Girl interrupted Essay -- essays research papers fc

Rory Boyan   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Writing 1  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  04/19/02   Ã‚  Ã‚  Ã‚  Ã‚  Considering all the treatment methods used at Mclean Hospital, harsh physical treatments were rarely productive. Methods such as seclusion, ice-baths, Electro-shock therapy, and even the Hospitals atmosphere itself can make one wonder how anyone came out of there better than they went in. It seems odd that people teetering on the edge of sanity were subjected to such horrible treatments. Although such treatments sometimes worked, it in no way outweighs the horrible side effects that usually happen.   Ã‚  Ã‚  Ã‚  Ã‚  One of these treatments is seclusion. It is as simple as it sounds but the side effects were not. Not only are the patients totally alone for however many days the guards wanted, but they are stripped of basically everything they have except clothing. It is more of a punishment than a treatment. If a patient acts out in any way or ran away for a day or two, off to seclusion they would go. When taking mentally unstable patients and putting them in solitary confinement all they can do is sit there and think crazy thoughts; so when they come out they were usually like zombies. â€Å"One of the worst things we watched, though, was Lisa coming out of seclusion two days later.† (Page 21). How can that help anyone?   Ã‚  Ã‚  Ã‚  Ã‚  Another type of treatment used is wrapping a patient in freezing cold sheets. It is possible, by a far stretch of the imagination, this could be used to calm down patients. If hypothermia is what made people sane, this should do the trick. The last thing about this is that, when the body gets cold, the immune system get weaker. It seems like they wanted patients to get physically sick too; maybe the nurses get commission on medication.   Ã‚  Ã‚  Ã‚  Ã‚  The worst treatment used is electro shock therapy, also known as ECT. This is when one is shocked by strong amounts of electricity, repeatedly, for however long the doctors decided to keep the patients there. There are a few incidences when ECT actually worked and completely cured a patient, but these were few and far between; the truth of the treatment is much worse. â€Å"In fact... ...er. After all the hel, these people were put through freedom seemed all the much better. It seems that after being there, anything is better than hospital life. Think of it this way, starve a man half to death, feed him nothing but bread and water, then give him a Ritz cracker. That will be the best cracker that man has ever eaten. On the opposite end of the spectrum you give a person Ritz Crackers everyday for the rest of his life, and he will despise them. The Hospital did not treat people as much as it did make them appreciate the society they were locked off from. This is why hospitals like this can thrive; the only treatment they have is appreciation for the life they take away from a patient. WORKS CITED PAGE Quote #1- Page 21-FREEDOM- Girl, Interrupted Quote #2- Page 80-SECURITY SCREEN-Girl, Interrupted Quote #3 Page 54-CHECKS-Girl, Interrupted   Ã‚  Ã‚  Ã‚  Ã‚  Girl, Interrupted- By Susanna Kaysen Copyright 1993 Originally published by Turtle Bay Books, A Division of Random House, INC, NY 1993 Web Pages . www.antipsychiatry.org Article on------- Psychiatry's Electro-convulsive Shock treatment A Crime Against Humanity ---Lawrence Stevens, J.D

Logistic: Inventory and Total Logistics Cost

Supply chain is a network of logistic systems. Logistics concerns one company's system. Supply chain includes different companies. E. G. Dell computer – the logistics is Just their company but the supply chain includes all the part suppliers. Their logistics system is a part of dells supply chain. It includes also the retailers and supplier. Other company's logistics included in Dell's supply chain. Logistics is an early version of the supply chain. Logistics originated in the US military. Flow of cargo (people, weapon in war is logistics. ) Organizing a course/seminar – logistics needed for success.Today all the successful companies find their competitiveness from logistics, not from the product itself. E. G. Walter (retailer, wholesaler, supermarket chain) – their competitive edge comes from logistics. They are not selling anything different from others. They have a superior logistics system. Logistics make them succeed. Dell also, service is good, price attrac tive – success comes from logistics. Another definition people define logistics differently but they mean the same thing. Slide Logistics/Concept 4 Instead of saying process, they say optimization, etc. Process of location.Says movement and storage of resources instead of saying goods/services and information. They call logistic activities economic activities. Transport is one of then, port services, production, storage, distribution, etc. – take place bet. The point of origin and point of destination and consumption. Logistics is about the 5 RSI. What are the 5 RSI? Logistics is about getting right goods at right place at right time in right form at right price. Military is really about this. In commercial entities we emphasize on the price a lot. This is also the definition of logistics.Right goods, right in quality in correct quantity. Different level of logistics. In-bound, out-bound logistics. Logistics of production (table, book, car, etc. ), there are two levels of logistics. Logistics within the production process – in the factory. How do you optimize the production within the factory? We call this operational logistics or workers together. How do you put temporary storage along the assembly line? All this is logistics. E. G. WHIM library – lack of space. How to maximize space? Library space layout. It's about logistics. Different factories have different layouts – this is logistics.We are interested in logistics before the production starts. The cargo coming into the factory and when the production is finished, the cargo moving out to the next step – all towards the final consumption. This is what we call in-bound and out-bound logistics. This is what we are interested in. Maritime transport takes part in inbound and out-bound logistics than for production logistics. We are interested in how to move material to production and from production to consumers. When we try to understand logistics, we look at some lo gistics questions for example a typical question is about where to find the raw material needed.Raw material may be in different places. Some places might have different quality and prices. The difference between that place and the production might be different and therefore remonstration time and cost might be different. Where to find energy supply? Labor supply? Should you move your factory offshore to benefit cheap labor? If you do that be careful that higher prices might have to be paid on other services for example transportation. Where to set up production bases? In shipping, where should the port be located? Where to build warehouse and distribution centre. E. . Toyota car has their distribution centre for the Nordic countries at the port of Mammal. Before that they had centre in all the countries. So many distribution centre, different logistics cost than if there is a concentration of activities. Where to have branch organizations? The answers consider a lot of activities i ncluding transportation. We are in maritime transport so we are affected by the customers decision. Other types of logistics questions for ex. How to transport from A to B and choice of transport mode – air sea, road. Egg. Oslo to Mammal – road, sea. Air, rail.Different modes of transport have different logistics implications. Ex field trips – logistics question, how to transport students – sea (too long), air, road, rail. How to transport container? Hub and spoke – benefit from economies of scale. More cargo handling costs. The best solution must be a logistics solution. Best way to transport cargo from A to B. Flow and storage from point of origin to destination to comply with customers' requirement. Moving from A to B different options – different solution. When should transport start – how long should it take. Route? Storage? How, when needed?Mat of cargo to be transported at one time? Economies of scale? Packing needed? Logistics is everywhere. Farmer from southern Sweden – buy fertilizer in Sweden, buy from Germany (expensive land transport), buy from US where its much cheaper, but he has to pay more transportation cost. Where to find the material? Emphasis is on maritime transport – movement of goods. Shipping co. Transport goods – need info to do so. Port and shipping concerned with flow and storage of goods. October 28, 2008 Session 2 Slide Logistics/Concept 9 There always has to be a logistics concept. And a logistics concept is what?It's about total cost concept. This is the most important concept. It looks easy but total cost concept is not always observed, so people make mistakes as a result. It is a customer service requirement. Logistics concept is also about outsourcing, integration, global about concept, it is also about processes. The processes we call drivers. It drives the logistics process. It can't all be about concept. It has to be something tangible. Logistics is abou t processes. We are doing these everyday, ex. Manufacturing and transportation, distribution, inventory control, procurement.These are all activities, but the difference between these and logistics are that we are doing these in an integrated manner under the concept of logistics. So we have the concept and the drivers. The difference between these activities and logistics, we are doing them under the total cost and the customer service concept, so this is relatively new. Third is IT. We call IT enablers – that enables us to do the processes under the concept of logistics. Sometimes we can't do the processes (drivers) without IT. Ex. Dell computers. They obtained their competitive edge from logistics.Logistics means to get a computer from the production to the customers without any retailers. No middlemen. Order online, design own computer. The aim of logistics is to minimize the total cost. Can only do this with IT tools. So the three components have to come together using t he IT tools. We need to understand the role of IT in the whole process. Ex. Just in Time system. This is Inventory control under the concept of egoistic using information technology. The 3 components have to work together. How do we take all these functions (MFC, transportation, distribution, warehousing, etc. In an integrated manner under the concept of logistics using IT tools. Ex. Individual delivery. Concept is to minimize total cost. Total cost is manufacturing, transport, didst. , etc. How do we minimize that? Use IT. Dell used IT to find out that their total cost will be minimized if they cut out the middle man. IT enables the cutting out of the middle man. Good online service. Shipping line is not making anything – it is a part of transport. Shipping companies as a company have logistics problems also. Shipping has a double role to play.Shipping is a part of the logistics chain of a customer, but at the same time they have their own logistics problem. Shipping's logis tics problems include arranging bunkers, choosing port of call, types of service to provide, empty container management, repositioning