Explore the theme of loneliness in of mice and men Essay

Whilst reading the novel, ‘Of Mice and Men’ it becomes apparent that loneliness, is one of the main themes that is carried throughout the book. This theme is symbolised in almost every character, each expressing loneliness in their own way. From Crooks, the misunderstood black man who wasn’t always discriminated against; Curley’s Wife, the only woman on the ranch who had dreams of being something much bigger, to the leading characters George and Lennie. Whether they are mentally alone or whether they have a fear of being alone, they all express loneliness. We are first introduced to the theme of loneliness when George is talking to Lennie about life on a ranch and how men on a ranch live compared to how they live, saying â€Å"Guys like us that work on ranches are the loneliest guys in the world. They got no family. They don’t belong no place†¦Ã¢â‚¬ ¦..With us it ain’t like that. We got a future. We got somebody to talk to that gives a damn about us† Lennie eagerly finishes George’s description of them saying â€Å"But not us! An’ why? Because†¦ I got you to look after me and you got me to look after me† From this conversation alone it is obvious to us that George and Lennie are on completely different wavelengths intellectually, Lennie being extremely childlike, thinking and speaking like a toddler would, and George being a father-like figure, getting frustrated when Lennie doesn’t understand him, or when he doesn’t remember something he’s been told, as Lennie pointed out, physically, they are not alone, physically, they do have each other and although Lennie isn’t intellectually able enough to understand, mentally, George is alone, travelling and holding conversations with a man who has the mental ability of a 3 year old would not be enough to take away the feeling of loneliness. Although Lennie isn’t alone, he has a subconscious fear of being alone, of being abandoned by George, and like most children, he has a constant urge to have a companion, a pet, so that even when he is ‘alone’ he has something with him, this is shown through his constant petting of animals, dead, or alive â€Å"Jus’ a dead mouse, George†¦Ã¢â‚¬ ¦ I could pet it with my thumb while we walked along† the fact that Lennie subconsciously fears being alone becomes very apparent when Crooks suggests that George may not come back, Lennie becomes very aggressive, very quickly â€Å"S’pose he gets killed or hurt so he can’t come back† Like an animal, his fear turns to anger and he moves to attack ‘He stood up and walked  dangerously towards Crooks. â€Å"Who hurt George?† he demanded’ his fear of being without George is his fear of being alone. While Lennie is with Crooks, Crooks is heard saying â€Å"S’pose you couldn’t go into the bunk house and play rummy ‘cause you was black. How’d you like that?† This connects to an earlier quote in the book, saying that in Crooks’ room, there were a pair of ‘large, gold-rimmed spectacles’ and Crooks’ mentions to Lennie that his father owned a ranch and â€Å"the white kids came to play at our place, an’ sometimes I went to play with them, and some of them was pretty nice† this shows us that Crooks’ wasn’t always discriminated against, he wasn’t always alone, in a lot of ways its worse for Crooks’ than a lot of other black men, because he isn’t so used to it, he knows what it’s like not to be alone, whereas most black men have never known anything else, Crooksà ¢â‚¬â„¢ also speaks out about his loneliness to Lennie saying â€Å"Books ain’t no good. A guy needs somebody-to be near him. A guy goes nuts if he ain’t got nobody. Don’t make no difference who the guy is, long’s he’s with you. I tell ya, I tell ya a guy gets too lonely an’ he gets sick† Crooks’ has a loneliness which is never-ending, he can’t change it. Curley’s wife is the only woman on the ranch and the only female woman in the book. Curley is possessive of her, he makes out that she belongs to him and that no one else can have her, that no one else can talk to her. Curley wants the other men on the ranch to know that they can’t communicate with her, he is threatening towards the men about his wife constantly being suspicious of them demanding they tell him where she is even if they don’t know, he worries about her being unfaithful, so gets very aggressive when he thinks she has given anyone ‘the eye’ and it can often lead to fights due to his hot-tempered personality, at one point, he thinks Lennie is laughing at the fact that he can’t find his wife and that is when a fight between them occurs, this makes the men wary of talking to her, or even, being near her. Curley doesn’t like her communicating with the other men, so she has no one to talk to. At one point when talking to Lennie she is heard saying â€Å"I never get to talk to nobody. I get awful lonely’. Because she is lonely, she always seeks attention, and the only way she knows how to get attention is through her looks. Her over-the top appearance only highlights her desperation to be noticed by someone, anyone. The only people she ever see’s refuse to talk to her because they think she’s a ‘tart’ and they see her as ‘jailbait’, they refuse to communicate  with her because they don’t want to start anything with Curley. Curleys wife’s obliviousness to what the men think of her only becomes obvious when she’s talking to Lennie, she questions him â€Å"What’s the matter with me? Ain’t I got a right to talk to nobody? Whatta they think I am, anyways?† She is oblivious to that fact that, the more she tries to get noticed the more the men on the ranch will steer clear from her. Overall, I think the loneliest character in the novel would be George, because, not only does he end up physically alone, but, throughout the book he is always alone, whether there are people around or not, he is mentally alone and with Lennie to look after and look out for he must be mentally exhausted after just one conversation with Lennie, his patience and obvious love for Lennie, is in the end the reason he is completely alone, without Lennie, without anyone, from the beginning of the book. George had loneliness coming towards him, whether he knew it or not, he was bound to end up alone, the life he claimed he ‘wanted’ the life that he said would be so much ‘easier’ a life without Lennie, by the end of the book, George is one of those men that work on a ranch, by the end of the novel George is one of the ‘loneliest guys in the world’

Laura Esquivel

Laura Esquivel’s â€Å"Like Water For Chocolate† is an epic novel set in Mexico at the turn of the twentieth century. It is a bittersweet love story between Tita and Pedro who through fate have kept them apart. The novel is divided into months and starts each chapter with a recipe from Tita’s kitchen. Throughout the novel we follow the seemingly doomed love affair between the two main protagonists of the book. Their affection for each other finally unites them in the afterlife at the end of the novel. The novel is a good example of how the Spanish culture has influenced the new world, or the American continent. Likewise, the novel also is a reflection of Spanish culture principally through its culinary practices. In pre-columbian times, the indigenous peoples of America, revered chocolate or cacao and was often even used as both currency and commodity of trade. The Olmecs, Aztecs and other ancient members of Maya culture regularly included the drink from the cacao beans in their rituals. But previously, the chocolate drink was reserved for the warriors and the elite and consumed only after and not during a   meal. When Columbus discovered America, these cacao beans were then sent back to Europe and was widely accepted there alongside other food products from America like the potato, tomato and other grains. â€Å"Like Water For Chocolate† vividly describes a typical rancheria in Mexico and here we get a glimpse of family life infused in long-held traditions as imposed by the grand matriarch. It is not uncommon for Spanish families to live in one roof even if the children are adults and married. It is quite the norm that married children and their spouses and children continue to live with either the family of the wife or husband. In the novel, Tita is forbidden to marry, being the youngest daughter, she is expected to take care of her aging parents and helping out with household tasks. A profusion of rituals and daily chores in the kitchen reveal to us readers the extent in which Spanish culture has been introduced to the new world. Spanish breakfast occurs twice in a day. The early breakfast consists of bread and coffee with milk eaten at home before one sets off to work or school. A second breakfast occurs anytime between 10 and 11 o’clock in the morning consisting of sweet rolls or biscuits and a tostada – a toasted bread smeared with butter and served on a saucer with olive oil for dipping. Sometimes the bread is served rubbed with tomato and garlic for a more robust flavor. Lunch then occurs at 2 pm which may consist of an omelette, a sausage, and finished with fruit. This repast may be eaten with coffee or beer. After lunch, the customary siesta or afternoon nap commences. This nap may last up to two hours, wherein businesses are closed, and will only open around 4pm. Thus is the unusual and laid-back attributes of the Spanish. In the evening, tapas is served, these are small servings of food or appetizers that may consist of vegetables, seafood, meat, chicken, sausages or just about anything that may be found in the kitchen. This hours are spent eating and drinking wine. Tapas bars abound in the more urban areas in Spain and are regular fare for the citizenry. By 11pm, a real dinner is served. A hearty full-course of salad, soup, entrà ©e, and dessert followed by coffee or an aperitif caps the day. Then off to bed goes the typical Spaniard in what was a typical day spent. The culinary traditions of Spain are steeped in their culture and daily life. The influence of these are far and wide covering the entire world as Spain set out to far reaches in search of wealth and territory. In their vast colonies, Spain brought these traditions with them and in turn imposed them on the local populace but also inter-mingling the local practices in turn. It is safe to conclude therefore that Spanish culinary traditions have been both recipient and donor. For Spain adapted to new world ingredients and manners of cooking. The novel masterfully exploits the culinary richness of Spain and makes these the springboard on which the plot so brilliantly revolves around. The recipes we read in the book are presented in such that their preparation all the way to their consumption is woven into the lives and motives of the characters involved. The recipe for chocolate and rose petals illustrates this. When Tita cooks the rose petals into the chocolate she is consumed with passion and unrelenting desire for Pedro – and eventually transforms all those who imbibe the drink into a frenzy of heat, lust, love and desire as well. Source: Davidson, Alan, The Oxford Companion To Food, 1999   

