Monday, January 27, 2020

Types of Sub-Contractors

Types of Sub-Contractors 1.1 Introduction A sub-contractor has its own principal obligation to carry out his own sub contract work and complete in accordance to sub-contract documents. Contractor rarely complete a building all by himself without the help of a sub-contractor. A nominated sub-contractor has a contract under contractor who is usually instructed to construct the part of the building work under his expertise such as plumbing, electrical, roofing, cement work and plastering. A sub-contractor may be in individual or an incorporated company who perform his job partly in the project. According to Alberta Labour Relations Board (2002), when an officer is trying to decide which party is the true employer, it does not matter if the subcontractors work is: Part of an existing contract Contract between a general contractor and an owner Portion of work the owner is carrying n the owners account Under the standard form of the JCT contract there are 3 types of subcontractor: Domestic subcontractor A sub-contractor chosen from the list by the contractor becomes a domestic sub-contractor. Contractor will remain his responsible for domestic sub-contractor works and for any defects therein to the employer. Nominated subcontractor The principal acts as the middle man between the sub-contractor and the main contractor, whereby he independently invites tenders as sub-contractors and handles the negotiation of the subcontract and hence the main contractors are directed by the principal to enter into a subcontract with the subcontractor selected on terms and condition negotiated by the principal. Named subcontractors The employer is involved hands-on in the process of inviting and selecting tenders and after the final decision on the sub-contractor, the employer instructs the main contractor to enter into the sub-contract with that respective company. According to Chappell (2007), are 2 situations where a person to be ‘named Where work is included in the contract documents and priced by the contractor to be carried out by a person named in the documents Where there is a provisional sum and the architect issues an instruction naming a person to carry out the work it represents. 2.0 Review of appointing a specialist contractor JCT 98 A contractor and sub-contractor has a common relationship in construction industry where the responsibility to complete a building relies on contractor. Sub-contractor will enter into a contract by signing a contract with contactor and provide part of the building work to the sub-contractor by contractor. According to Standard Form of Building Contract (1998), a nominated contractor is being nominated when the Architect/the Contract Administrator uses a prime cost sum or by naming a sub-contractor, reserved to himself selection and approval of the sub-contractor to the Contractor who shall supply and fix any materials or goods or execute work, the sub-contractor so named or to be selected and approved be nominated in accordance with the provisions of clause 35 and a nominate sub-contractor should be Nominated Sub-Contractor. If a Contractors tender has been accepted he should not sub let his work to a Domestic Sub-Contractor without the consent of the Architect/the Contract Administrator. Clause 13.1 nomination of a sub-contractor to supply and fix materials or goods to execute work of which the measured quantities have been set out and priced by the Contractor in the Contract Bills fir supply and fixing or execution by the Contractor. Any variation under clause 13.2 Nominated Sub-Contractor in connection under such additional work is of a similar kind to supply and fixing of materials or the execution of work for which the Contract Bills provided that the Architect/the Contract Administrator would nominate a sub-contractor 2.2 Procedure appointing a specialist contractor JCT has issued some following documents which related to Nominated Sub-Contractors and are referred in the Conditions by the use either of the name or the identification term. According to standard form of building contract (1998) the following procedure is the Standard Form to nominate a Sub-Contract Tender 1998 Edition (NSC/T): Part 1: The Architect/the Contract Administrator will send an invitation to tender a Sub-Contractor Part 2: Tender by a Sub-Contractor Part 3: A Contractor and nominated Sub-Contractor under clause 35.5 will agreed into particular conditions Therefore the following steps are to nominate a sub-contractor should be: Architect/the Contract Administrator will complete the invitation to standard tender of Part 1 NSC/T and together with relevant section of employer/nominated sub-contractor agreement, NSC/W. A complete drawings/specification/bill of quantities describing the work will send to the tenderer. In part 2 Sub-Contractor and Employer signed as approved together with a copy of the numbered tender documents listed in and enclosed with NSC/T part 1 together with any additional documents and/or amendments where have been approved by the Architect/the Contract Administrator and to execute the warranty NSC/W The Architect will then nominate the sub-contractor using the standard nomination, NSC/N instruction to the main contractor. A copy of the invitation tender and the successful sub-contractors tender will be submitted to main contractor, the drawings/specification/bills of quantities on which the tender was bases and the executed warranty. Once the main contractor has received the documents, in within 7 days he should make a reasonable objection to the selected tenderer in writing. If main contractor fails to do so, he will tend to reach an agreement with the selected tenderer on the ‘Particular Conditions in Part 3 of NSC/T. When the Particular Conditions has been reached, contractor and sub-contractor will sign Part 3 of NSC/T and execute the sub-contract agreement articles, NSC/A which incorporate by the reference the sub-contract conditions NSC/C Lastly, a copy of NSC/T Part 3 and NSC/A signed by the contractor will submit to Architect for his records. 3.0 Review of appointing a specialist contractor Post JCT 2005 3.1 Review on a specialist contractor Post JCT 2005 Based on JCT SBC 05, there is no longer nominated sub-contractor in the contract due to numbers of problems arise because when a project is not ready to start work on the commence date, sub-contractor uses this opportunity to demand for extra money. Therefore there are only domestic sub-contractors in Standard Building Contract (SBC). 3.2 Procedure appointing specialist contractor Under JCT SBC05 clause 3.7 stated contractor should not without the consent of Architect/Contract Administrators sub-contract the whole or part of the work to a sub-contractor. He should responsible carrying and completing the Works in all respect in accordance with Contract Documents which is the same condition in JCT SBC 98 under clause 35.2. Furthermore, it stated if there is a Contractors designed Portion, Contractor should not sub-contract the design without Employers consent and should not in affected his obligations as a Contractor. Employer can narrow in choosing sub-contractor when the â€Å"work must be measured or describe adequately in some other way in the bills of quantities so that it can be priced by the contractor.