Red Bull Case Analysis

Red Bull Case Analysis Purpose: to provide the chain of strategies Red Bull used to develop their brand equity and global market dominance in the energy beverage industry. Target Market: Red Bull does not target to a specific demographic or psychographic. Its strategy is to reach to a relatively broad consumer base. The target is anyone who need energy boost to combat their mental and/or physical fatigue. Red Bull knows their consumer base mostly involves students, drivers, clubbers, business professionals and athletes. Marketing Mix:Product: Red Bull offers a premium energy drink supplement that provides essential ingredients to rejuvenate the mind and body. Red Bull consists of energy-enhancing ingredients: caffeine, taurine, and glucuronolactone packed in a 250 millilitre can. Price: Red Bull prices one 250 millilitre can at a premium price between $1. 99 and $3. 00 which makes it significantly more expensive than traditional soft drinks. Their pricing strategy is to charge at lea st 10 % greater than the most expensive competitor reinforce their position.Promotion: Red Bull relies on one of the most effective forms of marketing, â€Å"word-of-mouth†. Along with the word-of-mouth strategy they also do event sponsorships, sampling programs, point-of-purchase marketing, athletic endorsements, and electronic media buys. Red Bull Mystic: When the product first lunch Red Bull created a buzz by putting empty cans in bars and night club to make the consumers believe that it was a popular product. As a result the consumers started talking about and want to try it out of curiosity.Event Sponsorships: Event sponsorships greatly increase the recognition of the brand. Red Bull currently has ninety individual events that have been created from the ground up. Most of the events are non-mainstream sports events that are typically extreme sports. Red Bull invests in doing their own events because they control everything and strive to make the event very unique, so the y can get into the media. Athlete Endorsements: The athletes Red Bull endorses are carefully select for their individual qualities that fit with the brands personality.Red Bull would simply make the drink available to the athletes during their competition where they would sample it and then potentially become frequent users. When a particular athlete that fit with the brand would become one of their frequent users, Red Bull would then make a sponsorship deal with that athlete. Sampling: Sampling is the most essential aspect of Red Bull’s marketing efforts. Red Bull offered samples specifically to consumers at music concerts, sport events, highway rest areas, and higher education campuses.Red Bull assembles a team of college students to go out and encourage other to sample the drink, conduct research on drinking trends, implement on-campus promotions, collect customer feedback and educate the consumers about the product. Point-of-Purchase: Red Bull has its own miniature glass refrigerator with the brand logo on it. Red Bull also made sure that the refrigerator was place in a prominent location in the environment. Unfortunately some places do not allow Red Bull to use their own miniature refrigerator, in this case Red Bull in the existing store refrigerator.Traditional Advertisement: Red Bull uses television ads, print, and radio advertisements. The television ads are a short animated commercial that clearly communicates the product benefits through intelligent dialogue and scenarios. The message in the commercials is â€Å"Red Bull gives you wings† and this message correlates directly to the brands positions. The commercials fitted well with the global market and reached a wide target audience because of the usages of well-known animated characters and simple universal concepts. Place: Red Bull is sold in the global market, but there are a few countries hat prohibit the sale of Red Bull because of specific ingredients and incidence in which Red Bu ll may have causes health complications. Those countries are France, Norway, and Denmark. In the countries that do allow the sale of Red Bull, it can be found in bars, nightclubs, convenience stores, school campuses, gas stations, and other places where the company believes their target will need an energy boost. Brand Strategy: The brand strives to continue to be the leader in energy drinks and upheld brand position and appeal.It is ideal to the company to keep the buzz of Red Bull prevalent in the mind of the consumers as well as innovate and retain current users. Brand Position: Red Bull is positioned as a premium energy-boosting beverage that revitalizes the body and mind. Points of Parity: In the saturated market of energy drinks they all claim to boost energy and performance. The ingredients in the majority of the drinks are similar containing b-vitamins and significant amounts of caffeine. Similar brands are: Lucozade, Monster, Rockstar, and Full ThrottlePoints of Differences : Red Bull technically exploited the energy boosting drink market. There large focus on word-of-mouth and large network of unique sponsored events keeps their brand fresh in the consumers mind. The are considered a premium drink with premium benefits because of the pricing and packaging appeal. Unlike their closest competitor the can focus exclusively on the Red Bull brand and continue to market towards local target markets instead of marketing to the masses as a whole. Core Brand Associations: Red Bull is associated with their extreme sports and athletic endorsement.The events are unique and gather big media attention due to the uniqueness and hype. When a spectator is watching a Red Bull event they can expect to see something exciting because of previous Red Bull phenomenon. Red Bull has its own soccer team, Formula One Racing team and NASCAR team. If the sport is not a typical mainstream sport, Red Bull logo will probably be found at the sporting event. Other associations are: * Music Concerts * Festivals * Nightclubs * Alcoholic Beverages Brand ElementsLogo and Slogan: The logo is two red bulls facing toward each other as if they are going to collide in front of a yellow sun. The logo appears to be oriental theme and its significance probably is from the Thai energy drink, â€Å"Krating Daeng† that inspired Dietrich Mateschitz. The slogan is â€Å"Red Bull give you Wiiings†. Packaging: Red Bull uses a silver and blue 250 millilitre can with the Red Bull logo. Under the logo are the words â€Å"Energy Drink† and the phrase â€Å"Revitalizes body and mind† both, which effectively communicate the beneficial properties of the drink to the consumer.The silver and blue pattern on the can is really effective in the brands salience and the cans are mostly sold in singles, but are offered in convenient packs priced the same amount as if each can is sold separately. Brand Mantra: Revitalize body and mind Four Steps of Brand Building Brand Salience: The aluminium and blue can pair with the logo â€Å"two red bull and sun† is highly associate with the brand. Brand Performance: Red Bull small premium can is thought of as being very effective and provides an energy boost for anyone who needs revitalization.Brand Judgement: Viewed a being performance enhancing fuel and cool. This is mainly due to brand association with extreme sports and events. Red Bull is judged one of the strongest because it comes in a one 250-millilitre can Brand Feelings: Extreme, potent, excitement, revitalizing, cool, extravagant, premium Brand Resonance: Red Bull has high brand loyalty in the global market place. Consumers have high attachment and need for the product. The communities of extreme performers and extreme sports athletes, college students, and partiers have high loyalty.Red Bull has high engagement with consumers, often offering deals and promotions for their events and regularly will visit a college campus or event to handou t free Red Bull. It is even a popular alcohol mixer. Distribution: To ensure the quality and consistency of the point of purchase display, Red Bull employs their own delivery drivers to delivery the beverage and restocks the refrigerators. The product can be found at most convenience stores, trendy locations, and nightclubs. Brand Image: Health concerns have been an issue for Red Bull since its inception.There was one incident in particular with, Ross Cooney, a basketball player from Ireland drunk four cans of Red Bull before playing a game and died of Sudden Arrhythmia Death Syndrome. There was never a firm conclusion that his cause of death was because of the four cans of Red Bull, but recently a consumer did die because of drinking too many Monster energy drinks. Monster is Red Bull’s leading competitor and this incident can negatively affect Red Bull even though it was a competitor’s product that cause. The negative results that could affect Red Bull from Monsters case are: * Consumers might become wary of energy drink Implementation of stiffer food regulations in the US market and global markets * Brand equity could be compromised due to consumers perception * Make formula less potent * Change packaging and include a warning for excessive drinking * The positive effects from Monsters incident are: * Red Bull may gain the market share Monster could possibly lose * Consumers may trust Red Bull more since it has never been linked to the actual cause of death. * Increase in their brand equity Recommendations/Conclusion: I recommend that Red Bull should continue to innovate and expand.The all-natural and organic industry is increasing and people are looking for energy products that are natural. There are a few energy beverage companies that are in that market already and Red Bull could enter it with no problem due to their brand equity. With that said, I recommend a few brand extensions. Other companies have different types such as a coffee versi on or a weaker version. The different brand extensions would satisfy needs in other submarkets that exist Red Bull just has to make sure they do not confuse the consumers and target the products strategically.Red Bull has already began releasing and testing a small variety of flavours and I believe this is a good idea because I know from reviews and first hand experience that some people do not like the smell or flavour of the original beverage. I believe Red Bull’s advertising does a good job appealing to all the consumers’ lifestyle stages and appeals to the broad target. I believe Red Bull is doing a good job innovating their event marketing upping the ante every time. For example the Red Bull near space jump.

Masculinity portrayed in “The Great Gatsby” Essay

Masculinity is a well known stereotype that often defines men as being tough, strong, and having no emotions. In most cases, their work tends to identify their level of masculinity. In The Grapes of Wrath by John Steinbeck, The Great Gatsby by Scott F. Fitzgerald, and The Glass Menagerie by Tennessee Williams, the male characters create their identities through their abilities to provide for their families. In these three texts, the males portray their masculinity by their roles as head of the family and their work and wealth. As a tradition in many cultures, the males assume the position as head of the family. In most cases, their family responsibilities and obligations establish their masculinity. Pa was the head of the family now (Steinbeck 139). In The Grapes of Wrath by John Steinbeck, Pa became the leader of the family after Grandpa died. Pa took over Grandpas role in the family and was responsible for the whole family in result. Traditionally, the position of the family leader is passed down to the eldest male. Similar to Pa in The Grapes of Wrath, Tom in The Glass Menagerie by Tennessee Williams, demonstrated his masculinity as the head of the household after his father had abandoned the family. I mean that as soon as Laura has got somebody to take care of her, married, a home of her own, independent — Why, then youll be free to go wherever you please, on land, on sea, whichever way the wind blows you! (Williams 35). Tom is obligated to support his family, especially his crippled sister Laura, until she finds a husband. Because Tom was the only male in his sister and mothers lives, he had to assume household responsibilities, as most men did for their families. Ultimately, Pa and Tom expose their masculinity by obtaining the duties of being in charge of their families. Customarily, a mans masculinity is defined through his wealth, occupation, or means of work. Throughout society, it is a stereotype that if a man makes a sufficient amount of money and has a job that easily supports himself and or his family, he is masculine. If he has a small, not so important, low earning job, then he is typically considered less masculine. In The Grapes of Wrath, Pa struggles to prove his masculinity. Well what the hell am I gonna do? Were out of money. One of my boys got a short job but that wont  feed us. (Steinbeck 374). Pa gets frustrated because hes helpless when it comes to work. He does not feel like he is supporting his family, therefore he feels like he is masculinity is diminishing. Different from Pa, Tom and Gatsby in The Great Gatsby are able to successfully display their masculinity by the amount of wealth that they have. Tom Buchanans arrogance and pride that he shows toward his wealth seems to prove his masculinity to his mistress Myrtle. They are both hung up on his money and Tom likes to flaunt it. Because Tom is wealthy, Myrtle sees him as the perfect gentleman. Two shining arrogant eyes had established dominance over his face (Fitzgerald 7). Tom is described as being clearly aware of his power and manliness. Like Tom, Jay Gatsby also has a large fortune. The fact that Mr. Gatsbys money is entirely earned from work, unlike Tom whose money is passed down through the family, also displays masculinity. His gorgeous home and lavish parties provided by his abundant wealth makes the community realize how much he earns, which otherwise depicts his masculinity. Masculinity is identified in The Grapes of Wrath by John Steinbeck, The Great Gatsby by Scott F. Fitzgerald, and The Glass Menagerie by Tennessee Williams, through the male characters abilities to support their families, which also touches upon their jobs and wealth. In modern society, while masculinity still seems to be based on a mans ability to provide for his family, the type of job he has, or the money that he earns, it plays a crucial and distinctive role in the way that people view men. Overall, it classifies their level of manliness. Furthermore, men tend to strive to gain these qualities that illustrate masculinity, as it is portrayed in these three novels.

