Business Words U Should Know

Over 1,000 Essential Words and Phrases! BUSINESS WORDS YOU SHOULD KNOW From Accelerated Depreciation to Zero-based Budgeting—Learn the Lingo for Any Field H. DEAN M C KAY, P H . D. , AND P. T. SHANK Business Words You should knoW From Accelerated Depreciation to Zero-based Budgeting—Learn the Lingo for Any Field h. dean MckaY, Ph. d. , and P. T. shank Avon, Massachusetts I dedicate this book to Susan Shank Mix, my wife, lifelong friend, and trusted advisor. Without her encouragement, creativity, and support, this book would be still in my imagination. —Dr. Dean McKayI dedicate this book to Al Burgos, an accountant with the heart of an astronomer, because without him, no deadline would have been made. —P. T. Shank Copyright  © 2008 by H. Dean McKay, Ph. D. , and P. T. Shank All rights reserved. This book, or parts thereof, may not be reproduced in any form without permission from the publisher; exceptions are made for brief excerpts used in published revi ews. Published by Adams Media, an F+W Publications Company 57 Littlefield Street, Avon, MA 02322. U. S. A. www. adamsmedia. com ISBN 10: 1-59869-146-5 ISBN 13: 978-1-59869-146-7 (paperback) ISBN 13: 978-1-44050-101-2 (EPUB)Printed in the United States of America. JIHGFEDCBA Library of Congress Cataloging-in-Publication Data McKay, H. Dean. Business words you should know / H. Dean McKay, and P. T. Shank. p. cm. ISBN-13: 978-1-59869-146-7 (pbk. ) ISBN-10: 1-59869-146-5 (pbk. ) 1. Business—Dictionaries. I. Shank, P. T. II. Title. HF1001. M26 2007 650. 03—dc22 2007016518 This publication is designed to provide accurate and authoritative information with regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice.If legal advice or other expert assistance is required, the services of a competent professional person should be sought. —From a Declaration of Princi ples jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations Many of the designations used by manufacturers and sellers to distinguish their product are claimed as trademarks. Where those designations appear in this book and Adams Media was aware of a trademark claim, the designations have been printed with initial capital letters. This book is available at quantity discounts for bulk purchases.For information, please call 1-800-289-0963. Contents Introduction / 1 The Words, A–Z / 2 Appendix: Acronym Index / 247 Acknowledgments T his book is an accumulation of decades of business, education, and management with some remarkable mentors and associates. In particular, I would like to recognize my mentors at the Peter F. Drucker Center for Management, Claremont Graduate School, Professor Joseph A. Maciariello and Professor Peter F. Drucker, along with the other faculty and participants in my decade of association with the univ ersity.I would like also to acknowledge the thousands of associates, peers, and managers in the organizations with whom I have had the pleasure of working these past five decades. To my family, who has been so supportive, I say thank you, Robert, Chris, Melinda, Cameron, Amanda, Dave, Michelle, Marcus, and Meredith. You are my team. P. T. Shank made this book a reality with her voice and creativity as well as hard work. —Dr. Dean McKay M any people helped me make this book happen. Specifically, I would like to thank H. Dean McKay for his business acumen; Ed andMitchell, as always; Stephanie Sauls, for laundry, dinners, flowers, and generally being an amazing friend; Billy Taymor for his patience, humor, and being awake long after most people have gone to bed; Shoshanna Grossman, who saw me through the beginning of it; David Willis, who saw me through the end of it; and all my friends—both real and cyber—who understood and still love me. —P. T. Shank Intro duction W hen Dean and I first started talking about writing this book, we thought it would be very straightforward. We knew we wanted to take the language of business and translate it into plain English.He would choose the words, write the definitions, and take the role of business guru, ensuring the information was accurate. I would write the sentences, handle the technical part of writing a book, and take the role of target audience, ensuring the information was understandable. And we would have the next book in the excellent Words You Should Know series. To a certain extent, that is what happened. Over and over throughout the last year, Dean would present me with a definition, and I would say â€Å"But what does it mean? † until he had simplified it enough that even I could understand it.So it was straightforward. Dean has indeed chosen words and written definitions. I have written sentences. And you are reading this book. But something else happened as well. Once we star ted writing it, we came to realize it had far more potential than we originally recognized, and that was really exciting. Yes, this book can be used in a very straightforward manner: When you hear a business word you don’t understand, look it up and close the book. Easy. But it can be much more than that as well, depending on your needs. Perhaps you need to know more about a concept than simply its definition and usage.An Internet search on â€Å"management style,† for instance, turns up more than 200 thousand results! This book offers related words for each term. Combine a few of them in your search, and suddenly you are closer to finding the information you actually need. Also, throughout the book, you will find boxes with further explanations of many of the defined words. While the definitions for these words are easy to understand, the concepts sometimes are not. The information found within the boxes will help clarify the concepts and how they apply to the busines s world.We sincerely believe this book has become the valuable tool we always knew it could be. Hopefully, you will agree with us, whether you are wellestablished in an industry or just starting out. And who knows, maybe you’ll even come to understand our excitement. We hope you do. 1-to-1 marketing  1 1-to-1 Marketing Customizing the offering to the specific customer needs and desires. This process involves much more than just sales and marketing because the firm must be able to change how its products are configured or its service is delivered based on the individual needs of individual customers.The technology company was successful because of its ability to offer 1-to-1 marketing to all its clients. See also: Direct Marketing, End User 10Q Report A financial statement filed with the U. S. Securities and Exchange Commission by a company, regarding its financial performance. This form is used for quarterly reports under Section 13 or 15(d) of the Securities Exchange Act of 1934. A quarterly report on this form must be filed within forty-five days after the end of each of the first three fiscal quarters of each fiscal year.Investors and brokers are wise to track companies’ 10Q reports before buying large amounts of stock. See also: Financial Statement or Reports, Public Company, Quarterly Report, SEC Filings 10X Change A strategic change from a current state, called X, to a future state in which the change is measured in orders of magnitude. This term refers to those rare moments when something creates a â€Å"10X change†Ã¢â‚¬â€a change ten times greater than your average everyday change. Leadership believes in the exponential growth capacity of each team member.A 10X change is any change in a business environment that could potentially cause an industry change. Business forecasters were aware that the creation of the personal computer would create a 10X change in the industry. See also: Change, Change Management, Strategic Inflection P oints 360-Degree Feedback A means for leadership development; a method and a management tool that provides each employee the opportunity to receive performance feedback from his or her supervisor and four to eight peers, reporting staff members, coworkers, and customers.Every year, the management staff received 360-degree feedback from their peers and staff in order to ensure a positive working environment for everyone in the department. See also: Communications, Empowerment, Human Resources, Motivate, Performance Review accelerated depreciation  4 Ps of Marketing Product, price, place (distribution), and promotion are the major marketing management decisions; these variables are known as the marketing mix. Even though most customers may not be aware of it, nearly all decisions about buying products are based on the 4 Ps of marketing.See also: Distribution, Marketing, Price, Product, Promotion A A-Team An elite group or task force that is willing and able to solve difficult problem s; a team that works together under uncertain conditions to create innovative solutions; a group having a special mission with a leadership role. The new engineer was assigned to the A-team to tackle the division’s most pressing problem. See also: Leadership, Team Building, Teams Abatement A deduction in the amount of money owed. The start-up received rent abatement to help them get things going in their production facility.See also: Obligation, Payment in Kind Ability The quality of being able to perform; skill and aptitude that an employee needs in order to perform successfully the various tasks associated with a job; qualities that enable a person to achieve or accomplish something. It is vital to hire someone based on his or her ability to perform the job at hand. See also: Organization, Performance, Skill Abstract A document that summarizes and explains the important aspects of a larger, more detailed document. The database contained many abstracts from articles on small business.See also: Business Plan, Executive Summary Accelerated Depreciation Depreciation at a greater rate in the early years of an asset’s life; an accounting method. Due to the accelerated depreciation attached to some goods, many people recommend buying slightly used items over brand-new ones. See also: Accounting, Depreciation, Taxes A  A access Access A process of inputting or retrieving data from a computer, network, or system. The staff realized the computers were down when none of them could access the database. See also: Computer, Data, Database, Network Access TimeThe time interval between a request for information and the start of the delivery process for a computer, network, or system. Faster access time was one of the major selling points of the new computer system. See also: Access, Computer, Float Accessory Goods Products used by business operations to function. Examples include computers, fax machines, office copiers, networks, and so on. The small shop had a full inventory but the bare minimum of accessory goods needed to open for business. See also: Administrative Expenses, Back Office, Operations Accomplishment The result of successfully meeting a goal; an achievement.The award was given to the sales team for their accomplishment of increasing profits 20 percent over the estimated goal. See also: Ability, Goals, Objectives, Success Account An organization’s record of all the debits and credits chronologically posted to a ledger showing how each transaction affects a particular phase of a business. Entries are usually stated in monetary figures and reflect the current balances, if any. A bookkeeper is often required to manage multiple accounts and track the strengths of all of them. See also: Chart of Accounts, General Ledger, Ledger AccountabilityTaking responsibility for actions. An obligation to one’s self—an obligation to lead a meaningful life, both in and out of the workplace, that is consistent with oneâ €™s own values. The CEO was impressed by the supervisor’s sense of accountability for everything that happened in his department. See also: Behavior, Governance, Responsibility accounts receivable turnover  Accounting The process of identifying, measuring, recording, and communicating financial information about a business or organization. Accounting information can be a helpful managerial and investment aid in the decision-making process.The accounting firm was known and respected for the efficiency and uncompromising sense of integrity. See also: Accounting Noise, Public Accounting, Purchasing Accounting Accounting Noise Complex rules that may affect the way a company’s performance is related to the public. These rules do not affect the company’s true performance, simply the way that performance is reported. After a company has gone through a major change, it may be difficult for potential investors to cut through the accounting noise to discover how well the business is actually expected to perform. See also: Accounting, Financial Statement or ReportAccounts Payable Money or liabilities owed by a firm to vendor, suppliers, or service providers. The secretary juggled the accounts payable so that the small firm’s bills were paid every month within days of receiving the fees from their clients. See also: Balance Sheet, Liability, Supplier, Vendor Accounts Receivable Money or liabilities due to a firm from customers for the purchase of inventory, goods, or services. Carried in the current-assets section of the firm’s balance sheet. The billing department sent out invoices on all accounts receivable that were not paid in full at the time of service.See also: Assets, Balance Sheet, Customer, Inventories Accounts Receivable Turnover A measurement of how quickly customers pay their bills. The ratio of net credit sales to average accounts receivable. Their bank asked for the accounts receivable turnover report to measure how q uickly their customers paid their bills. See also: Accounts Receivable, Credit, Financial Ratios, Turnover A  A accrual-based accounting Accrual-Based Accounting An accounting method in which income is reported when earned and expenses are reported when an obligation is made rather than when money is received or paid.Retail stores and other businesses that sell products and stock inventory use accrual-based accounting. See also: Accounting, Bookkeeping, Expenses, Income Accrue Accumulate or increase over a period of time. She chose to put her money into a CD rather than just into a savings account because interest would accrue at a faster rate. See also: Depreciation, Expenses, Taxes Accrued Expenses Expenses yet to be paid; accumulated expenses in a given period that will be paid in the future. It was agreed that the accrued expenses owed to the law firm would be paid at the end of the trial.See also: Accrue, Expenses, Period Accrued Interest Interest yet to be paid; accumulated i nterest in a given period that will be paid in the future. She opted to receive all accrued interest from her investments in one check at the end of the year. See also: Accrue, Interest, Period Accrued Taxes Taxes yet to be paid; accumulated taxes that will be paid in the future. The accountant tracked the accrued taxes in order to ensure there was enough cash to pay them when they came due. See also: Accrue, Taxes Accurate Correct and exact; produces flawless work, generally as the result of painstaking care.The accountant was known for being detail oriented and accurate in every aspect of his job. See also: Consistent, Quality action learning  Acid Test Ratio A ratio of current assets minus inventories, accruals, and prepaid items to current liabilities that is used to determine a firm’s ability to meet current debt obligations. According to the acid test ratio, the firm was actually in very good financial shape in spite of the unexpected quarterly losses. See also: Assets , Liquid, Short-Term Debt Acquisition Acquiring control of a business or corporation.The parent company’s primary goal was to staff its new acquisition quickly and well before it began losing money. See also: Due Diligence, Integration, Merger, Purchasing Accounting, Strategy Acquisition Cost The cost of purchasing equipment before sales tax. The start-up bought much of its equipment slightly used in order to keep acquisition costs low. See also: Capital Expenses (CapEx), Hard Assets Acquittance A receipt indicating payment in full, freedom from a financial obligation. Every acquittance was kept on file in case questions arose later about the payment of the bills.See also: Debt, Payments Across the Board Affecting all in an equal manner; comes from the New York Stock Exchange (NYSE) big board, a large board on which stock prices were once written, so when the majority of prices were up or down, the movement was shown â€Å"across the board. † Concern about the economy and rising prices cut consumer spending across the board, not just in the travel industry, over the summer. See also: New York Stock Exchange (NYSE), Stock Action Learning A process in which a group of people come together more or less regularly to help each other to learn from their experience.The company offered action learning programs as a way for senior management to lean on each other and junior management to receive mentoring. See also: Action Plan, Group Processes, Teambuilding A action plan  A Action Plan A list of tasks that needs to be carried out in order to achieve a larger objective; may include other plans, activities, resources, and/or commitments. The action plan was clear and concise so that everyone on the project knew what steps needed to be taken in order to achieve success. See also: Goals, Obstacles, TaskActionable An act, event, or occurrence that carries legal grounds for basing a lawsuit. As offensive as the supervisor’s statements and behaviors had been, her attorney told her they were, unfortunately, not actionable. See also: Arbitration, Audit Activity List A list of the defined activities that need to be completed for a project or task within an action plan. The team was pleased that they had completed their activity list well enough in advance that the whole project moved forward sooner than expected. See also: Planning, Project, TaskActivity Sequencing Identifying how activities affect each other and determining the best order to perform them in order to complete the project. Although the committee’s suggested activity sequencing seemed reasonable on paper, it didn’t take into account ordinary delays expected by the technicians. See also: Program Evaluation and Review Techniques (PERT), Project, Time Management Ad Hoc A team, project, task force, or committee formed to address a specific issue or concern; singular-in-purpose effort; dealing with a particular organizational problem.The CEO created an ad hoc committee to investigate the charges of harassment. See also: Organization, Project, Teams Adaptation to Change Methods and mechanisms that organizations use to react to internal and external environmental changes. Businesses tend to survive longer when their adaptations to change are flexible, open-minded, and already in place prior to major market fluctuations. See also: Adapting, Change, Change Management, Organizations adjustment  Adapting Capable of change from today’s reality to a future state, such as change in response to new markets, globalization, and management changes.Many nonprofit organizations had a hard time adapting to computerization in the 1980s and 1990s. See also: Change, Flexible, Growth Addendum A supplement to a written document. The actor requested that an addendum spelling out the specific needs of his staff be added to the contract. See also: Appendix, Communication Adhesion Contract A contract that generally contains nonnegotiable terms that usual ly favor the party presenting it. The band was known for the outrageous clauses in the adhesion contract they required each venue to sign before they agreed to perform. See also: Contract, Letter of Intent (LOI), TermsAdhocracy A form of organization, usually with little or no structure, that allows for greater creativity and innovation around capturing opportunities, solving problems, and getting results. Once the company moved from a bureaucracy to an adhocracy, several of the program directors had a hard time changing from a very controlling management style to one where staff was allowed more input and flexibility. See also: Bureaucracy, Cross-Functional Team, Management, Organization, Teams Adjustment A debit or credit to a cardholder or seller’s account to correct a transaction error.When the woman’s coat didn’t