The Day Chocolate Case Report Essay Example for Free

The Day Chocolate Case Report Essay Introduction The following report discusses the company named the Day Chocolate company. In this report we will take a close look to the case of this company. The Day Chocolate company is different than other chocolate companies as it pays attention to the ones that are making the chocolate: the farmers. The day chocolate company buys all cocoa at Fair trade prices, which means that the farmers receive a guaranteed minimum price for their cocoa. One of the goals of the company is to bring Fair-trade chocolate into the mainstream market but also to produce this chocolate for an affordable price and with a high quality. In this days customers are paying more and more attention to the wellness of the farmers. The day chocolate company is responding well to this need of the consumers. By taking a substantial market share, and paying fare prices to the farmers, often living of just a few dollars a week or even less, they try to help the farmers. The origin of the day chocolate company lies in the United Kingdom. In 1997, together with NGO Twin Trading and The Body Shop, Kupua Kooko sets up the day chocolate company. By introducing the Divine Fair trade milk chocolate bar into the UK confectionary market, the first farmer owned Fair trade chocolate bar is available for the consumer. In a short time the company gained a considerable market share. In the upcoming chapters we will explain why this Fair-trade chocolate was such a success. The source of this success can be found by looking at the segment that Divine is operating in and looking at the trends in this segment. But we are also researching how Devine became such a strong brand and we are taking a close look at the strengths, weaknesses, opportunities and threats of the company. Furthermore we are going to investigate the opportunities the Day Chocolate company has to expand their business across the domestic borders, here we will also search for the country which is most appropriate for the Day Chocolate company to settle. ? Consumer segment Day chocolate company To make a company more compatible you first have to decide who or what type of customer the company will serve. The best way to do this is to divide the market into segments of consumers, a process called market segmentation. After this is done, it is important to make the decision on which segments the company is going to focus. The day chocolate company is focusing on two main target groups. For each of these target groups they developed a brand, Devine and Dubble. The first target group the day chocolate company is focusing on is a group called ‘concerned consumers’. The consumers who fall into this group are paying extra attention to the environment and human rights. Therefore Fair trade products are developed to serve the needs of this type of consumers. The day chocolate company developed a Fair trade brand for this group, called ‘Devine’. In 1998 the company launched the Fair Trade chocolate bar on the market in the UK. The day chocolate company was one of the first companies to launch a Fair Trade chocolate bar. The price of this chocolate bar is slightly higher than the price of a normal chocolate bar, as the day chocolate company is paying the farmers a fair price for their cocoa. But the consumer finds human rights that important, that they are willing to pay that little extra for their chocolate. A third of all UK consumers have now recognized the Fair trade mark. The second target group the day chocolate company decided to focus on is children. In the beginning of 2000, the company announced a competition where children could come up with a new Fair trade chocolate brand, which would be especially developed for children. In October 2000 the brand Dubble was launched. Dubble is a crunchy Fair trade chocolate bar available for a lower price, this way children can buy the chocolate bar themselves. The day chocolate company also developed a website which is easily accessible for children, they can play games on it and read about Fair trade products. The brands Devine and Dubble are becoming more and more popular. They are for sale in all the top supermarkets in the United Kingdom. But the company also supplies chocolate for own label products in the Co-op and Starbucks. Up till now, the day chocolate company only sold its products within the UK and the USA Day chocolates strengths and weaknesses. Competitive advantage. A very influential factor for future success of the company as well as for the products it is selling it is called a competitive advantage. The competitive advantage can result either from cost advantage, pricing your product lower than that of other companies, or differentiation advantage, having a unique or a better quality product than other companies. Divine chocolate targets the second category, making use the differentiation advantage. Divine Chocolate is the first ever Fair-trade chocolate bar aimed at the mass market’ according to their own statement. The fair trade logo is what makes them stand out from other chocolate companies. By being widely available and well-priced, they make fare trade chocolate available for an ever/always growing public. Strengths and weaknesses One of the biggest strengths of how the Divine chocolate company handles their business is how they approach fair-trade. Besides paying $1600 per tonne of cacao, with the world price being as low as a $1000 per tonne, Divine pays a social premium of $150 dollars per tonne. This premium is being invested in local social projects, sustainable development of the area and better farming. This increases the wellbeing of the cacao planters, but also has a positive influence on Divine Chocolate. By investing in farming and social development, the cacao will be of higher quality. This approach also creates positive publicity for the company, and gives the buyers the feeling that they add to the wellbeing and development of cacao farmers and third world countries in general. An other strength of Divine Chocolate is their availability. By being the one of the biggest, Divine creates economies of scale. Because of this, the company can market chocolate for a lower price, making the company’s products available and affordable to more customers. Also, by being sold in places such as Starbucks, which has a very positive and well-known brand image, and being backed by charity organizations, Divine chocolate has become a reliable and well-known brand. Moving forward to threats and weaknesses the Day Company has a vulnerable reputation by selling the company’s products to very critic customers. The company should pay a lot of attention to whether the farmers are still receiving a fair price, and pay attention to their overall wellbeing. Next to this, they rely heavily on cacao supplies from Ghana, a country that is not situated in the most stable of regions, with civil wars and economic instabilities in the surrounding countries. If there are major issues to be dealt with, there is also a problem of ownership. Being owned and managed by three parties (Kuapa Kokoo, Twin Trading and Oikocredit), all having a big share in the company, it is important that they remain uniform in how to operate the company. ? Customer equity Customer equity is a way of measuring the performance of a company by customer loyalty. As Kotler and Armstrong state: ‘the total combined discounted customer lifetime values of all of the