International services marketing Essay Example | Topics and Well Written Essays - 500 words

International services marketing - Essay Example Marketing services is different from marketing goods. As opposed to good, services are produced and consumed at the same time. This is because services have different characteristics from those associated with goods. Such characteristics include intangibility, inseparability, variability, and their lack of perishability. Therefore, the services are measured in terms of quality. Another difference between goods and services is the inseparability of services. This is because the services production cannot be alienated from the consumption process (Ahmadzadeh, et al., 2012). Services also tend to vary in aspects such as quality. These characteristics make marketing of services different from that of products. Therefore, success in marketing of services depends on relationship building. Service-based business rely on building trust, deliverability, the wants and needs, and the ability to convince customers that you are capable of driveling a service in time. However, marketing products i s different and mainly depends on factors such as price of the product and the quality of the product (Rao 2011). The marketing and trading of services across nations has been growing rapidly over the recent past. Export of services plays a critical role in trade balance, expansion of employment opportunities, and enhancing economic growth. However, the service economy is affected by factors such as export service capacity, limitation of resources required in service delivery. Such resource may include the human as well as financial capacity. Other factors affecting the service economy include behavioral and operative barriers. Moreover, language barrier affects intercultural service delivery due to poor interpretation of information (Fisk 1999). Export of services raises several issues. These issues include the privacy of the service consumers, the national security of the countries to which the services

Latest innovations Research Paper Example | Topics and Well Written Essays - 1250 words

Latest innovations - Research Paper Example Innovation is critical since it not only raises market attention but also helps in positioning and differentiation (OFallon, & Rutherford 2011). Innovation involves a new way of doing things using unique combination of production or delivery factors. Innovation is applicable in different ways like generation of a new product or improving an old product; the hotels can also develop new sales and supply markets or even restructure the whole company. With an aim of insuring sustainable development, the hotel industry is now adopting the new trend of eco-tourism. With years to come, all hotels will have legal obligation to ensure that all their practices aim at environmental conservation (Swami, & Sharma 2011). Hotels adopting eco-friendly innovations are beginning to have competitive advantage over other companies that do not protect the environment. Green hotels are growing daily hence becoming the core of the hospitality industry. Customers to this industry are also becoming eco sensitive hence are considering green hotel to meet their accommodation needs. The Eco label is becoming a standard for choice by the tourists and other hotel guests. Eco label hotels add environment friendly technological practices to their good menus besides providing a wide range of resources (Swami, & Sharma 2011). In the hotel environment, various activities such as constructions, landscaping, use of water and energy, cooking and disposal of waste s affect the environment if not contained. The size of hotel families in relation to the rate of utilization also influences environmental conditions (Swami, & Sharma 2011). There are varieties of forces that are pushing US hotels to be more environmental conscious. Some studies indicate that 90% of the current hotels guest aim at getting accommodations form Eco labelled hotels (Swami, & Sharma 2011). This causes pressure on hotels to adopt environment friendly techniques to maintain

Crouching Tiger, Hidden Dragon, Ang Lee (2000) Essay

Crouching Tiger, Hidden Dragon, Ang Lee (2000) - Essay Example The movie is based on the novel written by Wang Du Lu and shows the story happening in 19th century. Since the hero and story of the movie represent a supernatural theme, the movie defies the ancient Chinese cultural representation. (Thesis). The lead role as a hero is played by Hong Kong legend Chow- Yun- Fat who has the name Li Mu bai in the movie . Li is a magnificent warrior and is renowned throughout QING China and leads an adventurous life. His precious asset is his mighty sword which is both powerful and ancient and is being gifted to his very close friend. The movie surrounds the theft of the sword and Li’s determination in finding the stolen property and returning it to the rightful owner. In this movie, the primary importance is for Yun- Fat as the whole movie circle around him and his sword. In the movie Li also accompanied by his lady love Yu – shu – Lien which is played by Michelle Yeoh. Role of hero in the movie The hero Li is the pivotal character in the movie and he is the action performer which is the central theme of the movie .The hero Li throughout the entire movie has the role of chasing the stolen sword which he presented to his treasured friend as a token of love. Here the hero has to represents a classical righteous Chinese warrior who is after establishing truth and morality in his life. Li‘s duty as a hero is to represent in the movie as a noble warrior who seeks after truth. His role is to depict as a sacrificial person who fights with enemy to get back the precious gift which he presented to his best friend. The role of Li is to portray as a charismatic hero who has the miraculous power of battling ancient Chinese martial art. The role of Li in the movie is of a mighty warrior and a of a romantic hero who fights for righteousness, integrity and love. In the movie, as Li is battling against a female enemy, he also is bound as a hero to showcase masculine prowess in abundant. In the movie, Li is also compared with a tiger for his ferocious martial art skill, accuracy and defending power. In reality, the main role of hero Li is to portray a fantasy martial art expert who gives value to loyalty, honesty and truthfulness. The hero defying classical traditional representation The hero in the movie â€Å"Crouching tiger Hidden dragon† showcases one who has supernatural fighting tactics and martial art skill. This hero takes us to an ancient Chinese culture where people possess mysterious and mythical power in martial arts. The hero in this movie battles on every plane of earth like air, water and ground. This defies the very essence of ancient Chinese martial art concept. According to the age old Chinese martial art, there is no mythical or supernatural tactics or skills attached to it. The fight is conducted on land and by no means can be practiced on air and water surface. Unlike hero Li, the martial experts of traditional Chinese culture did not possess superficial power or attribu tes in context to martial art practice and the film depicted more western action elements. As per (Movie Muser) â€Å"Crouching Tiger was actually the first film he directed outside North America, and despite the wirework and plot, he brought a relatively western perspective to the way it was filmed†

The Movements of Employees at Work Abstract Essay

The Movements of Employees at Work Abstract - Essay Example Employee monitoring can be defined as the act of surveillance and monitor employees’ actions during stipulated working hours by use of employer equipment (Stanton & Stam, 2006). It entails the use of computers to record, evaluate and observe an employees’ use of a computer, plus communications like websites visited and emails sent or received besides telephone calls made. However, it is legal for employers to use computer programs to monitor employees (Duquenoy, Jones & Blundell, 2008). Employee surveillance has gained prominence as a prerequisite and in the same breath a contentious issue due to the complexity and prevalent use of technology in the workplace. Employers are worried about employees’ proper behavior and conformity to work-related regulations. Hence some critics believe employee monitoring is an inalienable responsibility. To others, it is an invasion of privacy. Managers employ different ways of monitoring employees’ internet use, emails, an d their location to capitalize on employee productivity, uphold the integrity of the firm and to defend the interest of clientele and workmates (Duquenoy, Jones & Blundell, 2008). When managers start to probe into employees’ private life, mistrust and acrimony are built between employees’ and managers. Many workers have lost their employment and a lot more companies have had to face lawsuits filed against them because people believe that the use of internal company communications should remain confidential (Bassick, 2007). Managers and owners of private firms have had several reasons to scrutinize the activities of their employees. Some are driven by the displeasure when employees misuse company money and waste time to carry out non-work related tasks.  

Narrative Essay Example | Topics and Well Written Essays - 750 words - 4

Narrative - Essay Example After realization that the world of films is more appealing than I can imagine, I decided to keep the spirit lively by undertaking a Master’s degree in media, my major focus being on Radio and Television studies. When in the university, I got an inordinate chance to train in the first channel of Saudi Arabia, the fifth channel in Saudi Arabia and Institute of Hajj researchers as a photographer, all of which bolstered my understanding of the world of media and communication. I firmly believe that a well-written script and characters are what makes a film, a major reason that made me feel frustrated while in the university when doing photography-related projects. The fundamental reason for the perceived discomfiture was the fact that after doing projects in photography, although they often turned out to be good, I felt left out after the image is completed, a reason that intensified my intention to be a screenwriter so that I can always be part of the complete works such as docu mentaries. When I watch an interesting film, I see myself in it and believe that the ideas on the screen are actually being personified for me, a rare thing that has been developing in me lately. I immediately develop a critical critic of the masterpiece, a factor that has further sharpened my writing skills. However, being in the university was an eye-opener for me. I enjoyed every moment in school primarily because of the many activities that I found myself participating in and the large audience that resoundingly required my presence in various programs, both educational and leisurely. While still working hard on coursework, where I eventually managed a GPA 3.11/4, I could still manage to schedule some time for talk shows, news programs, documentaries, and advertisement. I used my verse skills in media and television presentation to influence and appeal to the audience. The college students always

Huichol Indians Term Paper Example | Topics and Well Written Essays - 2250 words

Huichol Indians - Term Paper Example When the spaniards invaded this place, the Huichols took refuge in Sierra. While some scholars are of the view that Huichols have aboded this place ever since the beginning. The Huichols primarily had five tribes having diverse cultures CITATION Lat \l 1033 . B.Hearths and Diffusions After the invasion of spanish soliders which made Huichol indians to further move into the depths of the mountains, the â€Å"Franciscan missionaries† came with their agenda of converting the indians to christianity. For this sole purpose they raised â€Å"four churches†. The motive of these missionaries was lost in vain as the Huichol indians remained true to their ancestrol religion and the churches built are in ruins. Although it is believed that Huichol indians were divided into five tribes, yet the recent studies tell of only three tribes namely the huautuari, the tuapuritari and the tateikitari. CITATION Lat \l 1033 II. Evaluation of Habitats. A. Physical Geography Huichol indians are among the primitive cultures and religion. They are settled in and around the states of Jalisco, Nayarit, Zacatecas and Durango in western central Mexico. They live in isolation of mountains of Sierra Madre Occidental. CITATION Lat \l 1033 The Huichol Homeland CITATION Lat \l 1033 B. ... Chapalagana bridge 1995 CITATION Lat \l 1033 C. Climate/Natural Hazards Due to the high altitudes, the climate Huichol indians experience is very dry and severe. The high altitude climate is quite cold specially in winters while the lower mesas has moderate tropical weather. The Huichols mostly remain in their ranchos built on a suitable elevation from the ground which keeps them safe from the extreme temperatures. One of the main problems the Huichols face is the shortage of water on high altitudes. In summers they move to their ranches built at a little higher elevation as the climate around the river gets very hot and humid. D. Flora and Fauna The plants found in the Huichol region are quite diverse.The most important among the flora of this region is the divine cactus. Its common names are â€Å"Peyote†, â€Å"Buttons† and â€Å"Mescalito†. This small spine-less, crown-shaped cactus grows under bushes and is of a gray-green color. It has hallucinogenic powers and belongs to the family of â€Å"cactaceae†. CITATION Lat \l 1033 CITATION Lat \l 1033 Another common plant of this area is Lavendar Pebbles or Graptopetalum amethystinum. This plant grows slowly but steadily. CITATION Lat \l 1033 The area is abundant in pine-oak forests. This region has a variety of plants both of mountaineous regions as well as deserts. In the lower parts the subtropical genres include Acacia, Ficus, Agave and Bursera along with many such kinds. CITATION Lat \l 1033 The fauna of these regions include the various wildlife species including jaguar, pumas, white-taled deers, white boars, skunks, iguanas and rabbits. Yellow winged Cacique is also a native bird of this area along with Black-Throated Magpie jay. CITATION Lat \l 1033 III. Population Characteristics A.

