Research Korner

Market Growth of Pepsi Co.

BCG Growth Matrix   Introduction Business organizations are subject to different aspects which affect the function and operations of the firm as a whole. In this regard, there are specific ways or techniques which can be noted in order to emerge and continue to be competitive in the market environment. The marketing context have been noted as the key factor to achieve company objectives and the marketing aspect rests on customer-orientation, market focus and coordinated marketing as well as profitability. In profit making business, the firm obviously has to do their best to achieve the level of customer satisfaction as a manner of staying ahead of the competitive position and making a profit. In traditional ways, marketing has been used by different firms to be able to increase the capabilities of the company in the market. Its concept can be considered as one of the most essential element underpinning the success of business ( 1994). In the competitive market environment, connecting with the target market is getting more complicated for different industries (2003).  Accordingly, it takes an effective management and approaches to win over the skeptical target market which suggest that it is the moment to forget everything that has been learned regarding marketing and branding ( 2003). It is mentioned that it is the target market that is in control of improving the power of the products or brands. In this regard, it is not the company who brand their target market, but the clients are the one which brands the company and their products and services offered. Having been able to realize the importance of products and brand names, more and more organisation are trying to have a strong product portfolio to ensure that their products will survive in the stiff competition in the globalize economy, brand extension, emerging markets and many other aspects which affects the performance of an organisation (1999). Accordingly, scholars in marketing, corporate communications and public relations are in great concern when it comes to having an identity that will make them standout in the market place (1998).   Some industry believed that product branding has an intrinsic value in strengthening the identity of an organisation because it does not only convey who or what the company is, but it also includes the very based of all strategic communication ( 2004). Furthermore, analyzing the products of a specific company can also be considered as a way of announcing the identity of the company ( 1997). The main goal of this report is to provide an in-depth analysis about the products of PepsiCo. In addition, these will also analyse the marketing strategies used by the company to compete with each other and aims on discussing if customer services is a most important part which let the company setting on the leading post in the market segment. In order to analyse the company, the use of BCG matrix will be considered.   Overview of the Company PepsiCo Inc. is one of the world’s leading food and Beverage Company.  PepsiCo started on 1965, during that time Pepsi-Cola’s CEO and President  approached , Frito-Lays Chairman and CEO with a proposition of merging the two company in providing food and beverage with complementary products that would give a lesser opportunity for cost sharing, joint merchandising and knowledge and skill transfer. Its expertise is to create different food and beverage products that would soothe the taste of its consumer.  The new company was founded with annual revenues of $510 million and such well-known brands as Pepsi-Cola, Mountain Dew, Fritos, Lay’s, Chee-tos, Ruffles, and Rold Gold. PepsiCo’s roots can be traced to 1898, when Caleb Bradham, a pharmacist in New Bern, North Carolina, created the formula for a carbonated beverage he named Pepsi-Cola. The reinvention of different products, the introduction of new product, expansion into international markets and clever advertising campaigns are the primary focus of PepsiCo Inc.  PepsiCo’s considerable marketing expertise could be leveraged in the marketing of fried chicken, pizza, and Mexican fast foods.   In 2001, PepsiCo was the second-largest food products company in the United States (behind Kraft Foods) and was diversified into salty and sweet snacks, soft drinks, orange juice, bottled water, ready-to-drink teas and coffees, nutraceutical and isotonic beverages, hot and ready-to-eat breakfast cereals, grain-based products, and breakfast condiments. Many PepsiCo brands held number one or number two positions in their respective food and beverage categories (PepsiCo Inc. 2008). PepsiCo Inc. became the first foreign product sold in the Soviet Union in 1972, expanded into China in 1982, and by 1984 sold products in nearly 150 countries and territories. The company enters the Soviet Union market by having trade relations with the USSR, giving PepsiCo exclusive rights to import Stolichnaya Russian vodka in the US while letting the products of PepsiCo be promoted in the nation. On the other hand, the company has entered the Chinese market by investing in the country and having a business operation in the nation. New brands launched under Pearson’s tenure as president and CEO included Pepsi  Light in 1975, Grandma’s cookies in 1980, Tostitos in 1981, Pepsi Free in 1982, and Slice in 1984. In addition, Pearson crafted a corporate strategy that called for PepsiCo’s diversification into quick service restaurants. PepsiCo Inc. had diversified beyond snack foods and soft drinks with the acquisitions of North American Van Lines in 1968 and Wilson Sporting Goods in 1970, but the company’s acquisition of Pizza Hut in 1977 significantly shaped the strategic direction of PepsiCo for the next years to come.  The acquisition of different companies for the expansion of PepsiCo was believed by  and that whereas soft drinks and snack foods were complementary businesses offering skills transfer and cost sharing benefits, quick-service restaurants offered a captive market for Pepsi-Cola’s fountain drinks will positioned the company in an additional high-growth industry. During the late 1990s, PepsiCo acquired Cracker Jack from Borden Foods, Tropicana from Seagram Company Ltd., and Smith’s Snack food Company in Australia from United Biscuits Holdings. The company also introduced Doritos 3D’s tortilla chips and Pepsi One during the 1990s. In 2000, PepsiCo launched its Fruit Works line of fruit drinks and Sierra Mist lemon-lime soda, and Aquafina became the number one brand of bottled water sold in the United States. South Beach Beverage Company, the maker of SoBe teas and alternative beverages; Tasali Snack Foods, the leader in the Saudi Arabian salty snack market; and the Quaker Oats Company were  acquired by PepsiCo in 2001.   BCG Growth Matrix Analysis             In the society of consumption, individuals are consciously finding products and status by the self-image and lifestyle. It is said that products brand image is something which is complicated to concretize as it only deals with impression of the target market. As mentioned, each and every organisation in the marketplace is trying to establish strong product portfolio to compete with their rivals and sustain their competitive position and advantage. Brands are known as the names used to differentiate the company products or services from the competitors ( 1997), like the brand of PepsiCo, Coca Cola and other famous and competitive brands. In addition, product brand is a corporate identity which provides intangible benefits aside from the usage by the products which makes it difficult for other company to imitate. This is the important role that the product image plays in marketing competition. Furthermore, many organisations recognised their product portfolio as one of the most precious assets which enable them to sustain their competitive advantage among their rival ( 1991). Hence, many companies try to establish brand equity for their own brand along with their efforts in using effective approach to maintain such equity. As mentioned above, this study aims on analyzing the products and services offered by PepsiCo. The BCG matrix approach is based on the product life cycle concepts which can be utilized to identify what priorities should be given in the product portfolio of a business level. To make sure that the company is creating long-term value, an industry should have a portfolio of products which contains both high-growth products in need of cash inputs as well as low-growth products which establishes a lot of profit or cash. BCG matrix relies on 2 dimensions: market growth and market share. The basic notion behind it is that the higher the market share of a specific product has or the faster the product’s marketability grows, the better it is for the industry.  Placing appropriate products in the BCG matrix, results in 4 categories, in the business portfolio of an industry. The four categories include the Stars, cash cows, dogs, question marks. Each of these categories has their own measurement. First, the stars are considered as those products which have high market growth and market share. The stars products use large amounts of cash and considered to have competitive position in the business which results in generating more profit. The stars products are frequently noted as rough in balance on net cash flow. But if needed, any attempt should be created to hold market share to avoid becoming cash cow.  