company’s customers (†¦) the more loyal the companies profitable customers, the higher the firms customer equity. The Day Chocolate is actively binding with new customers and keeping in touch with them through social media like twitter and Facebook. They also have an annual poetry contest. By doing this, they become a lifestyle brand, and increase their customer equity Marketing mix The marketing mix is a theory based on four P’s, Product, Price, Place and Promotion. The product of Day Chocolate is, obviously, chocolate. They sell many different flavors of chocolate and special Christmas and Eastern products. All of these products have a fair-trade trademark, which means that Day Chocolate has paid a fair price for the cacao. The price of a Divine Chocolate bar starts at around 75p for a 45 gram milk chocolate bar. This price is about the same as comparable with other fair-trade products in the market. The price is significantly higher than non-fair-trade products. Divine Chocolate also sells gift baskets on their own site, running from 10 to 40 pounds. The raw product, cacao beans, is imported from Ghana. Those beans are then shipped to America and the UK, where the cacao is turned into chocolate. Most of the sales of the finished chocolate bars is in the domestic UK market. The products are sold in all the large retailers and Starbucks. Co-op sells the Chocolate under their own label. The product gets promoted in many ways. Day Chocolate gets a lot of free publicity by simply being a fair-trade product. The positive things they do for the Ghanaian farmers have caused a lot of good, and free, publicity. Next to this, there is an annual poetry contest. Day Chocolate also advertises and samples new products to familiarize the public with there products. And last, Twitter and Facebook are extensively used to keep in touch with customers. Chocolate market trends In order to better understand the confectionary industry and mostly the chocolate market it is important that we take into consideration the general chocolate market trends from a few different national markets as well as from the global chocolate market. In the end of this section, chocolate market threats and opportunities will be examined in order to help build on the final section of this report, namely market expansion. Starting with USA, where Divine is present since 2006 only as a wholesaler, the following market trends have been distinguished: †¢Even with recession slowing down markets, chocolate sales have increased by 3% reaching 17$ bil in 2009. It is expected that the U. S. chocolate market will exceed 19$ bil in 2014. †¢Americans appreciate more the experience provided by chocolate than the simple consumption of it, chocolatiers making innovation one of their main goals. †¢Chocolate is seen as an affordable indulgence by the American consumers. Moving forward to the UK, where Divine satisfies customer taste for chocolate since 1997, similar market trends are recognized: †¢Chocolate represents the top snack choice for UK consumers and it is bought by 50% of the population †¢Consumer’s level of concernment regarding the provenience of the cocoa and company’s ethics has increased †¢The more affluent middle-class parents avoid buying chocolate for their children †¢UK chocolate consumers tend to buy a chocolate flavor for longer periods of time than trying new ones †¢About 40% of the consumers buy less chocolate for health reasons. When talking about the global chocolate market that seems to be growing steadily, m.uch of the growth is attributed to developing regions such as Eastern Europe, Russia, China and India. Moreover, India is suggested as turning out to be the most lucrative place of investment into the chocolate market by 2014. In the already developed world, the growth comes from product differentiation, niche sectors and Fairtrade products. Firms from the chocolate industry understand how much innovation counts for sustainability and huge investments are made to innovate chocolate products. Another interesting trend is represented by the per capita consumption of chocolate that tends to be slightly higher in Nordic and Scandinavian Countries than in other European countries. Opportunities Threats It seems that most of the opportunities and threats that the chocolate market is confronted with have much to do with consumer perception of the product. Firstly, regarding opportunities, for some consumers chocolate represents the ultimate comfort food, even being considered in different studies that chocolate works as an aphrodisiac or can be helpful against depression. Another opportunity is represented by the meaning of chocolate when it is offered as a gift. Many anniversaries, holidays, birthdays act as opportunities for chocolate to be bought and given as a gift. Secondly, moving to threats, chocolate is seen by some potential consumers as being unhealthy by making them gain weight and their children have an anxious behavior. Moreover, consumers question the ethics of the firm producing chocolate and provenience of the cocoa beans. ? Day Chocolate marketing recommendation. After discussing Day Chocolate brand’s strength and weaknesses, market opportunities and threats, it is conclusive that Day Chocolate has a bright future ahead by continuing to deliver satisfaction to its consumers through same products, but opportunities of becoming even more successful should not be overlooked. Firstly, the consumer is becoming more aware of the properties of the product, from the cocoa beans used for making the chocolate to the nutrition figures on the back of the wrapping and to the impact the buying of a chocolate bar, for example, would have on the land of provenience of the beans. Day Chocolate gives the consumer the opportunity of participating to developing of such areas as Ghana with the help of Fairtrade demonstrating that the company understands consumer concerns. By continuing to provide a means of consumer participation to Fairtrade and development of third world countries, Day Chocolate will definitely satisfy the niche of concerned consumers. Secondly, regarding the consumers concerned with the health issue of chocolate, Day Chocolate could easily promote a dark chocolate or a rice chocolate product relating it to the health benefits these types of chocolate present. This way the consumers will feel even more that their concerns are listened to and cared for, Day Chocolate improving customer relationship. Thirdly, when talking about the countries that present a considerable market increase in the latest periods of time, Russia, India, China, even Eastern Europe should be definitely considered as potential market targets and further research should be undertaken in order to see how profitable it would be to expand into one or more of these markets. Moreover, many economists argue that India will prove to be the most lucrative chocolate market by 2014. The matter of distance, cultural as well as psychic should not be overlooked when considering the markets mentioned above, even if the numbers are presenting tempting opportunities for Day Chocolate. The company did not expand so many times that necessary experience could be attributed to the firm’s advantages, a factor that makes us look for expansion to a closer, culturally as well as geographically, area in Europe. Moreover, when considering expansion as an alternative, significant data show that Scandinavian countries Germany have a great chocolate market that is