Terrorist Strategies Research Paper Example | Topics and Well Written Essays - 4250 words

Terrorist Strategies - Research Paper Example In some parts of the world, the organized terrorist organizations have formed government like structures of running these countries and this has contributed to increase in such extremist groupings. To achieve their objective and increase terror in people, terrorist adopt different strategies and approaches which have been blamed for causing misery, deaths and destruction of property. Of all these strategies, the use of indiscriminative violence is common and this has been used in the US soil in a number of instances. This paper will evaluate the strategies that terrorist have employed in different parts of the world and more specifically in the united states and countries bordering it. different strategies including the use of violence, threats and intimidation, kidnapping and the internet will be analyzed to highlight the impacts of these strategies in assisting terrorists achieve their goals. An evaluation and analysis of the strategies used by terrorists to achieve their objective is essential in the development of approaches of mitigating the rise of terrorist groups and activities across the world. The United States government has highlighted a number of strategies that have been used by terrorists in the country and in other parts of the globe. The threat of terrorism in different parts of the world has risen to a level that has affected the peaceful existence of citizens across the world due to the approaches that these terrorists have adopted. In the United States, terrorism is considered as number one threat to the domestic and international security and this explains the reason why the government has been instrumental in the development of anti-terrorism approaches. The rise in terrorism in different parts of the globe has been attributed to the turbulent political situations in a number of Arab and former soviet

Inventory System Essay Example for Free

Inventory System Essay 1.0 Background of the study Computer nowadays is a basic need for businesses or companies. It helps a lot in such a way that it makes work more progressive and productive. It is an important thing that a company that manipulating data. Having computer programs may help a company grow bigger and be competitive in the flow of business world. It helps a lot because almost all the companies nowadays uses computer literate and very competitive in many aspects. Whatever kind of business you manage, you’re required by law to keep financial records relating to it. Bryan’s School Supplies and Accessories have to branches, all branches is using a manual inventory system. Each branch has its own inventory system and records transactions a day. The owner comes to visit in every branch to check the inventory and sales of the business weekly. It takes long time for them to record and file. All their transactions and they find difficulties and finding and searching their record in the past year or months. When recording their daily sales and inventory they should work together or their lot of people working in order to finish the job on time. The records of two branches are separated with each other. The owner found difficulty on checking records and sales of his business because the two branches are located in different place so he has to travel in order to check his business. The owner is looking for the most convenient way where the owner can save his money time and effort when checking the stocks inventory and sales of his business. A system that can merge all the records of their inventory and sales so that the owner don’t have to visit every branch of his business. 1.1 OBJECTIVES OF THE STUDY The main objectives of the study are to create an inventory system that could help the company increase their sales. Project aims to develop a web where the stock and sales record of company is stored. This system will help the  company to record and view all the record easy and fast, and also for the owner to view sales and inventory of his/her business even without visiting to it. The records of stocks of all branches are stored in the web. Specifically, this study aims to: 1. Provide an fast and easy to use inventory system for Bryan’s School Supplies and Accessories 2. Replace manual inventory with automated online inventory 3. Develop a system to help Bryan’s School Supplies and Accessories with their problem in terms of their stock records and sales inventory 4. Create a website where they can save and view their stock inventory and daily sales 5. Create a system that could help their business be more productive 6. Create a report about the daily stock records through the use of internet 7. Create a secure inventory system in web 1.2 SIGNIFICANCE OF THE STUDY This research would highly propulsive and could provide the community a solution for their problem regarding the said topic. The findings of this piece of research may provide an important informational base for the improvement of the business industries. The result of this research studies would specifically facilitate the policy makers and planners in devising suitable strategies for the future plan of action for getting better quality of education as the foundation of the business system. This study could benefit the following: The company: this study can help the companies to become more progressive and productive this study could provide the companies the idea on how to minimize the cost, time and effort of their stocks and employees in terms of recording daily transaction, sales and inventory. Company’s Staff: this study could give staff a benefit because if the company prefers to use this study as their system, their job would be easier and faster. Employees: the result of the study could benefit the employees to lessen their jobs and it will be easy for them to record all the transaction and inventory every day. Future researchers: this study could provide information for the future researchers that have a related topic. They can  use this study as related literature on their research study. Technical Review of Related Literature 2.0 Review of Related Literature This chapter presents the related literature and studies after the thorough and in-depth search done by the researchers. This will also present the synthesis of the art, theoretical and conceptual framework to fully understand the research to be done and lastly the definition of terms for better comprehension of the study. 2.1 Introductory Statement Organizations need to make the right choice and select the inventory control system that not only supports their current needs, but more importantly, is able to support additional functionality to narrow the business growth and technology gap at the right cost. The following are examples of inventory control systems that may suit your organization. In order for our project to be successful and much better than others, we made a system that can cater all the data and transactions of a business. Also, we add some additional and unique features to distinguish the difference of our system to the other systems used by some business firms. We gathered information about the features of some business inventory management system and compared it in our project as a related literature. The graph below shows the comparison of inventory systems in terms of their functionalities. 2.3 Comparison of the other system to the proposed one Bryan’s Online Stocks and Inventory System use an input device such as Barcode Scanner and RFID (Radio Frequency Identification). Also this system has the ability to search and filter data easily. But unlike the other systems this project has some unique features that other systems don’t have. It is an improve inventory system that has a special features that other inventory systems don’t have. Others don’t have a function like notifying the user about the number of products in the inventory which is one of the special functions of this system. Also it has the ability to generate daily report and have compilation of all transactions and records done from the start up to the current date. It has the ability to store data online through the use of private network over the web. Also with this system you can customize your own desired user interface. With this kind of system the company can be more organize because they can store all their records and data online, it reduces paper works and it makes transactions easier and faster. They don’t need to worry if the computer will be  corrupted or destroy because all the data was being stored online, they can open it to any computer as long as they have the security password and username of their private site. All the transactions performed in this inventory system occur in real time. So when multiple users are accessing inventory you can rest assured that theyre all seeing the latest information. Updates occur instantly, no more waiting for transactions to post. We can say that this system is more advance and efficient to use compare to the other systems of the other companies. Methodology and Project Scheduling 3.1 Introductory Statement Literature review is an important element for this project since it will give general idea and concept on how to develop an Online Stocks and Inventory for Bryans Accessories and School Supplies. Besides it will provide the requirements and challenges that need to be face during the progress of the project development. Project schedule is a project progress plan that shows the activities that has been plan throughout this project development. It will provide the guide to implement the progress of the project. Bryan’s Online Stocks and Inventory System have the following SDLC and Hardware and Software to be complying in order to have a good system project result. 3.2 Systems Development Life Cycle (SDLC) The SDLC of Bryan’s Online Stocks and Inventory System develop composed of 6 phases to follow in order to develop the system. The six stages are project planning, project analysis, project development, testing and debugging, implementation and maintenance. 3.2.1 System Planning In this stage the proponents identify and select the software to be used for Bryan’s Inventory. In system planning the proponents choose the project, brainstorming, doing research, interview and the whole member of the team develops the system. The planning of the system determines the task of each members. Determining who will used the system and functions of the system to  its user, the devices to be used in platform of the system. 3.2.2 Project Analysis In system analysis phase it consists of scripting, business process, data flow and database structure as a backbone of the system. It also include the planning of the schedule on how to finish the system project, the process and documentation of the system 3.2.3 System Development and design The system development stage is the application where it develops physical design. The proponents create scripting codes to compute the inventory and designing of the system. 3.2.4 Testing and Debugging Check the system for bugs and errors. The proponents used the bar code scanner to test the system; using the scanner the proponents will determine the functionality of the system. Testing and debugging helps to detect whether the system is working properly or not. The proponents let someone use the system that is not familiar with the system to test the system functionality subject for improvement. 3.2.5 Implementation The implementation of the syste3m will be exclusive for bryan’s school supplies and accessories. In the implementation of the system requires an internet connection to view the inventory of the company. The user log-in to a private network intended only for the inventory of Bryan’s school supplies and accessories 3.2.6 Maintenance In case of error of the functionality in the system the user/company can easily contact the proponents through the email or call/text to fix the problem. The system will implement using the internet which the proponents check and update. The proponents will keep an eye for the maintenance for one year. 3.3 Software Requirements (Recommended) Bryan’s online inventory system supported operating system is any windows 7 variety with 32 bit and 64 bit processor. This system is online and it doesn’t have much software requirements but the researchers prefer to use windows for this system. 3.4 Hardware Requirements (Recommended) The hardware requirements for Bryan’s Online Stocks and Inventory System are mouse, keyboard, and monitor, CPU with 2 GB and up RAM memory, Intel processor with 2-8 cores, hard disk (250 GB) and power supply. 3.5 Project Scheduling Bryan’s Online Stocks and Inventory System takes 47 days to be able to implement and used by the company. The activities and schedule of events are shown in our PERT and Gantt chart which is shown below: Summary of the Findings, Conclusion, and Recommendation 4.1 Introduction This chapter presents the summary of the findings, conclusions and recommendations based on the data analyzed in the previous chapter. Some limitations have been identified. The researchers study deals with the analysis and enhancement of Bryan’s School supplies and Accessories current inventory system. The study focuses on improving and on enhancing the existing system to double the performance and circulation of data.The researchers proposed an online inventory system where all the transactions and processes are done through the use of private network over the web 4.2. Findings The researchers found out that the online inventory system has a big help to the company as well as to the user of the system unlike the existing system which exhibits different problems like: System breakdown Slow processing of data Time consuming Unorganized records Too many paper works Too many people required to process transactions and inventory The researchers also found out that the proposed replacement of the existing  system can give the following benefits: 5x faster processing of data compared to manual system of inventory Less time consuming Continuous access to the entire system Better compilation of record transactions and data Reduces paper works and employees needed 4.3. Conclusion The researchers concluded that: 1. By replacing the existing hardware can give solution to the problems encountered by the encoder/user. 2. Inputing of data will be continuous and faster. 3. The proposed solution can bring such benefits in terms of maintenance cost and overhead cost of electricity.

