Apple Inc.

Team â€Å"Death Spiral† examined the stewardship and business performance of Apple Inc. by undertaking a strategic analysis of Apple Inc. ’s previous, present and potential future strategic and market performance. The internal workings of the firm were examined to reveal a culture of constant innovation and a drive to create easy to use, life improving products. A two tiered corporate structure with Steve Jobs and Tim Cook being at the apex of anagement and a horizontally flat structure of vice presidents the decision making process is not complicated by various vertical levels of command and decision making. Apple Inc. ’s internal structure has become flexible as divisions are specifically established to develop the latest product and maintain a competitive advantage. Apples industry segments were than explored and it was noted that it was not possible to absolutely define a market which Apple consistently performed in. Apple Inc. ’s multi-functional pro duct base gave a clearly indication of the underlying strategic management at play.It was accepted that Apple has defined its own market segment, that of ‘mobile electronic devices’. The four main strategic management themes of M. E. Porter (focus, differentiation and cost leadership), G. Hamel & C. K. Prahalad (structuralist), W. C. Kim and R. Mauborgne (reconstructionist) and J. Ridderstrale and K. Nordstrom (intellect, uniqueness and innovation) were examined in light of Apple Inc. ’s most recent performance. The Blue Ocean Strategy and the Funky Business Strategy models were found to be the most applicable and helped explained Apple Inc. s sustained and phenomenal rise in business performance. Finally, strategy recommendations for the future direction of Apple Inc were explored by the use of a Strategy Canvas. Possible pitfalls and hypothetical futuristic products were also explored. The single most strategic liability identified was the departure of the CEO Steve Jobs from Apple which could potentially be catastrophic if not fatal for the Apple brand. † ! ! Apple Inc. has transformed over its 30 year existence; there have been changes in leadership, product types, company logo and name.Apple Inc. experienced decline in the early to mid-nineteen nineties but has experienced unprecedented growth and success since the return of the founding father figure of Steve Jobs. Yoffie and Kim (2010) highlight the misdirected and turbulent time Apple experienced in the 1990’s until the turn around and change (1998) in ethos/philosophy of Apple as purported by Jobs. Job’s aim was to reduce the number of product models, change the mode of distribution to larger outlets and promote Apple as a ‘hip alternative to other computer brands’ (Yoffie & Kim, 2010, p. 4).Apple Inc. ’s current mission statement states ‘Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and pr ofessional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with its revolutionary iPhone and Apps Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices’ (Apple Inc, 2010c). This mission statement highlights and gives a strong indication of where the strategic direction Apple Inc. ntends to progress; not only do they strive to have the best products but they intend to stretch vertically across product lines. To emphasis this, Ostdick (2010) comments on the personal drive of Steve Jobs and his belief that all product innovations can be recycled into other projects. The underlying guiding ethos is just because one piece of technology doesn’t work in one project, how we can potentially use it outside its intended use to produce something new and successful. Parallel to the financial success of Apple Inc. is the longevity and stabilit y of its board of directors and corporate structure of the firm.There are seven members on the board of directors from various professional backgrounds. The average tenure of these members is six years with more than half sitting for more than ten years (Apple Inc, 2009). Organisational structure is horizontal with Steve Jobs and Tim Cook acting as chief executive and operating officers respectively. Beneath this pinnacle are nine vice presidents who preside over areas such as retail, hardware engineering and marketing (see appendix 1 for the current executive structure of Apple Inc. ) (Apple Inc, 2010c).These vice presidents administer the day to day running of fourteen individual divisions (see appendix 2 for the current organisational chart of Apple Inc. ). In terms of strategy; Apple Inc. has dedicated divisions purely for further development of the iPhone and iPod. The flexibly of the firm is highlighted here; with † 0 research and development, Apple are prepared to speci fically develop these products. It would be logical to infer when their product life cycles reach their pinnacle; new divisions may be made to further develop the current products at th time. hat Apple Inc. ’s culture internally is a positive workplace where generous employee benefits are available. Employees are subjected however to a strict process of ethics and business processes outlined in e outline their document ‘Business Conduct: The Way We Do Business’ (Apple Inc, 2009). Externally Apple Business . Inc. is embracing the latest sustainable practices in various operational areas and hence attempting to improve their triple bottom line (economic, social and environmental) or Corporate Social Responsibility credentials (Esty & Winston, 2009).Apple provide educational programs for their staff Esty 2009 . and are engaging the community with educational programs and scholarships (Apple Inc, 2009 Over Apple 2009). the last five years a cultural change has occurr ed in relation to environmental responsibilities. Apple responsibilities. recycling programs have been established, carbon emissions saving have been implemented upstream and downstream of the supply chain; and a further commitment to produce environmentally safe products (Apple Inc, 2010b). ! † # !The first challenge in analysing the industry that Apple operates in is defining that industry. Apple has created its own industry of â€Å"Consumer Technology† by choosing to compete in, and redefine segments of more traditional industries. Apple operates in segments of the Computer, Consumer Electronics, Music, Movie/Video, and Telecommunications Industries. positioned itself in selected segments of the market. In each industry it has Although Apple has its roots in the Computer Industry it is no longer just focused on computers. st The change of name in January 2007 from Apple Computers to Apple Inc reflects this change of direction (Honan, 2007). . Despite this Apple gene rated almost 14 BN USD of sales from personal computers in 2009, its second highest † 1 level in history and 32% of the company’s total sales. Even in its traditional market segment Apple Inc. does not dominate the market with an estimated 4. 2% share of the global market in 2009 (Yoffie & Kim, 2010).Apple Inc. continues to gain ground, particularly in their home market, the USA. Apple PC sales are estimated to be only 10. % of the US market in the 3 quarter of 2010 (see Appendix 3) (Ash, 2010), up from 8% in 2009 (Yoffie & Kim, 2010), overtaking Acer to become a distant 3rd to Hewlett Packard and Dell Computers. The personal computer industry is a USD $425 BN industry dominated by companies producing what are still referred to as â€Å"IBM compatible† machines that predominantly use Microsoft Windows operating systems. Major industry leaders include Hewlett Packard (HP), Dell Computers, Acer, Lenovo is a Chinese company that purchased the loss making personal rd Toshiba and Lenovo. computer business of IBM in 2005. IBM no longer manufactures personal computers. The industry is can be characterised as being in a mature growth phase with rising sales and falling prices. Leading industry consultants the Gartner Group forecast sales growth in unit shipments of almost 20% in 2010 with significant falls in unit prices (Anonymous (The Australian), 2010). The industry is highly price competitive and fragmented with thousands of smaller companies competing with the major players using common commoditised components.Apple stands apart from the pack offering a highly differentiated product, with its own operating system and unique Apple design and style. It focuses on the personal usage market rather than the corporate market and commands premium prices for its products. Despite its small market share overall Apple commanded 91% of computers sales over USD $1,000 in 2009 (Yoffie & Kim, 2010). This allows them to maintain industry leading margins of 40 % in 2009. Apples margins have increased during recent years while their competitors have continued to decline (Yoffie & Kim, 2010).The global consumer electronics market is estimated to be in excess of USD $ 700 BN a year (Anonymous, 2010b). Consumer electronics includes entertainment, office productivity and communication equipment. The boundaries of this industry are loosely defined as product innovation and technology but convergence is blurring the edges. Leading Global companies include (by one industry definition) Sony, Toshiba, Panasonic, Samsung, LG, Microsoft, Apple, Intel, IBM and Nokia (The Engineer, 2010). The industry is characterized by product lifecycles which are getting shorter, † nd products more technologically advanced and complex. Your phone is a computer; your fridge can connect to the internet. You can watch TV on your computer or phone and watch U-tube on your television! The industry is competitive with many global players with established market pres ence being challenged for market share by both other established players and new emerging brands. Prices are being driven down by aggressive competition. Manufacturers are seeking to lower costs through mass production in low cost countries, notably China. In this environment, branding is critical.Products are too complex for many consumers to rationally compare features, functionality and price in an effective manner. Products are often purchased on the basis of the perceived price performance, with consumers associating with the product brand. Apple is well positioned in this regard with a strong brand associated with Style, Quality, Useability and â€Å"Cool† despite having only a limited range of products within this broader industry definition. $ The music industry is a well-established consumer industry, traditionally controlled by the recording companies.Major players Universal Music, Sony Music, EMI and Warner Music controlling in excess of 70% of the industry with a larger number of small â€Å"independents† making up the rest. Global sales are in order of USD $ 25 Billion in 2009 (International Federation of the Phonographic Industry, 2010b). The dominate trend in the industry is the rapid uptake of digital download of music as the consumer preferred method of distribution. This is undermining the power of the recording companies in favour of the internet based retailers and resulting in revenue contraction. Total recorded music sales evenue has been in decline for the past decade, declining by 7% in 2009. This is despite continued high growth in internet based digital music sales up 12% in 2009. Music sales through digital channels accounted for USD $4. 2 billion of music sales in 2009, representing 27% of global sales growing from a base of just USD $20 million in 2003 (International Federation of the Phonographic Industry, 2010a). Apples iTunes is a leading player in the digital sales channel revolution, arguably the industry leader in legal internet music sales. This is the segment of he industry that Apple chose to compete in and † redefine for its own purposes. Intellectual property issues remain a major challenge for this industry with internet based peer to peer file sharing significantly eroding industry sales. $ %& † The multibillion dollar movie industry is dominated by large movie studios with distribution traditionally handled by theatres, then a secondary market through video/DVD rentals or retail stores and a tertiary revenue stream through television rights. Apple is involved only in the distribution part of the business through film download for rent or sale.This challenges the traditional video store business, with a new model. To date, video downloading has promised more than it has delivered (Kane, 2007). The market is becoming increasingly crowded with an increasing number of companies entering the market including internet heavy weight Google which owns YouTube and retail heavy we ight WalMart (Ogg, 2010). Economies of scale make this an industry that favours natural monopolies or oligopolies. Multiple large scale players as well as a myriad of minor companies are jostling for critical mass.As with most internet based businesses price and convenience are the driving factors. Apples assault on the internet movie sale and rental market leverages their success in music with i-Store, their strength in video capable devices, iPods, iTouch and iPads and established leadership in video processing computers. !# The software industry has many segments including proprietary operating systems, business applications, personal applications and entertainment applications. Most providers focus on selected sectors where they can establish market leadership.Microsoft focuses on operating systems for PC (Windows) and business productivity tools that run on PCs. IBM focuses on large scale enterprise systems and predominantly business software and integration services. A plethor a of other companies large and small compete for leadership in all the gaps in between. Economies of scale are particularly important as the variable production costs are very low. Apple has maintained its own proprietary operating systems for its computing devices to preserve product differentiation and unique usability features. However this has been at significant evelopment cost. Application development has been left to third parties who compete to provide market leading solutions. With the advent of the Apps Store, Apple has entered the software distribution business with a 30% gross margin, leveraging the enterprise of thousands of independent † 2 software developers large and small. By tight integration with their systems the App Store provides a captive high margin marketplace for software. This is another niche segment that Apple has chosen to compete where there are synergies with the t existing businesses.By providing a distribution system Apple has been able to enc ourage more developers to create applications for their computing devices. More applications extend th the functionality and desirability of their products, driving sales. This is a profitable symbiotic relationship. Despite being a relatively small player in the industry segments, Apple is an undisputed financial success. It is now the third largest company in the world, as measured by market capitalisation, d behind only Exxon Mobil and Petro-China. At the close of trade on the 12th of November the Apple Inc shares were valued at USD $308. 