Arguments of Peter Singer

Singer’s goal in the article â€Å"Famine, Affluence and Morality† is to get people to think differently about famine relief, charity, and morality. These are key issues that people need to be more aware of and act on them. People who are financially stable and well off should take more of an active role by giving more. They should feel obligated in helping those in need. There are many people suffering severely, those who can help are doing nothing. People should be more willing to give help rather than being obtuse & self-centered. Singer argues it is wrong for a person to suffer from homelessness, hunger, or lack of medical attention. These needs are essential in life and without them can alimentally lead to one’s death. Another argument Singer gives is if a person is wealthy, they are more than capable to help others financially. They need to feel obligated to do so. Instead of a person spending money on extras and materialistic items for themselves, they should donate that money to the poor. The money should help with necessities for the poor and uplift them. On the same point he points out, one should not sacrifice if it would put them in harm’s way. Singer’s concept of marginal utility is that one should give as much as possible to the unfortunate; it should never create a hardship to the giver. This would be doing more harm than good. When a person contributes to the poor, it should not financially affect their lifestyle by putting them in debt, homeless, or without food. People that are wealthy and well off should donate to the people that are unfortunate and suffering. It would be morally correct to help the less fortunate. An argument Singer makes is the distinction between a duty and charity. He states, â€Å"That a duty is an action that is an obligation and charity is an action of something that is good to do but not obligated† (Singer, 1972, p. 232). An example he gives is if a child were drowning, it would be a person’s duty and obligation to help to save the child from drowning. Singer questions why this is any different from charity. Charity is â€Å"generosity and helpfulness especially toward the needy or suffering; also : aid given to those in need† (Dunignan, 2013). Singer feels that people that have the means and are able to help by giving money to the poor should feel obligated and it be there duty. They should be obligated to do this because it is a person’s duty to help others from suffering. He does not understand why a person should feel they have a choice to prevent help suffering, it should be a duty that we have an obligation to do. An argument I would have with Singer is about being fair and right. I do not agree that all people need to be obligated to give away their hard-earned money to the poor. I would agree that people who are born into wealth or have received a large inheritance should be obligated to donate and not the people that have worked many years to get to that state. People born into wealth or have received a large inheritance have been given a gift. Therefore, they should be inclined to share the gift by giving some of the money to the poor. (If money is a gift to a family or they were born into it, they should donate and give to the poor. They did not work for the money it was a gift, therefore a person should feel obligated as their duty to give to the poor. ) People that are well off because of many hours or having multiple jobs should not have to give their money away to the poor. They have worked hard to receive it so they would not have to live paycheck to paycheck. I think these types of people have earned the right to live comfortably and do what they want with their money. They have put the time and work into making the money and it should be theirs to do what they want. â€Å"Famine, Affluence, and Morality† was written in response to an immediate humanitarian crisis. In November 1971, the confluence of war, poverty, and natural disaster had created nine million refugees in East Bengal, and Singer was appealing for immediate life-saving aid† (Jamiesom, 2005, p. 153). An Irish rock musician, Bob Geldof, immediately rushed into the studio with an all star line-up to record â€Å"Do they Know It’s Christmas? † The record sold nearly 4 million copies in the United Kingdom alone, and was quickly followed by â€Å"We Are the World,† produced by Quincy Jones, in the United States. Geldof went on the organized the LiveAid concert the following July, which was broadcast simultaneously from London and Philadelphia, and viewed by 1. 5 billion people around the world. The records and concert ultimately raised between $100 and $500 million for famine relief in Africa† (Jamiesom, 2005, p. 53-154). â€Å"These celebrity-driven, media-centered projects were valuable for a number of reasons. They created awareness of suffering in Africa, motivated people to act, and raised large sums of money†(Jamiesom, 2005, p. 154). Since 1972, the a lot more wealth people have stepped up into given aid to the poverty stricken. The article did raise awareness off the issue that needed to be addressed. In my opinion the wealthy have become more proactive in helping the poverty stricken. Leaving the middle class to do what they can when they can. References Duignan, B. (2013). Encyclopedia Britannica. http://dx.doi.org/http://www.britannica.com/EB checked/topic/1053194/Peter-Singer Jamiesom, D. (2005). Duties to the distance:Aid, assitance, and intervention in the developing world. The Journal of ethics, 9, 151-170. http://dx.doi.org/ProQuest doi: http://dx.doi.org/10.1007/s10892-004-3324-9 Singer, P. (1972, Spring). Famine,affluence,and morality. Philosophy and public affairs, 1, 229-243. http://dx.doi.org/http://www.Jstor.org/stable/2265052

