Friday, May 22, 2020

How to Define Acceleration

Acceleration is the rate of change of velocity as a function of time. It is a vector, meaning that it has both magnitude and direction. It is measured in meters per second squared or meters per second (the objects speed or velocity) per second. In calculus terms, acceleration is the second derivative of position concerning time or, alternately, the first derivative of the velocity concerning time. Acceleration—Change in Speed The everyday experience of acceleration is in a vehicle. You step on the accelerator, and the car speeds up as increasing force is applied to the drive train by the engine. But deceleration is also acceleration - the velocity is changing. If you take your foot off the accelerator, the force decreases and velocity is reduced over time. Acceleration, as heard in ads, follows the rule of the change of speed (miles per hour) over time, such as from zero to 60 miles per hour in seven seconds. Units of Acceleration The SI units for acceleration are m / s2(meters per second squared or  meters per second per second). The gal or galileo (Gal) is a unit of acceleration used in gravimetry but is not an SI unit. It is defined as 1 centimeter per second squared. 1 cm/s2 English units for acceleration are feet per second per second,  ft/s2 The standard acceleration due to gravity, or standard gravity  g0 is the gravitational acceleration of an object in a vacuum near the surface of the earth. It combines the effects of gravity and centrifugal acceleration from the rotation of the Earth. Converting Acceleration Units Value m/s2 1 Gal, or cm/s2 0.01 1 ft/s2 0.304800 1 g0 9.80665 Newtons Second Law—Calculating Acceleration The classical mechanics equation for acceleration comes from Newtons Second Law: The sum of the forces (F) on an object of constant mass (m) is equal to mass m multiplied by the objects acceleration (a). F am Therefore, this can be rearranged to define acceleration as: a F/m The result of this equation is that if no forces are acting on an object (F   0), it will not accelerate. Its speed will remain constant. If mass  is added to the object, the acceleration will be lower. If  mass  is removed from the object, its acceleration will be higher. Newtons Second Law is one of the three laws of motion Isaac Newton published in 1687 in  Philosophià ¦ Naturalis Principia Mathematica (Mathematical Principles of Natural Philosophy).   Acceleration and Relativity While Newtons laws of motion apply at speeds we encounter in daily life, once objects are traveling near the speed of light, the rules change. Thats when Einsteins special theory of relativity is more accurate. The special theory of relativity says it takes more force to result in acceleration as an object approaches the speed of light. Eventually, acceleration becomes vanishingly small and the object never quite achieves the speed of light. Under the theory of general relativity, the principle of equivalence says that gravity and acceleration have identical effects. You dont know whether or not you are accelerating unless you can observe without any forces on you, including gravity.

