What Is Meant by Relevance, Reliability and Comparability Essay Example

What Is Meant by Relevance, Reliability and Comparability Essay Explain what Is meant by relevance, reliability and comparability and how they make financial Information useful. 10 marks) (b) During the year ended 31 March 2006, Porto experienced the following transactions or events: 0) entered Into a finance lease to rent an asset for substantially the whole of its useful economic life. (ii) a decision was made by the Board to change the companys accounting policy from one of expensing the finance costs on building new retail outlets to one of capitalizing such costs. He companys statement of comprehensive Income prepared using historical costs showed a loss from operating Its hotels, but the company Is aware that the increase in the value of its properties during the period far outweighed the operating loss. Explain how you would treat the Items in (l) to (Ill) above in Ports financial statements and Indicate on which of the Frameworks qualitative characteristics your treatment Is Dates (15 marks) 2. Elite Leisure is a private limited liability company that operates a single cruise ship. The ship was acquired on 1 October 1996. Details of the cost of the ships components and their estimated useful lives are: component (hull, decks etc) fittings 150 original cost ($million) appreciation basis Ships fabric 25 years straight-line Cabins and entertainment area 300 12 years straight-line Propulsion system Useful life of 40,000 hours At 30 September 2004 no further capital expenditure had been incurred on the ship. In the year ended 30 September 2004 the ship had experienced a high level of engine trouble which had cost the company considerable lost revenue and compensation costs. The measured expired life of the propulsion system at 30 September 2004 was 30,000 hours. Due to the unreliability of the engines, a decision as taken in early October 2004 to replace the whole of the propulsion system at a cost of $140 million. The expected life of the new propulsion system was 50,000 hours and in the year ended 30 September 2005 the ship had used its engines for 5,000 hours. We will write a custom essay sample on What Is Meant by Relevance, Reliability and Comparability specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on What Is Meant by Relevance, Reliability and Comparability specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on What Is Meant by Relevance, Reliability and Comparability specifically for you FOR ONLY $16.38 $13.9/page Hire Writer At the same time as the propulsion system replacement, the company took the opportunity to do a limited upgrade to the cabin and entertainment facilities at a cost of $60 million and repaint the ships fabric at a cost of $20 million. After the upgrade of the cabin and entertainment area fittings it was estimated that their remaining life as five years (from the date of the upgrade). For the purpose of calculating depreciation, all the work on the ship can be assumed to have been completed on 1 October 2004. All residual values can be taken as nil.

Latter, not Ladder

Latter, not Ladder Latter, not Ladder Latter, not Ladder By Maeve Maddox Andrew Chatwin asks: Latter and Ladder, how are they different? One difference is that of pronunciation: latter [lÄÆ'tÉ™r] ladder[lÄÆ'dÉ™r] In ordinary speech, however, the difference between the t and d sounds is often difficult to discern. Apparently other speakers are puzzled by the word latter. Heres a question asked and answered at Yahoo Answers: Why do people use the phrase I choose the ladder after comparing two decisions or choices? And heres the best answer as chosen by voters: Oh most people who say that are social climbers and they want to get to the top. In the expression that refers to making a choice between two options, the word is latter, not ladder. The first option is called the former: Father gave us our choice of the blue Mustang or the red Corvette. I chose the former and Charlie chose the latter. The word latter comes from the comparative form of Old English laet: laetra, and meant slower. It took on the meaning of second of two in the 1550s. Modern later came, well, later. (It also comes from OE laet.) The most usual use of latter is to refer to the second of two mentioned things: He was offered the part of either Othello or Iago: he chose the latter. Mormons call their church the Church of Jesus Christ of Latter Day Saints because they see themselves as later followers of Jesus Christ; the former day saints were the first century Christians. The latter days is an eschatological phrase used by some Christian sects to refer to the days preceding the second coming of Christ. One can also refer to a persons latter years, i.e., old age. Here are some examples of latter used to mean the later part of life: Men living longer but spend latter years sick Staying in Shape in Your Latter Years Ladder, as a noun, usually means a portable device with rungs or steps that enables one to climb up or down. The word ladder can also refer to a tear or a breach in fabric that resembles a ladder, having straight sides and crosspieces: Once the critical bond at the crack tip has broken, the peak stress concentration is transferred to the next bond, and so on, like a ladder in a silk stocking. Figuratively, ladder is used to refer to the steps of getting ahead socially or professionally: A steady rise up the legal ladder took him into the commercial law field †¦ He sits, unhappy and proud, on the ladder of social promotion having lost the hold on one type of life, but failing to reach the one to which he aspires. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Misused Words category, check our popular posts, or choose a related post below:100 Mostly Small But Expressive InterjectionsUsed To vs. Use ToEspecially vs. Specially