Globalization and international trade. Is more international trade Essay

Globalization and international trade. Is more international trade socially beneficialWould it be possible to agree, unanimously, that globalization is a bad i - Essay Example f computer technology, who represent the â€Å"Electronic Hurd† led by Wall Street and (c) the policy of â€Å"globulation† whereby dictatorial states are forced to democratize through pressure applied by the international community. According to Curran and Park, the increased networking due to globalization makes it â€Å"a process that is increasing international dialogue, empowering minorities and building progressive solidarity.† (Curran and Park, 2000:10). In the countries of east Europe where deregulation and the introduction of capitalistic modes of private enterprise through introduction of free trade have eroded the traditional socialistic framework that has existed in these countries.(Richards and French, 1996: 41). According to Thomas Friedman, globalization is the â€Å"inexorable integration of markets, nation states and technologies†¦..the spread of free market capitalism to virtually every country in the world.† (Friedman, 2000: 7-8). Waters views it as a â€Å"social process† in which the limitations imposed by geography are receding (Waters, 1995:3). He sees a social transformation taking place, whereby the economic and class inequalities that existed between countries and created material and power exchanges is now steadily being replaced by relationships that are based upon common symbols and values, shared tastes and preferences – a cultural transformation of social life. (Waters 1995:124). In reference to international trade facilitated by globalization and the opening up of borders, Mittelman refers to globalization as a historical transformation - â€Å"a political response to the expansion of market power† resulting in a transformation â€Å"in the economy, of livelihoods and modes of existence† (Mittelman, 2000: 6) and McMichael corroborates this view, seeing the process of global integration taking place on the basis of â€Å"market rule on a global scale†(McMichael, 2000:149). Friedman (2000) has highlighted some of the advantages of

Significance of Effective Writing Essay Example | Topics and Well Written Essays - 750 words

Significance of Effective Writing - Essay Example He has huge responsibilities on his shoulders which he accomplishes tactfully and with outstanding organizational skills. Several duties such as organizing and arranging training sessions for the militia and selecting them for higher missions are part of the job of human resource management in the military. Hence effective writing plays a major role in building up an impression for the new and the old members of the community and also builds up a rapport with the clients who are invited not only to welcome the staff but also drill them for their future duties. Establishing personal relations with the media personnel also requires that written communication be as effective as possible. Some of the main components of effective writing are, that the opening paragraph which makes up for the introduction is very smooth and beguiling, the purpose of the content is clearly defined and the people addressed are accommodated according to their needs. The reason why effective writing becomes ve ry important for the above mentioned jobs and many more responsibilities is that it represents a marked difference between the professional and a non professional institution. It can be compared to record keeping whereby accountants maintain facts and figures to keep a track on the constant changes that occur on a daily basis. This is eminent to note because then it is the effective writing of the human resource management which forms the backbone of the community helping them to be recognized wherever they go. Several letters and transcripts need forwarding to higher authorities which cannot be done without proper evaluation and editing. These evaluations need to be apt and flawless. The perfection sought by the establishment is an indication that there are higher expectations from this position. What is written is mostly kept as a record which can be visited anytime in the future and questioned for its authenticity. Since military human resource management is the most important co mponent of the Army it works as a strategic facilitator for the leadership of the Army. Hence the language used needs to be persuasive and according to the moves made by the army to defend its mission. It is for this reason that the military HRMs are provided training in effecting writing courses so that they do not fall short of any skills needed to represent the army. It is the duty of all the members of the community to facilitate and strengthen the system. As mentioned above there are moments when the Army leadership requires instant memos to be sent to others. Considering the shortage of time due to high profiles it is the HRM which ensures that all of their needs are fulfilled. Effective writing is not as tough as it may. Nevertheless it is an art which can be learnt through practice because it needs a lot of perfection and no excuse for any delay. It is an unexpected and untimed task for which the human resource manager needs to be ready at all times. There is absolutely no w ay that one can do away with writing being a part of the huge network. Hence there should be no delays nor any mishaps occurring in the process. What exactly does it mean to be effective in writing? Effectiveness is a quality which works as a guiding light for the others who come across it. It is a

Fiction ( Creaton from your imagination) Essay Example | Topics and Well Written Essays - 1750 words

Fiction ( Creaton from your imagination) - Essay Example His life is all the more inspirational for me as his favorite sport is the same that is mine – cricket. In fact we do play together every now and then whenever we get time or it should be, whenever he gets time from his busy routine and hectic life. My uncle has had his due share of problems and struggles during his life. He has seen the highs and lows of life and I can safely conclude that he is all rounder by all measures of imagination. He has witnessed success when he was down in the dumps and face humiliation in the form of losses, both in terms of financial value as well as psychological pressures, but it is his genius that he never turned back on his principles and strong ideological limits and thus defeated whatever came in his way. His developmental process is such that he has only looked at the brighter side of things and never touched the negative as according to him, doing the latter can reap nothing but misery for both the individual as well as the people related with him or her. Thus he molded his life in such a manner which would only provide him solace and peace of mind whenever he was in hot waters and nothing right came across him. He has seen financial losses that took away quite a huge sum of his bank balanc e in late 1980s when he was doing a roaring business of textile designing yet he did not succumb under pressure from people related to him and the near and dear ones advised him to divest whatever was left in the business. He continued and marched along at the same speed, so much so that now he has his own textile factory located in the outskirts of the city. He has been a model of inspiration for one and all and I can safely call him my mentor whenever I run into any problem in my day to day life. His advice is always that has brought a new lease of life in me and helped me see things in a more positive fashion rather than just sitting and sulking over the

Financial accounting College Research Paper Example | Topics and Well Written Essays - 2500 words

Financial accounting College - Research Paper Example But in reality the interest cost is tax deductible thereby giving an edge for their inclusion to create leverage to a certain point. This point of view was first espoused in theModigliani-Miller theorem, proposed byFranco ModiglianiandMerton Miller, which is the very foundation of further thought process on capital structure, even if it is purely theory based as the assumption of tax neutrality and risk neutrality. The theorem states that, in a perfect market, how a firm is financed is irrelevant to its value. On the contrary Market timing hypothesis states that capital structure is the outcome of the historical cumulative timing of the market by managers (Baker, Malcolm P.; Wurgler, Jeffrey p. 57). An analysis of capital structure is undertaken to assess the health of the organisation from the above mentioned points of view. Overall objective of ideal capital structure remains to maximise shareholders wealth without inflicting risk on the enterprise beyond acceptable levels. Financial Leverage- So long as the cost of funds is low ROE (Return on Equity) is high compared to ROA (Return on Assets). If and when the cost of debt rises beyond threshold levels the ROE falls compared to ROA thereby making debt funds disadvantageous for the equity share holders. "Leverage is non stationary, and declines with past profitability. The firm may hold a compensating cash balance while borrowing (at a higher rate) through the credit line." (DeMarzo Peter M., Sannikov Yuliy, p 1) Risk Analysis- Risk is directly proportional to the proportion of debt in capital structure. As debt inherently carries fixed servicing and repayment obligations, adverse earning conditions increase credit risk which rises in the same direction as the quantum of debt in relation to equity funds. Similarly low risk is associated with high equity (low debt) funds of an organisation. Even in periods of lower earnings, the existence of the organisation will be at lower risk as compared to an organisation with higher debt capital. Debt to Capital ratio (average debt / average assets) provides the slice of assets financed through debt. Debt to Equity ratio (average debt / equity base) shows the share of debt in capital structure. What is optimal capital structure There are no definite answers. It varies from industry to industry. Economic cycle of the industry being examined and within the industry the business cycle of the organisation would determine the best mix of capital structure so as to meet the overall objective of

Post War Era, 1946-1954 - Written Assignment Essay

Post War Era, 1946-1954 - Written Assignment - Essay Example ype, represents a fusion of jazz, blues, and boogie-woogie in a swinging upbeat designed to offer some comic relief in substance and rhythm, meaningfully and emphatically conveyed through percussions. Hoochie Coochie Man, on the contrary, features a more relaxed tempo and appears to have much inclination to romantic subjects with some degree of sophistication. In his performance, Muddy Waters was able to deliver a content peculiar with the black culture during post-war era. The need to tone down and experience soothing transition readily builds within the atmosphere and though the jazz level of the song leans towards neoclassicism, it is still one that could do justice to an unpopular struggle of uniqueness in which notes and succession remain unpredictable though artfully crafted to encourage slow yet sensational moves in response. As rendered through percussive selection, the music in Hoochie Coochie Man had been arranged to appropriately coincide with the overall composition such that it forms a trend in classic blues that was later to influence the modern rhythm and blues with flexible style and confidence. Choo Choo Ch’ Boogie seeks compatibility with those whose mood is up for raving and dancing in quick-paced steps and boogie fashion. An audience under rock and roll framework would most likely acquire fondness to blend with it, having a nature similar to the original preference. While Choo Choo Ch’ Boogie would normally target to have frolicking listeners, Hoochie Coochie Man is equivalently expected to play in front of a somewhat nostalgic or maudlin crowd hoping to be mildly stirred as thoughts dissolve into the blues with a little troubled lightness. It enables its audience to drift into a dimension of soul while maintaining a significant awareness of the reality. Being a mood music of its kind, either Choo Choo Ch’ Boogie or Hoochie Coochie Man brings about an attitude which each audience might not know they’d be taken into on the process. As

U.S. based Healthcare Organization Case Study Example | Topics and Well Written Essays - 1000 words

U.S. based Healthcare Organization - Case Study Example long-term goals that are meant to help the people in the United States and in order to accomplish the objectives it has laid down various strategies that involve its staff and management in heading in the right direction. The United Healthcare Group is one of the leading health insurers that offer a diverse number of plans and services to individuals and group customers. This enables them to reach a wide variety of customers and their different types of needs. They are able to access services and doctors that offer high quality services that benefit their wants and needs. The United Healthcare Incorporation is ready and willing to address the healthcare needs of the citizens of the United States and has objectives aimed at efficiently benefiting them in the long term. It provides health benefits segments and plans and also Medicare, Medicaid and vision that I supplemental and dental options as well. This incorporation has come up with programs that include prevention and management of diseases such as diabetes and Hepatitis C (Holtzman, Glass, Averhoff 2012). This will prevent harmful diseases from being a crisis in the long term because they will be prevented and managed as early as now, for instanc e diabetes. It also provides a variety of cost effective managed care alternatives. These alternatives are aims at meeting the needs of organizations and fit into their budget. He broad network of contracted providers wishes to offer help to the people whether in groups, individuals or community as they also include a community plan. The community plan also has a Tenn Care Medicaid Plan that supports adults, pregnant women and children as well as the elderly and those with disabilities and meets income requirements. The United Healthcare Incorporation has various strategic plans that are aimed at promoting the incorporation’s network growth and ensuring that they continue offering the best of their services to their customers. The clients have the opportunity to

