Six Sigma Research Paper Example | Topics and Well Written Essays - 1500 words

Six Sigma - Research Paper Example I selected this topic so as to be better equipped with the knowledge and skills that can enable me improve the overall performance of a company I hope to work for in future; Caterpillar Incorporated. Six Sigma is a concept that has been utilized by large and highly profitable organizations to aid their businesses to perform better than before. In fact, it has been deemed as an entirely new method that works, in managing businesses according to Pyzdek (26). Six Sigma will be important to me since, compared to other techniques of quality improvement; it scores much higher and allows organizations to realize their full potentials. For instance, the Total Quality Management (TQM) technique mostly focuses on attaining predetermined quality levels but does not push the business to perform at its peak. As future industry leader who will seek to get the most from his business, I will definitely find this concept to be of the uttermost importance since it has worked for other big companies and will definitely work for me too. Six Sigma focuses on making consistent quality improvements until the organization is fully optimized. On achieving a certain quality level, the technique calls for the business to shift gears and begin concentrating on attaining better quality levels. This whole process continues to the optimization off all the business processes. Six Sigma is therefore important for any company as it will push it to efficiently produce higher quality products. This will be advantageous to me as, apart from improving the company’s overall efficiency and reducing operational costs, it will in addition give me a lead over my competitors. DMADV and DMAIC are the acronyms of the two methodologies that Sigma Six projects follow in eliminating defects from products or processes. The methodologies are both made up of five phases. Define-Measure-Analyze-Implement-Control or in short, DMAIC, is used in

The effects of high player turnover on marketing of minor league Thesis Proposal

The effects of high player turnover on marketing of minor league baseball and the perceptions of the fan experience - Thesis Proposal Example Meanwhile, observers normally reveal the baseball players’ inherent or innate ability over time (Rosner & Kenneth 199). Learning and revelation of intrinsic ability are commonplace in almost all sporting activities and occupations. The relationship between player turnover and marketing of minor league baseball underscore the importance of outstanding performance. Many baseball teams lose a significant amount of talent and revenue when high caliber players leave the baseball league. Such teams would, therefore, need a meticulous spring camp to prepare adequately for the next season. As a result, the marketing of minor league baseball is notably compromised, as well as the perceptions of the fan experience (Armour & Daniel 342). High player turnover not only affects the team’s performance during subsequent seasons but also impact its marketing approach, as well as that of the league in entirety. A positive effect on the baseball league will arguably improve its marketing approach and competitiveness. If the high player turnover negatively impacts the minor league baseball, the league consequently suffers a massive decline in its marketing goals and perceptions of the fan experience. Meanwhile, the minor league baseball could also attain considerable benefits from a high player turnover. For instance, many baseball teams in the league could still maintain their winning percentages despite high turnover differential (Fried et al. 49). Player experience also increases the batting average of minor league baseball players. The experience and reputation of incoming players would particularly influence baseball fans to rethink their arguably waning support for the league in the wake of high player turnover during a given season. Similarly, the quality and competence of players leaving the minor baseball league will positively or negatively affect their perceptions of the league (Fried et al. 49). Most

The History Of The Transformational Leadership Education Essay

The History Of The Transformational Leadership Education Essay Theories of leadership, over decades have explored a wide variety of concepts. Much research has been undertaken keeping in mind the western society both relating to organizations as well as political and other leaders. There is a dearth of a systematic leadership study in regards to either organizations or political leadership in third world countries especially in Pakistan. Journalistic appraisals are commonly done but theoretical analysis is sorely missing. Also, not much work has been done to explore the concept of transformational leadership among politicians both here and abroad. This paper wishes in some way to minimize this lack. When reading about Bhuttos life, the easiest course of action would have been to view her from the perspective of traits or simply charisma. The paper explores the contemporary concept of transformational leadership with regards to Benazir Bhutto. Her assassination formed the motivational factor to conduct such a research particularly on a personalit y known nationally and internationally as a leader. In addition, quantitative small scale researches are usually conducted from time to time, but very little attention is given to qualitative/descriptive/documentary research. Four aspects of transformational leadership that were studied include idealized influence, inspirational motivation, intellectual stimulation and individualized consideration. Keywords: Transformational leadership, there are 4 main factors: idealized influence, inspirational motivation, intellectual stimulation, individualized consideration. 