Why Investing is Important an Example by

Why Investing is Important Investment is not different from gambling. Its concepts revolve around taking risk of your own possession for the hope to gain more out of it. Investing deals with money-making and smart and interesting ways of making money. It requires great decision-making skills. Need essay sample on "Why Investing is Important" topic? We will write a custom essay sample specifically for you Proceed Why should I mind such an investment? Some professionals who earn huge salaries in the present times might ask this question. They think that someday, in the future when they would be already retired in their own jobs, their social security pensions would support their living. But in reality, to somewhat support someones necessities would be a big thing to think about and should not just be relied to the help that would be given by such pension agencies. That means that relying to the benefits would not promise a comfortable life in the future. Security is the most obvious reason why someone should invest. No one can tell you when your car would retire, your house would be ruined by a tornado, your daughter would catch flu, and every other unfortunate thing that require big money just to be surpassed. And when these things happen, you would not be left crying in misery or wasted just because you did not suppose those things to happen. Preparing money from your savings might be a great idea than just to pray that those adverse things would not happen. In modern times, to easily earn money in no time is a prerequisite to live comfortably, unless you are born to be supernaturally lucky that you can sweat diamonds. Its a must that every person should always think about. Why worry investing? Investing is not that difficult at all. Investing is just allotting funds for little money-generating endeavors that would also be interesting for you. An axiom says, You should not work hard for money but the other way around. References: Mousseau, Jessica. (Mar. 03, 2007). Why Invest. Retrieved June 12, 2007, from Associated Content: The Peoples Media Company. Cunningham, Kolb and Cunningham, Rose Mary. (1991). Intro to Investments. Kolb Publishing Company Fisher, Kenneth L. (1984). Super Stocks. Dow-Jones Irwin. Fisher Philip A. (1980). Develping Investment as Philosophy. The Financial Analysts Research Foundation

Concept of Niche Marketing

Concept of Niche Marketing Introduction Niche in French directly translates to nest. Niche marketing thus has the connotation of being cagey meaning it’s focus is on a minute portion of the larger product and service market whose needs are not met in a satisfactory manner (Groucutt, 2004), (Armstrong, et al., 2007).Advertising We will write a custom essay sample on Concept of Niche Marketing specifically for you for only $16.05 $11/page Learn More Most businesses, that are market leaders nowadays, began with an interest in serving a particular small composition of people and developed into bigger outlets with improvements in their products (Moore and Paree, 2009). Niche marketing, however, does not mostly apply to big companies but rather medium to small enterprises that produce specialty products not available in the mainstream markets (Dalgic, 2006). The market size can be geographically chosen, targeting an age group or ethnic community or it can also be a variation of a com mon product not produced by any other firms. There is no difference between identifying potential business ventures with identifying niche markets. In fact, most people who have successfully ventured into the niche market business do so accidentally. The guaranteed way to success lies in persistence and recognition of vacuums in product and service markets. For anyone starting a business, there are several factors they have to consider. First, there is a need to identify the particular niche market you intend to serve and its characteristics. Secondly, one should ensure that the business they are venturing into rhymes with the specific professional goals they harbour. Another factor that should be considered is resources at hand and those that lack and need acquiring. Lastly, one should develop a business plan that details extensively the way they intend to start, run and market the business. A description of the business, an analysis of the niche market, a mission statement, strate gies and objectives of the business, plan of marketing, description of operations, expected sale figures, risk analysis, a financial plan and the expected source of assistance are all details that should be considered and detailed in a business plan.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Case study In the United States, there are immense opportunities that are associated with agriculture guaranteed by the diversity that the population possesses, in terms of the different cultures, hence different staple diets. For example, food that is the staple diet for African-Americans in Harlem is not the same as that consumed in China town, both of these areas being in New York City. Quality, adaptability and novelty are the key factors that determine success in the agricultural industry. As niche marketing is mostly done by small to medium enterprises for a specific market, we wil l discuss Rockridge farm in Seattle, US (DePhelps et al., 2005). The farm is about 41acres in size and specializes in the growth of Asian pears, Japanese and Chinese cucumbers, hothouse tomatoes and bamboo. These four are their specialty crops. However they also grow wasabi, ginseng, lettuces, Asian greens, shiso and a range of over fifty other niche market products that target the Asian community in the region. Their products are marketed using a wide range of methods and they have a solid business plan that they follow strictly. They have also ventured into many different kinds of farm products and this strategy is aimed at spreading risks. Rockridge farm is structured as a sole proprietorship enterprise and is owned by Wade Benett. He has created a model that allows him to market his products using a wide range of avenues. This, he says is aimed at reducing the over reliance on a single market, which may be counterproductive. His products are sold through farmers’ markets, farm stands, grocery stores and restaurants. He began by selling their products in the Seattle farmers’ markets as an experiment and has since diversified in a period of the last 20 years. Having built a good reputation from his top quality products, he has the luxury of choosing which market to serve and he prefers the markets that sell food products only; unlike those that sell both food products and crafts. This, he claims, is because he likes his customers to be solely focused on his products so that they are in good quality when they are purchased by the eventual consumers. He adds that he likes to reduce damage resulting from over handling of his products and prefers markets that are well regulated with clearly laid boundaries for engagement and with fair competition.Advertising We will write a custom essay sample on Concept of Niche Marketing specifically for you for only $16.05 $11/page Learn More There are two permanently employed staff mem bers at his farm that are charged with marketing. Together with his wife, wade monitors profitability of his operations while gauging customer satisfaction and the competition. Uniqueness, he claims has been the reason he remains