arm may be demerged from Whitbread, owing to its viability as an independent entity (The Independent, 22.04.12). This effects of move are an unknown in terms of it s outcome on Whitbread’s stability. Conclusion: Approaching the theme of strengths and weaknesses from a national and international perspective, this essay has outlined the balance of opportunities and threats as they affect Whitbread Plc, using the SWOT tool to provide a structured investigation into the environment in which the company operates. It can be seen that whilst Whitbread possess the attributes of a strong brand portfolio containing highly recognisable national companies, there is considerable reason for future optimism of plans for expansion and growth to be tempered by the reality of an unstable global economic climate and current lack of presence on the international scene. Appendix 1) Whitbread Plc – 52 Week share price to April 2012 Financial Times – http://markets.ft.com/Research/Markets/Tearsheets/Summary?s=WTB:LSE 2) Whitbread growth transformation over six years 3) YouGov brand index for Coffee Shops and Hotels References – Morning Star: Whitbread Plc Overview. http://tools.morningstar.co.uk/uk/stockreport/default.aspx?Site=ukid=0P000080E9LanguageId=en-GBSecurityToken=0P000080E9]3]0]E0WWE$$ALL – Scotsman.com: The Week Ahead: Winning brew from Whitbread (23 April 2012) http://www.scotsman.com/business/the-week-ahead-winning-brew-from-whitbread-1-2250386 – Press Association: Political uncertainty hits markets (23 April 2012) http://www.google.com/hostednews/ukpress/article/ALeqM5jr0Ihkps5kKMnUFUTgLsKYszTe7g?docId=N0477601335169148049A – The Telegraph: Whitbread to buy Polish coffee chain Coffeheaven for ?32m (11 Dec 2009) http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/6790624/Whitbread-to-buy-Polish-coffee-chain-Coffeheaven-for-32m.html – The Independent: Whitbread’s Premier Inn could Costa lot (22 April 2012) http://www.independent.co.uk/news/business/news/whitbreads-premier-inn-loss-could-costa-lot-7668818.html – The Telegraph: Whitbread finance chief Chris Rogers to head up Costa Coffee after John Derkach quits to join Tragus(03 April 12) http://tinyurl.com/bpe6s42 Books – Farndon, M., et al (2004). ‘Advanced Business’. Osborne Books Ltd Journals – MINT UK – ‘Hotels Motels in the UK’ (2011). Reports – Annual Report Accounts 2009/10 http://annualreport.whitbread.co.uk/pdfs/0910/Whitbread_AR-and-Accounts_0910.pdf – Interim Results 2010/11 http://online.hemscottir.com/ir/wtb/pdf/WhitbreadInterims2010_showbook.pdf How to cite Whitbread Plc SWOT Analysis, Essay examples

Aviation Essay Research Paper The airline industry free essay sample

Aviation Essay, Research Paper The air hose industry has been capable of intense monetary value competition since it was deregulated, and the consequence has been a figure of new bearers which specialize in regional service and no-frills operations. These bearers typically purchase older aircraft and frequently operate outside the industry-wide computerized reserves system. In exchange for these incommodiousnesss, riders receive low menus relative to the industry as a whole. This research examines two low menu air bearers, ValuJet and Southwest Airlines. By look intoing these air bearers, we can better understand the economic impacts of monetary value versus service in the air hose industry as a whole, every bit good as, the impacts on rider and investor assurance. Until 1978, air conveyance rates were approved by the authorities, which meant that monetary value was non a primary competitory factor. Alternatively, air hoses would vie on service and image. The air hose industry was dominated by giants ( American, United, TWA ) which offered countrywide and some international service, and by regional bearers, such as Southwest, which offered short trips between airdromes non served by the subjects. Deregulation of the air hose industry brought approximately in 1978 introduced a state of affairs in which the national and regional bearers were all of a sudden able to vie in an environment that resembled a free market. Rate agendas were lifted, monetary value repair was eliminated and route direction was removed. The chief factors that affected whether an air hose could function a peculiar metropolis was whether or non that metropolis had adequate Gatess for the new bearer, and whether the bearer was able to afford to buy them. Companies such as Southwest recognized possible for low menus, and began constructing a niche for themselves