1. Introduction Leadership is not easy. It is never meant to be easy. It is born of a passion, and it is a commitment-a commitment to an idea, to principles, to fundamental human values. Benazir Bhutto 2. Transformational leadership: An overview The term though coined by Downton (1973), the concept first emerged with the work of Burns (1978) which linked the role between leadership and followership. This new theory of leadership had intensive interest for two reasons. Western companies, like ATT, IBM, GM, ventured into transformations and in the 1970s and 1980à ¢Ã¢â€š ¬Ã‚ ²s the business world became very much dynamic, more competitive and less stable. Fast technological changes, great international competition, commercial deregulation, too much capacity in capital intensive industries, unsteadiness of oil cartels, demographic labour changes etc., are some of the factors which brought to such a state (Stoner and Freeman, 1992). Second, leaderships theoretic base rested on the trait theory, behaviouristic theory of leaders and contingency theory of leadership which did not take into consideration untypical qualities of leaders which required a new leadership concept. Therefore the transformational theory of leadership gave forth a new dimension to leadership studies. Burns (1978) concept distinguished between two types of leadership, namely transactional and transformational. Transactional refers to the exchanges between leaders and followers, where as transformational is when the person engages with others and creates a connection which raises level of motivation in both the leader and the follower. Some of the examples of internationally known transformational leaders include Mahatma Ghandi, Nelson Mandela, Martin Luther King. One question that comes to mind is about leaders like Hitler who also transformed society? Can they also be called Transformational leaders? When people transform society in negative ways and do not raise level of morality in others, they are described as Pseudo transformational leaders. They are self consumed, power oriented and exploitative with warped moral values. There has been some research done on political leadership but the focus of these studies have usually been on just one aspect namely charisma (Bligh, Kohles and Meindl 2004 a&b; Emrich, Brower, Feldman and Garland, 2001; Mio, Riggio Levin and Reese, 2005; Seyranian and Bligh, 2007) and especially keeping in mind high profile leaders such as United States presidents (House, Spangler and Woycke, 1991). Most of such research has a quantitative analysis where the analysis may not overlook creative insights but also due to its frequent usage it is made to be more meaningful and most often words can be taken out of context. (Bligh et al., 2004b; Insch et al., 1997; Morris, 1994) 3. Transformational leadership of Bhutto This research on Bhutto will be assessed on four parameters of idealized influence, inspirational motivation, intellectual stimulation and individualized consideration which have been summed up as stated earlier. Each quality will first be individually analyzed and then compared to what journalists and others have stated on Bhuttos behalf. 3.1 Idealized influence According to this concept transformational leaders often serve as role models for their followers. The leaders are admired respected and trustedà ¢Ã¢â€š ¬Ã‚ ¦having extraordinary capabilities, persistence and determination (Bass and Riggio, 2006). Not only this, but leadership theory should also stress on incidents where a leader has exerted exceptional influence on their followers so as to obtain favourable results (Bass, 1985; Mumford, 2006). This concept of idealized influence is based on leadership that has a future oriented vision and provides meaning and direction to a particular cause (Bass, 1990; Shamir, House and Arthur, 1993). Recent research also gives emphasis on ideological leadership where leaders seek followers who believe in the goals and value systems that give emphasis on the prescriptive mental model being given (Mumford, 2006). A current research which examines three areas of leadership has ideological factor as one of the main components (Mumford, Antes, Caughro n Friedrich, 2008). Thus, keeping all these factors in mind the assessment of Bhutto as having idealized influence on her followers has been undertaken. 3.2 Inspirational motivation According to this concept transformational leaders motivate and inspire those around them by providing meaning and challenge to their followers work. (Bass and Riggio, 2006) Such leaders envisage a future goal, a shared vision which they want their followers to share and achieve with them. Apart from this, such leaders portray great charisma which allows them to bind their followers to themselves and lead them towards social change. This concept of charismatic leadership is also not a new but a much researched one. It is one of the way in which one can understand an aspect of effective leadership (Hughes, Ginnett and Curphy, 2003). As previously stated the concept was initially used by Weber (1947) to understand and describe the characteristics political religious and military leaders. Later the concept was expanded by others to give and different conceptualization of charismatic leadership (House, 1977; Sashkin,1988; Shamir, House and Arthur 1993) and also became a part of transform ational leadership in the theories of Bass and Avolio.