Shell company's efforts, actions and initiatives regarding Assignment

Shell company's efforts, actions and initiatives regarding sustainability - Assignment Example They have divided their whole work strategy into two directions, Up-stream and down-stream. In the Upstream strategy they are actually looking forward to discover newer oilfields and at the same time also working on the existing methods to increase efficiency and productivity. In the downstream strategy they invest the earnings to earn financial gains. They focus on providing the supply to the demands of the energy of the world and that to in an environmentally friendly way and at the same time focus on sustainable development. ROYAL Dutch Shell plc commonly known as â€Å"SHELL† is a multinational BRITISH-DUTCH oil and gas company. Its headquarter is situated in THE HAGUE, NETHERLANDS and a registered office in LONDON, UK. SHELL is amongst one of the leading company in the field of oil and gas industry; indulge itself not only in the production and refineries of petroleum products but also paved its way in the major energy products like â€Å"bio fuel, hydrogen and power gen eration†. SHELL is keen in fulfilling and guaranteeing energy needs of people in ways that are highly economical, environmental and social responsible. Owing to the future challenges and threats regarding our energy demands, environment and its safety such as â€Å"increasing population and rising urbanization† will hit our energy sources hardly and will eventually bring us to the verge of shortage of energy sources, according to an estimation that our world’s population will reach to 9 billion by 2050 which means that many people will fall in the hands of energy poverty. Also it was estimated by INTERNATIONAL ENERGY AGENCY that $38 trillion will be required for infrastructure to meet energy demands by 2035, beside these GLOBAL CLIMATE CHANGE is a great threat. As a result SHELL has molded its approach in accordance with these challenges in order to neutralize energy needs and energy sources, framed its policies and strategies under thorough case examinations of challenges in a very effective and righteous manner, reach to the conclusion in which they prioritized â€Å"SUSTAINABILITY† above all. Thus the energy sources that SHELL provides must be able to face these global challenges and threats which will lead towards building a â€Å"SUSTAINABLE ENERGY FUTURE†. In the words of PETER VOSER, CEO, SHELL: â€Å"with tough economic conditions prevailing, and momentous social change taking place in some countries, the world must not lose sight of longer-term challenges.† SHELL considers the two most dominating factors in putting a fight against these challenges. 1st is the GREEN HOUSE REGULATION.2nd is the development of sustainable urban cities i-e, smarter cities. These two factors effects the growing energy need to the extent of much reduction in energy demands as these smarter cities will set independency in the transport, energy systems etc. As a matter of fact that SUSTAINABILITY development is a basic need of todayâ⠂¬â„¢s era. All of sustainable developments and standards are framed by â€Å"HEALTHY, SAFETY, SECURITY, ENVIRONMENT and SOCIAL PERFORMANCE (HSSP & SP). It governs all the related issues. It sets basic priorities, rules, regulations and all concerns bodies ought to abide by them. The CEO chairs the (HSSP & SP) and accesses management of sustainability development. These policies and performances are thoroughly inspected with respect to the SHELL general business principles and (HSSP

Color Theraphy Essay Example | Topics and Well Written Essays - 250 words

Color Theraphy - Essay Example The employment of primary, warm, or cool colors in color therapy has been a fundamental practice in the treatment of certain disorders (Ashby 92). Notably, the use of color in variant settings influences personal perceptions and responses to an environment. This proves that color is actually an influential factor in a person’s take on things. On the same note, individual differences relative to color are evident and have to be accounted for as far as color therapy is concerned. Color has significant influence on emotions, feelings, thoughts, and behavior (Birren 150). This is because color plays an active role in stimulating the brain. Although this stimulation is oriented towards one way or another depending on one’s personality, the common denominator is that each and every individual has his/her color preferences. Subsequently, these preferences inform the manner in which color therapy would work or fail to work for one individual or the other. As a result, approaches to color therapy vary subject to the stimulation attained by any given

