Milton Friedman and profit maximisation

Milton Friedman and profit maximisation The only purpose of the business of business is business and the only social responsibility of business is to increase its profits. And to utilize all resources and engage it in such activities that are designed to increase its profits. Consumer or customers are the useful tool who bring the cash flow or profits to the organisation which they use to flourish and to accomplish their goals and objectives. The organisations exists only for making profits and by providing tangible or intangible products to their customers according to their needs and expectations.if the customers get satisfied ,they purchase the products or service and they give cash flows and profit to the organisations.if they are not satisfied they will go some where else to satisfy their needs and expectations, and get better value for their money. Same thing for the employees ,if they are satisfied with the company or organisation,they will be more loyal ,will work hard , be more motivated for the company, if they are not satisfied they will leave the company and go some where else. THE NEW CAPITALISTS SOCIETY SHARE OWNERS ARE BECOMING ONE AND THE SAME Organisations use the stakeholders(investors) money to establish and to flourish its business. It describes the increasing ownership of millions of savers. These millions of savers are defined as new capitalists. they include the individuals with retirement savings or pensioners, life insurance and other direct and indirect equity investments. Companys success is their primary interest , and this purpose of success can be good for the individual or single person but can be damaging for the larger economic system of the society. There are thousands of organisations and companies that are doing businesses around the world that are being funded by the money of pensioners, and life insurances .The governments also utilize or invest the tax money in different businesses and companies around the globe. In this way the governments play a role of a stakeholder, when the companies in which the pensioners money is invested ,when they get profits ,they give dividends to the governments who have invested in them , the governments take the profit to pay their pensioners, they do this in order to support the pensioners. CHARLES HANDYS STAKEHOLDERS VIEW. Charles accepts and argues that creating value where none existed According to him the first and the important need of an organisation is to meet Expectations of the stakeholders. According to this view the main purpose of the business is not to make a profit It is to make a profit so that the business that can do something more or better. That something becomes the real justification for a business. A companys stakeholders are individuals or groups with an interest ,claim ,or Stake in the company, in what it does, and in how well it performs. So the organisation has the responsibility to satisfy the needs and expectations Of the people who bring cash flow and risk capital to the organisation, so it Exists in the business market. One of the most important choices that a company makes is to utilize the scrace resources and to balance the needs of the stakeholders by building sustainable development principles into all the aspects of the business activity. After investors the suppliers get involved for providing the stock of raw materials .consumers /customers also get involved and they bring cash flow or profit to the organisation. Accually we can say that it is a cycle of investing ,selling and bringing cash flows. The money of the capitalists or the share holders which they invest in the company , they expect big chunk of dividends from the company as profits, but the board of directors want to give less dividends and keep the profits for the growth or for reinvestments or for flourishing the business further. Any one who has an interest of any kind in the company is called a stakeholder, it could be an individual , a group ,or it can be an organisation of any kind that is affected by any kind of actions and decisions that a company may take. Shareholders, employees ,suppliers, customers , financial institutions, government and society , they all are stakeholders, who directly or indirectly have interest of any kind in the company, and these stakeholders are interlinked with the organisation ,they can influence and can be influenced by the organisation. CONCLUSION On analysing the three views on the purpose of the business.I believe that the main purpose of the business is to make profit, the capitalists also play a very crutial role in the business, but I strongly believe and agree the view of CHARLES HANDY because I think that stakeholders are the legal owners of the company and the providers of the risk capital. The capital that the stakeholders provide to the company for investment is seen as risk capital because there is no guarantee that stakeholders will ever recoup their investment and earn a decent return. And I really think the organisation must really serve the stakeholders. ( B) What are the implications of these three differing views for Managers development of organisational strategy? ANS:-An important and foremost part of strategy -making process is ensuring that the company maintains the support of its key elements or stakeholderson which it depends for its functioning and for its ultimate survival. And it should keep in mind these following steps; Identify stakeholders. Identify stakeholders interest concerns. Identify what claims stakeholders are likely to make on the organisation. Identify the strategic challenges. These are the key steps that will identify who the organisation is really serving,what are the needs and expectations of our stakeholders, what are the basic concerns of our stakeholders and how we are gonna satisfy them by facing different challenges. Despite the experiences of many organisations around the world, it is possible to turn strategies and plans in to individual action plans, necessary to produce a great business performance. It is not an easy task ,many companies usually fail to motivate their people to work with enthusiasm ,all together , towards the corporate aims of the organisation . Most companies know their businesses as well as their strategies are required for success. However many corporations fail to translate their strategy in to action thats why they fail to implement and sustain it successfully. In another study of 200 companies in the Times 1000, 80% of directors said that they had the right strategy but only 14% thought that they were implementing them well. No doubt linked to the finding despite of 97% of directors having the strategic vision only 33% reported achieving significant strategic success. (source :- Why do only one third of UK companies achieve strategic success?