arrive in the promised amount of time, the store made an adjustment on her credit card to reflect the removal of shipping charges. See also: Accou nting, Credit, Credit Card, Debt A administrative expenses 10 A Administrative Expenses The expenses incurred in carrying out the activities listed in the management and organization section of the business plan. The assistant secretary had to be laid off in order to cut back on administrative expenses. See also: Accounting, Business Plan, Expenses, Income Statement AdministriviaThe day-to-day workings of an office environment required by administrators; Tasks that staff perform to maintain value in an organization that are needed to keep things going forward or to fulfill management needs. The old secretary was invaluable to her boss because of her skill at dealing with administrivia. See also: Administrative Expenses, Task Advertising A tool or management resource for increasing product differentiation and encouraging brand loyalty by communicating the features and benefits of a product/service through the use of radio, television, print, Internet, and other media.Advertising is a large part of any company or product’s success. See also: Benefits, Brand, Communication, Marketing Advertising-Based Model A business model in which a firm generates revenue by charging advertisers for space (for example, in a magazine or on a Web site) or time (as in radio or TV). The weekly neighborhood newspaper was able to stay in business once it switched over to an advertising-based model. See also: Advertising, Business-to-consumer (B to C or B2C), Business Model, Revenue, Web Page Advisory BoardA group of outside experts, typically three to six people, usually recruited by entrepreneurs to provide regular input and suggestions to management. The entrepreneurs brought in an advisory board early in the planning stages of getting the new company up and running. See also: Entrepreneur, Goals, Planning, Vision agenda 11 Affiliate An organization, firm, or other entity with a relationship with another company, peer, or larger entity. Few people realized the community clin ic was actually an affiliate of the nationally recognized hospital and was staffed by many of the same doctors.See also: Control, Network, Relationships Affinity Group An organization made up of businesses (or representatives thereof) with common interests, such as an industry trade association or another group of entrepreneurs. It is important for young professionals to find and join an affinity group that will assist them in becoming comfortable and growing in their chosen field. See also: Trade Association After-Hours Trading Refers to stock trading that takes place outside the traditional trading hours of the major exchanges, such as the New York Stock Exchange (NYSE) and the NASDAQ Stock Market.As more people use the Internet for investment purposes, after-hours trading is becoming more and more common. See also: Stock, New York Stock Exchange (NYSE), Transactions Aftermarket The trading activity in a security immediately after its initial offering to the public; used to define the volatile time before prices stabilize or the secondary market for upgrades, such as the automotive non-factory parts. Casual investors often wait until the aftermarket has settled down before deciding whether to invest in a specific stock. orComputer companies can make large sales based solely on the aftermarket when new technology that is desirable but not necessary becomes available. See also: Capital Market, Initial Public Offering (IPO), Investor, Marketing, Security Agenda A list of items, issues, things to be considered; points to be discussed; outline of topics to be discussed in a meeting. The agenda was so full, he wasn’t sure if they would cover everything in the course of the hour-long meeting. See also: Briefing, Kickoff Meeting, Meetings, Schedule A 1 A aging of receivablesAging of Receivables An accounting method that provides management with information regarding a debt’s age; or a method of estimating bad-debt losses by aging the accounts and then assigning a probability of collection to each classification. The accountant urged the billing department to track outstanding fees because the aging of receivables indicated any accounts more than six months delinquent would be worthless. See also: Accounts Receivable, Debt Agreement An understanding between two or more parties. May be formal or informal, legal or a â€Å"gentlemen’s† agreement.In many parts of the country, a handshake still creates as binding an agreement as a signed contract. See also: Collective Bargaining, Confidentiality Agreement, Contract Alert Managers, executives, and employees who are observant and on the lookout. Aware, quick to understand the real importance and consequences of a situation or an occurrence. The staff of the advertising department had to be alert to the changing values and morals of society in order to create effective campaigns. See also: Human Resource, Observant Allegiance A commitment to a leader or organization that b inds a party (intellectually or emotionally) to a course of action.The business made it clear that its allegiance was to its customers and employees, even before that of the stakeholders. See also: Commitment, Leadership, Loyalty, Stakeholders Alliance Any formal, inter-organizational, collaborative relationship with competitors or suppliers of complementary products and services aimed at avoiding crippling capital investments and gaining market entry or core competencies. The owners of the start-up companies were excited about forming an alliance, secure in the knowledge that they could help each other grow.See also: Collaborate, Relationship analysis 1 Alpha Version Development-stage terminology that expresses that the development of a piece of software is in its early stages and may require much further development. An alpha version of a program is also known as a â€Å"pilot† version, which can be tested for overall usability and training effectiveness. Although the alph a version hadn’t worked the way the designers had expected it to, the lessons learned from its failures were valuable in correcting the design flaws. See also: Feasibility Study, Product Development AmbitiousIntent on advancing, enterprising, having great desire and determination to achieve a certain goal. An advancement in position, authority, earnings, or reputation is usually the objective. The plan to expand the company throughout the Northeast was ambitious, but management thought it could be done based on projected sales and growth. See also: Energetic, Motivated Ambivalence Conflicting emotions or feelings about an individual, team, or organization; mixed feelings leading to uncertainty or indecisiveness. The manager was ambivalent about his team’s performance on the marketing campaign.See also: Conflict, Indecisiveness, Leadership, Management, Uncertainty Amortization The allocation of a lump sum amount to different time periods. Either the paying off of debt i n regular installments over a period of time or the deduction of capital expenses over a specific period of time. Loan companies set up an amortization schedule that allows businesses to pay off their debts slowly so they don’t go under but, at the same time, ensure the lender does indeed get its money back in a timely manner. See also: Capital Investments, Debt, Installment AnalysisThe action of taking something apart in order to study it, such as financial analysis, competitive analysis, or strategic analysis. The analysis of the competing firm’s client list proved they were signing the clients everyone in town was hoping to bring on board. See also: Competitive Analysis, PEST Analysis, Problem Solving, SWOT Analysis, Variance Analysis A 1 A anchor store or client Anchor Store or Client A branded store or client that provides an attraction to draw new customers. The presence of such an anchor increases the market potential for other businesses and makes adjacent loc ations more desirable for entrepreneurs.The mall closed within months after the two anchor stores moved out. See also: Brand, Marketing Angel Capital Start-up money provided to entrepreneurs by friends, family, or wealthy individuals (often referred to as the 3 Fs: friends, family, and fools) whose motives may be non-monetary as well as financial. The company’s first round of financing was angel capital. See also: Entrepreneur, Financing, Seed Capital, Venture Capital Angels Private investors, generally wealthy individuals who are former entrepreneurs or executives who invest in entrepreneurial companies.The young businessmen wanted angels for the company, not just for the monetary assistance but for the advice and experience they would bring to the table. See also: Advisory Board, Angel Capital, Incubator, Investor, Venture Capital Animation Effects used in presentations to improve the audience’s experience; rapid sequential presentation of different graphics to creat e the illusion of motion. Even the most engaging speakers can be more effective with the use of animation in their presentations. See also: Presentation Slides, Visual Aid Annual Percentage Rate (APR)An interest rate that states the true cost of obtaining credit for the duration of the loan. Even an APR that is only half a point lower than others can save a consumer a lot of money over the course of a loan. See also: Credit, Interest, Loan applicant 1 Annual Report A document issued annually by public companies to their shareholders per Securities and Exchange Commission (SEC) regulations; includes information about a company’s performance during the previous year, as well as management’s view of the company’s strategy for the future. Serious investors will pay very close attention to a company’s annual report before investing.See also: 10K, Communication, Financial Statement or Report, Investors Annual Sales Sales or revenue received during the period o f a year, before any expenses are deducted, for providing the firm’s products and services. In a weak economy, simply maintaining annual sales is often considered as much a success as increasing them would be in a strong economy. See also: Income Statement, Revenue, Sales Antitrust Laws that prohibit agreements in restraint of trade, monopolization and attempted monopolization, anticompetitive mergers and tie-in schemes, and, in some circumstances, price discrimination in the sale of commodities.The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. Antitrust laws were established to help ensure every company has the opportunity to succeed or fail on its own merits, without being held back by larger, already established businesses. See also: Entry Barriers, Monopoly, Predatory Pricing Appendix An addition to the end of a document. In a business or feasibility plan, it may inclu de copies of product/service information, legal agreements, resumes of principal owners, and so on.Although people tend to ignore the appendix of a document, it often contains important, albeit secondary, information. See also: Communication, Contract Applicant One who is seeking employment. Employers appreciate having a large applicant pool because it tends to increase the chances of finding the right person for the position. See also: Employ, Employee A application 1 A Application A form to be filled out by a job candidate when seeking employment, or the use of computer-based programs to process data for specific purposes.Many companies have applications online, which allows people to apply for positions with ease. or Since the business world has become computerized, having a working knowledge of several different applications is beneficial to job applicants. See also: Applicant, Applications Software, Data Processing Application Service Provider (ASP) Party that offers an outsou rcing mechanism whereby it develops, supplies, and manages application software and hardware for its customers, thus freeing up customers’ internal IT resources.The application software resides on the vendor’s system and is accessed by users through a Web browser using HTML or by special-purpose client software provided by the vendor. Using an ASP can be risky because if the vendor goes under or closes, information can be lost with very little, if any, warning to the customers. See also: Client, Information Technology (IT), Server Application Software Software applications that are intended for end-users, such as database programs, word processors, and spreadsheets. Application software runs on top of system software.Application software can often be purchased to upgrade a computer’s capabilities. See also: Application, Data Processing, Information Technology (IT) Appraisal A written document by a professional appraiser estimating the value or quality of an asse t as of a given date or a performance evaluation of an employee. It is important to get a fair appraisal prior to purchasing a big ticket item. The company required yearly performance appraisals of all the employees. See also: Employee, Promotion Appraise Estimating the value or determine the cost of an item or enterprise.When the situation was appraised objectively, moving the company out of the city really was the best course of action in the long run. See also: Appraisal, Valuation arbitration 1 Appreciation An increase in the value of an asset. The appreciation in property values expected in the neighborhood made buying even a small house an excellent investment. See also: Assets, Capital Appreciation, Valuation Appropriation The application of the payment of a sum of money, made by a debtor to his creditor, to one of several debts as money that has been set aside by formal action to pay some known or anticipated costs.The bookkeeper insisted on an accounting of the funds appro priated for each step of the loan repayment process because she feared the company was overreaching its financial abilities to pay back new loans. See also: Creditor, Debt Arbitrage The opportunity to profit from a simultaneous purchase and sale of an asset; a rare and short-lived situation because market forces will close the gap between the purchase and sale prices, thus ending the opportunity. The speculator realized she needed to take advantage of the arbitrage before the window of opportunity closed and the market prices equalized.See also: Risk, Security A rbitrage is the opportunity to obtain a risk-free profit from the simultaneous purchase and sale of an asset, thus capturing the price differentials in similar or different markets. Such arbitrage opportunities are rare and short-lived as market forces will drive toward price convergence and eliminate such arbitrage opportunities. Arbitration A form of alternate dispute resolution in which a neutral third party hears the res pective positions and renders a decision. The contract disputes were eventually resolved when the company and the union were ordered into arbitration.See also: Conflict Resolution, Mediation A articles of incorporation 1 A Articles of Incorporation A document filed with the secretary of state of the state of incorporation detailing things such as a company’s purpose, powers under state law, classes of securities to be issued, and the rights and liabilities of directors and shareholders. One of the first steps taken by a new business needs to be filing its articles of incorporation so that every step thereafter is legal. See also: Board of Directors, Incorporate Articulate The ability to express oneself distinctly; able to speak effectively.The CEO was disappointed to learn that as articulate as she had been during interviews, the new employee didn’t have the skills or knowledge base to get the job done. See also: Persuasive, Understanding Artificial Intelligence (AI) Using the power of a computer or network to improve the quality of management decisions, particularly complex strategic choices. Many spam blockers use AI to filter out e-mail that is unsolicited, which in turn improves efficiency. See also: Computers, Data Mining, Expert System, Fuzzy Logic, Strategic Choices Asking Price The price an owner places on an asset he is willing to sell.The asking price is also viewed as a benchmark price where the buyer and seller can begin negotiations since an agreed-upon price has yet to be reached. During a housing boom, it is not uncommon for sellers to get above the asking price on a property. See also: Benchmark, Bid Price Aspirin Count Theory A market theory that suggests that aspirin production and stock prices are inversely related, therefore when stock prices drop, aspirin production increases. The aspirin count theory may be based on an old wives’ tale but it certainly makes sense as well. See also: Stock, Economics sset-based financi ng 1 Assertive The ability and willingness to speak up without hesitation, make a position known; characterized by decided, often emphatic, statements and actions. A good supervisor is able to juggle being assertive with diplomacy skills. See also: Attitude, Positive Assessment An official estimate of the value of something for the purpose of computing property tax. Based on the assessment, the house was worth far more than the young couple could afford to pay for it. See also: Taxes, Valuation Asset Lending The loaning of money on the value of assets offered as security.The lender is protected from loss by the liquidation value of the assets. Although she generally didn’t like asset lending, the antiques presented as security were worth the risk she incurred by offering the couple the loan. See also: Assets, Loan Asset Redeployment The strategic relocation of enterprise assets in order to increase profitability through improved competitive advantage. The small company decid ed to try asset redeployment to help bring in more money so layoffs wouldn’t be required. See also: Assets, Competitive Advantage, Strategy Asset Turnover A company’s total sales divided by its total assets.This ratio measures the overall efficiency with which a company uses its assets to produce sales. The higher the measure, the more efficient the business model. The investors were pleased to see the asset turnover on the rise after three straight quarters of watching the ratio fall. See also: Assets, Financial Ratios, Profit Margin, Revenue, Turnover Asset-Based Financing Financing an enterprise by using its hard assets for collateral to acquire a loan of sufficient size with which to finance operations. Asset-based financing can be a safe or a risky choice depending on the strength of the company being taken over.See also: Assets, Financing, Leveraged Buyout (LBO), Loan A assets 0 A Assets Anything on a company’s books considered as having a positive moneta ry value. Assets are reported on a firm’s balance sheet. Although the firm seemed financially secure, the accountants were beginning to become concerned about its dwindling assets. See also: Balance Sheet, Return on Assets (ROA) Assign To transfer a right or interest to another person. On his twenty-fifth birthday, the young man was assigned his half of his father’s share in the business. See also: Project, Resource AssumptionsFactors that are believed to be true and affect business planning. Assumptions may impact risk and should always be documented and validated. Organizations make assumptions about many internal and external factors, including customers, competitors, industry evolution, regulation, technology, and the organization’s resources, competencies, and cash flows. Inaccurate assumptions about the dot-com industry led to the bubble bursting in the 1990s. See also: Business Plan, Organizations, Resource At-Will Employment An employment policy that all ows employees and employers to terminate the working relationship at any time.Many seasonal and part-time employees are hired with an at-will employment understanding. See also: Employee, Termination Attrition A reduction in the number of employees through retirement, resignation, or death. Some downsizing may occur through attrition, while others take place more aggressively through layoffs and terminations. See also: Downsizing, Employee, Retirement, Rightsizing average selling price 1 Audit To examine an individual’s or organization’s records in an attempt to verify accuracy and legal