Marketing Management Consulting Report Essay Example | Topics and Well Written Essays - 2250 words

Marketing Management Consulting Report - Essay Example Weird Products is a slimming pills company, which provides an opportunity where people can positively improve their lives. The company will deal in producing healthy food supplements, which help provide people loose weight the healthy way. The tablets have been tested and are safe with a number of through studies to back up the effectiveness and the benefits of the food supplements. Weird Product slimming pills use simple and natural products to develop the slimming and beauty pills and these ingredients are mainly from unroasted coffee, which have been studied to be very effective for slimming. The ingredients of the products have been carefully thought out and the potential harms of coffee due to high consumption have bee reduced. The amounts of caffeine that are contained within the pills are less than a quarter cup of coffee, hence ensuring that the product is free of harmful ingredients like cafestol and kahweol (which could in a number of ways be dangerous for the human body). Weird Products at present is available only in the UK. The company has just been developed and the launched in the United Kingdoms and has developed an e- Commerce website. This website caters to mostly Europe. The company at present has a number of different strategies that are being used in terms of marketing. However, the main source of marketing for the company is online and via the web. Since Weird Products has most of its business online mostly, hence this is the best mode of marketing for the company at present. However the business does also sell the products to pharmacies across Europe. The various sources that are currently being used for the company is mainly, e Mail marketing, pay per clicks, banner ads and link building, all these along with a strong emphasis on search engine optimization as well (Jobber, 2004). These are the main marketing media that are being used by the company. The current marketing of the company

The Events of September 11 Attacks Research Paper

The Events of September 11 Attacks - Research Paper Example In Hamburg, most of the secondary planners and pilots became radical and better equipped to attack. In the morning of September 11, 2001, four planes were hijacked by 19 militants said to be mostly of the Saudi Arabia origin who subscribe to the ideals of Al Qaeda, undertook attacks targeting the US. They used four California-bound flights, taking control soon after their take-off. Some of the terrorists took charge of two commercial airliners and crashed them into the World Trade Center’s twin towers at about 8.45am. Another airliner was crashed into the Pentagon by another group of terrorists at 9.45am. Another group took charge of yet another commercial airliner that was headed to the White House, Washington DC but it crashed in Pennsylvania at 10.10am after the terrorists were overpowered by passengers. It is believed that the perpetrators were involved in a holy act aimed at killing as many westerners as possible considered to be enemies. The then President George W. Bush was shuttled around the country due to security concerns and was only back to the White House at about 7pm and addressed the nation and indeed the world at 9pm to restore confidence in America’s sovereignty. Operation Enduring Freedom was hatched to oust Taliban regime and destroy the terrorist network of Osama (Bodden, 2007). Arrival of first responders Immediately the World Trade Center, WTC was attacked, there was a concentrated response by emergency services. According to Flood (2011), over 100 emergency medical service, EMS units together with many dozens of private ambulances arrived at the site, setting up triage centers from where the injured would be ferried to hospitals. Over 2,000 Port Authority and NYPD police officers enforced security in the area, ransacked the twin towers and assisted in rescuing survivors. Being a five-alarm fire situation, 214 FDNY units, much more than the required 44 units responded to the emergency with 58 ladder trucks, 112 engines, seve n squad companies, five rescue companies, dozens of chiefs, four marine units and massive support, communication and command units. Unfortunately, many of these first responders were also killed in the process. Why the Attacks? The question of what caused the 9/11 attacks remains elusive but has been largely attributed to the failed foreign policy as was applied in the Middle East. According to Bodden (2007) and Seessel (2003), the US had attracted hostility due to its support for Israel, a Jewish state, to be established and sustained. The Palestinians had for over 60 years raised their plight of being homeless and brutalized but no one, not even the US paid attention to their woes. This support for Israel caused anger among Islamic nations thus causing the radical Islamists to call for the withdrawal of the US from the region. Other initiators of the attacks have been cited as the presence of US troops in Saudi Arabia and the economic sanctions that were imposed against Iraq in 19 90. Therefore, Islamic fundamentalists called on supporters of radical Islam to declare war against the government and citizens of the US.