Current Event Article Essay Example | Topics and Well Written Essays - 500 words

Current Event Article - Essay Example As of now, Wal-Mart is the biggest retail store chain in the United States and employs nearly 1.4 million workers in various positions. But most of the employed workers are store-assistants, who are not generally well-educated. This is the backdrop for Wal-Mart top management to collaborate with American Public University, which offers online higher education degrees. Workers of Wal-Mart, with reasonable work experience with the company and positive performance reviews from their managers, special college credits will be awarded, which will expedite the process of completing the degree. The author of the article Miguel Bustillo does not critically scrutinize the real intentions behind this program. The article can only be considered a ‘press release’ issued by the Wal-Mart top management on the occasion of the program’s initiation. Hence it is important to place this Wal-Mart initiative in the context of the company’s general reputation with respect to corporate philanthropy. Given the long list of employee grievances against Wal-Mart top management, this initiative should be viewed with skepticism. For example, it is a well-documented fact that Wal-Mart does not provide adequate medical insurance and reasonable wages for its employees. The cheap prices offered to the consumer are as a result of savings made through such means. Moreover, since most of the retail store assistants are employed on a part time basis, they are not eligible to get employer sponsored health insurance and other benefits. Further, a few years back, the exploitative nature of Wal-Mart manufacturing contracts with companies in the Third World came to light. For example, for every $20 shirt sold in a Wal-Mart store, the Bangladeshi worker who tailored it, gets paid only a fraction of that price. The conditions under which they work and the subsistence level wages they get can only be described as exploitative. Similarly, Wal-Mart’s shoddy record with

Academic journal review Literature Example | Topics and Well Written Essays - 1500 words

Academic journal - Literature review Example The core issues discussed in this article are related to the quest of work and leisure balance for an employee. The author discusses how the balance between work lives and personal lives of employees can be maintained in the contemporary world. The author also explains the ways in which work life balance can be maintained in the most proportionate way while at the same time ensuring that the productivity and performance quality of the employees are not compromised with. The key rationale included in the article is that the changing work commitments and lifestyles in the modern day world coupled with other influential external environment factors such as economic, political, social and technological constructs have made it difficult for people to include leisure as a part of their daily life. However, leisure is an important part of life and is necessary to ensure proper physical and mental health of a human being (Taneja, 2013). Keyes and Haidt (2003) also appraise the way in which t he author discusses how the inclusion of adequate amounts of leisure activities and maintenance of the most optimum balance between the personal and professional lives can actually lead to higher productivity, engagement and motivation of the employees in their respective job roles (Keyes and Haidt, 2003). The main purpose of the article was to evaluate the primary and secondary aspects in the domain of work schedule and their impacts on organizations and the employees working in these organizations. The core issues like work leisure conflict, the need and importance of leisure, the solution of work issues in relation to the leisure management, the perspective of time and leisure as commodities and the need for making major changes in the way work and leisure are balanced in any organization are identified and discussed in this

Issues in Human Sexuality Unit 4 Essay Example | Topics and Well Written Essays - 1000 words

Issues in Human Sexuality Unit 4 - Essay Example Users very often quickly reveal sexual fantasies, intimate secrets and talk about personal and marital problems (Mileham, 2004). Clearly, this is dangerous and can be very harmful. But is it cheating? There are contradictory opinions regarding this. Those who are in favor of cybersex claim that it cant be defined as cheating because there is no physical contact between the two people having the cybersex, they are only typing and masturbating. Others also say that cybersex is like porn- you do it in order to please yourself, but you dont actually have any contact with others for sex purposes. They claim it is just visual harmless fun. But those who oppose it and claim cybersex is a form of cheating have overwhelming claims, based primarily on logic. When a person is in a monogamous relationship, the one he is with is supposed to be the only with whom he is having an intimate, emotional and sexual relationship. A monogamous relationship means committing to only one person, sharing things with him and experience things with him- and with him alone. If a person is encountering another person for the sake of satisfying his sexual or emotional needs, it doesnt matter that there is no actual physical connection- it is cheating, because it is betraying in the other person that is in the relationship. While this isnt physical cheating, it is an emotional one. This is enhanced due to the fact that the person having cybersex reveals to a complete stranger her innermost hidden sexual fantasies and private feelings and emotions, sometimes revealing information about him and his spouse. This is definitely a situation that port rays betrayal of the person in his spouse, and consequently can most certainly be defined as cheating.