(1994) Concept of charismatic leadership which becomes a part of the motivational factor has been studied. The concept of visionary charismatic leadership is very important especially in times of crises as indicated in the study of Hunt, Boal and Dodge (1999). Two further aspects came to the forefront with on the one hand followers prefer leaders who portray charisma in conditions of crises (Pillai and Meindl, 1998) and followers attributing self sacrificial behaviour of the leader under crisis conditions who were more likely to portray charisma (Halverson, Holladay, Kazama,and Quinoes (2004). Such studies portray the fact that stressful conditions do affect both the leader and the follower in how they are inspired and view charisma. Another aspect of inspirational motivation is to deal with how such leader appeal to their followers. Emotions of people are appealed to and self worth is enhanced (Emrich, Brower, Feldman and Garland, 2001; House, Spangler and Woyke, 1991) Bhuttos inspirational motivation can be analyzed into two areas, namely to motivate and empower others on a shared vision and her charisma. On the count of motivating others, many authors have given glowing tributes. Gordon Brown (2008) calls it a part of her legacy that women are empoweredà ¢Ã¢â€š ¬Ã‚ ¦ and would use her for future role models; Miliband (2008) and Schofield (2008) describe her commitment towards democracy as a motivating factor; Lamb (2008) recalls her spouse Zardari calling his wife the queen bee whose workers needed her alive to continue their struggle; Gopal (2008) realizes that Bhutto did inspire a generation both in life and in death to struggle for democracy; Prasannarajan (2008) states that despite threats she never shrank from her responsibility, took up challenges and made personal sacrifices for her vision and that such motivation is rarely seen; Baker (2008) sees the signing of the charter of democracy between two political opponents namely Bhutto and Sh arif as a factor to restore decent politics and cjoining hands on a common denominator; Chua-Eoan (2008) despite critical comments concedes that Bhutto both in life and death drew millions. remember her party official Babar Awan calling her beautiful that day, in all the ways that a woman like her -bright energetic bursting with ideas and hope-could look beautiful. Such charisma denotes why Bhutto had many staunch supporters. 3.3 Intellectual stimulation Such transformational leaders stimulate their followers efforts to be innovative and creative. Followers are encouraged to try out new ideas and such ideas are viewed in the light that a better solution to the problem may be realized. Followers are not criticized if their ideas are in any way different from the ideas of the leader (Bass and Riggio, 2006). This concept has been explained differently and in various contexts. Some call it as a quality of a pragmatic leader. Such a leader does require their workers to unite and work for common goals (Mumford and Van Doorn, 2001). In a recent study Mumford et al (2008) realized that for the emergence of pragmatic leaders there has to be a minimum level of group cohesion. Apart from this, the same study also indicated that pragmatic leaders may seek to minimize political conflict due to the detrimental effects of intense conflict on the effective application of complex problem solving skills. This factor is an important aspect of intellect ual stimulation as such a quality can harness together differing viewpoints and opinions even from the opposition. Emotionally intelligent leadership is also an attribute of great leadership (Goleman, 1995) Practical intelligence and the need to modify any environment to suit the situation is also what transformational leaders need to do. Another aspect of intellectual stimulation can be accessed through the lens of aesthetic perception. This recent qualitative study by Ladkin (2008), embodies and focuses on leading beautifully and will lead to a different direction for leadership studies in the future. Followers can get stimulated in a wide variety of ways. The power to arouse ones followers intellectually can have lasting effects. An example of it would be Obamas books being published before the election campaigns. 3.4 Individualized Consideration Once again transformational leaders pay attention to followers needs for achievement and growth by acting as a coach and mentor. New ways and opportunities of learning are evolved and individual desires and needs are seen to. The individual is regarded as a whole person rather than just an employee, and the task of the leader is to develop the followers. (Bass and Riggio, 2006) This aspect is seen under two areas. The first one is her immense kindness to others and her concern for them. Schofield (2008) speaks of her 33 year association with Bhutto and states that as a friend, she was kind and generous. Barak (2008) recalls his own incident of injury and her kindness to him which must have endeared her to people the world over. In a similar manner, Thapar (2008) too remembers Bhutto giving regular calls when his own wife was seriously ill. Lamb (2008) too speaks of Bhuttos hand written will which she had written prior to her death as how to dispose of her belongings with details of how even her shoes and clothes should be distributed among her employees.

