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The Current State Of Obesity - 1526 Words

ENGLISH COMPOSITION Term 2 By: Darwin Hatfield S104430 Fatty Taxes The current state of obesity in the United States is a greater than that of other countries who live healthier lifestyles. Living healthy lifestyles is a great goal for a country to look towards achieving, and encouraging these lifestyles can benefit the country as well as the people. There are a lot of benefits for living healthy lifestyles, while there are also many negatives to living an unhealthy lifestyle. Taxing fatty foods would help to encourage buying healthy foods, and it could reduce obesity rates in America. There are a couple of problems within this way of thinking like: profits declining, people having to spend more, and the government going†¦show more content†¦With the steady growing problem of obesity, something soon has to change. There has been many programs to try and get citizens into shape, but the next step is to encourage eating healthy, and to increase competition among healthy and unhealthy foods. By raising the price of fatty foods (foo ds that are considered unhealthy by the daily standards) by a reasonable amount to help healthy food compete with the low price of unhealthy foods; it could help the obesity epidemic greatly. Obesity needs to be taken seriously because of how impactful it is becoming in our society. With obesity getting to where it is today, It would be a great thing if the government put health as a concerning issue. The health of the United states has been steadily declining for a couple of decades, and making it a concerning issue could help raise awareness for obesity. Encouraging healthy lifestyles would help improve everyone in the United States. The government already has a program to encourage eating healthy called Let s Move with the spokesperson Michelle Obama. The program is being used to help kids all across the United States to start getting into a healthier lifestyle. Over the past three decades, childhood obesity rates in America have tripled...If we don t solve this problem, one thir d of all children born today will suffer from diabetes at some point in their lives (Letsmove.gov). The obesity epidemic is out of control, and more