Overview and Analysis of Red Bull, Its Successes and Controversies

Overview and Analysis of Red Bull, Its Successes and Controversies When we first started, we said there is no existing market for Red Bull but Red Bull will create it. And this is what finally came true. Dietrich Mateschitz (Dolan 2005 p.1) Red Bull ®s 1987 launch established an energy drinks market. In 2009 they continue to dominate the globally. How did they achieve? How do they plan to maintain their stronghold? In 1987, revolutionary marketing and advertising techniques coupled with fortunate circumstances enabled Red Bull to create the energy drink market. In todays diverse and ever-expanding market of 228 competitors, Red Bull is likely to lose overall global market share. Ever optimistic, Red Bull continues with extreme sports sponsorship, creating events, nurturing the Red Bull ® lifestyle, a strategic business plan including expanding into emerging markets and developing products and plans to include multi-million dollar resorts and theme parks. Red Bull ® has every reason to be confident of its future. In 2008, the worldwide Functional Drinks market was worth $26.9 billion. Relatively new and still developing, by 2013 the market is expected to expand by 64.3% to a value of $44.3 billion (Datamonitor PLC 2008), spread over three different categories: Sports, Energy, and Nutraceutical. These products aim to improve users, physically and mentally or just improve well-being (Moosa 2002; Datamonitor PLC 2008). With energy drinks being the largest sector at 47.3%, Red Bull ®, was first of its kind, holding a 29% global market share in 2008. (Datamonitor PLC 2008). Spreading its wings internationally since its birth in 1987, 2008 saw Red Bull ® GmbH worth à ¢Ã¢â‚¬Å¡Ã‚ ¬10.9 billion, selling over four billion cans worldwide in 70 countries (Mà ¼ller 2009). History Red Bull ® was the brainchild of Austrian, Dietrich Mateschitz, ex-managing director of toothpaste manufacturer Blendex, where he travelled widely, experiencing different cultures (Gschwandtner 2004). On one business trip , Mateschitz read that one of Japans highest taxpayers was Mr. Taisho, manufacturer of an energy giving drink. Later in Thailand, he learned that taxi drivers use these drinks to counter fatigue. Mateschitz also noted that the drinks ingredients lacked a patent (Gschwandtner 2004). Armed with this information, in 1984 he approached Chaleo Yoovidhya, owner of Thai company TC pharmaceuticals, producer of the Kratindang energy drink (Gschwandtner 2004). Mateschitzs concept was to form a company selling its own energy drink worldwide at a premium price (Keller 2004). Chaleo agreed, each took a 49% stake, investing half a million dollars. Chaleos son took the remaining 2%, and Mateschitz agreed to run Red Bull ® (Dolan 2005). Red Bull ® was first established in Austria. Initially wary of the products unusual ingredients, Austrias government insisted on stringent scientific safety testing. Thus, Red Bull ® was not licensed until 1987. Subsequently, this regulatory procedure proved a mixed blessing for Red Bull ® (Gschwandtner 2004). (Kratin Daeng The iconic eye-catching logo and slogan red bull gives you wings were then designed (Gschwandtner 2004). By 1990, despite high sales figures, and a lot of promotion, Red Bull ®s finances were in the black. To this point, funding had been 90% equity from the two partners and 10% bank loans (Gschwandtner 2004; Dolan 2005). Ambitious Mateschitz now believed Austria too small a market for Red Bull ®. In 1993, Red Bull ® moved into such countries as Hungary and Germany, planning to pre-market the little 250ml can by word of mouth across Europe (Gschwandtner 2004). Red Bull ®s Kraihamer commented, We do not market the product to the consumer, we let the consumer discover the product first (Keller 2004, p.119). This Buzz marketing proved highly successful, and inexpensive. Red Bull ®s controversial ingredients made it a cool fashion icon. Its mixability with vodka, coupled with extreme sports sponsorship, helped the drink tap into the young hip market (Cooney 2007; Gschwandtner 20 04). By 1997, Red Bull ® had conquered most of Europe including the UK. It then moved onto the USA, working state by state with a similar buzz technique (Hein 2001). Today Red Bull ® is now Austrias most successful brand, worth more than à ¢Ã¢â‚¬Å¡Ã‚ ¬10.9 billion, with diamond producer, Swartzkopf being worth half as much (Muller 2009). 3.0 Does Red Bull ® Revitalise the Body and Mind? Red Bull ® is billed as a drink which: à ¢Ã¢â€š ¬Ã‚ ¢ Improves physical endurance, à ¢Ã¢â€š ¬Ã‚ ¢ Stimulates metabolism and helps eliminate waste substances, à ¢Ã¢â€š ¬Ã‚ ¢ Improves overall feeling of well-being, à ¢Ã¢â€š ¬Ã‚ ¢ Improves reaction speed and concentration, à ¢Ã¢â€š ¬Ã‚ ¢ Increases mental alertness (Keller 2004). Red Bull ® is best consumed:, à ¢Ã¢â€š ¬Ã‚ ¢ At times of increased mental and physical strain, à ¢Ã¢â€š ¬Ã‚ ¢ On long sleep-inducing motorways, à ¢Ã¢â€š ¬Ã‚ ¢ During intensive working days, à ¢Ã¢â€š ¬Ã‚ ¢ Prior to demanding athletic activities, à ¢Ã¢â€š ¬Ã‚ ¢ Before tests and exams, (Redbull.com (a) [ca. 2009]). Some consumers are easily convinced of Red Bull ®s effectiveness. Nicknames such as liquid speed and liquid cocaine along with peer pressure build hype around the product (Kumar, et al. 2004). American college student Kaytie Pickett illustrates this: Maybe I think it works just because they say it works Im a slave to peer pressure (Walker [ca. 2009]). Other consumers are more sceptical. Brandweek reported in 2008 that Red Bull ® was one of the UKs lowest ranked companies in a survey of perceived brand value (Brandweek 2008). Despite the odds, studies proved the drinks effectiveness. One such study was on ten individual graduate students, five of which were given