growing annually. In conclusion, the Day Chocolate company’s products offer great satisfaction for consumers concerned with fair trading and give them the opportunity of participating to the development of the lands of provenience for the cocoa beans. For consumers concerned with health issues new, health focused products could be marketed. After considering new products, new markets have also been considered. Alternatives are present both in Europe as well as outside Europe, but only the ones closer to the home market would make most economical and managerial sense. Expansion. In the past years since the founding of the Devine Chocolate, the company has shown to be successful, obtaining a large market share, a excellent brand image, big profits, good business strategy, and the company’s success is still growing. The company has a good market position and it is not likely to be having large problems in the short term, as well as long term orientation. However, it is wise to keep on searching for opportunities to become even more successful in the future. Therefore a tempting and logical step would be to expand the company’s business across the domestic market borders. To make the expansion a success, the risk of failure should be low. Therefore the market should behave similar to the English chocolate market so that cultural distance does not represent too much of an impediment. Day Chocolate needs to search for such a market because the key of the company’s success is the fact that the English chocolate market consists of a large market for luxury chocolate and product awareness such as the Fair-Trade. Besides that, the flavor of the chocolate was adapted to the taste of the English consumers. This means looking for a market where consumers are willing to pay a relatively high price for luxury chocolate products, and have high product awareness. Studies by the International Cocoa Organization (ICCO) have shown that the most chocolate is consumed by the north-western European countries and the Scandinavian countries. Below you find a list of the 15 countries with the highest chocolate consumption per person in 2005. Germany †¦ 11. 12 kilograms of chocolate per person (up 7. 8% from 2002), Belgium †¦ 11. 03 kgs (up 24. 2%), Switzerland †¦ 10. 74 kgs (down 1. 7%), United Kingdom †¦ 10. 22 kgs (up 2%), Austria †¦ 9. 43 kgs (up 18. 3%), Norway †¦ 8. 53 kgs (up 3. 1%), Denmark †¦ 7. 74 kgs (down 16. 3%), France †¦ 6. 78 kgs (down 2. 6%), Finland †¦ 6. 77 kgs (up 3. 7%), Sweden †¦ 6. 76 kgs (down 17. 1%), United States †¦ 5. 58 kgs (up 4. 1%), Australia †¦ 5. 31 kgs (up 22. 1%), Italy †¦ 4. 26 kgs (up 8. 1%), Canada †¦ 3. 90 kgs (no change), Poland †¦ 3. 67 kgs (up 11. 2%). The United States is the biggest chocolate market worldwide, however the facts mentioned above shows us that the consumption per person is very low. Besides the average consumption, we should keep in mind that this is the very first expansion of the company. It would not be wise to start expanding in the largest market in the world as the first expansion. The same goes for Russia, China and India. Those markets have very high potential but just like the U. S. Expanding to one of these countries has a very high risk because huge investments will be needed and when the expansion turns out the be unsuccessful the results will be far more dramatic than in case of an expansion in a smaller country, in northern Europe for instance. Besides those risk and consumption reasons, expanding in northern Europe first would be wise because those markets are similar in customer taste to the U. K. market. The northern European countries have a strong and stable economy so the consumers are willing to pay more for a better product. Furthermore, these consumers generally have a high level of products awareness, Day Chocolate would definitely benefit from this because of its brand image and Fair-Trade label. Next to the market significance, also the cultures are not very different. According to the cultural dimensions study by Geert Hofstede the cultural difference between for instance, the U. K. and Germany, is very low. Thanks to this low level of cultural distance it is easier for the company to sell the products, because advertising campaigns do not have to be totally different, and overall procedures will be smoother than in a country with a totally different culture. This also stimulates to expand in northern European countries because the chance of success is proven to be high, thanks to both cultural, as well as market significance. Looking at the taste of the consumers, expanding in Northern Europe would also be a good thing to do because the general taste of the consumers turns out to look very much the same as the taste of the U. K. consumers according to a study by the ICCO. When choosing one single country to be the first one to expand to, we would advice to start in Germany. There are several reasons why Germany would be a good country to start with. First of all, the German consumers are wealthy and are willing to pay extra money for better quality products and have a high level of product awareness. Next to that, the taste of the German consumers corresponds a lot to the U. K. consumer taste. Furthermore, there is a very low level of cultural distance, which makes it easier to market the products. Finally, German chocolate market is the biggest of Europe, however it is not too big for Devine Chocolate to expand to this country because it is not much bigger than the English one. And this expansion will succeed other northern European countries would be very easy to expand to. All these reason make us conclude that German is the ideal country to expand towards. ? Conclusion When looking back at all the different components of the company that we have examined there are several conclusions than can be drawn. First of all there are two well indentified target groups which the Day Chocolate company is aiming at. In the case of Devine chocolate it are ‘concerned’ consumers who are willing to pay more for a better product and have a high level of product awareness. The second target group, of Dubble, are kids. When looking at the growth of the global chocolate market and the forecasted growth of the market, the future is looking good for the Day Chocolate Company. However the number of competitors in the market segment of high-quality ‘fair’ chocolate products is going to rise in the upcoming years, therefore expansion would be a smart move. Also product diversification would be a smart move. The chocolate market suffers under the ‘health-issue’. Therefore other, healthier products need to be developed. The brand image of the company is excellent at the moment, but in the future large numbers of companies are going to try to copy this. Therefore it is extremely important for Day Chocolate to keep on promoting itself as product aware company, and it should emphasize on its help towards the farmers and their local projects. The company should expand outside of the U. K. and Germany would be the most appropriate country to start with. The market is big but not too big for Day Chocolate. The consumers are willing to pay extra for good products and have a high level of product awareness and their taste is very much the same as the English taste. Furthermore, the cultural distance is low and the geographical distance is small. All these reasons make Germany an ideal country to start expanding the Day Chocolate Company outside of the U. K.

