A report on the internationalisation strategies, opportunities and Essay

A report on the internationalisation strategies, opportunities and challenges in global wine industry (pls refer to the specifications) - Essay Example The wine industry has been highly fragmented which is evident from the fact that the 15 leading wine producers were based in eight different countries. Consolidation in the industry has been taking place since 2005. Internationalisation and Product Life Cycle theory states that once a new product matures in the domestic market and reaches the standardization level, it expands overseas as it seeks new markets. This theory assumes that innovation takes place in the parent company’s country but recent research suggests that innovation is driven by the globalization and is dispersed within multinationals. Britain has always been a very attractive market for wines and France has been the main supplier but New World wine producing countries like Australia, through aggressive sales campaign could overtake France in the white wine market in Britain (Campbell & Guibert, 2006). According to the Uppsala model internationalisation starts with least and gradually expands into more psychically distant countries. This is a paradox since starting internationalisation in psychically close countries can be detrimental to performance. Australia for instance exported to Britain, which demonstrates that distance is not important in internationalization. There are other factors that stimulate the process of internationalization. The Euromonitor states that consumption trends have changed due to lower prices and wider availability of wine, increased consumer knowledge and sophisticated marketing techniques have led to the expansion of the wine industry. Augmentation in the supply chain as well as health factors has added to the expansion of global sales of wine. The business environment is constantly changing and the internationalization patterns change with it. Australia is able to supply good quality wine at relatively low prices. Import tariffs have reduced in a number of key markets and increasing number of

AMA2.2ETHDB Article Example | Topics and Well Written Essays - 1000 words

AMA2.2ETHDB - Article Example A physician has the responsibility of explaining to the patient the benefits, risks, and alternatives so as to enable the patient to make informed decisions or give informed consent. The nurse has the duty of acting as the patient’s advocate and playing a key role in getting patients consider the consequences or alternatives of refusing or accepting care (Weingart et al 2009). The nurse ought to document all efforts to give the patient the necessary information to decide to accept or refuse care. Documentation, thus, ought to be objective including information such as the date, time, who spoke with the patient, the content of what the information that the patient was given, the comments that the patient made, and the final disposition. Documentation of details such as telephone numbers, names, and referrals made by the nurse should be given to the patient on discharge with a listing or description of any instructions given verbally or preprinted forms (Pennycook et al 2011). P roper documentation would be done in the body of the chart of the patient. Other elements to be documented would be their capacity for decision-making, the decision of the patient, the risks that were revealed, the patient’s understanding of the risks, and the signatures of both the physician and the patient. It is advisable to use a comprehensive AMA form to increase proper documentation. Emergency physicians ought to do an assessment of the AMA form to ensure that it is adequate, and in cases where a patient declines to sign the AMA form, the physician is expected to read it aloud, keep a documentation of refusal to sign including the fact that the patient was made aware of the risks of leaving (Schaefer, 2012). With the prevalence of against medical advice medical discharges and the severe problems that they present, physicians of emergency departments always make attempts to prevent patients from leaving against medical advice, but when it is unavoidable, three requiremen ts are normally expected to be met so that the AMA process can grant optimal legal protection; the patient should be considered to have the capacity to refuse care, a disclosure of all potential risks to the patient, and the against medical advice consent be documented properly in the chart (Brown, 2012). Since the law dictates the patient’s right to refusal of medical care, and since treatment without consent could be considered battery, at the point where a patient signs out AMA, they are exercising this right of refusing medical care. Should it be determined that the patient is incapable of making the decision, then it will be unethical and illegal for the physician to allow a discharge that could lead to imperiling the life and health of the patient. In as much as a patient has the legal right to refuse medical care, the exercising of this right is solely dependent of the patient’s capacity of decision-making. A formal assessment would normally be done on the patie nt to determine their decision-making capacity (Brown, 2012). The ethical obligation of disclosure of all risks associated with the patient’s leaving AMA is a secondary tool and requirement for risk management. It is also worth-noting that the appearance of the patient’s signature on the AMA form does not necessarily give a

Managing Professional Intellect Case Study Example | Topics and Well Written Essays - 3250 words

Managing Professional Intellect - Case Study Example The case study "Managing Professional Intellect" discusses what is the professional intellect and how can the organization develop and in what ways can we leverage this professional intellect since a number of leaders and managers in most organizations have created systematic answers to questions concerning professional intellect. Accor group of hotels (China) is one of the major hotel groups in the world. It commands an economy which is constantly growing in most parts of the country. Ibis Hangzhou in Shanghai China is one of the leading hotels of the group. This hotel group offered a good environment for the study of the manner in which information is exchanged between the workers, administration and their customers. It also provides a good opportunity for one to learn the nature of questions asked as well as the kind of knowledge which is shared around. The major reason for selecting this hotel is because it is in the service industry where there is a lot of exchange of information exchanged between customers and stuff workers because of the nature of the services offered. The stuff has to communicate and handle the customers who choose to use their services thus there is need of using information and employ the necessary knowledge to deal with every situation. The hotel was also selected because of the hos pitality it offered for one who is willing to conduct any study there. It offered a good environment for one to make enough direct observations of the required information. 1.20 Study of the Knowledge shared and information exchanged in the Hotel. The Study would cover observation the manner in which the stuff workers of the hotel interact with each other and their customers, the way they approach the customers and the manner in which they approach and respond to each other and the administration. It would also study the manner in which Ibis Hangzhou hotel as an organization share and manage the knowledge they have and the kind of questions asked by the workers to clients as well as the questions asked by the administration to the workers. The aim of this would be to investigate the kind of knowledge and information employed in the hotel environment, how this information and knowledge is managed and how it assists the organization generally. The study would be carried out by participating in the hotels daily operation for a whole day. This would involve interacting directly with the customers and the employees while making direct observation and recording of their behavioral reactions to different individuals. There would also be interview of certain customers and workers within the organization to find their perception of the kind of services hence information provided within the organization. The way every information or question was asked and responded was keenly noted as well as the manner in which the customers were treated was also noted. This was necessary it would enable the researcher in evaluating the kind of information and knowledge is available within the organi

