The Huge Problem of Human Trafficking - 1258 Words

27 million people all over the world are currently being forced into human trafficking or modern day slavery, 161 countries including the US will be affected by human trafficking. 1 million children will be exploited by the commercial sex trade each year. Sex trafficking began in the 1700s in the United States. It hasn’t been stopped because it continues to increase over the years. Even though the law enforcement and people around the world could be strong enough to stop human trafficking, I believe this situation needs to be more focused on and stopped as soon as possible. Because Human Trafficking is increasing rapidly and Oklahoma is a cross-way for sex trafficking due to the interstates such as I-35, I-40 and I-44. Reading the†¦show more content†¦Rehabilitation for victims is available such as Freedom Place and Dream Center. Joy Friedman, a survivor of 27 years of sex trafficking in the United States, now serves as women’s program manager at Breaking Free, a Minnesota nonprofit group that helps women and children escape that world. On average, sex trafficking victims are between 12 and 14. It is estimated that between 100,000 and 300,000 U.S. children are sex slaves. Providing care for these victims is very important, their self-esteem is completely demolished and don’t know where to begin to fix themselves. On Aug. 7 Alaina Paige Lamecker, 23, was arrested by Tulsa police for making arrangements for a 14-year-old girl to engage in a set act in exchange for $120. Enhancing penalties for these kidnappers are being discussed and are planning to establish them as â€Å"sex offenders† for life. Not all of these crimes happen in Oklahoma but it is the most involved state. The â€Å"prostitutes† get charged with prostitution and for using Medias to advertise it. Jeannetta McCrary, 41, told lawmakers how she went from being a straight-A cheerleader in a middle class family to a life of sexual exploitation and prostitution as a victim of child trafficking in the 1980s. She started hanging out with older friends and, when she was 11, she went with some of them to a party at an apartment in Tulsa. She said she was drugged and awoke naked on a dirty mattress in a room she didShow MoreRelatedThe Human Of Human Trafficking Epidemic1448 Words   |  6 PagesThe Human Trafficking Epidemic Introduction Dai is a victim of human trafficking. She became a victim when she met a military man and fell in love. He then convinced her to to move to a remote location with him. She agreed and once she got there, she was beaten and raped. She was eventually able to escape, but the man had taken all of her forms of identification. This meant that she was unable to really get any help or start a new life. From there she became a street walker to help make money soRead MoreHuman Trafficking Is A Global Phenomenon902 Words   |  4 PagesIn a world with a little over 6 billion people, 27 million of them suffer from the injustice of human trafficking. Freedom. It s the thing we as all human being s strive for in life. The one thing we should all be promised when put into this world. To think that slavery is something that is over and done with would be an ignorant statement. Slavery is still happening at this very moment, just under our noses. When we think of slavery we recall the African Ameri can slave trade that had presumablyRead MoreHuman Trafficking: The Newest Form os Slavery Essay examples688 Words   |  3 PagesHuman trafficking, the newest form of slavery, had spread across the world, even in Kansas City (UNODC). Human trafficking is a form of forced labor, whether it may be working on farms to working as a prostitute (Kansas City Star). Human trafficking is considered one of the main criminal industries in the world (Polaris Project). Also, there are many forms of trafficking. The most common are sex trafficking or forced labor (Polaris Project). In many situations, traffickers are sex trafficking peopleRead MoreWays to Stop Human Trafficking1245 Words   |  5 PagesSolutions to End Human Trafficking In recent times, the number of human trafficking cases has skyrocketed through the roof. So, what exactly is human trafficking? Human trafficking is defined as a criminal activity, in which people are recruited, harboured, transported, bought or kidnapped for the purposes of exploitation. These exploitations include forced labour, child soldiery, sexual slavery, forced marriages and so on. Statistics show that the main victims of human trafficking consist of womenRead MoreHuman Trafficking : A Huge Impact On Global Politics971 Words   |  4 Pagesone of the biggest problems that we have†, said Jean-Max Bellerive, Haiti’s previous prime minster. What he s referring to is the human trafficking issue that has boomed in this country. Human trafficking has existed in Haiti for years, destroying families and individuals. The issue hasn t been this big until recent years, which I plan to look into. Human trafficking has become such a huge industry not only in Haiti, but also through the whole world causing it to have such a huge impact on globalRead MoreIts Time to Stop Child Trafficking Essay examples1663 Words   |  7 Pagesglobal organization and active in more than 190 countries and territories through country programmes and National Committees â€Å"The huge transnational industry of trafficking in human beings generates approximately up to $10 billion per year† (www.unicef.org). Even though child trafficking is an illegal and underground trading, there are still huge numbers of child trafficking by we are known. Nowadays, most countries have better laws to protect their own citizens. Moreover, as time goes by, people areRead MoreHuman Trafficking And Its Effects1404 Words   |  6 Pagesthe past, yet it has been exactly the opposite. An international office stated, â€Å" Only one out of 100 victims of trafficking is ever rescued. This means around only 24,000 out of the 2.4 million people enduring human trafficking will be spared,â₠¬  (â€Å"Combating Human Trafficking†). Human trafficking is still a very big problem across the world, even in the United States. Human trafficking has only increased over the past two decades. It is also not likely that a person being trafficked is only enduringRead MoreModern Human Of Human Trafficking983 Words   |  4 PagesModern Human Trafficking Human trafficking is defined as recruitment, concealing and transporting of individuals involuntarily for labor and sexual needs under fraudulent and forceful means (â€Å"Fact Sheet†). Modern day human trafficking first became a focus in 1994 when monitoring began. Human trafficking encompasses more individuals in slavery today then any previous time in history, with about 2.4 million trafficked globally (â€Å"Fact Sheet†). Human trafficking involves both the sex and labor traffickingRead MoreThe Issue Of Human And Sex Trafficking1272 Words   |  6 Pagesyou ask yourself. You become a lost soul who s left without any hope for a better tomorrow. No one ever believes it can happen to them , and it’s the last thing on anyone’s mind. â€Å"Human And Sex Trafficking is one of the fastest growing crimes in the world† ( stop the traffik. N.p., n.d. Web. 01 May 2016). It s such huge crime , yet the authorities can’t get it under control. These ho rrific events take place all over the world and there s only a few countries trying to due away with it. The publicRead MoreThe Trafficking of Women1516 Words   |  7 PagesThe Trafficking of Women The trafficking of women and girls for the purpose of prostitution is big business. It has been and still is one of the biggest industries worldwide. These unfortunate women and girls do not lead normal lives, but rather they are bought and sold as commodities. They also usually have no control over their lives and live in conditions of extreme poverty and abuse. Trafficking, debt bondage, forced labor, and other abuse is suffered by women all over the world and it is

Should Emergency Contraceptive Be Made For Teens

Should Emergency Contraceptive be Made Available to Teens? Emergency contraception, also known as the morning after pill, is one alternative to prevent pregnancy after unprotected sex. The morning after pill is only available by prescription and or over the counter (with proof of being 18 years or older). In 2006, the purchase age for the morning after pill was lowered to17. In the United States, there is an average of 1 million teen pregnancy reported every year. Of those 1 million girls, 38% of which depend on abortion as an alternative. Teenage girls age 13-16 are more like to result to abortion, since their access to obtain the morning after pill is less likely because of their age. It is known that most teens are private and keep lots of information about themselves from their parents. The Morning after pill has to be taken within the first 72 hours of unprotected sex to be effective. With that being said, a young teen girl (who has had unprotected sex) would have to openly tell her parents about a mistake she made just days before it happening in order for her parent to go to the drug store to purchase the emergency contraceptive. This option leaves younger teens with fewer resources to turn too. With the younger generation growing so quickly and becoming more and more aware about life, it can be difficult to think that some teens are not going to have sex. Emergency contraceptive should be available to everyone, so that everyone is given the same opportunity forShow MoreRelatedShould Emergency Contraceptives Be Available Over?1411 Words   |  6 PagesRebeca Martinez May 14, 2017 BIO 150 Professor Robinson Should emergency contraceptives be available over the counter to girls under the age of 18? Plan B or the ‘morning after pill’ as it is sometimes known is an emergency contraceptive that is can prevent a pregnancy if it is taken within 3 days of unprotected sex or if your birth control failed you such as if a condom breaks mid intercourse. The Plan B contain a higher concentrated level of levonorgestrel which is the same hormoneRead MoreThe Plan B Pill1608 Words   |  6 Pagesorder to exercise this right, women throughout the world need access to the different types of contraceptives, as well as to safe abortion services. While most contraceptives are used as preventative measures prior to or during intercourse, some methods can be used within a short time after unprotected intercourse or failed use of birth control, which are usually referred to as emergency contraceptive. Within the last 30 years, a number of approaches, which seem safe and efficacious, have been developedRead MoreEmergency Contraceptive Pills ( Ecps )989 Words   |  4 PagesEmergency Con traceptive Pills (ECPs) is a widely controversial debate between medical officials, teachers, parents, and teens. Most parents do not want to think about their teenage daughters engaging in sexual activities; yet, at some point, it is more than likely going to happen. The CDC reports showed in 2013 there were over 270,000 babies born to adolescents between the ages of 15-19 years old (1). This figure may seem high but has declined over the last two decades and reduced by 10% duringRead MorePersuasive Essay On Contraceptives1180 Words   |  5 Pagesliving on earth. A solution to this is contraceptives. We need to make them more affordable and accessible for everyone and everywhere in order to reduce population A question that is asked around when people get pregnant is, â€Å"Will you choose abortion, adoption, or parenting?† Those are just three of the options when others get pregnant. However, all of it could have been prevented by using contraceptives. In the article â€Å"High Teen Pregnancies Blamed on Contraceptives†, it states that, â€Å"Twenty eight percentRead MoreThe Importance Of Proper Sexual Education On Sex1015 Words   |  5 Pagesespecially, sexual education is very important and can truly impact a person’s life. Improper education on sex can lead to many life-changing mistakes. These blunders can be avoided with proper knowledge. Although students should be encouraged to remain abstinent, they should still be taught about contraception and practicing safe sex. With proper sexual education, abstinence rates will increase and the numbers of teenage parents will decrease. In today’s society, sex is everywhere. It is on TV,Read MoreBirth Control Essay931 Words   |  4 Pagesprohibition, which made it illegal to distribute any device, medicine or information designed to prevent conception, applied even to doctors. During the early 1900s, Margaret Sanger started the birth control movement in the United States. She and others opened clinics to provide women with information and devices. She and her followers were frequently jailed but were also able to change many laws. In 1930 the courts in New York State held that in certain cases the sale of contraceptives could be legalRead MoreExploring the Various Methods of Birth Control Essays1618 Words   |  7 Pagesbecome a controversial issue today in our society. The types of birth control that can be used vary, while the side effects may not be explained to women who use them. The types that can be used include emergency contraceptives, pills, rings, patches, and shots. Emergency contraceptives (ECPs), or plan B, are â€Å"hormones in the pill that act as an anabortifacient by thinning the lining of the uterus and preventing the newly-conceived child from implanting† (Warber 15). ECPs delay ovulationRead MoreThe Social Acceptance of Teen Pregnancy1006 Words   |  4 PagesTeen Pregnancy has become a constant form of societal acceptance. Amongst the ages of 15-19 three quarters out of a million of them ended up pregnant, while only a few of them had planned it. Because of hit television shows like 16 and Pregnant, Teen Mom, Teen Mom 2, and Teen Mom 3, media has made it acceptable for teens to attempt motherhood. In this case, teens are not taking in account the associated health risk and related issues like abortion, lack of care, and mental trauma. The children ofRead MoreThe Methods For Preventing Pregnancy1573 Words   |  7 Pagesexample is back in 1850 BCE Egyptians described how women used to introduce a device made of crocodile dung and fermented dough in their vagina. Other contraceptives methods that Egyptians used such as honey, placed plugs of gum and acacia in the vagina. Another example is Ancient Romans used a highly acidic concoction of fruit and nuts in the vagina. While these societies were trying to create different contraceptive methods, they came up with the barrier method which means that something was placedRead MoreWhy Abstinence Programs Don t Work1368 Words   |  6 Pagesdisease if they aren t abstinent. â€Å"a large majority (â…”) of teenagers in the us. are not currently sexually active and most teens have never had sexual intercourse† (stats and facts). Most teens in the u.s. are choosing to be abstinent. It helps to prove that abstinence programs are working in the u.s. â€Å"in 2006 and 2007 there was a slight increase in teen births (+3% in 2006) teen birth rate resumed its decrease in 2008†(stats and facts).The birth rates went up and then came back down. Abst inence programs