ZARA Clothing Performance Analysis

ZARA Clothing Performance Analysis Zara is the largest division and flagship brand of the Spanish retail group Inditex. It sells up-to-the-minute fashionability at low prices, in stores that are clearly focused on one particular market (Slack, 2006). The first store opened by accident in 1975 due to a large pyjamas order cancellation. This typically can be said to be an emergent strategy as the Zara store today was not an intended strategy. Vertically integrated, Zara controls most of the processes in the supply chain whereby 50% of the products are manufactured in Spain, 26% in the rest of Europe and 24% in Asian countries. Zara outsources products of high labour intensive processes but maintains in-house capital intensive processes, protecting knowledge and know-how. It takes less than two weeks for a skirt to get from Zaras design team in Spain to a Zara stores in any part of the globe, as much as 12 times faster than the competition. And with shorter lead times, Zara can ship fewer pieces, in a greater variety of styles, more often and they can more easily cancel lines that dont sell as well, avoiding inventory backlogs. (Thinking Made Easy, 2009) This quick response capacity of Zara is made possible by the 3 main stages that define the competitive edge of the company: design, manufacturing and distribution. This strategy is embraced to focus on the operations which can enhance cost efficiency and hence Zaras internalization. Other production activities are completed via a network of about 500 subcontractors in close proximity to Zaras operations at La Coruna. Mr. Ortega the CEO of the Inditex, the parent company of Zara, once said that the secret to retail success is to have five fingers touching the factory and five touching the customer. (Nigel Slack, 2008) This paper uses the models and frameworks of the Operations Strategy module to describe analyze how Zaras operations strategy led to a sustainable competitive advantage in the global apparel industry. What is Operations Strategy? Just as there is no overall agreement about what strategy means, there is no universal agreement on how operations strategy should be described. Four distinct perspectives have emerged on the description as illustrated in Fig. 1 below (Nigel Slack, 2008): Top down vs. Bottom up: Zara boosted its innovation in a fast changing market by adapting the bottom up perspective of strategy in its operations. This is a key driver of competitive advantage through constant innovation to develop new-products that provide customers with new perceived benefits. Zara benefits from an organizational culture that allows information exchange, risk taking, experimentation and learning from failures. Market Requirements vs. Operations Resource: Whatever the operations strategy of an organization, it must in some way reflect the requirements of the organizations market. The fashion market is a fast changing one characterized by quick shifts in consumer demands. As described by Inditex CEO, Jose Maria Castellano, the fashion world is in constant flux and is driven not by supply but by customer demand. We need to give consumers what they want, and if I go to South America or Asia to make clothes, I simply cant move fast enough. How do Zaras operations resources help it to compete in its market? Zara has remained focused on its core philosophy that creativity and quality design together with a rapid response to market demands will yield profitable results. Its business model incorporates the following operational goals: To develop a system the requires short lead times To decrease production quantities and inventory To increase variety of styles/choice. We can deduce that operations strategy is concerned with the reconciliation of market requirements and operations resources. Key drivers of this reconciliation are the importance of setting appropriate performance objectives and understanding the decision areas that determine resource deployment. Factors affecting Zaras Strategic Decisions: Capacity Zara employs a chase demand capacity management in its operations. Spare manufacturing capacity is mirrored in the companys storage function, where up to 400 extra staff can be drafted in during busty periods. As new stock delivery schedules are regimented, customers know when new stock is due and traffic in stores is heavier at such times. As a result, the company is able to adjust its resources to match the demands as appropriate. Procurement and production planners make preliminary, but crucial, estimates of manufacturing costs and available capacity. The cross-functional teams can examine prototypes in the hall, choose a design, and commit resources for its production and introduction in a few hours, if necessary. (Ferdows Kasra, 2005) A small change in retail orders, for example, can result in wide fluctuations in factory orders after its transmitted through wholesalers and distributors. In an industry that traditionally allows retailers to change a maximum of 20 percent of their orders once the season has started, Zara lets them adjust 40 percent to 50 percent. In this way, Zara avoids costly overproduction and the subsequent sales and discounting prevalent in the industry. Supply Networks The vertical Integration advantage can be seen in Zaras centralized logistics and distribution. Zara designs around 10,000 new models every year and replenishes ranges within every one of its 650 retail stores twice per week, but in strictly limited quantities of stock. This ensures Zaras brand promise to customers of exclusivity, and also of design freshness. But it also avoids build-up of large quantities of unpopular stock. Zaras system has to deal with something in the realm of 300,000 new stock-keeping units (SKUs), on average, every year. (Ferdows Kasra, 2005). It outsources less manufacturing (only labour intensive tasks mainly the sewing) than its competitors hence can react quickly to seasonality and unforeseen demand. Zara avoids building inventories in any part of its supply chain from raw materials to end user. Process Technology Zaras communication and coordination through high technology information systems is one of Zaras success factors relative to its competitors. Its customized handheld computers support the connection between the retail stores and headquarters. These PDAs transmit all kinds of information (hard data as orders and sales trends and such soft data as customer reactions and the buzz around a new style). The constant flow of updated data mitigates the so-called bullwhip effect-the tendency of supply chains (and all open-loop information systems) to amplify small disturbances. Development and Organization This fast fashion system depends on a constant exchange of information throughout every part of Zaras supply chain-from customers to store managers, from store managers to market specialists and designers, from designers to production staff, from buyers to subcontractors, from warehouse managers to distributors, and so on Zaras organization, operational procedures, performance measures, and even its office layouts are all designed to make information transfer easy. By having operations in close- proximity to its headquarters allowed for better and faster communication between functional areas for faster decision making. Key success objectives for Zaras Performance: Speed: Speed and responsiveness to Market, Zara has changed the way clothing industry works where deigning, production and delivery to the retailers requires period of six months. The design and distribution cycle of the company takes just 10-15days in the whole process. Zaras speed to market in product development exceeds the capabilities of its competitors. This in itself provides additional value to stakeholders, customers, and stores in producing quality clothing at affordable prices. The proximity of their manufacturing and operational processes allows Zara to maintain the flexibility necessary to design and produce over 12000 new items annually. This capability allows Zara to achieve their strategy of expedited response to consumer demand. The process of obtaining market information and relaying it to design and production teams expedites product development by shortening the throughput time of their products from design to store. Dependability: Due to Zaras ownership and control of production, they ensure timely delivery and service. Although most of their stores run out of stock, signifying that they have low dependability in terms of product availability, another perspective of dependability in terms of keeping to date with fashion is achieved. Quality: Zara brand is synonymous with the cutting edge of fashion at affordable prices. Another Quality advantage is the added sense of quality to the product as the tags would be labelled with made in Europe rather than made in China due to Zaras trade-off between Low labour costs in Asia and operational efficiency. Flexibility: Designers (of average age 26) draw the design sketches then discuss it with market specials and planning procurement staff illustrating a flexibility of ideas generation and on the other hand the huge number of designs reflects the ability to meet almost all the fashion requirements by customers of all ages (up to 55). This adaptive model rather than traditional merchandising is very different from its competitors. Many competitors rely on a small elite design team that plans both design and production needs well in advance. Stores have little autonomy in deciding which products to display or put on sale because Headquarters plans accordingly and ships quantities as forecasted. Zara owned many of the fabric dying, processing and cutting equipment that provided Zara added control and flexibility to adopt new trends on demand. The added flexibility helped Zara on two fronts: shorter lead times and fewer inventories. (OPPapers.com, 2010) Cost: Zara produces most of its products in Europe. Compared to their competitors, they outsource very little to Asia. Though the cost of production in Spain is 17-20% more expensive than Asia, Zara does have a competitive advantage over its competitors in regards to operations. Though there is a cost advantage in their approach in regards to labour, the lack of flexibility in changing orders based on current trends hinders their operational efficiencies. Inventory costs are higher for competitors because orders are placed for a whole season well in advance and then held in distribution facilities until periodic shipment to stores. Lower inventory cost is a key sustainable advantage as it enables Zara to manufacture and sell its products at cheaper prices. Conclusion The smooth integration between Zara business strategy and it is operation strategy as illustrated in the strategic matrix below brought about a promotion of innovativeness through a blending of its performance objectives and decision areas. This aligned Zara operations with its business strategy, ensuring comprehensiveness, correspondence and coherence to achieve its mark in the garment industry as a world leader today. Zara has demonstrated that market flexibility and lean inventories may be even more important than cheap labour, an insight that just might reverse the and its success is based on controlling all the steps of manufacturing clothes: from design to fabric to manufacturing, distribution and sales in order to cut costs and make huge gains in speed and flexibility. In the fashion industry, where trends change daily, Getting a good strategic mix in operations is key to a retailers survival.

Mcteague As A Social Commentary Essay -- essays research papers

Written in 1899, Frank Norris’ novel, McTeague serves as a view of societal factions of his time period. Norris illustrates the stratification of society in this San Francisco community by using the concept of Social Darwinism. He gives detailed accounts of the inner workings of society along with the emotions of the time. Through his characters, Norris shows the separation of classes and the greed that grew abundantly during the late 19th century. He also gives a grim picture of survival in his depiction of the theory of natural selection. In the first chapter, Norris paints a picture of a town setting. He describes Polk Street as â€Å"one of those cross streets peculiar to Western cities, situated in the heart of the residence quarter, but occupied by small trades people who lived in the rooms above their shops. There were corner drug stores with huge jars of red, yellow and green liquids in their windows, very brave and gay; stationers’ stores, where illustrated weeklies were tacked upon bulletin boards; barber shops with cigar stands in their vestibules; sad-looking plumbers; offices; cheap restaurants, in whose windows one saw piles of unopened oysters weighted down by cubes of ice, and china pigs and cows knee deep in layers of white beans.† In this paragraph, the reader gets a visual image of a town during the 19th century. Cozy, quaint and rather poor, this town exists as an example of any other town at this time. Also, in setting the activities of the time period, No...

Graduation Speech -- Graduation Speech, Commencement Address

Good evening and welcome to the commencement ceremonies of the class of 2006. It has been a long journey, somewhere around 18 years, but we've finally reached the piece de resistance of our high school years. I'm not very good at this sentimental thing, so I scratched up a little poem. Ladies and Gentleman, may I present to you, "Ode to the Class of '06." ODE TO THE CLASS OF 2012 'Twas the night of graduation, and under the steeple there were very, very emotional people. Thoughts of the future, thoughts of the past, memories which will always last. It all started when we walked through the door, How many years ago? -- -- "Oh it was four!" Freshman year we started as prepubescent teens, with backwards caps and saggy jeans. We went through the teachers, one-by-one Until we got the reputation of "being too much fun." Religion for example, is a class where we behaved badly, Mr. Blanchett's good byes were given quite gladly. And so sophomore year came, like the soft summer wind, and the memories of how badly we sinned, faded away like an old pair of jeans. In fact we were maturing, maturing as teens. A new student joined us, who thought he was a preacher, Oh, wait, I'm sorry, he was a teacher. His name was Thinen. Junior year arrived, and hence came harder classes, but on a good note, gone were the smart-asses. We matured, and conquered, and came out of our shell. And shed the title, "Class from Hell." Having a blast and emerging as leaders, We met once again at 2617 Cedar. As part of the upper-class, we acted superb, partly because we weren't smoking any type of herb. And when it was over, it started again, the year in which we became all fr... ...ds of Jim Carrey, "Spooky." But, as scary as it is, we can feel confident knowing that what we do with the rest of our lives is up to us. Mom and Dad can only hold on to our hands for so long, and then it is time to set sail on the ocean of life. Tonight is the beginning of the rest of our lives. God, the great casino dealer in the sky, has already shuffled the deck and dealt us his cards. What we do with those cards, our talents, is entirely up to us. Will it happen? Will it TO happen, and the possibilities are endless. The challenge from this night onward is to play our hand right, and not go broke. As we revel in our accomplishments chuckle over the memories of good times and sniffle over the memories of the bad ones, just remember, the world is our oyster. We must seize the pearl. As salutatorian, I salute you. Thank you, and have a splendid evening!

Ethnicity and the Police Newspaper Article Essay

Ethnicity and the Police Newspaper Article Assignment Part II: Final This newspaper article will begin from week two individual public opinion of police by different ethnic groups outline. Public opinion of police by different ethnic groups there are different types of ethnic groups African American, Hispanic’s and Latino’s American. Ranging from the White House to all over this nation sometime or another there can arise many problems with different ethnic groups all the way through the criminal justice system, in our communities, and as well as in the public figure. Each group has formed their own public opinion of police African American have more encounters with police because of their skin color than any other race. The percentage rate for arrest is much higher than any other ethnic group. Have more abuse, brutality, and harassment in African American communities than other communities. Back in slavery time the brutal abuse even lead to Blacks being hung by a tree until death. Hispanic’s and Latino’s have more traffic stops than other ethnic groups, because of drug smuggling. Some cannot understand English, and have language barrier issues. Immigration and deportation poses threats in Arizona. Some groups in the past as well as today effects the opinion of the police International Convention on the Elimination of All Forms of Racial Discrimination (CERD). International Covenant on Civil and Political Rights (ICCPR) has worked consistently with community groups, television, friends, family, social media, newspaper, magazines, and many others to help stop police abuse and brutality. One of the greatest men of all time who fought hard for Black’s (Negro American, African American) rights and freedom in America, however, this race carries many names, when others are recognized as one ethnic group to another. Below are photos of many great leaders, actresses, and singers, all have and some to this present day are still fighting for Black’s rights in this nation. Although Black’s have come a long way from slavery, but remains in a struggle today simply for being born the wrong skin color. While forming an opinion of one the most recent top stories in the nation, the Washington, D.C., Navy Yard as they study more about the actions of gunman Aaron Alexis that day. Federal experts are mending together a new timeline of Monday’s mass shooting, and the reason for Alexi’s actions. In one Black woman opinion was this action of hate, revenge, mental issues, at the time of this catastrophic shooting rampage. Concerns of many are trying to figure out what was Alex’s thinking about, and why take this chance of killing 12 people, before his own life was taken. Below are some photos of the shooting. ‘One person felt him breathe’: Escape from the Navy Yard’ I Felt Him Breathe’: Escape From the Navy Yard. They say the first call for help came at 8:21 a.m. that morning, and it took officers another 30 minutes to find Alexis. Investigators believe that Alexis was concealing a shotgun with a sawed-off barrel and stock when he entered the building, though they still don’t know if that gun was in the bag he was carrying or concealed in his clothing. And they know that the people he shot and killed were mostly on the third and fourth floors. In a tragic twist, one of Alexis’ victims was standing outside Building 197, in an alley, when he was shot by a bullet that passed through a door, the FBI told NBC News’ Pete Williams Thursday. The gunman was shot by a team comprising U.S. Park Police and D.C.’s Metropolitan Police who found him in an area filled with cubicles, U.S. Park Police said. The team had to clear each cubicle, one by one, until Alexis engaged them and they shot him. In all, 12 victims were killed, eight were injured and Alexis was shot and killed in the shooting Monday morning, the deadliest single event in Washington in decades.