a placebo, the rest Red Bull ®. Conducted before and several hours after consumption, the results proved conclusively that: the mixture of three key ingredients of Red Bull Energy Drink used in the study (caffeine, taurine, glucuronolactone) have positive effects upon human mental performance and mood (Seidl, et al. 2000). Whereas most products spell out exactly what they do, Red Bull ® uses vague terms, Vitalizes Body and Mind (Walker [ca. 2009] p.2) relying on consumers to purchase the drink and discover its effects themselves. (Walker [ca. 2009]) 3.1 What are the ingredients in Red Bull ®? Red Bull ® 250ml cans contain; à ¢Ã¢â€š ¬Ã‚ ¢ 80mg of caffeine, à ¢Ã¢ ‚ ¬Ã‚ ¢ Taurine, à ¢Ã¢â€š ¬Ã‚ ¢ Glucuronolactone, à ¢Ã¢â€š ¬Ã‚ ¢ Sugars, à ¢Ã¢â€š ¬Ã‚ ¢ Vitamins (Keller, 2004 p.117). Taurine is Red Bull ®s most controversial ingredient. In organic form, it was discovered in the bile of a bull (Irving Sax, et al. 1987). This is the likely source of not only the name, but also rumours that it is made from Bull Testes or that it contains Bull Semen. In the drink, taurine comes in synthetic form (Redbull.com (c) [ca. 2009]; Walker [ca. 2009]). Human beings produce taurine in a form similar to that of an amino acid. During extreme physical activity, the body may require more taurine than is produced. Taurines metabolic stimulatory effects help the body work harder. (Keller 2004; Healingdaily.com 2009). Equally, its detoxifying effect helps counter fat build-up on the liver caused for example by excess binge drinking (Healingdaily.com 2009; McCall 2005). Glucuronolactone is a naturally occurring amino acid in human beings, produced by glucose b reaking down in the liver. It also removes toxins from the body and is a metabolic stimulator, fighting fatigue, and producing a feeling of well being (Keller 2004). Theoretically, these supplements should help the body to perform better, when under stress, fatigue, or performing physical exercise. Red Bull in suspected link to deaths (BBC News Online 2001) Despite Red Bull ®s beneficial effects, some users have had adverse effects from consuming it, and as many as five people have died. A 16-year-old volleyball player would faint during games, and gain a heart rate increase of 30bpm. Diagnosed with postural tachycardia syndrome, she told the doctor that during the week she would drink four to five cans of Red Bull ® daily. Returning to normal a month later having stopped drinking Red Bull ®, doctors believed that high concentrations of taurine in the brain might have interfered with her cardiovascular system (Terlizzi et al. 2008).1 In 2001, an 18-year-old basketball player shared four cans of Red Bull ® with friends, played a game, then later died of Sudden Adult Death Syndrome. An investigation was recommended into high caffeine content drinks (Medicalnewstoday.com 2004). Two clubbers died in 2001 after drinking Red Bull ® with vodka, a third died after drinking it after extreme physical exercise. No results were published into the relationship between Red Bull ® and their deaths (BBC News Online 2001). A WalMart shelf stacker with a heart condition would drink four cans of Red Bull ® a night. He later died of a heart attack. The coroner had insufficient evidence to link the death with Red Bull ® (Clarke 2008). Most major brands will open up to consumers if there is a health scare or death related to their products, in an effort to safeguard brand loyalty (Dunne 2005). Red Bull ® prefers to take the offensive; No one anywhere has ever shown any link between Red Bull energy drink and harmful effects (Medicalnewstoday.com 2004). This makes them appear edgy, flaunting their dont mess with us attitude. 3.3 Has Red Bull ® profited from controversy? Debate surrounding Red Bull ® has been a double-edged sword. On the one hand, they loose some customers due to health fears, as countries such as Denmark, France, and Australia ban the drink. On the other hand, along with the bans, negative press rel ated to the ingredients, nicknames, adverse affects and deaths, has not only made Red Bull ® a talking point, giving them free publicity, it has also allowed the drink to keep its edge, and remain cool. As Mateschitz himself points out; Without the old high school teacher telling his students Red Bull is evil probably even a drug it wouldnt seem interesting and therefore would loose its edge (Kumar, et al. 2004). This edge was proved during Red Bull ®s launch in New Zealand. The distributor was selling a version of the drink with a UK health warning that the government did not recognise. To get round this, they re-labelled each of the 70,000 cans. When consumers found out that the authorities disapproved, demand went through the roof punters would buy Red Bull and immediately pull off the sticker. Theyd tell their mates: this stuff is illegal, everyone wanted to be drinking from the forbidden tin (Cooney 2007). 4.0 Red Bull ®, a non-descript market? Mateschitz believed consumers would take Red Bull ®s benefits seriously only if the product cost more than an average soft drink. Therefore from the outset, the cost per can was set 10% above the most expensive competitor, regardless of country. This is why a single can of Red Bull ® can cost up to 300% more than a traditional soft drink (Keller 2004). Conducting initial market research in 1987, Red Bull ® had failed miserably; people sa id its colour and taste were disgusting (Johnson 2002). However, this was not all bad news, further research revealed; 50% of our test group were crazy about Red Bull, and 50% said it tasted terrible (Johnson 2002). Ambivalence, as Mateschitz later says, was great for Red Bull ®, creating discussion, controversy and giving Red Bull ® the edge it needed to start a new market. Some thought it had a medicinal taste, persuading