- I COBBOLD G LAWRIE, 2GCLtd., May 2001.) The message is very clear that effective strategic realisation is the key to strategic success. By corporate governance , we mean the mechanisms that exist to ensure that managers pursue strategies that are in the interests of an important stakeholders. Professional managers are the agents of the stakeholders, as agents managers should pursue strategies that maximize long-run returns to stakeholders. So for a manager it is important to realize the strategy of the organisation ,realize the stakeholders ,their needs and expectations, and how to satisfy them. ( C):- Stake holders represent more challenges than opportunities. Appraise the conflicting needs, power and influence of stakeholders? ANS:- stakeholders groups are not usually homogeneous, but it contains a variety of sub-groups with different expectations and needs.A stakeholder is any individual or an organization that can or is affected by the activities of a business. They may have a direct or indirect interest and influence in the business, and may be in contact with the business on the daily basis or may be just occasionally, A companys stakeholders are individuals or groups with an interest , claim ,or stake in the company, in what it does and in how well it performs. A companys stakeholders can be divided in to two catagories. Internal stakeholders External stakeholders. Internal stakeholders are the stockholders and the employees, including executive officers, other managers , and board members. External stakeholders are all other individuals and the groups that have some claim on the company . this group contains customers ,suppliers ,creditors, governments ,unions, local communities and general public. STAKEHOLDERS NEEDS EXPECTATIONS:- All stakeholders are in an exchanging and interlinked relationship with the company . Each stakeholder group supplies the organisation with important resources or contributes one thing or the other to the company and in exchange, each expects its interests to be satisfied by the organisation. Stockholders provide the organisation with risk capital or with the investment and , in exchange , expects management to try to maximize the return on their investment or inreturn they want a big chunk of dividends. Creditors such as bondholders provide the company with capital in the form of debt, and they expect to be repaid on time with interest. Employees provide labour and skills and in exchange, expect good wages ,job satisfaction ,job security, and good working hours and conditions. Customers provide company with its revenues and in exchange want high quality reliable products that represent value for money. suppliers provide a company with inputs and in exchange seek revenues and dependable buyers. Governments provide a company with rules, regulations and laws that govern business practice and In exchange they want companies that respect these rules and they work accordingly to their regulations and pay their taxes. Unions help to provide a company with productive ,loyal trust worthy employees or workers, and in exchange they want benefits for their members in proportion to their contributions to the company. Local communities provide companies with local infrastructure and in exchange Want companies that are responsible citizens. The general public provides companies with national infrastructure and in exchange seeks some assurance that the quality of life will be improved as a result of the companys existence. A company should take these claims in to account when formulating its strategies. If it does not , stakeholders may demand higher interest payments , employees may leave their jobs and go away, and customers may buy elsewhere. Suppliers may seek more dependable buyers. Unions may engage in labour disputes. Government may take civil or criminal action against the company. Any of these reactions can have a damaging impact on an company or organisation. Managers cannot always satisfy the needs and expectations of all the stakeholders. The goals of different groups may conflict , and in practice , few organizations have the resources to satisfy all stakeholders needs and expecations. For example , unions claims for higher wages can conflict with consumer demands for reasonable prices and stockholders demands for acceptable returns. Often the company must make choices. To do so , it must identify the most important stakeholders and give highest priority to pursuing strategies that satisfy their needs. STAKEHOLDERS POWER:- Power is the mechanism by which expectations are able to influence purposes and strategies . It has been seen that in most organisations , power will be unequally shared between and among the various stakeholders. Power is the ability of individuals or groups to persuade , dominate the other.internal stakeholders have great influence and power on the organisations because of the authorities and power they have. There are many different sources of power. But stakeholders may have power by other means. Since there are a variety of different sources of power, it is useful to look for the indicators of power, which are the visible signs that stakeholders have been able to exploit one or more of the sources of power. There are four useful indicators of power. 01 The status of the individual or group. 02 The claim on resources. 03 Representation in powerful position. 04 Symbols of power. By looking at these four indicators , it may be possible to understand which people or groups appear to have power by a number of these measures. It should be remembered that the distribution of power will vary in relation to the particular strategy under consideration. A similar understanding of the power held by external stakeholders can be useful. The indicators of power here are slightly different: e.g. internal stakeholders have great power and influence in the organisation, if they are satisfied with the facilities and organisational environment /atmosphere , where they work the condition and the wages are good , they will work hard and be loyal to the organisation, but if they are not satisfied , they will distrupt the internal management, and they can bring uncertainty in the plans.like this other shareholders have their influencing power as well. (D) How can organisations manage shareholders conflicts and handle issues of ethics ,corporate governance and regulation? ANS:- The term ethics means right or wrong that governs the conduct