The Major Sources Of Economic Income Many Areas Of The World Tourism Essay

The Major Sources Of Economic Income Many Areas Of The World Tourism Essay Mallorca is the largest of the Balearic Island, at a size of 3,667 square Kilometres and is located off the South-east coast of Spain. The islands coastline stretches for 550 km, and has a climate of hot summers and mild winters with average temperatures reaching 21 Celsius. Mallorcas current population is just over 790,000, and the official language is either Catalan or Spanish, although due to the increasing number of tourists many young Mallorcans can speak some English and German. Tourism in Mallorca began to grow rapidly in the 1950s, with 98,000 tourists visiting the island. By 1995 almost three million tourists had visited, and by 2001 more than 19,200,000 people had visited the island by air, with another 1.5 million visiting by sea. The main attractions to Mallorca for tourists are sandy beaches, the weather, tourist infrastructure and for some, the many clubs located on the island. In total there are three million beds available on the island, which is more than enough for three times the local population. Since this huge rise in the number of tourists, tourism has become the main form of income for Mallorcans and tourism accounts for 85% of the islands income (Jackson et al 1999). The summer months is the peak season for tourists visiting the island, while during the spring, winter and autumn it is cooler and cheaper. Normally the winter caters for those with second homes on the island, and also elderly holidays. The consequences of mass, concentrated tourism in Mallorca has however led to many problems on the island. Tourists have a very negative impact on Mallorcas environment. On a field course to Mallorca in 2007, it discovered that at peak times of the year, 25 tons of sand is carried from Es Trenc beach by tourists in their towels, toes and shoes. Tourists also cause water shortages across through swimming pools, hotels and golf courses. Tourists also tend to shower a lot more often than the host population. This is very damaging for Mallorca as water then has to be shipped in from main land which can be very costly. Mallorca also has a lot of air pollution. Amazingly Mallorcans own the most number of cars per head in Europe. In CalviÃÆ'   alone there are eight hundred cars per thousand of the population. According to the World Tourism Organisation (WTO), seventy million cars pass through CalviÃÆ'   each year. Fifty million of these are driven by tourists. Also of course there is the amount of litter that tourists leave behind which has a major impact on the environment and wild life. However, the cost to Mallorcas environment has been blinded, at least until recently, by the great economic prosperity that tourism has brought to the island. Mallorcas economy is heavily reliant on tourism (85% of income).Tourism is an integrated and fragmented product, meaning that money from tourists goes directly to hotels, restaurants and shops. This expenditure coming from tourists can also have indirect benefits with improvements to infrastructure and community services (Mathieson et al 1992). This has been proved in Mallorca because Mallorcans enjoy some of the highest living standards in Spain. Tourism in Mallorca is also the main employer, and Mallorcas employment levels are very low because of the tourism industry and also the current housing and construction boom, to cater for more tourists. However, Mallorca has become far too reliant on tourism as its main source of income. Should the tourism industry for what ever reason collapse in Mallorca, then the economy could pot entially be devastated. With the current financial crisis, tourism has already fallen by 15% ( Unger SalÃÆ' ¨n 2009). Also with high seasonal variation, should a tourist business not be successful during the peak season (summer), then it will be very hard to survive financially through the winter months. The tourism boom in Mallorca has also led to a 30% increase in the price of land, partially due to homes being built with black money. This has forced many young Mallorcans to leave the island in search of affordable land to live on. This potentially has effects for the future of Mallorca as young people are seen as being initiative and are being forced off the island. As you can see, past and even some present tourism practices are not sustainable in Mallorca. However, since the end of the 1980s to present the regional and national government policies have worked hard to try and make tourism in Mallorca more sustainable. The WTO defines sustainable tourism as Å“meeting the needs of present tourist and host regions while protecting and enhancing the opportunity for the future  (1992). Perhaps a definition of sustainable tourism more relevant to Mallorca would be Å“Tourism should be sustained without having an effect on other activities within the area. It should not hog or displace the current economy but should complement and bolster it. It should help diversify the economy rather than replacing certain aspects of it . Can Mallorca actually achieve sustainable tourism? Since the mid 1980s, and even more so during the 1990s, government policies have been trying to make tourism in Mallorca sustainable. During the 1970s tourism in Mallorca was seen as a job creator, and the effects on the environment were ignored. The government first began to notice the problems associated with tourism during the recession in 1974. Visitor numbers were at their lowest levels since the Franco regime, and it began to show on the island (The Mallorca Tourist Board 2006). In 1983 the Balearics were given full autonomy to establish its own tourism policy, independent from Central Government in Spain. This was a major step on the road to sustainability as local government could be far more effective in distributing sustainable policies as they know what the most problematic areas are. Following autonomous government decrees came a series of policies to make Mallorca a more sustainable tourist destination. Work by Estaban Bardolet suggests that Mallorcas aims were to Å“protect the environment, limit growth, improve quality of services, infrastructure and product . These aims will be useful in order to find out how effective Mallorca has been about becoming more sustainable. To find out just how effective sustainable policy in Mallorca has been, the essay will be split into sub sections, firstly looking at ËÅ"environmental protection, then ËÅ"limiting growth and finally ËÅ"improving the quality of product. Environmental Protection The first law on protecting the environment came in 1984 with ËÅ"protecting natural areas of special interest, which limited tourism development and protected natural resources, and was followed by a law on Å“territorial planning  in 1987. The 1987 law was very important, as it was the first law put into place that regulated the construction of hotels and other buildings, which in the past had been allowed to be built almost anywhere (Middleton et al 2001). Before this law was put into place, many new constructions were built on the beach front, which severely damaged the ecology of the sand dunes. In 1988, a wetland area of approximately 2,580 ha with a perimeter of 32 km was been created at SAlbufera. It was created in to help preserve Mallorcas natural environment and animal habitats. Since then the area has been declared a ZEPA, Bird Special Protection Zone, a Biosphere and a Ramsar site. Tourists are attracted to the area to see the rare bird species, which is ironic because the area was created to stop the mass tourist development and conserve the environment in the area. This was one of the very first environmental policies introduced by local government in the Balearics, and was followed up in 1991 with the law on Å“Natural Areas  which put 33% of territory in the Balearic Islands under protection. This law proved very significant as it prevented any construction on these areas of land, and therefore preventing further damage to the natural environment. In 1997 the government expanded its 1987 policy on territorial planning to focus on more long term planning for all activities and to encourage higher quality tourism without depleting natural resources this came through work with Local Agenda 21, which will be discussed later using CalviÃÆ'   as an example. Also a Å“Law of Rural Land  was passed which put a cap on the amount of tourist villas and second homes which were allowed to be developed in rural areas. However, there was no evidence to suggest that this law lessened construction of tourist homes in rural areas and there has also been an increase in the refurbishment of old farm houses, which has further weakened the presence of agriculture in rural areas of Mallorca. In 2002, the Government of the Balearic Islands launched a tourist eco tax to help counteract the environmental problems caused by tourists. The tax amounted to an extra à ¢Ã¢â‚¬Å¡Ã‚ ¬1 per day, per adult (over 16) and would be collected by registered tourist accommodation (Middleton et al 2001). However the tax was abandoned in 2003 following a change in government. During its brief time the tax helped raise à ¢Ã¢â‚¬Å¡Ã‚ ¬25 million, which was used to help clean up Mallorcas environment (geographypages.co.uk). However the abolishment of the tax did show that the government were not fully committed to helping improve Mallorcas environment. Limiting Growth One of Mallorcas main problems as a tourist destination was its over crowdedness and frequently exceeding the