3 (Refer to Figure 1. ) each, valuing the entire comp company at over USD $ 282 billion. During the past year the company’s shares have increased in value by over 50% increased (Yahoo Finance, 2010).The stock is trading on a Price to Earnings Multiple of 20. 42 times compared to an industry (Personal Computers) average of 15. 80 times (Stock Call, 2010). The company’s high valuation compared to its sales of 3. 5 times can be attrib uted to the high margin and high growth performance of the business. In the 3rd quarter of 2009 the company reported a net profit margin of 21. 8% compared to an industry average of 4. 53%. Total sales were 67% a year earlier (Stock Call, 2010). On these metrics the company share price does not seem excessive. . † 3 ! ! † Apple Inc. has been defined as being involved in the new technology industry. The products they deliver stretch across multiple industry boundaries; some products compete in established markets, others are market leaders in contemporary industries spanning product development and product delivery (Yoffie & Kim, 2010). This makes an analysis of Apple’s competitive strategy challenging and difficult.Singular theories may fit individual product lines, but not reflect the true direction that this multi-faceted company is taking as a whole. Porter’s (1980) generic theories are an example of this; the three strategies of focus, differentiation a nd cost leadership provide information on specific products such as computers and software; but fail to examine products like the iPad and iTunes (Porter, 1998 see Part 1). An analysis of iTunes best illustrates the timeliness and limitations of the application of the out-dated theory of Porter to Apple Inc. Tunes adopts both a differentiation strategy (by providing the download of music at various download qualities, the ability to download movies and tv shows; and combining it all into an easy to use product) and a cost leadership strategy (this is achieved by providing a competitive priced service for the customer, and a cost effective way for Apple to update firmware of its products). Consideration was given to the theories of Hamel & Prahalad (1994), however the structuralist approach does not encompass the true nature of Apple’s efforts over the last ten years.In contrast the reconstructive theories of Chan Kim and Mauborgne (2005) and their â€Å"Blue Ocean Strategyâ €  in particular allow a greater analysis of the strategic positioning instigated by Apple. The Reconstructionist’s view helps accommodate advances made by Apple Inc. in redefining and creating new technology. Utilising Chan Kim and Mauborgne’s six principles helps in assessing Apple Inc. ’s value chain matrix; and their innovation in product development (Chan Kim & Mauborgne, 2005), (Chan Kim & Mauborgne, 2009).To contrast explanations for Apple’s recent success and to provide analysis for their future; the theories of Ridderstrale and Nordstrom (2000) in their ground breaking book â€Å"Funky Business: Talent Makes Capital Dance† will contrast a different view of competitive strategy. The use of Funky Business as an ideology helps explain the rise of emotional buying and how important the utilisation of innovation is in the 21 century business environment. Furthermore, examples will be given to illustrate the synergies which exist between the Funky Business philosophies and the creation of Blue Oceans which ultimately coalesce into a strategic position. t † 4 Swimming in a Blue Ocean A broad definition of Chan Kim and Mauborgne’s Blue Ocean strategy is the ability for a company to move from a red ocean (an industry where competitors offer similar products or services with the aim to become a cost/market leader); to a blue ocean (an undefined and new industry that may incorporate industries, or create a new industry based on differentiation and lower operating cost) (Chan Kim & Mauborgne, 2005). Apple Inc. is in some respects a contradictory company when it comes to its strategic analysis for its expansive product mix delivers in more than one â€Å"ocean†.For the purpose of this strategic analysis (and recommendations for the future) specific example’s will be given where Apple Inc. has gained a competitive advantage by defining their own unique Blue Ocean. Chan Kim and Mauborgne (2005) provide a fundamental analytical tool to analyse Apple’s competitive strategies. This methodology comprises 5 formulation and execution principles to competitive advantage. They are as follows: †¢ †¢ †¢ †¢ †¢ Reconstructing Market Boundaries Focus on the Big Picture, not the Numbers Reach Beyond Existing Demand Get the Strategic Sequence Right Overcome Key Organisational HurdlesReconstructing Market Boundaries Apple’s current resurgence has its beginnings in one of its original blue oceans; i. e. the creation of iTunes changed how people downloaded and listened to music. iTunes was originally used to compete with the illegal download music market, the now defunct ‘ Napster' being an example. Apple’s aims were to provide a low cost option for customers, high quality downloads and a music player interface (Chan Kim & Mauborgne, 2005).From an administrative point of view iTunes gave Apple control of digital rights and with five major record labels contributing to the service gave them a distinct competitive advantage (Yoffie & Kim, 2010). Blue Oceans however are not constant and as good ideas make money the competitive advantage for iTunes would have eroded if it did not diversify. To compete with growing technology demands, movies and TV shows were introduced to the iTunes store for purchase and rental. This differentiation created a new Blue Ocean for Apple Inc. / â€Å"Currently iTunes is the market leader in visual media. Concurrently the iTunes store has the largest downloadable content on the internet . It provides a catalogue of eight million tracks, two thousand films (total downloads daily average are in excess of fifty thousand) and twenty thousand TV episodes (Anonymous, 2010c). Prime Facie analysis reveals that the popularity of iTunes cannot be solely attributed to the product delivery; but a concurrent innovation and integration with the portable products that Apple has created over the last decade.It co uld be argued that the iTunes blue ocean was strengthened by the continual improvement in storage size and screen resolution quality of it iPod and iPhone range. Apple Inc. can now be seen entering its next stage in differentiation. To do this Apple Inc. has introduced the iPad (Feb 2010); revolutionising tablet computing. Building on its iPhone operating system, Apple is attempting to reconnect with business people. Unlike iTunes, iPad services will not be the low price of music downloads.Apple will attempt to lure high profile media conglomerates to allow subscription through their iTunes service at a higher premium price (Yoffie & Kim, 2010). Even though news articles are sold at a premium price; the ability to distribute them via iTunes gives Apple Inc. a low internal cost. The most recent venture by Apple Inc. to create a unique user experience the creation of multiplayer online gaming on the iPhone; multiplayer gaming traditionally has been the domain of PC and console develop ers (Gametraders, 2010). With this venture Apple Inc. opes to refine how people play games with each other. iPhone customers will have the capability to game wherever they can take their iPhone (Apple Inc, 2010a). This strategic move can be seen as a blue ocean for Apple Inc. which will provide a service no other mobile phone provider offers with the quality of the gaming experience. In addition to this Apple Inc. are not actually investing in gaming; they are using their iPhone and OS4 operating system as a go between. With other companies vying to have their games on the popular iStore; Apple Inc. have created for them a low cost product. 1Focus on the Big Picture, not the Numbers Apple’s current focus is on being a lifestyle company. It integrates its products and makes them easy for the end user to operate. Steve Jobs openly states that his products start with an idea and a need to alleviate customer demands (Ostdick, 2010). This strategic thinking helps formulate new Blu e Oceans. It allows companies such as Apple to create products unrestricted by current industry 1 In February 2010, Apple announced that the iTunes store had recorded its 10 billionth song download (Johnny Cash’s â€Å"Guess Things Happen That Way†) (Ostdick, 2010). // standards and norms. Greg Joswiak the vice president builds on this philosophy stating they never let . vice-president technology go to waste. In an interview with Reena Jana from the Harvard Business Review blog he generalises on key points concerning the innovative strategies of Apple Inc. ‘Think of this strategy as s Think smart recycling of internal ideas and engineering, especially when cross-pollinated with other cross ollinated products’ (Jana, 2010). These comments were made in wake of the iPad release.Jana (2010) . demonstrates how the iPad is a hybridisation of the iPhone and a laptop; and how the iPhone was just hybridisation an update of the iPod. Reach Beyond Existing Demand The fundamental tenet of this principle is, ‘Instead of concentrating on customers they (companies) need to focus on non-customers. And instead of focusing on tead customer differences, they need to build on powerful commonalities in what buyers value’ ( (Chan Kim & Mauborgne, 2005). Apple do this well. It is important to ). ote that there would be a minority of people that do not inority own at least one Apple product. However their competitive strategy in reaching beyond existing demand would be to sell products to existing customers in industries they would not normally consider using an Apple product. As stated in â€Å"Focusing on the big picture† tated (above), the ability to build upon and reuse technology in an innovative way is allowing apple to reach new markets and potentially new customers. ! † # $% & † ‘ ( † / Get the Strategic Sequence Right Apple Inc. as excelled in their strategic sequencing when it comes to the redevelopment and innovation of their portable products. Chan Kim and Mauborgne (2005) stress the importance of price, cost and adoption. Figure 2 (Golijan, 2010) illustrates the chronology of the iPod and Apple Inc. ’s development of the product. The timeline highlights the quality of sales on the left hand side; over the ten year period models evolved and became more accessible at varying price points. The success of the products allowed Apple Inc. to diversify and continually improve the product.Within this industry no other competitor has been able to hold consistent sales growth and product innovation as the iPod. Overcome Key Organisational Hurdles Yoffie (2010) clearly highlights the trouble’s Apple has encountered with several changes in management in the 1990’s. Since the second coming of Steven Job’s Apple has been a stable entity and has not experienced the organisational problems of the past. Recent economic performance would indicate there has been no lead ership or structural change within Apple Inc. It is of interest to note that otentially when Steven Job’s rejoined Apple Computers as the CEO there was a tipping point and a push towards a new Apple Inc. He changed the name, the logo and the ethos of the company and personally pushed Apple Inc. into its current successful position (Jana, 2010). Let’s Get Funky As shown above Apple Inc. has exhibited clear Blue Ocean strategy elements during its history, and yet after the dramatic decline during the 90’s to the stellar success now being experienced, Apple Inc. has also displayed some new, contemporary strategic rudiments.Examining the quirky and mildly eccentric philosophy’s of Jonas Ridderstrale and Kjell Nordstrom as extolled in their manifesto â€Å"Funky Business: Talent Makes Capital Dance† (2000) it is apparent that much of the success of the ‘second life’ of Apple Inc. (circa 2000 to the present) can be attributed to a metamorpho sis in business thinking and to these ‘new’ strategic philosophy’s and ideas. As an example, central to the â€Å"Funky Business† strategic model are the three core elements of: Make Room for Grey Matter – in the ‘global village’, a company’s future depends on the intellect of its teams members.Consumers want, demand a dream, emotion, not products and services; Only the Best Rake in the Pot – In order to succeed a company must be number one in its field or even better – Unique; and Permanent Innovation – Creativity leads to the redefining of the company and its markets and yet the constantly changing † /0 environment of the market implies the constant search for innovation, with innovation being a state of the mind (Laville, 2000).Jobs and his cohorts, since the near fatal demise of Apple Computers in the mid 1990’s have reposition and focused the Apple brand with the global ‘lifestyle†™ village in mind (Yoffie ; Kim, 2010). Central to this theme is the enabling of consumers to engage in quasi-voyeurism, transporting their minds and bodies into ‘Mac/Apple World’, experience music, connecting to the internet and most importantly to each other in the Global community. Apple has been an industry leader in the enabling of the consumer to participate in the web world through a number of primary senses. Steve) Jobs’ ability to reinventing himself and redefine Apple (in its second incarnation) using ideologies akin to that of the Funky Business model resonant with the changing landscape brought about by the globalization phenomenon. Thus Jobs’ ability to connect with the community through technological change, institutional change and the evolution of values (Young ; Simon, 2005) allowed Apple to ride the crest of the wave through the first decade of the millennium harnessing the three underlying forces of excess: growth of markets (eg.China, India, Russia, etc. ), Ongoing overabundance of supply (which has exceeded demand since the 90’s and knows no bounds! ) and technological progress (lowers the cost of information, lower barriers and the world becomes a smaller more accessible environment) (Laville, 2000), (Yoffie ; Kim, 2010). Apples’ Funky Business strategy is exemplified by its innate ability to understand the dynamics of the world of competition and how it has changed.Accordingly, Apple is able to compete in this new environment by realize that the established and entrenched large scale structures of traditional companies don’t ‘hack it’ and that the single most important facet of this new age of business, is the intellectual capital to identify products and get them into production