Green Marketing Plan †Nandos Essay

The purpose of this plan is to analyse the environmental efforts of the Nando’s Carnegie branch, and to develop strategies that propels them a step closer towards a more eco-friendly and sustainable future. Nando’s was established in 1987 in Johannesburg, South Africa. It has approximately 300 stores in Australia since the brand arrived here in 1990. Nando’s has already taken action to be more environmentally responsible, with better packaging designs and partnering with organizations that are tackling the world’s social problems. The sources of information for this  marketing plan include websites, articles and the management at the Carnegie branch of Nando’s. Since some data is unavailable to us (e.g. the annual costs of the business), certain assumptions will have to be made. Nando’s already has a clear focus on reducing its packaging, but energy and water usage have not been addressed as effectively. To reduce their usage of energy, they will have to consider their lighting, and the equipment that is used in the kitchen. Solar panels will also be installed to reduce their electricity use. Water usage will also be reduced by switching to more effi cient equipment in the kitchen and toilets. By employing the strategies that have been outlined, Nando’s will be able to target their triple bottom line by reducing cost, lightening their carbon footprint and consequently improving the lives of the people. Situation Analysis Nando’s Background Nando’s is not the common type of fast food joint, but is more of a casual dining place. Nando’s first began trading in 1987, in Johannesburg, South Africa. It arrived in Australia in 1990, with its first store opening in Perth. Since then, its popularity has grown in every state in Australia, with new stores opening all the time. There are approximately 300 stores operating nationally, with plans to expand further. Nando’s is famous for its unique Peri-Peri marinade that is used for all the chicken items on the menu (Nandos, 2012). This green marketing plan is for Nando’s Carnegie and how they can incorporate sustainability into their operations. Nando’s Environmental strategies Nandos does not advertise their sustainability efforts much, but protecting the environment and â€Å"doing the right thing† has always been a part of their business strategy. They are already raising awareness for an organisation called â€Å"United Against Malaria†, which is a charity that raises awareness of malaria, and aims to put an end to it (Mumbrella, 2012). Nando’s Carnegie has been selling â€Å"United Against Malaria† bracelets to raise funds for the charity. All Nando’s restaurants also use recyclable packaging for their products (they signed the Australian Packaging Covenant in 2010, which means they must adhere to their guidelines). They have also begun selling water bottles which use 35% less plastic than the previous bottles that were used. Recycle logos and information are also printed onto the packaging to educate consumers (Nandos, 2010). Nando’s also makes use of recycling services, which are available at every branch, including Carnegie. Nando’s have implemented a system of having its suppliers of oil provide oil to each store in large quantities so as to reduce the amount of trips that they need to make. This system also reduces the use of steel drums for containing the oil. Spent oil is then sent to recyclers to produce biodiesel, which Nando’s then uses to run its trucks (Nandos, 2010). Analysis of environmental performance Even though Nando’s does undertake all of the above- mentioned activities in their business processes, they are still not realizing their full potential in terms of sustainability. Even though Nando’s does try to buy recycled products, they do not have an explicit policy that states that they should buy recycled. Nando’s also does not have a policy to encourage their overseas suppliers to improve design to reduce the environmental impact of their packaging (Nandos, 2010). Just by implementing these guidelines, Nando’s could improve their environmental performance substantially. However, Nando’s does print environmental logos on all its primary and secondary packaging to encourage recycling throughout its value chain all the way to consumers. Nando’s also discourages consumers to take away the food, and this helps to reduce the use of extra packaging. All Nando’s restaurants have a relaxed atmosphere and a â€Å"homely† feel that urges consumers to eat there rather than take the food home (Nandos, 2012) The fast-food chain also uses renewable resources i.e. sugar cane material, for most of its packaging. Also, they try to make sure that the packaging is made using no small parts so littering is minimized (Nandos, 2010). A few inefficient business methods that are specific to the Carnegie branch include the washing of dishes and the use of disposable gloves. The bulky dishwasher is used even when there are just a few dishes, which results in wastage of water. Also, workers use disposable gloves which are not made of  renewable resources, and are replaced quite often due to overuse. Evidently, Nando’s has integrated sustainability into its organizational plans. However, with a more concentrated focus on the environment, Nando’s will be able to reduce their impact further, and could position themselves as the industry standard in terms of environmental impact. Current marketing strategies Nando’s main message in its advertising campaigns is the fact that they use fresh chicken that is flame-grilled, not fried. They use this as a point of differentiation to gain an advantage over other fast-food chains, like McDonald’s or KFC (Baker, 2010). With its creative and occasionally controversial marketing campaigns and catchy taglines such as â€Å"Portugasm†, Nando’s targets an educated, younger demographic market. The organization has successfully used social media to connect with their customers, and its website to communicate any new plans, or to inform the public of any events taking place at Nando’s.  Nando’s also uses its store design to complete the brand experience for customers. Wooden tables, soft,fluid lighting and posters showing the history of its unique flavours convey an image of relaxation and a natural, friendly appeal to the brand (Nandos, 2012). Even though the target market may be a young demographic, consumers of all ages and backgrounds visit Nando’s, presumably because of its uniquely cooked chicken. Industry analysis The Australian fast food industry has flourished in the last decade, with industry revenue rising by 4.3% to reach $16,007,400,000 per annum. There were approximately 36,730 fast food establishments in Australia in 2010 (RAPS, 2011). With such a large number of fast food organisations, they definitely have a significant impact on the Australian environment and could make a massive difference if they incorporated sustainability into their business practices. The current macro-environment factors will further examine the current situation and trends in the fast food industry. Political factors – All businesses involved in the production and sale of domestic food products must abide by the guidelines set in the â€Å"Food Standards Australia and New Zealand† (RAPS, 2011). This ensures that all businesses follow at least the minimum requirements for sustainability. – The introduction of the carbon tax has resulted in prices of products like fruits, vegetables, bread and meat will rise (Sebo, 2012), this means all fast food chains including Nando’s will have to raise their prices. Social factors – Consumers nowadays place more importance on preservation of the environment and healthy eating, so businesses must ensure they must deal with these issues (Price & Lawson, 1992) – Fast food continues to be seen as unhealthy and pollutants of the environment (Price & Lawson, 1992). – Fast food businesses are also perceived as litterers by a majority of consumers (Price & Lawson, 1992). Technological factors – A new kind of method of utilizing solar power, referred to as solar thermal, means that power can be stored for a longer period of time as the technology does not rely on direct sunlight (Sorly, n.d.) – Advances in packaging designs so they use less material mean that costs for companies are decreased and they decrease their environmental impact (Joy, 2011). – Progress in the development of water efficient fittings result in reduced water usage for all businesses. Natural factors – Water is a major factor influencing all businesses in Australia, as Australia is the driest inhabited continent in the world (White, 2009). – Growing population means more demand for food, which places more pressure on the sources of fast food businesses (White, 2009). – Depleting sources of fossil fuels, which are the main source of energy in Australia, will result in increased energy prices (White, 2009). Customer analysis There has been a significant increase of fast food consumption in Australia, with traffic to fast food joints increasing by roughly 7% in 2010 (Markey & Watson, 2011). People of all walks of life come to Nando’s, but a majority of them consist of younger people. Majority of consumers who purchase fast food do so for convenience (TheTelegraph, 2007). Therefore, they probably do not consider environmental factors in their purchase decision. However, with the green consumer group growing within Australia, opportunities for going green for businesses are becoming more appealing. In Australia, there are certain trends that define consumers today. Consumers can be divided into certain groups. These include the Value Consumer, the Busy Consumer and the Green Consumer to name a few (ACRS, 2010) The Value Consumer These are consumers who spend their money more wisely, and mostly consider only what they need. This is mainly a consequence of the Global Financial Crisis as consumers have become more cautious in their spending habits. This can be evidenced by the fact that consumer spending in Australia has been decreasing steadily, and this trend looks set to continue (Schwarten, 2012). These customers then force businesses to create value, so as to attract them to their brand. The Busy Consumer These are consumers who are becoming increasingly time-poor and convenience has a major effect on their purchase decisions. They place more emphasis on â€Å"speed, simplicity and convenience† (ACRS, 2010). Time is very valuable to them, so fast food is the ideal choice for these types of consumers. The Green Consumer This has become a growing niche in the market, and identifies those consumers who are more concerned about the environment than other people. They are willing to spend more for products if they know it will help to conserve the environment. They will actively seek out green products or even organic products, and they take into account the environmental practices of the  business before choosing to purchase. This consumer market is continuously growing, with an estimated buying power of US$500 billion in 2007 globally (ACRS, 2010). In Australia, consumers spent around AU$12 billion on environmentally-friendly goods in 2009, and the market reached AU$21 billion by 2010. Australians attitude towards environmental issues Australians are undoubtedly concerned about the environment, but the high costs of going green are stopping them from being very eco-friendly. This is confirmed by the fact that 100% of Gen Y and 91% of Gen X believe in the effects of climate change, according to McCrindle Research (n.d.). However, 65% do not want to pay more than 10% for green products, while only 10% are willing to pay any price. Consumers also feel that environmentally friendly products should cost less than other  products so as to encourage people to buy them (McCrindle, n.d.) Consumers nowadays expect business to be transparent with their activities and to be accountable at every level of business (Davis, 2007). Organizations are also expected to provide accurate information regarding the environmental impact of their products, and to minimize the impact through the use of innovative designs and manufacturing techniques (Savita, 2011). This means a restaurant like Nando’s is expected to provide the information about their environmental impact to customers, and do all they can to protect the environment, and provide safe products to customers. The purpose of this marketing plan is to target the growing Green Consumer market, and to inform the Value Customer of the high level of environmentally friendly business practices taking place at Nando’s Carnegie so as to give them another reason to eat there. Competitor analysis Direct competitors of Nando’s Carnegie include Grill’d, McDonalds, KFC,  Subway and other various dining restaurants due to their geographic proximity to the Nando’s branch. McDonald’s Strengths 1. Participate in the  government’s Energies  Efficiencies  Opportunities Program. 2. Engage in countrywide water saving  programs. 