The second category is Cash cows which are commonly considered to have low growth with high market share. Herein, the profits and generation of cash are considered high but because of the low market growth, the investment required should be low. It is said that cash cows should keep the profit high and is noted to be the foundation of the company. The next category is Dogs which is low market growth and share. It is noted that an industry should avoid or reduce the number of dog’s products in the industry. In addition, the company is also recommended to beware of the expensive turn around plans. The last category is question markets which is high growth with low market share. Question marks products are considered to be the worst cash features of all, because high demands make it to have low returns due to low market share. Herein, if the company would not be able to solve the issue of question market products, these may be able to absorb great amount of cash and may result from stopping dogs to grow.         Accordingly, BCG matrix approach can help the business companies to understand a frequently made approach mistake. Boston Consulting Group Matrix is a tool used for product portfolio planning ( 2005). This tool has two controlling elements which includes market growth relative market share. In this manner, the current situation PepsiCo in the standpoint of the market environment will be analysed using this marketing tool. This analysis will give emphasis on the product and service portfolio of PepsiCo.  Thus, the product and services that the company offers will be analyzed using the following figure.  It can be said that PepsiCo products and business portfolio can be divided in four major products or services; each service operates in accordance with its functions along with the products and services in different areas especially made as a distinction of each division. The PepsiCo analysis will be based in assessment of the services offered by the company.   Table 1: BOSTON CONSULTING GROUP MATRIX               Table 1 shows the product portfolio analysis of the PepsiCo using BCG Matrix analysis.  Accordingly, PepsiCo is consisted of 5 major brands: Gatorade, Quaker, Pepsi products, Frito-Lay and Tropicana. As mentioned the assessment has been based on each products provided by the company.  With this, it shows that the products that belong to the question mark are Gatorade and also Tropicana. Because of the emergence of different healthy drinks and beverages in the global market, the market share of Tropicana and Gatorade are being threatened. Although these brands have already established in the marketplace, the company still needs to have an effective marketing approach to increase the sale of these brands or brands. Accordingly, question mark category means that these products have a low share of a possible high growth market and may become a star product because of the positive response of the customers.             As can be seen in the figure, the services that fall in star category are is the pay-is Pepsi brands. The star category shows the products with a high share of a gradual growth of market and these products have a tendency to produce high amount of profits. The next category that can be seen in the figure is the cash cows.  Herein, the products are considered to have a high share of a slow growth market ( 2005).  With regards to the PepsiCo, services that can be considered in the cash cows are the Quaker. Lastly, it can be seen that Tropicana, Gatorade and Frito-Lay are products that can be considered in the dogs’ category. It can be said that PepsiCo has been able to market their products and increase their market share and market growth by using different strategies and approaches. The company enhances the market share of their brands by considering different marketing entry modes.  Through collaborative venture PepsiCo has been able to se merger and acquisition along with joint venture approach.  Furthermore, franchising is another method that PepsiCo used to enhance the market share of the brands of the company (1990).  This model used by  (1990) has been utilized by PepsiCo in order to expand its business portfolio in other regions in the world. In this manner, the management of PepsiCo considers franchising an existing company in an international market while applying the methods of collaborative venture. In order to make this foreign operational mode combination a success, PepsiCo consider the most suitable and effective expansion strategy. It can be said that the spread of PepsiCo is truly global. The company has hundreds of brands, which can be found in almost 200 countries and territories around the world. Market concentration is the result of interaction between the market size and a few vital factors. It is said that the industry of Carbonated Soft Drinks (CSD) is highly concentrated. There are three major industries that compete in this business (PepsiCo, Coca-Cola and Cadbury Schweppes). These industries are accounted for more than 90% if market share per case volume in 1998. Exhibit 1:  Growth of Market share by Case Volume                                                                                                         1990                       1995                     1998                  2000E   Coca Cola Company                41.1%                     42.3%                 44.5%                 44.1% PepsiCo, Inc                              32.4%                     30.9%                 31.4%                 31.4% Cadbury Schweppes (*)            3.2%                      15.1%                 14.3%                 14.7% Others                                       23.3%                      11.7%                   9.8%                   9.8%               This shows that PepsiCo have a high market concentration and has a strong market share. In this manner, the strategies used PepsiCo in its brands is a good expansion strategy so as to maintain its position in the global market. PepsiCo is a global company and one of its strategies is the use of diversification approach. Aside from this approach, the BCG matrix results for PepsiCo is also considered to be inspired by the branding strategy of the company for enhancing the market share and growth of their brands like Frito-lay, Pepsi, Quaker, Tropicana and Gatorade.     Conclusion The context of product analysis is said to be useful in terms of comprehending and analyzing the competitive position of an organisation. The brand or the products of the company remains an important part of marketing approach as it is mostly recognised by their target market.. It can be said that the heavy consideration on marketing strategy and analysis in products of specific company can create the impression that the product’s market share and growth can be enhanced. In this analysis, it shows that through BCG analysis the strengths and effectiveness of the brands of PepsiCo has been discussed. Much has been said about the importance of having a strong and effective product image. Based on this analysis, it can be said that a strong and effective products and marketing approach is something that can influence the choice of the target market. Companies like PepsiCo perceived that their brand and products have some personalities and characteristics in which clients and customers use as a channel for expressing themselves or to experience the predicted emotional benefits that differentiate a specific brand from another. The considered product characteristics evolved through the different approaches used by the company and it is the one used for identifying which products should be put in the stars, dogs, cash cows or question marks categories in the BCG matrix. Nevertheless, studies on brand personality or characteristics and the representational utilization of brands has been confined to how target markets and audiences express themselves by purchasing the brands and has not given  consideration on how the company perceived their brand characteristics (Keller, 1998). Accordingly, there are various management approaches that the company may use to have a strong and effective brand image and to determine which brands are more appealing to the market and which brands are not doing well.  In order to build a strong brand and effective image, the management who of PepsiCo should think of two things in planning a strategy. Such things are first is to sell the service of the company as a short-term goal and second is to build a strong brand image in the long run. In time of the process of promoting the brand name, the industry can apply integrated marketing communications to ensure the efficient introduction of the quality of service that the organization stands for (, 2007). It can be concluded that through the use of BCG Matrix analysis, companies like PepsiCo has been able to know which products can be considered as the foundation of the company and which products needs effective marketing approach to enhance its market share and growth in the marketplace. All in all, it can be said that BCG matrix is really a helpful marketing tools for different companies to know their competitive position in the market. It can also be said that effective marketing approach is a complex phenomena and it can easily be understood using metaphors such as understanding the current situation of the brands in the market. Analysis has shown that to be able to have a strong and effective brand, it must be able to meet the needs and demands of the clients and the company itself. In addition, analysis shows that the use of promotional activities is an important aspect to make the brand be more attractive and appealing to the target market.