consumers of its functional properties and added value (Keller 2004 p117). The drinks extra cost would not deter them (Keller, 2004). Red Bull ® describes its market as; more than just a hot secret for the night owl and the non-stop party-animal. It is appreciated by a wide range of people, such as the overworked taxi driver, the stressed manager, the exam-anxious student and the pressured journalist It is used by surfers in the summer and snowboarders in the winter (Redbull.com (d), [ca. 2009]). Companies typically select their consumer group by specifying such target elements as age, job, sport, or occupation. Red Bull ® does the contrary. Whilst talking generally about their consumers, stressed student, taxi driver, stressed manager etc, they manage to keep their market relatively vague (Walker, [ca. 2009]). So the question is, who buys such a strange tasting, expensive product, with benefits deliberately not spelled out in black and white? Rob Walker [ca. 2009] argues what Red Bull drinkers have in common is a taste for the edgy and faintly dangerous. Keeping a question mark over the specific consumer allows drinkers to fit into the Red Bull ® clique. Despite the young hip image, Red Bull ®s non-descript credentials allow it to be consumed by just about anyone, creating access to wider markets and competitive advantage (Walker [ca. 2009]). 5.0 How is Red Bull Marketed? Red Bull ® presents an image of a small, friendly enterprise. We dont want to be seen as having lots of money to spend (Walker [ca. 2009]). The truth however is quite the contrary. The company spent $600 million, or 30% of its revenue on marketing in 2004, Coke spends 9% (Dolan 2005). This huge sum is spent on extreme sport sponsorship, live events, and eye-catching design, with less emphasis on media advertising (Gschwandtner 2004). This section asks how and why they use these techniques. 5.1 Sponsorship Red Bull ® sponsors over 500 extreme sports athletes worldwide. Examples include Formula 1 Freestyle Skiing, Break Dancing, and Free Climbing (Gschwandtner 2004). Additionally, Red Bull ® creates events filling every niche, from DJ battles, Whacky Races, Air Shows through to Festivals. (Gschwandtner, 2004; see page 10) In 2003, 200 million people watched worldwide as B.A.S.E. jumper Felix Baumgartner leapt from a plane at 30,000ft above Dover with a carbon wing strapped to his back. He flew the 22 miles across the English Channel to Calais at an average of 135mph, setting a new world record (Wyatt 2003). The stunt was not only a dig at the outlawing of Red Bull ® in France, but also a pre-marketing strategy to create brand recognition and a buzz about the product (Gschwandtner 2004). Red Bull ® has tapped into the market of the rich and famous by purchasing Jaguar and Minardi Formula One teams in 2004 and 2005 (World Advertising Research Center 2009). Costing over $100 millio n a year and competing around the world, they race under the names Redbullracing and Torro Rosso (Forbes.com [ca. 2009]; World Advertising Research Center 2009). With constant media coverage, and cans of Red Bull ® spotted in the hands of celebrities and the logo splashed all over their cars, Red Bull ® wins even if the two teams lose! The 5500m2 Hangar-7 in Austria diversified Red Bull ®s influence. It is home to the 15 Flying Bull show planes, a chic eatery, and art exhibition. By night, it transforms into a nightclub, with Vodka Red Bull ® on tap (Redbull.com (b) [ca. 2009]). Dedicated pre-market research allows Red Bull ® to tailor events and sponsorship specifically to each consumer group, state by state, country by country, seamlessly. 5.2 Advertising Simple, playful, nonsensical cartoons help market the product at anyone with a sense of humour, regardless of language, reaffirming Red Bull ®s nebulous marketing strategy (see bottom of page) (Keller, 2004). Coupled with the tagline Red Bull gives you wiiings (Keller 2004, p119) a deliberate exaggeration, adding intrigue, it makes the consumer eager to find out for themselves (Walker [ca. 2009]). 5.3 Brand Image Two red coloured bulls charging towards one another. The small size of the can. These could not be better connotations of strength (Keller 2004). The package says it is a serious product, not to be taken lightly. The Red Bull ® cut-out in the pull-ring adds class and interest, whilst the cans mixture of blue and silver portrays refreshment. The cans simple tagline Revitalises body and mind effectively explains the contents function in four simple words, whilst remaining non-specific (Keller 2004, p.118; Keller, 2004). With its fingers in every pie, Red Bu ll ® combines well thoughtout brand image, playful advertising, media-rich events and sponsorship not only to cultivate their edgy image, but also to ensure every consumer can relate to the product in some way. Mateschitz admits,we dont bring the product to the people, we bring people to the product (Gschwandtner 2004). Red Bull ® wants consumers to embrace the product and all its ideals, as he points out Red Bull isnt a drink, its a way of life (Kumar, et al. 2004). 