3. McDonald’s has full  control over its supply  chain, which allows it to  incorporate sustainability  into its operations easily. 4. Conduct extensive  research into reducing  the impact of their  packaging, and are a  member of the Australian  Packaging Covenant.  (McDonalds, 2012) Weaknesses 1. The strategies they are undertaking have  not changed their greedy, corporate brand  image (Barriaux, M. 2007) 2. McDonald’s does have a slight perception  of going green in the minds of consumers, but  its actual green performance is much lower  (Streeter, 2011) 3. McDonald’s customers alone produce 6.35  kgs of trash during peak hour. 4. McDonalds, due to its large size, is  susceptible to being sued by individuals or  organisations that see any weakness in their  sustainability efforts e.g. the 1986 court case  (Archives, 2007) 5. Damage the environment extensively from  their production techniques  (EthicalFootprint,2010) Strategies 1. Litter Control program helps  keep the restaurant grounds clean. 2. Restaurant includes rain water  tanks, dual flush toilets and water  restrictors on taps. 3. Use scorecard method for  sustainability targets for its  suppliers to make sure the goals  are being met throughout the  supply chain. 4. Use recyclable material for  packaging, and continuous  research is put into finding new  ways to reduce packaging material.  (McDonalds, 2012) KFC Strengths Weaknesses Strategies 1. Benefit from alliance  with Carbon Trust, as  they provide them with  ideas of green  technologies. 2. Yum! Brands, (KFC’s  parent company) are  always looking for new  ways for environment  sustainability (Yum!  Brands, 2010). KFC  benefits from this as  they have access to all of  the green technologies  that Yum! Brands  develops. 1. KFC has been linked with deforestation  activities in several parts of the world  (Halladay, 2012). 2. KFC has experienced problems with animal  rights groups, hygiene problems at certain  restaurants, and poor working conditions for  workers. This has had an adverse effect on  their brand image. 1. Switched to recyclable material  for packaging in 2009  (EnvironmentalLeader, 2009). 2. All wrappers for chips, burgers,  and cups are put through a dual  waste stream bin, which is then  sorted and sent out to recycle  (KFC, 2012). 3. Dual flush system and waterless  urinals in the restaurant help to  conserve water. 4. Increased insulation for floor,  walls, and ceiling (KFC, 2012) Subway Strengths Weaknesses Strategies 1. Work with  International Purchasing  Companies Ltd to  generate ideas for  environment  sustainability (Subway,  2012). 2. Subways brand motto,  Ã¢â‚¬Å"Eat Fresh†Ã‚  complements its  sustainability goals  (Fitzgerald, Brown &  Stewart, 2009). 3. Member of the  Australian Packaging  Covenant, which  provides Subway with  clear goals for reducing  environmental impact  (Subway, 2012) 1. Subway received some bad press for an  incident involving animal cruelty, which may  have damaged their brand image in the minds  of a few consumers (Reale, 2011) 1. Switched to more energy saving  lighting and low flow water  faucets. 2. Furniture and cleaning materials  are made from more sustainable  materials. 3. Majority of the paper packaging  used is completely recyclable.  (Subway, 2012) – Grill’d is also a competitor of the Nandos Carnegie branch. They have a brand image that promotes healthy living and their supply consists of only fresh ingredients. Their Local Matters initiative, which is used to support local charities, is a fundamental part of their corporate social responsibility program (Grilld, 2012) Internal analysis Human Resources The management at Nando’s Carnegie has had experience with Nando’s for quite some time, so they know how to implement any new operations into the business effectively. Also, this Carnegie branch is family-owned so they would be enthusiastic about any positive innovations or advancements. Marketing capabilities Nando’s uses several mediums to reach its consumers. It uses social media such as its own Facebook page and Twitter account. They also re-designed their website to give it a more informal, fun look. Nando’s also advertises in-store with a variety of posters and brochures. Nando’s also utilises TV advertising but not as intensely as the other fast food franchises. Nando’s is known for its somewhat cheeky advertising, and this has improved brand awareness since it first moved to Australia (Squidoo,n.d). Financial Resources Average revenue daily for the Nando’s Carnegie branch is approximately $2,200. So average annual revenue is approximately $791,720. Objectives To incorporate sustainability into Nando’s accounting framework, the Triple Bottom Line will be used. This means that objectives will be formed so as to address business, society and environmental factors. The TBL framework considers people, planet and profit at the core of the business. Objective 1: Reduce overall environmental impact by intensifying focus on water usage, energy usage and packaging material. By doing this, Nando’s Carnegie will aim to achieve a 50% reduction in costs. Objective 2: Increase awareness of Nando’s Carnegie’s environmental efforts by 50% among consumers by December 2014. Green Marketing Strategy Objective 1: Reduce overall environmental impact by intensifying focus on water usage, energy usage and packaging material. By doing this, Nando’s Carnegie will aim to achieve a 50% reduction in costs. Strategy Reduce water usage by 50% by December 2014. Strategy Reduce energy use by 50% by December 2014. Actions 1. Replace existing  dish washer with  dishwasher that has 4  Star Water Efficiency rating. 2. Ensure all employees  use the dishwasher only  for a full load. 3. Install time flow taps  and dual flush toilets. Actions 1. Replace fryer with  energy-efficient fryer  that has earned the  ENERGY STAR. 2. Install ENERGY  STAR convection oven. 3. Add strip curtains and  automatic door closers  to the walk-in  refrigerator to keep  inside temperature low. 4. Install CFL bulbs in  every part of the  restaurant. 5. Install demand based  exhaust control. This  regulates the exhaust fan  speed in the kitchen to  meet ventilation needs. 6. Install energy  efficient Reverse Cycle  Air Conditioner. 7. Install 7 solar panels  on roof of building. Cost $3000- $6000. Time flow taps- $300 each Dual flush toilets- $500 Cost $950- electric $4,400- gas $1,800- electric $ 3,400- gas $5 per bulb. (Times approximately 25 bulbs for the restaurant = $125) $1500 – $2000 $3000- $4000 Through the implementation of these strategies, Nando’s will be able to reduce their overall operating cost. The investment in green technology might have a high initial investment, but will definitely be profitable in the future. For example: – Energy-efficient fryers can save up to $100 for electricity or $470 for gas annually. ENERGY STAR electric ovens can save up to $190 annually CFL bulbs can reduce energy consumption by 75% Cutting down on idle time for the combination oven can save up to $800 annually. By turning down the central cooling by 3 F, air conditioning costs can be reduced by 12-15 percent. The solar panels could help save up to $400 in electricity costs. (Energy Star, 2012) Clearly, these cost savings are quite significant, and a 50% reduction in costs is therefore perfectly realistic. Strategy 4: Nando’s is already committed to eco-friendly packaging practices, as they follow the strict guidelines under the Australian Packaging Covenant. However, Nando’s does not currently work with third-party organizations to improve design and recycling of packaging, they must begin doing so in order to benefit from specialist knowledge that those firms (e.g. The Cardboard Pallet Company) have acquired. Objective 2: Increase awareness by 50% of Nando’s Carnegie’s environmental efforts among consumers by December 2014. Strategy Actions Increase communication efforts  of eco-friendly changes taking  place through a range of  mediums and creative tactics. 1. Change in-store poster design  to a green theme to emphasize  the changes taking place. N/A Cost 2. Advertise in local â€Å"Caulfield  Glen Eira Leader† newspaper  and â€Å"The Daily Green† website  about the restaurant’s green  efforts. 3. Use outdoor banners to  advertise sustainability practices. 4. Distribute brochures inside  store to raise awareness of the  shift to sustainability at  Nando’s. $500 (approximately) $300 ($150 for each banner) $2000 Other strategies that Nando’s could undertake involve: Using their food waste and turn it into compost to use it to grow plants. They could do this by having their own compost recycling operation or send their food waste to a compost facility. Encouraging more eat-ins by providing facts about the environmental impact of packaging to consumers. Using the strategies listed, Nando’s will be able to affect its Triple Bottom Line positively. Through the implementation of the strategies, they will be able to minimise their environmental impact, reduce their costs significantly and improve the store environment for the people who visit the store (i.e. through improved design and having more decorative plants in the store). The achievement of these objectives will show Nando’s devotion to sustainability. References Archives (2007, April 11). McDonalds, Environmental McNasty? Retrieved 27 September, 2012 from http://theconcordian.com/ Baker, R. (2010, June 30). Nandos has lipsmackin’ giveaway plan. Marketing Week. Retrieved from http://www.marketingweek.co.uk/nandos-has-lipsmackin-giveawayplan/3015217.art icle Barriaux, M. (2007, July 05). McDonalds goes green, but not all customers are lovin’ it. The Guardian. Retrieved from http://www.guardian.co.uk/ Davis, P. (2007, November 13). Is your company naughty or nice? Consumers want to know before buying. Retrieved September 27, 2012 from http://www.marketingexperiments.com/blog/ Energy Star (2012). Energy Star Guide For Restaurants. Retrieved from http://www.energystar.gov/ia/partners/publications/pubdocs/restaurants_guide.pdf?04bb-ca54 Environmental Leader (2009, January 28). KFC Switches to Earth-Friendly Packaging. Retrieved September 28, 2012 from http://www.environmentalleader.com/ Ethical Footprint (2010, May 14). Unethical companies: McDonalds. Retrieved 27 September, 2012 from http://ethicalfootprint.wordpress.com/ Fitzgerald, T., Brown T. & Stewart E. (2009, April 01). Cover Story: Subway’s Journey to Green. Retrieved September 28, 2012 from http://www.chainalytics.com/wpcontent/uploads/2011/03/2009-04-Subways-Journey-to-Green.pdf Grilld (2012). Retrieved from http://www.grilld.com.au/ Halladay, J. (2012, June 25). Kentucky Fried Chicken Destroying the Rainforests. Retrieved 28 September, 2012 from http://www.the-platform.org.uk/2012/06/25/kentucky-friedchicken-destroying-the-rainforests/ Joy. (2011). 50+ Eco-friendly & Recyclable Packaging Inspiration. Retrieved from http://jayce-o.blogspot.com.au/ KFC (2012). Markey A. & Watson C. (2011, May 27). News.com.au. Retrieved from http://www.news.com.au/ McCrindleResearch (n.d.). Australians on Climate Change: Attitudes and Behaviours. Retrieved from http://mccrindle.com.au/ResearchSummaries/Australians-on-ClimateChange-Attitudes-and-Behaviours.pdf McDonalds (2012). Retrieved from http://mcdonalds.com.au/ Mumbrella. (2010, June 07). Nando’s launches single with Disco Montego in lead up to World Cup. Retrieved September 25, 2012 from http://mumbrella.com.au/nandos-launchessingle-with-disco-montego-in-lead-up-to-world-cup-27672 Nandos. (2010). Action Plan: Implementing the Sustainable Packaging Guidelines 2010-2015 (Australian Packaging Covenant). Retrieved September 25, 2012 from http://www.nandos.com.au/sites/default/files/nandos-australia-apc-action-plan.pdf Nandos. (2012). Retrieved September 24, 2012 from http://www.nandos.com.au/aboutus/nandos-australia Price, S. & Lawson, J. (1992). Nutritional and Environmental Issues in Fast Food. Nutrition and Food Science. 92(2), 4-10. Reale, R. (2011, July 15). Nike and Subway, like NFL, Support Animal Cruelty and Torture. Retrieved September 28, 2012 from http://realetybytes.com/ Retail and personal services training council (2011, n.d). Fast Food Environmental Scan 2011. Retrieved from http://rapstc.com.au/wp-content/uploads/2011/12/Fast-Food-EnvironmentalScan-2011.pdf Savita, H. (2011). EMERGING ISSUES IN CORPORATE SOCIAL RESPONSIBILITY: ISO GUIDANCE ON SOCIAL RESPONSIBILITY TOWARD CONSUMERS: IMPLICATIONS FOR MARKETERS. AMA Summer Educators’ Conference Proceedings. 22, 109-116. Schwarten, E. (2012, September 20). Consumer Spending falls again, Commonwealth Bank of Australia says. Retrieved September 26, 2012 from http://www.news.com.au/ Sebo, T. (2012, July 03). Carbon Tax: The Great Unknown. Gouldburn Post. Retrieved from http://www.goulburnpost.com.au/ Sorly, P. (n.d). The Top 5 Green Technology Breakthroughs. Retrieved September 25, 2012 from http://greenopolis.com/ Squidoo (n.d.) Nando’s Franchise. Retrieved from http://www.squidoo.com/nandos-franchise Streeter, A. (2011, August 10). â€Å"Best† Green Brands List Implies That Greenwash Works. Retrieved September

