Real Options Essay Example | Topics and Well Written Essays - 1500 words

Real Options - Essay Example Use of standard techniques to evaluate real optionsTraditionally the use of standard techniques was predominant though lacked merit in its application. The techniques included use discounted cash flows and net present value analysis. Here, future expected cash flows are treated as the present values of the empirical probability measure that reflects the risk of the project under a discounted rate. Cash flows that is expected are highly valued in this approach than any other flexible issue that alters the strategy to market goal realizations. The net present value approach presents management as being passive to their Capital investment. Most analysts account for this real option problem by adjusting the discount rates. However, real options valuation looks at management as being active and they revolve interests with varying market trends. Real options usually bring into action the best contingency plan. Management has a duty to fight any negative occurrences by lowering the possibil ities of exposure and limit the firm’s benefits from uncertainties in the market.The contingent characteristic of profits to be realized in the future of a business, in real options models is exhibited by applying financial option techniques. Using the risk-neutral measure approach comprises the reduction of the probability distribution for the risk being accounted for. Real options valuation accounts for uncertainties in the future of definite parameters that define the value of the business.

Struth, Thomas (German), The Smith Family, Fife, Scotland, 1989 Research Paper

Struth, Thomas (German), The Smith Family, Fife, Scotland, 1989 - Research Paper Example Today, Struth is recognized as among the very first photographers who heralded contemporary German photography. Struth has had many of his works exhibited in Museums and other exhibition centers around the world. The most recent project which has further boosted his profile is his portrait of Queen Elizabeth II and Prince Phillip, the portrait was part of a collection taken to commemorate the Queen’s 2012 Diamond Jubilee. At the beginning of his photography career, Struth became popular for his â€Å"Unconscious Places† photographs; these represented cityscapes completely devoid of life. Part of this collection was on display until November at the Venice Architecture Biennale. Recently, Struth had an interview with O’ Haghan a reporter with the Guardian newspaper. In this interview, Struth described his preference of photography to painting and also explained the inspiration behind his first photographs which represented skyscrapers. In the interview he explained that he made huge â€Å"super-realist photographic paintings†, these never greatly appealed to him and felt they were somehow stupid. This displeasure informed his preference for photography, his tutors and mentors at the time, Richter and Bernd Becher also preferred his photography. Struth’s initial photographs were of his own city, he took photographs of Dusseldorf’s streets and buildings. He explained that his emphasis on building arose from an inquiry on how history would find its place in our current lives, further; he wondered how architecture represents humanity. In answering these questions he found his style and methodology. Just like every artist, Struth’s photographs depict an individual who is largely reactive to the environment around him. This also includes the people he meets and interacts with. He is one who draws great inspiration from life and structures around him. In his own words, the subject of his photographs arises from a need to talk about

Hangzhou Wahaha Food Group Management Essay

Hangzhou Wahaha Food Group Management Essay In the global market today, culture has gradually seeped into our daily lives. People can no longer work within their own comfort zone, but the current business markets requires a need to step out of peoples comfort zone to explore the wonders of cross cultural working culture. Like a coin, Culture has its flip side though it has been considered as one of the main factors in shaping and accounting for successful business attempt. However, culture has always been considered a sensitive topic among people, companies and even the nations. In the recent years, many multi-national companies have not yet grasp the culture of the country which they are operating or selling their products in. By using case studies of Danone Vs Wahaha and Renault Vs Nissan in our research, we attempt to compare the vast differences in national culture between France, China and Japan using Geert Hofstedes 6 dimensions of defining and interpreting culture. In 1996, Chinas Hangzhou Wahaha food group, Frances Danone group and Hong Kongs Bai fu qin corporation decided to form a joint venture named Wahaha. In this joint venture, Danone attempted to enter the china market using Wahaha brand that is well-received by the Chinese. However, problems started to arise when Danone become the biggest shareholder in 1998; thus producing resentment from the Chinas Wahaha group as they felt that Danone has misled them from the very beginning. To worsen the problem, Hangzhou Wahaha food group that is managed by Chairman Zong was accused of breaching the contract by establishing non-joint ventures which have infringed the interest of Danone, claiming that the Hangzhou Wahahas establishment of the nonjoint ventures as well as the illegal use of the Wahaha trademark has violated the clause started in the contract. After which Wahahas Chairman Zong was sued into courts by Danone in California and Italy, he further created a series of small companies produc ing the same products as the joint venture. The Wahaha Vs Danone case has significantly depicted a dispute between ownership rights. If reading were done further in depth, conflicts between Danone and Wahaha may be caused by unawareness of