competitive coupled by the fact that he deals with products that are not in oversupply. Wade has also been marketing his products to specific restaurants and most of the other restaurants access his products at the farmers’ markets. There are also those who request that specific products be grown for them, which he sells at a retail price. The products are identified by the farm name and hence a reputation has been built out of this. Most repeat customers in big restaurants are attracted to the food because they know it is grown locally, with care and in the best conditions. Selling to restaurants is more stringent with more boundaries unlike marketing to farmers’ markets. There are more expected in terms of delivery times and the quality and quantity required. However, with this increase in expectations come better responses about product quality. With restaurants, wade argues that he could not afford to fail to deliver in case there is crop failure. He thus asserts that in order to avoid this, he is forced to over plant which curtails production of other products hence a reduction in expected sales figures. Wade markets his products through community supported agriculture. Members of his community usually pay a subscription fee and are given priority whenever they require a product. He has however capped this subscription to only 21 people as he points out the fact that more subscriptions could lead to delivery failure whenever a product is in short supply and hence loss of customers and a negative reputation. Customers with these subscriptions can pick their products either on-farm or in the farmers’ market. Of all the families he has accorded subscriptions, 90 percent have one spouse being of Asian descent and are in a high income bracket.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The program is labour intensive as products have to be packaged specifically for these clients. He also points to the fact that this program is not as profitable as his other ventures but says that since the subscribers pay for the products during the month of April, he is capable of accurately crafting a budget during this otherwise slow period. Another avenue for marketing the products is with the use of farm stands. This entails displaying his products on his neighbours’ farm stands and it gives him the exposure needed for his products and also adds to his diversification policy. He says that due to insurance liabilities and expense in logistics, he stopped operating his own stand and preferred other people’s as it was ultimately cheaper and boosted his products sales. Displaying his products, which are labelled with his farm name, on other farms’ stands helped market his products and build a reputation. He has, however, decreased the number of stands he sell s his products from; to four, as he says that operating from many stands floods the market and this could drive prices down. There is also the intrinsic value of selling through other people as they benefit financially from the sales. This is part of community building that Wade takes pride in. Grocery stores also market Wade’s products and nearly 50 percent of his total production is sold through this avenue. He sells through â€Å"Mom and Pop† stores that are primarily frequented by Asians as well as in Seattle’s international district. It was illegal, several years back, to import fresh bamboo shoots and hence a large untapped market for them was available, as they comprise the Asian staple diet. It is now legal to import bamboo shoots but Wade says that this has not stunted his sales in the product as he had already carved a reputation for himself. As a last result, Wade frequently sells to distributors although he claims it does not please him as he cannot control what wholesalers do to his products. The figure below shows Gross Income from Sales, 2003  iversification as a Strategy in the Business. Diversification as a Strategy in the Business Rockridge farm markets its products through a number of different channels. The major factor that makes this diversification model successful is cost cutting. The farm saves on transportation costs and also on delivery. It is possible to avail the products to different outlets at the same time. They also use the same packaging to deliver to the different markets. Where uncertainties occur in the market causing prices to go down, the firm is somewhat cushioned against excessive losses in comparison to other businesses that take all their products to wholesalers. Wade avoids advertising as he says it is unnecessary because his niche market is not that large (Bose, 2010). He however gets published at least once every month on the local newspaper, magazine articles and also through letters to the editor. The greatest tool for his success in promoting his product comes from his many years of consistently availing to customers top quality products. He, on occasion, requests feedback from his customers and interrogates them on how they came to learn about the farm. Most people get to know about his farm since his packaging is unique and it bears the brand name which has acquired a good reputation. Grocery stores focus on products that have a long shelf life and look good on the outside which according to Wade are tasteless. He however recognizes that those products generate more money for store owners (Economist, 2006). The people that care about taste are particularly home owners and restaurants that are judged according to the quality of the meal. These are the people that Rockrigde is interested in and strives to keep loyal. Marketing Strategies versus Production Techniques Rockridge emphasizes good customer relations which are reflected right from the production stage. The re is reduced usage of chemicals on the farm and use of sustainable techniques that are fundamental to the longevity of the farming practice. Other practices aimed at building confidence around their brands include not raising animals that may increase the risk of pathogen contamination and encouraging customers to visit their farm frequently in order to understand the mode of operations first hand. Wade further explains that he has never held any Food Alliance certificates but rather depends on the reputation he has built by being in the market for product promotion. Growth of the various exotic and lower return crops is both labour intensive and engages extensive research on the best practices. There are many factors considered that make the difference between good and bad products. In order to consistently produce the best products, Wade has adopted the best practices that include possession of agricultural know how which focuses on the optimum conditions needed by every crop gro wn, at different stages of growth and during the diverse seasons in a year. Since 1992, the farm has been making decent profits and not once did it incur a loss. The gross sales from all markets have been steadily growing each year. The plan that Wade has is to increase his markets by one or two each year so that he consistently gets returns on his investments. He attributes his current state to the reception he has received by diversifying and by focusing on the customer. He has also endeavoured into other Asian cultural practices that go beyond diet in a bid to strengthening his relations with the community since they are his primary target. Wade continues to experiment with different crops in order to remain