Problems Facing India Today – Overpopulation, Illiteracy, Corruption

India is one of the poorest countries in the world. The poverty in India isn't just psycological poverty. The poverty in India isn't just emotional poverty. The poverty in India isn't just social poverty. The poverty in India isn't just religious and cultural poverty. The poverty in India is an absolute poverty. The poverty in India involves poverty in every aspect of life. We all knew India is a very poor country although not so many of us knew how extreme the poverty level was in India. Now it is very clear how extreme poverty is in India. Now it is very clear how poor some Indians are. Now it is very clear how people continue to die from absolute poverty and hunger in India despite numerous efforts to help fight poverty in the world. A new multidimensional poverty Index shows that India is far poorer than Africa in both intensity and in number. The Multidimensional Poverty Index developed by Oxford University (which will appear in the upcoming UNDP human development report) shows that India is far poorer than Africa not just in number but also in intensity. The new poverty measure shows that 8 states out of the 29 states in India have more poor people than 26 poorest African countries combined. The Multidimensional poverty index views poverty from several different angles instead of just GDP figures. India like any other developing country is crippled by so many problems. For example, India's population growth rate is increasing by the day putting pressure on the limited resources and leaving many Indians in absolute poverty. India is very poor in terms of education, in terms of economic improvement, infrastructure, heath care, etc. Here are some of the problems facing India today. In today's India, there is nothing but: 1. HIGH INFLATION RATES. Fueled by rising wages, property prices and food prices inflation in India is an increasing problem. Inflation is currently between 6-7%. A record 98% of Indian firms report operating close to full capacity (2)With economic growth of 9. 2% per anum inflationary pressures are likely to increase, especially with supply side constraints such as infrastructure. The wholesale-price index (WPI), rose to an annual 6. 6% in January 2007 (1) 2. POOR GIRL CHILD EDUCATION Although India has benefited from a high % of English speakers. (important for call centre industry) there is still high levels of illiteracy amongst the population. It is worse in rural areas and amongst women. Over 50% of Indian women are illiterates 3. POOR INFRASTRUCTURE Many Indians lack basic amenities lack access to running water. Indian public services are creaking under the strain of bureaucracy and inefficiency. Over 40% of Indian fruit rots before it reaches the market; this is one example of the supply constraints and inefficiency’s facing the Indian economy. 4. BALANCE OF PAYMENT DETERIORATION Although India has built up large amounts of foreign currency reserves the current account deficit has deteriorate in recent months. This deterioration is a result of the overheating of the economy. Aggregate Supply cannot meet Aggregate demand so consumers are sucking in imports. Excluding workers remittances India’s current account deficit is approaching 5% of GDP . HIGH LEVELS OF DEBTS Buoyed by a property boom the amount of lending in India has grown by 30% in the past year. However there are concerns about the risk of such loans. If they are dependent on rising property prices it could be problematic. Furthermore if inflation increases further it may force the RBI to increase interest rates. If interest rates rise substantially it will leave those indebted facing rising interest p ayments and potentially reducing consumer spending in the future 6. INEQUALITY HAS RISEN It is hoped that economic growth would help drag the Indian poor above the poverty line. However so far economic growth has been highly uneven benefiting the skilled and wealthy disproportionately. Many of India’s rural poor are yet to receive any tangible benefit from the India’s economic growth. More than 78 million homes do not have electricity. 33% (268million) of the population live on less than $1 per day. Furthermore with the spread of television in Indian villages the poor are increasingly aware of the disparity between rich and poor. . LARGE BUDGET DEFICIT. India has one of the largest budget deficits in the developing world. Excluding subsidies it amounts to nearly 8% of GDP. Although it is fallen a little in the past year. It still allows little scope for increasing investment in public services like health and education. 8. RIGID LABOR LAWS As an example Firms employing more than 100 people cannot fire workers without government permission. The effect of thi s is to discourage firms from expanding to over 100 people. It also discourages foreign investment. Trades Unions have an important political power base and governments often shy away from tackling potentially politically sensitive labor laws. These are just a few of the problems facing India today. Life in India is nothing but absolute poverty with little hope of survival in the near future. Good education is the key to economic improvement yet India is lacking this essential key in terms of education and hence in terms of economic improvement. what do you think? what are some of the problems facing India today? How can India overcome some of these problems? Who is responsible and who is to be blamed?

Analyze and Compare Ratios of West Ham Essay Example | Topics and Well Written Essays - 1000 words

Analyze and Compare Ratios of West Ham - Essay Example It has increased far more in 2011 from 2010 than that of in 2010 from 2009. But the reported percentage is not at all a good indicator of asset performance (NYU, 2012). Debt ratios Debt ratios determine the company’s over debt load an also mix of equity and debt. So these ratios evaluate the financial risk the company and its shareholders have been facing. Debt ratio is a compared unit of company’s total debt with respect to its total assets. Specifically it shows the amount of leverage the company is using. Higher debt ratio means the company is highly dependent on its leverage and the equity position of the company is very weak. So higher the ratio means more risk the company and its shareholder has been taking. Although the total liabilities of the company has been increasing over the year but the total assets also has been decreasing in similar proportion. As a result the ratio has increased more in 2011 than it decreased in 2010 from 2009. Debt equity ratio represe nts the overall status of debt of the company. It compares the total liability of the company with respect to the shareholders fund. ... The company improved a lot in terms of shareholder’s equity in 2010 than that of 2009 as it reported the shareholder’s amount of ?13,063,000 from tremendous growth from -?290,000 in 2009. But in 2011 again it has come down to huge deficit of its shareholders’ fund. So, due to the deficit of the shareholders’’ equity in two alternative years except 2010 with respect to huge liability of the company, the shares of the company have become worthless. The main reason behind this the company is highly depended on its creditors which adversely affects the interest of investors or the shareholders towards this company. Interest coverage ratio is an indicator that determines the how easily the company can pay its interest on the basis of its gross earnings before paying interest and tax. Higher the ratio means the company’s gross earning is very high and it can easily pay the interest of its outstanding debt. This company has been reporting negative g ross income i.e. loss before paying tax and interest. So has been able to pay interest expense of its outstanding debt and these have remained due or payable for the company (JMU, 2010). Liquidity ratios Current ratio represents the working capital position of the company as it is one of the important indicators of liquidity of a company. It measures the performance of the company regarding its short term ability to pay the short term liabilities of the company. The3 current ratio of the company is has been lower than 1 in all the tree consecutive years that means it has not been able to pay its liabilities as has remained lower than liabilities. Quick ratio or acid test ratio indicates that the company has enough short term