Income tax within the Malaysian tax environment Free Essays

string(131) " substructure in the state such as to mend some public route or add another main road for easier manner to travel to other finish\." Income revenue enhancement is a really wide topic which it can be differentiated into several classs. Income revenue enhancement is a important beginning of income for authorities to set about the development of a state. As a underdeveloped state, Malaysia besides implements income revenue enhancement in jurisprudence where there are two chief bureaus responsible to roll up the revenue enhancements. We will write a custom essay sample on Income tax within the Malaysian tax environment or any similar topic only for you Order Now The bureaus are The Inland Revenue Board and The Royal Custom and Excise Department. There are assorted revenue enhancements applicable to persons, partnerships and limited companies, for illustration, gross revenues revenue enhancement and service revenue enhancement are applicable for concern income and they are collected by The Royal Custom and Excise Department. The Malayan revenue enhancement environment will be discussed farther below. 1.1 The Malayan Tax Environment Malayan revenue enhancement environment is governed by The Income Tax Act 1967. A dealing must fall within the scope of ‘scope of charge ‘ to be apt to income revenue enhancement. Otherwise, it is revenue enhancement free. Section 3 of the Act provides: † topic to and in conformity with this Act, a revenue enhancement to be known as income revenue enhancement shall be charged for each twelvemonth appraisal upon the income of any individual accruing in or derived from Malaysia or received in Malaysia from outside Malaysia. † The Act does non specify an ‘income ‘ but alternatively categories the income under subdivision 4 and subdivision 4A. These two subdivisions are being used in finding the beginnings of income of the taxpayer. 1.1.1 Scope of charge Income revenue enhancement shall be charged for each twelvemonth appraisal upon the income of any individual that indictable to pay revenue enhancement. Under subdivision 3, there are two conditions that income revenue enhancement liability arises which are: The income of any individual accrue in or derived from Malaya This means an income will be capable to Malaysia revenue enhancement if the beginning of income is in Malaysia. The income of any individual from outside Malaysia ( foreign beginning income ) In this beginning of income, a foreign beginning of income would non be subjected to Malayan revenue enhancement, unless that foreign income has been remitted to Malaysia and received by a resident person ( with effectual from twelvemonth of appraisal 2004, such income is exempt from revenue enhancement ) However, there is income that is non charged to income revenue enhancement in regard of: Any seaward company that transporting on an offshore concern activity. This freedom is includes in subdivision 3B of the Act. Harmonizing to Fatt ( 2009 ) , the jurisprudence regulating the revenue enhancement for such seaward concern activity is the Labuan Offshore Business Activity Tax Act, 1990 ( LOBATA 1990 ) . This income is non indictable to income revenue enhancement unless an election is made to measure under income revenue enhancement. Any income received by a Malayan occupant company from outside Malaysia ( with consequence from twelvemonth appraisal in 1995 ) . Exempt dividend can be distributed from such foreign income, which is received in Malaysia by a resident company. However, where a individual is non a occupant for a footing twelvemonth of appraisal, income originating from beginnings outside Malaysia and received in Malaysia will be exempted from income revenue enhancement. 1.1.2 Beginning of income Section 4 of the Income Tax Act 1967, has listed down the categories of income which indictable to income revenue enhancement in respects of: Section 4 ( a ) Gains or net incomes from a concern, for whatever period of clip carried on Section 4 ( B ) Gains or net incomes from an employment Section 4 ( degree Celsius ) Dividends, involvement or price reductions Section 4 ( vitamin D ) Rents, royalties or premiums Section 4 ( vitamin E ) Pensions, rentes or other periodical payments non falling under any of the foregoing paragraphs Section 4 ( degree Fahrenheit ) Gains or net incomes non falling under any of the foregoing paragraphs 1.2 The Nature and Purpose of Taxation Tax is really of import and taxpayer should pay in peculiar twelvemonth appraisal based on the group of the taxpayer. The nature of revenue enhancement is certain per centum of a individual gaining will be taken by the authorities for revenue enhancement intent. The per centum is low-cost for the people and authorities ne’er charge more than that. In revenue enhancement, there are 2 types group of revenue enhancement which is Direct and Indirect revenue enhancement. Direct revenue enhancement is straight paid to the IRBM such as Income Tax. There will be no 3rd party involve to roll up the revenue enhancement. Meanwhile indirect revenue enhancements involve the 3rd party to roll up revenue enhancement such as service revenue enhancement, gross revenues revenue enhancement and excise responsibility. For illustration we take service revenue enhancement. We can see how the service revenue enhancement working clearly normally at the fast nutrient eating house such as Mc Donald. Mc Donald eating house is on behalf of authorities and the revenue enhancement will be collected by the Mc Donald eating house or the service supplier. Both types of revenue enhancement are the most of import beginning of authorities gross. Income revenue enhancement is ever treated as part for the benefits received that provided by the authorities such as medical Centre to the people. However, they are non paid in exchange for some specific thing, such as the sale of public belongings. The intent of revenue enhancement is to develop the state by utilizing the revenue enhancement received. In other words, it financess the authorities disbursement for different intents. For illustration, the authorities gives certain sum of revenue enhancement gross to the Ministry of Health to pull off and pass it in the best manner for their medical intervention, to purchase medical specialties, better medical engineering and to assist people. These benefits are enjoyed by public citizens and gives positive impact on their day-to-day life. The same goes to other benefits enjoyed by citizens such as good substructure. The revenue enhancement gross is used to develop the substructure in the state such as to mend some public route or add another main road for easier manner to travel to other finish. You read "Income tax within the Malaysian tax environment" in category "Essay examples" These betterments are trusting on Public Works Department. Public conveyance besides of import for t he people and this duty rely on the Ministry of Transport. They build the airdrome for air transit and port for the sea transit. Good conveyance systems will demo that Malaysia is developing positively. Other intent of revenue enhancement is the authorities spend the money from revenue enhancement gross to subsidise pupils for higher degree instruction in public universities. The money spend on this intent are really helpful for the hapless to acquire proper instruction and develop rational state. All these betterments are based on the revenue enhancement gross paid by the citizen. 2.0 Answer to scenario 1- Income revenue enhancement calculation for Encik Daniel Based on the scenario given, Encik Daniel is an employee where he presently working for his friend ‘s company as a manager. He is a nonexempt individual since he obtains one-year income more than RM25, 501. Therefore Encik Daniel is entitled to pay employment income under subdivision 4 ( B ) income. In January 2009 until 30th June 2009, Encik Daniel was worked with private company and earned RM60, 000 gross wages after subtracting EPF part of 11 % and revenue enhancement of RM300. The computation is as follows: W1: Gross salary = RM8600 + RM300/0.89 = RM60, 000 In Encik Daniel ‘s instance, he is exempted from tip of RM100, 000 that he receives upon retirement because of carry throughing the conditions of tip freedom that effectual 2007 onwards. The conditions are retirement, age of 55 and he has been working for the company more than 10 old ages. The freedom of tip is province under Para 25, 25A, 25B of Sch 6. Harmonizing to Income Tax Act 1967, under s 13 ( 1 ) ( B ) , ticker is treated as a gift which is exempted from revenue enhancement where it is mere present and non income in nature. The same goes to mobile phone which was provided by his employer while he is working for the 2nd company get downing 1 August 2009. For supplying under a semi-furnished house, Encik Daniel receives RM160 monthly. But the value of benefits is up to RM140. Thus, the computation is as follows: W2: Furnishing = RM140 x 4months ( 1 January 2009 – 30 April 2009 ) = RM560 Medical disbursals that Encik Daniel receives which provided by his employer is exempted where this benefit is effectual from twelvemonth appraisal 2008. For vacation bundle which dainty under leave transition, the revenue enhancement exempt topic to the bounds of RM3000. This means that, the air menu is nonexempt after subtracting RM3000 and the sum nonexempt is RM10, 000 ( W3: RM13, 000 – RM3000 ) . Harmonizing to Income Tax Act 1967, adjustment is non nonexempt due to the phrase ‘leave transition for travel ‘ quote under Act 591/98 which merely restricted to cost of transition such as air menus, insurance and theodolite costs. Harmonizing to Income Tax Act 1967, under s 13 ( 1 ) ( degree Celsius ) , adjustment provided by the employer is nonexempt based on the lower sum of defined value of populating adjustment or 30 % of Encik Daniel ‘s gross income under s 13 ( 1 ) ( a ) [ s 32 ( 2 ) ] . Therefore, the computations are as follows: W4: Defined value of populating adjustment = RM1, 200 ten 4months ( 1 January 2009 – 30 April 2009 ) = RM4, 800 30 % of Encik Daniel ‘s gross income = 30 % x RM 60, 000 ten 4/6 = RM12, 000. For unapproved fund under s 13 ( 1 ) ( vitamin D ) income, the sum assessable would be RM50, 000 ( W4 ) which comes from RM40,000 of the employer part and RM10,000 of the involvement earned. Amount contributed by Encik Daniel is capital in nature and would non be taxed. For the 2nd company that Encik Daniel presently working with, he will be assessed under subdivision 4 ( B ) employment income as a manager. Since he started working with the company started 1 August 2009, the months involved in ciphering his income is traveling to be 5 months which is applicable until the terminal of twelvemonth 2009. Therefore, the manager fees and amusement allowance that he receives monthly under s 13 ( 1 ) ( a ) income will be multiply by 5. Under s 13 ( 1 ) ( B ) , company auto that Encik Daniel receives bing RM140,000 which harmonizing to prescribed method for motor vehicle tabular array, the one-year value of private use of the auto autumn under RM5,000. No is no fuel provided and the computation is done as follows: W5: RM5, 000 ten 5/12 months = RM2, 083. Other than that, Encik Daniel besides was provided a driver which harmonizing to Income Tax Act 1967, the proviso of driver is RM600 per month. This benefit is calculated effectual from 1 August 2009 until 30 December 2009. Therefore, the proviso of driver for the twelvemonth appraisal 2009 is RM3, 000 ( W6 ) . Meanwhile the proviso for domestic retainer and nurseryman that provided to Encik Daniel, the sum is RM400 and RM 300 a month severally even though the wage they receive is more than that. The computation is as follows: W7: Domestic retainer = RM400 x 4 months ( effectual from 1 September 2009 ) = RM1, 600 W8: Gardener = RM300 x 4 months ( effectual from 1 September 2009 ) = RM1, 200 Under s 13 ( 1 ) ( degree Celsius ) , adjustment in a hotel with day-to-day room rate of RM250 that provided for Encik Daniel in August is calculated as flows: W9: RM250 x 31 yearss = RM7, 750 ( the 30 % is non applicable because Encik Daniel is non a service manager ) Meanwhile for unfurnished house provided for Encik Daniel on 1 September 2009, the monthly rental benefit that he receives is RM8, 000. ( RM2, 000 ten 4 months ) ( W10 ) . 2.2 Income Tax Computation for Puan Sara Puan Sara ‘s income fundamentally depends on rental income which falls under subdivision 4 ( vitamin D ) income. Annual rental income for Puan Sara is RM10, 800. This rental income will be deducted with the disbursals incurred in 2009. Below is the income revenue enhancement calculation for Puan Sara. 2.3 Detailss about submitting and payment of income revenue enhancement by Encik Daniel and Puan Sara Based on the information provided by Inland Revenue Board of Malaysia ( IRBM ) the inside informations are as follows: The date line for subjecting Encik Daniel ‘s revenue enhancement return for the twelvemonth of appraisal 2009 is 30th April 2010. The revenue enhancement payments of Encik Daniel ‘s employment income will be deducted by the employer under Scheduler Tax Deduction ( STD ) . The due day of the month for paying the balance of any revenue enhancement due is 30th April 2010. The timeframe for a valid entreaty against an appraisal is 30 yearss. In instance of an entreaty Encik Daniels entreaty will be forwarded for finding to Special Commissioner of Income Tax. Be form can be viewed at the terminal of this undertaking. 2.4 Recommendation on revenue enhancement planning chance available for Encik Daniel and Puan Sara to minimise the revenue enhancement collectible lawfully The revenue enhancement planning chances provided in the scenario is Puan Sara can elects joint appraisal where Encik Daniel and her income can be combined together and the revenue enhancement calculation will be done based on the aggregative entire income. Based on the revenue enhancement calculation for joint appraisal that we have done supra, we found that the revenue enhancement payable is lesser comparison to divide appraisal for Encik Daniel and Puan Sara. The different between these two appraisals is RM 134. This means that both of them can salvage RM 134 if Puan Sara chosens for joint appraisal. In add-on, if they go for separate appraisal, the indictable income for Puan Sara appeared negative. This shows that, she can salvage the money if she elects joint appraisal. 2.4.2 Make usage of the personal alleviation available In order to minimise the income revenue enhancement lawfully, Encik Daniel can do usage of the personal alleviation where he can claim for: Medical disbursals for his parents. This disbursal is limited to RM5, 000. Alternatively of utilizing merely RM4, 500, Encik Daniel should utilize it up to RM5, 000. It is of import for his parents to acquire better medical services since they become older and the opportunities of acquiring unhealthy is high. Education fees. For uninterrupted acquisition and betterment, we think that Encik Daniel should go on his survey for higher degree of instruction since he already affect in concern. For his age, self realization is of import for him as he already achieve the other demands. By making this, Encik Daniel can do usage of the alleviation up to RM5, 000. Purchase of books, diaries and magazines. Encik Daniel should purchase more books and do usage of the alleviation up to RM1, 000. He can purchase books and diaries for his kids that still analyzing. Diaries are really good beginnings of information and Encik Daniel should read it a batch to maximise his general cognition. Sum deposited into Skim Simpanan Pendidikan Nasional ( SSPN ) . Encik Daniel has a 16 old ages kid which still analyzing in secondary school. It is utile if Encik Daniel sedimentation sum of money in this strategy as an early measure for fixing his kid for higher degree instruction. If Encik Daniel uses this strategy, RM3, 000 of the indictable income is allow to be deducted. Purchase of athleticss equipment. As Encik Daniel go older, it is important for him to maintain tantrum and healthy. He should affect in athleticss such as badminton, tennis and jogging. To make this, suited athleticss equipment such as places is of import. He should purchase the athleticss equipment up to RM300, so that the sum can be deducted from his indictable income for revenue enhancement intent. If Encik Daniel makes use the above alleviation for twelvemonth appraisal 2009, he can salvage up RM2, 402. It is much more than making joint appraisal. We recommend Encik Daniel to take this method as the revenue enhancement planning chance to minimise the income revenue enhancement. The revenue enhancement calculation will be as follow: 3.0 Partnership Harmonizing to Fatt ( 2009 ) , a partnership is defined as an association of any sort between parties who have agreed to unite any of their rights, powers, belongings, labor or accomplishment, for the intent of transporting on a concern and sharing the net incomes therefrom. These combination consequences in rights and spouses normally hold their ain ratio for sharing net incomes and loss Partnership is under subdivision 2 of the Act. It defines ‘person ‘ to include a company, a organic structure of individual and a corporation sole. So, there are some undermentioned factors need to be present before a partnership is said to be which is transporting on concern, distribution of rights and duties, a position to net income and component of hazard and wages for each spouse. However, partnership may besides be without †partnership understanding † which it besides can be in verbal but the hazard is on their duties. Fatt added that partnership is non a indictable individual for income revenue enhancement intent 3.1 How the partnership is taxed Partnership is taxed separately where net incomes made are added to the person ‘s personal income and are separately apt for the net income under personal income revenue enhancement. This means that revenue enhancement will be charged to the single spouses in their portion of concern income and will be taxed on their ain names. Spouses that are reference here is refer to persons or companies. Therefore, spouses will pay income revenue enhancement on their concern activities and other income beginnings at the valid personal revenue enhancement rate for the peculiar twelvemonth appraisal. The appraisal of partnership concern income is divided into three classs which are probationary adjusted income, divisible income, and adjusted income of spouse. Provisional adjusted income Harmonizing to Fatt ( 2009 ) , a partnership is presumed to be a exclusive proprietary for the intents of calculating partnership adjusted income which besides known as ‘provisional ‘ adjusted income. They are deductable disbursals and non-deductable disbursals in the net income and loss history for probationary adjusted income. Divisible income For divisible income, the income and capital allowances are computed base on the net income sharing ratio as their agreed in the partnership understanding. Harmonizing to scenario 2, Ng and Siow shared net incomes every bit up to 31 March 2006. However, from 1 April 2006, they change the net income sharing ratios to 60 % for Ng and 40 % for Siow. Because of the alterations in their net income sharing ratio occurred during 1 April 2006, an allotment of divisible income on the clip footing will be carried out. Double tax write-off is allowed by authorities for divisible income. Adjusted income of spouse If divisible income is divided among spouses based on their several net income sharing ration, spouse ‘s disbursals such as private disbursals in adjusted income of spouse would be allocated to the several spouse in conformity with their existent ingestion. Harmonizing to scenario 2, 20 % of private usage of the auto will be allocated under Siow partnership disbursals account. 3.2 The Calculation of the Entire Income for Each Partner for the Year Assessment 2006 Below is the Net income and loss history of the partnership for the twelvemonth ended 31 December 2006. 3.3 Explanation Sing the Above Computation 1.1.2006 – 31.03.2006 ( 3Months ) Harmonizing to the partnership understanding, Ng and Siow has a shared net income every bit up to 31 March 2006. From 1st April 2006, the shared ratio has changed to 60 % for Ng and 40 % for Siow. Furthermore, Siow has usage of a auto owned by the company for private disbursals. Therefore, Siow has amounted to 20 % for private usage auto. From the 2,400 Ng and Siow has to split by 4 because the calculation has provided 3months of each spouse income. Private usage of auto = 12,000 ten 20 % = 2,400 Interest of capital per annum for Ng and Siow is RM 10,800. To Ng, involvement of capital for 31 December 2006 that he has to pay is RM6,000 per annum and to Siow, he has to pay RM4,800 per annum. In first calculation of each spouse income, Ng and Siow, has to pay the involvement of capital by divide by 4 because the calculation has provided 3months of each spouse income. = 1,20 Harmonizing to Income Tax Computation for NS Educational Partnership Year Assessment 2006, the entire divisible income is RM160,000. Meanwhile, the sharing ratios in the first 3month of the twelvemonth are every bit, so we have to split every bit to Ng and Siow. 1.4.2006 – 31.12.2006 ( 9Months ) Private disbursals for each spouse at 1.4.2006 – 31.12.2006 ( 9Months ) is 1,800 because has to minus with the 3 months. Private disbursals: Ng 2,400-600 = 1,800 Siow 2,400-600 = 1,800 Wages for each spouse for the twelvemonth ended 31 December 2206 should minus with the reply of 3 months because want to cognize the balance of the wages at 1.4.2006 – 31.12.2006. Salary: Ng 90,000 – 22,500 = 67,500 Siow 60,000 – 15,000 = 45,000 Interest on capital for each spouse for the twelvemonth ended 31 December 2206 should minus with the reply of 3 months because want to cognize the balance of the wages at 1.4.2006 – 31.12.2006. Interest on capital: Ng 6,000 – 1,500 = 4,500 Siow 4,800 – 1,200 = 3,600 The entire divisible income 160,000 minus 40.000 from the 3 months and after acquire the reply we should split that for each spouses. Divisible income: 160,000 – 40,000 = 120,000 Nanogram: ( 120,000/5 ) x 3 = 72,000 Siow: ( 120,000/5 ) x 2 = 48,000 From the scenario has an approved contribution is 13,000. And the sanctioned contribution besides should split for each spouse. Approved contribution: Nanogram: ( 13,000/5 ) x 3 = 7,800 Siow: ( 13,000/5 ) x 2 = 5,200 From the scenario has an one-year allowance is 9,000. And the one-year allowance besides should split for each spouse. Annual allowance: Nanogram: ( 9,000/5 ) x 3 = 5,400 Siow: ( 9,000/5 ) x 2 = 3,600 4.0 Research on Tax Planning Opportunities for Individual with Business Income It is of import for the taxpayers to aware of the options available to them in order to maximum the benefits in running the concern and at the same clip can minimise the revenue enhancement collectible lawfully. To minimise, extinguish or postpone the income revenue enhancement, the beginning of income must fall within the scope of the jurisprudence which is the Act. Harmonizing to Victor ( 2010 ) , since gross outgo is normally absorbed in the period in which it is incurred, it is normally an allowable disbursal that a concern can compose off against its indictable income. Harmonizing to the instance survey, NS Education participates in a trade exhibition that was approved by MATRADE for the intents of advancing the export of the partnership ‘s services. This means that they are be aftering to spread out the concern overseas by offering their services loosely. In order to export their services, there are many things to be done such as export the resources from Malaysia to outside state in order to put up their concern. First thing foremost, they have to do certain that all paperss and resources being export are safe during the exportation. To make that, insurance is needed. Insurance is gross outgo as it represents an disbursal entirely and entirely incurred in the production of gross income. Let state NS Education will be operated in Australia. This means that they have two picks whether to purchase the insurance in Malaysia or Australia. In order to minimise the revenue enhancement, we recommend NS Education to purchase the insurance from Malay sia instead than Australia because the Income Tax Act 1967 allows dual tax write-off for this disbursal. Other revenue enhancement planning chance is the beginning of the concern must be done before the disbursals incurred. Expenses can be in the signifier of hire employees to renovation, every bit long as the disbursals are entirely entirely incurred in the production of income. This is because these disbursals are deductable against the gross income. Other than that, single with concern income can travel for preparation or classs to better the accomplishments in running the concern. This disbursal is besides deductable at the clip of beginning. 4.1 Decision As a decision, income revenue enhancement gives a batch of benefits to the citizens and assist developing the state. Income revenue enhancements which come from concern beginnings is considered much more compare to the employment income. Both calculations involve different computation and accommodation, so that all the revenue enhancements collectible are low-cost by the people. How to cite Income tax within the Malaysian tax environment, Essay examples