by offering low menus with tantamount low degrees of service. Southwest s success gave rise to a new coevals of low menu air hoses, with ValuJet come ining the market in the early 1990 s. Unfortunately, ValuJet suffered a twine of accidents which brought the hereafter of this air bearer into inquiry. ValuJet is a low-cost air hose that offers cheap tickets for regional travel. Based in Atlanta, the air hose serves the Southeastern United States and competes with Continental Airlines every bit good as with other little regional bearers. It serves 31 metropoliss chiefly in the southeasterly United States. The air hose began its service with flights to Tampa and Orlando from Atlanta in 1993. The no-frills scheme paid off for the fledgeling air hose, which posted half once more as many gross rider stat mis in April 1996 as it did in April 1995. However, the company announced that it was decelerating the enlargement of its services, voluntarily, at the same clip that it posted this impressive gross grade ( Cole A ; Pasztor, 1996, p. A6 ) . Possibly due to overexpansion or to hapless fortune, Valujet experienced a series of bad lucks in its short history. In January 1994, a DC-9 skidded off a track in Washington which resulted in the full airdrome being shut down. In June 1995, a ValuJet flight went through an exigency emptying after an engine failed and shrapnel flew into the cabin. Extra incidents, including one where the landing cogwheel collapsed after a peculiarly forceful landing, led the FAA to get down an intense reappraisal of ValuJet in February 1996. This reappraisal found that ValuJet was in conformity with FAA ordinances, but cited concern about pilot preparation and aircraft care ( Larson, 1996, p.30 ) . In May 1996, Valujet flight 592 crashed in the Everglades, killing all aboard and ensuing in a closure of the bearer for several months. When ValuJet began winging once more, it did so with a decreased agenda, and considerable guess about whether the company will be able to go on operations long-run. The company is besides involved in judicial proceeding ensuing from the clang, and the long-run chances for the company are questionable. The undermentioned chart identifies key runing statistics for Southwest ( place stat mis are in 1000000s, cost factors are in cents ) ( Shammas, 1996, p. 5541P ) : 1995 1994 1993 Gross Passenger Miles ( RPM ) 2,624 941 44 Available Seat Miles ( ASM ) 3,813 1,471 63 Load Factor 68.8 % 64.0 % 69.7 % Gross per RPM 13.4 13.8 13.1 Cost per ASM 6.8 6.8 9.8 Because Southwest s flights are by and large an hr or lupus erythematosus in length, the air hose saves money by non holding to function repasts. It has a broad work regulation agreement with its brotherhoods, so productiveness is high, and overall costs are low. For illustration, Southwest gets 672 hours per twelvemonth on norm from pilots versus 371 for American Airlines pilots, and 60 per centum more rider stat mis per flight attender ( Levinson, 1993, p. 34 ) . These figures enable the company to recognize net incomes during old ages in which the industry as a whole was enduring. The undermentioned chart identifies key runing statistics for Southwest ( place stat mis are in one million millions, cost factors are in cents ) ( Klein, 1996, p. 2077 ) : 1995 1994 1993 Gross Passenger Miles ( RPM ) 23.33 21.61 18.83 Available Seat Miles ( ASM ) 36.18 32.12 27.51 Gross per RPM 11.83 11.56 11.77 Cost per ASM 7.07 7.08 7.25 In add-on, the company has a 70 per centum norm load factor in an indu stry that averages 63 per centum, and operating costs per rider stat mi are 22 per centum less than industry norm. It has one of the youngest fleets in the industry ( 6.9 old ages compared with an industry norm of 12.9 in 1992 ) , and the best on-time and luggage handling records in 1992 ( Gold, 1993, p. 29 ) . Each of these factors contributes to the company s fiscal and selling success. Southwest s success has come about because it is supplying a merchandise that the market wants, no-frills regional air travel, at a monetary value that is attractive. Despite its no-frills orientation, the company maintains strong client service satisfaction and high degrees of client service, promoting repetition concern. When the air hose enters a new market, such as Baltimore, its menus are every bit much as 85 per centum less than those of its higher-priced rivals, pulling riders rapidly and coercing the competition to either fit the monetary value or lose market portion. In its mark markets, Southwest