Business Level Strategy In The Market Commerce Essay

Business Level Strategy In The Market Commerce Essay Business level strategy concentrates on developing a firm specific model that will allow the firm to gain competitive advantage over its rivals in the industry such as in which it operates. Business strategy would focus on improving its competitive position of a companys or business units products within the specific industry or market segment that the company and/ or its business units serve. The question explored in business level strategy is: How a company can best be competed in the industry that they are in? For an example Honda motors, Japan has a domestic market for its products and also it operates internationally. Thus business strategy should be crafted focussing on the ways of how it out beat the domestic competitors who operates both in the domestic market and as well as the in the international market like Mazda, Mitsubishi, Daihatsu, Suzuki, Toyota and Nissan and competitors in the international market like General motors, Chrysler, Ford Motors etc. In formulating business level strategies, firm should consider how best it can compete in each of the industries it operates in. Thus business level strategies require crafting the strategy and positioning the firm in each of its business. For an example Honda should formulate a separate business strategy for its motor cycle production section that attempts to add build competitive advantage over rival, motorcycle manufacturers. And there should be another business level strategy for its auto mobile manufacturing division that addresses the ways and means of competing against rival automobile manufacturers and a separate strategy for power products (engines, portable generators, lawnmowers, outbound motors) manufacturing division that attempts to build competitive advantage over power product manufacturers in the industry. Corporate Level Strategy Corporate strategy is to a firms survival and success and it is largely about the choice of the direction for the firm as a whole. I.e. Corporate level strategy describes companys overall direction in terms of its general attitude towards growth and the management of its various business and product lines. Corporate strategy is concerned with two key questions, What business should the company be in to maximize the long term profitability of the organisation? What strategies should it use to enter into and exist from the business area? This is true whether the firm is a small, one product company or a large multi national corporation. Corporate strategy in a multinational company is all about managing various product lines and business units for maximum value. In this instance, corporate head quarters must play the role of the organisational Parent in that it must deal with various products and business unit Children. Even though each product line or business unit has its own competitive or corporative strategy that it uses to obtain its competitive advantage in the market place, the corporation must coordinate these different business strategies in order to be succeeded. For an example Honda Motors, even though there are various competitive or corporative business strategies at various business unit levels, it is the top management that decides the overall direction and goals for the entire organisation. i.e. even though there are several business segments as motor cycle manufacturing, auto mobile manufacturing and power product manufacturing and different competitive or corporative strategies adopted by each of these segments at business level, corporate level strategy for each of these segments all the same. Critically evaluate the process of reconciling dichotomies at Honda Motors with reference to the product-related core competencies versus process -related core capabilities dichotomy. Hondas underlying innovative strategic management process is described as reconciling dichotomies There can be seen number of dichotomies that encompasses management thinking and pass through all the functions and as well as aspects such as buyer supplier relations (e.g. Vertical integration and market relations), work organisation, (efficient and humane), product development processes (simultaneous and sequential development), business strategy (cost and differentiation) etc. These are concerned as paradoxes that should be solved implicitly by the west where as Hondas way of thinking is very different. A dichotomy reconciliation approach exemplifies both the philosophy behind the actual product design and the mental process of technology research. When considering about the product related core competencies in Honda, its adherence to the principle of build in quality has brings forth the competitive advantage to Honda. The build-in quality principle focuses on ensuring the effectiveness of the performance outcome of sub transformation activities. The measure of effectiveness is customer defined standards of performance that can be achieved by breaking down the total standard of performance measures as expected by the customers to number of sub activities where value adding can be realized at every stage of the process in a way that it gives a bigger accrued value by the time of operations process reaches its end. This leads to a reduction in costs and as well as exceed expectations of the customers. In that sense build in quality principle highly emphasis regarding product related capabilities which are measured by the customers eventually. The advance internal combustion engines which power the entire range of Honda products is being regarded as a core competency, which is also a successful reconciliation of dichotomies, deliver direct and immediate competitive advantage for Honda. The right-the-first principle constitute that the result of any process should be free of errors. An error occurred in a particular task necessitate re-working on it before it passed on to next stage of the production process, which may resulted in delaying the entire production process and as well as increasing the operational costs, costs of lost opportunities of sales earned from customers who prefer not to wait and switch to other brands. As such right- the- first principle adopted by Honda, will enhance its operational efficiency by not wasting time and other resources by increasing productivity. More over its introduction of Just In Time production and logistic system leads to more accurate inventory control that save cost further. It can be pointed out as a dichotomy reconciliation that permits both product variety and productive efficiency. Western flawed assumption of management thinking was that the right-first time and the build-in quality is only a dichotomy that takes places only if a substitution of getting the benefits from one at the disbursement of the other is assumed as it is viewed only from a manufacturers perspective, which has to be at least concentrated from a dual perspective, the manufacturer and the customer. If it should be considered from a multiple perspective, taking all partners in the supply chain in to account. Doing things right the first time is a cost savings approach as it helps to eliminate waste and reduce the necessity of reworking. Lower operating costs can transform into higher margins, which will be helpful in attracting customers by offering them the products at a reasonable price and it too will avoid customers from switching to rival brands. Customers not judged a product by concerning only on its quality, but its entire combination that brings forth the benefits and there fore value to them. Thus the features and attributes like delivery time and cost of purchase and ownership are too considered up on. Quality is there fore both process and product dependent. For an example the value of high product quality because of its superior features, characteristics and attributes can be ignored by slow delivery times if things are not done right the first time. Through its wide array of management strategies Honda has shown that the notice of right- first time and build- in quality is not different in nature and does not exist in isolation but are rather similar and complementary processes if the pull strategy is adopted placing customers ahead of else. Question Two: Global Mergers and Acquisitions (MA) Too much Debt and Risk of Bankruptcy Mergers and acquisitions have been the focus of corporate strategies over the last few decades, with an increasing number of mergers across the globe, especially in the automobile industry. A merger or acquisition is a combination of two companies where one corporation is completely absorbed by another corporation. The less important company loses its identity and becomes part of the more important corporation, which retains its identity. Mergers and acquisitions can occur for number of reasons. One such is to overcome too much debt or to avoid bankruptcy situations. Supplier bankruptcies make up the first wave of restructuring and the rate of bankruptcy fillings will continue to accelerate in the near term. As credit becomes more widely available and companies are able to safe and sound liquidity, there will be a wave of Mergers and acquisitions. If a particular company is undergoing enormous debts and finds it difficult to beat competition or even to survive in the industry, management may make a decision to go for a divesture. As a result company may sell out to another corporation or may go for a merger. If a company is suffering from a bankruptcy situation, perhaps it may come to a decision to move for a sell out strategy. Financially viable competitors in the same industry may interested in merging with or acquiring another corporation in the same industry even with huge debts or under a bankruptcy state if there is any potential advantage of merging or acquiring is witnessed. Some times it may be because of the companys ability to produce goods efficiently if they combined their efforts and facilities. These efficiency gains may come simply by virtue of the size of the combined company; it may be cheaper to produce goods on a large scale. Collaborating or sharing expertise may achieve gains in efficiency, or a company might have underutilize assets that the other company can better use or else because of the technology or the brand image or any other unique attribute available to the bankrupt company. Through such merger or an acquisition, the company which suffered from financial difficulties will lessen its burden as it has the ability to overcome its debts as the change in the management may make the company more profitable Potential Product Synergies Automotive mergers and acquisitions act as means of increasing market share, improving reach attaining economies of scale and augmenting product ranges. Automotive mergers are turning into a strategic option for companies looking to accelerate growth. Through mergers or acquisitions companies intended to maximize synergies through their complementary strengths in product line-up, procurement, RD, marketing and personal training which would result in cost reductions, greater global market penetration and other benefits through corporation. As