compliance. Insurance companies may audit clinic records at least once a year, provided they offer reasonable notice.See also: Accounting, Adjustment, Due Diligence Authentication The process of confirming a user’s identity; commonly done through the use of passwords or digital certificates. Most credit card companies use security questions to ensure authentication of the calle r. See also: Authorization, Information Technology (IT), Password Authority Permission or approval to make decisions for team, organization, or firm; the power to command actions be taken; legitimacy to lead. In order to be effective, managers need to have the authority to make decisions without double-checking with the CEO or president.See also: Adhocracy, Delegation, Organizations Authorization Validating the authenticity of something or someone; approval of a bank card transaction by the card-issuing bank for a specified dollar amount. Authorization is a critical step in processing credit cards for purchase of merchandise online. See also: Authentication, Bank Card, Charge-Back, Credit, E-Commerce, Gateway, Power of Attorney, Sales Transaction Average Annual Growth Rate A measure of the rate of change in a firm’s annual sales. The average annual growth rate can indicate the overall health or weakness of a company.See also: Net Worth, Revenue, Sales Average Selling Price (A SP) The average price for all items sold during a particular time frame, usually calculated for a specific category or a single seller’s sales. Online auctions benefit customers because products can be bought well below the ASP. See also: Distribution, Price, Retailer A award  A Award A final decision that is rendered in favor of one party or something that is given on the basis of merit or need. Many people believe there should be no upper limit to what juries may award victims in malpractice suits. orThe team was thrilled to win the award, especially in light of the strength of the national competition. See also: Grant, Honor B Baby Boomers Consumers born from 1943 to 1960, characterized as experimental, individualistic, free spirited, social cause–oriented, distrustful of government, and generally cynical. As the largest generation cohort in America, they have dominated the market’s attention and driven product development. Many ad campaigns are directed to ward baby boomers’ reluctance to admit that they are aging. See also: Cohort, Market Research, Marketing Back OfficeAdministrative functions that support the processing of online transactions such as e-mail confirmations, shipping and tax calculations, packing slip creation, and report generation. For every online store, there is someone in front of a computer handling back office issues. See also: Administrivia, General and Administrative (G&A) Expenses, Overhead Back Order Part of an order that was not filled when the initial shipment was made. Back orders are usually shipped when the items become available, without requiring the customer to place a reorder. See also: Backlog, CustomerBack Pay Wages that an employee is entitled to when the employer is found to be in violation of standard employment practices. He received his back pay after going for an extended period of time without a paycheck. See also: Employee, Wage bailout clause  Backdating Placing a date on a docum ent that is prior to the date the document is actually drawn up; a process that makes a document effective from an earlier date. Both parties agreed to backdate the contracts to the day they had first discussed the arrangement. See also: Agreement, Contract, Stock Option BacklogCustomer orders on products that are planned for shipment or delivery in the future. The clerk was able to check the backlog and tell the customer when his equipment would be delivered. See also: Back Order, Sales Backup A copy of a file or application that is kept separate from the original as a precaution against data loss in the event the original is lost or destroyed; or (two words) to make a copy of original work. It is vital to keep a backup of all documentation stored on a hard drive. or He didn’t back up the data, so we lost last week’s work. See also: Computer, Data, Data Recovery, SoftwareBad Credit The result of a company or individual being late or defaulting on bill payment. He was concerned about qualifying for the loan because of the bad credit he had accrued while he was in college. See also: Credit, Default Bad Debt Money that is still owed on an account and is past due; a debt that cannot be recovered. Once the firm declared bankruptcy, its lenders had to write off their accounts as bad debt. See also: Debt, Insolvency, Risk Bailout Clause A clause in a contract that allows a party to get out of the contract. They decided to accept the bailout clause despite some reservations.See also: Cancellation, Contract, Negotiation, Termination B balance sheet  B Balance Sheet A statement of the book value of a business, corporation, or individual at a particular date. The balance sheet provides a snapshot of the organization’s assets, liabilities, and net worth or shareholder equity. Her business acumen allowed her to interpret a company’s balance sheet more accurately than most, so she knew what was a good investment even when others missed the opp ortunity. See also: Assets, Financial Statement or Reports, Fiscal Year, Income Statement, Liability, Net Worth, Profit and Loss (P&L) Statement Balanced ScorecardA process that enables organizations to translate a company’s vision and strategy into implementation by working from four perspectives: financial, customer, business process, and learning and growth. This not only allows the monitoring of present performance, the method also tries to capture information about how well the organization is positioned to perform in the future. The balanced scorecard enabled the consultants to understand where the company wanted to go in the future and help its staff understand how to get there. See also: Critical Success Factors (CSFs), Metrics, Organizations, Strategy, Teams, Vision BankA financial institution; a commercial institution licensed as a receiver of deposits; a business for keeping, lending, exchanging and issuing money. A bank-issued card that authorizes the holder to re ceive bank services and that often functions as a debit card is an important tool for any business. See also: Bank Statement Bank Card A form of payment using either credit or debit from a bank account; any valid card issued by a card association or other card-issuing organization that is presented in payment for goods and services or to obtain cash advances. Many people appreciate being able to use a bank card instead of having to carry cash.See also: Bank, Credit Card Bank Statement A record of a firm’s account that is regularly provided by the bank, either in print or online. Our accountant reconciles the firm’s bank statement each month. See also: Bank, Cash Basis Accounting, Deposit Transactions barrier  Bankruptcy A state in which an entity is unable to meet its obligations and seeks court protection from its debtors. If the bankrupt entity is a firm, the ownership of the firm’s assets is transferred from the stockholders to the bondholders. Shareholders are the last people to get paid if a company goes bankrupt.Secure creditors always get first grabs at the proceeds from liquidation. Also called Chapter 11. The company decided to file for bankruptcy rather than to accumulate more debt and destroy its reputation even further. See also: Assets, Creditor, Debt, Stockholder or Shareholder Banner Ad Internet advertising using graphics on a Web page to direct a viewer’s attention to a product or service. Banners link to further information and Web pages. The online store charged other businesses a small fee to have banner ads on its Web site. See also: Advertising, Hyperlink, Internet, Web Page, World Wide Web (WWW) Bar ChartA schedule that shows project activities with associated start and completion dates. The bar chart was posted where everyone involved with the project could see it and be sure to stay on target. See also: Activity Sequencing, Business Plan, Critical Path Method (CPM), Gantt Chart, Milestone, Projects Bar Code An identifying mark made from a pattern of bars and spaces. A bar code is generated for individual items based on the item name/number or stockkeeping unit (SKU) on the item record. If a bar code is ripped or missing, it can be difficult for clerks to find the price of an item. See also: Inventories, Inventory Control, RetailerBarrier Conditions that create difficulty for an organization to meet a goal or objective; something that prevents progress or success toward an end. There is a long-standing debate about how much of a barrier race and gender are in the corporate world. See also: Entry Barriers, Obstacles B barter  B Barter The exchange of one commodity for another without the exchange of money. Although the project had very limited assets, the team met its goals through a barter arrangement. See also: Commodity, Microeconomics Baseline The agreed-upon plan to which all subsequent plans will be compared for cost, schedule, and performance.The initial product was so successf ul that everyone agreed it would be unfair to use it as a baseline for the projects that were scheduled to follow. See also: Business Plan, Performance, Schedule Basis The cost or value of an asset as adjusted for tax purposes. Securities also have a basis, which is determined by the price an investor pays for the security plus any other incremental fees. The basis is then used to determine capital gains or losses for tax purposes when the stock is eventually sold. She had bought stock at a high price, but because she had been given more shares as a gift, the basis was very reasonable.See also: Capital Gains, Taxes Behavior A manner, action, or set of actions performed by a person under specified circumstances that reveal some skill, knowledge, or attitude; a way of conducting oneself. The goal of training is to teach new employees the proper behavior in any situation, including unexpected or stressful ones. See also: Attitude, Knowledge, Skill Beliefs Assumptions and convictions th at a person holds to be true regarding people, concepts, or things; an organization’s understanding of cause-effect relationships. Many people choose to work for organizations that share their political, social, or environmental beliefs.See also: Behavior, Convictions, Mindset, Organizations big, hairy, audacious goals  Benchmark A standard of reference used for comparison; a process of comparing practices within a company to the very best practices in some of the very best organizations, within and outside the industry; a process for measuring â€Å"best practice† performance and comparing the results to corporate performance in order to identify opportunities for improvement. The overwhelming success of the holiday ad campaign was the benchmark by which all other campaigns would be measured. See also: Competitive Advantage, Core Competencies, Metrics, Strategy BenefitsA collection of advantages; solutions offered to customers through a company’s products/ser vices; the advantages that are inherent in a product/service or that customers expect to receive and that motivate customers to purchase it. An effective ad campaign communicates the benefits of buying a specific product well enough that consumers believe they need the product. See also: Communication, Marketing, Sales Bid An offer of money in exchange for an item that is for sale. Once the national chain made a bid for the shops, the medium-sized businesses dropped out because they knew they couldn’t match the prices the larger company could offer.See also: Asking Price, Bid Price Bid Price A price offered by a prospective buyer to begin the negotiation process of buying a security or business asset. Although the firm had been in his family for years, the man was tempted by the increasingly high bid prices being offered by the competitors. See also: Bid, Negotiation Big, Hairy, Audacious Goals (BHAGs) A goal, vision, or plan that causes the organization to stretch to obtain the result; a challenge by leadership to an organization to fulfill a mission or strategy. By setting BHAGs, companies often accomplish far more than if they had set goals that would be expected to be met easily.See also: Catalytic Mechanisms, Goals, Strategy B bill of sale  B Bill of Sale A written agreement stating the terms by which ownership of goods is transferred to another party. It is wise to get a bill of sale for any large purchase item you cannot simply carry away. See also: Agreement, Term Sheet Bit The fundamental informational building block used by all computers. A bit is a single character in a binary number. The digital camera images contained 3 million bits of information. See also: Computer, Data, Information Blog A journal that is available on the Web; frequently updated, chronological entries on a particular topic.This word was created from the combination of the words â€Å"Web log. † These days, teenagers are as likely to host a blog in order to keep in touch with their friends as they are to use the phone. See also: Communication, Internet, Link, Media, Web Page, World Wide Web (WWW) Board of Directors A group of people elected by a corporation’s shareholders to oversee the management of the company. A board often consists of executive and nonexecutive directors. Executive directors play an active part in running the company, while non-executive directors are there to offer advice.The program supervisors reported to the board of directors on a quarterly basis. See also: Chairman of the Board (COB), Chief Executive Officer (CEO), Strategy Bonds Debt securities that pays the holder a fixed sum on a regular schedule for a fixed term. Bonds are issued by corporations and governments; they come in a wide variety of types. In the past, the United States government has issued war bonds in order to maintain a cash flow during wartime. See also: Debt, Security bookkeeper  Bonus A sum of money or equivalent incentives given to e mployees in addition to base compensation.Bonuses can also come in the form of extra vacation time, gifts, and other nonmonetary awards. Even when business was slow, the store owner made sure his staff received holiday bonuses to show his appreciation for their hard work. See also: Compensation, Intangible Rewards, Perquisite or Perk Rewards Book Inventory The balance of the inventory account after all incoming inventory is added and the cost of outgoing goods is subtracted. The book inventory type of perpetual inventory system is usually verified annually by taking a physical inventory and reconciling any discrepancies. See also: Accounting, Inventories Book ValueThe value of an asset as reflected in the books of the company owning the item. The book value of the items at auction could never accurately represent the sentimental value several of the pieces had to the buyers. See also: Accounting, Assets, Balance Sheet, Liability, Net Worth Book-to-Bill Ratio A measure of sales trend s of a company or overall industry. The ratio divides the amount of new orders â€Å"booked† by the value of the products shipped each month (or â€Å"billed†). The strength of the technology industry can be measured in part by watching the book-to-bill ratio every month. See also: Ratio Analysis, Revenue, Sales BookkeeperA person who records the accounts or transactions of a business in a general ledger. The store owner hired a bookkeeper to handle finances when she opened her second shop. See also: Accounting, General Ledger B bookkeeping 0 B Bookkeeping The practice or profession of recording the accounts and transactions of a business through a systematic and convenient record of money transactions in order to show the condition of a business enterprise. Having an accurate and trustworthy bookkeeping staff is vital to the success of any large business. See also: Accounting, Bookkeeper Bookmark A marker or address that identifies a Web site or Web page.Most Web bro wsers allow users to save and organize bookmarks as a convenient way to mark Web sites for future reference. Most browsers have a section called â€Å"favorites† where users can bookmark their favorite sites for easy access. See also: Application Software, Web Page, World Wide Web (WWW) Boom A period when business expands and the economy experiences rapid growth and rising prices. During such a period, there is an increased demand for goods and services and unemployment rates fall. The boom that resulted after the election showed the country’s faith in the new president’s economic policies.See also: Demand, Economics, Leading Indicators Boot Camp An indoctrination program in some aspect of leadership or management; going to such a program means being immersed in a discipline or topic with a group or team of cohorts. The board recommended everyone on the management team attend boot camp on cultural differences before the expansion into Europe took place. See also : Leadership, Teams Bootstrapping A management approach that uses internal methods to generate money to be used for a proposed project or venture; a low start-up, pay-as-you-go approach to launching businesses.Many managers believe that bootstrapping rather than waiting until a new company has more than enough start-up monies helps create a sense of excitement and energy that bonds the staff and makes the company stronger in the long run. See also: Seed Capital, Start-Up, Venture Capital brainstorming 1 Boston Consulting Group Box (BCG Box) A framework for analysis and communication strategy for a business with a portfolio of products, services, programs, strategic business units or companies. The consultants used a BCG Box to present the analysis of the programs.See also: Cash Cow, Competitive Advantage, Dog, Harvest, Strategic Business Unit (SBU), Strategy Bottleneck Anything that slows down or impedes by creating an obstruction or that halts the progress or flow of an activity, process, or operation in an organization. The computer glitch caused a bottleneck throughout the entire production line. See also: Barriers, Obstacle Bottom-Up An estimating technique in which every activity is individually estimated and then added together to determine the total project estimate. Each department was required to provide the CEO and the treasurer with a bottom-up budget every year.See also: Budget, Business Plan, Decentralized, Organizations, Planning, Structure Bottom Line The line in a financial statement that shows net income or loss. Based on the bottom figure on a profit-and-loss statement, it refers to an organization’s most important measure of success: profits. Even established businesses must keep an eye on the bottom line in order to continue to be successful. See also: Income Statement, Loss, Profit, Valuation Brainstorming A management technique used to foster ideas, solve problems, set goals, establish priorities, and make assignments for employee accomplishments.As a semistructured creative group activity, this method is used most often in ad-hoc business meetings to come up with new ideas for innovation or improvement. The committee came up with several good fundraising ideas in one brainstorming session. See also: Creativity, Innovation B brand  B Brand The symbolic embodiment of key information that differentiates a product or service from the competition. Brands matter because companies act just like people when it comes to evaluating what products or services to buy. Many teenagers can identify popular brands faster than they can identify current world leaders.See also: Brand Equity, Brand Loyalty, Brand Management, Customer Loyalty, Marketing, Value Proposition A brand and branding today is a strategic tool that helps the supplier cut through the morass of the market, get noticed, and connect with the customer on many levels and in ways that matter. Consumers are drawn to brands’ irrational benefits (status, prestige, affinity, self-security). Business customers specify and purchase based on rational drivers (pricing, product performance, metrics). Brand Equity The total or intrinsic value of a brand.Awareness of a firm’s products or services are measured by consumer goodwill, l