Rhetoric and Life Free Essays

Dylan Macknight Mrs. Womack Per. 6 14, September 2009. We will write a custom essay sample on Rhetoric and Life or any similar topic only for you Order Now Value of Life Essay Different authors use different techniques to persuade. The three main ways of persuading are through: pathos, which uses emotions, ethos, which proves their credibility, and logos, which implies the general message. Shakespeare, Lance Armstrong, and Amanda Ripley have all written articles arguing their opinion on the value of life. Of the three articles Lance Armstrong best persuades the audience with his argument that life is very valuable and that you could better your life from something negative, through his exceptional use of both logos and pathos. Armstrong applies the use of ethos very clearly in his article. For example, â€Å"I still don’t completely understand it; all I can do is tell you what happened†. This shows that he is writing credible work and that his ideas are non-bias. He is telling the story as is and he is not trying to lead you on. Lance also uses pathos to persuade his audience as well. An example of this would be when stated â€Å"I have cancer†. Cancer is a serious disease and the thought of having it draws on someone’s emotions quite strongly. This quote made the reader feel sympathy for him. Overall, Armstrong did the best job at persuading. In Hamlet’s Soliloquy, Shakespeare uses ethos, pathos, and logos as an attempt to persuade his audience, but is not as effective as Armstrong. Shakespeare uses logos the most in his work. When he states â€Å"To be or not to be, that is the question†, he is portraying the message of how much his own life is worth, personally, not how valuable life is a whole. That is one downfall in Shakespeare’s work compared to Armstrongs. Another reason Hamlet’s Soliloquy is not as successful at persuading is because in his writing there is no one else to compare and contrast their life with. Hamlet is written as somebody who is contemplating suicide. It is very hard to understand someone’s thoughts and interpret them as they were intended to be. This is what makes the soliloquy quite faulty in persuading the reader. Amanda Ripley voices her belief on what a life is worth in the article that she wrote for Time Magazine. She argued how much money one can assign to another’s life, and if different people should be worth more or less then others. Time Magazine and CNN took a poll last month stating, â€Å"86% of the people should have received the same amount†. Who is to say that the majority of humans are worth the same dollar amount and a select few should receive more money. Many people do not agree with the way Ripley argues her opinion in â€Å"What a Life is Worth†. She states, â€Å"I am proud of what my country tried to do, I think the intention is noble†. This shows that she had a previous opinion on the subject prior to the article that she had written. That adds a possibility that the article is prone to being bias towards her opinion. That is how Ripley failed to persuade her readers. Ultimately, of the three articles, Lance Armstrong best persuades his audience with his argument that life is very valuable and that you can better your life from something negative, through his exceptional use of logos and pathos. Many of his readers are left feeling completely persuaded by his value on life. How to cite Rhetoric and Life, Papers

