Spiritual Milestone Essay

In “Spiritual Milestone” the writer describes his life as an Asian American and the difficulties that he has faced not only with his identity but with his battle with depression. The more compelling story is his rise above the disease and his tremendous success in the world of academia and in his community. Not realizing that he actually had depression, he worked diligently to overcome the stigma attached to his ethnicity, and at the same time, ended up discovering that he was suffering from “the common cold of mental illness: depression”.

Being a self motivated learner, the author was able to diagnose himself by reading and studying about depression. He sought immediate help from a professional to help deal with the symptoms of the disease, and in the meantime, continued his studies and his struggle to become more than a stereotype. The different therapies the writer endured were cognitive therapy, interpersonal therapy, and behavioral therapy. These three therapies prescribed by his psychologist helped him to recognize and deal with his feelings so that he could have a clear path to success.

While the author does not go into too much detail describing the suffering he endured from his depression, he does mention sleepless nights, anxiety, self medication, and lethargy. He knew these symptoms were a sign of something much deeper and also that they would hinder his future success, so he sought help immediately. The author’s purpose was to inform readers of the symptoms of depression and to encourage those who suffer from it to take action and seek the help necessary to make life as fulfilling as possible.

Information Overload Essay

The advent of technological advancement carries with it enormous amounts of data that need to be processed on a daily basis (Toffler, A. 1991). As bulks of information flow from one source to another, analyzing, interpreting and dissecting this information becomes very taxing (Severin, W. and Tankard J., 2001). This day to day battle of sorting out valuable and invaluable information is termed information overload.

Coined by renowned author, sociologist and futurologist Alvin Toffler, in his book “Future Shock”, information overload suggests that the existence of enormous information is overwhelming for the people.

He noted that the transition of the society from industrial to super –industrial society means an enormous structural change of the society, and inevitably, the people will be greatly affected (Toffler, A., 1984). This is attributable to the fact that with such transition, acceleration of technological advancements happen, and along with it comes social change. Such transition creates a gap, to be filled by tons of new information that people essentially need to process.

To begin with, information coming from print to broadcast media do not even account to half of the data that needs to be processed on a routine basis (Perse, E. and Dunn, D.G., 1995) There also exists the World Wide Web, more commonly, the internet, where countless information is downloaded, sent and received on a millisecond basis.

Part I

A. Information Overload: Personally Identifiable Problems

Managing information is a very crucial task. It requires careful examination of content and cautious segregation of relevant data. According to Berkeley Researchers, the World generates information per year near to two exabytes (two billion gigabytes) or 2,000,000,000,000,000,000 bytes to be precise (Farivar, 2001). More specifically, each person contributes 250 megabytes of new data on a yearly basis.The massive information distribution is very much evident in the amount of files we receive and sort everyday, the frequency of visiting new websites and even the number of email addresses a single person maintains.

Personally, managing, sorting and storing information is not an easy task. For a single research paper alone, PDF files stored in the computer nearly amounts to over a hundred. This of course is attributable to the fact that easier access of information is highly preferred as opposed to manually going to a library and painstakingly researching every piece of literature that is necessary. The idea of knowing that important files is just a click away, brings the much needed assurance that work required can be immediately performed. This however, crowds the fact that not all the files stored are really important. The fact that it seems important becomes reason enough to store them, resulting to enormous amounts of unnecessary information.

Another information overload problem that is commonly encountered is the urge to visit new websites per day. On a daily basis, the average websites visited would be around twenty new websites. This of course excludes the frequently visited websites, doubling the number of websites visited on a daily basis. Fact of the matter is, information viewed on these websites do not necessarily contain relevant data. But the fact that it contains information adds up to things that people process everyday.

TIVO recordings are evidently the new entertainment “necessity” for individuals. With about eighty hours of recording capacity, TIVO can store as much as 40 programs, films, series and whatever appeals to personal liking. Noteworthy of course is the fact that with so much available material on media, it becomes too much too handle in the sense that it crowds the mind into fully recognizing what needs to be prioritized. Brought about by these technological advancements, coping with all the readily available information and grasping them becomes overwhelming.

Moreover, personal email accounts add up to the sea of information drowning us on a daily basis. Having separate email accounts for work, personal, and business use is undeniably a major reason for information overload. Keeping track of 2 personal emails, 2 work-related email addresses and 3 email addresses catering to business, friends, family and even school can be too much to handle. More specifically, remembering passwords definitely makes it burdensome.

These personal problems encountered in relation to information overload, is painstakingly hard to manage, let alone to process, sort out and analyze.

B. Maximizing Available Technology: Tools That Solve the Problem

The first and most basic way to combat information overload is efficient time management (Perse, E. and Dunn, D.G, 1995). Allotting time to perform specific work is essential in determining the amount of information one needs to utilize at a particular moment. Juggling one activity from another consumes a lot of energy and paves way for getting information that are not necessarily needed. This means to that information from print, broadcast media coupled with World Wide Web data cannot be taken in all at once. There is a need to allocate a specific period to synthesize what information is contained in the respective sources. This involves checking out the date, paying attention to the sources, sorting out facts from mere opinions and finally deciphering what information is the most relevant. Indeed, the seemingly traditional way of looking for information needed can be done through search method.

On the technical aspect and more technologically advanced way, using filters such as those available in combating spam, can ease up information overload by preventing unsolicited messages from adding up to the bulk of the already overwhelming amount of information. The ability to process information lies heavily on the way it is evaluated. Specifically, information that can be found on the internet needs high level of caution so as to ensure its reliability. Authorship, date of publication, accuracy and verifiability of details are necessary (Cook, T., 2005).

Other methods such as blogging have been helpful since it creates interest-based communities, making information readily available for those who share the same topic of interest. RSS or Rich Site Syndication also increases the relevance of the information received (cook, T., 2005). Without the recipient’s request, information from blog networks could be sent to member, ensuring that information of interest to the recipient will be disseminated. Since this is evidently effective, many regularly updated websites now use RSS feeds.

By using feed monitoring, the information sent would be relatively relevant to the recipient since these involve subject areas of interest.

Part II

The Perfect Tool to Manage Information Overload

A perfect tool in managing the amount of information received and downloaded would be one which is more “human” in function. This means that the tool would be able to segregate information and retain only those that belong to the topic of interest of the recipient. This of course means more than just sending information because some of the words match that of the subject areas indicated by the would-be recipient. It would be more ideal if information provided is up to date, accurate and relevant.

It is important to note that the technology nowadays is slowly gearing towards achieving this kind of tool.  The recent technology available provides live feeds, real time searching and continuously scanning millions of feeds. The term “semantic web” as used to refer to the dream search engine, means that through intelligent agents, or programs that learn one’s preference, the cyberspace would be a storehouse of documents more human in scale and appeal (Cook, T, 2005)..

Microsoft PowerPoint Essay

The development of add-ins into existing and established computer applications such as Microsoft’s PowerPoint is increasing use and function extending not only the longevity of programs but also software development and networking. The PowerPoint versions beginning with the 2003 edition have allowed for greater among Microsoft’s in-house as well as independent developers to create add-ins for various users that in effect has created UI’s unique for individual users (Wenzel, 2007).

Majority of the add-ins that has been developed have focused on enhancing the visual appeal of PowerPoint such as animation, interactivity and media.

The effort is seen to be motivated by the objective of making PowerPoint not just a basic or generalist presentation (Microsoft Office, 2007). Bridging between Microsoft programs is also evident since the add-ins do not only affect PowerPoint but also other Office programs as well as other non-Office programs such as Producer 2003 or independent programs produced by Macromedia, Java and even open source technology (Harrison, 2001; “Microsoft PowerPoint Add-Ins”, 2002).

Thought there have also been efforts in developing add-ins to extend from the Microsoft platform, there are still significant security issues particularly regarding macros, language and technology copyrights. Overall, current developments in PowerPoint add-ins remain focused on UI development and visual development and functionality.

Accesses to the program’s functions have not differed significantly except for the increased control over performance to afford shifting between desktop and mobile use (Wenzel, 2007). The strategy for the PowerPoint franchise is its ease of use and the remaining dominance of Microsoft operating systems as a platform. However, the add-ins are indication that other operating systems are being recognized and the need to be user-focused in development.

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Ozone layer Essay

In 1785, researchers working with early, arcing electrical discharge devices had noted ozone’s peculiar odor (Christie 195). The word ozone is in fact derived from the Greek ozein, meaning “to smell.” In 1872, scientists determined that ozone was a triatomic form of oxygen, or O3. As a concentrated gas, ozone is pale blue, carries a strong odor, and is highly poisonous.

Spacially, ozone’s three oxygen atoms form an enormous molecular triangle. Because of weak atomic bonding between the distant atoms, ozone is a very unstable molecule that quickly dissociates into common oxygen and a free oxygen atom (O) called atomic oxygen.

The ability to release atomic oxygen makes ozone a powerful oxidizing agent, or giver of oxygen to other molecules. In contrast, common oxygen is two oxygen atoms held together by strong bonds that produce the stable O2 molecule. Common oxygen makes up 20 percent of our atmosphere.

Ozone forms naturally in the lower levels of the atmosphere when the electrical arcs of lightning pass through oxygen molecules.

After it is formed in the atmosphere, ozone survives only about 20 minutes before it dissociates. Most of Earth’s natural ozone, however, is formed in the stratosphere, the upper portion of the atmosphere. There, at an altitude of about 15 miles, photochemical reactions driven by intense solar ultraviolet radiation both create and destroy ozone.

High-energy ultraviolet rays split common oxygen molecules into free oxygen atoms, some of which combine with common oxygen molecules to form ozone. Simultaneously, low-energy ultraviolet radiation splits ozone into common oxygen and free oxygen atoms. Each free oxygen atom may then combine with common oxygen to create more ozone, or it may join with another oxygen atom to form common oxygen. Ozone can also react with nitrogen and hydrogen, and as well with chlorine, trace amounts of which originate naturally in soils, oceans, and volcanic eruptions and migrate into the stratosphere. Given the multitude of factors, especially the solar cycle and variations in stratospheric winds affecting the formation and lifetime of stratospheric ozone, its concentration and extent varies periodically.

The hole in the ozone layer

In 1970, a British research group working in Antarctica discovered an unusual reduction in stratospheric ozone (Christie 38). Over the next decade, studies revealed that ozone was being destroyed by a number of chemicals, primarily trace amounts of man-made chlorofluorocarbons (CFSs) – complex compounds of chlorine, fluorine, and carbon widely used in industry and manufacturing (Christie 29). CFCs are stable molecules that are unreactive in the lower atmosphere. But when these same molecules migrate in small quantities into the stratosphere, the intense ultraviolet radiation there splits them, releasing chlorine atoms that quickly react with ozone to form chlorine monoxide (ClO) and common oxygen. In turn, chlorine monoxide contacts free oxygen atoms, reacting to form common oxygen and a free chlorine atom – which then destroys another ozone molecule. Scientists estimate that in repetitive reactions a single chlorine atom can destroy more than 10,000 ozone molecules before it finally locks up in a less reactive form.

Since the 1950s, nontoxic, nonflammable, and inexpensive CFCs have made ideal aerosol propellants, refrigerants, and solvents. Aerosol cans, which are designed to release their entire contents into the air, accounted for most of the CFCs emitted into the atmosphere. In 1973 alone, aerosol manufacturers filled nearly six billion aerosol cans worldwide. Half of those employed compressed CFCs to propel the active ingredients – everything from hair spray and underarm deodorant to insecticide, paint, polish, and disinfectant – out of the can. By 1975, growing evidence of ozone layer depletion triggered a public-relations battle between aerosol can manufacturers and environmentalists that became known as “the Spray-Can War” (Christie 21).

Concern about the ozone layer spurred unprecedented international environmental cooperation. In 1987 in Montreal, 36 nations met to ratify the Vienna Agreement for the Protection of the Ozone Layer. The so-called Montreal Protocol banned production of the most widely used CFCs by 1995 and currently mandates termination of all production by 2010 (Fishman 45). Today more than 100 nations have additionally agreed to phase out production of methyl bromide, a pesticide that also harms the ozone layer.

Photochemical Mechanism

By the late 1970s it could be shown that CO reacts with OH in the atmosphere much faster than had previously been believed (Christie 79). Furthermore, it is likely that a by-product of this atmospheric photochemical process is the production of ozone in the troposphere. The first reaction proceeds:

CO + OH → CO 2 + H

The H atom then very quickly (within a small fraction of a second) latches onto an oxygen molecule to form a reactive peroxy radical, HO 2. This HO 2 radical is analogous to the RO 2 radicals produced in the urban smog scenario discussed earlier. The key to whether or not ozone is produced in the remote atmosphere centers on what happens to the HO 2 radical. If there is a molecule of nitric oxide (NO) around, then it is likely that the following reaction takes place in the atmosphere:

HO 2 + NO → NO 2 + OH

The nitrogen dioxide will be photolyzed by visible light and ozone will again be made, just as it is in the polluted urban environment:

NO 2 + (visible) photon → NO + O

O + O 2 + M → O 3 + M

The above sequence of reactions that results in ozone formation is a catalytic cycle with respect to the hydroxyl radical and nitric oxide. Both OH and NO are returned to the atmosphere so that more carbon monoxide can be oxidized to carbon dioxide by the hydroxyl radical, and likewise so that nitric oxide can be converted to nitrogen dioxide to make more ozone (Fishman 90).

Ultraviolet light

Any molecule can be broken into smaller fragments if it absorbs energy from sufficiently short wavelength ultraviolet radiation. In the case of CFCs, the ozone layer filters out all of the wavelengths that might break up the molecules. But if they were to travel to 15 km altitude and higher, they would start to rise above some of the ozone. Then some of the ultraviolet light that could break the molecules down into smaller fragments would not be so effectively blocked. The molecules would be broken into very reactive free radicals by any of this light that got through. ultraviolet light with wavelength between 190 and 215 nm can decompose CFC molecules, splitting off atomic chlorine (Christie 78).

Any CFC molecules that found their way into the stratosphere would encounter this light, and be transformed from unreactive materials to very reactive chlorine atoms. Studies of ultraviolet (UV) radiation and its absorption also contributed to early understanding of ozone. The spectrum of sunlight reaching the earth showed a sharp cutoff in the UV region of wavelengths shorter than about 290 nanometers (nm), suggesting that some atmospheric substance might be absorbing radiation with shorter wavelengths (Fishman 7). Hartley measured ozone’ absorption and found that even tiny quantities absorbed strongly in the 200–300 nm region of the UV, with the edge of the strong absorption region corresponding closely to the sharp cutoff in sunlight. Moreover, using an artificial source of UV light showed that surface air readily transmitted wavelengths down to 250 nm, well below the cutoff in incoming sunlight.