a result of a merger or an acquisition a corporation would get the access to up to the minute technology, a worldwide network and advanced managerial expertise. In addition substantial cost savings have been achieved through a common purchasing strategy and by setting up a common supplier base. Common platforms will be developed to reduce time for new product introduction. Achieving of synergies is the ideal sought in corporate mergers and acquisitions. Synergy refers to an increase in the level of performance of a combined enterprise that will exceed the previous individual performance when it was operated separately. For an example managerial economies such as the increased opportunity of managerial specialisation, technical economies such as technical know how, purchasing economies due to increased order size and associated bulk buying discounts. In automobile industry there are several synergies that can be achieved through mergers and acquisitions. For an example in 1990 Honda entered in to an agreement with Rover under which Honda acquired minority shareholding in Rover in order to begin European production of Honda Accord. And also once Honda rewind its formal relationships had with Rover, BMW acquired Rover Company from its parent company with the expectation of expanding its capacity from 600,000 to 800,000 by 1999 with 150,000 of these vehicles exported. Access to New Technologies and Emerging Markets Mergers and acquisitions bring forth several technology and platform sharing agreements, enabling companies to reduce product development time and costs. Further it will be helpful in stepping in to new markets Through mergers and acquisitions corporations will be able to obtain technology economies. I.e. Mergers and acquisitions will result in enhancing the level of technology sharing and utilisation than earlier. As such in automobile industry there can be seen major acquisitions or mergers. For an example in 1979 Honda Motor company signed technical collaboration with British Leyland (Now Rover Group), covering British Leyland production of Triumph Acclaim cars in the United Kingdom. It was a step taken to enter in to the European market and also to obtain the technology of Rover Group. As mentioned earlier, mergers and acquisitions can be seen as a way of entering into strange, emerging markets. Some countries in the emerging markets such as India, China, and Thailand are growing at a spectacular rate. Thus this amazing growth rates are attracting global automotive majors to these markets in increasing numbers. Companies are resorting to acquisitions or mergers to gain foothold in these markets due to certain cultural reasons or to accommodate differences in two cultures. Question Three: Corporate Social responsibilities Competitiveness Using information from relevant literature on Corporate Social Responsibility (CSR) and appropriate examples from global automotive makers and suppliers; explain the impact of CSR on organisational performance in both financial and non-financial areas Corporate Social Responsibility (CSR) has permeated management practice and theory up to a point where CSR can be referred to as the latest management fad (Guthey, Langer Morsing, 2006). However, so far CSR integration in to business processes has been very uneven. (Hockerts, 2008) CSR is also known as Corporate Citizenship, Responsible Business, Sustainable Responsible Business (SRB), or Corporate Social Performance. The concept of social responsibility proposes that a private corporation has responsibilities to society and also to the environment that extended beyond making a profit. It is a form of corporate self regulation integrated in to a business model that functions as a built-in, self-regulating mechanism whereby business would monitor and ensure its support to law, ethical standards, and international norms. Further more, CSR focused business would proactively uphold the public interest by heartening community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality. Essentially, CSR is the deliberate inclusion of public interest in to corporate decision making and the honouring of a triple bottom line; People, Planet, Profit. Where as People and Planet in the triple bottom line concept represents the non financial aspects that a firm should concentrates on when carrying out its business in addition to the financial aspect of making profits. The automobile industry at present faces challenges that extend beyond the framework of automotive technology, such as the prevention of global warming by committing to zero emissions as part of a concentrated effort toward issues concerning the global environment, eradication of wasted resources and environmental degradation through mass production, sales and disposal and the realization of fail safe transportation system. It is necessary for an organization, specially an automobile maker to be focused on preventing environmental destruction and damage when establishing its plants and as well as carrying out its manufacturing activities. A new evolution is required, where lean production can be implemented beyond the sphere of technological innovation to contribute to reforming distribution, logistics, recycling and as well as social systems. As such consumers expect automotive corporations to take an active role in the economic and social development of their country. Consumers across the world are very likely to accept or reject a corporation based on its reputation for social and environmental responsibility. CSR surveys indicate that consumers are more likely to purchase a product or a service from a corporation with responsible business practices and they would refrain from purchasing a product or service if the corporation failed to follow environmentally friendly or ethical business practices. Among the global automotive corporations BMW, Honda, Toyota and Volvo trucks ranked highest for corporate social responsibility. BMW rated highest in the Spain and as well as in Italy; Honda for United States, United Kingdom and Indonesia, Toyota for Japan, Korea and Thailand and Volvo trucks for Sweden and Netherlands. Remy Pothet, Global Director TNS Automotive, comments that Large corporations are increasingly aware that their social responsibility directly affects their image and brand equity and consequently, their business success. As such heavy investments in CSR can be seen in the markets where they are focusing on expansion. The result of our study highlights the publics growing interest in the field of CSR, and makes a direct link between this and their purchasing behaviour. Bonsi concludes, The general public is a very important stake holder for the automotive industry as a corporations reputation is often judged in the court of public opinion. Corporations that fail to engage society often suffer serious consequences when there is a crisis. However corporations that develop a strong public goodwill can use it as a social insurance to tide them over during difficult periods. The CSR champions identified by this study are already seeing the value in their investment; now other companies need to take notice. b) Compare and Contrast Japanese and Western strategic leadership models by reference to table 5 in the Honda case study. Explain which of the two models you prefer, and why? According to the management literature, there is a grand distinction between the western management style and Japanese management style in terms of overall description work processes, production organisation and logistic management techniques, organisation and labour relations etc. When concerning about the overall description western management model, Ford system of mass production which leads to standardisation and mass marketing is the fundamental paradigm for production systems in western countries that pays high attention on large lot , just in case production. Where as Japanese developed a different production system called Japanese production system or Just In Time (JIT), which is a flexible manufacturing system. A further development of this is also known as lean manufacturing. They adhered to the Pull strategy of marketing their products as oppose to the Push strategy of marketing adopted by the western countries. The significance of the Japanese manufacturing is it identified the ill effects of mass production with high volume of manufacturing that focuses sole attention towards economy of scale rather than cost reduction through elimination of wasted resources through streamlined production. JIT production and synchronized manufacturing that manufactured what, when, and how much was necessary and eliminated wasteful processes and stock. This was resulted in ending up of cycle of stockpiles and dissolved the rigidity of production where only existing products continued to be manufactured with existing technology. When concentrating the peculiarities between western and Japanese work processes, most of the western work processes were builds upon taylorism theory which emphasis the necessity of breaking down of every action, job or task in to small and simple segments that can be easily analyzed and taught. Accordingly western employees are deemed to be Do workers and most of them are unskilled thus they are expected to be performed in a way they thought, and merely the jobs or tasks assigned to them. But Japanese employees are deemed to be Think workers where they are expected to be innovative, polyvalent and flexible rather than merely executing an assigned job or a task. As such Japanese management model is more appropriate and suitable to todays complex business context due to above mentioned grounds. Conclusion First and fore mostly the report discussed about the business level strategy and the corporate level strategy in the global business context. It was compared and contrasted the business level strategies and the corporate strategies in the global automobile industry. Then it evaluated the process of reconciling dichotomies at Honda Motors with reference to the product-related core competencies versus process -related core capabilities dichotomy. Secondly it evaluated critically the impact of certain factors such as too much debt and risk of bankruptcy, potential product synergies, access to new technologies and emerging markets on Mergers and Acquisitions (MA) in the global automobile industry, using appropriate illustrations from the global automotive industry. In current business context Corporate Social Responsibility bears an important place. As such latter part of this report focuses on the corporate social responsibility and the competitiveness, using information from relevant literature on Corporate Social Responsibility (CSR) and appropriate examples from global automotive makers and suppliers. Further it discussed the impact of CSR on organisational performance in both financial and non-financial areas. Finally it was compared and contrasted the Japanese and Western strategic leadership models and suggested the Japanese strategic leadership model as the most appropriate model owing to the unique features and strengths identified in it with compared to Western strategic leadership model.

