Picards Pest and Porters Analysis. the Pontetial of a French Company Expanding Into the Uk. Essay Example

Picards Pest and Porters Analysis. the Pontetial of a French Company Expanding Into the Uk. Paper CONTENTS PAGE 1. EXECUTIVE SUMMARY 2 2. INTRODUCTION 2 2. 1 Picard overview 4 2. 2 Picard? s corporate strategy 5 2. 3 SWOT analysis 6 3. PEST ANALYSIS 6 4. PORTER? S FIVE FORCES Analysis of entering the UK Market 7 5. CONCLUSION 11 6. BIBLIOGRAPHY 12 7. APPENDICES 13 1. EXECUTIVE SUMMARY The aim of this report is to analyse Picard? s market performance as well as challenges in its operating market using the PEST analysis tool, in order to identify if the company has prospects of entering and succeeding in the UK based on Porter? s five forces model. Picard is a French frozen food retailer focusing exclusively on its own brand product lines. The company has grown to be France? s leading frozen food specialist capturing 20% market share with a network of over 800 stores, and it is also the largest specialised network of frozen food in Italy. Picard also offers a leading home delivery service from internet and telephone orders, including in other countries such as Spain, Luxemburg and Belgium. The retailer? s overall strategy is characterised as a premium proposition with a vision of convenience, quality and innovation, firmly positioning itself on the high end of the market. We will write a custom essay sample on Picards Pest and Porters Analysis. the Pontetial of a French Company Expanding Into the Uk. specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Picards Pest and Porters Analysis. the Pontetial of a French Company Expanding Into the Uk. specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Picards Pest and Porters Analysis. the Pontetial of a French Company Expanding Into the Uk. specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Picard currently aims to continue opening approximately 50 new stores per year given its successful and consistent performance, allowing the company to potentially expand further overseas. Using the PEST analysis tool it was identified that Picard? s major challenges in its operating market are the increased competition with other retailers in the convenience sector, the extent to which the products are adapted for each country, the frozen food quality perception and association to a premium offering, and the lack of a loyalty card scheme. It was identified in this research that the level of competition in the UK frozen food sector was intermediate given Picard? s differentiated premium frozen food advantage against competitors such as Iceland and Tesco, however there are several barriers to enter the market owing to powerful large supermarket chains, building a challenge to establish a brand name in the UK. In addition to this supermarkets are increasingly developing their own label range and investing further in the convenience format. On the other hand Picard? vertically integrated supply chain and close geographical location to the current distribution network is considered a significant advantage. Furthermore UK consumers are the one of the largest frozen food buyers globally and Picard has a leading home delivery channel already established in 6 countries from online and telephone orders. It is therefore concluded that the UK is an attractive proposition for Picard. 2. INTRODUCTION In these straitened economic ti mes, frozen food is a sector that is growing as consumers recognise two main factors. Firstly it offers value for money, and secondly it helps to reduce food waste. The UK frozen food market is worth around ? 5. 1 billion a year and accounts for 8% of the UK Grocery Industry (Kantar Worldpanel, 2010). Although in 2010 the market remained flat, it has shown 11. 3% value growth between 2007-2010, with indication that the market will continue to grow this year. [pic] Souce: Kantar Worldpanel, September 2010 Convenience is driving the frozen market sales globally as consumers are looking for healthy and less time-consuming meals (Seth and Randall, 2011). Private label is performing extremely well, consistently increasing its share creating a challenge for major brands in the current market. Additionally as recession kicked in the UK, the frozen food chain Iceland reported double-digit sales growth while another supermarket seeing incredible growth in the freezer aisles today is Waitrose, revealing two contrasting retailers market positioning. Chart 1: Manufacturer? s frozen market share [pic] Source: Kantar Worldpanel. Data to 12th June 2011 Chart 2: Retailer frozen market share [pic] Source: Kantar Worldpanel. Data to 12th June 2011 Combining the growth in the frozen food market, the over performance of private label and the trend towards convenience, this research will focus on this particular market sector and analyse Picard, a premium French frozen food retailer, and its potential to expand internationally into the UK. 1. Picard overview Picard is a limited company (SA) owned by Lion Capital, a private equity investment firm, and it is today the number one frozen food retailer in France, with a product range that covers over 1,100 SKUs across nine product categories, from starters to desserts and from raw ingredients to prepared meals. Picard has distinguished itself through a commitment to high quality and innovation with over 98% of its products developed in-house exclusively for the company, and sold under the Picard brand. Picard also has retail stores in Italy and offers a home delivery service from Internet shopping and telephone orders to other countries such as Luxemburg, Belgium and Spain. | | |Chart 3: Picard La part de marche de Picard de 2004 a 2009? market share in France from 2004| |to 2009 | |[pic] | |Source: www. Picard. fr | | | |Chart 4: Picard Total Store Number from 2000 to 2010 | [pic] Source: Syndigel, Kantar Consumer Panel 2. Picard? s corporate strategy Picard? focus on a single segment of the market has positioned the company as the market leader in frozen food in France, with the vision of convenience, innovation and quality at affordable prices to everyone. Following this defined marketing strategy Picard management developed their position from 12. 