The Relation Between the Customer Behavior and Shopping Centre

Title The relation between the customer behavior and shopping centre promotion Author(s) RISHI The relation between the customer behaviour and shopping centre promotion Citation Issue Date 22/3/2012 URL Rights 2002 http://hdl. handle. net/10722/28778 The author retains all proprietary rights, (such as patent rights) and the right to use in future works. The Relation between the Customer Behaviour and Shopping Centre Promotion: A Case Study of Whampoa Garden TSE Chun Wai DISSERTATION Submitted in partial fulfillment of the requirements for the degree of Master of Housing Management The University of Hong KongDecember 2002 DECLARATION i declare that this dissertation, entitled The relationship between the customer behaviours and shopping centre promotion: A case study of Whampoa Garden, represents my own work, except where due acknowledgement is made, and that it has not been previously included in a thesis, dissertation or report submitted to this University or other institution for a degree, diploma or other qualification. un Wai Acknowledgement This paper intends to show the relationship between the customer behaviors and shopping centre promotion, to understand the problem of the shopping entre by studying the customer behaviors and examining the shopping promotion strategies. Firstly the author sincerely thanks Mr. Bonny Chiu who has worked ? n Whampoa Garden ? n the property management department, for his assistance ? n providing information about the details of Whampoa Garden and promotion strategies. Secondly, thanks must be expressed to Ms. Candy Lam and Ms. Jessica Wong; classmates of Master of Housing Management have given valuable information regarding the shopping centre under their management. Thirdly, the author must also thank Ms.June Yau and Mona So for helping with word processing and production of the final typescript and proofreading. Finally, the author wants to thank Dr. Eddie Hui, the supervisor of this dissertation, for his valuable guidan ce and support in the research of this paper. THE UNIVERSITY OF HONG KONG i. I Il W ir . J Thesis Collection Deposited by the Author Contents Acknowledgement Abstract 1. Introduction ti Am and objectives p. 1 1. 2 Methodologies 1. 3 Researchmethod I . 4 Implication of the study 1. 5 Sourceofdata 2. p. 2 p. 3 p. 3 p. 4 P. 4 Customer behavior and shopping centre p. 5 2. 1 The definition fcustomerbehaviour Dynamic customer behaviour Interaction Exchanges 2. 2 Why people go shopping 2. 3 Factors affecting shopping behaviours and motivations 2. 4 Changingofshoppinghabit 2. 5 Goal and characteristic of customer 2. 6 Conceptual models and customer characteristics 2. 1. 1 2. 1. 2 2. 1. 3 2. 6. 1 2. 6. 2 2. 6. 3 2. 6. 4 Huff1s topological model (1960) Timmermans' conceptual model (1982) Sheth's integrative theory 2. 6. 3. 1 Choicecalculus 2. 6. 3. 2 ShoppIng motives 2. 6. 3. 3 Shopping option Lindquist(1974-1975) 3. What is a â€Å"shopping centre†? 3. 1 The principle of a shopping ce ntreIdentification the positioning, role and function of a shopping 3. 1 1 centre 3. 1. 2 Location ata shopping centre 3. 1. 3 Catchmeritarea 3. 1. 4 Accessibility and interlink 3. 1. 5 TenantMix 3. 1. 6 Decoration Shopfront 3. 1. 7 Entrances 3. 1. 8 3. 1. 9 Finishes 3. 1. 10 Signagesystem 3. 1. 11 Marketing 3. 1. 12 Management 3. 1. 13 Promotion . 3. 2 Typeofshoppingcentre 3. 2. 1 3. 2. 2 The neighborhood centre The community shopping centre p. 5 p. 6 p. 6 p. 6 p. 7 p. 8 p. 10 pli p. 11 p12 p. 12 p. 12 p. 13 p. 13 p. 14 p. 14 p. 17 p. 18 p. 18 p. 19 p. 19 p. 19 p. 20 p. 20 p. 21 p. 21 p. 22 p. 22 p. 23 p. 3 p. 23 p. 24 p. 25 p. 26 32. 3 The regonaI shopping centre 3. 2. 4 Specialty shopping centre 3. 3 The development of shopping centre 3. 4 Dev&opment of shopping centres in Hong Kong 3. 4. 1 Firstphase 3. 4. 2 Second phase 3. 4. 3 Third phase 4. CasestudyofwhampoaGarden 4. 1 background information and characteristic of Whampoa Garden 4. 1. 1 Development 4. 1. 2 Accessibility 4. 1. 3 Catchrnentarea and interlink 4. 1. 4 Conceptofnewtown 4. 1. 5 Theme Concept 4. 1. 6 Varietyofshop 4. 1. 7 Continuous refurbishment 4. 1. 8 Shoppingmanagement 4. 1. 9 Cleaning 4. 1. 10 Security 4. 1. 11 Air-conditioning 4. 1. 2 Maintenance & repair 4. 2 Findings Irnageattributes 4. 2. 1 4. 2. 1. 1 Recreational experience 4. 2. 1. 2 Userfriendly 4. 2. 1. 3 Stores 4. 2. 1. 4 Qualityofstores 4. 2. 1. 5 Easeofusebycarandbus 4. 2. 2 Shoppers characteristics 4. 2. 2. 1 Gender 4. 2. 2. 2 Shopping accompanied 4. 2. 2. 3 Travel model 4. 2. 2. 4 Occupation 4. 2. 2. 5 Monthly income 4. 2. 2. 6 Frequency of visits 4. 2. 2. 7 Presence of undesirable characters 5. Problems ofWhampoa Garden p. 32 p. 32 p. 32 p. 32 p. 34 p. 34 p. 34 P. 37 p. 38 p. 38 p. 39 p. 39 P. 40 p. 40 P. 41 p. 41 p. 41 p. 41 p. 4. 2 p. 43 p. 43 p. 43 p. 44 p. 44 p. 45 . 45 p. 45 p. 46 p. 47 Inadequate parking facilities Uncovered footpaths/insufficient interlinks Unsuccessful theme concept p. 48 p. 48 p. 48 p. 49 p. 50 Lack ofanchorteriants p. 51 Recession of retailing industry p. 52 5. 1 Lack of mass transportation network 5. 2 5. 3 5. 4 5. 5 5. 6 p. 27 p. 27 p. 28 p. 29 p. 30 p. 30 p. 30 6. Recommendations and shopping centres in the future 6. 1 Understandshopper'sneed 6. 2 HK$10 Plaza discountoutlets 6. 3 Transportation p. 54. p. 54 p. 54 p. 55 6. 4 Parking spaces arid footpath 6. 5 Marketing strategies 6. 6 Signage 61 Development of theme concept 6. 8 Promotion . 8. 1 Advertising 6. 8. 2 Personal selling 6. 83 Sales promotion 6. 8. 4 Publicity p. 56 p57 p. 57 p. 58 p. 58 p. 59 p. 59 p. 59 p. 59 7. Conclusion p. 61 Questionnaires p. 63 Summary results of questionnaire for customers p. 68 Bibliography p. 73 Abstract In Hong Kong, the accessibility and transportation network of newly constructed site is highly important. The transport links, especially by means of Mass Transit Railway and Kowloon-Canton Railway, are vital to the retailers, as these would increase footfall, which can bring thetn more p otential customers. However, it is all for the shoppers?Where will they go and why will they shop? Customers' shopping habits and preference has changed over years. Most importantly, it has gone along with the development and construction of shopping centre. Now instead of shopping in the sheet, shopping in huge department stores is a new trend. This paper aims at assessing the factors in attributing to the shoppers' decision by starting with a brief description of customer's behavioural models and the development of shopping centre in Hong Kong. Determining elements include convenience, pleasant and entertainment environment, tenant mix, leisure facilities and catchment, etc.Whampoa Garden is selected as the case study Overall, the findings shows active, well planned, coordinated and periodical promotion should be operated throughout the year. Besides promotion, the infrastructure of shopping centres also plays a vital role in deciding the retail pattern and the tenant mix. Therefo re, active promotion activities and continual development of shopping centres should be used as the strategy to meet the ever-changing demand and improve the image of the centre for their specified clientele. 1. Inlroduction Shopping centres are vital to our economy.Different planning of shopping centres causes different sizes and arrangements. However, all these planning would bear two purposes in mind – to provide an optimum retailing environment for the tenants and to meet the needs of customers. In recent decades, shopping centres are becoming increasingly important for the services they provide to individual consumers and many ways in which they benefit the communities in which they are located. Developers should want to know how and why people shop in their shopping centres, but others just have a fare dodging and walking in the centre.From a commercial standpoint, it may distinguish consumer behaviour from other activities. This is the point for the shopping centre bec ause profits are generated when consumers select the shopping centre rather than another. Consumers are more interested in the facilities provided by the shopping centres, so that they could spend their time arid money in there. The improvement of living standard in Hong Kong has to lead the transformation of shopping behaviour of the residents. Formerly, markets were just places where people gather together for retail activities.Nowadays, shopping centres have become multifunctional, and it is an enclosed area not only for shopping, but also for entertainment and amusement. A successful shopping centre must have the right location, (easy to access) good management; effective marketing strategy arid the right tenant mix for the demographic profile of the population it serves. However, the attraction of the shopping centre will slip downwards or fade away with the passage of time: demographic changes, competition arising from the other new shopping centres, etc. All these pose as gre at challenge for the status of an existing shopping centre.Therefore, strategies are required for rejuvenation. The aim far promoting shopping centres is to improve their overall commercial potentials and auxiliary facilities. In addition, the shoppers' behaviors and characteristics, (preference, the choices ofthe retails shops, etc. ) as well as location of the shopping centre also have to consider. Furthermore, the competition from new shopping centres compels existing shopping centres to seek for the best ways and strategies to revive the business of a shopping centre. 1. 1 Aim and Objectives The aims of this study are to investigate and evaluate strategies for the shopping entre promotion in upgrading the value of a shopping centre. Factors such as marketing stand point, competition from other competitors, demographic of the surrounding areas, social and economic situation will be considered. In addition, this paper will study the consumer behaviour and characteristics, such as place of residence, mode oftransportation, frequency ofvisit and consumer images. The objectives ofthis study are as follows: I. I . i To conduct a literature review on the characteristics and the development 2 of shopping centre through a case study on â€Å"Whampoa Garden Shopping Centre† located at Hung Horn; . i . 2 To study the behaviour of the customers; i . 1. 3 To identify the decision problems and preferences ofthe customers; i . i . 4 To analyze the store image from the view ofthe customers; 1. 1. 5 To study why shopping centres require promotion strategies? and; i . 1 . 6 To examine the shopping centre promotion strategies; 12 Methodologies in the theoretical framework, reference has been made to relevant books, magazines, newspaper, annual reports, journals as well as data from census and government statistics. In addition, marketing, promotion and management of shopping centres will also be included.In order to obtain an understanding of the relationship between the customer behaviours and shopping centre promotion, this essay will examine two broad measures. The frequency of visit, purpose, accessibility, facilities, image and overall impression of the shopping centre would be identified. Moreover, the age group, sex, place of living, working condition, income and household size of the customers will be studied. In order to examine the taxonomies adopted by previous researchers of consumer (spatial) shopping behaviour such as Shepherd and Thomas, (1980); Spiggle and Sewell, (1987).The models such as Huffs topological model; Timmerman's conceptual model; Sheth's integrative theory and Lindquist will be reviewed. Those theories are focused on the perception of the shoppers relating to the shopping centre's image. Through the above methods, developers can select the right tenants and promotion strategies to generate income and promote the shopping centre image. On the other hand, a successful shopping centre can through the information such a s age, income group and the customers' behaviour, can decide the trade of business and formulate promotion strategies to attract customers to visit. 1. 4 Implication ofihe StudyThe study will find out the behaviours of customers, and the relationships among the tenants, developers and the customers. In addition, the shopping centre promotion will also influence the investment atmosphere and affect the income of the developers. The above study can be a reference for other aging shopping centres in carrying out revival programme. LS Source of Data This study is hard to get secondary data for the shopping condition since relevant parties are reluctant to provide their business strategies. Surveys would be carried out with the tenants and customers of the shopping centre in order to obtain the 4 first hand-data.On the other hand. , through interviews with the management staff and office staff, more information and data can also be obtained. Surveys and questionnaires will be conducted t o obtain the primary data. The questionnaire is printed in Chinese since the majority of' Hong Kong's population is Chinese. It contains questions about customer behaviour, personal particu1ar and the image of a shopping centre. 5 2. Customer Behaviour and Shopping Centre Customers spend their time in purchasing goods and services, at the appropriate places where they will visit. In addition, they also like to spend their leisure time for their aily activities such as entertainment, gathering arid shopping. Shopping centres provide them a place to meet these needs. What kind of shopping centre would be suitable for them; what kind of function and facilities should the centres have; what kind of market strategies and what kind of promotion can induce more customers to visit the centre. I [J1J1IIff According to Arnould, Price and Zinkham (2002), customer behaviours define as individuals or groups acquiring, using, and disposing of products, services, ideas, or experiences. Consumer be haviour also includes the acquisition and use of information.Therefore, communicating with consumers and receiving feedback from them is a crucial part of consumer behaviour of interest to marketers. Consumers may consist of individuals or groups including families, clubs and organizations, purchasing units within corporations, and government departments. Consumer behaviour is the study of human responses to products, services, arid the marketing of products and services. This topic is of considerable importance to marketing managers and marketing researchers because the focus on the consumers is the key contribution of marketing to business practice.Other business function (e. g. , finance, accounting and production) either neglect the consumer or overlook the consumer entirely. Organizations that lose sight of their consumers cannot compete effectively against firms that stay close to their consumers. Managers who really understand their customers develop better products and servi ces, promote their products and services more effectively, and adopt marketing plans and strategies that foster sustainable competitive advantages for their products and services. Furthermore, managers who know their consumers cari reach and satisfy them more efficiently.Such managers are important assets to any organization and are rewarded accordingly (Kardes 2002). The American Marketing Association defines consumer behaviour as â€Å"the dynamic interaction of affect and cognition, behaviour, arid environmental events by which human beings conduct the exchange aspects of their lives. † There are at least three important ideas that pointed out in this definition: (1) consumer behaviour is dynamic; (2) it involves interactions between effect and cognitions, behaviours, and environmental events; and (3) it involves exchanges. The following implications are put forward. 2. 1. 1 namicCnsumer Behaviour Consumer behaviour is dynamic and means individual consumers, consumers grou ps, and society at ‘arge are constantly changing and evolving across time. 2. 1. 2 Interaction It means that to understand consumers and develop superior marketing strategies, we must understand what they think (cognitions) and feel (effect), what they do (behaviour, and the things and places (environmental) that influence and are 7 influenced by what consumers think, feel, and do. 2. 1. 3 Exchanges These make the definition of consumer behaviour consistent with current definitions of marketing that also emphasize exchange.In fact, the role of marketing is to create exchanges with consumers by formulating and implementing marketing strategies (Peter and Olson, i 993). 2. 