Role and Functions of Law Essay Example for Free

Role and Functions of Law Essay Law is vast and diverse, which makes it overwhelming and confusing. The main purpose of the law is to create order in society and business. Law can be defined as â€Å"the body of official rules and regulations, generally found in constitutions, legislation, judicial opinions, and the like, that is used to govern a society and to control the behavior of its members, so Law is a formal mechanism of social control† (Sixth Form Law, 2012, par. 4). The following will describe the function of law and what role it has in society and business in addition to looking at how law affects a specific industry. Because American law is so diverse, it is broken down into several categories. Those categories include; Criminal law versus Civil law, Substantive law versus Procedural law, and Public law versus Private law. Please note that these categories are broad, and they are not mutually exclusive. An act or transaction can be classified in more than one legal category (Melvin, 2011). First, laws, primarily statutes, are considered to be criminal or civil. Criminal law protects society. It is between private parties and society. For example, if someone is brought up on murder charges they would be tried in a criminal court of law. Violations of criminal law could result in penalties of fines or imprisonment to violators if convicted of the crime and proven to have intentionally committed the crime. Civil law is between private parties. Civil laws are created to compensate parties who have experienced losses because of the other parties’ actions. Examples of civil law could be divorce and accidental injury cases. Next are the differences between Substantive law and Procedural law. Substantive law is a statutory law, which deals with the relationship between people or people and the state. Substantive law is used to define, regulate, and create people’s rights and obligations. They deal with the structure and the facts of the case to determine the type of crime and the severity. It also defines the rights and responsibility of the accused. For example, there are several degrees of murder, depending on the circumstances and the intent; there are different levels of punishment. On the other hand, Procedural law is a set of rules that govern the proceedings of criminal lawsuits and civil proceedings. It elaborates on the steps of how the case should proceed as well as assists in determining if the case requires a trial. These laws ensure fair practice and consistency in the due process (Diffen, n. d. ). Last is the summary of Public law and Private law. Public law governs the relationship between individuals and the government. It includes constitutional law, administrative law, and criminal law. Domestic violence is an example of Public law. Private law, also known as common law in some countries, governs the relationships between individuals. It includes civil law, labor law, commercial law, corporations law, and competition law. An example of Private law would be a contract for services. If someone renders a service according to the request of the client, but the client is not happy with the results and refuses to pay for this service. This agreement is legally binding and the rules of transaction are governed by the common law of contracts (Melvin, 2011). There is much to digest once reading about the categories of law and to think this is just skimming the surface. In addition to these categories the Congress is given power via the Commerce Clause to â€Å"regulate Commerce among the several states† (Melvin, 2011, p 32). If Congress chooses to regulate certain persons or products, the federal law is supreme to the state law that tries to regulate the same persons or products. In the case of Cipollone v. Liggett Group, the state law regulating advertising for tobacco products were preempted by the federal law (Melvin, 2011). It is important to know how state and federal laws can affect society and business. One industry, which is under constant scrutiny, is Appraising. Appraising has both state and federal laws to abide with, and they are constantly changing. Appraisers are required to obtain certain standards that are set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), which is published by the Appraisal Standards Board of the Appraisal Foundation. If an appraiser fails to comply with these standards there could be punishment of fines, lawsuits, or loss of license. In conclusion, it is important to know the basic roles and functions of law in both society and business even though it is vast and diverse. Laws are needed to create balance and order within society and business, and they can be broken into broad categories to obtain the basic knowledge.