carrying capacity. One of the first government policies to limit growth came in 1984 with ËÅ"Decree Cladera I. This policy demanded that 30m ² of land for individual tourist beds and that some of the land was to be used for leisure. (Batle et al 1999). Then in 1987 the ËÅ"Decree Cladera II expanded the required land to 60m ² and introduced a new minimum quality hotel standard. These policies were very successful as they limited the growth of cheap, poor quality hotels on the island. However, it can also be argued that this would simply cause a greater number of tourists to the island, because by the 1990s, people had more disposable incomes, and no longer had to look for cheap, poor quality accommodation whilst on holiday as they could now afford much better. In 1997 the Å“D  plan was introduced which highlighted the need to promote off peak tourism to the island. The Mallorcan government worked hard to advertise and promote off peak visits to the island to try and relieve some of the pressure during the summer months. The plan has been reasonably effective with more people, especially the elderly visiting the island during the winter months. However there is still far too much pressure on the islands resources during the summer to say this plan has been effective. In 1999 the Balearics Government introduced a new Tourism Law which brought together previous legislative acts. The new law stopped bed capacity for all of the Balearic Islands (Middleton et al 2001). This is very important because by decreasing, or stopping increases in the amount of tourist beds, you effectively reduce tourism growth on the island. The new law also set about limiting further development in urban areas, except for all ready approved sites. The most important act to come from this new law was to make any construction closer than 500 meters of the sea shore forbidden (in 1988 the Spanish Government had previously set it at 100 meters) (Middleton et al 2001). This again was very important as the construction of hotels and other tourist buildings along the seashore had on the past been destroying the coast line. On a fieldtrip to Mallorca in 2007 an examination of how construction had affected the ecology of sand dunes at Es Trenc took place. The sand dunes examined wer e very unhealthy, due to the fact that a hotel had been built on it at . Improving quality of product At the end of the 1980s began the International Drinking Water Supply and Sanitation Decade. In 1988 the External Support Agencies (ESAs) Collaborative Council was established to help co-ordinate water sanitation. Following the establishment of this council the Å“Global Sanitation Plan  was introduced in 1989 and was to be completed by 1997 at a cost of US$200 million (Bardolet). As a result new water sewage systems were built in Mallorca which helped keep the sea clean. The plan was very successful in keeping beaches clean as by the end of the 20th Century, fifty beaches in the Balearics had been awarded ËÅ"Blue Flag status. However the plan was not completely successful as there is a worry that the water table may have been contaminated by water that has not been recycled properly. In 1990 a plan to ËÅ"embellish tourist resorts was introduced. Over US$100 million was invested to coastal areas to make walkways, lighting and green spaces along the seaside. The plan was very successful as it made coastal areas aesthetically very attractive to tourists. However, many local people living in the sea side areas dislike it as it has made seaside areas very urbanised. In 1994 the Balearic Government introduced the Hotel Accomodation Modernisation plan. The plan stated that hotels built before 1984 were to be inspected and then renovated. The government set a deadline of completion of renovation by 1997. Any hotels which did not comply would be shut down, however by 1997 30% of hotels had not yet been finished so the deadline was extended to 1999 (Bardolet). The renovation work cost just under US$800 million. However this plan greatly improved Mallorcas tourist accommodation, as combined with other acts, the emphasis on accommodation was now on quality rather than quantity. In 1996 the ËÅ"Law on Modernisation of the Complementary Tourism Supply was introduced to run along side the previous plan of 1994 however this law was aimed at the catering sector. Again this improved the quality of product as it improved the standards of the catering industry, and there for improving the quality of experience for tourists. Case study Calvi CalviÃÆ'   has grown as a tourism resort since the 1960s and is now the second largest urban area in Mallorca after Palma. CalviÃÆ'  s economy is highly reliant on tourism, with 95% of jobs being tourist-related. Average family incomes are 130% the national average, and 105% the European average (United Nations publication 2003). However, years of mass growth has led to environmental damage, aging leisure facilities and poor quality services for tourists (AquilÃÆ' ³ 2005). CalviÃÆ'   was becoming overcrowded with its population 3,000 to 40,000 inhabitants over a short period of time (CalviÃÆ'   Local Agenda 21). The first consequences of this were seen between 1988 and 1990 when tourism fell by 20%, CalviÃÆ'   was losing its competitiveness as a tourist resort. CalviÃÆ'   had become unsustainable because damage caused to its natural environment, especially along coastal areas. The area suffered water shortages, air pollution and had problems with extensive amounts of rubbish. It also had very poor transportation links and lacked diverse employment opportunities as most of the population was employed in the tourism industry. However, biggest problem was tat CalviÃÆ'   had greatly exceeded its carrying capacity, and could no longer cope with the number of tourists visiting the area in the high season. To reinstate CalviÃÆ'   as a major tourist destination in Mallorca, local councillors along with the Spanish Ministry for Tourism developed Å“The CalviÃÆ'   Plan for Tourists Excellence  at the start of the early 1990s (CalviÃÆ'   Local Agenda 21; Bustamante 1999). The plan had three main points, clear buildings along coastal areas, promote off-peak tourist practices and to train the population in employment in the tourism industry. However the plan did have its limitations. It is argues that it did not look at the long term development of the area, and merely wanted to deal with trying to once again boost tourist areas. It was also not properly co-ordinated in terms of economic, social and environmental interaction. The failure of Å“CalviÃÆ'   Plan for Tourists Excellence  led to the adoption of CalviÃÆ'   Local Agenda 21, one of the main sustainable policy instruments to come from Rio de Janeiro in 1992 (AguilÃÆ' ³ 2005). A strategy was put forward in 1996. The main aim of this policy was long term tourism .and local sustainable development with protecting and enhancing the environment being the main objective (Molz 2004). Ten action plans were devised, and forty initiatives were put into action. This approach meant a new integrated approach to tourism between local council, national council and Non Government Organisations NGOs working together to make CalviÃÆ'   a more sustainable destination. It also allowed for resident participation, one of the key features of sustainable development (Bell et al 1999). The sustainable action plan through ËÅ"CalviÃÆ'   Local Agenda 21 has been very successful in making CalviÃÆ'   a more sustainable tourist resort and in attracting tourists back to the area. In 2000 1.6 million people visited CalviÃÆ'  , from which 86% came from abroad (CalviÃÆ'   Local Agenda 21). Conclusion In the Twenty First Century, Mallorca has developed itself into a high quality tourist resort, partly due to the efforts and policies put into place by the governments of the late 1980s and 1990s. In 2004, there were 180 hotels and agroturismos (transformed traditional Mallorcan fincas) had been built inland (Cox 2005). At first this may seem like a bad thing, as tourist developments are taking up even more land. However, this type of tourism accommodation is marketed to the eco-friendly tourist, who cares about their own impact on the tourist destination. This type of tourism is also of a very high quality, and also limits growth and overcrowding as the carrying capacity of these resorts is low. However, being so far inland the tourist is more likely to use a car to get to other areas because they are not in walking distance. This type of tourism is much more sustainable than the traditional sun, sea and sand holidays that had previously been associated with Mallorca. Mallorca has now emerged as a high quality tourist destination, challenging the traditional views of a bargain holiday destination. Mallorca now boasts five-star resorts, luxury hotels and very high quality restaurants. The service industry has also gained from higher class tourism, especially catering. In 2006 Mallorca had six Michelin- starred restaurants (businessweek.com 2006). However, Mallorca still suffers from the stereotypical idea that the island is a cheap holiday destination offering beaches and cheap drink. Some government policies such as the eco-tax have failed, while others have not done enough to tackle problems such as the environmental damage caused by years of irresponsible tourist development plans. Some policies and work from groups in the 1990s have helped Mallorca become aware that tourist practices can not continue. However, there is still much work to be done in order to make Mallorca a fully sustainable holiday destination.