Climate Change Effects On Water Resources Environmental Sciences Essay

Climate Change Effects On Water Resources Environmental Sciences Essay The last two decades climate change is increasing due to the change of human activity such as cars, planes, factorys and other sources we use that adds greenhouse gases to the atmosphere. Because of these human causes the earth is heating up. One effect that climate change has is the effect the change will have upon human water freshwater resources. I believe that climate change will have an effect on human water resources because of the close connections with the hydrological cycle, the raising temperature will increase in floods and droughts that will lead to the demand on more freshwater resources. Climate change has close connections with the hydrological cycle. The hydrological cycle is located in the earths hydrosphere this is the area in around earth which holds all the water. The water is moved around the earths hydrosphere in a cycle. The hydrological cycle is moved in five different steps evaporation, precipitation, condensation, runoff, collection and infiltration. The as you can see in Figure 1 the hydrologival cycle all starts of with evaporation this is the change of liquid water to water vapour. The next step is condensation this is the process of changing water vapour, from a liquid and then to form clouds as you can see from the clouds in figure 1. This process can be notice for example when you look out for dew on the ground in the morning. As the clouds you see in the sky move around earth spreading the water vapour from place to place. The clouds become over loaded with moisture so they have to release the overloaded moisture. They release the moisture by a pr ocess called by precipitation which is usually rain, hail or snow. Infiltration occurs they when all the precipitations lay on the ground. If there is to much precipitation on the ground this becomes runoff. Runoff stays on the earth ground and runs into streams, rivers, lakes and oceans. So when the precipitation run into the these streams, rivers, lakes and oceans this process is called collection. As infiltration, runoff and collection are being processed, the sun is causing a the cycle to return back to the begaining of the cycle to the process called evaporation.Sunlight heats up the liquid in streams, rivers, lakes and oceans. The warm air rises upwards into the atmosphere and becomes the vapour involved in condensation. Without this process life on earth would be impossible. Freshwater that we use in or day to day lifes usually comes from Aquifer, Streams, Rivers, Lakes. Aquifer are constructed when rocks of the upper part of the earths crust contain holes or pores. Theses holes are big or joined together so that water can flow through them easily. This is a part of rock that is easy for water to pass through known as permeable. Streams usually get most of its water from runoff, rain and melting snow. A stream is formed when the rain and melting snow met at the same place and get into a line of channel. Streams usely flows into lakes, rivers, aquifer and seas. Rivers are a natural stream of freshwater resource. Water within the river is generally collected from precipitation through surface runoff, groundwater recharge, springs and the release of stored water in ice and melting glaciers. Lakes are usually filled with deep freshwater or salt water. Lakes are inland usly on mountains areas and are not part of the Ocean. They are filled by rivers or streams that connect to them. Some Lakes can be man made and are constructed for industrial or agricultur al use and even for hydro- electric power or domestic water supply. Water is one of the most importent inputs the human body needs for us humans to cope with everyday life . We need it for so many things e.g. health, growing food, irrigation, industry. Despite the importance of Freshwater Resources decreasing, we are beginning to take the freshwater resources for granted. Most of the freshwater we use is wasted and polluted. Because the hydrological cycle temperature is rising it will lead to a change in the horological cycle, This will have an impact on the weather. The dry seasons will become alot more dryer and the wet seasons will become alot more wetter. Leaving us with more floods and droughts. This change will therefore will impart the availability and quality of water. Some of the countries on this earth already have a hard enouch time getting water because of increaseing industrial pollution and population growth. Climate change just adds to the problem to the quality of water, which in some parts of the world the reduce rainfall and rising temperatures decrease the freshwater. By the year 2025 most of humans living in countries with poor water quality levels will increase from approximately 34 percent (in 1995) to 63 percent.R K Pachauri (2005) The change in accessing water stressed areas will have a potential conflict. As there will be a pressured demand on freshwater because of household, agricultural and industrial uses. These conflicts will occur in water stressed areas fighting against areas of natural springs and rivers as well as this it will lead to conflict on boundary areas for example the region of Northern Kenya and the Samburu is having to cope with the changing patterns of rainfall and dry periods which with other pressures on the natural resources are leading to increasing conflict among tribal groups over access to scarce water.Smith (2006) 2 Discussion Most of the earth has 70% of ocean. While just 30% of the earth is land. Around 84% of the worlds population is living on dry land. Humans are trying to fix this by reconstruction the hydrological cycle system by building dams and creating waste water treatment plants etc. These elements will provide water for agriculture, household, Industrial, environmental and other uses. But these changes will also lead to some defects in years to come. India is one of the most effected by climate change. The snow ice caps of the Himalayas is experienceing less snow because of snow melt. The glaciers is melting and there is signs of increase flooding. The increasing rising temperatures is starting to dry up the rivers. The Himalayas holds the largest amount ice on the earth. Researchers have figure out that there is a strong combination between snow and the temperature. In recent years the Himalayas have experienced warm periods in the years between 1960- 1990, causing a reduction in snow fall. Glaciers has been watched by researchers in the the past years. The United Nations climate report predicts by 2035 some Himalayan glaciers will disappear with the rising temperatures. Because of the glaciers melting the melting ice will run off into rivers such as the Indus, Ganges and Brahmaputra rivers and some tributaries coming from the Himalayan ice field. This will cause flooding to riverside cites e.g. Varanasi, Kanpur and Patna. These citys have a population of millions and have already experience floods during high monsoon season and it will be ongoing. Flooding will also cause interruption for the farming areas in northern parts of India and cause damage to the roads and rail way line. The dams such as the dams in Kosi ans Sutlej could over flow causing more destruction to cornfields and settlements. When the point of no ice is reached by 2035 the ice melting will have either stopped because of a solution to climate change or be dried up because of the continued temperature rising. If the ice does start to minimise the river will become weaker and dryer during the monsoon mouths and summer. As the earths temperatures rises from about 14 degrees C based in 2000 to a estimated 19 degrees C in 2100 the following effects will be cause by the increase; Agricultural, Household, Industrial, Environmental and health sea levels will rise to an estimated 3.9 in to estimated 35 by 2100. Some parts of the coastal cites around India e.g. Mumbai, Chennai, Kolkata and other parts of the world will be underwater. Even most of the island around India will be covered in water. The island of Lohachara is the first island in