Sunday, May 10, 2020

Ethical Issues in Social Networking - 851 Words

When social networking becomes a topic of discussion, everyone sees it as a web based interaction between human beings in order to stay in contact. However, many are not aware that social networks actually operates on different levels. (Nanda, n.d.) outlines, quite some time ago, when there were limited means of communication, social networking happens at functions where friends and family get together under one roof. Social networking has always been common but as for now, the way it is conducted has changed. In this globalization era, social networking websites such as Facebook, MySpace, Orkut and Twitter are being utilized just for any purpose especially in multi level marketing, meeting new individuals and building virtual†¦show more content†¦It creates an awkward atmosphere when meeting a client face to face due to different impressions about one another without taking considerations of their own privacy. Another ethical issue that is getting extreme today is when companies go beyond limits of checking out a person`s social network profile. It does not just stop there. Some employers ask around randomly among the employees for the log in informations into their online social network sites. Based on an article by McFarland (2012), Justin Bassett, a New York City statistician, was having interview session with the authorities of a company he is looking forward to work in. Just after a few questions he is merely asked to hand in his username and password to his Facebook profile because they have no access looking into the content of his social network site. Bassett immediately withdrew his application because he did not want to work for a company that wants to bother his personal life. As much to this, it is obvious that this organization is not being ethical enough. Violating others personal privacy is not a way to get to know a person. Everyone needs a space where they can be themselv es and just who they are out of the corporate world. Cases like this brings down a company image and causes a thorough effect to the public relations department. Public relations practitioners would go through a lot of challenges toShow MoreRelatedSocial Networking Sites and Privacy1155 Words   |  5 PagesIntroduction What do about ninety percent of us have in common? It’s the social networking sites that everyone is a part of these days, whether it’s your twelve year old nephew or your grandmother. Spending hours and hours connecting with your old friends and making new friends over the social networking sites has become a part of everyone’s daily routine. Nonetheless, recently privacy concerns over the social networking sites have taken its peak. Background It all started several decades back,Read MoreEthical Issues Of Social Media963 Words   |  4 PagesEthical Issues in Social Media Emerging Information Technologies are faced with numerous ethical issues. One of the most centers of ethical debate in Information Technology is social networks. Social networking has changed from a niche phenomenon to mass adoption. Although the concept of social networking was formulated in the 1960s, the advent of fast internet has sent the concept viral. Currently, social networks have been dogged with myriad ethical issues. Privacy issues are the epicenter of theseRead MoreEssay on Ethical Issues with Social Media1505 Words   |  7 PagesCurrent Ethical Issues with Social Media People are increasingly sharing their lives online through social networking sites with little concern for who may be viewing their information. This has become an issue in current times and is up for debate based on the ethical issues associated with Social Media. People don’t realize joining a social network is like joining a community. As any community in real life, your business has a place in the community but should not invade one’s privacy. Social networkingRead MoreAssignment B1 1 Essay examples860 Words   |  4 Pages(12%) This assignment gives you an opportunity to analyze a key IT-related organizational ethical privacy issue subject to relevant laws, regulations, and policies. Both of the following sites provide sources and an excellent backdrop for issues relating to privacy protection and the law. See EPIC Report  Ã¢â‚¬â€œ at:  Ã‚  http://epic.org/reports/  Ã‚  See List on left:  Ã‚  HOT POLICY ISSUES and/or:   https://www.eff.org/issues/privacy   [see list at right on this page] This includes sub-topics discussing informationRead MoreThe Impact Of Social Media On Society And Changed The World1549 Words   |  7 PagesThe use of social media has vastly impacted society and changed the world. But what is social media? The definition of social media obtained from the Merriam-Webster dictionary is forms of electronic communication (as Web sites for social networking and microblogging) through which users create online communities to share information, ideas, personal messages, and other content. Social media websites have actually been around for a while, the first one was created in 1997. Social networking wasn’t asRead MoreApply Decision-Making Frameworks to It-Related Ethical Issue.1134 Words   |  5 Pagescommunication is social networking. During the recent years, social networking has been the victim of ethical issues concerning vigilance and safeguard of privacy for the members and their personal data. The invasion of personal information is a c ause of distress for many individuals and organizations. Moreover, it has become an issue that requires constant effort from the concerned parties who are striving to create a safe and comfortable environment for everyone to communicate on these social sites. DuringRead MoreSocial Media On The Work Place1529 Words   |  7 PagesSOCIAL MEDIA IN THE WORK PLACE ABSTRACT: Social media is the most common technical tool which is being used by the complete society in recent days. In addition, it plays a paramount role in the business world to maintain a continuous and flexible contact with the company employees. Further, there are two types of social media sites which are enterprise social media site and the consumer social media site. Enterprise social media network is for private use and the consumer social media is availableRead MorePrivacy and Computer Technology1813 Words   |  7 Pagesso are ethical issues. Because of the widespread, computer ethics are boiling down distinguishing what is good from what is wrong mentality. Everyones view on computer ethics differ, however all should keep in mind the value of ethics when making decisions that are ethics based. The golden rules of computer ethics state that, one should do to one another what he/she thinks should be done to them and if at least quite a number of people obey the golden rule, then the re would be no many issues concerningRead MoreEthics in Technology Essay1555 Words   |  7 Pagestheir contribution to the development of computer technology would produce positive impacts on the people that would use it. During the infancy of computer technology, ethical issues concerning computer technology were almost nonexistent because computers back then were not as multifaceted as they are today. However, ethical issues relating to computer technology and cyber technology is undeniable in today’s society. Computer technology plays a crucial role in all aspects of our daily lives. DifferentRead MoreThe Facebook Profile: A Right or a Violation? Essay example1027 Words   |  5 PagesSocial networking sites such as Twitter or Facebook have created a new ethical dilemma for many businesses. Corporations, small businesses, and even universities are struggling create policies to manage their employees social networking behaviors. Social networking access, particularl y for recruiters, can provide personal information about potential employees, which would otherwise not be available. A business must follow statutes and guidelines when disclosing information to the public. Individuals