Starbucks Analysis

Economics of Starbucks CONTENTS A. Introduction B. Analysis economics of Starbucks 1. Nature of product/service 2. Market trends 3. Production/supply process and costs 4. Structure of the industry/market 5. Government role 6. Business environment 7. Firm/Industry Location 8. Business and pricing strategies 9. Entrepreneurial ability of managers C. Conclusion D. References Introduction Starbucks, what started in Seattle in 1971s by three friends: erry Baldwin, Zev Siegl, and Gordon Bowker. They opened a small shop and began selling fresh and cold coffee.Starbucks has always been a place where you can find world’s best coffee. In 1970s, Starbucks open its first coffee restaurant and its name comes from a classical American novel (Starbucks, 2013). Through 1980s, Howard Schultz came into Starbucks, after a business trip to Italy and impressed by coffee culture, his perception is that how to make it come true in U. S, he experimented from Seattle. In 1990s, Starbucks has expanded their production line beyond Seattle. Stepping cross the rest sates of U. S as well as international market.At the same time, Starbucks released its special option that offer stock option to employees, which made Starbucks become a public traded company. From 2000s, Starbucks continued its awesome phenomenon, its operation widespread over 15,000 locations over 40 countries. Classical Starbuck’s coffee beverage has been well recognized by lots of customers. Nowadays, Starbucks is not merely a successful coffee retailer; it is a coffee culture and place that people enjoy their lifetime. The nine main areas will give out an explanation how Starbucks looks like.Key word: Nature of product; Market Trends; Production/Supply Process & Cost; Structure of the Industry; Government Role; Business Environment; Firm/Industry Location; Business & Pricing Strategies and Entrepreneurial Ability of Manager. Analysis of the Economics of Starbucks Nature of Product Existing products: obviously, as a coffee related retailer, Starbucks mainly focus on coffee diversify selling. The main kinds of Starbucks coffee are latte, espresso, frappuccino as well as some sweet bakery, ice cream and so on.By the way, according to the idea of Starbucks itself, what they likely do that create a friendly drinks atmosphere rather than only sell a cup of coffee. Actually, customers really enjoyed their coffee time in Starbucks store thanks to cultural environment. What is more, Starbucks also provide coffee beans, coffee pot and coffee cup and other products. In the Chinese market localization of product design, and some tea kind, drink even has a particular season sales of Starbucks moon cakes, etc.Role of technology: Starbucks always try their best to improve well-roasted coffee beans, ground to perfection and then brewed to personal taste. The CEO released a statement that the company spends 20 years perfecting a top top-secret technology that ultimately results in a cup of coffee made wi th via, that is indistinguishable from Starbuck's typical brewed coffee (CNN money, 2009). In 2008, Starbucks purchased new coffee equipment that is called â€Å"clover†. The Clover uses precise technology and a calculated algorithm to brew coffee within one degree Fahrenheit of its ideal temperature and produce the ideal flavor (Chron, 2013).It also gives a control to interaction between water and grounds. What is more advancement, it could connect by Starbucks network in order to more effect management each unit. Product life cycle: generally, product life cycle is divided into four parts, introduce, growth, mature and decline. Every production has to walk through these four parts. According to Starbucks, with different coffee launched based on seasons, it is still located into growth period but close to mature step.Starbucks play its role in coffee industry similar like what monopolist do, its production occupied almost whole market share that should directed to mature sta ge, but new production occasional launched hold Starbucks to increase its sales volume. Price elasticity: The price elasticity of Starbucks is not very high. On one hand, coffee is necessary in daily life. On the other hand, Starbucks’ goodwill has been recognized among coffee fans, it is not matters of price. Substitutes and complementary products: coffee’s substitutes will be water, tea, mike or other fruit juice.When you step into Starbucks store, customer service is unchanged if you pick up juices even a bottle of water. Market Trends Consumer behavior: Starbucks hold approximately 33 percentage of market share in U. S. however, half of this huge number accounted by guys who aged at 25- 40(Chorn, 2013). Obviously, primary target audience of Starbucks is this grouped people. The characteristic of them is relatively high income, professional careers and a focus on social welfare. Motivation of consuming of these guys to Starbucks certainly for entertainment, enjoy li fe and pursuit of fashion and communication.The sub target customers is young adults who aged at 18-24, Starbucks position itself as a place college student can hang out, studying, writing paper and meeting. The rest customers of Starbucks are kids and teens who get there by their parents. Indifference curves: Indifference curve means products, which have different combine differently to satisfy customers. A simple indifference curve is shown in figure 1 For the coffee, at the same time, environment and music can satisfy customers. Coffee can satisfy customers’ taste sense, while environment can satisfy customers’ spirits.Starbucks can develop their own cup, coffee beans to improve efficiency. Shifts in demand and supply curves: With six factors influence demand curve: consumers' income, taste and preferences, consumer expectations, related product price, the government behavior and regulations and the number of consumers. Again, six factors influence supply, number of suppliers, prices of resources, technology, supply expected, price of all products and government actions. Particularly, Starbucks hold 33 percentage of U. S coffee market share, demand of Starbucks will increased, so demand will shift toward right side.Also, thousands of hundreds location established would satisfy these demand, supply curve move right side. Production/supply Process& cost Input: what Starbucks need do if it needs transforms quality coffee is inputting coffee bean, water, some capital investment as well as labor. Production function & Cost function: production function relates to the maximum quantity of output that can be produced from given amounts of input. A graph showed below about Starbucks production function. Figure 2: Retrieved from: http://faculty. washington. edu/ezivot/econ301/labor_demand. tm Apparently, as more and more labors putted into operating room, sales of Starbucks coffee increased. However, when increasing labor beyond quantity maximum, there is no increase on quantity. Marginal analysis: marginal analysis is one of the most important managerial tools. It states that optimal managerial decision involve comparing the marginal benefits of a decision with the marginal cost. Variable costs will not affect the output of the change in Starbucks. Coffee industry did not have a fixed mode. Coffee is the taste of the food service industry depends on customer. Structure of the Industry/MarketNature of industry: Starbucks as global famous coffee retailer had build one of world’s most powerful and recognizable brands of high-quality coffee and the unique â€Å"Starbucks Experience. † It first revolutionized coffee making industry by creating â€Å"third place† between workplace and home that is a clean, friendly environment where customers would escape chaos from daily life (Wikinvest, 2013). So, whole coffee industry has been winded by Starbucks style that creating relax and comfortable place for staying by qua lity coffee servicing. The rest of other competitors is trying advance environment as well.Industry concentration: it also another important part affect marginal decision. As we mentioned above, almost one third coffee production consumed by customers derived from Starbucks, coffee industry mostly distributed by this large company, certainly, other small company or local coffee store also account for whole coffee industry. Competition: obviously, Starbucks hold a dominate position in coffee industry and has no clearly rivalry in this section. The National Coffee Association estimates that the US coffee market will reach $29 billion in 2011(Wikinest, 2013).However, the three monsters in coffee industry target their different market. Starbucks try their best to hold on unbelievable market share with some change of price strategy. Whereas, even McDonald's larger retail footprint may overlap more with Starbucks' core markets, but their stark differences as stores are reflective of the g eneral differences between their core customers. The Dunkin donuts ranked in the third, its customers experience is more similar to â€Å"coffee-to-go† rather than place to enjoy lifetime. Consequently, market of coffee to go will be a fierce competition.Oligopoly Models: an oligopoly is a market that dominated by few competitors, Starbucks controlled not less than 30% coffee market share and made a important role entire market. Whereas, McDonald’s, Dunkin Donuts, and Caribou Coffee affect coffee industry could not be ignored. Government Role Government role should be considered inseparable component as running business wherever domestic or global. What is good news for successful applying government role that it signed a contract with a province in China based on Chinese government role.That is positive on input procurement of Starbucks in Chinese market. There is a signed deal that Starbucks cooperate with province of Yunnan to set up its first-ever coffee-bean farm in the world to cater to a rapidly growing population of coffee drinkers in China amid a global battle for quality coffee beans (The wall Street Journal, 2010). In contrast, the illegal operation in U. K will produce a punishment for itself. In 2011, the company paid exactly zero in corporate tax rate even 398 million in sales (Forbes, 2012).The British government has already taken a action and adjust some law restriction specially. Business Environment Business environment consisted by two components, general environment and industry environment. Through a deep analysis could help the company compete well in the market and make more profit from that. The general environmental analysis in which a firm exists in following five parts, economic, political, socio-cultural, technological and demographic (Brain Mass, 2013). The recent global economic recession affect business with both rising operation cost and lower profit margin.Almost every industry even companies have been involved in to this horrible crisis. The consumer of the products are facing increase price of commodities. It made people’s life difficult and hard to pay too much on their daily food and drinks. During the economic crisis in 2008, coffee customers were still had 3. 