the world to be covered in water due to climate change. The island is located on the southern edge of the Ganges delta in the bay of Bengal. Its 10,000 residents became the first refugees created because of climate change. There is a group of 27 island called Lakhadweep around the Arabian sea off the coast of south Indian state Kraal. They have a population of about 61,000 people living on them. The low lying islands are in huge danger of being covered in water as well. India is one of the world biggest countrys that effects the greenhouse effect. With the increased temperatures they will create a increase in precipitation. Rising the process of evaporation resulting from warmer sea temperatures in the Indian ocean and Arabian Sea will increase that destroy process around the west Indian Rajasthan Desert As well as the water resources being shorten because of climate change there is also another problem and that is that usually boundary countries sometime share the same water resource. There is some indentation that there has been conflict over freshwater shared by two or more countries. Freshwater is very important to all the worlds Humans activity, including the Agricultural, Household, Industrial and Environmental. But bad management and the impact of climate change can lead to tensions between different countries. For some years the counties such as India and Bangladesh have encountered conflict on river resources. It all started In 1993 when India and Bangladesh came under pressure when the Ganges River started to reach its record lows. Because the water level was low it affected Bangladesh agricultural and killed most of its crops. In October 1995, The Prime Minister of Bangladesh addressed the United Nations(UN) .The prime minister called India ¿Ã‚ ½s share of river water resources  ¿Ã‚ ½a gross violation of human rights and justice. ¿Ã‚ ½ India ¿Ã‚ ½s establishment of the Farrakka Barrage which is a barrage built near the border of Bangladesh. The barrage was build was to separate water for the Calcutta port. But Bangladesh says that because of this separation it has resulted in falling water tables and greater water resources for Bangladesh. India has a different view of the issue. Indian leaders says that Bangladesh was wrong in describing this issue. Bangladesh has asked India for a  ¿Ã‚ ½minimum guarantee ¿Ã‚ ½ agreement which will give Bangladesh a minimum flow of water. In 1996 India and Bangladesh agreed in the agreement then the  ¿Ã‚ ½Treaty on the Sharing of the Waters of the Gang ¿Ã‚ ½ was signed. Some political leader were unhappy about the agreement. But it was accepted my most political leaders. Since the treaty Bangladesh continues to have a number of problems. Some of the agreements that was agreed in the treaty have not been met. How are we going to fix this problem is the question we need to ask ourselfs I can see from my research that some efforts are being made to improve management in freshwater resources. Different organiseions have been developed to help the mather of climate change for example, the United Nation(UN) have organised the first water conference to take place in 1977 and developed an action plan to take action on the improved management and development of water resources and the UN designated 2003 as the international year of freshwater resources. The mission of the organision is to increase awareness of the importance of freshwater use, management and protection, provide an opportunity to change the implementation of the principles of integrated water resources management, use the year as a platform for promoting existing activity and spearheading new initiatives in water resources at the international, regional and national levels, and Launch the world water development report at the thir d world water forum in Kyoto. The World Summit on Sustainable Development(WSSD) 2002 has emphasised on the development of an integrated water resources management and water efficiency plan.DEVELOPMENT (2003). Global Water Partnership(GWP) Is a network of agencies and intuitions to promote  ¿Ã‚ ½integrated water resource management ¿Ã‚ ½ in developing countries. It facilitates the exchange of knowledge, experience and practise related to water resources management.Partnerships (2010). World Water Council(WWC) is an international think-tank for water issues. It objective is to  ¿Ã‚ ½increase advocacy for improved water resources management ¿Ã‚ ½. WWC has been organising the World Water Forum(WWF) bi-annually. The 3rd Forum was held in Japan in march 2003.Council (2010). European Water Association Act as a focal point for the exchange of information related to water and water activities.Association (2010) 3 Conclusion I can conclude that because of climate change and the hydrological cycle it is having a slight long term effect on human water resources. I can see that it has close connections with the hydrological cycle. Because of this it will increases flooding, create dry lands and encounter conflict within countries. More acceleration to the hydrological cycle may result in more severe weather and extreme conditions.Anne E. Egger (2003) If we dont address this issue there will be further more problems in the future and lead to even more droughts and flooding. According to the Comprehensive Assessment Of Water Manage in Agriculture, one in three people are already facing water shortages(2007). Almost one-fifth of the world ¿Ã‚ ½s population, live in areas of physical scarcity. Climate change has a close connection between hydrological cycle. Rising temperatures will increase the changing liquid to vapour and lead to the increases in rainfall and snowfall. Because of this the overall supply of freshwater resources will increase, Droughts and floods will happen more frequently and changes in snowfall and snow melt are expected in mountainous areas more frequently. Reading about climate change has made me release that we take our freshwater for granted and dont think about what will happen if we lose the freshwater. Will we have to introduce water charges maintain better water systems.

Use of Satire to Target Religion, Military, and Optimism in Voltaires

Use of Satire to Target Religion, Military, and Optimism in Voltaire's Candide    In his work, Candide, Voltaire uses satire as a means of conveying his opinions about many aspects of European society in the eighteenth century.   Voltaire successfully criticizes religion, the military, and the philosophy of optimism.   Religious leaders are the targets of satire throughout Candide. Voltaire portrays the religious clergy as men who use their positions to further their own causes. In addition, the priests keep the less fortunate oppressed, so the clergy members can continue to enjoy extravagant luxuries. Candide discovers the young Baron, whom he thought to be dead, living among the Jesuit Priests of Paraguay. Assuming the native people must be thriving under the protection of these religious/military leaders, Candide believes this to be a most pleasant place to live. However, he soon discovers that the religious leaders are pilfering the resources of the natives. The young Baron is found eating from golden bowls while the native people live in poverty with very little food. Th... Use of Satire to Target Religion, Military, and Optimism in Voltaire's Use of Satire to Target Religion, Military, and Optimism in Voltaire's Candide    In his work, Candide, Voltaire uses satire as a means of conveying his opinions about many aspects of European society in the eighteenth century.   Voltaire successfully criticizes religion, the military, and the philosophy of optimism.   Religious leaders are the targets of satire throughout Candide. Voltaire portrays the religious clergy as men who use their positions to further their own causes. In addition, the priests keep the less fortunate oppressed, so the clergy members can continue to enjoy extravagant luxuries. Candide discovers the young Baron, whom he thought to be dead, living among the Jesuit Priests of Paraguay. Assuming the native people must be thriving under the protection of these religious/military leaders, Candide believes this to be a most pleasant place to live. However, he soon discovers that the religious leaders are pilfering the resources of the natives. The young Baron is found eating from golden bowls while the native people live in poverty with very little food. Th...