Heian Japan Essay Example | Topics and Well Written Essays - 1000 words

Heian Japan - Essay Example led in a number of contemporaneous literatures such as The Pillow Book of Sei Shonagon by Sei Shonagon, Anthology of Japanese Literature: from the earliest era to the mid-nineteenth century by Donald Keene, The Tale of Genji and The Diary of Lady Murasaki, both composed by Murasaki Shikibu. The Tale of Genji is regarded as one of the first novels in Japan. The works of Shikibu and Shonagon highlight the Japanese court cultures with values and concepts. The Tale of Genji is the greatest classic of Japanese literature which reflects the significance of this culture especially among the women’s communities during the heian period. By well revealing the world of imperial court of Heian Japan these literatures actually portray the fascinating culture and society of that era. Murasaki Shikibu along with Sei Shonagon is an evidence of women education in Heian Japan. The capital city of Heian comprised chiefly of the royal homes of aristocratic people enjoying power. From this very city of wise dimensions, the emperors and their corresponding ministers supervised the entire country. Buddhist temples remained imperative institution throughout the Heian era. They enjoyed economic power to a considerable extent by political interference and many landed estate’s control. Relatives of the emperor or noble families were chiefly select ed as the leaders of the temples. Elite women though not accompanying official designations of emperors or ministers had access to political affairs and property ownership. They were even entitled to pass on their properties to their heirs. At the Heian court, the Japanese started adopting a culture which remained unaffected by Chinese culture (â€Å"Heian period†). In Tale of Genji the character of the handsome prince reflects the existence of love and romance in the Heian period (Bowring). This classic novel throws light on love, sex and politics prevailing in the society in that era (Bowring). The relationship of love between the member of

Discuss the role agriculture plays in modern society with its Essay

Discuss the role agriculture plays in modern society with its implications on the environment - Essay Example However, agriculture is said to be one of the biggest contributing factors in the climate change, so here is the dilemma; we need to double our food production in order to feed billions of people and even the spiraling population growth of the world in the future. Regarding this, here's the very basic point of Dr. Jonathan Foley, director of the Institute on the Environment at the University of Minnesota, "How do we feed the world without destroying it?† (TEDxTalks 1; University of Minnesota’s Institute on the Environment 1). This is a great area of concern considering that agriculture is absolutely linked with environmental issues, but on the other end, people need it as absolute necessity in order to survive. Agriculture in modern society According to Dr. Foley, â€Å"Feeding nine billion people in a truly sustainable way will be one of the greatest challenges our civilization has ever faced† (Gillis 1). This emphasizes the fact that the world’s populatio n growth is inevitable and the ultimate concern today is on how to feed billions of people in the future with great consideration of sustainability. Dr. Foley accepted the fact that it is only through agriculture people will be fed, but in line with sustainable way doing it, the answer remains to be created in great detail knowing the fact that there are various concerns that need to be taken into account. As the society becomes modern, people around the world also think differently and become health conscious at some point. Thus, complex diets are rising to the extent that people are looking forward to more healthy diets. This means enhancing modern agriculture is a must in order to meet the prevailing needs and demands of the society. After all, healthy diets are remarkably in line with agriculture as far as food production is concerned. Society at the top end are rich enough with food supplies due to their ability to produce them and avail their distribution, but the impoverish g roups continue to experience malnutrition and even starve to death (Gillis 1). The answer may be certain that appropriate food distribution and regulation is the key, but in order to address health concerns in a more efficient way, food modification and research need to be integrated with food production with agriculture. In fact, the rise of biotechnology and the breakthrough of genetically modified crops to enhance food diets have become integral components of modern agriculture in the modern society. Furthermore, the occurrence of energy crisis paved the way for enhancing or improving agriculture practices or techniques in order to provide maximum production of raw materials. These raw materials at some point may be staple food requirements which in this case using them as raw materials to answer energy crisis competes against the humans’ absolute necessity for food. One basic example is the possibility of biofuel as an alternative source of energy to answer the prevailing energy crisis. In addition, animals compete with humans on certain types of foods. This requires doubling or increasing production of these kinds of foods. In order to meet this, the answer still boils down to how agriculture should be maximized up to its full potential. However, the real issue is that the available land for agriculture needs to be increased while globalization and population increase continue to limit

Effect Size Assignment Example | Topics and Well Written Essays - 1000 words

Effect Size - Assignment Example Moderator is the variable that has an effect on the interrelationship between the two variables which have a zero order correlation. In another case an importance of the mediator variables has to be seen and it has been known by the researchers that the mediator variables have been seen to be following the models that are given by the researchers (Briggs, 2006). One of the models realizes that interferes between the response as well as the stimulus that an organism has. This model has been seen to represent the complete formulation of the mediation hypotheses that has been recognized by the social sciences researchers. In the general terms it has been said that the mediator can be defined as a variable when the relationship between the predictor and the criterion is defined and is established in an analytical manner. The external events when assume an importance of the psychological significance only than the importance of the mediators is to be realized. In this case the mediator model can be represented by the following diagrams. The mediator variable can be represented by the path diagram and this model has been seen to assume the three variable systems in which there are two main causal paths that join the variable, the path measures the direct impact of the indirect variable and this also measures the impact of the mediator (Baron, and Kenny, 1986, 1180). The variable in this case has been seen to function as the mediator when the specific set of characteristics are being followed by the variable and these are inclusive of the variations that might be noticed in the independent variable and these are the changes that have been seen to notify the changes that are related to the mediator. In a similar manner the variations that take place in the mediators notify the changes in the variable (Hayes, and Preacher, 2008, p. 880). Effect size Strength of the relationship between the two variables can be measured by the effect size. Here it can be said that the effect size is the research on a numeric scale. It is the effect size that can be helpful in making the measures if the deference between the two variables is real or if the deference is because of the change that has occurred in the various factor that have caused the changes in the values (Klein, Fan, & Preacher, 2006, p. 100). It has been seen that in case of the hypotheses testing the effect size, the sample size as well as the critical significance levels are the ones that have been given an importance and these are the ones that have been leveled with each other in hypotheses testing. An importance of the effect size has been determined in the case of the Meta analysis and in this case it has been seen that the effect size is the one that takes into consideration the different studies and it has been seen that in this case the different studies are combined together into the single studies (Briggs, 2006). It has been said that for the purpose of the Meta analysis the kind of effect size being used is the one that is in correlation with the sum of all the researches being taken into consideration.

Political Views of Martin Luther King and Friedrich A.Hayek Essay

Political Views of Martin Luther King and Friedrich A.Hayek - Essay Example People needed to be actively democratic especially then, since the barriers of racial segregation were being broken down. Desegregation to him was shallow and empty, and integration was the ultimate goal. To him, â€Å"Integration is a genuine intergroup, an interpersonal doing† (King, 118). Therefore, desegregation is a means towards integration. Integration to him was everyone’s right by the nature of him being human. According to Martin, life demanded freedom. Denial of freedom was denial of life itself. This is first the capacity to weigh and deliberate alternatives, make one’s own decisions and be responsible for one’s own action. He argued that a person’s nature of life is altered when he is denied his freedom, because freedom is a basis for a person’s life (King, 121). Martin Luther King Jr. said Americans should realize that the burden placed upon Negro citizens was the inability to vote. According to him, the right to vote was a powe rful tool for change. He suggested that there should be a law allowing all people to vote and that literacy tests should be abolished especially in areas where education was inferior and in a poor state. Purpose, which was the only way to acquire change politically, socially and economically, could only be attained by understanding power properly. He suggested that the solution to fight poverty was to eliminate it directly through guaranteed earnings. This, according to him, can be done through the creation of full time employment and incomes. Additionally, people must be made consumers in one way or another. The belief here is that when poverty is eliminated, other problems like housing will also be eliminated. Friedrich August Von Hayek is also a Nobel Memorial Prize winner, and a renowned... This essay describes main political beliefs of Martin Luther King and Friedrich A. Hayek, whose ideas greatly influenced liberal arts development. Martin Luther King Jr. thought, that Americans should realize that the burden placed upon Negro citizens was the inability to vote. The right to vote was a powerful tool for change. He suggested that there should be a law allowing all people to vote. He suggested that the solution to fight poverty was to eliminate it directly through guaranteed earnings. This, according to him, can be done through the creation of full time employment and incomes. The belief here is that when poverty is eliminated, other problems like housing will also be eliminated. According to Martin, life demanded freedom. Denial of freedom was denial of life itself. This is first the capacity to weigh and deliberate alternatives, make one’s own decisions and be responsible for one’s own action. Friedrich A. Hayek believed, that a free society calls for general rules that predict and constrain coercive powers of individuals and the government. Individuals are also empowered to develop and follow their own life plans.Friedrich examines contemporary policies such as taxation, healthcare, social security, housing, natural resources, urban planning and education in the same light of principles developed in his earlier studies. Friedrich opposes policies that aim at wealth redistribution or social justice, and is very willing for the government to provide an immense range of social services.