of a person, the behaviour of members of a profession, or the actions of an organization. Business ethics are the accepted principles of right or wrong governing the conduct of businesspeople. Ethical decisions are those by which we mean the right and wrong conducting principles that are accepted by the society, but unethical decisions are those that are unacceptable or which violate the rights. Corporate governance is a broad term that has to do with the manner in which the rights and responsibilities are shared among owners , managers and shareholders of a given company. In essence , the exact structure of the corporate governance will determine what rights, responsibilities, and privileges are extended to each of the corporate participants, and to what degree each participant may enjoy those rights. Generally , the foundation for any system of corporate governance will be determined by several factors, all of which help to form the final form of governing the company. { http://www.wisegeek.com/what-is-corporate-governance.htm} The ethics issues that arise in an organisation and that are being faced by the managers have different aspects , but mostly it arises from the conflicting goals and objectives the company and the individual objectives of managers, and the rights of the stakeholders, including stockholders, customers, employees, suppliers , competitors, communities , and the general public. Stakeholders have the basic rights that should be respected , and it is unethical to violate those rights of the shareholders. Stockholders have right to timely and accurate information about their investments, and it is un ethical to violate that right. Customers have right to be fully informed about the products and services they purchase, including the right of information about how those products might cause harm to them or others, and it is unethical to restrict their access to such information. Employees have the right to save working conditions, to fair wages for the work they perform , and to be treated in a just manner by managers. Suppliers have right to expect contracts to be honoured , and the firm should not take advantage of the power ,and rewrite a contract. Competitors have the right to expect that the firm will abide by the rules of competition and not violate the basic principles of antitrust laws. Those who follow the stakeholders view of business ethics often argue that we should respect the fundamental rights of stakeholders , because doing so will ensure the support of stakeholders , which ultimately benefits the firm and its managers. Others go beyond this instrumental approach to ethics to argue that in many cases , acting ethically is simply the right thing to do. They argue that businesses need to acknowledge the principles and give back in return some thing to the society for its development and growth. Oftentimes , unethical behaviour arises in a corporate setting when managers decide to put the attainment of their own personal goals , or goals of the company , above the fundamental rights of one or more stakeholders group. First it is important to recognize that business ethics are not different from personal ethics , which are the generally accepted principles of right and wrong doing of an individuals. As individually we are taught that it is wrong to lie and cheat it is unethicaland that it is right to behave with integrity and honour and stand up for what we believe to be right and true. The personal ethical code comes from different sources , our personal ethical code will exert a profound influence on the way we behave as businesspeople. This includes considerations as to how the conflicting demands of different stakeholders will be reconciled. It is useful to distinguish between contractual stakeholderssuch as customers ,suppliers , or employees who have a legal relationship with organisation and community stakeholderssuch as local communities , consumers and pressure groupswho do not have the protection of the law to the same extent as the first group. Managers are usually in a powerful position within organisations to influence the expectations of other stakeholders. They have access to information and channels of influence which are not available to many other stakeholders. With this power comes an ethical responsibility to behave with integrity . Given that strategy development can be an intensely political process, managers can find real difficulties establishing and maintaining this position of integrity. There is a potential conflict for managers between what strategies organisation and the shareholders. Integrity is the key ingredient of professional management and is included in the code of conduct of professional bodies, such as the Chartered Management Institute. (Q) Critically analyse the content and relevance of the mission statements for each of the three different organisations (pg165), with regards to their goals ,values ,and objectives? TATA STEEL;- TATA STEEL as it is also well known as TISCO(Tata Iron and Steel Company Limited) was the vision and hardship of a single person JAMSETJI NUSSERWANJI TATA and the history of TATA STEEL is like hundred years old. It is the largest steel company in india and is the worlds 15th largest steel company. TATA STEEl company went through very hard routes to reach at the place and position where it is today. The modern and scientific methods from the west helped TATA STEEL a lot to survive and now it is the well known and recognised leader in steel in india. MISSION:- we aspire to be the global steel industry benchmark of value creation and corporate citizenship. VISION:- our people , by fostering team work , nutruring talent , enhancing leadership capability and action with pace , pride and passion. our offer, by becoming the supplier of choice , delivering premium products and services and creating value for our customers. our innovative approach , by developing leading edge solutions in technology, processes,and products. our conduct , by providing a safe working place, respecting the environment, caring of our communities and demonstrating high ethical standards. MISSION:- Keeping in mind the vision and values of the founder jamsetji Tata, Tata Steel, is tring hard to strengthen Indias industrial base by proper utilizing its resources , like men and material. According to Tata Steel honesty and integrity are the essential ingredients of becoming a strong and stable organisation, and for economic activity profitability is the main path. CONCLUSION:- In Tata Steels mission and vision , their future direction or course of activity are very clear. profit maximisation but it also