the cross cultural differences between France and China. Nissan Vs Renault Nissan, a Japanese company and Renault, a French company have decided to come together to work on a joint project. Both companies were well known for their distinct corporate cultures and brand identity. The joint project was formed as both companies shares a single joint of strategy for profitable growth and community of interest. However, Nissans management style strongly encouraged group performance while the Renault focuses on individual performance. Communication between the top management and employees were not clear and direct, therefore resulting in misunderstanding within the company. The conflict arises between the 2 partners was due to Nissans employees assumed that Renault was another company similar to them by encouraging group performance. However, Renaults management style belongs to a much more individualistic approach, making the Nissans employees felt uncomfortable of having the feeling of losing their family atmosphere. Communication between the Nissan employees and Renault employees broke down; Nissan did not understood what were Renaults main objectives and their company goals in their partnership with Nissan. Some of the Nissans managers felt frustrated and opposed to the entry of Renault representative on Nissans board. The managers were old employees, and they felt that employees should be promoted according to their seniority instead of individual performance. The breakdown of communication is also caused by the differences in their language. With such a significant difference in their management style, there is a need in cross cultural awareness f or the business joint venture to be a successful one. Geert Hofstedes 6 dimensions According to Geert Hofstedes cultural research studies, he has interpreted that culture can be classified into 6 different dimensions; Power Distance, Uncertainty Avoidance, Individualism Vs Collectivism, Masculinity Vs Femininity, Long term orientation Vs Short term orientation. The table below shows the different scores allocated to the different dimensions for France, China and Japan France China Japan Power Distance 68 80 54 Uncertainty Avoidance 86 30 92 Individualism Vs Collectivism 71 20 46 Masculinity Vs Femininity 43 66 95 Long Term Orientation Vs Short term Orientation 39 118 80 ** INSERT THE VALUES MEANING Power Distance Power distance deals with the fact that all individuals in societies are not equal it expresses the attitude of the culture towards inequalities among us. Power distance can be defined as to the extent to which the less powerful expects and accepts that power is distributed unequally. (Geert Hofstede,2001 ) In comparison of France, China and Japan, China belongs to a society where the people believes that inequalities is acceptable where there is a presence of a powerful employer-subordinate relationship which the subordinate will abide by all rules and regulations set by the employer. France on the other hand may be prone towards a more hierarchical organization system where the attitude towards managers are more formal. Japan belongs to a more hierarchical society where the Japanese should be conscious of their hierarchical position in any situations. All decisions made must be confirmed by each level of the management and finally by the top management. Individualism Vs Collectivism In the dimension of Individualism Vs Collectivism, Individualism can be identified as the high degree of independence a society maintains among its members. It relates to peoples self image in terms of I while Collectivism can be identified to be the opposite. In a individualist society, people tends to only look after themselves and their direct family only while a collectivist society consists of people belonging to a group that takes care of them in exchange for their loyalty.(Geert Hofstede,2001) Comparing the 3 countries, there is a significant difference; China belongs to a highly collectivist country where people act at an interest of a group. In this norm, personal relationships prevail over the task and company. However in France, there is a certain degree of independence a society maintains among its members. The French prefers individual and private opinions and work relationships between the employer and employees are contract based where everyones focus is on the task itself. Communication within a individualist company would be direct where everyone can give their opinions freely if they do not agree. Referring back to the Nissan Vs Renault case, it has clearly shown that Renault (France) encouraged a more individualist approach by promoting individual initiatives and hoped that the employees are promoted through individual performance. Direct contacts between the top management and employees were encouraged in their individualistic approach. Japan similar to china belongs to a highly collectivist society, this can be shown through putting their harmony of group above the expression of individual opinions and the Japanese have a strong sense of shame for losing face. In the Nissan Vs Renault case, Nissans employees feel that it is important to have a family atmosphere in their working environment. The managers of Nissan felt frustrated and opposed to the entry of Nissan as they felt that promotions should be done according to seniority, not individual performance. This clearly shows that Nissan (Japan) belongs to a collectivist society. Masculinity Vs Feminity Masculinity Vs Feminity is another dimension where we can infer that a masculine society will be driven by competition, achievement and success. It is a value system that starts in the school and continues throughout organizational behavior. On the contrary, a feminine society will be driven by caring for others and quality of life. It is one where quality of life is the sign of success and standing out from the crowd is not admirable. (Geert Hofstede, 2001) In China, Leisure time