Sample exam answers Essay Example | Topics and Well Written Essays - 1750 words

Sample exam answers - Essay Example If firm 1 decides to produce q111 then the prices will be set at P (q111 + q2). That is, for each quantity produced by firm 1, the price is given by the curve d1 (q2). This is (d1 (q2)) firm 1’s residual demand which gives all possible combinations of firm 1’s quantity and price for a given value of q2. MC=MR. the assumption that MC is constant is made. The MR curve is given as r1(q2) with twice the slope of d1(q2) and with the same vertical intercept. The point at MC and MR meets corresponds to quantity q1ii(q2) which is the optimum quantity for firm 1. If firm 2 favors a quantity corresponding to perfect competition, q2=qc whereby P (qc), then the quantity produced by firm 1 would be 0: q1ii(qc)=0. This is where MC=MR corresponding to d1 (qc) as shown in diagram below: Given the fact that demand is linear and the marginal cost is constant, the function q1ii (q2) is also clear. q1ii (q2) is firm 1’s reaction function. Firm 1’s reaction function is the choice taken by firm 1 given an action taken by firm 2. Cournot equilibrium is the point at which firm 1’s and firm 2’s reaction functions meet given that they have the same cost function. This is shown below: First degree price discrimination is a situation where the firm is charging a price that the consumer is willing to pay. With first degree price discrimination, the producer is able to extract the entire surplus from the consumer. With the 1st degree price discrimination, the profit is equal the sum of consumer surplus and producer surplus The monopoly firm will sell quantity Q* up to the point where the price of the last unit sold just covers the MC of production. The profit of the firm is given by the difference between the price it is charging on each unit and the average cost of producing Q* units of output. The profit is given by area PAMC. 1st degree price discrimination is most practiced by single seller offering different prices to different individuals. In this

Bombardier Aerospace Essay Example for Free

Bombardier Aerospace Essay After acquiring a few companies, Bombardier Aerospace was now faced with the challenge of how to align the operations of these companies who all had different sets of data, processes and systems. Major areas of concern were process delays, low inventory turn, inconsistent pricing and billing of materials among others. Bombardier introduced the Enterprise Resource Planning (ERP) into its aerospace division with a vision to achieve higher efficiency in manufacturing and also to significantly save cost. To assess the performance of this IT project, Bombardier Aerospace needs to consider the following six variables which are interdependent as far as success or failure is concerned. System Quality examines the desirable characteristics of an information system. These may include ease of use, system flexibility, system variability and ease of learning. If we take a look at the first phase of the project which was carried out at the Mirabel Plant, we realize that this element of system quality is not very solid. There were complaints from users with regards to the IT system. Problems were encountered after the Go Live and as a result, several users were still using legacy systems for some aspects of their work. In the second phase at the Saint-Laurent plant, we realize that after robust measures were put in place, they achieved data accuracy of 97 percent. The second variable to consider is Information Quality. This examines the desirable qualities of the system output such as its relevance, understandability, currency, timeliness and usability. The methods employees encountered delays in modifying bills of materials. Also, it took some time before they could understand what information the newly formed Master Data group required of them. This tells us that Information Quality was poor in the first phase of ERP implementation. As far as the Use of the IT project is concerned, Bombardier Aerospace needs to look at the degree and manner in which staff and users utilize the capabilities of the system. For instance, the amount of use, frequency of use, appropriateness of use or the purpose of the use. In the phase two, most users of the new system reacted positively to it but the project at the Mirabel plant was quite different. Sourcing agents could not approve a purchase order for a part if its contract did not contain a price or if the current price was different from that stated in the contract. This was a flaw in the system as far as its use was concerned. Another way to assess the IT project’s success or failure is by measuring the User Satisfaction. Not until after about one year after Go live, user satisfaction at the Mirabel plant was not good enough. Users from various functions complained about significant delays in getting answers to their queries. At the Saint-Laurent plant on the hand, most users felt that the new system made their job easier. The ERP implementation had different impacts on individuals. Employees in finance at the Mirabel plant were frustrated by the system. They had to make manual corrections to the general ledger if materials were issued incorrectly. At the Mirabel plant, the majority of users thought that the new system had impacted them positively. They thought that their inputs were taken into consideration and they virtually used the system in all instances. In terms of organizational impact, we are able to tell from the case that the project was a successful one. One of the primary goals of implementing this system was improve visibility and reduce the value of inventory held by Bombardier Aerospace. The BMIS contributed to reducing inventories by $1.2 billion in just less than a year after Go Live. Also Procurement became more efficient and integrated due to the implementation.