profitable. He has, in the same light, dropped some of the products he used to produce when their reception diminished. The factor that determines whether he farms a specific type of crop or not is whether the customer needs it and is willing to pay a premium for it. Another factor he considers is whether the product elicits interest from him or not. He says that he would not like to farm a crop he does not care for. In order to reduce wastage of products that are over flooded in the market, Wade has invested in equipment that juices certain fruits e.g. pears that are popular but also common. This is another source of revenue that he has ventured into. The farm acquired a license, 1n 2004, meant for the production of hard cider and vinegars. This made it possible for the conversion of lower value plants into high value end products. When prices for pears rapidly decreased in 2003, he juiced them adding raspberries into the juice and sold it at a premium and this proved to be very successful. He points out the fact that, for any business to grow and remain profitable, it must consistently adapt its products to the niche market (Joshi, 2005). This has been very essential at Rockridge as it has helped the business stay afloat even in the most adverse condi tions. Impeccable record keeping, constant involvement and consultation with staff members and experts have assisted Wade’s business immensely. Additionally, his close contact and involvement in the business on a daily basis has also played a major part in its success. He forecasts his sales trends for even up to two years while training a keen eye on other market factors. He can know if and when there is going to be a flood in the market for a particular product and thus predicts the tanking of prices. This information he acquires by making sure he knows what his competitors (Ries and Trout, 2006) have planted and when those crops will be in the market. Conclusion For Wade, his business is his lifestyle which he then translates to a source of revenue. He has passion for the work he is engaged in and this, he says, is what makes the difference between success and failure. He has segmented his market by Geography as he serves a small part of the larger Seattle market. His mark et has also been selected using ethnicity as a factor reflected by the fact that his primary clients are of Asian descent. This has made him focused solely on providing products that are reflective of the staple diet of the Asian people. He has employed a number of techniques that enable him to consistently produce only those products that are not flooded in the market and elicit interest from this segment. In our discussion earlier, we identified niche marketing to be focused on a vacuum in the market where the mainstream marketers do not have products to satisfy that particular market. Rockridge farm can thus be considered to have capitalized on this opportunity and has consistently continued to produce only goods targeting this vacuum. They have, therefore, carved a niche market for themselves and are excelling at satisfying it (Chaston, 1999). Consistency over the years and the possession of a solid business plan, have been the major contributors to the success story at Rockridg e. Employee engagement and use of other labour intensive methods have ensured that the crops harvested in the farm are of the best quality. To have the perfect market mix is the utmost important rule of marketing (Belohlavek, 2008) and Wade seems to have gotten his mix right. The place he chose to market his products is both fertile and large enough to sustain his business. It is also close to the target market hence little costs are incurred in shipping. Wade has done a good job in selecting his target market, ensuring that he has repeat customers and has a secured future. He has, consequently engaged in a number of promotion mechanism suitable for his business without incurring extra expenses. Lastly, for any business to be successful, one must get a premium for his products. Wade only farms crops he believes will fetch the best price in the market. He, therefore, endeavours into other methods like juicing and production of vinegar in order to raise the value of those products tha t are flooded in the market. There are many success stories in the world today; arising from the successful identification of the niche market and Rockridge seems to be doing a great job towards success. References Armstrong, G. M. et al. (2007). Marketing an introduction. New Jersey: Pearson/Prentice Hall Belohlavek, P. (2008). Unicist Marketing Mix.nd. Blue Eagle Group. ISBN 978-987-651-011-0 Bose, C. (2010).Modern Marketing Principles Practice. New Delhi: PHI learning private limited Chaston, I. (1999). New marketing strategies. London: Sage Publications Dalgic, T. (2006). Handbook of niche marketing: principles and practice. New York: Haworth Press DePhelps, C. et al. (2005). Profitable Niche Marketing on Rockridge Farm. Idaho: Rural Roots and University of Idaho Research Team Economist, (2006, November 11). Swarming the shelves: How shops can exploit peoples herd mentality to increase sales. The Economist, p. 90. Groucutt, J. et al. (2004). Marketing: essential principles, ne w realities. London: Kogan Page Limited Joshi, R. M. (2005). International Marketing. New Delhi: Oxford University Press ISBN 0195671236 Moore, K. and Paree, N. (2009).Marketing: the basics (2nd ed.). New York: Routledge. Ries, A and Trout, J. (2006). Marketing warfare. New York: McGraw-Hill Companies

Alternative Finance Models Essay Example | Topics and Well Written Essays - 2000 words

Alternative Finance Models - Essay Example After the end of World War II there have been various innovations in the Banking sector and communication and technology have played a major role in aiding these innovations. The question is, however, whether the financial system that countries have been following is reliable or not. The system failed in the recent financial crisis and many countries such as Bangladesh are now finding alternative finance models such as Grameen Banking and the Gulf countries have now introduced Islamic Banking. Both of these models have certain attributes that differentiates them from the conventional Banking system. The choice of the system depends on the nature of the country and the series of policies being followed by the government. According to the World Bank estimate, around 1.3 billion people live on less than a dollar per day. Grameen Bank system was formed in 1976 by Muhammed Yunus, with a vision to eradicate poverty from Bangladesh. (Anon., n.d.) This Bank is designed especially for the poor who have no education, no credit history and no assets to offer to the Bank (Latifee, 2008). The bank also aims to empower poor women who are usually the bread earners of the family (Anon., n.d.). Women in Bangladesh are engaged in activities such as farming or raising poultry and they need small loans in order to meet their daily needs. Furthermore, women in Bangladesh are not educated and lack the basic knowledge about banking activities. The Grameen Bank was formed especially for women in the rural areas who do not have the finances to pay for their children’s education or to pay for basic necessities such as food and water. With the Grameen bank designed especially for the poor these women and men can now go to the bank and avail the financial services like any other individual residing