of containers, terminal logistics, fleet logistics, agency logistics, but shipping as a service provider is part of the logistics of customers. Ex. KEA – furniture maker – shipping important. Shipping has a double role to play. Ex. Wimp's logistics service. Logistics in third world countries is not good enough. Read World Bank Report.The three components of logistics are important. Dell manages their total cost through logistics, so does Wall-Mart. All the processes have to be IT enabled. Control-implementation-control. HP has a fixed model on the shelf. Dell, make your own – different customer service. One is enabled by IT. Logistics has 3 components – concept, process, IT. Slide logistics/Concept 10 Supply chain – different sources to choose from. Take one then the next step and the next. This is the flow of cargo from origin to destination – the flow of information from user to origin. Information flow and cargo flow go in opposite directions.Ex. Dell – the information goes from the customer to Dell and the cargo from Dell to the customer. How will the producer know what kind of products the consumer will need? The consumer will have to tell. Opposite directions. Dell transport one computer to each customer so the customer pays more for transportation, but other costs like the shops and overhead related costs do not exist. If we compare this cost with the cost is very important. Total cost concept can be better understood by looking at slide Logistics/Concept 1 1 . This is a Total cost in Logistics and Supply Chain System.Marketing and logistics are closely related. This picture is very true. What is marketing? It is about the 4 As – product, price, promotion, place. So in this marketing there is one component about place which is about logistics. In the logistics about the place and the customer service (where the customer wants the cargo to be) and there are other cost elements. Ex. Related to place, transport cost has to be incurred – also warehousing cost, flow and storage. Other costs like inventory costs will be incurred. What is the difference between inventory cost and warehousing cost – inventory cost for keeping goods in stock).Inventory cost is the value of the goods. Books for new WHIM students – cost of book (inventory) plus storage (warehousing). Processing and information cost – each time we order, we have to follow procedure, fill in forms, etc. Processing cost can be high. Egg. When we are transporting our boxes home, have to have bill of lading. This has a cost (processing and information cost). Lot quantity cost – economies of scale. Purchasing/transporting/buying a big amount and will benefit from economies of scale, this is called lot quantities. Put all these 5 elements together and this is total cost.The objective of logistics is not to optimize a cost element, it's not to minimize a cost element, but rather to optimize the total cost and minimize the total cost. Minimize the total cost – this is what logistics is all about. This is easier said than done. KIT, the idea is to reduce the inventory cost to zero if possible. At the same time warehousing cost is being reduced – this is a good system. What other cost will be affected – transport cost. All these cost elements are interrelated and interdependent. So interaction and interdependence are also important.Change of inventory will affect transport cost, lot quantity cost, etc. KIT system for example – daily consumption of rice. Let's say we eat egg of rice each time. Based on KIT, each time we need rice, we should buy only egg. Do we do this? No, then against KIT principle. We buy 200 kilos – 2 cost occur – inventory cost and the money spent on the rice cannot be used (capit al tied up – cash flow problem). If this money was put in the bank it would generate some interest. Where is the rice put? The place occupied by the rice can't be used for something else.In production if you buy too much to get economies of scale from purchasing, we'll incur a high inventory cost. If we are not buying kilos, we buy a quantity in between – say 2 kilo. Optimal total cost. If we buy egg each time inventory cost is zero – have to buy each time we need to cost. That is time and transport cost. Lot quantity cost will change as there is no savings to be got through economies of scale. And each time we buy there are other costs like information and processing (maybe not in the case of rice, but generally). Put all these costs together, and find a good place in between. We do this by Cost Trade-off.Cost Trade Off Slide Ex. Manufacturing activity involves making projectors in Mammal, Sweden and need to supply them to the rest of Europe. No distribution ce ntre, or warehouses, or depots, o because we cover the entire Europe, each time we have an order from someplace in Europe, we pack the projector and send it off. What do we save – inventory, we do not keep inventory. What do we have to spend more – transportation cost will be very expensive. We therefore have to find out if we have a warehouse somewhere in them from Mammal to the customer; we send it from that storage which is closer so we save transportation cost.How many such warehouses we need to cover Europe? It depends on the elements: transport, inventory, lot quantity, warehouse costs. In optimizing all these costs together is a logistics decision. Ex. In the case of the depots, we might have 8, 10, 12 to cover the entire Europe. What cost elements we have in the case of the distribution of projectors in Europe. First the systems cost, the processing and information cost. When there is a centre there needs to be a computer system, a financial system, etc. If the re is no centre, the system cost is very low.The more centre, the higher the system cost and this is a storage cost. If there is only one storage at the headquarters in Mammal, the cost would be relatively low. As the numbers of depots are being increased the storage cost will be very high. Inventory cost – more depots, more stock – higher inventory cost. Trucking cost – tree has trunk and branches. Trunk means main transportation, branches mean local delivery. Transport cargo from production to main distribution centre = trunk transport and then from distribution centre to each individual apartments = local delivery.Trucking cost – the more centre, the more trucking cost. If there are no depots, each time to ship from mammal to each individual location will be very high. The more depots, the less the local delivery cost will be. The total distribution cost is the addition of all cost, this is what we call total logistics cost. When we have the total logi stics cost curve it corresponds to the number 8 meaning there should be eight distribution centre. So this is the solution – 8 centre. As costs change, oil, etc, the optimal numbers of centre will change. Its not static, its dynamic (the Total Didst. Curve).Logistics – one has to plan, implement, control. If the individual costs are changed then total cost will be different – high/low. E. G. If the interest becomes low – inventory cost will be affected as the capital will become cheap. If oil cost increase, interest rate decrease – could end up with more centre which means saving more rainspout cost, esp.. Local delivery cost. Transport cost in total will be less. Inventory cost is dependent on interest rates. May have 9/10 depots. # of depots depend on cost elements. Cost trade off is important. With depots total cost is lower, so this will save cost.Having depot is a cost but the cost is lower than not to have them. E. G. KEA used to rent warehou ses, now they build – benefit of depreciation. Next Slide Logistics cost in the USA Logistics cost include transportation cost, inventory, warehousing, distributing, etc. How much logistics cost people pay as a percentage of a country GAP – 10% in the US. Inventory cost increase faster than the transportation cost bet. 1980 and 2005- why? Better inventory control, interest rate lower so inventory cost lower. Interest was low in the rest of the world until about 2005. Deflation = lower inventory cost.In other countries this percentage is much higher. China – 18% of GAP spent on logistics (used to be 20%). China is more representative of developing countries. So in developing countries logistics systems are not as efficient as those in industrialized countries. 9. 5% is similar in Europe and Japan (COED countries). In developing countries it's much higher. Includes all logistics cost element – transport, inventory, etc. – big room for improvement. Ne xt slide Customer service is another concept. Customer service is the output of logistic based, performance-based, philosophy based.Activity based e. G. After sales service, marketing, public relations. Performance based – what is the standard? Ex. Dell computer is performance based, delivered in 48 hours – performance-based customer service. Can be measured. Ex. , ports – waiting time for ships – rush. Philosophy based on what customers require is the customer service – according to customers taste – before, during, and after transaction. What is transaction? Buy goods, pay. Customer service can take place before this, during, after. Changes in CSS level affect total logistics cost. Next slide CSS High, Low.Cost Low/High – the higher the customer service level, the higher the cost. No ship should wait in port for more than 3 hours. This will cost a lot of money – will have to build more berths. Define customer service level. T ry to minimize total cost based on this pre-condition. Why CSS level increase and inventory level affected. The higher the CSS, the higher the inventory level. Goal: increased SSL, so high inventory level. It's a decision the company makes – customer service level is very important. (Refers to graph on the right) Try to find a way to push the line by introducing a better way of production e. . Using IT, new production method. Reduce cost but still satisfy goal – IT, use better system. Next slide: industry norm, etc. Customer's response to stock out. Is a risk being run of losing the customer? All different ways to define the customer service level. KIT System Developed by Toyota. Called the Kanata system. When a container of parts is chosen to be used from inbound stockinet in-out in-out This is the production. Eng the assembly line how do you get different stages to work together in harmony. The system has two cards. KIT works with 2 cards – the move cards and the production cards. Hen you see the move card, time to move the container or the other card, time to produce. Work centre 1 the card moves along the production line from one work centre to the next. Toyota manage to have minimum inventory along the assembly line. They have one container of part. Cards are turning around and the parts are being moved from one centre to another. For logistics a better understanding of Just in time is very important. 