Wednesday, May 6, 2020

North Carolina as a colony Free Essays

North Carolina is one of the thirteen colonies established by England around 1650. The  territory was called Carolina in honor of Charles the First.  Queen Elizabeth I of England granted Sir Walter Raleigh a charter for the establishment of a  settlement in North America. We will write a custom essay sample on North Carolina as a colony or any similar topic only for you Order Now Sir Raleigh and the Queen planned to establish a colony to be able to  explore for treasures and to scout for a strategic location where they can raid loaded Spanish ships. Based on these reasons, an expedition was sent in 1584 to explore for a suitable location and also  bring samples of the nature’s bounty on the area. After the successful exploration, the group  returned to England. In 1585, the first group of colonists was organized and they arrived at the north  end of the Roanoke Island. Ralph Lane with seventy-five men was left in the island while Sir  Richard Grenville, leader of the expedition returned to England to get additional food supplies and  additional men. Friction with the natives occurred when the settlers attacked a village in response to  the stealing of a silver cup by the natives. By April 1586, relations with a neighboring tribe had  degraded to such a degree that they attacked an expedition led by Lane to explore the Roanoke River.1 There was still no sign of Grenville’s fleet and due to hardships encountered, the settlers  accepted the offer of Sir Francis Drake to return to England.  Ã‚  The second group was led by John White and they arrived in June 1587. White tried to  reestablish friendly relations with the neighboring natives. At first, the natives were hostile and  aloof. But gradually the English gained their confidence by offering glass beads and dolls as signs  of friendships (Hale 128). But the aggrieved tribes whom Ralph Lane attacked were still unfriendly  to the new colonists and shortly thereafter, one colonist was killed by these natives. Fearing for their  lives, White was elected to return to England to inform of their situation and ask for help.   Two  significant events occurred shortly after the colonists’ arrival: two â€Å"friendly† Indians were baptized  and a child was born. Virginia Dare, as the baby was named, became the first child bor n to English-  speaking parents in the new world.2 But White was delayed in coming back to the colony because  of the following reasons: the vessel was not in good condition to travel back home and in crossing  the Atlantic Ocean; the refusal of the captain to sail back to the colony during winter time and then  the war with the Spanish Armada was imminent   and all the able ships were tasked to fight. He was  able to return in the spring of 1590 and found only the remnants of what was once a settlement. There were no signs of life, only the word â€Å"CROATAN† carved on a nearby tree.3   The second  failure can be attributed by factors beyond the control of the settlers. Although Sir Raleigh was  given a charter to colonize, attention was focused on the war with Spain. Cole and Warren  concluded that, â€Å"because England was so completely involved in fighting the Spanish Armada in  1588, no supplies were sent, nor any communications maintained with the settlements†. (403) The  colonization might have been successful if the expedition was fully equipped with farm implements,  food supplies and able manpower who are trained to do hard work in cultivating the soil. They  should have establish friendly relations with the natives to preserve their lives as well as with the  natives’. The impact left by Ralph Lane and John White on the area was that they had spread Christianity and English language to the new world.   It is ironic that Stuart Monarch James I rather than the visionary Elizabeth succeeded in  finally planting the British flag on the American shores. (Garraty and Gay 663) In 1607, three  shiploads arrived at Jamestown sent out by the London Company of Virginia. Captain John Smith  imposed a semi-dictatorial attitude to his men to check their incompetence and lack of initiative. His  edict, â€Å"He who does not work shall not eat† (Cole and Warren 406) was effective that they soon  cultivated crops especially staple crops and tobacco. By 1610, more settlers arrived and by 1612,  there were exportation of tobacco to other places. Significant too were the introduction in 1619 of  representative government – important to the Englishmen who contemplated migration to the New  World – and the beginnings of Negro servitude – important despite its inhumanity, to the economic  future of North America.(Garraty and Gay 665) Reference List Cole, Fay-Cooper, and Harris Gaylord Warren. An Illustrated Outline of History of Mankind. Grolier Incorporated: New York, 1963. Garraty, John A., and Peter Gay. The Columbia History of the World. Harper and Row: New York, 1972. Hale, John R. Age of Exploration. Time-Life International: Nederland, 1974. â€Å"Historical Highlights of North Carolina †.The State Library of North Carolina. 3 April 2006. 14 Nov. 2006.http://statelibrary.dcr.state.nc.us/nc/history/history.htm â€Å"Roanoke Island†. Wikipedia: The Free Encyclopedia. 14 Nov. 2006. 15 Nov. 2006. http://en.wikipedia.org/wiki/Roanoke_Island How to cite North Carolina as a colony, Essay examples