keeps in mind the expectations ,needs of the stakeholders and try to do justice with them. This organization seems to be very promising about the ethical standard , working conditions and facilities for their workers. I n my opinion this is the key element for any organisation to flourish and survive for a long time. Tata Steel has used this and other key elements and has survived for more than hundred years by its great commitment of becoming the first choice as a supplier by providing the best products , services and by creating a good value for its customers, by utilizing modern technology to process its products . In all these process they are very much concerned about the communities and most of all the environment. By keeping good reputation in the industry ,they are building a very good image of India in all over the world. Tata Steels main objective is to become a leader in steel industry by utilizing all its available scare resources and keeping the exising clients happy and getting new clients as well for its maximum profit and keeping employees happy as well. It is a very challenging objective but not impossible one. THE METROPOLITAN POLICE:- In the world every country ,society or community have their own security or police departments or force, which are there to protect , secure the persons and properties. Police is a department under the controll of the government to keep peace and secure society. Governments make laws and regulations for the betterment of the society or community and the police reinforces them, so that the society can benefit. It is a very challenging job , they have to be alert every seond for stopping the anti social activity or behaviour. Like that Metropolitan police is the force of England to keep the society at peace.and to stop the anti social behaviour and attitude which is like an ulcer of the sosiety ,which can harm the stability of the society. MISSION:- working together for a safer london. Increasing public confidence and satisfaction . Preventing and reducing crime , disorder and vulnerabiliy. Increasing safety and security. Improving quality of service. Being efficient and effective. VISION:- Working together with all our citizens , all our partners, all our collegues. We will have pride in delivering quality policing ,there is no greater priority. We will build trust by listening and responding. We will respect and support each other and work as a team. We will learn from experiences and find ways to be even better. CONCLUSION:- According to the mission ,vision and values of metropolitan police , i strongly believe that it enforcement of law and order , protecting personal properties, and keeping peace and stability in the society and reduction of the civil disorder. It is a hard job but it is not impossible as England has a multi-national cultures existing and surviving in it, and this is the biggest challenge that is being faced by the metropolitan police. Its course of direction is very clear, i believe that TATA STEEL is much more promicing about the ethical standard , and is more committed. Metropolitan police still has to work hard to build its image . VILLEROY AND BOCH:- To be the leading European lifestyle brand with high competence and trend -setting style for high-end design and living. FIVE VALUES ONE PHILOSOPHY CUSTOMERS: our success is measured through the enthusiasm that our customers or consumers show while purchasing our products and services.villeroy and boch have a constant challenge to satisfy the needs and expectations of the customers , retailers, architects.we convince them through competence and experience. EMPLOYEES: To have a strong position in the market for a long run , you should have innovative and committed employees. Our priority is motivation and cultivation of their team spirits, and encouraging them to achieve personal goals as well as collective goals. INNOVATION: if we claim that we have the leading position in the international markets , then it will not be easy to follow the trends. Those who want to have or to secure their competitive edge must recognise and shape new trends earlier than the others. company and achieve long-term success. The foundamentals for this are a balanced portifolio, earning -oriented growth, high and constant rates of return and appropriate dividends. RESPONSIBILITY: not many companies have made regional economic history as well as Europeon cultural and social history. Villeroy and bosh is one of them , and thus bears many responsibilities. We feel obligated not only to our employees, shareholders and customers, but also to the environment and society. CONCLUSION:- This organisation or company has a very strong image , and its mission ,vision and values are very high standard,as it is the European leader and the trend setter, to main tain its position and to sustain its long term success it has to beat others by maximizing its competitive advange and by minimizing its treats or by converting them in to opportumities. To maintain its position it has to be more faster than the other companies , it has to be more creative and innovative ; As CHARLES DRAWIN said it is the strongest of the species that survive , nor the most intelligent, but the one most responsive to change. As we all know we live in a very dynamic world, our choices and preferrences are changing day by day , so as being a leader or a trend setter , it has to be very innovative and it should quickly respond to the changes before others. It is also a customer valued organisation, as customers are valued and their needs and expectations are given importance or are preferred. This organisation also pays attention to its employees which are its front line, and who help it to achieve its sustainability in the market.i believe that this is the key element to success of this organisation, by building team spirit and by indulging them together in such way that the collective goals are achieved. This organisation has a very strong image , it is very promising and very much determined and committed. As being a European leader it is equally paying attention on internal and external elements that play a crutial role in its success. This organisation is not only taking advantages of its strengths and opportunities but it is also indulging its weaknesses into opportunities and also tackling threats as opportunities and it is trying to over come them. So i think in my opinion villeroy and bosh are more challenging and strong organisation in their mission ,vision and values , then is the Tata Steel and in the end comes metropolitan police.that has to work very hard to potriate its image in the minds of the people.