Market Growth of Pepsi Co.

BCG Growth Matrix Introduction Business organizations are subject to different aspects which affect the function and operations of...

Human resource discourses Examples

Human resource discourses are noticeable by staff commitment as there places HR development as ideal for Bangladesh and Japan applications study as supported by CSC data and information from the year 2007 up to 2010. Correctional Service of Canada (CSC), agency within Public Safety Portfolio as there brings together key federal agencies dedicated to public safety, including the Royal Canadian Mounted Police, the National Parole Board, the Canada Border Services Agency, the Canadian Security Intelligence Service, and review bodies, including the Office of the Correctional Investigator. CSC has presence from coast to coast to coast from large urban centres with their increasingly diverse populations, to remote Inuit communities across the North. CSC manages penitentiaries, mental health treatment centres, Aboriginal healing lodges, community correctional centres and parole offices. In addition, CSC has five regional headquarters that provide management and administrative support and serve as the delivery arm of CSC’s programs and services. CSC employs approximately 15,200 staff5 across the country and strives to maintain a workforce that reflects Canadian society. Slightly more than 5% are from visible minority groups, approximately 4 percent are persons with disabilities, and approximately 7 percent are Aboriginal. These rates are at or above the labor market availability of workers in these operational groups for the types of employment offered by CSC.  The need to examine how the factors influencing commitment might vary by occupational groups. Because correctional officers and case management officers are found to differ on commitment, looking at what "commitment factors" are important for the groups. For both correctional officers and case management officers, positive attitudes towards the field of corrections were the most important factor, to look for results separately. Correctional Officers - After positive attitudes towards corrections, the next most important factor for correctional officers, was positive attitudes towards rehabilitation. The third most important "commitment factor for correctional officers concerned complaints about management. Case Management Officers - For case management officers, positive attitudes towards corrections was also the most important "commitment factor however, the next most important factor was career development orientation. This suggests that case management officers who have high degree of interest in developing their careers are more committed to the Service. The third most important factor for this group was the perception of the Service as open and flexible. The research literature on organizational commitment provides additional clues which may be of assistance in formulating plans for increasing commitment among CSC staff. Most researchers (DeCootiis and Summers, 1987), agree that there are two main avenues of influence on organizational commitment: personal characteristics of staff and work characteristics. Personal characteristics include many of the factors we have studied including beliefs, personality attributes, and career ambitions, attitudes toward work, demographic factors, and length of service. Work situation include attributes such as organizational climate, perceptions about work roles, and processes used for decision-making in organizations. Work situation variables measured in the current study include perceptions about the level of openness of the organization to receiving new ideas, experience of work stress, and perceptions about the roles of management and supervisors. In developing methods for enhancing commitment, focus on the influence of personal characteristics may be particularly relevant to the recruitment process, the strategy would involve attracting the appropriate types of individuals who will have the characteristics necessary to become committed to correctional work settings. For example, the results of the study suggest that individuals possessing positive attitudes toward the field of corrections, pro-rehabilitation attitudes, and strong career development orientations, make committed employees in organization. Studies have demonstrated that employees who occupy positions with high job scope, including such autonomy, challenge, and feedback, show high levels of commitment. In addition, supervision practices which are not overly close are associated with greater commitment. With respect to cohesiveness, several studies have demonstrated that staffs become more committed as the level of social involvement and the formation of group attitudes and norms increase. For example, studies have shown that when staff is involved in designing their own incentive programs, for example, managers are more likely to reap the benefits of the program. Indeed, the notion that positive outcomes result from "involving" staff in matters that affect them has a great deal of intuitive appeal. Most managers realize that they will have greater success in implementing new procedures and policies when such conditions are respected. The research may suggest that commitment is related to the perception that the organization is open and willing to listen to new ideas. Several finding may indicate the desire on the part of staff to gain greater participation in decision-making. Further discussion and planning among various groups of staff in the Correctional Service of Canada will be helpful in generating additional strategies for Bangladesh and Japan to adhere upon.   DeCotiis T and Summers T (1987) A Path Analysis of a Model of the Antecedents and Consequences of Organizational Commitment. Human Relations, Vol. 40, No. 7, 445-470

Human resource discourses Examples

Human resource discourses are noticeable by staff commitment as there places HR development as ideal for Bangladesh and Japan applica...

Network Maintenance Plan

Network Maintenance Plan                 Network planning and Design aims at ensuring that the network or service meets the needs of the users and operators by encompassing topological design, network synthesis and network realization. Involve in the process of network planning and design is the creation of a Network Maintenance Plan. This very important process will ensure good performance and reliable network operation and service. Investing in network maintenance improves the performance and longevity of the network. A well-maintained network performs better, lasts longer and costs less than networks that are not maintained regularly.   Processes:             The company’s maintenance plan will include Network modification of servers and workstations, download of virus and spyware updates, reviewing and addressing system performance and make small adjustment on the system to ensure optimal performance. It will also include fixing some minor problems on particular part of the network. The network maintenance plan will be carried out by an experienced engineer to keep the smooth operation of the network and to keep it trouble free. The Network Maintenance Plan is intended at eliminating slow networks that often lead to poor performance or network breakdowns. The Network Maintenance Process involves checking switches, checking hubs, checking routers, checking print servers, checking printers, checking firewall rules, checking firewall logs, checking UPS’s and more. It will also update the firewall operating system.   Procedures: 1. Network Overview involves checking the maintenance status of the network. It will also allow the maintenance team to define new maintenance needs and to check performed maintenance actions. 2. Recording of the maintenance and service tasks performed in the network. Searching of upcoming maintenance needs and performed maintenance actions. 3. Routine technical maintenance of telecommunication equipments to ensure network security. 4. To ensure the integrity of security controls, the equipments must be regularly checked. 5. Periodical checking of power and grounding to ensure keep them within specifications. 6. Adequate power backup maintenance. 7. Creation of error-reporting logs of equipment failures that will focus on the cause of error. 8. Putting institutional identification on each item and recording of the maintenance that was done on a specific item.          Expected Outcomes:             The Network Maintenance Plan is expected to increase the company’s profitability and improve the network by: <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Network Downtime Reduction</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Network Performance Improvement</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> Longevity of network equipments.</li>

Network Maintenance Plan

Network Maintenance Plan Network planning and Design aims at ensuring that the network or service meets the needs of th...