Tata Steel Marketing Strategy

Tata Steel Marketing Strategy In this report, Tata Steel Group (Tata Steel) has been chosen as an organisation to analyze the strategic changes made over past five years including strategic positioning, strategic capability, SWOT and drivers behind these changes. Tata Steel currently is a major player in global steel industry. In year 2005 (Figure 1), Tata Steel operation was mainly focused in Indian subcontinent and revenue generated was close to US$ 5.0 billion only. However their initiative to expand their operations globally proved very successful over last five years. From being a mere local steel producer, they transformed themselves into a major global player in steel producers (Figure 2). They have been aggressively involved in capacity expansion by acquisitions and organic growth. Business Standard once commented that Tata Steel moved into its next target to become the worlds second largest steel company by 2012 with the help of its most expensive bet worth US$ 12.9 billion on Corus Group. Last two years has been very difficult period to global steel industry because of worldwide recession. The global crude steel production for year 2009 was 1220.0 mpta (million tonne per annum) as reported by World Steel Association lower by 8% against that of 2008. The decline in demand was due to deterioration in economy experienced by key steel end users. Table 1, shows the growth/decline in terms of crude steel production for the top ten steel producing nations. However, by acquisition of Corus and other assets, Tata Steel now ranks among worlds top ten (Table 2) largest steel producers with current steel production capacity of 32.0 mpta. After five years of its expansion programme, Tata Steel is now worlds second most geographically diversified steel producers. Mission Statement In its mission statement Tata Steel expresses that while honesty and integrity are the essential ingredient of a strong and stable enterprise, profitability provides the main spark for economic activity. Founded way back in 1907, Tata Steel stress on their core ideology in its vision statement by making emphasis on their people, supplier of choice, innovative approach and their conduct. Tata Steels vision statement is now became a tangible asset, which provide right direction to their managers and employees. Tata Steel has highly skilled employee asset of 81,000 spread over five continents. Tata Steel stress on creating differential value for their customer with help of continuous improvement in their business process and product technology. Value Chain Analysis The value chain is an economic tool used to determine the strategic resources available to a company. Basic principle of the Value Chain Analysis is that the basis for a competitive advantage of a firm lies primarily in the application of the bundle of valuable resources at the firms disposal. To transform a short-run competitive advantage into a sustained competitive advantage requires that these resources are heterogeneous in nature and not perfectly mobile (Barney, 1991, p105-106; Peteraf, 1993, p180). Effectively, this translates into valuable resources that are neither perfectly imitable nor substitutable without great effort (Barney, 1991, p117). Tata Steel has few major strategic capabilities which are valuable, unique and non-substitutable. Tata Steels Strategic Capabilities Tata Steels strategic capabilities are presented in Table 3, below. Table 3 ÂÂ   Resources Competences Threshold Capabilities Threshold Resources Threshold Competences Steel production plants at various geographical locations. Production and Sales management. Offices and buildings at various geographical locations. All other general management skills. Sufficient supply of raw materials for steel making. Sophisticated IT skills. Sufficient cash flow. Safety management. Pool of skilled personnel. Excellent customer service. IT System in place. Efficient management structure. Logistic, freight and shipment facilities. Effective employee welfare system. Capabilities for Competitive Advantage Unique Resources Unique Competences Varieties of products which caters to industries like Infrastructures, Automobiles, Aviation, Energy etc. Very competent sales team with high negotiation skills which create market for their products. Tata and Corus brands. Excellent use of IT systems for very effective use in sales process. Highly capable management team. Continuous developing and upgrading new products to serve different industry levels. Online portal Metal junction for buyers. Highly skilled managers and directors who improve and support the company success. A century experience in steel making. Integrated supplier and buyer management. Strong financial backing from group. Lowest cost steel producer in world. Very strong presence in India which is a big market for their products. Enterprise Risk Management (ERM) to eliminate risk associated with various processes. First mover advantage through innovative products processes. Continuous Improvement Process (CIP). Excellent RD for cutting edge technology and products. Operational efficiency and excellent quality control. Many proprietary products such as Tata Tiscon etc. Long-term relationship with buyers and suppliers. Porters Five Forces Analysis Tata Steel has registered double digit