Free Trade and Fair Trade

Free Trade and Fair Trade All over work places and school campuses around the world you can be sure to find cocoa, coffee and certain other products that are labeled â€Å"free trade,† but is fair trade the same as free trade? â€Å"Free† and â€Å"fair† are powerful, often abused words when applied to the concept of trade. I will attempt to clarify the differences between free and fair trade, show how they may overlap, and the beneficial in each system. Deliberate trade benefits both the buyer and the seller. The benefits in excess of costs are the gains from trade.An efficient society maximizes the gains from trade by wisely using human, natural and capital resources. Political processes redistribute these gains to promote or reduce equity. Free trade means that anyone can trade with anyone else. Property rights are typically maintained, but government intervention in markets are minimal at best, (Wetzel). The fairness of this trade depends on the amount of com petition between buyers and sellers. For example, products price rises when there are few sellers and many buyers. In this case, sellers gained because they have â€Å"market power†.With few buyers and many sellers, the price falls; buyers use their market power to gain. Fair Trade is about more than just paying a fair wage. It means that trading partnerships are based on equal benefits and mutual respect; that prices paid to producers reflect the work they do; that workers have the right to organize; that national health, safety, and wage laws are enforced; and that products are environmentally sustainable and conserve natural resources, (Codey). When trade is freed, competition increases, market power falls and gains distributed more evenly. Numerous buyers and sellers in the farmer’s market reduce bargaining power.Seller competition pushes price down; buyer competition holds them up. Free trade can be fair trade, but agreements that open some markets to powerful pro ducer where they can use their market power, while keeping others closed and uncompetitive, are neither free nor fair. Free trade and fair trade can provide important benefits to participants. Free trade is benefit by all those involved, especially the large multination corporations. It helps nations develop the best economic policies for their citizens. Companies willing to meet consumer demand for several items will look for the cheapest resources or goods to increase supply.Nations engaging in free trade allow companies to import resources or goods from international countries with no government restrictions or tariffs. Governments placing restrictions or tariffs on imported goods often increase a cost of doing business in the domestic economic market, (Mathews 2009). Free trade can help nations improve job opportunities in the economic market. Meanwhile, fair trade provides favorable economic opportunity for those smallholder farming families able to join producer organizations and provide products of the right specifications for the market.Fair trade improves health, education, and agricultural development in the community. Finally, free and fair trade is somehow important to participants that are involved. However clarifying the different between free and fair trade, show how they may overlap, and the beneficial in each system is the main context of this essay. Codey, Scott & Embry, Mary. â€Å" Fair Trade Resource Network. † Education and Discussion to Mark Trade Fair. 1999. 05 Oct. 2012 Mathews, Tony. â€Å"Enhancing the Global Linkages of Cooperatives: The Fair Trade Option. † 2009. 05 Oct. 2012. Wetzel, Doug. â€Å"Fair V. S. Free Trade. † 1999-2012. 05 Oct 2012.

Cadbury: the Study of Consumer Behaviour

†There's one product that sells in good times and bad – a bar of chocolate†. It has been an axiom of Cadbury Company for generation. Today, the company which was opened in 1842 by John Cadbury, Is the global leader in the chocolate confectionery manufacturer. The beginning of Cadbury journey is when John Cadbury opened up a shop in Birmingham and sold coffee, tea, drinking chocolate and cocoa. In the later stage, John’s brother Benjamin joined the company in 1842 and opened an office in London and received Royal Warrant as manufacturer of chocolate and cocoa to Queen Victoria in 1854. After six years, John got problem about his health and his wife was death so they left their business and company to their sons George and Richard. The brothers was also dissolved their partnership at the same time. George and Richard continued to develop the product line, and by 1864, they were getting an early profit. By this time, Cadbury’s Cocoa Essence which was an all nature product with pure cocoa butter and no starchy was introduced to people. After which, the brothers soon moved their manufacturing operations to a larger facility four miles south of Birmingham and the factory and area was known as Bourneville. With a success in chocolate, George and Richard stopped selling tea in 1873 and master confectioner Frederic Kinchelman was appointed to share his recipe and production secrets with Cadbury workers. Moreover in two years time, the factory employed more than 2,600 people and was incorporated as a limited company. In 1969 Cadbury merged with Schweppes which was a large British brand that supply mineral water and soft drink and the company was know at Cadbury Schweppes. The merged companies would go on to acquire Sunkist, Canada Dry, Typhoo Tea and more. Schweppes Beverages was created, and the manufacture of Cadbury confectionery brands was licensed to Hershey. Today Cadbury Schweppes is the largest confectionery company in the world, employing more than 70,000 employees. In 2006 the company had over $15 billion in overall sales. In March of 2007, Cadbury Schweppes announced that it intends to separate its confectionery and beverage businesses. With almost 200 years in the business, Cadbury Schweppes will continue to prosper in the coming decades. Theories Used The whole paper will discuss about the model of motivation, arousal of motives , hierarchy needs of Maslow’s, ELM (elaboration likelihood model ) and how these theory and model apply to the improvement and expansion of Cadbury company to better understanding about their consumer behavior. First of all, motivation is basically defined as the driving force within individual that impels them to action. According to the model of motivation process (Schiffman et al, 2008), when people need, want and desire are unfulfilled, they tend to feel tension. After that it will drive people to the direct behavior through their thinking process and previous learning until their need is fulfilled (Schiffman et al, 2008). On the other hand, most of people specific needs are dormant much of the time. The arousal of any particular set of needs at a specific point in time may be caused by internal stimuli found in our physiological condition or our emotional or our cognitive process or by external stimuli in environment (Schiffman et al, 2008). One of the well know theory of human motivation was developed by Abraham Maslow which interpret how customer perceive satisfaction about goods and service at different level of needs. According to Maslow, there are five basic level of needs which are physiological needs; safety and security needs; social needs; ego needs; self-actualization. The theory is showed that human seek for the satisfaction from lowest level