in the urban area. For example women can get loans from the Bank and start up their own business. The loan can be repaid within a period of 3 months or 3 years depending on the amount. There are no requirements for getting the loan but members are usually required to memorize the resolutions proposed by the Bank. These resolutions include statements such as â€Å"I will use clean drinking water, I will wash vegetables with clean water, I will use contraception when possible† and so on. It has been estimated that the population growth in Bangladesh fell after the Grameen Banking system was introduced (Yunus, 1999). The concept of resolutions was Muhammed Yunus’s idea and he wanted to educate the women of his own country and help them improve their standards of living. His strategy has worked and over 5% of borrowers from the Grameen Bank rose above the poverty level and extreme poverty decl ined by 70% in a span of 5 years (Yunus, 1999). The Bank also serves the beggars though its struggling members program. The main features of this program are: The rules of Grameen Bank do not apply to these members and they can form their own rules All loans given to these struggling families are free of interest and they can pay installments in any way they are comfortable with The beggars are not asked to give up begging but they are asked to engage in other income generating activities. The main idea behind this step is to slowly move these beggars away from beggary and introduce them to other income generating activities. Such programs help the poor in ways one could not have imagined. Grameen Bank is probably the first Bank in the history of Banking which is 100% made for the poor and of the poor. The poor own the Bank; after a year of membership they can buy shares in the bank and become members. According to the founder Muhammed Yunus around 94% of the bank is owned

Reflection on rural externship Essay Example | Topics and Well Written Essays - 1000 words

Reflection on rural externship - Essay Example She then came to the pharmacy for assistance. While observing her, I felt very sympathetic towards her and the pain, discomfort, and the sickly feeling she must be going through. What was good about the experience was that I was able to observe how the pharmacist asked her questions. Our pharmacist was very sympathetic and it helped the patient relax and be more at ease. I was also able to note the right questions to ask a patient with fever – questions which help determine a correct diagnosis for the patient. Fever is a higher than normal body temperature (for most people, higher than 98.6 F or 37 C) and is triggered by an infection or an inflammation (eMedicine Health, 2010). During fevers, the body’s immune response is first triggered by pyrogens (substances which cause fever). These pyrogens often come from outside sources like food, air droplets, water, and similar substances ingested or inhaled. These pyrogens then interact with the existing pyrogens in the body and cause the hypothalamus to increase the temperature set point in the body (eMedicine Health, 2010). As a response to this hypothalamic response, the body begins to shiver and the blood vessels constrict. These symptoms were manifest in the patient. The pharmacist explains to the patient that the patient’s fever may be attributed to a viral or a bacterial infection and further asked the patient pertinent details about her food and water intake. The pharmacist also explained that contact with other people who had the flu, cough, or colds could have triggered her fever. The patient said that her daughter was having flu at the moment. The pharmacist recommended Panadol to be taken every four hours. The pharmacist asked the patient if she had any history of problems with kidney or liver function. She replied in the negative. The pharmacist also asked if she had an allergy to Panadol or to paracetamol in general. She was also asked if she was on a low sodium

How to be Creative Essay Example | Topics and Well Written Essays - 2000 words

How to be Creative - Essay Example All animals do possess brains, and have been provided with varying levels of creativity by nature. A sparrow’s nest differs in style and capacity from that of an eagle. A honey bee stores honey in tiny pores. Likewise, rabbits dig holes in the earth to make their tunnels. All of these are signs of creativity in non-human living beings. The fact that humans are the most creative among all living beings can be estimated from the fact that all development in the world is the result of the discoveries of humans. Humans discovered ways to fly not only in the air, but also to float in the space. Humans constructed skyscrapers, invented trains and ships, and developed satellites that record information 24/7. From the first day man was sent on the Earth till today, man has been creating things that would facilitate him and improve his standard of living. The world in which we live today is much different form the way it was few centuries back. Rapid industrialization and advancement i n the field of science and technology has brought an altogether change in the life on Earth. All of this is not the result of the efforts of a single person, community or a group of people. Instead, all human beings have been playing their respective roles in developing the modern world from time to time. The modern world is the outcome of creativity of all human beings. Therefore, there is no doubt in the fact that creativity is a naturally occurring phenomenon and occurs in all living beings, but varies in extent depending upon the level of sharpness and intelligence. This paper discusses some of the ways in which creativity can be improved. Creativity as a necessity of modern age: Competition in the contemporary age has grown manifolds in all fields as compared to the past. With the increase in general awareness, people have become highly educated in order to make full use of the emerging opportunities. This has increased the competition in the market scenario. Business entrepren eurs are looking for ways to be more and more creative and innovative in their approach so as to gain competitive advantage over their parallels in the market. It would not be wrong to say that creativity is the need of the hour in the current business practices. This has generally raised the interest of people in creativity and ways and means are being suggested on organizational level in order to improve individuals’ creativity. The concept of creativity: In order to find out ways to increase creativity, it is customary to discuss the basics of the concept of creativity. Creativity is neither something that can be created nor can it be called as an event that would happen occasionally. Instead it is within ourselves and needs to be explored. It cultivates in human mind and nurtures as we go through various experiences in our life. It slowly shows up in our thinking as we mature. â€Å"There is virtually no problem you cannot solve, no goal you cannot achieve, no obstacle y ou cannot overcome if you know how to apply the creative powers of your mind, like a laser beam, to cut through every difficulty in your life and your work† (Tracy cited in Kotelnikov). Creativity is more often than not, an involuntary action. An individual can not intentionally raise his/her level of creativity at a particular point in time when he/she might need it the most. Creativity can not be invited.