2 Why People GoShopping Why do people do the things they do? More specifically, why do they buy and consume the products, services, experiences, and brands they do? People always mention that when they are feeling low or want to reward themselves by shopping, and shopping can be interpreted as a pleasure or a self-gift. The role of shopping and purchasing has taken on dramatic new meaning and trend to be a recreational shopping.The modem, self-enclosed shopping centre in all its variant forms has become a site to which consumers make frequent visits to satisfy a wide variety of needs including those aesthetic enjoyment, problem solving, and personal display. These trends lead the emergence of the largest shopping centre such as Disney World, Universal Studios, and the like. Such shopping centres provide retail environments combine in shopping and entertainment. Going shopping is a major source of relaxation as well as a household chore. [:1 When people realize that a good store exposed the greatest portion of its goods to he greatest number of its shoppers for the longest period of time, which put its merchandise in the path and the field of vision in a way that invites people for consideration. We're all aware of how shopping means different things to different people at different times . We use shopping as therapy, reward, bribery, pastime, as an excuse to get out of the house, as a way to troll for potentia' loved ones, as entertainment, as a forni of education or even workshop, as a way to kill time. There are compulsive shoppers doing serious damage to their bank accounts and credit ratings, who use shopping as a cry for help (Underhil, i 999, p. 5-96). People going to shopping centres as all new modem shopping centres provide leisure spaces and varies facilities such as mini cinema, indoor family games stores and funfafr style shops. In addition, the enclosed environment, controlled climate, patrol of centre's security guards and the promotion events give customers a feeling of warmth, safety, comfort and satisfaction. In addition, people going shopping can be broadly divided into three categories, they visit the supermarket to buy household chores; occasional visits the regional shopping centre to buy fashion goods, elecirical app1iances and recently shopping centre as place for people gathering together and enjoy of fun. As Beddington stated in i 99 1 that shopping is a primary human activity in which almost every individual in civilized society Building and services for takes part, inevitably almost daily. shopping are as closely related to housing as those for education, health, administration and entertainment. Bund1in of products, product components, and services is an important consideration for manufacturers, retailers, and service providers bringing their goods and services to market. Bundling typically takes one or two forms: pure or mixed (Adams and Yellen, i 976).There are four factors that affecting customers' intention to buy product and service. (1) whether the product and service are pure and mixed; (2) the price discounts of a pure goods and service in comparison to the sum of the component of mixed; (3) the functional relationship among the components and (4) number of components. As more and more shopping centres estab lished with the development of property market, it is undeniable that the competition becomes more intense. Also as the economy recession of Hong Kong has not yet fully recovered, customers cautiously evaluate the goods and services when they use their savings, and he anchor product and service that they can obtain as they are become extra pricesensitive. On the other hand,, Shenzhen, a city in mainland China just about one hour from Hong Kong by train, offers attractive entertainment facilities and low- priced retail goods in various shopping complex. To a certain extent, it actually draws much Hong Kong customers away from Hong Kong' s more expensive stores and restaurants. In general, most retail shops inside shopping centres use lo price as its competitive tool to combat competition. It is not difficult to find that shopping malls range from metropolitan to eighborhood emphasize the concept of â€Å"Discount†, † Mega Sale† it is especially obvious in some fest ivals which usually highlight the provision of ‘crazy sa1e during festival. As a result, the provision of discount become a general practice to marketers and become a norm to shoppers. Without the benefit of discount, customers are more Likely to delay their consumption or shift to others stores with the provision of discount. Thus, it is not a long-term measure to combat competition. Ji}! iIU1iIk') tii flhlTi In the past, daily products such as provisions, wet foods are gathered in market; atching movie, shopping, entertainment, games and shopping are located in different places, performed at different times for specific people. Recently, the new modem shopping centres are characterised by new spatial form including leisure and consumption activities at the same place for different people. Centres are all modem and well-managed, together with special layout to attract tenants and customers. Many centres adopt the policy of encouraging independent and specialist outlets to pro vide more choices and lower price for the customers.The concept of tenant mix is widely used is shopping management, it provides a one-stop services for the customers, so that customers can obtain their needs in one trip. In addition, the centre is also provided security patrol system, cleaning 11 service, temperature controlled and the promotion events, customers can enjoy their life here in the enclosed environment, make them feel warmth, comfort, safety and satisfaction. Furthermore, people are looked busier; they would like to save their shopping time and use for entertainment and pursuit of personal interest and other leisure time activities.Nowadays, people are more enjoy the largest one-shop shopping centres, which providing them convenient and efficient shopping. In order to attract more customers visiting the shopping centre, shopping centre not only providing convenient and efficient shopping for customers, it also develop as a place for leisure activities and create parti cular themes to upgrade their ability to competition. Recently, there has been a trend for developer to provide mini cinemas, indoor family games stores, funfair style shops and food courts inside the shopping centre. Therefore, customers regard as part of their life or entertainment and enjoyment of their leisure time, this lead to increasing the pedestrian flow. In order to attract more pedestrian flow, developer recognized that some of the customers are only spent their leisure time in the centre without any purchasing. However, the large of pedestrian flow will induce investors and tenants to invest in the shopping centres, in which with recreational, entertainment and extra facilities. Finally, shoppers like to visit shopping centre when shopping promotion is held. As lifestyle of Hong Kong people is so excited, more and more shoppers strive for he feeling of relaxation during their weekends or holidays with families and 12 friends. They usually prefer to spend a day at shoppin g centre, which can provide one-stop services. 2. 5 Goal and Characteristic of CuMomer Women shop not out of devotional love for family members, and their shopping behaviours is an investment in their families and relationships with family members. Purchasers are rationalized not in terms of what was spent, but in terms of savings and thrift. The savings and thrift generated through shopping then constitute funds that can be given to dependents and descendents (Price, Arnould, Zirikhan, 2002). 6 Conceptual Mxle1s and Customer Characteristics In the following, the major ideas from and models derived by Huff, Timmerman, Sheth, Lindquist and Wee be briefly discussed. 2. 6. 1 Huff's Topological Model (1960) It attempts to derive simple deductive models of consumer spatial behaviour and cognition, Potter (1982) considers that one ofthe landmarks was the graph theoretical or topological model of consumers space preferences developed by Huff(1960) (McGoldrick, Peter J, and Thompson, Mark G . (1992, p. 46)).According to Huff, consumer spatial behaviour was determined by the interaction of three systems; the value, behaviour-space perception and movement imagery. These refer to (i) the geographical location of the consumer of the consumer and his/her personal traits; (ii) the perceived characteristics of the retail outlet; and (iii) the perceive and objective features 13 of the transport network and the mode of travel. 2. 6. 2 Timmermans' ConceptiialModel (1982) The model suggests that the decision problem such as the type of goods to be bought, together with the consumers value system, information levels, etc. , efines a set of decision criteria for the consumer which conditions the perception of the objective physical environment containing all potential outlets (McGoldrick, Peter J, and Thompson, Mark G. (1992, p. 47)). The decision making process makes this model involves an evaluation of each destination, base on the rating to evaluate attributes and Timmerman assu mes that consumer will chose their the destination with the highest scale value. In addition, he further points out that familiarity with the various shopping opportunities and whether they are within reasonable travel time are two important factors in this respect. . 6. 3 Sheth's integrative theory Sheth formulates a theory of shopping behaviour and a theory of shopping preference. A theory of shopping behaviour includes four types of unexpected events can intervene between preference and behaviour, such as events occur between the time and place when shopping preference and intentions are established and when actual shopping behaviour takes place (McGoldrick, Peter J and Thompson, Mark G. (1992, p. 47)). Sheth further postulated three basic constructions interact to determine a shopper' s preference or shopping predisposition. 14 2. 6. 3. Choice calculus Sheth used three systems such as sequential, dominant and tradeoff as the first construct by which consumers may match their sho pping motives with their shopping operation. In which sequential calculus eliminated shopping options that do not satisfy this motive until all shopping motives have been utilized. Tradeoff calculus involves the evaluation of each shopping option on aU shopping motives simulianeously to obtain an overall acceptability score. Finally, dominant calculus evaluates each shopping option only on the most impor. ant shopping motive. 2. 6. 3. 2 SlmppingmotivesShopping motives refer to shopper's needs and wants related to the choice that shoppers looking for. In 1983, Sheth provided a distinction between functional needs and non-functional needs; functional need is the shoppers need for the low prices or some products such as food, and non-functional need is the shoppers want to shop just for relieve boredom or some products such as clothes. In addition, Sheth mentioned that personal values, social values and epistemic values influence shopper's shopping motives. He further mentioned that sp ecial products also can influence shopper' s motives. 2. 6. 3. Shopping option According to Sheth, shopping options are determined by three market factors such as location, retail structure and positing/image. 15 2. 6. 4 Lindguist (1974-1975) Store image attributes groupings (McGoldrick, Peter J, and Thompson, Mark G. (1992, p. 59)). In this mode1 it describes nine store image attributes, which contributes to image formation or to favourable/unfavourable consumer attitudes towards outlets of various types. 2. 7 Shopping Centre Image Attributes AccordIng to Wee (1986) a basket of 27 attributes was worked out though an examination of coefficient alpha values.It was thought to adequately represent the domain of shopping centre image. By grouping the 27 attributes into different categories, 8 major factors of the customers towards store image are come out for ease analysis. Detail ofthe factor analysis is as follows:- Factor 1: Recreational Experience According to Wee, this factor accou nts for 3 1 . 2% of the variance and incorporates most of the â€Å"activity oriented†. These are, in descending order of leadings, a place to spend time, an â€Å"in place† to go, a place to go when the weather is bad, a place to take children and a place to eat or drink. Two feature related variables, ecor and spaciousness, also lead significantly and are consistent with this interpretation. Factor 2: JJr Friendliness This label was chosen to describe the group of variables loading with factor 2. Most of these attributes are features, which make the centre an easier and more 16 pleasant place to use. These attributes that are unique to this factor are the helpfulness of store staff, friendliness of the atmosphere, standard of security, toilet facilIties, seating area and air condoning. The two other attributes, place to eat or drink and a place to take children, load higher with factor i.Factor3: Stores It comprises the four attributes relating to stores at the cente r, rather than the centre itself. These rated the choice of major stores, the variety of stores, the product selection available within the stores and the general quality ofthe stores. Factor 4: Quality of Environment It combines the four attributes relating to the appearance and design of the centre, namely, cleanliness, lighting, spaciousness and decor. Factor 5: Ease ofUse by Car It represents the level of accessibility to car users, who tend to be in the majority at this centre. t is possibly surprising that layout loaded within this factor, rather than factor 2 or 4. This could suggest that the layout of at very large centre is associated more strongly with accessibility than with the internal feature of the centre. Factor6: Others Factor 6 was labeled â€Å"crowding† incorporating the level of crowds and the number of undesirable characters. Factor 7, labeled â€Å"ease of use by bus† combines the opening hours and access by bus; this provides a reminder that ope ning hours are, 17 in effect one element of accessibility. Only on attribute loads significantly ithin factor 8, the general leveL of prices. In this essay, survey will be conducted by using some attributes, which are mentioned above, for the analysis of the consumer behaviour of Whampoa. 18 3. What is a â€Å"SltoppingCentre†? The use of the world â€Å"mall† to describe a pedestrianised shopping street almost certainly originated in North America in ari effort to convey a greater sense of space, quality and elegance than is normally associated with an arcade. Malls are usually covered and wide enough to provide a central area for planting, seating, fountains and other furniture.Although shops fronting an arcade are usually smaller than those in a shopping mall, the basic difference between a mall and an arcade lies not in the types of shops found in them but in the volume of space between the frontages (Northen and Flaskoll 1977). The shopping centre is distinct from other forms of commercial retail development. It is a specialized, commercial land use and building type, which today is found throughout the world but until the late 1 970s thrived primarily in America suburbia, occurring only rarely in downtowns or rural areas. Over the years, it has been ransformed from a suburban concept to one with much broader and varies applications (Shopping Centre Development Handbook). According to Urban Land Institutes (1990), shopping centre is defined as â€Å"A group of commercial establishments, planned, developed, owned, arid managed as a unit related in location, size and type of shops to the trade area it serves; it provides on-site parking in definite relationship to the types and sizes ofthe store (James (1993, p. 3)). Recently, Urban Land Institutes has redefmed this definition so that a shopping centre must have a minimum of three commercial establishments, and, in the case of urban 9 shopping centres, their on-site parking needs may be relat ed not only to the types and sizes of the stores but also to the availability of of-site parkings and alternate means of access (Shopping Centre Development Handbook). However, it is not easy to derive a universally accepted definition of shopping centre because of several reasons. Shopping centres range in size from a very few shops to those with hundred number of shops, offering a full range of shopping provisions including large department stores, restaurants, supermarkets, entertainment facilities and parking spaces as well. 3. 