Panera Bread Company free essay sample

SWOT Matrix Stakeholder Matrix Financial Ratios Financial Trend Graphs Responses to Questions Not Answered in the Presentation Business Strategy Functional Area Strategies Assessment of Panera Bread Company? s Strategic Performance Resources Value Chain Assessment of Panera Bread Company? s Financial Performance and Capabilities Strategic Issues Panera Bread Company Faces Management? s Values Organizational Culture Executive Summary: Our consulting team completed an analysis of Panera Bread Company mainly focusing on the opportunities and threats within the industry, Panera? competitive capabilities, and the company? s strengths and weaknesses. The following recommendations contain the opportunity or threat within the industry, the strength or weakness that allows Panera to pursue or defend against the critical issues and the tools needed to take immediate action. We recommend that Panera Bread Company: 1. Open cafes in untapped markets, and focus on utilizing franchising to achieve the desired 1:160,000 cafe: person ratio by 2010. We found that the restaurant industry life cycle is still in growth. This growth coupled with Panera? strong franchising capability offers a significant opportunity for Panera to pursue. To achieve this Panera must first use the current site selection and market analysis processes to chose ideal locations for new cafes in untapped markets. Panera should also utilize this process to assess the logistics necessary to support the potential locations. Next, Panera needs to utilize the established, stringent franchisee selection criteria to identify candidates that are a good fit, and then work with the selected franchisees using the existing franchise assistance programs to educate and train franchisees in Panera? unique brand, vision and culture. Once Panera sets up franchising systems in new markets, the company should measure success by whether or not the 1 cafe per 160,000 people per location by 2010. Panera also must assess the new franchisees based on the historical areas of success. 2. Bolster the current promotional strategy to a more aggressive soft-sell promotional strategy while still utilizing word-of-mouth tactics to increase first-time customer traffic. We found that customers are prone to give newly opened eating establishments a trial. Panera has underutilized potential in its promotional strategy to allow customers to know of newly opened cafes. Panera can pursue the opportunity within the industry if it strengthens the current promotional strategy to promote awareness. This helps Panera promote brand awareness to become a dominant leader in the bakery-cafe industry. To do this, the company must begin expanding to untapped and lowpenetrated markets where customers will not know much about the company. The company must then increase excitement about these new cafes before opening by using guerilla marketing. An example of this is hiring plain-clothed personnel to circulate future and current development sites and engage potential consumers by drumming up interest in cafe openings. The next implementation step is to distribute coded coupons with a two-week expiration period, and an additional coupon to be given to a friend. Success can be measured by tracking new customer foot traffic in the specific cafes and the new cafe? s sales volume in the first six months. 3. Implement the â€Å"Oven Fresh, To Go† program that will increase customers switching costs and reward buyer loyalty through progressive discounts based on levels of return patronage. Our analysis revealed that the restaurant industry is threatened by low switching costs and low customer loyalty. Our analysis revealed that Panera had strengths in buyer loyalty. Panera should first begin steps one month prior to the start of this service using signage and promotion. Next Panera should print menus that displaying the oven fresh option and distribute them at the point of sale. Panera should cross train employees on the oven fresh operational procedures of taking orders and bringing orders to customer? cars. Next Panera should purchase or lease 2 to 3 parking spots per location in close proximity to the door with signs for designated parking. Last Panera should place a pre-paid post card with survey questions inside to-go packaging and place customer loyalty punch card in packaging that rewards returning loyal customers. Panera should track the discounts given by customers. Because of the progressive nature of the discounts, Panera can identify its most loyal clientel e based on the level of the discount rate. 4. Broaden the product scope and service offering to include a wider array of light entrees, dinner fare, and beer and wine available after 4:30 at select locations nationwide. The new offerings will be paired with community events such as wine-tastings and fundraisers to bolster the perceived dinner atmosphere. Our analysis of the restaurant industry led us to determine that there were a large number of buyers available to firms providing an opportunity for increased market share. Our analysis of the competitive capabilities showed that Panera had an internal strength in research and development. Panera needs to utilize the extensive research and development skills to determine ideal menu offerings, portions, price, and locations suitable for beer and wine. The new product offerings will be introduced to a limited number of stores to determine customer response and verify the scalability to ensure quality. The successful food and alcohol items will be introduced to pre-determined ideal locations along with marketing and training support. The final implementation step will be a market survey question at the point-ofsales system that will determine the number of new dinner customers. The ultimate goal of this recommendation is to increase market share for Panera. Macro-Environment: The United States saw 3. 0% growth in the overall economy for the year 2006. Additionally, real disposable income increased by 2. 1% from the third quarter of 2005 until the end of 2006. The unemployment rate continued on a downward trend from a high of 6. 0% in 2003. Unemployment was 4. 65% in 2006. According to the Bureau of Labor Statistics, consumer expenditures were $48,398 and $2,794 was spent on food away from home per household. Because there was overall economic growth, consumer expenditures ere high, and unemployment was on a downward trend, the economy at large was in a healthy state. When economic conditions were perceived as good, consumers were more willing to spend excess income, as opposed to saving or investing. Therefore, consumers were more likely to spend money on eating out for various meals; this was an opportunity for the restaurant industry. The legal, regulator y and political environment was relatively stable in 2006. Because there was a stable regulatory and political environment, business owners were able to operate at a more functional level. Companies were not worried about significant changes to regulations which hinder business growth. Therefore, this stable environment was an opportunity for the industry. The population demographics for the U. S. consumer in 2006 were as follows. The population was 49. 27% male and 50. 37% female; the median age was 36. 4. About 15. 07% of the population was over 62 years old. The median income was $46,326 for a single earner household and $67,348 for a dual earner household. Of the total 299,398,484 consumers, 36. 43% lived in the South Region, 18. 8% in the Northeast Region, 22. 12% in the Midwest Region and 23. 16% lived in the West Region. In the U. S. 31. 7% of persons over the age of 25 were a high school graduate; 18. 3% held a Bachelor? s degree, and 9. 7% held an advanced degree. Because of the large number of variables and the diversity of the U. S. population across all descriptors, the restaurants industry? s target market was large and the individual buyers were small and numerous. This caused decreased competition over potential buyers, and therefore was an opportunity in the restaurant industry. There were two significant societal trends that emerged among restaurant industry stakeholders in 2006. First, the issues surrounding trans-fats in restaurants were coming to a head after a 2003 court case. Consumers called for a ban on trans-fats in restaurant food in many different states. Since this made restaurants appear to be the culprit, it decreased customer satisfaction with local restaurant establishments. This decrease was a treat to the industry. Second, the baby boomer generation was aging, and the children of the baby boomers were moving out. This increased the number of empty nesters in the U. S. With no children at home and both husband and wife working, the couple was less likely to arrive home and feel the need to cook dinner. This phenomenon led to more dinner outings and consumers looking for an establishment to eat a quick and quality meal. Because this increased the numbers of consumers looking to dine out, the aging baby boomer population increased the number of meal occasions and therefore was an opportunity for the industry. Industry Analysis: i. Industry Drivers: The market size of the industry was quite large. Commercial eating places accounted for about $345 billion†¦ The U. S. restaurant industry †¦ served about 70 billion meals and snack occasions, and was growing about 5 % annually. † Based on unit sales of $345 billion, sales volume of 70 billion and a growth rate of 5 % annually, we conclude that the market size of the restaurant industry was quite large and growing. Because when the mar ket size of the competing industry was growing, rivalry among competitors decreased, we conclude that decreased rivalry was a threat for the restaurant industry. The scope of the competitive rivalry was broad. Restaurant chains competed on regional, national and global levels. The product scope was also broad. The industry served breakfast, lunch, dinner and snack covering many ethnic tastes. Because geographic and product scope were wide, industry members competed in many geographic areas and over a wide array of product lines. Because competition was increased, we conclude that the scope of competitive rivalry was a threat for the industry. Market growth rate and position in the business cycle was in the growth stage. The U. S. restaurant industry†¦ served about 70 billion meals and snack occasions, and was growing about 5 % annually. † Because the industry was growing at a rate of 5 % annually we conclude that the industry was still in the growth stage. Because no indication was given that growth rate was declining, we conclude that the rate was not increasing at a decreased rate and therefore not approaching maturity. Because e xpanding buyer demand produced enough new business for all industry members to grow without using volume-boosting sales tactics to draw customers away rom rival enterprises, rivalry in the industry was decreased when the life cycle was in growth. Because rivalry decreased when the industry was in growth, we conclude that the growth rate was an opportunity for the industry. The number of buyers and their relative size in 2006 were as follows. â€Å"On a typical day, about 130 million U. S. consumers were food service patrons at an eating establishment – sales at commercial eating places averaged close to $1 billion daily. † Since 130 million consumers spent $1 billion daily, we conclude that on average, each consumer spent $7. 9 per day. Based on our analysis, we conclude that the number of buyers was large and their relative size was small. Because buyers have more power when they are large and few in number, we conclude that many small buyers was an opportunity for th e industry. The pace of technological innovation in product introduction was fast. â€Å"Most restaurants were quick to adapt their menu offerings to changing consumer tastes and eating preferences, frequently featuring heart-healthy, vegetarian, organic, low-calorie, and/or low-carb items on their menus. It was the norm at many restaurants to rotate some menu selections seasonally and to periodically introduce creative dishes in an effort to keep regular patrons coming back, attract more patrons, and remain competitive. † The constant change in consumer tastes and habits and the rate at which most competitors stayed on top of the changes made product competition very fierce. To stay competitive, establishments needed similar commitment to constant revision of menu items. We conclude that the fast pace of innovation in product introduction was a threat for the industry. Product differentiation in the industry was common. Industry members pursued differentiation strategies of one variety or another, seeking to set themselves apart from rivals via pricing, food quality, menu theme, signature menu selections, dining ambiance and atmosphere, service, convenience, and location. † Despite attempts to differentiate products, the restaurant industry operated in a pure competition environment where switching costs were low and there were many competitors. Because the industry products by nature were weakly differentiated, we conclude that the extent to which rivals differentiate their products was a threat to the industry. The learning and experience curve for the restaurant industry was low. â€Å"Just over 7 out of 10 eating and drinking places in the United States were independent single-unit establishments with fewer than 20 employees. † Because 70 % of competitors were restaurants who could open and close at any time, new entrants did not need large corporate backing and were free to open anywhere. The ability of so many small competitors to enter and compete in the industry indicated a steep learning curve. The steep learning curve and low capital requirement was threat to the industry because of the ease of rivals to enter the industry. i. Five Forces: Our analysis revealed that there were about 624,511 commercial eating locations in the industry. Because rivalry intensifies as the numbers of competitors increase and as competitors become more equal in size and competitive strength, we conclude that the high number of competitors was a threat for the industry. Based on industry sales of $ 345 billion, the leading competitor Starbucks had less than two percent of the market share. This fact coupled with the above mentioned 70% single unit establishments characterized the industry as having many competitors with very small market share. Because rivalry tends to be stronger when competitors are numerous or are of roughly equal size and in competitive strength, we conclude that the small relative size based on market share was a threat for the industry. Switching costs and buyer loyalty were low for the industry. â€Å"Consumers (especially those who ate out often) were prone to give newly opened eating establishments a trial†¦loyalty to existing restaurants was