Flannery O’Connors’s short story Essay

I believe the main theme in Flannery O’Connors’s short story, † Good Country People† is approval; everyone wants to believe that they are beautiful and we seek approval from both our parents and friends. In this short story a girl, Joy, longs for her mothers approval. After she is unable to get her mothers approval Joy starts believing that she is unworthy of anyone’s admiration. Joy is thirty-two years of age and has a wooden leg, which makes it even harder for her to be socially accepted. Joy’s wooden leg represents the on going theme of approval in O’Connor’s story. Joy changes her name to Hulga which Mrs.Hopewell feels is one of the ugliest names she could have chosen. This could be interpreted as a representation of how Joy â€Å"Hulga† feels about herself. I do not want to say that I do not have any beliefs, honestly I don’t know what it is that I believe in. To me this story depicts the real meaning of life and how you can be happy with your own self, disability or not. By changing her name to Hulga I believe that Joy not only accepts herself but realizes that not everyone is meant to be made perfectly. Hulga’s main accomplishment is her education, a Ph. D in Philosophy. Joy’s mother, Mrs. Hopewell did not like the fact that her daughter had gotten a Ph. D in Philosophy. † My daughter is a schoolteacher, or even my daughter is a chemical engineer. You cant say, my daughter, the philosopher. That was something that had ended with the Greeks and Romans,† (O’Conner, 276). Hulga’s mother was never really accepting of her daughters choices. Another main character in this short story is, Manley Pointer. I could consider his role in this story to be very ironic. He goes around selling bibles to so called â€Å"non-believers† but can never leave without stealing something. This character is a very smooth talking and can almost always out talk his way out of any tight or difficult situation. Ultimately, the deception of portrayal and deceiving has been seen to symbolize the devil. Pointer starts his deceiving by coming off as to good to be true and overly friendly; all in all a true christian. † I hope you don’t think,† he said in a lofty indignant tone, ‘that I believe in that crap! I may sell bibles but I know which end is up and I wasn’t born yesterday and I know where I’m going,† (O’Connor, 290). Manley finally comes clean to Hulga and admits that he is not really who he says he is and that he is not a christian. Manly had beaten the Hulga, a woman who believed that he was such an innocent man and not much else, began to believe in the man he was and who they could be together. Hulga had â€Å"decided that for the first time in her life she was face to face with real innocence†. (289) This short story has opened my eyes, in the simple fact that the characters are so symbolic. Each one representing faith in their own way. From their names such as, Mrs. Hopewell and Mrs. Freeman to Hulga’s symbolic wooden leg. We discussed in class the importance of the characters names such as: Mrs. Freeman, free; Mrs. Hopewell, hope; Joy Hopewell, joy; Manly Pointer; man. Each name or figure represents some sort of theme; which makes this short story much more ironic. O’Connors depiction of this story is both comical and very meaningful in many different ways. Mrs. Freeman is comical at the beginning of the story when her facial expressions are described as never being wrong and when she is, it is evident â€Å"her face comes to a complete stop†. (271) Mrs. Hopewell considers herself to be a good person, with each character she sees the good and focuses on that. The reason behind this may be a way of comfort to just see the good, and ignore the bad in people. Joy uses her education as a way of having wisdom and avoiding a belief in any type of religion. Manly is a symbol of deception and control, he takes every situation and manipulates it to his advantage. The characters in this short story portray many people that I associate with in real life. From Mrs. Hopewell who always sees the good things in everybody and does whatever she can to help people out. And Manly, who is like almost every male in this world; in it only for the benefit of himself and in the end hes only going to do something if it benefits him in the end. Then there is Hulga, who is very conscious of the people around her and she also lacks confidence. She lives a very timid life and is afraid to live her own life, shes to worried about what someone is going to say to her. This short story is a very good deception of everyday life and challenges that people are faced with daily. It also contains many different symbols and opened my eyes to the meaning of faith.

Cosmetics and Products

AVON -STUDY CASE- Analiza contextului global al afacerilor prin prisma factorilor de impact asupra industriei cosmeticelor The cosmetic industry is one of which products tend to be countercyclical. Demand for such products normally remains constant and unaffected by economic distress. The color cosmetics are predicted to see a slowdown in volume demand. A growing trend in the cosmetic industry is the introduction of ‘green’ products. More than one in seven (16%) of global beauty products launched in 2008 were certified organic, ethical or natural.There are concerns that the global economic climate will stifle new product development, innovation and sustainability programs in 2009. An economic slowdown usually curbs companies from investing in research and development and it is that research that has brought forth a wealth of green cosmetics. For example, retailers such as Wal-Mart are increasingly requiring more ecofriendly supply chain. There are forecasts that consumer s are unlikely to give up their commitments to organic products just to save a few pennies. 8% of consumers will remain loyal to a company that has a social and environmental commitment. Many consumers are now ‘voting with dollars’ for organic products and supporting brands that support values similar to their own. Economic factors mainly affect the purchasing power of customers. The more customer demand for the product the more profit to the organization, at the same time if there is no customers demand it’s going to affect the organization in a negative manner.So economic factors are very important external factors and affect the cosmetic industry. Economic factors include: Unemployment rate, Economic growth rate, Interest rate. Other factors that influence the cosmetic industry are the government and legal basis. Also for AVON some of the risk factors are: Success depends on our ability to execute fully our global business strategy, May experience financial an d strategic difficulties and delays or unexpected osts in completing our multi-year restructuring programs or long-range business review, including achieving any anticipated savings and benefits of the initiatives thereunder, The key personnel, The business is conducted worldwide primarily in one channel, direct selling, The taxes, political issues, legal and regulatory risks are also to be taken intoconsideration on international markets, May be subjects to financial risks related to their international operators, including exposure to foreign currency fluctuations, Competition,A general economic downturn, a recession globally or sudden disruption in business conditions, A disruption of a key information technology system, process or site could adversely affect their operations, The ability to anticipate and respond to market trends and changes in consumer preferences, Government reviews, inquiries, investigations, and actions could harm our business or reputation, Protection the i ntellectual property rights, specifically patents and trademarks, Involvement in future, in the legal proceedings. Analiza mediului ramurii Avon Production considers its two closest competitors to be Mary Kay and Revlon.Avon is nearly 8 times larger than Revlon. In terms of channel of distribution, Mary Kay most closely resembles Avon because both use a direct marketing approach. Revlon in contrast sells its products through cosmetic counters in department stores and pharmacies. Avon has 42000 employees worldwide and Mary Kay has 5000 and Revlon has 5600. The large difference in company representatives is attributable to the necessity of employing more people to sell directly to customers than selling products through a storefront. The revenues of Avon also far exceed those of its closest competitors, with Mary Kay selling $2. 