1 The Principle ola ShopphigCentreThe successful of a shopping centre depends on many factors such as design and layout, its locatIon, its catehment areas, the way the business is run by the shop traders and whether there is any competition within the vicinity. ! Before constructing of the shopping centre, developer should understand the position of the centre in order to avoid competition with other centres The centre will depend on the size and the popu lation to classify as community shopping centre or regional shopping centre. Also it will depend on the location that the transport can be reached together with visiting carparks.Then, developers should identify the role and function, and choose the most 20 suitable theme and target groups of retailers and shoppers. For any type of shopping centre will play different role and provide different goods and services to the specified catchment population. A good shopping centre requires to strength its image by special features and good facilities. 3. 1. 2 Locationnfa Shopping Centre Location is one of the paramount important elements for a shopping centre, accessibility and visibility should be taken into account. The best location for a shopping centre should e located at strategic location in well-developed district such as area close to railway stations or any transport interchanges. Retailers will decide to run their business as high visibility and easy accessibility of a shopping c entre will increase the pedestrian flow; also shoppers from other districts will be attracted to this centre. 3. 1. 3 Catchment Area To defme the catchment area is one of the major factors affecting the success of a shopping centre, developer should understand the needs of customers, and tailor-made the design and different type of shopping centre will have different criteria for catchment area. . 1. 4 Accessibility and Interlink The key to a successnul shopping centre plan is to attracted more pedestrians as they are potential shoppers. The greater the concentration, the better the shops will be run their business. The City Plaza at Taikoo Shing and New Town Plaza in Shatin, pedestrians have passed through the shopping centre; 2! the provision of covered footbridge linking to all shopping centres is an example of diverting the pedestrian flow. The more time the shoppers stayed in the shopping centre, the more chance they spend.The trades of the retailers must make special arrangeme nt, so that shoppers visit all parts of the shopping centre will not feel tired and lose their interest. 3. 1. 5 Ten ant Mix Selection of well-known brand names and anchor tenants is critical to strengthen the centre and appeal to others as pulling effect may be result by such tenant. It can also attract shoppers to visit all parts of the centre and maximize the attraction ofprospective customers. However, the routing of centre should be well designed and balanced for all retailers.The success of a shopping centre may rely on proper designation of trades in its appropriate locations to create pedestrian flow to induce shoppers. In addition, a trade balance is also good for a shopping centre. Apart from catering the local needs, anchor tenants may attract more shoppers. Major tenants such as department stores, supermarkets, large Chinese and Western restaurants, chain stores and entertainment facilities such as iceskate field and cinemas. Beside the desigiated trades, some criterion for different trades should be considered. a) licensing requirements such as food premises require the provision of drainage, extra water supply and exhaust arrangement; (b) eleclricity supply for fast food shop and large consumption of electricity imdes; 22 (e) air conditioning for some trades require addition cold water and (d) floor loading will be considered for some trades that require installing heavy machines. 3. 1. 6 DecoratiGn hi order to attract tenants running their business in the shopping centre, the decorations should be glamour and attractive to induce potential and anchor raders. The layout of the shopping centre is a key factor in patronage and increasing the business promising. In addition, it is also ensured that customers could be convenient and easy to follow the route; the signages are easily to identify, so that to attract them from one end to the others, and from the first floor to the second, third and up to the fourth floor, etc. Furthermore, any dead-end t o be avoided, and harmony standard in design and layout of the shopping centre should be included the design of the shopfront entrances and finishes. . 1. 7 Sliopfront Standard glass panels are installed in the front of each shop, which enable tenants to display their products or demonstrate the services to be provided in order to attract customers. To maintain a continuity and uniformity of the shopfront, all tenants are requested to make use of the metal facade above the glass panels to place their trade name and logo. 3. 1. 8 Entrances The entrances for a shopping centre must be as attractive as possible; locations 23 must be at a concentration of pedestrian flow.In addition, a successful shopping centre should provide enough customers flow especially in peak hour and season, and each entrance should be conspicuous and brig1t enough to draw attention of the pedestrians arid passers-by. It also is as wide or grand a possible so as to produce an elegant or classic image in order to impress both tenants and shoppers. A narrow entrance gives an unpleasant outlook and is unattractive. 3. 1. 9 Finishes The finishes should make customers feel comfortable, in which colour should be consistent with the theme of the shopping centre.The external wail facade of the shopping centre should be furnished with pink and yellow tiles together with tempered glass glazing, in which light coloured materials could brighten up the appearance of the shopping centre. For internal wall facade with the corridors, mirrors should be installed on the wall. It makes customers feel more comfortable as space in the corridor looks like ‘arger. In addition, in the prominent places, the wall should be covered by stainless steel, porcelain enamel or coated metal cladding. Furthermore, floors could be applied ceramic tiles and granite tiles in the open areas.However, for those areas in the centre of the shopping centre could pave granite slab and polished homogenous tiles to upgrade the sh opping centre. Finally, the false ceiling with light trough could be covered the ceiling. 3. 1. 10 Signage System In order to direct pedestrian flow and strengthen the identity of the shopping 24 centre, a sizable name of the shopping centre with logo should be placed in the external wall; in which is easy eye-catching for the customers. In addition, an external advertising paniel for anchor tenants should be installed on the Mall facade the main street.Furthermore, name of the tenants is shown in each floor together with a guide map, directories showing each tenant at each floor on the wall near the escalators and staircases. Main directories showing tenants under different trade groups can be installed at the main access to facilities customers to identify and locate specified trade more easily. However, restriction must also be imposed on the size, colour and method of illuminating the signboards so as to obtain a better appearance as a whole. The amount of wording used and the s ize of lettering should be strictly controlled. . 1. 11 Marketing Marketing in which plays an Important role In the retailing business. the chief target is provided a pleasant environment for the customers to spend their money, while tenants to promote their sales. The duty ofthe marketing people must realize that the aggressive advertising and promotion campaigns required huge amounts to pay for such activities. In addition, the on-going market analysis to explore the ever changing of market conditions, customers' behaviours, purchasing power, attitude, social taste and trend should be studied to adapt the change.Market exposure is an important to gain the latest market intelligence, so that pro-active strategies could be formulated to strike for survival and expansion. 3. 1. 12 Management 25 A successful centre can also be attributed to an efficient and effective management; management a centre is a challenging role that requires all ski11s knowledge of a professional Management C ompany. From the shop tenants' point of view, they desire reasonable profits, while from the customers' point of view; they expect an attractive, comfortable and constant flow of traders.Due to face with ever changing environment, high expectation from the tenants and customers, and the competitiveness in the vicinity, it is essential that effective and efficient management together with innovative marketing concepts should be adapted. 3. 1. 13 Promotion The centre should be designed to strengthen promotional and publicity activities with an aim to draw the public's awareness to generate traffic and patronage, so as to create additional sales. More creative and innovative promotion activities, free coupons for shopping arid particular prize winning events will be introduced.In additIon variety show features and popular artists will be invited during holIdays. Promotion campaign will include: to work out promotional programmes schedules to be linked with the theme of the centre; to a rrange seasonal and festival decorations; to issue shopping guide, display panels and newsletter; to maintain a web site to publicize information and activities relating to the Mall; arid arrange gatherings and meetings with shop tenants, district Councils and community groups. oT;u) ifs] s] sjflfl 26 Much of the impetus for shopping centre development came from USA and by the id-1950s; three main types of shopping centre had been recognized by developers, architects, plamiers and geographers (Dawson 1983). Shopping centres were originally divided into three principal types – neighbourhood, community and regional; recently, the development of specialized markets opportunity, numerous types of shopping centres have evolved. The acceptance of this three-fold classification has become one of the established truths of modern urban geography and remained in common use despite the subsequent development ofmany centres which clearly do not fit any ofthe three ategories. The classifi cation has become less meaningnzl because there are increases in the numbers of centres arid the irmovations in tenant policy design, location and development practices (Dawson 1983). The increase in hybrid shopping centre makes the types of shopping centres difficult to distinguish; therefore the major tenant classifications and to a lesser extent the centre size and trade area determinate the type of centre. 4_ ff1rf ;i;rn; i The neighbourhood shopping centres provide for the sale of convenience goods such as food, drugs, sundries and personal services.This centre is usually based on a supermarket and covers a wide range of convenience goods including personal services such as laundry, dry cleaning and shoe repairs. It serves a localized catchment population less than 50,000. (Planning Department, 2001). It provides convenience goods and services which 27 consumers needs immediately and frequently. Shoppers as a rule find it most convenient to buy such goods and services near home or near workplace. Majority ofthis shopping centre is located in public housing estates. Most are less than 30,000-100,000 square feet (Shopping Centre DevelopmentHandbook, 1999). Typical Gross Leasable area is 50,000 square feet. Shopping centres locate in public and private housing estates are typical example such as Metiopolis Plaza locates at Sheung Shui near the Kowloon Canton Railway. The shopping arcade is on level I and 2 just underneath the three domestic blocks, with 60 shops of a total rentable area of 56,433 square feet. There are 129 private car and i i 9 bicycle parking spaces respectively. The centre is also accessible by public bus, public light bus and taxi, In addition, there are 22 lorry carpark spaces and 2 cargo lifts for loading and unloading.Between level i and 2, there are 2 escalators for customers. The centre is satisfied for local residents' need as it includes food & beverage shops, convenience shops, boutique shops, shoes and leather shops, electrical a ppliance shops and others. 3. 2. 2 The Crnmnunity Shopping Centre Community shopping centre is built around a small department store or variety stores as anchor tenant. In addition to a supermarket provides convenience goods and offers a wide range of comparison goods and personal services. It usually locates in new town centre with convenient transportation network and erves a catehment population of about 50,000 to 1,OOOOOO (Planning Department, 2001). The range of the area is 100,000-450,000 square feet (Shopping Centre Development Handbook, 1999). Typical Gross rental area is 28 150,000 square feet. This type of shopping cenfre also offers greater depth and range of merchandise and goods than neighbourhood shopping centre. It provides certain categories of goods, particularly commodities, which are less likely to be found in regional shopping centre. It attracts shoppers through the provision offull range ofshopping faciLities and goods. The maIn attraction ofthis kind f centre is usually the department store or some anchor tenants like ParkN Super Store, McDonald's Restaurant and Maxim's Chinese Restaurant. On the other hand, neighbourhood shopping centres have potential power to be a community shopping centre as their sizes and populations are strong enough to support them, just as some community shopping centre can expand into regional shopping centre. Therefore, the position of community shopping centre is the â€Å"in-between† centre, and it is hard to categorize. Tuen Mun Town Plaza and Shatin New Town Plaza, Telford Garden in Kowloon Bay are categorized as regional shopping centre.Shopping centres in Hong Kong such as Hang Fa Chuen in Chai Wan and City plaza in Taikoo Shing with several residential blocks in the vicinity, are categorized as community centres. 3. 2. 3 The Regional Shopping Cenfre Regional shopping centre usually has one or two full-line department stores, and the size can be range from 300,000 to 900,000 square feet, which can be served more than 150,000 populations. This type of shopping centre is a comparison trading centre, customers are visited on a regularly period or 29 occasional shopping trip to purchase goods such as fashion, shoes, furniture nd electrical appliances; customers usually make the prices comparison before they buy. It usually serves Hong Kong people as a whole. It includes local residents, office people as well as tourists. For example, Landmark at Central, it provides consumer durable goods, personal services as well as entertainment. The catchrnent area of this centre involving into different district areas and serves for large group of population. Shopping centres such as Pacific Place, Landmark, Time Square at Causeway Bay arid Ocean Terminal at Tsim Sha Tsui and Festival Walk that serve for people in different districts. . 2. 4 Specialty Shopping Centre J_n Hong Kong, this kind of shopping centre represents relatively small categories of the market, typical example such as gol den Shopping Centre in Shamshuipo for various types ofcomputer hardware and software. Golden Shopping Arcade is suited at Yen Chow Street and Kwei Lin Street in Shamsbuipo district. It is just a few steps away from the Shamshuipo Mass Transit Railway station, and public buses, public light buses and taxi can also be accessed. There are about 70 shops occupying two levels of the arcade. Beside he retailing shops, there are shops selling computer hardware and software of various brands and models. No matter new and experienced computer users, the arcade attracts them as the centre provides various software and hardware at lower prices. 30 3. 3 The Development f Shopping Centre According to Schiller, i 985, the term of shopping centre is ambiguous in Britain. It can mean either a comprehensive shopping development, as it does it most other countries, or a clustering of traditional shops in a town centre. Town centre can include planned and unplanned retail areas; however shopping centr e is often oosely used to mean a group of shops, which has been designed, planned, developed, owned, marketed and managed as a unit. Shopping centre is a planned assemblage of shop units which may or may not exist as part of sopping district, in which a shopping district can consist oftwo or more shopping centres. In Britain, many town centres has been developed as a shopping centre. According to McGildrick & Thompson, 1991), the massive suburban expansion in the last thirty to forty years has produced the features of urban landscape usually associated with the term â€Å"Shopping Centre†, but the British residential sprawl