Blythebourne School Essay

Blythebourne School is a public school in Brooklyn, New York, that defies national averages for inner city schools and appeals to parents and students alike. The school is unique in its make-up, in terms of socio-economic factors and racial factors. The school is made up of a largely Asian and Pacific Islander community with more than 75 percent of students identifying with that racial classification. Another 10 percent each are Hispanic or Caucasian. There is less than 1 percent of the schools population that identifies itself as African-American. In addition, almost 90 percent of the children who attend the school receive free or reduced lunches, an indication that they are living at or near the poverty line. Further complicating things for the teachers and staff of Blythebourne is that more than 40 percent of their students have difficulty with the English language, indicating that many are not native English speakers. This school also has less than 3 percent of its population in individualized education plans, the programs formerly known as special education, to assist people with learning difficulties or special needs, including speech or hearing difficulties, etc. Testimonials about the school from students and teachers alike praise the school as a wonderful place to be with teachers that care. In addition, teachers at the school are more well-educated that their compatriots across the state. At the average New York school, 20 percent of the teachers hold only a bachelor’s degree. At Blythebourne, only 13 percent hold just a bachelor’s degree; 87 percent have a master’s degree. Most of the children at Blythebourne are of Chinese descent, first-generation immigrants, who speak English as a second language and yet they routinely meet and exceed state averages in test results. The school has become a charter school emphasizing programs for â€Å"Everyday Math† to make students more able to use math in practical terms. The school embraces the multi-cultural heritage and promotes it with typical grade school activities combined with Chinese language and history. As part of federal funding requirements through the No Child Left Behind Law, every public school has its yearly progress toward state-wide goals measured. The state sets a required percentage of students in all major groups and in all sub-groups that must exceed the base requirements of state achievement tests. If a school meets those requirements in all its groups combined, it is said to be making adequate yearly progress. School report cards indicate show whether the school is making their AYP (adequate yearly progress) in each of its sub-groups as well. In the case of Blythebourne, the sub-groups are based on gender, race, and socio-edonomic status. According to the school’s web page, Blythebourne is making AYP in all its sub-groups, an impressive task since most schools are not able to keep consistent results across the curriculum. The amazing thing about the Blythebourne School is that the results are averaging higher than statewide results even with children who may not have spoken a word of English before beginning school. Three-quarters of these same kids, by the time they reach third grade, are exceeding standards for English proficiency. Statewide, only 67 percent of third graders can exceed the standards. Equally impressive is that through all three grades tested, 95 percent of the students at Blythebourne school exceed the standards for math proficiency. That math proficiency is universal across the sub-groups and consistent, with almost no statistical difference between the three grades. In the spring of 2007, fourth grade students at the Blythebourne school were not as proficient as the class the previous year had been and fell short of the statewide standards, but only by a few percentage points. Perhaps of note is that the test results in English Language Arts fell dramatically in all three grade levels from 2006 to 2007. Proficiency fell from 90 percent to 76 percent in the third grade; 75 to 64 percent in fourth grade and 78 to 63 percent in the fifth grade. Statewide in fourth and fifth grade, proficiency was 68 percent. The reasons for the dramatic drop in results is unclear, but should be further explored. Parents who are contemplating enrolling their children in P. S. 105, otherwise known as Blythebourne, might want to further investigate these anomalies. According to other statistics, the other thing that may concern parents is the potential for overcrowding at the school. Current class loads indicate an average of 15 students per teacher, but because this is a public school and subject to whims of the school board and the ever-fluctuating population. However, there are equally valid reasons to seek out a school like Blythebourne. For example, the school has adapted to the cultural heritage of the majority of its students into its curriculum, allowing Chinese students to learn their new language without abandoning the heritage. Observers also say the school and its teachers work hard to actively involve students in the learning process, letting them actually observe ice melting as a way to understand â€Å"Cold† and often sacrificing administrative space to give as much room as possible to their students. The district has crushed more than 1,600 students into a building that was stressed with 1,200. Additional public schools have been opened nearby, but the constant immigration into the area leads the school to enroll students year-round. Another note in favor of the Blythebourne school is that students there actually attend school. As any teacher can attest, students can’t learn if they aren’t there. With a 95 percent attendance rate, students and parents in the Blythebourne school obviously make education enough of a priority that they get to class. By getting their children to school on a regular basis, parents with the school’s service area are showing their commitment to education. If that commitment follows through in terms of parental involvement in the school and follow through in their child’s education, then schools around the country would do well to learn from the Blythebourne example. Numerous schools cite lack of parental involvement and attendance issues as among the biggest problems they face. Based on the ranking system provided at one website, Blythebourne is in the top 20 percent of schools in New York. In that ranking, where 1 is the lowest and 100 is the best, Blythebourne ranked 81. For a public school with almost half of its students made up of recent immigrants, the ranking is phenomenal and any parent should be happy to have their child attend P. S. 105, Blythebourne School.

The Broken Column and Olympia Essay Example | Topics and Well Written Essays - 750 words

The Broken Column and Olympia - Essay Example The essay "The Broken Column and Olympia" focuses on the comparison of two paintings, "The Broken Column" and "Olympia". Common artistic practice and subjects within cultures suggests Ancient Egyptian art was created as a means of commemorating important people and the ancient Greeks made art to help them worship their gods and goddesses and to preserve their cultural myths. The Romans seem to have adopted elements of the Greek style and fused it with elements of the Egyptian style to develop an artistic approach intended to inspire and celebrate their cultural achievements. After the fall of Rome, the art of the Middle Ages became dominated by themes of Christian religious myths in order to reject the Paganism of the fallen Empire, incorporating religious, political and educational purpose. From here, the art of the Renaissance reflects the re-discovery of more ancient art forms fused to new scientific advancements giving it a historical and experimental purpose. As this skip throug h art history demonstrates, it is easily understood that art can be used for several purposes and it is often inspired or developed in some way so as to build on the past while reflecting the attitudes of the present. As an aspiring animator, the art that appeals most to me is that which takes risks and adopts a more modern or simplified representation of subject such as Edward Manet's groundbreaking "Olympia" entering into the modern period or Frida Kahlo's "The Broken Column" as an expression of surrealism. ... More than that, she is clearly successful in that she has a servant and lives within a very rich environment. Her servant is so dark that she almost becomes lost in the background color of the painting even though she stands at the edge of the far side of the bed. Because of the way he created the painting, Manet leaves it widely open to interpretation. â€Å"The public nakedness of a beautiful woman sometimes becomes a question of politics †¦ which actions are permitted under which unspoken and frequently changing rules† (Friedrich 1). Her appearance within the rigidly proper Victorian culture was shocking because she was seen as a very successful, beautiful and independent woman as compared to the mostly powerless women of the age. Therefore, her representation within polite society was a direct challenge to the rigid ideals of propriety and purity because the painting suggested that her behavior and character were accepted and even condoned within her society. In †Å"The Broken Column† (1944), Kahlo uses dreamlike images to illustrate her personal pain and suffering and line to hold everything together while also demonstrating an independent woman. The broken column of the title refers to the internal structure of Frida’s spinal column. This spinal column is seen through the torn skin and loosely twined bandages that are the only things holding her together. The broken column symbolizes her lack of a support structure and represents her sense of imbalance at the same time that it indicates one of her major sources of pain. Her skin is pricked all over with tiny pins, demonstrating that she is never free of the smaller pains of daily life. The pins continue down the right side of her body, which is the side that had been crippled by both

B. Activity Essay Example | Topics and Well Written Essays - 250 words

B. Activity - Essay Example This way, I would be able to figure out how different Nora is compared to the rest of her classmates in terms of the level of creativity, resourcefulness, and especially the manner by which she expresses herself as well as the content of all her responses. Her degree of responsiveness on certain issues discussed would aid me in detecting an aspect of her conflict. Moreover, I would continue to keep in touch with Nora’s friend in private for updates and probably ask how Nora is coping with her concerns at home or any parts of the community beyond school. I think it might help to advise Nora’s friend to stay by her side during the moments she appears disturbed or bothered to see how his or her comforting presence may prevent any tendencies of self-infliction by Nora. If I can get her to open up to me what the real problem is behind her cutting of wrist in this process, my role as a teacher I suppose could go as far as communicating with her parents, yet only at the hint of her consent or whenever she feels ready. Meanwhile, I ought to proceed teaching the class, of which Nora is part, the essence not merely of academic endeavor but even the values associated with overcoming life’s

Managerial Economics in MBA Essay Example | Topics and Well Written Essays - 1500 words

Managerial Economics in MBA - Essay Example Measuring marginal opportunity cost should reflect the intricate ecological and physical inter-linkages that exist within an ecosystem, allowing for the relationship between soil erosion, deforestation, sedimentation, and stream-flow. In turn, the marginal opportunity cost is comprised of direct costs from the use of resources, externalities that arise from inter-linkages of the ecosystem, and user component that comes from the use of resources in a non-sustainable way. 1. Most of Europe’s coal mines have closed down. There are still large reserves of coal available. Under what circumstances would you envisage businesses opening up coal mines and exploiting these resources? Europe still possesses plenty of coal resource reserves. In some cases, these are not easy to access although they can still be mined. The question that arises when considering the probability of their exploitation is their economic viability. The decline witnessed in the 80s regarding mining of coal, as well as the closure of mines, was done because extraction costs for coal became too high given the shifting focus of the global market (Ali & Jeffrey 21). The market began to move towards the use of gas to produce electricity, as well as the use of coal from countries where mining was extra economically viable. However, as Europe becomes a net exporter of gas and oil again as supplies start to run out, they will be forced to be more reliant on supplies of gas from unfriendly economies like Russia or price-hiking Sheikhs from the Middle East. As the price of gas continues to rise due to these factors, the development of technology will alter the relationship that exists between coalâ €™s marginal cost and its marginal revenue (Ali & Jeffrey 21). Another way that coal could become viable again is a new method of making it clean in order to offset its environmental destruction (Ali & Jeffrey 29). Coal causes major environmental destruction, and for its marginal revenue to be above its marginal costs, then it has to be cleaned. Several European countries have begun efforts towards this. One technology, which could see the environmental cost of coal go down, is carbon capture technology.

Perfume Brands Calvin Klein & Bvlgari Essay Example | Topics and Well Written Essays - 500 words

Perfume Brands Calvin Klein & Bvlgari - Essay Example CKCC was a Unilever brand until few years back but its licensing agreement was then bought from Unilever by Coty Inc. Calvin Klein perfumes were known for its premium brand value and extremely good fragrance of all kinds. Eternity and Obsessions are the two popular perfume varieties of CK. These two are offered for both men and women. Bvlgari is the Italian luxury goods manufacturer. Like CK, Bvlgari too has wide array of luxury perfumes catering to the needs of men and women. Voile de Jasmin, Aqua, Pour Homme, Omnia and Rose Essentielle are the popular Bvlgari fragrances. All these names are well placed in the premium perfume segment. Together, CK and Bvlgari form the biggest names in the luxury fragrance industry. Main body Behind the huge success of the brands are not just the marketing activities alone. A major part of the success can be attributed to the perfumers who are in continual efforts to develop the best formula that gives the heavenly fragrance. There are basically two types of fragrances based on the skin scents. The first kind emits its own fragrance or forms the major portion of the overall smell. The second kind helps to enhance the skins own scent by giving it a better fragrance. Compared to CK, Bvlgari is more specialized in the second kind which is more unique. Another factor that differentiates both the brands is the customers that they target.