†(Chappell, 2007) When selecting a domestic sub-contractor, the lists must at least contain three names to be chosen by the contractor to carry out the work in project. Employer or contractor may add in additional to the list before an agreement to a sub-contract is entered into respect of particular work. Architect will ensure that the list of domestic sub-contractors are willing and has the expertise to carry the work. Once the main contract is let, additional names are still able to be added where it has given a maximum opportunity for the contractor to take advantage on the competitive prices. If there is a circumstance before entered into a binding contract where the list name is below three therefore: Employer and contractor must agree on the addition of the names must contain at least three in the list Or, contractor carries the work by naming himself in the list and may sub let his work later with architects consent Lastly, a sub-contractor is chosen form the list by the contractor becomes a domestic sub-contractor where employer will not have responsibilities on domestic sub-contractor. Contractor will wholly responsible on domestic sub-contractor whether the â€Å"problems of delay, financial claims or termination of employment.†(Chappell, 2007) 4.0 Review the method of appointing a specialist contractor NEC 3 ECC 2005 (Option B) 4.1 Review the method of appointing a specialist subcontractor NEC 3 ECC 2005 The NEC 3 Engineering and Construction Contract (ECC) 2005 (Option B) have been designed in order to sub-contract work to sub-contractor. A sub-contractor in NEC 3 ECC 2005 (Option B) has a contract with contractor in performing his duties such as Construct or install part of the works Provide a service necessary to provide the works or Supply the plant and materials which the person or organisation has wholly or partly designed specifically for the works Based on NEC 3 ECC 2005 (Option B) under clause 26.1 stated, Contractor is responsible in providing work to the sub-contractor regardless whether there is a sub-contract work. In NEC 3 ECC 2005 (Option B), Project Manager who is the one to approved whether a sub-contractor is allowed to enter a contract unlike in JCT SBC 98 and JCT SBC 05 where Architect in charge in approving sub-contractor. In order to have a sub-contractor, Contractor must submit the name of proposed Subcontractor to the Project Manager for acceptance. If there is a situation where a Project Manager does not accept a sub-contractor therefore Contractor is not allowed to Provide the works to sub-contractor until the Project Manager has accepted him into the contract which stated under clause 26.2. Before nominate a sub-contractor, according to NEC 3 Engineering and Construction Contracts Option B (2005), Contractor is required to propose contract conditions for each sub-contractor to Project Manager for acceptance unless: an NEC contract is proposed the Project Manager has agreed no submission is required Contractor is not allowed to appoint a sub-contractor if the proposed contract conditions to the Project Manager is not accepted. If Project Manager rejects the Contractors proposal of the conditions in the contract regarding the subcontractor, it is because of: the conditions do not allowed Contractor to Provide works the conditions do not include a statement that the parties to the subcontract shall act in a spirit of mutual trust and co-operation. 5.0 Review of nomination sub-contractor in construction industry 5.1 Reasons to nominate sub-contractor According to Atkinson (1999), the reasons for nominating sub-contractor(s) into a project are: (a.) the nominated sub-contractor is selected by the employer (b.) the company choice which the employer wishes to use is in his hands and that decision is not required to be objected to pricing. (c.) in regards to the timing of involvement and appointment of sub-contractor(s), it is left to the employer to meet his requirements (d.) a nominated sub-contractors design expertise, contract knowledge and services coordination can be utilised since he can be involved in the early stage (e.) if required, the sub-contractor can be made part of the contract team and be fully involved in the project. (f.) the distinct line of responsibility to the employer is established through a clear contractual liability. (g.) the introduction of formal links between sub-contractors and the consulting engineer, promotes efficiency as architect, QS and employer time is saved since long chains of correspondences are absent and price, design, programme, and variation are acted quickly on. (h.) delays can be avoided by establishing direct links and involvement 5.2 Why nominated sub-contractor has been omitted? In JCT SBC 05, nominated sub-contractor has been omitted from the standard form due to it has caused problems arise. The main problem is having a conflict relationship between the main contractor and subcontractor where â€Å"one party and the responsibility for that choice being put on another party.†(Chappell, 2007) Furthermore, the reason sub-contractor has been omitted due to demand for extra money when a project is not ready to be started on the commencement date but if there is no law implied when is the commencement date therefore contractor must come up with a reasonable date. The numerous frequency of the existing business relationship occurrence between the nominated subcontractor and the client gave rise to the issue of nominated subcontractors dominating the construction industry since the overall pricing is under the influence of the nominated subcontractor which gives them the power to affect the overall construction cost. The reason behind the ability of the subcontractors to gain such power to influence pricing in the construction industry is because subcontractors are lacking competition amongst each other. 5.3 Appraising the advantages and disadvantages nominating Employer In nominating Employer, there advantages and disadvantages Advantages: Employer has the right to nominate his decision which sub-contractor to carry out the work Employer will have the power on sub-contractors design through early design stage. With warranty NSC/W Employer will have a direct contractual link with sub-contractor in design and selection of materials by sub-contractor. Disadvantages Employer has no right against main contractor if they were defected design caused by sub-contractor If there was a delayed caused by sub-contractor therefore contractor is entitled for to an extension of time and will not have to pay for liquidated damages as warranty NSC/W will recover damages caused by nominated sub-contractor Lack of management on site because contractor is not responsible delay by nominated sub-contractor Employer will bear all the extra cost when there is determination of nominated sub-contractor employments either default or insolvency except delay caused by architect taking reasonable time for renomination. 