Culutual Anthropology Essay Research Paper As an free essay sample

Culutual Anthropology Essay, Research Paper As an recreational anthropologist, I was to take part in my observation, which I did to the best of my ability. Choosing my subject was the most hard for me. Coming to America there are so many options that I could take to research. So what was I to make? Well, being in the province of Kentucky, Lexington at that, I decided to research a clean event in which Americans call hoops. Equally shortly as I stepped of the large metal bird, I saw a image of a wild cat keeping a unit of ammunition orange ball. I remember believing, # 8220 ; I could neer run these animate beings, they are excessively smart, they are nil similar to the 1s in the Outback of Australia. So I stopped the individual that rode following to me on the metal bird, # 8220 ; What is that carnal making with that ball? # 8221 ; He remarked, # 8220 ; We are in Lexington, place of the Kentucky Wildcats. # 8221 ; With that he walked off. How could Kentucky be considered the place of the wildcat? We have many in the Outback. So, I continued down the nest where the birds drink and remainder. Then it eventually hit me, the name of the hoops squad were the Wildcats. I was good on my manner to happen these # 8220 ; Kentucky Wildcats. # 8221 ; I arrived where they house the wildcats that play ball. The name of the coop was Rupp Arena. Apparently, I was non the lone one interested in watching these trained animate beings play the athletics of hoops. The monetary value to watch these animate beings were highly expensive ; 30 dollars in American currency which would interpret into 300 of my ain currency. Once inside the coop I found that it was non at all what I thought it to be. There was an tremendous sum of people present. In my observation this event is the biggest that people in this civilization attend. In this coop you could smell a assortment of things. Some odors were all excessively familiar from place ; the piss odor as you walked into the topographic point where people went to alleviate themselves reminded me of the # 8220 ; Hole. # 8221 ; They had many different nutrients that smelled nil like anything that I have of all time smelled earlier. They had a brown thing that was twisted into a eldritch design ; they had something that was in the signifier of a trigon that looked like a piece of staff of life with cheese on top and circular meat. I subsequently learned that this nutrient was called pizza. I was introduced to sweet soiled H2O that they call Pepsi. They gave me small square balls of ice to maintain my Pepsi cold while I watch these animate beings play hoops. I was ready to travel watch the animate beings. What a eldritch event that brought an utmost sum of people. As I enter the chief room of the coop I find that the floor is made of wood with composing on it and there are two eldritch looking trees, one at each terminal of the tribunal. I was overwhelmed by what I saw, I had to travel down at that place and see what was traveling on. I figured there are a batch of people down at that place looking at the Wyrd trees and the wood shocking with composing on it so why non fall in them. But what I was confused about was the fact that there were 26 people on this floor throwing orange balls into a ring attached on the trees. Possibly this was a ritual before the wildcats were brought out. As I try to take my first measure onto the floor a adult male that was have oning a xanthous coat with black inscription stopped me. He tried to explicate that lone remunerators could be on the floor. The look on my face may hold shown him that I was an foreigner and he explained that the game was approximately to get down and I should take my place. So before I found the right place after sitting in three other people # 8217 ; s seats, a adult male have oning a bluish waistcoat eventually showed me to my place. After sitting for 10 proceedingss the villagers began standing. In order to try to suit in I did this besides. After I stood, music began to play and for awhile it appeared that everyone was starring at me, but after a few minutes I realized that they were looking at a flag which represents the United States. After the vocal was over, I did as the remainder and sat dow n. I was ready to see the wild cats play hoops. To my surprise 10 of the 26 people that was throwing the orange ball into the rings on the trees walked out have oning their tribal colourss, five on each folk. Then three cats that were dressed like zebras walked out on to the floor with the two different folks transporting the same orange ball that the tribal work forces were throwing up earlier. After everyone walked out onto the floor everyone began to shout every bit loud as they could and stamp at that place pess and bang at that place hands shouting, # 8220 ; Go Wildcats. # 8221 ; In absolute joy I stand up anticipating to see the animate beings playing hoops, but alternatively it is the tribal work forces. They are running back and Forth with the orange ball. Severa cubic decimeter of the work forces would throw the ball to the land and it would resile back up to them, as they would run with it. The tribal work forces would group themselves up in braces and take bends standing in forepart of them beckoning their weaponries like they are brainsick. I think that it was a ritual to make this to each other as to demo regard for one another. The zebra looking work forces neer touched the orange ball except when the made a loud noise through a small black thing they blew into. The zebras controlled piques that both folks would allow detonate into choler. Every clip a folk adult male would acquire hit by an opposite member of the folk the zebra would blow his small black thing and keep up fingers towards the villagers in the bleachers. I noticed that this civilization would utilize manus gestures to pass on. As a participant I would mime their actions and throw my custodies in the air when they did. It was unusual because the same gesture would demo ei ther disgust or joy for their folk. Some would even expose their in-between finger, which I took as a humbling gesture. After 20 proceedingss of the folks playing hoops, a loud horn sounded naming the folks off the tribunal. At this clip all the villagers got up from their place and travel to the cage’s meeting topographic point, where 1 could acquire nutrient and drink or urinate. Some would even set a little white stick to their oral cavity and continue to catch it on fire. After 30 proceedingss everyone shuffled back into the stamping evidences in which were for before the large horn blew once more. Once once more the two tribal work forces took to the large wooden floor and the eldritch trees. I noticed that the head was non have oning the same garments as his followings. He wore apparels that covered all his organic structure except his face. The tribe work forces wore shirts with the arms ripped off and bloomerss with half the legs cut off. I think that possibly the tri be’s work forces have battled prior to this meeting and this was the ground for their ragged garments. The chiefs neer stepped onto the large wood floor. He did nevertheless beckon his custodies like a brainsick adult male and even jumped up and down like the followings under him. Some of the work forces would even plunge into the villagers to see if they were paying attending to what was blossoming before them. The mixture of the villagers was astonishing. It seemed no affair if you had colored or you were pale you were accepted if you did good for the folk and considered a shame if you hurt the folk. Both folks had people of different colourss and ages. Some had old mans and wrinkled tegument and others were excessively immature to speak and demo their blessing for their folk. All come out to demo support and to promote their well-thought-of folk. After passing a Thursday dark in a coop called Rupp Arena I learned that the folks name is called the Wildcats and it is a competitory sporting event and nil more. However, some of the villagers ever think that they can make better than who represent them. I have found that if I live by these three regulations in Rupp Arena one can successfully make full his/her function in roll uping informations ; one- go along with the crowd, they have been around for awhile and cognize the ropes ; two- cry loud for the folk that traveled the least sum to acquire to Rupp Arena ; three- smiling and hit others custodies when the orange ball goes through the ring on the tree. It is wise to shout for the folk that you sit amongst. I would ever hold a individual assisting me to larn the game of hoops as Barbara Anderson had person show her the ropes in the bathing machine. And to happen out information about what was go oning, I would inquire merely as she did to happen out more about the civilization in Denmark. As I merely sat there detecting the actions I found that everything was cosmopolitan, the shouting, the manus gestures, and the jumping up and down. They were all actions that showed either disgust or joy for what was go oning on the floor. This is a manner that people can bask life and kick back and bask the actions that took topographic point in forepart of them or it was a manner for them to populate their yesteryear through the current rivals. The eldritch trees I found out subsequently are called ends in which the participants would hit the hoops. They would go through and dribble and the manager would learn his participants to play defensive on the other squad. I found it really hard to be merely an perceiver and sometimes I would catch myself basking my milieus and non making the thing that I was at that place to make in the first topographic point. I enjoyed it though because it enabled me to sit back and catch some people making crackbrained things that I likely sometimes do. Overall this was a merriment undertaking to take portion in and I am glad that I was able to make it at a University of Kentucky hoops game.