growth in past few years except their European business. By applying Porters Five Forces analysis principal, we can evaluate the Tata Steels market competitiveness and its current and future strategy towards intense competition faced at various fronts. Threat of New Entrants: Low Threat to new entrants in any industry sector is a major challenge. However in steel industry entry barrier is high hence threat of new entrants are relatively low based on factors such as huge capital investment, economies of scale, government policies and product differentiations. Steel industry requires huge capital investment to set up an integrated steel production facility plant which is currently close to US$ one billion/mtpa as per Steel Manufacturers Associations recent estimate. This deters any new entrants entering in this field. By increasing their production capacity to 50mtpa and wide variety of products they can lower their cost, hence more profit, sustainability and these conditions are unfavourable to any new entrants. Raw material is a major issue with corruption related to mining allocation and land acquisition, it makes difficult to new entrants to come in this field. Various regulatory clearance and environmental issues also pose big barriers to new entrants. Entry barriers in terms of product differentiation are very low in steel industry. Competitive Rivalry: High The steel industry is truly global in terms of competition with large steel producing countries like China significantly influencing global prices through their aggressive exports. In steel industry, branding is not very common hence little differentiation exists between their competing products. Tata Steel faces stiff competition with their competitors such as Arcelor Mittal, POSCO etc. Bargaining Power of Suppliers: High Tata Steel enjoys greater autonomy in raw materials supply as they own mines for raw material supply. Tata Steels fully integrated supply chain system keeps abundant supply of raw material for their plants. However, other steel producers, who dont have their own mines, have to rely on raw material suppliers. On global level raw material market is dominated by the three mining giants BHP Billiton, CVRD and Rio Tinto. They make mineral market as oligopolistic and supply two-thirds of the processed iron ore to steel producers hence command very high bargaining power. Other steel producers, who dont have their own mining operations, must buy raw material at market prevailing price and pass that hike to consumers which makes them less competitive. Threat of Substitute Products: Low New materials may pose threat to viability of steel. Aluminium, plastics and other composite materials are being considered as substitute in sectors like auto, aviation etc. Concrete is another substitute material that may pose threat to use of steel in infrastructure and energy sectors. Some of the substitute materials such as aluminium itself are very costly, hence doesnt pose very big threat against steel producers. However the growth led by infrastructure sector, automobile sector, aviation sector and consumable goods will keep demand up for steel hence more growth for Tata Steel. Bargaining Power of Buyers: Average Bargaining power of buyers is very limited due to their fragmentation. Big players of the major steel consumers in sectors such as auto, aviation, energy etc may squeeze greater amount of bargain. On the other hand these bulk consumers may offer long term procurement offer to the company hence more revenue generated. However, small and retail consumers are scattered, though they consume significant amount of steel production, dont have the same bargaining powers as in case of big players. Tata Steel Group SWOT Analysis SWOT analysis of any firm provides knowledge about the challenges and opportunities faced by Tata Steel group in future. They are detailed below. (S)trengths Tata Steel has acquired vast mineral reserves which is a key to their operations. These reserves can cater their raw material demand for next three decades. Tata Steels mineral reserves are located at various strategic geographical locations such as India, Australia, Canada, Mozambique, Oman, Ivory Coast etc. Tata Steel has very capable, credible and reliable top management. Their successful global expansion plan in last five years proved this. Tata Steel has successfully acquired and integrated Corus Europe, NatSteel Indonesia and Millennium Steel Thailand. Tata Steel uses custom made state of art integrated information management system for their routine operation. Their advanced RD capability has improved further by acquiring Corus which is world renowned for its product innovation. Tata Steel uses Tata Groups strong distribution and retail network. Its Groups demand for steel is very high due to their presence in most of the sectors. Currently Tata Steel produces 32 mpta of steel and by completion of DPCL project its total capacity will reach to 50mpta which will make it second biggest steel producer in world. Tata Steel has structured risk management process in place in their operation known as Enterprise Risk Management (ERM). ERMs key function is to identify risk at every level and mitigate the same. Tata Steel mitigates very well the cyclicality situation which occurs in steel industry occasionally by its broad spectrum of