3 cups per day on average and they may choose the lower cost coffee. The political and legal pressure is also filled with the coffee industry. Coffee companies buy coffee beans from different countries under their own regulations and customs.The company has to know the professional knowledge about how to import coffee beans from other country and follow the change of political policy. At the same time, firms must prepare well of necessary forms and permits to do coffee business. It includes business entity applications, tax forms, contracts and store leases and so on. The company also need abide by the laws and regulations issued by the local and federal governments, such as food handling regulation and labor laws. The socia l-culture segment based on the reflection of consumers and how the company response to it.As growing number of health-conscious customers, the company should keep up with the changing situation and meet demand of new market needs. Although companies like Starbucks initially resisted using anything other than whole-milk in coffee beverage preparation. Under the pressure, the product producer need come up with new products with both nutritious and tasty to satisfy the customer’s needs. Nowadays, the technological is getting more important to help extend business almost in any industries. It is also a major factor in the coffee industry.The technology is related to the product innovation, services and the consumer’s interaction. According to Starbucks, as a world’s famous coffee producer, no matter the operation or customer service, what only you could see is technological equipment. The article in â€Å"AdAge† on February 2010, Starbucks was able to use soc ial media to its commercial or customers’ feedback. Technological software is being launched in 2011 that is App Starbucks. It is could help customers make purchase, track reward numbers and check balance by mobile with internet.It is convenient for both cashers in front desk and customers who need a cup of Starbucks. Digital network is also an advantage positioned by Starbucks; Starbucks could service as a moving office even a meeting place thanks to ultimate Wi-Fi connection in its store. For brewing, Starbucks still equipped by advanced coffee brew machines. Such as clover, it precise control time, temperature, material volume in order to qualified coffee (Chorn, 2013). As environment deteriorated day by day, environmental conscious and protection is being paid more attention.It is committed to a role of environmental leadership in all facets business (Starbucks Coffee Company, 2013). Starbucks is considering replacing plastic package by some special biodegradable material ; what is more, Starbucks try it best to do recycling even if some location is hard to come true that. According to industry environment, coffee service has evolved into very specialized profession, the coffee retailer do not believe themselves as merely coffee seller any more. With a profusion of advanced delivery system and a wide variety of products, they willing to create an awesome culture those customers have even experienced.Truthfully, there is no direct offense to Starbucks by other coffee firms; however, more recently an intense competition between those major coffee brands, there will be more pressure on Starbucks. For instance, McDonald's has 14,000 stores in the U. S. and caters to a wider demographic than Starbucks; it also enjoys increased traffic from its variety of well-established breakfast options. McDonald's coffee sales increased 15% in 2006 (Hub Pages, 2012). From the side of customers, customers are powerful force in coffee industry. The largest segment of rev enue is coming from individual buyers.They can influence the price, quantity and quality of the product. That is to say the rate of profit of a coffee company directly affected by customers. Starbucks’s most supplements come from its loyal customers, Starbucks brand has been deep widespread among crowded. But as no apparent lower unemployment rate exists and lots of people fired from their work position, they have to tight daily expenditure even if they are crazy about Starbucks. The price strategy should be mentioned by Starbucks under tough market environment. Replan a flexible and reasonable selling price based on customer behaviors.Firm/Industry Location Starbucks is the largest  coffeehouse  company in the world, with 20,366 stores in 61 countries, including 13,123 in the United States, 1,299 in Canada, 977 in Japan, 793 in the United Kingdom, 732 in China, 473 in South Korea, 363 in Mexico, 282 in Taiwan, 204 in the Philippines, 164 in Thailand and 3 in India (Wikip edia, 2013). Starbucks’ located combined by daily and evening locations. Almost every location builds at corner of traffic lots. Besides, some of Starbucks located in college campus, because college students are its target market either.Taking a conclusion, Starbucks’ location always depend on how service customers efficiently in order to profits getting back. Business and Pricing Strategies Starbucks planned its pricing strategies divided to two columns. One is that it headed downwards most popular production such as, brewed coffee and lattes coffee. It is also redesigned its menu to feature out low priced brewed coffee or lattes. Another one is increasing the prices of its higher-end more complex drinks including Frappuccinos and caramel macchiatos, of which there is less competition from rivals.In some cases, prices are rising by 30 cents (Pricing for profit, 2009). As a result, some speculate that Starbucks is trying to make the most profit from its devoted custome rs who are hooked on its products. Different price strategy on different marketing production is in order to make good profits. Entrepreneurial Ability of Managers Entrepreneurial Ability of Managers it is an important function of management which helps to maximize efficiency and to achieve organizational goals. The mark of an effective leader is his ability to foresee the business trends and stay ahead of his rivals. Howard Schultz who is the owner of Starbucks.In a sense, Howard Schultz did what similar to Steve Jobs and other innovators have done, creating something that we really did not know we needed until we had it. He spends lots of his time in working place and focuses more on company innovation and effective management. Recently, Starbucks launched its new production that is named Verismo (Business Insider, 2013). Schultz stated that its plan is to use Verismo to be a global leader. As well-know, Starbucks cover more employees’ benefit than other coffee related comp any. No matter part-time workforce or full-time there, Starbucks provide unbelievable benefit that you never seen.That is exactly what Schultz’s belief that employee satisfaction lead to customers’ satisfaction. What is more, Starbucks encourage employee to participate to social activities, it is good way of brand reorganization. An efficient management will release a help to sales increase and profits maximizing. Starbucks always realign its top management based on specific situation. Unlike other company grouping their firm entirely wherever domestic market or international market, Starbucks divided their responsibilities for its business into three global regions, Asia, America and rest of world’s place.Every region has its own executive, which take a hold of the entire region. Which is possible of this change would help maximize its opportunities in growing market like China, Brazil and India. Conclusion Starbucks is the leader of the coffee industry devote to produces high quality and premium roasted coffee to market in many areas of the world. The success is hard to ignore the contribution from Howard Schultz. With his entrepreneurial ability and effective management, Starbucks is keeping moving forward to grow up and face changing situation and variety of problems caused by both internal and external impact.The management structure of Starbucks became a benchmark in coffee industry which many industry players are willing to emulate and study. Starbucks is powered by their continual bringing new innovative product, build good relationship with customers, ability to expand globally and right decision of select locations. Coffee and tea are popularly in all over the world and attract large number of population. Coffee industry is sensitive that can provide attractive revenues to the company. However, the company only could be success and get huge profit under the competition if the efficient and effective strategies are being taken.The key successful factors of coffee industry demand is utilize technology to enhance customer experience, innovate products, select appropriate location and prepare well to conquer competitors. References Business Insider. (2013, Jan 26). Starbucks Seems Almost Giddy about Its Verismo Machines. Retrieved from http://www. businessinsider. com/starbucks-verismo-2013-1 BrainMass. (2012). General Environment of Business. Retrieved from http://brainmass. com/business/business-analysis/191029 Chorn. (2012). Who Is Starbucks' Target Audience? Retrieved from http://smallbusiness. hron. com/starbucks-target-audience-10553. html Chron. (2012). Starbucks ; Its Use of Technology. Retrieved from http://smallbusiness. chron. com/starbucks-its-use-technology-28272. html CNNMoney. (2009, Oct 2). Starbucks' new high-tech coffee. Retrieved from http://tech. fortune. cnn. com/2009/10/02/starbucks-new-high-tech-coffee/ Forbes. (2012, Dec 19). Self-Righteous Starbucks Forced To Chug a Venti of Greedy Gove rnment. Retrieved from http://www. forbes. com/sites/kylesmith/2012/12/19/self-rigtheous-starbucks-forced-to-chug-a-venti-of-greedy-government/ HubPages. 