The Actions of Cocaine in the Brain Essay -- Drugs Addiction Addicted

The Actions of Cocaine in the Brain Cocaine’s mode of action has been shown to involve the dopamine receptors. This paper will discuss how cocaine affects dopamine receptors, the mode of addiction, how cocaine affects the frontal brain metabolic activities, as well as the role of excitatory amino acids in cocaine’s mechanism. I will also discuss how cocaine affects another system through its mechanism on the brain—the renin angiotensin system. Cocaine influences dopamine, norepinephrine and serotonin neurotransmission by inhibiting their reuptake. Pimozide, alpha-flupenthixol, perphenazine and chlorpromazine, all dopamine antagonists, were used to pre-treat rats in an attempt to demonstrate the reinforcing effects of dopamine. Because rats demonstrated a reduced rate of self-administration during extinction as well as after pre-treatment with antagonists, it is conceivable that dopamine receptors are involved in the reinforcing effects of cocaine (Hubner & Moreton, 1991). Two dopamine receptors, B1 and B2, are believed to be involved in these rewarding effects of cocaine. Rats were trained to self-administer cocaine intravenously on a fixed-ratio (FR) 5 schedule of reinforcement. When these rats were pretreated with SCH23390, a D1 antagonist, and spiperone, a D2 antagonist, their response rates varied. At doses up to l0ug/kg, the rats exhibited an increased response rate; whereas at doses higher than this, the rats showed a decrease in their response rate. A similar decrease in response rate was produced when central dopamine containing neurons were destroyed with the neurotoxin, 6-hydroxy-dopamine (Hubner &Moreton, 1991). The mode of action of the D1 receptor subtype is on adenylate cyclase. Upon activation, it s... ... 1. Dackis, C. A., and Gold, M. S. Neurotransmitter and neuroendocrine abnormalities associated with cocaine use. Psychiatric Medicine, 1987, 3: 469-477. 2. Hubner, C. and Moreton, J. Effects of selective D1 and D2 dopamine antagonists on cocaine self-administration in the rat. Psychopharmacology, 1991, 105: 151-156. 3. Karler, R. et. al. Excitatory amino acids and the actions of cocaine. Brain Research, 1992, 143-146. 4. Nestler E. Molecular Mechanisms of Drug Addiction. The Journal of Neuroscience, July 1992, 12(7): 2439-2450. 5. Rodriguez-Sanchez, M. et. al. Effect of Prenatal and Postnatal Cocaine Exposure on Somatostatin Content and Binding in Frontoparietal Cortex and Hippocampus of Developing Rat Pups. Peptides, 1991, l2: 951-956. 6.Volkow, N. et al. Long-Term Frontal Brain Metabolic Changes in Cocaine Abusers. Synapse,1997, 11:184-190 The Actions of Cocaine in the Brain Essay -- Drugs Addiction Addicted The Actions of Cocaine in the Brain Cocaine’s mode of action has been shown to involve the dopamine receptors. This paper will discuss how cocaine affects dopamine receptors, the mode of addiction, how cocaine affects the frontal brain metabolic activities, as well as the role of excitatory amino acids in cocaine’s mechanism. I will also discuss how cocaine affects another system through its mechanism on the brain—the renin angiotensin system. Cocaine influences dopamine, norepinephrine and serotonin neurotransmission by inhibiting their reuptake. Pimozide, alpha-flupenthixol, perphenazine and chlorpromazine, all dopamine antagonists, were used to pre-treat rats in an attempt to demonstrate the reinforcing effects of dopamine. Because rats demonstrated a reduced rate of self-administration during extinction as well as after pre-treatment with antagonists, it is conceivable that dopamine receptors are involved in the reinforcing effects of cocaine (Hubner & Moreton, 1991). Two dopamine receptors, B1 and B2, are believed to be involved in these rewarding effects of cocaine. Rats were trained to self-administer cocaine intravenously on a fixed-ratio (FR) 5 schedule of reinforcement. When these rats were pretreated with SCH23390, a D1 antagonist, and spiperone, a D2 antagonist, their response rates varied. At doses up to l0ug/kg, the rats exhibited an increased response rate; whereas at doses higher than this, the rats showed a decrease in their response rate. A similar decrease in response rate was produced when central dopamine containing neurons were destroyed with the neurotoxin, 6-hydroxy-dopamine (Hubner &Moreton, 1991). The mode of action of the D1 receptor subtype is on adenylate cyclase. Upon activation, it s... ... 1. Dackis, C. A., and Gold, M. S. Neurotransmitter and neuroendocrine abnormalities associated with cocaine use. Psychiatric Medicine, 1987, 3: 469-477. 2. Hubner, C. and Moreton, J. Effects of selective D1 and D2 dopamine antagonists on cocaine self-administration in the rat. Psychopharmacology, 1991, 105: 151-156. 3. Karler, R. et. al. Excitatory amino acids and the actions of cocaine. Brain Research, 1992, 143-146. 4. Nestler E. Molecular Mechanisms of Drug Addiction. The Journal of Neuroscience, July 1992, 12(7): 2439-2450. 5. Rodriguez-Sanchez, M. et. al. Effect of Prenatal and Postnatal Cocaine Exposure on Somatostatin Content and Binding in Frontoparietal Cortex and Hippocampus of Developing Rat Pups. Peptides, 1991, l2: 951-956. 6.Volkow, N. et al. Long-Term Frontal Brain Metabolic Changes in Cocaine Abusers. Synapse,1997, 11:184-190