0 billion and Revlon selling $1. 35 billion in 2008 as compared to Avon’s $10. 37 billion. [pic] We face competition from competing products in each of our lines of business, in both the domestic and international markets. Worldwide, we compete against products sold to consumers by other direct-selling and direct-sales companies and through the Internet, and against products sold through the mass market and prestige retail channels. We also face increasing competition in our developing and emerging markets. Within the direct selling channel, we compete on a regional and often country-by-country basis, with our direct-selling competitors.There are also a number of direct-selling companies that sell product lines similar to ours, some of which also have worldwide operations and compete with us globally. Unlike most other beauty companies, we compete within a distinct business model where providing a compelling earnings opportunity for our Representatives is as critical as developing and marketing new and innovative products. Therefore, in contrast to a typical consumer packaged goods (â€Å"CPG†) company which operates within a broad-based consumer pool, we must first compete for a limited pool of Representatives before we reach the ultimate consumer.Direct sellers compete for representative or entrepreneurial talent by providing a more competitive earnings opportunity or â€Å"better deal† than that offered by the competition. Representatives are attracted to a direct seller by competitive earnings opportunities, often through what are commonly known as â€Å"field incentives† in the direct selling industry. Competitors devote substantial effort to finding out the effectiveness of such incentives so that they can invest in incentives that are the most cost effective or produce the better payback.As the largest and oldest beauty direct seller, Avon’s business model and strategies are often highly sought after, particularly by smaller local and more nimble competitors who seek to capitalize on our investment and experience. As a result, we are subject to significant competition for t he recruitment of Representatives from other direct selling or network marketing organizations. It is therefore continually necessary to innovate and enhance our direct selling and service model as well as to recruit and retain new Representatives.If we are unable to do so our business will be adversely affected. Within the broader CPG industry, we compete against large and well-known cosmetics and fragrances companies that manufacture and sell broad product lines through various types of retail establishments. In addition, we compete against many other companies that manufacture and sell in more narrow Beauty product lines sold through retail establishments. This industry is highly competitive, and some of our principal competitors in the CPG industry are larger than we are and have greater resources than we do.Competitive activities on their part could cause our sales to suffer. We have many competitors in the highly competitive gift and decorative products and apparel industries globally, including retail establishments, principally department stores, gift shops and specialty retailers, and direct-mail companies specializing in these products. Our principal competition in the highly competitive fashion jewelry industry consists of a few large companies and many small companies that sell fashion jewelry through retail establishments.The number of competitors and degree of competition that we face in this beauty and related products industry varies widely from country to country. If our advertising, promotional, merchandising or other marketing strategies are not successful, if we are unable to deliver new products that represent technological breakthroughs, if we do not successfully manage the timing of new product introductions or the profitability of these efforts, or if for other reasons our Representatives or end customers perceive competitors’ products as having greater appeal, then our sales and financial results may suffer.Global cosmetic and t oiletries market is witnessing significant growth in terms of sales and technological advancements over the past few years because of increasing consumer awareness towards personal hygiene and health. Growing concerns regarding skin care is particularly fueling the robust growth across all market segments and geographies. Increasing demand for organic and natural cosmetic and toiletries products is creating new growth opportunities in this field which is encouraging the emergence of new market players in this arena.One of the major reasons behind the considerable growth of global cosmetic and toiletries industry is the shifting of production units to cost effective Asian economies like India and China. Emergence of new distribution channels like online retailing is driving the growth of this market. Increasing consumer preferences towards the use of herbal and natural cosmetic products is forcing the cosmetic and toiletries manufacturers to change and adapt strategies according to c onsumer preferences.Worldwide market for cosmetics and toiletries products was severely affected by economic downturn, but with the global economy recovering, this market is projected to witness a significant growth and reach the value of USD 19. 2 billion by the year 2015. However, difficulty in obtaining credit and weakening consumer confidence are affecting consumer spending on cosmetics which is one of the major challenges faced by this industry. Presence of large domestic markets is helping emerging economies to recover from deepening economic crisis.Cosmetics and toiletries market is still in its embryonic stage and holds strong growth potential in near future. Consumption of cosmetic and toiletries products is no more limited to female population alone. Male grooming products are emerging as an important segment of this market. Skin care products, hair care products, face cleansers, and premium shaving products are important offerings for male grooming products market. The US and Europe is the largest market for sun care and skin care products. Products with natural and organic ingredients are in increasing demand in European and North American markets despite of high cost.Major reason behind this increased demand of organic products is better health benefits offered by these products. Rising environmental concerns, carcinogenic nature of synthetic cosmetic ingredients, and increasing awareness about sustaining resources are some of the major factors propelling the growth of organic and natural ingredients in cosmetic industry. Worldwide market for cosmetics and toiletries is categorized into skin care, hair care, fragrances, make-up, oral care, baby care, bath and shower, deodorants, color cosmetics, men’s grooming, sun care, and others.For the environmental analysis, it should be taken into consideration the five forces of Porter: 1 Threat of new entry This factor analyzes the ease with which firms may enter into an industry. Competitive indust ries are likely to attract many firms which will strive to capture a market share. This is likely to reduce the overall profitability of firms which are present in the industry. In order for firms to enjoy long term profitability, they should develop customer loyalty within their industry.This will ensure that although new firms enter an industry, their market share is unaffected since customers have faith on their products. Development of customer loyalty is achieved through innovating new products which meet the unique market needs. The cosmetic industry has a low threat of new entrants. This is due to several factors. The first is the huge costs of entry. Developing unique cosmetic products requires a lot of resources both in terms of research and development and the actual manufacturing process. Few middle and small scale firms have access to the funds and expertise required to perform this effectively.Another factor which discourages entry into this industry is the huge competi tion present in the industry. In addition to the huge competitors such as Avon, Revlon, Clinique, Estee Lauder, LR, Mac and Unilever, who have a large market share, there are many other small scale competitors who also have a small market share and who reduce the overall profitability of firms in the industry. 