How Technology is changing our online life Essay

It is hard to imagine life without email nowadays. The only efficient means of communication, with efficient meaning that the message is delivered within seconds, is either through the cellular phone or through email via the internet. It is even more impossible to imagine how people could work under circumstances that denied them access to the latest communication technologies or even technology at all. Yet somehow, there was really a time when people where not at the beck and call of their cellular phones and a time when nobody really felt the urge to keep checking the mailbox every five minutes for fear of missing an email. There was a time when people actually drove to the store or entered a store and talked with the attendants before buying something. Ordering shoes and bags or other electronic items was done by going to a shop and not by going online and surfing online as it is done today. Friends and lovers were met and made by going to social functions and parties instead of by checking out somebody’s myspace profile or advertising on online personals. While those practices are still being done by certain individuals, the growth of the internet and the wide array of services that it offers have dramatically altered the manner by which people interact with one another and also the manner by which individuals lead their daily lives. The convenience and accessibility that the internet offers makes it an ideal replacement for all the previous time and energy consuming endeavors. With the number of people who are connected to the internet growing everyday, it is but a natural consequence that more and more services are being offered online ranging from dating, shopping, research and entertainment. In understanding how this newfound online lifestyle has changed our lives, it is important to understand the lures that are online that make it such a tempting alternative to doing this the time consuming and energy expending tasks. The internet provides everything online. Everything a person can desire or want is available online. Romance can be found through chatting or through online personals while intrigue can also be found on popular blog spots. Food is readily available for order online and so are clothes and other items. In short, there is nothing that cannot be found online and all a person needs to do is point and click. This is the lure of the online life and this is the reason why more and more people are leading the online life. It is convenient. It is time saving. It does not require one to expend a lot of energy. In certain cases, it also allows a person to work more efficiently and become more productive. From the standpoint of privacy, the internet offers virtual anonymity to anybody who goes online. All of this is offered online thanks to the great improvements in electronic and communications technology. As the developments in the electronics and communications technology continues to improve and advance, it will no longer be far off to imagine a world where nobody is walking the streets and everyone is hooked up to their computers interacting with each other in a world where they can be their own gods and dictate their own destinies without even breaking a sweat. Instead of just seeing an image of another person online, it may actually be possible to experience the sensation of feeling and touching that person. This all may just be future talk but one thing is certain. Today’s society has become so dependent on the benefits that technology has brought in making online life possible that we have come to a point of no return where we can no longer imagine life without it. If you think otherwise, turn off your cellular phone and unhook the jack of your computer and see how long you can survive without it.

Mao Zedong’s Legacy

Mao Zedong (Mao Tse Tung) was a Marxist theorist and soldier who led the Chinese communist revolution, later became the Communist Party’s leader and eventually became the head of state and Party chairman. While he did not entirely rule China on his own, he can be regarded as the modern China’s principal architect.[1]   Mao is largely credited for the programs the Great Leap Forward and the Great Proletariat Cultural Revolution. Under Chairman Mao, China’s communism ideologically deviated from that practiced in the Soviet Union on account of the emphasis placed by the former on the role of the countryside peasantry in the communist revolution, a factor ignored in the Soviet paradigm centered on the urban classes. The Great Leap was an economic and social plan of Communist China under Mao Zedong to rapidly industrialize the then principally agricultural-based country. The plan hoped to modernize the communist state by turning it into an industrial-based economy.   It was however an economic debacle and aggravated by natural disasters, leading to the starvation and death of millions. The Cultural Revolution, on the other, was designed by Mao to get back at Party members who wanted to undermine his leadership.[2] Mao's policies were a mix of successes and failures. Millions died largely because of the inherent flaws of the Great Leap economic policy. Millions were executed under the reforms of the Cultural Revolution but in return, millions of proletariat farmers were awarded their own land to till. Among the long-term consequences of Mao's Great Leap Forward and Cultural Revolution policies was the decade-long widespread disruption in urban China of the education of many Chinese, giving their generation career and productivity disadvantages.[3] But Mao's programs did leave lasting advantages for China, including the legacy of a considerably successful space program, nuclear weapon capability and the acquisition of a strategic territory. [4]While the death toll under his leadership totaled to millions of Chinese who died either by executions or of famine, the architectural designing of China under his rule placed the country on the road to being a regional economic and political power that she is today. China is in fact currently being perceived by no less than the United States as a potential military threat. Pan, Esther.[5] References Giles, John.; Park, Albert; Zhang, Juwei. The Great Proletarian Cultural Revolution, Disruptions to Education, And Returns to Schooling in Urban China.   Retrieved 6 Dec. 2006 Kane, Thomas and Serewicz, Lawrence. China's Hunger: The Consequences of a Rising Demand for Food and Energy.   Parameters (Autumn 2001).   Retrieved Dec. 6, 2006 from the U.S. Army Accessions Command Website: http://carlisle-www.army.mil/usawc/Parameters/01autumn/Kane.htm. Is China a Regional Military Threat. (18 October, 2005). Mao Zedong. Encyclopà ¦dia Britannica. Retrieved December 7, 2006, from Encyclopà ¦dia Britannica 2006 Ultimate Reference Suite DVD. Mao Zedong. (2006, December 7). In Wikipedia, The Free Encyclopedia. Retrieved 12:47, December 7, 2006, from http://en.wikipedia.org/ w/index.php?title=Mao_Zedong&oldid=92619408.       . [1] Mao Zedong. Encyclopà ¦dia Britannica. Retrieved December 7, 2006, from Encyclopà ¦dia Britannica 2006 Ultimate Reference Suite DVD . [2] Mao Zedong. (2006, December 7). In Wikipedia, The Free Encyclopedia. Retrieved 12:47, December 7, 2006, from http://en.wikipedia.org/w/index.php?title=Mao_Zedong&oldid=92619408 [3] Giles, John; Park, Albert; Zhang, Juwei. The Great Proletarian Cultural Revolution, Disruptions to Education, And Returns to Schooling in Urban China.   Retrieved 6 Dec. 2006 from The William Davidson Institute At The University of Michigan Website: http://www.wdi.umich.edu/files/old/EDTS/Papers/ John_Giles_cultural_revolution.pdf. [4]Kane, Thomas and Serewicz, Lawrence, China's Hunger: The Consequences of a Rising Demand for Food and Energy. Parameters, ( Autumn 2001).   Retrieved Dec. 6, 2006 from the U.S. Army Accessions Command Website http://carlisle-www.army.mil/usawc/Parameters/01autumn/Kane.htm. [5] Is China a Regional Military Threat? 18 October, 2005. Retrieved from the Council on Foreign Relations Website: http://www.cfr.org/publication/9052/is_china_a_regional_military_threat.html.