9 Cot 2008 There are two circulations of cards. How do the 2 circulations make the KIT system work? Why does it work? Key elements: to reduce inventory therefore reduces the capital tied up in inventory.Planning, staff commitment including suppliers, suppliers' ability to meet the demand. Some inventory is kept because there is a container. One piece at a time is being used from the container so the rest must be inventory. What is the average inventory? What is the customer requirement? It's the size of the container. The container is fu ll – how big is the container. How is the size of the container defined? The size of the container is planned based on production. Supply 20 units at the beginning and then it's consumed and a new container comes. The container is consumed during a cycle. The cycle is the time needed.The average inventory is a half of the container what ever the amount it contains. Typical KIT, there should be no inventory so why is inventory kept? When we need egg rice why don't we get exactly that? Other costs would increase too much. KIT – to keep as little inventory as possible. The size of the container depends on what? Transportation two don't match then the size of the container needs to be changed. If the transport sakes more time then increase the size of the container and vice versa. Transport time important. Volvo had KIT between Gent and Mammal. How much inventory should be in the Volvo factory in inventory?A lot. Why? Engine parts are made in Sweden to be used in Belgium. This transport takes one week by ship. As it takes one week, there should at least be spare parts for one week. Toyota has KIT. In the city of Toyota in Japan within 30 kilometers of the factory all Toyota parts are made there. This is the perfect KIT system. KIT emphasizes the reliability of the transport system. The two containers must have the same matching size. If parts can't be produced in time, the cart must be moved earlier. At the moment one container is taken to the in stock point, another container load of part should be produced.Suppose the production takes more time than when one cart comes back? Egg. If production takes 20 hours, parts can be made in 10 hrs. The time information is sent – information flow is the key. Plan to know how long production will take. In Japan, transport is guaranteed (Toyota). What is supplier commitment? Shortcomings of the KIT system? Now we assume we only need 20 parts in 10 hours, how about if the demand change and we need 30 parts in 10 hours. If the speed of production is variable the whole system is challenged. If the demand is certain/flexed then it can be planned – production rate and transportation.But what if production rate changes? This is a challenge for some of the production down the line that may need more time and material which might have to come from far. Not easy to adjust production. Shortcomings: Does only one supplier have to be used with KIT? No, Honda uses more than one supplier. In KIT, anything that goes wrong will collapse the entire system. In KIT the entire chain has to be KIT, it can't be at only one stage of the production. If not it forces other suppliers downs the line to keep inventory. KIT of big companies push inventory down the line if the don't plan effectively.Because smaller suppliers want to satisfy big companies, they are forced to keep inventory. KIT has to be along the entire supply chain. KIT may be only at the very large suppliers who push the inventory down the line to smaller suppliers. Toyota case: 1/52 weeks car production stopped because of a fire at one supplier – ripple effect. The decision of Toyota to do nothing was based on the total minimum cost of they did various studies. CCITT Case: The reliability of transportation and the uncertainty factors make logistics system key. The importance of information. Logistics concept drivers enablers, under total cost and customer level.KIT will never work without IT. Everything works together with IT supporting the processes under total cost and customer level. The process, concept or IT cannot work separately. Information is critical for success as well as the reliability of demand. Forecast and planning important to know when demand change. Transportation is also important for this system. If the transport distance is long, the container has to be big. The size of the container is influenced by time (transport). Transport is via sea – only use air in case of emergency. If transport takes a long time or is unreliable then more inventory needs to be kept.Gent is the biggest Volvo manufacturer. Terrines transport the parts from Sweden to Belgium. The shorter the interval of the shipping service, the lower the level of inventory required. This can make the transport expensive. So it's the total cost that is important that will Supply chain 2 definitions (see slide): it's a network, not port to port. In logistics there is no procurement. The 2 key words in logistics are flow and storage. Supply chain includes manufacture. Transformation = manufacturing. 1st law of dynamics – don't create anything, only change the form. Supply chain includes much more than logistics.Logistics narrowly defined. Supply chain is broader. Procurement also concerned with about origin of the goods. Optimization Integration Collaboration Synchronization Optimization – optimize one stage, the entire thing is not optimized so integration has to take place then consol idation then synchronization (concerted manner, happening in the same time). Relationship along supply chain. Start from optimization to synchronization. The idea of supply chain is relatively recent compared to logistics. 1960/ass people start to talk about total cost. E. G. In stage one warehousing and transport are separate functions.Management focus was operations performance. No integration. Logistics integrated both to see how they can be optimized. This is called total cost management. So the focus changed to optimizing total cost and customer service. Customer service put together with cost. Organization design is a centralized function. 80,s integrated logistics function. This moved today to supply chain MGM. Put logistics together to get supply chain. Supply chain broader than logistics. Stage 1 -separately treated, not optimized. Optimization done within the company. Optimize internal functions – transportation and inventory.Intra company and intra functional. This function is a logistics function. The logistics function today is moving still in the company but inter functional. Everything in the company put together – integration. Toyota inter company – higher level of integration. Toyota owns the supplier – easier to do KIT. Companies are integrated supply chain – Inter company and inter functional. Dell and their suppliers are integrated. Also Wall-Mart. The producers don't take orders from Wall-Mart – the ‘cards' in KIT comes from individual supermarkets. Producers can check storage level of Wall-Mart outlets.Everything is totally integrated. No personal intervention to place order etc. The system is integrated – good supply chain – inter company. Next Slide From fragmented logistics to integrated supply chain. In the fist stage do one function at a time – inventory or warehouse or transport. In the later stage, intra functional – the whole function optimized. From fragm ented logistics to integrated SCM. Suppliers, manufacturer, distributor, retailer, customer are all integrated with he other functions in the company and go to the next stage you integrate between the functions in the companies and between the companies.This is interception and will become in the true sense a supply chain. Supply chain broader today than the logistics. SC have to work with other companies. To satisfy your customers require more than one company: need supplier, manufacturer, distributor, and retailer. E. G. Markers – their system integrated with some of their key customers – key client management. Copra's definition of supply chain. Within an organization there is a supply chain. Egg. WHOM, teaching, supply services, library, canteen, etc. Al depots. Work together to satisfy customer. SC decisions – have to have supply chain design and strategy.Strategic level, medium term, short term – operational, daily and based on the company's competi tive strategy. Michael porter: define competitive strategy in terms of product differentiation or cost cutting leadership. How to achieve strategy: SC strategy. Balance bet. Efficiency and responsiveness. How to respond to demand? Efficiency includes cost-effectiveness, I. E. Cheap. Fast response – this is provided at a cost. Efficiency might compromise cost. Decision making is from lower level to higher. Many competitive strategies come from SC strategy. Wall-Mart is from logistics.Dell is from Supply chain Beer game: Once demand is variable SC difficult to maintain. KIT difficult to maintain. Long time to reach an equilibrium. In the end have to keep large inventory. Once demand is unstable KIT is not suitable. SC Design. Planning is important. SC design is about planning. When suppliers design their supply chain maritime and port services is a part of that. So mapping is important. Stockholders point is storage. Horizontal line represents move. When it stops – verti cal lines = storage or waiting. Egg. BBC container tracking. This is SC mapping.Horizontal line is lead-time (time from production centre 1 to production centre 2). Lead time depends on inventory to determine when order is to be placed. SC starts from the fiber and end with the clothes on the shelf. Through this we see pipeline length and volume. E. G, coca cola. Postponement of safety stock What is postponement? H and Ezra – they use postponement principle. Clothes must be in fashion. Don't know faction of 09. Try to postpone as much as possible the manufacturing time. Forecast, ii, postpone. Dell also uses this strategy. Don't develop their machines until last moment.Can use the latest technology and the price gets cheaper. Anticipate time needed and kind of product needed. Decision is postponed to the last moment. Postponement principle can reduce stock. Has bearing on transport too. Better information flow will impact SC. Next slide Sometimes for material flow speed might not be appreciated. Transport is used as storage to adjust transport time to match with performance. Sometimes it's because of the price. E. G. Iron ore in China, there is too much now. Information speed is always good but for material sometimes it needs to be fast and other times not so fast.Compression of lead-time in manufacturing activity. Supply chain map – length (vertical) volume (horizontal) – try to compress it to see possibilities to reduce some of the variable. Ocean transport can't be adjusted as speed can't be reduced. SC design. Lead-time is transport. Port of Amsterdam case study summary Market research – likelihood to attract new carriers / guarantee – balance and supply (elasticity). When port built no congestion in Europe – more port than ships. Impossible to get firm commitment – plenty choices. More supply than demand. Demand price inelastic. Shipping companies never give guarantees.Optimization, integration, collaborati on, synchronization. Have to synchronize. Increase speed of one operations but the speed of other things remained unchanged. No synchronization. If the discharged boxes cannot be moved this is a logistics problem. The concept of logistics: most important – total cost. Port of Amsterdam forgot total cost. Typical failure case that should never have been done. Restricted berths – bigger ships cannot fit in today – size is restrictive. How wide and long should ship be. (Panama Canal has size restriction and is thus a constraint – ships in the Asian Logistic: Inventory and Total Logistics Cost Supply chain is a network of logistic systems. Logistics concerns one company's system. Supply chain includes different companies. E. G. Dell computer – the