2 3 Bargaining power of customers The bargaining power of customers analyzes the power which consumers have relating to price changes in the industry.This factor analyzes the power which consumers have in manipulating price changes due to shifts in demand (Aaker, 2000: 102-120). When consumers have a high bargaining power, the manufacturers and sellers may not adequately predict future demand by the market. This may make them unable to achieve long term profitability due to unpredictable demand patterns. The cosmetic has a high bargaining power of customers. This is due to the increase competition and availability of cosmetic products from a variety of manufacturers.Since thes e products have high substitutes, then it is possible for consumers to force manufacturers to reduce their product prices through purchasing those of their competitors. This is a challenge which manufacturers of cosmetic products face across the world. 4 Bargaining power of suppliers This factor analyzes the power which suppliers have regarding making price changes for their products. Suppliers who have a high bargaining power are able to influence price changes through using techniques such as market manipulation through hoarding and restraining supply.Although some of these strategies are illegal in many countries, suppliers usually apply them when they want to effect price changes. The cosmetic industry has a low bargaining power of suppliers. This is due to the high number of market players and large supply of diverse products to the market. There are many cosmetic products which are developed by both large and small scale manufacturers. Due to the huge supply, consumers have th e power to influence the market prices as opposed to the suppliers. 1 Threat of substitutesThe threat of substitutes arises when there are similar products developed by competitors which satisfy the market needs. When consumers have access to substitute products which can satisfy their market needs, then manufacturers and suppliers lose their bargaining power. Consumers are able to purchase competitor’s products if they are not satisfied with product price or quality. In order for suppliers to tackle the challenge of threat of substitutes, they have to innovate products which meet the needs of their target market segments. In the cosmetic industry, there are many competitors as has been discussed.There is therefore a high threat of substitute products. If manufacturers sell their products at higher prices, or if the products are of low quality, then consumers are able to purchase substitutes from the many competitors who are present in the market environment. It is therefore essential for the market players in the cosmetic to be innovative if they are to tackle the challenge of the threat of substitute. 2 Barriers to entry and exit Barriers to entry and exit refer to the challenges firms face when entering or leaving the industry respectively.It has been discussed that there are huge costs which are associated with entry to the cosmetic industry. These costs include costs for developing the products as well as research costs. These are some of the barriers to entry in the cosmetic industry. In addition, there are many competitors who reduce the overall profitability of the industry, which makes it a barrier to entry. Finally, the many large scale cosmetic firms which enjoy economies of scale make it a barrier to entry especially for middle and small scale firms. Barriers to exit include the high development and research costs.Due to the high costs associated with developing cosmetic products, it is difficult for firms to leave the industry without achie ving the costs for production. There are also many machines and equipment used in developing cosmetic products and disposing these at a fair market value is difficult hence making it an exit barrier. 3 4 Seller and buyer concentration The cosmetic industry is appealing fir people of all age groups and social backgrounds. There are many cosmetic products which are tailored to meeting the needs of different market segments. The buyer concentration can herefore be deemed as low since there are many buyers who cut across different market segments both in the developed countries and the developing countries. However, the seller concentration may be deemed as high in developed countries. Many large scale cosmetic producers are concentrated in develop countries such as the United States, France and Germany. For instance, the cosmetic industry is valued at $6 billion in France and $12 billion in Germany. In the US, it is valued at over $20 billion. However, the seller concentration in devel oping countries and emerging markets is relatively low.Few firms have ventured into developing products which meet the specific needs of this market segment. In order to achieve long term profitability, new market entrants should focus on this neglected population segment. The high seller concentration in the developed countries leads to high competition and an overall reduction in profitability for cosmetic firms in this industry. Analiza competentelor functionale Avon Distribution We presently have sales operations in 65 countries and territories, including the U. S. and distribute our products in 42 other countries and territories. Unlike most of our competitors, which sell their products through third party retail establishments (e. g. drug stores, department stores), we primarily sell our products to the ultimate consumer through the direct-selling channel. In our case, sales of our products are made to the ultimate consumer principally through direct selling by approximately 6 . 4 million active independent Representatives. Representatives are independent contractors and not our employees.Representatives earn a profit by purchasing products directly from us at a discount from a published brochure price and selling them to their customers, the ultimate consumer of our products. We generally have no arrangements with end users of our products beyond the Representative, except as described below. No single Representative accounts for more than 10% of our net sales. A Representative contacts customers directly, selling primarily through our brochure, which highlights new products and special promotions for each sales campaign.In this sense, the Representative, together with the brochure, are the â€Å"store† through which our products are sold. A brochure introducing a new sales campaign is usually generated every two weeks in the U. S. and every two to four weeks for most markets outside the U. S. Generally, the Representative forwards an order for a campaign to us using the Internet, mail, telephone, or fax. This order is processed and the products are assembled at a distribution center and delivered to the Representative usually through a combination of local and national delivery companies.Generally, the Representative then delivers the merchandise and collects payment from the customer for his or her own account. A Representative generally receives a refund of the price the Representative paid for a product if the Representative chooses to return it. We employ certain web enabled systems to increase Representative support, which allow a Representative to run her or his business more efficiently and also allow us to improve our order-processing accuracy.For example, in many countries, Representatives can utilize the Internet to manage their business electronically, including order submission, order tracking, payment and two-way communications with us. In addition Representatives can further build their own business through pe rsonalized web pages provided by us, enabling them to sell a complete line of our products online. Self-paced online training also is available in certain markets, as well as up-to-the-minute news about us. In some markets, we use decentralized branches, satellite stores and independent retail operations to serve Representatives