to the Chinese is not as important compared to the status and better salaries. Such examples can be found in students as they care very much about their exam scores and ranking as the main criteria to achieve success or not. France belongs to a relatively feminine society. It may be due to their famous welfare system, securità © sociale where the French are only required to work 35 working hours per week and entitled to 5 weeks of holidays per year. France cares greatly for their quality of life and focuses more on work in order to live the reverse. Competition in the working environment is usually not encouraged and flashy signs of success should not be shown in the public. In the Renault Vs Nissan case, Nissan is shown to be treated males and females equally. Some of the female employees were offered several managerial positions in the company. Japan, a total opposite from France has a highly masculine culture. It is usually shown through competitive situations between groups, not individuals. Their famous workaholism is also another expression of their highly masculine culture. In Japan, women find it difficult to climb the corporate ladder due to their masculine norm of hard and long working hours. Contrasting Renault in the case study, Nissan belongs to a masculine company which managerial positions are only offered to the male employees, not the female workers. Uncertainty Avoidance Uncertainty avoidance has to do with how the society deals with the fact that their future will not be known. The unknown elements will bring about ambiguity and different cultures will react to the ambiguity in different ways. The uncertainty avoidance can be defined as the extent to which the members of a culture feels threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these. (Geert Hofstede, 2001) The high degree of ambiguity can be seen from the Chinese as their language is often full of ambiguity that can be seen as confusing for the westerners. It is shown that the Chinese are comfortable with ambiguity and seen to be adaptable and entrepreneurial. 70%-80% of Chinese businesses tend to be small to medium sized and family owned. France on the other hand tends to have their teachings and training done in a deductive approach. In the management level, rules and securities are ensured to create a stress free working environment and a certain level of expertise are welcomed. A change of policies can also be seen as a stressful event. Japanese is one of the few countries that have the highest uncertainty avoidance score. It may be due to the fact that Japan is constantly threatened with natural disasters such as earthquake, volcanoes eruptions that most Japanese are always prepared in any kind of situations. In the business environment, a lot of time and effort are put into feasibility studies and all the risk must be worked out before the project can proceed. Long term Vs Short term orientation In the Long term Vs Short term orientation, a long term orientation can be seen closely related to teachings of Confucius and can be separately interpreted as dealing with societys search for virtue. Long term orientation can be defined as the extent to which a society shows a pragmatic future orientated perspective while Short term orientation shows a conventional historical short term point of view. (Geert Hofstede, 2001) China belongs to a long term orientated society whereby persistence and perseverance is seen to be normal. The Chinese are thrifty and tends to invest in long term projects such as real estate. They also recognized that the government is by men rather than being influenced by external factors such as god or the laws. France on a contrary is a short term oriented society; there is a great respect towards traditions, cultures and their language. In business related issues, the French tends to focus on short term results and therefore, companies are usually driven by quarterly results. They do not focus on saving and the management style is based on self-reliance, personal achievement, hard work and managers are judged based on short term results. In Japan, people lives their lives guided by virtues and good examples in life. There is a hint of long term orientation in the constantly high rate of investment in RD, even through difficult times. This is all done for the sake of a steady growth for market share instead of a quarterly profit, thus increasing the durability of the company, serving the stakeholders and the society for many generations to come. From the graph above, it has shown that the cultural differences between France and China is distinctly difference in terms of their power distance, Individualism, Masculinity, Uncertainty avoidance and Long term orientation. With that significant difference, there is furthermore a need to focus on the awareness of cross cultural differences between the 2 country in order for the joint venture between Wahaha and Danone to be a successful one. By relating back to the case study, Danone, the French company may not understand the ambiguity in how the Chinese operates in Wahaha and may misinterpreted their good intentions. Likewise, for Hangzhou Wahaha, it is founded by the Chairman Zong who started the company from a small company which may be very much more family-owned. Chairman Zong may not have a vast understanding of how international joint ventures works and can end up leading to bigger misunderstanding and conflicts which results in the failure of the joint venture or business at tempts. Given an example from the case study; Zhang Cheryl(2001) stated that the interpretation of losing control is different between the western society and china. In the western society, the meaning of losing control may not be treated at a personal level. However, losing control in china is equally be meant as losing face, and losing face in this case study would refers to losing the power to make decisions which puts Chairman Zong of Wahaha in a