Law Case Analysis

Law Case Analysis Material Facts and Source of Law The plaintiff William Shelensky was a director who owned a minority stockholder of Defendant Corporation called Chicago National League Ball Club, which operated Chicago Cubs. The Cubs had been suffering operating losses from direct baseball operations from 1961-1965. The director defendant Philip K. Wrigley who owned 80% stock shares did not install lights at Wrigley Field so that the Cubs could not play at night when at home, even though the other 19 major league teams scheduled night games.Defendant (Wrigley) claimed that baseball is a day sport and that playing at night would adversely affect the surrounding neighborhood. William appealed a lawsuit against the director Philip K. Wrigley and other directors that their mismanagement of not building lights for night games was contrary and unrelated to business interest, causing inadequate attendance and company financial losing. Oppositely, defendants argued that courts couldnâ€⠄¢t interfere business decisions unless there is fraud, illegality or conflict of interest.The source of law is case law where the rules of law announced in court decisions. Mr. Justice Sullivan judge on this case based on previous ground rules deprived from other 10 affirmed cases. Specific Legal Issues The case of Shlensky vs. Wrigley involves both question of law and question of fact. It involves question of law because plaintiff and defendant have different positions in interpreting rules. The Plaintiff holds that fraud, illegality and conflict of interest are not the only bases for stockholder to sue the directors while the defendant hold opposite position.Therefore, it needs judge to interpret and apply the law in this case. It also involves the question of fact, which is whether it likes plaintiff’s saying that defendants’ refusal of constructing lights for night games attributed to the company loss. Plaintiff’s Argument Plaintiff Shensky was advocating f or the damages for mismanagement of directors. The plaintiff also required the defendant to install the lights in Wrigley Field and schedule night baseball games.The Plaintiff claimed that night games would help the company's financial condition, and that the sales from attendance at night games would pay for the cost of the lights. However, directors refused to install lights in Wrigley Field because the personal view that night baseball games would disturb surrounding neighborhood. Have the directors been negligent in failing to exercise reasonable care and prudence in the management of the corporate affairs by making decisions, not out of a good faith concern for the company, but for personal views.Therefore, The Plaintiff claimed that defendants were liable for mismanagement because reasons of not installing lights were contrary and unrelated to business interests. Defendant’s Argument Defendant Wrigley was advocating for that court could not interfere cooperate affairs i f they did not break the law and contract. Defendant claimed that the reason he insist not installing lights is that baseball is a daytime game and night games would disturb surrounding neighborhood.He also claimed that if night games played, the negative effect from neighborhood would decrease company’s reputation. However, he was willing to play night games if a new stadium was built in Chicago. The defendants argued that their concerning and acting did not break the law, contract and conflict interest. Therefore, the court did not qualify for the responsibility to judge them. Court’s Decision and Rationale The court ultimately revoked the case and affirmed defendants’ failure to schedule night games did not constitute negligence.Firstly, The court feels that unless the conduct of directors borders on one of three elements (fraud, illegality, conflict of interest), the court will not interfere the directors’ decision and behavior. Secondly, the plaintif f’s claims are defective. Plaintiff cannot prove that the decision of not installing lights would bring huge amount of profits to the cooperation because there was no allegation that the night games played by other teams enhanced their financial condition. The plaintiff didn't even take into consideration how much it would cost to maintain the lights.Also, the claim of â€Å"Have the directors failing to exercise reasonable care and prudence in the management of the corporate affairs by making decisions, not out of a good faith concern for the company, but for personal views† is also defective. Because the effect on the surrounding neighborhood is something to be considered when making company decisions, as that affects who attends games as well as the value of the property. The concerning of surrounding neighborhood is a good faith of concern for the company and related to company’s long-term interest.The legal rules used by the court include many court decisio ns from other similar cases. For example, the court relied on language found in Hunter v. Roberts, Throp & Co. , 83 Mich 63, 47 NW 131, 134, â€Å"Courts of equity will not interfere in the management of the directors unless it is clearly made to appear that they are guilty of fraud or misappropriation of the corporate funds, or refuse to declare a dividend when the corporation has a surplus of net profits which it can. The Justice Sullivan applied this rule onto the case of Shlensky. Lessons Learned from the Case After analyzing the Case of William Shlensky and Philip K. Wrigley, what I will take away from reading the case is that courts protect directors’ rational decisions. These decisions may not be very profitable or right in hindsight, but directors are protected from liability so long as there is no fraud, illegality or conflict of interests of shareholders. It is an important case to analysis because the case teaches more than just legal principles.By learning law in context of actual lawsuits, in the case of Shlensky and Wrigley, I learned how disputes arise, how plaintiff and defendant deliver both arguments and how the judge applies previous case law decisions into the current case to make a decision. The judge decides the case based on the real facts other than one party’s claiming. Rather than reading pages of abstract statements of law, the rule that court cannot interfere legal business decision are presented more vividly by real problems involving real people.