and other customers.Representatives come to a branch to place and pick up product orders for their customers. The branches also create visibility for us with consumers and help reinforce our beauty image. In certain markets, we provide opportunities to license our beauty centers and other retail-oriented and direct to consumer opportunities to reach new customers in complementary ways to direct selling. In the U. S. and selected other markets, we also market our products through consumer websites (www. avon. com in the U. S. ). Promotion and MarketingSales promotion and sales development activities are directed at assisting Representatives, through sales aid s such as brochures, product samples and demonstration products. In order to support the efforts of Representatives to reach new customers, specially designed sales aids, promotional pieces, customer flyers, television and print advertising are used. In addition, we seek to motivate our Representatives through the use of special incentive programs that reward superior sales performance. Periodic sales meetings with Representatives are conducted by the district sales or zone managers.The meetings are designed to keep Representatives abreast of product line changes, explain sales techniques and provide recognition for sales performance. A number of merchandising techniques are used, including the introduction of new products, the use of combination offers, the use of trial sizes and samples, and the promotion of products packaged as gift items. In general, for each sales campaign, a distinctive brochure is published, in which new products are introduced and selected items are offered as special promotions or are given particular prominence in the brochure.A key current priority for our merchandising is to continue the use of pricing and promotional models to enable a deeper, fact based understanding of the role and impact of pricing within our product portfolio. From time to time, various regulations or laws have been proposed or adopted that would, in general, restrict the frequency, duration or volume of sales resulting from new product introductions, special promotions or other special price offers. We expect our pricing flexibility and broad product lines to mitigate the effect of these regulations.Competitive Conditions We face competition from various products and product lines both domestically and internationally. The beauty and beauty-related products industry is highly competitive and the number of competitors and degree of competition that we face in this industry varies widely from country to country. Worldwide, we compete against products sold to co nsumers by other direct-selling and direct-sales companies and through the Internet, and against products sold through the mass market and prestige retail channels.Specifically, due to the nature of the direct-selling channel, we compete on a regional, often country-by-country basis, with our direct-selling competitors. Unlike most other beauty companies, we compete within a distinct business model where providing a compelling earnings opportunity for our Representatives is as critical as developing and marketing new and innovative products. As a result, in contrast to a typical CPG company which operates within a broad-based consumer pool, we must first compete for a limited pool of Representatives before we reach the ultimate consumer.Within the broader CPG industry, we principally compete against large and well-known cosmetics and fragrances companies that manufacture and sell broad product lines through various types of retail establishments. In addition, we compete against many other companies that manufacture and sell more narrow beauty product lines sold through retail establishments and other channels. We also have many competitors in the gift and decorative products and apparel industries globally, including retail establishments, principally department stores, gift shops and specialty retailers, and direct-mail companies specializing in these products.Our principal competition in the fashion jewelry industry consists of a few large companies and many small companies that sell fashion jewelry through retail establishments and direct-selling. We believe that the personalized customer service offered by our Representatives; the amount and type of field incentives we offer our Representatives on a market-by-market basis; the high quality, attractive designs and prices of our products; the high level of new and innovative products; our easily recognized brand name and our guarantee of product satisfaction are significant factors in helping to establish an d maintain our competitive position.International Operations Our international operations are conducted primarily through subsidiaries in 64 countries and territories outside of the U. S. In addition to these countries and territories, our products are distributed in 42 other countries and territories. Our international operations are subject to risks inherent in conducting business abroad, including, but not limited to, the risk of adverse currency fluctuations, currency remittance restrictions and unfavorable social, economic and political conditions.See the sections â€Å"Risk Factors – Our ability to conduct business, particularly in international markets, may be affected by political, legal, tax and regulatory risks† and â€Å"Risk Factors – We are subject to financial risks related to our international operations, including exposure to foreign currency fluctuations† in Item 1A on pages 7 through 15 of our 2011 Annual Report. Manufacturing We manufac ture and package almost all of our Beauty products. Raw materials, consisting chiefly of essential oils, chemicals, containers and packaging components, are purchased for our Beauty products from various suppliers.Most of our Fashion and Home products are purchased from various third-party suppliers. Additionally, we design the brochures that are used by the Representatives to sell our products. The loss of any one supplier would not have a material impact on our ability to source raw materials for our Beauty products or source products for our Fashion and Home categories or paper for the brochures. Trademarks and Patents Our business is not materially dependent on the existence of third-party patent, trademark or other third-party intellectual property rights, and we are not a party to any ongoing material licenses, franchises or concessions.We do seek to protect our key proprietary technologies by aggressively pursuing comprehensive patent coverage in major markets. We protect our Avon name and other major proprietary trademarks through registration of these trademarks in the markets where we sell our products, monitoring the markets for infringement of such trademarks by others, and by taking appropriate steps to stop any infringing activities. Research and Product Development Activities New products are essential to growth in the highly competitive cosmetics industry.Our research and development department’s efforts are significant to developing new products, including formulating effective beauty treatments relevant to women’s needs, and redesigning or reformulating existing products. To increase our brand competitiveness, we have sustained our focus on new technology and product innovation to deliver first-to-market products that provide visible consumer benefits. Our global research and development facility is located in Suffern, NY.A team of researchers and technicians apply the disciplines of science to the practical aspects of bringing products to market around the world. Relationships with dermatologists and other specialists enhance our ability to deliver new formulas and ingredients to market. Additionally, we have satellite research facilities located in Argentina, Brazil, China, Mexico, Poland and South Africa. In 2010, we invested in our R&D facility in Shanghai, China to increase our ability to develop products to better meet Asian consumers’ needs. In 2011, our most significant product launches included: SuperShock MaxMascara. Moisture Seduction Lipstick, Outspoken Intense by Fergie Fragrance, Step Into Fragrance, Anew Genics Treatment Cream, Anew Solar Advance Sunscreen Face Lotion SPF 45, Solutions Youth Minerals Restorative Night Cream, Skin So Soft Perfecting Oil, Advance Techniques Damage Repair 3D Rescue Leave-in Treatment, Super Enchant Mascara, and ExtraLasting Makeup. The amounts incurred on research activities relating to the development of new products and the improvement of existing prod ucts were $77. 