logistics is Just their company but the supply chain includes all the part suppliers. Their logistics system is a part of dells supply chain. It includes also the retailers and supplier. Other company's logistics included in Dell's supply chain. Logistics is an early version of the supply chain. Logistics originated in the US military. Flow of cargo (people, weapon in war is logistics. ) Organizing a course/seminar – logistics needed for success.Today all the successful companies find their competitiveness from logistics, not from the product itself. E. G. Walter (retailer, wholesaler, supermarket chain) – their competitive edge comes from logistics. They are not selling anything different from others. They have a superior logistics system. Logistics make them succeed. Dell also, service is good, price attrac tive – success comes from logistics. Another definition people define logistics differently but they mean the same thing. Slide Logistics/Concept 4 Instead of saying process, they say optimization, etc. Process of location.Says movement and storage of resources instead of saying goods/services and information. They call logistic activities economic activities. Transport is one of then, port services, production, storage, distribution, etc. – take place bet. The point of origin and point of destination and consumption. Logistics is about the 5 RSI. What are the 5 RSI? Logistics is about getting right goods at right place at right time in right form at right price. Military is really about this. In commercial entities we emphasize on the price a lot. This is also the definition of logistics.Right goods, right in quality in correct quantity. Different level of logistics. In-bound, out-bound logistics. Logistics of production (table, book, car, etc. ), there are two levels of logistics. Logistics within the production process – in the factory. How do you optimize the production within the factory? We call this operational logistics or workers together. How do you put temporary storage along the assembly line? All this is logistics. E. G. WHIM library – lack of space. How to maximize space? Library space layout. It's about logistics. Different factories have different layouts – this is logistics.We are interested in logistics before the production starts. The cargo coming into the factory and when the production is finished, the cargo moving out to the next step – all towards the final consumption. This is what we call in-bound and out-bound logistics. This is what we are interested in. Maritime transport takes part in inbound and out-bound logistics than for production logistics. We are interested in how to move material to production and from production to consumers. When we try to understand logistics, we look at some lo gistics questions for example a typical question is about where to find the raw material needed.Raw material may be in different places. Some places might have different quality and prices. The difference between that place and the production might be different and therefore remonstration time and cost might be different. Where to find energy supply? Labor supply? Should you move your factory offshore to benefit cheap labor? If you do that be careful that higher prices might have to be paid on other services for example transportation. Where to set up production bases? In shipping, where should the port be located? Where to build warehouse and distribution centre. E. . Toyota car has their distribution centre for the Nordic countries at the port of Mammal. Before that they had centre in all the countries. So many distribution centre, different logistics cost than if there is a concentration of activities. Where to have branch organizations? The answers consider a lot of activities i ncluding transportation. We are in maritime transport so we are affected by the customers decision. Other types of logistics questions for ex. How to transport from A to B and choice of transport mode – air sea, road. Egg. Oslo to Mammal – road, sea. Air, rail.Different modes of transport have different logistics implications. Ex field trips – logistics question, how to transport students – sea (too long), air, road, rail. How to transport container? Hub and spoke – benefit from economies of scale. More cargo handling costs. The best solution must be a logistics solution. Best way to transport cargo from A to B. Flow and storage from point of origin to destination to comply with customers' requirement. Moving from A to B different options – different solution. When should transport start – how long should it take. Route? Storage? How, when needed?Mat of cargo to be transported at one time? Economies of scale? Packing needed? Logistics is everywhere. Farmer from southern Sweden – buy fertilizer in Sweden, buy from Germany (expensive land transport), buy from US where its much cheaper, but he has to pay more transportation cost. Where to find the material? Emphasis is on maritime transport – movement of goods. Shipping co. Transport goods – need info to do so. Port and shipping concerned with flow and storage of goods. October 28, 2008 Session 2 Slide Logistics/Concept 9 There always has to be a logistics concept. And a logistics concept is what?It's about total cost concept. This is the most important concept. It looks easy but total cost concept is not always observed, so people make mistakes as a result. It is a customer service requirement. Logistics concept is also about outsourcing, integration, global about concept, it is also about processes. The processes we call drivers. It drives the logistics process. It can't all be about concept. It has to be something tangible. Logistics is abou t processes. We are doing these everyday, ex. Manufacturing and transportation, distribution, inventory control, procurement.These are all activities, but the difference between these and logistics are that we are doing these in an integrated manner under the concept of logistics. So we have the concept and the drivers. The difference between these activities and logistics, we are doing them under the total cost and the customer service concept, so this is relatively new. Third is IT. We call IT enablers – that enables us to do the processes under the concept of logistics. Sometimes we can't do the processes (drivers) without IT. Ex. Dell computers. They obtained their competitive edge from logistics.Logistics means to get a computer from the production to the customers without any retailers. No middlemen. Order online, design own computer. The aim of logistics is to minimize the total cost. Can only do this with IT tools. So the three components have to come together using t he IT tools. We need to understand the role of IT in the whole process. Ex. Just in Time system. This is Inventory control under the concept of egoistic using information technology. The 3 components have to work together. How do we take all these functions (MFC, transportation, distribution, warehousing, etc. In an integrated manner under the concept of logistics using IT tools. Ex. Individual delivery. Concept is to minimize total cost. Total cost is manufacturing, transport, didst. , etc. How do we minimize that? Use IT. Dell used IT to find out that their total cost will be minimized if they cut out the middle man. IT enables the cutting out of the middle man. Good online service. Shipping line is not making anything – it is a part of transport. Shipping companies as a company have logistics problems also. Shipping has a double role to play.Shipping is a part of the logistics chain of a customer, but at the same time they have their own logistics problem. Shipping's logis tics problems include arranging bunkers, choosing port of call, types of service to provide, empty container management, repositioning of containers, terminal logistics, fleet logistics, agency logistics, but shipping as a service provider is part of the logistics of customers. Ex. KEA – furniture maker – shipping important. Shipping has a double role to play. Ex. Wimp's logistics service. Logistics in third world countries is not good enough. Read World Bank Report.The three components of logistics are important. Dell manages their total cost through logistics, so does Wall-Mart. All the processes have to be IT enabled. Control-implementation-control. HP has a fixed model on the shelf. Dell, make your own – different customer service. One is enabled by IT. Logistics has 3 components – concept, process, IT. Slide logistics/Concept 10 Supply chain – different sources to choose from. Take one then the next step and the next. This is the flow of cargo from origin to destination – the flow of information from user to origin. Information flow and cargo flow go in opposite directions.Ex. Dell – the information goes from the customer to Dell and the cargo from Dell to the customer. How will the producer know what kind of products the consumer will need? The consumer will have to tell. Opposite directions. Dell transport one computer to each customer so the customer pays more for transportation, but other costs like the shops and overhead related costs do not exist. If we compare this cost with the cost is very important. Total cost concept can be better understood by looking at slide Logistics/Concept 1 1 . This is a Total cost in Logistics and Supply Chain System.Marketing and logistics are closely related. This picture is very true. What is marketing? It is about the 4 As – product, price, promotion, place. So in this marketing there is one component about place which is about logistics. In the logistics about the place and the customer service (where the customer wants the cargo to be) and there are other cost elements. Ex. Related to place, transport cost has to be incurred – also warehousing cost, flow and storage. Other costs like inventory costs will be incurred. What is the difference between inventory cost and warehousing cost – inventory cost for keeping goods in stock).Inventory cost is the value of the goods. Books for new WHIM students – cost of book (inventory) plus storage (warehousing). Processing and information cost – each time we order, we have to follow procedure, fill in forms, etc. Processing cost can be high. Egg. When we are transporting our boxes home, have to have bill of lading. This has a cost (processing and information cost). Lot quantity cost – economies of scale. Purchasing/transporting/buying a big amount and will benefit from economies of scale, this is called lot quantities. Put all these 5 elements together and this is total cost.The objective of logistics is not to optimize a cost element, it's not to minimize a cost element, but rather to optimize the total cost and minimize the total cost. Minimize the total cost – this is what logistics is all about. This is easier said than done. KIT, the idea is to reduce the inventory cost to zero if possible. At the same time warehousing cost is being reduced – this is a good system. What other cost will be affected – transport cost. All these cost elements are interrelated and interdependent. So interaction and interdependence are also important.Change of inventory will affect transport cost, lot quantity cost, etc. KIT system for example – daily consumption of rice. Let's say we eat egg of rice each time. Based on KIT, each time we need rice, we should buy only egg. Do we do this? No, then against KIT principle. We buy 200 kilos – 2 cost occur – inventory cost and the money spent on