low when consumers perceived there were better dining alternatives. Because low switching costs and low buyer loyalty increase rivalry among competitors, we conclude that low switching costs and buyer loyalty were a threat to the industry. It was not more costly to exit the industry than continue to participate. â€Å"Many restaurants had fairly short lives. † Based on our previous analysis of market share, we determined competitors were small in size and can enter and exit with little capital requirements. Assets were sold easily and the workers in the industry were not entitled to significant job protection. Because rivals had low barriers to exit they did not resort to deep discounts to remain in business. Continuous new entrants increased rivalry. We conclude that the ease of entry was a threat and ease of exit was an opportunity for the industry. The industrys products were discretionary purchases. â€Å"The average U. S. consumer ate 76% of meals at home. † The fact that consumers could eat at home for less characterized the discretionary nature of the eating out option. Because discretionary spending was not necessary and represent consumers? first costs to cut in economic difficulty, we conclude that the discretionary nature of the purchase was a threat to the industry. iii. Changes to the Industry Structure and Competitive Environment: As of 2006, the restaurant industry was growing by 5% a year. Due to this growth rate there was room for more firms to enter the industry. This changed the industry structure in the coming years by introducing more competitors. However, since the market was not saturated, firms entering were in a business environment that allowed them to obtain new market share. Since the long-term growth rate was increasing there was an opportunity for new firms to gain the growing market share. The average U. S. consumer ate 76% of their meals at home. The average person in 2004 had $974 of income to spend on food purchases away from home. Customers were less likely to be loyal to a restaurant if they perceived a better option available to them. Patrons also used restaurants for more than just eating. Restaurants served as places where people could catch up on work, meet friends, and read the paper. The fact that majority of meals were eaten in the home and that restaurant spending was discretionary, coupled with the fickle and specific nature of the customer created strong competition among rivals, and resulted in a threat to firms. Marketing innovation in product and promotion was especially strong in the restaurant industry. Firms constantly updated their menus to accommodate new trends such as low calorie, organic, vegetarian, and heart healthy foods. Restaurants also utilized Wi-Fi and large television screens in order to enhance the experience for customers. Happy hours and other events served as promotion to attract new customers. The constant marketing pressures created complex rivalries between firms and resulted in an altered industry structure. The industry structure resulted in a business environment where firms diligently adapted and changed with updated marketing mixes. This constant change was a threat within the industry. Entry into the restaurant industry was marked by just over 7 of 10 eating and drinking places being independent, single-unit establishments with fewer than 20 employees. Exit from the industry was frequent and often firms were limited to short lives. The easy entry and exit of firms to and from the industry created a business environment that was fiercely competitive. The ease of new rivals entering and the large failure rate was a threat for firms within the industry. iv. Existing Rivals Competitive Capabilities Analysis: The case did not provide specific information about rivals? resources and strategic goals to formulate conclusive competitive capabilities. v. Key Success Factors: The key success factors in the restaurant industry were dictated by what consumers deemed necessary attributes to have and what allowed the business to profit. Consumers did not dine at particular places that did not possess these qualities because they lost value in their purchase. Also, there were many substitutes that offered the key factors to patrons instead. The particular key success factors related to the restaurant industry were: low-cost production efficiency, customer service, breadth of product line and selection, ability to respond quickly to shifting market conditions, overall consumer experience, image and reputation, and high consumer volume. The first key success factor was low-cost production efficiency, which was crucial in lowering prices for the consumer. When a restaurant could not keep costs low, the high costs were passed through to the consumer with a higher price. If customers did not believe the value in what they were buying was worth that high price, they did not pay for it. Since there were many competitors in the restaurant industry, the consumer shopped around for similar food at a lower price. Restaurants needed to keep these costs low to stay competitive and not risk bankruptcy. Customer service was another key success factor because it added value to the meal. The consumer was not just purchasing food; they were paying for the entire experience. A component of this was having pleasant employees in all customer contact positions. Good customer service skills that made the customer feel comfortable in the restaurant helped to keep customers coming back. When a waitress went above and beyond her normal duties to please a customer, the patron was likely to return because of the great experience offered. Exceeding customer expectations was crucial in attracting loyal customers who returned to the establishment. Another factor for success was having a wide breadth of product line and selection. Restaurants needed to offer many different kinds of dishes to attract a broad group of buyers. Some examples were serving chicken, beef, seafood, and vegetarian. If there were ten dishes or so within each of those categories, the restaurant was offering a large selection and a customer could find a meal they craved. Offering various types of dishes helped widen the breadth of what was offered, such as: breakfast, lunch, dinner, soups, salads, pasta, and sides. There were also various styles of food offered such as Mexican, bland, Cajun, Irish, Italian, Mediterranean, and more. Such a broad selection ensured that customers found what they were looking for. If the consumer saw multiple meals he or she as interested in, he or she returned. The fourth key success factor within the restaurant industry was the ability to respond quickly to shifting market conditions. Customers were constantly changing what they wanted, and restaurants needed to keep up with those changes. If a restaurant had an inability to change its menu, it could not compete with its rivals. Recently, consumers changed their needs to heart healthy, vegetarian, organic, low calorie, and low-carb. This also took into consideration seasonal changes. Soups became more prevalent in the winter than the summer. Certain seasonal soups like pumpkin, squash, and others were craved around the holidays, but not as much during other times in the year. Desserts and specialty beverages followed similar patterns. Restaurants needed to change their menus to satisfy customers? cravings and remain competitive within the industry. Having a good overall consumer experience was extremely important in the restaurant industry. This was crucial in building a loyal clientele that could promote the business through word-of-mouth tactics and regularly dined at the establishment. The overall experience took into consideration more than just food and customer service because it encompassed the entire value perceived by the consumer. This included price, food quality, quality of service, ambience and atmosphere, and having a variety of offerings. Without that great experience, a customer would not return and they could verbally damage the restaurant? s reputation when they told friends about their poor experience. This factor was important to build loyal customers and increase brand awareness. Image and reputation was another key success factor because this was what attracted customers to the establishment. This also created word-of-mouth advertising for a restaurant. When something happened to tarnish a restaurant? s reputation, patrons no longer dined there, which led the company to go out of business. Image and reputation was how consumers perceived the company, which could add value for the customer when it was extremely good. Another key success factor was having high consumer volume. No matter what type of eating establishment, having high customer foot traffic was essential for success. This increased brand recognition, word-of-mouth advertising, and sales. This factor was essential to success in the industry, without it, a restaurant was unable to grow, or even survive. These seven key success factors dictated the industry and how restaurants needed perform in order to remain competitive in the industry. The restaurant industry was purely competitive and extremely risky due to the large number of rivals. The seven factors were areas to focus on because that was what consumers deemed important. Critical Issues the Industry Faces: Our analysis led us to the following critical issues faced by the restaurant industry. There were many opportunities in the industry for businesses to capitalize on. According to the analysis of the industry drivers, we concluded that the business life cycle was still in growth and there was a capacity shortage in the industry. This was an opportunity for the industry. Based on our analysis of the five forces model, we concluded that there were many buyers in the industry with many choices in selection of products. This was also an opportunity for the industry. Based on our analysis of the industry drivers, five forces model, and the changes to the industry structure, we concluded that there were untapped markets and consumers were prone to give newly opened eating establishments a trial. Based on our analysis of the changes to the industry structure and the competitive environment and the five forces model, we concluded there was a threat to the industry in that there was low customer switching costs and low customer loyalty. Panera Bread Company’s Competitive Capabilities: i. Business Strategy: Panera Bread Company? s strategic intent was â€Å"to make Panera Bread a nationally recognized brand name and to be the dominant restaurant operator in the specialty bakery-cafe segment. † Panera intended to achieve this by â€Å"being better than the guy across the street† and implementing a successful business model. Panera? s business model satisfyed customers? needs through providing quality food in a casual setting that continued to bring customers in for the ambiance as well as the food. Panera achieved sufficient profits to cover the costs of providing this value to the customers by selling food in the cafes and by collecting franchising fees and a percentage of franchisee sales. Management intended to grow the number of Panera Bread locations by 17% annually and expand further into suburban markets. Panera focused on achieving a 1 cafe per 160,000 people per location ratio by 2010 through effective use of franchising. Panera intended to build a loyal clientele by employing a superior business model and offering artisan breads as a base of a high quality menu that changed to reflect evolving consumer tastes. The prevailing market in which Panera operated experienced 5% growth in 2006. Thus Panera? s strategy of growth was in sync with market conditions. Furthermore, by focusing on building a loyal clientele through quality breads and a menu that suits customers tastes, Panera tailored the strategy to strengths the company already possessed. Panera? ability to create well crafted, predictive strategies and adapt well to changing conditions with reactive strategies indicated that Panera? s strategy was a dynamic fit to the company and market. Therefore, Panera? s strategy was a good fit for the company. Operating in an almost pure competition environment, Panera faced threats from low cost and differentiated products. Panera employed a best cost provider strategy to take advantage of the large amount of value-conscious buyers who want a good meal and pleasant dining experience at an affordable price. Taking a position as best cost provider, in conjunction with a commitment to â€Å"providing crave-able food that people trust, served in a warm, community gathering place by associates who make guests feel comfortable† helped Panera achieve a strong strategy, but the competitive nature of the industry does not permit the strength of Panera? s strategy to become a competitive advantage. Panera had 0. 5409% market share of the $345 billion annual sales in the restaurant industry. Though Panera was not a dominant operator, this was a relatively big market share, given the nurture of the industry. The company? s profits and number of locations grew from 2002 to 2006. Panera? s strategy led to a strong financial position and a sizable market share. Because Panera? s strategy was a good fit for the company, was strong in the competitive industry, and was financially successful, we concluded that Panera? s strategy was working very well and gave the company a competitive position in the industry. Therefore we feel Panera? s overall strategy, as well as its strategy to grow the business and build a loyal clientele was a strength. ii. Functional Area Strategies: Panera? s marketing strategy contained three distinct initiatives. The first aimed to raise the quality of awareness about Panera by focusing on quality crave-able food the consumer can trust, and by enhancing the appeal of its bakery-cafes as gathering places. The second initiative focused on boosting awareness and trials of Panera at multiple meal times. The third initiative was to increase consumers? perception of Panera as a dinner option. Throughout the entire marketing strategy Panera avoided hard-sell, in-your-face advertising. Panera preferred consumers â€Å"gently collide† with and discover the brand. As Panera performed well financially in past years, this marketing strategy was successful. However our analysis led us to conclude there was an untapped potential in the soft-sell marketing technique. This was a weakness that Panera must bolster to pursue industry opportunities. Panera? s production and distribution strategy was to use economies of scale and centralize operations for the dough making process. There were 17 regional fresh dough facilities to service the 1,027 Panera bakery-cafe locations. By controlling the process at central locations Panera was able to ensure consistent quality and dough making efficiency. Panera? s production strategy supports the overall strategic intent of being better than the guy across the street and ensures quality to keep customers coming back. Because Panera? s production strategy supported the company? s overarching strategic goals, we concluded that the strategy was working well and was a strength for Panera. Panera had a unique franchise system. Each franchise license was for a multi unit deal, usually for 15 bakery-cafes to be opened over six years. Panera only granted licenses to applicants who met stringent criteria. These criteria included a net worth of $7. 