Thursday, April 30, 2020

Why Is the Soft Drink Industry so Profitable Essay Example

Why Is the Soft Drink Industry so Profitable? Paper An industry analysis through Porter’s Five Forces reveals that market forces are favorable for profitability. Defining the industry: Both concentrate producers (CP) and bottlers are profitable. These two parts of the industry are extremely interdependent, sharing costs in procurement, production, marketing and distribution. Many of their functions overlap; for instance, CPs do some bottling, and bottlers conduct many promotional activities. The industry is already vertically integrated to some extent. They also deal with similar suppliers and buyers. Entry into the industry would involve developing operations in either or both disciplines. Beverage substitutes would threaten both CPs and their associated bottlers. Because of operational overlap and similarities in their market environment, we can include both CPs and bottlers in our definition of the soft drink industry. In 1993, CPs earned 29% pretax profits on their sales, while bottlers earned 9% profits on their sales, for a total industry profitability of 14% (Exhibit 1). This industry as a whole generates positive economic profits. Rivalry: Revenues are extremely concentrated in this industry, with Coke and Pepsi, together with their associated bottlers, commanding 73% of the case market in 1994. Adding in the next tier of soft drink companies, the top six controlled 89% of the market. In fact, one could characterize the soft drink market as an oligopoly, or even a duopoly between Coke and Pepsi, resulting in positive economic profits. To be sure, there was tough competition between Coke and Pepsi for market share, and this occasionally hampered profitability. For example, price wars resulted in weak brand loyalty and eroded margins for both companies in the 1980s. We will write a custom essay sample on Why Is the Soft Drink Industry so Profitable? specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Why Is the Soft Drink Industry so Profitable? specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Why Is the Soft Drink Industry so Profitable? specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The Pepsi Challenge, meanwhile, affected market share without hampering per case profitability, as Pepsi was able to compete on attributes other than price. Substitutes: Through the early 1960s, soft drinks were synonymous with â€Å"colas† in the mind of consumers. Over time, however, other beverages, from bottled water to teas, became more popular, especially in the 1980s and 1990s. Coke and Pepsi responded by expanding their offerings, through alliances (e. g. Coke and Nestea), acquisitions (e. g. Coke and Minute Maid), and internal product innovation (e. g. Pepsi creating Orange Slice), capturing the value of increasingly popular substitutes internally. Proliferation in the number of brands did threaten the profitability of bottlers through 1986, as they more frequent line set-ups, increased capital investment, and development of special management skills for more complex manufacturing operations and distribution. Bottlers were able to overcome these operational challenges through consolidation to achieve economies of scale. Overall, because of the CPs efforts in diversification, however, substitutes became less of a threat. Power of Suppliers: The inputs for Coke and Pepsi’s products were primarily sugar and packaging. Sugar could be purchased from many sources on the open market, and if sugar became too expensive, the firms could easily switch to corn syrup, as they did in the early 1980s. So suppliers of nutritive sweeteners did not have much bargaining power against Coke, Pepsi, or their bottlers. NutraSweet, meanwhile, had recently come off patent in 1992, and the soft drink industry gained another supplier, Holland Sweetener, which reduced Searle’s bargaining power and lowering the price of aspartame. With an abundant supply of inexpensive aluminum in the early 1990s and several can companies competing for contracts with bottlers, can suppliers had very little supplier power. Furthermore, Coke and Pepsi effectively further reduced the supplier of can makers by negotiating on behalf of their bottlers, thereby reducing the number of major contracts available to two. With more than two companies vying for these contracts, Coke and Pepsi were able to negotiate extremely favorable agreements. In the plastic bottle business, again there were more suppliers than major contracts, so direct negotiation by the CPs was again effective at reducing supplier power. Power of buyers: The soft drink industry sold to consumers through five principal channels: food stores, convenience and gas, fountain, vending, and mass merchandisers (primary part of â€Å"Other† in â€Å"Cola Wars†¦Ã¢â‚¬  case). Supermarkets, the principal customer for soft drink makers, were a highly fragmented industry. The stores counted on soft drinks to generate consumer traffic, so they needed Coke and Pepsi products. But due to their tremendous degree of fragmentation (the biggest chain made up 6% of food retail sales, and the largest chains controlled up to 25% of a region), these stores did not have much bargaining power. Their only power was control over premium shelf space, which could be allocated to Coke or Pepsi products. This power did give them some control over soft drink profitability. Furthermore, consumers expected to pay less through this channel, so prices were lower, resulting in somewhat lower profitability. National mass merchandising chains such as Wal-Mart, on the other hand, had much more bargaining power. While these stores did carry both Coke and Pepsi products, they could negotiate more effectively due to their scale and the magnitude of their contracts. For this reason, the mass merchandiser channel was relatively less profitable for soft drink makers. The least profitable channel for soft drinks, however, was fountain sales. Profitability at these locations was so abysmal for Coke and Pepsi that they considered this channel â€Å"paid sampling. † This was because buyers at major fast food chains only needed to stock the products of one manufacturer, so they could negotiate for optimal pricing. Coke and Pepsi found these