2012). Specialty coffee industry analysis. Retrieved from http://meangreen. hubpages. com/hub/Specialty-coffee-industry-analysis Pricing for profit. (2009, Aug 26). Starbucks’ New Pricing Strategy: The Beginning of the End? Retrieved from http://www. pricingforprofit. com/pricing-strategy-blog/starbucks-new-pricing-strategy-beginning. htm Starbucks Coffee Company. (2013). Our Environmental Mission Statement. Retrieved from http://gr. starbucks. com/en-US/_Social+Responsibility/_Social+Responsibilities/Environment+Mission+Statement. htm Starbucks. 2013). A Brief History of Starbucks. Retrieved from http://philippines. starbucks. com/en-US/_About+Starbucks/History+of+Starbucks. htm The Wall Street Journal. (2010, Nov 15). Starbucks to Open China Coffee Farm, Securing Global Supply. Retrieved from http://online. wsj. com/articl e/SB10001424052748704462704575609733431622088. html Wikinvest. (2012). Starbucks Corporation. Retrieved from http://www. wikinvest. com/stock/Starbucks_(SBUX) Wikipedia. (2013). Starbucks. Retrieved from http://meangreen. hubpages. com/hub/Specialty-coffee-industry-analysis Starbucks Analysis Economics of Starbucks CONTENTS A. Introduction B. Analysis economics of Starbucks 1. Nature of product/service 2. Market trends 3. Production/supply process and costs 4. Structure of the industry/market 5. Government role 6. Business environment 7. Firm/Industry Location 8. Business and pricing strategies 9. Entrepreneurial ability of managers C. Conclusion D. References Introduction Starbucks, what started in Seattle in 1971s by three friends: erry Baldwin, Zev Siegl, and Gordon Bowker. They opened a small shop and began selling fresh and cold coffee.Starbucks has always been a place where you can find world’s best coffee. In 1970s, Starbucks open its first coffee restaurant and its name comes from a classical American novel (Starbucks, 2013). Through 1980s, Howard Schultz came into Starbucks, after a business trip to Italy and impressed by coffee culture, his perception is that how to make it come true in U. S, he experimented from Seattle. In 1990s, Starbucks has expanded their production line beyond Seattle. Stepping cross the rest sates of U. S as well as international market.At the same time, Starbucks released its special option that offer stock option to employees, which made Starbucks become a public traded company. From 2000s, Starbucks continued its awesome phenomenon, its operation widespread over 15,000 locations over 40 countries. Classical Starbuck’s coffee beverage has been well recognized by lots of customers. Nowadays, Starbucks is not merely a successful coffee retailer; it is a coffee culture and place that people enjoy their lifetime. The nine main areas will give out an explanation how Starbucks looks like.Key word: Nature of product; Market Trends; Production/Supply Process & Cost; Structure of the Industry; Government Role; Business Environment; Firm/Industry Location; Business & Pricing Strategies and Entrepreneurial Ability of Manager. Analysis of the Economics of Starbucks Nature of Product Existing products: obviously, as a coffee related retailer, Starbucks mainly focus on coffee diversify selling. The main kinds of Starbucks coffee are latte, espresso, frappuccino as well as some sweet bakery, ice cream and so on.By the way, according to the idea of Starbucks itself, what they likely do that create a friendly drinks atmosphere rather than only sell a cup of coffee. Actually, customers really enjoyed their coffee time in Starbucks store thanks to cultural environment. What is more, Starbucks also provide coffee beans, coffee pot and coffee cup and other products. In the Chinese market localization of product design, and some tea kind, drink even has a particular season sales of Starbucks moon cakes, etc.Role of technology: Starbucks always try their best to improve well-roasted coffee beans, ground to perfection and then brewed to personal taste. The CEO released a statement that the company spends 20 years perfecting a top top-secret technology that ultimately results in a cup of coffee made wi th via, that is indistinguishable from Starbuck's typical brewed coffee (CNN money, 2009). In 2008, Starbucks purchased new coffee equipment that is called â€Å"clover†. The Clover uses precise technology and a calculated algorithm to brew coffee within one degree Fahrenheit of its ideal temperature and produce the ideal flavor (Chron, 2013).It also gives a control to interaction between water and grounds. What is more advancement, it could connect by Starbucks network in order to more effect management each unit. Product life cycle: generally, product life cycle is divided into four parts, introduce, growth, mature and decline. Every production has to walk through these four parts. According to Starbucks, with different coffee launched based on seasons, it is still located into growth period but close to mature step.Starbucks play its role in coffee industry similar like what monopolist do, its production occupied almost whole market share that should directed to mature sta ge, but new production occasional launched hold Starbucks to increase its sales volume. Price elasticity: The price elasticity of Starbucks is not very high. On one hand, coffee is necessary in daily life. On the other hand, Starbucks’ goodwill has been recognized among coffee fans, it is not matters of price. Substitutes and complementary products: coffee’s substitutes will be water, tea, mike or other fruit juice.When you step into Starbucks store, customer service is unchanged if you pick up juices even a bottle of water. Market Trends Consumer behavior: Starbucks hold approximately 33 percentage of market share in U. S. however, half of this huge number accounted by guys who aged at 25- 40(Chorn, 2013). Obviously, primary target audience of Starbucks is this grouped people. The characteristic of them is relatively high income, professional careers and a focus on social welfare. Motivation of consuming of these guys to Starbucks certainly for entertainment, enjoy li fe and pursuit of fashion and communication.The sub target customers is young adults who aged at 18-24, Starbucks position itself as a place college student can hang out, studying, writing paper and meeting. The rest customers of Starbucks are kids and teens who get there by their parents. Indifference curves: Indifference curve means products, which have different combine differently to satisfy customers. A simple indifference curve is shown in figure 1 For the coffee, at the same time, environment and music can satisfy customers. Coffee can satisfy customers’ taste sense, while environment can satisfy customers’ spirits.Starbucks can develop their own cup, coffee beans to improve efficiency. Shifts in demand and supply curves: With six factors influence demand curve: consumers' income, taste and preferences, consumer expectations, related product price, the government behavior and regulations and the number of consumers. Again, six factors influence supply, number of suppliers, prices of resources, technology, supply expected, price of all products and government actions. Particularly, Starbucks hold 33 percentage of U. S coffee market share, demand of Starbucks will increased, so demand will shift toward right side.Also, thousands of hundreds location established would satisfy these demand, supply curve move right side. Production/supply Process& cost Input: what Starbucks need do if it needs transforms quality coffee is inputting coffee bean, water, some capital investment as well as labor. Production function & Cost function: production function relates to the maximum quantity of output that can be produced from given amounts of input. A graph showed below about Starbucks production function. Figure 2: Retrieved from: http://faculty. washington. edu/ezivot/econ301/labor_demand. tm Apparently, as more and more labors putted into operating room, sales of Starbucks coffee increased. However, when increasing labor beyond quantity maximum, there is no increase on quantity. Marginal analysis: marginal analysis is one of the most important managerial tools. It states that optimal managerial decision involve comparing the marginal benefits of a decision with the marginal cost. Variable costs will not affect the output of the change in Starbucks. Coffee industry did not have a fixed mode. Coffee is the taste of the food service industry depends on customer. Structure of the Industry/MarketNature of industry: Starbucks as global famous coffee retailer had build one of world’s most powerful and recognizable brands of high-quality coffee and the unique â€Å"Starbucks Experience. † It first revolutionized coffee making industry by creating â€Å"third place† between workplace and home that is a clean, friendly environment where customers would escape chaos from daily life (Wikinvest, 2013). So, whole coffee industry has been winded by Starbucks style that creating relax and comfortable place for staying by qua lity coffee servicing. The rest of other competitors is trying advance environment as well.Industry concentration: it also another important part affect marginal decision. As we mentioned above, almost one third coffee production consumed by customers derived from