the rice cannot be used (capit al tied up – cash flow problem). If this money was put in the bank it would generate some interest. Where is the rice put? The place occupied by the rice can't be used for something else.In production if you buy too much to get economies of scale from purchasing, we'll incur a high inventory cost. If we are not buying kilos, we buy a quantity in between – say 2 kilo. Optimal total cost. If we buy egg each time inventory cost is zero – have to buy each time we need to cost. That is time and transport cost. Lot quantity cost will change as there is no savings to be got through economies of scale. And each time we buy there are other costs like information and processing (maybe not in the case of rice, but generally). Put all these costs together, and find a good place in between. We do this by Cost Trade-off.Cost Trade Off Slide Ex. Manufacturing activity involves making projectors in Mammal, Sweden and need to supply them to the rest of Europe. No distribution ce ntre, or warehouses, or depots, o because we cover the entire Europe, each time we have an order from someplace in Europe, we pack the projector and send it off. What do we save – inventory, we do not keep inventory. What do we have to spend more – transportation cost will be very expensive. We therefore have to find out if we have a warehouse somewhere in them from Mammal to the customer; we send it from that storage which is closer so we save transportation cost.How many such warehouses we need to cover Europe? It depends on the elements: transport, inventory, lot quantity, warehouse costs. In optimizing all these costs together is a logistics decision. Ex. In the case of the depots, we might have 8, 10, 12 to cover the entire Europe. What cost elements we have in the case of the distribution of projectors in Europe. First the systems cost, the processing and information cost. When there is a centre there needs to be a computer system, a financial system, etc. If the re is no centre, the system cost is very low.The more centre, the higher the system cost and this is a storage cost. If there is only one storage at the headquarters in Mammal, the cost would be relatively low. As the numbers of depots are being increased the storage cost will be very high. Inventory cost – more depots, more stock – higher inventory cost. Trucking cost – tree has trunk and branches. Trunk means main transportation, branches mean local delivery. Transport cargo from production to main distribution centre = trunk transport and then from distribution centre to each individual apartments = local delivery.Trucking cost – the more centre, the more trucking cost. If there are no depots, each time to ship from mammal to each individual location will be very high. The more depots, the less the local delivery cost will be. The total distribution cost is the addition of all cost, this is what we call total logistics cost. When we have the total logi stics cost curve it corresponds to the number 8 meaning there should be eight distribution centre. So this is the solution – 8 centre. As costs change, oil, etc, the optimal numbers of centre will change. Its not static, its dynamic (the Total Didst. Curve).Logistics – one has to plan, implement, control. If the individual costs are changed then total cost will be different – high/low. E. G. If the interest becomes low – inventory cost will be affected as the capital will become cheap. If oil cost increase, interest rate decrease – could end up with more centre which means saving more rainspout cost, esp.. Local delivery cost. Transport cost in total will be less. Inventory cost is dependent on interest rates. May have 9/10 depots. # of depots depend on cost elements. Cost trade off is important. With depots total cost is lower, so this will save cost.Having depot is a cost but the cost is lower than not to have them. E. G. KEA used to rent warehou ses, now they build – benefit of depreciation. Next Slide Logistics cost in the USA Logistics cost include transportation cost, inventory, warehousing, distributing, etc. How much logistics cost people pay as a percentage of a country GAP – 10% in the US. Inventory cost increase faster than the transportation cost bet. 1980 and 2005- why? Better inventory control, interest rate lower so inventory cost lower. Interest was low in the rest of the world until about 2005. Deflation = lower inventory cost.In other countries this percentage is much higher. China – 18% of GAP spent on logistics (used to be 20%). China is more representative of developing countries. So in developing countries logistics systems are not as efficient as those in industrialized countries. 9. 5% is similar in Europe and Japan (COED countries). In developing countries it's much higher. Includes all logistics cost element – transport, inventory, etc. – big room for improvement. Ne xt slide Customer service is another concept. Customer service is the output of logistic based, performance-based, philosophy based.Activity based e. G. After sales service, marketing, public relations. Performance based – what is the standard? Ex. Dell computer is performance based, delivered in 48 hours – performance-based customer service. Can be measured. Ex. , ports – waiting time for ships – rush. Philosophy based on what customers require is the customer service – according to customers taste – before, during, and after transaction. What is transaction? Buy goods, pay. Customer service can take place before this, during, after. Changes in CSS level affect total logistics cost. Next slide CSS High, Low.Cost Low/High – the higher the customer service level, the higher the cost. No ship should wait in port for more than 3 hours. This will cost a lot of money – will have to build more berths. Define customer service level. T ry to minimize total cost based on this pre-condition. Why CSS level increase and inventory level affected. The higher the CSS, the higher the inventory level. Goal: increased SSL, so high inventory level. It's a decision the company makes – customer service level is very important. (Refers to graph on the right) Try to find a way to push the line by introducing a better way of production e. . Using IT, new production method. Reduce cost but still satisfy goal – IT, use better system. Next slide: industry norm, etc. Customer's response to stock out. Is a risk being run of losing the customer? All different ways to define the customer service level. KIT System Developed by Toyota. Called the Kanata system. When a container of parts is chosen to be used from inbound stockinet in-out in-out This is the production. Eng the assembly line how do you get different stages to work together in harmony. The system has two cards. KIT works with 2 cards – the move cards and the production cards. Hen you see the move card, time to move the container or the other card, time to produce. Work centre 1 the card moves along the production line from one work centre to the next. Toyota manage to have minimum inventory along the assembly line. They have one container of part. Cards are turning around and the parts are being moved from one centre to another. For logistics a better understanding of Just in time is very important. 9 Cot 2008 There are two circulations of cards. How do the 2 circulations make the KIT system work? Why does it work? Key elements: to reduce inventory therefore reduces the capital tied up in inventory.Planning, staff commitment including suppliers, suppliers' ability to meet the demand. Some inventory is kept because there is a container. One piece at a time is being used from the container so the rest must be inventory. What is the average inventory? What is the customer requirement? It's the size of the container. The container is fu ll – how big is the container. How is the size of the container defined? The size of the container is planned based on production. Supply 20 units at the beginning and then it's consumed and a new container comes. The container is consumed during a cycle. The cycle is the time needed.The average inventory is a half of the container what ever the amount it contains. Typical KIT, there should be no inventory so why is inventory kept? When we need egg rice why don't we get exactly that? Other costs would increase too much. KIT – to keep as little inventory as possible. The size of the container depends on what? Transportation two don't match then the size of the container needs to be changed. If the transport sakes more time then increase the size of the container and vice versa. Transport time important. Volvo had KIT between Gent and Mammal. How much inventory should be in the Volvo factory in inventory?A lot. Why? Engine parts are made in Sweden to be used in Belgium. This transport takes one week by ship. As it takes one week, there should at least be spare parts for one week. Toyota has KIT. In the city of Toyota in Japan within 30 kilometers of the factory all Toyota parts are made there. This is the perfect KIT system. KIT emphasizes the reliability of the transport system. The two containers must have the same matching size. If parts can't be produced in time, the cart must be moved earlier. At the moment one container is taken to the in stock point, another container load of part should be produced.Suppose the production takes more time than when one cart comes back? Egg. If production takes 20 hours, parts can be made in 10 hrs. The time information is sent – information flow is the key. Plan to know how long production will take. In Japan, transport is guaranteed (Toyota). What is supplier commitment? Shortcomings of the KIT system? Now we assume we only need 20 parts in 10 hours, how about if the demand change and we need 30 parts in 10 hours. If the speed of production is variable the whole system is challenged. If the demand is certain/flexed then it can be planned – production rate and transportation.But what if production rate changes? This is a challenge for some of the production down the line that may need more time and material which might have to come from far. Not easy to adjust production. Shortcomings: Does only one supplier have to be used with KIT? No, Honda uses more than one supplier. In KIT, anything that goes wrong will collapse the entire system. In KIT the entire chain has to be KIT, it can't be at only one stage of the production. If not it forces other suppliers downs the line to keep inventory. KIT of big companies push inventory down the line if the don't plan effectively.Because smaller suppliers want to satisfy big companies, they are forced to keep inventory. KIT has to be along the entire supply chain. KIT may be only at the very large suppliers who push the inventory down the line to smaller suppliers. Toyota case: 1/52 weeks car production stopped because of a fire at one supplier – ripple effect. The decision of Toyota to do nothing was based on the total minimum cost of they did various studies. CCITT Case: The reliability of transportation and the uncertainty factors make logistics system key. The importance of information. Logistics concept drivers enablers, under total cost and customer level.KIT will never work without IT. Everything works together with IT supporting the processes under total cost and customer level. The process, concept or IT cannot work separately. Information is critical for success as well as the reliability of demand. Forecast and planning important to know when demand change. Transportation is also important for this system. If the transport distance is long, the container has to be big. The size of the container is influenced by time (transport). Transport is via sea – only use air in case of emergency. If transport takes a long time or is unreliable then more inventory needs to be kept.Gent is the biggest Volvo manufacturer. Terrines transport the parts from Sweden to Belgium. The shorter the interval of the shipping service, the lower the level of inventory required. This can make the transport expensive. So it's the total cost that is important that will Supply chain 2 definitions (see slide): it's a network, not port to port. In logistics there is no procurement. The 2 key words in logistics are flow and storage. Supply chain includes manufacture. Transformation = manufacturing. 