Ethnicity Psychology and Culture

Race, Ethnicity, Psychology and Culture   Question: Western Media is and has been a key site for the representation of ideas about radicalized groups, which repeats, reinvents, and shapes wider ideas of race. Assess this statement using case examples in your answer.     Introduction               “Great power entails great responsibility,” as Spiderman would reiterate as he realizes that he is a man bestowed with power to liberate people who are in need and oppressed. As he faces an epistemic dilemma, Spiderman recognizes that such power belongs rightly to the people. Thus, as Spiderman acknowledges his enormous power, he then carries a great responsibility that he has to fulfill for humanity’s sake. In the same way, existential tone leads us to realize our role as individuals as we fulfill our different functions in the operations of the society. Each individual is endowed with gifts and these gifts naturally demand a specific function.             With power at hand, man’s natural reactions are varied according to necessity and context. The power may be used use in different ways, either positively or negatively. Using this power for personal gain and interest may be injurious and dangerous to others. More so, if this power is used collectively to harm innocent people, this would lead to destruction. The challenge is for each person to have a responsible use of power to fulfill crucial functions to humanity in general.             Media as an institution itself does not merely influence the consciousness of every individual but tends to manipulate and control the operations and processes of the consciousness. Moreover, media institution symbolically offers a sanctuary for those who are suffering from injustice, oppression, and discrimination. Media upholds the rights of the people, a defender of a cause, and a harbinger of spreading information and freedom. Hegemony, Power, and Ideology             According to Pierre Bourdieu, a French sociologist and social theorist, all human actions take place within the social fields which are areas of struggle for the resources. These resources could either be in the form of economy or culture. Obviously, the friction of the struggle for these resources is mainly caused by power. For Bourdieu, power is concentrated in three fields – economic, political, and social power. At most, the projection of power is concentrated in the control of resources through the use of ideology and hegemony. Ideology and hegemony are the two concepts that are assumed to have been influential channels in the hoarding of power. The common understanding of ideology is described as a set of deliberately formulated coherent, rational, usually political ideas that is used as a way of defining and understanding how society can be organized (Shaughnessy, 1999). In this context describing someone as following an ideology suggests that their views are unrealistic, rigid, and dogmatic, that the person is always trying to makes reality fit their ideological beliefs. Such a se of the term according to Shaughnessy (199) assumes that ideologies are always in some sense inherently false and flawed because they are not realistic or they do not reflect reality. However, this is the traditional conception of the idea on ideology which sprouted from the doctrine of Marx and even Marx himself delivered and offered such definition of ideology, most especially a ‘dominant ideology’ in particular. This Marxist analysis of ideology brought forth diverse interpretations from intellectuals after his reign. According to Andrew Tolson (1996), author of the book Mediations: Text and Discourse in Media Studies as far as a practice of critical analysis is concerned, much hinges on Marx’s conception of the dominance of this ruling ideology—that is, how precisely ‘those who lack the mental production are subject to it’. There are weaker and stronger versions of what subjection could mean. If we assume that these ideas are, essentially, not our own, but the ideas of the ruling class, then there is already a certain critical distance from them. Moreover, if these ideas are nothing more than ideal expressions, then it might be possible to see around them, or even see through them, in some way (p. 161-162). Through ideology, ruling groups attempt to universalize their own interests as the interests of all. The prescription of ideology in a society using the power coming from the dominant class are disseminated and integrated in laws, rules, norms, habits, and even a quite general consensus, and this take the form of what Gramsci called hegemony.             Therefore, power and ideology are two fundamental elements at play in media. Without power that assert and ascertain certain values, norms, and beliefs, no ideology with regards to these may not formed. However, the presence of ideology assumes the ability and the resources of power of people who imposed, ascribed and enforce worldviews. Role of Media in shaping consciousness and lifestyle             A certain belief may be dominantly acceptable when it passes through the process of legitimatization and consent. Usually, the seat of power is concentrated from the ruling class which regulates and mobilizes such legitimatization and consent. The dominant class, with its great power, can manipulatively legitimize certain belief and ideology through the intervention of effective and influential conduits. One powerful conduit is media.             Gramsci points out that media, as an institution, manipulates the social consciousness of a society which, in effect, becomes hegemonic. Furthermore, Louw (2005) states that “becoming hegemonic means becoming the dominant or ‘leading group’ in the society. This entails becoming the ‘ruling group’ whose concept of reality then sets the tone”. In this post-modern era, media plays a powerful role, and we can even say rule, over the lives of people more than the power coming from the clergies and educators. Gramsci foresees media as foremost among the institutions’ echelon. Undeniably, education is feed mostly by media, more so, with the church authorities that use media to effectively convey their power. The effects that media brings are indeed encompassing and can reach beyond barriers.             The generally accepted thought when we speak of media is that an institution assumed the role of being the fourth estate which upholds the importance of conveying information. The cardinal virtues in which we ascribed to be of media’s ideal principles are to practice objective, impartial, and balance reporting of information. However, media practitioners do not observe such principles due to uncontrolled constraints and interferences coming from external and internal influence. Moreover, attached to its grand responsibility as a fourth estate is to become the “balance beam” of the three state democratic branches namely the legislative, judiciary and executive. It is not just simply to act as scrutinizer of the state rather, to help the society grow and the public must be well-informed about recent and important issues which usually affect them. The media must remember that being an institution possesses certain amount of power to influence the public. However, they should always be reminded that this power which is inherent in them be exercised properly. Media: Site for Representation of Ideas             Let us take a look at media as a site of representation of ideas in the plane of postmodernism. But first, let us look into the classical notion and role of media before we jumped into its modernized and post-modernized role in the society in general. Media were believed to mirror, reflect or represent ideas and reality. As both an institution and instruments, media play a crucial role in the development and formation of the society in which it assumes one of the most significant roles, that is to inform the public of right, objective and fair information regardless of danger and harm it will produce. Yet, only few realizes such noble responsibility instead others abused media as an instrument to advance and pursue personal interests. As it was discussed above, because media dominantly influenced and control by the few or elites, most often the ideas and information flow is being selected and manipulated for their own gain.             Jean Baudrillard, a French postmodern social theorist, avant-garde, and postmodern media theorist provides a paradigmatic models of the media as all-powerful and autonomous social forces which produce a wide range of effects. We can extract most of his provocative and radical thoughts in his works Toward a Critique of the Political Economy, Understanding Media, and The Mirror of Production. These works were significant in media studies in which it provides radical reflections about media situated in this postmodern society. In line with the idea that media assumes a place wherein it represents ideas. What is intriguing is that since media do not fester in a certain locale, but rather active and dynamic, is highly dubious that media now represents ideas that are grounded on the reality outside. We even further asked whose ideas are being represented in the media, are these ideas represent the collective sentiments of the people regardless of their social status? Or are these ideas only represents the elite and minorities and marginalized are simply passive and silent.             According to Baudrillard, the rise of the broadcast media is an important determinant of post-modernity along with the rapid dissemination of signs and simulacra in every realm of social and everyday life. He then branded media as key “simulation machines which reproduce images, signs, and codes which constitute an autonomous realm of reality (retrieved August 4, 2008 www.gseis.ucla.edu).” Now, to look at media in the plane of being a site which represents ideas is quite relevant. However, these ideas are suspected to be more than what it reflects from the outside reality and are rather ideas highly fabricated to represents or create a hyper-reality. The social analyses of Baudrillard about media point to a reversal of the relation between representation and reality. Now, media are coming to constitute a hyper-reality, a more real than real, wherein the real is subordinate to representation leading to the dissolution of the real. Moreover, Baudrillard claims that the proliferation of signs and information annihilates meaning which leads to its collapse and destruction between media and reality. Looking into these ideas, we are no longer surprise if media nowadays radicalized some major issues and social structures which often lead to repetition, reinvention, and shaping wider hyper-real representative ideas.  Media on issue about Race             Today, we addressed our sentiments, social, economic and political discourses through media. By and large, media become our effective channels in which we convey our utmost desires for political, economic and social change. Since media have the power to discharge thoughts and ideas which positively promote social and political stability or order, however, as an institution it also branded to be bias and partial. On the other hand, media can also be used by some in unfettering subversive information that can destabilize the current social order and status quo. This reality is inescapably subject to diagnosis and evaluation of media scholars and social theorists. Throughout the history of media, the redress and undress of fundamental principles and theories were significant in order to adjust itself from the current trends and demands of society. However, there are still principles that are orthodox which exists alongside the history of humanity. Hence, the issue on race is one of many social issues people tend to solve and media play a key role in the evolution and formation of human consciousness towards our perception on race. When we look at media as both as an institution and instrument, we can easily underline its powerful role on racial issues. Upon looking at various cases which directly relate to media and race, we can find fertile ideas that would lead us realize and understand how western media contribute to the many social issues like race.             