Starbucks, coffee industry mostly distributed by this large company, certainly, other small company or local coffee store also account for whole coffee industry. Competition: obviously, Starbucks hold a dominate position in coffee industry and has no clearly rivalry in this section. The National Coffee Association estimates that the US coffee market will reach $29 billion in 2011(Wikinest, 2013).However, the three monsters in coffee industry target their different market. Starbucks try their best to hold on unbelievable market share with some change of price strategy. Whereas, even McDonald's larger retail footprint may overlap more with Starbucks' core markets, but their stark differences as stores are reflective of the g eneral differences between their core customers. The Dunkin donuts ranked in the third, its customers experience is more similar to â€Å"coffee-to-go† rather than place to enjoy lifetime. Consequently, market of coffee to go will be a fierce competition.Oligopoly Models: an oligopoly is a market that dominated by few competitors, Starbucks controlled not less than 30% coffee market share and made a important role entire market. Whereas, McDonald’s, Dunkin Donuts, and Caribou Coffee affect coffee industry could not be ignored. Government Role Government role should be considered inseparable component as running business wherever domestic or global. What is good news for successful applying government role that it signed a contract with a province in China based on Chinese government role.That is positive on input procurement of Starbucks in Chinese market. There is a signed deal that Starbucks cooperate with province of Yunnan to set up its first-ever coffee-bean farm in the world to cater to a rapidly growing population of coffee drinkers in China amid a global battle for quality coffee beans (The wall Street Journal, 2010). In contrast, the illegal operation in U. K will produce a punishment for itself. In 2011, the company paid exactly zero in corporate tax rate even 398 million in sales (Forbes, 2012).The British government has already taken a action and adjust some law restriction specially. Business Environment Business environment consisted by two components, general environment and industry environment. Through a deep analysis could help the company compete well in the market and make more profit from that. The general environmental analysis in which a firm exists in following five parts, economic, political, socio-cultural, technological and demographic (Brain Mass, 2013). The recent global economic recession affect business with both rising operation cost and lower profit margin.Almost every industry even companies have been involved in to this horrible crisis. The consumer of the products are facing increase price of commodities. It made people’s life difficult and hard to pay too much on their daily food and drinks. During the economic crisis in 2008, coffee customers were still had 3. 3 cups per day on average and they may choose the lower cost coffee. The political and legal pressure is also filled with the coffee industry. Coffee companies buy coffee beans from different countries under their own regulations and customs.The company has to know the professional knowledge about how to import coffee beans from other country and follow the change of political policy. At the same time, firms must prepare well of necessary forms and permits to do coffee business. It includes business entity applications, tax forms, contracts and store leases and so on. The company also need abide by the laws and regulations issued by the local and federal governments, such as food handling regulation and labor laws. The socia l-culture segment based on the reflection of consumers and how the company response to it.As growing number of health-conscious customers, the company should keep up with the changing situation and meet demand of new market needs. Although companies like Starbucks initially resisted using anything other than whole-milk in coffee beverage preparation. Under the pressure, the product producer need come up with new products with both nutritious and tasty to satisfy the customer’s needs. Nowadays, the technological is getting more important to help extend business almost in any industries. It is also a major factor in the coffee industry.The technology is related to the product innovation, services and the consumer’s interaction. According to Starbucks, as a world’s famous coffee producer, no matter the operation or customer service, what only you could see is technological equipment. The article in â€Å"AdAge† on February 2010, Starbucks was able to use soc ial media to its commercial or customers’ feedback. Technological software is being launched in 2011 that is App Starbucks. It is could help customers make purchase, track reward numbers and check balance by mobile with internet.It is convenient for both cashers in front desk and customers who need a cup of Starbucks. Digital network is also an advantage positioned by Starbucks; Starbucks could service as a moving office even a meeting place thanks to ultimate Wi-Fi connection in its store. For brewing, Starbucks still equipped by advanced coffee brew machines. Such as clover, it precise control time, temperature, material volume in order to qualified coffee (Chorn, 2013). As environment deteriorated day by day, environmental conscious and protection is being paid more attention.It is committed to a role of environmental leadership in all facets business (Starbucks Coffee Company, 2013). Starbucks is considering replacing plastic package by some special biodegradable material ; what is more, Starbucks try it best to do recycling even if some location is hard to come true that. According to industry environment, coffee service has evolved into very specialized profession, the coffee retailer do not believe themselves as merely coffee seller any more. With a profusion of advanced delivery system and a wide variety of products, they willing to create an awesome culture those customers have even experienced.Truthfully, there is no direct offense to Starbucks by other coffee firms; however, more recently an intense competition between those major coffee brands, there will be more pressure on Starbucks. For instance, McDonald's has 14,000 stores in the U. S. and caters to a wider demographic than Starbucks; it also enjoys increased traffic from its variety of well-established breakfast options. McDonald's coffee sales increased 15% in 2006 (Hub Pages, 2012). From the side of customers, customers are powerful force in coffee industry. The largest segment of rev enue is coming from individual buyers.They can influence the price, quantity and quality of the product. That is to say the rate of profit of a coffee company directly affected by customers. Starbucks’s most supplements come from its loyal customers, Starbucks brand has been deep widespread among crowded. But as no apparent lower unemployment rate exists and lots of people fired from their work position, they have to tight daily expenditure even if they are crazy about Starbucks. The price strategy should be mentioned by Starbucks under tough market environment. Replan a flexible and reasonable selling price based on customer behaviors.Firm/Industry Location Starbucks is the largest  coffeehouse  company in the world, with 20,366 stores in 61 countries, including 13,123 in the United States, 1,299 in Canada, 977 in Japan, 793 in the United Kingdom, 732 in China, 473 in South Korea, 363 in Mexico, 282 in Taiwan, 204 in the Philippines, 164 in Thailand and 3 in India (Wikip edia, 2013). Starbucks’ located combined by daily and evening locations. Almost every location builds at corner of traffic lots. Besides, some of Starbucks located in college campus, because college students are its target market either.Taking a conclusion, Starbucks’ location always depend on how service customers efficiently in order to profits getting back. Business and Pricing Strategies Starbucks planned its pricing strategies divided to two columns. One is that it headed downwards most popular production such as, brewed coffee and lattes coffee. It is also redesigned its menu to feature out low priced brewed coffee or lattes. Another one is increasing the prices of its higher-end more complex drinks including Frappuccinos and caramel macchiatos, of which there is less competition from rivals.In some cases, prices are rising by 30 cents (Pricing for profit, 2009). As a result, some speculate that Starbucks is trying to make the most profit from its devoted custome rs who are hooked on its products. Different price strategy on different marketing production is in order to make good profits. Entrepreneurial Ability of Managers Entrepreneurial Ability of Managers it is an important function of management which helps to maximize efficiency and to achieve organizational goals. The mark of an effective leader is his ability to foresee the business trends and stay ahead of his rivals. Howard Schultz who is the owner of Starbucks.In a sense, Howard Schultz did what similar to Steve Jobs and other innovators have done, creating something that we really did not know we needed until we had it. He spends lots of his time in working place and focuses more on company innovation and effective management. Recently, Starbucks launched its new production that is named Verismo (Business Insider, 2013). Schultz stated that its plan is to use Verismo to be a global leader. As well-know, Starbucks cover more employees’ benefit than other coffee related comp any. No matter part-time workforce or full-time there, Starbucks provide unbelievable benefit that you never seen.That is exactly what Schultz’s belief that employee satisfaction lead to customers’ satisfaction. What is more, Starbucks encourage employee to participate to social activities, it is good way of brand reorganization. An efficient management will release a help to sales increase and profits maximizing. Starbucks always realign its top management