The !Kung Bushmen of the Kalahari Desert Essay Example for Free

The !Kung Bushmen of the Kalahari Desert Essay The !Kung Bushmen of Botswana inhabit the semi-arid northwest region of the Kalahari Desert. Their average annual rainfall is poor, only six to nine inches a year. Field work for this article written by Richard B. Lee, was done in the Dobe area, which is a line of eight permanent waterholes. The Dobe area has a population of 466 Bushmen. This includes 379 permanent residents living in independent camps or associated with Bantu cattle posts, as well as 87 seasonal visitors. The Bushmen living in independent camps lack firearms, livestock, and agriculture. The !Kung are entirely dependent upon hunting and gathering for subsistence. Although Dobe-area !Kung have had some contact with outsiders since the 1880s, the majority of them continue to hunt and gather because there is no viable alternatives locally available to them. During the dry season (May-October) the entire population is clustered around the water wells. There are camps around each well, which is an open aggregate of cooperating persons which changes in size and composition from day to day. The members move out each day to hunt and gather, and return in the evening to pool the collected foods in such a way that every person present receives an equitable share. Vegetable foods comprise from 60 to 80 percent of the total diet by weight, and collecting involves two or three days of work per woman per week. The major contribution of the male bushmen to their diet is the hunting of medium and large game. Although mens and womens work input is roughly equivalent in terms of man/day of effort, the women provide two to three times as much food by weight as the men. For the greater part of the year, food is plentiful and easily collected. Although during the end of the dry season people have to hike farther for food, the food still remains constant. The most important food is the mongongo nut. This nut accounts for 50 percent of the vegetable diet by weight. Although tens of thousands of pounds of these nuts are eaten every year, thousands more are left on the ground to rot. Also, a diet based on mongongo nut is more beneficial health-wise as cereal crops such as maize or rice. In addition to the mongongo, the Bushmen have available eighty-four other species of fruits, berries, and melons, and another thirty species of roots and bulbs. There are 54 species of animals classified as edible by the Bushmen, but only 17 species were hunted on a regular basis. All of the !Kungs food supply can be obtained in a six-mile radius of camp, and usually takes a full day to travel the twelve mile round-trip. The !Kung Bushmen of the Dobe area live a long productive, and seemingly satisfying lives. Longevity compares favorably to any industrialized society. The old people are fed and cared for by their children and grandchildren. The old people are also actively involved indecision making and ritual curing. Young people are not expected to provide food regularly until they are married. Girls usually marry between the ages of fifteen and twenty, and boys about five years later. It is not unusual to find healthy, active teenagers visiting from camp to camp while their older relatives provide food for them. The people in the age group of twenty to sixty support the nonproductive and old. These productive members work about two and a half days a week, about twelve to nineteen hours a week to get food. A woman gathers enough food in one day to feed her family for three days, and spends the rest of the time relaxing and enjoying her leisure time. The men hunt for a week and then do nothing for two or three weeks and spend their leisure time visiting and dancing. In a camp with five or more hunters, two or three are actively hunting while others are inactive. The amount and the type of food the !Kung hunt and gather is sufficient enough calorie-wise to supply all the nutrients required for good health.