Procurement Purchasing Supplier

Procurement Purchasing Supplier After having investigated briefly in general the concept of procurement and the emergence of the concept of procurement , it is imperative for us in this chapter to delve in detail the analysis of the concept of procurement , the various theories which have been predicated at the international level and their relevance for our study under investigation . We would also have to critically scrutinise how the different models of procurement effectiveness measurements can help us in our analysis to delve in greater detail the relevance of procurement from the perspective of SOM . It is important that we have to undertake a holistic approach in the investigation of procurement practices and procurement effectiveness in our literature Review chapter for this forms the foundation of our secondary research. Our primary research which would be delved in detail in the subsequent chapters would be further developed on the strong foundations of this chapter. In the final analysis we would be util ising in adequate measure the concepts from the secondary research as they develop in this chapter and couple it with our derivations from primary research to gain a greater in-depth understanding of procurement practices in Shell Oman and hypothesize relevant recommendations and remedial solutions for bringing about effective changes in the present operational systems at SOM Definition of Procurement Relevance : it is important for our study to understand clearly the meaning and exact phraseology behind procurement for the purposes of investigation of procurement practices in SOM . Since Procurement is an extremely broad concept which has applicability from strategic , operations and tactical level , various definitions would have to be looked into and strategically decipher their level of applicability for our purpose of investigation . Procurement, purchasing, and supplier management are all terms used extensively. They may mean the same or sometimes may have significant differences. Since the term procurement covers many areas, from operational to strategic levels, Knudsen (1999) has summarized the different terms, used for acquiring good and services in the following table. Level Term Meaning Strategic Supply Management To be aware of the strategic impact of procurement and fully exploit it by formulating a supply strategy Tactical Procurement To satisfy internal demands with external sources which adhere to objectives set at the strategic level Operational Purchasing The minimum activities required to obtain external products or services that result in invoice from an external source Timo et al (2005), argued in their document, the quantitative definition of purchasing is not accurate and suggest to a broader scope of purchasing, adding pensions, other personnel costs, financial expenses and increase in assets within the scope. They define Purchasing as: â€Å"Invoices or payments based on exchange of physical objects, services or rights†. There are two basic types of purchasing in the business world: (1) Purchasing for resale and (2) purchasing for consumption or conversion (Dobler and Burt, 1996). Purchasing for resale is performed primarily by merchants. Industrial buyers buy materials, services etc. for manufacturing companies, service business, institutions, utilities, and various government agencies. Other definitions of Procurement are as follows: Procurement is the acquisition of systems, goods or services at the best possible total cost of ownership, in the right quantity, at the right time, in the right place for the direct benefit or use of the governments, corporations, or individuals generally via, but not limited to a contract. (Project Management Body of Knowledge, 2000) Procurement is the process of acquiring goods, works and services, covering both acquisition from third parties and from in-house providers. The process spans the whole life from identification of need, through to the end of a service contract or the end of the useful life of an asset. It involves options appraisal and the critical â€Å"make or buy† decision which may result in the provision of services in-house in appropriate circumstances. (The Procurement process The Buyers Magazine, 2000). In the context of a procurement process, obtaining â€Å"best value for money† means choosing the bid that offers â€Å"the optimum combination of whole life cost and benefits to meet the customers requirement†.† (National Procurement Strategy for Local Government in England, 2003) The Importance of Procurement Relevance : The importance of procurement in the changing face of corporate scenario of today is all the more important as there is a greater strategic interface between the procurement department and the other key departments within functional global corporate entities . In this regard the study of importance of procurement as a terminology would help us in understanding and appreciating the strategic shift in focus of procurement operations from tactical to a crucial strategic level . This would help us in highlighting the importance of procurement practices in organisations such as SOM under investigation Many authors wrote about the importance of procurement function in todays organization and how it can impact the bottom line. Different terms are used in the literature, Procurement, Purchasing or Supply management but they all apply to the process of acquiring goods and services for the business, which account for a huge corporate expenditure. The following main objectives show how the procurement function can contribute to a companys competitiveness (Axelsson et al, 2005): †¢ Cost optimisation (e.g. lower transaction costs and overhead costs) †¢ Asset utilisation (e.g. outsourcing and inventory management) †¢ Value creation (e.g. process/products development and quality improvement) According to Procurement strategy council, the procurement function today is viewed as an important component of a firms strategic arsenal, the modern purchasing department can reduce a firms operational expenditure through streamlined purchasing and price reductions for goods and services. The article discuss that a smart purchasing can reduce costs 20% to 30%, freeing up funds to be used elsewhere. The realization that purchasing can impact bottom line saving has elevated procurements strategic importance. (Procurement Strategy Council, 2001) Improving the Bottom Line Reductions in Procurement Costs Directly Affect Net Income Income Statement (in millions US$) Initial 3% Reduction in OR Revenues $1000$1000 Operating Resources (OR) $350 $339 Direct Materials$220$220 Wages, Salaries, Benefits$200$200 Depreciation$110 $110 Taxes $60$60 Net Income After Taxes $60$71 Reducing purchasing costs translates directly into bottom line savings. By lowering OR costs by $11 million, a firm directly raises its after tax income by the same amount. Source: (Procurement Strategy Council, 2001) Further, van Weele describes in his book, ways that procurement can contribute to the companys competitiveness. They play a critical role in quality assurance by working with suppliers to ensure higher quality standards regarding incoming goods and services. Procurement can also effect how quickly a firm reacts to changes in demand, through increased involvement in supply chain coordination and inventory management. In addition, by reducing purchasing costs the function can contribute to substantial price reductions of the end product. The leverage effect of purchasing can be considerable depending on the purchasing-to-sales ratio and the capital turnover ratio. (van Weele, 2005) Nowadays companies outsource most of their activities, increasing their reliance on the competitiveness of their suppliers. . (J. Hamilton, 2002). As a support case study, the case of Toyota cars (Japan), can be highlighted, wherein 83% of all activities are outsourced form various global suppliers. (Toyota, 2000). This makes the process of procurement quintessential and in fact the most important, in todays business world. If a company procures the right quality products, at the right price, with the right delivery schedule, only then and then alone can it remain productive and competitive in todays environment (Ian McMillan, 2005) This shows that if the procurement process is not right, then the company product, the company image, competitiveness et al would surely take a dive. According to van Weele, â€Å"This is why management has become increasingly aware of the purchasing function†. Once regarded as a reactive activity, the procurement and sourcing process at leading firms is at the forefront of responding to and creating change. (Procurement Strategy Council, 2001) Within the past year, several new research initiatives from different relevant perspectives prove persuasively that excellence in procurement can lead to a host of proven, quantifiable business benefits (Procurement Strategy council, 2001). Lower operating costs, higher ROI, and a direct contribution to the bottom line are among the principal advantages that have been documented. The increased impact from purchasing on corporate performance is supported by a study recently conducted by IBM Business Consulting Services. In the study, called The 2005 Chief Procurement Survey, purchasing managers and other people in leading positions at companies around the world were interviewed concerning the current and future role of purchasing. Many reasons to the increased importance are pointed out, for example the growth in outsourcing, corporate restructuring and increased supplier value adding and risk. (The 2005 Chief Procurement Survey, 2005) Another study, conducted by business consultancy Archstone Consulting, found that nearly 90 percent of participants agreed that procurement plays a strategic role in the competitiveness of their organization, but needs to be further elevated in the organizational hierarchy to be truly effective. (Supply and Demand Chain Executives, 2004) The best-practice companies truly understand the power of procurement, says Pierre Mitchell, a director at The Hackett Group, which recently concluded an in-depth research into the procurement practices of more than 300 companies, found that world-class organizations generate 133 percent greater return on their investment in procurement than the average companies. The bottom line is that world-class companies continue to take a very different view of procurement, looking at it as an investment rather than as a cost center, says Mitchell. This is how they generate the millions of dollars in additional savings that other companies dont see. (Quinn, 2005) Ready or not, procurement is moving to center stage, with top billing on the corporate agenda. At companies around the world, CEOs and boards are counting on procurement initiatives to keep their businesses favourable positioned in todays intensely competitive marketplace. (The Global CPO Survey, 2005) To understand the new found omnipotence of the procurement process in organisational hierarchy, it is imperative to understand the stages of development of the process, right from its inception (Quinn, 2005). Historical Development Relevance : The historical development of procurement would help us to analyse the changing face and role of global procurement practices and understand critically how over the years the concept of procurement has begun to occupy the one of the centre stages for corporate performance . As would be revealed in this section we would find that procurement can no longer be visualised as an isolated entity but has to be strongly viewed as an inherent and integral part of the process of company operations. The historical development of procurement would add on a chronological dimension to understand the growing importance of procurement over the past decades . In the early 1970s, Ansoff, opined that the purchasing process played a passive role in the business organization and did not have any strategic role. (Ellram and Carr, 1994). The 1973-74 oil crisis and related raw materials shortages drew significant attention to the importance of purchasing. However, top management and purchasing professionals, did not react to enhance the role of purchasing in corporate strategy until when Porter came with his famous five force model that shape the competitive nature of industry, identified buyers and suppliers as two of the five critical forces. Thus, the strategic importance of the supplier and the firm as a buying entity began receiving recognition in the mainstream strategy literature. (Ellram and Carr, 1994). Since then 1980s the attitude toward procurement was changes and evolving to a more strategic level. According to the procurement strategy council article, the procurements movement from a tactical to a more strategic role in corporate operations is predicated on a broader shift in corporate strategy. Before World War II, purchasing departments accounted for barely 20% of corporate expenditures. Today, purchasing departments are responsible for 50% to 70% of corporate expenditures. This explanation is supported by Monczka et al. First, that the role of purchasing is presently being reshaped in order to fit the modern economy. This is related to the increasing globalisation, technology development and changing consumer demands. Another conclusion, according to Monczka et al, is that purchasing must continue its integration with customers, information systems, operations etc. (Monczka et al, 2000) The following table shows a compilation of strategic and operation tasks carried out in the procurement function. Strategic Procurement Identify necessary capabilities to match the customers needs regarding flexibility, innovation, agility, quality, responsiveness, cost levels and price levels Assess ones own capabilities (Knowledge, technology, capacity, competence, long term importance, total cost) Assess