5 million or more, access to resources that would allow for the expansion of 15 locations, real estate and multi unit restaurant operator experience and commitment to Panera? s brand, culture and passion. Historically, Panera? s ambitious franchising model was a success. Franchisees indicated a high level of satisfaction with Panera Bread Company? s concept, support and leadership. Likewise, Panera reported satisfaction with the quality and pace of franchisee openings and the franchisees? perations. Panera committed limited fiscal resources to franchising; the company did not â€Å"finance franchisee construction of area development payment, or hold any equity in any of the franchise-operated bakery-cafes. † Because the franchising model supported the company? s intent to grow to a dominant restaurant operator, we concluded Panera? s franchising system was a streng th. Panera committed to constantly staying in tune with consumers? changing tastes for the base of the research and development strategy. Panera regularly reviewed the menu and revised the options to sustain customer interest. When developing new products, Panera first made the menu items in test kitchens before introducing them in a select few bakery-cafes. Panera used the test kitchens and select rollouts to determine customer response and ensure that the products could be produced in mass quantities and still maintain the high quality standards associated with the Panera brand. The successful products were then introduced in all the chain locations and integrated into menus. Because it helped keep up the Panera standard for quality food that customers craved, the research and development aspect of Panera? s strategy supported the marketing strategy. Furthermore, by ensuring consistently high quality food that consumers depended on, Panera? s extensive research and development supported the company? s strategic goal of becoming a dominant operator in the restaurant industry. iii. Assessment of Panera Bread Company’s Strategic Performance: -Business Strategy Performance The strategic intent of Panera was to become a nationally recognized brand and dominant operator in the specialty bakery-cafe segment. In 2005 Panera Bread was the highest rated for the fourth year in a row among competitors in the Sandleman Associates national customer satisfaction survey. Panera had also won â€Å"best of† awards in 36 states and across a range of markets. In addition, â€Å"J. D. Power and Associates? 2004 restaurant satisfaction study of 55,000 customers ranked Panera Bread highest among quick-service restaurants in the Midwest and Northeast regions of the United States in all categories, which included environment, meal, service, and cost. † Panera created this nationwide renown through the successful implementation of the company? s business model. In 2006 Panera opened 155 company and franchise owned cafes bringing the total units to 1,027 in 36 states. The continued expansion of cafes in new markets showed that Panera was operating successfully within the framework of the intended strategy. However, Panera managed to open only 1 cafe per 330,000 by 2006. So, although Panera had begun the process of increased penetration into markets, the benchmark given of 1 cafe per 160,000 people in 2010 at the time of the case had not been reached. Therefore a complete analysis of the success of the growth strategy was not possible. Panera differentiated the bakery-cafes by implementing several important menu changes that addressed the targeted consumer needs and trends. The addition of â€Å"good carb† breads, antibiotic-free chicken, and an artisan line of sweet goods were employed as part of a differentiation strategy. In 2005-2006 Panera introduced the G2 concept in an attempt to bolster the dining environment, thus providing more value for the customer. There was no data to support or deny the effectiveness of these strategic moves. -Functional Area Strategic Performance Due to fact that the Panera won considerable accolades in consumer satisfaction, we determined that its marketing initiative of developing customer awareness of the quality and trust-worthiness of the company? s food was working. The second initiative of boosting awareness and trial of dining at Panera Bread at multiple meal times had not been shown operationally. Therefore, we were not able to determine the performance of this strategy. The marketing data showed that, â€Å"85 % of consumers who were aware that there was a Panera Bread bakery-cafe in their community or neighborhood had dined at Panera on at least one occasion. † From this data, we concluded that the strategy was sound to pursue and specifically implement. The third initiative of increasing consumers? perception of Panera as a dinner option had not yet been implemented with specific steps. The marketing research showed that 81% of consumers indicated a â€Å"considerable willingness† to try Panera at other meal times which supported following this strategy into the implementation phase. Panera? s production and distribution goal was to ensure lowered costs and quality control with a strategy of centralized locations taking advantage of economies of scale. The quality of the product was evidenced by the many â€Å"best of† awards and other consumer satisfaction accolades. The lowered costs due to economies of scale and the high quality of the products indicate that Panera? production and distribution strategy was successfully implemented and executed. Panera pursued a unique franchising model based on multi-unit, multi-year deals with franchisees who were selected based on stringent criteria. The franchised cafes performed better in return on equity investments and average weekly and annual sales than company-owned cafes and were also equally or slightly m ore profitable. The measured success of the franchisee owned stores showed that the franchising model strategy was performing well. The research and development strategy was to stay in tune with customers? changing tastes. The implementation consisted of regularly reviewing and revising the menus, and the use of test kitchens for exploring new products and determining customer response. In 2003 Panera scored the highest level of customer loyalty among quick-casual restaurants, according to a study conducted by TNS Intersearch. This customer loyalty indicated the success of Panera in anticipating customer needs through the company? s research and development strategy. iv. Resources: Panera had skills and expertise in sight selection and cafe environment. They chose sights and cafe environment by the following method. Based on analysis of this information, including the use of predictive modeling using proprietary software, Panera developed projections of sales and return on investment for candidate sites. † This recourse was difficult but not impossible to copy. The length of time it would last depended on how hard competitors chose to work to develop similar technology. This resource was really c ompetitively superior because no other competitors had it. It could not be trumped by rival? s resources because the same software had to be developed before competitors could use it. Because this resource was hard to copy, competitively superior, potentially long lasting and could not be trumped by rivals? resources, the site selection and cafe environment was a competitive capability. This competitive capability was a strength that gave Panera a competitive advantage. Our analysis revealed that Panera? s advertising and promotion strategy was too weak. They had underutilized promotion potential. Panera? s strategy was to raise the quality of awareness by the â€Å"caliber and appeal of its breads and baked goods, by hammering the theme â€Å"food you crave, food you can trust. Panera also aimed to â€Å"raise awareness and boost trial of dining at Panera Bread at multiple meal times (breakfast, lunch, â€Å"chill out† times, and dinner. )† Panera avoided hard-sell approaches, preferring â€Å"instead to employ a range of ways to softly drop the Panera Bread name into the midst of consumers as they moved through their lives and let them „ge ntly collide? with the brand; the idea was to let consumers „discover? Panera Bread and then convert them into loyal customers by providing a very satisfying dining experience. † This approach was a great concept and successful to an extent, however we conclude that because many of Panera? competitors were using more aggressive promotion, the current strategy was not aggressive enough. â€Å"Management claimed that the company? s fresh- dough-making capability provided a competitive advantage by ensuring consistent quality and dough-making efficiency. † Because this dough making capability allowed Panera to maximize the production capacity, used no preservatives, did not freeze the product and control the quality of the dough by making it themselves, this recourse was hard to copy. How long it would last depended on strengthening competitor capabilities and their interest in the dough making market. Based on the first two tests, we conclude that this capability was really competitively superior and could not be trumped by rivals? capabilities and therefore a competitive advantage. Panera? s franchise system used superior intellectual capital with the use experienced and capable workforce. The success of the franchise system was an example of proven managerial know-how. The site selection software granted the franchises cutting-edge knowledge in technology to choose locations and cafe environments. The stringent franchisee requirements employed only the most dedicated, well capitalized and capable franchisees as managers. The franchise system was hard to copy because of the stringent requirements for the franchisees, managerial know-how and the proprietary site selection software. Site selection system would tend to last because of how difficult it was to copy and could not be trumped by rivals because it was so rare, and was characterized by a gradual learning curve. This analysis led us to the conclusion that Panera? s franchise system was a distinct competitive capability and therefore gave Panera a competitive advantage. The product research and development program was also an example of Panera? superior intellectual capital. â€Å"Product development was focused on providing food that customers would crave and trust to be tasty. New menu items were developed in test kitchens and then introduced in a limited number of the bakery-cafes to determine customer response and verify that preparation and operating procedures resulted in product consistency and high quality standards. If successful, they were then rolled out system wide. † The research and development system was hard to copy because of the gradual learning curve and constant need for revision. Because every competitor was also engaged in tactics to improve product development, we conclude that this intellectual capital was only hard to copy in Panera? s specific product line. Because it was not generally hard to copy we do not conclude that it was competitively superior. Based on our analysis, we conclude that Panera? s product research and development was a resource capability and therefore strength, but it was not a competitive advantage because many competitors have the same resources. Panera? s financial position was an important resource. Panera had a low debt to equity ratio. In 1998 this strategy began with the sale of Au Bon Pain for 73 million in cash. This strategy was well served by the franchise system. â€Å"Panera did not finance franchisee construction or area development agreement payments or hold an equity interest in any of the franchise- operated bakery-cafes. † The franchise system allowed Panera to keep long term levels debt low. This allowed Panera to use cash reserves and or take on long term debt at lower costs when capital was necessary to seize opportunities. Panera? s financial position was a resource capability because it was hard to copy. The resource tended to last long because the franchise system kept debt low. It was not really competitively superior because other competitors could have had similar financial positions. Because this capability was hard to copy but it was not competitively superior, we conclude that it was a capability and there for strength, but not a competitive advantage because others may have a similar financial position. v. Value Chain: -Inbound Logistics The case does not provide enough information to comment on the inbound logistics that Panera has with suppliers. However, each franchisee purchased dough directly from Panera Bread. Panera had an interest in each of the franchised stores succeeding because the company received 4%-5% royalties from sales continually. This meant Panera as the supplier had an interest to keep prices of dough as low as possible to maintain viable franchise operations. -Operations Panera provided and required comprehensive front and back of house training, market analysis, and bakery-cafe certification. This corporate level tactic impacted the company? franchised and company owned stores by enabling Panera to develop systems used by all the cafes thus applying economies of scale to operations. Since each cafe-bakery did not have to develop its own operations structure this reduced costs for each store. In addition, the methods Panera introduced to each store had proven historically successful, thus increased the learning curve for a new cafe and lowered costs. Panera had a policy to not finance new franchisees, area development payment agreements, or hold any equity in the new cafes. This operational model resulted in minimal long-term debt and low capital intensity to expand the Panera brand. All the cafes offered an assortment of 20-plus varieties of bread baked daily and as of 2006 at least 22 types of sandwiches. Each of these breads and sandwiches were regularly reviewed to determine whether the products matched regular customer needs, new consumer trends, and seasonal relevance. The complexity of the product line enabled Panera to match menu items with a variety of customer needs. This process ensured that weak selling items would be removed limited excess inventory. Outbound logistics Each franchisee purchased dough directly from Panera Bread. Each dough making facility was able to produce dough for six bakeries. The fresh dough was sold to both companyowned and franchised bakery-cafes at a delivered cost not to exceed 27% of the retail value of the product. These costs margins were achieved by producing the dough at central locations employing economies o f scale. -Sales and Marketing Panera used focus groups to determine customer food and drink preferences, and price points. This work was done by only a few individuals at the corporate level and scaled to the rest of the cafes. The existing company and franchise owned cafes would be able to take advantage of this market information and reduce costs associated with sales and marketing information. The franchising model Panera used required the franchisee to pay 0. 