Impacts Of Tourism In Okavango Delta Tourism Essay

Impacts Of Tourism In Okavango Delta Tourism Essay According to Kreag G. (2001) the impacts of tourism are distinguished in seven different types, these are economic, service, social and cultural, natural, community attitude, crowding and congestion and taxes. These impacts are not applicable with every community because the resources and conditions are may differ. Every coin has two sides, means these impacts can affect negatively or positively. Planning and the plans of management with their current implementation helps to increase positive tourism issues and decreases tourism issues (Algansadi, 2009). In economic term, tourism helps to maximize the opportunities of employment like more number of jobs starting from entry level caries low wedges to high professional level positions in management and industrial fields. In service term, increase in tourism helps to create more number of opportunities to rise and develop facilities. According to Andriotis K. (2009) in terms of community attitude, as tourism increases range of facilitie s are used by the local people. Tourism helps to create place more thrilling and exciting. As new development is done by outsiders, community culture is get affected. In terms of crowding and congestion, people come together and get attracted to amazing places. In terms of taxes, tourist spends more money on behalf of services from which value added tax is gained. According to Fennell (2008) in terms of social and cultural, it is in detail consideration of tourism consequence which can be the determinants or assets to the communities. Increase in number of tourist comes with their different values and affects the family life and individual behaviour. The close relation between tourist and the residents helps to create rise in opportunities. Positive impacts of social and cultural are, the education and training plays important role for local people to learn and enhance their qualification and skills which is significant in tourism industry also help trained staff in the organisations. It helps to increase the standard life of the local people with positive economic growth. Increase in tourist spending power help to increase income of local person (Chin C.,2010). It helps to raise investment with the buying process of food, dress, culture and ceremonies etc, which can create tourist interest in the local culture. Negative impacts of social and cultural affects, increase in smuggling, gambling, drinking of alcohol also with the increase in underage drinking, rise in prostitution, drugs and crime. It affects lifestyle, culture, and most important language. Increase in the tourism area affects local residents. There is a negative impact on customs and values of local people (Kreag G., 2001). In terms of natural, the areas of natural resources like oceans, waterfall, wildlife forests increases tourist attraction and new residents who loves the natural environment. Generally clean industry is known as tourism industry, hotels, parks, restaurants, shops are comes under that except factories. The historical and museums get preserved (Kreag G., 2001). Positive impacts as it work as a catalyst to preserve natural area also helps to gain economic benefits. Forests are preserved. The ecotourism is maintained which protects and preserve selected natural environment, also gain economic benefits of tourism development and reduces the impact on environment (Andereck K. L., 1993). Natural system also have negative effects like, it strongly affects on air and water pollution also sedimentation effects with demonising the forests for the tourist services (Kreag G., 2001). Flora and fauna has deep researched on wild life which includes mammals and birds arises the hunting and trapping a ctivities increases also the marine life is get affected when toxic waste water runoff in sea. The soil and beaches are get damaged with the skies, cars, feet, horse etc. Oil refining situated in coastal areas with the water pollution and destruction. Solid waste major effects on soil and air pollution recycle and reusable helps to minimize the pollution (Mukherjee and Abir, 2008). Okavango Delta is the amazing tourist place situated in north-western part of Botswana. Its a home of wildlife where most of the tourist comes for photography and safari hunter. Annually, on average 50,000 tourists visit this place (Mbaiwa J., 2002). Tourism development has boost to create and enhance facilities like hotels, camps, airports, communication services, etc in region. This development has impacts on environment and socio culture of region (Mbaiwa J., 2004). In positive aspect, the region major land is used for tourism development with helping local people to increase benefits from developing of natural resources and wildlife. Local people created an institution known as Community based Organisation (CBOs) which help for tourism development and natural resource management. Institute distribute work in small parts, like Khawai Community works on cutting of thatching grass and see it to the lodges in Delta, similarly others also choose their parts. This helps to empowermen t of local community in region. 2) Tourism development widely creates employment which benefits for the financial development. Opportunities in jobs like accommodation services, tourism business, management, tour operators, etc. The company like Scot Wilson Consultants gave jobs to people in 20 safari campuses (Mbaiwa J., 2002).As all the local communities has only create jobs and opportunities instead of depending on other companies. 3) Cultural rejuvenations promote tourism with their traditionally created products, services, shops, craft industries, etc which provides cultural services to the tourist to know cultural ways. The Mekoro Safaris and basket production are the major known businesses over there. The safaris are created like the dug in a wood, which use for transport and for hunting crocodiles and hippos. The basket production is their traditional business, which helps to generate more profit from the tourists as market comes to their home. 4) Positive approach among th e local people, for development of tourism and conservation of wildlife helps to develop tourism and social economic benefits from tourist arrivals (Mbaiwa J., 2004). According to Mbaiwa (2002) as negative aspect, tourism industry developed in Okavango Delta is largely owned and managed by internationals and developed in remote areas. The financial rates are so high that all services and goods beyond the local community richness. Major profit in earned by international companies and the margined income of the local people is low. The facilities are provided with which the tourist is comfortable. Most of the camps are run by Hospitality and Tourism Association with the international membership. 2) Racism development in tourism industry of Okavango Delta refers to relationship between black and white people. Management levels are occupied by whites, pay scale and benefits are very low for blacks (Fennell A., 2008). 3) Relations and structure of family is affecting by tourism. Foreign companies growing lodges and camps, less space to live local people accept wildness part. Relocate people affects their landmarks and relations. Working period of worke rs affects relationship with family and this impact on increases in HIV/ADIS spread. 3) Tourism and urbanisation put wide negative impact on social culture. The costumes and styles affect relationships. Prostitution is growing in most of the developing countries as urbanisation develops most impacts on local people. Tourism is the major economic sector, which increases in crime with illegal activities like drugs, violence and robberies (Mbaiwa, 2002, 2004). Thus, looking back at the easy, tourism is growing rapidly dealing with positive and negative impacts on the tourist place. Increasing infrastructure put impacts on natural system. Its positive image is excellent for people but the negative image affects culture. Mainly socio cultural positive impact helps to development of tourist destination. Tourism helps to maintain nature and its components. Also it helps to create place attractive and thrilling. Development of tourism increases job opportunities. Positive impact of social culture help local people to educate with training, improves life standards and maintain their culture. Negative side effects mostly on diverse economic and culture, rise in crime, place issues, illegal behaviour. Tourism is developing in Okavango Delta with combining positive and negative social cultural impacts on local people. Its positive impacts helps to develop destination mainly community based tourism. Participating local people helps to generate income and employment by self. Mekoro Safaries and Basket making helps to preserve their own culture. Tourism help local people to get international market at their place. Its negative social impacts affect on quality life of local people. Its important to focus on these impacts by all stakeholders of industry. The camps should be promoted but should not owned by international. The local people should get first preference in management jobs and there should be law to prevent racism.