Oxygen molecule and atoms

Oxygen molecules have two atoms (O 2), the ozone molecule has three oxygen atoms (O 3). The process that makes ozone on the surface is similar to the one producing it in the stratosphere, with one important difference. At the surface there aren’t enough high-energy photons to break down the oxygen molecule. Still, there are other gases that can be used to create ozone. One of them is nitrogen dioxide (NO 2) (Christie 83). NO 2 has an affinity for the less energetic photons in the visible portion of the electromagnetic spectrum (i.e., sunlight). These low-energy photons break down NO 2 into NO (nitric oxide), plus a free oxygen atom. It is these free oxygen atoms, released from bondage to the nitrogen dioxide molecule, that then team up with oxygen to form ozone.

As this photon approaches the earth, the chances for it to hit a molecule in the earth’s atmosphere become considerably greater as the air density increases closer to the surface. If the photon hits an oxygen molecule, which is comprised of two oxygen atoms, it will photolyze this molecule into its two atoms. The process can be described by the chemical equation:

O 2 + (high energy) photon → O + O

Once the oxygen atoms are “free,” they can recombine with an oxygen molecule to form ozone (O 3). But if they are to do this, a third neutral molecule must show up to absorb the excess energy the oxygen atoms have recently acquired after being “zapped” by the high-energy photon. In most cases this third molecule is nitrogen (N 2), but it can be either another oxygen molecule or an argon (Ar) atom. Chemically, the process is described:

O + O 2 (+M) → O 3 (+M)

where M is either N 2, O 2, or Ar.

So at the very high levels of the atmosphere, where there is relatively little N 2, O 2, or Ar present, there is much more atomic oxygen (O) than ozone (O 3) (Fishman 37). As we get lower in the atmosphere, O 3 becomes more abundant, relative to O. Again, however, we should note that atomic oxygen and ozone always remain trace constituents of the atmosphere, never reaching concentrations above the part per million range.

Importance to Life

Any significant depletion of the earth’s ozone shield over temperate latitudes would be a major disaster for humanity, not to mention the rest of the planet’s inhabitants. Recent studies suggest that for every 1 percent drop in the amount of ozone above a given locality, there will be a 2 to 3 percent increase in the annual number of malignant melanoma skin cancers. Last year about 23,000 Americans were diagnosed as having a malignant melanoma, and 6,000 died from it.

The ozone created up in the stratosphere is called the ozone shield, which is chiefly responsible for permitting life as we know it to exist here on the surface of the earth. Without the ozone interacting with the high-energy photons of the ultraviolet portion of the sun’s spectrum, those same photons would reach the earth, bombarding us with more of the harmful ultraviolet rays of the sun’s spectrum. If these harmful ultraviolet rays were allowed to penetrate to the surface, many of the life forms on the planet would not survive since the delicate balance that supports such life would be destroyed. Ozone’s importance to life stems from its ability to block the sun’s deadly ultraviolet-B light. Each 1 percent reduction in the amount of atmospheric ozone allows 2 percent more UV-B radiation to reach the earth’s surface (Christie 200).

Distribution of Ozone in the Stratosphere

With the measurement of the reaction rates in the laboratory, the picture of stratospheric chemistry became much more complicated than had been previously explained by Chapman’s pure oxygen chemistry (Parson 70). Furthermore, the inclusion of these radicals in a set of calculations that were being used to describe the distribution of ozone in the stratosphere yielded a computed distribution that was more consistent with the growing data base of ozone measurements. However, it is easy to see how the science of atmospheric chemistry became considerably more complicated once additional molecules had to be considered to explain the distribution of ozone in the stratosphere.

A further refinement of stratospheric chemistry came about in 1970 when Paul Crutzen, then of the University of Stockholm, and Harold Johnston, of the University of California at Berkeley, independently introduced theories proposing that molecules that contain nitrogen, analogous to those that contain hydrogen, play an important role in the chemistry of the stratosphere. Their proposals supported a growing concern at the time that direct injection of nitrogen oxides by high-flying aircraft might seriously impact the chemistry of the ozone layer.

The world organized to determine and quantify the extent to which the ozone in the stratosphere had been depleted. Furthermore, if a decrease of ozone in the stratosphere could be definitively established, this panel was charged with the responsibility of finding out whether the decrease could be attributed to natural or anthropogenic (human-produced) causes. Prior to the establishment of this fact-finding panel, several scientific papers had been published which reported that ozone amounts in the stratosphere had been decreasing in the late 1970s and early 1980s. There were, however, several possible explanations for the observed decreasing trend.

Ozone Depletion

In 1973, scientists discovered that human-produced chlorofluorocarbons (CFCs) decimate ozone when they break apart six to 25 miles above the Earth’s surface (Parson 225). This ozone destruction allows the more biologically harmful ultraviolet-B rays (UV-B) to reach the Earth’s surface. Every one percent decrease in ozone causes a 2.2 percent increase in DNA-damaging UV-B radiation. UV-B is also known to be the primary cause of human skin cancer and is linked to cataracts and immune system suppression. It also damages crops and marine algae. The best-known depletion – the ozone hole above Antarctica -measured nine million square miles in September 1992, a 15 percent increase over 1991 (Parson 137). Less well known is the steady depletion of ozone over populated areas worldwide. Australia, where frog species are in serious decline, is one area where the ozone layer has been most severly diminished.

Ozone Depletion: Causes and Solutions Essay

The causes of ozone depletion have been carefully looked at for many years. Scientists have studied are depleting ozone and have tried to come with necessary means to protect what we have left, for human survival. They have looked at many solutions and continue to find new methods of saving our ozone layer. Stratospheric ozone depletion has been a main concern for the public as scientists study the depleting ozone, as they search for the causes and solutions for our depleting ozone layer.

We learn from the NOAA Research Center that, (NOAA. 2005) “Beyond being a concern of scientists, stratospheric ozone depletion has been a topic of great interest to others. In the case of the general public, few scientific issues have so thoroughly become a topic of household conversation and classroom study. Stratospheric ozone turned out to be the issue upon which the leaders of the world’s governments would “cut their teeth” when it came to addressing global scientific concerns.

At every step of the way, CSD scientists have been there: “doing the science,” helping to assess the state of scientific understanding from the many studies of the international community of researchers, and communicating the scientific findings to those who want and need the information. The entire process can best be described as “science in the service of society” Among the hundreds of researchers around the world who have studied the stratosphere, CSD scientists have played prominent roles in understanding the connection between the health of the ozone layer, 15 miles above our heads, and the activities of humankind.

Many scientists have made huge progress, learning about the depletion of our ozone layer. They study to learn what factors may have or may in the future negatively affect the ozone layer. We learn that, “In research spanning three decades, CSD has studied the chemistry and physics of the Earth’s stratosphere. A large fraction of that work has been concerned with the study of the ozone layer and the processes by which it is being depleted.

The work has involved many individual scientists and has yielded many significant scientific accomplishments, among them: identification, in laboratory and theoretical modeling studies, of the key reactions that occur in the atmosphere and that influence stratospheric ozone design and construction of instruments for making observations of the important trace gases that affect the ozone layer, including the first observations of chlorofluorocarbons (CFCs) in the stratosphere formulating the theory (later proven to be correct) of how CFCs cause the Antarctic ozone hole via ice/surface chemistry leading major ground-based and airborne field campaigns to Antarctic (in 1986 and 1987) that provided the first definitive evidence of the role of human-made CFCs in creating the ozone hole. ” We have been accustomed to using many products, that scientists feel now have contributed to our depleting ozone layer.

We read in the Futurist Journal, (Economics of Preserving the Atmosphere, 1989) that “A national phase-out of widely used ozone-depleting chemicals in the years ahead will probably impose economic hardships on the United States, according to a business-policy analyst. U. S. Environmental Protection Agency regulations to take effect in 1989 are likely to reduce domestic production of (CFCs) by more than 60% over the next decade. CFCs are thought to destroy the ultraviolet light-absorbing ozone in the earth’s atmosphere and contribute up to 20% of the greenhouse effect, which is increasing temperatures worldwide.

“Closing the Antarctic ozone hole and restoring the ozone layer around the globe eventually will compel regulators to go a step further and mandate a virtual phase-out of chlorofluorocarbons’” predicts Douglas G. Cogan of the Investor Responsibility Research Center in Washington, D. C. But CFCs favorable qualities–versatility, durability, high efficiency, low cost, and lack of toxicity–have made them an integral part of the U. S. economy, Cogan notes. The chemicals serve as a coolant for modern refrigerators and air conditioners, as a foaming agent for Styrofoam insulation and foam rubber, as a solvent for computer chips and dry cleaning, and as a propellant for aerosol-spray products. “Virtually every American household, most of the nation’s transportation fleet, and 375,000 business locations will experience withdrawal symptoms as the nation weans itself of its daily dependence on these chemicals,” says Cogan.

Costs are likely to increase for a wide range of consumer products and services because few of the alternatives to CFCs will be as inexpensive to produce. In addition, product substitutes may not be able to operate as efficiently as those using CFCs, resulting in higher their energy consumption. ” Douglas goes on to say that, “A few promising alternatives to CFCs have already entered the marketplace, but most face at least five more years of rigorous toxicity tests before commercial approval As a result, continuing demand for increasingly limited supplies of CFCs could raise their price from 60 cents a pound today to as much as $3 a pound by 1994, creating windfall profits for CFC producers. A consensus is emerging … that we must prepare for a world without CFCs’” Cogan says.

The key question for policymakers is whether we should rush to eliminate these chemicals from production–imposing greater hardships on ourselves and on our economy–or wait for more alternatives to emerge, thereby imposing more serious environmental and health consequences on future generations. ” Since scientists are so concerned about phasing out chlorofluorocarbons, it is crucial that we replace the old ways of doing things. Robert W. Pease from the Wall Street Journal explains that, (Pease, 1989) “The news earlier this month that several European countries and the U. S. have agreed to phase out the use of chlorofluorocarbons (CFCs) by the year 2000 brings before us yet again the questionable theory that CFCs cause depletion of the ozone layer. Atmospheric chemist F. Sherwood Rowland , of the University of California, Irvine, formulated the theory in the early 1970s.

His speculations, quoted widely in reports about this month’s international conference hosted by Margaret Thatcher in London, have gained so much momentum over the years that they have now become the basis for decisions that would deprive us of the only inexpensive and effective refrigerants we have for refrigeration and air conditioning. This is not because of scientific proof, but the result of the constant reiteration of disaster scenarios that range from skin cancer to DNA damage. Pronouncements in the past few weeks give the impression that all atmospheric scientists are believers, which is far from true. Many of us are still skeptical because of incompatibilities between the theory and what we know about the ozone layer. The Rowland theory ignores the equilibrium nature of ozone in the layer.

The ozone molecules are constantly being created and destroyed— both quite naturally— by the very short wavelengths of ultraviolet light from the sun. The amount of ozone in the layer depends upon an equilibrium between the two processes. This equilibrium varies markedly both over the globe and throughout the year. At very high altitudes a disrupted equilibrium is restored in a matter of minutes; at lower levels in the stratosphere, in a matter of weeks or months. In any event, repair takes place rather quickly. Depletion of ozone can occur only by reducing the equilibrium density of ozone molecules. This makes for relatively insignificant depletions.

No doubt many CFC molecules have reached the ozone layer, but it is unlikely both that they are depleting the ozone to the extent the activists say, and that such damage, even if it existed, would take centuries to repair. Since the same narrow band of ultraviolet light breaks down both CFCs, releasing their ozone-destroying chlorine, as well as oxygen, creating ozone, there is a ‘competition’ between the two processes for this necessary solar energy. The probability that an oxygen molecule will be broken apart, rather than a CFC molecule, depends upon the relative abundance of the two gases in the ozone layer. Calculations based on high-altitude CFC samplings and data supplied by the National Oceanic and Atmospheric Administration show 60,000 ozone molecules are created for every chlorine atom released from a CFC molecule.

With this probability, how can the equilibrium density of the ozone layer be materially reduced? In other words, the paucity of measurable proof of depletion may be because depletion is not actually occurring. It is of interest to note that surface measurements by the National Oceanic and Atmospheric Administration indicate that the total amount of ozone above the U. S. is actually increasing. Unable to measure depletion in an unambiguous manner, advocates of the theory have taken the `hole’ in the layer over Antarctica as indirect proof of loss of the layer over mid-latitudes. However, papers at last summer’s international ozone conference at Snowmass, Colorado, cast doubt that this phenomenon is a mirror of global ozone decline.

Perhaps the erosion of this ozone during the polar night is due to the same interaction of the solar wind with the Earth magnetic field that causes the auroras. It has been observed that this combination can destroy the ozone. Solar wind is the product of solar flares, which are becoming more frequent as sunspot activity waxes Let us not blindly follow those environmental activists who cry, ‘The sky is falling’, but let’s continue to study the sky until we know enough to make a sound decision regarding the phasing out of our best refrigerants. Remember, before CFCs, toxic ammonia and sulfur dioxide were used in our home refrigerators. ” We live in a fossil fuel economy.

The United States — not to mention much of the industrial world — relies on oil and its byproducts to quite literally fuel our economy. And we’re in deep. So deep that we have to turn to others to feed our own habit. It is estimated that the United States spends upwards of $4 billion per week on petroleum imports, and approximately one quarter of that comes from Saudi Arabia and the Persian Gulf. The fall-out of this state of affairs is multi-faceted; the ethical, economical and environmental impact is evidenced daily in the national headlines. Not only are we supporting some pretty unsavory regimes, facing escalating trade deficits and increasingly vulnerable to economic pressure, the effects on the environment may be irreversible.