7% of total sales to a national advertising fund and 0. 4 % of total sales as a marketing administration fee. Franchisees were also required to spend 2. 0 % of total sales on advertising in local markets. Panera contributed similar amounts of capital from the company owned stores. Requiring the franchise owned cafes to pay a significant portion of marketing costs allowed Panera Bread to lower the company? s capital contribution. -Research and Development New menu items were rolled out in limited cafes and developed in test kitchens prior to nationwide release. This process addressed two cost drivers. First, by employing economies of scale individual cafes will not have to spend resources and capital investing in the development of new menu items. Second, through the expertise of the advanced research and development department Panera ensured both quality of product and process. This resulted in less product waste and increased customer satisfaction and in turn lowered costs. -Integrated Value Chain Effect Panera Bread utilized both structural and executional cost drivers to lower costs on the value chain particularly in inbound logistics, operations, outbound logistics, sales and marketing, and research and development. The cost reduction across the value chain gave Panera a strong capability. vi. Assessment of Panera Bread Company’s Financial Performance and Capabilities: Panera Bread Company showed growth in its profitability from 2002 to 2006, but there were no industry standards presented to compare the numbers in relation to the industry and individual competitors. Panera Bread Company stated a desired growth rate of 17% each year, and the sustainable growth rates from 2003 to 2006 were all above this desired rate (See Financial Ratios Section), but the internal growth rates were slightly lower for these years (See Financial Ratios Sections). For the most part, Panera Bread Company showed consistent results for the profitability financial ratios calculated. Therefore the company maintained management? s objectives and values each year. Panera? s ability to maintain cash reserves allowed the company to expand and open new cafes while maintaining management? s goal of not taking on large amounts of long-term debt. Panera Bread Company showed increased revenues as the number of cafes increased, which shows company growth (See Financial Trend Graphs Section). Also, Panera? current ratio was 1. 16 in 2006, which shows the company was able to satisfy all current obligations from operating activities without the need for long-term financing. Since Panera strives to decrease long-term debt, the cash reserves could be used for expansion without the need to restrict assets for future obligations. The company presented low total debt and debt-toequity ratios which allowed the company to avoid overleveraging itself. This also left so me capacity for the company to take on long-term debt if deemed necessary during expansion. The company created a strong financial position for itself by having available cash reserves and diminishing the amount of long-term debt assumed. This created an opportunity for expansion. vii. Strategic Issues Panera Bread Company Faces: The strategic issues that Panera faced were as follows. Our first strategic issue was Panera? s potential to use its internal franchising capabilities to take advantage of the fact that the industry life cycle remained in its growth phase. The second strategic issue Panera faced was how to alter its existing promotion strategy in untapped markets in order to take advantage of the opportunity presented by customer? s willingness to try new restaurants. The third strategic issue was how Panera could use its internal capability to build loyal clientele to defend against the threat of low switching costs and low customer loyalty. The final strategic issue was how Panera could use its internal capability of advanced research and development skills to take advantage of the large number of buyers within the industry. iii. Management’s Values: Management valued the enthusiasm Panera Bread cafes showed for the quality and value of the products offered. The main example was in the company? s dough making capabilities. Panera believed that actions spoke louder than words, so the company needed to show the high quality of its food to the customers. Management believed that the â€Å"attractive menu and the dining ambience of its bakery-cafes provided significant growth opportunity, despite the fiercely competitive nature of the restaurant industry†. Management strived to become the dominant operator within the bakery-cafe segment as well as a leader in the specialty bread segment while making its brand name nationally recognized. Another key value within Panera? s management was maintaining a debt-free balance sheet. The ability to uphold this value came from the company? s franchising model because the franchisees financed the majority of the cafe building expenses. Management stressed the quality of the food and service offered and knew that all other goals, such as expansion, recognition, and holding a higher market share, would simply fall into place as a result. x. Organizational Culture: Panera Bread Company? s organizational culture began with the overall company and the dough-making facilities and spread out to the bakery cafes, whether company owned or franchised. Panera Bread Company was centered on its dough-making capabilities. The company guaranteed freshness and high quality in each dough it created. The dough was then passed to the cafes, where it was baked fresh and delivered to the customer. The quality controls within the company were maintained through the entire process to ensure that the customer would be pleased with his purchase. Quality was the basis for success, and quality was what the company relied on to generate loyal customers. Franchising was also a crucial aspect to Panera? s organizational culture because cafes were where the majority of customer contact occurred, and it was the basis for some of management? s values. Panera? s franchising model was extremely stringent, so only certain individuals were able to have cafes. There were eight criteria that had to be met in order to be considered, and a passion for fresh bread was one of them. Panera ensured that each franchisee had the capital and prior knowledge necessary to succeed. The stringent criteria and Panera? s site selection technology provided a strong basis for cafe success, which in turn led to a strong and satisfying organizational culture. Although Panera did not own the franchised cafes, the company dictated where supplies could be obtained to ensure quality. Panera also trained the franchisees so they could operate on their own successfully, but turn to the company for guidance when necessary. The open environment was helpful without it being too overbearing. The strength in the organizational culture was a contributing factor to Panera? success and continued growth. Appendices i. ii. iii. iv. v. SWOT Matrix Stakeholder Matrix Financial Ratios (See attached Excel file) Financial Trend Graphs Responses to Questions Not Answered in the Presentation i. SWOT Matrix STRENGTHS: -Strong and attainable growth strategy -Ability to build a loyal clientele -The business model -Franchising system site selection and proprietary software -Research and Develop ment Product Innovation -Financial position – lack of long term debt -81% of frequent and moderately frequent customers indicated a willingness to try Panera for multiple meal times WEAKNESSES: -Under utilized potential in promotion strategy -Frequent diners only come at one meal time per day -Only located regionally OPPORTUNITIES: -The industry life cycle is still in growth -Low cost substitutes viewed as lower quality value -Large number of small buyers in the industry (Lack of buyer bargaining power) -Buyers are characterized as likely to give new restaurants a try THREATS: -Low switching costs/low customer loyalty -Product is a discretionary purchase -Substitutes are convenient and lower priced -Wide breadth of competitive rivalry -Steep learning curve ii. Stakeholder Matrix Stakeholders Companies, Groups, And Individuals Type/Nature of the Relationship/ What We Do For Each of Them -A chain of cafes perceived as a neighborhood bakerycafe which can be found in various locations around the U. S. and quality is consistent in all locations Needs How We Satisfy Those Needs Customers -U. S. Consumers -A quality food option which is perceived as a good value -A pleasant dining experience with good service and a warm ambiance -By providing quality food in a casual setting that continued to bring customers in for the ambiance and the food -Creating food consumers crave and can trust at all locations Competitors -Independent single-unit establishments with fewer than 20 employees -Competed on a local level, as Panera desired to be seen as the local, neighborhood cafe and gathering place -Fast-casual restaurants -Competed on inviting dining environment, quality of food and enticing menus -Commercial eating institutions -Competed on price, service, ambiance, overall experience and convenience -Provide a successful franchising model to be pursued by highly -Preopening assistance with market -Provided market analysis and site selection assistance, lease review, Employees -Franchisees capitalized, experienced and passionate individuals analysis and site selection, training programs, leadership new store opening assistance, a comprehensive initial training program, and a program for hourly employees, benchmarking data regarding costs and profit margins, company developed marketing and advertising programs, neighborhood marketing assistance Shareholders -Owners of the 31,313 shares outstanding -The community of the regional markets of company and franchised cafes Provided a stable company to invest in -Do not pay dividends -provide a gathering place for locals and visitors and support the community the locations operate in -A food option and company that adds value to its product and the community at large -Panera sponsored local community charity events Community iv. Financial Trend Graphs: Net Income 70000 Net Income (Millions) 60000 50000 40000 30000 20000 10000 0 2002 2003 2004 Year 2005 2006 This figure shows the net income for Panera Bre ad Company from 2002-2006. It depicts a steady increase in net income each year. Net Cash Provided by Operating Activities Nat Cash Provided by Operating Activities (Millions) 120000 100000 80000 60000 40000 20000 0 2002 2003 2004 Year 2005 2006 This figure depicts the net cash provided by operating activities for Panera Bread Company from 2002 to 2006. It shows an increase over time, except from 2005 to 2006. Open Cafes 700 Number of Cafes Open 600 500 400 300 200 100 0 2000 2001 2002 2003 2004 2005 2006 Franchised Cafes Company Owned Cafes Year This figure shows the number of cafes opened at the end of each year. It depicts growth within the company. It also shows that franchise-owned cafes are more prevalent than company-owned ones, which shows success in the company? s franchising model. Store Revenues 2500 Store Revenues (millions) 2000 1500 1000 500 0 2000 2001 2002 2003 Year 2004 2005 2006 This graph shows a steady increase in revenues for each cafe over time. v. Responses to Questions Not Answered in the Presentation: Alterations to Opening Cafes in Untapped and Low Penetrated Markets Recommendation Our recommendation needed to be altered to provide a separate action plan from recommendation to pursue a more aggressive soft-sell promotion strategy. We altered this recommendation by moving Panera? s focus when opening new bakery-cafes using the superior franchising model to solely untapped markets. These untapped markets would allow for sufficient growth to achieve the desired 1:160,000 ratio. Alterations to the More Aggressive Soft-Sell Promotional Strategy Recommendation: Recommendation two needed to be altered from a marketing strategy to a purely promotional strategy. Panera needed to promote its quality menu by implementing the suggested promotional strategies in its bakery cafes. The purpose of the promotional campaign was to bring new customers into the cafes. This satisfied the opportunity within the industry that customers are prone to try newly opened eating establishments in their community. The campaign needed to be implemented in untapped and low-penetrated markets in order to develop brand awareness by attracting new patrons. Though it may help, it will not be as successful in the highly-penetrated markets because Panera is already an established company with high brand awareness and loyal customers. Alterations to Implementation of â€Å"Oven Fresh, To Go† Program Recommendation In response to your concerns regarding recommendation three, we agree that our implementation of â€Å"Oven Fresh, To Go† did not specifically address the low switching cost threat by rewarding return customers for their loyalty. To resolve this issue, we altered the implementation steps to include a punch card in the to-go packaging that would reward existing â€Å"Oven Fresh, To Go† customers for their loyalty and raze their switching costs with progressive discounts based on their level of return patronage. Alterations to Broaden Product Scope Recommendation During the presentation of the recommendations there was concern that recommendation 4 did not adequately address the goal of increasing market share. The primary concern was that offering an expanded dinner menu after 430 pm would not be incentive enough to overcome factors of image, location, and substitutes for Panera to obtain a relevant increase in market share. To bolster the strength of our recommendation and overcome the aforementioned hurdles to success we have amended our recommendation to include the addition of beer and wine at select Panera locations. A Panera site will qualify for alcohol consideration if the area demographics and local legal and regulatory environment are ideal. Selected locations will participate in wine-tasting and other events to engage the surrounding community. The combination of new menu items and select sites serving alcohol will create a new and lively experience for dining at Panera.