Domestic Violence: Why Do Women Stay? Essay -- Violence Against Women E

It is common knowledge that Ray Rice used his wife as a punching bag in the elevator of an Atlantic City casino. What is truely remarkable is that his fiancà © became his wife after that vicious left hook to the face left her unconscious. Why do women stay with men who beat them unconscious? Domestic violence is a serious and complex plague of society that affects all, but women make up the largest number of victims in most case studies. In the United States alone, '1.5 million women are raped or physically assaulted by an intimate partner each year. More than 500,000 women victims require medical treatment, and 324,000 victims are pregnant at the time of assault' (Berlinger, 'Taking' 42). Numbers like these show how intense the situation of domes tic violence truly is. 'Two women a week are killed by a current or former partner and domestic violence accounts for 22% of all recorded violent crimes' (Jamil 70). Domestic violence takes such a large number in percentages regarding violent crimes, yet often is dismissed by many with the idea that 'this won't happen to me'. Somehow, somewhere, domestic violence will touch everyone whether by someone they know or by televised publication. Though domestic violence affects men as well, the female subject is more often the victim. Domestic violence has a continuous cycle that has been influenced since birth and can be stopped with intervention but each victim's reason for staying will vary.   Ã‚  Ã‚  Ã‚  Ã‚  Researchers are still trying to understand domestic violence, what causes it and how far back psychologically does it go. A Scottish psychoanalyst, W. Ronald D. Fairbairn, conducted studies such as these. These studies had a grand influence on British object relations and he founded the ?Object Relations Theory? and the ?Dynamic Structure of the mind? (Stringer). Similarly to Sigmund Freud?s ?id?, Fairbairn has levels of the internal unified ego that will split as a self defense mechanism in relation to the emotional pain a child is feeling (Celani 62). This unconscious strategy is necessary. The internal unified ego is composed of the self-esteem of humans and is divided into three parts ... ...Berlinger, June. ?Domestic Violence.? Nursing Aug. 2001: 58-63. Berlinger, June. ?Taking an Intimate Look at Domestic Violence.? Nursing Oct. 2004: 42-46. Berlinger, June. ?Why Don?t You Just Leave Him Nursing Apr. 1998: 34-40. Busch, Noel Bridget. ?Comparisons of Moral Reasoning Levels Between Battered and Non-battered Women.? Journal of Social Work Education 40 (2004): 57-71. Celani, David P. ?Applying Fairbairn?s Object Relations Theory to the Dynamics of the Battered Woman.? American Journal of Psychotherapy 53 (1999):60-73. Hadley, Susan M. ?Linking the Orthopedic Patient with Community Family Violence Resources.? Orthopedic Nursing 21 (2002): 19-24. Jamil, Tanvir. ?Domestic Violence.? Pulse 4 Oct. 2004: 70. Marvin, Douglas R. ?The Dynamics of Domestic Abuse.? FBI Law Enforcement Bulletin 66 (1997): 13-18. Oeltjen, Holly. ?Stop the Beating.? Women in Business 44 (1992): 20-23. Starsoneck, Leslie, and Sharon Friedman. ?Taking Exception to Asymmetrical Role-Taking: Comparing Battered and Non-battered Women.? Social Work 42 (1997): 113-115. Stringer, Kathie. Kathie?s Mental Health Review page. 22 Nov. 2004 http://www.toddlertime.com/fairburn.htm