quickly (Musatov, 2001), examples include Apples industry benchmarking and leadership products: iMac (1998), iPod (2001), iTunes (2003), iPhone (2007) and the iPad (2010) (Yoffie ; Kim, 2010).Thus, i t is not the production facility that is the most important, per se, but the minds who operate it. In interviews with Jonas Ridderstrale and Kjell Nordstrom (Anonymous, 2010a) (Anonymous, 2010e), it is clear that one economic model for the 21 century that conceptualize a Funky Business strategy can be illustrated by the strategic direction of Apple over the last decade plus, understanding of st † /1 market forces, individual choice (or knowledge of the individual), freedom to choose and the ability to re-invent or innovate regularly and expediently. † Apple Inc. trategy for the iPad (launched in January 2010) echo with the core elements of creating a new Blue Ocean and Funky Business principles, as described above. These (as expressed by industry commentators) were Apple' core strategic elements for the iPad launch: â€Å"consideration of s future applications of current products as they are developed† (innovate), â€Å"crowd-source hype and ideas around pricingà ¢â‚¬  (sell the dream, the emotion, not so much the device) and of course the core Funky Business principle of, â€Å"Don’t focus on being first; focus on being the best† (Uniqueness) (Jana, 2010).Coincidently, as this new ‘Tablet’ Blue Ocean gathers depth and breadth for Apple, the competition are not far behind with the announcement of Samsungs new ‘Galaxy Tab’ in November 2010 (Anonymous, 2010d), the time between launch, maturity and loss of competitive advantage shrinks with each new development and innovation. â€Å"The Age of Paradox† written by Charles Handy (1995) points out that the Sigmoid Growth Curve can be used to plot out, the life of any organism, life cycle of a product or the life of an organisation.Every new life, organisation, project, or initiative, commences with some faltering at the start, grows, matures, declines and ultimately perishes. If this was the only underlying concept to this ideological graph it would not be of any use, but rather, the positive and encouraging use of this model is that a firm can proactively start its own new sigmoid curve in any new area it wants rather than watching the old curve maximise, then decline.During any new development phase an organisation will experience what is known as a â€Å"dip† or a setback; this can be due to a lack of resources, loss of direction, ineffectiveness, poor productivity and/or loss of a competitive advantage. This is completely normal and team morale must remain high through this temporary stage known as ‘ dipping' Every time there is a new growth curve (new idea, . change in goals, new product, etc. ), it intercepts with the old Sigmoid Curve, and either climbs or descends but ultimately the cycle of a major dip will commence associated with ccompanying anxiety and setbacks. † / The dip can represent a significant challenge for any organisation, as it was for Apple Inc. with a loss of direction between 1985 un til December 1997 with several changes of CEO’s at the helm (Scully, 1985 – 1993) and the (Spindler and Amelio years 1993 – 1997) (Yoffie & Kim, 2010). Apple management, you could say, went through a case of ‘ Paradigm Block' ‘the inability or refusal to see ; beyond the current models of thinking’ (JCU, Competitive strategy course notes, session two slide 11). † † † * & + † , † – † & † & * There are different eras of product interests and management change that Apple has gone experienced its inception in the 1980’s when they launched the Apple 1. Mapping the most recent period of Apples growth on a strategic canvas, from the launch of the iMac in 1998 through to the iPad launch (2010) we can visualize a series of interconnected sigmoidial curves gradually increasing with each new innovation and product launch, as shown in Figure 3.In fact, the gradual treadline † / ncreasing to the right in Figure 3 reflects a buoyant and productive company with clear growth from strategic product development, delivery and acceptance (depending on the market KPI used). Presently, given the rapid development by other competitors in the tablet market, Apple Inc. would need to accelerate innovation and product delivery within the next 6 – 12 months to avoid another dip and loss of competitive advantage. This may require a change or transition in new management and of course a new updated product e. g. pdated iphone from 4 to 5 with more capabilities and apps (See Figure 4 Strategy canvas). . * &/ ! &0 1 & Future strategy scenarios which Apple may need to engage in order to reinvent itself in the ensuing post 2010 era are many and varied. Given Apples’ history to date and without climbing the walls of the Apple head office and being a fly on the wall it is unwise to predict what Apple may come up with next. They will however need to improve their product range or in novate around their range of iPhone, iPod, iTunes and iPad etc. o maintain market capital. They need to be constantly innovative and invest in their R&D department to have any chance of keeping the current Blue Oceans, ‘Blue’, and require time (which is no luxury in the Funky Business world of the 21st century), to develop new Blue Oceans. Potentially Apple could develop a strategy to have a lifestyle package called Apple â€Å"iHome† that would be able to accommodate the current avant garde movement of the new ‘energy gurus’ that are environmentally friendly and the ‘tech heads’ that enjoy the Apple brand.The iHome could be similar to the CBus system, Smart system or Building system as they are commonly known, they could † /2 incorporate their existing range and facilitate new ideas such as an iPhone that has a de novo chip which instead of using an security access card or conventional key you just swipe your iPhone to unlock your car, house front door or office. The CBus system can work in conjunction with, home appliances such as air-conditioning, automated windows, lights, security video and irrigation, effectively generating a ‘smart home or â€Å"iHome†.You can remotely set up your home with the use of your iPhone through the net, and be able to monitor your home when you are away. The innovative potential of the â€Å"iHome† package is endless but the pitfalls may include, acceptance by the market, technological maturity of the appliances in question and the competitive advantage or market acceptance of these new ‘out there’ products. In essences, it would be foolhardy to recommend a strategy for Apple post 2010, in that Jobs and his self-proclaimed â€Å"mobile-devices† company are still delivering, still leading industry segments they Apple Inc. A. Company Industry Position Apple is the iconic company behind the mouse-driven Macintosh computer, the phenomenal iPod music-player and the recently launched iPhone. The company’s marked inventiveness keeps it in the lead (Economist. com website) and secures its place in the industry. Apple’s relentless efforts and continual investments in research and development are seen to usher in more innovative breakthroughs that will further fuel the company’s further growth and market expansion. B. Industry Characteristics. With its founder, Steven Jobs, at its helm, Apple creatively designs personal computers, portable digital music players and mobile communication devices and proceeds to manufacture and market them. The company as well offers to sell and to service related software, peripherals and networking solutions. (Google Finance website) Apple has such an immense following that is made up of the individual consumers, the small and mid-sized business (SMB) enterprises, the education sector, the government agencies and the â€Å"creative consumers. † (Apple Inc. 008 10-K) The latter pertains to Apple’s special niche market composed of young and trendy people who can afford to discard relatively new gadgets for want of more updated versions of the same products. The more recent ventures of the company include the selling of a myriad of products manufactured by other companies specifically to cater to such special market niche. These products include application software, printers, storage devices, speakers, headphones, accessories and peripherals of all sorts, and digital content that are all tailored for the Mac, iPod and iPhone. Apple Inc. 2008 10-K) Apple has an established market all around the world. It has set up a dynamic marketing network through its â€Å"online stores, retail stores, direct sales force, and third-party wholesalers, resellers, and value-added resellers. † (Apple Inc. 2008 10-K) It should not come as a surprise to know that Apple puts up with a lot of aggressive competition in all the markets it caters to – markets for computers, digital music devices, mobile communication gadgets, all the related paraphernalia and for the services attached to these products. Apple Inc. 2008 10-K) But no matter how stiff competition can be, Apple has emerged as an undisputed market leader. In fact, Apple has reaped increased earnings this economically difficult year (2008) while most of other companies incurred huge losses. In the same tune, Apple offered last Black Friday only 8% off its new MacBook, 4% off a 20-inch iMac, 5- 8% off iPods and none off iPhones while analysts predicted discounts to reach 15% (Frommer, Yahoo! Finance webpage). Apple is obviously no t keen on competing based on prices. As the company behind such signature products as iMac, iPod and iPhone, Apple can well afford to price its products higher without having to worry about losing the market to competitors offering cheaper products. Technology and its optimization are among the factors behind Apple’s success. Its products are deemed â€Å"new technology† and the technological aspects of its products are optimized for exclusivity. Thus, users of any one of Apple’s products are bound to be captured clients for the others in the company’s menu. The technological inter- relatedness of Apple’s products presents a distinct advantage that it is wisely making the most of. Apple’s products are theoretically homogeneous; the market is awash with all kinds of computers, music-players and mobile phones. But then, such products are more considered as rather unique. Author McNees has written that â€Å"in a mature market with highly homogeneous products, well-executed small differences can make [a given product] unique and [sought after]. Indeed, the leverage brought on by Apple’s industrial-design machine makes its product stand out in the market. This constitutes another major advantage enjoyed by the company. Meanwhile, there are also serious disadvantages that Apple is saddled with. For one, the company is highly susceptible to the adverse effects of a prevailing bad economic condition which both causes the market value of the company’s shares to take a dive and substantially reduces the earning and sp ending capacity of its market. Apple also happens to be in the middle of a litigation arising from its past stock option granting malpractices. Adverse findings of the Securities and Exchange Commission (SEC) at the conclusion of the investigation that it is conducting will materially damage the company’s name, financial condition and operating results. (Apple Inc. 2008 10-K) (Please see II to IX and a portion of X in the Excel document) X. Based on the foregoing, I do not recommend that the 10,000 shares of Apple be purchased now. I would recommend keeping it as cash and then buying the Apple shares when the macro-economic factors affecting the finance world and especially the stock markets have begun to improve. At this point, the market can generally do worse and Apple might just go with such downturn with no sufficient ammunition – like significant good news – available. Works Cited â€Å"Innovation Lessons from Apple.†Ã‚   Economist.com.   7 June 2007.   The Economist Newspaper Limited.   26 November 2008 .   â€Å"U.S. SEC Form 10-K of Apple Inc. for Fiscal Year ending September 2008.†Ã‚   Apple Inc.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  26 November 2008 < http://www.apple.com/pr/library/2008/10/21results.html>. Frommer, Dan.   â€Å"Apple’s Black Friday Sale:   No 15 Percent Discout.†Ã‚   Yahoo! Finance. 28 November, 2008.   Yahoo! 30 November 2008 < http://finance.yahoo.com/tech-ticker/article/136179/Apples-Black-Friday-Sale%3A-No-15-Percent-Discount>. â€Å"Apple Inc.†Ã‚   Google Finance.   29 November 2008 . McNees, Donald.   â€Å"Hat trick:   retaining customers, finding growth and achieving attractive returns are not easy in today’s mature financial markets, but a handful of companies are doing all three.†   The Free Library by Farlex. 29 November 2008 < http://www.the freelibrary.com/Hat+trick%3a+retaining+ customers%2c+ finding+growth+and+ achieving†¦-a0158908311>. White, Gerald, Ashwinpaul Sondhi and Dov Fried.   The Analysis and Use of Financial Statements.   New York:   John Wiley & Sons, Inc., 1998. Brigham, Eugene and Joel Houston.   Fundamentals of Financial Management.   Orlando, FL:   The Dryden Press, 1998. Apple Inc. Apple Inc. is an American multinational corporation with a focus on designing and manufacturing consumer electronics and software products. It was established in Cupertino, California on April 1, 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne, and incorporated on January 3, 1977. The company's hardware products include the Macintosh line of personal computers, the iPod line of portable media players,the iPad line of tablets, and the iPhone line of mobile phones. Apple's software products include the OS X operating system, the iTunes media browser, and the iLife suite of multimedia and creativity software.As of 2008, Apple Inc had acquired twenty-one companies, purchased a stake in two companies, and made five divestments; most of them were software companies. Apple had not released the financial details for most of these mergers and acquisitions. Apple's business philosophy is to acquire small companies that can be easily integrated into existing company projects. [4] For example , Apple acquired Emagic and its professional music software, Logic Pro, in 2002. The acquisition led to the creation of the digital audio workstation software, GarageBand, now part of the iLife software suite.The company made its first acquisition on March 2, 1988 when it purchased Network Innovations. It has also made five divestments, all in the 1990s, in which parts of the company are sold to another company. The company's largest acquisition was the purchase of NeXT in 1996 for US$400 million. In the 2000s, Apple made the most acquisitions in a single year in 2002, with six. In the 2010s, so far the most acquisitions in a single year is 2013, with 10. Of the companies that Apple has acquired, 37 were based in the US.