Prejudice Intertextuality Essay

â€Å"Why does he hate me so much? Is it me personally or just what I am? † I have chosen to explore the idea of prejudice (judgments of a person based on race, gender, social class, and religion or group associations. ) These themes are evident in the short film ‘Chinese Whispers’ directed by Neil Paddington and Stuart McKenzie, and in three written texts ‘Noughts and Crosses’ by Malorie Blackman, ‘Patches Hide No Scars’ by Haree Williams and ‘On the Sidewalk Bleeding’ by Evan Hunter. â€Å"I used to comfort myself with the belief that it was only certain individuals and their peculiar notions that spoilt things for the rest of us.  But how many individuals does it take before it’s not the individuals who are prejudiced but society itself? † ‘Noughts and Crosses’ is a powerfully written, fictional novel about two teenagers Callum (a nought) and Sephy (a cross), who are stuck in a racist dystopia separated only by skin colour. In Malorie Blackman’s imaginative novel the characters are either a â€Å"black dagger bitch† or a â€Å"white blanker bastard. † Callum and Sephy are surrounded by a hierarchy, in which Noughts are considered second-class citizens and forbidden to be together. This disturbed society shows a racial prejudice in which interracial relationships are not allowed and there is favoritism towards the Crosses. â€Å"You’re a Nought and I’m a Cross and there’s nowhere for us to be, nowhere for us to go where we’d be left in peace†¦ That’s why I started crying. That’s why I couldn’t stop. For all the things we might’ve had and all the things we’re never going to have. † This example shows the desperation of Sephy as she realizes that because of the prejudices of her society she will never be allowed to be with Callum. This film relates back to events in the past in ‘our’ world with issues such as discrimination and the mistreatment of people of a particular race or religion. An example of this is the class-system in America. For many years African-Americans, (like Noughts), were judged by their skin colour and treated as inferior beings. Author Malorie Blackman used specific examples from events in the Black Civil Rights movement in the novel to add impact to her novel. An example used is the pioneering achievements of Robert Peary. Examples like these show that Noughts’ achievements are undervalued or ignored because they have white skin. I strongly believe it is important for children of today to be educated on issues like these to remove all racisim. ‘The Universal Declaration of Human Rights’ states â€Å"all human beings are born free and equal in dignity and rights†¦. Everyone is entitled to all the rights and freedoms set forth in this Declaration, without distinction of any kind, such as race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status. This novel has made me believe in the importance of educating young people on events and issues, like genocide (eg the Rwandan Genocide of 1994, only 18 years ago, where an estimated 7 Tutsi citizens were brutally murdered every minute for 100 days! ) and racism, in order to prevent the future from becoming a place like in ‘Noughts and Crosses’. How are we to learn from the mistakes of mankind if we are never educated on them? â€Å"Dreams of living in a world with no more discrimination, no more prejudice, a fair police force, an equal justice system, equality of education, equality of life, a level playing field†¦ † His name is Andy. † This gang related short story â€Å"On the Sidewalk Bleeding† relates to the theme of prejudice by exploring the idea of lost identity through group association. At the exposition of this story, Andy (a member of the ‘Royal’ gang) is stabbed by a rival gang (‘The Guardians’) during a ‘rumble’. The plot then follows Andy’s thought path as he slowly bleeds to death. â€Å"The knife had not been plunged in hatred of Andy. The knife hated only the purple jacket. The jacket was as stupid meaningless thing that was robbing him of his life. † Andy wears a purple silk shirt, a symbol of his membership with the ‘Royals’. In his dying moments Andy comes to the realization that people don’t