has positioned itself to even vie favourably with going by auto ( Thorpe, 1996, p. 262 ) . Southwest s success has non been without job, and the company has once more demonstrated an ability to happen originative solutions to those jobs. For illustration, the company has traditionally expanded its 737 fleet by adding older aircraft available at price reductions ( sometimes every bit much as 30 per centum ) ( Kripanlani, 1992, p. 20 ) . Since the company s ability to come in new markets is determined in portion by the size of its fleet, and since the company is committed to remaining with homogeneous fleet of 737s, it runs the hazard of stoping up with a big figure of older aircraft that it no longer needed ( depending on the market ) , or that do non run into new environmental criterions. Southwest solved this job by get downing a lease-back plan in 1988. Under the plan, Southwest sells some of its older 737s, so leases them back for its ain usage. As of the beginning of 1992, the company had done this with more than half of the Boeing 737-200 aircraft that it operated ( Brown, 1992, p.57 ) . This plan enables the company to let go of aircraft that it no longer needs or that no longer run into the rigorous new environmental criterions. At the same clip, the company can modify its staying 737-200s in order to do them compatible with noise and pollution ordinances if it needs the capacity. The company s stock has split three times since 1990, and its price-earnings ratio is a healthy 13.1 per centum. Its burden factor is good within the industry norm of 67 per centum ( Sanborn, 1996, p. 251 ) , and the company s committedness low menus and its safety record should assist it keep good public presentation even in visible radiation of the ValuJet clang ( which brought increased attending to all low menu bearers ) . The clang of Flight 592 has brought increased examination to ValuJet ( and to low-fare bearers in general ) , and the long-run consequence on ValuJet is non yet known. The stock, which had two, two-for-one splits in 1995 and which peaked at more than 30 dollars per portion in late 1995, has plummeted to below 12 dollars per portion in late 1996. Investors with high tolerance of hazard might see the stock at this low degree, and the company might be a coup detat mark in the hereafter as other bearers seek its paths. However, the company s aging aircraft fleet would non be an plus to most bearers, and it is ill-defined whether shareholders would recognize a sensible net income, even at today s low monetary values. The mentality for Southwest is well brighter than for ValuJet. The company has one of the highest safety records in the industry, and the company has besides benefited from higher ticket monetary values and increased rider traffic. The recent reinstatement of the federal excise revenue enhancement is non expected to hold a negative consequence on Southwest demand since it has indicated it will increase menus in merely 20 per centum of its markets, but this will impact profitableness. The company s scheme is to do up the difference of lower gross with increased demand through its lower menus ( Thorpe, 1996, p. 262 ) . The air hose industry has become one of the most competitory sections of our economic system. The economic worlds of operation costs versus passenger demand for cost-efficient travel has everlastingly changed the face of the travel industry. After deregulating in 1978, the air hose industry was forced to abandon its service-oriented doctrine and see the competitory force per unit areas since they affected the assorted companies bottom line. Price had all of a sudden become the benchmark in the air hose industry. Companies such as Southwest and ValuJet recognized the potency for low menus with commensurably low degrees of service. With the altering paradigms in the air hose industry comes hazard, non merely to the person air hoses but besides the populace in general. At what point do the economic force per unit areas of doing a net income for the air hoses affect rider safety? If the tendency toward more air hose catastrophes continues and those accidents can be attributed to cost-cutting steps, certainly Congress will step in. The air hose industry must be disciplined in its attack to work outing the economic force per unit areas, while, at the same clip stay focused on safety issues. If the air hose industry is to last and give the consumer picks, rider assurance can non be sacrificed for the interest of the bottom line!