Challenges of Scholarly Writing

Writing is a means of expressing oneself through words and even a method of sharing information about different fields of study. Many have enjoyed and appreciated various forms literature that have transformed readers to another place or make them feel that they are someone else. The benefits of writing are endless. More so, it has become an integral part of a person's life and an inevitable component of the society. For without it, the world today would be bland and monotonous. Since we were toddlers we were trained to read and write so that in our adult years, we will be equipped with a tool that can advance our status in the society which can either be for personal or professional purposes. For me, writing has been an arduous but rewarding part of my life. At first, I was a little apprehensive about writing because it requires the writer to know a lot about sentence constructions, proper usage of punctuations and others. It seemed that writing was a tedious task that demanded time and effort in order to produce high-quality outputs. But after numerous writing exercises and trials, I was able to get used to with the rules and guidelines involved in writing. Because of this, I was able to be exposed to various forms of writing such as creative, technical and scholarly writing. Among the three, creative writing is the easiest and most enjoyable because it gives freedom to the writer to write about anything under the sun. It is like typing on the keyboard or scribbling on a piece paper everything that pops in your head. Meanwhile, technical writing demands technical knowledge about a certain subject which makes it harder than creative and scholarly writing. However, scholarly writing is a different story because it is arduous to write but the end results are beneficial and helpful particularly to the academe. During my days as a student, I was bombarded with a lot of scholarly papers which helped us to learn more about the courses that we took in college. There were days that ideas just came flowing in your mind that helped me finished my research or writing papers in a short amount of time. But there are also moments when you can not seem to extract any good thoughts from your brain even if you spend hours and hours researching, reading and brainstorming. This type of incident is famously known as writer’s block wherein the writer experiences a short-term inability to start or continue the writing process which is frequently caused by the lack of drive and creativity. Also, another writing obstacle is the generation of ideas or thoughts. The most difficult part of writing is the beginning and the conclusion phase. As a writer, I found it hard to organize and develop properly my views and perceptions about a certain subject matter. Even though there is a lot of information, sometimes it is difficult to synthesize all of them to make coherent and logical paragraphs. Aside from this, writers particularly students also go through many obstacles in scholarly writing such as poor structure of writing composition, incorrect usage of grammar and words, citations and plagiarism. When these factors remained unnoticed, the likelihood of generating a solid writing material would be impossible. The key to producing a well-structured scholarly paper is that the thesis statement must be direct and concise. Also, it should be supported by strong arguments at the body of the paper and followed by a conclusion that summarizes the main points and answers the thesis statement. More so, grammar and language used should be appropriate to the topic to make the paper credible and smooth-flowing. However, the most important factor to consider in writing is using proper citations to avoid plagiarism. In writing, it is inevitable to borrow ideas from other writers or previous studies. In order to avoid committing a professional misconduct, writers should cite all sources that they have used in their scholarly papers as a sign of acknowledgment that the incorporated information were taken from other publications. As an alternative, it would be better if writers tried to create their own ideas instead of copying other people’s work thus their skills in writing and critical thinking would be further developed. There is no shortcut in making excellent scholarly papers. Writers must learn the basics of writing before they can be able to yield productive outputs. Moreover, there is no alternate for sitting down and jotting down your ideas on paper so writers should make the best out of writing and try to be honest and responsible .

Power and Privilege Exclusion by Race Essay Example | Topics and Well Written Essays - 1000 words

Power and Privilege Exclusion by Race - Essay Example There is no doubt that the law has been used to further discrimination against racial minorities. The law as a political instrument. In a case called City of Memphis v. Greene, 451 U.S. 100, 123,126-27 (1981), the attempt to use the law as an agent of political discrimination is obvious. A white neighborhood association did not want the members of a black neighborhood to drive through their residential area. The City of Memphis, bowing under the pressure of the whites, passed an ordinance that closed the most convenient street giving access to the center of the city. In what can only be described as a wrong-headed decision, the Supreme Court sided with the residents in the name of "residential tranquility." A more classic use of the law as a political instrument could hardly be constructed. The in-power whites did not want the blacks to drive their streets; evidencing pure racism. Their ability to convince the city to close the street and exclude the black community from conveniently driving to the city center demonstrates a regional disregard for those citizens; and the Supreme Court's action took that disregard to a national level. Imagine, if you were a black resident of Memphis at the time, how disenfranchised you would feel. The city, as well as the nation, is telling you to drive out of your way just to preserve the tranquility of white racists. This is not the use of law, it is the abuse of law to further the agenda of the powerful and keep the out-class down. Justice and fairness. Similar to the case above, and a decision which flies in the face of the notion of fairness, the matter of Hernandez v. New York, 111 S. Ct. 1859 (1991), comes to the fore. In this instance, a prosecutor sought to exclude the plaintiff from sitting on a jury simply as a result of Hispanic ancestry. The claim was made that individual Latinos might have difficulty in understanding written documents submitted during the course of the trial, and should not be allowed to sit as jurors. The implication of this assumption is as bizarre as it is inappropriate. While the Supreme Court sided with the prosecution for technical reasons, the racism implied in the very act is clearly apparent; and its extension as a precedent speaks volumes regarding the political use of power and the law. In fact, it should be noted that "[w]here a rule has such a massively disproportionate impact, it is tempting to equate the impact, exclusion of Latinos, with an intent to exclude that grou p" (Friedman and Israel 1745). While the prosecutor in the case may not have intentionally meant to discriminate against an entire class of people, the notion that Hispanics cannot sit on American juries because they may not speak the language well enough is an ugly message to send. Imagine living in the U.S. as a third-generation Latina and being told that you were unfit for jury duty because you were sub-literate. The point you would get was that you were incapable of participating in the legal system because you were inferior as a result of your race. This is neither just nor fair. Once again, the powerful have designed and are perpetuating the institutionalized structure of excluding any one not resembling the people of privilege.