see him as Andy, a human being, but a member of the ‘Royals’. At the climax of the short story Andy uses his last strength to take off the jacket so that he can be Andy again. â€Å"I want to Andy. † Sadly, just after his death, Andy’s girlfriend Laura, finds Andy’s dead body and races off to find a police officer. The police officer sees the purple ‘Royal’ jacket next to Andy’s body, the officer then proceeds to say â€Å"A Royal, huh. † This shows that Andy’s efforts to remove himself from the gang have failed as the police officer judges him by the sight of the jacket. The police officer associates Andy as a part of the gang the ‘Royals’ and doesn’t see him as Andy, a sixteen year old boy. This short story by Evan Hunter has shown me how easily a person’s identity can be lost through association and how people can perceive you as a member of a group not an individual because of an item of clothing. â€Å"The world didn’t know he was Andy. † ‘Chinese Whispers’ directed by Stuart McKenzie and Neil Paddington also relates to racial prejudice or judgments based on race before actually meeting a person. The short film â€Å"Chinese Whispers† is based around Wellington teenager Vincent Chan’s struggle to fit in. Vincent confused by the two diverse aspects of his culture. At the beginning of the film Vincent lives in fear of encounters with xenophobic bogans who dislike and harass Vincent because he is Chinese. â€Å"Vincent is ashamed to be Chinese. † Vincent feels pressure to conform to the ‘social norm’ of his age group. He turns his back on his father’s cultural ways and instead joins Swan’s triad gang. Swan offers Vincent an illicit world of reward. Vincent sees this as an opportunity to stand up to xenophobic bogans but by joining the gang Vincent isolates himself from his family. Directors Neil Paddington and Stuart McKenzie use dark, blue lightening in many of the scenes in ‘Chinese Whispers’ to portray the sad, sinister world Vincent is being lured into. This is an effective visual feature because it stresses the consequences of Vincent’s decisions. An example of this is Vincent’s decision to conform to the Triad ways by taking illegal narcotics. Blue lighting is also used when Vincent’s father is sitting in a room lonely and longing for his distant son. This New Zealand film has made me more aware of the Chinese struggles in New Zealand. ‘Chinese Whispers’ has given me deep insight into the Chinese point of view and the pressures they withstand. It has shown me the importance of being accepting of minorities and their differences. Stuart McKenzie’s and Neil Paddington’s film has also shown me how important it is to end xenophobia and prejudices in order to help people like Vincent Chan to make better decisions to keep a balance between their culture and fitting in to society. All men are dangerous brutes, intruders, vagrants. † Haree William’s poem ‘Patches Hide No Scars’ refers to young Maoris, turning their back on the way of their ancestors preferring the â€Å"direction, discipline and orders† of gang life. This New Zealand poem has captured the sad truth about the loss of the Maori culture as the lost youths turn to gang membership in a search to add meaning to their lives. ‘Patches Hide No Scars’ relates to the idea of prejudice by describing the members of Maori gangs as one group, a whole, not a group of individuals. How do we prosecute those already punished? How do we fine those lost in the street of no direction? † Throughout this short text author Haree Williams continually uses words like ‘we’ and ‘those/them’, by doing this the gangs (‘those’) are separated from the rest of society (‘we’). By doing this Maori gangs distance from the rest of New Zealand is emphasized. This poem has raised questions to me: why do these youths find security in the rules and orders of gangs but not the rules and orders of regular jobs or life in the ‘normal’ society? And what is society doing to make the youngsters of the Maori race feel like they do not belong in society? By reading and viewing these texts, ‘Noughts and Crosses’, ‘Chinese Whispers’, â€Å"Patches Hide No Scars’ and ‘On the Sidewalk Bleeding’, I have learnt of the struggles and pressures many people, fictional or not, suffer through due to the prejudices of modern society. â€Å"And just like that, I’d been assessed and judged. Nurse Fashoda didn’t know the first thing about me but she’d taken one look at my face and now she reckoned she knew my whole life story. †

Core Mountain Man Brewing Company Bringing the Brand