6.0 Conclusion In my opinion, JCT SBC 05 had omitted nominated sub-contractor which gives simpler to the construction industry. It is clearly defined with nominated sub-contractor in the industry it has caused numerous problems to the employer and main contractor. Therefore without sub-contractor, it will help to decrease the proper parts of the risks which they have received under the main contract for sub-contractor to create its own risk beyond contractors control. However, each standard form of contract has own critics towards nominating a sub-contractor whether it has benefited more to employer or contractor. 7.0 References Atkinso.D, (1999). Subcontracting [online] 1 June. http://www.atkinson-law.com/cases/CasesArticles/Articles/SubContracting.htm [Accessed 25 July 2009] Alberta Labour Relations Board, (2002). True Employer and Subcontractor [online] 1 June. http://www.alrb.gov.ab.ca/procedure/24(f)(ii).pdf [Accessed 25 July 2009] Brand, D., 2009. Contract nominations. [Online] 5 January. Available at: http://cmguide.org/archives/315 [Last accessed on 23 July 2009] Chappell, D. (2007). Understanding JCT Standard Building Contracts. 8th Edi. Taylor Francis. London New York. Karnick, M., 2009. Nominating the best project subcontractors. [Online] 12 July. Available at: http://cmguide.org/archives/1357 [Last accessed on 23 July 2009] Office Of Government Commerce (2005). NEC3 Engineering and Construction Contract: Option B: Priced Contract with Bill of Quantities. 3rd ed., Great Britain, Bell Bain Limited. Price, J. (1994). Sub-Contracting under the JCT Standard Form of Building Contract. Macmillan. Standard Form of Building Contract (1998). Local Authorities with Quantities. Great Britain, The Joint Tribunal Limited

Sunday, January 19, 2020

Cat in the Hat

Cat in the hat essay The Cat in the Hat movie is about Conrad, a twelve-year-old boy, who has two problems: he is constantly doing the exact opposite of what he is supposed to do and causing trouble, and Sally, Conrad's eight-year-old little sister, tries to stop his trouble making and is being rather bossy and perfect. This also relates to Freud’s Theory of the Mind, which states that our mind has 3 different aspects which influence the way we think, act and feel. They are: ego, superego and id. Conrad displays all three aspects throughout the movie that interfere with his mind. The first aspect which Conrad displays in the movie is id. In the beginning of the movie Conrad does what he wants and doesn’t listen to his mom to keep the house clean. When the mother comes home from work she says: â€Å"I asked you to do one thing today, Conrad, keep the house clean. Do you know how frustrating it is that you're always doing the exact opposite of what I say? † Conrad is found sliding down the stairs and wrecking the house which is the opposite of what his mother told him to do. Another example of how Conrad displays id throughout the movie is when the cat arrives and checks their brain the â€Å"phunometer,† Conrad is shown as a rule breaker. â€Å"Just as I suspected, you guys are both out of whack. You're a control freak, and you're a rule-breaker† this shows that Conrad breaks all the rules that are set for him. The third example of Conrad displaying id throughout the movie is when they sign the contract not thinking about what their mother said. Conrad says: â€Å"What about it? We signed the contract† This shows Conrad is not thinking about the consequences of the outcome and is basing his decision of his selfish desires. A fourth example of Conrad displaying id is when the cat tells him not to open the crate. I'm not usually a rules guy, but this is a biggie. â€Å"No opening the crate. † This shows that even thought the cat told Conrad not to open the crate; Conrad went ahead and did it anyway without thinking about what will happen. Therefore, Conrad displays several examples of id, which is what the mind wants without thinking about the consequences later and taking into consideration for reality. The second aspect of the mind Conrad displays throughout the movie is ego. In the middle of the movie after the house is ruined because of thing 1 and thing 2, Conrad decides to help get their dog back because it has the crate lock on it and without out, the whole house will be ruined. Conrad says: â€Å"We've gotta go out and find Nevins. † This shows that Conrad is making rational decisions to meet the needs of the id. A second example of Conrad displaying ego is when Conrad, Sally and the Cat set out to get their dog back and Conrad is driving, he says, â€Å"Wait! Two people can't drive at the same time. This shows Conrad is making the decision not to drive even though he wanted to he knew he is only 12 years old and is too young to drive and that two people cannot drive at the same time. A third example of Conrad displaying ego is when the mothers’ boyfriend goes to her office and tells her everything that has been happening while she was at work. Conrad says â€Å"we’re dead. This is all my fault. I'm such an idiot. Why do I alw ays have to do the opposite of what I'm supposed to? † this shows that Conrad is taking into consideration his actions and is recognizing that he does the opposite of what he is told. Therefore, Conrad displays ego continuously throughout the movie, he makes decisions but yet still attempts to meet the needs of the id while also taking into consideration the reality of the situation. The third and last aspect of the mind Conrad displays at the end of the movie is superego. An example of this would be when the cat tells Conrad and Sally that he planned the whole day. Both kids get upset and Conrad says Cat, â€Å"you need to get out. I don't know that game. † It's not a game. None of this is a game! † this is showing that Conrad is listening to his conscience and telling him that enough is enough. A second example of Conrad showing superego is when Conrad takes the blame for his actions at the end of the movie by saying â€Å"No. This was my fault. I'll take the blame. † This shows Conrad making an internal judgement by finally listening to his conscience and coming clean for his actions. A third and final example of Conrad displaying superego is when Sally and Conrad learn from their mistakes the cat comes back and says, â€Å"if Sally and Conrad should learn from their mistakes, the contract shall be reinstated. † This shows that Conrad listened to his conscience by doing what was right and helped clean p the house in time for his mothers’ party. Therefore, Conrad displayed superego at the end of the movie by trusting his conscience and his internal judgment and doing what was right for a change and changed from a â€Å"rule breaker† to â€Å"just right. † Finally, Conrad displayed id by not listening to his mother and doing the exact oppos ite of what he was told, he displayed ego by making decisions to fix things and superego by listening to his conscience and doing what was right. Conrad displayed all three aspects of Freud’s theory of the mind throughout the movie that lead him to becoming the hero in the end.