The underlying problem is, the resources we rely on, i. e. , fossil fuel, coal and uranium, must be “consumed” to release energy and are limited in supply – regardless of whose inventory and timeline you believe. Furthermore, all non-renewable energy sources have some negative impact on the environment. Excavation of coal and fossil fuel destroy the landscape while their emissions contributed to air pollution and the destruction of the ozone. These effects, however, are tame in comparison to nuclear power plants where radioactive waste is the end-product. How do we stop this – as the President himself has stated – addiction? Well, during his 2006 State of the Union address, Mr. Bush proposed that the United States “replace more than 75% of our oil imports from the Middle East by 2025. ”

This is all well and good, but with hundreds of millions of dollars in Republican coffers courtesy of the Oil and Gas industry, and the President’s repeated rejection of environmental lobbyists, many would paint this as rhetoric from the good ole boy from Texas. ” There are many books that tell us about our depleting ozone layer and give us many causes and then, possible solutions. Author, Rhonda Lucas Donald tells us that, (Donald, 2002) “More than 10 miles (16 kilometers) above the surface of Earth is a part of the atmosphere called the ozone layer.

This is the layer that protects all life and we must take serious precautions to protect it. Another author who is active about protecting the ozone layer is Edward A. Parson, author of the book, (Parson, 2003) “Protecting the Ozone Layer” explains that, “Since 1985, an extraordinary reorganization of a major industrial sector has taken place to protect the global environment. ” Author Maureen Christie tells us in her book, (Christie, 2001) “The Ozone Layer: A Philosophy of Science Perspective”, that “This book tells the story of scientific understanding of the stratospheric ozone layer. ” We must first truly understand the ozone layer and the harmful factors that threaten it, before we can act.

For more answers on what every individual can do to protect the ozone layer, you can read the book, (Dotto, 1978) “The Ozone War”, by author, Lydia Dotto. There are many solutions that are in reach in stopping the depletion of the ozone. Holly Cefrey, author of the book titled, (Cofrey, 2002) “What if the Hole in the Ozone Layer Grows Larger? ” offers that, “All things in the universe are made up of one or more forms of matter”. This book should prove beneficial in learning how to protect the ozone layer from depleting. Another good book to learn how to protect the environment and the depleting ozone, is (Martins, 2006) “Ultra Violent Danger: Holes in the Ozone Layer” by author, John Martins.

We must learn all that we can about finding ways to improve our environment. Edward J. Calabrese offers much information about the ozone depletion in his book, (Calabrese, 1990 “Ozone Risk Communication and Management”. There are several ways that we can take part in protecting the ozone layer. We should only go to service facilities with EPA-certified technicians and make sure refrigerants from your vehicle that will be recovered and recycled during servicing, then repair all leaks in the a/c system (not required by federal law, but helpful in protecting the ozone layer) Although not required by federal law, this is one of the single best ways to do your part to protect the ozone layer.

About 20-30 million cars on the road today use CFC refrigerants in their air-conditioning (AC) systems. If leaky systems were repaired, it would prevent the release of millions of pounds of CFCs into the atmosphere each year. If your air conditioner needs major repairs, talk to your certified service professional about having it converted to use an alternative refrigerant and repair air conditioners. Although not required by federal law, this step prevents ozone-depleting refrigerants from escaping. Make certain that the refrigerant is recovered before the servicing. If you purchase a new A/C system or heat pump, purchase one that uses non-ozone-depleting refrigerant.

Remove the refrigerant from refrigerators, air conditioners, and dehumidifiers before disposing of them. Make sure your service technician is EPA certified and work with local officials. Help start a refrigerant recovery and recycling program in your area if none exists. Not only will a responsible appliance disposal help to protect the ozone layer, but the recovered CFC-12 from appliances can be resold, helping to recoup a portion of the costs of the program and if you suspect or witness unlawful releases of refrigerant or other improper service practices, you can file a report easily and anonymously by calling the Stratospheric Ozone Information Hotline at 1-800-296-1996.

We learn from The Union of Concerned Scientists, that, “Humans have damaged the ozone layer by adding molecules containing chlorine or bromine that lead to ozone destruction. The largest group among these are chlorofluorocarbons (CFCs). At ground level, these molecules are stable and have many uses in industrial and domestic applications. However, when they are released into the atmosphere, they drift up to the stratosphere, pushed by winds and atmospheric mixing. At that high altitude, energetic light rays (UV-C radiation) can break down such molecules in a reaction that liberates an atom of chlorine (Cl). This chlorine atom can react with ozone and break it down to chlorine oxide and O2. Chlorine oxide will break down as well, releasing the Cl to go on destroying ozone.

In fact, one Cl can destroy up to 10,000 ozone molecules! As a result, ozone in the stratosphere has been reduced to such an extent that a hole opens up above Antarctica each spring that has, in each of the past four years, measured 8. 2 million square miles — larger than the United States and Canada combined! The problem is not limited to Antarctica, however. Stratospheric ozone is being reduced over much of the globe and research shows that this allows more dangerous UV-B to reach the surface of the earth. Through extensive research, scientists identified the human-produced chemicals that are responsible for the destruction of stratospheric ozone.

As evidence emerged on the extent of the threat to the ozone layer, the international community agreed to control ozone-depleting substances and schedule a timetable for completely phasing them out. This agreement is known as the Montreal Protocol and is a monumental achievement in international cooperation and environmental protection. Furthermore, the protocol provides for an on-going process so that, as the scientific understanding of ozone depletion improved, the phasing out process could be accelerated. The agreement also provides a powerful precedent for similar international efforts to deal with global warming and loss of biodiversity.

In the United States, the Environmental Protection Agency is charged with enforcing the terms of the Montreal Protocol. The treaty provisions are given the force of law through the Clean Air Act of 1990. Accordingly, chlorofluorocarbon, carbon tetrachloride, and methyl chloroform production ended at the end of 1995; methyl bromide is currently scheduled to be phased out by 2001; and all hydro chlorofluorocarbons will be phased out by 2030. Is ozone depletion related to global warming? No. Ozone depletion and global warming are separate problems, though some agents contribute to both. Chlorofluorocarbons (CFCs) are the principle cause of ozone deletion, but they also happen to be potent heat-trapping gases.

Still, CFCs are responsible for less than 10 percent of total atmospheric warming, far less than the 63 percent contribution of carbon dioxide. Thus, attention paid to CFCs has been on their ozone depletion role. This will change as CFCs are phased out and replaced by hydro chlorofluorocarbons (HCFCs) and hydro fluorocarbons (HFCs such as R-134a). These chemicals have little or no effect on the ozone layer but are strong heat-trapping gases. As their concentration in the atmosphere is already rising, the likely net effect in the future is that reductions in the CFC-related contribution to global warming will be offset by the presence of HCFCs and HFCs.

Are CFC-replacements really ozone friendly? The chemicals that are currently replacing CFCs are either HCFCs (hydro chlorofluorocarbons) or HFCs (hydro fluorocarbons such as R-134a). HCFCs have less chlorine in them and are less susceptible to the reactions that release chlorine in the stratosphere. But they are still ozone-depleting chemicals — they just destroy far less ozone than CFCs. For example, while CFC-12 has an ozone depleting potential rating of 1. 0, HCFCs have ratings from 0. 02 – 0. 1. HCFCs will eventually be phased out by 2030, as stated in the Montreal Protocol. HFCs do not contain chlorine, so they don’t contribute to ozone destruction at all.

However, since both of these groups are potent heat-trapping gases, they are a stop-gap measure, the lesser of two evils. Eventually, we are going to need a permanent replacement for all these kinds of chemicals. ” It is crucial that everyone take part in learning the causes and solutions for our depleting ozone layer. Scientists have give us many of these solutions to do our part in saving our environment and it will take individuals like ourselves making changes, scientist who continue to study the ozone layer and the harmful effects that contribute to our depletion of the ozone layer, and the government offering support in making any changes that are necessary to protect our ozone layer.

Ozzy Osbourne Essay

I. Introduction

Most people know about Ozzy Osbourne because he is one of the hottest personalities recently who is offensive, violent and somewhat “demonic”. Not many artists have influenced the world of entertainment as Ozzy Osbourne does. MTV has launched the sacrilege-soaked The Osbourne family show. His music is more on heavy rock and he is also considered as one of the rock music’s most stable and prominent personalities who became as one of the best loved figures on television through the wildly successful hit MTV program entitled “The Osbourne” which had the top rated original show in the 24-year history of MTV.

In 2003, Ozzy Osbourne was able to score his first number 1 U.K. single hit entitled “Changes” together with his daughter, named Kelly. Ozzy Osbourne is presently writing Broadway show which is based on Rasputin’s life. Not only that, he has a film too which is based on his life story that presents his being popular, creative and immeasurable.

Last March 2005, Ozzy became more famous when he released his album entitled “Prince od Darkness”. This is a four CD-set which contains the biggest hits and most unforgettable and notable collaborations having a separate disc which feature ten recent versions of Ozzy’s chosen songs from other artists (see “Ozzy Osbourne: Prince of Darkness”).

The intents of this paper are to: (1) know the background of Ozzy Osbourne; (2) figure out how Ozzy Osbourne and Black Sabbath have started; (3) find out what were the testing of his life before and after he became a member in Black Sabbath; (4) learn who the people behind his successful career were and; (5) be aware of how he was able to cope life after some tragedies happened to him.

II. Background

On December 3, 1948 in the place of Aston, Birmingham, England, a baby boy was born and named him as John Michael Osbourne or popularly known as Ozzy Osbourne. Ozzy Osbourne is a lead singer of the original heavy metal band called as Black Sabbath. He is also a famous solo artist and a reality television personality. Ozzy Osbourne married twice, have five children and two grandchildren from his oldest daughter, namely Isabelle and Harry. His first wife was named Thelma Riley and she has two children with Ozzy, namely Jessica Hobbs and Louis Osbourne. Ozzy’s second and current wife is Sharon Osbourne. Sharon has three children with Ozzy and they are Aimee, Kelly and Jack (see “Ozzy Osbourne”. Wikipedia, the free encyclopedia. November 1, 2006).

III. Discussion

Ozzy’s life before Black Sabbath

Not many of us know what Ozzy had been through when he was still young. Just like other people, Ozzy also undergone some biases from other people especially in the school where he was enrolled.  During Ozzy Osbourne’s earlier age, he settled in Birmingham, England. He belonged to a family of six children and experienced extreme poverty. He too had learning incapacity which was reported as dyslexia. Due to that fact, he was always bullied in school and insecurities started to crept in his heart.

And to avoid himself from clinical depression, he diverted his attention at an early age in music, as his scapegoat, where he became the lead singer of a local band called “Rare Breed”. Tony lommi, was once one of his bullies, hesitantly invited Ozzy to jam and join with his promising group called “Polka Tulk Blues Band” and subsequently renamed as “Earth” and Tony lommi was ultimately impressed by Ozzy’s voice. During the time when psychedelic rock was the trend, lommi and co-band members had come into a decision to play heavy blues and sing in relation to the depressing quality of life around them. Since the name Earth is very common and mostly used by anybody, the band decided to change the band’s name into “Black Sabbath” (see “Ozzy Osbourne”. Wikipedia, the free encyclopedia. November 1, 2006).

Ozzy Osbourne and Black Sabbath

The Black Sabbath band was able to reach to its fullest. It was made stronger through the driving guitar riffs of Tony lommi and the horror-laden lyrics of Geezer Butler. In addition, the band is also topped with creepy, loud vocals of Ozzy Osbourne which was included on the Black Sabbath’s early records like their self-titled debut album called “Paranoid” and “Master of reality” that are specifically identified as heavy metal. Many of their earlier singles particularly the “Iron man”, “War Pigs” and “Paranoid” continuously attract significant and noteworthy radio airplay. Moreover, Ozzy Osbourne continually plays the said hits when he performs as a solo artist. During 1979, Ozzy Osbourne was terminated from the Black Sabbath Band.

There were many allegations, controversies and hearsays about Ozzy’s termination. It was believed by many that he was terminated because he used narcotic drugs. But Ozzy Osbourne clarified the issue and said to the public that he was purposefully terminated because of his attorney’s advice. The position he left in the band was replaced by Ronnie James Dio, a former “Rainbow” vocalist (see Takasugi, Fumiko. “The Development of Underground of Musicians in Honolulu Scene, 1995-1997. Popular Music and Society. Vol. 26, Issue 1, 2003).

Ozzy’s life after Black Sabbath and people behind his success

Every individual cannot be successful in life without the support of other people. This was what happened in Ozzy’s life. Ozzy was still successful in his career after Black Sabbath because there were people who were patiently and faithfully helping him to achieve his dreams. These were the people who encouraged him during the lowest point of his life where he perceived that drugs are the only “solution” he can turn to and “resolve” his problems. But he was very wrong in doing such act because it made him more depressed and even did not want to “face” life as beautiful as it can be. The person who had great impact to Ozzy’s career was Sharon Arden.

After Ozzy Osbourne was terminated in the Black Sabbath Band, he decided to go solo as a music artist. But the allegation from other people that he used drug was proven. He has undergone depressions that were caused by drug and alcohol, for being divorce from his first wife Thelma and a treatment of bipolar disorder which gave him more stress. There was a time that Ozzy locked himself in a hotel for several months doing nothing but simply drinking and taking cocaine. But a very significant day came into his life and that day changed his life as a person. There was unanticipated knock at his door. And that knocked was owned by Sharon.

Sharon tried to talked and persuaded Ozzy to pick himself up and restart all over again. Sharon Arden, who was once a Black Sabbath manager and a daughter of Don Arden, managed Ozzy and Ozzy was able to have a recoding deal with Jet Records through the helped of Sharon and then subsequently got a subsidiary from CBS. Nonetheless, Sharon claimed that the band was able to record and tour through the financial help rendered by Jet Records. Moreover, the Ozzy Osbourne band started as “The Blizzard of Ozz”. The initial album was intended to be named eponymously but subsequently, it was agreed to entitle it as “Blizzard of Ozz featuring Ozzy Osbourne”.

Nevertheless, the record company entitled it as “Ozzy Osbourne” along with the album basically annotated “Blizzard of Ozz”. Then later, the name of the band was changed as “The Ozzy Osbourne Band” which has a drummer named Lee Kerslake of “Uriah Heep” and lyricist and at the same time bassist named as Bob Daisley of “Rainbow”. Fortunately, Ozzy was able to have victory on his first solo job which the debut collection sold well with heavy rock fans (see “Sharon Silenced”. The Washington Times. February 2, 2004. Copyright 2004 News World Communications).