5% market share in 2002 to 20% in Fran ce today (Picard. fr, 2010), running approximately 800 stores and a plan to continue to expand, opening around 50 stores per year. Almost a million households buy frozen food from Picard with a wide audience ranging from large families to pensioners, students and foodies. In Italy, â€Å"Picard i Surgelati† is the largest specialised network of frozen food sales, with a portfolio of 700 SKUs tailored to its market needs, selling mostly frozen raw products, differently to the wide range of dishes in France. Picard? s main values here are proximity, quality and service, and the market is identified as growing with plans to continue opening new stores and expanding geographically (Picard. it, 2011). In 1999 the company bought the Italian subsidiary Gel 2000 to open its 28 stores in Italy, using a strategy of internationalization through acquisition. Picard overall price strategy is characterised as a premium proposition. The retailer is known to offer high quality and services to customers, firmly positioning itself on the high end of the market. Picards high-end range includes sashimi, foie gras and rooster with truffle shavings, alongside standard frozen fare like pizza and fries. The company promotes about seventy products as the selection of the month with up to 15% off with the aim to encourage customers to try new items and to reinforce the value brand image. 3. SWOT Analysis [pic] 3. PEST ANALYSIS In this section, it will be outlined the challenges Picard currently faces using the PEST analysis which is concerned with the key external environmental influences on the business, identifying and evaluating the Political, Economic, Social and Technological factors summarising the external environment in which the business operates, mostly focusing on its domestic market in France and other operating countries. Political †¢ The convenience sector in France has offered great opportunities to retailers following President Nicolas Sarkozys liberalisation of the retail sector in June 2008 (Hall, FT. om, 2008), aimed to break down barriers to entry and to remove price regulation, consequently allowing the German discounters in, such as Aldi and Lidl. This has led to increased price competition and Picard must highlight their differentiation message to all consumers to win in the convenience sector. †¢ The labour regulations are many in France, and the society emphasizes the wel l being of the workers. The French â€Å"work to live† and appreciate time to spend with their family. They have a legal system set forth by the French labour code (Code du Travail) that is built to protect the workforce rather than the enterprises (Global Politics, 2009). Nonetheless the company is affected by the civil unrest and sense of economic hopelessness by the population, and Picard is currently under pressure by the Union on wage level. Economic †¢ As noted at the latest IGD France country presentation (June 2011), France? s GDP growth is projected to pick up slowly towards an annualised pace of 2% by 2012, led by business investment and exports. The unemployment rate has peaked but is set to decline only slightly, while price pressures will remain subdued, with underlying inflation at about 1% per year. In Picard? s case the downturn time represented an opportunity and the challenge now is to keep the momentum going and through a potential economic recovery. †¢ Picard is present in countries member of the European Union which is both a free trade area and a customs union, which means trade is neither restricted nor subdued to customs duties. Its distribution network is therefore made easy to countries such as Italy, Luxemburg, Belgium and Spain where a home delivery service is available, however consumer confidence and inflation rates are contrastingly different and Picard does not adapt the price of products to reflect each country economic factors. Social †¢ The type of goods and services demanded by consumers is a function of their social conditioning and their consequent attitudes and beliefs. Consumers’ attitude towards food in Europe is constantly changing as they have become more health-conscious and concerned about sustainable production methods (Lancaster Reynolds, 2005). However it is still a barrier for Picard that only 38. 2% of adults consider frozen foods as being as good for you as fresh food, although this figure has increased from 28. 7% in 2005 (Mintel, September 2010). †¢ The demographic changes such as the aging population is discouraging for the food retailers as older people tend to eat less, have a tighter food shopping budget and are also less likely to visit shops on a regular basis. To overcome this, Picard supply products with suitable portion sizes to meet the consumer needs, in addition to providing a home delivery service not only from internet but also from telephone orders, representing a total of 2,5% of Picard’s sales from all operating countries (Picard. fr, 2011). Technological †¢ One of the key macro-environmental variables that have directly influenced the supply chain, operations and processes of grocery and food retailers is technology. The share of households with broadband internet access has doubled since 2006 (eGovernment Resource Centre, 2010). Picard currently has a website with its entire range available to be ordered and delivered within 48 hours, accounting for 20% of its total sales, however the website is only in French and Italian, limiting customers to use and understand the website to shop. †¢ Loyalty cards provide an important route through which to differentiate offers from those of the completion and this is a growing feature of the grocery retail market (IGD, 2011). In France most retailers have adopted this as a promotional strategy however Picard has not yet shown signs of a scheme. This is nowadays an important element in the wider promotional mix and is a competitive disadvantage for Picard. 