Comparison of Two Religions Research Paper Example | Topics and Well Written Essays - 500 words

Comparison of Two Religions - Research Paper Example Buddhism originated in northeast Asia under the influence of an ancient Buddha known as Gautama Siddhartha who lived in the 5th century B.C. Siddhartha came up with Buddha teachings that enabled an individual to attain high levels of enlightenment. At this level, the individual completely detaches from the body through the process of meditations thereby alleviating worldly sufferings. Buddhism has undergone metamorphosis leading to divisions in the ancient traditions of Buddhism. The divisions include Vajrayana that represents the diamond vehicle, Theravada that symbolizes the doctrines from the elders and Mahayana that represents the great vehicle (Wilke, 2011). Hinduism entails numerous religious practices but the most prevalent practices include Hatha yoga, Ayurveda, and the Kundalini yoga. Hatha yoga is the process of meditating in order to attain self-awareness (Cush & York, 2008). Hatha yoga provides the oldest form of Hinduism that enabled individuals to achieve their objectives in life through the process of profound concentration. Ayurveda constitute the ancient traditions of Hindu whereby individuals received treatment and healing. In the contemporary societies, many individual have incorporated the practice into their religious practices especially in the West. Kundalini yoga enables an individual to unlock the psychic energy that exists at the root of the spine allowing it to diffuse to the upper parts of the spine, hence a heightened level of relaxation (Cush & York, 2008). Having undergone radical changes in its traditions, Buddhism retains specific ancient religious practices that incudes meditations, Mudras, and prayer wheels. Meditation is common in various sub sects of the religion. To achieve ultimate goals through meditations an individual engages in rigorous concentration. This helps the individual to attain detachment thereby developing ones reality.

Cross-cultural briefing report Scenario GeekChic Essay

Cross-cultural briefing report Scenario GeekChic - Essay Example The various cross cultural theories in the report would help the company (GeekChic) to understand the social and cultural aspects of the markets of Paris in France. Macro Level Facts of France The economy of France is highly developed across various business segments. The estimated Gross Domestic Product of the country as recorded in 2012 was $2.291 trillion. The nation is a developed country in the global economy with about 1.7% average growth in real GDP. The per capita GDP of the country was about $36100 in 2012. The exchange rate of the currency of the country is $2.609 (CIA, 2013). The individuals of the country have a high standard of living and its aggregate rate of urbanization is about 85%. Since France is a developed nation, its currency value is high in the economy. The city of Paris in France enjoys a moderate climate throughout the year. The average temperature of the country in summer is 30? centigrade and in winter, the temperature goes below 6? centigrade (Locke and T ower, 1995). Hofstede’s Analysis The Hofstede's cultural dimensions theory was established by Geert Hofstede. It shows how the behaviour of the individuals in a nation depends on the cultural values of the society (Mooij and Hofstede, 2010). If the cultural aspect of France is analyzed on the basis of this model, then it can be stated that the country scores 68 on the grounds of Power Distance Index (PDI). This in turn measures the extent to which the weaker members in a society would accept the fact that power would be distributed unequally in the society. The index of individualism in France is also high (71) (IDV). This actually means that the French people desire self care and does not prefer to be a group. In terms of a Feminine nation, the country score is 43 (MAS). The Uncertainty Avoidance Index (UAI) of the nation is about 86. This shows that most of the individuals of the nation are highly sensitive to any uncertain changes in the market. Scoring a rate of 39, Franc e is not a long term oriented society (LTO). This means that the French individuals make prompt decisions with respect to the changes in the external world. Figure 1: Comparing of France and China (Source: The Hofstede Centre, 2013) Comparing the cross cultural views of France and China, it can be stated that in contrary to the French individuals, the Chinese are lesser traditional and lesser sensitive to uncertain circumstances and prefer being in community or groups. The above graph clearly shows the cross cultural variations between China and France. Section B: Cultural Differences While making an international business expansion in Paris (France) from China, the female manager would have to face various difficulties owing to the differences in the cultural views of French and Chinese individuals. In the modern world, the primary business objective for all the corporate firms is ‘consumerism’. Thus, it is important for GeekChic to understand the precise nature of the consumers in France. The following context of the essay would explain the different challenges or opportunities that the company might face when it would be in France for business. â€Å"Culture is just the man made part of a business environment† as stated by Herskovits (1948). After globalization, international trades between nations have increased in terms of its scale and scope of

Marketing Essay Example | Topics and Well Written Essays - 250 words - 62

Marketing - Essay Example I believe that the leap from use of synthetic drugs to natural supplements among many customers will make the product highly sellable. Since the drug is made from natural products, it can be taken by children and adolescents or those who have no osteoporosis for the prevention of bone problems. The product is safe for all ages and genders as well as patients with other ailments so that a large number of customers is promising. The forecast for the product is positive with people largely embracing alternative medicine because of the side-effects of many synthetic drugs. The product guarantees no similar side-effects except for allergic reactions to a limited number of products. Since some of the ingredients are from animal products, the possibility of allergic reactions should be considered but not seriously because the drug has more benefits than disadvantages. Therefore, some customers may not buy the product for this reason. However, the number is minimal so that there would still be more than ninety percent success for the

Supply Chain Management (operations management)2 Assignment

Supply Chain Management (operations management)2 - Assignment Example In order to maximize revenue, an organization has to consider the net worth of a product to the customers and what the supply chain tends to accomplish is to get the exact requests of the consumers. Supply chain management is basically concerned with issues of who is involved, cost and service in addition to integration of such kind of services (Jacoby, 2010). Supply chain strategies are directly affected by other chains available within the organizations. This includes an activity that comes up with the introduction of new products to the firm. Supply chain should also be integrated with other goals of the organization like the ones which leads to maximization of profit margin thus giving a lot of returns. Supply chains needs to be designed to eliminate unnecessary uncertainty and risks at all levels of production. Some of the risks that may come in the course of production include the risks associated with machines, logistics amongst others. Organization can optimize supply chain management to improve results and remove obstacles in several ways such as the global optimization. Having a complex network, the supply chain management have so far been developed to enable integration of products from the point it comes from the supplier to the point delivery is done. A good example is whereby an organization can be able to get a supply and directly deliver it to consumer without having to actually stock it and then goes ahead to make payments through electronic money transfer. Supply chain is considered dynamic in nature. Customers’ demands and suppliers’ potentiality will always change after sometimes. This will in turn leads to evolution in supply chain relationships. For instance, when a customer potentials increases, this will impact more pressure on the supplier to increase the rate of productivity in quantity and quality. Organizations should be able to project any risk that might come in the line of production of commodities to the

Business law case study questions Example | Topics and Well Written Essays - 2000 words

Business law questions - Case Study Example Thus under the general notion, the company is liable for its debts and not the shareholders. (Ridley 2011) The landmark decision in respect of company incorporation was of Salomon v Salomon ([1897] AC 22) where Mr. Salomon, formed a company which included his wife, five children and himself (so as to fulfill requirements of shareholders as per the Companies Act prevailing at that time). He went on to purchase the sole trading business which was operated by him albeit overvaluing the business, but that too because of his confidence in the business. The company went into liquidation and the liquidator evaluated that the company was a sham and was an agent of Salomon and conclusion was that he should be held personally liable to the debts of the company. The House of Lords reversing the decision of the Court of Appeal observed that it was reasonable if shareholders held shares merely to fulfill technical requirements and so the procedure of setting up a business could be used by any per son and if so done it would be a separate legal entity. The current Companies Act 2006 (s.7) allows a company to be formed by a single person. The next decision that was made by the House of Lords was Macaura v Northern Assurance Co. ([1925] AC 619) the court went on to say that under corporate personality assets belong to the company (Dignam et al 2012). The courts have scrutinized the concept of separate legal entity by lifting the veil of incorporation, whereby rights and liabilities of company and shareholders are treated as the same thereby removing the concept of limited liability as a result of which the shareholders are held liable for the acts of the company. This is known as lifting the veil, which is done mainly where the company is found to be a â€Å"sham† or â€Å"fraud†. The current position in respect of lifting the veil is that of Adams v Cape Industries plc where it was held that the veil would be lifted only if the company is created with the intent or purpose of fraud or where the reason was for avoidance of an existing obligation. (Dignam et al 2012) In respect of the position of McDaid Development (Ireland) Ltd and its shareholder, it is important to note that McDaid is a private limited company and has one shareholder who owns all the shares. Under the Companies Act 2006, a single person can also set up a company. The benefit that the shareholder would derive from the company is that of limited liability which means liability would be limited to the extent of unpaid shares and the shareholder would not be held accountable for the losses that have been incurred by McDaid Development (Ireland) Ltd. Q2. The Companies Act 2006 prescribes several duties on company directors. Discuss the general duties of directors according to the law. Analyze and discuss the duties breached by Peter McDaid as the managing director of McDaid Developments (Ireland) Ltd. In accordance with the provisions of section 171 of the Companies Act 2006, t he directors must act within powers and to exercise them for a proper purpose. If a director breaches the same such breach is generally considered to be a breach of the director’s duty to act in good faith. Difficulties have arisen when the directors act in good faith but not for a proper purpose. In the decision of the Privy Council in Howard Smith Ltd. v.