Saturday, January 11, 2020

Publix

Journal of Business Case Studies – Fourth Quarter 2007 Volume 3, Number 4 A Retailer‘s Steady Growth Strategy: Should Publix Stay National Or Go Global? Bahaudin G. Mujtaba, (E-mail: [email  protected] edu), Nova Southeastern University Erica Franklin, (E-mail: [email  protected] edu), Nova Southeastern University ABSTRACT Publix Super Markets, Inc. is a Florida-based grocery chain which has over 120,000 employees and annual sales in 2005 of $20. 7 billion. Presently, Publix serves over one million customers every day and is one of the largest employee-owned companies in the world.Publix is one of Florida’s premier supermarkets and has responded to most cultural trends in the grocery market-organic foods; natural foods, health foods, ethnic ingredients, prepared meals, etc. Publix has enjoyed great success in the grocery industry and has expanded in many states. With the advent of globalization affecting almost every industry, the supermarket/food retailing in dustry has joined the trend. Domestic and international food retailers across the globe have begun to internationalize at a rapid rate and open operations around the world.However, as you will see, the growth of supermarket chains beyond their home countries has been done mostly by European and Asian companies. With the exception of Wal-Mart, few U. S. food retailers have expanded abroad. Currently there are no plans for Publix to expand internationally but this case seeks to examine the possibilities of Publix making a step toward going abroad and highlights the various factors in the global environment that may directly or indirectly affect the company. INTRODUCTION A of August 2006, Publix was operating 833 stores. Publix operates 642 stores in Florida, 164 stores in Georgia, 37 stores in South Carolina, 27 stores in Alabama, and 13 stores in Tennessee. Publix carries items ranging from food products to personal care and household goods. The company also has their own line of pri vate label goods that span the same spectrum. To better cater to their market and expand operations, Publix has also created new concept stores for its different target markets, Greenwise and Publix Sabor.The Greenwise store features organic produce and natural foods; Publix Sabor caters to the large Latin-American population in Central and South Florida and carries food products highly-demanded by these consumer. Publix has also moved into the restaurant business through their equity investment in Crispers, the fresh salad and sandwich meal concept-restaurant. In addition to the restaurant subsidiary, Publix Supermarkets Inc. , also owns seven other subsidiaries: 1) Publix Alabama, LLC; 2) PublixDirect, LLC; 3) Publix Asset Management Company; 4) Publix Tennessee, LLC; 5) Real Sub, LLC; 6) Lone Palm Golf Club, LLC; and 7) PTO, LLC.In 2001, Publix began online operations for its consumers for home delivery of groceries. However, its Broward County, FL and surrounding areas pilot pro grams failed to meet revenue and profit goals; so Publix Direct discontinued operations in August 2003 just short of two years after it was launched. The core of Publix‘s operations is the belief in doing everything for the customer. The company holds a superior belief that success lies in customer value and employee appreciation.They developed a policy of Customer Intimacy, which means that their guests need an intimate, professional, thorough, consistent, and disciplined method of serving customers that has become a normal way of doing business. See Table 1 for an evolution of Publix‘s growth since its inception. COMPANY EARNINGS In terms of financial success, in some years, Publix has outperformed the S&P 500 Index and the customer Peer Group Index with regards to return on investment. The Peer Group includes A&P, Albertson‘s, American Stores, Bruno‘s, Food Lion, Giant Foods, Hannaford Bros. , Kroger, Safeway, Smith‘s Food & Drug, Weis Markets, and W inn23Journal of Business Case Studies – Fourth Quarter 2007 Volume 3, Number 4 Dixie. Publix announced their 2005 annual results on March 2nd, 2006. Their sales for the fiscal year ending December 31, 2005, were $20. 6 billion. Net earnings for 2005 were $989. 2 million, compared to $819. 4 million for 2004 (Publix Announces 4th Quarter, 2006). Dividends for 2006 were $1. 00 up from 70 cents in 2004 and 40 cents in 2003, which shows that the efforts of Publix‘s associates to increase earnings via customer value enabled the firm to return an even higher profit to its private stockholders.The 2003 dividend was 40 cents per share, up from 33 cents per share in 2002. Publix CEO Charlie Jenkins Jr. expressed his thanks and appreciation to the firm‘s workers for their performance that helped increase value to customers and, as a result of which, ensured good financial results for the year. Year 1930 1940 1944 1950 1957 1959 1963 1971 1973 1974 1975 1980 1984 1986 1987 1 990 1992 1993 1994 1998 2000 2001 2002 2003 2005 2006 Table 1 – The Publix Spirit Over The Years Accomplishments First Publix Super Market opened in Winter Haven, Florida.First store known as the ? marble, tile and stucco food palace? built in Winter Haven, featuring such revolutionary retail concepts as air conditioning, wide aisles, and electric-eye doors. Publix bought the 19-store chain of All American Food stores in Lakeland and moved the headquarters to Lakeland. New 70,000-square foot grocery warehouse built in Lakeland. Today this warehouse occupies over 2,000,000 square feet. Publix Employee Federal Credit Union opened in a Lakeland warehouse. Publix opened its first store in Miami and bought seven stores.Publix opened the Southeast Coast Headquarters and Distribution Center in North Miami. Two stores opened in Jacksonville. Publix opened the Bakery Plant and constructed the Produce Distribution Center in Lakeland. Publix sales passed $1 billion annually. Publix open ed Distribution Center and Division Office in Jacksonville. Publix Employee Stock Ownership Trust (ESOT) started this year. Publix celebrated 50 years of shopping pleasure. Dairy Processing Plant opened in Lakeland. Checkout scanning implemented chain-wide.It was during the early 1980‘s that Publix started being open on Sundays. Publix sales passed $3. 23 billion. According to Progressive Grocer, Publix‘s 2. 36% before tax net was the highest of top ten super market chains, 2 ? times better than Safeway – the industry leader. Publix opened its first Food and Pharmacy stores in Orlando and Tampa. Publix opened its Dairy Processing Plant in Deerfield Beach. Publix had 400 stores and 74,000 associates in Florida. Publix announced their expansion plans to Georgia and South Carolina.Implemented a company-wide Quality Improvement Process (QIP) and Work Improvement Now (WIN) tools for fact-based decision-making and employee empowerment. Sales were $8. 66 billion. Publix implemented a chain-wide Customer Intimacy program. Publix has sales of over $12 billion and 120,000 associates. Almost 600 stores in four states. Publix was ranked 132 on the Fortune 500. Charlie Jenkins Jr. replaced his cousin Howard as CEO of the company. Publix began opening stores in Nashville Tennessee. Publix makes initial investment in Crispers restaurant chain Publix develops ? oncept-stores‘-Greenwise & Publix Sabor ; Sales equal $20. 7 billion Publix stock splits one to five. Publix opens walk-in medical clinics at select grocery locations in Atlanta, Miami, Orlando and Tampa. Publix further expands with 6 new store openings between June and August: Huntsville, AL; Atlanta, GA; Jacksonville, FL(2); Sebastian, FL; Palm City, FL. Howard Jenkins, previous CEO of Publix, has been quoted in the past commenting on his company‘s dedication to customer value, ? Publix people have been working hard, preparing for an even grander vision of our future.Earlier in this dec ade, we committed ourselves to a mission to become the premier quality food retailer in the world. We introduced our own quality improvement process and later adapted a discipline of Customer Intimacy, which is helping us to listen more effectively to our customers. All of these initiatives have engaged the resourcefulness of thousands of associates from every area of our company. Together we are discovering powerful new methods for delivering customer value.? 