The problem of the color line emerges to be highly significant in western countries like America. The division between the light and black colors intermittently discussed in multiple public spheres. Civil disorders in United States came upon the arrival of minorities most especially of black descent. Discrimination, oppression and civil rights deprivation became major causes of upheavals amongst people with black color line against authorities’ cruelty and discriminatory measures. Here, the role of media greatly receive satisfactory grade on the issue about race. If to look at media as instruments, it does occupy several communication tools like television, radio, print, theatre and new media technologies like web or internet. Thus, we come to asked ourselves what image does the media conveyed or form on let us say, people with black color line? How media present information or images that have something to do with race? We are not only dealing here with a specific issue on race but the generality of its concepts applied to all situations wherein racial issues are prevailing. But in order to illustrate the epitomical role of media on social issue, we must take a look at particular events in which the involvement of media greatly affects our ideas on racism and the subordinating correlative racial concepts. First, in order to bring a clear arguments and articulations about our thesis statement let us first treat media as a tool or instrument. In this way we are going to look at media’s instruments in which it communicates representations or images about our ideas and notion of racial discrimination and concept of race in general. The Use of Representative Images             One good example in order to explain deliberately the role of media as a site of representation of ideas which radically reinvents repeats and shapes wider ideas or understanding of race is the use of historical literature. One of the most significant historical literatures was the racial history about the African black minorities living in the white country like United States. Let us then examine the images of African-American or people with color line portrayed in various mediums. In the book by Jessie Carney Smith (1988), the Images of Blacks In America Culture, he investigated various mediums in which the discriminatory images for color line people were explicitly manifested. He deeply engaged on studying the images found in theatrical plays, musical, literary writings, and folklores. In the early theater, Black in the early centuries was considered slaves and was subjugated by their white lords. Since color line people are despised minority with little or no influence over the literature, it was not surprising that even before the nineteenth century bizarre caricatures arose in connection with white-run musical theater. This was a form of entertainment with strength in its identification with popular sentiments – sentiments that held color line people to be pathetic, laughable, or stupid. In the 1840s the dawn of blackface minstrel took place. The minstrel show was a theatrical entertainment in which “images of Negroes shaped by white expectations and desires and not by Black realities (p 31, 1988).” Minstrel men were experts in caricature. Along with cork-darkened faces, lips were painted extra large and white; players wore rags or ludicrously fancy clothes and told jokes loudly in a dialect not necessarily resembling Black speech. The earliest Blacks to cross the color line on the antebellum stage was the legendary dancer William Henry Lane, who did not work in blackface but toured in i1845 and later with three white showmen calling themselves the Ethiopian Minstrels. Moreover, in contrast to the negative image portrayed by the domineering race at that time was a literary writing entitled Uncle Tom’s Cabin in which the author speaks her sentiments about the color line people who considered being equal to the colorless people. This novel being recognized as a milestone in American literature and politics was widely disseminated in dramatic form, with music interludes. The drama depicted the slavery issue squarely and vehemently, the image of the colored people within the play. Although it is pervaded by a melodramatic tone typical of the time, Uncle Tom’s Cabin recognized that colored people, Blacks in particular were human beings and embodied human emotions.        The culture of America is multiethnic and multiracial. The Afro-American race had the greatest handicap of all. They were the only people who began life in America not even owning them selves. Blacks had little chance to learn history, to establish self-identity, or to formulate satisfying self-images. They have to survive by learning the speech of the white masters. The exclusion and segregation of their race significantly hindered them to interact with the culture and social atmosphere of the whites. Much of the notion, hence, consciously attempted to mold the Black mentality into one self-image – that of a slave. These indications which clearly mapped in American history contained in various literatures which we considered as means of communication—medium of transmitting knowledge and information to people of the present and the future. In fact in the early movement of the century, the presence of stereotyping still exists in the mid 40s and 50s. The cultural images still leaned toward portraying the life of segregation in various literatures like children books, illustrative materials and books. Hence, given these representative images, it is very clear how media as an instrument manipulated, used, and controlled by the dominant class to spread and promote discriminative and oppressive values that legitimize the current state of people’s consciousness, in this case, the colored people.  They are unconsciously conditioned to be of lower class-race and are lived for the service to their masters. One stereotypical connotation on attached to the name Black is slavery hardly surprising that even towards the early 19th century the notion of Black still conjures a concept of slavery. Moreover, the power of media as noted in the previous discussion is encompassing and unconquerable, yet can be reached and conquer only when agents –man in this case, consciousness enable to manage and temper the power of media by making it useful and beneficial to the common interest and not for personal gain. We see how media are being used to propagate the interest of the few and the dominant and if we base our discussion on this fact, we can say that the racial discrimination among Afro-American race was strongly founded and propagated through the use of media in particular, theatre, print, and literature. Media and Race             I do believe that vital to the role of media is to shape the consciousness of the people. Through a simple advertisement of any products which has an interesting proverbial lines, when it attracts our attention it submerges to the subconscious and without our knowing it make us push towards getting such product. That is why many are addicted to a lot of things most especially things that have to do with lifestyle and technology. Moreover, most of us when watching a news story we are easily convinced to believe what is being conveyed. But without knowing that news stories do not necessarily contain the whole truth because of it undergoes certain process of selection, edition, and control. Hence, news bits and headlines do not necessarily reflect the truth in the real specific events it took place. Although, some news reporters strive to make a balance, objective and impartial reporting, it inevitably cannot commit any biases and partiality when reporting.        In this line of thought, let us extract some cases in which the role of media in the news field manifest some biases and misshape of consciousness towards racial issues. Although, nowadays, it can be noted that racial slur is prohibited in the international human rights law. Unlike of the past centuries wherein racial discrimination became the central social and political issue, today, as the world gradually becomes highly literate, social and cultural reforms are highly important and significant. However, let us examine notable cases which will show contours of biases and inequality treatment to the subordinated race. A report made by (2006), Rethinking the Discourse on Race: A Symposium on How the Lack of Racial Diversity in the Media Affects Social Justice and Policy, provides recent issue on racial diversity. The report said that during the height of hurricane Katrina, the storm laid bare the cleavages of race and class that continue to divide the nation. Noting the statement of  which goes, “the storm exposed the fact that race does matter, so, too, does class. We learned that economics can save lives. It was the difference in who had a bank account or a credit card that determined who got out of the city and where they stayed once they were out (p.9, 2006)”, it was clear how racial stereotypes still apparent. Mediated through media, the torrent of images speaks not only to the unrelenting swing that race holds over the nation’s collective consciousness, as well as its public policies.  By and large, the coverage highlighted how the media give shape to public discourse about race. The bias in perception and interpretation is profoundly inevitable for reporters to temper in its lowest level. Carlson noted that during the hurricane two news bureaus captured two different photographs. The Agence France-Presse published a photograph of a young couple carrying bags of food and a case of soda through chest-deep water with descriptive caption “finding bread and soda from a local grocery store.” Meanwhile, another news bureau Associated Press published a nearly identical photo of a lone young man wading through water with provisions in tug with a descriptive caption for the subject “looting a grocery store.” Although nearly identical in composition and tone, there was one salient difference – the subjects in the first photo appeared to be white while the young man in the second photo was black. When photos were vis-à-vis posted in the internet many critics viewed it as biased coverage of the storm and its aftermath. Moreover, media reinforcing racial stereotype was confirmed in the research made by two communication scholars of the University of in their analysis of post-storm news photos. Gandy and Lee analyzed the racial coding of photographs that appeared in the New York Times and the Washington Post from August 30 to September 7 of 2005. According to them, whites stand to be active agents in their own rescue over 80 percent of the time, while blacks were shown in roughly equal proportion to be passive. Most African Americans were portrayed as being passive, doing nothing. “They just looked incompetent. It is like they lacked some intelligence on responding to their own disaster” Lee commented. Yet the Katrina coverage represents just a small corner of the media universe, and the racial stereotypes that often pervaded the coverage represented one example—albeit an especially dramatic one – of how the media often present distorted representations of various minority groups. As  reiterated, “when we talk about our representation in mass media, we are totally invisible. When you talk about our television, again, very rarely do you see a Native American judge, or an attorney, or a cab driver for that matter. He noted television communicates more ideas and images to people in a single day than Solomon or Shakespeare did in their entire lives. Yet when Native Americans, especially the young and the old, hear the “loud sound of exclusion” they feel the pain acutely. Hence, media shape and misshape race to some extent. Conclusion                          Media as an instrument and as an institution with inherent power subscribe to influence and manipulate values and consciousness of the people. The various channels which composed the entity perpetuate different messages that are manipulated and controlled by the few groups or the dominant class. In line with this thought, media discharge ideologies and stand to be hegemonic, such role being established greatly affect the formation of social order, in particular the issue on race. Due to the prevalence and effective tools of media, racial discrimination became stiff and fierce to the Black as regarded to be a second class or low-racial class. However, through media, Blacks also regained the dignity of being human and stiff stereotyping and discrimination became lax as the world becomes more literate and knowledgeable. Still racial issues are although, not too heavy and explicit as compared before unavoidable to some groups and to some extent. The acute treatment of the colorless skin people to those with color line skins are the effects of the influence of media publicity. What is essential here is that media plays a powerful role in shaping and reinventing ideas. Yet, we no longer surprised if these ideas are product of the influence, manipulation and control of few dominant groups. The inherent power of media instruments can be both shape and misshape our consciousness towards certain social or political issues like race. While minorities strive to regain equality and respect from other race, the use of media is imperative.