Pepsi Co Essay Example | Topics and Well Written Essays - 500 words

Pepsi Co - Essay Example The sales of the company have reached $30.4 billion according to estimates made in 2010. The intense competition in the market has led the company to take effective and strong measures to improve their financial standing as well as market reputation throughout the world. This is the reason that Pepsi initiates several promotion programs throughout the world every year. They have also reached the whole world to increase their market capacity so that they win the ‘sale-race’ against their mainstream competitor Coca-Cola. The marketing promotions and programs have led the Pepsi Cola Inc to become one of the top competitors of Coca-Cola. Their competitor has although a large market share, but still Pepsi is keep emerging into the market as the mainstream beverages company. The total net revenue of the company in the end of 2010 was $57,838 million, which were quite lesser than the revenue generated by Coca-Cola Inc in the end of 2010. According to the current balance sheet prepared by the company officials in 2011, Pepsi has current assets of $17,834,000 thousands, which is also quite lesser than that of Coca-Cola but the different of assets has decreased compared to the data recorded 5 years ago, and that shows the company growing its business and excelling its competitors. Whereas, the total assets owned by the company are more, i.e. $75,378,000 thousands. The total liability of the company is $51,801,000, whereas total equity of the company is $23,577,000. And the total liabilities and equities of the company is $75,378,000 thousands. Compared to the soft drink sales in 2010 of Coca-Cola’s 1590 million cases, Pepsi was only able to sale 892 million cases, which means that Coca-Cola was able to make more than around 40% of more profit than that of Pepsi. The company’s gross profit margin in 2011 records was 57%. Their current ratio is 1, and cash per share is %1.97. Their cash flow per share is

Classic Airlines Marketing Solution Essay Example | Topics and Well Written Essays - 1500 words

Classic Airlines Marketing Solution - Essay Example This is irrespective of a manager’s educational background or their intellectual abilities as problem solving is a nurtured skill. Problems are a part of a business’s routine that helps it to grow. For instance, the objective of this paper will be to solve classic airlines marketing problem using the nine-step model by identifying and defining the problem. Additionally, it will tackle the objectives and obstacles available in the solving of the marketing problem of the airlines marketing department. Issues identification within Classic Airlines Classic airline is the world fifth largest airline with three hundred and seventy five jets in its stable. It has over two hundred and forty flight destinations with at least two--thousand three hundred flights in a day. Its existence is over twenty-five years, which has seen the company grow to having a total number of thirty two thousand employees. Its average turnover per year is between ten million and nine billion. Like any other business structure, Classic Airlines has had its part of challenges. The company witnessed intense plummet of its share price in the stock market because of flying uncertainties. In addition, the negative publicity exhibited by the public, the media and the Wall Street market have gravely affected employee morale hence affecting their overall performance. Problem statement In effect, the consumer confidence on the airline dwindled as the Classic customer reward program membership decreased by an alarming number. The number of flying times that the remaining Classic loyal customers reduced significantly over a short period. Some of the customers jumped ship to access services from the airlines competitors. Moreover, Classic Airline’s inability to meet the rising fuel and labor costs have made the airline unable to compete in a well represented market. In a counter approach move, the airline’s board of directors suggested a cost reduction measure for a period range of one and half years. Under the set period, Classic airline would be able to beef up its frequent flier programs that should bring a significant return on investment. SWOT analysis for the company Strengths Weaknesses Opportunities Threats Long time existence in the market Regular flight delays Investing on the changing customer needs Fierce competition from other players within the travel industry Internationally recognized brand The number of seats that a customer has to have for them to redeem their flier miles The recovery of the travelling industry Fluctuating global currency rates Customer loyalty to frequent flier programs Carelessness of staff leading to loss of client luggage The airlines’ good reputation with the labor unions High fuel and equipment costs Effective implementation of cost reduction measures Poor inter client and staff relationship Venturing in to new destinations both internationally and locally Sanctions imposed by the European Union on carbon emi ssions and the environment Good relations with its employees Reliance to old forms of travelling techniques Steps in problem solving for Classic Airline’s marketing problem Short-term issues Classic Airlines’ service product Ideally, the greatest, selling point of a product or service is the service product itself. In essence, a service is the act of approaching a need or want in an intangible manner where no one claims ownership.

Mid-term Assignment Essay Example | Topics and Well Written Essays - 1000 words

Mid-term Assignment - Essay Example They have brought most of the world influential markets together to breach the boundaries and limits to allow global flow. Through technology, they have been able to offer transport and make efficient communications to the target markets. This has in turn cut down costs that keep most participants out of the market. They have managed to liberate trade activities (Intriligator, pp. 3) with economic liberation being the main topic. Through this, so many changes have happened in that the way the world trade currently is smooth and with minimum barriers. Even if this kind of liberation was started by most countries during the world war, China and the United States have managed to actualize it in time when the world needs it most. This contribution has lowered the trade charges. Factors of production discourage most countries from participating in international businesses. However, these two nations provide the most important factors of production; capital and labor that boost the developing nations. Since they are superpower nations, they have made sure that most of the international markets and links are open to all those willing to take part in. Institutional changes have played a key role in globalization. With improved technology, most companies have managed to expand their market bases. Initially, with little technological knowhow, most of these companies valued local markets. The introduction of great technological means has revolutionized how they operate. This means that their profit have gone beyond their imagination. United States and China have huge multinational companies that are shaping up the industrial structure. Through this, there is increased productivity, power and profit generation because all resources are being utilized. Another good way of incorporating firms is through the use Nongovernmental organizations. These two nations have a will to support the