Coffee and Starbucks Essay Example for Free

Coffee and Starbucks Essay had enjoyed phenomenal growth and become one of the great retailing stories of recent history by making exceptional coffee drinks and selling dark-roasted coffee beans and coffee-making equipment that would allow customers to brew an exceptional cup of coffee at home. The Starbucks brand was regarded as one of the best known and most potent brand names in America and the company had firmly established itself as the dominant retailer, roaster, and brand of specialty coffee in North America. It already had over 1,500 stores in North America and the Pacific Rim and was opening new ones at a rate of more than one per day. Sales in fiscal year 1997 were a record $967 million and profits reached an all-time high of $57. 4 million. The companys closest competitor had fewer than 300 retail locations. And since going public in 1992, Starbucks has seen its stock price increase nearly ninefold. Exhibit 1 contains a summary of Starbucks key performance statistics for the 1992–97 period. Company Background Starbucks began in 1971 when three academics—English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker—opened a store called Starbucks Coffee, Tea, and Spice in the touristy Pikes Place Market in Seattle. The three partners shared a love of fine coffees and exotic teas and believed they could build a clientele in Seattle much like that which had already emerged in the San Francisco Bay area. Each invested $1,350 and borrowed another $5,000 from a bank to open the Pikes Place store. Baldwin, Siegel, and Bowker chose the name Starbucks in honor of Starbuck, the coffee-loving first mate in Herman Melvilles Moby Dick(so company legend has it), and because they thought the name evoked the romance of the high seas and the seafaring tradition of the early coffee traders. The new companys logo, designed by an artist friend, was a two-tailed mermaid encircled by the stores name. The inspiration for the Starbucks enterprise was a Dutch immigrant, Alfred Peet, who had begun importing fine arabica coffees into the United States during the 1950s. Peet viewed coffee as a fine winemaker views grapes, appraising it in terms of country of origin, estates, and harvests. Peet had opened a small store, Peets Coffee and Tea, in Berkeley, California, in 1966 and had cultivated a loyal clientele. Peets store specialized in importing fine coffees and teas, dark-roasting its own beans the European way to bring out their full flavor, and teaching customers how to grind the beans and make freshly brewed coffee at home. Baldwin, Siegel, and Bowker were well acquainted with Peets expertise, having visited his store on numerous occasions and spent many hours listening to Peet expound on quality coffees and the importance of proper bean-roasting techniques. All three were devoted fans of Peet and his dark-roasted coffees, going so far as to order their personal coffee supplies by mail from Peets. The Pikes Place store featured modest, hand-built nautical fixtures. One wall was devoted to whole-bean coffees; another had shelves of coffee products. The store did not offer fresh-brewed coffee by the cup, but samples were sometimes available for tasting. Initially, Siegel was the only paid employee. He wore a grocers apron, scooped out beans for customers, extolled the virtues of fine, dark-roasted coffees, and functioned as the partnerships retail expert. The other two partners kept their day jobs but came by at lunch or after work to help out. During the start-up period, Baldwin kept the books and developed a growing knowledge of coffee; Bowker served as the magic, mystery, and romance man. 1 The store was an immediate success, with sales exceeding expectations, partly because of a favorable article in the Seattle Times. In the early months, each of the founders traveled to Berkeley to learn more about coffee roasting from their mentor, Alfred Peet, who urged them to keep deepening their knowledge of coffees and teas. For most of the first year, Starbucks ordered its coffee beans from Peets, but then the partners purchased a used roaster from Holland and set up roasting operations in a nearby ramshackle building. Baldwin and Bowker experimented with Alfred Peets roasting procedures and came up with their own blends and flavors. A second Starbucks store was opened in 1972. By the early 1980s, the company had four Starbucks stores in the Seattle area and could boast of having been profitable every year since opening its doors. But the roles and responsibilities of the cofounders underwent change. Zev Siegel experienced burnout and left the company to pursue other interests. Jerry Baldwin took over day-to-day management of the company and functioned as chief executive officer; Gordon Bowker remained involved as an owner but devoted most of his time to his advertising and design firm, a weekly newspaper he had founded, and a microbrewery he was launching (the Redhook Ale Brewery). Howard Schultz Enters the Picture In 1981, Howard Schultz, vice president and general manager of U. S. operations for Hammarplast—a Swedish maker of stylish kitchen equipment and housewares—noticed that Starbucks was placing larger orders than Macys was for a certain type of drip coffeemaker. Curious to learn what was going on, he decided to pay the company a visit. The morning after his arrival in Seattle, Schultz was escorted to the Pikes Place store by Linda Grossman, the retail merchandising manager for Starbucks. A solo violinist was playing Mozart at the door, with his violin case open for donations. Schultz immediately was taken by the powerful and pleasing aroma of the coffees, the wall displaying coffee beans, and the rows of red, yellow, and black Hammarplast coffeemakers on the shelves. As he talked with the clerk behind the counter, the clerk scooped out some Sumatran coffee beans, ground them, put the grounds in a cone filter, poured hot water over the cone, and shortly handed Schultz a porcelain mug filled with the freshly brewed coffee. After three sips, Schultz was hooked. He began asking the clerk and Grossman questions about the company, about coffees from different parts of the world, and about the different ways of roasting coffee. Next, Schultz met with Jerry Baldwin and Gordon Bowker, whose offices overlooked the companys coffee-roasting operation. The atmosphere was informal. Baldwin, dressed in a sweater and tie, showed Schultz some new beans that had just come in from Java and suggested they try a sample. Baldwin did the brewing himself, using a glass pot called a French press. Bowker, a slender, bearded man with dark hair and intense brown eyes, appeared at the door and the three men sat down to talk about Starbucks. Schultz was struck by their knowledge of coffee, their commitment to providing high-quality products, and their passion for educating customers about the merits of dark-roasted coffees. Baldwin told Schultz, We dont manage the business to maximize anything other than the quality of the coffee. 2 Starbucks purchased only the finest arabica coffees and put them through a meticulous dark-roasting process to bring out their full flavors. Baldwin explained that the cheap robusta coffees used in supermarket blends burn when subjected to dark roasting. He also noted that the makers of supermarket blends prefer lighter roasts because they allow higher yields (the longer a coffee is roasted, the more weight it loses). Schultz was struck by the business philosophy of the two partners. It was clear from their discussions that Starbucks stood not just for good coffee, but rather for the dark-roasted flavor profiles that the founders were passionate about. Top-quality, fresh-roasted, whole-bean coffee was the companys differentiating feature and a bedrock value. It was also clear to Schultz that Starbucks was strongly committed to educating its customers to appreciate the qualities of fine coffees, rather than just kowtowing to mass-market appeal. The company depended mainly on word-of-mouth to get more people into its stores, then relied on the caliber of its product to give patrons a sense of discovery and excitement. It built customer loyalty cup by cup as buyers of its products developed their palates. On his trip back to New York the next day, Howard Schultz could not stop thinking about Starbucks and what it would be like to be a part of the Starbucks enterprise. Schultz recalled, There was something magic about it, a passion and authenticity I had never experienced in business. 3 Living in the Seattle area also had a strong appeal. By the time Schultz landed at Kennedy Airport, he knew he wanted to go to work for Starbucks. Though there was nothing in his background (see Exhibit 2) that prepared him for the experience, Schultz asked Baldwin at the first opportunity whether there was any way he could fit into Starbucks. The two quickly established an easy, comfortable rapport, but it still took a year of numerous meetings and a lot of convincing to get Baldwin, Bowker, and their silent partner from San Francisco to agree to hire Howard Schultz. Schultz pursued a job at Starbucks far more vigorously than Starbucks pursued him. There was some nervousness at Starbucks about bringing in an outsider, especially a high-powered New Yorker, who had not grown up with the values of the company. Nonetheless, Schultz continued to press his ideas about the tremendous potential of expanding the Starbucks enterprise outside Seattle and exposing people all over America to Starbucks coffee—arguing there had to be more than just a few thousand coffee lovers in Seattle who would like the companys products. Schultz believed that Starbucks had such great promise that he offered to take a salary cut in exchange for a small equity stake in the business. But the owners worried that by offering Schultz a job as head of marketing they would be committing themselves to a new direction for Starbucks. At a spring 1982 meeting with the three owners in San Francisco, Schultz once again presented his vision for opening Starbucks stores across the United States and Canada. He flew back to New York thinking a job offer was in the bag. But the next day Baldwin called Schultz and indicated that the owners had decided against hiring him because geographic expansion was too risky and because they did not share Schultzs vision for Starbucks. Schultz was despondent; still, he believed so deeply in Starbucks potential that he decided to make a last-ditch appeal. He called Baldwin back the next day and made an impassioned, though reasoned, case for why the decision was a mistake. Baldwin agreed to reconsider. The next morning Baldwin called Schultz and told him the job of heading marketing and overseeing the retail stores was his. In September 1982, Howard Schultz took on his new responsibilities at Starbucks. Starbucks and Howard Schultz: The 1982–85 Period In his first few months at Starbucks, Schultz spent most of his waking hours in the four Seattle stores—working behind the counters, tasting different kinds of coffee, talking with customers, getting to know store personnel, and educating himself about the retail aspects of the coffee business. By December, Jerry Baldwin decided that Schultz was ready for the final part of his training—roasting coffee. Schultz spent a week at the roaster examining the color of the beans, listening for the telltale second pop of the beans during the roasting process, learning to taste the subtle differences among Baldwin and Bowkers various roasts, and familiarizing himself with the roasting techniques for different beans. Meanwhile, he made a point of acclimating himself to the informal dress code, blending in with the culture, and gaining credibility and building trust with colleagues. Making the transition from the high-energy, coat-and-tie style of New York to the more casual ambience of the Pacific Northwest required a conscious effort on Schultzs part. One day during the busy Christmas season that first year, Schultz made real headway in gaining the acceptance and respect of company personnel at the Pikes Place store. The store was packed and Schultz was behind the counter ringing up sales when someone shouted that a customer had just headed out the door with some stuff—two expensive coffeemakers it turned out, one in each hand. Without thinking, Schultz leaped over the counter and chased the thief up the cobblestone street outside the store, yelling Drop that stuff! Drop it! The thief was startled enough to drop both pieces and run away. Schultz picked up the merchandise and returned to the store, holding up the coffeemakers like trophies. Everyone applauded. When Schultz returned to his office later that afternoon, his staff had strung up a banner that read Make my day. 4 Schultz was overflowing with ideas for the company. Early on, he noticed that first-time customers sometimes felt uneasy in the stores because of their lack of knowledge about fine coffees and because store employees sometimes came across as a little arrogant. Schultz worked with store employees on developing customer-friendly sales skills and produced brochures that made it easy for customers to learn about fine coffees. Schultzs biggest idea for Starbucks future came during the spring of 1983 when the company sent him to Milan, Italy, to attend an international housewares show. While walking from his hotel to the convention center, Schultz spotted an espresso bar and went inside to look around. The cashier beside the door nodded and smiled. The barista (counter worker) greeted Howard cheerfully, then gracefully pulled a shot of espresso for one customer and handcrafted a foamy cappuccino for another, all the while conversing merrily with those standing at the counter. Schultz judged the baristas performance as great theater. Just down the way on a side street, he entered an even more crowded espresso bar, where the barista, whom he surmised to be the owner, was greeting customers by name; people were laughing and talking in an atmosphere that plainly was comfortable and familiar. In the next few blocks, he saw two more espresso bars. When the trade show concluded for the day, Schultz walked the streets of Milan exploring espresso bars. Some were stylish and upscale; others attracted a blue-collar clientele. What struck Schultz was how popular and vibrant the Italian coffee bars were. Most had few chairs, and it was common for Italian opera to be playing in the background. Energy levels were typically high, and the bars seemed to function as an integral community gathering place. Each one had its own unique character, but they all had a barista who performed with flair and exhibited a camaraderie with the customers. Schultz was particularly struck by the fact that there were 1,500 coffee bars in Milan, a city about the size of Philadelphia, and a total of 200,000 in all of Italy. His mind started churning. Schultzs first few days in Milan produced a revelation: The Starbucks stores in Seattle completely missed the point. Starbucks, he decided, needed to serve fresh-brewed coffee, espresso, and cappuccino in its stores (in addition to beans and coffee equipment). Going to Starbucks should be an experience, a special treat; the stores should be a place to meet friends and visit. Re-creating the Italian coffee-bar culture in the United States could be Starbucks differentiating factor. Schultz remained in Milan for a week, exploring coffee bars and learning as much as he could about the Italian passion for coffee drinks. In one bar, he heard a customer order a caffe latte and decided to try one himself—the barista made a shot of espresso, steamed a frothy pitcher of milk, poured the two together in a cup, and put a dollop of foam on the top. Schultz concluded that it was the perfect drink, and thought to himself, No one in America knows about this. Ive got to take it back with me. 5 Schultzs Growing Frustration On Schultzs return from Italy, he shared his revelation and ideas for modifying the format of Starbucks stores with Baldwin and Bowker. But instead of winning their approval, Schultz encountered strong resistance. Baldwin and Bowker argued that Starbucks was a retailer, not a restaurant or bar. They feared that serving drinks would put them