its product portfolio. Tata Steel expansion plan has consolidated its position worldwide and by diversifying its portfolio and market is in process to become a pioneer in steel industry. Tata Steel has very strong brand value for its products. This has strengthened further by acquiring Corus which itself is a big brand. Their successful integration with Corus was a benchmark in corporate history. (W)eaknesses Tata Steels substantial debt burden of US$9.8 billion is a major weakness. Their debt equity ratio is currently 1.77, which reflects company finances are met by debt due to Corus acquisition. Its European business (Corus) has a high exposure to spot price and a high operational gearing thus creating very high risk of price volatility. Tata Steel relies for some raw material on international suppliers, which expose their profitability in case of steep rise in their prices. Tata Steels Indian operation is very much hampered by lack of infrastructure, shortage in power supply, lesser productivity, bureaucratic hurdle in export etc. Additional levies and tax imposed by local government put them in less profit making situation. The subsidies provided by some nations (China etc) will make their product less competitive in price hence reduce their demand. (O)pportunities Currently the emerging economies are undergoing huge infrastructural developments, which require significant amount of steel in all sectors. In India the scope for expansion of its steel products are enormous in every sector, which Tata Steel can exploit very well with its increased production capacity. As per World Steel Association estimate, the consumption of steel will be doubled in next two decades. By Acquiring Corus and improving its own RD activities, Tata Steel moved towards a better product differentiation and enhanced product portfolio which provide them new opportunities over its competitors. Their geographical locations with integrated operations and marketing strategy are a key factor in capturing market share and increasing their financial performance. They can implement Coruss advanced automation technology in their own plants to improve productivity, economies of scale, cost reduction, increased output and operational efficiency to achieve better performance. Following recent recession, various assets (minerals, plants facilities etc.) are available at a very low price due to their financial difficulty. Tata Steel, with strong backing from its parent group can secure future supplies of raw materials for steel making. With increased steel production capacity of 50 mpta, they will be the second largest steel manufacturer after Arcelor Mittal and most geographically diversified company with wide variety of product mix. (T)hreats Steel Industry is major source of greenhouse gas emission, which makes them very vulnerable against many litigation and legislation in future. The raw materials used in steel production are non-renewable and their source is depleting very fast. Due to rising cost of steel products, the end users are looking for substitutes of steel; which can be a major threat to Tata Steels business. Intense competition among international steel player and cheap steel available from China are another major threat to Tata Steels performance. Tata Steels huge debt is one of major threats against them. The rising interest will increase their debt burden. Future Outlook Following two years of worst global economic downturn, the world seems to be regaining some economic stability. There is moderate growth from developed world; however emerging economies are registering very strong and sustainable growth with robust domestic market. Before recession, the steel demand was very strong with over 6% growth during last decade; this is primarily driven by robust growth in BRICS nations (Brazil, Russia, India, China and South Africa), South East Asia and Middle East. By 2025, as per forecast BRICS countries will have 46% of global population and will consume 65% of the global production and will have three quarter of the global GDP. The raw materials for steel making are going at record due to high demand, higher freight rates and monopoly of three big natural resources companies. The effects of the above factors are reflected in higher steel price and decrease in profit margin of steel companies. However Tata Steels strategy adopted over last five years for securing long term contract for raw materials supply or acquiring new raw material mines at various geographical location has helped them to keep their prices competitive and making whole operation as viable. Tata Steels integration with Corus has completed successfully and producing better result than expected. Tata Steels strategic effort of capacity expansion and effort to secure raw materials source at various geographical locations yielding positive results. Tata Steels upstream integration process ambition will lead them to achieve 100% self-sufficiency in India and around 50% self-sufficiency in Europe in next 5 years. Tata Steel is investing heavily in RD to get breakthrough technologies and develop new products and services that reduce the production cost and environmental impact over the product lifecycle. To improve its processes, priority is given to energy conservation schemes; in technology break-through such as Ultra Low