5.4 Some of Red Bulls extreme sports athletes and events in picture Figure 1 Top to bottom, from left to right; Surfing Amazon tidal bore (Gschwandtner 2004), Red bull Playstreets (Hagena 2008), Felix Baumgartner B.A.S.E. Jump Christ Redeemer (Gschwandtner 2004), Redbullracing F1 Getty (G.M., [2009]), Red Bull Storm Chase (Hollmann [ca. 2004 ]) Hangar-7 (Gschwandtner 2004), Felix Baumgartner Channel Crossing (Gschwandtner 2004), The Dolomite Man competition (Gschwandtner 2004), Flà ¼taag flying day (Stone 2008), Red Bull cliff diving (Keller 2004)., Red Bull air race (Larson 2008), Mysteryland festival (Mysteryland 2009). Page | 10 6.0 Revolutionary Marketing This section explores the revolutionary marketing techniques Red Bull ® uses to establish its brand. The techniques developed out of a demand. In 1987, Red Bull ® could not be exported from Austria, as it was not a European Union member state. EU law states that if one country agrees to the sale of a foodstuff, it can be sold in all EU countries. Each EU member state has a list of allowable ingredients, and to Red Bull ®s dismay, taurine was on none of them. Scotlands allowed list did include taurine, so Red Bull ®s first EU market entry was in 1992 in the UK via Scotland (Keller 2004). During the EU ban, with demand high, individuals bootlegged the drink across borders. Red Bull ® was not actually on the black market, but bootlegging did help their semi-legal image (Keller 2004). Red Bull ®s entry to the UK market was rocky. It was not until 1995 that they made profit (see Figure 2). Long established Lucozade led the energy drink sector. 15 20 Figure 2 Red Bull ® UK Finances (millions) (Red Bull Company Ltd 2009) Containing energy boosting minerals and vitamins much like Red Bull ®, Lucozades use of energy as part of its tagline obliged Red Bull ® to change to stimulant instead of energy, thus targeting a completely new consumer 2002). Red Bull ® was sold as a sports drink, not the holistic product seen in Austria. Instead of using the known buzz marketing, Red Bull ® sold through supermarket chains and billboard advertising with a new tagline: you should never underestimate what red bull can do for you (Johnson 2002, p.5). (Gschwandtner 2004; Johnson Profit/loss after tax Expenditure on Promotional Equipment GBP By 1996, Red Bull ® UK had an astronomical debt of  £2.5 million (see Figure 2). Their share of the market only stood at 2% (Johnson 2002). As global director Kraihamer portrays; The UK team started from the wrong end they were wrong, they totally misunderstood how to create a customer base (Johnson 2002, p.5). (Red Bull Mini 2008) Firing the entire sales team, Mateschitz appointed an Austrian director who increased marketing spending (see Figure 2). The slogan was changed back, and Buzz marketing was introduced. Teams of students were hired to tap into the younger markets. Driving Minis with big Red Bull ® cans attached, they attended parties, and social gatherings. These alpha bees would be the popular ones of friendship groups. If they liked the product, so would their friends, creating a buzz about Red Bull ® (Gschwandtner 2004). This coupled with sponsorship of extreme sports meant that between 1998 and 1999 profits after tax went from  £85,000 to  £16 million (see Figure 2) (Red Bull Company Ltd 2009). A similar success story was of Kiwi, Joseph Roberts, who, when on holiday in Slovenia, saw the opportunity to market and sell Red Bull ® back home. Out partying, he decided he wanted a soft drink and stumbled upon a can of Red Bull ®. When the bar man refused to sell it claiming it to be illegal , it made him want it even more. Eventually, he spent no less than $150 on three cans! Drinking just one, he realised its potential. A year on he met with Red Bull ® in Austria. On persisting, he gained rights to sell the drink. Back in New Zealand, his marketing strategy ensured Red Bull ® turned up at the right parties, bars, and shops. By playing the drinks illegal credentials, he used opinion leaders to create a buzz about the product (Cooney 2007). Before he knew it, he was rushed off his feet: We were delivering products from the back of our cars at two three in the morning everybody had to do whatever it took (Cooney 2007, P.5). Buzz marketing evolved during Red Bull ®s USA launch in 1997. Organising sales, marketing, and distribution from the Red Bull ® North American California HQ was impractical. Instead, a structure similar to that of Red Bull ® GmbH split the USA into eight units covering a set amount of states (see Appendix Figure 3). Each unit organised sale s, distribution, and pre-marketing. This meant the buzz was created even before Red Bull ® arrived. The alpha bees would poll consumers interests, for Red Bull ® to promote the drink in the right places and sponsor the right events (Hein 2001). 7.0 Maintaining market share Red Bull ® dominated the global market in 1987. By 2008 however, they still led with 29%, but energy drink company Monster was catching up with 23% (The Nielson Company 2009). The next section explains how and why, it changed. In 1987, UK Lucozade and USA Gatorade, although not specifically energy drinks, crossed over into Red Bull ®s territory, having already been on sale for many years. Equally, Kratin Daneng held a market share in Asia, although not in carbonated form (Gschwandtner 2004; Kumar, et al. 2004). With over 228 brands listed in 2008, the picture had become very different. Energy drinks were an extremely complex market area. In can or re-sealable bottled format, the sizes varied from the slim original 250ml, to the new 300ml and 680ml varieties. Products now ranged from regular carbonated energy drinks through to Energy Shots with 25 new versions in 2008, natural organic non-carbonated forms, and aphrodisiac drinks (The Nielson Company 20 09). In 1997, Hansen Natural brought out Monster Energy, using similar marketing techniques as Red Bull ®. Its tagline Unleash the Beast evokes a certain type of consumer, together with its Monster Army of extreme Figure 4 Global Energy Drink Market Share 1987 (Various sources) Red Bull Other Figure 5 Global Energy Drinks sales 2008 (The Nielson Company 2009) 1 RED BULL 3 ROCKSTAR 5AMP 7 NOS 9 SOBE Next 90 brands (Monsterenergy [ca. 2009]) 2 MONSTER 4 FULL THROTTLE 6 NO FEAR 8 ADRENALINE 10 BOOKOO sports athletes and promotion through events strives to put Monster on a level footing with Red Bull ®. With a similar calorie count, and blend of ingredients it resembles Red Bull ®, yet is double the size and half the price, it was bound to sell well (Johnson 2002; Monster energy [ca. 2009]). Coffee energy drinks recently entered the market, such as SHOCK coffee (Johnson 2002; SHOCK coffee [ca. 2009]). However companies including Red Bull ® had already tried similar products without success, Fair Trade energy drinks are likely to be a popular new market entrant (The Nielson Company 2009). 