disrespectful situation among his employees. Wahaha therefore insist to runs normally in their daily operations in order to keep their face. To worsen the situation, Wahaha perceived it was losing face when Danone established other IJVs with their competitors resulting in Wahaha being less motivated to settle their conflicts and disputes between each other. From the case study, we have seen how important cross cultural awareness is important in shaping and cultivating a good business attempt. In comparison of France and Japan, there is still a significant difference in the 6 dimension index from Hofstedes theory. In the Nissan Vs Renault case study, the difference in management style, breakdown of communication, different cultural values and language barrier are factors which may have caused a conflict between the 2 companies. One of the major problems may be the different management style; where Nissan is prone to work in a family like atmosphere. However, Renault focus on individual performance where individual employees only cares about their own results. Nissan can also be seen as a more masculine society which managerial positions are only offered to male employees while Renault treats all employees as it can be shown that several managerial positions were taken up by female employees. In such a different cultural environment, it is important that both companies should have cross cultural awareness for the business venture to be successful. Importance of national culture As discussed above, The analysis and evaluation between Danone Vs Wahaha and Renault Vs Nissan (France, Japan China), we have identified and come to an understanding that both companies have failed to understand and account for each partys culture thus leading to main issues such as communication breakdown, management problems and conflicts. Previously where this essay has analyzed and critically evaluated the two different case studies of Danone Vs Wahaha and Renault Vs Nissan (countries France, China and Japan), what we have identified is that that both companies have failed to understand and account for each others culture because of the failure to do so, main issues like communication breakdown, management problems and conflict happens. It is therefore crucial for large multinational companies to be exposed to the different international cultural differences as in their daily operations they are exposed to multiple national cultures. This suggests that managing across borders introduces substantial complexity because it forces multinationals to attune their practices and approaches to each and every cultural context they operate in. In the previous section, Geert Hofstedes 6 dimensions index were discussed to evaluate the two case studies. It has shown that each country would have its own significant difference from the 6 dimension index from Hofstedes theory. Failure to appreciate and account for them can lead to issues like strain relationships between employees and employers or between stakeholders, communication breakdown between management team and drag down business performance. Each country has a unique cultural perspective and approach to certain situations and hence it is important for companies to strive to understand and support relevant programs or strategies in each region. However, based on Geert Hofstedes research on national culture, he has demonstrated that organizations can no longer ignore the impact of national cultures on organizations cultures particularly for multinational companies. It is also clear that in the current times, the implementation of positive organizational cultures and effectively merging of national cultures into organizational culture is critical for positive business performance and outcomes. Newman Nollen (1996) state that there is no one best way to manage a business. Differences in national cultures call for differences in management practices. One of their conclusions also states the importance of the congruence between management practices and the national culture should be in harmony in order to produce better performance outcomes, therefore pinpointing in another way the importance of cultural differences. Therefore, the management team of a company should pay extra attention to national cultural differences as it may influence the effectiveness of the strategies and decisions that the company makes. In addition, it may also affect the managers management style too. Therefore as a start, multinational companies should understand and be aware of the different types of national culture as well as adopting a fitting organizational culture themselves to account for international culture differences towards their employee, employers and well as their customers. Organizational Culture Greenberg and Baron (1997) define organizational culture as a cognitive framework consisting of attitudes, values, behavioral norms, and expectations. These values stated have a strong influence on employees behaviors, thinking, and behavioral patterns. For example, if a company is in the international business industry, having a culture that encourages diversity and adaptability will support its performance. In turn, the employees behaviors and thinking may be affected overtime and will react positively to diversity within their company and welcome it. In current times, companies operate in an increasingly complex and global environment where they are conducting more and more business in foreign countries. Apart from serving a global diverse marketplace, multinational companies would also consists of a diverse staff. As such, companies are faced with the challenge of managing a culturally diverse workforce. Martin (1992) and Goffee and Jones (1996) also demonstrates that strong cultures exist where employee values are unified and aligned to the values of the organization hence creating a sense of belonging and loyalty toward the company. Organizational culture is also an effective