Knauf Corporation Case Study

Knauf Corporation Case Study The following assignment is a case study, in which we are going to analyze the Knauf Corporation worldwide, but mostly the operation of the business in the European countries. The objective of this assignment is, by analyzing the operation of the company inside Europe to be able then to recognize, whether we see a common strategy or if there are any differences on it. In the first part, there is a research about the organizational function and the activities of Knauf worldwide and mainly in the European environment, starting from the past until the year 2009, where you can see the latest actions of the company. In the second part I will concentrate my analysis regarding how the general strategy of the company is differentiated depending on the local requirements, laws, cultures, market potentials, etc. In the end of the assignment we will make an analysis of the Greek market in order a close idea about the business operation. 1. Companys history and profile Knauf Group is a multinational producer of building materials and construction systems based in Germany, in Iphofen, where the head quarters and the master plan are located. In Iphofen exists also the historical museum of the company. Knauf is a family name. The Company began its operations in 1932, when the brothers Dr. Alfons N. Knauf and Karl Knauf established the firm Gebr. Knauf. It was a difficult beginning and at this time, no one could have thought the future big development of the company. Knauf finally became a multinational producer of building materials and construction systems, operating with more than 150 production facilities worldwide. Today the company ranks among one of the worlds leading manufacturers of building materials. Knauf has a workforce of 22,000 employees in 40 countries and in 2009 the company achieved sales of 5, 5 billion Euros. The product portfolio varies from the traditional plasterboard to the production of conveying machinery for construction site logistics, including the segments of gypsum plasters for interior and exterior use, insulation materials made of glass fibers or expanded polystyrene. The wide-ranging assortment also includes some other very special products as gypsum fiber boards for walls and floors, as well as a variety of special ceiling systems. The final aim, which comes out from this wide range of products, is that Knauf Group always focuses its efforts in being the leader producer in the construction sector by fulfilling any requirement of the architects, planners, building developers, etc. A strong characteristic of Knauf is the continuous courage for visions, innovation and investments as well as simple decision-making processes and a wealth of ideas on the part of its personnel. Despite the fact that the company is so large the CEOs of the company Nicolaus and Baldwin Knauf insist that the company is a family business, since it is still managed worldwide by the second and third generation of the family Knauf. The company doesnt belong in any stock market and every investment is created by their own profits without loans from the bank or any other external fund. 2. Companys structure and operation Gypsum plasters (core selling material of the company) The Group started to go international as early as the beginning of the Seventies of the last century and the trend has continued until today. Today the Group produces and sells its products in all European countries. In the developed countries such as E.E. countries, Turkey, Russia etc., the company has production facilities. According to the market demand in some occasions there are two or even three plants, whereas in small countries as Cyprus for example, there is only a local branch and the market is supplied with materials from Knauf Greece. Furthermore, there are factories located in North and South America, in the CIS states, in Northern Africa, in China and in Indonesia. Insulation materials Whereas in earlier times the sectors of dry construction and here we mention plasterboard as the primary product and gypsum plasters were the traditional areas of activity of the Group, meanwhile the insulation materials segment has developed into a further mainstay of the Group. The foundation stone for this was laid in 1978 when a glass fibre manufacturing company in Shelbyville, USA, was taken over. Today the company bears the name Knauf Insulation USA and operates a total of four production sites in the United States. The production of insulating materials on the basis of glass wool and mineral wool becomes more and more important. For about 30 years, the company has gained experience in the production of glass wool in North America. Within the last 5 years, Knauf has acquired 10 glass wool and mineral wool factories throughout Europe and additionally built new plants in Eastern Europe and Russia. Emerging and acquisitions activities Focusing before some years in the developing strategy into further segments of construction, where Knauf didnt have experience, the Company needed the knowledge and the facilities of existed companies well known for their quality in their field. Some of them were bought from the group in order to serve all the local Knauf companies with the special products that theyre producing. Some of the companies that have been bought and managed now from the group are AMF, Danogips, Marmorit, Sacret, Richter Systems, Knauf Perlite, Knauf PFT, Knauf Alutop. EUROPAK3 Most of these companies are selling their products only via local Knauf businesses. The interesting point is that the group doesnt hesitate to change its policy according to the target groups, different distribution channels and market needs. Being more specific, for example AMF Company is operating as a different business in the local markets, who sells products to the local Knauf businesses, but also to several wholesalers for example. PFT Company, which is occupied in machinery equipment (totally different market segment), is also developing separately from the local Knauf businesses in the European markets in order to serve other distribution channels and target groups. Knauf insulation, which is a totally different company is as well acting separately in the markets and sell its products directly to wholesalers without local Knaufs help. In many occasions in the European countries they are also selling only via local Knauf businesses. An interesting history is about a merging that the group has made with its one of the biggest competitors. The company USG is the market leader in United States producing and selling the same range of materials. United States of America is too much mature market in constructing with dry wall systems. Knauf group realized a big gap before some years in their product variety. They didnt have a board suitable for exterior constructions. Then the idea came from USG that had been producing a cement board, which is the ideal product, if someone wants to construct exterior walls facades for example. Then Knauf group in order to gain the technical knowledge and experience in cement board market, has been cooperated with USG. They have created together a joint ventured company under the name Knauf USG Systems, which is an independent company located in Germany and its aim is to produce and sell cement boards in Europe, Middle East, and Africa but only via the local Knauf businesses. 3. Organizational structure Knauf local businesses are managed by CEOs that usually are locals. The Local CEOs are supervised by the regional CEOs who are usually coming from the Knauf family. The local CEOs are fully responsible for the local organizational structure. Usually there is the plant manager, a logistics manager, sales and marketing managers, IT managers, technical department and sales department. Depending on how big the market is, sometimes as in Greece for example the technical department is merged with the sales department, which is finally consisted from sales engineers. 