History of Coffee Essay Example for Free

History of Coffee Essay Coffee is one of the world’s most poplar beverages. Some claim it is the most widely consumed liquid in the world aside from water. Coffee is more than a beverage , however. It is a memory , anticipation, a lifetime of consoling moments of modest pleasure woven into our lives. Coffee’s success as a beverage undoubtedly owes both to the caffeine it harbors and to its sensory pleasure. Coffee lovers come to associate the energizing lift of the caffeine with richness and aroma of the beverage that delivers it. Coffee is grown in more than 50 countries around the world and the principal commercial crop of over a dozen countries, half of which earns 25% to 50% of their foreign exchange revenue from coffee exports. More than 10 billion pounds of coffee beans are grown per year, providing more than 20 million jobs. Coffee is indigenous to Ethiopia and was most likely discovered as a food before it became a drink. The most popular legend of how coffee was discovered involves an Abyssinian goat herder named kaldi. Kaldi awoke one night to find his goats dancing around a tree speckled with red cherries. When he tasted one of the cherries, he too started dancing with the goats. As interesting as this story may be it is more likely that coffee was used as a food supplement by wandering Ethiopian tribes-men. The tribes-men are said to have squashed the coffee cherries and carried them on long journeys, eating them for nourishment as needed. Later, the coffee cherries were soaked in water, possibly to make wine, but some historians say it was not until 1000 AD, when the Arabs discovered how to boil, that coffee was serve hot. Coffee was also believed to have medicinal properties. Avicenna, an Islamic physician and philosopher of the eleventh century, said of coffee: â€Å"It fortifies the members, it cleans the skin and dries up the humilities that are under it, and gives an excellent smell to all the body† CHAPTER – 1 HISTORY OF COFFEE HISTORY OF COFFEE [pic] Palestinian women grinding coffee the old fashioned way, 1905 The history of coffee goes at least as far back as the fifteenth century, though coffees origins remain unclear. It had been believed that Ethiopian ancestors of todays Oromo people were the first to have discovered and recognized the energizing effect of the coffee bean plant. However, no direct evidence has been found indicating where in Africa coffee grew or who among the natives might have used it as a stimulant or even known about it, earlier than the 17th century. The story of Kaldi, the 9th-century Ethiopian goatherd who discovered coffee, did not appear in writing until 1671 and is probably apocryphal. From Ethiopia, coffee was said to have spread to Egypt and Yemen. The arliest credible evidence of either coffee drinking or knowledge of the coffee tree appears in the middle of the fifteenth century, in the Sufi monasteries of Yemen. It was here in Arabia that coffee beans were first roasted and brewed, in a similar way to how it is now prepared. By the 16th century, it had reached the rest of the Middle East, Persia, Turkey, and northern Africa. Coffee then spread to Italy, and to the rest of Europe, to Indonesia, and tothe Americas. Origins Etymology: The word coffee entered English in 1598 via Dutch koffie. This word was created via Turkish kahve, the Turkish pronunciation Arabic qahwa, a truncation of qahhwat al-bun or wine of the bean. One possible origin of the name is the Kingdom of Kaffa in Ethiopia, where the coffee plant originated; its name there is bunn or bunna. Legendary accounts. There are several legendary accounts of the origin of the drink itself. One account involves the Yemenite Sufi mystic Shaikh ash-Shadhili. When traveling in Ethiopia, the legend goes; he observed goats of unusual vitality, and, upon trying the berries that the goats had been eating, experienced the same vitality. A similar Legend of Dancing Goats attributes the discovery of coffee to an Ethiopian goatherder named Kaldi. The story of Kaldi did not appear in writing until 1671, and these stories are considered to be apocryphal. It used to be believed Ethiopian ancestors of todays Oromo tribe, were the first to have recognized the energizing effect of the native coffee plant. Studies of genetic diversity have been performed on Coffea arabica varieties, found to be of low diversity but which retained some residual heterozygosity from ancestral materials, and closely-related diploid species Coffea canephora and C. liberica; however, no direct evidence has ever been found indicating where in Africa coffee grew or who among the natives might have used it as a stimulant, or known about it there, earlier than the seventeenth century. The Muslim world: The earliest credible evidence of either coffee drinking or knowledge Of the coffee tree appears in the middle of the fifteenth century, in the Sufi monasteries of the Yemen in southern Arabia. It was in Yemen that coffee beans were first roasted and brewed as they are today. From Mocha, coffee spread to Egypt and North Africa, and by the 16th century, it had reached the rest of the Middle East, Persia and Turkey. From the Muslim world, coffee drinking spread to Italy, then to the rest of Europe, and coffee plants were transported by the Dutch to the East Indies and to the Americas. Syrian Bedouin from a beehive village in Aleppo, Syria, sipping the traditional murra (bitter) coffee, 1930. The earliest mention of coffee noted by the literary coffee merchant Philippe Sylvestre Dufour is a reference to bunchum in the works of the 10th century CE Persian physician Muhammad ibn Zakariya al-Razi, known as Rhazes in the West, but more definite information on the preparation of a beverage from the roasted coffee berries dates from several centuries later. The most important of the early writers on coffee was io-de-caprio, who in 1587 compiled a work tracing the history and legal controversies of coffee entitled Umdat al safwa fi hill al-qahwa. He reported that one Sheikh, Jamal-al-Din al-Dhabhani, mufti of Aden, was the first to adopt the use of coffee (circa 1454). Coffees usefulness in driving away sleep made it popular among Sufis. A translation traces the spread of coffee from Arabia Felix (the present day Yemen) northward to Mecca and Medina, and then to the larger cities of Cairo, Damascus, Baghdad, and Istanbul. Coffee beans were first exported from Ethiopia to Yemen. Yemeni traders brought coffee back to their homeland and began to cultivate the bean. The first coffeehouse opened in Istanbul in 1554. Coffee was at first not well received. In 1511, it was forbidden for its stimulating effect by conservative, orthodox imams at a theological court in Mecca. However, the popularity of the drink led these bans to be overturned in 1524 by an order of the Ottoman Turkish Sultan Selim I, with Grand Mufti Mehmet Ebussuud el-Imadi issuing a celebrated fatwa allowing the consumption of coffee. In Cairo, Egypt, a similar ban was instituted in 1532, and the coffeehouses and warehouses containing coffee beans were sacked. Similarly, coffee was banned by the Ethiopian Orthodox Church some time before the 12th century. However, in the second half of the 19th century, Ethiopian attitudes softened towards coffee drinking, and its consumption spread rapidly between 1880 and 1886; according to Richard Pankhurst, this was largely due to [Emperor] Menilek, who himself drank it, and to Abuna Matewos who did much to dispel the belief of the clergy that it was a Muslim drink. Europe [pic] Dutch engraving of Mocha in 1692 Coffee was noted in Ottoman Aleppo by the German physician botanist Leonhard Rauwolf, the first European to mention it, as chaube, in 1573; Rauwolf was closely followed by descriptions from other European travellers. Coffee was first imported to Italy from the Ottoman Empire. The vibrant trade between Venice and the Muslims in North Africa, Egypt, and the East brought a large variety of African goods, including coffee, to this leading European port. Venetian merchants introduced coffee-drinking to the wealthy in Venice, charging them heavily for the beverage. In this way, coffee was introduced to Europe. Coffee became more widely accepted after controversy over whether it was acceptable during Lent was settled in its favor by Pope Clement VIII in 1600, despite appeals to ban the drink. The first European coffee house (apart from those in the Ottoman Empire, mentioned above) was opened in Venice in 1645. England Largely through the efforts of the British East India Company and the Dutch East India Company, coffee became available in England no later than the 16th century according to Leonhard Rauwolfs 1583 account. The first coffeehouse in England was opened in St. Michaels Alley in Cornhill. The proprietor was Pasqua Rosee, the servant of Daniel Edwards, a trader in Turkish goods. Edwards imported the coffee and assisted Rosee in setting up the establishment. Oxfords Queens Lane Coffee House, established in 1654, is still in existence today. By 1675, there were more than 3,000 coffeehouses throughout England. Popularity of coffeehouses spread rapidly in Europe, and later, America. The banning of women from coffeehouses was not universal, but does appear to have been common in Europe. In Germany women frequented them, but in England they were banned. Many believed coffee to have several medicinal properties in this period. For example, a 1661 tract entitled A character of coffee and coffee-houses, written by one M. P. , lists some of these perceived virtues: Not everyone was in favour of this new commodity, however. For example, the anonymous 1674 Womens Petition against Coffee declared: France Antoine Galland (1646-1715) in his aforementioned translation described the Muslim association with coffee, tea and chocolate: We are indebted to these great [Arab] physicians for introducing coffee to the modern world through their writings, as well as sugar, tea, and chocolate. Galland reported that he was informed by Mr. de la Croix, the interpreter of King Louis XIV of France, that coffee was brought to Paris by a certain Mr. Thevenot, who had travelled through the East. On his return to that city in 1657, Thevenot gave some of the beans to his friends, one of whom was de la Croix. However, the major spread of the popularity of this beverage in Paris was soon to come. In 1669, Soleiman Agha, Ambassador from Sultan Mehmed IV, arrived in Paris with his entourage bringing with him a large quantity of coffee beans. Not only did they provide their French and European guests with coffee to drink, but they also donated some beans to the royal court. Between July 1669 and May 1670, the Ambassador managed to firmly establish the custom of drinking coffee among Parisians. [pic]. Melange in Vienna Austria The first coffeehouse in Austria opened in Vienna in 1683 after the Battle of Vienna, by using supplies from the spoils obtained after defeating the Turks. The officer who received the coffee beans, Polish military officer of Ukrainian origin Jerzy Franciszek Kulczycki, opened the coffee house and helped popularize the custom of adding sugar and milk to the coffee. Until recently, this was celebrated in Viennese coffeehouses by hanging a picture of Kulczycki in the window. Melange is the typical Viennese coffee, which comes mixed with hot foamed milk and a glass of water. Netherlands The race among Europeans to make off with some live coffee trees or beans was eventually won by the Dutch in the late 17th century, when they allied with the natives of Kerala against the Portuguese and brought some live plants back from Malabar to Holland, where they were grown in greenhouses. The Dutch began growing coffee at their forts in Malabar, India, and in 1699 took some to Batavia in Java, in what is now Indonesia. Within a few years the Dutch colonies (Java in Asia, Surinam in Americas) had become the main suppliers of coffee to Europe. Americas. Gabriel de Clieu brought coffee seedlings to Martinique in the Caribbean circa 1720. Those sprouts flourished and 50 years later there were 18,680 coffee trees in Martinique enabling the spread of coffee cultivation to Haiti, Mexico and other islands of the Caribbean. Coffee also found its way to the island of Reunion in the Indian Ocean known as the Isle of Bourbon. The plant produced smaller beans and was deemed a different variety of Arabica known as var. Bourbon. The Santos coffee of Brazil and the Oaxaca coffee of Mexico are the progeny of that Bourbon tree. Circa 1727, the Emperor of Brazil sent Francisco de Mello Palheta to French Guinea to obtain coffee seeds to become a part of the coffee market. Francisco initially had difficulty obtaining these seeds yet he captivated the French Governors wife and she in turn, sent him enough seeds and shoots which would commence the coffee industry of Brazil. In 1893, the coffee from Brazil was introduced into Kenya and Tanzania (Tanganyika), not far from its place of origin in Ethiopia, 600 years prior, ending its transcontinental journey. The French colonial plantations relied heavily on African slave laborers. Ancient Production of coffee The first step in Europeans wresting the means of production was effected by Nicolaes Witsen, the enterprising burgomaster of Amsterdam and member of the governing board of the Dutch East India Company who urged Joan van Hoorn, the Dutch governor at Batavia that some coffee plants be obtained at the export port of Mocha in Yemen, the source of Europes supply, and established in the Dutch East Indies; the project of raising many plants from the seeds of the first shipment met with such success that the Dutch East India Company was able to supply Europes demand with Java coffee by 1719. Encouraged by their success, they soon had coffee plantations in Ceylon Sumatra and other Sunda islands. Coffee trees were soon grown under glass at the Hortus Botanicus of Leiden, whence slips were generously extended to other botanical gardens. Dutch representatives at the negotiations that led to the Treaty of Utrecht presented their French counterparts with a coffee plant, which was grown on at the Jardin du Roi, predecessor of the Jardin des Plantes, in Paris. The introduction of coffee to the Americas was effected by Captain Gabriel des Clieux, who obtained cuttings from the reluctant botanist Antoine de Jussieu, who was loath to disfigure the kings coffee tree. Clieux, when water rations dwindled during a difficult voyage, shared his portion with his precious plants and protected them from a Dutchman, perhaps an agent of the Provinces jealous of the Batavian trade. Clieux nurtured the plants on his arrival in the West Indies, and established them in Guadeloupe and Saint- Domingue in addition to Martinique, where a blight had struck the cacao plantations, which were replaced by coffee plantations in a space of three years, is attributed to France through its colonization of many parts of the continent starting with the Martinique and the colonies of the West Indies where the first French coffee plantations were founded. The first coffee plantation in Brazil occurred in 1727 when Lt. Col. Francisco de Melo Palheta smuggled seeds, still essentially from the germ plasm originally taken from Yemen to Batavia, from French Guiana. By the 1800s, Brazils harvests would turn coffee from an elite indulgence to a drink for the masses. Brazil, which like most other countries cultivates coffee as a commercial commodity, relied heavily on slave labor from Africa for the viability of the plantations until the abolition of slavery in 1888. The success of coffee in 17th-century Europe was paralleled with the spread of the habit of tobacco smoking all over the continent during the course of the Thirty Years War (1618–48). For many decades in the 19th and early 20th centuries, Brazil was the biggest producer of coffee and a virtual monopolist in the trade. However, a policy of maintaining high prices soon opened opportunities to other nations, such as Colombia, Guatemala, Nicaragua, Indonesia and Vietnam, now second only to Brazil as the major coffee producer in the world. Large-scale production in Vietnam began following normalization of trade relations with the US in 1995. Nearly all of the coffee grown there is Robusta. Despite the origins of coffee cultivation in Ethiopia, that country produced only a small amount for export until the Twentieth Century, and much of that not from the south of the country but from the environs of Harar in the northeast. The Kingdom of Kaffa, home of the plant, was estimated to produce between 50,000 and 60,000 kilograms of coffee beans in the 1880s. Commercial production effectively began in 1907 with the founding of the inland port of Gambela, and greatly increased afterwards: 100,000 kilograms of coffee was exported from Gambela in 1908, while in 1927-8 over 4 million kilograms passed through that port. Coffee plantations were also developed in Arsi Province at the same time, and were eventually exported by means of the Addis Ababa Djibouti Railway. While only 245,000 kilograms were freighted by the Railway, this amount jumped to 2,240,000 kilograms by 1922, surpassed exports of Harari coffee by 1925, and reached 9,260,000 kilograms in 1936. Australia is a minor coffee producer, with little product for export, but its coffee history goes back to 1880 when the first of 500  acres (2. 