first (physiological) such as food, water, air, clothing, sex. After the first level of needs is satisfied, people will seek to higher level of needs which is safety and security needs. After they get these needs, they will look for the social needs such as love, affection, belonging and acceptance and then is ego needs and self- actualization. (Schiffman et al, 2008) The elaboration likelihood model proposes the more global view that consumer attitude changed by two distinctly different routes to persuasion: a central route and a peripheral route. When consumer‘s motivation or ability to assess the attitude is high, their learning and attitude change tend to occur via central route with available information about the attitude object. In contrast, when people’ s motivation or assessment skills are low, learning and attitude change tend to occur via the peripheral route without the consumer focusing on information relevant to the attitude object itself. (Schiffman et al, 2008) Maslow’s Hierarchy of Needs According to Hassan (2005), Maslow’s hierarchy of needs includes physiological needs, safety and security needs, social needs, ego needs and self-actualization which can help us to understand human behavior and have a right point to motivate customers power purchasing, especially for what Cadbury has been applied for their segmentation strategies and positioning strategies. First of all, as we know that chocolate is belonged physiological needs which means this kind of product is low price and more competitive so that there need have a successful key to become the second largest confectionary market after Marks-Wrigley (Conor Carroll 2009). This is the brand of itself because when customers try whatever product they always concerned about the brand name which not only help the customers identify their needs and satisfy product but also help the marketers to become different from their competitors. For this company which already have a strong brand and strong history from 1824 (Conor Carroll 2009) which is more powerful to get customers trust and remained loyal customers as well. For example, when a person go to the super market and he wants to buy a soft drink immediately he will think about Coke or Pepsi, as like as in this case when he go to the supermarket and he wants to buy a bar chocolate he may think about Cadbury although the price may higher than others brands but because of the high reputation and quality brand so that consumers will pay a higher price for branded product which they believe it provides a higher value. Secondly, although Cadbury is a second largest confectionery company it still made a mistake when they did not concerned a lot about safety and security needs of consumers in 2006. According to Conor Carroll (2009), Cadbury be in scandal of salmonella scare in 2006 and Easter chocolate products scandal in 2007. Because of it, Cadbury reputation and benefits at this time was dropped significantly. However, they had fined by the Food Safety Authorities and need to recall the entire products problem. As a result, Cadbury get over the big two trouble and got it meaning lessons for safety and security products. However, it not only stops by there, they already have an action to get back their reputation from consumers by support more laboratory facilities and scientists to test the product quality and more involve in the social responsibilities. (http://www. cadbury. com/ourresponsibilities/Pages/ourresponsibilities. aspx) Thirdly, for social needs which are more concerned about the environment and social responsibilities than the quality of this product. Cadbury is not only use the campaigns to encourage their customer’s social consideration but also has a special strategy to stimuli their farmers and workers such as give more bonus and benefits to the workers in Ghana and support the people living around. This is meaningful that when consumer try Cadbury chocolate they may think that they already pay a right price which bring the benefits to the workers and also contribute a small part to support the society. As a result, this is the best idea for the marketers because when you want to have a strong brand name inside consumers mind you need to concerned more about the social and environment which are the strong strategy to maintain the product brand name and Cadbury did it. Next, some of the Cadbury products and advertisements emphasis the ego needs which is more specific on self-acceptance and self-esteem such as Cadbury already have targeted this concept to teenagers like Cadbury Perk. For this strategy, Cadbury Perk was targeted to the casual snacking which includes chips and wafers. Moreover, Cadbury Perk contains a message that whenever and wherever teenagers need it always available for their convenient it becomes a new mini snack in this market. Furthermore, for the confectionery market teenagers and children are the majority consumption and the most important of segmenting and positioning. When the teenagers try Cadbury Perk they may feel like this product was born for them and stands for them like young, active and creative life. (Cadbury PLC 2010) Lastly, there is need for self-actualization which is concentrated more on inner thinking such as psychological integration or demand higher level of personal potential. Hassan (2005) states that generatively, social justice and transformative thinking should be cooperate with this orientation. Thinking towards to Cadbury, we can see that they try to satisfy the customer’s needs as much as they can or even though more than what consumers expected like Cadbury celebrations which was aimed to replace the traditional gift options during festival seasons with a pretty box and nice packaging it really suit for gifting. It is different from others category because it is more formal and luxury which extend consumers needs. Moreover, Cadbury also have introduced a product for after dinner sweet which main targeting in India. Because in India people have a habit to have a sweet dessert after their dinner and this product can replace traditional sweet which inconvenient and take more time to repair. For this part, the advertisement more focuses on the adults rather than children. From this point, we can see that Cadbury not only segmenting and positioning their product on children but also expand their segmentation to the adults which called as potential customers. Certainly, in this point their advertisement and packaging are also be different from the product that they target to the children. Model of Motivation Motivation is a theoretical construction from which we can determine the driving force behind human behavior. (Kroeber-Riel and Weinberg 2003, cited in Wohlfeil and Whelan 2006) This, according to Weinberg (1995 cited in Wohlfeil and Whelan 2006), is a combination of both emotional and basic urges to direct behavior and cognitive process to direct the goals and drive to accomplish those goals. These goals differs also as the customer moves along the decision making process, as the needs and motivations changes will affect how the customer perceives any given information. (Mallalleu and Nakamoto 2008) In the case of Cadbury, the motivations of their customers who purchase their brand off the shelves in departmental stores will be different from those who purchase other brands of chocolate, depending on the segmentation, targeting and positioning of the brands, as