control mechanism for managing employee behavior. Therefore, this is a need for an organizational culture that fits to the needs of the company and its employees. Influence of Organizational culture Organizational culture shapes the way people do business, the way they do things varies across different countries. As such, same organizations of different national origins may have to do things differently and bearing in mind the culture of the nation or origin in which they operate. This certainly impacts on policies, communication strategies, organizational structure, human resources, recruitment and retention. Organizations particularly multinational companies can therefore no longer afford not to consider the national origins of countries where there operate and the degree to which the national cultures of these origins affect organizational culture when doing business. Organizational culture precedes employee behavior. Managers have the ability to influence and manage organizational culture. When this is done effectively, employees will too express those values positively through their behavior. To elaborate, if a typical organization has an extensive range of people who have international differences, the company would then need to foster a cultural diversity culture among its employees to create a mutual respect for the different cultures. This also in turns enables their employees to reach their full potential. The company should also portray the cultural diversity aspect of the organization in their mission statement. Edgard Scheins Three Levels of Culture Apart from Geert Hofstedes 6 dimensions of defining culture, there is another famous culture theorist, Edgard Schein that devotes all his effort into comparing and identifying the organizational cultural differences. According to Edward Schein(1992), Organizational learning, development, and planned change cannot be understood without considering culture as the primary source to change. Schein has categorized culture into 3 different levels: Artifacts, Espoused Values, Basic assumptions and values. Three Levels of Culture (Schein, 2004, Organizational culture and leadership, 27) Schein defined that culture is first seen through artifacts such as visual organizational structures or tangible items. Underlying artifacts is the values such as strategies, goals and philosophies. The core of the 3 levels would be assumptions such as taken for granted beliefs, perceptions, thoughts and feelings through experience. Applying Scheins 3 levels of defining culture into Wahaha Vs Danone and Nissan Vs Renault case studies, a person would first judge a person through tangible and visible elements. In Nissan Vs Renault case study, the Japanese employees from Nissan first perceived Renault as a company from France with elements such as language, or even particular dress codes from the French employees. Underlying that judgment through visible elements would be espoused values such as how the organization represents itself through official statements or philosophies present in the company. In Renault, the common culture within the employees is that the top management focus on individual performance and everyone is equal to vie for the managerial position. Vice versa for Nissan, the common culture within the company would be Family first mantra which promotes the family-like atmosphere in the company. With the diverse differences between the 2 companies, conflicts would arise when the 2 companies espoused values are not aligned with one another. Lastly, the core element would be the shared basic assumptions which are usually deeply integrated into the culture and usually unconscious, thus people find it difficult to identify from within. Edgar Schein argues that the different cultures which people belongs can affect the different assumptions we would make about a particular situations based on our own values. According to the Wahaha Vs Danone case study, the assumption of losing face to Danone was nothing close to personal; however Wahaha views losing face as a disrespect among the employees. Such situations would cause a dispute between both companies who has diverse differences in their national culture. From the previous case studies from Wahaha Vs Danone and Nissan Vs Renault where they are example of companies that have failed to grasp the culture of the country and to adopt a fitting organizational culture. Now, using a case study on Google in our research, we will attempt to evaluate how Google makes use of national culture and their organizational culture to account and shape for international differences using Edgard Scheins Three Levels of Culture theory. Google Google is a worldwide company that has strong practices in diversity. Google culture revolves around their mission: to organize the worlds information and make it universally accessible and useful. (Corporate Information, 2011) Google consists of a diverse staff, and supports a variety of cultural norms. Through this cultural norm, Google encourages and supports the diversity of its contacts and employees. Diversity is an essential component of the culture and business at Google. Google has employees that speak many languages to cater to the diversity of their consumer base. In fact more than half of the results Google provides to its customers are outside of the United States (Corporate Information, 2010). Diversity is distinguishable in all parts of Google such as their employees, offices, products, and customers. Therefore, when employing people from different cultural backgrounds, companies may benefit from generating a unified organizational culture. Googles Culture As Google consist of a diverse staff group, it shows the importance of having a strategically appropriate culture, a culture which will fits the needs of the organization, its employees and the marketplace. At Google, we dont just accept difference we thrive on it, we celebrate it, and we support it for the bene ¬Ã‚ t of our employees, our products, and our community. (Google Annual Report, 2010) Google has embraced diversity and integrated it into their culture and into their core culture statement. The manifestations of Googles culture are analyzed by evaluating the artifacts at Google (Gagliardi, 1992). Through looking at the various aspects of Google, it is shown that Google has an integrated and informal culture (Martin, 1992), which comprises of four key elements. Mission Innovation Fun Reward Using Edgard Scheins Three Levels of Culture, it is first defined and seen through the artifacts such as visual organizational structures or tangible items. Google supports diversity of norms in each office by utilizing local expressions of each location, from a mural in Buenos Aires to ski gondolas in Zurich, showcasing each offices region and personality (Corporate Information, 2010). One of the key aspects of Googles culture is that they promote communication between the employees. Googles office and cafes are designed to encourage interactions between employees within and across teams, and to spark conversation about work as well as play. Social interactions stimulate knowledge and learning breakthroughs. Without communication, there is no way to express thoughts, ideas, manage differences and feelings. Communication plays an important role in keeping and maintaining values and relationships necessary to keep the system of the organisation united. The next level of culture would be the exposed values which are the strategies, goals and philosophies. Daft (2003) stated that managing a global environment requires managers to have the ability to manage change through innovation and creativity. Therefore, the employees in Google are motivated to contribute their suggestions and ideas. Most of Googles work are project based hence employees are required to team up and pursue the project. The team may consist of a diverse group of members. Through the concept of a group project, members would then need to learn to accept one another and work together. This enhances the communication between Googles employees and hence they share a unified common goal and vision. As Google consists of a diversity of staff and most of the work is project based, conflicts are bound to happen between the employees. Therefore, conflict management between employees and respect for cultures must be structured and organized for the many cultures and diversities. This notion requires much research, training, and awareness to be spread throughout the company. One strategy that Google implement is to create awareness of international differences is by organizing national cultural events such as The 6th Sense: Diversity Week in India and Diwali and Google Mela to develop cultural intelligence to the employees and international cultural competence. Cultural intelligence integrates the three interrelated elements of knowledge, mindfulness, and behavioral skills. International cultural competence goes in depth to a complex skill that make use of cognitive, affective, and behavioral learning to effectively engage in successful cross-cultural relationships. The purpose of these cultural events is that the employees would generate a culture-specific understanding of the other and positively regard of the other. Through these events, it will groom and educate the employees on cultural awareness. During such events, Googles employees are able to interact and appreciate each others culture; consequently, an accommodating culture and organizational behavior is then established within the organization. The next level of culture would be the assumptions such as taken for granted beliefs, perceptions, thoughts and feelings through experience. Googles employees are passionate and self-motivated, and the company empowers them to a certain degree to make responsible decisions. Therefore, employees could get the opportunity to innovate and unleash their imagination and ideas. After analyzing all of Google culture characteristic, using Deal and Kennedy model of organizational culture (Deal and Kennedy, 1982), Google most likely falls into the work hard/play hard culture. Characteristics of the culture include high levels of activity and where employee has to take few risks. We have identified that most of the work that Googles employees faced are project based and employee have the freedom of choice to complete their project in any way they would like. Another characteristic of this culture includes ensuring that quality accompanies the high levels of activity. Google integrates the concept of the 70-20-10 Rule where they are encouraged using 70 percent of their working time on central business functions, 20 percent on related business functions, and 10 percent on areas entirely of their own choice (Google Corporate Information, 2012). In addition, due to stiff competition the employees are also passionate and motivated to develop one by continuously contr ibuting ideas, suggestions to potential profit gaining activities though their meetings. Through the concept of organizational culture on how they are establish and

Friendship Essay: My Best Friend -- friendship essay, my best friend

She doesn’t know this, but she changed my life. She was there for me when it seemed like no one else was. When most of my friends were dissolving around me and I just didn’t feel like I could do anything right, she was there, and she made everything seem okay. It didn’t matter that I was inevitably going to graduate with a GPA a tenth of a point lower than I wanted, or that my director told me that he was disappointed in me because I just didn’t seem focused lately, or that my other friends just weren’t talking to me anymore. It didn’t matter because she was there and she made me feel safe. She’s my best friend, and I love her and admire her for so many different reasons. It seems that, no matter the situation, she knows exactly what will brighten my mood, whether it’s an hour-long venting session, a frozen yogurt run or sitting around a fire making s’mores. She has the incredible ability to make me laugh even when it seems impossible, through sometimes impractical means, like throwing marshmallows across the room or telling goofy made-up stories that may or may not be relevant to t...