7 in 2011, $72. 6 in 2010 and $65. 4 in 2009.This research included the activities of product research and development and package design and development. Most of these activities were related to the development of Beauty products. Environmental Matters In general, compliance with environmental regulations impacting our global operations has not had, and is not anticipated to have, any material adverse effect on our capital expenditures, financial position or competitive position. Employees At December 31, 2011, we employed approximately 40,600 employees. Of these, approximately 5,400 were employed in the U. S. nd 35,200 in other countries. Seasonal Nature of Business Our sales and earnings typically have a seasonal pattern characteristic of many companies selling Beauty, gift and decorative products, apparel, and fashion jewelry. Holiday sales generally cause a sales peak in the fourth quarter of the year; however, the sales volume o holiday gift items is, by its nat ure, difficult to forecast. Fourth quarter revenue and operating data was as follows: | |2011 |2010 | |Fourth uarter revenues as a % of total revenue |27% |29% | |Fourth quarter operating profit as a % of total operating profit |2% |33% | The fourth quarter operating profit comparison between 2011 and 2010 was unfavorably impacted by a $263. 0 impairment charge, or 31% of full year operating profit, recognized in the fourth quarter of 2011. The fourth quarter operating profit comparison was partially offset by lower costs to implement our restructuring initiatives in 2011 compared to 2010.The fourth quarter of 2011 included costs to implement our restructuring initiatives of $8. 7, whereas the fourth quarter of 2010 included $58. 3 of costs to implement our restructuring initiatives. Finance The financial statement of the company in 2011 is: Internationalizare Avon [pic] As the world's largest direct seller, Avon markets leading beauty, fashion and home products to women in more th an 100 countries through more than 6 million active independent Avon Sales Representatives. The countries are:Albania, Anguilla, Antigua and Barbuda, Argentina, Armenia, Aruba, Australia, Bahamas, Barbados, Belarus, Belize, Bermuda, Bolivia, Bonaire, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, Chile, China, Colombia, Costa Rica, Croatia, Curacao, Cyprus, Czech Republic, Dominica, Dominican Republic, Ecuador, Egypt, El Salvador, Estonia, Finland, France, Georgia, Germany, Grand Cayman Island, Greece, Grenada, Guatemala, Guyana, Honduras, Hong Kong, Hungary, Iceland, India, Ireland, Italy, Jamaica, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lithuania, Macedonia, Malaysia, Malta, Mauritius, Mexico, Moldova, Mongolia, Montenegro, Morocco, New Zealand,Nicaragua, North Cyprus, Oman, Panama, Paraguay, Peru, Philippines, Poland, Portugal, Puerto Rico, Reunion, Romania, Russia, Saint Vincent and the Grenadines, Saudi Arabia, Serbia, Slovakia, Slovenia, South Africa, South Africa, Spain, St. Croix, St. Kitts & Nevis, St. Lucia, St. Maarten, St. Thomas, Suriname, Taiwan, Thailand, Tortola, Trinidad & Tobago, Tunisia, Turkey, Turks & Caicos, United Arab Emirates, Ukraine, United Kingdom, United States, Uruguay,Venezuela. When the Avon lady comes knocking at the door, she'd better speak good Portuguese. Or Spanish. Or even Russian. Cosmetics giant Avon Products (AVP) is increasing its revenue these days, with sales outside of the United States really driving business. The company reports first quarter 2011 total revenue of $2. billion, 7 percent higher than that of first-quarter 2010 and in line with company targets. Net income jumped 238 percent to $143. 6 million, thanks to stronger sales and restructuring. â€Å"We are pleased with the early progress against our commitment to return the business to mid-single digit revenue growth,† says Avon's Chairman and Chief Executive Officer Andrea Jung in an earnings statement. â€Å"We are squarely foc used on restoring growth in Brazil and Russia in the second half, and ensuring execution in gross margin improvement and cost control. † Revenue in Latin America, which includes Mexico, was up 16 percent during the quarter while North American revenue was down 2 percent.Central and Eastern European sales were flat although Russia was up 3 percent, while Western Europe, Middle East & Africa's first-quarter revenue increased 16 percent and Asia Pacific, which includes China, reported a first quarter revenue decline of 6 percent. Analysts are pleased with the company's results, but some wonder if the company can keep the momentum going. Zacks Investment Research has assigned a short-term hold rating, although the long-term recommendation is currently underperform. Restructure, then compete Avon is currently in the middle of a multi-year restructuring program designed to accelerate investments toward growth opportunities, streamline manufacturing operations, and improve cost effec tiveness and efficiency in general. Restructuring should save the company $430 million a year when fully implemented by 2012. After that, keep an eye on the competitors. Avon faces competition from various products and product lines both domestically and internationally,† Zack says. The internationalization of Avon most take into account some factors, such as: Political Factors †¡ Tax policies †¡ Employment laws †¡ Trade restrictions and tariffs †¡ Political stability Economic Factors †¡ Economic growth †¡ Interest rates †¡ Exchange rates †¡ Fluctuation in oil and gas prices Social Factors †¡ Emphasis on safety †¡ No animal testing †¡ Green Environment †¡ Philanthropic Issues †¡ Technology Factors †¡ Automation †¡ Technology incentives †¡ Rate of technological change †¡ Technologies Adaption External Assessment: Avon Opportunities 1. A growing trend in the cosmetics industry is the introductio n of ? green? products.More than sixteen percent of beauty products launched in 2008 were certified organic, ethical, or all natural. 2. Eye makeup market 3. The cosmetics industry tends to be countercyclical. This means that those are industries for which the demand is either not correlated with the business cycle. The demand for their products is not much affected by availability of current income, but by other personal, social or economic factors. The recession also contributes to the industry being counter-cyclical. There is an upsurge in people joining the industry in the past six or eight months and there's absolutely no doubt that this is because of the recession and the effect on employment. 4.Aveda cosmetics found that sixty eight percent of consumers will remain loyal to a company that has a social and environmental commitment. 5. Urban Trendsetters markets 6. Geographic growth  ± enormous growth opportunities existed in countries with huge populations such as China, Ind onesia and India. 7. Demand for cosmetic products normally remains constant and unaffected by economic distress 8. The baby boomers are aging and they are more conscious on their appearance, beauty and also improving their looks. Emphasize direct selling in emerging and developing markets External Assessment: Avon Threats 1. Competition such as Mary Kay and Revlon 2. Rejection of internet selling by sales representative 3.Global economic climate stifled new product development, innovation and sustainability programs in 2009. 4. In terms of color cosmetics, environmental International Inc. predicted that many of these markets will see slowdown in volume demand. 5. Inflation rate and Rising cost of commodities 7. Direct-selling becoming more popular – Amid the financial crisis Aussie mums are increasingly turning to direct selling and at-home product parties to supplement their household income. 8. They are a multilevel based company that sells inferior quality with a higher pr ice tag than what it is worth 9. Avon products outpaced by ‘jazzier? products to women who favored more exciting product lines 10. Decreased earning opportunities