Tragic Hero :: essays research papers fc

In Antigone Creon is the tragic hero. Throughout the story he displays the four tragic hero characteristics. He was a person of high character. Creon was the King of Thebes and he thought he was the most powerful person. Creon didn't think anything could stop him. Pride was Creon's downfall. It lead to the loss of many loved ones that were close to him. At the end Creon realized he was wrong. He tried to fix it but couldn't. What makes Creon a tragic hero in the story Antigone? Since Creon was the King of Thebes he didn't care what others would think or say. Creon thought he was above everyone. Creon immediately made the decision that Polyneices would not be buried even though he was family. He still was a traitor and because of this he would not receive the privilege of being buried. Anyone who did bury him would be killed. Creon shows he doesn't care about anyone when he finds out Antigone buried Polyneices. He tells Antigone, "And yet you dared defy the law"(I. 285). Creon doesn't even care if it is his own relative that bertays him. That person will have to pay for their action of going against the law that he provided. Creon believes he is a rock and nothing can stand in his way. He thought he was above the gods. He didn't want to believe in Teiresiasis or anything that came out of his mouth. Creon continues to think he is above the gods. To him, nothing can change his will. Not even Teiresiasis, the blind prophet who sees the future, can change his mind. "Whatever you say, you will not change my mind"(V. 299). In this example, Creon is being stubborn. Teiresiasis tells Creon that what he is doing is wrong and the gods will get him back. Creon doesn't believe this and thinks he is just a liar. The tragic flaw of pride is what over took Creon and made him come to his downfall. Creon thought what he was doing was right. To him it didn't matter that he destroyed his son's future with Antigone. It didn't matter that he was killing his own family. It also didn't make any difference that the gods tried to stop him and would get even with him. Creon thought he was at the top and in control of all. Creon realizes his tragic flaw got the best of him when he says, "Oh it is hard to give in! but it is worse To risk everything for stubborn pride"(Exodos. Tragic Hero :: essays research papers fc In Antigone Creon is the tragic hero. Throughout the story he displays the four tragic hero characteristics. He was a person of high character. Creon was the King of Thebes and he thought he was the most powerful person. Creon didn't think anything could stop him. Pride was Creon's downfall. It lead to the loss of many loved ones that were close to him. At the end Creon realized he was wrong. He tried to fix it but couldn't. What makes Creon a tragic hero in the story Antigone? Since Creon was the King of Thebes he didn't care what others would think or say. Creon thought he was above everyone. Creon immediately made the decision that Polyneices would not be buried even though he was family. He still was a traitor and because of this he would not receive the privilege of being buried. Anyone who did bury him would be killed. Creon shows he doesn't care about anyone when he finds out Antigone buried Polyneices. He tells Antigone, "And yet you dared defy the law"(I. 285). Creon doesn't even care if it is his own relative that bertays him. That person will have to pay for their action of going against the law that he provided. Creon believes he is a rock and nothing can stand in his way. He thought he was above the gods. He didn't want to believe in Teiresiasis or anything that came out of his mouth. Creon continues to think he is above the gods. To him, nothing can change his will. Not even Teiresiasis, the blind prophet who sees the future, can change his mind. "Whatever you say, you will not change my mind"(V. 299). In this example, Creon is being stubborn. Teiresiasis tells Creon that what he is doing is wrong and the gods will get him back. Creon doesn't believe this and thinks he is just a liar. The tragic flaw of pride is what over took Creon and made him come to his downfall. Creon thought what he was doing was right. To him it didn't matter that he destroyed his son's future with Antigone. It didn't matter that he was killing his own family. It also didn't make any difference that the gods tried to stop him and would get even with him. Creon thought he was at the top and in control of all. Creon realizes his tragic flaw got the best of him when he says, "Oh it is hard to give in! but it is worse To risk everything for stubborn pride"(Exodos.