Critically examine the similarities and differences between public and Essay

Critically examine the similarities and differences between public and private nuisance. Support answer with relevant statute and case law - Essay Example Although such obstruction may cause inconvenience to many persons but none can be allowed to bring a civil action for that, otherwise there may be hundreds of actions for a. single act of public nuisance. To avoid multiplicity of suits the law makes public nuisance only an offence punishable under criminal law. In certain cases, when any person suffers some special or particular damage, different from what is inflicted upon public as a whole, a civil right of action is available to the person injured. What is otherwise a public nuisance, also becomes a private nuisance so far as the person suffering special damage as concerned. The expression special damage in this context means damage caused to a party in contradistinction to the public at largest For example, digging trench on a public highway may cause inconvenience to public at large. No member of the public, who is thus obstructed or has to take a diversion along with others, can sue under civil law. But if any one of them suffers more damage than suffered by the public at large, e.g., is severely injured by falling into the trench, he can sue in tort. In order to sustain a civil action in respect of a public nuisance proof of special and particular damage is essential. The proof of special damage entitles the plaintiff to bring a civil action for what may be otherwise a public nuisance. Thus, if the standing of horses and wagons for an unreasonably long time outside : mans house Creates darkness and bad smell for the occupants of the house and also obstructs the access of customers into it, the damage is ‘particular, direct and substantial’ and entitles the occupier to maintain an action.(Benjamin v. Storr,(1874) L.R.9C.P.400) In ‘Rose v. Milles’(1815; 4M.&S.101): the defendant wrongfully moored his barge across a public navigable crack. This blocked the way for plaintiffs barges and the plaintiff had to incur considerable

Business Strategy - Jobcentre Plus Essay Example | Topics and Well Written Essays - 2000 words

Business Strategy - Jobcentre Plus - Essay Example Jobcentre's culture will be driven by the clear objective set by Ministers of "work for those who can, support for those who cannot." This clear work-focus will be apparent in everything Jobcentre do for Jobcentre's customers. Jobcentre plus will emphasize to them the link between benefits and work, with their associated rights and responsibilities. This will include a determination to reduce fraud and irregularity by ensuring that only those entitled to benefits receive them. But Jobcentre plus will also be about a much higher quality of customer service. Jobcentre plus will build on the existing successes of the Benefits Agency and the Employment Service by introducing more personal advisers with greater flexibility; more contact to keep people in touch with the labour market; more focus on meeting employers' needs and more emphasis on benefit integrity and accuracy. Jobcentre's service will treat each customer as an individual rather than as one of a group narrowly defined by benefit entitlement. Jobcentre's aim will be to tailor what Jobcentre can offer to what each individual needs. For instance, Jobcentre plus will take care to treat disabled people according to their individual circumstances. As a further example, parents who want to return to the workplace will be offered guidance to identify and relate the skills they have acquired as parents to those required by employers. For employers Jobcentre plus will provide a much more outcome-focused and professional service based on improved communications, dedicated vacancy service managers and local account managers, building on the foundations already laid in the New Deal and more widely. Jobcentre plus will deliver Jobcentre's services through the full range of channels offered by modern technology, including the internet, touch screen terminals and customer service centres. Jobcentre aim to offer employers in the Pathfinders a more effective service which responds to their requirements. Jobcentre plus will do this by working with them to understand their needs and the demands of the different industry sectors in which they operate. This means co-operating with employers, the local Learning and Skills Councils and other local training and education partners to customise training to meet industry and local employer needs. Jobcentre also aim to be better at matching the people without jobs to the jobs without people. This will involve us working with individuals to prepare them for the needs of employers and also working with employers to ensure they can make use of

Apple Inc. in 2010 Case Brief Essay Example | Topics and Well Written Essays - 750 words

Apple Inc. in 2010 Case Brief - Essay Example However, ranking it as the industry leader would have a great challenge especially due to its performance in the mid-1980s and early 1990s when it registered great fluctuations in profit. At some time, they even ran at a loss of $1.6 billion under the watch of one Amelio (Yoffie & Kim, 2). It enjoyed a considerable market price share of about 16% in the 1980s, which would gradually reduce to about 2% in 2007 before starting to rise slowly. Apple transcended the market due to the uniqueness of their products as compared to its competitors. They invested more on R & D as compared to the rest of the providers to ensure that efficiency was the key to their product. They integrated their OS with other providers like Microsoft and UNIX to come up with a better processor. This satisfied the taste of different customer leading to greater and variable sales (Yoffie & Kim, 5). The introduction of the digital hub saw a big improvement in the microprocessor products. Products like the iPod, iTunes, and iPads revolutionized the industry and were a big challenge to the smartphones. They also introduced PCs that were convenient to use and save much of the customers working space. This was contrary to what other competitors had provided. Apple works in a dynamic market that needs creativity and innovation to succeed. The players in the market are so competitive that failure to come up with a new and different product will lead to the company’s downfall. This is a type of market where weakened companies are bought with stronger ones to help beat their competitors. Alternatively, the providers have to venture into many products to survive. Apple would not survive on PCs alone, which led to their venture in other products like phones, MP3s, PlayStations, and even online clip sales.  

Personal Training Essay Example | Topics and Well Written Essays - 500 words

Personal Training - Essay Example Here is the menu: The Biggest Loser’s Diet: It is a 12-week program, containing menu that is loaded with fiber and protein, and so, one stays energized while lowering calorie intake. Total calorie intake will be around 1,200. This is based on four servings of fruits and veggies; three of lean protein; two of whole grains; and one serving of choice. This diet suggests exercise (Zelman, 2003b), which is good for intense training. This plan focuses on healthy eating habits, and thus, the results can prove to be long lasting. Since physical activity is involved in combination with consumption of fruits, veggies, and lean meat, this diet plan is very favorable for intense training. The Caveman (Paleo) Diet: This is a very healthy diet plan. It is â€Å"based on eating plants and wild animals† (Zelman, 2013c). It has many benefits, like reducing blood pressure and cardiac diseases, while maintaining healthy body weight. This diet plan includes consumption of meat, fish, shellfish, eggs, tree nuts, vegetables, roots, fruits, and berries. No dairy, grains, sugar, and oil is involved. Drinks must include only water and organic drinks. Since this diet suggests eating like cavemen did before agricultural revolution, there is increased chance of long lasting and natural results. It also suggests physical activity, so it can be recommended in intense training. There is no fixed number of days, so, it can be used randomly to maintain a healthy weight. Comparison: A comparison of the three diet plans shows that the 3-day diet plan is the worse, since it is the lowest in nutritional value; cannot be taken for intense training; and, the weight comes back soon. The biggest loser diet is better since it suggests physical exercise, and offers a variety of food to be eaten. The caveman diet is the best since it is based on natural standards of eating habits and physical exercise, and does not focus only on burning calories. It also recommends

Drinking Age Dialectic Essay Example for Free

Drinking Age Dialectic Essay Everyone should be able to go to social organizations for the community or school. Sometimes not everyone can attend though because of alcohol being served. Teens enjoy going to see their favourite bands play when they come near by. Some are held in bars which limit the people who can go. Lowering the drinking age to 18 would open up safer and monitored drinking locations for those teens. The Sask. Party should recognize that a lot of good can come out of lowering it rather then all the drinking and driving aspects of it. It is moral and ethical to consider lowering the drinking age. This is not an argument of, ‘Should 18-year-olds be drinking?’ This is an argument of, ‘Should 18-year-olds be drinking legally?’ That is the fundamentally difference. One of the highest rates of impaired driving is among younger adults because they don’t think of the consequences. Even the best crafted law can only be applied after it’s been broken. If the drinking age does go through that does not mean there will be any less accidents or anymore accidents, people are going to drink and drive whether they can legally drink or not. It is immoral and unethical to consider lowering the drinking age. Saskatchewan already has one of the highest impaired driving rates in the country. There is understandable concern about a potential increase in impaired driving. Politicians have wrestled with the appropriate drinking age for decades. With the drinking age possibly going down is raises worry with drinking and driving. This is not an argument of, ‘Should 18-year-olds be drinking?’ This is an argument of, ‘Should 18-year-olds be drinking legally?’ That is the fundamentally difference. Nathan Sgrazzutti spoke in favour of lowering the drinking age because it would improve student safety and increase the number of major events students could attend. Generally, first year students are 18 and excluded from attending many student union-organization events because they typically include alcohol. Should students be able to drink in an establishment where there are bounces to protect them and bartenders to cut them off when they’ve had too much or drink at home where they can get blackout drunk with no one around to pass out in their own vomit which is dangerous. It would be better for 18-year-olds to drink at a safe place and be able to attend more school functions that may have not of been able to before. One of the highest rates of impaired driving is among younger adults because they don’t think of the consequences. If the drinking age gets lowered the main purpose would be to ensure that people who are drinking no matter the age find a safe ride home. â€Å"Our focus regardless of the legal drinking age is make sure people aren’t drinking and driving,† said Rebecca Schultz, SGI’s manager of media relations. If today’s youth want to drink, they are going to find a way to get alcohol, check out Facebook and you will see plenty of teenagers posing in groups holding up their Red Solo cups. Teens and young adults are going to drink no matter what making sure they have a safe ride is something that does matter though. Politicians have wrestled with the appropriate drinking age for decades. Eighteen-year-olds who can’t legally drink need to only cross an imaginary line to enter a jurisdiction where it is legal for them to drink. Lowering the drinking age will likely reduce underage drinking rates since the novelty and thrill of drinking when it’s prohibited will wear off. At 18 one is considered an adult, able to vote, purchase tobacco and lottery tickets but not alcohol. If at 18 you are considered an adult you should be able to drink in all provinces not just some when all you have to do is go on a trip to go and drink legally. Saskatchewan already has one of the highest impaired driving rates in the country. Drinking and driving is most common among young people ages 18-25. According to SGI, there were 1 284 alcohol-related collisions in 2011, 59 of those involved where 18 and 66 where 19. SGI says alcohol is the No. 1 contributing factors to fatal collisions in the province. If alcohol is a big deal in fatal collisions we should start thinking about raising it not lowering the drinking age. There is understandable concern about a potential increase in impaired driving. After a record low of 46 deaths in 2005, 2006 and 2007 alcohol related fatalities have since risen. Over last Christmas and New Year, three people died and 64 were injured in alcohol related collisions. Statistics show that impaired driving charged had jumped nearly three-fold on year after the drinking age slipped to 18 years ago. If impaired driving causes so many deaths we should stricken the laws and leave the drinking age. Politicians have wrestled with the appropriate drinking age for decades. Until 1969, when it was lowered to 19, the legal drinking age in Saskatchewan was 21. 36 years ago when a majority of the Saskatchewan MLA’s in a free vote opted a to nudge up the age to which people could legally drink in the province to 19 from 18. Many of the same arguments bubble up again except this time its about lowering it from 19 to 18. Every province should have the same drinking age and stick with it instead of always changing them. What if my child could legally drink at eighteen? Making sure they had a safe ride home even if it meant calling to ask for one would be a main priority. I know they are going to drink anyways whether it is legal for them to do it or not. I would feel better knowing that they are at a bar where there are people to monitor them then at a party where people do not care. If my child is going to drink I would sooner it be legal for them to do so they are not sneaking around where no one knows where they are. What if every was able to legally drink? If everyone was able to drink places would be ciaos and full of alcoholics. You would need to stricken the drinking and driving laws to prevent collisions. It would create more jobs as the demand for alcohol would be higher. If everyone drank life would take a turn for the worse but there is also no harm in lowering it one year. With all these points the Saskatchewan Party will have to take a long hard look towards lowering the drinking age to 18. The Sask. Party government should look into how other provinces try to prevent impaired driving collisions. Drinking and driving is going to occur no matter what the legal drinking age is. Teens are finding ways to drink now and will continue to find ways if the drinking age stays the same. No one really knows the appropriate drinking age or will they ever know if nothing ever changes. Sometimes change can be for the better and people are mature enough to deal with it and other times it turns out bad but you can’t find out what will really happen by looking at statistics and predicting what is going to happen.

Impact of Human Resources Management

Impact of Human Resources Management Robert Proctor Introduction The purpose of this paper is to answer questions about the Human Resource Managers impact during organizational changes or challenges and two questions about my experience with change and challenge with the support of the Human Resource Management of my organization the Navy Personnel Support Detachment (PSD). What are the competencies of a Human Resource Manager? One writer defines Human Resources competencies skills sets as intrinsic characteristics which exhibit themselves through ones personal traits, habits, motives, social roles, and self-image. All these attributes enable a person to deliver excellence in performance in any given job, role, or situation (Darvish, Moogali, Moosavi, Panahi, 2012). Snell and Bohlander categorizes these competencies into mastery sets called: business mastery, human mastery and personal credibility (Snell Bohlander, 2012). In my opinion, I see the position of the Human Resources Manager as being that of a middleman in any organization who is tasked with providing the human touch within the organization. As the writer states above, they are the branch of any organization that must operate at the highest level of proficiency in all areas. The Human Resources Management department of my organization (Department of the Air Force) in my experience is a group of people who one can rely on to have answers to a sundry array of issues personally and professionally. I have heard from others of their experiences with HR departments, in their organization, which resulted in less than the standard manner of excellence that one would expect. How a change/challenged was introduced in my organization? The scope of operations for the unit I am assigned to which is the San Antonio Navy Personnel Detachment is to provide administrative and financial services for staff and student military personnel stationed at Joint-Base San Antonio (Fort Sam, Lackland AFB, and Randolph AFB) and the surrounding reserve unit and recruiting commands that are in and around San Antonio and as far north as Austin, Texas. The Department of the Navy Human Resources branch recently conducted a work survey of various personnel support detachment. My unit was involved in that survey. Because of that survey, there was a worldwide operational reconfiguration plan implemented for the realignment of all Navy Personnel Support Detachments. The purpose of this reconfiguration was to consolidate the detachments due to an implementation of an e-resource which took away many of their tasks when it allowed sailor level self-service for many of their administrative and personnel services. This resulted in a need for reduction and an overhaul the current support detachments configuration. This reduction in support detachments was accomplished through consolidation by realignment of support detachments. Because of that change, our unit became the command center for two outlining units (Houston and Corpus Christi). What this meant to us is the demographics of our customer base not only increased in sizes but the complexities of administrative action we would conduct changed as well. Typically, our standard client is enlisted initial entry and retiring Navy personnel. What is the appropriate HR Manager response to for this change/challenge? The HR Department has approached this change from a proactive perspective. We were provided numerous briefings at least 12 months prior to the changed in the configuration that kept everyone informed of the event and provided enough space to answer any concerns as the project moved forward. Once the change began and during the hand-off phase, we were kept in the loop at the leave where the change would affect us the most. Due to the proximity of the units, we inherited the leadership team at the local level began to operate in a flexible fashion that is partly reactive and partly proactive. This flexibility allows the leadership team the opportunity to identify any faults in their operating process to help them better integrate with the command. If they have not accomplished this step yet, I believe Navy HR Department and the local Leadership staff should have an action plan in place that outlines appropriate training requirements that ensure everyone is operating from the same stand ards. Was the involvement of the Human Resources Management beneficial with this change? Overall, the change has progressed fairly smoothly. Though there have been a few miscues along the way, I see the process going forth as efficiently and professionally as it can be done. The leadership has visited the outlining units frequently. And as we receive work from these units, many of the clerks at the command level are noticing a decrease in errors and issues. I believe much of the success in this transition is due in part to the oversight of the Department of the Navy HR department who continue to facilitate the change to ensure the changeover results in a seamless and disruption-free transition. Conclusion The purpose of this paper was to answer questions about the Human Resource Managers impact during organizational changes or challenges and two questions about my experience with change and challenge with the support of the Human Resource Management of my organization the Navy Personnel Support Detachment (PSD). References Darvish, H., Moogali, A., Moosavi , M., Panahi, B. (2012, September 30). Survey relationship between human resources roles and human resources competencies. International Journal of Academic Research in Business and Social Sciences, 2(9), 8. Retrieved from http://www.lexisnexis.com.uiwtx.idm.oclc.org/hottopics/lnacademic/?verb=srcsi=400870sr=HEADLINE(Survey+Relationship+between+Human+Resources+Roles+and+Human+Resources+Competencies)%2BAND%2BDATE%2BIS%2B2012 Snell, S. A., Bohlander, G. W. (2012). Managing human resources (29th ed.). [VitalSource Books]. Retrieved from https://www.vitalsource.com/