Ethnicity Psychology and Culture

Race, Ethnicity, Psychology and Culture Question: Western Media is and has been a key site for the representation of ideas about rad...

General Guide : Assignment of Business Policy

Module Name: Business policy Assignment Title: Critically evaluate your organisation’s (The Hong Kong and Shanghai Banking Corporation Limited) Value Chain and explain in detail how improvements in the current value chain may help your organization to develop and sustain competitive advantage over the next 5 years.   Learning Outcomes: This assessment satisfies the following learning outcomes No. Learning Outcomes Assessment Criteria 1 Demonstrate knowledge and Understanding of the main concepts, Principles and techniques of Business Policy Select and evaluate relevant BP principles and practices suitable for a given scenario and support conclusions by the citation of relevant authority and application by practice 2 l   Conduct a strategic analysis in a variety of industries and competitive situations l   Reason carefully about the strategic alternatives available in any given situation in order to achieve a sustainable competitive advantage. l   Demonstrate how the implementation of a chosen strategy would be brought about. l   Achieve a depth of analysis of a given situation. l   Demonstrate the reasoning behind the preferred choice of strategy. l   Explain the issues associated with the implementation of a given strategy.   3 Communicate reasoning and action plans to others in a professional and persuasive manner l   Evaluate and prioritise ideas and information. l   Compose verbal and written arguments based on the evaluation of relevant models and concepts. General Guide for Assignments l   Identify the relevant academic theories and use these to structure your answers l   What is(are) the question command word(s)-this will determine the focus of you discussion l   Think key themes e.g. relationships, synergies, complexities etc. l   Present detailed relevant evidence to support your discussion. l   Academic Journals/Harvard Referencing Style

General Guide : Assignment of Business Policy

Module Name: Business policy Assignment Title : Critically evaluate your organisation’s (The Hong Kong and Shanghai Banking Corporation...