4. PORTER? S FIVE FORCES – Analysis of entering the UK Market Porter’s Five Forces Model (1980) holds the purpose to analyse an industry in order to determine the level of intensity regarding the competition and attractiveness of the industry, in this case the UK. They consist of those forces close to Picard that affect its ability to serve its customers and make a profit. The nature of competitiveness of Picard in the UK industry can be viewed as a combination of the following five forces: [pic] Figure 1: Porter? s Five Forces Competitive Rivalry The intensity of competitive rivalry for Picard in the UK frozen food retail sector is medium. There is a constant battle between firms competing in the same industry in order to win customer share (IGD, 2011). There are many significant firms in the UK supermarket industry with the five most dominant in the frozen food sector being Tesco, Asda, Iceland, Morrisons and Sainsbury’s (see chart 2). This highly competitive market has fostered an accelerated level of development, resulting in a situation where Picard has to be innovative to build market share. Picard? strategy is focused on quality and innovation therefore its key competitor would be Waitrose, with an increasing number of convenience stores in the UK. According to Seth and Randall (2011), grocery trading margins in the UK have been markedly higher than in Europe currently, they are on average three times higher than in France, for example. UK consumers have been p repared to pay for the difference and the quality of the shopping experience in the best UK superstores. Thus Picard premium frozen food shows an advantage against potential strong competitors such as Iceland and Tesco where the focus is value and volume drivers. Threat of Potential New Entrants There are numerous barriers and challenges for Picard to enter the UK frozen retail industry, resulting in a high threat to enter and compete against existing players. Over the last 30 years, the grocery market has been transformed into the supermarket-dominated business, according to Ritz (2005). Most of the large chains have built their power due to operating efficiency, one-stop shopping and major marketing-mix expenditure. The industry now possesses a strong barrier for new entrants, being a significant disadvantage for Picard to establish a brand name in the UK. It makes it rather difficult for Picard to raise sufficient capital, especially being a private company, because of large fixed costs and marketing communications necessary to set up the brand? s success. Another likely disadvantage of entering the UK market is the cultural barrier. The nature of French cuisine is very different to that expected by the UK market, making it difficult for Picard to charge a premium for its frozen products, a channel that until now has sat firmly in the discount and value areas of the market. Threat of Substitutes The threat of substitutes in the specific frozen retail market is low to medium. Given the current consumer trends of increased eating at home and a desire for reduced wastage and better value for money in the UK (BFFF, 2011), Picard? s broad range of more sophisticated products fits perfectly with the trend of dinner parties in addition to providing a long shelf-life, proving an alternative to restaurants. In the food retail market, the substitutes of Picard would be convenience stores, particularly in local towns and city centres, creating a hurdle for Picard to enter and succeed in the market. Picard? s innovative store format with high quality frozen products is a differentiated approach which stands a competitive advantage against all retailers in the UK. On the other hand existing supermarket chains are increasingly developing and promoting their premium own label product range with a noteworthy value message, though it still lacks the assortment of raw products and innovative dishes sold in Picard. Bargaining Power of Suppliers The bargaining power of suppliers is low. Picard? s strategy is a vertical integration supply chain as it is currently implemented. According to Scott (2011) this offers great bargaining power over suppliers, consistent quality and reduced risk of supply disruption. However, it can also reduce operational flexibility and limit access to the best suppliers. The company currently uses over 200 suppliers of which approximately 70% are French to manufacture its own label range which represents 98% of products sold in stores. The geographical location and continuing service of current suppliers is therefore a significant advantage for Picard? expansion in the UK. Suppliers are still expected to comply with strict quality standards and to meet increased demand as required, consequently meeting greater economies of scale and gaining greater margins, being able to offer more competitive prices to consumers. Bargaining Power of Customers The bargaining power of buyers is low to medium. Customer power also acts to force prices down (Porter, 1980). If chips are too expensive in Picard, buyers will exercise their power and m ove to Iceland. However Picard? premium range is unseen in any other retailers in the UK, so customers will not be able to find a frozen Japanese dinner party set of quality frozen food anywhere else for example. In customising its service with better and innovative choices, Picard has the advantage to control and retain a customer base. In the UK there is a growing tendency of shoppers to use a wider repertoire of formats to support their grocery shopping needs, with convenience outperforming the market (IGD, 2011). This is an advantage to Picard as their target is urban areas mostly city centres within walking reach. On the other hand Picard is unable to compete with larger format stores in the UK where shoppers can find a wide range of products from chilled to non-food items, possibly satisfying their shopping needs in one go. Online is another channel to meet different aspects of shopper demand for more convenient shopping solution. IGD forecast the online channel in the UK to grow by 14. 