8.0 Competition and Intellectual property Energy drink companies have ridden the wave of Red Bull ®s success bringing out similar looking products. No patent on the drink means even their taste could be the same allowing competitors to undercut Red Bull ® and take some of their market share. How has Red Bull ® protected its brand image in the now turbulent functional drinks market? Red Bull ® is a registered trademark. Extremely protective of its brand image, strict guidelines govern the ways Red Bull ® portrays itself in advertising; from use of colour to font size, they cover it all. These measures deter copycat brands but it does not always work; (Keller 2004) In 2007, Red Bull ® took rival energy drink Boost to court, saying their cans use of silver and blue infringed the Red Bull ® trademark. The images on the right hint that Red Bull ® won. (Irish Independent 2007). Red Bull ® took Music Festival organiser Mean Fiddler to court in 2004, claiming firstly that t heir energy drink Synergy had infringed their trademark with silver and blue patched cans of similar size. Additionally they believed Synergy had been switch selling. Losing the court case, Red Bull ® paid out  £20,000 in court costs (Sweeny 2004). Australian wine company Reschke Wines bid to register the trademark Bull Traders in 1999 featuring the outline of a bull. The two companies went to court over the issue (Ainslie 2008). 9.0 Discussion Selling over four billion cans worldwide last year and with global sales figures up on 2007 by 13.2% Red Bull ® remains optimistic of its future. 2009s plans to expand into new and emerging markets such as Africa, Russia, India, and Japan remain unchanged (Mà ¼ller, 2009). However Red Bull ® is not the only energy drink company weathering the economic crisis so well. Reports predict an increase in global energy drink sales by more than two thirds in 2014, at over 8 billion litres annually (Canadean Ltd 2009). What are Red Bull ®s p lans to maintain dominance in the energy drink sector and increase revenue, especially in these times of economic downturn? (Reschke Wines [ca. 2009]) (Boost [ca. 2009]) Page | 14 9.1 Diversification of product range When companies start out with one product, they later diversify or update the existing range to keep consumer interest, ensuring their product does not reach maturity too soon. Red Bull ®s sales figures are still growing, even after 22 years. Their uniqueness on entry into the drinks market as an energy drink has given them 16 long years before they felt the need to diversify (see Figure 5). Successes and failures of products Red Bull ® has brought out are described below. With over one in four adults in the UK trying to loose weight most of the time (Talking Retail 2008, p.1), Sugar Free Red Bull ® was launched in 2003. It contains only 8 calories when compared to the 110 of standard Red Bull ®, so taps into the emerging health conscious (Moosa 2002, p.32) market (Caloriecount.about.com [ca. 2009]). With 25% of new buyers in the UK purchasing Sugar Free Red Bull ®, it accounted for 15% of 2008 sales, Red Bull ® intends to increase spe nding on advertising its sugar free variant (Talking Retail 2008). (Sabai [ca. 2009]) (Redbull.com (a) [ca. 2009]) Global Red Bull can sales (Billions) (Kumar 2004 and Various Sources) 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Sabai is a wine spritzer originating from Red Bull ® co-founders son, Charlerm Yoovidyas Siam Winery in Thailand. Launched in 2005, its flavours Hibiscus and Pomegranate complement Thai foods. Although not sold under the Red Bull ® name, business decisions regarding the drink are taken by Red Bull ®s UK marketing team. Sabai meaning take it easy (Centaur Communications Ltd 2007, p.1) fits their marketing ethic, being a bespoke wine, it is sold using point of sale promotion and consumer sampling at events with celebrities to create a Sabai buzz (Forbes.com [ca. 2009]; CentaurCommunications Ltd 2007). Lunaqua was a failed Red Bull ® attempt to enter the bottled water market. First seen in 2001, the drink was bottled from a previously undiscovered Alpine Source (Lunaqua [ca. 2003]) at full moon giving the water bio-energetic (Lunaqua [ca. 2003]) properties. Suffice to say, it did not sell well and was withdrawn (World Advertising Research Centre 2009). Page | 15 For 2009, Red Bull ® plans to bring out an Energy shot to oppose the 25 competing products brought out in 2008 (BevNET.com 2008). 9.2 Drinks for the Health Conscious consumer Led by the increasingly health conscious (Moosa 2002, p.32) consumer, the market is still developing. With sales volume doubling from 25 million in 2000 to 50 million litres in 2002, Red Bull ®s entry into this niche had to be profitable. Relatively fragmented, it covers a wide variety of products, from vitamin and mineral enriched herbal drinks though to pro-biotic yogurt and fruit drinks, to fruit enriched smoothies (Hillam 2003). Owned by Red Bull ®, Carpe Diem sells a range of five drinks. Kombucha developed in 1997 and Ginkgo 2000 are modern-day carbonated versions of ancient Asian herbal teas. Kombuchas influences stem from the ancient philosophies of Zen, which aims to harmonise body and soul. Ginko has origins in myth and legend, containing leaves from Asias sacred tree, the Ginkgo Biloba aids conc entration. (CarpeDiem.com (a+b) [ca. 2009]. Homeopathic drinks, made with spring water, herbs