International Finance and Internet Essay Example | Topics and Well Written Essays - 5000 words

International Finance and Internet - Essay Example Countries reacted by restricting movements of capital and establishing fixed exchange rates. Starting from 1973, industrial countries began to reduce restrictions on capital and exchange rates were driven by forces of competition between markets. Modern theory of trade encourages trade liberalisation towards global welfare. Trade liberalisation would enable countries to specialize in producing products they have comparative advantage at producing at more quantities and less costs. Eventually the world would enjoy more products at lower costs. The integration of innovations in Information and Communication Technologies (ICT) with trade liberalisation has lead to the emergence of International E-Commerce (IEC). IEC is a subset of e-commerce and it is defined as an on-line commitment to sell a product that result in the import or export of goods or services cross-borders. IEC still accounts for a small portion of overall international trade (USGAO 2002). Investment in ICT generated new financial instruments leading to invention of new means of conducting business worldwide. The Golden age of European economic growth (the period between 1950 and 1973) was superseded by the United States productivity growth that outperformed European productivity growth. ... During the 1990s there was spectacular progress in ICT production, which encouraged more capital investment in ICT causing ICT equipment to become much cheaper. ICT production became larger relative to GDP in the United States. EU has lagged behind the United States in ICT investment and in the contribution made by ICT to labour productivity growth. For most EU countries except Ireland, ICT production accounts for smaller proportion of GDP than in the United States (Crafts 2003). Weak investment in ICT in Europe is related to regulation. Employment protection legislation, which raises firing costs, is an obstacle to the reorganization of the labour force and work practices which are central to obtaining the payoff from ICT. Although Europe has moved in the direction of deregulation and some countries have a strong advantage over the United States in human capital, the continued strength of employment protection remains as a drag on ICT capital investment. ICT investment is likely to boost growth (Crafts 2003). 2.1 Economic Effect of Information and Communication Technologies It is assumed that innovative ICT will make financial transactions easier, secure and at a lower cost. It is possible to lower transaction costs since information costs make up a great portion of the transactions costs. Transaction costs are mainly operation cost. In the B2B segment, the use of e-commerce technologies, i.e. primarily electronic information exchange among enterprises, optimizes production, inventory keeping and distribution (Wenninger, 1999). Automating transactions may markedly reduce the procurement cost before, during and after a transaction,

Personal essay Example | Topics and Well Written Essays - 1750 words

Personal - Essay Example Back to those days when I was in elementary school, my parents were busy with work, so needed to get used to staying at home all by myself. This was so, because it was legal in my home country to leave children alone at home. I still remember the first time my mom needed to leave home for some emergency, and I had to stay at home alone for the first time. After my mom locked the door, I ran to the window and watched my mom leave, with my tears flowing. I felt so afraid and helpless at that time. Even now, I still remember the feeling. I did not understand why my parents were so busy everyday that they had no time to accompany me. This bewilderment on my part no doubt created some emotional distance between us. Just like most teenagers, I experienced my rebellious period. I was extremely tired of my parents at that time, and I thought they did not understand me. No matter what they said, it seemed I was always wrong. I liked to shut myself in my room after I got home from school, then I would not show up until next morning when I needed to go back to school for classes. I did not truly understand my parents until I went to college. Although my resistance towards my parents weakened after the rebellious period, for most of the time, I ignored what my parents told me. I did things following of my own thoughts and will. In retrospect, I realize what my parents told me was quite useful for my future life. Because I had been an independent child from an early age, my parents thought I could take care of myself, and were confident to let me go on my own and study abroad to secure a better future for myself. I was accustomed to traveling around on my own, and I was very excited about studying abroad. When my father asked me whether I was fully prepared to study in the United States in all seriousness, I answered â€Å"yes† without hesitation. In my mind there was no difference between studying abroad and studying out of state within my home country. I naively th ought I was mature enough to take full charge of my own business without help from anyone. When I really set foot on a foreign land and started a totally different life though, I came face to face with my self-righteousness and naivete. It was then that I began to understand why my parents were very worried about how my life would turn out in a foreign country, without them by my side. Perhaps it was from the moment that I started to live in the United States that I really grew up to be a person who can be responsible for myself, as well as for my parents. When I was living by my parents’ side, there was nothing that I needed to worry about. My parents assumed all of the pressures of my life, and my only task was to live well, and study well. When I came to the United States though, I needed to take over every single task of life, from renting an apartment to buying groceries. All of a sudden I realized how difficult it was to live a comfortable life. It is a great thing that my mom managed the life of the whole family. When I was living with my parents, I would stay far away from my parents for a long time. I never thought how my parents would miss me back at home, and of course I never missed my parents then. When I came to the United States though, I kept thinking of my parents and how they were. I would come back home on summer vacations and knew they were happy to be with me, even though they

The Gun- Control Debate Essay Example | Topics and Well Written Essays - 750 words

The Gun- Control Debate - Essay Example A person feels a lot safe when he is in custody of a small weapon for his personal protection. These people accused the other side of politicizing this shooting issue. Therefore, there is an ongoing heated debate around the country. The proponents of gun control point out to the consequences of lax measures, whereas the opponents of gun control point to the constitutional right of possessing arms and ammunition. The Dishonest Gun- Control Debate Kevin Williamson in â€Å"The Dishonest Gun- Control Debate† has appealed to both the judgment and the emotions of the American people. The goal of this author is to convince the audience that the gun control debate is unfair and corrupt. Williamson states several rational arguments to put forward his point of view that the debate is deceitful. He argues that there is no connection between guns and crime rate and puts down several facts and figures as well as comparisons between countries. Statistics show that there is no correlation b etween guns and crime committed. There are places in the world where there are huge stockpiles of guns but no crimes, others where there are fewer guns and still less crime. Likewise, he mentions a research study by Zack Beauchamp to point out the tactics used by the politicians to manipulate the gun violence statistics. Through this, he has tried to appeal to the better sense of the American people. The writer has made an excellent use of some of the rhetoric devices to persuade the audience to his point of view. When the writer states, â€Å"We hear a lot about â€Å"gun deaths† in the United States, but we hear less often the fact that the great majority of those deaths are suicides,† he made effective use of antanagoge- criticizing and complimenting together to lessen the impact of the point. The writer has made an impressive use of epithet- a describing adjective- to appeal to the audiences’ emotions. Similarly, Williamson has mentioned an anecdote from his personal life to provide his perspective on the debate. He states that he lived years in one of the most voiced crime riddled area of New York; however, he never became a victim despite travelling late at nights. The author has made use a vibrant tone in his article. He has used some of the authoritative words and phrases to illustrate the grim of the debate. At the same time, the author has maintained an eloquent structure of writing where opinions, facts and illustrations are presented in a coherent manner. Nonetheless, Williamson has lacked in the effective usage of pathos and clearly failed to appeal to the emotions of the people. However, Williamson has, overall, made an effective use of the rhetoric devices to appeal to the sense of the people. The Gun Debate is a Cultural Debate Trevor Burrus in â€Å"The Gun Control Debate is a Cultural Debate† argues that the gun issue has always been a cultural issue. One culture argues that gun possession leads to violence while t he other follows that gun possession promotes safety. Therefore, the author in this article has tried to convince the people about the presence of cultural divide on this issue through logical reasoning as well as appealing to the community beliefs and attitudes. The writer has tried to make effective use of anecdote, epithet, appositive, apostrophe and logos to persuade the audience to his point of view. However, the logical reasoning

Senior Project - Team Video Analysis Report Essay

Senior Project - Team Video Analysis Report - Essay Example 3. Order systems are not integrated which is slowing the process of shipping. As Warren and Jack discuss the current systems, it is clear that the process is extending the wait time to an untenable period of time for both the economic efficiency of the company and in the wait time for the consumer. 4. The system as they process orders is being stalled at the book storage area. 5. The meeting that was used to convince Elizabeth was not successfully presented. Elizabeth’s concerns about finances were only addressed in a cursory way, thus she comes out of the meeting with low confidence about how it will be received by the board. 6. While the new integration process has potential, the project calls for the use of some of the existing employees in the IT department, but there is no discussion as to how their current duties will be handled while they are on the new project. This is likely to incur extra costs on the backend. Week 3 Problem 1 The problem that Debbie has noted in the post-purchase system where customer service is concerned is an example of the problems that the company has with a lack of integrated systems in which the entire process of purchasing has been considered. The specific issues that have emerged with post consumer relations are quite easily fixed for the initial problems by first creating a more consumer friendly directory for contacting the company on the website and then by second making the menus for the telephone system more user friendly and less time consuming. Because of the time spent handling the complaints about the system, the efficiency of post-consumer purchase is hampered. Thus, in making these two simple changes, the most important aspect of the purchase process is saved – that which gives the consumer a good experience and encourages them to repeat their business. Problem 2 The organization is failing to meet expectations where the management of knowledge is concerned. Because the information is given out in dos es to those involved in projects, it is clear that decisions are being made without full exploration of the problems that are likely to arise. Elizabeth seems to be the last to know and isn’t given a full picture of what is required rather than at the head of the enterprise. In the process of deciding how to increase productivity, she is listening to only one idea that has a high price tag without considering alternatives, thus she does not have a wide knowledge of the possible solutions. She needs to insist on options so that she approaches the problem with a wider level of information, which is then shared with all who would be involved. Problem 3 The system is not being run at the efficiency that it could be run, but the proposed project to increase the efficiency is both costly and will consume a great deal of man hours. It is clear that alternatives need to be explored. Alternatives need to be explored by Warren so that he is sure that Jack’s proposal is the best possible solution, both financially and towards the increased efficiency. Problem 4 The focus, just as it is in Jack’s plan, is to increase the efficiency at the book storage area. This area requires people power rather than automation which is decreasing time efficiency. However, Jack’s plan automates this area and will change the labor needs. The costs of the labor in balance with the costs of the new system should be weighed, thus challenging the need to lose employees and whether or not