A Game of Thrones Chapter Twenty-five

Eddard Lord Arryn's death was a great sadness for all of us, my lord,† Grand Maester Pycelle said. â€Å"I would be more than happy to tell you what I can of the manner of his passing. Do be seated. Would you care for refreshments? Some dates, perhaps? I have some very fine persimmons as well. Wine no longer agrees with my digestion, I fear, but I can offer you a cup of iced milk, sweetened with honey. I find it most refreshing in this heat.† There was no denying the heat; Ned could feel the silk tunic clinging to his chest. Thick, moist air covered the city like a damp woolen blanket, and the riverside had grown unruly as the poor fled their hot, airless warrens to jostle for sleeping places near the water, where the only breath of wind was to be found. â€Å"That would be most kind,† Ned said, seating himself. Pycelle lifted a tiny silver bell with thumb and forefinger and tinkled it gently. A slender young serving girl hurried into the solar. â€Å"Iced milk for the King's Hand and myself, if you would be so kind, child. Well sweetened.† As the girl went to fetch their drinks, the Grand Maester knotted his fingers together and rested his hands on his stomach. â€Å"The smallfolk say that the last year of summer is always the hottest. It is not so, yet ofttimes it feels that way, does it not? On days like this, I envy you northerners your summer snows.† The heavy jeweled chain around the old man's neck chinked softly as he shifted in his seat. â€Å"To be sure, King Maekar's summer was hotter than this one, and near as long. There were fools, even in the Citadel, who took that to mean that the Great Summer had come at last, the summer that never ends, but in the seventh year it broke suddenly, and we had a short autumn and a terrible long winter. Still, the heat was fierce while it lasted. Oldtown steamed and sweltered by day and came alive only by night. We would walk in the gardens by the river and argue about the gods. I remember the smells of those nights, my lord—perfume and sweat, melons ripe to b ursting, peaches and pomegranates, nightshade and moonbloom. I was a young man then, still forging my chain. The heat did not exhaust me as it does now.† Pycelle's eyes were so heavily lidded he looked half-asleep. â€Å"My pardons, Lord Eddard. You did not come to hear foolish meanderings of a summer forgotten before your father was born. Forgive an old man his wanderings, if you would. Minds are like swords, I do fear. The old ones go to rust. Ah, and here is our milk.† The serving girl placed the tray between them, and Pycelle gave her a smile. â€Å"Sweet child.† He lifted a cup, tasted, nodded. â€Å"Thank you. You may go.† When the girl had taken her leave, Pycelle peered at Ned through pale, rheumy eyes. â€Å"Now where were we? Oh, yes. You asked about Lord Arryn . . . â€Å" â€Å"I did.† Ned sipped politely at the iced milk. It was pleasantly cold, but oversweet to his taste. â€Å"If truth be told, the Hand had not seemed quite himself for some time,† Pycelle said. â€Å"We had sat together on council many a year, he and I, and the signs were there to read, but I put them down to the great burdens he had borne so faithfully for so long. Those broad shoulders were weighed down by all the cares of the realm, and more besides. His son was ever sickly, and his lady wife so anxious that she would scarcely let the boy out of her sight. It was enough to weary even a strong man, and the Lord Jon was not young. Small wonder if he seemed melancholy and tired. Or so I thought at the time. Yet now I am less certain.† He gave a ponderous shake of his head. â€Å"What can you tell me of his final illness?† The Grand Maester spread his hands in a gesture of helpless sorrow. â€Å"He came to me one day asking after a certain book, as hale and healthy as ever, though it did seem to me that something was troubling him deeply. The next morning he was twisted over in pain, too sick to rise from bed. Maester Colemon thought it was a chill on the stomach. The weather had been hot, and the Hand often iced his wine, which can upset the digestion. When Lord Jon continued to weaken, I went to him myself, but the gods did not grant me the power to save him.† â€Å"I have heard that you sent Maester Colemon away.† The Grand Maester's nod was as slow and deliberate as a glacier. â€Å"I did, and I fear the Lady Lysa will never forgive me that. Maybe I was wrong, but at the time I thought it best. Maester Colemon is like a son to me, and I yield to none in my esteem for his abilities, but he is young, and the young ofttimes do not comprehend the frailty of an older body. He was purging Lord Arryn with wasting potions and pepper juice, and I feared he might kill him.† â€Å"Did Lord Arryn say anything to you during his final hours?† Pycelle wrinkled his brow. â€Å"In the last stage of his fever, the Hand called out the name Robert several times, but whether he was asking for his son or for the king I could not say. Lady Lysa would not permit the boy to enter the sickroom, for fear that he too might be taken ill. The king did come, and he sat beside the bed for hours, talking and joking of times long past in hopes of raising Lord Jon's spirits. His love was fierce to see.† â€Å"Was there nothing else? No final words?† â€Å"When I saw that all hope had fled, I gave the Hand the milk of the poppy, so he should not suffer. Just before he closed his eyes for the last time, he whispered something to the king and his lady wife, a blessing for his son. The seed is strong, he said. At the end, his speech was too slurred to comprehend. Death did not come until the next morning, but Lord Jon was at peace after that. He never spoke again.