they focus to fulfilling different groups of customer’s needs, wants and desire. Cadbury fulfills many market segments, ranging from milk chocolate, dark chocolate, chocolate flakes, chocolate powder, chocolate drinks and many more. By targeting many market segments, Cadbury aims to provide a sense of convenience, and variety within the same brand, lending the strength of their overall brand equity to all the brands under Cadbury. This benefits the customers as now they could purchase different products under the same brand, which they can be assured of the quality, packaging and taste, without having to take the risk of try other brands to purchase different chocolate products. Gale 1992; Smith and Park 1992, cited in Morgan and Rego 2009) Higher brand equity allows Cadbury to price their products at a slight premium, despite them competing within the low price segment of the chocolate industry. (Sivakumar and Raj 1997, cited in Morgan and Rego 2009) Cadbury also uses celebrity endorsements, such as Mr. Amitabh Bachchan in India, in order to regain brand equity after worms were discovered in Cadbury chocolates in India. (The Financial Express 2003) Although ultimately, it was later proven that the worms were caused by their retailers bad storage practices in India, their reputation was already tarnished. However with celebrity endorsement, the celebrity acting as a source lends credibility and attractiveness to the product, giving it familiarity in the process. (Sternthal and Craig 1973, cited in Biswas, Biswas and Das 2006) this motivates the customers by giving them the drive to purchase it when their favorite celebrity endorses the product, and through their cognitive process, any perceived notion of risk is significantly reduced. According to Rao and Monroe (1988), consumers are likely to process more information other than price if they are motivated, to determine the quality of a given product. This is important as Cadbury often creates contests and advertisements to build involvement in their products in order to motivate consumers to choose their brand. This involvement however only targets the people with specific personal relevance from which the product has on the person involved. (Coulter et al 2003, cited in Wohlfeil and Whelan 2006) Such event marketing allows marketers to provide interactivity, personal sharing of experience with others, and learning more about the brand in an informal and relax way, while in the meantime, circumventing the natural tendency for consumers to ignore corporate messages that appears elsewhere. Whelan and Wohlfeil 2005; Mc Alexander et al. 2002, cited in Wohlfeil and Whelan 2006) As such, from the motivation perspective, we are able to see how and why Cadbury segmented and targeted multiple segments of the market, used their brand equity to price at a slight premium, and used celebrity endorsement to rebuild brand equity in India, and used contests and advertisements to generate involvement in their brand in an informal and exciting way. Elaboration Likelihood Model (ELM) Customers can be motivated in many ways, but based on the elaboration likelihood model (ELM), two routes of persuasion are identified – central route and peripheral route (schiffman et al 2009). The concept of this model is to explain the motivation behind consumers purchases and they way to persuade them, as two major type of customers can be found – one with high assessment skills (high involvement) and low assessment skills (Low involvement). However, the success of a company does not come solely through the tampering of marketing elements; it also includes the fostering of a long term relationship between buyer and seller (Ford et al. ited in Zineldin & Philipson 2007). Thus, the next few sections, will describe how Cadbury successfully maneuver its marketing mix, while retaining their customers. But, how does Cadbury appeal to both types of customers mentioned above? Cadbury dairy milk is basically famous among children and teenager, as it is not only affordable, b ut delicious. Children and teenagers are considered to fall under the category of low assessment skills, as the motivation behind buying Cadbury for them is the craving for sweets (schiffman et al 2009).. These target group do not concerns on the information of the product , instead, it is the tangible aspect that is the motivation behind, which is to say, this particular group can be persuade through peripheral route. For instance, Celebrity endorsement, Event and advertisement promoted. In addition, variety of assortments in â€Å"Dairy Milk’ are introduced in the market to meet changing consumer trends and drive further growth of the UK’s favorite chocolate brand. For instance, Cadbury Milk Double Choc, Cadbury Milk Fruit and nut, Cadbury Caramel and 10 other types of Dairy Milk are introduced in UK alone in the time span of 100 years (Times Online 2010). The customers’ preferences for Cadbury ‘Dairy Milk’ are the taste, quality and convenience to get a hand of it. That is why the distribution of the chocolate bars and confectionery are important because of the fact that ‘Dairy Milk’ is becoming more of staple and impulse types of good. In France, the chocolate consumption is one of the highest in the world with average of 5. kg per head in 1995 and with the highly competitive market and wide spread price-cutting, retail prices and margins vary widely according to product and outlet company must be efficient in distributing their goods, as the cost of distribution makes up 40-60% of the product cost (Vrontis & Vignali 2001). The other type of persuasion route is central route, which is used to explain on how to persuade customers that have high assessment skill (high involvement), which fall under the target group of adults (Schiffman et al 2009).. As one grow, they are becoming more conscious of their health and have the perspective that everything that is sweet mean fat and calories. However, the way Cadbury dairy milk appeal to this group is by using the advertisement campaign of 1 ? glass of milk that give a message that one Cadbury bar is contains nutrition and proteins, which is healthy and not healthy deteriorating. In addition, the packaging, design and sizes are being emphasized by the company to accommodate consumers’ demands. For instance the packaging of Cadbury is being refined in terms of image and resolution to create brand identity and also increase in size variety for Cadbury in 140 g and 230g package. Kate Harding, the trade communication manager for Cadbury commented, â€Å"Stores come in all shapes & sizes and we have changed the sizes to suit the needs of our different retailers who can choose a range which will best suit their shopper. † (Talking Retail 2008) Conclusion Cadbury is a well known chocolate brand dealing with a wide array of chocolate products. This with their low pricing allows them to extensively penetrate many chocolate market segments. Through the use of Maslow’s hierarchy of needs, model of motivation, and elaboration likelihood model, we are able to see how they are applied to the company in terms of segmentation, targeting and positioning, allowing the company to gain considerable market share, regain lost brand equity through celebrity endorsement, and generate consumer involvement to create better trust and brand familiarity, through informal and exciting approach in teaching the corporate values to their consumers.