4. Vision and Mission The Knauf vision stems from the model on which the company is based: From a family company to a family of companies  [i]  . Knaufs mission is to remain a family which will always include its employees, customers and consumers. The company mainly emphasizes its philosophy on the following: Sustainability, Ecology and economy. The company produces economic construction systems based on raw materials that come straight from the earth and are completely friendly to people and the environment. Plan innovations to meet tomorrows requirements. To be the market leader in the building materials industry Focusing in long term growth and continuous increase of companys value To be as good as the sum of its total employees. The company depends on its employees skills, efficiency and creativity. In that sense production plants are designed to be pleasant to work in, efficient and to ensure a conscientious approach to resources and the environment. Quality management is a key factor for the group 5. Knauf Business and Marketing Strategy model 5,1 DISTRIBUTION Knaufs general strategy is to sell their products only via wholesalers. These dealers can then sell products further to second hand dealers, contraction companies and technicians (Knauf system installers). This model can be changed if a local market is used to work with another way, as for example in Northern Africa countries. In Europe this strategy is generally followed. 5, 2 TARGET GROUPS If we follow the whole chain of construction industry, we all know that Architects are planning the projects which means, that theyre specifying materials (they create the demand). This means that they are the main decision makers in the construction chain. Contractors are taking over to complete the project, and the technicians as sub contractors they are installing Knauf systems. As you can easily realize, Knauf target groups are all the above mentioned groups. Companys concept, is to follow the projects from the early start of the planning until the final procurement. And that means, that they support all the phases of the construction by being present and service with technical support all the groups referred. In addition they focus a lot to the individuals (private investors). Individuals are Knaufs long term objectives, since they strongly believe that they are at the end of the day the basic mean of continuously adding value in the company and make their products even better known to the market. This sector is going to empower the already famous Knauf brand in the market, and of course the materials demand. 5, 3 COMMUNICATION PR ADVERTISEMENT In this paragraph, Im going to show you a small part of the general ideas regarding the companys marketing approach. Knauf in Europe proceeds in specific advertising actions to introduce its products variety in its all target groups. This marketing approach operates since the start of the company and it is already very successful. A very important thing in business is to follow up your customers. Thus, Knauf via its CRM system saves its contacts and post them direct mails. In addition they are also sending e-direct mails, as is the Knauf monthly newsletter or any other subject they would like to promote. Moreover, theyre participating in exhibitions which are usually taking place in the construction concept with target groups from architecture, planning, decoration, etc. Another way of advertizing is by creating inputs in magazines for architects, contractors and technicians. Except of magazines, they also make inputs in newspapers and daily free presses, so they could be able to approach also the individuals. TV spots, radio spots are as well important ways of advertising their systems. Knauf invests a part of each turnover to offer free advertising gifts to its customers. These gifts might be templates, banners, signs, flags, samples, vehicles and memorial gifts, all having as design the Knauf logos and the Knauf partner s logos as well. Local technical documentation and web sites are other ways to find information for the companys products. These documents are very well developed and they obviously offer an assured technical support to the customers. The corporation invests a lot in education regarding its systems installation. Every local business has its own training center where seminars are taking place in certain dates every year. Those who have participated in the seminars are taking in the end a Knauf graduate clarification that writes Mr à ¢Ã¢â€š ¬Ã‚ ¦ has successfully participated in the Knauf seminars the datesà ¢Ã¢â€š ¬Ã‚ ¦ And this small thing makes them feel that they belong in a special group. Consequently they spread this idea to other people. 5.4 POSITIONING Knauf continues to increase a premium brand and separate its position against competition. Thats why the corporation always invests in developing new products and improving the old ones. 6. Gypsum Industry Market Analysis Europe The gypsum industry belongs into the broader industry of building materials. For the scope of our assignment we will only analyze the gypsum industry and especially the European Gypsum Industry as Knauf is mainly active into the European market. The European Gypsum Industry is characterized as a growing industry in comparison with the US or Australian Gypsum Industries which are already in the maturity face of their life cycles. With a turnover of over 10 billion à ¢Ã¢â‚¬Å¡Ã‚ ¬, the European gypsum and anhydrite industry operates 160 quarries and some 200 factories and generates employment directly to 28.000 people and indirectly for 85.000 people. It is one of the few fully integrated industries within the construction products field. Thirty years ago, the Gypsum Industry was made up of many small manufacturing enterprises mainly producing building plaster and stucco for local markets. The emergence and growth of the plasterboard and the plasterboard solutions market in the 1980s requiring high capital investments, equipment, RD and securing access to natural resources led to a consolidation process within the European Gypsum industry. Currently in the industry nowadays three main operators cover 80% of the gypsum product market  [ii]  . These are Knauf Group of Companies, BPB (British Pasterboards) and Lafarge. BPB, a UK based manufacturer, acquired by Saint Gobain in 2005 and organized within the Saint-Gobains Construction Products Sector  [iii]  and Lafarge, the well known building material manufacturer, established in 1833 in France initially as a limestone mining company  [iv]  . 6.1 PEST Analysis In analyzing the macro-environment via a PEST analysis, we can configure the environment which gypsum industry producers compete and identify the factors that might in turn affect a number of vital variables that are likely to influence the organizations supply and demand levels and its costs. The European building material industry is not that vulnerable to Political issues but into the Greek Construction Industry political issues arise more frequently as the support from the European Union funds have major role into Construction Industry growth rates. From 2001 till 2009 where more and more privately funded big real-estate projects were implemented the industry was growing very fast but the economic pressure that affects, for the last year, all companies and investors involved is slowing down the rates of the industry. In such critical times, most governments are identifying its policies with social and environmental care policies. Into the construction environment there is the need, more than any other time, of energy efficient buildings and construction techniques that exploit those advantages, and governments in assessing the socioeconomic impact of energy spending reduction are already subsidizing such constructions through government or EU fund raising. Technology i tself was always the main concern of producers in order to find ways of reducing their production cost as well as to invest in new RD fields, such as antiseismic technology, for exploiting the unique advantages of gypsum. 