In addition, to keep Ozzy from his addictions, Sharon decided to continue the band working. In the course of Ozzy’s second album entitled “Diary of a Madman” took shape. The album launched was considered by others to be rock classic and included more gifted songwriting by Bob Daisley and Randy Rhoads’ impressive guitar work and the launching encountered with controversy. Even though the songs were composed and performed by the four band members, the internal album art and credits were given to the novel touring band of Osbourne which has a singer and Rhoads, together with Rudy Sarzo of “Quiet Riot” and a bassist, and drummer Tommy Aldridge of Black Oak Arkansas (see “Ozzy Osbourne”. Wikipedia, the free encyclopedia. November 1, 2006).

For several years, Sharon had created a reputation as an impressive and remarkable business woman who maintained the successful rock career of Ozzy Osbourne by making vast profits of Ozzfest heavy metal festivals and making negotiation with MTV. The Osbourne family received the amount of 115,000 (pounds sterling) from the station for the first series but in the third series, the fee received by the Osbourne was approximately around (sterling pounds) 3 million (see Bright, Spencer. “Ozzy Rules; in a Rock World Dominated by Bad Boys, Ozzy Osbourne Stood out…” The Daily Mail. November 19, 2005. Page 6).

In addition, a reality-TV show entitled The Osbourne talks about a “53-year-old former lead singer of the metal band Black Sabbath and his dysfunctional family” is an extraordinary record hit. It was able to receive the top ratings in the history of MTV (see Goldberg, Jonah. “Ozzy without Harriet: What the Osbournes Tells Us about Drugs”. National Review. Volume 54, issue 11. June 17, 2002).

Tragedy Strikes and how Ozzy cope with it

By the year 1982 of March, a tragedy strike to Ozzy Osbourne’s life. When the band was busy doing promotions of the album “Diary of a Madman” in Florida, and one week away from playing Madison Square Garden in New York City, there was an accident happened. A light craft that carried Randy Rhoads, the band’s guitarist, crashed. Their pilot, who was also their tour bus driver and actually attempting to murder his wife, clipped the tour bus and crashed in the nearby house which led his death and killed Randy Rhoads, the hairdresser of the band named Rachel. There was evidence that the said pilot had taken cocaine and it was found out that the pilot’s license was already expired by several years. Osbourne was able to manage to help the man who is living in the house but unfortunately was not able to help those who are in the plane.

Because of the death of his band mate and close friend, Ozzy Osbourne experienced again a deep depression. And the recording company was considerate enough to understand what Ozzy Osbourne had been going through and it gave him a break from performing in order to weep for his deceased band mate, however, Ozzy got back to work after a week. Since there was vacancy for the guitarist position in the band, Bernie Torme of Gillan was hired to replace Randy. But Bernie Torme could not manage the pressure of learning the guitar parts in a short time and pulled back in playing in the presence of the thousand fans who were still weeping for the death of Randy Rhoads (see “Bring on the Nutters; Sharon tells Will Marlow about Dark Days and the Search for a Star in the X Factor”. The Birmingham Post, September 2, 2004. Page 14).

The Controversy

The press stated that Osbourne’s escapade worsened by the year 1980s and his drug abuse and alcoholism was progressively occurred and because of that, he underwent several therapies for drug addiction and alcoholism. He shared in one interview that he listened the music of Hall, Beethoven and Oates. There was one incident, during 1978, that Ozzy got into a fight when his wife, Sharon Osbourne, kissed the lead singer of Electric Light Orchestra. Moreover, Osbourne confessed that at the height of his addiction to narcotic drugs, he was able to shot 17 cats (see “Ozzy Osbourne”. Wikipedia, the free encyclopedia.  November 1, 2006). Ozzy Osbourne stated that:

“I was taking drugs so much I was a fucker, the final straw came when I shot all our cats. We had about 17, and I went crazy and shot them all. My wife found me under the piano in a white suit, a shotgun in one hand and a knife in the other” (see “Ozzy Osbourne”. Wikipedia, the free encyclopedia.  November 1, 2006).

The Recovery

Between 1980s and 1990s, Ozzy Osbourne continually made a move for his career even without his close friend Rhoads and turns to be sober. The concert conducted during 1981 were recorded with a live album entitled “Speak of the Devil” but was recognized in United Kingdom as “Talk of the Devil”. During 1982, Ozzy Osbourne was invited as the guest vocalist on the “Was” pop dance track “Shake Your Head (Let’s Your Go to bed)” together with Madonna who performed as backing vocals. The cut of Osbourne’s album was remixed and was released again in the initial part of 1990s for a Was. Furthermore, in the last part of the year 1986, Osbourne was the object of US proceedings which was filed against him because one of his songs entitled “Suicide Solution” was motivating two teenagers to commit suicide because of its “subliminal lyrics”.

The cases were dismissed because there was no strong ground on the case filed. It stated that Osbourne was not responsible for any action committed by the listener. After that case, Ozzy Osbourne publicly clarified that he composed the song “Suicide Solution” for his friend, lead singer Bob Scott of AC/DC, who eventually died because of alcohol abuse and the word solution denoted to alcohol as a solution and as a chemical solution (see “Culture: Many Happy Returns from legends Both Old and New. The Birmingham post. November 28, 2005, Copyright 2005).

IV. Conclusion

Life’s fame and wealth cannot satisfy one’s soul. It continuously looks for more wealth and there is no satisfaction in it. Life’s success is not equated of how famous and wealthy you are but how much peace you have in your heart in spite of the circumstances coming on your way. The life of Ozzy Ozbourne is just like a rollercoaster because he was able to experience ups and downs in his life and career. He is truly blessed financially but peace is not vividly seen on him and his actions really show it. The stillness of one’s soul will be reflected of how he/she behaves and acts towards on things; and it is definitely not seen on Ozzy’s life because of how he expresses himself. Out from the abundance of the heart, the mouth speaks.

Ozzy’s life was truly “seasoned” by time in such away that he was able to experience hardships in his early life yet he was blessed by God to have enough strength to maintain and soar high in his music career. Ozzy was blessed, too, to have a supportive wife. Sharon Ozbourne was a kind of wife who is supportive because she really stood by the side of her husband in spite of the controversies happened. Moreover, the contribution Osbourne has made in the music industry was really remarkable. Since the Black Sabbath days up until to his successful solo career, Ozzy Osbourne continually makes music of high quality and intensity. The Black Sabbath Band with Ozzy Osbourne paved its way during the time of Metal. Because of Ozzy’s behavior and attitudes, he was able to have nicknames like “the madman” and the “Godfather of Heavy Metal” and “Prince of darkness”.

The Inheritance of Loss Essay

On page 280, of the book, (Desai, 2006) “Inheritance of Loss” by author Kiran Desai, we learn that the house looks nothing like what Gyan’s future is supposed to resemble, including the manner of his dress, the way he spoke and the way he acted did not represent what he was to become in his future. His family had sacrificed everything in their lives to make certain that Gyan was successful in his life. They wanted him to look the part of a winner as one that was groomed for success.

Gyan’s family had gambled everything on him and he did need to look the part. Everyone in Gyan’s family had to sacrifice what they needed for Gyan, who they relied on to make money and then to care for the things that they had put on hold for a later date, which included the marriages of family members and his grandmother‘s teeth, according to the time in which Gyan could offer them the things they needed.

They would remain patient until that great day and at that time their sacrifices would pay off to each of them and they could by proud of Gyan.

Sai wasn’t at all sure what she should do, now. She did feel shame toward Gyan because he had never told her about the enterprise, as he stood silent and hoped that she would see this as dignity, on his behalf. She had begun to feel bad about herself, now as she gained this knowledge about Gyan because now, she was directly connected to this enterprise. She felt awful, now that she knew about this secret. The dilemmas and stresses were now out in the open.

Coffee Industry Essay

From the discovery of small, brightly colored red berries on trees in Ethiopia came the largest imported commodity in the world, second only to oil. The coffee bean provides a livelihood for over 20 million people worldwide with an estimated worldwide retail sales expected to grow by a compounded rate of 6. 9% from 2005-2010, reaching $48. 2 billion by 2010, according to The U. S. Market for Coffee and Ready-to-Drink Coffee. [1] The two main species of coffee beans are Arabica and Robusta.

Arabica is a high-quality coffee typically grown at higher elevations where the optimal climatic conditions necessary to grow this specialty grade of coffee are found.

Arabica coffee is traded in two ways: ? On the highly volatile New York “C” market where the “C” price is affected by the global supply as it rises and falls. The average “C” price for a pound of coffee during fiscal 2005 was $1. 04. ? Higher-quality Arabica beans are used in specialty coffee. Specialty coffee represents 10 percent of the total worldwide coffee market.

Prices for specialty coffee are higher than the “C” offers in order to provide better rates payable to producing farmers for quality. [2] According to the National Coffee Association in Volume 2005. 4 of Coffee Trax, as of December 2005, forecasts for the world coffee production for 2005-2006 will be 113. 1 million bags. Production is down 5. 5% over the actual 2004-2005 yields of 119. 8 million bags. Domestic consumption in producing countries in 2005-2006 is forecast to increase to 31. 2 million bags, indicating domestic use should be 9. 9% higher in 2005/06 than in 2004/05.

Using the most current data, world coffee consumption for 2003/04 was 96. 5 million bags, up by 1. 8% over 2002/03’s production. “In 1999 there were 108,000,000 coffee consumers in the United States spending an approximated 9. 2 billion dollars in the retail sector and 8. 7 billion dollars in the foodservice sector every year (SCAA 1999 Market Report). It can be inferred, therefore, that coffee drinkers spend on average $164. 71 per year on coffee. The National Coffee Association found in 2000 that 54% of the adult population of the United States drinks coffee daily (NCA Coffee Drinking Trends Survey, 2000).

They also reported that 18. 12% of the coffee drinkers in the United States drink gourmet coffee beverages daily (NCA). In addition to the 54% who drink coffee everyday, 25% of Americans drink coffee occasionally (NCA). The average consumption per capita in the United States is around 4. 4 Kg. Among coffee drinkers (i. e. not per capita) the average consumption in the United States is 3. 1 cups of coffee per day (NCA). Per capita men drink approximately 1. 9 cups per day, whereas women drink an average of 1. 4 cups of coffee a day (NCA).

The USDA’s 2005/2006 December estimate for world exportable production is 82.0 million bags which is 10. 2% lower than 2004/05. Total U. S. imports were down 15% for the second to third quarter of 2005. Estimated roastings for the third quarter of 2005 were up to 4. 7 million bags compared to the second quarter but down by 5. 8% for the year-ago quarter. [3] Retail prices were up from $3. 33 to $3. 40 for the average quarterly retail price of a pound of roast-and-ground coffee or 2. 1% after comparing the third-quarter 2005 to the second quarter. Compared to the year-ago quarter, average retail prices were up by 18. 1%, moving to $3. 40 from $2. 88.

The average monthly retail price continues to be 20. 8% below its seven-year high of $4. 67 in August 1997. [1] Fair Trade coffee is beginning to affect the economics of the coffee industry. Coffee retailers to help maintain a sustainable supply of coffee are increasingly adopting the Fair Trade movement. Over the years a coffee crisis has developed as supply has greatly exceeded demand. This paradox of continued growth of retail pricing at the expense of the small coffee farmers has driven retailers like Starbucks to create their own methods of providing higher profits to producing farms so that supply can be maintained.

Under a Fair Trade agreement producers are guaranteed a fair price consisting of a floor price of $1. 26 per pound and $1. 41 for certified organic coffee. [2] From 2002 to 2004, USAID invested over $57 million on coffee projects in over 18 countries in Latin America, East Africa and Asia in an effort to create sustainable supplies of coffee. Other movements such as Organic and Shade Tree coffee have had similar goals to help with environmental and quality concerns on the producing farms. [4] Coffee consumers are continuing to show a preference for premium coffees.

While most brands have declined in sales during the past year, premium coffees have managed growth, according to data from Information Resources Inc. , which measures sales through supermarkets; drug stores and mass merchandise outlets. Ground coffees lost 1. 8 percent of sales for a category total of $1. 6 billion, but whole bean coffees were up 2. 2 percent. Starbucks grew in both segments, with a 13. 2 percent increase in ground coffee sales and 6. 4 percent in whole bean sales. [5] Retailers such as Starbucks in the specialty coffees use the highest-quality Arabica.

Specialty coffee is a broad category of coffee positioned as the highest quality and/or roasted with the ideal techniques or even coffee from particular plantations. “Even though the overall U. S. coffee market has been sluggish lately, the specialty component has seen significant growth, with retail dollar sales approaching $9 billion in 2003. The segment’s sales in 2003 represented growth of 6. 7 percent over 2002’s $8. 4 billion. In 2003, coffee cafes – the approximately 11,240 retail locations including seating, such as most Starbuck’s outlets – generated $6. 1 billion in retail sales, or 68. 3 percent of the segment’s total.

Coffee bean roasters and retailers – the 1,350 sites with on-premise roasting – accounted for 14 percent of sales with $1. 3 billion. Coffee retailers without seating, also known as kiosks, had sales of $810 million, which represented 9. 0 percent of the total. There were approximately 2,700 coffee kiosks operating in 2003. Mobile retailers (i. e. , carts) accounted for an additional 3. 2 percent of sales, with all other channels responsible for the rest. ” [6] Driving Forces in the Coffee Industry Competitive and industry conditions experience change due to the forces that are pressuring industry participants to alter their actions.

Competitors, customers, or suppliers are enticed to change their ways. Those with the biggest influence on industry structure and the competitive industry environment are driving forces. The coffee industry has four driving forces that originate in the industrial and competitive environment. A change in who buys the product and how they use it is one of the four driving forces in the coffee industry. Shifts in buyer demographics and the way consumers use the product have altered the competition for this industry.

The variation has prompted producers to broaden the product line and try different sales and promotion approaches. Changing societal concerns, attitudes, and lifestyles is the other driving force that ties in with the customer base and usage. Society is changing, with the new generations being a huge influence. Parents, a huge factor in the lifestyle, attitudes, and opinions of their children, drink coffee and are, thus, promoting coffee to the offspring. These young persons are looking for caffeine to keep them going through their increasingly busy days.

At age 13, who knew that coffee was needed to add to their ever-so hyper lives? Coffee is established as a drink older people consume. Young people are always aspiring to be older than they are, so coffee is marketed in a different way to the younger generations as specialty coffee and gourmet beverages. Marketing these drinks as “cool” and “hip” is also a successful method of attraction. Establishing loyalty early while coffee drinkers are young will ensure a prospective future for this industry. In addition, the use of coffee has changed over the years.