Ready to Eat Cereal Case Study Essay

The value chain, Appendix B, in the RTE cereal industry consists of branded manufactures and private labels that receive their raw materials from suppliers and then distribute their product to food stores, drug stores, and mass merchandisers where the end consumer can eventually purchase the cereal product. Private labels rely on wholesalers and third-party distributors to get their product on the store shelves where the end consumer can purchase these items. In the RTE cereal industry, there were three large manufacturers, General Mills, Kellogg and Philip Morris that had a strong presence in the market. They were extremely profitable with pricing power and dominated the whole market with great market share; all this made it unattractive for potential new companies entering the RTE cereal industry. According to Appendix 2, Kellogg was one of the Big Three companies in the RTE cereal industry with an average market share of 40.25 from 1950 to 1993 in the whole industry. The industry was concentrated and the market structure for the industry was an oligopoly. The production of RTE cereal requires dough as the raw materials. Due to the fact that dough is a very common material, the power of the suppliers is low. Buyer’s switching costs were low because customers can freely choose different brands and products. Companies, in order to increase their customer’s brand loyalty to certain products, are offering coupons and promotions, which subsequently increase the buyers’ switching cost and weaken buyer’s bargaining power. There is high competition existing among RTE cereal companies; the Big Three companies had strong position and market share in the industry and are continuously introducing new brands and products causing increased competition in the industry. The high entry barrier in the RTE cereal industry was another factor that contributed to its high profitability and made the industry even more concentrated over time. The cost to manufacture RTE cereal was high to achieve a minimum efficient scale. The high cost for building a cereal plant and labor requirement made the capital requirements enormous for a new entry, contributing to our argument that the entry barriers are high. Existing Big Three companies were believed to restrain competition and new entry among themselves. They owned strong distribution channels and focused on the proper stocking, display, and promotion with supermarket chains and food stores, leaving little room for new companies to enter the industry. They emphasized the prime shelf space location in supermarket chains and food stores because the wide brand selection for customers can decrease their companies’ competitive advantage with no name brands. By guaranteeing their products maintain at the most valued center-aisle positions, providing discounts and cash payments to retailers, major companies made new entry to the industry unprofitable. In addition, existing major companies promoted coupons and in-pack premiums such as free toys and gifts to increase product sales and build brand loyalty. They also offered discounts to retailers for special treatment and promotions. This combined effort increased major companies’ dominance in the market share and the whole industry. Existing major companies also introduced a majority of new products and brands, making potential companies unable to enter the industry. At this point it looks as if the Big Three’s dominance over the RTE Cereal Industry will be everlasting; however it is hard to guarantee that a company will have sustainable competitive advantage over the industry. The industry crisis began when consumers started buying natural cereals. The Big Three did not prepare for this consumer demand, allowing other competitors to gain part of the market share. The threat of a substitute product, natural cereals, was increasing rivalry among competing firms in the RTE Cereal Industry. Although it was hard to imitate the Big Three, competitors found a way around this and found substitutes that consumers were interested in. Once private label competitors entered the market they were able to be successful in the industry by averaging only $1.90 per pound, which is significantly less expensive than the Big Three, who were charging $3.20 per pound. Private labels also had a better relationship with the grocers because of the better margins they offered to them. This was a bargaining tool Private Labels used to their advantage. Now their product was being placed in more strategically placed locations throughout the grocery store, which increased their sales and decreased the Big Three’s sales. In addition to allowing competitors into the industry, the Big Three hurt themselves by spending millions of dollars on coupons and advertising. There was little to no results that proved these methods were effective in gaining market share. For example, the RTE cereal industry spent $800 million in advertisements and trade promotions, but did not see much reward other than non-loyal consumers switching their products based on current trade promotions. Another factor of the industry crisis was due to the fact that the Big Three stopped their united front of raising prices together. The Big Three no longer made strategic moves together and in return made it easier for others to enter the industry. At the start of the RTE Cereal Industry the Big Three offered value to their customers, however over time their capabilities were possessed by many competitors, not making their