channels important, however, as an avenue to build brand recognition and loyalty, so they invested in the fountain equipment and cups that were used to serve their products at these outlets. As a result, while Coke and Pepsi gained only 5% margins, fast food chains made 75% gross margin on fountain drinks. Vending, meanwhile, was the most profitable channel for the soft drink industry. Essentially there were no buyers to bargain with at these locations, where Coke and Pepsi bottlers could sell directly to consumers through machines owned by bottlers. Property owners were paid a sales commission on Coke and Pepsi products sold through machines on their property, so their incentives were properly aligned with those of the soft drink makers, and prices remained high. The customer in this case was the consumer, who was generally limited on thirst quenching alternatives. The final channel to consider is convenience stores and gas stations. If Mobil or Seven-Eleven were to negotiate on behalf of its stations, it would be able to exert significant buyer power in transactions with 3 Coke and Pepsi. Apparently, though, this was not the nature of the relationship between soft drink producers and this channel, where bottlers’ profits were relatively high, at $0. 40 per case, in 1993. With this high profitability, it seems likely that Coke and Pepsi bottlers negotiated directly with convenience store and gas station owners. So the only buyers with dominant power were fast food outlets. Although these outlets captured most of the soft drink profitability in their channel, they accounted for less than 20% of total soft drink sales. Through other markets, however, the industry enjoyed substantial profitability because of limited buyer power. Barriers to Entry: It would be nearly impossible for either a new CP or a new bottler to enter the industry. New CPs would need to overcome the tremendous marketing muscle and market presence of Coke, Pepsi, and a few others, who had established brand names that were as much as a century old. Through their DSD practices, these companies had intimate relationships with their retail channels and would be able to defend their positions effectively through discounting or other tactics. So, although the CP industry is not very capital intensive, other barriers would prevent entry. Entering bottling, meanwhile, would require substantial capital investment, which would deter entry. Further complicating entry into this market, existing bottlers had exclusive territories in which to distribute their products. Regulatory approval of intrabrand exclusive territories, via the Soft Drink Interbrand Competition Act of 1980, ratified this strategy, making it impossible for new bottlers to get started in any region where an existing bottler operated, which included every significant market in the US. In conclusion, an industry analysis by Porter’s Five Forces reveals that the soft drink industry in 1994 was favorable for positive economic profitability, as evidenced in companies’ financial outcomes. Compare the economics of the concentrate business to the bottling business. Why is the profitability so different? In some ways, the economics of the concentrate business and the bottling business should be inextricably linked. The CPs negotiate on behalf of their suppliers, and they are ultimately dependent on the same customers. Even in the case of materials, such as aspartame, that are incorporated directly into concentrates, CPs pass along any negotiated savings directly to their bottlers. Yet the industries are quite different in terms of profitability. The fundamental difference between CPs and bottlers is added value. The biggest source of added value for CPs is their proprietary, branded products. Coke has protected its recipe for over a hundred years as a trade secret, and has gone to great lengths to prevent others from learning its cola formula. The company even left a billion-person market (India) to avoid revealing this information. As a result of extended histories and successful advertising efforts, Coke and Pepsi are respected household names, giving their products an aura of value that cannot be easily replicated. Also hard to replicate are Coke and Pepsi’s sophisticated strategic and operational management practices, another source of added value. Bottlers have significantly less added value. Unlike their CP counterparts, they do not have branded products or unique formulas. Their added value stems from their relationships with CPs and with their 4 customers. They have repeatedly negotiated contracts with their customers, with whom they work on an ongoing basis, and whose idiosyncratic needs are familiar to them. Through long-term, in depth relationships with their customers, they are able to serve customers effectively. Through DSD programs, they lower their customers’ costs, making it possible for their customers to purchase and sell more product. In this way, bottlers are able to grow the pie of the soft drink market. Their other source of profitability is their contract relationships with CPs, which grant them exclusive territories and share some cost savings. Exclusive territories prevent intrabrand competition, creating oligopolies at the bottler level, which reduce rivalry and allow profits. To further build â€Å"glass houses,† as described by Nalebuff and Brandenberger (Co-opetition, p. 88), for their bottlers, CPs pass along some of their negotiated supply savings to their bottlers. Coke gives 2/3 of negotiated aspartame savings to its bottlers by contract, and Pepsi does this in practice. This practice keeps bottlers comfortable enough, so that they are unlikely to challenge their contracts. Bottlers’ principal ability is to use their capital resources effectively. Such operational effectiveness is not a driver of added value, however, as operational effectiveness is easily replicated. Between 1986 and 1993, the differences in added value between CPs and bottlers resulted in a major shift in profitability within the industry. Exhibit 1 demonstrates these dramatic changes. While industry profitability increased by 11%, CP profits rose by 130% on a per case basis, from $0. 10 to $0. 23. During this period, bottler profits actually dropped on a per case basis by 23%, from $0. 