The Issues Of Pepsico International Strategy Commerce Essay Example For Students

The Issues Of Pepsico International Strategy Commerce Essay Coca-Cola, the major rival of Pepsi has been exiled from the desert land. Because of this, Pepsi expanded into Arab Countries A ; has an 80 % portion of the $ 1 billion Saudi soft-drink market. Saudi Arabia is the 3rd largest foreign market of Pepsi, after Mexico and Canada. In 1993, approximately 7 % of Pepsi-Cola International s gross revenues came from Saudi Arabia. The environment in Saudi Arabia makes the state really favourable to soft-drink gross revenues because intoxicant is banned amp ; clime is really hot and dry. Outline1 Mode of Expansion:2 Beginnings of Competitive Advantage:3 Government Policies:4 Plague Analysis5 Political Influences:6 Economic Influences:7 Socio-Cultural Influences:8 Technological Influences:9 Porter 5 FORCES Analysis10 2. Menace of Substitute Merchandises:11 3. Dickering Power of Suppliers:12 4. Dickering Power of Buyers:13 5. Competition Among Rivals:14 SWOT Analysis15 1.Internal Properties ( Strengths A ; Failings )16 2.External Properties ( Opportunities A ; Threats )17 Critical Issues or Barriers:18 Recommendations:19 Decision:20 Appendix: Mode of Expansion: We will write a custom essay on The Issues Of Pepsico International Strategy Commerce specifically for you for only $16.38 $13.9/page Order now Pepsi utilizations franchise system for international enlargement. Beginnings of Competitive Advantage: PepsiCo has competitory advantage in footings of worldwide distribution A ; the company is able to bring forth all its merchandises in the state where they are consumed. Pepsi has a competitory advantage over Coke because of its trade name image A ; good word of oral cavity. Pepsi promotes itself as the figure one pick of the Following Coevals . Government Policies: Presently a 50 per centum rise in Pepsi monetary values in Saudi has angered clients and provoked the land s authorities to name on more than 30 soft drink companies to keep off on farther monetary value hikings. Pepsi increased the monetary value of a can to 1.50 riyals $ 0.40 from 1 riyal.it. Saudi Consumer Protection Association investigated the sudden undue monetary value hiking, the Saudi Gazette reported that official permission should beA granted to soft drink houses before they are allowed to increase monetary values and monetary value rise should non be more than 10 per centum. Plague Analysis Political Influences: Many PepsiCo merchandises are capable to different federal Torahs due to their fabrication, distribution A ; usage, such as the Food, Drug and Cosmetic Act, the Occupational Safety and Health Act ad the Americans with Disabilities. The international ventures are capable to the Government stableness and concerns are subjected to different revenue enhancement policies in each consumer state. Economic Influences: PepsiCo relies on trucks to travel merchandises so fuel is an of import topic A ; fuel monetary values affairs. The economic impact of foreign exchange rates motions on them is complex because such alterations are frequently linked to variableness in existent growing, rising prices, involvement rates, governmental actions, etc. PepsiCo is besides subjected to other economical factors like money supply, energy handiness, cost and concern rhythms. Socio-Cultural Influences: Pepsi is capable to the lifestyle alterations, so it bases her advertisement runs in people with particular life style. For that PepsiCo has to pay particular attending on lifestyle alterations. It has to be really careful with the possible jobs with the authoritiess and those which could lift from PepsiCo act with the people of KSA. Technological Influences: PepsiCo is exposed to new fabrication techniques, for its three concern units, bite nutrient, juices and soft drinks. It has to pay attending while following flexible A ; advanced distribution techniques. Porter 5 FORCES Analysis 1. Menace of New Entrants: The menace of new entrants in the industry is little yet significant. This is because there are already four participants in the market other so Pepsi itself. .u31492892bcd584a324f4c6cbece36f48 , .u31492892bcd584a324f4c6cbece36f48 .postImageUrl , .u31492892bcd584a324f4c6cbece36f48 .centered-text-area { min-height: 80px; position: relative; } .u31492892bcd584a324f4c6cbece36f48 , .u31492892bcd584a324f4c6cbece36f48:hover , .u31492892bcd584a324f4c6cbece36f48:visited , .u31492892bcd584a324f4c6cbece36f48:active { border:0!important; } .u31492892bcd584a324f4c6cbece36f48 .clearfix:after { content: ""; display: table; clear: both; } .u31492892bcd584a324f4c6cbece36f48 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u31492892bcd584a324f4c6cbece36f48:active , .u31492892bcd584a324f4c6cbece36f48:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u31492892bcd584a324f4c6cbece36f48 .centered-text-area { width: 100%; position: relative ; } .u31492892bcd584a324f4c6cbece36f48 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u31492892bcd584a324f4c6cbece36f48 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u31492892bcd584a324f4c6cbece36f48 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u31492892bcd584a324f4c6cbece36f48:hover .ctaButton { background-color: #34495E!important; } .u31492892bcd584a324f4c6cbece36f48 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u31492892bcd584a324f4c6cbece36f48 .u31492892bcd584a324f4c6cbece36f48-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u31492892bcd584a324f4c6cbece36f48:after { content: ""; display: block; clear: both; } READ: Impressive And Edible Table Decorations Essay2. Menace of Substitute Merchandises: Presently, the menace of new feasible rivals in the carbonated soft drink industry is non really significant. Possible replacements that continuously put force per unit area on Pepsi include tea, java, juices, milk, and hot cocoa. 3. Dickering Power of Suppliers: The bargaining power of the providers tends to be low harmonizing to the recent analysis. PepsiCo needs to pull off its relationships carefully with the bottling units in order to do alterations in its manner to market the local retail merchants. 4. Dickering Power of Buyers: Here the concern is how to increase market portion and retain its current client because client ever seek to optimise benefit. The purchasing power of consumers besides poses a cardinal menace in the industry. Furthermore consumers can merely exchange to other drinks with small cost or importance. 5. Competition Among Rivals: Pepsi has 48.9 % portion of market A ; it is situated in an environment that is of all time altering and dynamic because coca Cola is keeping 30.9 % portion A ; Cadbury Schweppes 8 % . The local trade names are besides in the market to vie Pepsi. These trade names are Mecca Cola keeping 0.5 % market portion and 0.6 % Zamzam Cola. SWOT Analysis 1.Internal Properties ( Strengths A ; Failings ) Pepsi is inferior in its fountain drink division. The ownership in fast nutrient eating houses has ever been debatable for Pepsi. Coca Cola has been in the top locations for fountain drinks because of their ownership in Taco Bell, Pizza Hut, KFC, and many others. 2.External Properties ( Opportunities A ; Threats ) In add-on to its big consumer base, Saudi Arabia has some of the part s biggest athletic nines, most passionate athleticss fans, and has a turning population of jocks and active people. When PepsiCo started its ain Pepsi Bottling Company, it allowed them to cut costs, cut down operating expense, and organize their distribution to make a better synergism. Critical Issues or Barriers: Pepsi can function the 90 % market but job is the bottling of the drink. War crisis between Palestine and Israel is conveying hatred against Pepsi that why USA is non involvement in deciding the issue As Pepsi is US merchandise and these yearss US and foreign merchandises are campaigned non to be used to demo ramp against non-Muslim Acts of the Apostless. Due to recent oil monetary values addition, there is international factor of rising prices and on the other manus Pepsi is cheaper in KSA compared to other states, so Pepsi is confronting job to keep the net incomes. Since employers in KSA are required to give their employees clip to pray toward Mecca five times per twenty-four hours, as set Forth in the Koran, interruption times caused extra operating cost. Health and tummy diseases due to over usage. Fleshiness job which is going common in Saudis. Rumors of Haram ingredients. The tough competition is carried out through packaging every bit good as monetary value. Recommendations: Pepsi is being forced to re-examine their strategic theoretical accounts, based on carbonated soft drinks and travel to new drink classs. Heavy investmentment in hazardous inventions may be suggested in order to reassign resources from other trade names. Pepsi spends 15 % of overall budget on advertisement and selling to be no.1 in the consumer sight. Pepsi should utilize all media vehicles to pull consumers. Decision: Consumers want to purchase soft drinks delivered at convenient locations with the right bundle. Pepsi have to do certain that the market keeps turning yearly, and that company merchandises are available everyplace. Pepsi has won the International Quality Award and Bottlers of the twelvemonth Award, so the company feels rather optimistic. Although hard challenges lay in front, yet to work chances through the execution of an effectual and comprehensive selling program 2009. .u498322935f4bab07582799cc42b7a1c2 , .u498322935f4bab07582799cc42b7a1c2 .postImageUrl , .u498322935f4bab07582799cc42b7a1c2 .centered-text-area { min-height: 80px; position: relative; } .u498322935f4bab07582799cc42b7a1c2 , .u498322935f4bab07582799cc42b7a1c2:hover , .u498322935f4bab07582799cc42b7a1c2:visited , .u498322935f4bab07582799cc42b7a1c2:active { border:0!important; } .u498322935f4bab07582799cc42b7a1c2 .clearfix:after { content: ""; display: table; clear: both; } .u498322935f4bab07582799cc42b7a1c2 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u498322935f4bab07582799cc42b7a1c2:active , .u498322935f4bab07582799cc42b7a1c2:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u498322935f4bab07582799cc42b7a1c2 .centered-text-area { width: 100%; position: relative ; } .u498322935f4bab07582799cc42b7a1c2 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u498322935f4bab07582799cc42b7a1c2 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u498322935f4bab07582799cc42b7a1c2 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u498322935f4bab07582799cc42b7a1c2:hover .ctaButton { background-color: #34495E!important; } .u498322935f4bab07582799cc42b7a1c2 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u498322935f4bab07582799cc42b7a1c2 .u498322935f4bab07582799cc42b7a1c2-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u498322935f4bab07582799cc42b7a1c2:after { content: ""; display: block; clear: both; } READ: The Osage Orange Tree - Peer Pressure EssayAppendix:

Rayovac Case Study

Rayovac Case Study Executive Summary Rayovac Corporation is contemplating expanding its rechargeable batteries line. This would be a shift from the alkaline disposable batteries. Currently, the company is the third largest battery maker, after Duracell and Energizer.Advertising We will write a custom essay sample on Rayovac Case Study specifically for you for only $16.05 $11/page Learn More Like all profit-making organizations, Rayovac is interested in maximizing its return on investment. The company intends to maximize shareholder value through growth. Battery consumers are divided into two groups based on size of purchase. There are individual (family) consumers and manufacturing customers. The threat of new entrants in this industry is insignificant. The current industry players already own all the patents related to manufacture. Since the market is composed mainly of individual buyers, the overall bargaining power of buyers is relatively low. There is stiff competition amo ng the top three industry players Duracell, Energizer and Rayovac. This is evident in the guerrilla tactics employed in their advertisement campaigns. A financial analysis was conducted to determine whether the rechargeable batteries option is viable. The Ansoff’s growth matrix has also been used to determine the strategic options available to Rayovac. According to these findings, it is not worthwhile for the company to implement the strategy. Rather, it should focus on market penetration and market growth. Problem Statement Rayovac Corporation is contemplating expanding its rechargeable batteries line. This would be a shift from the alkaline disposable batteries. Currently, the company is the third largest battery maker, after Duracell and Energizer. The market is yet to adopt the concept of rechargeable batteries fully. This is both an opportunity and a threat. It could be an opportunity for market growth or a fad, which may pass. Mr Falconi needs to decide whether to seek other means of creating sustainable competitive advantage in the disposable batteries market or to change the strategy to focus on rechargeable batteries. Rayovac needs answers to several questions before making this strategic decision. If they make the investment, will the company grow to be the market leader in this product line? Will the market embrace the product? Will the company have enough cash to execute the strategy? Which marketing strategies should be adopted if the plan is implemented? How are competitors likely to respond? Will this strategy grow the overall business?Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Situational Analysis Rayovac History Rayovac was founded in the early 1900s. Initially, it was called The French battery Company. The name was changed to Rayovac in the 1930s. In 1933, the company patented a hearing aid. This began the journey to dominate t he hearing aid market. Currently, Rayovac is the market leader in wearable hearing aids. In the years 1930-1988, Rayovac concentrated on manufacturing batteries for consumer products such as radios, flashlights and computer clocks. The company acquired several patents in this department. However, it did not manage to unseat the two market leaders Duracell and Energizer. In 1990, the company shifted its focus to Heavy Duty and Industrial products. The company launched a campaign to use renewable batteries in 1995 with Michael Jordan as the brand ambassador. The project did not do as well as expected. Despite this fact, Rayovac continued to develop and bring to market different chargers for the rechargeable batteries. The advertisement campaign with Michael Jordan created some brand equity for Rayovac. The company secured 20% of the rechargeable batteries market. Company Mission, Goals and Objectives Like all profit-making organizations, Rayovac is interested in maximizing its return on investment. The company intends to maximize shareholder value through growth. This growth should be achieved with minimal sacrifice of profits from existing products. This goal creates a conflict of interest. Growth in the rechargeable batteries segment will ultimately lead to decline in the alkaline battery segment. Rayovac is committed to environmental sustainability. The company aims at creating safe environments and minimizing damage by recycling and reusing. Whichever strategy Rayovac chooses to pursue, it should conform to these policies, goals and objectives. Finally, Rayovac aims at being the market leader in the industry. If the rechargeable batteries strategy can aid in achieving this goal, then the company will pursue it. Customers Battery consumers can be divided into two groups based on size of purchase. There are individual (family) consumers and manufacturing customers. Manufacturing customers buy batteries on a large scale to include in their products. Individual consumers can be divided into heavy technology users and medium technology users.Advertising We will write a custom essay sample on Rayovac Case Study specifically for you for only $16.05 $11/page Learn More Heavy technology users use batteries for high-drain gadgets, replace batteries frequently and purchase impulsively. Medium technology users purchase based on price replace their batteries less often and use low- drain gadgets. The medium users compose the bulk of battery markets. However, the heavy users would be the ideal consumers of rechargeable batteries. The market for batteries is growing due to the increased popularity of high drain devices such as laptops and cameras. Traditional alkaline batteries account for 70% of the market in Canada. However, experts have pointed out that this product has reached its peak. Little innovation can be done on these batteries. Rechargeable batteries account for only 10% of the market. Though they are more conven ient, customers are yet to adapt to these batteries. The cost of the chargers put many consumers off. Rayovac’s major competitors are focused on the alkaline battery. This presents an opportunity for Rayovac to focus on the rechargeable battery, which has potential for market growth. Major Competitors Duracell Proctor Gamble (PG) currently own the Duracell brand. PG has extensive distribution networks for its consumer products all over the world. This is a source of competitive advantage for Duracell. The company offers batteries with long life and charges a premium price in return. Duracell is currently the market leader in consumer batteries in the US due to this strategy. The company also serves 39% of the batteries market worldwide. Duracell competes on innovation of the alkaline battery. The market recognizes this fact since Duracell batteries are very durable. This association of Duracell’s batteries with long-life is a source of brand equity. The company has al so executed a growth by acquisition strategy. It acquired both Geep of India and Rocket of South Korea. These two companies were market leaders in their regions. Duracell has managed to expand its worldwide reach through them. Energizer Eveready Battery Company was formed in 1896. It later renamed to Energizer. It is currently the world’s largest battery company followed closely by Duracell. The company advertises using the â€Å"Energizer Bunny†. The brand recognition has grown greatly due to this campaign. Its competitors have tried to copy this strategy without much success. Rayovac entered into an agreement with Disneyland to use their cartoon characters in its adverts. This campaign has not borne much fruit. Ralston Purina Co. had acquired energizer. Later, Energizer left the portfolio to become Energizer Holdings. Soon after, the company acquired a razor and sword blade company. This created a portfolio similar to Duracell and intensified their competition. Energ izer’s competitive advantage is based on strong brand equity and excellent distribution channels in the batteries and flashlights market.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Industry Analysis Porter’s 5 Forces Analysis Threat of New Entrants The threat of new entrants in the batteries industry is quite low. The current industry players already own all the patents related to manufacture. Thus, a new entrant would need to obtain permission to use their specialist knowledge. The capital requirements to start a battery company are relatively high. This locks out many potential competitors. The only new entrants who pose a threat are the manufacturing customers who may decide to practise backward integration. However, this is highly unlikely since making batteries is not one of their core competencies. The current industry players control most distribution channels. Their brand names have been established for decades now. Most customers are already loyal to one or two brands. It would be difficult for them to switch to a new supplier. These marketing issues make the threat of new entrants a weak force in this industry. The weakness of this threat is e vident in the inability of large Japanese firms such as Sony to gain market share in the batteries market. Bargaining Power of Buyers Battery consumers are divided into individual purchasers and manufacturers. Manufacturers purchase batteries to include them in their products while individual users buy them for home use in their electronics. Individual buyers have little bargaining power. They are price takers. Majority of battery buyers are individual consumers. Manufacturers have more bargaining power than individuals do. They can negotiate for discounts based on scale. Battery companies have to keep these large consumers happy or lose their large purchases. Since the market is composed mainly of individual buyers, the overall bargaining power of buyers is relatively low. Bargaining Power of Suppliers The bargaining power of suppliers in an industry is low if there are many fragmented suppliers and the switching costs are low. This is the case in the batteries industry. There are many suppliers of the necessary chemicals. Companies can also obtain packaging and marketing materials from many different suppliers. Actually, suppliers compete for the industry’s attention. This leads to price wars and reduces suppliers’ bargaining power. Specialist employees in Research and Design have a high bargaining power. They supply the company with skills that are crucial to survival in an industry driven by innovation. There are also few such specialists. This gives them advantage in negotiating for their salaries. Threat of Substitute Products Solar power and electricity are the major substitute products for batteries. People can use the two to run their electronics instead of batteries. However, batteries still have the advantage of portability. They are also more reliable. For instance, it would be almost impossible to use solar power during winter. Electricity on the other hand is liable to power cuts. Solar power is clean energy. This is its major attra ction. The available substitutes are cheaper and more inconvenient than batteries. The initial outlay required to acquire solar panels is quite high. Electricity is expensive. Therefore, this force is weak in this industry. Competitive Rivalry Within the Industry There is stiff competition among the top three industry players Duracell, Energizer and Rayovac. This is evident in the guerrilla tactics employed in their advertisement campaigns. There are also price wars with Rayovac pricing its products slightly lower than the others do. The fact that Duracell and Energizer have similar product portfolios serves to intensify their rivalry further. This rivalry should be kept in check to avoid reducing the industry’s profit potential. SWOT analysis for Rayovac Corporation A SWOT analysis helps to establish a company’s strategic position. Both internal and external factors critical to Rayovac’s success will be examined. The results will guide the next step of decision -making. Strengths Rayovac already launched an advertisement campaign with Michael Jordan. This campaign increased their brand equity. If the company were to launch another campaign, the product would not be new to consumers; rather, they would be reminded to use it. Currently, Rayovac is the market leader in rechargeable batteries in Europe. It also controls 5% of the small American market. This position can enable Rayovac to drive the trends in this segment. The company is also under a strong leadership team. Mr. Falconi has 27 years of experience in the batteries industry. He has also previously worked for competitor, Duracell. Weaknesses Rayovac’s major weakness is lack of the core competencies in the manufacture of rechargeable batteries. In order to grow its market share, Rayovac would have to rely on Japanese suppliers. This could develop into a threat later. Rayovac is currently lagging behind industry leaders in terms of sales of alkaline batteries. This means that i t has little influence over this market. Opportunities Duracell and Energizer are both focused on the alkaline battery market. Rayovac could take advantage of this to grow its market share in the rechargeable battery segment. Technological developments have led to a growing demand in high-drain gadgets. Majority of rechargeable battery users purchase them for use in these high-drain gadgets. This trend could lead to further growth in the rechargeable battery market. The world is becoming environmentally conscious. This trend has caught up in Europe, where rechargeable batteries are gaining popularity. With all the green campaigns, the rest of the world is likely to follow suit. If this happens, Rayovac can position its batteries as environmental-friendly in order to gain sales. Threats The largest threat facing Rayovac is its competitor’s likely retaliation. There is no way to predict how far Duracell and Energizer are willing to go to protect their market share. Alkaline bat teries are more profitable than rechargeable batteries. This is why the market leaders are unwilling to shift to rechargeable batteries. There is also the risk that the market may fail to embrace the product. Rayovac may make heavy investments and fail to recoup. This threat can be mitigated by carrying out extensive market research before commencement. The company can also carry out consumer education. Financial analysis This aim of a financial analysis is to establish whether a project is economically feasible. There are two options open to Rayovac. It could enter the market and employ a volume strategy or a niche strategy. Each strategy’s projections are shown in the tables. The Rayovac case study contains some information that will be used to conduct an analysis. We are provided with the projected market sales growth of the rechargeable batteries segment in Canada. We are also given the potential market share growth of Rayovac in this country. By multiplying the two, we c an obtain the projected sales Rayovac expects to make in subsequent years. The above computations show that sales will grow much faster if the Volume strategy is adopted. However, before a decision is made, we have to consider other factors such as contribution margin. The Canadian market is said to represent approximately 20% of the North American market. Using this assumption, we project the North