supplier capabilities (knowledge, technology, capacity, competency, long term imprtance, total cost, type of market, localisation, and substitutability) Model cost drives for items purchased Model Single/ Multiple sourcing effect on total cost Model how supplier relationship affect total cost (cost benefit of engaging in a close supplier relationship) For close supplier relationships share information and knowledge and make relation-specific investments Procurement Process Identify needs Conduct market analysis Send out and expedite RFx Do Background review Negotiate contracts and select suppliers Purchase order fulfilment Monitor supplier performance Internal Tasks Analyse corporate spending Parts bundling Aggregated corporate expenditures Develop relationships with internal customers Reduce maverick buying and promote compliance Disseminating procurement relation information External Tasks Scan for innovations Monitor, disseminate and stimulate Develop new sources Foster external capabilities Source Strategic Procurement Council, 2001. Value Improvement (Value Based Procurement The Organisational Quintessential) Relevance : It is important for us to understand the concept behind value improvements or value based procurement . The fact that tangible and intangible values could be quantified to procurement products and services makes the study of procurement systems all the more interesting for definitive mathematical extrapolation of the relevant results. Value systems and the ability to attribute value systems makes the procurement operational systems multidimensional and unique . Furthermore this is a system which could be aptly applied for effecting improvements in procurement systems for SOM, therefore a thorough investigation of the relevant concept is deemed important for our investigation . To be successful in business, we need to satisfy our customer by providing them with something they perceive as value. Since we are dealing with internal customers and suppliers, the concept of value becomes vital, which is directly linked to customer satisfaction. High customer satisfaction means their needs are met at high level. The customers will be satisfied if the product or service provides them with value. The term ‘value is used in every day business language however it is often misused and misunderstood. The concept of value has many definitions (Zeithaml, 1988; Anderson et al., 1993; Monroe, 1990; Gale, 1994; Woodruff, 1997) but generally they are not distinct. Common themes throughout these definitions are that (Dumond, 2000): Customer value is linked to the use of a product or service, thereby removing it from personal values; Customer value is perceived by the customers rather than objectively determined by the seller; and Customer value typically involves a trade-off between what the customer receives (e.g. quality, benefits, worth) and what he or she gives up to acquire and use a product or service (e.g. price, sacrifices). The concept of value is important for this study since our purpose is to illustrate value improvement initiatives to enhance the current procurement system with Shell Oman Marketing. According to Hill (2005), value can be classified under two headings: Use Value: The properties and qualities that accomplish the function of service or product. Esteem value: the properties, features or attractiveness that causes people to want to own or use it. Value, therefore, consists of a combination of use and esteem properties related to the cost of providing them. However, the measure of value added is directly linked to customer satisfaction. The measurement of procurement activities based on traditional efficiency report, and short terms savings doesnt support value base procurement. In order to reflect shift in the focus in procurement activities, new measurement techniques must be target at those activates which reflect value to the stakeholder. (Butler, 1995). An interesting study conducted by Dumond (1994) about creating a value base procurement. Based on his finding, many firms the operating environment does not support value-based purchasing. Senior management plays a critical role in developing an environment that will support and encourage value-based purchasing, the following steps are recommended: Focus individual purchasers on customers needs and identify the value-adding processes Develop a performance measurement system that emphasizes quality, process improvement, and customer satisfaction Integrate purchasing into the firms communication system (elevate if needed) Educate-not only individual purchasers but also their customers. 2.4Value Analysis Framework To analysis value in a system, it will be useful to the use the value analysis procedure, which is discussed in Terry Hill book of Operation Management (2005). The steps involved are: Select the service or product Gather information about it Analysis its function and its value for money Generate alternative ways to provide the same function through speculation and brain-storming Assess the worth of these ideas. Decide what is to be done Implement the decisions Evaluate the result EFQM Excellence Model Relevance : EFQM system analysis is extremely important for our investigation because EFQM model based on European models of operational management and Quality management help us through an exhaustive interface between strategic inputs and outputs to measure the effectiveness of procurement systems and delve on the findings to derive adequate strengths and measures for any procurement operational system . Since our investigation is essentially based on finding the points of improvement in SOM and capitalising on the strengths an understanding of the relevant model is highly warranted for our investigation and proposed study . Moreover since EFQM model visualise the operational mechanics of procurement system from multidimensional angles it is imperative for us to investigate the mechanics of operation of EFQM model in sufficient details for finding the relevant applicability for our study under investigation . The European Foundation for Quality Management (EFQM) is widely discussed in the literature and many organizations have applied it as a tool for assessing all aspects of an organisations activities and results. According to EFQM, the model is intended to promote continuous improvement and is an aid to effective benchmarking. Excellence Model was introduced at the beginning of 1992 as the framework for assessing organisations for the European Quality Award. Now it became the most widely used organisational framework in Europe and considered as the basis for the majority of national and regional Quality Awards. 2.4.2Benefit of EFQM The EFQM Excellence Model  is a  business model tool  that can be applied in many different ways: As a business model for being able to assess independently the competency of the organization by the organisation itself. As a measure to benchmark other organisational functioning and strategy. As an improvement tool for highlighting areas to improve. As a common denominator, standard measurement scale or a common vocabulary. As a structural guide for the management of any organisation. The fundamentals of the EFQM Excellence model are based on nine criterions which are cannot be prescribed and such are practical in nature and application. Five of these are Enablers and four are Results. What a particular organisation does, those factors qualify as ‘Enablers†. The achievement of an organisation qualifies as the Results Criterion. Results are caused by Enablers and Enablers are improved using feedback from Results. Excellent results with respect to Performance, Customers, People and Society are achieved through Leadership driving Policy and Strategy that is delivered through People, Partnerships and Resources, and Processes. (Procurement modelling-a discussion, Harvard Review Press, 1996) The Fundamental Concept of EFQM Excellence Model are: Results Orientation Every organisation should look for the outcome of â€Å"enablers† to delight customers. . Customer Focus Excellence is creating sustainable customer value. Leadership and Constancy of Purpose Excellence is visionary backed by inspirational leadership, with constancy of purpose. . Management by Processes and Facts Excellence is managing the organisation through a set of interdependent and interrelated systems, processes and facts. People Development and Involvement Excellence is maximising employee contribution through employee development and involvement. Continuous Learning, Innovation and Improvement Excellence is challenging the status quo and bringing change by learning and innovation. Partnership Development Excellence is developing and maintaining value-adding partnerships. Corporate Social Responsibility Excellence is exceeding the minimum regulatory framework in which the organisation operates and to strive to understand and respond to the expectati ons of their stakeholders in society (Harvard Review Press, 1996) 2.5 Procurement Value Improvement Framework (The Shell Oman perspective) The structure of literature is in line with the value analysis framework. First, we identified the service we want to investigate, which procurement activities in Shell Oman Marketing. Secondly, we provided information about the procurement function in Shell Oman and its structure. Thirdly, we use Soft System Methodology (SSM), which is strong in analyzing a holistic situation and capture qualitative data. The SSM will only be used to develop understanding of the challenges exist in the current system. Unstructured Interview is strong in determine many qualities aspect which will be useful in revealing out issues and problems that other method of research can meet this object effectively. Therefore, to get different perception, it will be useful to carry out a survey through an interview with five key internal business stakeholders to analysis the strength and weakness of current contract and procurement activities. Fourthly, we dig in the literature and journals to search for ways o f adding value improvement to procurement function. Plus, interviews with two large companies in similar field to identifying the industry best practice in procurement function. Fifthly, an analysis of all the procurement best practices generated from above stage, which will be discussed in chapter 4 in detail. Sixthly, in chapter 5, based on the analysis, we will recommend the way forward. Unfortunately, this research will be limited at the recommendation stage and will not have the opportunity to implement and evaluation the result. 2.6The Purchasing Maturity (Organisational Stratagem) We can observe that the purchasing role in providing added value has evolved and has been modified along with the importance and the place taken by purchasing in organizations. In figure 3 the main values added by purchasing are related to each of the evolution stages towards purchasing maturity (van Weele, 1998). In the first stage the main value added by purchasing is by assuring the continuity of the supply. In the second stage the already purchased items have an increased importance in companys costing cost structure. The role of purchasing then left is to minimize material costs and improve /up the bottom line. Stage 3 would center on co-ordination between various departments .The main values added by purchasing are greater compliance with pre-negotiated contracts, uniform buying policies and systems and capturing the benefits from internal co-ordination. The next stage lays stress on use of inter-functional teams and the reduction pf the total systems costs satisfaction of the internal customer seems to be the main focus of purchasing then. The supply orientation stage envisages the selection of suppliers on strategic company guidelines, requirements, long-term relationships design, supplier network management and early involvement in the new product development process. In the final s tage the main goal is to design the most effective and efficient value chain possible to serve the end customer. This last stage is characterized by an extensive use of cross- functional supplier development teams and a close collaboration on advance technology with suppliers. (Telgen Sitar, 2001) 2.7 Categories of Value Added Procurement The literature review highlights five main categories of value added procurement which are representative and important for every organization: Better contracts Improved purchasing efficiency Customer satisfaction (improved quality and service) Closer and more cooperative relationships with suppliers Reduced costs, improved quality and increased time to market resulting from an early involvement of the purchasing department in the new product development process (NPD). The first four categories of values added are based on Leenders and Schiele (1999). Basically, the researcher took one aspect from each of the above categories of value added. The role of the purchasing department should be considered from all possible angles and viewpoints. There is an increasing contribution of the purchasing department in the new process development in todays organisations, with specific and special interests in -the contribution of the purchasing department in the areas of quality, cost and time to market resulting from an early involvement of the purchasing department in the NPD process. The Resource Based View of Procurement Relevance : The analysis of this model for procurement is important for adding diversity to our investigation of procurement systems and their mechanics . Resource based view of procurement is one of the important views for procurement practices from the global perspective especially from the point of view of competing firms in highly dense and competitive markets , where because of oligopoly of procurement practising firms each firm would have to build a set of unique identifiable resources to capitalise on a