Coffee was first marketed as a breakfast drink for the working parent to get a boost of energy for the day. As more women started joining the workforce, the coffee consumption increased. Throughout the years, an increasing amount of people started drinking coffee more frequently throughout the day. Today, it is not uncommon to see a person drinking a gourmet coffee drink at 10:00 p. m. , as well as anytime throughout the day. Whenever you need that caffeine-boosted beverage or just want that coffee bean taste most love, consumers now can look for multiple types of coffee drinks to satisfy the craving.

Growing buyer preferences for differentiated products instead of standardized is the driving force that allows the product innovation to take lead in this industry. Due to consumers demand for something different, companies in this industry needed to expand current products to fit customer needs and wants. The success of product innovation of introducing coffee drinks and coffee flavors, made the choices for consumers grow. Consumers wanted more flavor and excitement, instead of the regular or decaffeinated options.

During the hot summer months, many coffee lovers wanted the taste of coffee but were not fond of drinking a hot drink. Iced coffee drinks helped to solve that problem. Now, people can drink coffee anytime of the year. Many consumers do not just drink coffee in the morning, like the generations before; meetings, study sessions, hanging out, talking amongst old friends and other events are all done through coffee drinking. Due to the buyer influences, the coffee industry has grown in all directions and continues to see a future with innovation and other driving forces helping it along the way.

Lastly, product innovation is a driving force that has allowed the coffee industry to grow. The competitive environment is fierce and product innovation is one of the key driving forces to stay on top of the industry’s market share. Coffee drinks were developed as an anytime coffee drink. Such drinks are Espressos, Cappuccinos, Frappaccinos, Lattes, and Mochas. Whether a consumer likes it hot or cold is no difference now; iced coffee is for those that do not feel like a hot cup. Black, White, Irish, Turkish and Americano are also other types of coffee to choose from.

Flavored coffee is a pillar innovation to this product category allowing different consumers’ taste buds to run wild. Chocolate covered coffee beans are another innovation that expands the use of coffee in a nontraditional way, a snack. This industry growth has also allowed companies the opportunity to promote to different consumer markets. Young and old purchasers, people that like hot or cold coffee, and those that like a coffee drink in the morning or evening are all targeted now that the product lines have broadened the scope of the industry.

Product innovation has helped consumers’ differentiation issues, along with allowing them to drink it anytime of day they need an extra tasty boost of energy. In order to stay on top of the competitive environment in this industry, a company has to accept the driving forces and make each one positive for the company in the long run. The following driving forces are influencing the coffee industry: change in who buys the product and how they use it; changing societal concerns, attitudes, and lifestyles; growing buyer preferences for differentiated products instead of standardized ones; and product innovation.

Each of these driving forces increases the competition in the industry. The increased demand for products, especially the new innovated ones, is an opportunity for profitability as well. Because of the innovation, many people are expecting choices for the long run; the companies that offer the products consumers want will prosper. Competitive Analysis of the Coffee Industry Although there are many substitutes for coffee when it is regarded as nothing more than a liquid to drink, most people would agree that there are relatively few that would be considered viable substitutes to dedicated coffee drinkers.

Historically, teas have been the greatest rival substitute for coffee, and just as there are specialty coffees, there are specialty teas as well. The key to coffee substitutes being successful in luring coffee drinkers over to their products is differentiation. While tea alone may be substantially differentiated from coffee, a dedicated coffee drinker will need some sort of hook, or angle, to get them to try something different. Often this angle comes in the form of a doctor telling them to cut back on caffeine or to stay away from coffee altogether.

According to About. com the top five coffee substitutes are: 1. )Roastaroma ? a tea “blend of roasted barley, roasted chicory root, and roasted carob, with spices cinnamon, allspice, and star anise. ” 2. )Genmaicha ? a “green tea with roasted brown rice. ” 3. )Teechino ? “made from roasted carob, roasted barley, and roasted chicory” containing “figs, almonds, and dates. ” 4. )Cafix ? “a freeze-dried grain drink made from barley and chicory. ” This drink is non-acidic and does not contain caffeine. 5. )Pero ? “made from malted barley, chicory, and rye. ”

Although coffee substitutes are readily available and reasonably priced, traditional coffee drinkers are usually dedicated to coffee in general, if not one particular brand. Therefore, buyers tend to view substitutes as not adequately comparable alternatives. One of the coffee industry’s greatest attributes is the loyalty of their customers. Buyers of coffee can be broken down into two groups; individuals and businesses. An individual coffee drinker will have little or no real power to influence the industry or a particular seller beyond switching brands.

The switching costs of individuals are virtually nothing; therefore they can move between brands whenever they are dissatisfied with quality or price. Business buyers such as restaurant chains, hotel chains, convenience stores, and supermarket chains have considerably more power than an individual buyer. This is simply due to economies of scale where a restaurant chain purchasing several thousand pounds a week will have more influence on a supplier than an individual buying one or two pounds per month. Supermarket chains are in a strong position as well, as they can offer as much or as little shelf space as they want.

They can also switch brands on shelf space, virtually without cost, to replace poor selling brands with other brands, which may have a higher sales rate. Therefore buyer power depends upon the quantity bought, as with many industries. The power of buyers may range from weak to strong or even fierce. The threat of new entrants into the coffee industry is somewhat strong. While entrants into large markets may not be many, the entry of small shops in local markets offering specialty coffees has grown rapidly in the last several years.

Entrants into the specialty coffee arena have been lured in by rising demand of such coffee and attractive profit margins. While these local shops will not be able to compete with large corporations such as Kraft, Proctor & Gamble, or Starbuck’s on an international basis, they can account for some competition in local, concentrated markets by offering a niche; an alternative to corporate retailers with a less personable and hospitable atmosphere. Retailers such as these tend to do well in more rural areas where major corporations may not wish to enter, or in areas where collegiate or more naturalistic atmospheres prevail.

These areas may be less inclined to cater to large corporations. New entrants into the coffee industry are also faced with the obstacle of overcoming name brand loyalties. Although in some small specialty coffee markets a new brand with a unique name or style may do well, in most arenas coffee drinkers are extremely loyal to their brands when they are purchasing for home consumption. These buyers are not likely to switch brands for superficial reasons. The competitive pressure from suppliers is relatively weak in the coffee industry.

The individual coffee bean farmers have little control over the price of the coffee they sell. The worldwide market has little fluctuations and any that may occur have little effect on any one particular farm. Recently world coffee supply has been exceeding demand, which has taken even more power away from the suppliers who must compete with growers from around the world. The futures market provides security to firms purchasing beans from governments. By buying these futures contracts the company is promising to buy a certain amount of coffee at a stated price no matter what the overall market price may be at the time.

The government selling the contracts is promising to provide the amount of coffee stated to the buyer at the stated price regardless of the current market price. Governments also have a role in determining supply as they can set regulations governing the number of trees that are planted, provide price subsidizing for farmers, and impose tariffs. Furthermore, the price of coffee beans has not been increasing at the same rate as the price of your average cup at a specialty shop, or as fast as inflation. In January of 1996 the price of coffee beans was $1. 02 per pound [7].

Ten years later in January of 2006 the price has only increased to $1. 17 per pound, an increase of 14. 12% [7]. In the same period inflation had risen approximately 25. 3% [8]. Rivalry in the coffee industry among competing sellers is vigorous. Although the overall market for coffee grew fast in the late 1990’s, especially regarding the specialty coffee markets, it has leveled off some in the last few years and the overall demand is growing slowly. Another reason for the high level of competitiveness within the industry is due to the relatively low differentiation ability of coffee.

While specialty coffees derive some level of differentiation from region of growth or roasting methods, the overall product is fairly standardized. This leads to increase jockeying for position among existing firms, as they cannot lure customers in with a variety of unique products. Some firms however are attempting to lure customers in with new products such as Folgers’ Home Cafe system, which is a one-cup pressure-brewing system. These devices use “pods,” or individually packaged coffee for single serve applications. Other companies have also been marketing individually packaged coffee so that consumers can make a “perfect cup” every time.

The switching costs of buyers are also very low, if not non-existent. Buyers only have to purchase a different brand in order to switch. While some businesses may have to replace equipment if they switch brands, a business of large purchasing capacity will likely have equipment provided for them by their coffee bean supplier. The recent surge in specialty coffee brands has increased rivalry among existing firms. As companies such as Starbuck’s have grown and acquired market share, companies such as Kraft, Proctor & Gamble, and Nestle have had to increase advertising and create new specialty coffees of their own in order to compete.

“Sales of specialty coffee were $10 Billion in October of 2005 and expected to rise at a rate of 7% annually, while sales of traditional brands have been falling. ” [9] Over the past two years Maxwell House has seen a decline of $75 Million in supermarket sales alone. ” [9] Furthermore, companies like Starbuck’s have been acquiring smaller companies and thereby growing in market share and sales. This has been done to such an extent to make them comparable to big firms such as Kraft and Proctor & Gamble who compete in various markets with multiple products.

This has increased rivalry among these firms as they struggle to maintain their market share. Key Success Factors in the Coffee Industry Coffee drinkers are becoming interested in the type of coffee they drink, people who want specialty chocolates and wines want specialty coffee. Specialty coffee is label “gourmet” or “premium” coffee. The specialty coffee bean comes form rare locations and is 100% from that origin; that means no mixing with another bean. People want to know the beans country of origin and if the bean is a blend or a single-origin.

Coffee originates from a variety of places like South America, Africa, Middle and Far East, and Jamaica. The Specialty Coffee Association of America (SCAA) said people want specialty coffee because of its superior coffee, “People want things to taste good and clean and no longer want cheap coffee. ” The SCAA reported that 15% of American adults drink specialty coffee an increase from 6% points over 2000. According to Mintel International Group, saw producers who specialize in coffee rise, Procter and Gamble’s Millstone premium brand increased 37.

5% and Starbucks rose 23% between 2001 and 2003 (Chater, 2005). Along with specialty coffee is flavored coffee, which is increasing popular. Flavored coffee ranges from Cherry Vanilla with Pecans and Cashews, Orange Cappuccino, or even Hazelnut. The SCAA claims flavor coffee will continue to grow in the total market share. The Motley Fool Stock exchange reported that the 7-Eleven saw 5% of sales come from coffee products like the Slurpee with flavors Cherry Creme and Vanilla Nut. The Black Mountain Gold Coffee (BMG) offers its flavor coffee through Amazon.

com and it is their number one flavor; Cinnamon Crumb Cake-flavor coffee became so popular that Albertsons in Texas included the brand inside the store (Friedman, 2004). The United States is the largest base of coffee drinkers and the second largest importer of coffee (Packed Facts, 2003). Therefore, it is evident that coffee is popular drink. Coffee is sold in airplanes, office buildings, hotel rooms, train terminals, schools, and grocery stores. Some grocery stores even offer coffee to drink while shopping. It is good having these locations offer coffee because it stimulates more coffee being drunk and later more purchases.

It is also a good way to get non-coffee drinkers to try coffee and turn them into coffee drinkers. Coffee is sold in most stores, and even on the Internet. Having coffee sold in a variety of places ensures the consumers have easy access to purchase the product. Locations benefit by selling coffee because usually when coffee is being bought customers have a tendency to buy other products such as, milk, cream, sugar, or a mug. Numerous studies are indicting coffee can offer health benefits. It would be beneficial for the coffee industry to further these studies and use as a selling tool.

The coffee bean is a plant base food, therefore offers rich antioxidants more so than broccoli and blueberries. These antioxidants can help prevent cancers, Parkinson disease, gallstones, and used for an antidepressant. Other nutrients inside coffee like potassium, niacin, magnesium, and chlorogenic acids can possibility help reduce diabetes (McAuliffe, 2005). Cautious coffee drinkers are concerned with how coffee effects the environment and farmers. Sun-grown coffee, uses fertilizers and pesticides, and contributes to deforestation; shade-grown is grown beneath a canopy of trees while preserving the forest.

Organic coffee has increased 54% in 2005 through Nov 6, while non-organic coffee increased 8. 5%. Coffee drinkers want to be reassured that producers of coffee are treated fairly. Are farmers compensated fairly, no abuse, or child labor? Companies should be very weary of this issue because, if the source of coffee is not on good terms, if the farms are not healthy or unhappy employees than it could affect the industry in a negative way. Starbucks is a perfect example showing support to farmers by offering decent wages, and ways to help protect their asset (farms).

Starbucks as teamed with the Fair Trade Certified Coffee by offering “Coffee of the Week” to bring awareness for the Fair Trade Certified Coffee. Other companies should take notice of the Fair Trade Certified Coffee, the Fair Trade Certified Coffee ensures farmers are properly compensated, health care, and economic stability of farms (Gimbl, 2005 & Chater, 2005). Overall Industry Attractiveness In order to decide if the coffee industry presents an attractive opportunity for earning good profits, it is important to base a conclusion on several factors.

By drawing upon previous analysis of the intensity of competition, whether the impacts of the driving forces are positive or negative, the market positions of industry members as shown on the strategic group map, and also close examination of the industry’s key success factors an educated answer can be deduced. First, by examining the market size and growth potential the coffee industry presents a livelihood for over 20 million people worldwide with an estimated worldwide retail sales expected to grow by a compounded rate of 6.

9% from 2005-2010, reaching $48. 2 billion by 2010, according to The U. S. Market for Coffee and Ready-to-Drink Coffee [1]. Competitive forces in the industry point to growth through the development of product innovation and specializing in gourmet coffee and specialty drinks. “Sales of specialty coffee were $10 Billion in October of 2005 and expected to rise at a rate of 7% annually, while sales of traditional brands have been falling. ” [9] This has increased rivalry among these firms as they struggle to maintain their market share.

Competitive forces are conducive to rising industry profitability as long as companies continue to offer product innovation and stay ahead of the curve when it comes to the driving forces in the industry Degree of risk and uncertainty in industry’s future encompasses many issues. Coffee drinkers are many and are seemingly very loyal to their drink. Proof being that recently the coffee supply has been exceeding its demand, which has taken even more power away from the suppliers who must compete with growers from around the world. In addition several tentative studies show positive health benefits to coffee drinkers.