based on specific situation. Unlike other company grouping their firm entirely wherever domestic market or international market, Starbucks divided their responsibilities for its business into three global regions, Asia, America and rest of world’s place.Every region has its own executive, which take a hold of the entire region. Which is possible of this change would help maximize its opportunities in growing market like China, Brazil and India. Conclusion Starbucks is the leader of the coffee industry devote to produces high quality and premium roasted coffee to market in many areas of the world. The success is hard to ignore the contribution from Howard Schultz. With his entrepreneurial ability and effective management, Starbucks is keeping moving forward to grow up and face changing situation and variety of problems caused by both internal and external impact.The management structure of Starbucks became a benchmark in coffee industry which many industry players are willing to emulate and study. Starbucks is powered by their continual bringing new innovative product, build good relationship with customers, ability to expand globally and right decision of select locations. Coffee and tea are popularly in all over the world and attract large number of population. Coffee industry is sensitive that can provide attractive revenues to the company. However, the company only could be success and get huge profit under the competition if the efficient and effective strategies are being taken.The key successful factors of coffee industry demand is utilize technology to enhance customer experience, innovate products, select appropriate location and prepare well to conquer competitors. References Business Insider. (2013, Jan 26). Starbucks Seems Almost Giddy about Its Verismo Machines. Retrieved from http://www. businessinsider. com/starbucks-verismo-2013-1 BrainMass. (2012). General Environment of Business. Retrieved from http://brainmass. com/business/business-analysis/191029 Chorn. (2012). Who Is Starbucks' Target Audience? Retrieved from http://smallbusiness. hron. com/starbucks-target-audience-10553. html Chron. (2012). Starbucks ; Its Use of Technology. Retrieved from http://smallbusiness. chron. com/starbucks-its-use-technology-28272. html CNNMoney. (2009, Oct 2). Starbucks' new high-tech coffee. Retrieved from http://tech. fortune. cnn. com/2009/10/02/starbucks-new-high-tech-coffee/ Forbes. (2012, Dec 19). Self-Righteous Starbucks Forced To Chug a Venti of Greedy Gove rnment. Retrieved from http://www. forbes. com/sites/kylesmith/2012/12/19/self-rigtheous-starbucks-forced-to-chug-a-venti-of-greedy-government/ HubPages. 2012). Specialty coffee industry analysis. Retrieved from http://meangreen. hubpages. com/hub/Specialty-coffee-industry-analysis Pricing for profit. (2009, Aug 26). Starbucks’ New Pricing Strategy: The Beginning of the End? Retrieved from http://www. pricingforprofit. com/pricing-strategy-blog/starbucks-new-pricing-strategy-beginning. htm Starbucks Coffee Company. (2013). Our Environmental Mission Statement. Retrieved from http://gr. starbucks. com/en-US/_Social+Responsibility/_Social+Responsibilities/Environment+Mission+Statement. htm Starbucks. 2013). A Brief History of Starbucks. Retrieved from http://philippines. starbucks. com/en-US/_About+Starbucks/History+of+Starbucks. htm The Wall Street Journal. (2010, Nov 15). Starbucks to Open China Coffee Farm, Securing Global Supply. Retrieved from http://online. wsj. com/articl e/SB10001424052748704462704575609733431622088. html Wikinvest. (2012). Starbucks Corporation. Retrieved from http://www. wikinvest. com/stock/Starbucks_(SBUX) Wikipedia. (2013). Starbucks. Retrieved from http://meangreen. hubpages. com/hub/Specialty-coffee-industry-analysis

Solutions For Cruelty To Animals - Free Essay Example

Sample details Pages: 9 Words: 2785 Downloads: 6 Date added: 2019/05/23 Category Society Essay Level High school Tags: Cruelty To Animals Essay Did you like this example? Chapter 1: Activism And Activists What is Activism and what are Activists? Activism is when a person, or a group of people is to campaign to bring a change in the society or in the government, usually to do what one believes is right. Activists are the most important component of activism as they are the ones who speak out to bring the change for what they believe in. In the case of animal cruelty, a few activists are Faye Carey, Genesis Butler, and Thomas Ponce. Faye Carey is a teen activist who, aside from her other jobs, and her school work, still makes time every Friday to work at the pound. Faye started at age 16 after working at a pound for a year to still see a puppy still there from the first day she entered the pound. She then got on a website called trade me and advertised the puppy there. Instantly the post got a lot of likes and after a while the puppy found a new home with a loving family. Faye still works, but instead works at her own animal shelter where she is still doing what she has been doing for 5 years. (Newshub, 2013) Don’t waste time! Our writers will create an original "Solutions For Cruelty To Animals" essay for you Create order Genesis Butler is a Activist at only age 10! She spoke to give a speech about animal rights at age 10 and even earlier at age 8 started her own organization to raise money and to justify that animals are not being mistreated, and prior to that at age 4 became a vegetarian, and at age 6 became a vegan and also persuaded her family to do the same. She also won the first ever Carlee and Laurie McGrath Young Hero for Animals Award and the title of PETArs cutest vegan kid in a contest in 2015 according to peta.org. (Kretzer, 2018) Thomas Ponce is a 12 year old activist who created a website called Lobby for animals which helps activists become more active on the topic of animal rights by making persuasive phone calls, putting up posters, and writing letters all to get the attention of people to focus some of their attention to the problem of animal cruelty and animal misuse. Thomasrs other reason to why he wants to do this is because he speaks up for those who cant speak for themselves which led him to say, We have to remember, we are speaking up for those who cant speak up for themselves; we are the voice of the voiceless and we need to be heard! (The Pollination Project, 2018) Activism can happen anywhere at any age from when you learn to speak to the day before you die, and thatrs a good thing because that means that you can act on anything. Activists are everywhere and are continuously trying to stand up for what they believe in and you can do the same. Stand up for what you believe is right and make a difference for the better and also for what is right. Chapter 2: Animal Abandonment Animal Abandonment is a form of animal cruelty. It hurts animals, and it causes a problem. Animal Abandonment can come from anyone owning any sort of pet. It occurs for many reasons but the outcome is always a pet ending up being returned to a pound that is overcrowded or is discarded in a cruel way. Animal Cruelty happens when a owner passes away, cannot maintain to keep a pet anymore, or realizes that keeping a pet is too much responsibility. To solve these problems the owner has multiple choices, to drop the pet off (anonymously or known) to a pet shelter/pound, to release the pet into the wild, and ways that are plain cruel. Examples of cruel abandonment would be selling their pet to companies that only care of profit or dumping their pet in a trash can. (Anders, 2016) Summer is often when animals or pets are abandoned. This is true mainly because during the Summer, the real responsibility of cleaning, walking, and other reasons start to become hard to do thus leaning pet owners to abandon their pet, also during the summer many families go on vacation and decide not to hire a pet sitter therefore another reason to abandon their pet. Because of this about 1.5 animals/pets are being abandoned per hour in the Summer. (Anders, 2016) Animal Abandonment is also one of the biggest problems in Animal Cruelty because many pounds are overcrowded so there will be no place for abandoned animals when their owners abandon them. This happens because owners are constantly abandoning animals more than there is room for them in shelters, and while doing so the animals are having puppies or kittens in the wild increasing the animal population. The AVMA recommends that when you adopt a pet you should spay the pet so that the pet, if you were to abandon it or if it attempts to have a puppy or kitten then it wouldnt and that would help the to the cause of animal overpopulation which would greatly help animal abandonment. Abandonment could also happen if a pet owner owns too many pets forcing the owner to abandon some of his/her pets. (AVMA, 2018) Abandonment is a topic worth fighting for, the animals were here before us and they did nothing to us that could greatly affect us in a bigger way than we affected them. Stand up for Animal abandonment and stand up for animal cruelty so that there will be laws against them that will be mandatory everywhere. To stop this, a pet owner should spay their pet, make a lifelong commitment to their pet, and never treat it like anything less than what it is. Chapter 3: Animal Testing Overpopulation Animal Testing is a very cruel way to torture animals as it allows testers to tie up an animal, do tests on the animal regardless of how the animal feels, and the result will be a animal that will no longer be cared for or a dead animal. Testing also allows testers to do anything to the animal before and after the test weather it is discarding it, giving it drugs, or even killing it if the test fails. (PETA, 2018) Animals In the US that are commonly used in experiments are rats, mice, fish, amphibians, and birds which are not classified as animals in the US allowing companies to test on them legally. Most animals that will eventually be tested on are usually raised for that one experiment when that fully functional animal