U.S. general john buford Essays - Military Personnel, John Buford

U.S. general john buford John buford was a U.S. general who was a cavalry leader, he graduated at West Point Military Academy in 1848. He was best known for being in the first battle at gettysburg. In november of 1861 he was promoted to Assistant Inspector General with the rank as a major. He died december 16 1863, at 2 p.m from typhoid. When they buried him Abraham lincoln was one of the people who was at his funeral, But his wife could not attend his funeral due to an illness that she had. In 1862 during the second battle of bull run he was wounded in his knee by a spent bullet when he got hit and the word got to the union the newspaper said he died but he was actually fine and went on to fight in many wars and did great deeds. In 1863 he went outside of gettysburg and dismounted his men to block the push onto A.P hill, He served in texas against the sioux in the utah war and bleeding kansas. He had fought in many wars sometimes even against his best friends. In the retreat of gettysburg he chased the confederate all the way to Warrenton Virginia and had many battles there. The town of buford wyoming was sold to a Vietnamese man for $900,000. John buford saw his first action at Chancellorsville campaign. He was often seen at the frontlines encouraging his men to get up and fight, he was often referred as old steadfast. Hooker relieved john buford of his cavalry commander and put in his place alfred pleasonton but later regretted his decision so he put john buford in command of the 1st division. After a day long fight at brandy station they won and his division provided key information where the enemy was going to be he also ordered a general withdraw.

Service blueprinting Essay Example

Service blueprinting Essay Example Service blueprinting Essay Service blueprinting Essay Group Fernando Simoom Group Fernando Simoom noticed that they had some inefficiencies at one of their dealerships. When they took a closer look they found out that only 60% of the jobs were finished on time. In terms of value-creation for the customer It Is clear that this has to Improve. If they took a look to the value-creation for the company their biggest struggle was that there was only value-creation during 40% of their paid work. To solve these problems SGF decided to make a Service Blueprint. This Is a model that ascribes the nature and the characteristics of the service Interaction. The process of the customer is the most Important and everything of the service blueprint Is build around this. The emphasis Lies on the customer experience. Making a blueprint can lead to some Important Insights. Firstly It provides you a platform that shows you how your company Is working on the level of services. It makes clear to every employee what his role In the process Is. It also makes It easier to deliberate with your co- workers. Another advantage is that everyone in De company can see how the customer experiences the process. By comparing the as is Service Blueprint with the blueprint of what you want to achieve you can see the adaptations that need to be made. The moments of truth become visible and show you at which points during the process it is very important to be committed with your customer. The service blueprint of SGF shows that a lot of things can be improved. A first problem is that the front-office workers have no idea what the problem with the car might be. This ensures that when the porter brings the car to the technician he has to determine he problem, then he has to inform the front-office worker who has to call the customer to ask if the technician may repair the car. In the mean time the porter brings the car back to the car storage so the technician can work on another car while waiting on the response of the front-office worker. This is a serious waste of time. A possible solution for this might be that the front-office worker gets a training so that he already can determine the problem. By doing this the front-office worker also doesnt have to wait to order the needed components. Another problem is the eating time of the customer. When he arrives and he asks for a loaner car he has to Walt a while. To eliminate this, the front-office worker can ask the customer if he will need a loaner car when he calls for an appointment. In this way the porter can ensure that the loaner car is ready when the customer arrives. By providing an online platform to make your appointment we can reduce the work of the front-office worker. You can also adapt some little things that can make a huge deference for your customers. For example to make the walling process more pleasant you can offer a room with a nice set-up where customers can Walt and drink a cup a coffee. To Improve the process It might be a good Idea for SGF to do a customer survey. By doing this It will become clear which other things that can be Improved. Service blueprinting By Solids dealerships. When they took a closer look they found out that only 60% of the Jobs were finished on time. In terms of value-creation for the customer it is clear that this has to improve. If they took a look to the value-creation for the company their biggest love these problems SGF decided to make a Service Blueprint. This is a model that describes the nature and the characteristics of the service interaction. The process of the customer is the most important and everything of the service blueprint is build around this. The emphasis lies on the customer experience. Making a blueprint can lead to some important insights. Firstly it provides you a platform that shows you how your company is working on the level of services. It makes clear to every employee what his role in the process is. It also makes it easier to deliberate with your co- also doesnt have to wait to order the needed components. Another problem is the wait a while. To eliminate this, the front-office worker can ask the customer if he will worker. You can also adapt some little things that can make a huge difference for your customers. For example to make the waiting process more pleasant you can offer a room with a nice set-up where customers can wait and drink a cup a coffee. To improve the process it might be a good idea for SGF to do a customer survey. By doing this it will become clear which other things that can be improved.

Avoiding Fallacies Essay Example | Topics and Well Written Essays - 250 words

Avoiding Fallacies - Essay Example From the reasoning presented by the characters in the book, there are different approaches to the issue of women and publicity. One of the fallacies would be that she would be putting on pants all over her time. Another one would be that Bill Clinton I never wore pants and that would lead us to question what he used to put on. Blair, one of the characters party to the question believes that there is an issue of economic status and women ability that would drive a woman to remain confident even in the face of controversy. Erin Bruno believes that the choice of such a slogan would be based on publicity that is required. The media, according to him reports stories with the audience in mind. When the perceived audience is large, then the chances that the, media will multiply publicity of the aspect in mind is very high. David Bositis presented an issue with the opinion polls not favoring the minorities. Clinton in this case would be described as a minority based on her being a woman. The refore, the fallacies about her slogans were purely meant to publicize her to the

The Biography Of Blue Jeans Essay Example | Topics and Well Written Essays - 1000 words

The Biography Of Blue Jeans - Essay Example The basic motive of this project is to show that the blue jean, which had been widely used by working class individuals as an inexpensive and long-lasting piece of clothing, saw a boom in interest from all classes of society when it began appearing in Hollywood films as the clothing of choice for the era’s biggest heroes, the cowboys. â€Å"Western movies from Hollywood elevated ‘authentic’ cowboys, who were often portrayed wearing the garment, to mythic status. Just as Easterners were beginning to appreciate the tremendous comfort and durability of the new clothing style, World War II forced changes in manufacturing techniques. However, soldiers preferring to wear blue jeans while relaxing overseas helped further change the image of the blue jean from a working class, working style pant to one of relaxation and leisure, as well as of the natural abundance and enviable condition of the American lifestyle. After the war, Hollywood again helped to spread the popula rity of the blue jean by clothing their popular ‘bad boys’ such as James Dean in Rebel Without a Cause and Elvis Presley, in the popular garment, immediately associating it with the rebellious youth. Today blue jeans enjoy an unequaled status among the clothing styles of the world. Blue jeans have become the comfort clothing of the world. Recognized as an art form and enjoying numerous types of treatments from painting, stonewashed, acid dying and fancy stitching, blue jeans have proven themselves to be as versatile as they are long-lasting.

Strategic Management Analysis Essay Example | Topics and Well Written Essays - 1250 words - 1

Strategic Management Analysis - Essay Example This kind of transformation has led to Better Place establishing a paradigm shift; whereby in the business model, sales are shifted from products to services. Mission and Vision The company’s mission is to reduce the social and environmental impacts in relying on petroleum by the transportation sector. The Better Place case highlights the automotive industry history in brief offers an overview of numerous automotive technologies such as hybrids and demonstrates consequences brought forth by its expansion (Romero, 2009: p.155-159). Industry Analysis The Better Place case highlights numerous aspects of the company, its shortcomings and advantages. It as well examines the rollout strategy of the company, which is an entrepreneurial that is trying to expand and grow globally at a quick pace. Its key challenges include a complex business model on the economy particularly on the wide upfront investments that are dispersed in various locations internationally, how infrastructure is c oordinated, how consumers can be convinced to switch to electric cars as well as ways of convincing automotive producers that EVs are a better option. Porter’s five Porter’s five looks at the five forces that act on Better Place Company and are the determinants of the company’s profitability. 1. Threats of new entrants This is a low threat in Better Place Company being in the automobile industry. ... 2. Bargaining power of buyers Buyers always bargain before buying cars, and so dealers gives out great deals to the buyers so as to move the industry. In this case, the buyers usually have a considerable bargaining power even if they purchase a single car at any given time which is a good factor that determines this force. 3. Threat of substitute products When buyers look at other products compared to those of Better Place, as well as competition, and are able to switch with ease, then the company can have a high threat of force. This is because the cost of switching can be high as one cannot sell a car for the sum paid for. In the differentiation of product, cars could be particularly similar in various ways but if choosing the amphibious cars, the threat of substitute products can be of low. 4. The bargaining power of suppliers This involves suppliers of electronics, parts, components and tires as well as the assembly workers. The auto unions are powerful in a tremendous way. On th e other hand, suppliers can be of small firms who often depend on carmakers and can have a single carmaker as a customer. Therefore, this force can be either low or high. 5. Competitive rivalry Better Place is a company that has a fierce competition in terms of price cut, product development and ad campaigns, which drives it to the profitability and innovation edge. This leads to low margins and a high pressure on rivals. However, if there is less pressure from rivals, the pressure on imports becomes high although there will be a difference in profitability because the business models will vary (Pickard, 2010.p.125). Sources and Capabilities SWOT Analysis of Better Place a. Strengths