American sales to be as follows: The gap between sales from the volume strategy and those from the niche strategy continues to widen as the years progress. If this were the sole decision criteria, Rayovac would choose the volume strategy. The impact of these strategies on total sales can be shown by adding the Canadian and North American projected sales. This table is useful in showing how Rayovac’s major markets would fair if the company adopted the proposed strategies. Contribution Contribution is the difference between sales and variable costs. Variable costs are considered bec ause they are the incremental cost of making one extra battery. In manufacturing industries, many fixed costs are also likely to be sunk costs and therefore not useful for decision-making. If Rayovac adopts a volume strategy, it will have to sell the batteries at a lower price in order to attract the mass markets. The contribution margin for such a strategy is 45%. The projected contribution is obtained by multiplying the margin by the projected Rayovac sales in that year. The niche strategy yields a higher contribution margin of 60%. This strategy would entail selling in specialist stores. The company can then charge a higher price than in the volume strategy. During the first two years, the Niche strategy seems slightly better than the volume strategy. However, in the end, the volume strategy will yield more in terms of contribution. If Rayovac adopts a volume strategy, it will have to sell the batteries at a lower price in order to attract the mass markets. The contribution margi n for such a strategy is 45%. The projected contribution is obtained by multiplying the margin by the projected Rayovac sales in that year. The niche strategy yields a higher contribution margin of 60%. This strategy would entail selling in specialist stores. The company can then charge a premium price. During the first two years, the Niche strategy seems slightly better than the volume strategy. However, in the end, the volume strategy will yield more in terms of contribution. One of the major expenditures in expanding the rechargeable batteries line is advertising costs. The cost depends on whether Rayovac adopts a niche or volume strategy. The costs associated with the niche strategy vary between 7% and 5% of the contribution. The costs associated with the volume strategy vary between 10% and 6%. The advertising cost was obtained by multiplying the projected proportion of contribution by the contribution obtained earlier. The volume strategy has a higher advertising cost than the niche strategy in all the years. The company should ensure it could meet the required advertisement costs before settling on a strategy. The net contribution represents the money that will be available to cover fixed costs and profit. This figure is very crucial in decision-making. In this case, it is obtained by subtracting the previously computed advertising costs from the projected contribution. The niche strategy is only attractive for the first two years. Thereafter, the volume strategy produces much higher returns. The company should therefore opt for the volume strategy. If the company chooses the niche strategy over the volume strategy, the difference in net contribution is shown below. If the company makes the wrong strategic choice, it stands to lose over $15 million in the years subsequent to 2006. Other Financial Considerations Exhibit 7 shows that Duracell made a profit of $ 325 million in North America during the 2004 financial year. According to these projections, Ra yovac is likely to make sales of $120 million in North America by 2010. Rayovac needs to triple these sales if it hopes to beat Duracell. The reality is this might take decades. Rechargeable batteries have a much lower profit margin than alkaline batteries. Actually, for each $2 made on the sale of a rechargeable battery, $ 250 is lost in alkaline battery sales. The company needs to come up with innovative ways to close this gap. If this does not happen, much revenue will be lost. Rayovac will end up making losses. This is quite undesirable. The final consideration is whether the company has the resources available to execute the plan. If there is no spare cash, Rayovac needs to consider credit. Strategic Marketing Options After examining Rayovac’s operating environment and the financial implications of the strategies, it is important to explore the options available to the company. In this paper, we choose to do so within the framework of the Product-Market growth matrix. Th is matrix shows the options Rayovac can pursue to grow its overall market share in the batteries segment. Market Penetration This strategy involves Rayovac defending its current market position. It can also attempt to grow its market share in the segments it currently operates. Rayovac’s present product portfolio contains nine major products. The most famous product in the portfolio is alkaline batteries. These batteries are useful for many home devices such as flashlights, remotes and toy cars. Most lone consumers purchase these products. They come in different sizes for different gadgets. The sizes are AAA, AA, C, D and 9V. The second largest product is the rechargeable batteries line. These batteries come in similar sizes to their alkaline counterparts. However, they can be re-charged and re used several times. They come with special chargers for this purpose. They are used in high-drain gadgets such as digital cameras and music players. This product line is environmental friendly Rayovac has a flashlights range too. There are outdoor and general-purpose flashlights. The company also makes flashlights for industrial use. This range also contains light bulbs. The fourth product line is the hearing aid range. Currently, Rayovac is the market leader in this market. The company enjoys competitive advantage created by the first mover advantage they possess. Rayovac holds several patents for manufacturing hearing aids. The company was the first to develop a wearable hearing aid battery. It continues to dominate 60% of the world market. Rayovac has a flashlights range too. There are outdoor and general-purpose flashlights. The company also makes flashlights for industrial use. This range also contains light bulbs. The fourth product line is the hearing aid range. Currently, Rayovac is the market leader in this market. The company enjoys competitive advantage created by the first mover advantage they possess. Rayovac holds several patents for manufacturing h earing aids. The company was the first to develop a wearable hearing aid battery. It continues to dominate 60% of the world market. The heavy-duty batteries are created specifically for devices such as clocks and smoke detectors. These devices discharge batteries slowly and are used rarely. The special feature in these batteries is long life. Rayovac also deals in lithium, specialty and lantern batteries. The final category is industrial batteries. The major purchaser of these products is manufacturing companies. Rayovac’s major market is Canada and South America. Unlike Duracell and Energizer, the company’s global distribution network is poor. A market penetration strategy involves defending the market share currently held. Rayovac can accomplish this through aggressive marketing campaigns. The company can acquire other smaller battery manufacturers in a bid to increase its market share. This strategy is likely to provoke guerrilla tactics from Duracell and Energizer. Product Development This strategy entails introduction of new products into the markets Rayovac currently operates. The rechargeable batteries strategy falls under this category. Rechargeable batteries are relatively new to the market. Consumers are yet to adopt their use. This is the perfect opportunity for product development. The European market is likely to adopt the product faster than the American and Canadian markets. This is due to their concerns for the environment and preference for long-lasting products. Rayovac could focus on controlling this market before competitors respond. Afterwards, the strategy can be implemented in America and Canada. This strategy is likely to succeed because Rayovac already has brand equity in this segment. The risk that competitors will respond aggressively is lower than in the market penetration strategy. This is because this strategy does not directly attack their market share. Rayovac also needs to consider the possibility of its suppliers integrating forward. Suppliers have a high bargaining power since they possess core competencies in manufacturing rechargeable batteries. The risk that competitors will respond aggressively is lower than in the market penetration strategy. This is because this strategy does not directly attack their market share. Rayovac also needs to consider the possibility of its suppliers integrating forward. Suppliers have a high bargaining power since they possess core competencies in manufacturing rechargeable batteries. Market Development A market development strategy would require Rayovac to take its existing products to new markets. This strategy is ideal if Rayovac reckons it will be unable to unseat the current market leaders. It is necessary when customers already have strong brand loyalty and are unwilling to switch suppliers. There is a growing demand for electronics in Africa and Asia. The company should consider exporting to these continents. The advantage associated with new marke ts is that consumers have no brand loyalty. Thus, with a creative advertising campaign, Rayovac can create brand equity for its products. If adopted, this strategy will require extensive market research and massive expenditure on advertisement and Public relations exercises. However, the results are long lasting. Rayovac needs an extensive distribution network if this strategy is to succeed. This is where strategic alliances become necessary. The company can negotiate with a large consumer company such as Unilever to carry their products in the latter’s distribution channels for a fee. Energizer and Duracell already have global networks. If Rayovac hopes to compete in the same league, it must acquire equal or better channels. Diversification Diversification entails creating and innovating new products. These products are then sold in new markets. This is the most drastic strategy. However, it presents the most opportunity for growth. Diversification is also the most expensive growth strategy to implement. It requires investment in both research and development and advertisement. The company needs to carry out market research in the proposed new market to establish customer needs. Thereafter, it should develop products to meet these needs. The marketing function should then ensure that the market is aware of the product’s existence. Solar panels are a viable diversification option. There is a high demand for clean energy in the West. On the other hand, in Africa and Asia, there is a high demand for a cheaper source of energy than electricity. Solar energy is a solution to both. Rayovac can use the knowledge it has acquired so far in developing batteries that can power vehicles. With the depletion of crude oil, the world is ready for innovative solutions to the problem of gasoline. Decision Criteria Profit Potential The strategy chosen should maximize Ryovac’s profit or increase it substantially. A business needs profit to sustain its operat ions, meet its financial obligations and still pay a dividend to shareholders. Any business that is constantly making losses is not sustainable. Profit potential of a strategy will be benchmarked against the market leaders’ current profit. If a strategy fails to demonstrate reasonable profit potential, it will not be adopted. Cost Rayovac must consider the cost of implementing the strategies. The company does not have unlimited resources. Therefore, the resources must be used efficiently and effectively. Drastic changes are indicators of a costly strategy. The strategy chosen should be one, which Rayovac can afford to implement. Environmental Impact Rayovac cannot ignore the environmental impact of its operations. The company must be conscious of the current global trend towards sustainable living. Therefore, though alkaline batteries are profitable, they may lose that edge in future when consumers’ decision criterion is based on environmental impact. Risk How much ris k does a strategy pose? Risk refers to the probability that things may not work out as planned. A risky investment is one that involves much uncertainty. There are no projections to support the claims. It is one based on pure speculation. Such investments should be avoided. The investment chosen should expose Rayovac to moderate risk. Strategic Marketing Choice I would recommend that Rayovac pursue two growth strategies. The first is market penetration and the second market development. Market penetration will enable the company to maintain its current share of the market. Market development on the other hand will facilitate revenue growth from these new markets. Market penetration is a low cost and low risk strategy. This is because Rayovac will be dealing with a familiar market. Market development is also low cost because the products to be sold are already there. Since they have succeeded in Rayovac’s current market, it is probable that with proper marketing, they will suc ceed in the new markets. Rayovac should not adopt the rechargeable batteries strategy. This strategy has a low profit potential yet it may have high initial costs. There is also no certainty that there will be market growth in this segment. Even if there is growth, Duracell and Energizer have such strong brand recognition that consumers are likely to purchase their rechargeable batteries over Rayovac’s batteries. This strategy is too risky. If it fails, Rayovac will be left to lag behind in both the alkaline and rechargeable batteries segments. Strategic Implementation and Control The market penetration strategy requires a fresh advertisement campaign that will attract new users. The campaign should focus on young men who buy batteries often for their electronics. There should also be a second campaign focused on mothers who control house budgets and control home purchases. This campaign should encourage buyers to switch to Rayovac because it provides value at low price. It s hould emphasize durability to challenge Duracell’s position. The products should also be priced slightly lower than competitors’ products. This will capture the attention of shoppers who buy based on price. Rayovac should position its batteries as the environmental friendly option. Market development requires careful study of the new market before any move is made. The company should determine which products would perform best and how to position them. If the market requires cheap products, then Rayovac should compete on price. However if the market requires high performance products, Rayovac should compete on efficiency. These strategies should be monitored on an annual basis. If there are no sales increases, then the company should take corrective measures. This may involve slight alteration of the current strategy or complete abandonment all together.