Carbon Steel making and in other innovative projects where the Group has proprietary technology. Conclusions It was the best of times, it was the worst of times, this famous quote meant a lot to Tata Steel. Five year back, just after starting of their ambitious global expansion plan, they were hit by worldwide financial tsunami which tested their resilience. Their well formulated and proved business strategy has shown resilience and ability to withstand the unprecedented highs and lows of a future that often comes unheralded. They have taken proactive initiative across all geographies to minimise aftermath shock of recession. Their strategy began to pay off towards the last quarter of year 2009, when they rebounded to profit after the turmoil of recession. Undeterred by the economic turbulence, the Company continued to place emphasis on working practices in health, safety and corporate citizenship, with specific initiatives taken in all these areas. In addition, a continued focus on engineering solutions for customers is helping it maintain its position of a product pioneer. Tata Steel believes in staying alert to future opportunities while never letting go of its core values. This is the philosophy that has underpinned its growth over the years and one that remains its key driving force. The strategy adopted by Tata Steel during last five years to become a global player paid off. They increased their revenue and production by six fold by capacity expansion or acquisition. They achieved raw material self-sufficiency of 50% by year 2010 and by year 2012 they aim to increase it to 60% by more investment in mines acquisition. In last five years Tata Steel became a global player from a local steel producer with currently global presence in 50 markets and manufacturing operations in 26 countries. Appendix A: Reference List Tata Steel Group Annual Report 2009-10 G Johnson, K Scholes R Whittington (2008), Exploring Corporate Strategy, 8th Edition Text Cases, Harlow: Financial Times Prentice Hall http://www.tatasteel.com Barney, J. 1991. Firm Resources and sustained competitive advantage, Journal of Management, 17 (1): pp99-120. Barney, J.1995. Looking inside for competitive advantage, Academy of Management Executive. 9(4). Pp49-61. Peteraf, M. A. (1993). The cornerstones of competitive advantage: A resource-based view, Strategic Management Journal, 14 (3), 179-191 Porter, M.E. (2008). The five competitive forces that shape strategy, Harvard Business Review, January, 78-93. Porter, M.E. (1996). What is Strategy? Harvard Business Review, Nov-Dec, 61-78.

The King Must Die: Is Theseus To Perfect To Be A Human Being? Essay

The King Must Die: Is Theseus to Perfect to be a Human Being?   Ã‚  Ã‚  Ã‚  Ã‚  To be considered a human being one must be subject to or indicative of the weakness, imperfections, and fragility associated with human beings. This definition separates us from any lower being, or for this book's concern separates us from any higher being. Theseus had endured a life that during some times showed to be like that of any human. Yet, there were numerous occasions that proved Theseus to be not of human flesh and blood, but that of a god.   Ã‚  Ã‚  Ã‚  Ã‚  The most compelling event of the book, in my mind, that would define Theseus to be more than a human being took place under the strength of the Isthmus' current between Athens and Troizen. Theseus was losing strength and falling deeper into his coffin. Theseus had not sooner lost the struggle against the angry current as Poseidon lifted his body, in an invisible form, and carried him to shore safely. Theseus had been looking for a sign from a god. He had been looking for one all his life. When he was old enough his mother told him that he could have been born of a Greek god. Voluntarily or not, his life would become a search for the truth. This sign proved him to be more than human.   Ã‚  Ã‚  Ã‚  Ã‚  A hard challenge was brought onto to a younger Theseus' shoulders when he worked under his grandfather at the tender age of eight. Theseus was to teach the inner workings of his job that was soon ...

PepsiCo restaurants Essay

I. Introduction The key question is whether PepsiCo should expand its restaurant business by pursuing the purchase of CARTS OF COLORADO, a $7 million manufacturer and merchandiser of mobile food carts and kiosks, and CALIFORNIA PIZZA KITCHEN, a $34 million restaurant chain in the casual dining segment. II. Analysis of the main problemPepsiCo has 3 main segments: soft drinks (35% of PepsiCo’s sales and 39% of its operating profits in 1991), snack foods (29% of PepsiCo’s sales and 35% of its operating profits) and restaurants (36% of PepsiCo’s sales and 26% of its operating profits). In the early 1990’s PepsiCo’s three restaurant chains (KFC, Taco Bell and Pizza Hut) were the leaders in their respective segment. PepsiCo’s senior management believes its ability to move people within and across divisions gives PepsiCo a competitive advantage in the restaurant segment. PepsiCo believes their restaurants perform due to their strong management teams; which are developed within the corporation. PepsiCo would like to utilize their competitive advantage in running restaurants with PepsiCo managers by adding California Pizza Kitchen and CARTS OF COLORADO to the PepsiCo portfolio. Despite PepsiCo’s success