Standpoint Epistemology

The concept of standpoint epistemology is to use the socially situated nature of knowledge claims being the basis for maximizing objectivity (Durham, 1998, p. 127). Standpoint theories claim to represent the world from a particular perspective laying claims to epistemic privilege or authority. These theories are post modern methods which analyzes inter subjective discourses. They support ‘strong objectivity’ or the notion that the perspectives of the disadvantaged individuals can be of help in the creation of more subjective accounts of the world (Wikipedia, 2007). Based on this approach, the standpoint is a place from which the world is viewed by human beings. As such, these standpoints influences the way by which people socially constructs the world. The creation of standpoints may differ due to the existing inequalities of different social groups. Furthermore, standpoint is not merely the spontaneous thinking of a person or the category of individuals.  It is the combination of all resources in a specific context wherein the construction of understanding takes place. The idea of standpoint can be illustrated with the analysis of the standpoints of the capitalists and workers. The predominant notion of power in the culture constructs it as a quality of the individual expressing the capitalist standpoint. The standpoint of the wage laborer on the other hand sees such quality as a form of domination. Because of the sexual division in labor that leaves women to their domestic labors, the women’s standpoint can be resources for the development of the notion of power (Hayes & Sprague, 2000). Standpoint theories become controversial when claims of epistemic privileges over socially and politically contested topics are made. These claimed privileges consist of the characters, causes and consequences of the social inequalities which define the group in question. Three types of epistemic privileges over the dominant groups’ standpoint are claimed by this type of standpoint theory. First is the claim of offering deep over surface knowledge of the society. The basic regularities driving the phenomena in question are revealed from the standpoint of the disadvantaged whereas the surface regularities are captured by the standpoint of the privileged. Secondly, claims of superior knowledge of the modes of surface regularities and human potentialities are offered. Existing inequalities are represented as natural and necessary by the standpoint of the privileged. The standpoint of the disadvantaged represent them on a different sense as socially contingent but capable of being overcome. Thirdly, they claim to offer the representation of the social world whilst relating it to human interests. Social phenomena are represented from the standpoint of the privileged only in relation to the interests of the privileged class and therefore misrepresent the interest as relating to the universal human interests(Anderson, 2003). Marxist Standpoint Theory The classic model of standpoint theory is offered by Marxism in which epistemic privileges over the fundamental questions of economics, sociology and history are claimed on behalf of the proletariat’s standpoint. Initially, the workers do not have the standpoint. Such is attained after they acquire consciousness of their role in the capitalist system. Epistemically privileged perspectives on the society are attained from the social situations of the workers. In the central mode of the capitalist production, workers experienced oppression. As a result of their oppression, they are given the objective interest on the truth regarding whose interests are best served by the capitalist system they are in. The understanding of workers as future agents of the universal class may lead them to communism where everyone has the same class status. It entails the representation of social world in relation to the human interest and not in relation to the specific interest of a class as in the perspective of the capitalist system. The collective insight of the common predicament and the need to overcome it lead to a revolutionary action that generates self understanding.   Feminist Epistemology The feminist epistemology was theorized by Nancy Hartsock in 1983 drawing analogy with the Marxist epistemology. It has been argued by Hartsock that the feminist standpoint can be built on the understanding of experience and the criticisms of patriarchal ideology manifested in Marxian analysis.  With this, the feminist standpoint is necessary in examining the oppressions in the society that devalue the knowledge of women (Wikipedia, 2007). The feminist standpoint theories are focused on the differences in gender as well as the differences on situations between men and women that give a scientific advantage to those capable of using those differences. Such approach originated from the master and slave relationship of Hegel and the developments of these perceptions into proletarian standpoint by Marx. In this sense, the proletariat’s notions were translated to feminist terms. Hartsock argued that the oppression of women in western capitalist society is a potential criticism for domination. Hence, human activity is asserted to set limitations on human understanding. This means that what people do is what shape and constrain what they know. Hartsock argued that the in  structuring of human activity in two opposing ways such that of men and women, each is likely to represent an inversion of the other. The rulers then will have partial and perverse vision of the systems of domination (Harding, 1991, p. 120).  Canadian sociologist Dorothy Smith offered a major rethinking of this theory. She referred to the social texts and discourses as ‘ideological practices and procedures which conceals the underlying relations’ of power in the society (as cited in Durham, 1998, p. 127). The central to Smith’s criticisms are the political basis of supposed objective method by which knowledge is accounted. It is argued that such accounting of knowledge is a result of the relations of the ruling. An alternative to this androcentric science is the sociology that started from the women’s standpoint. As such, the epistemology is built on the experiences of women taking into consideration the split between their lives and the society’s dominant discourses (Durham, 1998, p.127)             The feminist theory was further developed into more complex theories making an account of the constraints lived by the marginalized, oppressed or dominated groups. Among the theorists who advanced the standpoint epistemology was Sandra Harding. Here, she scrutinized the tensions and contradiction between feminism and the Western science. The feminist philosophy of science offers a rich account of the world where people live in. Procedures that maximize objectivity must therefore be focused on the social situations being the direct object of observation. On the other hand, the reflection must be focused on the observers and the scientists and the larger society. The maximum study of the scientists as well as their communities can be taken from the perspective of people who have been marginalized by such communities (Durham, 1998, p. 128).             Taking a variety of perspectives, it can be concluded that the concept of women and knowledge, that is socially legitimated knowledge, has opposing construction in the Western societies. Women are not given the voice of authority to state their conditions or to assert how such can be changed. The attempt to remedy this situation paved the way for the articulation of several feminist epistemologies (Harding, 1991, p.106). Deaf Epistemology Deafness clearly inflicts a barrier between the mind eagerly waiting to be filled in and the external sources of knowledge. The deaf people can arrive at a different understanding of the world as compared to those hearing people. This will be possible only if the people believed that deafness can enable people to view the world in a different manner and be able to actively construct knowledge. Learners are not seen as empty vessels or even mere recipients of words. Because they are not marginal beings that needed to be saved, they can be viewed as members of the large family of oppressed (Brueggemann, 2004, p. 159).             With respect to therapy, epistemologic matching is an essential factor. This is particularly crucial when a therapist of the hearing culture (majority) is treating a member of the deaf (minority). In a macro level analysis, there may seem to be a wall between these two groups of people. This is because the therapist and the client are from two antagonistic groups in the sense that the deaf culture is a minority group which is oppressed by the majority group or the hearing culture. Sue (1987) suggested that the minority groups elicit a different view of the world which has been shaped by their status as subordinate groups (as cited in Harvey, 1989, p.138). Each group view and understand the world in different ways. Furthermore, there is the tendency of each group affectively or negatively reacting to how each other view the world.             Deaf persons has in one way or another experienced being ostracized, ridiculed and denigrated by non disabled children during their childhood. On the micro level, the therapist must observe the epistemologies of deaf clients as they offer possibilities to guide the questioning of the client (Harvey, 1989, p.138).

Standpoint Epistemology

The concept of standpoint epistemology is to use the socially situated nature of knowledge claims being the basis for maximizing objectivi...