Issue 11 taking sides clashing views on political issues seventeenth Essay

Issue 11 taking sides clashing views on political issues seventeenth edition - Essay Example Nobody can know what will happen to them tomorrow and when they will exactly fall ill. The indispensability of health insurance is best understood at the time someone is critically ill and he/she cannot pay the hospital bill immediately. If he/she is assured of health insurance the person need not worry about how he/she will pay for the medical treatment. By this way it is within their reach to safeguard their health and future Apart from providing financial security the health insurance promotes good health. Reduced cost of health services offered by the insurance plans induces people to go for health checkups and to take preventive medical care thereby avoiding any impending major illness. Health insurance takes care of old people as well. Most of the working families have no time to look after elderly people and they are left in old age homes. The old people often feel helpless when they are ill and have no money to pay for the hospital fees. If health insurance is available to them it will come to their rescue at the time of crisis Many people believe that in addition to providing financial stability, health insurance promotes good health. By reducing the personal cost of medical services, insurance induces people to go for regular checkups there by avoiding any impending threat to their health. On comparing the health care system in US with the other industrialized nations in the world Ezra Klein says that Canada, France Great Britain and Germany provide better health care for their people at lesser cost than US Canada is a single payer, rather than a socialized system. That means the government is the primary purchaser of services, but providers themselves are private (Ezra Klein. The Health of Nations, the American Prospect, May 2007 (1820). In the single payer system the cost of medicines as well as administrative costs is less In the French system, which is appreciated for its

Euthanasia Essay Example | Topics and Well Written Essays - 500 words

Euthanasia - Essay Example In the two scenarios, the doctors argue that the actions were in the best interests of the patient. Legalizing involuntary euthanasia is likely to be opposed by law enforcers for many reasons. One of the reasons as explained by Lafollette is that people may shy away from hospitals and trained medical experts for fear of being killed against their wishes. Another reason for denial of legalizing it is the fear that unconscious persons will be terrified to be taken into hospitals and be killed against their will. These reasons have made it hard for euthanasia to be legalized because of the possibility that people may avoid hospitals whenever they get life threatening ailments. Based on a poll conducted on April 8th to 11th in 2005 by the Polling Company, 15% of interviewed persons agreed that doctors should be allowed to withhold life support machine, 77% said patients should be able to get the life support machine while the remaining 8% are undecided. With these results, it only shows how difficult it will be when it comes to legalizing euthanasia because it is clear that many people are opposed to its legalization. Many people believe that life is sacred and the strong argument that is favored, in my opinion, is that life is inviolable and it is wrong to take it away from someone without his or her consent. The suffering of one person does not give the other the right to help him or her die. I believe nature should be left to take its course. The responses are shown in the table below.

Analysing advertisement form a sociological and marketing perspective Essay

Analysing advertisement form a sociological and marketing perspective - Essay Example They communicate class, personality and taste. The Guinness advertisement shows ostensive communication because of it intends the audience to make personal conclusions. This means that the advertisement achieved in the development of ostensive stimuli. The aim of ostensive communication is for the communicator to inform the audience about the informative intentions, in addition to the communicative intention (Scott-Philip, 2014). The bubbles caused by the water wave in the Guinness advertisement mimics the bubbles formed when the beer is poured in a glass. Mimicking the bubbles produces contextual assumptions, which leads an audience to make conclusions. In the case of the Carlsberg advertisement, the product is presented in comparison to a banana. The advertisement intends the audience to make a conclusion on whether the beer is the best in the world. This is ostensive because of the intention for the audience to make conclusions based on the product. The advertisement achieved the informative intention because it had an intention of informing the audience about something. Ostensive communication is overt because it involves extra layers of communication intentions, which inform an audience about informative intentions. This differs from the covert way of conveying information, which is not manifest. This form of communication requires an individual to draw inferences. Inferences in covert communication are less controllable. This means that the reader is exposed to manipulation (Anisoara, 2008, p. 1). The Guinness advertisement employs covert communication. The consumer is manipulated to think that the beer is unique to other beers. The success of the advertisement is dependent on the audience’s ability to recognize the intentions of the advertiser. Covert communication is based on the tendency of the advertiser to maximize relevance. This increases the possibility to manipulate or predict