organizations rare. This hurt their competitive advantage among the market. In the end the Big Three were not able to compete on cost and the willingness to pay from the consumer was declining as more substitutes came into play. Private labels faced relatively few entry barriers to become a potential threat to the branded manufacturers within the industry. The lack of product differentiation between the products of branded cereal manufacturers and private labels and the ability of private labels to offer their product at a cheaper price contributed to much of their success, Private labels success can also be attributed to the declining brand loyalty of popular branded manufacturers. Branded manufacturers relied heavily upon the distribution of promotional coupons to their consumer base, but as a result this tactic forced many customers to become price switching and brand switching sensitive that ultimately worked to the private labels favor. Furthermore, private labels success really was impacted by the higher margins their products offered to retailers, which were higher by 3% in comparison to branded manufacturers. The cost structures of private labels and branded cereal manufacturers have distinct differences, which has given private labels a strong competitive advantage in the industry. Private labels’ advertising and R&D expenses were less than branded manufacturers, which allowed the private labels to offer their product at a cheaper price. A typical cost breakdown per pound of cereal product for the Big Three cereal firms shows that 23.43% of the retail price accounted towards their advertising expenses which is about 40% less than what private labels contributed towards advertising expenditures. Ralston’s advertising expenses, the firm that dominated the private label cereal market, totaled to $0.15 per pound which about half of what other is branded cereal manufacturers contributed towards advertising. Private labels also relied on third-party distributors to deliver their product to stores. This assisted in cutting expenses by not requiring capital to create an independent distribution channel. Many private labels reduced packaging costs by packaging their cereal product in large plastic bags that proved to be a more cost-effected solution than using cardboard boxes. There are a number of things that General Mills may have been trying to accomplish when they decided to reduce prices and trade promotions in 1994, with the main reason being to improve the overall profit performance of their cereal division, Big G. Big G was the most profitable division of General Mills representing 30% of the company’s total profit. By cutting $175 million out of trade promotions and reducing the prices of their biggest brands by an average of 11%, General Mills hoped to become a more efficient firm. General Mill’s president Stephan Sanger backed up his plan for trade promotions by claiming â€Å"the 50 cents that the consumer saves by clipping a coupon can cost manufacturers as much as 75 cents.† When General Mills announced this plan to cut pricing and promotion, they believed they would be the industry leader with all other firms following suit. However, Kellogg decided to stick with their price up and spend back line. The industry was split between the two marketing strategies and bound to follow whichever approach generated more profit. By cutting $175 million from their promotion and couponing budget and reducing the prices of their biggest brands by 11%, General Mills was taking incredible risk. Cutting the promotion and couponing budget is the greatest source of the risk. The most obvious aspect of that is the loss of visibility. Customers find out about products through promotions or coupons and if those promotions and coupons are not as readily available as those of the competitor, it is hard for General Mills’ product to be as visible. Competition within breakfast cereal brands is high. Several people, often times referred to as â€Å"savers†, shop primarily based on coupons available. If coupons for General Mills’ brands are no available, these people will purchase cereal brands where coupons are available. The benefit of this decision, however, is that coupons in this industry are actually costing the company money. That being said, it is also difficult to put a price on the visibility that the coupon provides. General Mills’ decision to reduce the price of their major brands comes at a risk as well. This could be perceived by competitors as price-cutting and could start a price battle, which would end up poor for both General Mills and their competitors. As a competitor of General Mills, our expectation would be for them to have an almost wait and see strategy. We would not rush into any decision. Instead, we would see how this works for General Mills and then make a decision. By cutting promotions and coupons, General Mills is losing visibility but by cutting their prices, they are more attractive to the consumer who is already in the store. It is difficult to judge the benefit of that trade off so waiting to see what happens with General Mills is the strategy that is most appropriate for competitors. On the other hand, as General Mills, this decision has been made and they should stick to it. It boils down to the tradeoff discussed above. This seems to be a risky business decision for several reasons however this strategy should be monitored closely and reevaluated after a several months to determine the effectiveness and a plan to move forward from there.