Strategic Marketing Planning : US Fast Food Industry

Strategic Marketing Planning Introduction              (2002) note that the fast food industry has now extended throughout the world. Originating in the United States, fast food restaurants are often considered as a characteristic of the new global culture. These fast food restaurants are illustrated as informal, have uniform service to anyone regardless of social status and focuses on giving quick-service to its customers. The fast food industry grew out of a cultural philosophy that greatly values friendliness more than propriety, basically more than traditions of gracious living and democratic consensus over status-based divisions ( 1969, 1985,  1991).             Firms within the fast food industry fall into the category of a competitive market structure. According to  (1997), the competitiveness of a market refers to the extent to which individual firms have the control or power to influence market prices or the terms on which their products are sold. It must be noted that “the less power an individual firm has to influence the market in which it sells its products, the more competitive the market is” ( 1997).             An example of a firm competing in the fast food industry is McDonald’s Corporation. McDonald’s Corporation is one of the market leaders in the fast food industry. It has more than 30,000 local restaurants which serves nearly 50 million people in more than 119 countries each day. McDonald’s Corporation is one of the most popular and valuable brands in the fast food industry. The corporation recognized that in order to be successful, the corporation has to be flexible and adapt to the changes that society may bring             In particular, this paper will be concentrating on McDonald’s Corporation with regards to its strategic marketing planning. This paper will be discussing the importance of understanding competitors and how this understanding may facilitate successful planning of marketing activities. The purpose of this paper is to give the researcher wide knowledge over strategic marketing planning and apply this knowledge in assessing the strategic marketing planning of McDonald’s Corporation in particular context with its competitors such as KFC. An in-depth analysis of fast food industry is required as to facilitate the researcher in its aims for the paper. Strategic Marketing Planning              (1984) notes that strategy is very important for any organization as it offers the direction the organization would like to pursue to attain its objectives. In the recent years, the integration of strategic planning and functional marketing has been perhaps the most relevant development in the field of marketing management as marketing managers have all the more realized that tactical marketing decisions must be made within a wider strategic framework.   Segmenting the Market (First Stage)   Geographic Demographic Psychographic Behavior                       Developing a Market Segment Marketing Strategy (Third Stage)   Market Leader or Product Line Extension Mass Marketing or Targeted Marketing Direct or Indirect Sales       Figure 1: Strategic Marketing Planning Source:  2006 In addition, it is necessary that management of the marketing function be built upon purposively defined and analytically based marketing strategies. Strategic marketing planning offers the analytical process which develops efficient marketing strategies. The strategic marketing planning, according to  (2006), involves basically three stages: (1) segmenting the market; (2) profiling the market segments; and (3) developing the market segment marketing strategy. Please refer to figure 1 for the outline.             After analyzing the market segments, customer interests and the purchase process, the firm must then establish the strategic marketing plan. This strategic marketing plan document usually constitutes (2006): (1) situational analysis – Where is the company now? – i.e., characteristics of the market, key success factors, competition and product comparisons, technology considerations, legal environment, social environment and problems and opportunities; (2) marketing objectives – Where does the management want the company to go? – i.e., product profile, target market and target volume; and (3) marketing strategies - What should the initiatives be taken in order to attain its objectives? – i.e., product strategy, promotion strategy, pricing strategy, distribution strategy and marketing strategy projection. Industry Analysis             Upon close examination of the fast food industry, the researcher has assessed using Porter’s five forces model that firstly the competition in the specific industry is very strong as there are several numbers of rivals that can compete on one location as fast food is a commodity and typically, there is also low switching cost upon opting for another fast food service. In addition, these rivals may also introduce new items in their menu or introduce a totally different menu, for example, serving Mexican food (tacos, quesadillas, etc.) instead of American (burgers, French fries, etc.). it must also be noted that fast food industry rivals can compete on price.             In terms of the threat for potential new entrants, the researcher has assessed that it is rather weak as it is very difficult to establish a chain which will serve as many international locations such as McDonald’s Corporation. Also, the cost of entry is very expensive especially is planning to expand as globally as McDonald’s. It must also be noted that it is also difficult to beat the brand name value of McDonald’s as it has been established and well-known for decades already.             Next, as for the bargaining power of buyers, the researcher has assessed that in the fast food industry, it is very strong. As noted earlier, fast food is a relative commodity. Basically there are a lot of other fast food chains to choose from because the market structure is competition. Moreover, buyers usually have no incentive to be loyal. So what if they choose another fast food? Furthermore, switching cost or opting for another fast food restaurant is relatively low.             After that, the researcher has assessed that the bargaining power of suppliers is weak. Just like fast food chains, their suppliers are providing commodities with a market structure of strong competition as well; hence, there are still many suppliers to choose from. In addition, this competition among suppliers may facilitate driving down prices as well.    Threat of New Entrants (weak)   New local restaurants in local markets                  Bargaining Power of Buyers (strong)   Young people and children Travelers Busy people Low income people Bargaining Power of Suppliers (weak)   Fast food suppliers Meat suppliers Vegetable suppliers Equipment suppliers Beverage suppliers Dairy suppliers   Labor suppliers cooks/food preparers, administrative staff, manager, supervisors, cashiers   Industry Rivalry (strong) SBU : McDonald’s Corporation   Other fast food restaurants   KFC Wendy’s Burger King Jollibee Taco Bell     Threat of Substitutes (strong)   Pizza parlors (Pizza Hut, Shakey’s) Cafes (Starbucks) Salad bars and health-food restaurants Slow food restaurants Grocery stores Any place which serves food             Figure 2: Porter’s Five Forces Model Finally, the researcher has assessed that the threat of substitute product and services is strong. As mentioned earlier, there is a relatively low switching cost making it easier for customers to shift from fast food chains to other related commodity which may vary from pizza parlors to cafes to ice cream shops to anywhere which serves food. Plus, it must be noted that it is rather very unlikely than individuals will be consuming only fast food and nothing else. Also, fast food is not well regarded by health experts and there have been an increasing rate of people who have begun to be extremely health conscious; hence, these people are likely to find substitutes for fast food. Lastly, the location of the eatery may also influence customers to try out a substitute. Importance of Understanding Competitors             Understanding the competitors of a business in a given industry and developing methods as to distinguish it from them is a very relevant and critical aspect which influences the development of the competitive strategy of the firm. In addition, it is also an important aspect of the strategic planning process as it (1) facilitates the management to understand their competitive advantage or disadvantages associated to their competitors; (2) creates understanding of the competitors past, present, and future strategies; (3) offer an informed basis to develop strategies to gain and maintain competitive advantage in the future; and (4) to facilitate the firm in forecasting the returns that may be made from future investments ( 2005).             Proctor (2000) notes that understanding competitors is the core to making marketing plans and strategy. A firm has to compare its products, prices, channels of distribution and promotional methods with those of its competitors on a regular basis to make sure that it is not at a disadvantage. The process of the competitor analysis basically constitutes three steps. The first step is to identify the firm’s competitors. As for McDonald’s Corporation, it has several competitors in the fast food industry namely KFC, Burger King, Wendy’s, Jollibee, Taco Bell, etc.             The second step of the competitor analysis is the assessment of its competitors. This may be done through benchmarking as the firms will first have to determine the objectives of its competitors as well as their objectives, then later on assessing the strengths and weaknesses of its competitors.  (1997) notes that benchmarking sustains organizational growth as well as facilitates world-class competitive status.             Finally, the third step in the competitor analysis is the selection of competitors to avoid or to attack. After the assessment of the firm’s competitors, the firm will have to formulate the specific strategies that will give them the competitive advantage against its competitors.             It must be noted that during the process of competitor analysis and the implementations of its strategies, the firm will have to assess which of the competitors’ strategies that they will have to follow or not. The second stage which allows the company to compare their operations with others will necessitate some degree of change within the organization. Thus it should be very well noted that the company only as to follow the strategies that will apply to their business as every business is unique in their own nature. These strategies will have to be in lined with the company’s philosophies as well. Conclusions The fast food industry has already extended throughout the world. Firms that operate within the fast food industry are categorized as a market structure that is highly competitive. McDonald’s Corporation and its strategic marketing planning has been the focus of this research as McDonald’s is market leader in the fast food industry. The strategic marketing planning provides the company a methodical and logical process that develops efficient marketing strategies. This strategic marketing planning has three stages namely: (1) segmentation of the market, (2) summarization of the market segments, and (3) development of the market segment marketing strategy. Upon close examination of the fast food industry, using Porter’s five forces model, the researcher has assessed that: (1) the competition or the rivalry in the specific industry is very strong; (2) the threat of new potential entrants is weak; (3) the bargaining power of buyers is strong; (4) the bargaining power of suppliers is weak; and lastly, (5) the threat of substitutes is strong. This paper has strongly recognized the importance of understanding competitors in strategic marketing planning for the benefits that it gives to the successful planning of marketing activities. These benefits and advantages include the following. First, understanding competitors will facilitate the firm’s management to understand their competitive advantage and disadvantages in relation to their competitors. Second, understanding competitors will also generate understanding of the past, present and future strategies of the firm. Third, it offers the firm an informed basis to develop strategies in order to gain or maintain competitive advantage against their competitors in the future. Lastly, understanding competitors will also facilitate the firm in forecasting or predicting the financial returns that they made from future investments.

Strategic Marketing Planning : US Fast Food Industry

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