The New Advancement in Treatment of Prostate Cancer - PROVENGE Term Paper

The New Advancement in Treatment of Prostate Cancer - PROVENGE (sipuleucel-T) - Term Paper Example Sadly, according to Vogelzang (1996), metastatic HRPC is responsible for almost all prostate cancer deaths. Medical options currently available for the treatment and management of prostate cancer include radical prostatectomy, radiation therapy, mitoxantrone, estramustine, vinca alkaloids, doxurobicin, and taxanes, among others (Middletone, 1996; Goodin et al., 2002). The choice of therapeutic management, however, is greatly determined by how advanced the disease has become. For instance, studies have shown that radiotherapy and radical prostatectomy could increase survival rate of patients with stage 1 and stage 2 prostate cancers by as much as 95% in the next 5 years but were no longer effective in treating the disease in its metastatic stage (Middleton, 1996). On the other hand, for patients with HRPC, taxane-based chemotherapy has demonstrated a modest survival advantage, but median survival after treatment is only 19 months (Small et al., 2006). Moreover, not all cancer patients are candidates for chemotherapy. Hence, more effective treatment regimens for advanced and metastatic prostate cancer are needed. A more recent advancement in the field of prostate cancer management is the use of the patient’s immune system to combat the disease through the administration of a non-prophylactic cancer vaccine (McNeel, 2007; Sonpavde et al., 2007). Sipuleucel-T, the first ever vaccine that works against late-stage, metastatic, and hormone-refractory prostate cancers, is an autologous cellular immunotherapy specifically designed to stimulate the body’s immune responses (FDA, 2010). This paper highlights sipuleucel-T (tradename: PROVENGEÂ ®) as a novel, nontoxic modality for the treatment of advanced prostate cancer. Specifically, this paper aims to review what sipuleucel-T (PROVENGEÂ ®) is, its components, its side effects, evidences of its effectiveness based on clinical trial studies, and its advantages over some of the existing prostate cancer treat ments. Discussion Among the different immunotherapy approaches investigated in the past, the use of dendritic cells (DCs), which are the main antigen-presenting cells (APCs) of the body, was found to be the most efficient way of presenting cancer antigen to the immune system (Bono et al., 2010). Sipuleucel-T, produced by Dendreon Corporation under the tradename of PROVENGEÂ ®, is a cancer vaccine that makes use of the patient’s own dendritic cells, hence the term autologous immunotherapy, to improve T-cell response (Harzstark and Small, 2009; FDA, 2010). Specifically, each dose of PROVENGEÂ ® contains at least 50 million autologous CD54+ cells activated with a recombinant human protein called PAP-GM-CSF, composed of prostatic acid phosphatase (PAP) and granulocyte-macrophage colony-stimulating factor (GM-CSF) (FDA, 2010). CD54+, a cell surface glycoprotein that functions as a stimulator on APCs, bind to its receptor on the surface of T-cells during the process of antigen pr esentation (CST, 2010). Meanwhile, PAP is a surface antigen expressed in prostate tumor cells. Studies have shown that PAP antigen is relatively specific to prostate epithelium, making it a good target for vaccines (Oh, 2010; Nabhan et al., 2011). On the other hand, GM-CSF is an immune cell activator (FDA, 2010). The CD54+ cells collected from the patient through a process known as leukapheresis, are treated with

Marketing Theory and Practice Essay Example | Topics and Well Written Essays - 1000 words

Marketing Theory and Practice - Essay Example Consumers make varied decisions due to the fact that they have different needs and they view issues differently. However, there is a generality in behavior especially when it comes to decision making purchasing. This is the reason that makes it possible to attract the attention of many consumers with a single marketing strategy such as advertisement or attractive packaging and display. However, consumers usually tend to be predisposed towards tangible offers. There are several models that are used by marketers to identify the aspects of decision making process. This essay is a critical analysis of the aspects of the consumer decision making process. It begins with consumers identifying their needs whereby they recognize that there is a gap that requires to be filled in regard to their desires. Need identification can either be gradual or swift which depends on necessity of the commodity in question and the personality of the consumer. At this point, consumers exhibit individual characteristics that are dependent on their standards of living, awareness, feelings and stimulus (Clarke, D.B. 2003). Customers usually focus on past experiences and memories of the utility derived from purchasing particular commodities. They compare the present situation with that in which they will be in possession of the commodity. Socio-economic and cultural factors are also part of the issues that influence need identification. Need identification is usually dependent on the availability of financial resources to acquire goods or services. This means that the need for a particular item in the market may be suppressed by financial difficulties. Cust omers are influenced by social factors whereby they compare the necessity of a certain commodity with another in a family setting. They tend to arrange their purchasing needs in order of importance in to the family (Batra & Kazmi 2004). For example the decision to purchase a computer in the house may be

Coffee and Starbucks Essay Example for Free

Coffee and Starbucks Essay How Did Starbucks Become an Icon of America Pop Culture? â€Å"Coffee† is a high frequency word in people’s lives. Students like to read books with sunshine and a cup of coffee. Professors like to walk into their classrooms to start their first class with cups of coffee in hand. People usually drink coffee with their breakfast. Most fast food breakfast meals, such as McDonald’s, include a cup of coffee. A cup of coffee in the morning can give people an energetic and fresh day. â€Å"Americans really do like coffee. † This saying comes from a video called The History of Coffee Culture in America. Coffee culture is profound in America. Most American people love coffee not only because coffee culture is popular and cool, but also because it tastes good. Americans already had adapted well to let coffee become a part of their lives. When the topic comes to coffee, people always think of Starbucks because it is different from other coffee stores. It has customized service, superior taste, a wide range of options, and unique packaging and ideals. As time goes on, Starbucks more and more approaches people’s lives and becomes an important part of the coffee culture in America, even in the whole world. Now, the Starbucks brand has become a part of pop culture in this 2 wang century. It uses a superior product, unique principles and attractive designs to make an ordinary coffee shop become special and exceptional. Starbucks is the largest coffeehouse company in the world (Starbucks). It had 10,924 stores in the United States in 2012, and the company has been expanding and growing quickly in the two years since (Starbucks Company Statistics). The first Starbucks opened in Seattle, Washington, on March 30, 1971, by three partners who met while they were students (Starbucks). People always think the Starbucks green logo is Heather Graham holding up two striped bass, but the symbol actually means obsession, addiction and death. People may not realize that the woman in their green label with twin fishtails is a siren from Greek mythology. She was chosen as the logo because Starbucks was looking for a nautical theme to capture the spirit of Seattle (7 Horrifying). Maybe people will ask, then why is Starbucks called â€Å"Starbucks†? The name â€Å"Starbucks† is not picked randomly by the originator, it actually means a lot. It is nothing to do with the logo and product. Actually â€Å"Starbucks† is a person’s name. In a famous novel called Moby Dick, the whaler â€Å"Pequod† has a first-mate who loves coffee very much. His name is Starbucks. The book Pour Your Heart Into It-How Starbucks Built A Company One Cup at a Time is written by Howard Schultz. He is Starbucks’ chairman. He thought the name â€Å"Starbucks† reminds people of the sea adventure stories and histories about coffee merchant travel around the world to find high quality coffee beans (Dori Jones Yang). The originators actually expected a lot from this name and this company from the beginning. 3 wang. Thefirstandalsothemostimportanttraitforasuccessfulbusinessisasuperior product. They are committed to buying and serving high-quality coffee to keep the pure taste. Starbucks’ coffee beans mainly come from Costa Rica and Asia. They have strict management system to control the quality of coffee beans and other products. That is why Starbucks can keep purity of their coffee (Starbucks). GreatvarietyisanotherreasonpeoplepreferStarbucks. Ithastonsofflavorsof coffees. They also have a secret menu, which not a lot of people know. People also can design their own coffee in Starbucks App. Starbucks also has special coffee for each season even special events, such as pumpkin flavor drinks for Halloween. â€Å"Starbucks up to now is not just a coffee maker. It actually only makes coffee-flavored drinks,† a Starbucks’ marketing manager said in a promotion video. They are professionals at making coffee drinks, and firstly they have to learn how to make it right. Legend is one of the originators; he went to Italy-the birth of coffee-to visit for a few months before they started the business. Starbucksalsohaveauniqueideaabouthowtosealcoffeethathascreativenew practices around the country. They uses Italian words for the cup size such as â€Å"Grande† for medium, not only to demonstrate that they are professional, but also to give people a feeling that it is cool and fashionable. Even though people do not think â€Å"Grande† can prove this coffee store is professional, it will still give people a feeling that they are special. Starbucks does not give much advance publicity, and they do not have a lot of 4 wang posters, but the few posters they have are concise and specific. The main idea of the poster is to express that coffee is equal to energy. The â€Å"Morning† set of posters tells people they need caffeine to make the day full of energy. An energetic day sounds attractive, so Starbucks’ use of people’s desire to have â€Å"an energetic day† encourages people to buy coffee. Starbucks also has another feature. They are not the same as other coffee stores, which encourage people to drink slowly and enjoy the coffee. On the contrary, they make â€Å"fast coffee. † Starbucks has a drive-thru, which is the principle for fast food. Fast coffee attracts different customer groups than other coffee stores. â€Å"Fast coffee† is more suitable for office workers, administrative workers, students, teachers, etc. who are adapting to the fast paced life. They are not poor and they do not have time to sit down and enjoy coffee in the coffee store, so Starbucks is absolutely suitable for them. These kinds of customers account for the vast majority of people. The totally different principles make Starbucks become a totally different coffee store, standing out and becoming a leader of the whole coffee market. The huge customer base makes Starbucks become a part of the coffee culture, not a small coffee company any more. The huge customer group also gives this logo special definition, which is fashionable and cool. People have group psychology, which means people usually are interested in the activities that other people are doing. For example, if 90% of one’s friends like to eat â€Å"pepperoni pizza† for lunch, then that person must want to try it, unless he/she hates pizza. The Starbucks image is another feature. Not a lot of coffee stores write the 5 wang customer’s name on their cup. That is interesting and makes the customer feel special. Starbucks’ special management philosophy and principle make it special enough to make people talk about it and want to become a part of pop culture, too. Thereisanoldsentence,â€Å"Firstimpressionsareveryimportant. †Thedesignand appearance are the first impression that Starbucks gives to customers. So the attractive design is also an important reason why Starbucks has become a part of pop culture in this century. The first important design is the logo, which is the â€Å"enchantress† from the Greek mythology. It gives customers a feeling of mystery, pretty and decorative. The outstanding logo makes their products attractive. Starbucks sells their â€Å"Starbucks China Cups† for not a low price, but still a lot of people want to buy it. The main reason is they are pretty, and people do not think cups with a Starbucks’ logo are ugly. The second reason, of course, people think Starbucks is cool and popular. It is a symbol of fashion. A wide range of options and attractive design makes Starbucks products become more and more welcome. Not only the pretty logo and the products, the gift card is another highlight of attractive design. Most big companies or stores have their own special gift card, but Starbucks has many. They have tons of different design gift cards each year, for different seasons, special festivals, birthdays, birth and graduates. Their pretty designs and special meaning made them popular. Starbucks is popular,but customershave topay forit. Starbucks’ averageprice for coffee ruled higher than other coffee stores. A tall latte in Starbucks is $3. 00 without tax. 6 wang In McDonald’s it is only $1. 99, and in Dunkin Donuts it is only $1. 69 (Yahoo Answers). Thus it can be seen that Starbucks goes far beyond the average price. If people want to enjoy high quality coffee or catch up with fashions, people have to pay more money. Different company usually has different consumer orientation. High-level consumer group usually do not care about a few dollars. They only care about the quality and how easy and fast it is. Actually that group of people is in the minority. Most people care about a few dollars, especially people who loves coffee. Spend few more dollars on each cup of coffee is actually a huge number of money. People have to face a trade-off. Want to catch up with fashions or improve the status? Then pay more money first. NoonecandenythepopularityofStarbucks. Itusesitsspecialdesigntocatch customers’ eyes, such as their representative logo and their special design cups. Then they use excellent products and unique taste to keep customers coming back. Finally uses people’s group psychology and the strong principle to make themselves to became a part of popular culture, not only a coffee shop. Now, Starbucks is a trend. It is expensive, but still a lot people chase after it. Work Cited Coffee Culture. Wikipedia. Wikimedia Foundation, 04 Sept. 2014. Web. 16 Apr. 2014. 7 wang Curtasu, Matei. Starbucks Good Morning! Good Morning! Behance. Behance, 11 July 2012. Web. 16 Apr. 2014. Starbucks Company Statistics. Statistic Brain RSS. Starbucks Company Statistics, 12 Aug. 2013. Web. 14 Apr. 2014. Starbucks Wikipedia. Wikimedia Foundation, 04 Sept. 2014. Web. 16 Apr. 2014. The History of Coffee Culture in America. History, Travel, Arts, Science, People, Places. N. p. , n. d. Web. 16 Apr. 2014. Why is Starbucks coffee so expensive? Coffee isnt worth five bucks! Blinkie dot org. 5 Nov. 2012. Blinkie dot org. 30 Apr. 2014 Wikipedia. Wikimedia Foundation, n. d. Web. 16 Apr. 2014. 7 Horrifying Historical Origins of Famous Corporate Logos. Cracked. com. Cracked, 16 Feb. 2012. Web. 16 Apr. 2014.