in the beverage business and dilute the integrity of Starbucks mission as a coffee store. They pointed out that Starbucks was a profitable small, private company and there was no reason to rock the boat. But a more pressing reason for their resistance emerged shortly—Baldwin and Bowker were excited by an opportunity to purchase Peets Coffee and Tea. The acquisition took place in 1984; to fund it, Starbucks had to take on considerable debt, leaving little in the way of financial flexibility to support Schultzs ideas for entering the beverage part of the coffee business or expanding the number of Starbucks stores. For most of 1984, Starbucks managers were dividing their time between their operations in Seattle and the Peets enterprise in San Francisco. Schultz found himself in San Francisco every other week supervising the marketing and operations of the five Peets stores. Starbucks employees began to feel neglected and, in one quarter, did not receive their usual bonus due to tight financial conditions. Employee discontent escalated to the point where a union election was called, and the union won by three votes. Baldwin was shocked at the results, concluding that employees no longer trusted him. In the months that followed, he began to spend more of his energy on the Peets operation in San Francisco. It took Howard Schultz nearly a year to convince Jerry Baldwin to let him test an espresso bar. After Baldwin relented, Starbucks sixth store, which opened in April 1984, became the first one designed to sell beverages and the first one in downtown Seattle. Schultz asked for a 1,500-square-foot space to set up a full-scale Italian-style espresso bar, but Jerry agreed to allocating only 300 square feet in a corner of the new store. There was no pre-opening marketing blitz and no sign announcing Now Serving Espresso—the lack of fanfare was part of a deliberate experiment to see what would happen. By closing time on the first day, some 400 customers had been served, well above the 250-customer average of Starbucks best-performing stores. Within two months the store was serving 800 customers per day. The two baristas could not keep up with orders during the early morning hours, resulting in lines outside the door onto the sidewalk. Most of the business was at the espresso counter; sales at the regular retail counter were only adequate. Schultz was elated by the test results; his visits to the store indicated that it was becoming a gathering place and that customers were pleased with the beverages being served. Schultz expected that Baldwins doubts about entering the beverage side of the business would be dispelled and that he would gain approval to take Starbucks to a new level. Every day he went into Baldwins office to show him the sales figures and customer counts at the new downtown store. But Baldwin was not comfortable with the success of the new store; he believed that espresso drinks were a distraction from the core business of selling fine arabica coffees at retail and rebelled at the thought that people would see Starbucks as a place to get a quick cup of coffee to go. He adamantly told Schultz, Were coffee roasters. I dont want to be in the restaurant business . . . Besides, were too deeply in debt to consider pursuing this idea. 6 While he didnt deny that the experiment was succeeding, he didnt want to go forward with introducing beverages in other Starbucks stores. Schultzs efforts to persuade Baldwin to change his mind continued to meet strong resistance, although to avoid a total impasse Baldwin finally did agree to let Schultz put espresso machines in the back of two other Starbucks stores. Over the next several months, Schultz—at the age of 33—made up his mind to leave Starbucks and start his own company. His plan was to open espresso bars in high-traffic downtown locations that would emulate the friendly, energetic atmosphere he had encountered in Italian espresso bars. Schultz had become friends with a corporate lawyer, Scott Greenberg, who helped companies raise venture capital and go public. Greenberg told Schultz he believed investors would be interested in providing venture capital for the kind of company Schultz had in mind. Baldwin and Bowker, knowing how frustrated Schultz had become, supported his efforts to go out on his own and agreed to let him stay in his current job and office until definitive plans were in place. Schultz left Starbucks in late 1985. Schultzs Il Giornale Venture Ironically, as Schultz was finalizing the documents for his new company, Jerry Baldwin announced he would invest $150,000 of Starbucks money in Schultzs coffee-bar enterprise, thus becoming Schultzs first investor. Baldwin accepted Schultzs invitation to be a director of the new company, and Gordon Bowker agreed to be a part-time consultant for six months. Bowker urged Schultz to make sure that everything about the new stores—the name, the presentation, the care taken in preparing the coffee—was calculated to lead customers to expect something better than competitors offered. Bowker proposed that the new company be named Il Giornale (pronounced ill jor-nahl-ee ) Coffee Company, a suggestion that Schultz accepted. In December 1985, Bowker and Schultz made a trip to Italy during which they visited some 500 espresso bars in Milan and Verona, observing local habits, taking notes about decor and menus, snapping photographs, and videotaping baristas in action. Greenberg and Schultz then drew up plans to raise an initial $400,000 in seed capital and another $1. 25 million in equity—enough to launch at least eight espresso bars and prove the concept would work in Seattle and elsewhere. The seed capital was raised by the end of January 1986, primarily from Starbucks and two other investors who believed in Schultz and his ideas, but it took Schultz until the end of the year to raise the remaining $1. 25 million. He made presentations to 242 potential investors, 217 of whom said no. Many who heard Schultzs hour-long presentation saw coffee as a commodity business and thought that Schultzs espresso-bar concept lacked any basis for sustainable competitive advantage (no patent on dark roast, no advantage in purchasing coffee beans, no way to bar the entry of imitative competitors). Some noted that consumption of coffee had been declining since the mid-1960s, others were skeptical that people would pay $1. 50 or more for a cup of coffee, and still others were turned off by the companys hard-to-pronounce name. Being rejected by so many potential investors was disheartening (some who listened to Schultzs presentation ? didnt even bother to call him back; others refused to take his calls). Nonetheless, Schultz continued to display passion and enthusiasm in making his pitch and never doubted that his plan would work. He ended up raising $1. 65 million from about 30 investors; most of this money came from nine people, five of whom became directors of the new company. One of Howard Schultzs earliest moves during the start-up process was to hire Dave Olsen, who in 1974 had opened a coffee bar, Cafe Allegro, near the busiest entrance to the University of Washington campus. Olsen was a long-standing Starbucks customer, having discovered the quality of Starbucks coffee beans, gotten to know the owners, and worked with them to develop a custom espresso roast for use in his cafe. Olsens successful Cafe Allegro had become known for cafe au lait, a concoction equivalent to the Italian caffe latte. When Olsen heard of Schultzs plans for Il Giornale, he called Schultz and expressed an interest in being part of the new company—he was intrigued by the Italian coffee-bar concept and was looking for a more expansive career opportunity. Olsen not only had coffee expertise but also had spent 10 years in an apron behind the counter at Cafe Allegro. Schultz immediately picked up on the synergy between him and Olsen. His own strengths were in forming and communicating a vision, raising money, finding good store locations, building a brand name, and planning for growth. Olsen understood the nuts and bolts of operating a retail cafe, hiring and training baristas, and making and serving good drinks. Plus, Olsen was fun to work with. Schultz put Olsen in charge of store operations, made him the coffee conscience of the company, and gave him the authority to make sure that Il Giornale served the best coffee and espresso possible. The first Il Giornale store opened in April 1986. It had a mere 700 square feet and was located near the entrance of Seattles tallest building. The decor was Italian, the menu contained Italian words, and Italian opera music played in the background. The baristas wore white shirts and bow ties. All service was stand-up—there were no chairs. National and international papers hung from rods on the wall. By closing time on the first day, 300 customers had been served, mostly in the morning hours. Schultz and Olsen worked hard to make sure that all the details were executed perfectly. For the first few weeks, Olsen worked behind the counter during the morning rush. But while the core idea worked well, it soon became apparent that several aspects of Il Giornales format werent appropriate for Seattle. Some customers objected to the incessant opera music, others wanted a place to sit down, and many didnt understand the Italian words on the menu. These mistakes were quickly fixed, without compromising the style and elegance of the store. Within six months, Il Giornale was serving more than 1,000 customers a day and regulars had learned how to pronounce the companys name. Because most customers were in a hurry, it became apparent that speedy service was a competitive advantage. Six months after opening the first store, Il Giornale opened a second store in another downtown building. A third store was opened in Vancouver, British Columbia, in April 1987. Vancouver was chosen to test the transferability of the companys business concept outside Seattle. To reach his goal of opening 50 stores in five years, Schultz needed to dispel his investors doubts about geographic expansion. By mid-1987 sales at the three stores were equal to $1. 5 million annually. Il Giornale Acquires Starbucks In March 1987 Jerry Baldwin and Gordon Bowker decided to sell the whole Starbucks operation in Seattle—the stores, the roasting plant, and the Starbucks name. Bowker wanted to cash out his coffee-business investment to concentrate on his other enterprises; Baldwin, who was tired of commuting between Seattle and San Francisco and wrestling with the troubles created by the two parts of the company, elected to concentrate on the Peets operation. As he recalls, My wife and I had a 30-second conversation and decided to keep Peets. It was the original and it was better. 7 Schultz knew immediately that he had to buy Starbucks; his board of directors agreed. Schultz and his newly hired finance and accounting manager drew up a set of financial projections for the combined operations and a financing package that included a stock offering to Il Giornales original investors and a line of credit with local banks. While a rival plan to acquire. Starbucks was put together by another Il Giornale investor, Schultzs proposal prevailed and within weeks Schultz had raised the $3. 8 million needed to buy Starbucks. The acquisition was completed in August 1987. After the papers were signed, Schultz and Scott Greenberg walked across the street to the first Il Giornale store, ordered themselves espresso drinks, and sat at a table near the window. Greenberg placed the hundred-page business plan that had been used to raise the $3. 8 million between them and lifted his cup in a toast—We did it, they said together. 8 The new name of the combined companies was Starbucks Starbucks as a Private Company: 1987–92 The following Monday morning, Schultz returned to the Starbucks offices at the roasting plant, greeted all the familiar faces and accepted their congratulations, then called the staff together for a meeting on the roasting-plant floor. He began: All my life I have wanted to be part of a company and a group of people who share a common vision . . . I’m here today because I love this company. I love what it represents . . . I know you’re concerned . . . I promise you I will not let you down. I promise you I will not leave anyone behind . . . In five years, I want you to look back at this day and say I was there when it started. I helped build this company into something great. 9 Schultz told the group that his vision was for Starbucks to become a national company with values and guiding principles that employees could be proud of. He indicated that he wanted to include people in the decision-making process and that he would be open and honest with them. Schultz said he believed it was essential, not just an intriguing option, for a company to respect its people, to inspire them, and to share the fruits of its success with those who contributed to its long-term value. His aspiration was for Starbucks to become the most respected brand name in coffee and for the company to be admired for its corporate responsibility. In the next few days and weeks, however, Schultz came to see that the unity and morale at Starbucks had deteriorated badly in the 20 months he had been at Il Giornale. Some employees were cynical and felt unappreciated. There was a feeling that prior management had abandoned them and a wariness about what the new regime would bring. Schultz determined that he would have to make it a priority to build a new relationship of mutual respect between employees and management. The new Starbucks had a total of nine stores. The business plan Schultz had presented investors called for the new company to open 125 stores in the next five years—15 the first year, 20 the second, 25 the third, 30 the fourth, and 35 the fifth. Revenues were projected to reach $60 million in 1992. But the company lacked experienced management. Schultz had never led a growth effort of such magnitude and was just learning what the job of CEO was all about, having been the president of a small company for barely two years. Dave Olsen had run a single cafe for 11 years and was just learning to manage a multistore operation. Ron Lawrence, the company’s controller, had worked as a controller for several organizations. Other Starbucks employees had only the experience of managing or being a part of a six-store organization. When Starbucks’ key roaster and coffee buyer resigned, Schultz put Dave Olsen in charge of buying and roasting coffee. Lawrence Maltz, who had 20 years of experience in business and eight years of experience as president of a profitable public beverage company, was hired as executive vice president and charged with heading operations, finance, and human resources. In the next several months, a number of changes were instituted. To symbolize the merging of the two companies and the two cultures, a new logo was created that melded the Starbucks and Il Giornale logos. The Starbucks stores were equipped with espresso machines and remodeled to look more Italian than Old World nautical. The traditional Starbucks brown was replaced by Il Giornale green. The result was a new type of store—a cross between a retail coffee-bean store and an espresso bar/cafe—that became Starbucks’ signature format in the 1990s. By December 1987, employees at Starbucks had begun buying into the changes Schultz was making and trust had begun to build between management and employees. New stores were on the verge of opening in Vancouver and Chicago. One Starbucks store employee, Daryl Moore, who had voted against unionization in 1985, began to question his fellow employees about the need for a union. Over the next few weeks, Moore began a move to decertify the union. He carried a decertification letter around to Starbucks stores and secured the signatures of employees who no longer wished to be represented by the union. After getting a majority of store employees to sign the letter, he presented it to the National Labor Relations Board and the union representing store employees was decertified. Later, in 1992, the union representing Starbucks’ roasting plant and warehouse employees was also decertified. Expansion into Markets Outside the Pacific Northwest Starbucks’ e.