5 to 0. 27. One possibility is that product line expansion in defense against new age beverages helped CPs but hurt bottlers. This would be expected if bottler’s per case costs increased due to the operational challenges and capital costs of producing and distributing broader product lines. This, however, was not the case; cost of sales per case decreased for both CPs and bottlers by 27% during this period, mostly due to economies of scale developed through consolidation. The real difference between the fortunes of CPs and bottlers through this period, then, is in top line revenues. While CPs were able to charge more for their products, bottlers faced price pressure, resulting in lower revenues per case. These per case revenue changes occurred during a period of slowing growth in the industry, as shown in Exhibit 2. Growth in per capita consumption of soft drinks slowed to a 1. 2% CAGR in the period 1989 to 1993, while case volume growth tapered to 2. 3%. In an struggle to secure limited shelf space with more products and slower overall growth, bottlers were probably forced to give up more margin on their products. CPs, meanwhile, could continue increasing the prices for their concentrates with the consumer price index. Coke had negotiated this flexibility into its Master Bottling Contact in 1986, and Pepsi had worked price increases based on the CPI into its bottling contracts. So, while the bottlers faced increasing price pressure in a slowing market, CPs could continue raising their prices. Despite improvements in per case costs, bottlers could not improve their profitability as a percent of total sales. As a result, through the period of 1986 to 1993, bottlers did not gain any of the profitability gains enjoyed by CPs. Why have contracts between CPs and bottlers taken the form they have in the soft drink industry? Contracts between CPs and bottlers were strategically constructed by the CPs. Although beneficial to bottlers on the surface, the contracts favored the CPs’ long-term strategies in important ways. First, territorial exclusivity is beneficial to bottlers, as it prevents intrabrand competition, ensures bargaining power over buyers and establishes barriers to entry. But it is also beneficial to CPs, who are also not subject to price wars within their own brand. The contracts also excluded bottlers from producing the flagship products of competitors. This created monopoly status for the CPs, from the bottler perspective. Each bottler could only negotiate with one supplier for its premium product. Violation of this stipulation would result in termination of the contract, which would leave the bottler in a difficult position. Historically, contracts were designed hold syrup prices constant into perpetuity, only influenced by rising prices of sugar. This changed in 1978 and 1986, as contracts were renegotiated, first to accommodate for rises in the CPI, and then to give general flexibility to the CP (Coke) in setting prices. Coke could negotiate this more flexible pricing because its bottlers were dependent on it for business. It further ensured that its bottlers would be captive to its monopoly status by buying major bottlers and then selling them into the CCE holding company, which would only produce Coke products. Coke would capture 49% of the dividends from CCE, without the complications of vertical integration. Should concentrate producers vertically integrate into bottling? Given the data in Exhibit 1, indicating the CP business has grown more profitable over the last seven years, while the bottling industry has struggled to retain any profitability, it would not be advisable to vertically integrate. Stuckey and White (p. 8) indicate that a firm should â€Å"Integrate into those stages of the industry chain where the most economic surplus is available, irrespective of closeness to the customer or the absolute size of the value added. † In the soft drink industry, CPs generally miss out on the profits earned through fountain sales. Pepsi, realizing that fast food chains were capturing most of the value of fountain sales, entered the fast food business by purchasing Taco Bell, Pizza Hut, and KFC. These mergers allowed the firm to capture more value from its soft drink sales, but these mergers could also be problematic. For example, PepsiCo might not have a core competency in food sales or a strong position in the industry. Because it might not be able to effectively transfer skills or share activities with its fast food businesses, the mergers might not be successful in the long run. Stuckey and White also point out that â€Å"high-surplus stages must, by definition, be protected by barriers to entry. † So it could be difficult for Coke to enter the fast food business. It could be prohibitively expensive to purchase McDonalds or Burger King, and developing a chain of its own against such formidable competition would be extremely risky. So integration into this phase of the value chain would be difficult or impossible for Coke. As Stuckey and White say, â€Å"don’t vertically integrate unless it is absolutely necessary to create or protect value. † We shall address each of these individually to formally refute the plausibility of vertical integration of CPs into bottling. (1) â€Å"The market is too risky and unreliable. † On the contrary, the concentrate market is highly stable and will be for a long time to come. (2) â€Å"Companies in adjacent stages of the industry 6 chain have more market power than companies in your stage. The opposite is true, CPs already have more market power than bottlers, so they should not vertically integrate. (3) â€Å"Integration would create or exploit market power by raising barriers to entry or allowing price discrimination across customer segments. † In fact, CPs already have market power through efficient barriers to entry, and effectively price discriminate through various retail channels. (4) â€Å"The market is young and the company must forward integrate to develop a market, or the market is declining and independents are pulling out of adjacent stages. † The market is neither young nor declining. Having determined that a vertical integration strategy fails all four of Stuckey and White’s tests, CPs should not pursue vertical integration into bottling.