FMCG Market Analysis

FMCG Market Analysis EXECUTIVE SUMMARY The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer upgrading in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry. Rapid urbanization, increased literacy and rising per capita income, have all caused rapid growth and change in demand patterns, leading to an explosion of new opportunities. Around 45 per cent of the population in India is below 20 years of age and the young population is set to rise further. Aspiration levels in this age group have been fuelled by greater media exposure, unleashing a latent  demand with more money and a new mindset. The importance of consumer sales promotion in the marketing mix of the fast moving consumer goods (FMCG) category throughout the world has increased. Companies spend considerable time in planning such activities. However, in order to enhance the effectiveness of these activities, manufacturers should understand consumer and retailer interpretations of their promotional activities so that appropriate differentiation can be used. Retailers stated that role of word of mouth and television advertising was very important in providing information inputs to the consumers regarding sales promotion activities. This perception of retailers was supported by the consumer unaided recall of sales promotion schemes which were widely advertised. The research concludes with the discussion of the results, managerial implications limitation of the study and future research directions. CHAPTER 1 INTRODUCTION I. ABOUT THE DISSERTATION INTRODUCTION Advertisements convey brand differentiation and this may be important in several categories, which consist of several brands. In FMCG products like tea, coffee and detergents, â€Å"differentiation awareness† can be created by television advertising, but in certain categories there may be a need to demonstrate the effectiveness of brands. Differentiation with which consumers cannot â€Å"connect† may have a negative implication and if a brand â€Å"connects† consumers with its differentiation, it is likely to also differentiate itself in terms of getting identified with the consumer. A detergent or a washing machine, which claims â€Å"low water consumption† has to demonstrate this claim at a retail outlet especially given the fact that the quality of water varies across areas even in a specific geographical region. It is also essential that a good â€Å"differentiation proposition† result in a positive word-of-mouth. In a certain situation, the company may have two offerings in a product-line and there is a need to differentiate them clearly depending on the target segments involved. This is a complex situation where differentiation decides the growth of the brand and the perceived difference between the offerings. An added layer to the complexity is the same brand name being used for the offerings. Fairness cream is a category in which the benefit is the fairness of the complexion. A brand like Fair and Lovely built over the years still has a strong association with the category but under tremendous pressure from competitive brands and the most important criteria which these brands is the herbal touch associated with them. Herbal ingredients are becoming popular with consumers in several categories and personal care in India has a strong tradition of herbal care. Fair and Lovely had to launch its herbal variant (it used the same brand probably because of the brand equity built up over the years) . The interesting fact is the differentiation being conveyed by advertising. The original version uses an aspiration route in which the brands ultimate benefit is success through confidence. Estimates based on Chinas current per capita Consumption, the Indian FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. The dominance of Indian markets by unbranded products, change in eating habits and the increased affordability of the growing Indian population presents an opportunity to makers of branded products, who can convert  consumers to branded products. Penetration level in most product categories like jams, toothpaste, skin care, hair wash etc in India is low. The contrast is particularly striking between the rural and urban segments the average consumption by rural households is much lower than their urban counterparts. Low penetration indicates the existence of unsaturated markets, which are likely to expand as the income levels rise. This provides an excellent opportunity for the industry players in the form of a vastly untapped market. Moreover, per capita consumption in most of the FMCG categories (including the high penetration categories) in India is low as compared to both the developed markets and other emerging economies. A rise in per capita consumption, with improvement in incomes and affordability and change in tastes and preferences, is further expected to boost FMCG demand. Growth is also likely to come from consumer upgrading, especially in the matured product categories. CHAPTER 2 I. LITERATURE REVIEW Impact of Effective Advertisement on Consumer Attitude Dr. F.R. Alexander Pravin Durai By going through this article I have come across some points which you should look upon. If you want to read the article it is present in the appendix. Following are some points:- Advertising is the only direct method which helps to reach masses of potential buyers. Advertising, being dynamic, changes with changing methods of distribution and consumption. In the present era of information explosion and media influence, these advertisements playa major role in changing the settled perception or thinking, which is otherwise called attitude, of the consumer and · also the consumption pattern of the society in general. Thus, the impact leads to cultural and social changes to a great extent. Why is there a need of advertising? Advertising is a way of communicating information to the consumer which enables him or her to compare and choose from the products and services available. Advertising is the most economical means by which a manufacturer or an Institutional body can communicate to an audience whether to sell a product or promote a cause of social welfare. Essentials of Effective Advertisement-the writer thinks that there are 4 important things for an advertisement to be effective. They are importance of claim, believable, uniqueness and repetition. The advertiser must constantly assess the situation to choose the right environment and ideal time for an advertisement to be launched. Some of the situations are as follows:- When there is a favorable primary demand of particular product. When there is a distinctive product differentiation from other competitive brands. When mass market is penetrated. In order to ensure that the advertisements reach the target consumers in a most effective way and gets right response from them, it has to be ensuring that such advertisements are presented in the right way. The following steps on the part of the consumer may ensure that the advertisements are on the right track. Getting attracted towards the advertisements. Listening and observing the contents of the advertisements in full. Continuous watching of the same over a period. Comparing the advertisements of similar products. Making a trial purchase as follow up activity. Assessing the level of utility of the product individually. Ascertaining the level of utility derived with other similar consumers. In the article Dr. Alexander Told about a model which exemplifies the attitude or response of a consumer to an advertisement. Techniques of advertising for Fast Moving Consumer Goods Dr. Archi Mathur- Assistant lecturer, Department of Management Studies, National Law University, Jodhpur Dr. HK Bedi- Professor, Dean, Department of Management Studies, National Law University, Jodhpur This article shows how an advertiser can use different techniques of advertisements to show FMCG products. The techniques are as follows: Value added ads- In addition to providing information about the product; Value-added advertising transforms a product into something more appealing to consumers than the physical object produced in the factory. Therefore, it is a missing link between brand attributes and the customer perception, between product features and need fulfillment, .between benefits and values. Comparative ads- the advertiser compares the 2 brands of the same product category. The ad can be copied as the Pepsi and sprite example in the case. They have used the same story but both have them had a different approach. Informative ads- these ads are used to provide information to the consumer about different products and services. Health and Hygiene ads- these ads show that the product is taking care of the consumers health. It is emphasizing of the physical attribute of the product. What does the product do? How does it help you? The ad tells you all. These are some of the techniques. Lifestyle ads- Another way to. nave an impact on the consumers mind is portraying the life-style of a successful person. Humorous ads- Humor in the advertisement is normally kept in order to create a light, jovial and likely kind of an atmosphere Demographic ads- these ads are meant for different segments based on age, sex etc. Farex Cereal Food for infants is an advertisement targeted directly towards the infants, as it comprises a healthy food for them. It is also targeted indirectly towards the mother. Packaging ads- Advertisement is trying to lure the customers to buy their products on the basis of the way they are brought in front of the consumers eyes ie. Packaging. Dabur has brought in different flavors in the market of fruit juice. E.g. Mango, Pineapple, Orange, Mixed Fruit Jete. All these are in different packages, i.e. 50 ml, 1000 ml, etc. They claim that unlike other juices, which have preservatives in them, these products are without preservatives. Hence, the punch line is Real Fruit Juice. Price ads- Marketers also lure the customers by showing in an advertisement that a product is available at a lesser price without any compromise on the standard. Cadbury India advertised the 5-Star chocolate by offering 30% more chocolate in its 5-Star bar for the same price. Celebrity ads- Celebrities are mainly used in the advertisement either to lure the rural people in buying a particular product or in forcing the young generation to buy the products. This is also called endorsement advertising.,{t is also used in portraying that a particular product is best inqtJality because a person who is also very well known in his/her field endorses it. The impact of these stars in advertisements enables the company to increase its sale. CHAPTER 3 I. RESEARCH METHODOLOGY II. RESEARCH OBJECTIVE The main objectives of the study are: 1. To assess current consumer sales promotion schemes in the market 2. To assess how consumers differentiate the products based on advertisements 3. To get an insight into retailers views regarding the schemes being offered in toilet soap category, and consumer perceptions 4. To study consumer perceptions regarding various schemes in this category and responses toward them. 5. To study the various methods of differentiation. 6. To analyze the methodology adopted by companies to target end consumers. 7. To address basic business questions like: Do companies have the right product/service to offer? How companies reach their customers? How the buying power can be created? To prepare new business strategies RESEARCH METHODOLOGY Methodology: Technique used for the survey is questionnaires, focus group discussions and interviews. In order to address the above questions an exploratory study was conducted. The idea was to probe and get deeper insight into sales promotion scenario in toilet soap market and to tap perceptions of retailers and consumers. In order to address above mentioned objectives (i) study of secondary sources was carried out, 10(ii) in-depth interview of six retailers was undertaken and 11(iii) structured questionnaire was designed to seek consumer responses. Convenience sampling was used for both retailers as well as consumer studies. Six retailers ranging from small kirana store to supermarket were approached. All the retailers were located in the Noida. The respondents for consumer study were postgraduate students in the age group of 19-24 belonging to middle and upper middle and upper class. The total respondents were 30 in number. They were residing in hostel or as PG hence sole decision-makers for t his category. Also this age-group being more experimental and likely to be more deal prone, so their perceptions, preferences would give some insights to companies planning sales promotions targeted at them. Scope and Limitations: The geographical scope of the study was restricted to the NOIDA city due to time and resource constraints. The study being exploratory in nature, the sample size was restricted to 30 consumers (student group) and 6 retailers. Focus being mainly on in-depth probing, the generalizations drawn are only indicative and not conclusive. CHAPTER 3 I. FMCG AN INTRODUCTION II. INDIAN CONTEXT III. MARKET OPPORTUNITIES IV. EVOLUTION AND CHARECTERSTICS FMCG -FAST MOVING CONSUMER GOODS BRIEF DECRIPTION OF INDIA FMCG MARKET MARKET OPPORTUNITIES IN FMCG: According to Estimates based on Chinas current per capita Consumption, the Indian FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. The dominance of Indian markets by unbranded products, change in eating habits and the increased affordability of the growing Indian population presents an opportunity to makers of branded products, who can convert consumers to branded products. Penetration level in most product categories like jams, toothpaste, skin care, hair wash etc in India is low. The contrast is particularly striking between the rural and urban segments the average consumption by rural households is much lower than their urban counterparts. Low penetration indicates the existence of unsaturated markets, which are likely to expand as the income levels rise. This provides an excellent opportunity for the industry players in the form of a vastly untapped market. Moreover, per capita consumption in most of the FMCG categories (including the high penetration categories) in India is low as compared to both the developed markets and other emerging economies. A rise in per capita consumption, with improvement in incomes and affordability and change in tastes and preferences, is further expected to boost FMCG demand. Growth is also likely to come from consumer upgrading, especially in the matured product categories EVOLUTION:  § 1950s-80s Low Investment in the sector Low purchasing power Govts emphasis on small scale sector HLL and other companys urbane focus  § Post liberalization Entry of MNCs Focus shifted to getting to rural consumer first Others, like Nestle, remained with the urban population Latest fad to hit the market is the ‘sachet bug.  § Mushrooming of regional brands Nirma enters and changes the focus to ‘Value for Money in the 70s Post liberalization, Jyothi Laboratories, ‘Ghari Detergent and ‘Anchor toothpaste giving the nation-wide brands a run for their money. CHARECTERSTICS: FORECAST 2010:  § Rural and semi-urban  § 128 million population thrice the urban  § Market size growth from 48k to 100k Crores (Growth of 50% at 10%CAGR)  § Increase penetration from the current less than 1%  § Problems in the rural sector * Low per capita disposable incomes * Large number of daily wage earners * Acute dependence on vagaries of monsoon * Seasonal consumption * Poor infrastructure roads and power supply  § Urban  § Market 16.5k to 35k Crores (Growth of 100% at 20%CAGR)  § Intense competition severe pressure on margins Focus on newer products, such as fruit juices Source: Assocham Report ‘Future Prospects of FMCG CHAPTER 5 I. UNDERSTANDING DIFFRENTIATION II. TYPES OF DIFFRENTIATION III. THE INDIAN CONTEXT I. II. UNDERSTANDING DIFFERENTIATION: Differentiation is the process of adding a set of meaningful and valued differences that distinguish a companys offering from those of its competitors. Differentiation is strongest when it satisfies all of the following criteria: 1. Important: the difference delivers a highly valued benefit to a sufficient number of buyers 2. Distinctive: the difference can be delivered in a clear way 3. Superior: the difference is a better way of obtaining a benefit 4. Pre-emptive: the difference cannot be easily copied 5. Affordable: the buyer can afford to pay for the difference 6. Profitable: the company will earn a return by maintaining the difference BRAND loyalty in fast moving consumer goods categories is a topical issue, with several brands resorting to price cuts across categories. More importantly, price cuts or sales promotion by themselves do not seem to have done much for brands in terms of sustaining brand loyalty. They may attract consumers in the short run: consumers may stock the brands and consumers new to the brand may try it. But over a period of time, a brands value may get diluted in consumers psyche, and will eventually lose a strong base of consumers. The following are some aspects of marketing mix elements and consumer behavior which could contribute to brand loyalty. Product differentiation If the products are differentiated in their characteristics and this difference is perceivable, there are chances of brand loyalty being formed based on satisfaction with greater performance or fit of product with needs. In this case, loyalty is driven by functional or symbolic benefits. Functional benefits would be specific tangible features of the product whereas symbolic benefits would be intangibles such as brand personality and `hedonistic value of purchase. Price differentiation If the price differentiation in the market is perceivable, price-led loyalty might exist in the market. Price-led loyalty is practised by supermarkets, airline companies and FMCG brands, which come out with frequent sales promotions based on freebies. Alternatively, price might be taken as an indicator of brand quality, and the customer might go in for higher priced options. Price-led loyalty has to be carefully considered with other marketing mix elements and the consumer should never perceive dilution, especially in low-priced bands. Hence, lower prices should create a sense of value through the product offerings as well as through communication. Branding activity If the category is organized and there is branding activity, there will be greater loyalty than there would have been if the category were unorganized. Branding activities can differentiate between brands on name, symbol, images and associations. Branding activity in this context refers to creating strong associations which will influence the consumers not only with regard to functional attributes but also with symbolism. Hamam soaps portrayal of its pure ingredients with the child and mother imagery is a good example of one of these dimensions. Branding activities in a broad sense could range from advertising to sales promotion and public relations involving several aspects. III. The Indian context The following were the observations from the literature survey and the