and plants were launched in 2003. Drawing on Greek physician Hippocrates theories, they have relaxing, harmonising, or vitalising effects and are 100% natural with no added sugar, flavours, colouring or preservatives (CarpeDiem.com (c) [ca. 2009]). Carpe Diems elusive nature echoes Red Bull ®s marketing strategies. By using very little promotion such as point of sale in Selfridges, collaborating with masseurs, offering holistic solutions to weary shoppers, they let consumers find the product, re-creating that Red Bull ® buzz (CarpeDiem.com (d) [ca.2009]). The Wellbeing Zone on the Carpe Diem website details participatory events like urban Yoga, and an Osteopathic self-treatment programme run by experts (CarpeDiem.com (d) [ca.2009]). Like Red Bull Carpe Diem are securing income by creating a way of life, ensuring consumers buy into a philosophy: an appeal to the people of our time to li ve consciously and seize the day (CarpeDiem.com (e) [ca.2009]). (CarpeDiem.com (d) [ca.2009]) (CarpeDiem.com (b+c) [ca. 2009]) Page | 16 The Red Bull simply COLA ® 2008 launch was extremely controversial. Including ingredients such as the Kola nut and Coca leaf, the drink is sold as the only cola to be organic, taking the drink back to its roots. Adding diversity, the drink is available in 250ml and 330ml can sizes (World Advertising Research Centre 2009). In contrast to Red Bull ®s Buzz marketing technique, the launch covered eight markets worldwide including Austria, UK, Ireland, USA, Russia, Germany, Italy, and Switzerland (Redbullcola [ca. 2003]; World Advertising Research Centre 2009). 9.3 New Marketing Ideas (Redbullcola [ca. 2003]) In 2008, Red Bull ® invested only  £50,000 of its  £7.6 million budget in digital marketing, a number set to increase in 2009 (Revolutionmagazine.com 2009). Below are some examples: Red Bull ® entered the gaming industry in 2008 as the first advertiser on Playstations virtual world. Playing an online version of the Red Bull ® Air Race, users interact and share gaming experiences, adding publicity (Revolutionmagazine.com 2009). The Facebook Red Bull ® partnership in launching the new Facebook Connect site enables users to access all their social networking sites using just one login and password. With Facebook being visited by 3 in 10 people online across the world and social networking sites capturing 67% of the global online population, this partnership offers a low-cost way to advertise to hundreds of millions more consumers (The Nielson Company 2009) 9.4 Expanding the business model Red Bull ® purchased the paradise island of Laucala in 2003 for $10 million. Matesch itz association with the rich and famous will ensure a steady flow of customers for the seven star resort, furthering the drink companys credibility with consumers (Fijilive.com [ca. 2009]). In 2004, Selling Power reported Red Bull ®s intention to create a $1 billion motorsport and aviation theme park in Styria, Austria. Open-air arenas holding 100,000 onlookers, F1 racetracks, as well as a motorsport and aviation academy, are just some of the features. Visitors will be able to drive go-carts, high-powered sports cars, motorbikes or planes. Two hotels will provide accommodation, whilst a shopping pla

Managing Life Cycles Influences in an Organization :: essays research papers

Managing Life Cycles Influences in an Organization For everything in life there is a season, and the same holds true for business. There is a life cycle that successful businesses inevitably pass through. They endure the perils up start-up, often on a shoestring; they grow to greater size and stability, permitting the owners to think about building wealth for themselves and their employees; and they progress to a point where owners have to think about valuing and succession or sale of the business (Forbes p9). Your intelligence gathering--what you need to know and when you need to know it--will vary depending on the cyclical speed of the industry life cycles. When you recognize cyclical trends you will be able to determine effective intelligence strategies. If you work in a relatively new industry you will want to identify potential (new or would-be) surprise competitors. Near the end of the growth stage, you will need intelligence that will help hold market share during the market's eventual decline ( Inside R & D, p NA). Start Up Stage The start up stage is the most trying stage. A newly formed company is still testing out the waters. Expenditure is high and usually greater then the revenue due to start up costs and other start up fees. This is the time where you need to have strong management personnel that will stick with the company during the not so lean times. They have to have clear defined goals that they can pass on to their department.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Each stage also demands different talents and perspectives, and new leaders usually have to be brought in as businesses progress. The visionary who is well suited to leading a new business through its early experimental stages is often poorly equipped to guide the venture through the expansion and integration stages, when sales and organizational skills become more important than bold thinking and creativity (Garvin, 2004).  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The manager?s job is three-fold. They need to: 1) decide what needs to be done and how it is to be accomplished; 2) continually react to market conditions, 3) make sure his and his employees' efforts support that continually changing vision. Without a strong leader at the helm, the vision of the firm will be quickly outdated and the firm will be overrun by increased costs and declining sales (Osheroff p21). The goal of management is to see that rules are followed, budgets are met, and metrics are achieved.