Saturday, March 21, 2020

Find Out More About Global Warming Causes

Find Out More About Global Warming Causes The Consequences of Warming World One of the main causes of global warming is an existence of the exceeded amount of carbon dioxide in the atmosphere. The accumulation of carbon dioxide in the atmosphere is connected to such human activities as burning oils, gas, cutting down the forests, etc. As a result, CO2 creates and performs a function of a blanket that covers out planet. It leads to the fact that the average temperature rises, which causes different negative effects on the natural processes. Global Warming Can Be Dealt With! Based on different climate change facts, global warming effects can be reduced. As it has been mentioned before, the main reason of global warming is intensive CO2 emissions, which are not likely to be reduced in the nearest future due to the human dependence on such natural resources as oil, gas, coal, etc. As a result, there is an urgent need for developing alternative sources of energy, which will reduce CO2 emissions into the atmosphere. In other case, global warming may have diverse negative effects not only on people living today but also on future generations. The issue has been widely discussed and there are numerous debates regarding the issue of a warming world. However, it has become obvious that people can reduce the negative outcomes of this threat! First of all, the level of emissions should be sufficiently reduced. Moreover, it should be done as soon as possible not to let the things get worse. The more people hesitate in taking necessary measures, the most costly it w ill be in the future. Warming World Consequences The researchers provide shocking facts regarding global warming. The last 10 years were the hottest years in the history of the mankind, which is quite disturbing. The average temperature has increased by 0.7C (1F) globally over the last century. Though it may not seem sufficient, such a temperature change causes numerous problems for all living things on the planet. The statistics show that the number of hot days in year increase drastically, while the number of cold days and nights reduces. The other negative consequences of global warming include the increased sea level, more often droughts, storms, snow pattern,s to name just a few. Actions to Be Taken to Reduce the Warming World Negative Effects It is extremely important to ordain specific laws to mitigate the threat. However, not only states governments are responsible for the effects of global warming. Every person can add to solving one of the greatest problems of the modern world. The level of carbon dioxide emissions differs from community to community, making it a problem of every region. Sometimes, it is a decision of the community members but not a state law that greatly contributes to the reduction of such emissions. For example, there are regions where people refuse from the common means of transportation in favor of energy-saving transport, etc. So, global warming is a problem of every individual and it is our common task to overcome this threat!