Sony ericsson mobile company

Sony ericsson mobile company 1.0 Report Overview 1.1 Introduction The aim of this report is to deeply understand the importance of applying marketing essential strategies in order for the company to thrive in a dynamic changing environment. Sony Ericsson, the joint venture established in 2001, is an example to be thoroughly examined in this report. Its mobile T68i was revolutionary; it was the first GSM/GPRS color screen handset. Its Bluetooth technology was introduced for the first time in the market. Nevertheless, Sony Ericssons market share is only 13.65% in 2010 compared to Nokia, 51.40%! Why? (GetJar 2009) The report will focus on revealing the key issues that affect Sony Ericssons current and future situation in the market. After the great success of Sony Ericsson in selling its Walkman phones that were launched in 2005 (Smith 2006:77), it started to face new challenges in the market. The report will critically evaluate Sony Ericssons implemented strategies compared to the surrounding environment and highlight the challenges that face the company for this implementation. It is an important report because it will provide a better insight on how marketing strategies are put into practice in a company. It will also help in answering a very important question: what are the challenges the company should handle to maintain its competitive advantage now and in the future. 1.2 Report Structure and Approach This report will be structured as the following: Section Two: An introduction to the companys behaviour and the way it responds to changes in the market in order to understand the broader system it works in. Section Three: A deep analysis of the competitive advantage of the company to have a better understanding of its potentials in order to decide what is better for it. Section Four: Identifying the internal and external factors that determines the companys success or failure by evaluating its strengths and weaknesses and opportunities and threats using PESTEL and SWOT theories. Section Five: A conclusion. 2.0 Sony Ericsson Orientation Sony Ericsson, being in the mobile telephone industry, faces a lot of fierce competition and it has always strived to be a leader in this industry. To achieve this goal, It has adopted a four dimensional organizational orientation strategy which includes product, marketing, production and sales orientation (Schenker 2007). 2.1 Product Orientation Sony Ericsson has always maintained quality and differentiation in its products while expanding into new markets and making its brand known worldwide. It invests in research and development to develop new products that will satisfy its customers. For instance it was the first in 2005 (Sony Ericsson: 2008) to develop the walkman feature in cell phones. It also developed phones with digital cameras and cyber shot cameras which added value to its products. This company actually invests a lot of money in research and development; it has an office in Sweden which focuses only on researching into new product features and quality (Consumer Reports 2005). A key factor in the product orientation strategy of Sony has been its branding. According toColton, It is wide recognised that brands are one of the most valuable assets that firms own. This explains why Sony Ericsson always wants to improve on its product design so as to maintain its brand name and image which customers hold about its products. Sony Ericssons brand strength has helped in innovation and creation of value creation strategies that its competitors cannot implement or follow as the brand name Sony Ericsson has greater awareness andrecognition.Thus a strong brand name can result in a greater profit margin and the more an organisation achieves its objectives. Sonys brand names with their sophisticated features like the recently launched green heart cell phone has had a positive image in the minds of their consumers who has a high recognition for it as an environmentally friendly industry (Colton et al. 2010). Sony Ericsson has smartly differentiated products with the aim of targeting different segments of the market, since it is difficult for a single product to satisfy the needs of different consumers. For instance, it started by developing phones which were large in size with few options like text messages only. Later on it improved mobiles by producing very small size phones with camera options. Today it has phones with video recording, mp3 and cyber shot. Today, Sony Ericsson has expanded the market for its products operating in over eighty one countries of the globe; it no longer produces electrical appliances like electric irons, televisions and mp3 DVD players. It aims to gain leadership in the mobile phone industry using a strong brand name. 2.2 Marketing Orientation Sony Ericsson is a market oriented organization. Market orientation, according to Jobber, is when a firm gives priority to consumers preferences at all levels of their activities. Sony Ericsson highly values its customers so it develops all its phones based on customers specifications and preferences. It wants to satisfy its customers at all levels; always researching on what consumers desire and it greatly invests in this area as it sees them profitable investments. This can be clearly noticed when Sony Ericsson came with the walkman phones with mp3 in 2005 which paid it off and helped recover the losses it incurred before and resulted in a larger market share. Sony Ericsson has displayed number of market orientation characteristics; for instance, efficiency and effectiveness, segmentation and targeting, customer value and satisfaction and competitive advantage. Moreover, Sony Ericsson is an efficient and effective mobile phone company. Efficiency is seen through its ability to minimise its production cost while maximizing outputs and profit. Sony Ericsson has kept at all stages in production at low cost while maintaining quality and variety with sophisticated features (camera, video recording, and web browser). Also investing in new products and modern technology has been the spirit behind the success of Sony Ericsson in many occasions. Effectiveness, on the other hand, is seen by its ability to produce phones that people want to buy. At one point, the continuous increase in the profits of Sony Ericsson has been due to increase in demand on its phones which has resulted in more sales compared to other years. Sony Ericsson has divided its market into different groups of buyers and sellers. Some of the main segments are those who seek phones for value and those seeking sophisticated features like video recording, internet and mp3. Sony Ericsson has always sought to create pleasure and fun in its phones with the aim of providing customers satisfaction and value to its products. This is why it keeps developing new features like the touch screen, slides and internet facilities. Sony Ericsson has always strived to remain the market leader in the phone industry and to have a competitive edge over its competitors like Nokia and Samsung. This is why after making huge losses of over $10 000 it came up with the new walkman and cyber-shot phones in 2005 and maintained low prices which generated revenues of $31 687.2 million with a net income of $1 769.5 million. It has always put its customers in first position in all its marketing strategies. A typical model to show its marketing orientation can be shown below; Marketing orientation entails creating goods and services that will satisfy the needs of your customers and continuously researching into better ways of doing so and making sure this process has a positive impact on the goals of the company (Uncles 2000: 1). The growing importance of marketing orientation today is seen as firms try to build long lasting relationships with their customer. Firms now produce what the market demands not just producing with the hope that whatever they manufacture consumers will buy. Firms now use customer strategic marketing which is a process whereby they try to optimise revenue and profits while satisfying their needs (Dean et al. 2009). 2.3 Production Orientation Sony Ericsson produces mobile phones and most of the production is centered in China, India and Britain. Third of the production is in China and India as the cost of production in these countries is lower than in the United Kingdom and Sweden where its research and development office is found. The company is efficient in production and so tries to minimise production cost. In 2008, it reduced its work force by 2000 employees and consultants in and remains competitive in this industry which is very dynamic. Sony Ericsson produces phones (talk and text, camera, web and email, touch phones, music and games) and mobile accessories (head phones, battery charger, music transmitters and cables, car holders, Bluetooth headset, phone cases). These phones are designed in different sizes, styles and shapes. Besides, the company focuses its production of mobile phones based on the current market needs. Last year due to the global cry for climate change, it has launched the Go Green Heart Sony Ericsson phone. This shows that the company invests in the production of products that match with current needs of the population. (Sony Ericsson 2009). 2.4 Sales Orientation Sony Ericsson has witnessed rapid increases in revenue due to increased sales. It initially started operations in Britain, China, India and Sweden, but today it has expanded its market to over eighty one countries. Despite the recent recession that lead to reduction in profits, Sony Ericsson has embarked on sales promotions, aggressive and persuasive TV and Internet advertisement and sales promotion and reasonable prices of its products. Most of its adverts have had positive impacts. For example, when it launched the Walkman in 2005, there was a rapid increase in demand and high sales were recorded. Their major buyers are mobile communication firms and independent retailers. Over the years they have experienced increases in their sales and net revenue, yet lost market share. This can be seen below: Years 2005 2006 2007 2008 Net Sales (SEK Million) 7,268 10,959 99,129 12,916 Net Profit (EK Million) 350 997 1,114 1 769.5 Source: Sony Ericsson Company Research 2.5 Sony Ericsson Group Operation Sony Ericsson has different telecommunication through firms like other companies such as Orange, T-Mobile and MTN which carry out sales promotions and this strategy has off. With it launching of online sales it has increased sales as retailers can place their commands online and receive their goods wherever they are located. The coming up of the pricing strategy in 2007 was Sony Ericsson introduced reasonably priced phones with fewer functions equally lead to rapid penetration of the markets especially in Africa. 2.6 Evaluation and Recommendation Sony Ericsson has a positive product and production orientation. This has given it a competitive edge in the market as it always finds new ways and methods of innovation in the mobile phone industry. Its effort in this line has placed it in a supreme position most of time. However it still has to work more on the area of developing phone and accessories. Most of its accessories are not strong as a lot of customers have made negative complaints regarding their durability. The industry has however reacted to this by offering guarantees to customers who purchase its walkman and cyber shot phones. This step nevertheless seems unfair to other consumers who do not get any warranty when purchasing the company other low quality phones (Strategic Direction 2004). As regarding marketing and sales, a lot has to be improved .This is because despite its recent downsizing in labour force with the aim of cutting down cost and maximising profits, the company has still recorded recent losses in the fourth quarter of 2009 (BBC: 2010) of 167 million Euro from 187million Euro in the previous year. Sales in this same period fell by 40%. Sony Ericsson has been suffering from lower sales due to failures in their marketing team. A lot of improvements should be carried out to bust sales and profits. The company overall is doing well needs an extra force o rekindle its sales and profit margins. 