6.2 SWOT analysis European Gypsum Industry is a growing one and most European countries only now capitalize the advantages that gypsum offers as a building material. Gypsum is virtually indispensable for the interiors of homes and offices and all types of building where people congregate, such as schools, shops, airports, etc. Its superior performance in providing everyday comfort, in fire resistance and in insulation, heralds an ever greater role for it in buildings of the future. In fact, the safety and protection of people and property against fire, and effective thermal and acoustic insulation of buildings depends, more often than not, on the unique properties of gypsum. And many of the attractive features of the modern interior would be impossible without the versatility of gypsum as a building material. The gypsum wallboard industry is highly competitive. Because wallboard is expensive to transport, does not travel well in large quantities and lacks of product differentiation, producers compete on a regional basis, primarily based on price, product range, product quality, and customer service. The sector is highly competitive especially in Europe and North America with production mostly concentrated among few international players. The drywall solutions are seen in growing countries as a substitute for traditional construction solution like for example cement and brick and block constructions. The unique advantages that systems offered to the engineers made them a huge threat of substitute for the traditional techniques. But, soon the industry will be into the maturity face and new innovative and evolution building materials like magnesium or perlite have already started to threaten gypsums raising empire. The industry has to invest into new materials, new technologies and diversify towards innovative building material and construction system solutions. The capital investment that is required in order to enter into the gypsum industry is high. Equipment is expensive, know how is difficult to acquire, access to natural resources is prohibited and investment in RD is mandatory. That is why in very few years the European Gypsum Industry from the state of many locally situated small producers it transformed into an extremely concentrated market where three companies cover approximately 80% of the market. In global level the same concentrated situation is observed where 81% of the market is covered by 7 players (Georgia Pacific, Knauf, Lafarge, National Gypsum, Saint-Gobain, USG and Yoshino) The Gypsum Industry covers the whole life-cycle of the product. Indeed, the companies which extract the mineral gypsum also process it and manufacture the value-added products and systems. The full integration that characterizes the industry is a fact that removes any danger of suppliers bargaining power but at the same time it leads to higher production costs for the producer. The ownership of the gypsum reserves is a power game between the main competitors of the industry as it is at the same time a main clue of product differentiation and product quality resulting from the mineral gypsum purity. Gypsum reserves are now rare around Europe and that turned the producers to invent new technologies by producing synthetic gypsum mainly from fly ash which is a byproduct of energy production plants. The industry is mainly selling through an extensive dealers network in each country. Those dealers are commercial companies selling a series of building materials either to contractors or consumers. In Western Europe more mature markets dealership is also concentrated into few very big companies (Praktiker, Leroy Marlene, OBI etc) which due to its size and concentration they have already obtained a big bargaining power over the producers. Into the Greek market the dealers network is still based on small, unorganized depots with no special power over the industry but big retailers are already into the market and soon the situation will change. 7. Key Success Factors of the Gypsum Industry The following factors have played a major role in a gypsum companys prosperity: Cost advantages and economy of scale: The recent trend of acquisitions and mergers exploit potential cost advantages to be found in RD facilities serving global operations. They create larger and more diversified market focused organizations. All the top performing companies in the industry have faced, at least once, a major merger in the past. In 2005, BPB, one of the top 3 companies of the industry in Europe, was acquired by Saint Gobain which invested 5.9 billion à ¢Ã¢â‚¬Å¡Ã‚ ¬, for setting itself a step ahead from its major competitors in the building materials industry. Access to natural resources: As previously noticed, the Gypsum Industry covers the whole life-cycle of the product and producers strive for securing reserves all over the world. In that industry, due to the cost structure, privileged access to the raw material is vital for the companys growth. For that reason, companies started investing either in finding new ways of composing synthetic gypsum from several sources (e.g. energy plant waste) or by implementing systems for recycling their the products at the end of their life cycle (demolition waste). Differentiation through technical specifications and customer service quality: The main target for all producers is to offer a complete solution with their systems of products in order for engineers to be able to substitute traditional ways of building. They managed to specify with standard norms the use of the plasterboard walls, ceilings, floor or any other use as well as their technical characteristics like fireproof, sound insulation, thermal insulation etc. With the combination of professional sales and technical support as companies are using only engineers for sales reps with extensive and professional training, in order to serve customers and specify the systems in a market that is constantly gaining market share from the traditional construction methods. 