With a trend in the United States to be more health conscious, the coffee industry has opportunity to capitalize on these finds. In contrast when examining the severity of problems facing the industry it is evident that although demand is growing the trend is that it is steadying off. Due to little differentiation and small increase in the price of coffee since 1996, companies have been forced to focus on increased product differentiation in areas such as specialty coffees; however, that too is steadying off in growth over the past couple of years.

Possible strategic issues include customers increasingly loyal to certain brands, which possibly make it more difficult for smaller coffee companies to edge into large consumer base. Also coffee companies need to consider the growing demand of consumers in the ethical treatment of coffee workers and focus their attention to a coffee drinker who looks to drink it for its benefits and special offering in taste. Ultimately when drawing conclusions about the attractiveness of an industry, the perspective is important. It depends on the scope and breadth of a particular company.

The attractiveness of the opportunities an industry presents depends heavily on whether a company has the resources and the competitive capabilities to secure them. A standard judgment of if an industry is profitable is if the industry’s overall profit prospects are above average, the industry environment is basically attractive; if industry profit prospects are below average, conditions are unattractive (Strickland III et al, 2004). However this analysis of the industry shows that the coffee industry has a strong future and to the right players offers an attractive business opportunity.

Works Cited

[1] 6 Mar. 2006 . [2] “Starbucks. ” Starbucks, Inc.. 3 Mar. 2006 . [3] 1 Mar. 2006 . [4] 2 Mar. 2006 . [5] http://www. stagnito. com/fbr_beverage. asp [6] “Slow Roast”, John G. Rodwan Jr. NPN, National Petroleum News. Chicago: Mar 2005. Vol 97, Iss. 3; pg. 14, 1 pgs. [7] http://www. econstats. com/fut/xnyb_ew2. htm [8] Bureau of Labor Statistics. http://www. bls. gov/cpi/cpi_dr. htm; Table Containing History of CPI-U U. S. All Items Indexes and Annual Percent Changes From 1913 to Present. [9] Coffee Drinkers and Their Habit, Business Week Online October 10, 2005 Marketing/Online Extra http://www.businessweek. com/magazine/content/05_41/b3954201. htm 12 Mar.

2006 Packaged Facts. “The U. S. Market for Coffee and Ready-to-Drink Coffee, 4th Edition. ” (Nov 1, 2003). Packaged facts. 8 Feb 2006. < http://www. packagedfacts. com/pub/895867. html> Chater, Amanda. “SPECIALPERKS; THE BUZZ ABOUT SPECIALTY COFFEE IS ENLIVENING SALES IN AN OTHERWISE DECLINING CATEGORY. ” (coffee markets). ” Supermarket News (Dec 19, 2005): 41. InfoTrac OneFile. Thomson Gale.

Middle Tennessee State University. 2 Feb 2006 http://find. galegroup. com/itx/infomark. do?&contentSet=IAC-Documents&type=retrieve&tabID=T002&prodId=ITOF&docId=A140760166&source=gale&srcprod=ITOF&userGroupName=tel_middleten&version=1. 0. McAuliffe, Kathleen. “Enjoy!. ” U. S. News &World Report 139. 23 (Dec 19, 2005):67-68. InfoTrac Online. Thomson Gale.

Middle Tennessee State University. 2 Feb 2006 http://find. galegroup. com/itx/infomark. do? &contentSet=IAC-Documents&type=retrieve&tabID=T002&prodid=ITOF&docId=A139695515&source=gale&srcprod=ITOF&userGroupName=tel_middleten&version=1. 0 Friedman, Susan. “Beyond cream & sugar: savvy Retailers recognize the value of flavored coffee. ” Tea & Coffee Trade Journal 176.

3 (March 2004): 30(3). InfoTrac One File. Thomson Gale. Middle Tennessee State University. 2 Feb 2006 http://find. galegroup. com/itx/infomark. do? &contentSet=IAC-Documents&type=retrieve&tabID+T002&prodId=ITOF&docId=A114819506&source=gale&srcprod=ITOF&userGroupName=tel_middleten&verson=1. 0 Introducing Starbucks Cafe Estima Blend(TM).

Fair Trade Certified(TM) Coffe. Business Wire. LOAD DATE: Oct 10, 2005. 23 Feb 20006. /cnn/sbux. shtml Strickland III, A. J. , Arthur A. Thompson Jr. , and John E. Gamble . Strategy Core Concepts, Analytical Tools, Readings. 2nd ed. Boston: Mc-Graw-Hill Irwin, 2004.

Yuban coffee Essay

I. Introduction/Executive Summary and Product Description Yuban coffee is a brand of coffee you can find in your local grocery store that you probably did not know existed. It was founded by John Arbuckle, a famous coffee roaster, who has invented the original Yuban coffee in 1986. Yuban coffee only uses the best Arabica beans. In addition, Yuban is certificated by the Rainforest Alliance, which declares that at least 30% of Yuban coffee is organic.

Chemical fertilizers and pesticides are not used on the organically grown beans and the rainforest alliance also works to sustain agriculture, forestry and tourism in the regions of the forest that the coffee beans are grown.

More recently, Yuban coffee has been slowly grown, if grown at all, and has not been reaching its full potential. The main problem of Yuban is the lack of brand awareness and an unsuccessful marketing strategy. When the marketing strategy changes to solve these problems, it will make the Yuban brand more competitive and successful in the coffee market.

Our marketing plan will be discussed in detail in the pages to come, but our general objective is to build brand awareness by defining and marketing towards a more specific target market. Also, with the implementation in of our recommendations, Yuban coffee will be able to reach this objective.

Ultimately our marketing plan will consist of the following: 1. Increase Yuban’s brand image by: a. increasing brand awareness from business-to customers / Business-to-Business markets by penetrating the online and social media sectors b. creation and implementation of the vending machine/coffee brewing machine c.using recent acquisitions to push the Yuban name d. redesigning product packaging to reflect environmentally conscious brand II.

Target Customer Analysis People in the United State love coffee, just like how people in China love tea. Research suggests that 50% of the population of United States drinks coffee and those coffee drinkers in the United State drinking more than 3 cups of coffee each day! Aside from the United States there are so many other people in the world who love coffee (E-imports, 2012). This makes coffee become the second valuable trading product after oil.

For the people who love coffee, most of them have a favorite brand, even a specific taste. So for Yuban, they have a big market and great opportunity to develop. Yuban coffee is certified by the Rainforest Alliance Certification, which means Yuban coffee is healthier and environment friendly. “Made from 100% premium Arabica beans, YUBAN mountain-grown coffees offer uncompromising, robust flavor and seductive aroma” (Kraft. com). Also, because of this reason, Yuban coffee is more expensive than some other instant coffee, especially its caffeine-free organic coffee.

Therefore, the target customer of Yuban coffee should be those people who are environmentally and health conscious, and willing to pay more money on coffee. In figure 2. 1 of the Appendix, the two charts show the difference purchasing power on different generations. We can see in the first chart that people in age 25-34, 35-44, and 45-54 have the strongest purchasing power. And people now in those ages fall into 3 generations different generations, the Baby boomer (1946-1965), Generation X (1966-1976) and the Millennial Generation (1977-1992).

We feel the older generation being the baby boomers may not care too much about being health conscious, but if we had the time and money we would want to research this to find out if they are a part of our target market. The younger generation, being the millennial generation is anyone currently age 21-34. Then you finally have the last generation, which is Generation X, who includes anyone currently 37-47 years old. So, out of these 3 generations it will be in our best interest to go with the millennial generation. They have good economic condition, and they have good education background.

It means they can afford higher price of coffee, and the Millennial generation will be the most environmentally conscious, which we will discuss in another part of the paper. III. Competitor Analysis Yuban competes in the premium coffee bean and ground coffee market. While there are numerous coffee brands competing in the North American marketplace, most of these compete on a cost leadership strategy.

Only a few competitors such as Green Mountain Coffee, J. M. Smucker’s Folgers are brands which have small premium distributors such as Fair Winds Coffee and Organic Coffee Co., and all compete in the premium coffee category within the environmentally friendly and fair trade category (Agas, 2006; Statistics, 2013).

These brands specifically differentiate on quality rather than cost. Market Share of Main Competitors: The coffee bean and grind industry is highly fractured in terms of market share. While Yuban only has some 1. 93% of the marketplace, companies such as Folgers and Maxwell House have 21. 6% and 14. 62% respectively but with down market products (Statistics, 2013). Thus, it is quite clear that there is extensive room for further growth of the Yuban brand.

Market Structure: The coffee industry is an extremely competitive one. However, the market structure of the coffee industry and specifically the coffee bean industry that provides the raw materials for Yuban could be described as an oligopoly. The specific characteristics of this oligopoly are, however, more reminiscent of a cartel because a relatively small number of suppliers control the supply and distribution of coffee beans globally (Igami, 2011). Consequently, Yuban, which is a brand within the Kraft Foods umbrella, has limited choice in selecting its supplies.

The coffee bean industry was controlled officially through a cartel structure until 1989 under the International Coffee Agreement or ICA but thereafter market competition with new entrants such as Vietnam eroded the control of this official cartel organization (Igami, 2011). Yet, because coffee bean production is largely limited to certain geographic regions, these countries’ governments express a great deal of control over which entities control production and distribution. Competitive Barriers: There are a number of significant competitive barriers within the coffee bean and coffee grind industry.

While virtually any firm can purchase the raw materials or even the finished product in the form of ground coffee, the packaging and distribution of the product is a much more sophisticated endeavor. The most significant competitive barrier is the establishment of a retail distribution channel which requires negotiated shelf space in retail outlets, distribution channels including warehousing and transportation services and product packaging and design facilities (Amato & Amato, 2009). All of these factors require both material resources as well as managerial competencies that must be established prior to actually entering into the industry.

Sources of Competitive Advantage: Yuban’s coffee retail coffee industry has several sources of competitive advantage. The primary source of competitive advantage for Yuban is its parent corporation’s size, scale and revenues. Kraft as a corporation that earned more than $18. 3 million during 2012 and its coffee products which include Yuban contributed an estimated 8% of these revenues to Kraft’s earnings for that period (Annual, 2012). Consequently, Yuban has access to Kraft’s considerable financial resources as well as its developed competencies in the selling and marketing competencies of major food product brands.

IV. External environment analysis Economic environment: The main emerging markets in coffee consumption especially in Asia and South America market under the background of rising, global demand for coffee during fiscal year 2011 to 2012 rose 2%. During the fiscal year 2012 to 2013, global coffee production stabilized at about 146 million bales (60 kg per bag). Coffee is one of the most widely consumed beverages worldwide and in the United States. There are 183 million coffee drinkers in US and a 7% increase over 2011 in coffee consumption.

Technological environment: Modern technology can improve the production process and achieve economies of scale. Ultimately sophisticated technology can help coffee production in many factors, the product brand, and the coffee beans. Ultimetly, the process of producing good quality coffee beans is relatively the same with some secrets of the drying process that differ. In our recommendations, we suggest the introduction of coffee vending machines, which will be an area that Yuban will differentiate itself from the rest of the coffee market.

Political and legal environment: Low production of coffee beans, causing unstable climate could lead to a protectionist producers. So higher import prices to offset the damage caused by the low production. Yuban coffee is already rainforest certified, and thus the political environment is in its favor and will only cause it to grow more to become a more active leader in this political and legal area. Cultural and social environment: More than 50% of Americans drink coffee every day.

This represents more than 150 million daily drinkers. 30 million U. S.adults have professional coffee drinks daily, which includes drinks such as mocha lattes, coffee, mocha coffees, cappuccino, and etc. 65% of coffee consumption in the breakfast time, between meals, with the remaining 5% and other foods. At the same time, 35% of coffee drinkers prefer black coffee.

V. Company Analysis Yuban is an inexpensive brand of South American coffee. Comparing the same kind of coffee, Yuban provides lower price coffee than other brand in the market. Though Yuban coffee offers a lower price, it also emphasizes the quality of the product. Strength: Yuban provides 100% Arabica beans which are the finest coffee beans.

To support the high quality coffee beans, the company gets the Arabica beans from some of the best coffee growing regions in the world, and the highest quality coffee beans are sourced from some of the finest beans grown in Central and South America. Thus, Yuban will continue to be made with 100 percent Arabica beans but not 100 percent from Colombia, and some of them from Brazil, Peru and Nicaragua and so on. In addition, to avoid ruining the coffee’s flavor, Yuban used a sugar and egg glaze on the beans in a roasting process, ensuring to keep the flavor of the beans a rich taste.

Currently, Yuban is owned by Kraft Foods which is the world’s biggest buyer of Rainforest Alliance-certified coffee. And Yuban has been granted certification with the Rainforest Alliance in 2006. It means that there are at least 30% of its beans are organic. According to the certification, Yuban not only uses environmentally friendly farming methods, it is also required to provide a fair system to worker and efficient farm management. It is to keep the product quality in a high level while still supporting the team who is responsible for growing and protecting Yuban coffee beans. Weakness:

Yuban does not have its own official website. If people want to buy Yuban coffee, they can only purchase it off of websites like Amazon and of course super markets. In a shopping website like Amazon, there are many different kinds of coffee brand, not just Yuban coffee. In fact, if people buy an instant coffee or coffee beans, most of them have a particular brand they buy and will not search another brand’s product. Consumers just focus on what they need and in this situation Yuban is not targeting its target customer because it is sharing the arena with many other coffee options available too.

Yuban also does not have a renowned brand of coffee name or customer loyalty. An official website is useful to let customers focus on your brand’s product, and support more detail information about your company. It is an image that you are selling the customers. Thus, this is a weakness for Yuban coffee. Opportunity: People lifestyles are changing because more and more people enjoy drinking coffee, especially when humans reach a certain age in their life that is acceptable to drink coffee. Yuban can use the change of lifestyle trend to promote its coffee.

After all, Yuban coffee is historic brand in coffee market, and it will give consumer confidence to taste its coffee. Thus, it is a good chance to increase the market share. Moreover, Yuban is owned by Kraft Foods which is one of the top 500 companies in the world. It can use Kraft Foods’ awareness and resources to attract more customers, because people may know what Kraft Foods is, but they may not know what Yuban is. Thus, Kraft Foods can support the confidence for the consumer, when the consumer consider whether to buy Yuban coffee or no. Yuban coffee also does not own different kind of coffee products.