24 Journal of Business Case Studies – Fourth Quarter 2007 THE COMPANY Volume 3, Number 4A key differentiating factor in Publix‘s success formula can be attributed to the philosophy of its founder, Mr. George W. Jenkins who stated that ?†¦ some companies are founded on policy. This is wrong. Philosophy, the things you believe in, is more important. Philosophy does not change frequently †¦ and is never compromised †¦ we attempt to adapt a philosophy in such a way as to allow ordinary people to achieve the extraordinary †¦ to reach higher†¦ to look upon average with disdain.? The philosophy of caring for people has been embedded in Publix‘s corporate culture throughout its stores.Publix associates understand that they are not just in the grocery business but also in the people business. Therefore, taking care of associates, customers, suppliers, and community members is important to Publix people and the communities which they serve. Publix‘s Mission Statement very clearly states that Publix is passionately focused on customer value. Publix is committed to satisfying the needs of their customers as individuals better than their competition. Also, research shows that the majority of supermarket shoppers shop and visit supermarkets on a weekly basis.So, building a relationship with customers is a necessity as opposed to a luxury in order to stay aware of their needs and expectation. Publix associates are encouraged to interact with their customers on an hourly basis. Publix associates constantly attempt to keep their fingers on the pulse of the customer in order to get immediate and local feedback. One of the District Managers in the Central Florida region used to encourage, and in some cases require, his department managers to learn at least two customers‘ names, every day through face-to-face introduction and interaction.This is important because Publix employees serve their own communities and through this face-to-face interaction they can better determine customers‘ needs, wants, and desires faster than any research firm could ever do. KEY SUCCESS FACTORS At Publix, everything they do revolves around pleasing the customer; this is why they have enjoyed the kind of success they have had since the 1930's. Bill Fauerbach, Vice President of the Miami Division, said ? only we can give our customers a reason to shop elsewhere.?The President of Publix, Ed Crenshaw, during his first year in the office introduced four success driv ers for the company. The four drivers are: knowing the business, knowing the product, knowing the customer, and continuously training people. As a result, every department implemented different means of doing a better job with these four success drivers. A philosophy of employee appreciation has been embedded in the culture of the organization; so when the upper echelons visit retail stores, especially during appreciation week, they make it a point to personally see and thank every associate.One obstacle Publix is faced with is strong competition in the supermarket industry. For example, Wal-Mart, now the #1 retail grocer in the world, is opening major supercenters throughout Florida. However, Publix is not willing to concede their customers to the competition. As long as they take care of their customers better than anyone else, they will do well. The new generation of Publix leaders understands that complacency is their number one enemy; therefore they continue to focus and improv e on factors which have made them successful in the past.They further understand that delivering superior customer value is a race without a finish line in today‘s fast-paced world. Therefore, they never lose sight of caring for people, delivering quality products and service, and excellence in everything they do. They understand that people need recognition and sincere thanks for their hard work and commitment to the company. Publix has invested heavily in developing an internal professional development curriculum to develop associates‘ skills and help them assume greater responsibility and leadership roles at Publix.Most employees begin working for Publix at a young age and tend to stay there after college. While a college education is very important for leadership and management positions, Publix provides many continuous development opportunities and on-the-job training for their associates. The philosophy of Publix is not just to satisfy and delight customers one tim e; customers must be satisfied, delighted, and excited every time they visit or shop at their store. Publix associates are taught that customers are their most valued assets whom must be welcomed, cherished, and appreciated.Publix associates understand that if they cannot satisfy customer‘s requirements and meet their demands, the customer will cease to do business with them and may shop with other retailers. They remember that if they, as Publix associates, don‘t offer a great shopping experience for their customers then someone else will. Therefore, besides discussing many other valuable concepts, all retail associates are taught the 10-Foot and 10-Second Rules to help them quickly acknowledge customers. The 10-Foot rule states that one must acknowledge all customers that are within ten feet 25 Journal of Business Case Studies – Fourth Quarter 2007Volume 3, Number 4 of one‘s surroundings and the 10-Second rule states that these customers must be acknowledg ed within ten seconds of entering into the service counter area or the 10-Foot zone. Research in the supermarket industry indicates the factors that affect customer loyalty: ? ? ? ? ? The largest percentage of customers (68%) leave if they perceive an attitude of indifference. Some customers (14%) leave because they feel they can find better quality products and services elsewhere. Customers (9%) shop elsewhere because they think your prices are higher than your competitors.A few of the customers (5%) become friends with people who work for a competitor and take their business there. Some customers (3%) leave because they move to a different area. Publix Associates are also encouraged to use their daily observations, customer feedback, survey evaluation, and other data to improve their jobs, better serve their customers, and make Publix a better place ? where shopping is a pleasure. Publix teaches the principle of ? deliver plus 1%? which states that you must consistently meet your customers‘ shopping needs and then exceed their expectations by improving your service one percent.They believe in positively surprising the customer by over-delivering on what customers value. This principle further states that when you make a promise to a customer, you must be consistent and deliver all the time. It means before exceeding your customers‘ expectations, make sure you are satisfactorily meeting their needs. And if you promise any extra services, make sure you deliver as promised. Finally, Publix rewards top-notch service by implementing an awards program which shows associates how much management values their efforts to provide delightful service to customers.Delightful Service Awards are given for customer service that is over and above the minimum standards listed on the Observation Sheet for the area. Associates are expected to provide great customer service as part of the job requirement. The awards are given to associates who make the extra effort to delight customers who shop at Publix. To receive a Delightful Service Award associates must provide delightful service to a customer in a way that is formally recognized by either the customer, by a ? mystery shopper? who is purposely appointed by district management, or by a member of the store management team.Associates are trained and encouraged to set personal goals for themselves with regards to better serving customers and exceeding their expectations. They are asked to find out what they can do to increase and improve their personal commitment to customer intimacy. They are