4% from 2010 to 2015, becoming 5. 2% of the total grocery market. Picard would appear to have an advantage over the UK market as online shopping already accounts for 20% of its total sales in current operating countries. pic] 5. CONCLUSION In the light of the above analysis, it can be concluded that Picard? s lean operations, successful business model and differentiated approach allows potential for the company to expand into the UK. The â€Å"hit-and-run† gastronomy concept would re-invigorated the UK frozen food market and become a strong competitor in the convenience sector, but to succeed Picard mus t spend heavily on opening stores focused in urban areas and on advertising to gain levels of brand awareness. 6. BIBLIOGRAPHY 1. BFFF (2011, 20 April). British Frozen Food Federation. Retail Frozen Food Statistics Year on Year to 20 March 2011 2. eGovernment Resource Centre (2010, 21 December). Internet usage in 2010 Households and Individuals 3. Hall, B. (2008, 23 January). Sarkozy backs liberalisation plan. Financial Times, FT. com 4. IGD (2011); The Food and Grocery Industry. Unit 1 5. IGD (June 2011). France Country Presentation. IGD Retail Analysis 6. Kantar Worldpannel (2010, September). Retail Frozen Market till roll 7. Lancaster, G. Reynolds, P. (2005). Management of Marketing. Butterworth-Heinemann Publication. Oxford, UK. 8. Marian, P. (2010, 27 July). Analysis: Will Picards unique proposition translate abroad? Just-food. com 9. Mintel (2010). Chilled and Frozen ready meals UK- May 2010 10. Picard. it (2011) Available at: http://www. picard. fr/ [Accessed 4th – 10th July] 11. Picartd. fr (2011) Available at: http://www. picard. it/picard/index. php [Accessed 4th – 11th July] 12. Porter, M. E. (1980) Competitive Strategy. Free Press. New York 13. Ritz (2005) Store wars, Business Review, Vol. 11, April, pp. 22-23 14. Scott, C. , Lundgren, H. Thompson, P. (2011) Guide to Supply Chain Management. Springer 15. Seth, A. and Randall, G. (2011). The grocers: the rise and rise of the supermarket chains. 3rd edition. London, UK 7. APPENDICES APPENDIX 1 Picard: |Criteria |Characteristics | |Home Country |France | |Total Sales (â‚ ¬mn), and year-on-year growth (%) |â‚ ¬1,285m, 4. % | |Total operating profit (â‚ ¬mn), and year-on-year growth (%) |N/A* | |Number of countries in which present |5 | |Home market as a % of total sales |95% | |Price positioning (1-5, where 1=value and 5=premium) |3-4 | |Quality positioning (1-5, where 1=low and 5=high) |4-5 | |Main price/promotion strategy (EDLP, Hi-Lo, combination) |Premium | |Non-food as a % of total sales |0% | |Number of different store formats |1 | * Data not published APPENDIX 2 Photographs Picard? s product examples: [pic][pic][pic] [pic] [pic][pic] [pic] [pic] [pic] Store: [pic]

documentary Super-Size Me

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Research the writings of Robert Skidelsky and Paul Krugman and summarise their explanations and remedies for the recession, drawing comparisons as appropriate, to Keynesian theory about recession - Essay Example By avoiding a fall in aggregate demand, the government avoids excessive and wasteful supply, controls unemployment and shields the public from unprecedented fluxes in prices of consumer goods. The free market masterly of consumer behaviour and its application in determining the performance of the economy is an important element of the private sector. Reaction of the market to unwanted effects can create general glut or recession by avoiding the burden, but the government chips in to rescue the national economy by jump-starting the appropriate response as a public protection outfit. In Keynesian theory, government spending and involvement in the economic equation are therefore incorporated into the classical explanation of how the economy responds to the free market forces of demand and supply (Tucker, 2008, p221). Recession can therefore be avoided by government intervention through fiscal and monetary policies according to the theory. Robert Skidelsky position observed in several pieces of his work demonstrates the common knowledge that private and public sectors are equally important in the economy (Skidelsky, 2010, p1). The author points at the importance of harmonising government intervention with recovery of the private sector towards deficit reduction. It is evident that sustained recovery can only be realized through budget regulation, employment growth and economic growth on government input. Government policies mentioned in Keynesian theory are also revisited by the author in explaining how a well coordinated plan to tackle recession is developed. In Kennedy and Skidelsky (2010, p1) there is a direct link between the need to mobilize government involvement in preventing total spending to sustain recovery from the recent recession. To consolidate recovery from recession, there must be a balance between public and private spending through involvement of the government. In the reduced spending of a recessed economy, the government can induce