with KFC, Taco Bell and Pizza Hut it had difficulty expanding La Petite Boulangerie, a three-unit bakery chain it purchased in 1982. The large overhead for La Petite Boulangerie made the company unprofitable and Pepsi sold it in 1987 for a $13 million loss. The unsuccessful venture into La Petite Boulangerie suggested that although PepsiCo managers were gifted and could be easily moved across divisions; the moves would not always guarantees a successful business expansion. Therefore, the main problem for PepsiCo management is to decide whether it can successfully purchase and administer CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO. This is in light of the fact that PepsiCo believes it has a competitive advantage in the skillfulness of its managers that was not borne out in the unsuccessful La Petite Boulangerie bakery endeavor. III. Recommendations PepsiCo can be categorized as a related diversifier. Approximately 30% of its revenue is split between its 3 main industrial  categories. PepsiCo’s business units share common resources and skills. Historically companies that take a corporate strategy of related diversification perform the best (GBS_634M lecture notes). Therefore on the surface it would appear that diversification by acquiring CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO would be an excellent strategic decision. However, in arguments described below; the evidence does not support a recommendation for PepsiCo to purchase Carts of Colorado or CALIFORNIA PIZZA KITCHEN. IV. Justification for recommendations PepsiCo is a lucrative company and therefore does not need to diversify into CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO to maintain it profitability. From 1987-1991 PepsiCo’s sales doubled, income from continuing operations grew at a compound rate of more than 20%, and the company’s value on the stock market tripled (PepsiCo restaurant Case, pg. 4, and Exhibit 3). Eight key reasons NOT to diversify into CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO. It is poor rationale for PepsiCo to diversify into CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO simply to reduce risk. The restaurant business is cyclical. Some restaurants will be profitable, while some will not be profitable. PepsiCo’s shareholders can diversify risk by purchasing shares in CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO themselves. Furthermore, it is not an appropriate strategy for PepsiCo management to over-diversify to protect their personal wealth. Maintaining growth is not a good basis to diversify into CALIFORNIA PIZZA KITCHEN or CARTS OF COLORADO. Most shareholders would rather hold shares in a small profitable company, not a big unprofitable company. As a shareholder, there is only a benefit if PepsiCo makes a profit. Currently PepsiCo is making a profit. Although managers benefit from growth regardless of profit or loss , growth for the sake of growth is not an appropriate reason to diversify. Although PepsiCo can use CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO to balance cash flow by funneling cash from its large business units to the smaller CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO business units; this is not recommended. Even thought PepsiCo has the capability of doing this an individual shareholder can do this for himself. The counterargument would be that PepsiCo managers can do a better job balancing cash flow than shareholders because the corporation can be more tax efficient than the individual shareholder. But this alone is not a sufficient reason to diversify. The acquisition of CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO will not create synergy within the PepsiCo corporate strategy. PepsiCo already has a Pizza segment (i.e. Pizza Hut) and does not have experience in the mobile food cart segment. Diversifying into these two market segments will not produce corporate synergy where the whole is greater than the sum of the parts. One good reason for PepsiCo to diversity into CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO is the sharing of infrastructure and to create economies of scope. PepsiCo is currently saving money because they are competing in several different industries (ie. Soft drinks, snack foods, and restaurants). These business units share the support structure and therefore the reduced costs. While Pepsi’s economy of scope can be used to distribute chips just as well as soft drinks it is not apparent that they can deliver well in the niche restaurant market like CALIFORNIA PIZZA KITCHEN (refer back to La Petite Boulangerie misfortune). If PepsiCo were to sell two or more different products simultaneously that would be beneficial by creating an economy of scope. For example, if PepsiCo could distribute Pepsi soft drinks and California Pizza from a cart they would have justification for the acquisition of CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO because they would be sharing common infrastructure that would make them unique. The uniqueness would make it very difficult for competitors to imitate and would be a reason to diversify. But there are currently no mechanisms to sell California Pizza’s from a cart. Therefore at this time, sharing of  infrastructure is not a good justification for PepsiCo to diversify into these two markets. It is not