Chinese Communists and Guomindang Forces Relationship

Chinese Communists and Guomindang Forces Relationship This paper seeks to analyze the political situation in the formative years of the Chinese republic in order to understand reasons for a breakdown of the relationship between the Chinese communists and the Guomintang forces. This paper will examine from the collapse of Qing dynasty, the early days of the major political parties, the role played by Russia and the eventual breakout of war to conclude three reasons behind the failed relationship between the Chinese Communists and Guomindang forces , which are difference in ideology, the power hungry nature of the leaders and the suspicion and mistrust between the leadership. The last dynasty of chinas ruling monarchy collapsed in the year 1912, this dynasty was referred to as the Qing dynasty. The main reason for the collapse was lack of popular support from the people and pressure from the public who wanted change .This resulted in rebellion that was later joined by political leaders and the army. The ruler at the time, known as Pu Yi, finally stepped down; an action that signified the end of the monarchy. After the end of the Qing dynasty, China was left with a chaotic situation where separate regions were controlled by army generals who were particularly strong in the Northern region. These generals were referred to as warlords. What made Chinas situation critical at that point was that there but no national leader who could unify the country. None of these army generals was strong enough to control the entire country and thus their sphere of influence was limited to the geographical regions where they were located.  [1]   During the chaotic years of warlord rule many young Chinese joined the different movements such as the Northern campaign, the Fourth of May movement and Communism. The leaders of these movements wanted to bring changes to China at whatever cost and some of the options they had at the time, included adopting foreign ideas. One of the main ideas that gained popularity was communism as the idea of a classless society at the time seemed very appealing to most Chinese revolutionaries and political leaders. Mao Zedong then a librarian at the University of Beijing formed a society through which interested parties could study and discuss Marxist ideals, this society became hugely popular and the members later formed the Chinese communist party  [2]  . At about the same time, Sun Yat-sen a politician and Chinas foremost nationalist leader at the time was organizing his party known as Guomindang or the Peoples National Party. Suns ideals for the new Chinese republic were of a democratic government for the people, National freedom and livelihood for the nations poor. In order to defeat and overthrow the warlords who held most of the country, Sun Yat-sen, using his political party Kuomintang, sought for assistance from major foreign powers of the time, his efforts were however ignored by western countries. Thus in 1921 he turned to Russia where a communist government had taken over power. 2 Russia responded by offering support to both Guomindang and the communist party an act which was the essence of the struggle for political power between the two parties. As a way of boosting both parties Russia sent representatives to help re organize Guomindang and the communist party of china along the lines of the Russian communist party.1 These efforts culminated in the declaration of 1923 where Russia pledged her support for the unification of China and the two political parties declared their cooperation. The coming together of Guomindang and the communist party of China gave birth to what was referred to as the First United Front. 8 With Russias help Sun Yat-sen reorganized his party along the lines of Russian communist party. The party Guomindang grew into a mass party, where all decisions made by the party leaders were final. It was also run along very strict disciplinary lines. 3 Sun invited members of the communist party then still a small party to join Guomindang in their individual capacity, as both parties had a common goal. During this time Russia also offered military support to Guomindang. They brought in officers to train party members and those of the communist party who had joined suns Guomindang.3 Russia also offered weapons and ammunitions. Later a military academy was also developed to train and impart military skills to officers. 1 This Military academy was headed by Chiang Kai-shek who had risen to prominence in the party and was Sun Yat -Sens likely successor. The purpose of the Military support offered by Russia, was to help their two allies the communist party and Guomindang, to defeat the warlords who were mainly located in the North of the country and in the process to unify China into one Republic. But before an attack on the warlords could be launched Sun Yat-sen died of heart attack in 1925.  [3]   A few months after the Death of Sun, Chiang Kai-shek who was the commander of the revolutionary army launched the Northern campaign. However at the same time the Guomindang party was facing tumultuous times, the party had split into two factions, one left wing and the other right wing. The influence of the communist party was also growing within the Guomindang. In response to this and other happenings, Chiang Kai-shek curtailed the participation of communist party members in the leadership of Kuomintang. He also imposed himself as the leader of the revolutionary army. 6 The campaign against the Northern warlords was quite successful; within a few months the revolutionary army had captured most of the northern territory and imposed governments there. Most of the poor peasants in the country side welcomed the revolutionaries as the believed they represented the chance of better days ahead. But as the power of the Guomindang grew the more discontent the communist party became.  [4]   By the time the revolutionaries had conquered most of China the alliance that existed between them disintegrated. Several incidents resulted in a worsening situation. As the Guomindang were about to enter Shanghai city, there was a rebellion from communist members within the city, the response of the Guomindang soldiers when they finally entered Shanghai, was to arrest and round up the members of the communist party and then proceed to massacre them. Later in another incident, the Guomindang party revolutionary soldiers carried out another massacre of communist party members in Guangzhou, killing several hundred in the process. In response the communists who were being purged from the Kuomintang, retreated to the rural countryside and launched an uprising which was led by Mao Zedong. This uprising was easily suppressed by Chiang Kai-sheks forces  [5]  . In 1928 the Guomindang formed a government that was given international recognition in Nanjing as the government of the Republic of China. Chiang Kai-shek also formally became the chairman of the party. Using his influence among the elite and the military power that he had Chiang Kai-shek was able to maintain a dictatorial grip on the party and to defeat those within and without the party who opposed him. He tried to form a modern state but most accused him of abandoning the ideals on which his party was formed.  [6]   On the other hand the Chinese communist party which had almost been crushed by the Guomindang began to rebuild, they recruited peasants from the countryside to join their ranks with an aim of forming an army for the people which was to win the revolution against the Guomindang.  [7]   In 1931 Japan seized Manchuria and installed a puppet regime led by Pu Yi, the last ruler of the Qing dynasty. This resulted in strong anti Japan sentiment within China. Chiang Kai-shek who held the dominant military power within china opened a second front to engage the Japanese, but still gave most of his attention to crushing the Chinese communist party .To this effort the Guomindang launched a series of encirclement campaigns meant to wipe out the communist partys resistance. Of the five campaigns the first three were failures while the fourth and fifth were quite successful resulting in huge loses to life on both sides. But the Chinese communist party, cornered in the city Jiangxi of was severely depleted and its leadership opted for a retreat to shangxi an event which is referred to as the long march.  [8]   The march was brutal to the Chinese communist partys ranks; many tens of thousand were lost along the way due to desertion, attack by enemy soldiers, disease and hunger. But the positive aspect of the long march to the party was that, it brought together members who would later come to form the top leadership and decision making body of the Chinese communist party. This included names such as Mao Zedong, Zhu De, Liu Shoqi, Lin Biao, Deng Xiaoping and Zhou Enlai. Another important aspect is that during the long march a meeting of the top leaders established Mao Zedong as the top most leader of the party and with the responsibility to lead on all issues regarding overall strategy for the movement.  [9]   Conclusion After careful analysis it can be established that, the main reasons behind the failed relationship between the Chinese Communists and Guomindang forces can be attributed to a number of factors; first was the difference in ideology between the two parties. The Chinese communist party was of the belief that the fledging Chinese republic would be better off if ruled under a communist ideology almost similar to what existed in the united soviet socialist republic. On the contrary the Guomindangs vision was formed by Sun Yat-sen who was a well traveled man who had studied in Hawaii in the United States. Sun had a vision of the new China as a democratic country where the citizens were free of foreign influence and where they were free and able to earn a living, a form of capitalist society so to speak. This view had been acquired through his travels as a result of the economic progress and developments that he had seen in the western world. Mao Zedong on the other hand came from a peasant family; his view of china was that it was society where the upper class ruled and lorded over the poor masses, he felt that a classless society would be the best way to move China from the inequality and poverty that was endemic of the poor class. This was the basis through which the two leaders adopted and embraced divergent ideologies that eventually resulted in the failed relationship between their parties. Another reason for the failure of the relationship between Guomindang and the Chinese communist party was the power hungry nature of the leaders of these parties. Through out the period when there was a relationship and close interaction between the two parties, one can easily spot incidences where the leaders a good example being Chiang Kai-shek, were primarily interested in being the supreme rulers of a unified China. This was a goal that the two sides were ready to follow at all costs even if it meant massive loss of lives. This in fact was the main reason for such a bitter fall out between two groups that were once collaborators. No one, among the leaders of the two sides was ready to put this ambition aside, instead they carried on with a brutal war with a body count running into the millions just so that they could end up the un opposed rulers of the new republic. Even when the Japanese invaded Manchuria and installed a puppet regime, wish should have been sure because for a tr ue patriot to put any internal differences aside, the war between the two protagonists did not come to an end. Not until one of the sides (Guomindang) was vanquished in war did bloodshed and violence cease in China. Another crucial aspect that contributed to failure in the relationship between the two parties was the Russia factor. From the start when Sun Yat-sen approached the Russians for help after being ignored by western countries, they opted to adopt a dual policy in which they supported both the communist party of China and the Kuomintang, This decision was cunning as it was selfish as Russia itself a fledging republic at the time, wanted to peddle its influence with the two major political players in China at the time, Such a decision was likely to result in conflict at one point or the other, this for a fact was inevitable. It cannot be overlooked that Russia initially gave more support in the form of political strategists, weapons and military aid to the Guomindang. This was so because the party under Sun Yat-sen at that time was larger, stronger and had a wider national appeal as compared to the communist party of China. But once the tide began to change during the war and the communi sts gained an upper hand on the battlefield, Russia switched its support from Guomindang to the Chinese communist party. In a sense it can be concluded that Russia was more interested in spreading its sphere of influence through the adoption of its national ideology in China, to achieve this, it was ready to influence both sides acting as a catalyst to the failure of the relationship that existed between them as long as it achieved its ends.  [10]   Lastly point to note that led to the failure of the relationship between Guomindang and the communist party was the high level of suspicion and mistrust between the leadership of the two parties. In the early part of the alliance between the two parties, Guomindang was much stronger and had a far larger number of members as compared to the Chinese communist party which was a small growing movement at the time, Instead of a situation where the two parties would work together for the greater good of China, Guomindang part leadership would not trust the communists and the communists in return did not have trust in their fellow nationalists, instead Guomindang adopted a policy where communists could only join their party or train in their military academy as individuals and not as members of their own party, they also continuously undermined the communist party leadership due to its weak position and due to the high level of mistrust between the two sides. These according to my analysis are the main reasons why there was a failure in relationship between the Chinese communists and the Guomindang party.