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Analysis Of Britannia Industries Limited Marketing Essay

Analysis Of Britannia Industries Limited Marketing Essay An Analysis On The External Factors Affecting The Company And The Role And Importance Of Stakeholders Britannia Industries Limited (BIL), formerly known as Britannia, was established in the year 1892. Britannias business was flourishing. In 1910, Britannia mechanized its operations, and in 1921, it became the first company east of the Suez Canal to use gas ovens. In 1979 it was renamed to Britannia Industries Limited, with an Indian shareholding of more than 60%. After few years, in 1997, Britannia made its debut in the dairy products market. Britannia is not only known for the quality of its products but also for the innovative approach towards them and the marketing. In 2002, Britannias New Business Division formed a joint venture with Fonterra, the worlds second largest Dairy Company, and Britannia New Zealand Foods Pvt. Ltd. was born. 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Macro External Environment Analysis Macro external environment here includes the factors such as issues related to politics, economical reforms and achievements, social behaviour, technological enhancements and inventions, environmental changes and environmental concerns and legislation and legislative changes. All these factors bear a significant effect on any industry and business. A business has take into consideration all such effects and then formulate its strategies and policies to work along with them and prosper. PESTEL analysis tool helps in determining the effect of all such factors on an industry and businesses. With the help of PESTEL analysis we will be seeing the affects of such factors on Indian Bakery and Dairy Industry. PESTEL analysis is a technique for identifying and listing the political, economic, social, technological, environmental and legal factors in the general environment most relevant to an organisation. (Boddy, D (2005). Management An Intoduction. 3rd ed. UK: Pearson Education. 88.) Type of Factors Effecting Factors Political Economical Social Technological Environmental Exemption on Customs on Sugar Raw Material Import Shortage of Milk Need for Healthy Eating Habits Cloning of Livestock Change in the Climatic Conditions VAT on Biscuits Rise in Sugar Production and Duty Free Sugar Imports Problems with Cloned Livestock New Age Packaging Removal of Import Duty on Dairy Products Globalization Incentives to Build Cold Storage Facilities Requirement for Logistics Political Exemption on Customs Duty on Sugar Raw Material Import Due to the shortage in the production of sugar the deadline for the exemption on customs duty on raw sugar imports has been extended by the government to April 1, 2011 (Dey, A Jha, Dilip K (2010) Duty-free sugar imports extended till April 2011, Business Standard). Since sugar is a major input in the bakery, the price of sugar highly influences the price of inputs of the bakery industry. Exemption on customs duty will help in purchasing sugar at lower cost, which in turn will control the cost of production. VAT on Biscuits The VAT of 12.5% on Biscuits, being the only processed food item to attract such high VAT rates, will affect the pricing of the product (Bhushan, R (2009) Biscuit prices to rise by 10%, The Economic Times). Price of the biscuits might need to be increased due to the high VAT rates which may result in switch of brands due to the highly competitive market. Removal of Import Duty on Dairy Products The whole-sale price based inflation indicates that the milk prices have moved up by 14.73% over the last year. Worried about the rising prices government announced the removal of duty on Skimmed Milk Powder (SMP) and other dairy products (Govt removes import duty on dairy products (2010), Business Standard). The imports at cheaper rate would help in reduce the cost factor for dairy products. Incentives to Build Cold Storage Facilities Wastage of food items due to lack of cold storage facilities lead to a loss of Rs. 500 billion every year. The government announces schemes and incentives to attract investments in cold storage warehousing (Union Budget 2010: Cold-storage incentives to attract fresh funds (2010), The Economic Times). Increase in the number of cold storage facilities would help in preserving products better and reduce the wastage cost. Economical Shortage of Milk Even though the milk production has risen by 4.6% compound annual average growth rate, it still cannot match up with the increasing demand. The demand for milk has been growing at a faster rate than the growth rate of milk production resulting in the shortage of milk supply (Milk output would stagnate (2010) The Economic Times).   India cannot meet its expected demand if the demand and supply rise at the same rate. For the same the reason, the milk prices are on a constant rise. Price of milk increased by 12.6% to 13.6% (Goyal, K (2010) Indias Food-Price Inflation Holds Near 11-Year High- Business Week). This can cause an increase in the input cost for the dairy products and which in turn can lead to hike in price or lower profit margins. If the company increases the price of its products, it may affect the sales as it might lose on consumers. Rise in Sugar Production and Duty Free Sugar Imports The total sugar production in the first six months ending September 2010 is expected to be 22% more than the output in the unchanged phase last season, the total production expected is at 16.7 million (Press Trust India (PTI) (2010) Sugar output rises 22% in first half of 2009-10, Business Standard). Due to the shortage in the production of sugar the deadline for the exemption on customs duty on raw sugar imports has been extended by the government to April 1, 2011 (Dey, A Jha, Dilip K (2010) Duty-free sugar