apparent that PepsiCo will increase its market power if they acquire CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO. PepsiCo already has multiple business units that buy from the same set of suppliers and sell to same set of customers. They have used this to gain market power. It is not apparent that adding CALIFORNIA PIZZA KITCHEN or CARTS OF COLORADO to the fold will increase PepsiCo’s market share significantly. It could be argued that by acquiring CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO PepsiCo is exploiting core competence. Although this is generally a good reason to diversify by generating more revenue opportunity and competing in several markets; this is not a good initiative for PepsiCo in the situation with CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO. In order to exploit core competencies, PepsiCo’s business units must be related, so they share the same set of skills. In order for this strategy to be successful, the benefits to PepsiCo have to be unavailable to PepsiCo’s competitors. If PepsiCo’s competitors can gain the same advantage, then PepsiCo will not have a strategic benefit. Although the Colorado Carts are unique, they can be duplicated by the competition (e.g. California Carts, All-Star Carts, Creative Mobile systems). With regards to CALIFORNIA PIZZA KITCHEN, other pizza restaurants can reproduce the unique flavors and styles of pizza. Therefore, PepsiCo will not be exploiting its core competence and should not diversify. If PepsiCo is contemplating CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO as good ‘turnaround projects’ then this is not a justification for diversification. CALIFORNIA PIZZA KITCHEN is a profitable company. CALIFORNIA PIZZA KITCHEN has increased both sales and net income from 1990 to 1991. CARTS OF COLORADO has also shown an increase in sales and operating income from 1985-1991. The management teams of both companies appear to be performing well. Therefore the ‘turnaround’ potential is not a good reason to diversify. CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO do not fit into the PepsiCo Corporate strategyWhere does PepsiCo compete?There may be a market opportunity for PepsiCo in the acquisition of CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO, but that does not necessarily imply that PepsiCo should take the opportunity. The overall scope of PepsiCo is on convenient foods and beverages. The acquisition of CARTS OF COLORADO would certainly be in-line with PepsiCo’s focus of providing foods and beverages at well-situated locations. However, PepsiCo does not have experience in the placement of mobile food carts and therefore PepsiCo would be at a disadvantage to those more experienced in the mobile cart business. There is even less evidence for a distinctive market opportunity for PepsiCo with the acquisition of CALIFORNIA PIZZA KITCHEN. PepsiCo already owns Pizza Hut and therefore has a place in the dine-in and take-out pizza business. Although CALIFORNIA PIZZA KITCHEN is suited for more upscale markets with unique flavors and tastes, Pizza Hut could introduce similar unique flavors and tastes. In addition Pizza Hut has stores across the United States and internationally, while CALIFORNIA PIZZA KITCHEN has a limited geographic scope. It currently operates only 25 restaurants in eight states (PepsiCo case, pg. 15). The offbeat pizzas may not sell well across the United States and internationally. For example, jerk-chicken pizza may sell very well in Beverly Hills, CA but not sell well in Peoria, Illinois or Duesseldorf, Germany. How does PepsiCo compete?PepsiCo’s corporate strategy allows for transfer of resources (i.e. managers) across their business units. PepsiCo’s philosophy is â€Å"We take eagles and teach them to fly in formation† (PepsiCo case, pg. 3). Therefore PepsiCo may have a strategic advantage by transferring managers from one of its current business units to CALIFORNIA PIZZA KITCHEN or CARTS OF COLORADO. For example, one manager could transfer her knowledge from a position at Pizza Hut to CALIFORNIA PIZZA KITCHEN relatively transparently; although it may be more difficult to transfer knowledge from Pizza Hut to the food carts and kiosks; the business of Colorado Carts. PepsiCo does transfers resources which fit well with the CARTS OF COLORADO  enterprise. PepsiCo can place a Cart outside a shopping mall on the street selling food. At some carts PepsiCo could offer KFC or Taco Bell while offering a Pepsi soft drink; maybe put forward some Frito lays chips. But this strategy does not fit well with the idea of the upscale CALIFORNIA PIZZA KITCHEN being directly near a KFC or Taco Bell in a mega-mall food court. How does PepsiCo execute?PepsiCo, although a very large corporate office, has an execution strategy in which they let the managers go at their own pace. They have a ‘decentralized organization’ (PepsiCo case pg. 4). PepsiCo managers are rewarded on a two-phase system; reporting performance first to direct managers then to upper level managers. In order to be promoted managers of CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO would have to perform very well relative to all of the remaining PepsiCo restaurants. Because all of the other PepsiCo restaurants are at the top of their respective segments it will be a challenge for managers of CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO to surpass other PepsiCo business units. Therefore the managers will not be incentivized as well managing CALIFORNIA PIZZA KITCHEN or CARTS OF COLORADO. Therefore, diversifying into California Pizza Kitchen and CARTS OF COLORADO is not copasetic with the PepsiCo corporate strategy. V. Summary. The acquisition of CARTS OF COLORADO and CALIFORNIA PIZZA KITCHEN will not lead toward the fulfillment of PepsiCo’s mission which is â€Å"To be the world’s premier consumer products company focused on convenient foods and beverages and seeks to produce healthy financial rewards to investors as they provide opportunities for growth and enrichment to their employees, their business partners and the communities in which they operate. And in everything they do, to strive for honesty, fairness and integrity.† (http://www.pepsico.com/PEP_Company/Overview/index.cfm)PepsiCo’s management should take the â€Å"guilty until proven innocent† approach and not diversify into these two business segments. As described in the preceding paragraphs  at this time there is not sufficient and convincing evidence to support the need for diversification into CALIFORNIA PIZZA KITCHEN or CARTS OF COLORADO. References: 1. http://www.pepsico.com/PEP_Company/Overview/index.cfm2. www.cpk.com3. PepsiCo restaurants. HBS 9-794-078

European Colonists and Their Viciousness Essay

William Penn was one example of a leading colonist that maintained good relations with the Native Americans. There were other leaders that did likewise. However, most of the European colonists didn’t follow this pattern as John Winthrop or Hernando Cortez. These leaders mistreated the Native Americans and used them like objects. One of the reasons that made some Europeans abuse of the Native Americans was that they didn’t think of the Native Americans as humans but more as animals or savages. Therefore, they thought they could do anything of them and even kill them if they needed to. That was true for the English colonists who saw the Native Americans the same way they saw the Irish. For this reason, they would exploit them and use them as slaves. They even destroyed their villages and kidnapped their children for vengeance. One thing that the English colonists didn’t do that differentiated them from the Spaniards was that they didn’t reproduce with the Native Americans because they saw it as reproducing with an animal. Yet, this wasn’t the only reason of this behavior among the Native Americans. Another reason for which the colonists took advantage of the Native Americans was power. At this time, power was very important for everybody. The amount of power you had leaded your life. Of course, when someone had power, he always wanted more and that was so for the kings and queens. When Christopher Columbus told Queen Isabella that the Tainos were weak, innocent and that it would be easy to control them, the queen saw a good opportunity of expanding her power in America and improving her wealth. She decided that she would make slaves out of the Native Americans and that she would impose them her religion. Of course anyone who would resist would be killed. This is how slavery started in America. Another cause of this behavior was gold. Multiple trips to America had for goal to find gold. The European colonists thought that, now that they found this new land, they would be able to reap the benefits of the gold resting on it. However, when the colonists arrived, the Native Americans were already there with the gold. But the colonists had evil interests; once they saw gold, they would be able to do anything to get it. That is what happened with the â€Å"conquistador† Hernando Cortez and his army when they arrived to Tenochtitlan, the Aztecs’ capital. When they saw this city, they got bewitched by the gold used to build it. This obsession led to the revolution of the Aztecs against the â€Å"conquistadores†. The battle ended with most of the Aztecs killed including their chief. The last source of the colonists’ viciousness was their territories. When America was first discovered by Christopher Columbus, all the European countries fought to extend their lands. However, the Native Americans were an obstacle for the expansion of their colonization. The countries thought that the lands belonged to all different tribes of Native Americans. Therefore, the only way to get the lands was to take over the Native Americans and take possessions of their lands. This is again an example of Hernando Cortez’s conquest of America for Spain. When he arrived in America, Hernando killed every Native American tribe he found on his way to then claim their lands to Spain. The only reason he didn’t kill some of them was to have better chances to defeat the Aztecs. But Cortez wasn’t the only colonist to do this to Native Americans and some might have been even crueler than he had. In conclusion, the Europeans didn’t follow the pattern of good relations with Native Americans as William Penn and other European leaders because of dehumanization, power, gold and land. These are the four facts that most of the European colonists thought were worth killing a very important amount of innocent people and that caused them to offer viciousness instead of kindness to the Native Americans who hadn’t done anything wrong to them.