Woodrow Wilsons Decision to Join the Side of the Allies in...

Did President Wilson have no choice but to enter World War 1 on the side of the allies? Seeing as Germany was planning on declaring war on America, Wilson had no choice but to join the side of the allies. President Wilson was a peaceful man but America was already being treated horribly by Germany before even entering war, and he couldn’t continue to watch innocent Americans being killed for something they weren’t even a part of. Wilson could not let American’s become helpless or violent creatures without scruples so he set aside his morals in order to not to become cowardly. For American neutrality, Zimmerman note, Nationalism, Imperialism, and Germany’s use of unrestricted U-boat warfare was too much to bear without a fair fight.†¦show more content†¦Soon the machine gun became a defensive weapon rather than an offensive weapon, as it was used to stop offensive enemy troops across this no man’s land. Gas was used infinitely by both sides in an effort to triumph over the trenches. If any trench was taken by an opposing force, a succeeding trench was dug just meters behind the one taken, making advancements longstanding and difficult. In this process many troops lost their lives, more so than any other war. U-boats were military submarines used by Germany in the war as a weapon. When the German Chancellor Bethmann Hollweg proclaimed Germany’s purpose to use unrestricted submarine warfare, his one main concern was that it would aggravate an American response – in this he was to be precise. By 1917, the war was not going okay for Germany on the Western Front. Unrestricted submarine warfare was an outcome of anxiety and the belief that the fierceness of such a tactic might just keep America out of the war if the outcomes were remarkable and outrageous enough. On May 7th 1915, German U-boats, patrolling in the Atlantic Ocean, fired torpedoes at the British ship the Lusitania, sinking her in 20 minutes. On the ship were 128 Americans. President Wilson, demanded that Germany stop attacking passenger ships, and declared that America was too proud to fight. Wilson also tried to mediate a compromise settlement but failed. Wilson also repeatedly warnedShow MoreRelatedThe Outbreak Of The Treaty Of Versailles1968 Words   |  8 Pagescaused by the Allies’ divergent peace aims, their repercussions on Germany and the disregarded cases of Japan and Italy and then we shall address the relinquished opportunity for peace that was the League of Nations. During the Paris Peace Conferences delegates from 27 nations were assigned to 52 commissions and yet the core of the decisions where taken by three men: Georges Clemenceau, president of the French council, David Lloyd George, British prime minister and Woodrow Wilson, president of theRead MoreMedia Influence on the People of the Us During Ww12659 Words   |  11 Pagesof people in the US had common views throughout the First World War was because of the media influence. When the US was under the neutrality agreement, the media helped people feel good about being neutral. However, when the time came for the US to join the war, the media suddenly changed and tried to gain public support in favor of joining the war. During the war, however, to keep the home front happy, the media had to portray the war in a way that made the people forget the previous reasons forRead MoreHow Significant Was the Presence of Foreign Powers as an Influence on the Nature and Growth of Arab Nationalism in the Years 1900-2001?2133 Words   |  9 Pageslaunched against the Ottomans. This was the beginning of British intervention in the Middle East. After WW1 Europe still regarded the Arabs as a ‘subject’ race that were ruled by the British. It was also felt that the Arabs should be grateful that they’d been liberated from the Ottoman rule. The sole key figure to believe that Arab self-determination was underestimated was Woodrow Wilson of America. When Britain was to move into Egypt and discover the wealth of the cotton industry, however, theRead MoreModern History.Hsc.2012 Essay25799 Words   |  104 Pagessank the British liner Lusitania in 1915, with 128 Americans aboard, U.S. President Woodrow Wilson vowed, America is too proud to fight and demanded an end to attacks on passenger ships. Germany complied. - Wilson unsuccessfully tried to mediate a settlement. He repeatedly warned the U.S. would not tolerate unrestricted submarine warfare, in violation of international law and U.S. ideas of human rights. Wilson was under pressure from former president Theodore Roosevelt, who denounced German acts