The Transformation of Ishmael in Snow Falling on Cedars :: Snow Falling Cedars Essays

The Transformation of Ishmael in Snow Falling on Cedars What can be said about a novel of such luminance as Snow Falling on Cedars that has not already been said? Certainly it is a work of much vision and insight and speaks volumes about prejudice and race. The wordplay of Guterson creates a world of vivid reality-it surrounds the reader with sights, smells and a clearly defined sense of touch. Perhaps lost amidst the smells of the strawberry fields, the cold of the winter storm, and the deep social statements about the nature and quirkiness of prejudice is the fact that this beautifully crafted story of immense complexity is in reality a very simple story about the identity of one man. Guterson himself says, "Post-modernism is dead because it didn't address human needs. The conventional story endures because it does. I'm interested in themes that endure from generation to generation" (qtd. in Kanner). This book is a conventional story, a simple story about the internal battle of Ishmael Chambers as he struggles with himself. This is made evident in the subtle and not too subtle comparisons made between Ishmael and other characters. Taking all of this into account reveals that the true theme of the book centers on the transformation of Ishmael from weak to strong. First, who is Ishmael Chambers? He is the son of a very well-respected and prominent citizen of San Piedro, Arthur Chambers. When Arthur dies, Ishmael takes over the job as the local news reporter. He is introduced into the story as a journalist in the trial of Kabuo Miyamoto and appears to remain aloof, a passive third person eye that would analyze the information impartially. In addition to being a reporter, Ishmael is also a war veteran with a missing limb as a souvenir to boot. The reader gets the feeling that Ishmael plays a small and minor role in the upcoming plot. This, however, is false. As the book gathers momentum, it becomes increasingly clear that Ishmael ties into the fabric of the outcome of the story-from the childhood and young adult romance between Hatsue and him, to the emotional scene where his arm is amputated, to the final climax where he discovers the evidence that can clear Kabuo's name, Ishmael is the crux on which the storyline hinges.

Rocketry :: science

Rocketry A rocket is a device that does not need atmospheric oxygen to burn its fuel, since it carries it’s own, either separately or in chemical combination with fuel. Rockets are propelled forward by gas or liquid being expelled backwards. Rockets work on a fundamental law of motion by Sir Isaac Newton that states, for every action there is an equal and opposite reaction. This helps explain how rockets fly on earth and in space. For example, the rocket fuel is exploded in a controlled way so that the exhaust gas or liquid is sent streaming down out the rocket nozzle and causing the rocket to accelerate up. Rockets are usually shaped like an arrow, with long and slender bodies and fins at the bottom. This shape provides stability for flying straight, and with low air resistance for flying fast. The evolution of the rocket has made it an irreplaceable tool in the exploration of space. For centuries, the ancient Chinese has used rockets for ceremonial and warfare purposes. The Chinese were the first known people to use and make rockets. Wernher Von Braun made a big advancement in rocketry during WWII when he built a rocket that was powered by ethyl alcohol and liquid oxygen. The rocket was called either A-4 or V2, and had a range of about 220 miles (350km), and a maximum height of about 162 miles (100km). This rocket was the main reason that the United States and Russia started the space exploration war. A solid propellant rockets posses more advanced fuels, designs, and functions than the early rockets, as does the Liquid fueled. Yet solid propellant rockets remain in wide spread use today, as seen in rockets including the Space Shuttle dual booster engines and the Delta series booster stages. A solid propellant is a monopropellant fuel, which is a single mixture of several chemicals. This fuel is in its solid state and has a pre-formed or molded shape. The interior shape of the core is an important factor in determining a rocket's performance. Solid fueled rockets are relatively simple rockets. This is their chief advantage, but it also has its drawbacks. Once a solid rocket is ignited it will use up all of its fuel and cannot be shut off. Another disadvantage is the danger involved in the premixed fuels of monopropellant rockets. The Saturn V moon rocket used nearly 8 million pounds of thrust requiring a high specific impulse liquid propellant.