encouraged and rewarded for setting goals to increase their awareness of customers as well as customers‘ wants and needs. It is through these types of programs and committed people that Publix is able to offer its employees an environment ? where working is a pleasure? nd its customers an environment ? where shopping is a pleasure.? Publix associates‘ success with customers originates from the ir belief that no sale is final or complete until the meal is eaten and fully enjoyed. Then, they have made a positive and lasting impression. Publix‘s guarantee, which every associate is aware of, reads that ? we will never, knowingly disappoint you. If for any reason your purchase does not give you complete satisfaction, the full purchase price will be cheerfully refunded immediately upon request.?These are not just words to live by but they are moral imperatives for retailers which have made Publix the successful and innovative giant it is today. According to Howard Jenkins, member of the Publix board and retired CEO, ? growth is the end result of a simple equation. As each of us continues to please our customers, more customers will look to Publix for their shopping needs. We must never lose sight of exactly what those needs are.? Keeping their sight on the changing needs of their customers and effectively filling those needs have paid big dividends for Publix‘s cons istent growth and achievement over the years.As a result of the its continued efforts to grow through providing superior customer service and developing and retaining content employees, Publix was once again announced in 2005 a ? 100 Best Company to Work for? by Fortune magazine. Publix also received its 13 th award by Fortune Magazine as a ? Most Admired Company.? CURRENT TRENDS IN THE GLOBAL GROCERY INDUSTRY As the business world becomes smaller and firms look to expand their reach globally, managers are faced with the task of developing and implementing plans to make the next step to take their firm into the international arena. As 26Journal of Business Case Studies – Fourth Quarter 2007 Volume 3, Number 4 companies in other industries such as electronics, clothing, and food service have taken their companies abroad, a new trend has begun to emerge within the last decade—grocery chains and supermarkets expanding their companies internationally. The company leading t his trend is Wal-Mart which has expanded mostly to Europe and Latin America. However, this trend has been limited to foreign supermarkets expanding into the U. S. market such as Aldi, Tesco, and Famima. American grocery stores have not been very prevalent in the expansion of the industry globally.Tesco and Famima are looking to bring smaller scale grocery retail stores to the U. S. mostly concentrated on the West Coast in California. Famima, the Japanese grocer will offer Chinese and Japanese items which would be sure to please ethnic food seekers. There are a variety of reasons why some U. S. firms have been prompted to expand abroad. The main reason is because of competition in the form of consolidations of grocers. There are a variety of methods firms in the grocery industry use to reach the global market, the most popular being via acquisitions of smaller stores in the host nation.WalMart and IGA have both expanded their global reach through acquisitions. Tesco has expanded thei r company through the use of joint ventures, acquisitions, stand-alone operations and start-up concepts. Within the grocery industry, traditional grocers are beginning to stock items that normally do not dot the landscape of a grocery store such as non-food items and traditional retailers of non-food items are starting to sell food products. U. S. Grocery stores and supermarkets thinking of expanding abroad also have to contend with the food retailers in the host nations of both local and foreign firms.For example, hypermarkets are well known throughout Europe and Africa and sell lots of goods ranging from home improvement products to frozen foods; a small U. S. supermarket may have trouble competing with this type of store in an overseas market. Also Wal-Mart has introduced their concept grocery ? Neighborhood Center? stores in the U. S. which sell only food products; their strategy abroad involves the large supermarkets, which compete with the local hypermarkets. So not only does a small U. S. grocer have to compete with a local firm, it must compete with other foreign, mainly American firms as well. The rapid growth and development of ? upercenters? as evidenced by Wal-mart‘s grocery industry ascendancy is testament to the viability of hybrid formats (i. e. , grocery and general merchandise). Supercenters‘ sales exceeded $100 billion in 2000 (half of which was accounted for by the grocery side of the store). In another example, domestically, Wal-Mart has begun to add new organic food products to its shelves to attract more upscale buyers that would normally attend specialty organic markets or upscale supermarkets. In addition, the legendary furniture producer Ikea has recently decided to expand it specialty-foods segment and will begin selling the items in its stores.The firm has always sold food products and even operates a few restaurants. Retailers also are starting to develop new concept stores which bear the name and likeness of the parent store but cater to a particular ethnic group or food trend. Publix has their two chains, one Latin-oriented and the other organicoriented. Wal-Mart has also developed and expanded their ? Neighborhood Market? limited grocer concept. Over 20,000 new items are hitting the market every year and understanding the value of each product to each customer is no easy task.Therefore, the value of understanding, anticipating, and determining consumer preference cannot be overestimated. Changing effectively is a matter of keeping up with the demands of consumers, offering more value for the customer‘s dollar, being competitive, and creating raving fans. For example, Publix offers readymade meals which are a growing trend abroad, especially in Asia. Other countries view American brands as a welcome addition to their market place. For example, Japan is a large importer of foreign food supplies and a report out of Sweden recently found Japan as a viable market for foreign investment in food products and supplies.Food safety is becoming a major issue in the grocery industry. According to a Better Homes and Gardens panel study, only 20% of the panelists were very confident that the food they buy is safe to eat. Global activist group Greenpeace, has joined two other coalitions-True Food Now and GE-Free Markets-which are trying to convince two supermarket operators in California to stop using genetically engineered ingredients in their private label food lines. According to NBC Dateline investigation, seven of the nation's largest grocery store chains, operating more than 7000 tores in nearly every state, admitted to re-dating meats and fish after they had reached their original â€Å"sell-by† date. In the food retailing industry, leaders are paying more attention to ensuring that food products are safe and produced in a clean environment. According to the corporate quality assurance lab coordinator at Publix, their associates are constantly looking at all the risk factors associated with food quality, as well as food safety, while attempting to eliminate them. Firms in any industry operating abroad and at home must also be aware of health risks.The ever publicized, bird-flu, can affect how companies conduct operations. In one move, Publix announced that in case of a bird-flu epidemic in America, it would think about providing curbside delivery of goods to customers. In light of the health risks present to retailers and 27 Journal of Business Case Studies – Fourth Quarter 2007 Volume 3, Number 4 their food supplies, supermarkets must also craft procurement strategies to ensure the products selected to be sold in their stores are free from exposure to such elements prior to being stocked on the companies‘ shelves.Natural disasters also play a role in food safety as well. When a natural disaster strikes, cities and