China Social Classes

China Social Classes The social class structure of China has a long history, ranging from the feudal society of imperial times to the industrialising and urbanising society of today. The traditional Chinese social structure was distinct in many ways from the Western societies. Not only has the Peoples Republic by far the largest population ruled by a single government, and has lacked an institutional church or otherwise powerful religious elite, it has also always had a unique and highly developed lineage system operating alongside a centralised bureaucratic political structure. The former disparities have led Whyte et al (1977) to conclude that modern processes of social change would proceed differently from both the West and other developing economies. The main aim of this essay is to describe and account for the changes in Chinas social classes since 1949. It is important, however, to firstly define this term so that a clear distinction of the social groups within the Chinese society can be drawn. It will become apparent, that not only have the changes for the various classes been vast, but also that the Maoist government had been hugely occupied with stratifying their people as a means to abolish the class structure to ultimately reach an egalitarian society. The principal line of reasoning of this paper is that these conflicting events have created the greatest divide amongst Chinese society, i.e. between the rural and the urban population, whose consequences are still omnipresent today more than thirty years after Maos death. â€Å"Class, at its core, is an economic concept; it is the position of individuals in the market that determines their class position. And it is how one is situated in the marketplace that directly affects ones life chances.† (Hurst, 2007) This was theorized by Weber in his three-component theory of stratification which includes wealth, prestige and power on the basis of unequal access to material resources.† (Weber, 1964). One of the most prominent Chinese sociologists and author of Xiangtu Zhonguo, Fei Xiaotong, argues that Chinese society consists of a meticulous ranking of people, who are classified according to distinct categories of social relationships. While western societies are made up of an organisational mode of association (tuantigeju), Chinese society is created by applying logic of chaxugeju, i.e. an egocentric system of social networks linking people together in multiple ways through moral demands on each person in a specific context. As such, Fei argues, China should not be viewed as a class-based but a net-work based system. This notion is a harsh contrast to the Marxist interpretation and to the use of class-analysis that Mao and others applied in an attempt to change Chinese society and to mobilise the peasantry, rather than as a way to understand it. Maos idea was to use Marxism to break through the old relational bonds of society, which he labelled feudalistic, and to create new ca tegories for rebuilding the social order. Much of the difficulties in understanding the Chinese concept of class stems from the tumult within the society it is intended to analyse. As Kraus (1981) notes first revolution, then rapid industrialisation have compressed a broad range of radical social changes within a single generation. And most of all, â€Å"changing Chinese approaches to the class system of the PRC are themselves elements in the social conflict which they prescribe, illuminate and obscure† (ibid). The Party had a great interest in class analysis, which was purely strategic, never academic. Maos 1926 essay â€Å"the Analysis of the Classes in Chinese Society† opens with the question â€Å"Who are our enemies? Who are our friends?† (Selected Works of Mao Tse-Tung, 1967). In order to reach one day the desired egalitarian society that Marx had proposed for the future the party had to specify the social order of the present time and of each individual c itizen. That way, potential support could be identified and mobilised, the enemies isolated and the intermediate classes be persuaded to join sides with the revolutionaries. In an attempt to identify the people who should receive benefits and those who should lose them, the Party applied a complex system of over sixty class designations which ranged from categories that were clearly bad such as capitalists and landlords, through to intermediate designations of petty bourgeoisie and middle peasant, to the workers and poor peasants in whose name the revolution had been made.1 The unfamiliarity of the ordinary people and many cadres with the Marxist notion of class categories led Mao to demand the press to publish the categories in newspapers so that all persons could understand the significance of their new class designations. Since the revolution was based in rural areas, the semi-feudal set of class designations was more elaborate than others. Kraus (1981) suggests that the differen tiation of rural classes was complex both because of the wide-ranging relationships which they encompassed and because of the Partys experience with them. It is for this reason that the designation of strata within classes was particularly rich, including e.g. hired agricultural labourer, poor peasant, middle peasant, rich peasant etc., while the varieties of landlords are even more impressive and contain a certain connotation, such as enlightened landlord, bankrupt, tyrannical, reactionary, hidden or overseas Chinese landlords. Although the Party worked systematically in applying the theories of Karl Marx in designating the different classes, and although Marxs theory of class has been subject to considerable controversy among academics and practicing revolutionaries, it is certain that Marx never understood class to be what twentieth-century western social science calls stratification. Unlike the latter, which is essentially a static concept, class is embedded in history, is dynamic and is centred upon the question of change. Dahrendorf (?) adds that, for Marx â€Å"the theory of class was not a theory of a cross section of society arrested in time but a tool for the explanation of changes in total societies.† Social Change under Mao: During empirical times prestige was generated from education, abstention from manual labour, wealth expended on the arts and education, as well as a large family with many sons and an extensive personal network. In summary, there was no sharp divide between the elite and masses, and social mobility was possible and common. Chinese society since the second decade of the twentieth century, has been the subject of a revolution intended to change it in fundamental ways. As the model shows, Chinese society now has a peasant class, a working class (which includes urban state workers and urban collective workers as well as urban non-state workers and peasant workers), a capitalist class (about 15 million), a cadre class (about 40 million and a quasi-cadre class (about 27 million). According to Li Yi the basic pattern of Chinese society was established by 1960, and all changes since then, including the economic reforms in the 1980s have only been modifications and adjustments to the pattern. Li describes this pattern as â€Å"cellular†, i.e. most people belong to one large, all-embracing unit such as a factory, government office of village. The main transformation of the society was carried out by the party during the 1950s in a series of major campaigns. Society was organised â€Å"vertical†, i.e. each individual and social group was put into a hierarchically organised system as opposed to belonging to social institutions that were organised horizontally by their members. On the macro-level one could find the pervasive system of the cerntralised buraucracy (xitong) which itself was organised according to the ‘branch (tiao) principle. The micro-level was represented by work-units (danwei), state-enterprises and rural collectives, which encompassed each individuals live comprehensively. As White (1993) notes, this â€Å"system of verticality has led to social encapsulation† , which means that individuals and groups were â€Å"encloistered† within their units and separated from other units at the same level. Cadres after 1950s: After 1949, the Communist Party cadres became the new upper class in China, with the revolutionaries ruling the country. Their status allowed them access to materials and options that werent fairly distributed or otherwise reachable. Especially housing, which was in great demand particularly in the larger cities, was easily accessible for cadres who were protected from the intense competition for the scarce living space. Countryside: When the communists came to power in the 1950s, the social hierarchy changed fundametally. The communist party held peasants and those people in esteem who had joined the communist revolution. In an attempt to reduce rural inequalities, resources were confiscated from the wealthy, and since wealth consisted primarily of agricultural land, the landlord families were the target of harsh punishment campaigns. Many of the latter as well as educated elites lost their land and other properties and many were executed in retribution for the exploitation of tenant farmers. From 1951 one, the initial land reform redistributed the confiscated land equally and foremostly to those families who didnt own any for them to farm privately. In 1953, however, a series of reformes were implemented in which the government began taking back this land, designating it as community property. â€Å"Families were required to work larger plots of land collectively, in groups of twenty to forty households† (bookrags.com, 2008) and the harvest was split between the government and the collective. At the same time, local governments took over commerce, shops, markets and other forms of private trade and replaced them by supply and marketing cooperatives and the commercial bureaus of the local governments. Thus, instead of using the farmed produce for themselves and instead of selling of the surplus on local markets, individuals were â€Å"paid† for their efforts in points by the newly established supply cooperatives, which then periodically traded the grain for money. On the whole, the size of the unit was increased and the role of private ownership as well as inherited land was decreased. By the early 1960s, an estimated 90 million family farms had been replaced by about 74,000 communes. Maos overall vision was to capitalise on the sheer number of peasants and effecitvely produce a surplus harvest that would help industralisation. This was known as the Great Leap forward, which is now widely regarded as a failure since it had resulted in the death of more than twenty million peasants. Urban life after 1950: At the same time as the land reforms were implemented in rural areas, large industries and in fact virtually all privately owned business were nationalised in the cities and craft enterprises and guilds were reorganised into large-scale cooperatives which became the branches of the local governments. Just as farmers were put into communes, state workers were placed in large work units called danweis. In an effort to ensure full employment, market competition in these firms was eliminated. People leaving school were assigned jobs bureaucratically, and once matched a job, employees could not quit voluntarily. But they could not be fired either, and thus had a job guaranteed in the same company for life with their children inheriting their position. In fact, there did not exists such a word as ‘unemploment in the Chinese language, according to the idea that there exist no unemployment in socialist countries, only individuals â€Å"waiting for work† (Imamura, 2003). Mobility within the danwei mostly only consisted of gaining administrative promotions. Since most of the alternative routes to social mobility were closed off, formal education continued to be the primary avenue of upward mobility. But since the urban education reform grew at a rate much faster than in rural areas, more and more workers were high school graduates. The slowing of state industries and the increasing number of qualified middle class candidates contributed to the fact that it became increasingly difficult to obtain a position as a state worker. Hence, urban youths not selected for further eduaction and those looking for work were often sent to rural areas to work in agriculture. This flow has been increased by more intensive mobilisation and a new law was passed that demanded secondary school graduates to work in agriculture for at least to years before becoming eligible for further schooling. In this mode, a total of 12 million urban youths were moved to the countryside betwee n 1968 and 1975 (Whyte et al, 1977). These large transfers of urban people to rural areas were made possible by the state monopoly over employment and urban housing, by the