It keeps the style of traditional instant coffee, and launches several different types of coffee to suit customer preferences. So far, there are no other products other than instant coffee or whole coffee beans. Regardless of the season Yuban coffee products do not change where as some other coffee brands may offer different roasts or blends. There is an opportunity here because it can develop some new products which are based on 4 seasons a year. This can help attract more potential customers if we offer something different from time to time but still maintain our original product.

Yuban coffee is also not packaged with much innovation to differentiate itself and sell. Yuban can increase market share through diversifying the products and also focusing on the packaging to offer a design that matches the purpose of it. Threat: Yuban coffee is certified through the Rainforest Alliance, but that only guarantees 30 percent of the beans in any package of Yuban coffee are organically grown. It means that there are 70 percent of Yuban coffee product that do not probably come from ecologically-sensitive farms.

Customer may focus on the 70 percent of Yuban coffee product and worry about the quality of them. Yuban strives to support lower price and high quality product, but the organically grown coffee beans are more expensive than coffee beans that are not organically grown. If more and more customers pay more attention to this, Yuban coffee will lose some customers. Thus, this is one of the threats for Yuban coffee. What’s more, in the external environment, the economic recession will reduce customers’ demand of coffee, and there are many competitors in the coffee market, such as Folgers, Maxwell House, and Nescafe.

However, Yuban coffee does not focus on the promotions or advertisements. It will affect the company’s business. It probably reduces its sales and profits, even market share. Thus, Yuban must confront these problems, and how to solve them. VI. Marketing Information Requirements In our research, we learned that Kraft Foods has a wide portfolio of recognized roast and ground coffee brands that is unique to every type of coffee customer. Their portfolio includes Maxwell House, Gevalia Kaffe, Yuban, and Cafe Collection.

Yuban coffee is made from 100% premium Arabica beans, is mountain grown coffee which offers uncompromising, robust flavor and seductive aroma. According to the Kraft food website, Yuban coffee is made to appeal to those consumers who demand environmentally conscious products. Thus, Yuban coffee is perfect choice for customers who want to make a difference in the world. This strategy of marketing Yuban coffee to the environmentally conscious is part of our objective, however, Kraft foods has not differentiated who the environmentally conscious really are.

We discussed earlier who our target market included, but let us take a closer look and understand them and their habits better. In a study conducted by Generate Insight (2009) “69% of millennial’s surveyed expressed genuine interest in the environment, but they also admitted to a lack of personal involvement in green-related activities. In short, this group understands the why but is unsure of the how” (Gaudelli, 1). Thus it will be our job to tap into how they can be a part of the green movement.

If we had the time and money, which Kraft does have, we would recommend doing marketing research on the three generations which include gen x, baby boomers and the millenials to understand their buying habits especially when it comes to choosing an environmental conscious product over one that is not. VII. Marketing Mix Product: The package of Yuban coffee suggests that its drinkers can have great tasting cup of java and feel that they are participating in doing something great for coffee farmers as well as the environment. Yuban is grown according to Rain forest Alliance Certified standards and also applies organic coffee beans.

Therefore, the product has two benefits, being better for the rain forest and world, and is also organic, which means you can feel really good when you drink Yuban. The package description also comprises information of there being a minimum of 30% Rain Forest Alliance Certified Coffee in each bag which is supposed to help in conservation of the environment as well as support coffee farmers (Cliath, 2007). Yuban coffee has a very distinctive smell than any other coffee. It has a fresh and pleasant smell, loaded with a fresh ground coffee bean fragrance.

It is mild and has no bitter after taste (Cliath, 2007). The introduction stage is the first stage in the life cycle where the coffee was introduced to the market. At this stage there were low sales with high retail prices. Then there is the growth stage that is characterized by rapid increase in sales. This happened when the Yuban coffee was just introduced to the market. It is believed by some industries that Yuban coffee is still in the growth stage, signs indicate that it is in the maturity stage. In the maturity stage, there is high brand awareness, high distribution, and lower prices.

Yuban coffee is believed to be in this stage (Cliath, 2007) however, we feel differently about this. We feel that Yuban can be reintroduced into the market with our recommendation and back track to the introduction and growth stage once more. The coffee is packaged in what seems to be a 12 ounce bags. Today it is packaged in the traditional preserved coffee containers, or in coffee cases. Coffee cases are individually sealed cups of premeasured grounds, designed for use in one cup coffee makers. They are packaged in reasonable pouches for convenience and freshness and the label also contains a K for Kosher on the outside.

There is no indication through whether the bag is made of recyclable material or is (Cliath, 2007). Thus Yuban is not differentiating its packaging in relation to its purpose either. Customer service is required for the coffee brand so as to get the feedback from the customers on what they need improved. The product also does come with a warranty from the company. Customers are assured of the quality in the product. Place: Some products need much less market exposure than others. An ideal market exposure degree makes the coffee available widely enough to reach the target customer’s needs.

This however, should not be exceeded. The ideal exposure degree involves intensive distribution, selective distribution, as well as exclusive distribution (Cliath, 2007). Yuban coffee is distributed both at the wholesale and the retail level. It distributed all across nations of the world. One is likely to get Yuban coffee at the supermarkets, retail shops, and coffee shops. It is also distributed directly by the company to the wholesalers. The product is aimed at individuals who feel that they are participating in the preservation of the environment and minimize or stop further destruction to the rain forest (Cliath, 2007).

With our recommendation of introducing the Yuban vending machine, placing these machines in call centers across the nation, colleges and universities will be another way to introduce our environmentally conscious product to our target market. Promotion: The promotion objectives are to get customers to remain committed to buying environmentally conscious products and our customers will feel like they are doing their part in sustaining the world and environment through their purchase of Yuban coffee. Promotion Blend:

The advertising plan will focus mainly launching a website for Yuban as well as its own Facebook, YouTube and other media site promotions. Though print advertising can be very beneficial we will try not to dive too deep in this area as we are promoting an environmentally conscious product and want to track our carbon footprint. Our copy thrust will be more psychological to ensure that customers are aware that they are doing the right thing by choosing to buy Yuban coffee. Personal selling can be used especially if we show customers who and where the original Yuban coffee beans are grown and cared for.

This can be demonstrated through videos on YouTube and also shared on our Facebook page and website, similar to what Kashi does with their cereal products. Yuban can initiate a reward system that if their coffee packaging is recycled to certain grocery stores they can get a discount on the next Yuban coffee product they buy. Again here, customers can feel good about this buying process. Publicity will be used when we introduce Yuban coffee in the coffee shop recommendation through Tom n Toms and Urth Cafe. It will become recognized as the coffee used in these shops and slowly grow to the coffee used in customer homes and so on and so forth.

Price: The demand for an entirely organic coffee is price sensitive because the cultivation of organic coffee is difficult. Thus, if we can figure out what the minimum requirements are to be certified as organic in FDA standards and such, then maybe 30% is good enough and we do not have to promote that our product is only 30% organic, and we can call it entirely organic if the requirements are not demanding. The pricing strategy for Yuban would be price slightly higher than competitors such as Folgers but only because of the environmental work that goes into sustaining what Yuban believes in.

Also, by pricing our coffee slightly higher we can including something in our promotion that a part of the revenue from sales is pumped back into the environment to fix what matters most in the world environmentally. Yuban can offer discounts if their packaging is recyclable or reusable. We may be able to start an imitation to return Yuban coffee cans or jars to grocery stores to get a discount on their next Yuban purchase. This goes in line with what Yuban is all about and is also a discount to the customer which will get them to continually buy our brand of coffee. VIII.

Recommendations and Implementation Brand recognition is very important and closely connected to the implementation of our recommendations. We recommend that Kraft first redesign and assign Yuban its own website so customers are aware of the different product offering and what this brand of coffee is all about. In the Internet age, people have always enjoyed looking on the different websites for the information they can find on each individual product, however, there is no independent or well put together website for Yuban coffee, which will make it difficult for investors to learn more.

For example, Folgers which is another brand of coffee that everyone knows quite well due to the Folgers jingle actually has its own website despite the fact that it is a part of the Smuckers Company. Kraft food also has a portfolio of coffee that is targeted to different customers, however, Yuban has not been given that independence or leadership to stand alone or gain reputation. Maxwell House Coffee, the second of the 4 coffee brands/products of Kraft Foods has its own website, Facebook, and YouTube. Though Yuban is a product of Kraft Foods, Yuban has a poorly designed website with little information on it at all.

Also, the Yuban page in Kraft Company official site is very simple. Yuban is a coffee made under the Kraft Food line, and it appears they are unwilling to pour in the proper funds needed to fund a separate Yuban Coffee Website. Customers are considered as the backbone of any businesses. Hence, Yuban need to be well aware of their customers’ satisfaction for their products or services, especially in their efforts to track the ‘environmentally conscious’ customer base. Also, Yuban should conclude problems reported by customers and try to fix the problems, which benefit the company’s further development.

In addition, another recommendation for Yuban is that the brand can also develop vending machines that will provide hot coffee and specialty drinks with the touch of a button or two. Yuban is well known as a ground coffee product. However, making a coffee run to the nearest Starbucks or local coffee shop is not an option during the day. Hence, our recommendation of vending machines is also a very convenient to those customers. Especially if the machines are placed in locations such as college hallways and buildings where students are only allowed enough time to grab a quick beverage or snack during their short break.

Placing the vending machines in call centers where hours of operations usually start early in the morning and are located in large multi-level buildings that grind and brew a cup of fresh coffee is would be a strategy which would allow Kraft foods to tap into the coffee machine business because not only would Kraft supply the coffee, which is Yuban in our case, but it would also sell the machine that brews the coffee to these business, or collect some sort of rent or lease for having it.

Our third and final recommendation would be to become the coffee supplier of coffee shops such as Tom n Tom’s and Urth Cafe. Tom n Tom’s has an interesting location base in Los Angeles, Australia, Singapore and Thailand. They do not however carry or brew good quality coffee. Thus, by becoming the sole coffee provider for Tom n Tom’s will be a win-win situation. Urth Cafe is a cafe which offers exclusively organic coffee and tea, Yuban would fall into this category and could provide lower prices than other organically grown coffee.

Though Urth Cafe currently only has location here in Los Angeles, it is only an example of the position that Yuban coffee can take in the market. Appendix Figure 2. 1 Figure 8. 1 Research and make improvement Time Event Cost Note One month Redesign a new website $30,000 Two months Shot video on You Tube $50,000 Three months Research and make improvement Included in customer service Long time Customer service department 200,000 per year Work Cited Agas, G. (2006).

Conscious choice: Yuban coffee. Natural Health, 36(10), pp. 20-24. Amato, L.

H. , & Amato, C. H. (2009). Changing retail power and performance in distribution channels. International Journal of Retail & Distribution Management, 37(12), pp. 1057-1076. Annual form 10-K. (2012). Kraft Foods, Investor Relations (online).

Retrieved from: http://ir. kraftfoodsgroup. com /sec. cfm Igami, M. (2011). Oligopoly in International Commodity Markets: The Case of Coffee Beans. Available at SSRN 1531401. Statistics and facts on the coffee market in the U. S. (2013). Statista Research Publications, 01(05), pp. 1-72. E-imports.

Coffee Statistics.

Retrieved from http://www. e-importz. com/Support/specialty_coffee. htm Kraft. (n. d. ). Your customers care. about the planet. about people.. Retrieved from Oches, S. (2012, November). Meet your customer. Retrieved from http://www. qsrmagazine. com/consumer-trends/meet-your-consumer Cliath, A. (January 01, 2007). Seeing Shades. Organization & Environment, 20, 4, 413-439. Gaudelli, Janis. The Greenest Generation (April 29, 2009).

Coffee retail Essay

1. Introduction The report revolves around the Retail Industry. As it is a very generic industry we have taken the Coffee Retail Market as the highlight of scrutiny. Our scope of study is focused taking in consideration only India as the geographic segment. We broadly look at the Porter’s Five Forces of the industry specifically. Also the complementors are observed and how they affect the retail business of coffee houses. The major players identified in the industry are Starbucks, Cafe Coffee Day, Barista, Costa Coffee, and Nescafe.

Grilling down further the report includes SWOT analysis, External Factor analysis matrix ,Internal Factor analysis matrix and PESTEL analysis. 2. Porter’s Five Forces The porter’s five forces model framework is very helpful in understanding the industry and market closely. It further helps in determining the profitability of the industry as a whole. Also helps the management in taking strategic decisions accordingly. 2. 1 Threat of New Entrants In the present world coffee has become a really popular beverage among Indians.

This makes it an attractive market for the potential companies who are looking up for opening their retail coffee houses in India. Entering the industry is not that cumbersome in case a business house admires to open up a small coffee shop. Problem arises in respect to entering the industry when they aspire to set up retail coffee chains or speciality coffee shops. Due to many established names in the industry like Cafe Coffee Day and Costa Coffee, establishing brand name also becomes an issue.

Companies already with established brand names like Coca Cola, Starbucks can enter the industry easily without much caution as they already have marketing strategies designed in their favour. As a conclusion, we can state that barriers to entry are Low especially for global brands and they can easily enter the coffee retail industry with established marketing strategy, name, and huge capital and financial stability. Otherwise, hard for new and unknown firms admiring to be in the business. 2. 2 Bargaining Power of Suppliers The suppliers for the coffee retail industry in India generally come from southern India i.

e. Kerala, Karnataka and Tamil Nadu. Though these days different types of coffee are becoming popular among the Indians like, Gourmet, Organic, Eco-friendly coffee, and they are being sold for better prices in comparison to the traditional brewed coffee. Still the situation is not really in favour of these suppliers. These coffee growers are poor, competitive and rely on the buyers to a great extent. Therefore, power remains to be limited. This proves to be good for the retail outlets in the business. 2. 3 Bargaining power of Customers.

The whole retailing coffee industry depends upon the customers. So it is of vital importance to satisfy the customers in order to give them a reason to visit again. In this case word-of mouth plays an important role. So, if people appreciate about a particular coffee shop or chain, others are likely to try it. Thus, retailers must find new strategies and techniques of luring away the customers. But it is very important for the localities coffee retail shops to understand that they cannot charge prices as high as the industry players like Starbucks, Barista or Cafe Coffee Day.

They need to maintain a low price profile in order to attract customers. So in case of these small locality retail shops the bargaining power of customers is very high. Otherwise the other coffee retail chains (industry players) do hold some control over the prices charged but it becomes important to consider the customers purchasing power. Otherwise they would switch over to other brand as there is no switching cost for them. This establishes that the bargaining power of customers is high and really important measure for the conduct of efficient business.