imports extended till April 2011, Business Standard). The increase in sugar production and the duty exemption on raw sugar can help in purchasing sugar at lower prices and this in turn can help in producing goods at lower prices. Globalization Globalization a universal phenomenon is affecting each and every industry. The world is coming closer, the communication gap is closing and the businesses are going global. This can serve as an opportunity to expand the business to a global level but on the other hand there is a threat of new entrants from international market. Requirements for Logistics Logistics in India suffer due to the poor infrastructure and other limitations. There is a high demand for sophisticated third party logistics so the domestic logistics service providers are trying to improve their service. International participation is also expected in the logistics industry (Pandey, S Basu, A (2010) Logistics cos ramp up supply chain to meet rising demand, The Economic Times). Sophiscticated logistics system will help in proper supply chain management and on time delivery of goods, which help in maintaining the shelf life of goods on meeting the demand on time. Social Need for Healthy Eating Habits Studies say that Indians are more prone to Coronary Artery Disease (CAD), which is the major independent risk factor causing Cardiovascular diseases, due to the smaller calibred arteries found in Indians (Isalkar, U (2009) Indians more prone to heart disease, The Times of India). This suggests that Indians should move towards more healthy food and diet. This could be a new area to explore for Britannia with its new health associated products like Nuti-Choice biscuits and Actimind flavoured milk. Problems with Cloned Livestock Cloned animals are supposed to be suffering from large-offspring syndrome. The mother cows face a problem in giving birth to the cloned animals as they are larger than normal. Also these cloned animals suffer from health issues (Gogoi, P (2007) The case against cloning, BusinessWeek). It is morally wrong to clone animals as they cause problems to the mother during the birth and moreover the cloned livestock suffer from health issues which might make unsafe to consume the produce from them. Technological Cloning of Livestock India, a late entrant in cloning research, is now moving with a great pace in cloning technology. Hand guided cloning technique, a technique very different from the conservative cloning practice has been a successful venture (Mahalakshmi, BV Chowdhary, S (2009) Cloning Glory, The Financial Express). New Age Packaging The new packaging systems help in protecting food from micro-organisms by creating shelter layer. It uses new technologies like oxygen scavenging function, atmosphere control, biodegrability etc. and is low cost (Han, J Packaging Innovations, Bakers Journal). The packaging technology helps in preserving food for longer by protecting them from micro-organisms with the help of new technologies, thus resulting in longer shelf life of the food. The advantage of low cost packing and longer shelf life could be very beneficial for the company in increasing its profit margin. Environmental Change in the Climatic Conditions Climate plays an important role in the agriculture process. The change in the rainfall pattern has been a matter of concern now in India. The agriculture sector in areas which are monsoon dependent suffered badly due to the change in the rainfall pattern. The sector suffered a huge loss in terms of total output (Bhosale, J (2009) Farmers worried over climate disturbances, The Economic Times). The loss in crop will affect the input supply and this might delay or cause problems in the production. So the industry might not be able to meet the demands resulting in the loss of customers. Legal Raising the Norms for the Probiotic Food There is a need for setting the standards for probiotic food. Clinical tests should be conducted on the probiotic foods before they could reach the market for sale. The Indian Council of Medical and Research has submitted the proposal for the same to the government (Das, S (2009) Probiotic food likely to come under clinical trial ambit, The Financial Express).  Strict norms will help in raising the quality standards but on the other hand the cost and time of production might subsequently increase. Micro External Environment Analysis Factors that influence the micro external environment are Competitor Rivalry, Threat of New Entrants, Threat of Substitutes, Buyers Power and Suppliers Power. These factors play a vital role in determining the current situation of the business and to plan strategies accordingly. With the help Porters Five Forces we will be analysing these factors and their immediate effect on the company. Five forces analysis is a technique for identifying and listing those aspects of the five forces most relevant to the profitability of an organisation at that time. (Boddy, D (2005). Management An Intoduction. 3rd ed. UK: Pearson Education. 