examples chosen from the Indian context. The factors indicate that there will be a large segment of consumers for whom price-led loyalty will dominate. Hence there will be strong behavioural loyalty in the segment and only weak attitudinal loyalty. There is thus spurious loyalty in this sector. There is a moderate level of symbolic and functional differentiation which has been exploited by strong brands to build a loyal following. Examples of this include brands such as Dove, Ponds Dreamflower talcum powder, Gold Flake, Wills Navy Cut, Amul and Cadbury. These brands have probably built strong attitudinal loyalty through their brand personality and other brand building efforts. In the FMCG sector, brand habit is high whereas attitudinal loyalty is low. As creating attitudinal loyalty based on functional differentiation is difficult, symbolic differentiation is the key. Building strong brand personalities and associated symbolic benefits is important for crafting customer loyalty. The factors discussed cannot be treated in isolation: they are to provide a synergy to result in brand loyalty. The combination of these factors and the timing of the combination is the topical challenge which marketers face in an environment where loyalty is slowly eroding. Local challengers Some of the most successful FMCG brands in 2002 came, not from the stables of a Hindustan Lever and a Colgate, but from obscure regional players such as Kaleesuwari Refineries, Parakh Foods, Anchor Switchboards and Kanpur Detergents. Over the past couple of years, brands such as Gold Winner and Gemini in refined oils, Anchor White in toothpastes and Ghari in detergents have managed to sustain double digit growth rates, even as the market leaders have struggled to hold on to single digit growth rates for their brands. Yes, the comparison is unfair, as the local brands had a minuscule base to start with. But these brands have demonstrated it is not impossible for a new challenger to break into the traditional bastion of one or two large FMCG players. Traditionally, large FMCG categories in India have been dominated by just one or two players, who rule the roost by dint of their sheer financial muscle and distribution reach. But, of late, successful regional brands have been finding chinks in their armour. And how! Aggressive pricing In the edible oils market, as national players were forced to hike their selling prices in response to rising commodity prices, both Gemini and Gold Winner have used aggressive pricing to woo consumers away from the national brands. Packed tea too, has seen similar trends. The limited differentiation in grocery and the flexibility offered by a restricted area of operations have stood these companies in good stead. Anchor White, among the few debutants in the toothpaste market to garner a significant share, first wooed the retail trade with high distribution margins, and then used rock-bottom prices to lure consumers into trying the product. Though none of these companies can match the market leaders in adspend, they have used focused regional and local advertising to draw consumers attention to their brands. The mushrooming of local and regional media has undoubtedly helped the local players milk the most from their ad budgets. Banking on `power brands While the local brands have been adding to their brand portfolios, the market leaders have largely stayed off new product launches. In keeping with its power brand strategy, Hindustan Levers marketing strategies in 2002 revolved around rejigging and relaunching established brands such as Lifebuoy, Rin, Surf and Vim. The company phased out brands such as Sunlight in detergents, and Jai in toilet soaps, so as to focus better on its 30 power brands. The strategy appears to have worked, as brands such as Lifebuoy and Rin have moved into a higher growth trajectory after the relaunch. In fact, HLLs power brand strategy has found a few followers in the FMCG market, with companies such as Godrej Consumer also announcing plans to focus on a clutch of key brands. Streamlining and spend While the power brand strategy has helped the leading players put their marketing prowess behind their most important brands, it has not really helped them save on ad spend. For most FMCG companies, advertising and promotion spends in 2002 grew faster than their sales. In high penetration categories such as soaps, detergents and toothpastes, marketing efforts of the players revolved around persuading existing consumers to use more of the product or to upgrade to a higher-priced brand. The slew of 100 gm free for every 150 gm offers in toothpastes and the series of promos on the 2 kg packs of premium detergents were both intended to induce existing consumers of a product to pep up their usage of the brand. Companies operating in relatively low-penetration categories such as chocolates, shampoos and skin creams tailored their marketing strategies to bringing in new users, through scaled-down versions of their brands in affordable pack sizes. The low-priced Chocostik, a liquid chocolate in a small-sized pack, launched by Nestle India, has helped pep up the companys topline and is now a large contributor to the companys revenues. Nestle India is now trying out a similar small-sized Rs 5 pack for Maggi noodles. Shampoos have been among the few FMCG categories to register a positive growth rate in 2002, and growth in this category has been driven mainly by sachet packs and by scaled-down 50 ml bottles priced at less than Rs 10. Overall, the FMCG slowdown of the past three years has served a useful purpose. At one level, it has made sure that the dominant players in the market no longer enjoy unlimited pricing power, as they have in the past. There now appears to be a greater effort on the part of the players to hold selling prices and look at their own operations to save on cost. At another level, the emergence of the regional challengers has made sure that consumers of FMCG products have a few more choices in their purchases of essentials. Is selling soap the same as selling a TV? It isnt. The difference is how the particular product is sold and more importantly, how is it distributed. India is a unique market, where the manufacturers who deliver products at the doorstep, which is the ideal way to deliver anything, spoil our consumers. We have an extremely evolved distribution mechanism for most products. Different products are sent to the consumer differently. Depending on the number, the price of the product and the complexity of the selling process, they may vary from direct selling to selling through a channel that may have as many as four levels between the manufacturer and the consumer. A look at a few of them will show what it means to be a sales person of that product. Most FMCG (fast moving consumer goods) products are not hard-sold to the end consumers. Sales are built up largely by pull a technique using advertising and consumer promotion. The sell-in happens to the trade i.e. to various members of the distribution channel the CarryingForwarding/Super-stockist, the distributor, the wholesaler and most importantly the retailer, who is the interface with the end-consumer. This chain forms the most important link in getting the product economically to the consumers doorstep. A large MNC in the FMCG industry may be covering as many as 1 million outlets across the country with the help of thousands of distributors. Even a mid-sized company covers at the least 1 lakh outlets. Factoring in the vagaries of operating in more than 25 different states, each with its own sales tax complexities, different consumer needs, differences in the distribution structure, not forgetting differing octroi structures within a state, distribution is extremely complex in India. If the sell-in does not happen to this channel for whatever reason or is sub- optimal, a product is likely to fail. CHAPTER 3 I. UNDERSTANDING ADVERTISEMENT II. UNDERSTANDING SALES- PROMOTION III. CREATING DIFFRENTIATION THROUGH ADVERTISEMENT IV. PROBLEMS FACED BY MARKETERS I. UNDERSTANDING ADVERTISEMENTS Whether it is a serial in a regional satellite channel or a One Day International cricket match, there is a non-stop stream of advertisements, which clutter the commercial break. Well-established brands attempt to sustain brand recall while new ones try appealing to prospective consumers to get into their `consideration set. There are ads for children, housewives and youth. With advertising expenditure in the order of Rs. 8000 Crores per annum in the recent times and the proliferation of brands across categories, there is a strong need to consider the effectiveness of these advertisements. The idea is not to cease advertising but to consider how considering decisions would have to be considered with non-advertising alternatives. These non-advertising alternatives may also enable a brand to create and sustain consistent associations, which may be desirable in terms of long-term implications. A contemporary approach that creates a synergy between various aspects of a promotional mix (a dvertising included) provides a refreshing approach towards marketing communications. There may be several objectives of advertising and a promotional mix could be used in an innovative manner to address each of these objectives depending on the product category and target segment. Creating-brand-awareness When a new brand enters a category or creates a â€Å"new to the market† offering, it needs to create brand awareness. This would depend on whether the product is a consumable or a durable. The involvement level in a speci FMCG Market Analysis FMCG Market Analysis EXECUTIVE SUMMARY The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer upgrading in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry. Rapid urbanization, increased literacy and rising per capita income, have all caused rapid growth and change in demand patterns, leading to an explosion of new opportunities. Around 45 per cent of the population in India is below 20 years of age and the young population is set to rise further. Aspiration levels in this age group have been fuelled by greater media exposure, unleashing a latent  demand with more money and a new mindset. The importance of consumer sales promotion in the marketing mix of the fast moving consumer goods (FMCG) category throughout the world has increased. Companies spend considerable time in planning such activities. However, in order to enhance the effectiveness of these activities, manufacturers should understand consumer and retailer interpretations of their promotional activities so that appropriate differentiation can be used. Retailers stated that role of word of mouth and television advertising was very important in providing information inputs to the consumers regarding sales promotion activities. This perception of retailers was supported by the consumer unaided recall of sales promotion schemes which were widely advertised. The research concludes with the discussion of the results, managerial implications limitation of the study and future research directions. CHAPTER 1 INTRODUCTION I. ABOUT THE DISSERTATION INTRODUCTION Advertisements convey brand differentiation and this may be important in several categories, which consist of several brands. In FMCG products like tea, coffee and detergents, â€Å"differentiation awareness† can be created by television advertising, but in certain categories there may be a need to demonstrate the effectiveness of brands. Differentiation with which consumers cannot â€Å"connect† may have a negative implication and if a brand â€Å"connects† consumers with its differentiation, it is likely to also differentiate itself in terms of getting identified with the consumer. A detergent or a washing machine, which claims â€Å"low water consumption† has to demonstrate this claim at a retail outlet especially given the fact that the quality of water varies across areas even in a specific geographical region. It is also essential that a good â€Å"differentiation proposition† result in a positive word-of-mouth. In a certain situation, the company may have two offerings in a product-line and there is a need to differentiate them clearly depending on the target segments involved. This is a complex situation where differentiation decides the growth of the brand and the perceived difference between the offerings. An added layer to the complexity is the same brand name being used for the offerings. Fairness cream is a category in which the benefit is the fairness of the complexion. A brand like Fair and Lovely built over the years still has a strong association with the category but under tremendous pressure from competitive brands and the most important criteria which these brands is the herbal touch associated with them. Herbal ingredients are becoming popular with consumers in several categories and personal care in India has a strong tradition of herbal care. Fair and Lovely had to launch its herbal variant (it used the same brand probably because of the brand equity built up over the years) . The interesting fact is the differentiation being conveyed by advertising. The original version uses an aspiration route in which the brands ultimate benefit is success through confidence. Estimates based on Chinas current per capita Consumption, the Indian FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. The dominance of Indian markets by unbranded products, change in eating habits and the increased affordability of the growing Indian population presents an opportunity to makers of branded products, who can convert  consumers to branded products. Penetration level in most product categories like jams, toothpaste, skin care, hair wash etc in India is low. The contrast is particularly striking between the rural and urban segments the average consumption by rural households is much lower than their urban counterparts. Low penetration indicates the existence of unsaturated markets, which are likely to expand as the income levels rise. This provides an excellent opportunity for the industry players in the form of a vastly untapped market. Moreover, per capita consumption in most of the FMCG categories (including the high penetration categories) in India is low as compared to both the developed markets and other emerging economies. A rise in per capita consumption, with improvement in incomes and affordability and change in tastes and preferences, is further expected to boost FMCG demand. Growth is also likely to come from consumer upgrading, especially in the matured product categories. CHAPTER 2 I. LITERATURE REVIEW Impact of Effective Advertisement on Consumer Attitude Dr. F.R. Alexander Pravin Durai By going through this article I have come across some points which you should look upon. If you want to read the article it is present in the appendix. Following are some points:- Advertising is the only direct method which helps to reach masses of potential buyers. Advertising, being dynamic, changes with changing methods of distribution and consumption. In the present era of information explosion and media influence, these advertisements playa major role in changing the settled perception or thinking, which is otherwise called attitude, of the consumer and · also the consumption pattern of the society in general. Thus, the impact leads to cultural and social changes to a great extent. Why is there a need of advertising? Advertising is a way of communicating information to the consumer which enables him or her to compare and choose from the products and services available. Advertising is the most economical means by which a manufacturer or an Institutional body can communicate to an audience whether to sell a product or promote a cause of social welfare. Essentials of Effective Advertisement-the writer thinks that there are 4 important things for an advertisement to be effective. They are importance of claim, believable, uniqueness and repetition. The advertiser must constantly assess the situation to choose the right environment and ideal time for an advertisement to be launched. Some of the situations are as follows:- When there is a favorable primary demand of particular product. When there is a distinctive product differentiation from other competitive brands. When mass market is penetrated. In order to ensure that the advertisements reach the target consumers in a most effective way and gets right response from them, it has to be ensuring that such advertisements are presented in the right way. The following steps on the part of the consumer may ensure that the advertisements are on the right track. Getting attracted towards the advertisements. Listening and observing the contents of the advertisements in full. Continuous watching of the same over a period. Comparing the advertisements of similar products. Making a trial purchase as follow up activity. Assessing the level of utility of the product individually. Ascertaining the level of utility derived with other similar consumers. In the article Dr. Alexander Told about a model which exemplifies the attitude or response of a consumer to an advertisement. Techniques of advertising for Fast Moving Consumer Goods Dr. Archi Mathur- Assistant lecturer, Department of Management Studies, National Law University, Jodhpur Dr. HK Bedi- Professor, Dean, Department of Management Studies, National Law University, Jodhpur This article shows how an advertiser can use different techniques of advertisements to show FMCG products. The techniques are as follows: Value added ads- In addition to providing information about the product; Value-added advertising transforms a product into something more appealing to consumers than the physical object produced in the factory. Therefore, it is a missing link between brand attributes and the customer perception, between product features and need fulfillment, .between benefits and values. Comparative ads- the advertiser compares the 2 brands of the same product category. The ad can be copied as the Pepsi and sprite example in the case. They have used the same story but both have them had a different approach. Informative ads- these ads are used to provide information to the consumer about different products and services. Health and Hygiene ads- these ads show that the product is taking care of the consumers health. It is emphasizing of the physical attribute of the product. What does the product do? How does it help you? The ad tells you all. These are some of the techniques. Lifestyle ads- Another way to. nave an impact on the consumers mind is portraying the life-style of a successful person. Humorous ads- Humor in the advertisement is normally kept in order to create a light, jovial and likely kind of an atmosphere Demographic ads- these ads are meant for different segments based on age, sex etc. Farex Cereal Food for infants is an advertisement targeted directly towards the infants, as it comprises a healthy food for them. It is also targeted indirectly towards the mother. Packaging ads- Advertisement is trying to lure the customers to buy their products on the basis of the way they are brought in front of the consumers eyes ie. Packaging. Dabur has brought in different flavors in the market of fruit juice. E.g. Mango, Pineapple, Orange, Mixed Fruit Jete. All these are in different packages, i.e. 50 ml, 1000 ml, etc. They claim that unlike other juices, which have preservatives in them, these products are without preservatives. Hence, the punch line is Real Fruit Juice. Price ads- Marketers also lure the customers by showing in an advertisement that a product is available at a lesser price without any compromise on the standard. Cadbury India advertised the 5-Star chocolate by offering 30% more chocolate in its 5-Star bar for the same price. Celebrity ads- Celebrities are mainly used in the advertisement either to lure the rural people in buying a particular product or in forcing the young generation to buy the products. This is also called endorsement advertising.,{t is also used in portraying that a particular product is best inqtJality because a person who is also very well known in his/her field endorses it. The impact of these stars in advertisements enables the company to increase its sale. CHAPTER 3 I. RESEARCH METHODOLOGY II. RESEARCH OBJECTIVE The main objectives of the study are: 1. To assess current consumer sales promotion schemes in the market 2. To assess how consumers differentiate the products based on advertisements 3. To get an insight into retailers views regarding the schemes being offered in toilet soap category, and consumer perceptions 4. To study consumer perceptions regarding various schemes in this category and responses toward them. 5. To study the various methods of differentiation. 