hukou registration and rationing, and by the impressive political network that had alrady been established in all neighbourhoods. On the whole, one can say that this rural settlement has been accomplished by social pressure rather than by incentives to move. It is debatable whether this massive programm of population transfers was intended primarily to â€Å"avoid having large numbers of ‘unemployed people living in cities parasitically† (Bernstein, 1977), or whether this was meant to be part of a more positive effort to close the rural-urban gap by supplying villages with well-educated and more scientifically sophisticated personnel. Urban inequalities were further reduced through salary compression in firms. Differences in the salary paid for high-skill, high-prestige occupations such as doctors and other professionals, and blue-collar work such as unskilled factory employees was decreased dramatically. Efforts were also maid to downplay the social importance of the former and to increase the prestige of the latter. Ever concerned about economic inequalities, the government also appropriated wealth and abolished labout markets in urban areas. Privately owned housing was seized and subdivided into much smaller living spaces. Effectively, families could rent apartments but never purchase them, which abolished a key element in wealth inequalities because properties could not be perpetuated from generation to generation any longer. Communist overall: position? It is readily distinguishable that communism has brought about far-reaching changes in China with the rural population having to adjust to the shifting ideological currents. Traditionally, the average citizen, and especially the more than eighty percent rural population, had little or nothing to do with the central of local government. Most peasants lives were centred on their home village or township, while the family was the main unit of economic production and social activity. The Maoist revolution, however, injected the Communist party into every sphere of rural and urban life and every institution of society. Thus, for the average Chinese citizen, whether rural or urban, Communism has brought about an almost intrusive role of governmental element into the daily life and embedded itself in the operations of all significant facets of the economy and society. The formerly local, small-scale and fragmented power structure was replaced by a national and well-integrated bureaucratic s ystem. The unpredictable consequences of market forces were replaced by administrative allocation and changing economic polices enforced by the government. Rural-Urban-Divide Marx did, moreover, make out the elimination of the distinction between city and countryside as one of the major goals of the future Communist society. In the 1950s, however, and ironically enough in light of Marxist pretensions the Party drove a wedge between rural and urban areas that was novel in Chinese history. Solinger (1999) explains that its chief purpose was to lock onto the land a potential underclass, ready to be exploited to fulfill the new states cherished project of industrialisation. The party used administrative orders and resource controls to isolate the urban population, not just geographically but socially as well. Although Marx had predicted that only capitalist states would do so, the party hoped to be to be able to draw upon the peasantry as an industrial reserve army. The Hukou-System By the 1960s the Chinese government had implemented their policy of household registration which was different from anything that had previously existed both in China and in the rest of the socialist world. The aim of the hukou system was to avoid over-urbanisation, to make distribution of state services through the work units and communes easter and to better prepare the population for a possible invastion by the Sovjet Union. It eliminated geographical mobility entirely since it â€Å"fixed people permanently on the basis of their birth place or their husbands residence† (Cheng and Selden, the City) and thus made it illegal to migrate from the countryside into cities.Accordingly, all persons were required to register their place of residence officially, with records maintained by the public security office of the higher agricultural cooperative in the countryside and in the neighborhood in cities. From then on, residence status became an ascribed, inherited one, which determ ined an individuals entire livelihood and welfare based on the location of the registration. Since rations of grain, cloth and other needed articles were tied to ones hukou, individuals living in urban areas without permission had to live off friends, relatives or the black market. Although a class system in the usual sense was abolished, a new set of categories, if not precisely a new class system supplanted the dismantled class hierarchy of the past. There were 6 different levels of ranks, in descending order: peasants, non-peasants, city and town residents, urbanities, those in large cities, and those in cities directly administered by the central government. â€Å"Just after liberation, peasant households did not fell lower rank (diren yideng) and urban ones did not feel higher Later, a great difference in interest came from the differences in where one lived†¦ A ranking structure was gradually established with the peasant household at the lowest level.† (Ging, Zhongguo xianxing). Therefore, one can conclude that the hukou system did actually set up a new class distinctions between the rural and urban populace. This understanding of class draws upon Honigs work on the ethnicity of native place in China, in which she offers the rich insight that native-place identity, and thus the urban-versus-rural-identity can well serve as â€Å"a metaphor for class† (Honig, Creating Chinese Ethnicity). The boundaries placed around the rural population as a whole rendered the peasantry as a separate, inferior class or status group in comparison to urban residents. Because the generic peasant was not legally prohibited from migrating, when the Hukou was destroyed in (?), migration took on a totally state-determined and ‘class-based dimension. As Kraus rightly states, â€Å"the CCP first set boundaries around peasants, marking them off as a separate, ascribed status group almost a pariah class and then barring them from entering urban areas.† Or if they did enter, it was never as citizens, but as subjects, who were not supported with the rationed food or access to welfare services. When peasants and semi-peasants entered the city, the often felt comparatively deprived by the tightly locked city walls. Whereas everyone was poor in the country side, differences in wealth were readily obvious after entering the city. Impact of Economic Reform on Chinese Society On the eve of reform, the structure of Chinese civil society was similar to a typical less-developed country of the third world, despite Maos efforts to make certain industrial and technological advancements, which were most notable in the nuclear armaments sector. As Chinese social statistical data (Zhongguo shehui tongji ziliao) states, in 1978 eightytwo percent of the population were rural, 71% of the countrys labour force worked in agriculture or related activites, 93.3% worked in manual labour as opposed to mental ones and the private sector was negligible so that the main destinction was between state and collective sectors. The vast majority of the people, i.e. 76% worked in rural collectives, and only 5.1% in urban collectives. 18.6 % of the people worked for state enterprises. White (1993) concludes, that this institutional devide reinforced the rural-urban distintion because levels of income and conditions of work were generally superior in state firms. Since the rise of ot her classes such as self-employed or private entrepreneurs was prohibited, Chinas social structure on the eve of reform was relatively homogenous. According to White, the ‘official structure only contained two classes (workers and peasants) and one stratum (intelligentsia). In an attempt to further homogenise the members of each social group, uniform conditions of work were imposed upon them and the emergence of internal differences limited. The economic reforms, on the whole, have affected the specific social classes in different ways and have led to changes in the existing groups and have even led to the rise of new ones. This has created a new political environment which may affect the fundamental credibility of the communist regime and may influence the policy process in the future. The main impact of the reforms on society can be described as its shift â€Å"away from the state and its ancillary agencies† (ibid) towards individuals, households, firms and groups. The change in the relationship between the state and society has brought about an uneven redistribution of economic power for the latter and this dispersion of greater social power has opened up the potential for a new social sphrere with greater social autonomy from the state. One can possible observe the shoots of an incipient civil society which also brings about crucial implications for Chinas long-term political future. These shifts were part of a broader process of rapid social differentiation. Chinese social structure has become more complex both in terms of structure and attitudes because the existing classes have itself become more internally complex due to diversification in the different economic sectors, in the forms of ownership and the levels of income. Some of the new classes and strata that have emerged are: The nuveau-riche peasant, who have made money quickly in recent years through specialised agricultural production or diversification into the local industries, trade and services. (see Song article); Private entrepreneurs in the cities, who have accumulated small fortunes through personal initiatives, specialised skills or good guanxi-networks; A growing number of entrepreneurial managers in state-owned enterprises who are well attuned to the spreading logic of market competition. Moreover, Chinese society has become more fluid and dynamic again and there has been a rapid increase in horizontal mobility within the countryside, between urban and rural areas and between regions. Conclusion: The political apparatus used to destroy the old inequalities has itself given rise to a new set of social distinctions. Political power has been employed to transform Chinese society but it seems that the Party changed society faster than it has been able to modify its comprehension of a dynamic social structure. As Wallerstein concludes, â€Å"classes do not have some permanent reality. Rather, they are formed, they consolidate themselves, they disintegrate or disaggregate, and are reformed. It is a process of constant movement, and the greatest barrier to understanding their action is reification.† In the capitalist society movement between classes is a possibility. Hence the use of the term â€Å"The American Dream† to show the ability of people to ascend to a higher class through hard work and ingenuity. â€Å"Class composition is forever changing, to the point where there may be a completely new set of families.† (Schumpeter, 165) Furthermore, Chinas leaders wanted to change some aspects that were found in the traditional society such as the content of education and rural tenure, but they left other aspects, e.g. the family structure, largely untouched. In the villages the army offered the only reasonable alternative to a lifetime spent in the fields, and in fact, demobilised soldiers staffed much of the local administrative structure in rural areas. Systematic attempt by the regime to contain society within a limited number of categories. 1 see handout about social classes References: Hurst, Charles E. (2007). Social Inequality Forms, Causes, and Consequences Sixth Edition. Allyn and Bacon Boston, MA. Weber, Max. (1964). The Theory of Social and Economic Organization. edited by Talcott Parsons. New York, NY: The Free Press Selected Works of Mao Tse-tung, Beijing: Foreign Language Press, 1967, 1:13 (Wallerstein, I. (1975) ‘Class-Formation in the Capitalist World-Economy, Politics and Society, Volume 5(3) p. 369) White, G. (1993), Riding the Tiger The Politics of Economic Reform in Post-Mao China. London: Macmillan. http://www.bookrags.com/research/social-stratificationchina-ema-05/ as at 3rd. April 2008. Imamura, H. (2003) ‘Unemployment Problems and Unemployment Insurance in China Far Eastern Studies Vol.2 (March), pp.45-67. Whyte, M.K., Vogel, E.F., and Parish, W.L. (1977) ‘Social Structure of World Regions: Mainland China Annual Review of Sociology, Vol. 3, pp. 179-207. Bernstein, T. (1977) The Transfer of Urban Youth to the Countryside: Revolutionary Change in China. New Haven, Conn: Yale University Press. Zhongguo shehui tongji ziliao (ZGSHTJZL; China Social Statistical Data