83.) Competitor Rivalry: BIL has a market share of 38% and has been growing at 27%, compared to the industry growth rate of 20% (Saxena, R (2007) Battle-scarred Britannia on expansion spree, Business Standard) and has many competitors based on the nature of product. Parle and ITC (Sunfeast) pose a great competition to BIL (Biscuit Industry: India (2010), Market Research India). BIL earning major of its income from the biscuits (Britannia Annual Report 2007-08 (2008)), and Parle and ITC are the other major players in biscuit market. BIL is also into the production of dairy products, where the two major players in market are Amul and Nestle. Amul is the leader in the dairy industry. There is also a high level of competition from the unorganised baking sector. Overall rivalry is high. Threat of New Entrants: The entry on a small scale dairy industry and in the unorganised baking sector is easy. But on the other hand to enter the large scale dairy industry and organised baking sector a huge amount of investment is required in terms acquiring assets and to establish supply and distribution chains. Government regulations pertaining to food norms and others may also seem to be unattractive. Looking at the latest trends, the bakery industry is expected to earn huge revenues which might attract new entrants (Vijay, N (2008) Indian Bakery sector foresees high growth and increasing interest in product offering, FnBNews.com). So the threat of new entrants is moderate. Threat of Substitutes: Savoury snacks, crisps, cereals, fruits and other fast food can be substituted for biscuits. Dairy products are dubious to be replacing with other products as they key ingredients of majority of peoples diet. So the threat is a very moderate threat of substitutes. Buyers Power: The buyers of these products could be a retailer or the consumer. Both the dairy and bakery industry are price sensitive, so a little increase in price might lead the consumer to shift other brand or product. So the buyers power is calculated to be very strong. Suppliers Power: The major supplies for a bakery industry include wheat, sugar and other agriculture products. And the major supplies for dairy products are milk. Its difficult to bargain with the suppliers of the above mentioned inputs as the price of these inputs is majorly influenced by the production of these inputs. The prices tend to be high as the demand for these products is rising at much faster rate than supply. The secondary supplies include the packaging material. The secondary supplies can be easily substituted with the low-cost ones to save on cost. Overall the suppliers power is assessed to be moderate. Conclusion of Five Forces Analysis: There is an existence of major players in the market with a moderate level of threat of new entrants and substitutes. The suppliers power is moderate but the buyers power is measured to be strong. So the rivalry is suggested to be high. Stakeholders and Corporate Social Responsibilities (CSR) Freedman (1984) defines a stakeholder as any individual or group who can affect, or is affected by, the achievement of the organisations objectives. Further in addition to that, Clarkson (1995), stated that the government and the other communities that effect the working of the business and the market also form as a part of stakeholders. Stakeholders, except the employees, have a high power over the strategic change ideas (Hayes, J (2007). The Theory and Practice of Change Management. 2nd ed. UK: Palgrave Macmillan. 153). Internal Stakeholders The internal stakeholders are the ones associated with the company internally. For BIL its internal stakeholders would be: The Shareholders The Board of Directors, and The Employees Currently, nearly 51% of shares are held by Corporate Bodies and the rest 49% is held by the public (Statement showing shareholding pattern (2009), Britannia Industries Limited). The board consists of 11 members (Company Overview, Britannia Industries Limited) and employees nearly 2000 people (Britannia Industries Ltd. Overview, MarketLine). External Stakeholders The external stakeholders are the ones who are not immediately associated with company but influence the decision making of the company. To BIL the external stakeholders are as follows: Customers Suppliers Contractors Government Regulatory Agenices (like Food Safety and Standards Authority of India, etc.), and Society Britannia being the leader in the baker industry of India has a huge amount of customers to cater. Britannia has to keep up the tastes and quality preferences of its customers. The government plays an important in influencing the market by creating and changing the policies. BIL has to adhere to the rules and regulations formulated by the regulatory agencies. The suppliers and contractors form an important part of a business. Britannia completely relies on its suppliers and contractors for its raw materials. Corporate Social Responsibility (CSR) For years corporate entities followed the practice of providing goods and services and maximizing wealth. But the trends have changed over the period of years. The companies are now expected to be more socially responsible. The company now has to be responsible to the stakeholders, society and environment. They are expected to pay back to the environment and society for all the affects that are caused due to its operations (Idowu, S Filho, W (2009) Global Practices of Corporate Social Responsibility. Berlin: Springer. 1-2). BIL believes in working with the society and the culture. It gives a premier importance to the nation and its policies. It believes in being a good corporate citizen by not just adhering to the rules and regulations but also by helping the community to improve the quality of life. BIL involves itself in initiating and providing support to community health and family welfare, water management, vocational training, educating people and encouraging the application of modern techniques and technologies. BIL believes in ethical behaviour (Code of Conduct, Britannia Industries Limited). BIL is taking steps toward conserving the environment by employing new process and upgrading the technology. It is trying to reduce its carbon footprints by recycling the waste heat. It has now filed for carbon reduction benefits (Britannia Annual Report 2007-08 (2008)). BIL has taken steps towards helping the society by joining the nutrition program with Global Alliance for Improved Nutrition (GAIN) and the Nandi Foundation. Along with these organisations BIL will is providing mid-day meals in schools and provide nutrition to the deprived (Britannia Annual Report 2007-08 (2008)).