1st law of dynamics – don't create anything, only change the form. Supply chain includes much more than logistics.Logistics narrowly defined. Supply chain is broader. Procurement also concerned with about origin of the goods. Optimization Integration Collaboration Synchronization Optimization – optimize one stage, the entire thing is not optimized so integration has to take place then consol idation then synchronization (concerted manner, happening in the same time). Relationship along supply chain. Start from optimization to synchronization. The idea of supply chain is relatively recent compared to logistics. 1960/ass people start to talk about total cost. E. G. In stage one warehousing and transport are separate functions.Management focus was operations performance. No integration. Logistics integrated both to see how they can be optimized. This is called total cost management. So the focus changed to optimizing total cost and customer service. Customer service put together with cost. Organization design is a centralized function. 80,s integrated logistics function. This moved today to supply chain MGM. Put logistics together to get supply chain. Supply chain broader than logistics. Stage 1 -separately treated, not optimized. Optimization done within the company. Optimize internal functions – transportation and inventory.Intra company and intra functional. This function is a logistics function. The logistics function today is moving still in the company but inter functional. Everything in the company put together – integration. Toyota inter company – higher level of integration. Toyota owns the supplier – easier to do KIT. Companies are integrated supply chain – Inter company and inter functional. Dell and their suppliers are integrated. Also Wall-Mart. The producers don't take orders from Wall-Mart – the ‘cards' in KIT comes from individual supermarkets. Producers can check storage level of Wall-Mart outlets.Everything is totally integrated. No personal intervention to place order etc. The system is integrated – good supply chain – inter company. Next Slide From fragmented logistics to integrated supply chain. In the fist stage do one function at a time – inventory or warehouse or transport. In the later stage, intra functional – the whole function optimized. From fragm ented logistics to integrated SCM. Suppliers, manufacturer, distributor, retailer, customer are all integrated with he other functions in the company and go to the next stage you integrate between the functions in the companies and between the companies.This is interception and will become in the true sense a supply chain. Supply chain broader today than the logistics. SC have to work with other companies. To satisfy your customers require more than one company: need supplier, manufacturer, distributor, and retailer. E. G. Markers – their system integrated with some of their key customers – key client management. Copra's definition of supply chain. Within an organization there is a supply chain. Egg. WHOM, teaching, supply services, library, canteen, etc. Al depots. Work together to satisfy customer. SC decisions – have to have supply chain design and strategy.Strategic level, medium term, short term – operational, daily and based on the company's competi tive strategy. Michael porter: define competitive strategy in terms of product differentiation or cost cutting leadership. How to achieve strategy: SC strategy. Balance bet. Efficiency and responsiveness. How to respond to demand? Efficiency includes cost-effectiveness, I. E. Cheap. Fast response – this is provided at a cost. Efficiency might compromise cost. Decision making is from lower level to higher. Many competitive strategies come from SC strategy. Wall-Mart is from logistics.Dell is from Supply chain Beer game: Once demand is variable SC difficult to maintain. KIT difficult to maintain. Long time to reach an equilibrium. In the end have to keep large inventory. Once demand is unstable KIT is not suitable. SC Design. Planning is important. SC design is about planning. When suppliers design their supply chain maritime and port services is a part of that. So mapping is important. Stockholders point is storage. Horizontal line represents move. When it stops – verti cal lines = storage or waiting. Egg. BBC container tracking. This is SC mapping.Horizontal line is lead-time (time from production centre 1 to production centre 2). Lead time depends on inventory to determine when order is to be placed. SC starts from the fiber and end with the clothes on the shelf. Through this we see pipeline length and volume. E. G, coca cola. Postponement of safety stock What is postponement? H and Ezra – they use postponement principle. Clothes must be in fashion. Don't know faction of 09. Try to postpone as much as possible the manufacturing time. Forecast, ii, postpone. Dell also uses this strategy. Don't develop their machines until last moment.Can use the latest technology and the price gets cheaper. Anticipate time needed and kind of product needed. Decision is postponed to the last moment. Postponement principle can reduce stock. Has bearing on transport too. Better information flow will impact SC. Next slide Sometimes for material flow speed might not be appreciated. Transport is used as storage to adjust transport time to match with performance. Sometimes it's because of the price. E. G. Iron ore in China, there is too much now. Information speed is always good but for material sometimes it needs to be fast and other times not so fast.Compression of lead-time in manufacturing activity. Supply chain map – length (vertical) volume (horizontal) – try to compress it to see possibilities to reduce some of the variable. Ocean transport can't be adjusted as speed can't be reduced. SC design. Lead-time is transport. Port of Amsterdam case study summary Market research – likelihood to attract new carriers / guarantee – balance and supply (elasticity). When port built no congestion in Europe – more port than ships. Impossible to get firm commitment – plenty choices. More supply than demand. Demand price inelastic. Shipping companies never give guarantees.Optimization, integration, collaborati on, synchronization. Have to synchronize. Increase speed of one operations but the speed of other things remained unchanged. No synchronization. If the discharged boxes cannot be moved this is a logistics problem. The concept of logistics: most important – total cost. Port of Amsterdam forgot total cost. Typical failure case that should never have been done. Restricted berths – bigger ships cannot fit in today – size is restrictive. How wide and long should ship be. (Panama Canal has size restriction and is thus a constraint – ships in the Asian

Integrative Running Case Study: Starbucks Essay

Starbucks A case analysis of Starbucks can provide a much closer look at the company, its strengths and weaknesses, as well as the company’s ability to do business on a global scale. In order to best analyze this company, a SWOT analysis, along with answers to the case study questions is provided below. Furthermore, a few recommendations are included that are brought to light by reviewing the facts of the Starbucks case study. This thorough investigation of the Starbucks company adds a rather complicated â€Å"flavor† to my favorite caramel macchiato that had never before been considered. Starbucks has been serving coffee domestically since the early 1970’s. After experiencing success in the domestic market, Starbucks entered the global marketplace, including opening its first stores in China in 1999. (Lamb, p.139) The company entered the Chinese marketplace knowing the vast opportunities that were available, but quite aware that many factors had to be accounted for in its marketing mix and product offering strategies. Cultural, political, and economic factors played important roles in discovering the best plan for delivering a lucrative coffee business to a land where the majority of consumers had never even had a cup of coffee. Partnering with local developers provided a safer market-entry strategy that Starbucks was ready to relinquish in 2006. After gaining several years of experiencing in the business environment of China, Starbucks embraced the chance to try its own hand at delivering a lucrative business operating in an environment that had many similarities to its domestic marketplace in the United States. A discussion of the strengths, weaknesses, opportunities,  and threats for the Starbucks company is provided to further understand its success in the global marketplace. Strengths: The decision Starbucks made to enter the Chinese marketplace wasn’t without extensive research. Starbucks had an already-existing marketing mix that was working well and generating large profits in its homeland. The knowledge and expertise found in the existing Starbucks employees were an important strength for the company as it planned its business venture in China. As a successful domestic coffee-seller and cafe business, Starbucks had funding and financial resources to work with when entering the foreign Chinese market. Furthermore, the reputation of Starbucks and its business growth and success certainly attracted additional funding from shareholders when taking the Starbucks brand globally. Weaknesses: Though Starbucks was a well-tested brand in its domestic market, Starbucks faced new market-entry obstacles. The idea of entering a foreign market on its own was not a wise decision, and therefore, Starbucks would have to rely on foreign partnerships to expand its brand globally. (Lamb, p. 140) This reliance on a partnership could be costly as profits are shared even though market-entry risks are lowered. The expense of making mistakes and learning from them, as well as creating a whole new marketing mix for Chinese consumers was certainly a costly investment. Opportunities: Even though entering the Chinese market would prove to have some obstacles, the company certainly realized the many opportunities that existed for creating its brand in China. Entering a market that consisted of consumers who had very little experience with coffee would leave Starbucks as a unique product with potential for elasticity in its pricing with very little competition from other â€Å"coffee† shops. Furthermore, changes in the Chinese youth’s view of collectivism was drastically changing as they focused more on individuality. (Lamb, p.139) This offered a similar environment to the domestic market in the United States. Additionally, the research Starbucks initiated would show that a specific need for a place for  people to gather together was in high demand in China. Starbucks knew that providing that experience combined with the distribution of â€Å"coffee† (a symbol of the modernizing of China) could provide a whole unique experience that youth would be quick to embrace. Similarly, economic success in the region proved the needs for disposable income for expensive coffee drinks could be met easily by the growing and expanding economy. Threats: Just as there are many opportunities when a company enters a whole new marketplace, there can also be many external threats as well. A booming economy that may at first seem ripe for market entry could change at any time, and prove devastating to the Starbucks China operation. Furthermore, political and legal factors could change just as swiftly and cause many problems for Starbucks as the company has no influence over these external factors. Similarly, social factors can always pose a threat as well. With a business focused on mainly the Chinese youth, any trend that in some way denounces or disqualifies Starbucks as a meaningful experience to the youth would cause a dramatic breakdown in the Starbucks marketing mix. A further analysis of Starbucks’ entry into the Chinese marketplace can be accomplished by investigating the questions at the end of the case study. 