Emilio Jacinto’s Trading Cooperative

A1457 Cooperatives: Principles and practices in the 21st century Kimberly A. Zeuli and Robert Cropp ABOUT THE COVER IMAGE: The â€Å"twin pines† is a familiar symbol for cooperatives in the United States. The Cooperative League of the USA, which eventually became the National Cooperative Business Association (NCBA), adopted it as their logo in 1922. The pine tree is an ancient symbol of endurance and immortality. The two pines represent mutual cooperation—people helping people. COOPERATIVES: ii Chapter 1 An introduction to cooperatives 1 Chapter 2 Historical development of cooperatives throughout the world 5Chapter 3 Cooperative history, trends, and laws in the United States 59 Chapter 8 Procedures for organizing a cooperative 69 Chapter 9 A summary of cooperative benefits and limitations 77 Notes 81 Glossary 85 Cooperative resources IN 49 Chapter 7 Cooperative financial management PRACTICES 39 Chapter 6 Cooperative roles, responsibilities, and communication & 27 Chapte r 5 Alternative business models in the United States PRINCIPLES 15 Chapter 4 Cooperative classification Contents Publication notes ? 89 THE 21ST CENTURY i Publication notes This publication is the fourth and most extensive revision of the Marvin A.Schaars’ text, Cooperatives, Principles and Practices, University of Wisconsin Extension—Madison, Publication A1457, July 1980. What has come to be known simply as â€Å"the Schaars book,† was originally written in 1936 by Chris L. Christensen, Asher Hobson, Henry Bakken, R. K. Froker, and Marvin Schaars, all faculty in the Department of Agricultural Economics, University of Wisconsin—Madison. Since its first publication, the Schaars book has served as a basic reference for cooperative members and leaders, cooperative instructors and development specialists, and students of cooperatives throughout the UnitedStates and world. It has been translated into several languages. Although the Schaars book has been out of print for some time, the University of Wisconsin Center for Cooperatives (UWCC) continues to receive regular requests for copies. Its straightforward, basic information on the organization, structure, financing, and management of cooperatives is as needed and relevant today as ever. The revisions in this version, which reflect over two decades of learning about cooperative development as well as new cooperative laws and ways of doing business, will hopefully make it even more useful.Although we focus on cooperative businesses in the United States, and draw most of our references from the agricultural sector, most of the book’s content is pertinent to cooperatives anywhere, in any sector. Readers are encouraged to seek out other publications that deal more extensively with cooperative laws in their own states and countries, and provide more detailed information on consumer, service and worker-owned cooperatives and credit unions. ii Kimberly Zeuli and Robert Cropp, Assistant Professor and Professor Emeritus in the Department of Agricultural and Applied Economics, University of Wisconsin—Madison, re responsible for all of the editing and most of the revised text. The following individuals also contributed to various chapters: David Erickson, Director of Member Relations, Wisconsin Federation of Cooperatives E. G. Nadeau, Director of Research, Planning and Development, Cooperative Development Services David Trechter, Professor, University of Wisconsin— River Falls Richard Vilstrup, Professor Emeritus, Department of Animal Science and Agricultural and Applied Economics, University of Wisconsin—Madison This revision would not have been possible without generous funding from The CooperativeFoundation, Inver Grove Heights, Minnesota. COOPERATIVES: CHAPTER 1 ? An introduction to cooperatives According to the International Co-operative Alliance (ICA): a cooperative is an autonomous association of persons united voluntarily to meet their com mon economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. Cooperative leaders around the world recognize the ICA, a non-governmental organization with over 230 member organAlthough the word â€Å"cooperaizations from over 100 countries, as a leading tive† can be applied to many uthority on cooperative definition and values. 2 different types of group activities, in this publication The ICA definition recognizes the essential the term is used to reference element of cooperatives: membership is voluntary. Coercion is the antithesis of cooperation. Persons a formal business model, compelled to act contrary to their wishes are not which has relatively recent origins. The earliest coopera- truly cooperating. True cooperation with others arises from a belief in mutual help; it can’t be tive associations were created in Europe and North dictated. In authentic cooperatives, persons join The first signs ofAmerica during the 17th and voluntarily and have the freedom to quit the cooporganized hunting 18th centuries. These associ- erative at any time. 3 The forced collectives prevaactivity based around lent in the former Soviet Union, for example, were ations were precursors to communities are associated with not true cooperatives. cooperatives. The pioneers Homo erectus, of the Rochdale Society in Another widely accepted cooperative definition is modern human 19th-century England are ancestors who lived the one adopted by the United States Department between 500,000 and celebrated for launching the f Agriculture (USDA) in 1987: A cooperative is a 1. 5 million years ago modern cooperative user-owned, user-controlled business that distributes in Africa. movement. The unique conbenefits on the basis of use. This definition captures tribution of early cooperative organizers in what are generally considered the three primary England was codifying a guiding set of principles cooperative principles: user ownership, user and instigating the creation of new laws that control, and proportional distribution of benefits. helped foster cooperative business development. The â€Å"user-owner† principle implies that the peopleToday, cooperatives are found in nearly all countries. Chapters 2 and 3 trace the remarkable history who use the co-op (members) help finance the coof cooperative development internationally and in op and therefore, own the co-op. Members are responsible for providing at least some of the the United States. cooperative’s capital. The equity capital contribution of each member should be in equal proportion to that member’s use (patronage) of the coop. This shared financing creates joint ownership The cooperative model has been adapted to (part of the ICA cooperative definition). numerous and varied businesses.In 1942 Ivan G roups of individuals around the world and throughout time have worked together in pursuit of common goals. Examples of coop eration, or collective action, can be traced back to our prehistoric predecessors who recognized the advantages of hunting, gathering, and living in groups rather than on their own. What is a cooperative? Emelianoff, a respected cooperative scholar, remarked that â€Å"the diversity of cooperatives is kaleidoscopic and their variability is literally infinite. †1 As a consequence of this diversity, no universally accepted definition of a cooperative exists.Two definitions, however, are commonly used. PRINCIPLES & PRACTICES IN The â€Å"user-control† concept means that members of the co-op govern the business directly by voting on significant and long-term business decisions and indirectly through their representatives on the board of directors. Cooperative statutes and bylaws usually dictate that only active co-op members (those who use the co-op) can become voting directors, although non-members sometimes serve on boards in a non-voting, advisory THE 21ST CENTURY 1 cap acity. Advisory directors are becoming more common in large agricultural cooperatives in theUnited States, where complex financial and business operations require the expertise of financial and industry experts. Only co-op members can vote to elect their board of directors and on other cooperative actions. Voting rights are generally tied to membership status—usually one-member, one-vote—and not to the level of investment in or patronage of the cooperative. Cooperative law in a number of states in the United States and in other countries, however, also permits proportional voting. Instead of one vote per member, voting rights are based on the volume of business the member transacted he previous year with the cooperative. Generally, however, there is also a maximum number of votes any member may cast to prevent control by a minority of members. For example, a grain cooperative might permit one vote to be cast for each 1,000 bushels of grain marketed the year before, but any single member would be limited to a maximum of ten votes. Democratic control is maintained by tying voting rights to patronage. Equitable voting rights, or democratic control (as written in the ICA definition), are a hallmark of cooperatives. â€Å"Distribution of benefits on the basis of use,† escribes the principle of proportionality, another key foundation for cooperatives. Members should share the benefits, costs, and risks of doing business in equal proportion to their patronage. The proportional basis is fair, easily explained (transparent), and entirely feasible from an operational standpoint. To do otherwise distorts the individual contributions of members and diminishes their incentives to join and patronize the cooperative. 2 Co-op benefits may include better prices for goods and services, improved services, and dependable sources of inputs and markets for outputs. Most ooperatives also realize annual net profits, all or part of which are returned to members in proportion to their patronage (thus, they are aptly called patronage refunds). Cooperatives can also return a portion of their profits as dividends on investment. In the United States, however, federal and most state statutes set an 8 percent maximum on annual dividend payments. The purpose of these limits is to assure that the benefits of a cooperative accrue to those who use it most rather than to those who may have the most invested; the importance of capital is subordinated. Today, some co-op leaders and scholars consider his dividend restriction arbitrary and harmful to cooperatives. From their perspective, the 8 percent maximum makes investing in cooperatives less attractive than investing in other forms of business. It makes cooperatives less competitive as well, especially in the agricultural processing sector, which requires a lot of capital for start-up and growth. An overview of the federal laws that govern cooperatives in the United States is included in chapter 3. Why cooperate? People who organize and belong to cooperatives do so for a variety of economic, social, and even political reasons.Cooperating with others has often proven to be a satisfactory way of achieving one’s own objectives while at the same time assisting others in achieving theirs. Farmers create farm supply and marketing cooperatives to help them maximize their net profits. This requires both effective marketing of their products for better prices as well as keeping input costs as low as possible. The farmers recognize that they are usually more efficient and knowledgeable as producers than as marketers or purchasers. By selling and buying in larger volumes they can also usually achieve better prices. COOPERATIVES: CHAPTEREmployees organize bargaining associations and labor unions to negotiate collectively with management and owners. In some cases, employees form worker-owned cooperatives. As the name suggests, a worker-owned cooperative is owned and controlled by its em ployees. 4 Employees establish bargaining units and cooperatives in the hopes of increasing their wages and fringe benefits, improving their general working conditions, and ensuring job security. Cooperatives do not, as is sometimes assumed, contradict the goals of capitalism. If that were the case, cooperatives would not play such an important role in the American economy.About 48,000 cooperatives, operating in nearly every business sector imaginable, serve 120 million members, or roughly 4 out of 10 Americans. 5 The top 100 cooperatives in the United States, ranked by revenue, individually generated at least $346 million in revenue during 2002 and in the aggregate, $119 billion. 6 They represent agriculture, finance, grocery, hardware, healthcare, recreation, and energy industries (figure 1. 1). An introduction to cooperatives Consumer cooperatives are established to sell the products a group of consumers want but cannot find elsewhere at affordable prices. The consumer embers are primarily interested in improving their purchasing power—the quantity of goods and services they can buy with their income. They naturally wish to get as much as possible for their money in terms of quantity and quality. As owners, the members have a say in what products their stores carry. 1 ? Cooperatives are especially important to agriculture. In 2002, 3,140 agricultural cooperatives provided roughly 3. 1 million farmers (many farmers are members of more than one cooperative) with agricultural marketing, farm supplies, and other farm-related services. They captured 28 percent of the market share. Figure 1. 1. Top 100 revenue generating cooperatives in the U. S. by sector, 2002 PRINCIPLES & PRACTICES IN THE 21ST CENTURY 3 In terms of non-agricultural cooperatives, 84 million Americans are members of 9,569 credit unions, 865 electric co-ops serve 37 million people in 47 states, over 1. 5 million families live in housing cooperatives, and over 3 million people are members o f 5,000 food cooperatives. 8 The involvement of so many people in cooperatives in such a highly competitive economy reflects the general satisfaction of members toward their companies and the apparent efficiency and solid inancial performance of these businesses. Chapter 4 provides a more comprehensive discussion of the various types of cooperatives and the extent of their economic success in the United States. In short, cooperatives are organized to serve member needs and are focused on generating member benefits rather than returns to investors. This member-driven orientation makes them fundamentally different from other corporations. Additional cooperative structural characteristics and guiding principles further distinguish them from other business models. In most countries, the cooperative model represents only one of several ifferent ways a business can choose to legally organize. Chapter 5 presents a comparison of the six major alternative business models in the United States . Cooperative management and development To prosper, cooperatives must be well organized, well financed, well managed, and governed well by a committed membership. They must be progressive, adapting to changing business climates, and responsive to their members’ changing needs. Members, the board of directors, and management each have responsibilities within the cooperative. Strong, viable cooperatives require all three groups to do their share.Chapter 6 describes each group’s unique and important role. 4 Although capital, employees, business volume, and good management practices are all very important for successful operations, a co-op’s members are its most important asset. Cooperative success also hinges on effective member education and communication. Indeed, providing education, training, and information to members is one of the seven cooperative principles adopted by the ICA. The unique education needs of cooperatives and the essential elements for a succe ssful education and communication program are also discussed in chapter 6.Cooperative financing is also critical and in today’s complex cooperative organizations it can be quite complicated. Adequate capital is one of the fundamental principles of sound business operation and at the same time one of the biggest challenges facing cooperatives today. Financing options must be consistent with principles of cooperation as well as with federal and state laws. Chapter 7 lays out the main concepts behind cooperative financing, including alternative sources of capital and equity redemption plans. As with other business forms, cooperatives should be established only to meet a well-defined need in he market. Before cooperatives are created, advance research should be done by a steering committee to ensure sufficient support by other potential members in the community. Chapter 8 discusses in greater detail the procedure for organizing cooperatives. A good feasibility study, strong membe rship drives, and a comprehensive business plan are essential ingredients. A final analysis of the cooperative model’s benefits and limitations, to members and the broader community, is presented in chapter 9. COOPERATIVES: CHAPTER Revolutionary roots in England The first cooperative businesses created in Europe rose during periods of great social upheaval and distress caused by dramatic shifts in agricultural and industrial production practices. Prior to the Industrial Revolution (about 1750-1850), most families in England and other parts of Europe were largely self-sufficient, creating enough food and goods for their subsistence and small amounts for trading. The Industrial Revolution introduced the factory system of production and was marked by a rapid succession of remarkable inventions that accelerated the industrialization of business. Examples of inventions during this period include smelting iron with coal instead of charcoal, the otton gin and power loom, and the ste am engine. The writings of Adam Smith at the time, especially his advocacy of the laissez faire principle (no government intervention in the economy), further spurred the revolution. The industrial system gradually replaced cottage industries and home-based production. Workers were required to move into cities to find work. Away from land, their families were increasingly integrated into a market economy; instead of pro- PRINCIPLES & PRACTICES IN ducing most of their household requirements, especially food, they had no other choice but to purchase them. Advances in production were not, nfortunately, accompanied by fair labor standards. Workers were typically paid very low wages and were subjected to harsh working conditions. 