Brian Skyrms? Evolution of the Social Contract Essay -- essays researc

  Ã‚  Ã‚  Ã‚  Ã‚  Skyrms’ book, Evolution of the Social Contract, offers a compelling explanation as to why individuals, when placed with one-shot prisoner’s dilemmas, will often cooperate, or choose the equilibrium that will benefit both parties equally. He uses examples to outline how individuals of certain environments frequently engage in activities that benefit the group at their own personal expense. Using both game theory and decision theory, Skyrms explores problems with the social contract when it is applied to evolutionary dynamics. In the chapters of the book, he offers new insights into concepts such as sex and justice, commitment, and mutual aid.   Ã‚  Ã‚  Ã‚  Ã‚  Skyrms’ writing goes beyond traditional game theory, and exposes some weaknesses in its application. He rejects the theory’s traditional interpretation of rational actors and actions by discovering some glaring inconsistencies. Skyrms conducted a number of experiments using one-shot prisoners’ dilemmas. The ultimatum the author introduces in the first chapter serves as a simple example of a one-shot prisoners’ dilemma. In the initial form of the example, Skyrms proposes there is a cake that must be divided between two individuals. Each individual is looking to maximize his or her utility, and therefore, wants as much of the cake as possible. However, there is a third party, or what Skryms labels a â€Å"referee.† The two individuals must determine the percentage or portion of the cake they want and summit these requests to the referee. The percentages must not exceed 100%, or the referee will consume all the cake. It is therefore not in either parties’ best interest to request a significantly large portion. Additionally, if the total of the two requests is below 100% of the cake, the referee will take the left-over portion. The two parties will then aim to maximize their portion, however the best claim that an individual submits is dependent upon the other party’s claim. There are two interacting optimization problems (Skyrms 3, 4).   Ã‚  Ã‚  Ã‚  Ã‚  An answer to the puzzle will be found in solutions that are in equilibrium. An equilibrium in informed rational self-interest, or a Nash equilibrium, is any solution to the problem whereby neither party could do better by altering its position. However, this is a general and broad definition. Further stipu... ...as formed certain signals and understandings that are critical to our prospects for cooperation and negotiation today (Skyrms 80-104).   Ã‚  Ã‚  Ã‚  Ã‚  Skyrms’ explorations in Evolution of the Social Contract are based on the premise that human beings are, in fact, inclined to behave justly. His writings do not aim to prove that individuals act justly all the time; however they assert that the disposition exists in societies. Many would take issue with Skyrms’ assertion. Firstly, justice has many interpretations. According to some, equal division of a resource is not always what justice requires. Skyrms fails to address situations where an individual may have worked harder than another for a resource, and invested more time in it. Perhaps one individual would obtain more utility from a given amount of a resource than another would. Libertarians would demand property rights, and argue that one individual might better utilize the resource than the other, creating more benefit for society. Skyrms also fails to give specific interpretations of justice and does not offer any thoughts on what ideas of jus tice, if any, are cultural universals.   Ã‚  Ã‚  Ã‚  Ã‚  

Kantian ethics Essay

Kant argued for the use of a normative ethical theory based around the idea that all men have a similar common goal; his theory was absolute (meaning one must follow a common set of rules no matter the scenario) and deontological (focused on actions themselves rather than the outcome of said actions). Kant advised the use of this theory despite it being a priori, meaning he had no observations or experience of the theory in practice. Kant believed that all men have duties which they ought to fulfil, not to gain a desired outcome or avoid a less desirable outcome, but simply because it is their duty. For example, if we can assume it is always wrong to kill people, it would be considered immoral to kill someone even if that action saved the lives of hundreds of people. Similarly, if you consider a foetus to be ‘alive’ then it would be immoral to terminate it no matter the affect it would have on the mother’s physical or mental health. Nearly everyone would find fault in the former, notably fewer for the latter, yet I would hope that the majority would still disagree. David Gauthier suggested that as morality is an agreed concept, designed so that people cannot run amok doing as they please with no consideration for others, an absolutist theory cannot function as rules are subject to interpretation. Let us briefly consider the foetus example once more, if the rule states that it is immoral to take a life, what should be considered a life? Does life start at conception or at birth, or maybe somewhere in between. For this reason, though an absolute theory should be applied to every situation, the rules do not necessarily mean the same thing for every single person. Kant said that in order to create a duty one had to pass it through three tests, the first of which being the law of nature. This law states that in order for something to become a duty it must be capable of being universalised, so everyone must be able to follow said duty ad infinitum. So, for example: ‘jump the queue’ could not become a duty as if everyone jumped the queue there would be no queue to jump. Though this seems sensible, it is possible that immoral acts could be universalised. For example ‘lie to people’ could be universalised even though it is a traditionally immoral act. Not only that but the rule could easily be manipulated by phrasing things differently, for instance ‘everyone called Hector Benjamin Stellyes can jump the queue’ could be universalised as it would most likely only apply to me. To counteract these faults Kant put in place a second law, the law of wills. This stated that for something to become a duty it must be desirable for the population. This rule however, also has faults. In order for a rule to satisfy an entire population (and if this theory was applied worldwide that would be nearly 7.5 billion at the time of writing) it would have to be extremely broad, leaving it open to being interpreted in drastically different ways. If the rule said that one simply had to please the majority, what happens to those who disagree? As all duties are absolute and universal, one would have to do something they disagreed with in order to be moral citizens. Kant attempts to rebuttal this with his argument that all humans still have free will, even though they should follow their duty they don’t have to; humans remain autonomous. However, some would suggest that though humans are nearly always capable of independent thought, it is human nature to be moral. A psychological study by Yale in 2013 on a number of babies that were as of yet unaffected by modern culture (they couldn’t read, speak etc.) making them almost purely instinctual showed that it is human nature to be ‘good’. If society tells you that there are a set list of moral acts, most people will conform to these acts to the best of their ability. So far, we have a set of rules and how this set of rules are constructed, so now I ask: why should anyone follow this philosophy? If we should not consider consequences when doing our duty, what reason do we have to do so? Kant believed there to be two separate reasons to perform any action: the hypothetical imperative and the categorical imperative.