1. Many of the same environmental factors, such as cultural factors, that operate in the domestic market also exist internationally. Discuss the key cultural factors Starbucks had to consider as it expanded into China. Several cultural factors impacted Starbucks entry into the Chinese market. One such factor was the cultural reliance on mostly â€Å"tea† as a drink of choice among the Chinese. Starbucks knew that entering the market with a strategy of simply trying to sell various facets of coffee would be a challenge if not carefully executed in a way that would inspire and empower the consumers to actually stimulate the desire for coffee. A second cultural factor that enabled Starbucks to overcome the obstacle of the tea vs. coffee concern is that the Chinese people do not have much space in their homes etc. for gathering with their interest groups. Starbucks quickly determined that providing a need (such as space to â€Å"hang out†) would be an excellent way to offer its products in an environment that would be  providing a solution to the problem of having limited spaces to just be with friends. (Lamb, p.139) 2. Discuss the key political and legal factors Starbucks had to consid er in the Chinese marketplace. What are the risks of entering a country with these factors? What changes have occurred in China’s political and legal structure to the advantage of foreign companies? China is a communist country, and politically this type of government can be volatile. Any changes to the government and/or its officials could have fast and devastating effects on businesses operating in China. (Lamb, p.140) Legislation could be created overnight that may involve the removal of foreign businesses or simply make it impossible for them to compete in the Chinese market by placing restrictions on their allowable business practices. Although there are risks associated with entering a foreign market with uncontrollable political and legal factors, China has proven to have a political and legal structure that has been very conducive to foreign companies. Beijing entered the World Trade Organization in 2001, and since has provided economic stability as well as political stability to businesses. (Lamb, p.140) Legally, China has mandated that each family is allowed one child. This mandate has resulted in a shift of the normal â€Å"collective† view of communist consumers to a more â€Å"individualistic† view for young consumers, creating a very ripe environment for businesses that provide modernistic, Western-individualism style products and marketing mixes. 3. What demographic factors were important for Starbucks to understand in China? What were the demographics they decided to target? In order to enter the Chinese market, Starbucks had to consider demographic factors such as age and population in order to be successful. According to Lamb Starbucks initially focused on the economically upwardly mobile population, including 20-40 year olds. (Lamb, p.139) Finding much success there, Starbucks wanted to grow that success over time, and is strategically focused on the youth of the Chinese population since they have the economic backing of their families to support disposable needs, such as pricy cappuccinos. 4. What was the initial global-market strategy Starbucks employed to enter China? Discuss the advantages and disadvantages to this early strategy. How has their strategy changed since then and why? According to Lamb the initial global-market strategy Starbucks entered China with involved partnering with other businesses as a joint venture, along with authorizing local developers to use their brand. (Lamb, p.140) This strategy had an advantage of entering the market in a gradual way, and gaining the trust of the Chinese while simultaneously avoiding the added risk of entering the market on its own. The disadvantage of this style of market entry is seen in the profit margin for Starbucks. Joint ventures and partnerships do not share equally in profits (and Starbucks would need to work hard to find a management position in such ventures to make sure it could hold onto its profit margin as sales increased). Since then, Starbucks has bought out its partners and now individually owns its own stores. While this strategy is drastically different from its market-entry strategy, the company is now much more confident in how to do business effectively in China. Furthermore, the fact that Beijing entered the World Trade Organization has had a securing and positive economic and legal affect on foreign companies doing business alone in the Chinese marketplace. In lieu of the facts provided in the case study, it is possible to recommend additional ways in which Starbucks can continue to successfully operate in China. One such recommendation is for Starbucks to keep a very close watch on social media trends among the Chinese youth. Knowing that the Asian community is very embracing of social media, it is imperative that Starbucks maintain its reputation as â€Å"modern† and â€Å"forward-moving† by participating in the social media trends of the youth. A second recommendation for Starbucks is to provide social benefits to the communities in which it operates. Providing benefits to surrounding communities can help to establish a successful business relationship with local government officials as well as encouraging the trust of the local people. Furthermore, these philanthropic efforts can have an impact on the consumers of Starbucks products domestically as well. Domestic patrons can find value in these efforts of â€Å"doing good† for global communities and become encouraged to support the company with more purchases. In conclusion, the review of the Starbucks case study has been both  informative and interesting as I am a consumer of Starbucks myself. The knowledge gained here has certainly changed my thoughts from salivating for a simple caramel macchiato when I pass the Starbucks logo, to wondering where and how they do business elsewhere. References Lamb, C.W., Hair, J.F., Jr., McDaniel, C. (2011). Marketing (11th ed.). Mason, OH: South-Western.

The Definition of Conduction in Physics

The Definition of Conduction in Physics Conduction refers to the transfer of energy through the movement of particles that are in contact with each other. In physics, the word conduction is used to describe three different types of behavior, which are defined by the type of energy being transferred: Heat conduction (or thermal conduction) is the transfer of energy from a warmer substance to a colder one through direct contact, such as someone touching the handle of a hot metal skillet.Electrical conduction is the transfer of electrically charged particles through a medium, such as electricity traveling through the power lines in  your house.Sound conduction (or acoustic conduction) is the transfer of sound waves through a medium, such as vibrations from loud music passing through a wall. A material that provides good conduction is called a conductor, while a material that provides poor conduction is called an  insulator. Heat Conduction Heat conduction can be understood, on the atomic level, as particles physically transferring  heat energy as they come into physical contact with neighboring particles. This is similar to the explanation of heat by the kinetic theory of gases, though the transfer of heat within a gas or liquid is usually referred to as convection. The rate of heat transfer over time is called the heat current, and it is determined by the thermal conductivity of the material, a quantity that indicates the ease with which heat is conducted within the material. For example, if an iron bar is heated at one end, as shown in the image above, the heat is understood physically as the vibration of the individual iron atoms within the bars. The atoms on the cooler side of the bar vibrate with less energy. As the energetic particles vibrate, they come into contact with adjacent iron atoms and impart some of their energy to those other iron atoms. Over time, the hot end of the bar loses energy and the cool end of the bar gains energy, until the entire bar is the same temperature. This is a state known as thermal equilibrium. In considering heat transfer, though, the above example is missing one important point: the iron bar is not an isolated system. In other words, not all of the energy from the heated iron atom is transferred by conduction into the adjacent iron atoms. Unless its being held suspended by an insulator in a vacuum chamber, the iron bar is also in physical contact with a table or anvil or another object, and it is also in contact with the air around it. As air particles come into contact with the bar, they too will gain energy and carry it away from the bar (though slowly, because the thermal conductivity of unmoving air is very small). The bar is also so hot that it is glowing, which means that it is radiating some of its heat energy in the form of light. This is another way in which the vibrating atoms are losing energy. If left alone, the bar will eventually cool down and reach thermal equilibrium with the surrounding air. Electrical Conduction Electrical conduction happens when a material allows an electrical current to pass through it. Whether this is possible depends on the physical structure of how the electrons are bound within the material and how easily the atoms can release one or more of their outer electrons to neighboring atoms. The degree to which a material inhibits the conduction of an electrical current is called the materials electrical resistance. Certain materials, when cooled to nearly absolute zero, lose all electrical resistance and allow electrical current to flow through them with no loss of energy. These materials are called superconductors. Sound Conduction Sound is physically created by vibrations, so it is perhaps the most obvious example of conduction. A sound causes the atoms within a material, liquid, or gas to vibrate and transmit, or conduct, the sound through the material. A sonic insulator is a material whose individual atoms do not easily vibrate, making it ideal for use in soundproofing.