10 People remaining in rural areas were not much better off. An agricultural revolution was already well underway in the 18th century. The introduction of new cultivation methods and crop varieties supported a dramatic change in land tenure patterns. Scattered, small plots of farmland were aggregated into large, enclosed estates, primarily for the purpose of grazing sheep and other live- The historical development of cooperative businesses cannot be disconnected from the social and conomic forces that shaped them. Co-ops then, as now, were created in times and places of economic stress and social upheaval. 9 stock. Between 1760 and 1843, nearly seven million acres of agricultural land in England were enclosed in estates. As a result, large numbers of small farmers were driven from their land into neighboring towns and villages with few remaining jobs. A movement towards greater freedom of expression was another hallmark of this revolutionary period. The citizens of England began to publicly dissent with government policies, taking issue with the status quo and demanding more personal ights. Therefore, the widespread poverty, unemployment, and general social deterioration that were left in the wake of the industrial and agricultural revolut ions were met with a public outcry to the government for improved working and living conditions. THE 21ST CENTURY Historical development of cooperatives throughout the world T he historical development of cooperative businesses cannot be disconnected from the social and economic forces that shaped them. Co-ops then, as now, were created in times and places of economic stress and social upheaval. 9 Ancient records and archeological discoveries oint to the existence of cooperative organizations created by early civilizations in diverse parts of the world (China, Greece, Egypt, etc. ). But it is the founders of the Rochdale Society in 19th century England who are celebrated for launching the modern cooperative movement. The Rochdale pioneers, and the early European cooperative thinkers and organizers who laid the foundation for their success, are responsible for codifying a guiding set of principles that helped guide the development of cooperatives across the world. 2 ? 5 Early coopera tive societies Robert Owen and In the absence of public assistance, the people ofCharles Fourier— Europe established various types of self-help organizations. Mutual fire insurance companies Cooperative visionaries existed in London and Paris as early as 1530, although the first highly successful and wellknown example was organized in England in 1696, the Amicable Contributionship. 11 The people of England also created Mutual Aid Societies (they eventually became known as Friendly Societies) that offered financial payments and assistance to members in times of sickness, unemployment, or death. 12 By the mid-18th century many well-established societies were already in operation.They were legalized with the passing of the first Friendly Society Act (also called the Rose Act) in 1793. A number of bills were introduced in the 19th century to encourage Friendly Societies since they lessened the public burden. 13 Workers organized labor unions to bargain with employers for more fav orable working conditions and to lobby the government for improved labor legislation. Cooperative or quasi-cooperative industrial businesses were in operation in England by 1760. Most were consumer-controlled organizations focused on flour milling and baking industries. Cooperative orn mills for grinding flour appeared in a number of cities shortly after the turn of the 19th century to cut the cost of flour and prevent tampering by greedy millers. Purchasing cooperatives already existed in most Western European countries by the 18th century. The Weaver’s Society in Fenwick, Scotland (often referred to as â€Å"penny capitalists†) began to purchase supplies as a group in 1769. 14 The precursors to mutuals and unions were guilds, the associations of merchants, artisans, and craftsmen that date back to Medieval times. Guilds had binding rules for production and business practices.Although guilds were created partially in an attempt to establish local trade monopolies, the y incorporated socialist practices: member control, equitable treatment of all members, and financial support of members who were ill or faced family crises. 6 â€Å"Often men wish to escape the realities of life, and when they do, they dream of Utopias. † 15 The first cooperative movement, that is, the establishment of a coherent argument for the cooperative form of organization, gained momentum in the early 19th century with the writings and advocacy efforts of Robert Robert Owen (1771- Owen and William King in 858):â€Å"The Father England and Charles Fourier in of Cooperation. † France. Robert Owen and Charles Fourier were both well-known Utopian Socialists; not only did they envision ideal societies, they tried to create them in Europe and the United States. 16 Robert Owen (1771-1858) was a prominent industrialist who began to advocate the establishment of a new type of community to alleviate the poverty and suffering caused by the Industrial Revolution. Charles F ourier (1772-1837) was a bourgeois, famous French social philosopher whose plans for self-reliant communities were motivated by the French Revolution and his view hat the working class was being dehumanized and repressed. They both envisioned rural villages composed of farms and small-scale industry, all operated cooperatively by the citizens who would also live together communally. Owen originally conceived of these communities as a solution for unemployment, but later believed (like Fourier) that they were a better alternative to private capitalism and competition, providing self-employment opportunities and other conditions that would provide universal happiness. Fourier called his planned communal cities â€Å"phalanxes. † COOPERATIVES: CHAPTER Fourier never found philanthropists willing to fund he creation of a phalanx. After his death, several were attempted in France and more than thirty organized in the United States. 18 The most notable in the United States were Broo k Farm, near Cambridge, Massachusetts (1842-1846), and one in Fond du Lac County (now the city of Ripon), Wisconsin (1845-1850). The phalanxes suffered from a conflict between treating everyone equally and rewarding those who provided more capital and labor. The phalanx model, however, influenced the successful kibbutzim in Israel (discussed later). Owen was a visionary idealist, not a realistic cooperative developer.He was not at all interested, therefore, in helping the early consumer cooperatives in England:â€Å"Joint stock retailing is not the Social System which we contemplate†¦and will not form any part of the arrangements in the New Moral World. †19 In 1839 he did not even bother to respond to an urgent request by Charles Howarth to visit Rochdale, England to discuss organizational plans for a new retail cooperative. Owen’s attack upon individualism, the family, competition, private property, the market economy, and organized religion, alienated many peopl e from cooperation and provoked condemnation of cooperatives from various religious groups.Even so, Owen is often called the â€Å"father of cooperation. † Despite his failures, Owen continued preaching that cooperative production and living were the best medicines for the ills of society. His advocacy stimulated the creation of cooperative societies, labor exchanges (where handicrafts were traded based on the amount of labor involved in their making), and trade unions. Although most of the organizations he started lasted only a short time, PRINCIPLES & PRACTICES IN they provided the groundwork for another generation of cooperative development in Europe and North America. William King—A cooperative developer and pragmatist Dr. William King (1786-1865), another social reformer in England, was in many respects more responsible than Robert Owen for spreading the cooperative idea and for the actual organization of cooperatives. Although he accepted much of Owen’s so cial philosophy, he disagreed on how to reach those goals. King was more realistic about cooperatives, advocating and inspiring the development of consumer cooperatives across England. As a physician, King became interested in improving the welfare of the working people of Brighton, England. He was involved in organizing numerous ocial and educational institutions, including an infants’ school, a mechanics’ institute, and a library. Between 1828 and 1830, King published (at his own expense) a small magazine called â€Å"The Cooperator† that was widely distributed throughout England. Its 28 issues were a source of inspiration, information, and instruction on cooperation in theory as well as in practice. The magazine advocated a more realistic type of cooperation within reach of the working class. King believed that cooperatives should start small with the original capital supplied by members, a significant deviation from Owen and Fourier’s arge-scale opera tions funded by wealthy investors. King did not necessarily object to Owen’s self-sustaining cooperative communities, as long as they were funded with the members’ own capital and were restricted to Christians. King was a religious fundamentalist who believed that biblical scripture should guide the ethics and operations of cooperatives. He also taught that cooperatives should not pay patronage refunds, but instead reinvest all net profits to increase the scope of their activities and to employ as many members as possible. King also proposed the following guidelines for consumer cooperatives: THE 1ST CENTURY Historical development of cooperatives throughout the world Owen and Fourier were not abstract thinkers; they laid out very specific details for their communities. For instance, they believed that the communities should contain 1,000-1,800 people living on a relatively small tract of land. Fourier was more explicit: the area should be three square miles. 17 Wealthy supporters of Owen’s ideas were willing to finance the creation of such communities. Four were eventually created: New Harmony, Indiana (USA); Orbiston, Scotland; Ralahine, Ireland; and Queenswood, England. All ultimately failed. 2 ? 7 1) members should pay cash for all merchandise purchased at the cooperative; (2) the co-op should adopt democratic principles of governance; and (3) it should publicize the cooperative movement. In addition to the advocacy of Owen and King, the cooperative movement in England was supported by a number of short-lived cooperative journals, which were circulated between 1825 and 1830. Cooperative congresses also advocated and promoted cooperation; the first took place in 1830 in Manchester, the second in 1831 in Birmingham, and the third in 1832 in London. Owen’s influence and rhetoric were exhibited in these and later congresses.For instance, the Third Congress stated that â€Å"the grand ultimate object of all cooperative societies is c ommunity on land. † What began with a few cooperative societies in 1826 quickly grew to about 300 consumer cooperatives by 1830, many patterned after King’s Brighton Cooperative Trading Association. King’s ideas may have also influenced early American cooperatives. A treasurer of a cooperative in Brighton, England, William Bryan, helped organize a consumer cooperative in New York City in 1830. King was compelled to discontinue his active role in the cooperative movement in the late 1830s for wo reasons: his medical practice was suffering and poor management and internal discontent plagued individual co-op stores. By 1840, the cooperative movement in England was basically at a standstill and King’s ideas were forgotten, ignored in the cooperative literature for several decades. The Rochdale Pioneers In the first wave of consumer cooperatives, a shortlived society was created in Rochdale, England in 1833. James Smithies, one of the original organizers, was i nspired by King’s cooperative magazine and shared it with his co-founders. Their ultimate cooperative goals, however, echoed Owen’s teachings.Although their first co-op effort failed after only two years, a core group of 28 continued to work actively for social reform and eventually created the prototype cooperative model for a modest shop on Toad Lane in 1844. The so-called Rochdale Pioneers were ambitious and had lofty goals for their co-op: (1) to sell provisions at the store; (2) to purchase homes for their members; (3) to manufacture goods their members needed; and (4) to provide employment for their members who were either out of work or poorly paid. In sum, they wanted to â€Å"establish a self-supporting home colony of united interests† nd to â€Å"arrange the powers of production, distribution, education, and government† in the interests of its members. In addition, they hoped to open a â€Å"temperance hotel† in one of the cooperative hou ses to promote sobriety. The foundation for the Rochdale cooperative was built upon the intelligent combination of various ideas that had been tried by previous cooperatives. The Pioneers learned from the co-op failures of the past. For example, the business practices they adopted for their small store, later called the Rochdale Principles (sidebar), were novel primarily in their combination; many had been borrowed rom other cooperatives. The original Rochdale Cooperative shop on Toad Lane. It is now preserved as a museum. 8 COOPERATIVES: CHAPTER The Industrial and Provident Societies Act, authorized in England in 1852, was a major development in the cooperative movement. Prior to the enactment of this law, the Friendly Societies Acts of 1834 and 1846 regulated the registration of cooperatives, even though these acts were designed for mutual-aid groups and not for businesses engaged in trade. Therefore, the consumer cooperatives did not have the proper legal protection essential for their business operations.The acts further prevented them from selling to people other than their members. 