neighborhoods are often left without electricity and as a result, food establishments are not able to store their peris hable items because of the risk of spoilage and making customers sick. To counter this problem, Publix has prepared all of its South Florida stores for hurricane disasters by installing generators in these stores as part of its ? Business Recovery Program.?This move is seen as a way for the company to remain open during the aftermath of a storm and continue to serve their customers by hopefully reducing lost perishables inventory and helping to ensure that spoiled and tainted food products are not sold to their customers. Today‘s customers are increasingly more concerned and vocal about the quality and nutrition of the food they purchase. According to research, 70 percent of women and 54 percent of men say they consider nutrition to be an important factor in their consideration of food purchases. Once a niche category, organic foods are becoming increasingly mainstream as small, egional organic food-producing companies have been acquired by major manufacturers. Today‘s n utrition-conscious supermarket shoppers are checking labels as never before. The Food and Drug Administration is requiring that trans fat (trans fats are found in foods ranging from partially hydrogenated oils to fried foods, cookies, pastries, dairy products and meats) content appear on all food labels as of January 1, 2006. Finally, some manufacturers are considering the idea of offering ? functional foods? which are fortified with a growing number of popular herbs, vitamins, hormones and other healthy additives.The days of preparing complete meals at home are becoming a distant memory for most working people living in the United States and other developed nations. Today‘s time poor shoppers are opting for prepared foods such as precut produce, cooked dinners, and prepared takeout foods. Also, 77. 4 percent of the respondents purchase prepared foods to eat at home and 49 percent of those who eat at home said they do so because they are more careful about what they eat. It ha s been said that over 40 percent of all consumer spending on food is for meals that are eaten away from their homes.EXTERNAL ENVIRONMENTAL FACTORS AFFECTING GLOBAL EXPANSION Economic. The economy of the country affects companies if they decide to expand abroad and how they operate. The countries‘ monetary and economic policies could be discouraging to international investment such as currency controls; unstable exchange rates; high external debt, etc. A retail establishment might be affected by unstable currencies which could leave some customers unable to buy the companies‘ products and could hamper repatriation of profits back home. The type of economy a country operates under can also have an impact on foreign firms.For example, command, communist, socialist or market-oriented economies also pose different challenges to the multinational firm, and policies of these various economies will in effect determine companies‘ direction. Socio-cultural. Elements in the f oreign socio-cultural environment will affect decisions to locate abroad. There are various cultural norms that influence consumer behavior, company policies, marketing and product selection such as religion, ethnic norms, etc. The firm must look at new social and cultural trends in the global and country-specific environment and how they affect the market.Some social trends that have emerged in the food industry are healthy foods, organic and natural foods and gourmet take-out. Supermarkets wishing to expand abroad also must take note of regional and country preferences of the consumers in the host nation. What is normally for sale in the home market may be significantly different in the host nation; even more so than the differences in regional areas of the home country. Change is constant and ubiquitous throughout the supermarket industry because customers are becoming more knowledgeable and demanding.In today‘s market-based economy, customers want a variety of ethnic foods that are made with quality ingredients and represent their culture; therefore quality service must be aligned accordingly with the best prices in order to deliver superior value. Political/Legal. One of the biggest factors affecting expansion abroad is the level of political risk of a country and its legal environment. The level of political risk involved and its resultant effect on foreign firms are often taken into consideration before a company decides to locate in a foreign market. A new government may expropriate or nationalize 28Journal of Business Case Studies – Fourth Quarter 2007 Volume 3, Number 4 foreign owned property or all of the companies in a particular industry often with detrimental results to the foreign firm. Also governments sometimes pose through their legal system investment restrictions on foreign firms seeking FDI in their countries. This ranges from disallowing 100% ownership by foreign firms in the host country; mandatory joint venture or strategic alliance agreements; and even restrictions on the building of manufacturing or distribution facilities in the new country. Demographic.This particular factor in the external environment relates to ? who will your customers be Will the same demographic segment targeted by the firm in its home country be present in the host nation, such as income, gender, age, education? Are these consumers accessible? Is there a need or want for the firm‘s particular products? For example, will a traditional supermarket with middle class consumers at home have a large demographic base in a village where poorer customers buy produce from open-air markets? How will the characteristics of the intended target group affect operating strategy?All of the questions must be answered and will directly affect the strategy that a company will take when expanding abroad and even will affect the country of choice for the firm. Technological. The firm needs to look at new trends in the industry or related in dustries that will have an effect on their expansion and operations at home and abroad. There is in fact rapid technological innovation in the food-retail industry that companies are starting to take notice of and adopt. Technology which allows customers to be their own cashiers and checkout their own groceries have been around for many years.However, it is only recently that some food retailers are toying with its implementation as a strategic tool to enhance their competitive position and offer better service to the time-impoverished customer. This is because self-checkout technology, which allows shoppers to scan their own items, offers savings to both the shopper and the retailer along with an added convenience. Self-checkouts can serve only a segment of the market which wants to scan their own groceries and have a debit card to pay for their groceries. Check-out efficiency has also been improved by widespread use of debit and credit card payment systems.CONCLUDING REMARK Publix ‘s history shows that they bought seven Grand Union stores in Miami in 1959 and 19 All American stores in 1945 to expand their market share in the Florida market. According to Publix leaders, currently there are no specific plans for mergers or acquisitions. However, they are not against the idea of acquiring another company that fits Publix‘s culture and philosophy. An executive commented that ? If the right opportunity came up we could acquire another company†¦ we may or may not find another company we like†¦we believe in internal growth, building our own stores.?The supermarket industry is becoming increasingly concentrated as large regional chains such as, Wal-Mart, Kroger, Safeway, and Albertson‘s dominate their markets Publix‘s current strategy is to steadily grow from within and expand the Publix culture throughout its stores across different states in the United States. If they choose not to go abroad, they better be fully prepared to compet e with global firms that will be planning to invade their market in the coming decades. One must ponder on a strategy of Publix going abroad to gain new market share and to gain the relevant experience to compete with global competitors.Or, Publix can simply prepare to protect its territories from foreign retailers that will be competing with them in the United States. What should Publix executives do and how should be they proceed if they are to maximize the value of their stockholders in the long-term? DISCUSSION QUESTIONS ? ? ? ? ? ? ? Is Publix ready to go abroad? Defend your statement selection as thoroughly as possible. Do Publix managers and employees have the experience to compete in global markets? Discuss. What route if any should Publix take to expand abroad? (Think about joint-venture, strategic alliance, licensing, manufacturing, greenfield, etc. If international expansion is not feasible at this time, develop some alternative solutions to Publix growing successfully am id global competitors. Beyond product selection, what other aspects of Publix‘s operations may be affected by going abroad? What other factors in the firm‘s external environment may affect international expansion for Publix? Is it better for Publix to go abroad and compete in new markets or simply prepare to compete with global retailers that will be coming into the neighborhood? 