Core Marketing Mountain Man Brewing Company Bringing the Brand to Light 1. Overview Mountain Man Brewing Company (MMBC, or the Client) is a family-run business in West Virginia that has experienced much growth since launching its flagship premium beer Mountain Man Lager (MMB) in 1925. Over the decades, brand loyalty, quality and brand awareness have been the cornerstones of the Client’s success – the importance of the MMBC brand among consumers has allowed the company to build its small but consistent market share in the East Central region (ECR), particularly in its home state, the only region it distributes in (7. % of the market with more than 50 million USD in revenue). 2. Challenges & Opportunities * Challenges MMBC currently faces a potentially identity-changing challenge: The traditional premium beer market has been declining at a compound annual rate of 4%, and MMB experienced a 2% decrease in revenue last year, the first drop in its entire history; accordingly, MMBC’s target aim is to recover from the 2% decrease in revenue that occurred in the prior year. * OpportunitiesThe light beer market – popular with younger drinkers – has also been growing at a CAGR of 4%. Although MMBC has been historically weak in the 35-years-and-under segment, there is opportunity to generate more sales by releasing a new Mountain Man Light Beer (MML) line to target this younger market. However, there is the risk of negatively impacting their current distribution of MMB through shelf-space cannibalization and higher costs; as well as the risk of alienating their core segment of older, blue-collar drinkers. . Analysis MMBC faces potentially losing more revenue at the current forecasted compound annual decrease rate of 2% – the projected decrease for MMB standalone in year-to-year net revenue from actual 520,000 barrels sold in 2005 (USD 50. 4 m) to 470,039 barrels (approximately USD 45. 6 m) by 2010 totals nearly 10% (see Exhibit 1). According to the key age demographics among beer drinkers, MMB’s customer segmentation is currently as follows: 64% for 45 years and up, and only 17% for 35 years and under.Yet the ECR breakdown for consumption by beer type is the opposite: 50. 4% for light and only 19. 7% for premium. Due to the overwhelming potential in the light beer market, we have prepared projections on growth in revenues and expenses for MMBC should they decide to move forward with brewing Mountain Man Light (see Exhibit 2A, 2B). * Making Mountain Man Lighter (and More Profitable) Considerations have been made regarding MMB remaining as a stand-alone product (again, see Exhibit 1).However, per the Client’s instructions, this report will focus on projected performance examining MMBC’s entry into the light beer market at their expected MMB reduction rate of 20%. According to our analysis, MML would still result in a significant increase in revenue within two years: With the new product mix , net income margin increases from an insignificant 0. 88% in MML’s first year to a robust 3. 7% by its second year (2007), even with considerations on the additional expenses that would go into launching a new product – manufacturing, advertising, general operating (see Exhibit 2A). Additionally, the projected MMB+MML sales volume after only two years would nearly match MMBC’s current volume level – 500,895 barrels to 520,000 – and would eventually overtake the 2005 figure in 2008; while standalone figures show a continuous decrease from the 2005 benchmark and eventually fall behind MML sales by 2011 (Exhibit 3). * Issues to Consider The forecast for MMB +MML sales are promising.However, JAFREM must note significant issues to consider with the presented data: 1) Due to limited sales volume for the first six years, impact on COGS has not been taken into consideration; should the current production capacity levels be exceeded, additional inputs rega rding CAPEX (for example, for new plants) will be necessary. 2) With the forecasted MML growth rate, the Client’s market share in the ERC amounts to 1. 5% after five years; MMB has not achieved this level after more than 50 years in the business and so considerations on the MMB reduction rate have also been provided (Exhibit 2B). 4. RecommendationsLight beer is an attractive proposition for MMBC, especially with the decrease in the premium beer segment. Accordingly, ignoring the dynamic growth in the light segment is simply too much of an opportunity to let pass. In order to reduce the risks that come with launching MML (alienating core customers, promoting a failed product), we recommends the following measures: * To avoid losing brand equity at the consumer level for MMB, pilot the MML launch outside West Virginia, as this is MMBC’s strongest and most loyal market; should the testing prove successful, then consideration can be made on moving into West Virginia. Shoul d the MML growth forecast not be realized after two years, return focus to MMB distribution at a national level; while advertising and sales at the grass roots level has been good for MMBC, there has been no attempt to reach a larger marketing through the traditional channel of television media. * Despite the expected decrease in the premium beer market, MMB still has potential to capture more market share by expanding its advertising activities and consumer base outside the ERC. Exhibit 1 – Lager Standalone Projections MMB Standalone (next five years)Â  | | 2005| 2006| 2007| 2008| 2009| 2010| Barrels| 520,000| 509,600| 499,408| 489,420| 479,631| 470,039| Price per Barrel| $97. 