1. Voting is by members on a democratic (one-member, one-vote) basis. 2. Membership is open. 3. Equity is provided by members. 4. Equity ownership share of individual members is limited. 5. Net income is distributed to members as patronage refunds on a cost basis. 6. Dividends on equity capital are limited. 7. Exchange of goods and services at market prices. 8. Duty to educate. 9. Cash trading only. 10. No unusual risk assumption. 11. Political and religious neutrality. 12. Equality in membership (no discrimination y gender). Adapted from David Barton,â€Å"Principles,† in David Cobia (ed. ), Cooperatives in Agriculture. Englewood Cliffs, NJ: Prentice Hall, 1989. Some of the Rochdale Principles, such as democratic control (one-member, one-vote) and limited dividends on equity capital, are still followed by most cooperatives around the world. Other principles, such as ca sh trading, are clearly outdated in most countries where credit cards and (in agricultural co-ops) seasonal loans are the norm. As a set of guiding principles, they are not necessarily appropriate for all types of cooperatives in all locations.They are after all a product of a historical period and economy and were meant to govern a small retail store (see chapter 4 for further discussion of cooperative principles). The phenomenal success of the Rochdale cooperative, which is still in operation today, was just the boost that the cooperative movement in England needed. Rochdale became the cooperative beacon for others to follow. It provided the organizational pattern that became the prototype for other cooperatives and spurred on the cooperative movement in Europe and North America. PRINCIPLES & PRACTICES IN The Industrial and Provident Societies Act rovided both important legal protections for the cooperatives while also imposing some operating restrictions. It protected the propert y of the societies, gave binding legal authority for their rules, safeguarded the savings of their investors, allowed them to sell to non-members, and provided legal status so that an association could sue fraudulent officials. It allowed cooperatives to pay patronage refunds on purchases but limited dividends on shares of stock to five percent. Although members still faced unlimited liability for cooperative debts, share limits of ? 100 per member were enforced.The passage of the Industrial and Provident Societies Act of 1862 loosened some of the restrictions and provided limited liability for members, meaning they would be liable only for co-op debts less than or equal to the value of their stock. Share limits were increased to ? 200 per member and cooperatives were permitted to invest in other cooperatives. As a result of these changes, the organization of the North of England Co-operative Society became possible. Established in 1863 to create cost savings for members by purchasi ng a variety of goods in bulk, today the Co-operative Group comprises a family of businesses employed n a wide range of activities (food, finance, farms, funerals, etc. ). It is a unique consumer-owned business that is the largest of its kind in the world. THE 21ST CENTURY Historical development of cooperatives throughout the world The first cooperative law Rochdale cooperative principles 2 ? 9 The beginnings of cooperative credit During the 1840s, later called â€Å"the Hungry Forties,† famine and extreme hardship spread throughout Europe. A blight ruined potato crops in many European countries, although Ireland was the most severely hit, during 1845-47. The shortage of potatoes drove up other food prices.Low fishing yields further exacerbated the food shortage, which caused millions of deaths and led to severe economic depression, high unemployment, and political unrest in the region. The Communist Manifesto was published in 1848. During this same year, F. W. Raiffeisen, a mayor of a group of villages in Northern Germany, created a cooperative society to alleviate some of the suffering in his community. The cooperative gave potatoes and bread to the poor. He soon realized, however, that charity alone could not solve the problems of poor farmers; they needed to become self-sufficient and earn more money. Raiffeisen hen started to organize loan societies, which embraced various cooperative features. Although Raiffeisen continued to advocate self-help, his first societies were mainly efforts to transfer money from the rich to the poor. In 1862, he helped the rural farmers of the little town of Anhausen organize a truly cooperative loan society. Early agricultural marketing and farm supply cooperatives in Europe Denmark is generally regarded as the most outstanding example of early and successful cooperative farm marketing and farm supply organizations. 20 The first cooperative creamery in Denmark was established in 1875 at Kaslunde. The early ooperative creameries incorporated some significant improvements in the butter-making process, including a standardized grading system. The high quality butter was marketed under a government brand to reflect their supervision of the grading. The first cooperative creameries were very successful. News of their success and popularity spread to other rural areas of Denmark; many others were soon organized throughout the country. These developments took place without government assistance or subsidies. The early and striking success of cooperatives in Denmark can be primarily attributed to the role of the Folk High School.An institution unique to the country, this school educated young adults in rural areas. The schools were inspired by the philosopher and clergyman, Bishop Nikolai (N. S. F. ) Grundtvig (1783-1873), and popularized by Kristen Meanwhile, Herman Schulze had created a somewhat similar credit institution among artisans Kold, an educator. Grundtvig established the first in Eilenburg i n 1850. He further refined this model Folk High School in 1844; the one created by Kold in 1851, however, was more successful and widely to fit the credit needs of artisans and other smallscale industries and developed other credit organi- replicated.The mission of the schools was to enlighten Danish citizens (beyond what they were zations. Raiffeisen may have been familiar with learning in primary schools) so they could particithese organizations and used them to inform his pate in the governance of the kingdom. They were own co-op development efforts. Both the not meant to be vocational or cooperative training Raiffeisen and Schulze cooperative bank models schools but rather designed to expose students to rapidly spread across Europe. Features of both new ideas and experiences. Today, we would call models were used to form credit unions in North them liberal arts schools.Numerous such schools America. Incidentally, the Credit Union National still thrive in Denmark. Although suppor ted finanAssociation’s headquarters in Madison, Wisconsin was called â€Å"Raiffeisen House† for a number of years. cially by the state, they are free to set their own curricula and are required to be nonvocational and without examinations. 10 COOPERATIVES: CHAPTER Cooperatives around the world The cooperative movement gradually spread around the world in the 19th century (table 2. 1). Another notable cooperative advocate is Sir Horace Plunkett (1854-1932), an Irishman (who spent 10 years as a cattle rancher in the UnitedStates in the 1800s) famous for advocating the benefits of agricultural cooperatives in Ireland and beyond. 21 He was instrumental in creating an international cooperative movement and promoting the cooperative principle of political neutrality. The Irish Cooperative Organization Society (formerly the Irish Agricultural Organization Society), originally founded by Plunkett in 1894, is located in The Plunkett House in Dublin. Today, cooperative business es are found in nearly all countries, from the developing nations of Africa, Asia, and South America to the industrial countries of Europe and North America.Northern Europe, where the cooperative movement took hold very early, still contains a strong cooperative presence, especially in agriculture. Many of the cooperatives in these countries have long histories and are extremely successful. However, as is the case in the United States (see chapter 3), economic pressures have been met with cooperative mergers and consolidations. As a result, cooperative numbers in these countries appear quite low (tables 2. 2 and 2. 3). Cooperative numbers in India, even on a per capita basis, are by comparison astounding. In the case of India and other countries with relatively high ooperative numbers, this situation typically reflects the existence of numerous, local cooperatives. More cooperatives do not imply necessarily that the cooperative sector as a whole is stronger or more competitive, howe ver. The spread of the cooperative business model from 18th century England to such diverse countries as India, Korea and Uganda, points to the universal adaptability and diversity of the cooperative model. Cooperative businesses are found in nearly all countries, from the developing nations of Africa, Asia, and South America to the industrial countries of Europe and North America. PRINCIPLES PRACTICES IN THE 21ST CENTURY Historical development of cooperatives throughout the world Folk High Schools created trained, rural leadership. They also established bonds of trust among those who came to live and study at the schools. The students developed a willingness to think together, work together, and play together—in short, to cooperate. Although not an intended outcome, the spirit of cooperation produced in these schools has been, without doubt, an important factor in the growth of Denmark’s cooperative movement. 2 ? 11 Table 2. 1. Historical cooperative statistics for se lected countries CountryFirst co-op First co-op law Membership (% of population) Albania 1946 NA NA Austria 1794 1873 47. 4 Belgium 1848 1873 35. 4 Czech Republic 1852 1873 13. 4 Denmark 1851 NA 34. 2 Finland 1870 1901 45. 8 France 1750 1887 30. 1 Germany 1845 1867 27. 9 Greece 1780 1914 9. 9 Iceland 1844 1937 20. 0 Ireland 1859 1893 59. 5 Italy 1806 1886 13. 3 Lithuania 1869 1917 6. 8 Luxembourg 1808 1884 4. 8 Netherlands 1860 1855 41. 1 Norway 1851 1935 36. 4 Poland 1816 1920 NA Portugal 1871 1867 21. 9 Romania 1852 1903 28. 5 Russia 1825 1907 9. 5 Spain 1838 1885 11. 1 Sweden 1850 1895 53. 7 Switzerland 1816 1881 50. 1 Turkey 1863 867 12. 9 United Kingdom 1750 1852 16. 6 United States 1752 1865 56. 7 Yugoslavia 1870 1925 6. 5 NA = not available Source: Adapted from Shaffer, J. (1999). Historical dictionary of the cooperative movement. London: Scarecrow Press, Inc. (pp. 437-39). 12 COOPERATIVES: CHAPTER Region Number of countries Organizations Individual members Societies Africa 1 2 19 27,214 9,561,443 Americas 18 61 43,945 182,486,437 Asia 28 64 480,648 414,383,079 Europe 35 88 197,293 118,473,862 Total 93 232 749,100 724,904,821 Source: International Co-operative Alliance, www. coop. org/statistics. html (July 1,1998). Table 2. 3.Agriculture cooperative statistics from select countries Number of co-ops Country Membership (millions) Brazil 4,744 3. 74 Canada 7,880 14. 52 Columbia 1,936 4. 82 Denmark 1,446 1. 39 Egypt 6,992 4. 28 46 1. 07 23,573 17. 49 Finland France Germany 9,112 21. 64 India 446,784 182. 92 Israel 256 0. 03 Japan 3,860 42. 84 NA 0. 63 Morocco 9,635 0. 68 Norway 4,259 1. 59 Repub. Korea 7,669 17. 07 15,106 Historical development of cooperatives throughout the world Table 2. 2. Cooperatives and membership by international region 2 ? 4. 78 Mexico Sweden Switzerland Uganda United Kingdom United States Zambia 16 1. 51 3,131 0. 4 42 9. 04 27,076 156. 19 2,174 0. 57 Source: International Co-operative Alliance, www. coop. org/statistics. html (Apri l 26, 2002). PRINCIPLES & PRACTICES IN THE 21ST CENTURY 13 14 COOPERATIVES: CHAPTER The driving forces behind cooperative development in the United States include the following five interrelated dynamics: 1. Market failure (monopoly power, excess supply, missing markets, etc. ). 2. Economic crises (depressions and recessions). 3. New technology. 4. Farm organizations and cooperative advocates. 5. Favorable public policy (presidential interest, legislative initiatives at both state and federal evels, and judicial interpretation). The relative importance of these forces at different periods will become apparent as we trace the path of cooperative development. Since some of the most significant contributions Americans have made to the cooperative model and movement have been in the agricultural sector, farm cooperatives will dominate this discussion. PRINCIPLES & PRACTICES IN The first American cooperatives The first recognized cooperative business in the United States (a mutual insura nce company) was founded in 1752, almost a quarter-century before the birth of the country (America achieved independence in 1776).Benjamin Franklin, one of the signers of the Declaration of Independence, worked with other members of fire fighting associations to create the first successful fire insurance company in the colonies: The Philadelphia Contributionship for the Insurance of Houses from Loss by Fire. 24 Franklin had already formed the Union Fire Company in 1736, which became the model for volunteer fire fighting companies. Franklin had witnessed the success and importance of mutual societies when he was living in England. The Philadelphia Contributionship was based on a similar London association created in 1696. 25 Although European models and European immigrant cultures remained influential, it was in agriculture that co-ops began to take root in new and distinctive North American forms. † 26 Cooperative history, trends, Cooperative history, trends, and laws in the United States and laws in the United States C ooperatives are neither indigenous to the United States, nor are they an American invention. As Fairbairn reminds us,â€Å"The idea of the co-op was both imported by the colonists from Europe and also independently developed and adapted by settlers of European origin under North American conditions. †22 Pilgrims coming to he new world on the Mayflower in 1620 signed the Mayflower Compact, which described the operations of an organization, or constitution, with cooperative characteristics. Once they arrived, the early settlers worked together collectively to clear the land, build homes and communities, start farming, and provide protection for their families. 23 The overview of cooperative development in the United States provided here supports the idea that cooperatives in the United States are both an artifact of early settlers’ European heritage and a collective response to harsh living conditions in rural areas. ? Americ an farmers first attempted to organize in 1785 with the establishment of the Philadelphia Society for Promotion of Agriculture. The first formal farmer cooperatives were created in 1810: a dairy cooperative in Goshen, Connecticut, and a cheese manufacturing cooperative in South Trenton, New Jersey. On the heels of these organizations, other cooperatives involving different commodities were formed in many parts of the country (table 3. 1). There was no identified coordinated leadership and most cooperatives restricted their operations to their local community. Most of he early agricultural cooperatives were ultimately unsuccessful. THE 21ST CENTURY 15 Table 3. 1. Selected early cooperatives and mutuals in the United States Year Cooperative 1752 Philadelphia Contributionship for the Insurance of Houses from Loss by Fire (Philadelphia, Pennsylvania) 1810 Dairy cooperative (Goshen, Conneticut) and cheese cooperative (South Trenton, New Jersey) 1820 Hog marketing, slaughtering, and packi ng cooperative (Granville, Ohio) 1853 Irrigation cooperative (Tulare County, California) 1857 Grain elevator (Madison, Wisconsin) 1862 Tobacco marketing cooperative (Connecticut) 1863