The Failure of Artificial Intelligence Essay -- Exploratory Essays Res

The reality of AI, or artificial intelligence, is generally regarded to be a teleological fait accompli: sooner or later, they argue, computers will actually think. Of course, with the backing of many a member of MIT's Media Lab and corporate IT departments anywhere, this conclusion is unquestionable. I would here like to avoid downplaying the great strides made in recent years by computer technologists in promoting this evolutionary vision. But certain aspects of this technological revolution have, indeed, already been achieved. Parallels between current AI eschatology and the triumphs of one Clever Hans are striking both in terms of those creating the technology and that which expresses it. The story of Clever Hans is too famous to bear repeating in detail here, but one should be reminded that Hans's ability to do simple addition and subtraction was facilitated by his handler unconsciously giving him signals about how many times he should move his hoof to indicate the correct answer to the questions put to him. This behavior was reinforced when the handler gave him food for correct answers. His equine intelligence is hardly surprising just on the basis of the facts alone: similar miracles have been developed to exploit the grand smarts of pigeons, chicks, pigs - the what-have-you of the animal world - by many a diligent entrepreneur. What was extraordinary about Hans's case was that the horse's handler himself had no idea he was giving the subtle signals that led to the miraculous results. If the answer was "five" Hans's handler would inadvertently nod the correct number of times and Hans would follow suit, clomping with his hoof five times, knowing full and well that t his game of "horsey-see-horsey-do" would result in a tast... ...is cowardice. AI provides the next great frontier. With careful modeling after the old one, learning from their new environments, with the downloading of current intelligences we will be able to gain some kind of perfection. Who else but us, now, should be the creators of the next world? After all, we've done such a good job with this one. Works Cited Busch-Snell, Alexandra. "Temporal Cyberprojection Through Ultimate End-User Modeling." Studies in Contemporary Biomechanics 44 (1998): 90-120. "Learnings: a Cybervision." Proceedings in Cybernetics 4.1 (1999): 122-47. Phillipi, Phillip. The Alpha Centaurians: a Comprehensive Study. New Punswick: Knopfwurst, 2000. Smedley, Joshingua. "It's Alive, By Me." Cyberjournal/Diss. Erstwhile Institute of Technology, 2002. Squeamous, Crampillion. "Wonks in Cubeville." Progressive Work Studies 17 (2001): 10-22.

Fasb Asc Project

FASB ASC Project 1. The inventory at your company consists of computer software that the company has developed and is selling. You capitalized (rather than expensed) the cost of duplicating the software, the instruction manuals, and training material that are sold with the software. FASB ASC CITATION: Product Masters 985-330-25-1 The costs incurred for duplicating the computer software, documentation, and training materials from the  product masters  and for physically packaging the product for distribution shall be capitalized as inventory on a unit-specific basis. Answer 1:According to the FASB Codification, a completed version, ready for copying, of the computer software product, the documentation, and the training materials that are to be sold, are the property of the company. Also, the Codification states that all the costs incurred for copying the software should be capitalized rather than expensed. 2. Your company paid $2,000,000 for a 30-second commercial to be aired duri ng the SuperBowl 5 months from today. The ad has already been produced at a cost of $1,000,000. You capitalized the $2,000,000 cost of showing the ad on television rather than expensing it.FASB ASC CITATION: Communicating Advertising 720-35-25-5 Costs of communicating advertising are not incurred until the item or service has been received and shall not be reported as expenses before the item or service has been received, except as discussed in paragraph  340-20-25-2. For example: * a. The costs of television airtime shall not be reported as advertising expense before the airtime is used. Once it is used, the costs shall be expensed, unless the airtime was used for direct-response advertising activities that meet the criteria for capitalization under paragraph  340-20-25-4.Answer 2: The FASB Interpretation states that the costs of showing the ad on television should expensed, rather than capitalized unless it is direct-response advertizing. According to the FASB Interpretation 3 40-20-25-6, Criteria to Capitalize Direct-Response Advertising Costs, our example does not meet the criteria of direct-response advertising activities. For example, there are no means of getting files, coupons, response cards, or coded order forms, which would indicate the customer names and the related direct-response advertisement.Therefore, we cannot capitalize any costs relating to the communicating advertising. Furthermore, Codification guides that the advertising cost should not be reported until the service is received and used. Thus, recording the expenses five months in advance we are breaking matching principle of accounting. 3. Your company sells a product in which the â€Å"right of return† exists. The amount of future returns cannot be reasonably estimated, therefore, you do not record the sale or cost of goods sold until the return privilege has expired.FASB ASC CITATION: Sales of Product when Right of Return Exists 605-15-25-1 If an entity sells its product but gives the buyer the right to return the product, revenue from the sales transaction shall be recognized at time of sale only if all of the following conditions are met: * a. The seller's price to the buyer is substantially fixed or determinable at the date of sale. * b. The buyer has paid the seller, or the buyer is obligated to pay the seller and the obligation is not contingent on resale of the product.If the buyer does not pay at time of sale and the buyer's obligation to pay is contractually or implicitly excused until the buyer resells the product, then this condition is not met. * c. The buyer's obligation to the seller would not be changed in the event of theft or physical destruction or damage of the product. * d. The buyer acquiring the product for resale has economic substance apart from that provided by the seller. This condition relates primarily to buyers that exist on paper, that is, buyers that have little or no physical facilities or employees.It prevents entities f rom recognizing sales revenue on transactions with parties that the sellers have established primarily for the purpose of recognizing such sales revenue. * e. The seller does not have significant obligations for future performance to directly bring about resale of the product by the buyer. f. The amount of future returns can be reasonably estimated (see paragraphs  605-15-25-3 through 25-4). Because detailed record keeping for returns for each product line might be costly in some cases, this Subtopic permits reasonable aggregations and approximations of product returns.As explained in paragraph  605-15-15-2, exchanges by ultimate customers of one item for another of the same kind, quality, and price (for example, one color or size for another) are not considered returns for purposes of this Subtopic. Answer 3: According to the FASB Codification, revenue from the sale should not be recognized at the time of sale, unless all of the six following conditions are met: (1) The sellerà ¢â‚¬â„¢s price to the buyer is substantially fixed or determinable at the date of sale. (2)The buyer has paid the seller, or the buyer is obligated to pay the seller, and the obligation is not contingent on resale of the product. 3)The buyer’s obligation to the seller would not be changed in the event of theft or physical destruction or damage of the product. (4)The buyer acquiring the product for resale has economic substance apart from that provided by the seller. (5)The seller does not have significant obligations for future performance to directly bring about resale of the product by the buyer. (6)The seller can reasonably estimate the amount of future returns. Since we cannot estimate the amount of future returns in our example, condition #6 is not met.Therefore, sales revenue and cost of sales should be recognized either when the return privilege has substantially expired or if those conditions subsequently are met, whichever occurs first. 