29 Journal of Business Case Studies – Fourth Quarter 2007 Exhibit 1 – Stages of Internationalization Volume 3, Number 4Foreign Sales Office Domestic Sales Direct Exporting Foreign Manufacturing Subsidiary Amount of Involvement in the Foreign Country Exhibit 2 – Consolidated Earnings Publix Super Markets, Inc. Consolidated Statements of Earnings Years ended December 31, 2005, December 25, 2004 and December 27, 2003 2005 2004 2003 (Amounts are in thousands, except share outstanding and per share amounts) Revenues: Sales$ Other operating income Total revenues Costs and expenses : Cost of merchandise sold Operating and administrative expenses 20,589,130 155,681 20,744,811 18,554,486 131,885 18,686,371 16,760,749 126,120 16,886,869 5,059,680 4,231,402 13,577,740 3,869,791 12,275,132 3,613,759 Total costs and expenses Operating profit Investment income, net Other income, net Earnings before income tax expense Income tax expense Net earnings Weighted average number of common shares outstanding Basic and diluted earnings per common share based on weighted average shares outstanding 19,291,082 1,453,729 74,293 22,716 1,550,738 561,582 $ 989,156 7,447,531 1,238,840 35,311 20,860 1,295,011 475,628 819,383 15,888,891 997,978 21,926 27,185 1,047,089 386,156 660,933 172,039,137 176,775,733 184,112,742 $ 5. 75 4. 64 3. 59 30 Journal of Business Case Studies – Fourth Quarter 2007 Exhibit 3- Consolidated Comprehensive Earnings Publix Super Markets, Inc. Consolidated Statements of Comprehensive Earnings Years ended December 31, 005, December 25, 2004 and December 27, 2003 2005 2004 (Amounts are in thousands) Net earnings Other comprehensive earnings (losses) Unrealized (loss) gain on investment securities available for-sale, net of tax effect of ($8,484), $419 and $3,174 in 2005, 2004 and 2003, respectively Reclassification adjustment for net realized gain on investment securities available-for-sale, net of tax effect of ($1,692), ($1,348) and ($800) in 2005, 2004 and 2003, respectively Comprehensive earnings $989,156 819,383 Volume 3, Number 4 2003 660,933 (13,510) 668 5,055 (2,695) $972,951 (2,147) 817,904 (1,274) 664,714REFERENCES 1. 2. 3. Appleson, G. (2006, August 14). Grocery chains blur retailing lines as they bottle Wal-Mart. Knight Ridder Tribune, P. 1 Awbi, A. (2006, June 16 Tesco Shifts Focus as foreign business booms. Food & Drink Europe. com. Retrieved August 21, 2006 from http://www. foodanddrinkeurope. com/news/ng. asp? id=68453. Klintenberg, H. (2003). Japanese Food Market Consumer Market Characteristics, and the foreign entr y situation from a Swedish Perspective. Gotenborg, Dept. of Human and Economic Geography. Retrieved August 21, 2006 from http://www. handels. gu. se/epc/archive00003058.Ikea to move into specialty grocery market. (2005, July 11). Food & Drink Europe. com Retrieved August 24, 2006 from http://www. foodanddrinkeurope. com/news/printNewsBis. asp? id=61218 Jackson, J. (2006, April 6). Experts discuss bird-flue response: Publix plan for curbside delivery is an example of how business for the worst. Knight Ridder Business Tribune. Retrieved August 21, 2006 from ProQuest. Mujtaba, B. G. (April 2007). Cross cultural management and negotiation practices. ILEAD Academy Publications; Florida, United States. ISBN: 978-0-9774211-2-1. Website: Ileadacademy. com. Mujtaba, G. B. Johnson, W. , (2004). Publix Super Markets Inc. : Achieving Customer Intimacy. Case 15; pages 375-392. In William Johnson and Art Weinstein‘s book entitled Superior Customer Value in New Economy. Second Edition. CRC P ress. Orgel, D. (2002, June 17). U. S. Supermarket Operators need a foreign policy. Supermarket News. Retrieved August 21, 2006 from ProQuest Database. Pint Sized Imports. Progressive Grocer (2006, May 15). 8, p. 18. Retrieved August 21, 2006 rom ProQuest Database. Publix. (2006, March 2). Publix Announces 4th Quarter and Annual Results for 2005. Retrieved August 21, 2006 from www. ublix. com. Publix. (2006, April 13). Publix Announces Annual Dividend. Retrieved August 21, 2006 from www. publix. com. Publix. (2006). Publix website visited on August 21 2006 at http://www. publix. com 31 4. 5. 6. 7. 8. 9. 10. 11. 12. Journal of Business Case Studies – Fourth Quarter 2007 13. 14. 15. Volume 3, Number 4 16. 17. Publix plans natural prototypes. (2005, May 13). South Florida Business Journal. Retrieved August 21, 2006 from http://www. bizjournals. com/southflorida/stories/2005/05/09/daily52. html. Grocer to add flavor with Hispanic themed stores. (2005, March 7).South Florida Busin ess Journal. Retrieved August 21, 2006 from http://www. bizjournals. com/southflorida/stories/2005/03/07/daily5. html. Ideal Media, LLC. (2006). Restaurant Business: Street smarts for the entrepreneur. Retrieved August 21, 2006 from http://www. restaurantbiz. com/index. php? option=com_content&task=view&id=13355&Itemid=93. Publix. (2006). Publix Super Markets Inc. Annual Report to Stockholders: The Character of Publix. Publix (2006, February 6). Publix and the Little Clinic to open walk-in medical clinics. Retrieved September 16, 2006 from www. publix. com NOTES 32

Friday, January 3, 2020

The Mission Station Of Spain - 1378 Words

The main theme of the story in the mission is about a group of Jesuits who established a mission station around the borderland of Argentina, Paraguay and Brazil around 1750. Meanwhile, they converted the local Indians to Christianity. At the end, Cardinal Altamirano ordered Jesuits to leave the mission. Without the protection of the church, the local Indians were killed or slaved by Portuguese. The script of the movie was written from a real historic event in 1754-1756, the Guarani War, which Guarani communities defend their homeland against Spanish-Portuguese for almost three years. The fuse of the war was ignited by the Treaty of Madrid in 1750, which was signed by the king of Spain and Portugal to completely determine the border between Spain and Portugal in South America by the area around Uruguay river. Around that time, the Jesuit mission stations and the local Indians were growing rapidly both economically and regionally with their outstanding plantations, which was much bette r than those in Portugal’s own territory. As a consequence, the Portuguese wanted to take over control the land and slave the Indians. They forced the Catholic church to dissemble their mission station and did the massacre right after they leaved. The paradigm that director used was carefully selected. The story of the movie was told from a vision of Cardinal Altamirano, who was writing a letter to the pop for explaining what had happened. Within the story, the two main narratives were not onShow MoreRelatedMotives of Exploration of the New World Essay823 Words   |  4 Pagesdiscovered the New World. Thus; Spain, France and England began sending out conquistadors and explorers to the uncharted terrains of the new continent. 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