3.0 Competitive Advantage An advantage over competitors gained by offering greater customer value, either through lower process or by providing more benefits more benefits that justify higher prices (Armstrong and Kotler 2009:218). Sony Ericsson can be accredited for its innovation. Whether by T68i, the First GSM/GPRS enabled colour screen Handset, Bluetooth technology for file transfer or hand free and later with Music and Loud Speakers or High Mega Pixel Mobile Camera. At one time, Sony Ericsson Held the second largest market as a phone manufacturer in Europe. Below graph shows its market share of 20% which is quite dominant (Mintel 2010). Handset Market Share in Europe, November 2009 One of the main strengths of Sony Ericsson is diversity (Sony Ericsson 2010) and mapping this to the Poters Three Generic Strategies theory we reach the following Stuck In the Middle situation for Sony Ericsson. Competitive Advantage (Porter 1985) Turning this problem into opportunity, it is an advantage for Sony Ericsson to be in that situation, as it enables it to serve the vast mobile consumer market over competitors and the serve the three competitive advantages of Cost, differentiation and focus. 3.1 Cost Leadership To achieve cost Leadership Sony Ericsson has become low cost producers in mobile industry as compared to others offering the same mobile features and quality. Sony Ericsson prices are quite competitive and are available for big as well as small pockets. Brand  £0-20  £21-40  £41-100  £100 Total Nokia 4 4 6 7 21 Sony Ericsson 1 3 8 7 19 Samsung 1 2 6 4 13 LG 3 5 8 Availability of pay as you go phones, by brand and price, December 2009 Source: Mintel Analyzing the above data it clearly specifies that Sony Ericsson have competitive numbers of handsets in all ranges. This helps Sony Ericsson customer base to be 20% and growing continuously. 3.2 Differentiation From day one Sony Ericssons focus has been on Music functionality or camera. At early times when camera phones were just launched, the brand gave the feature to take, send and receive pictures quickly as cameras. Same for the Music Player, its Walkman Series had a dedicated button to allow switching between mobile and music functionality. Mixing the competitive price and leads in terms of multimedia usage across the handset brands (listed in the below table) makes Sony Ericsson so popular among youth (Mintel: 2010). Total% Nokia % Sony Ericsson % Samsung % Motorolla % Bluetooth 46 42 62 53 35 Camera less than 5 megapixel 43 36 55 46 50 Music player 37 29 58 46 16 Games 36 32 49 41 33 Video recorder 34 27 51 41 22 Video player 30 24 45 37 20 Web browser 28 25 38 33 20 Radio 25 25 41 27 6 Camera 5 megapixels or more 21 20 25 29 14 Fast web browsing eg 3G 17 19 21 14 6 Email 16 16 17 15 8 Touchscreen 11 5 11 17 3 IM chat eg Instant messenger 10 11 11 8 3 Wi-Fi 9 11 11 6 2 GPS/Sat-Nav 7 10 4 4 1 QWERTY keyboard 6 4 5 4 2 Ability to open Word Documents 6 6 5 3 2 Ability to open PDF documents 6 6 4 3 1 Ability to open Excel documents 5 5 4 2 2 Source: (Mintel Oxygen, 2010), Based on 2,000 Internet users aged 16+. Sony Ericsson had product of handset (included pay as you go and contract) owned by facilities on mobile used, October 2008. 3.3 Focus Focus strategy is to be successful; the organization must understand segments thoroughly; how their needs are changing and what range to offer. If Sony Ericsson doesnt serve the segment more effectively than competitors, then it will be in a poor position (Brassington and Pettitt, 2006: 972). Sony Ericsson obviously is the under-25s preferred handset (Mintel: 2010). The features such as High Mega Pixel Camera and music Players are symptomatic of entertainment and function-hungry younger market and these features are highly substitutable. Also Sony-Ericsson younger users perceive its interface as easier to use in connection to the features of their key interest. Although, the risk of operating in this segment is that this segment might fluctuate widely on the short run depending on fashion trends, Sony Ericsson market share may fairly remain same, Other possible threat is that this might be undetermined by competition (Brassington and Pettitt, 2006: 973). For Complete understanding of the Sony Ericsson competitive advantages, Poters five Forces of competitive advantages have further been used. According to the Porter, the state of competition in an industry depends on five basics competitive forces; the collective strengths of these forces determining the ultimate profile potential of the industry and the ability of firm in an industry to earn rates of return on investment in access of the cost of capital (Poter 1985). The five forces are as Follows: Existing Competitive rivalry between players. Barging power of buyers. Threat of new market entrance. Bargaining powers of suppliers. Threat of Substitute products. These five forces for Sony Ericsson is shown in the below figure. Porters 5 Force Model for Sony Ericsson. 3.3.1 Existing Competitive Rivalry among Players Sony Ericsson sustains the competition amount Nokia, Motorola, LG, Samsung, etc because of its Innovation strengths. This enables it to enjoy the total market share of 20%. To reach this figure, Sony Ericsson defiantly needs to maintain its technology as well and its competitive cost base to attract more customers. Also, the increase in social networking should be maintained, Sony Ericsson have already targeted most of them such as Facebook, Twiter and Myspace, as they are the current attracters and give a competitive edge. In current market trends, there is a big increase in the smart phone users and to cope up with the trend. In 2009, Sony Ericsson largely focused on the high-end segment of the market with the launch of Satio, Aino, W995 and Yari ranges. The Satio is a touch-screen with a 12MP camera and a Walkman; the Aino provides access to media content from a PlayStation3 console while on the move; and the Yari has a Nintendo Wii-like sensor for gaming (Mintel 2010). 3.3.2 Bargaining Powers of Buyers The degree which consumers can influence the demand is referred as bargaining power (Jobbar 2010). Sony Ericsson offers its customers a big range of handsets at competitive price to satisfy the vast mobile consumer market which are from basic phone users to top end latest technology buyers. This expands the market base for them not just within Europe but also enables them to serve this vast range in various economies. 3.3.3 Threat of new market Entrance New Entry means new rival that in turn means increased competition. Sony Ericsson need to be aware of all the big and small companies entering in various global locations into the mobile phone industry as the Sony Ericsson deals with all rang of handsets. Certain barriers should be put to inhibit new entrants. As Mobile market is very competitive the new entry and its survival is quite dull until as unless its a well know brand and good technology as what Apples iPhone did to the market share of smart phone of Sony Ericsson and other brands (Schenker 2007). The threat of new entrants to Sony Ericsson is quite low because of its established brand value and quality. 3.3.4 Threat of Substitute Products This is the ability of your customers to find an alternative way of doing what you do. As far as near future is concerned, an substitute of mobile handsets cant be think of, so Sony Ericson need not to worry about this threat but it needs to be open for viewing the new technologies coming in for communication so that it can incorporate in new models. 3.3.5 Bargaining Power of Suppliers The bargaining power of suppliers can also be described as the market of inputs. Suppliers of raw materials, components, labor, and services can become power over the firm if there are few substitutes. Since the starting of Sony Ericsson in 2001, it operates under a corporate social responsibility code. Sony Ericsson insists to only works with suppliers who meet required stringent. This helps employees to make ethically correct decisions. Influencing product development and improvement from a CSR and environmental perspectives in the supply chain, which is a key reason in reaching industry leadership as well as compliance with those requirements. Also, All Sony Ericsson suppliers go under assessment to meet compliance with CSR and environmental requirements. These assessments prove that suppliers have procedures within place to control their supply chain (Sony Ericsson 2010). In this ways Sony Ericsson has developed loyalty from its suppliers and being a main market player, it has the power of looking at different suppliers in tough times. 3.4 Value Chain Its a method for locating superior skills and resources. All firms consist of set of activities that are conducted during product lifecycle, they are design, manufacture, market, distribute and after sales service for its products. The value chain categorizes them into support and primary activities (Jobber 2010: 787). The value chain (Jobber 2006: 788) Product differentiation defiantly provides competitive advantage, but on the other hand it also tends to increase the complexity, which increases supply chain risk. The challenge manufacturers face is making the correct tradeoff decision among the two. Sony Ericsson deals with this by deeply analyzing the total supply chain effect at various stages of design strategies (AMRresearch 2010) this might be internal or external to the organisation. Sony Ericsson has a tie up with ATCLE in US for packaging and final manufacturing touch until the products arrive in Texas with ATCLEs distribution Center. This gives Sony Ericsson two advantages: It gave them positive trade-off of cost benefit in transporting packed product from Asia compared to ATCLEs charges for assembling. This also gave them the opportunity of finally customizing the product in Dallas closer to the customer as per their desire. (SupplyChainBrain 2010). Similarly, the tie up of Sony Ericsson with Ingram for its nationwide sales and distribution in India brought a value addition to the company. (Kanter J 2009) Building up of the high quality of value chain makes Sony Ericsson more probable by customers because they get better service quality across the globe and it also concentrate more on the product and quality it is developing. Sony Ericsson certainly has a competitive advantage over its rivals because of its strong Value chain within the various operations without the organization and outside across the globe. 4.0 Marketing Mix Diffusion of a product depends on its positioning. It includes complexity, differential advantage, divisibility, compatibility with customers values, i.e. life style, experiences and behaviours, and communicability (Jobber 2010:384-409). Companies should be careful in choosing the target market and showing the differential advantage the product has. This could be achieved by a combination of successful brand naming, image, service, design, guarantees, packaging and delivery. All of those mentioned are included in the four marketing mix framework which will be discussed in this section (Jobber 2010:311). 4.1 Product Product is a crucial part of the marketing mix; its the element that the company starts to build and shape its identity and most importantly generates profit. All companies have products, whether tangible or intangible, but what differentiates their products from each other is the branding itself. Branding includes choosing a name, creating a design, insuring quality and the line of products. Positioning is created out of those elements, bearing in mind that they, together, should be clear in the message they deliver, credible, consistent and competitive. These elements augment the perceived value and performance of customers. It is also a barrier to rivals, gain for high profits and base for brand extension, quality certification and trust (Jobber 2010:305). We are going to discuss those important elements with reference to Sony Ericsson Company. 4.1.1 Brand Name Developing a distinctive name for the brand differentiates and distinguishes it from other products in the market. Brand naming should evoke positive emotions, be easy to remember and pronounce and suggest the benefit of the product (Jobber 2010: 319-320). Sony Ericsson always uses prestigious names for its brands that suggest sophistication and smoothness, like its newest mobiles Xperia, Xperia X10 and Vivaz. They are easy to remember and they provoke a kind of excitement for the customer to be introduced to those products. Also the company uses alphanumeric when naming its brands to emphasize technology which expand its targeted customers. Sony Ericsson choice of names is very successful when compared to other mobile names like Nokia 7230, Motorola Dext; the former combines the two essential elements of simplicity and technology. Another important aspect of brand naming is the brand heritage (Jobber 2010:315); it adds value to the positioning of the brand in the market. When looking at Sony Eri