4. Your company has goods prim arily held for resale. You have been asked whether or not they are considered nonmonetary assets. FASB ASC CITATION: Monetary and Nonmonetary  Items 255-10-55-1 Paragraphs 255-10-55-1 through 55-13 of this Section provide guidance on the interpretation of paragraphs  255-10-50-50 through 50-55  for the classification of certain asset and liability items as monetary or nonmonetary.The following table illustrates the application of the definitions to common cases under typical circumstances. In other circumstances the classification should be resolved by reference to the definitions. Answer 4: The FASB Codification provides guidance on how to classify monetary and nonmonetary assets and liabilities. For typical circumstances it suggests using a classification table, and for non-typical circumstances Codification guides to refer to the definitions. To begin with, let us appeal to the definition of â€Å"inventory†.The term inventory embraces goods awaiting sale (the mercha ndise of a trading concern and the finished goods of a manufacturer), goods in the course of production (work in process), and goods to be consumed directly or indirectly in production (raw materials and supplies). Thus, we assume that â€Å"goods held primarily for resale† can be treated as inventory. According to the classification table, inventories and commodity inventories should be treated as nonmonetary assets. 5. Your company has an unconditional legal obligation to perform an asset retirement activity (asset retirement obligation) in the future.The only uncertainty is whether the obligation will be enforced. Should you record the asset retirement obligation? FASB ASC CITATION: Asset Retirement Obligation 410-20-25-4 An entity shall recognize the fair value of a liability for an asset retirement obligation  in the period in which it is incurred if a reasonable estimate of fair value can be made. If a reasonable estimate of fair value cannot be made in the period the asset retirement obligation is incurred, the liability shall be recognized when a reasonable estimate of fair value can be made.If a tangible long-lived  asset with an existing  asset retirement obligation is acquired, a liability for that obligation  shall be recognized at the asset’s acquisition date as if that obligation  were incurred on that date. Answer 5: This Interpretation clarifies that the term conditional asset retirement obligation refers to a legal obligation to perform the asset retirement activity in which the timing and (or) method of settlement are conditional on a future event that may or may not be within the control of the entity.The obligation to perform the asset retirement activity is unconditional even though uncertainty exists about the timing and (or) method of settlement. Thus, an we are required to recognize a liability for the fair value of a conditional asset retirement obligation when incurred if the liability’s fair value can b e reasonably estimated. 6. You use accounting accruals to record probable loss contingencies. Does the recording of the accruals provide financial protection, for example, is it the same as setting aside specific assets to cover the probable claims?FASB ASC CITATION: Loss Contingencies Recognition 450-20-25-2 An estimated loss from a loss contingency shall be accrued by a charge to income if both of the following conditions are met: * a. Information available before the financial statements are issued or are available to be issued (as discussed in Section  855-10-25) indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements.Date of the financial statements means the end of the most recent accounting period for which financial statements are being presented. It is implicit in this condition that it must be probable that one or more future events will occur confirming the fact of the loss. * b. The amount o f loss can be reasonably estimated. The purpose of those conditions is to require accrual of losses when they are reasonably estimable and relate to the current or a prior period.Paragraphs  450-20-55-1 through 55-17  and Examples 1–2 (see paragraphs  450-20-55-18 through 55-35) illustrate the application of the conditions. As discussed in paragraph  450-20-50-5, disclosure is preferable to accrual when a reasonable estimate of loss cannot be made. Further, even losses that are reasonably estimable shall not be accrued if it is not probable that an asset has been impaired or a liability has been incurred at the date of an entity's financial statements because those losses relate to a future period rather than the current or a prior period.Attribution of a loss to events or activities of the current or prior periods is an element of asset impairment or liability incurrence. Answer 6: According to GAAP, using accounting accruals is required if two conditions are met: â €“ If the asset has been impaired or liability has been incurred prior to the date of financial statement, and, thus, relate to the current or prior period; – If the amount of loss can be reasonably estimated; Let us assume that both of the conditions are met in our example, and using of accounting accruals is justified.Thinking of financial protection we can say that accruals certainly help companies to avoid unexpected losses on financial statements. Since it is necessary to be able to make a reasonable estimate of loss in the right period, accruing a liability technically looks like setting aside money to cover those needs. However, setting aside specific assets to satisfy future needs seems to be safer since restricting an asset we assume that it exists physically whereas accruing a liability does not guarantee the company will be able to pay.

Benefits of Cost Accounting Information

Cost accounting offers benefits for manufacturing companies. A cost accounting information system offers benefits for many companies. Cost accounting is a type of accounting method concerned with the cost of goods manufactured and /or sold. Many factors are taken into consideration when cost accountants analyze business costs . The information determined by these accountants is used for inventory valuation , financial statements and decision making . Inventory Valuation Cost accounting offers the benefit of having an accurate inventory valuation of all inventories on hand . This includes all raw products used to make goods , all work-in -process inventories and all finished goods ready for sale. Cost accountants take all costs into consideration and are able to determine the value of all of these inventories on hand . This information is useful for financial statements and for management of the company . Managers use this information to determine selling goals and production needs . Maximum Efficiency Cost accounting is beneficial to determine the maximum efficiency production amounts . Cost accountants take all costs into consideration when calculating this amount . Manufacturing costs consist of direct labor , materials and manufacturing overhead. These costs are all calculated and added up to find a per- unit cost price for manufactured items. When the cost price is calculated, these accountants begin determining a hypothesis of production rates . Many times cost accountants determine that if production is increased slightly, overhead costs remain the same. If this is the case, increasing production actually results in a lower per -unit cost for production , and the end result is a higher profit . Decision Making The information determined by cost accountants is used for decision making for future company needs . Short -term goals and decisions are made as well as long-term strategic decisions. The analysis of cost information is used to compare projected costs to actual costs . This is useful for businesses when budgets are created . Often times, unforeseen costs occur with production , and they are determined in this way. Unforeseen costs are added into the future budgets at rates calculated by cost accountants . Cost accounting also helps companies establish approximate future cash flows . Short -term production goals and marketing decisions are set based on this information. Long -term production plans are also calculated.