Advertising consumption

Advertising consumption Introduction: With the rapid development of technology, the way people advertise and consume has changed gradually. In the other words, technology is increasing the capacity and practices of consumption and providing more platforms for advertising. Some people argue that it might lead to weak social organisation and solidarity, however, the influence of technology on peoples daily life is inevitable. Take online shopping for example, it is magnificently affecting the traditional consumption habits. More and more consumers are getting used to purchasing online instead of high street shopping. This essay is going to observe how technology has expanded the scope of advertising and the spaces of consumption practices in terms of online shopping. Besides, critical evaluation will be carried out to verify the accuracy and effectiveness of the observation. Analysis: Holt D. (1995) pointed out that the act of consuming is a varied and effortful accomplishment underdetermined by the characteristics of the object. Any products can be typically consumed in a range of different ways by different consumers. Therefore, it is essential to analyse how online shopping is influencing the consumption practices of consumers. Consumption Practices: First of all, online shopping brings us a convenient, fast and time-saving consuming atmosphere, and this is considered to be the major concern of middle class who work eight hours in average, and they dont have much time to spend on shopping. Hence, they treat time like gold, and wish to buy everything they want as short as a few minutes. In traditional shopping pattern, consumers need to spend a large number of energy and time on selecting and comparing various goods in different high street stores. The information about the products often vary due to the misinterpretation of salesmen. Besides, there are always restricts of time and place. Take Newcastle city centre for example, most shops on Northumberland Street close before six oclock. People who work until six will not be able to do any shopping during the weekdays, and the people who live in suburbs where there is no shopping centre nearby will have to waste an hour or more on the way to city centre and back. Online shopping perfectly solves the problem. Shopping can be easily completed within a couple of clicks in anytime and anywhere as long as the customers have internet access. Itunes is a successful online software and platform that provides consumers a convenient way to buy their favourite music. Sometimes, people dont wan to buy the whole album. Instead, theyd like to listen to some specific tracks by different artists. Itune totally satisfy these consumers by offering download of every single track of various artists with a little amount of expenses, and it is really time-saving just a couple of clicks, then the track will be downloaded automatically and ready in a flash of time( depends on the speed of Internet service providers). Secondly, the advantage of online shopping on products price is obvious to obtain, and price is always the most important factor for consumers to consider. Online sales compared to traditional stores, it doesnt require any physical store. Besides, online sales are able to contact directly with upstream suppliers and ask them to send the products to customers when necessary. Hence, no self-storage facilities will be used to store goods so that the cost of logistics and storages can be minimised. In the other words, the total cost of online sales is much lower than the average cost of physical store sales. In addition, online bidding is getting more and more popular as consumers can get the products in an unbelievably low price from time to time. A typical example of online bidding is ebay. Therefore, the retail price online is relatively lower than traditional physical stores, which will be expected to attract more customers. Special promotion or sale will be another reason to shop online. For instance, there is 20% student discount occasionally throughout catalogues on the official website of Topshop/Topman when the customers make the purchase online, meanwhile there is only 10% discount in store for students, and this also reflects the advantage of online shopping on price. After all, no people are willing to pay more for something that is exactly the same. In addition, online shopping provides consumers more comfortable and pleasant shopping atmosphere. During the process of shopping, some consumers require the feelings of pleasure rather than the products themselves, and many of them have experienced various attitudes from different salesmen in physical stores. Those salesmen usually approach customers with smile when they step in the stores and recommend a number of products to the customers when browsing the shop, However, the smile on their faces will fade away with time as the customers dont show any interest on the products they recommend. Most consumers will not be pleased by the way the salesmen persuade them to make the purchase, instead, they want to shop in a Comfortable and pleasant mood. In contrast, those who have shopped online will find consumption via online shopping is a lot easier. They are always free to click on the products they are interested and able to compare different products as often as they want. Besides, they can make the purchase, save the products for later or leave the products without the interference from salesmen by simply clicking on the web pages. Take ASOS for example, customers can quickly find the clothes they want by narrowing down the search results. Besides, these clothes can be displayed in 360 degree, and can be even viewed by real models catwalk what can hardly be seen in physical stores. Furthermore, online shopping brings a customised products consuming platform for the customers who have special requirements. More and more products need to meet the consumers imagination to meet the needs of individual consumers with the development of society. The choices by consumers may no longer be practicalness of the products, but more needs to reflect the values of their own. How to make the products innovative and stimulate curiosity of consumer has become a crucial problem the product developer must consider. Many products sold in online stores can not be found in any physical shopping malls or stores. These unique products usually emphasis on trendy and interesting . They are customised to meet the requirements of every single customers. In online stores, costumers can find a range of special products which are beyond our imagination, from nails to laptops, from furnitures to clothes, every product involved in our daily life can be customised meet peoples needs. For instance, customers will be able to customise their laptop, mobile phone and even gaming consoles by altering their colours on a website called Colourware. There is a wide range of colours to choose and the front, trim or back of your digital devices can even be altered in different colours. Moreover, The prices of these luxury products in the traditional physical stores are relatively more expensive than online boutiques. Online shopping brings the opportunities to get famous brand products with a reasonable price for those label lovers who can not afford the price. As mentioned before, price is the most important factor that consumers should consider. For these people who need to purchase luxury products to show their status and prestige, they think certain products with famous brand will improve the quality of life, and reflects the social status at the same time. There is also another way to satisfy customers vanity, if they can afford these luxury products neither online nor in store : rent them. They dont need spend a lot on these famous labels as better solution is going to save them a great amount of money. In a website called Rent Luxury Bags ,customers can find most luxury bags theyve been dreaming of, and they can rent these bags in a reasonable price. Additionally, these bags can be rent from four week up to a year. Last but not least, all customers are able to put their personal belongings online and sell or trade them as second hand products. In the other word, everything can be commodity as long as the demand of these products exists. Take E-bay for example, millions of second hand products are updated everyday on this online trading platform. Sometimes, it is the only way to get the products when the brand new one is no longer in stock. Advertising: As more and more consumers are getting used to online shopping, advertising is also transforming from offline to online. A great number of online shopping websites are cooperating with social network websites,search engines and email service providers such as Facebook, Twitter, Google, Bing, Hotmail etc in order to maximise the online exposure. When searching a keyword on search engine, all the hyperlinks of relevant products will be listed on the first page of search results, and all the relevant websites who have paid advertising fees to the search engine will be popped up on the advertisement column. Similarly, a range of products with hyperlinks will be recommended on your profile page of Facebook or Twitter according to users search history. To put it in different words, advertisement of online shopping websites can be seen everywhere once you get online. The individual owners of small websites are mainly making money through the website advertising alliance. the form of web advertising alliance was invented by Amazon in 1996. The advertising mode of Amazon advertising alliance is CPS (cost per sell), which means the amount of advertising income will depend on the actual sale figures on the online shopping website. With the moderate acceptance and recognition of CPS advertising mode by consumers , online shopping advertising has gradually become the major advertising method, and the revenue of online shopping advertising is increasing in a magnificent speed . More and more sites have been dug to a online shopping advertising market in order to get a share of this new market. There have been a range of online shopping advertising-based mode to promote different sites. Since online shopping has a large number of users, these owners of small websites also gained sustained, reliable and stable income. Cash back websites are becoming popular among online shopping consumers. Once the users make successful purchases through the links provided by the cash back websites, the online shopping websites offer these cash back websites all or part of the sales commission in the form of cash or points to users. The main advantages of cash back websites in one word is cheaper, as they save more money for the consumers, and the maximum savings may be up to 30%. This is a better way for those consumers who make the purchases online regularly. More importantly, these cash back websites are promoting more than 3000 retailers toward consumers at the same time. The most successful example in UK is Quidco. It is obvious to notice the online retailers on the frontpage of Quidco, such as play.com ebay, orange and so on. As consumers browse Quidco to find the cash back deal for their favourite products, the products on other online retailers have also been browsed. In addition, price comparison websites are another essential way to promote online retailers. A number of relevant products will be picked from different online retailers and listed from lowest price to highest price for the consumers to choose once the keyword is typed in. Price Grabber can be taken as the representative of these websites, and any products from appliances to wines can be search and compared in order to find the cheapest products for customers. Simultaneously, the online retailers who sell cheaper products will be exposed to more customers. It is also a practical online shopping advertising mode that offers users an alternative shopping experience. Furthermore, professional online shopping navigation sites are born to promote various online retailers or physical shops and focus on a certain area such as books, restaurants or travels. These websites publish free of coupons, offers, discounts , promotions, free shipping, and other shopping information about some specific websites or shops regularly. They are capable of gathering a large number of online retailers and physical stores and reorganize them in different categories. The updated information about these retailers can be spreaded to potential customers. These potential customers can reach the product or service pages they are interested in by simply clicking the links the navigation sites provide, and it saves a lot of time for the consumers. These professional navigation sites are practical online shopping advertising mode, and they provide a simple, easy, clear way to shop online. For instance, My Voucher Codes provide a wide range of promotional codes, e-vouchers or discount codes , which will offer consumers a discount or money off the listed retail price of many goods, at a variety of different online UK retailers. Moreover, online retailers can be exposed via products review sites. This type of sites mainly focus on film, television, books or restaurants, and guide users to make a purchase through the comment on a particular commodity by other consumers. The interaction between customers on these sites are relatively strong, and it will provoke potential customers to buy the products online shopping customers via the feedbacks from other users in order to achieve the promotion. Students will be expected to be the largest group of potential users of this kind of site. Evaluation: April 2009, the European Commission in Brussels hosted the first summit of European consumers, the them of the meeting is the opportunities and challenges in digital age. A copy of Euros statistics on online shopping was released during the meeting. These data were from family, personal use of information and communication technology survey in twenty seven European countries. According to the statistics on Euro Online Shopping Industry Report(2009), about one-third of customers in European countries have the experience of making the purchase online in 2008, the most popular consumptions online are tourism and clothing . In 2008, the individual consumers between the ages of 16-74, about 32% of the purchase or order through the network are personal goods or services. In recent years, the proportion of individuals online shopping steady growth (in 2004 was 20% in 2006 to 26%, 30% in 2007.) Basically speaking, all EU member showed a growth in online shopping. The majority of the 27 European countries, the most frequent consumer groups in online shopping is 25-34 years (representing the number of age 47%), while in Malta, Slovenia, Slovakia and Bulgaria, age group of online shopping is 16-24 years old. In the 16-24 years old and 35-44 year-olds, online shopping is increasing moderately, the percentage is as high as 41% and 40%. In the 45-54 year-old ,55-64-year-old 65-74 years old, the online shopping rate gradually decreased, respectively, 31%, 20% and 9%. In 2008, the most products and services consumed online are travel and holiday products (14% of individual consumers have purchased or ordered such products in the past 12 months), followed by clothing and sporting goods (13%) Books and magazines (12%), household items or event tickets (both 11%), film and music products (9%), electronic products (8%). In Denmark, the United Kingdom, the Netherlands, Germany, Sweden and Finland, more than half of consumers conducted online shopping. 16-74 year-olds, over 59% of the Danish people have the experience of online shopping, meanwhile in UK is 57%, 56% in the Netherlands, Germany and were 53% in Sweden , 51% in Finland. Among European Union countries, travel clothing and sporting goods occupy the highest proportion in Finland, these two were 31% and 27%, the highest proportion in purchasing of books and magazines is in Luxembourg (29%), purchase rate of home supplies and the highest proportion of electronic products in Germany were 26% and 18%, the highest percentage of purchase event tickets is in Denmark (28%), purchase products, movies and the United Kingdom occupies the highest proportion of music purchase (24%). Based on the online shopping statistics in the UK for November 2009 and February 2010 quarter (Harris G, 2010), the top ten e-commerce sites for that quarter are: Amazon.co.uk, Argos, Play.com, Apple Computer, Amazon.com, Tesco, Marks Spencer, John Lewis, Next and Easyjet. Among these sites above, most of them have been massively exposed via a range of online shopping advertising. The more these online retailers promote, the more customers will be. Besides, the comments about their products on product review sites are mainly positive, and this will have the influence on potential customers decision making. For those companies who have physical stores like Tesco, Marks Spencer or John Lewis, online shops have increased their share in online shopping industry, and customers now can enjoy the products from them anywhere and anytime. Although these companies have been existing for years, a number of customers would still like to purchase their products in an alternative and convenient way. According to the analysis by Redfern A. (2007), the UK online advertising industry has spent over  £2,015.8 billion pounds for the full year of 2006, occupied approximately 11.4% share of the UK advertising industry. This indicates the growth of online shopping advertising is affecting advertising industry and motivate more companies to establish online shops and promote their products in an alternative way. Besides,  £30.2 billion pounds have been spent online during 2006, and 19.7 million people are used to shop online in the UK, spending shopping basket of  £652 each in the past couple of months in average. It is assumed that by the end of 2011, 32 million domestic consumers will start their first shopping online, and the value of commodities they purchase online will be around 52 billion pounds in 2011. Hence, the amount customers spend online will be expected to double in five years, and more people will be persuaded to make the purchase online by the regular consumers who have been doing online shopping for a long time. Conclusion: In conclusion, technology did expanded the scope of advertising and the spaces of consumption practices. It is changing peoples life in every possible way, and is challenging traditional advertising and consumption practices. The revolution of shopping from physical stores to online retailers is inevitably taking place, and choices for online shopping advertising is moderately increasing. It is expected that more consumers will start shopping online and dont need to spend great amount of time on searching for the products they are interested in the future. On the contrary, these products will be able to find the consumers via online shopping advertising.