Find Out More About Global Warming Causes

Find Out More About Global Warming Causes The Consequences of Warming World One of the main causes of global warming is an existence of the exceeded amount of carbon dioxide in the atmosphere. The accumulation of carbon dioxide in the atmosphere is connected to such human activities as burning oils, gas, cutting down the forests, etc. As a result, CO2 creates and performs a function of a blanket that covers out planet. It leads to the fact that the average temperature rises, which causes different negative effects on the natural processes. Global Warming Can Be Dealt With! Based on different climate change facts, global warming effects can be reduced. As it has been mentioned before, the main reason of global warming is intensive CO2 emissions, which are not likely to be reduced in the nearest future due to the human dependence on such natural resources as oil, gas, coal, etc. As a result, there is an urgent need for developing alternative sources of energy, which will reduce CO2 emissions into the atmosphere. In other case, global warming may have diverse negative effects not only on people living today but also on future generations. The issue has been widely discussed and there are numerous debates regarding the issue of a warming world. However, it has become obvious that people can reduce the negative outcomes of this threat! First of all, the level of emissions should be sufficiently reduced. Moreover, it should be done as soon as possible not to let the things get worse. The more people hesitate in taking necessary measures, the most costly it w ill be in the future. Warming World Consequences The researchers provide shocking facts regarding global warming. The last 10 years were the hottest years in the history of the mankind, which is quite disturbing. The average temperature has increased by 0.7C (1F) globally over the last century. Though it may not seem sufficient, such a temperature change causes numerous problems for all living things on the planet. The statistics show that the number of hot days in year increase drastically, while the number of cold days and nights reduces. The other negative consequences of global warming include the increased sea level, more often droughts, storms, snow pattern,s to name just a few. Actions to Be Taken to Reduce the Warming World Negative Effects It is extremely important to ordain specific laws to mitigate the threat. However, not only states governments are responsible for the effects of global warming. Every person can add to solving one of the greatest problems of the modern world. The level of carbon dioxide emissions differs from community to community, making it a problem of every region. Sometimes, it is a decision of the community members but not a state law that greatly contributes to the reduction of such emissions. For example, there are regions where people refuse from the common means of transportation in favor of energy-saving transport, etc. So, global warming is a problem of every individual and it is our common task to overcome this threat!

Find Out More About Global Warming Causes

Find Out More About Global Warming Causes The Consequences of Warming World One of the main causes of global warming is an existence of the exceeded amount of carbon dioxide in the atmosphere. The accumulation of carbon dioxide in the atmosphere is connected to such human activities as burning oils, gas, cutting down the forests, etc. As a result, CO2 creates and performs a function of a blanket that covers out planet. It leads to the fact that the average temperature rises, which causes different negative effects on the natural processes. Global Warming Can Be Dealt With! Based on different climate change facts, global warming effects can be reduced. As it has been mentioned before, the main reason of global warming is intensive CO2 emissions, which are not likely to be reduced in the nearest future due to the human dependence on such natural resources as oil, gas, coal, etc. As a result, there is an urgent need for developing alternative sources of energy, which will reduce CO2 emissions into the atmosphere. In other case, global warming may have diverse negative effects not only on people living today but also on future generations. The issue has been widely discussed and there are numerous debates regarding the issue of a warming world. However, it has become obvious that people can reduce the negative outcomes of this threat! First of all, the level of emissions should be sufficiently reduced. Moreover, it should be done as soon as possible not to let the things get worse. The more people hesitate in taking necessary measures, the most costly it w ill be in the future. Warming World Consequences The researchers provide shocking facts regarding global warming. The last 10 years were the hottest years in the history of the mankind, which is quite disturbing. The average temperature has increased by 0.7C (1F) globally over the last century. Though it may not seem sufficient, such a temperature change causes numerous problems for all living things on the planet. The statistics show that the number of hot days in year increase drastically, while the number of cold days and nights reduces. The other negative consequences of global warming include the increased sea level, more often droughts, storms, snow pattern,s to name just a few. Actions to Be Taken to Reduce the Warming World Negative Effects It is extremely important to ordain specific laws to mitigate the threat. However, not only states governments are responsible for the effects of global warming. Every person can add to solving one of the greatest problems of the modern world. The level of carbon dioxide emissions differs from community to community, making it a problem of every region. Sometimes, it is a decision of the community members but not a state law that greatly contributes to the reduction of such emissions. For example, there are regions where people refuse from the common means of transportation in favor of energy-saving transport, etc. So, global warming is a problem of every individual and it is our common task to overcome this threat!