Also these coffee retail chains should understand that the customers can also make the coffee at home which justifies their higher bargaining power. 2. 4 Threat of Substitute products There are a lot of substitutes for the coffee retail industry in general. Specially, the soft drinks industry has always given fierce competition. Also, other products like ice cream, candy, and beer are also a part of substitute products. It becomes important for these retail houses to make coffee more popular and drinkable amongst the masses. People should never consider switching from their coffee shops.

But with changing preferences of Indian masses in favour of coffee the players within the industry are making maximum efforts in favour of differentiating its products from the substitute products. Also strategic decisions and marketing activities are initiated to shift the customer base from the substitutes resulting in high demand of coffee from the retail sector. So the threat of substitutes is also moderate. 2. 5 Competitive Rivalry within the Industry Considering the entire coffee retail industry as the scope of study, there are number of retail chains serving the industry effectively.

To top the list is Starbucks, and than many more such as Cafe Coffee Day, Barista, Costa Coffee, Gloria Jeans, Nescafe, Bru Cafe, Dunkin Donuts, Mc Donalds, and small Kiosks and coffee points are also emerging in localities. They all are different in size and serve different segments of the society but are competing with each other in some or the other way. Each retailer follows different marketing strategy to lure away their target segments. Also with moving times the industry is occupying a stable position in the retail sector and is saturated .

Therefore, we can say that the competitive rivalry though on the higher side does not affects the profit margins for the industry. 3. Complementors There is a sixth force to the porter’s five forces model, the power and competence that the complementors provide to the business. The complementors are those that help in selling and adding value to the existing products of the industry. When these products are used together they help in satisfying customer demands more effectively. It is also to be believed that these complementors play an important role in drawing in the demand for the industry.

This in turn helps in scaling up the profits. Conversely, the poor products being manufactured or supplied by the complementors may harm the profits and demand. So it becomes important on part of managers to analyse all the six forces and then think systematically how their strategic choices would affect the industrial competition. Majorly the complementors can be associated with high-tech industries wherein they literally help in hiking the sales and profits for the industry. In our case, coffee retailing is not an industry that has any such complementors that would help in boosting sales or profits.

But certain products are identified by us that in a slight way might affect the coffee retailing business. Like, merchandising, snacks offered for sale in coffee retail chains. Merchandising includes apparels and coffee mugs and other products such as soft toys and key chains available for sale by many coffee retail houses Cafe Coffee Day, Barista, Starbucks etc. Snacks are offered mainly by all the coffee houses in the form of cookies, patties, croissants, sandwiches, pasta, oats etc. So these complementors directly help in pushing up the sales of the business. 4. SWOT Analysis 5. External factor Analysis External strategic forces.

Weight Rating Weighted score Comments Opportunities 1. India Large market .18 4 .72 Second most populated nation of the world 2. Increase in spending power .15 3 .45 The GDP or the purchasing power is rising adequately 3. Youth population .13 4 .52 Youth are the ones who are more prone and exposed to cafes 4. Favourable labour cost .07 2 .14 Easily available manpower at lower costs 5. Favourable infrastructure cost .07 2 .14 Low and easy access to infrastructure 6. Opportunity to serve the tea drinking segment .05 1 .05 A major portion of population is attracted towards tea drinking. Threats 1. Low per capita income.

.07 3 .21 Huge requirement to extend products at competitive prices 2. Increasing health consciousness .04 1 .04 3. Competiton from fast food joints .04 3 .12 Mc Donalds, Pizza Hut, Subway 4. Hiking coffee prices .06 3 .18 5. Tea drinking segment .10 4 .4 This segment consumes tea at least twice a day 6. Rare habit of travelling to cafes .04 1 .04 Total score 1. 00 3. 01 The EFE matrix is made by comparing the coffee industry with the other beverage industry in India and weights and ratings are assumed according to personal knowledge. Considering the external factors effecting the industry EFE matrix is created.

A score of more then 2. 5 reflects that the industry has more than average capability in response to external forces particularly the beverage industry in India. 6. Internal Factor Analysis Internal strategic forces Weight Rating Weighted Score Comments Strengths 1. Increasing Coffee demand .18 4 .72 Changing lifestyle leading to coffee adaptation 2. Favourable labour relations .15 3 .45 3. Non-perishable commodity .12 4 .48 Coffee is a non-perishable commodity which has no threat of being spoiled easily. Weakness 1. Low dominance over price .15 2 .3 Due to competitors in the industry.

2. Heavy export of coffee .05 1 .05 Low domestic consumption 3. High operating cost .2.5 1 .25 Total 1 2. 25 In the above tables, Column 1 depicts the strategic factors Column 2 depicts weight assigned to each strategic factor from 0 to 1 i. e. not important to most important Column 3 depicts the rating assigned to each factor wherein a scale of 1-4 is used. It signifies industry’s present response to each factor. In EFE matrix 1-4 is responses from poor to superior and In IFE 1-2 is major and minor weakness and 3-4 is major and minor strength. Column 4 gives in the weighted score.

Column 5 represents the comments for the strategic factors Since internal factor analysis is used to judge wether the company is performing inline with the expected strengths and weaknesses or not. Generally an average score of 2. 5 on 10 is expected. After the analysis, we conclude that the internal weigted score of coffee industry in India is almost in line with 2. 5,reflected that the respected industry is running as astrong business internally as well. 7. Value Chain It is a series of activities aimed at delivering maximum value to a customer, through a product or service, at the minimum cost.

This model analyses how a firm procures raw materials, adds value to these material through various processes and sells the finished product to the ultimate consumer. All these functions are performed with the objective of maximizing customer value at minimum cost. The value chain of the retail coffee industry consists of the following processes and activities: 7. 1 Primary activities 7. 1. 1 Inbound Logistics: This is primarily concerned with the procurement of raw materials in the form of coffee beans and various types of dairy products, required by all the coffee retail outlets.

The aim is to procure high quality materials so that best of the flavours is served to the customers. Cafe Coffee Day does in-house sourcing through coffee estates owned by the company. Starbucks Coffee and Barista Lavazza chains have sourcing agreement with Tata Coffee. Cafe Nescafe, owned by Nestle works through community farming, where it provides high yielding quality, disease resistant seeds to the farmers for improved productivity. The company provides regular and fair remuneration to the farmers. Dairy products are also sourced through community farming. 7. 1.

2 Operations: There are various operations involved in the business of retail coffee outlets. The most important operation to be performed is roasting of the coffee beans, which gives the taste, flavor and smell to the coffee. Tata coffee provides roasting services to Starbucks and Barista through its own roasting facility. The outlets undertake all the operations to run an outlet like preparation of items, serving them to the customers and billing, etc. Starbucks and Cafe Coffee Day work on the model wherein order is taken and served to the customers on the table, whereas Barista works as self-service outlet.

7. 1. 3 Outbound Logistics: The customers are serviced through company owned or licensed retail outlets, which may be in the form of lounge, highway cafes or store-in-store. The stores are set up in centralized locations, which are easily accessible to the customers, in order to achieve maximum footfall. According to a business standard report, top 40 cities in India have around 1700 coffee outlets. CCD is the largest coffee chain in India with 1200 outlets, followed by Barista having 154 outlets and Starbucks having 21 outlets. Starbucks also sells some of its products through retail stores and super markets.

7. 1. 4 Marketing and Sales: Companies undertake various promotional activities to attract a large number of customers, which may be in the form of sponsorships and co-marketing initiatives. Customers are also benefited through loyalty card programs, carrying various offers and advantages. Value meal combos attract students who have low purchasing power. Marketing is also done through TV and media sources. All this is done to maximize sales. 7. 1. 5 Services: Coffee retail industry relies on the quality of service to the customers. These chains don’t sell coffee, they sell experience.

For this, highly trained staff is recruited to provide high quality customer service. Other services offered are newspapers, magazines and free Wi-Fi to the customers. 7. 2 Support services 7. 2. 1 Firm Infrastructure: In order to have a smooth flow of operations, the companies need to have sound infrastructure for accounting, planning, finance, management, etc. The retail outlets have inviting interiors and comfortable seating space. 7. 2. 2 Human Resource Management: Human Resources are the most valuable assets of any organization, and same also goes with these retail coffee chains.

Highly trained people are recruited to provide high quality customer service. Various training and motivation programs are conducted to further enhance the skills of these people, which will add to the customer value. 7. 2. 3 Technology: Companies have started using latest technology to perform their operations. Computerized roasting machines are being used to maintain the consistency in the flavour of coffee beans. Barista has installed control systems like Total Quality Management to ensure the quality of materials distributed. Latest software is being used to achieve maximum operational efficiency.

7. 2. 4 Procurement: In order to achieve maximum customer satisfaction, companies need to procure raw materials that are of best quality available in the market. Companies also need to source furniture, kitchen equipment, utensils, etc. , which act as complements in the operations of coffee retail outlets. All the above-mentioned activities aim to maximize the customer value at the minimum cost. 8. PESTEL Analysis A strategic framework of macro economic , political, economical, socio-cultural, technological, environmental, and legal factors include :- 8. 1 Political factors.

Indian coffee board has proved a helping hand to the coffee industry of the same after 1996 de-regulation of coffee marketing. after it it has grown up as a free market leading to a four times growth in its trade. around 70-80% of the country’s production is exported . A coffee produced with set standards named fair trade coffee is one of the major constituents to coffee retailing. the one managing this in the country is fair trade alliance , kerela. Starbucks in India is certified to fair trade coffee provider ,whereas barista lavazza has fair trade coffee compliance abroad buit not in India and same is the case with dunkin donuts. 8.

2 Economical factors Development in lifestyle of people and coffee turning as a delighting factor in the economy ,the consumption of coffee is taking a pace. Increase in consumption by urban young generation is expected to take the industry at a whopping business of around 2250 crores by the year 2017. Though it currently stands at Rs. 1100 with its major players trading like barista, CCd etc. The infrastructure developements, the enhancing demand and smoothing trade procedure leads to incremental trade for the industry. A coffeeproduced with set standards named fair trade coffee is one of the major condstituents to coffee retailing.

The one managing this in the country is fair trade alliance,kerela. Starbucks inIindia is certified to fair trade coffee provider , whereas barista lavazza has fair trade coffee compliance abroad but not in India and same is the case with dunkin donuts 8. 3 Socio- Cultural factors Catering to the ever increasing population of the country, it is the responsibility of the businesses to look for to the socio economic factors in place . For instance, the development in lifestyle of people is leading to increase in the coffee consumption in the country.

Keeping these factors into mind businesses like cafe coffee day claims of training 400-500mpeople every month to enhance employment and as a part of responsibility to the society, MC Donalds along with CCD keep staff to clean right under your feet. Similar to those dunkin donuts provides 21 day training program to the staff to help customers better. As a part of social responsibility 50% Costa coffee employees in Delhi and NCR are deaf people.

8. 4 Technological factors With the changing lifestyle and gezmo addicted generation, one cannot afford to have a internet free cafe . The presence of bluetooths and wifi within the outlets of coffee companies is the basic requirement to get on the customer to the shop. The comfort of checking the emails, organising commercial meetings in the coffee shops an sitting there for hours requires the business to have a wifi enabled cafe. For eg -starbucks (India) uses help AT&T(India) to provide a click, no password facility for easy internet accessSalong with there mobile apps and various online facilties. Moreover whotspot also helps in proving in these facilities.

Barista lavazza uses strategy ‘ internet with mugs’ named strategy to lure customers in contract with spectranet. Along with this value addition it also provide facilities like hot deals with customers downloading deal on their tablets or smartphones and avail the services on the spot. 8. 5 Environmental factors The weather conditions play a major role in production of coffee. Environmental factors in case of coffee is the seasonal dependecy of the amount of coffee produced across different seasons.

For instance:- with on time monsoon this year in the country,the coffee production in southern area of country raised upto 8-10%. in india other factors on which the coffee production depends are the pest infestation and limitation of mechanisation. conserving water, recycling,energy and plastic management etc are also few termenologies which companies takecare off.

8. 6 Legal factors Legal establishments popping up prooved as aiding cushions to the domestic market of the industry as well along with the outside trade. with liberalisation of industries in 1991 this particular industry was also benefited. One of the drastic help was with the FDI in retail industry i. e around 51% which turned trade more smoother then before.

Tarrif charges in india are 40-605 on raw material and 60-100% on semi finished goods. Mc Donalds bring its coffee reatailing from its brand mccafe originated in melbourne,australlia. Starbucks got the way to enter in Indian markets after FDI was allowed by government but still restriction to get 30% of sourcing from SME’s of India. Indian institute of plantation management, Banglore (IIPM)usually takes up the responsibility of coffee retailing in the country along with its entrepreneurship and development. 9. Conclusion The coffee retail industry in India is on the expansion path and has doubled over the last decade.

The present size of the market is estimated at Rs. 1520 crore, which is expected to reach Rs. 3775 core by the year 2018, a CAGR of around 20%. Earlier there was no such demand for moving out of the houses for coffee consumption but the emerging coffee retail chains have changed the scenario triggering consumption need amongst the young adults. Serving the evolutionary phase exceptionally well, these coffee retail chains are overwhelmed with the response in the Indian market are planning further expansion of their networks in the country.

The above analysis of porter’s five forces highlights that the profitability of the industry is expanding with westernised culture being adapted by Indians. (Porters 5 force analysis). The snack and merchandise industry are complementing the coffee retail industry very effectively thereby leading to inflated sales and profits for these retail houses. (complementors).

Reflected by the study of strategy of coffee industry hereby conclude that the Indian coffee industry is a strong respondent to the external factors (EFA matrix) as well as internally also industry is doing well(IFA matrix).

To increase the figures of sales and profitability, a number of varieties of coffee and eatables are offered, targeted at different price-points of the market. The companies are using innovative strategies and marketing tactics. A large young population, rapid urbanization and changing lifestyle, coupled with not-so-difficult entry into the market have attracted a large number of domestic and foreign players in the country. Global brands like Starbucks are keen in investing in the Indian market due to the huge potential it displays.

This is evident from the sizeable revenues that these brands have generated over the years. (PESTEL and Value chain). Only home grown coffee is served in the Indian market as coffee import attracts a duty of 120%. Coffee beans are sourced from company owned estates or through the means of community farming. Companies with established brand names are able to run their business successfully, whereas small business houses are in a way struggling to compete in the market.

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