The Individual versus Society in the Scarlet Letter Essay -- essays re

The Individual vs. Society in the Scarlet Letter The society we live in today grants us a variety of freedoms. No one tells us how to think or what to believe in. We decide what clothes to wear, what to do on Sundays and our religion – with no law to persuade us. These permissive decisions would not be looked highly upon in stern Puritan Society. There is no sense of individualism in 1600s Salem because laws envelop every bit of human society. With all these severe rules in place, there are bound to be rebellious actions. In The Scarlet Letter, Hawthorne addresses the theme of an individual’s struggle against society by implementing three symbols: the wild roses, the scarlet letter and Pearl. In the beginning of the novel, Hawthorne describes a wild and saintly rose-bush next to the prison. This rose-bush, by some odd occurrence, has stood the test of time and all of man’s activities. Even with all of society’s hideous constructions, such as the ugly and rusty prison door, it is still blooming and well. â€Å"But on one side of the portal, and rooted almost at the threshold, was a wild rose-bush, covered, in this month of June, with its delicate gems, which might be imagined to offer their fragrance and fragile beauty to the prisoner as he went in†¦Ã¢â‚¬  (Hawthorne 35). A reference to Anne Hutchinson is another reason why this rose bush is a symbol of an individual’s struggle against society. Hawthorne recognizes Anne as one of the possible reasons why the rose-bush sprang up next to the prison. â€Å"†¦or whether, as there is far authority for believing, it had sprung up under the footsteps of the sainted Ann Hutchinson as she entered t he prison-door, we shall not take upon us to determine† (Hawthorne 36). Hawthorne bestows Hutchinson becaus... ... temper. â€Å"Pearl felt the sentiment, and requited it with the bitterest hatred that can be supposed to rankle in a childish bosom† (Hawthorne 71). In addition to ridicule, society, suspecting Pearl is evil and of demon origins, tries to separate her and Hester but to no avail. The harshness of Puritan Society in The Scarlet Letter is opposed by the rose-bush, the letter â€Å"A† and Hester’s illegitimate child. By utilizing these three symbols, Hawthorne demonstrates the resistance of the individual opposing the society. Because as long as there’s society, people, in someway or another, will always attempt to rebel against it. These actions can either be welcomed or reviled but opposition to society’s conformity is essential to our individualism and our uniqueness. Without any type of resistance, we would cease to be distinct and our sole identity would be lost forever.

Seasons-Spring and Winter in Whistling of Birds by D. H. Lawrence Ess

â€Å"Whistling of Birds† by David Herbert Lawrence is a depiction of the vividness of his writings and his own artistic vision and thought. In this essay he has elucidated the change of seasons- change from winter to spring- in an impressive way by the use of images, similes and metaphors.. Winter, as he narrates, brings woe and causes wreck. The intense frost that sustained for several weeks caused the death of birds. The remnants of the beautiful bevy of birds – lapwings, starlets, thrushes, lied scattered in the fields. The â€Å"invisible beasts of prey† had wolfed the birds. The winter had massacred the song birds and their blood-soaked skins were spread all around. The beings that could not shield themselves against its rigours shivered with cold and were exposed to the fury of biting cold winds. Winter thus had brought a host of hardships to the poor souls who found it hard to face the vagaries of the weather. Oh, the long and dreary Winter! Oh, the cold and cruel Winter! – LONGFELLOW, Hiawatha Then sudden change appeared. The way wind began to blow depicted change of weather. The winds were warm and during the day shimmers sunlight could be seen. The birds began to chirp uncomfortably, without a pause. The doves were uttering strained coos as the influence of winter prevailed on them. Their attitude was queer. It was like a overlapping season. The surroundings were still snow carpeted. They kept on cooing with weakness. The breeze was still chilly enough to hurt. The subdued sunlight provoked the birds to chirrup in feeble tones. During the hard frost, deathly silence held sway. Then with the slight change of conditions, the whistling of birds appeared to be a peculiar act. It was extremely difficult to accept the change. The writer inquires for it, as the earth had been covered with the sheet of lacerated cadavers. The scene was quite frightening and alerting as the birds kept on tweeting and spreading their â€Å"silver† songs all around in the winter-effected sur roundings. The joy and defiance of the birds amazes and inspires him; it is the image of all brave rebirths. The birds were reconciling to the death of the other birds. They were forgetting the dead world in order to join the new bright one. â€Å"If winter comes, can spring be far behind.† –Shelley, Ode to the West Wind. If there comes a little thaw, Still the air is chill and raw, Here and there a patc... .... He continues with his whistling. Whistling affirms passionately the irrepressible renewal of life after death and destruction. The essay describes the renewal of the birds’ song after the long and dreary winter. The song is a metaphor for life that is chosen, willingly and deliberately. Lawrence is not alone in his determination to choose life. Many others have reached the same decision after grappling with the horror of death in their minds and souls. In Whistling, Lawrence celebrates the impulse to life that cannot be quenched--the hope that lives in all of us. He uses the metaphor of the whistling of birds for his depiction of this inextinguishable flame of life and hope in humans. Lawrence not only affirmed life but insisted on the inevitability of it: â€Å"Who can thwart the impulse that comes upon us? It comes from the unknown upon us,† Faith of life is generated in them; they have escaped from the dreadful shadows of death. It becomes essential for us to relocate from the zone of death to life. Thus the two seasons, spring and winter, have been clearly portrayed by the writer. The change that fascinated him has been explained in a vivid way that it enthralls the readers too.

An Analysis of the Kenyan Mobile Phone Market Essay

The stage is thus set for fierce competition among Mobile service providers in Kenya with possible positive benefits for the millions of mobile subscribers in the country. . 2 Technology According to Laudon(2006:292), â€Å"mobile phones enable millions of people to communicate and access the internet †¦. where conventional telephone and internet services are expensive or unavailable†. It is not surprising then that in a country such as Kenya with poor or little infrastructure in the form of fixed telephone lines, developed transport systems and computer facilities that a large percentage of the population has resorted to using mobile phones to communicate , do business and enhance their lives. According to Menguy, T (2007), in 1990, only 48. % of long distance calls and 53. 7% of domestic calls were being completed successfully using a fixed line. State owned fixed line operator Telkom Kenya has been regarded as a â€Å"low performer with no competition†. Laudon ( 2006:292) highlights that the global standard for cellular service is GSM (Global System for Mobile Communications) which is also currently being used by the Safaricom and Celtel networks. Using the GSM band users are able to retain the same number while being able to roam across national borders to nearby countries such as Uganda and Tanzania (BBC News as reported by Karobia, C,). Although the benefits and features of smart phones are widely known and used by the western world developing companies such as Kenya as still getting used to the idea of having a phone that does nearly everything for them. Safaricom is only introducing 3G and video calling including other value adding services to Kenyans next year (Arunga, J and Kahora, B (2007:12)) which undoubtedly will only enhance the lives of Kenyans. 1. 3 Foreign Trade Policy During the 1980’s until 1990’s, Kenya’s poor relations with donors resulted in heavy domestic borrowing and higher interest rates which resulted in poor economic growth. According to Wagacha, M, (2008:12) trade policies in Kenya underwent reformation in 1990 which resulted in greater trade openness (such as the CCK’s decision to issue more mobile phone licences to companies). The Trade Openness Index is an indication of the ability of country to trade and is calculated by adding imports and exports of company and representing it as a fraction of GDP. Wagacha, M (2008:12) highlights that the trade openness index for Kenya was an average of 46. 4% during 1997 to 2003 . The higher the trade openness the more open the country is to trade and the higher the growth. A country such as Uganda had an openness index of 26. 7 which indicates that Kenya has better trade policies and a better chance of growth as compared to Uganda. In addition to this Apoteker, T and Crozet, E (2003:7) argue that better trade openness results in †¢Ã¢â‚¬Å"Innovation and efficient production in a smaller number of goods [and allows Kenya]†¦. to compete internationally. Greater variety of goods available to consumers thus increasing the consumer Surplus and satisfying the consumers’ â€Å"demand of difference†. †¢[The] Adoption of sound policies to make sure the country is attractive to investors. †¢Capital flows can enhance domestic investment rates. From capital-rich to capital-poor countries, they can improve the rate of capi tal accumulation in the latter†. According to Arunga, J and Kahora, B (2007:7) prior to 1998 all telecommunications in Kenya was owned and controlled by the state owned company Kenya Posts and Telecommunications (KP&C). Wagacha, M (2008:16) highlights that more than 200 transnational corporations are operating in Kenya successfully, in many industries not limited just to the mobile phone sector. However trade reforms and governmental corruption have always influenced investment from foreign companies. Foreign Direct Investment (FDI) may be regarded as the commitment by developed countries to facilitate the access of new technologies, markets, products, process and skills and most importantly funds to the developing or emerging country to improve and strengthen the economic development of the developing country such as Kenya. In1999 the Kenyan government approved the new act proposed by the Communication Commission of Kenya(CCK) which made KP&C redundant with the intention of opening up the industry to invite competition from foreign and local service providers. The New Partnership for Africa’s Development (NEPAD) as cited by Van Vuuren, H (2002:1) also describes â€Å"private capital flows to Africa, as an essential component of a sustainable long-term approach to filling the resource gap†. However bribery and corruption in the Kenyan government and the government’s interference in the mobile phone industry is well known. In 2005 Econet Wireless paid US$ 15 m for phone network licence which according to Arunga, J and Kahora, B (2007:7) was illegally cancelled by the Kenyan Minister of Information and Communications. The same minister was also accused of illegally cancelling a tendering process for a second fixed line operator and is alleged to have a vested interest in monopolised Telkom Kenya. The Competition Commission of Kenya (CCk) which was formed in the first place to invite foreign and local investment in the mobile industry has since been dissolved due to governmental interference in a highly political industry. Today nearly 100’s of companies are still waiting for their licences to be issued which now rests with government which is trying to regulate the industry with a political agenda which is counter productive to stimulating sustainable long term growth to reduce poverty (Wagacha, 2008). 1. 4 Economy Table 1 below shows some key statistics on Kenya. According to the information presented in the table it can be seen that Kenya has an average population of 34. 7million people and 52% of the Kenyan population is below the poverty line. Table 1: Key Statistics for Kenya