00| $97. 00| $97. 00| $97. 00| $97. 00| $97. 00| Net Revenue| 50,440,000| 49,431,200| 48,442,576| 47,473,724| 46,524,250| 45,593,765| COGS| 34,803,600| 34,107,528| 33,425,377| 32,756,870| 32,101,732| 31,459,698| Gross Margin| 15,636,400| 15,323,672| 15,017,199| 14,716,855| 14,422,517| 14,134,067| SG&A | 9,583,600| 9,583,600| 9,583,600| 9,583,600| 9,583,600| 9,583,600| Other Op. Exp. 1,412,320| 1,412,320| 1,412,320| 1,412,320| 1,412,320| 1,412,320| Operating Margin| 4,640,480| 4,327,752| 4,021,279| 3,720,935| 3,426,597| 3,138,147| Other Income| 151,320| 151,320| 151,320| 151,320| 151,320| 151,320| Net Income before Tax| 4,791,800| 4,479,072| 4,172,599| 3,872,255| 3,577,917| 3,289,467| Prov. Income Tax| 1,677,130| 1,567,675| 1,460,409| 1,355,289| 1,252,271| 1,151,314| Net Income After Tax| 3,114,670| 2,911,397| 2,712,189| 2,516,965| 2,325,646| 2,138,154| Net Present Value| 3,114,670| 2,599,461| 2,162,141| 1,791,526| 1,477,990| 1,213,246|Exhibit 2A – MMB + MML Projections | 2005| 2006| 2007| 2008| 2009| 2010| 2011| MML Barrels| 0| 48Â  735| 101Â  369| 158Â  136| 219Â  282| 285Â  066| 355Â  763| MMB Barrels| 520Â  000| 407Â  680| 399Â  526| 391Â  536| 383Â  705| 376Â  031| 368Â  510| Growth%| Â  | -12%| 10%| 10%| 10%| 10%| 10%| Price per Barrel| $97| $97| $97| $9 7| $97| $97| $97| Net Revenue| 50Â  440Â  000| 44Â  272Â  273| 48Â  586Â  872| 53Â  318Â  166| 58Â  489Â  738| 64Â  126Â  451| 70Â  254Â  508| COGS| 34Â  803Â  600| 30Â  776Â  437| 34Â  000Â  363| 37Â  531Â  192| 41Â  386Â  351| 45Â  584Â  213| 50Â  144Â  138| COGS/Revenue| 69. 00%| 69. 52%| 69. 98%| 70. 39%| 70. 6%| 71. 08%| 71. 37%| Gross Margin| 15Â  636Â  400| 13Â  495Â  837| 14Â  586Â  509| 15Â  786Â  974| 17Â  103Â  387| 18Â  542Â  239| 20Â  110Â  370| SG&A| 9Â  583Â  600| 11Â  233Â  600| 10Â  483Â  600| 10Â  483Â  600| 10Â  483Â  600| 10Â  483Â  600| 10Â  483Â  600| Other Op. Expenses2| 1Â  412Â  320| 1Â  412Â  320| 1Â  412Â  320| 1Â  412Â  320| 1Â  412Â  320| 1Â  412Â  320| 1Â  412Â  320| MML, Extra Ad Expenses| 0| 400Â  000| 400Â  000| 400Â  000| 400Â  000| 400Â  000| 400Â  000| Op. Expenses| 10Â  995Â  920| 13Â  045Â  920| 12Â  295Â  920| 12Â  295Â  920| 12Â  295Â  920| 12Â  295Â  920| 12Â  295Â  920| %| Â  | 18. 64%| -5. 75%| 0. 00%| 0. 00%| 0. 00%| 0. 00%| Op.Profit| 4Â  640Â  480| 449Â  917| 2Â  290Â  589| 3Â  491Â  054| 4Â  807Â  467| 6Â  246Â  319| 7Â  814Â  450| Op. Margin| Â  | -90. 30%| 409. 11%| 52. 41%| 37. 71%| 29. 93%| 25. 10%| Other Income| 151Â  320| 151Â  320| 151Â  320| 151Â  320| 151Â  320| 151Â  320| 151Â  320| Net Income before Tax| 4Â  791Â  800| 601Â  237| 2Â  441Â  909| 3Â  642Â  374| 4Â  958Â  787| 6Â  397Â  639| 7Â  965Â  770| Prov. Income Tax| 1Â  677Â  130| 210Â  433| 854Â  668| 1Â  274Â  831| 1Â  735Â  575| 2Â  239Â  173| 2Â  788Â  019| Net Income After Tax| 3Â  114Â  670| 390Â  804| 1Â  587Â  241| 2Â  367Â  543| 3Â  223Â  212| 4Â  158Â  465| 5Â  177Â  750| Net Income Margin| 6. 18%| 0. 88%| 3. 27%| 4. 44%| 5. 51%| 6. 48%| 7. 7%| NPV| 3Â  114Â  670| 348Â  932| 1Â  265Â  339| 1Â  685Â  170| 2Â  048Â  409| 2Â  359Â  625| 2Â  623Â  209| Exhibit 2B – Inputs & S tress Test Results Inputs| | Stress scenario| MMB, Avg. Market Share Growth| 0. 25%| | Year| MML, Avg. Market Share Growth| Reduction Rate| MMB, Var. Cost per Barrel| 66. 93| | 2006| 0. 04%| 30. 19%| MML, Var. Cost per Barrel| 4. 69| | 2010| 0. 28%| 17. 28%| Reduction Rate| 20%| | 2011| 0. 23%| 21. 80%| Discount Rate| 12%| | | | | MMB, Growth Rate| -2%| | | | | Price per Barrel | $97| | | | | MMB, Extra Ad Expenses| $0| | | | | MML Growth Rate| 2%| | | | | MML, SG&A in 2006| $900,000| | | | |MML, SG&A Extra Launch| $750,000| | | | | Exhibit 3 – MMB (stand alone) vs. MMB + MML ——————————————– [ 1 ]. Forecast prepared according to the 2% compound annual decrease rate provided by the Client [ 2 ]. SG&A and Other Operating Expenses are quantity independent in the consider range of production. [ 3 ]. The Stress Scenarios included in this Exhibit denote the maximum reduction rat e possible in order to achieve the target market growth desired by the Client should they move ahead with MML; in order to remain profitable, these are the reduction rate ceilings.