could have been living a good life in a warm home. Cruelty Free International says,A dog bred for research is still a dog who could otherwise live a happy life in a loving home. (Cruelty Free International, 2018) There is also surprising news from the FDA that drugs or medications that work on animals mostly do not work on humans. There is about a 8% chance that what does work on animals works on humans, which means that what could work on an animal, by coincidence can work on a human, and by using only this information, we can justify that tests on animals are unnecessary and will not make much of a test if it the test is actioned. Also, a essay from new scientist: How human biology can prevent drug deaths states that about 100,000 people in the US die due to medications or drugs that were tested by animals that worked. (Bekoff, 2018) The tests that are often performed in laboratories that involved animals often required the animal to suffer or be tortured. There is no law banning this as the society thinks that it is the only way to make sure that humans are not being poisoned, but as mentioned previously, the success rate of a test on an animal versus a human is only 8%, and because of this, animals are not required to suffer for tests that will most likely not have a effect on us. A test on an animal has also caused many deaths in people who tested the product right after the product passed the animal testing, and when they did try the product, they resulted in a negative effect where the human test subjects were either poisoned to death or the test caused a failure of body parts. (Bekoff, 2018) Overall, when you hear the words: animal testing, you think of a bad thing, and that is exactly what it is. Animal testing does not work and does not prove anything because animal bodies are much different than human bodies, therefore the effect could be anything. Stand up and stop the testing of animals, it has caused many deaths already, weather in humans or in animals. Either way, the testing of animals is bad and overall cruel. This doesnt have to happen and definitely should not happen so stop it, it hurts animals and does not affect us in any kind of major way. Chapter 4: Dogfighting And Slaughter Dogfighting is a sport that requires dogs to shed blood even if it is illegal in all 50 states, but it still takes place weather in a closely guarded arena or in a abandoned warehouse. Dogs are commonly bred for dogfights and are often raised in isolation with their tails and ears cut off so that during the fight the dog has lessened senses and so that the opponent cannot rip the parts off to cause a unfair advantage. The dogs are also fed drugs so the fight will be more exciting. A loser in the fight might not be dead in the end but will be when the owner kills the dog and feeds it to the winner, or simply discards it. (ASPCA, 2018) Dogfighting is a way of showing how much someone could hate dogs and also shows how heartless someone could be. Dogs are often forced to fight for multiple reasons, to gain money, for entertainment, or to make bets or to gamble on the winner. During dogfights, dogs are put into a slightly small arena so that the opponent has nowhere to run. The only breeds of dogs that are used in dogfights are more vicious and more muscular dogs like pitbulls. (ASPCA, 2018) Dogfighting and slaughter have their differences but also have many similarities like the cruel killing of an animal, the mistreatment of an disabled or perfectly functional animal, and the slaughter of an animal while it is still alive and can still feel pain. Slaughtering can happen to any animal, especially marine animals. Marine animals are killed by the billions each month and most animals in the oceans are becoming endangered from the great whales to the orcas to the bluefin tuna. (10 Animals Killed For Food, 2018) (Most endangered fish species, 2018) Slaughter involves a animal that is alive and can still live for time to come. The result of slaughter is a dead body of an animal. Slaughter means to kill an animal for food, mainly in a cruel way where the animal is still alive and can still feel pain. A cruel slaughter subject is the horse who (if the horse is considered useless, or disabled) is shipped to the US to be killed by slaughter. The transfer of these horses are in cramped trucks when the horses are provided with no food or water. The steps of this slaughter is to cut off the horsers hooves, then legs, and finally, to cut off all the hair. The horse is usually still awake or alive when this happens and still will survive until the head is cut off. After this process, the shipment of horses are shipped across seas to another country to be consumed by humans. (ASPCA, 2018) The slaughter of animals is a cruel way to end a life and can result in extinction, Yet there is no law banning the slaughter of horses in the US, so we have to stand up for slaughter and try to make the law pass. What we could do instead is to have the animal peacefully fall asleep forever and never wake up. This method could potentially stop any species from being tortured, killed slowly or extinct. There are also many other animal species out there that are already endangered and are set for the course of extinction because of slaughter, so if the bill that is to ban the cruel slaughter of animals passes then maybe the next generations will still be seeing animals that we are just barely seeing today. Chapter 5: Solutions For Cruelty To Animals There are many solutions out there for animal cruelty but we simply choose to ignore them. There are bills that can be passed, and more conservative thoughts to think about rather that thinking about the fact that you are hungry or bored and need animals just for those reasons. Animals are living things too and deserve rights. We have driven more than a simple million animals to extinction and have overpopulated the earth with domesticated animals. We can stop all of this by simply thinking about what could happen to the future and do things like going meatless once a week, or voting yes for bills that protect animals and stop the torture of animals. There are many problems in our society, especially for the future and for mother earth. The problem the article is to address is the problem of animal cruelty and animals in general, and here are some simple solutions. When adopting a pet, make a lifelong commitment to it and never give the pet up for re-adoption or abandon it. While adopting your pet you should also try to spay the pet, therefore the population will stay in control and no pets will have to suffer. You can also vote yes on bills or laws that can possibly protect endangered animals and control the amount of overpopulated species so that there will once again be balance in the food chain like there used to be. (Dog and Cat Population Control, 2018) Many might also think that there is nothing you can do about illegal actions that are still taking place like dogfighting, but you can. In the case of dogfighting, you should call the police to stop the fight and also to stop the breeding of any more dogs for dogfights. If anyone you know is also mistreating their pet then you should tell them why their action is wrong and try to also help the pet that they were mistreating. Any form of animals cruelty should be illegal and should not be committed either way, so help to fight it, and maybe you could become a activist, anything might, and probably will help. Spread the news of Animal Cruelty and stop any form of it, weather it be helping any animal in need by providing it with food, water, and shelter, or by donating, spreading the word, or, if you can, then try acting upon it by creating a statement, giving a speech about it, or by talking through congress and allowing everybody worldwide to hear your thoughts and think to consider making a change or difference. Change is what we need and we need to start thinking about the future, the earth we live on, and others which includes the animals which were on this planet way before us. We can do anything if we are devoted to do it, just look how far we got in our society, If we are devoted, then we can stop any problem, if we are devoted, then we can do anything. So stop the Cruelty to Animals, It is a problem waiting to be solved. Resources: Anders, C. J. (2016) A Pet Is Abandoned Every Single Hour In The Summer. Retrieved From: https://www.thedodo.com/abandoned-pets-summer-1917692034.html ASPCA (2018) Cruelty Issues. Retrieved From: https://www.aspca.org/animal-cruelty AVMA (2018). Dog and Cat Population Control. Retrieved From: https://www.avma.org/KB/Policies/Pages/Dog-And-Cat-Population-Control.aspx Bekoff (2018). Fact! Testing Drugs On Animals Does Not Work to Help Humans. Retrieved From: https://www.psychologytoday.com/us/blog/animal- emotions/201212/f a ct-testing-drugs-animals-does-not-work-help-humans Cruelty Free International (2018). What is animal testing? Retrieved From: https://www.crueltyfreeinternational.org/why-we-do-it/what-animal-testing HowStuffWorks (2018). Top 10 Most Endangered Fish Species. Retrieved From: https://animals.howstuffworks.com/endangered-species/top-10-most-endangered-fish.htm Kretzer, M. (2018). Get Ready to Be Inspired by This 11-Year-Old Activist and TEDx Speaker. Retrieved From: https://www.peta.org/blog/genesis-butler-young-hero-for-animals-award/ Newshub (2018). Teenage girl is dogs best friend. Retrieved From: https://www.newshub.co.nz/nznews/teenage-girl-is-dogs-best-friend-2013080912 PETA (2018). Cruelty to Animals in Laboratories. Retrieved From: https://www.peta.org/issues/animals-used-for-experimentation/animals-laboratories/ The Pollination Project (2018). Meet our 100th Grantee: Thomas Ponce, Founder of Lobby for Animals. Retrieved From: https://thepollinationproject.org /2013/04/15/meet- our-10 0t h-grantee-thomas-ponce-founder-of-lobby-for-animals/ Vegan Souls (2018). Top 10 Animals Killed for Food Worldwide Each Year. Retrieved From: https://www.vegansouls.com/animals-killed-for-food