6. To analyze the methodology adopted by companies to target end consumers. 7. To address basic business questions like: Do companies have the right product/service to offer? How companies reach their customers? How the buying power can be created? To prepare new business strategies RESEARCH METHODOLOGY Methodology: Technique used for the survey is questionnaires, focus group discussions and interviews. In order to address the above questions an exploratory study was conducted. The idea was to probe and get deeper insight into sales promotion scenario in toilet soap market and to tap perceptions of retailers and consumers. In order to address above mentioned objectives (i) study of secondary sources was carried out, 10(ii) in-depth interview of six retailers was undertaken and 11(iii) structured questionnaire was designed to seek consumer responses. Convenience sampling was used for both retailers as well as consumer studies. Six retailers ranging from small kirana store to supermarket were approached. All the retailers were located in the Noida. The respondents for consumer study were postgraduate students in the age group of 19-24 belonging to middle and upper middle and upper class. The total respondents were 30 in number. They were residing in hostel or as PG hence sole decision-makers for t his category. Also this age-group being more experimental and likely to be more deal prone, so their perceptions, preferences would give some insights to companies planning sales promotions targeted at them. Scope and Limitations: The geographical scope of the study was restricted to the NOIDA city due to time and resource constraints. The study being exploratory in nature, the sample size was restricted to 30 consumers (student group) and 6 retailers. Focus being mainly on in-depth probing, the generalizations drawn are only indicative and not conclusive. CHAPTER 3 I. FMCG AN INTRODUCTION II. INDIAN CONTEXT III. MARKET OPPORTUNITIES IV. EVOLUTION AND CHARECTERSTICS FMCG -FAST MOVING CONSUMER GOODS BRIEF DECRIPTION OF INDIA FMCG MARKET MARKET OPPORTUNITIES IN FMCG: According to Estimates based on Chinas current per capita Consumption, the Indian FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. The dominance of Indian markets by unbranded products, change in eating habits and the increased affordability of the growing Indian population presents an opportunity to makers of branded products, who can convert consumers to branded products. Penetration level in most product categories like jams, toothpaste, skin care, hair wash etc in India is low. The contrast is particularly striking between the rural and urban segments the average consumption by rural households is much lower than their urban counterparts. Low penetration indicates the existence of unsaturated markets, which are likely to expand as the income levels rise. This provides an excellent opportunity for the industry players in the form of a vastly untapped market. Moreover, per capita consumption in most of the FMCG categories (including the high penetration categories) in India is low as compared to both the developed markets and other emerging economies. A rise in per capita consumption, with improvement in incomes and affordability and change in tastes and preferences, is further expected to boost FMCG demand. Growth is also likely to come from consumer upgrading, especially in the matured product categories EVOLUTION:  § 1950s-80s Low Investment in the sector Low purchasing power Govts emphasis on small scale sector HLL and other companys urbane focus  § Post liberalization Entry of MNCs Focus shifted to getting to rural consumer first Others, like Nestle, remained with the urban population Latest fad to hit the market is the ‘sachet bug.  § Mushrooming of regional brands Nirma enters and changes the focus to ‘Value for Money in the 70s Post liberalization, Jyothi Laboratories, ‘Ghari Detergent and ‘Anchor toothpaste giving the nation-wide brands a run for their money. CHARECTERSTICS: FORECAST 2010:  § Rural and semi-urban  § 128 million population thrice the urban  § Market size growth from 48k to 100k Crores (Growth of 50% at 10%CAGR)  § Increase penetration from the current less than 1%  § Problems in the rural sector * Low per capita disposable incomes * Large number of daily wage earners * Acute dependence on vagaries of monsoon * Seasonal consumption * Poor infrastructure roads and power supply  § Urban  § Market 16.5k to 35k Crores (Growth of 100% at 20%CAGR)  § Intense competition severe pressure on margins Focus on newer products, such as fruit juices Source: Assocham Report ‘Future Prospects of FMCG CHAPTER 5 I. UNDERSTANDING DIFFRENTIATION II. TYPES OF DIFFRENTIATION III. THE INDIAN CONTEXT I. II. UNDERSTANDING DIFFERENTIATION: Differentiation is the process of adding a set of meaningful and valued differences that distinguish a companys offering from those of its competitors. Differentiation is strongest when it satisfies all of the following criteria: 1. Important: the difference delivers a highly valued benefit to a sufficient number of buyers 2. Distinctive: the difference can be delivered in a clear way 3. Superior: the difference is a better way of obtaining a benefit 4. Pre-emptive: the difference cannot be easily copied 5. Affordable: the buyer can afford to pay for the difference 6. Profitable: the company will earn a return by maintaining the difference BRAND loyalty in fast moving consumer goods categories is a topical issue, with several brands resorting to price cuts across categories. More importantly, price cuts or sales promotion by themselves do not seem to have done much for brands in terms of sustaining brand loyalty. They may attract consumers in the short run: consumers may stock the brands and consumers new to the brand may try it. But over a period of time, a brands value may get diluted in consumers psyche, and will eventually lose a strong base of consumers. The following are some aspects of marketing mix elements and consumer behavior which could contribute to brand loyalty. Product differentiation If the products are differentiated in their characteristics and this difference is perceivable, there are chances of brand loyalty being formed based on satisfaction with greater performance or fit of product with needs. In this case, loyalty is driven by functional or symbolic benefits. Functional benefits would be specific tangible features of the product whereas symbolic benefits would be intangibles such as brand personality and `hedonistic value of purchase. Price differentiation If the price differentiation in the market is perceivable, price-led loyalty might exist in the market. Price-led loyalty is practised by supermarkets, airline companies and FMCG brands, which come out with frequent sales promotions based on freebies. Alternatively, price might be taken as an indicator of brand quality, and the customer might go in for higher priced options. Price-led loyalty has to be carefully considered with other marketing mix elements and the consumer should never perceive dilution, especially in low-priced bands. Hence, lower prices should create a sense of value through the product offerings as well as through communication. Branding activity If the category is organized and there is branding activity, there will be greater loyalty than there would have been if the category were unorganized. Branding activities can differentiate between brands on name, symbol, images and associations. Branding activity in this context refers to creating strong associations which will influence the consumers not only with regard to functional attributes but also with symbolism. Hamam soaps portrayal of its pure ingredients with the child and mother imagery is a good example of one of these dimensions. Branding activities in a broad sense could range from advertising to sales promotion and public relations involving several aspects. III. The Indian context The following were the observations from the literature survey and the examples chosen from the Indian context. The factors indicate that there will be a large segment of consumers for whom price-led loyalty will dominate. Hence there will be strong behavioural loyalty in the segment and only weak attitudinal loyalty. There is thus spurious loyalty in this sector. There is a moderate level of symbolic and functional differentiation which has been exploited by strong brands to build a loyal following. Examples of this include brands such as Dove, Ponds Dreamflower talcum powder, Gold Flake, Wills Navy Cut, Amul and Cadbury. These brands have probably built strong attitudinal loyalty through their brand personality and other brand building efforts. In the FMCG sector, brand habit is high whereas attitudinal loyalty is low. As creating attitudinal loyalty based on functional differentiation is difficult, symbolic differentiation is the key. Building strong brand personalities and associated symbolic benefits is important for crafting customer loyalty. The factors discussed cannot be treated in isolation: they are to provide a synergy to result in brand loyalty. The combination of these factors and the timing of the combination is the topical challenge which marketers face in an environment where loyalty is slowly eroding. Local challengers Some of the most successful FMCG brands in 2002 came, not from the stables of a Hindustan Lever and a Colgate, but from obscure regional players such as Kaleesuwari Refineries, Parakh Foods, Anchor Switchboards and Kanpur Detergents. Over the past couple of years, brands such as Gold Winner and Gemini in refined oils, Anchor White in toothpastes and Ghari in detergents have managed to sustain double digit growth rates, even as the market leaders have struggled to hold on to single digit growth rates for their brands. Yes, the comparison is unfair, as the local brands had a minuscule base to start with. But these brands have demonstrated it is not impossible for a new challenger to break into the traditional bastion of one or two large FMCG players. Traditionally, large FMCG categories in India have been dominated by just one or two players, who rule the roost by dint of their sheer financial muscle and distribution reach. But, of late, successful regional brands have been finding chinks in their armour. And how! Aggressive pricing In the edible oils market, as national players were forced to hike their selling prices in response to rising commodity prices, both Gemini and Gold Winner have used aggressive pricing to woo consumers away from the national brands. Packed tea too, has seen similar trends. The limited differentiation in grocery and the flexibility offered by a restricted area of operations have stood these companies in good stead. Anchor White, among the few debutants in the toothpaste market to garner a significant share, first wooed the retail trade with high distribution margins, and then used rock-bottom prices to lure consumers into trying the product. Though none of these companies can match the market leaders in adspend, they have used focused regional and local advertising to draw consumers attention to their brands. The mushrooming of local and regional media has undoubtedly helped the local players milk the most from their ad budgets. Banking on `power brands While the local brands have been adding to their brand portfolios, the market leaders have largely stayed off new product launches. In keeping with its power brand strategy, Hindustan Levers marketing strategies in 2002 revolved around rejigging and relaunching established brands such as Lifebuoy, Rin, Surf and Vim. The company phased out brands such as Sunlight in detergents, and Jai in toilet soaps, so as to focus better on its 30 power brands. The strategy appears to have worked, as brands such as Lifebuoy and Rin have moved into a higher growth trajectory after the relaunch. In fact, HLLs power brand strategy has found a few followers in the FMCG market, with companies such as Godrej Consumer also announcing plans to focus on a clutch of key brands. Streamlining and spend While the power brand strategy has helped the leading players put their marketing prowess behind their most important brands, it has not really helped them save on ad spend. For most FMCG companies, advertising and promotion spends in 2002 grew faster than their sales. In high penetration categories such as soaps, detergents and toothpastes, marketing efforts of the players revolved around persuading existing consumers to use more of the product or to upgrade to a higher-priced brand. The slew of 100 gm free for every 150 gm offers in toothpastes and the series of promos on the 2 kg packs of premium detergents were both intended to induce existing consumers of a product to pep up their usage of the brand. Companies operating in relatively low-penetration categories such as chocolates, shampoos and skin creams tailored their marketing strategies to bringing in new users, through scaled-down versions of their brands in affordable pack sizes. The low-priced Chocostik, a liquid chocolate in a small-sized pack, launched by Nestle India, has helped pep up the companys topline and is now a large contributor to the companys revenues. Nestle India is now trying out a similar small-sized Rs 5 pack for Maggi noodles. Shampoos have been among the few FMCG categories to register a positive growth rate in 2002, and growth in this category has been driven mainly by sachet packs and by scaled-down 50 ml bottles priced at less than Rs 10. Overall, the FMCG slowdown of the past three years has served a useful purpose. At one level, it has made sure that the dominant players in the market no longer enjoy unlimited pricing power, as they have in the past. There now appears to be a greater effort on the part of the players to hold selling prices and look at their own operations to save on cost. At another level, the emergence of the regional challengers has made sure that consumers of FMCG products have a few more choices in their purchases of essentials. Is selling soap the same as selling a TV? It isnt. The difference is how the particular product is sold and more importantly, how is it distributed. India is a unique market, where the manufacturers who deliver products at the doorstep, which is the ideal way to deliver anything, spoil our consumers. We have an extremely evolved distribution mechanism for most products. Different products are sent to the consumer differently. Depending on the number, the price of the product and the complexity of the selling process, they may vary from direct selling to selling through a channel that may have as many as four levels between the manufacturer and the consumer. A look at a few of them will show what it means to be a sales person of that product. Most FMCG (fast moving consumer goods) products are not hard-sold to the end consumers. Sales are built up largely by pull a technique using advertising and consumer promotion. The sell-in happens to the trade i.e. to various members of the distribution channel the CarryingForwarding/Super-stockist, the distributor, the wholesaler and most importantly the retailer, who is the interface with the end-consumer. This chain forms the most important link in getting the product economically to the consumers doorstep. A large MNC in the FMCG industry may be covering as many as 1 million outlets across the country with the help of thousands of distributors. Even a mid-sized company covers at the least 1 lakh outlets. Factoring in the vagaries of operating in more than 25 different states, each with its own sales tax complexities, different consumer needs, differences in the distribution structure, not forgetting differing octroi structures within a state, distribution is extremely complex in India. If the sell-in does not happen to this channel for whatever reason or is sub- optimal, a product is likely to fail. CHAPTER 3 I. UNDERSTANDING ADVERTISEMENT II. UNDERSTANDING SALES- PROMOTION III. CREATING DIFFRENTIATION THROUGH ADVERTISEMENT IV. PROBLEMS FACED BY MARKETERS I. UNDERSTANDING ADVERTISEMENTS Whether it is a serial in a regional satellite channel or a One Day International cricket match, there is a non-stop stream of advertisements, which clutter the commercial break. Well-established brands attempt to sustain brand recall while new ones try appealing to prospective consumers to get into their `consideration set. There are ads for children, housewives and youth. With advertising expenditure in the order of Rs. 8000 Crores per annum in the recent times and the proliferation of brands across categories, there is a strong need to consider the effectiveness of these advertisements. The idea is not to cease advertising but to consider how considering decisions would have to be considered with non-advertising alternatives. These non-advertising alternatives may also enable a brand to create and sustain consistent associations, which may be desirable in terms of long-term implications. A contemporary approach that creates a synergy between various aspects of a promotional mix (a dvertising included) provides a refreshing approach towards marketing communications. There may be several objectives of advertising and a promotional mix could be used in an innovative manner to address each of these objectives depending on the product category and target segment. Creating-brand-awareness When a new brand enters a category or creates a â€Å"new to the market† offering, it needs to create brand awareness. This would depend on whether the product is a consumable or a durable. The involvement level in a speci