Brief Look At Jewish History Essays - Zionism, Land Of Israel

Brief Look At Jewish History Essays - Zionism, Land Of Israel Brief Look at Jewish History The Jews are a people with a multitude of dilemmas. From the Israelite tribes to the prosperous modern day Israel , bigotry towards the Jews has been greatly evident. The Jewish race has acted as Escape Goat for many crisis throughout history including the black plaque which swept across Europe in the 14th century. The establishment of Israel was a great incident was something the Jewish people were striving to obtain for generations. This, however, led to four major conflicts between Israel and the Arab countries. One of the most meaningful wars was the Six-Day War. Events such as the holocaust have also had a dramatic effect on world history and whose mysteries are still being unravelled. For twelve years following 1933 the Jews were persecuted by the Nazi's. Jewish businesses were boycotted and vandalized. By 1939,Jews were no longer citizens,could not attend public schools,engage in practically any business or profession, own any land, associate with any non-Jew or visit public places such as parks and museums. The victories of the German armies in the early years of World War II brought the majority of European Jewry under the Nazis. The Jews were deprived of human rights. The Jewish people were forced to live in Ghetto's which were separated from the main city. Hitler's plan of genocide was carried out with efficiency. The total number of Jews exterminated has been calculated at around 5,750,000. In Warsaw ,where approximately 400,000 Jews had once been concentrated,was reduced to a population of 60,000. They, virtually unarmed, resisted the German deportation order and had held back the regular German troops equipped with flame throwers,armoured cards, and tanks for nearly a month. This heroism was similar to the revolt which took place around 165BC. This uprising was led by the Maccabees, a provincial priestly family (also called Hasmoneans). They recaptured the Temple and rededicated it to the God of Israel. The Maccabees made there last ezd on a mountain and was able to hold back the syrians for more then a month. There is a distinct similarity between the two stories and that is possibly why they are both recognised as holidays in the Jewish faith. These horrific events of the holocaust have let to some consequences which are beneficial and some are unfortunate to the Jewish people. The population of the followers has greatly declined. Also the Jewish people after the war still had problems finding jobs. They had to essentially start there life over. Most of them lost a close relative or at least knew someone who died in the gas chambers of the Nazi concentration camps. This has put a psychological strain on Jewish survivors or no longer having family and friends with them for support. This event has awaken the world up to the needs of the Jewish people. It has given them political power and a justification for some of their actions. On May recognised,1945 ,the end of World War II was seen. Organized Jewry in the European continent was damaged beyond repair. The Jews concentrated on the preservation of Israel and on the bringing of Nazi war criminals to trial. There is a day of commemoration, Holocaust Day, observed in Israel and elsewhere on Nisan (April) 19 and 20. The date is considered the anniversary of the beginning of the Warsaw Ghetto Uprising. The emergence of Israel as a Jewish state on the former territory of Palestine was the central political issue of the Middle East after World War II. A movement was established to work on the reestablishment of the Jewish national state of Israel. This movement was given the name Zionism. The Zionists were full of energy,enthusiasm, and skill which led to remarkable accomplishments. Israel was a modern European state in an underdeveloped area. This was the source of there problems and their achievements. The Jews received vast amounts of financial and military support from Western governments. The Israelis also benefitted from a highly trained and motivated citizenry to create a unique nation-state. It had taken the Zionists seventy years to purchase 7 per cent of Palestine. Now the UN was offering them another 50 per cent. The partition plan was objected by all of that Arab and Palestinian Arab governments. The Zionists excepted the plan. They however were upset that Jerusalem was excluded from the Jewish state. The Jews were the most fertile land including the citrus groves upon which the Arabs depended on for their living. Many of the nations of the world felt guilt or grief of the Hitler era. This is

Business and Professional munication Skills

The updated textbook written by Beebe & Mottet addresses the skills of the business and professional munication as the core concept. It emphasise on the global leadership in today’s global workplace. This is an important source as it does not bind the munication methods in limits. It explains the five fundamental principles of munication that provides a great framework of teachings. The authors has explained these principles by applying them on various professional and business contexts like interview, teams and groups, workplace relationship and presentations. The drawback of the book is that it focuses mainly on the global level example, where as some small scale organisation’s examples would have very useful to understand different scenarios. This reference is a great choice as a resource because it answers a number of questions that need to be answered in my report. It explains the importance of bringing in the new technology in an organisation. The best part is it takes in focus the national as well as global level petitiveness that an organisation has to face and how a new technology can help in gaining in the petition is explained thoroughly. It also explains the implementation and training support that is required for introducing the technology. The drawback of this article is that it is a general article on the introduction of the technology in the organisation and thus does not focus on the technology selected for the organisation. This newspaper article is important because it explains that in today’s scenario of business how important CRM is. It explains five most important C’s for a successful start-up business and that includes the CRM. It says that it doesn’t matter what is the size of the pany CRM is an important factor that should always be present in the pany. This article helps in giving weight to justification of using this technology in the organisation. Though, this article is related to other C’s also. So, basically very less information is being given on our topic but, whatever is given is useful for the report. The report that needs to be written is to convince the management to introduce the new technology that is CRM in the organisation, and this article hammer the last nail to it. This article explains how CRM software can change leads into great opportunities. It emphasise on the use of CRM and how beneficial it will be for an organisation. This article explains the process to use CRM for the pany’s benefits. The article is very well-written but, lacks practicality. Some options are not very practical for all the organisations to use. This journal article is the one that explains about the new technology that needs to be introduced in the organisation. This article covers all the points required to write a report about the new technology and the questions related to it. This article focuses on explaining about the CRM software, how it will be beneficial for the pany, what are the limitation of the software, the budgeting required for it, and the other information required is also there in the article. The article has a good approach towards the subject, but it was written in 2010, some its content may have get old and therefore, not very useful. This article revolves around the procedure to find the best CRM software for an organisation. It is helpful to know what type of software will be helpful and beneficial for the pany. There are various CRM software in the market and every software has its own speciality. It b es difficult for a pany management to decide which CRM software is best suited with the pany’s requirements here this article helps and provide steps to find the best CRM software. Article is very helpful, but it is too long and bit difficult to understand the steps given to select the CRM. Many statements clashes with each other that confuse the person reading it. Problem- the pany wants to increase its clientele by working on to increase more online orders. Background of the problem - the pany has website that take online orders but it is not satisfied with the number of orders it is getting so the management has decided to add a new technology to reach the potential customers. Gathering of information - the information will be gathered with the help internet. Using correct keywords like ‘CRM Software’, ‘Options of CRM software’, ‘New technologies available for organisations’, ‘How to gain more online customers.’ From all the sources available the best and most informative sources will be used to shortlist the information required to write the report. Ahmad, S. (2014). Technology in Organizations.  International Journal Of Research In Business Management,  2(7). Beebe, S., & Mottet, T. (2013).  Business & Professional munication: Principles and Skills for Leadership  (2nd ed.). San Marcos: Pearson. Kubi, B., & Doku, A. (2010). Towards a successful customer relationship management: A conceptual framework.  African Journal Of Marketing Management,  2(3), 037-043. Retrieved from www.academicjournals.org Leary, B. (2015).  Determining the best CRM software for your organization.  SearchCRM. Retrieved 23 March 2017, from searchcrm.techtarget Mahalingam, T. (2016).  Startups expect five Cs from firms: coaching, customer relationship, capital, connects and cofounders, says Ravi Gururaj.  The Economic Times. Retrieved 23 March 2017, from economictimes.indiatimes Nadeau, A. (2015).  Lead Management: 5 Ways CRM Software Converts Leads Into Opportunities.Thevarguy . Retrieved 23 March 2017, from thevarguy

Marketing Research Paper Example | Topics and Well Written Essays - 750 words

Marketing - Research Paper Example This shall be at the core of the analysis below. The companies’ approaches shall be evaluated on the basis of the four P’s of marketing (price, product, place and promotion). In addition to that, any differences in their domestic and international operations shall be under study. Domestically Internationally Practice/Example Rationale Practice/Example Rationale PRODUCT McDonald’s A wide array of fast foods and beverages. A one stop shop for all food and beverage needs. Sale of fast foods such as hamburger and pizza. Attract working class to the fast food industry. Starbucks Coffee and accompaniments only. New products, packaging i.e Blonde Roast Creating a niche market and specializing in a single product. Great service, top quality coffee, stylish packaging that lives up to the brands reputation. Developing brand association among consumers and nurturing habits. PLACE McDonald’s In all big cities via franchising. Targeting workers during or after work Big towns in developing countries. Targeting emerging classes in towns Starbucks Big cities, small towns through clustered outlets. Being the â€Å"third place† after home and work. Only in large towns in emerging markets Proximity to core consumers, the middle class PRICE McDonald’s Affordable rates. Attracting price sensitive buyers. Low cost coffee and pastries. Luring low and high end buyers. Starbucks Premium rates. Quality has no price. Relatively high prices. Attracting high end consumers. PROMOTION McDonald’s Advertising using mass media, billboards e.g. ‘I’m Lovin It’ ads Establishing a constant presence with loyal and budding customers Advertisements in mass media, billboards etc Creating brand awareness among new customers Starbucks Word of mouth and personalized service Quality self promotes. Unique customer Advertisements in mass media Introducing customers to a novel product. Since the start of the economic crisis, Starbucks has cl osed several stores at home (Gummesson, 2002). This needs to inform its operations abroad. Lowering prices is the best way to attract international consumers since they are using the product for the first time, and they are not ready to pay dearly for an experience they are unaware of. As regards promotion, both word of mouth promotion and mass media marketing have served Starbucks and Mc Donald’s well at home. However, the international market is totally different (Gummesson, 2002). They can not rely on the customers to spread the word on a product they do not know. Therefore, mass media market should be the first resort. Location or place has been a major determining factor of both companies success. At home, Mc Donald’s and Starbucks have used franchising and clustering to spread their branch footprint respectively. However, abroad franchising is the tried and proven alternative. Franchising allows for local entrepreneurs who know the market well to attend to the un ique needs of these consumers. Product is the reason the business exists in the first place. At home, both companies are best known for their coffee and related products. The operations in international markets, however, need to follow a different path (Gummesson, 2002). Several products should be launched at a go. This way, even customers who do not have a coffee drinking culture shall be welcome to the establishments. After all, the prime objective is to build a large customer base. After that has been achieved, maybe the companies can concentrate on their core