0  km2) began to be developed in an area between northern New South Wales and Cooktown. Today there are several producers of Arabica coffee in Australia that use a mechanical harvesting system invented in 1981. *** CHAPTER – 2 INSIGHT ON COFFEE INSIGHT ON COFFEE |Coffee | |[pic] | |Roasted coffee beans | |Type |Hot or cold beverage | |Country of origin |Ethiopia, and  Yemen | |Introduced |Approx. 15th century AD (beverage) | |Color |Brown | Coffee  is a  brewed  drink  prepared from roasted  seeds, commonly called  coffee beans, of the  coffee plant. They are seeds of coffee cherries that grow on trees in over 70 countries. Green coffee, for example, is one of the most traded agricultural commodities in the world. Due to its  caffeine  content, coffee can have a stimulating effect in humans. Today, coffee is one of the most popular beverages worldwide. It is thought that the energizing effect of the coffee bean plant was first recognized in  Yemen  in Arabia and the north east of  Ethiopia, and the cultivation of coffee first expanded in the Arab  world. The earliest credible evidence of coffee drinking appears in the middle of the fifteenth century, in the  Sufi  monasteries of the  Yemen  in southern  Arabia. From the  Muslim world, coffee spread to Italy, then to the rest of Europe, to  Indonesia, and to the Americas. Coffee has played an important role in many societies throughout history. In Africa and Yemen, it was used in religious ceremonies. As a result, the  Ethiopian Church  banned its secular consumption until the reign of EmperorMenelik II of Ethiopia. It was banned in  Ottoman  Turkey during the 17th century for political reasons,  and was associated with rebellious political activities in Europe. Coffee berries, which contain the coffee bean, are produced by several species of small  evergreen  bush of the  genus  Coffea. The two most commonly grown are  Coffea canephora  (also known as  Coffea robusta) and  Coffea arabica. Both are cultivated primarily in  LatinAmerica,Southeast Asia, and Africa. Once ripe, coffee berries are picked, processed, and dried. The seeds are then roasted to varying degrees, depending on the desired flavor. They are then ground and brewed to create coffee. Coffee can be prepared and presented in a variety of ways. An important export commodity, coffee was the top agricultural export for 12 countries in 2004,  and in 2005, it was the worlds seventh-largest legal agricultural export by value. Some controversy is associated with coffee cultivation and its impact on the environment. Many studies have examined the relationship between coffee consumption and certain medical conditions; whether the overall effects of coffee are ultimately positive or negative has been widely disputed. However, the method of brewing coffee has been found to be important. Biology Several species of shrub of the genus  Coffea  produce the berries from which coffee is extracted. The two main cultivated species,  Coffea canephora(also known as  Coffea robusta) and  C. arabica, are native to subtropical Africa and southern Asia. Less popular species are  C. liberica,  excelsa,stenophylla,  mauritiana, and  racemosa. They are classified in the large family  Rubiaceae. They are  evergreen  shrubs or small trees that may grow 5  m (15  ft) tall when unpruned. The leaves are dark green and glossy, usually 10–15  cm (4-6  in) long and 6  cm (2. 4  in) wide. Clusters of fragrant white flowers bloom simultaneously and are followed by oval berries of about 1. 5  cm. Green when immature, they ripen to yellow, then crimson, before turning black on drying. Each berry usually contains two seeds, but 5–10% of the berries  have only one; these are called  peaberries. Berries ripen in seven to nine months. Cultivation Coffee is usually propagated by seeds. The traditional method of planting coffee is to put 20  seeds in each hole at the beginning of the  rainy season; half are eliminated naturally. A more effective method of growing coffee, used in Brazil, is to raise seedlings in nurseries, which are then planted outside at 6 to 12  months. Coffee is often intercropped with food crops, such as corn, beans, or rice, during the first few years of cultivation. [pic] Map showing areas of coffee cultivation: r:Coffea canephora m:Coffea canephora  and  Coffea arabica a:Coffea arabica Of the two main species grown, arabica coffee (from  C. arabica) is considered more suitable for drinking than robusta coffee (from  C. canephora); robusta tends to be bitter and have less flavor but better body than arabica. For these reasons, about three-quarters of coffee cultivated worldwide is  C. arabica. However,  C. canephora  is less susceptible to disease than  C. arabica  and can be cultivated in  environments  where  C. arabica  will not thrive. Robusta coffee also contains about 40–50% more caffeine than arabica. For this reason, it is used as an inexpensive substitute for arabica in many commercial coffee blends. Good quality robustas are used in some  espresso  blends to provide a better foam head, a full-bodied result, and to lower the ingredient cost. The species  Coffea liberica  and  Coffea esliaca  are believed to be indigenous to  Liberia  and southern  Sudan, respectively. Most arabica coffee beans originate from either  Latin America,  eastern Africa, Arabia, or Asia. Robusta coffee beans are grown in western and  central Africa, throughout  southeast Asia, and to some extent in Brazil. Beans from different countries or regions can usually be distinguished by differences in flavor, aroma,  body, or acidity. These taste characteristics are dependent not only on the coffees growing region, but also on genetic subspecies (varietals) and processing. Varietals are generally known by the region in which they are grown, such as  Colombian,  Java  or  Kona. Production Brazil  is the world leader in production of green coffee, followed by  Vietnam  and  Colombia  the last of which produces a much  softer coffee. |Top twenty green coffee producers  Ã¢â‚¬â€ Tonnes (2007) and Bags thousands (2007) | |Country |Tonnes |Bags thousands | |[pic]  Brazil |2,249,010 |36,070 | |[pic]  Vietnam |961,200 |16,467 | |[pic]  Colombia |697,377 |12,515 | |[pic]  Indonesia |676,475 |7,751 | |[pic]  Ethiopia |325,800 |4,906 | |[pic]  India |288,000 |4,148 | |[pic]  Mexico |268,565 |4,150 | |[pic]  Guatemala |252,000 |4,100 | |[pic]  Peru |225,992 |2,953 | |[pic]  Honduras |217,951 |3,842 | |[pic]  Cote dIvoire |170,849 |2,150 | |[pic]  Uganda |168,000 |3,250 | |[pic]  Costa Rica |124,055 |1,791 | |[pic]  Philippines |97,877 |431 | |[pic]  El. Salvador |95,456 |1,626 | |[pic]  Nicaragua |90,909 |1,700 | |[pic]  Papua New Guinea |75,400 |968 | |[pic]  Venezuela |70,311 |897 | |[pic]  Madagascar[note 2] |62,000 |604 | |[pic]  Thailand |55,660 |653 | |  Ã‚  World |7,742,675 |117,319 | Ecological effects [pic] [pic] A flowering  Coffea arabica  tree in a Brazilian plantation Originally, coffee farming was done in the  shade  of trees, which provided a habitat for many animals and insects. This method is commonly referred to as the traditional shaded method, or shade-grown. Many farmers switched their production method to sun cultivation, in which coffee is grown in rows under full sun with little or no forest canopy. This causes berries to ripen more rapidly and bushes to produce higher yields, but requires the clearing of trees and increased use of fertilizer and pesticides, which damage the environment and cause health problems. When compared to the sun cultivation method, traditional coffee production causes berries to ripen more slowly and produce lower yields, but the quality of the coffee is allegedly superior. In addition, the traditional shaded method is environmentally friendly and provides living space for many wildlife species. Opponents of sun cultivation say environmental problems such as deforestation, pesticide pollution,  habitat destruction, and soil and water degradation are the side effects of these practices. The  American Birding Association,  Smithsonian Migratory Bird- Center, Rainforest Alliance, and the  Arbor Day Foundation  have led a campaign for shade-grown and  organic coffees, which it says are sustainably harvested. However, while certain types of shaded coffee cultivation systems show greater biodiversity than full-sun systems, they still compare poorly to native forest in terms of habitat value. Another issue concerning coffee is its  use of water. According to  New Scientist, if using industrial farming practices, it takes about 140 liters of water to grow the coffee beans needed to produce one cup of coffee, and the coffee is often grown in countries where there is a water shortage, such as  Ethiopia. By using   sustainable agriculture  methods, the amount of water usagecan be dramatically reduced, while retaining comparable yields. Coffee grounds may be used for  composting  or as a  mulch. They are especially appreciated by  worms  and  acid-loving plants  such as  blueberries. *** CHAPTER – 3 TYPES OF COFFEE TYPES OF COFFEE Coffea Arabica | | |Scientific classification | |Kingdom: |Plantae | |(unranked): |Angiosperms | |(unranked): |Eudicots | |(unranked): |Asterids | |Order: |Gentianales | |Family: |Rubiaceae | |Genus: |Coffea | |Species: |C. arabica | |Binomial name | |Coffea arabica |. Coffea arabica is a species of coffee originally indigenous to the mountains of Yemen in the Arabian Peninsula, hence its name, and also from the southwestern highlands of Ethiopia and southeastern Sudan. It is also known as the coffee shrub of Arabia, mountain coffee or arabica coffee. Coffea arabica is believed to be the first species of coffee to be cultivated, being grown in southwest Arabia for well over 1,000 years. It is considered to produce better coffee than the other major commercially grown coffee species, Coffea canephora (robusta). Arabica contains less caffeine than any other commercially cultivated species of coffee. Wild plants grow to between 9 and 12 m tall, and have an open branching system; the leaves are opposite, simple elliptic-ovate to oblong, 6–12  cm long and 4–8  cm broad, glossy dark green. The flowers are white, 10–15  mm in diameter and grow in axillary clusters. The fruit is a drupe (though commonly called a berry) 10–15  mm in diameter, maturing bright red to purple and typically contain two seeds (the coffee bean). | | Distribution and habitat Originally found in the southwestern highlands of Ethiopia, Coffea arabica is now rare there in its native state, and many populations appear to be mixed native and planted trees. It is common there as an understorey shrub. It has also been recovered from the Boma Plateau in southeastern Sudan. Coffea arabica is also found on Mt Marsabit in northern Kenya, but it is unclear whether this is a truly native or naturalised occurrence. Yemen is also believed to have native Coffea arabica growing in fields. Cultivation Coffea arabica takes about seven years to mature fully and does best with 1- 1. 5 meters (about 40-59  inches) of rain, evenly distributed throughout the year. It is usually cultivated between 1,300 and 1,500 m altitude, but there are plantations as low as sea level and as high as 2,800 m. The plant can tolerate low temperatures, but not frost, and it does best when the temperature hovers around 20  °C (68  °F). Commercial cultivars mostly only grow to about 5 m, and are frequently trimmed as low as 2 m to facilitate harvesting. Unlike Coffea canephora, Coffea arabica prefers to be grown in light shade. Two to four years after planting Coffea arabica produces small, white and highly fragrant flowers. The sweet fragrance resembles the sweet smell of jasmine flowers. When flowers open on sunny days, this results in the greatest numbers of berries. This can be a curse however as coffee plants tend to produce too many berries; this can lead to an inferior harvest and even damage yield in the following years as the plant will favor the ripening of berries to the detriment of its own health. On well kept plantations this is prevented by pruning the tree. The flowers themselves only last a few days leaving behind only the thick dark green leaves. The berries then begin to appear. These are as dark green as the foliage, until they begin to ripen, at first to yellow and then light red and finally darkening to a glossy deep red. At this point they are called cherries and are ready for picking. The berries are oblong and about 1  cm long. Inferior coffee results from picking them too early or too late, so many are picked by hand to be able to better select them, as they do not all ripen at the same time. They are sometimes shaken off the tree onto mats, which means that ripe and unripe berries are collected together. The trees are difficult to cultivate and each tree can produce anywhere from 0. 5–5  kg of dried beans, depending on the trees individual character and the climate that season. The real prize of this cash crop are the beans inside. Each berry holds two locules containing the beans. The coffee beans are actually two seeds within the fruit; there is sometimes a third seed or one seed, a peaberry in the fruits at tips of the branches. These seeds are covered in two membranes, the outer one is called the parchment and the inner one is called the silver skin. In perfect conditions, like those of Java, trees are planted at all times of the year and are harvested year round. In less ideal conditions, like those in parts of Brazil, the trees have a season and are harvested only in winter. The plants are vulnerable to damage in poor growing conditions and are also more vulnerable to pests than the Robusta plant. Gourmet coffees are almost exclusively high-quality mild varieties of coffea arabica, like Colombian coffee. Arabica coffee production in Indonesia began in 1699. Indonesian coffees, such as Sumatran and Java, are known for heavy body and low acidity. This makes them ideal for blending with the higher acidity coffees from Central America and East Africa. Coffea canephora | | |Scientific classification | |Kingdom: |Plantae | |(unranked): |Angiosperms | |(unranked): |Eudicots | |(unranked): |Asterids | |Order: |Gentianales | |Family: |Rubiaceae | |Genus: |Coffea | |Species: |C. canephora | |Binomial name | |Coffea canephora | Coffea canephora (Robusta Coffee Coffea robusta) is a species of coffee which has its origins in central and western subsaharan Africa. It is grown mostly in Africa and Brazil, where it is often called Conillon. It is also grown in Southeast Asia where French colonists introduced it in the late 19th century. In recent years Vietnam, which only produces robusta, has surpassed Brazil, India, and Indonesia to become the worlds single largest exporter. Approximately one third of the coffee produced in the world is robusta. Canephora is easier to care for than the other major species of coffee, Coffea arabica, and, because of this, is cheaper to produce. Since arabica beans are often considered superior, robusta is usually limited to lower grade coffee blends as filler. It is however often included in instant coffee, and in espresso blends to promote the formation of crema. Robusta has about twice as much caffeine as arabica. Description Coffea canephora grew.