8. Greek market analysis As we previously noticed, into the Greek market there is also one competitor to Knauf, Rigips Hellas (BPB) with one production site situated in West Greece. Both companies have their own reserves of the raw material close to their factories which are both situated into the same geographical area resulting to equivalent quality levels of raw material. A main difference is the production capacities as well as the plants sizes. Knauf operates a plant that was build from scratch in 1991 in Amfilochia, while on the other hand Rigips acquired some years after Knaufs establishment in Greece an old gypsum factory from a local producer. That explains the estimated difference in local production capacities for the two producers. Having the appropriate capacity levels, Knauf can control its production cost and overheads better than the competitors and therefore result to higher margin levels. Knauf from 1991 invested a lot of money for differentiating through technical specifications and customer service quality. In order to achieve that high level engineers were recruited and were extensively trained into Germanys headquarters. The experience and professionalism of the mother company was soon transferred into the Greek subsidiary and the company culture was quickly transformed according to the following: The future lies in the hands of talented and highly motivated employees. An important aspect is the family culture which prevails in the company: Learn from one another, hold together, pass on knowledge, assume the role of mentor, take fast and direct paths and press for special achievements  [v]  . In very few years, almost 10 professional engineers were covering all the Greek territory offering technical support to contractors, extensive training to installers and professional customer service to retailers. Rigips which was established a few years later used same techniques for expanding into the Greek territory but always by following Knaufs steps. That was something that reduces its cost for training the market into new building materials but cost them the reputation of the leader in the market. Knauf was and still is characterized as the leader industry in the gypsum market in Greece. Their competitive advantage in the market is the ability of its people to open the market, train the customers and lead to a new age in construction industry. All the above are mainly achieved by the following: A huge database of active engineers is informed once every month by direct mail regarding new and innovative solutions. Over 7.000 installers are trained for efficient installing drywall systems into Knaufs Training Centre in Amfilochia. Retailers are supported by professional sales engineer all over Greece. Finally, Knauf has invest a lot in marketing by extensive advertising into press, technical magazines, radio and TV, by providing signs to all its retailing network and by participating into all main fairs in Greece. Rigips havent tried to differentiate significantly from Knauf into the market. They have not invest as much as Knauf into penetrating and training the market and their main position in the market is to let the leader open the way and then to follow. The main differentiation point for the two companies was the price. Knauf is the leader and for that the customer has to pay a premium. 9. Strategic recommendations Conclusion As we saw in this assignment Knauf Corporation is developing in Europe with a certain way which is driven by the values, the culture, the ethics and the historical success model, that the family developed for their business. However, we also saw that several differences exist, depending on the needs and the culture of the local markets. Such differences for example could be the style of the management, the variety of products, the developing of the other corporate businesses and so on. Knauf family believes a lot in the different local adaptation of their business model and this is visibly proven from their willing and trust to choose local people as general managers to run the business in the countries. They invest a lot of money and efforts in order to find the correct person who is going to implement Knauf successful business style according to the local needs. Knauf group has proven its ability to penetrate, train and lead new markets. As a group it has a promising future as it is in line with the major key successful factors for the industry. Its competitive advantage is very strong and it is implemented into most countries in the world as it is into the Greek market. The industry is highly competitive and it is getting more and more concentrated. In order for Knauf to continue growing into such a competitive environment it needs to diversify its building material portfolio into more developing and profitable markets. Such a market is the insulation material industry in which the group recently invested by acquiring a lot of local producers in Europe and becoming the worlds fastest-growing insulation manufacturer with full ownership of its activities since 2002. Finally, Knauf should invest into countries that are structurally unexploited like for example in Asian or growing African countries initially by securing raw material reserves into strategic places.

The Chosen Essay -- English Literature Essays

The Chosen Inflective and Forward Personalities In Chaim Potok’s The Chosen, two contrasting characters are introduced—Reuven Malter and Danny Saunders. They are opposites. While Reuven is forward—speaking his mind, Danny Saunders shows a stark contrast—an inflective soul, listening to silence, and growing from it. These characters set the stage for a lasting relationship to form, to be strengthened, and to be stressed. Danny’s father’s name is Reb Saunders. The tzaddik of a small community within close proximity of Reuven’s home, he was born in Russia and later brought his congregation to America. When Danny is speaking to Reuven, he tells him the story of this occurrence. â€Å"They bribed their way though Russia, Austria, France, Belgium, and England. Five months later, they arrived in New York City.† This was the original catalyst for the relationship between Reuven and Danny. If Reb hadn’t brought his congregation to America, ever, Danny and Reuven would not have met in anything close to the same circumstances. When introducing the reader to the novel, Reuven explains why the inter-parish softball leagues were formed by the Jewish parochial schools after World War II. â€Å"†¦America’s entry into the Second World War and the desire this bred on the part of some English teachers in the Jewish parochial schools to show the gentile world that yeshiva students were as physically fit, despite there long hours of study, as any other American student. They went about probing this by organizing the Jewish parochial schools in and around our area into competitive leagues, and once every two weeks the schools would compete against one another in a variety of sports.† This was the second factor in the friendship. It would be unlikely for the matter of a soft-ball league to be considered on the part of Reb Saunders if he had not seen any particular reason. On Danny’s second visit to the hospital, Danny and Reuven talk about matters of common interest. While on the topic of the baseball game, Reuven asks how he learned to hit a ball. â€Å"‘I practiced,’ he said. ‘You don’t know how many hours I spent learning how to field and hit a baseball.’† After this statement is avowed, Danny makes the comment to Reuven that he could have ducked the ball. Reuven responds with: â€Å"I remembered the fraction of a second when I had brought my glove up in front of my... ...arefully of what you will say. Think what your father’s questions will be. Think what he will be most concerned about†¦Ã¢â‚¬â„¢Ã¢â‚¬  When David persistently asks Danny questions as Danny half-answers, anxiety is created as the significance of the questions is revealed. All of these factors put stress on the relationship, initially, and in the end strengthened it. The first mentioned, was the difference between Danny and Reuven’s religions. Although they were both Jewish, the novel shows that there were perceptible differences. The next mentioned was Reuven’s inability to understand â€Å"listening to silence†. Although Reuven may not have seen significance, Danny found silence to be very important, even related to wisdom. The final stressor mentioned was David’s methodological questioning of Danny at the end of the novel. It created tension in an already stressful situation, although helpful. Danny and Reuven’s friendship built throughout The Chosen had the roots to last a lifetime. It was apparent that Danny originally needed a friend and Reuven turned out to be the right one. Also, their fathers recognized this lasting friendship. So, each would most likely encourage it in the future.