† Ned took another swallow of milk, trying not to gag on the sweetness of it. â€Å"Did it seem to you that there was anything unnatural about Lord Arryn's death?† â€Å"Unnatural?† The aged maester's voice was thin as a whisper. â€Å"No, I could not say so. Sad, for a certainty. Yet in its own way, death is the most natural thing of all, Lord Eddard. Jon Arryn rests easy now, his burdens lifted at last.† â€Å"This illness that took him,† said Ned. â€Å"Had you ever seen its like before, in other men?† â€Å"Near forty years I have been Grand Maester of the Seven Kingdoms,† Pycelle replied. â€Å"Under our good King Robert, and Aerys Targaryen before him, and his father Jaehaerys the Second before him, and even for a few short months under Jaehaerys's father, Aegon the Fortunate, the Fifth of His Name. I have seen more of illness than I care to remember, my lord. I will tell you this: Every case is different, and every case is alike. Lord Jon's death was no stranger than any other.† â€Å"His wife thought otherwise.† The Grand Maester nodded. â€Å"I recall now, the widow is sister to your own noble wife. If an old man may be forgiven his blunt speech, let me say that grief can derange even the strongest and most disciplined of minds, and the Lady Lysa was never that. Since her last stillbirth, she has seen enemies in every shadow, and the death of her lord husband left her shattered and lost.† â€Å"So you are quite certain that Jon Arryn died of a sudden illness?† â€Å"I am,† Pycelle replied gravely. â€Å"If not illness, my good lord, what else could it be?† â€Å"Poison,† Ned suggested quietly. Pycelle's sleepy eyes flicked open. The aged maester shifted uncomfortably in his seat. â€Å"A disturbing thought. We are not the Free Cities, where such things are common. Grand Maester Aethelmure wrote that all men carry murder in their hearts, yet even so, the poisoner is beneath contempt.† He fell silent for a moment, his eyes lost in thought. â€Å"What you suggest is possible, my lord, yet I do not think it likely. Every hedge maester knows the common poisons, and Lord Arryn displayed none of the signs. And the Hand was loved by all. What sort of monster in man's flesh would dare to murder such a noble lord?† â€Å"I have heard it said that poison is a woman's weapon.† Pycelle stroked his beard thoughtfully. â€Å"It is said. Women, cravens . . . and eunuchs.† He cleared his throat and spat a thick glob of phelm onto the rushes. Above them, a raven cawed loudly in the rookery. â€Å"The Lord Varys was born a slave in Lys, did you know? Put not your trust in spiders, my lord.† That was scarcely anything Ned needed to be told; there was something about Varys that made his flesh crawl. â€Å"I will remember that, Maester. And I thank you for your help. I have taken enough of your time.† He stood. Grand Maester Pycelle pushed himself up from his chair slowly and escorted Ned to the door. â€Å"I hope I have helped in some small way to put your mind at ease. If there is any other service I might perform, you need only ask.† â€Å"One thing,† Ned told him. â€Å"I should be curious to examine the book that you lent Jon the day before he fell ill.† â€Å"I fear you would find it of little interest,† Pycelle said. â€Å"It was a ponderous tome by Grand Maester Malleon on the lineages of the great houses.† â€Å"Still, I should like to see it.† The old man opened the door. â€Å"As you wish. I have it here somewhere. When I find it, I shall have it sent to your chambers straightaway.† â€Å"You have been most courteous,† Ned told him. Then, almost as an afterthought, he said, â€Å"One last question, if you would be so kind. You mentioned that the king was at Lord Arryn's bedside when he died. I wonder, was the queen with him?† â€Å"Why, no,† Pycelle said. â€Å"She and the children were making the journey to Casterly Rock, in company with her father. Lord Tywin had brought a retinue to the city for the tourney on Prince Joffrey's name day, no doubt hoping to see his son Jaime win the champion's crown. In that he was sadly disappointed. It fell to me to send the queen word of Lord Arryn's sudden death. Never have I sent off a bird with a heavier heart.† â€Å"Dark wings, dark words,† Ned murmured. It was a proverb Old Nan had taught him as a boy. â€Å"So the fishwives say,† Grand Maester Pycelle agreed, â€Å"but we know it is not always so. When Maester Luwin's bird brought the word about your Bran, the message lifted every true heart in the castle, did it not?† â€Å"As you say, Maester.† â€Å"The gods are merciful.† Pycelle bowed his head. â€Å"Come to me as often as you like, Lord Eddard. I am here to serve.† Yes, Ned thought as the door swung shut, but whom? On the way back to his chambers, he came upon his daughter Arya on the winding steps of the Tower of the Hand, windmilling her arms as she struggled to balance on one leg. The rough stone had scuffed her bare feet. Ned stopped and looked at her. â€Å"Arya, what are you doing?† â€Å"Syrio says a water dancer can stand on one toe for hours.† Her hands flailed at the air to steady herself. Ned had to smile. â€Å"Which toe?† he teased. â€Å"Any toe,† Arya said, exasperated with the question. She hopped from her right leg to her left, swaying dangerously before she regained her balance. â€Å"Must you do your standing here?† he asked. â€Å"It's a long hard fall down these steps.† â€Å"Syrio says a water dancer never falls.† She lowered her leg to stand on two feet. â€Å"Father, will Bran come and live with us now?† â€Å"Not for a long time, sweet one,† he told her. â€Å"He needs to win his strength back.† Arya bit her lip. â€Å"What will Bran do when he's of age?† Ned knelt beside her. â€Å"He has years to find that answer, Arya. For now, it is enough to know that he will live.† The night the bird had come from Winterfell, Eddard Stark had taken the girls to the castle godswood, an acre of elm and alder and black cottonwood overlooking the river. The heart tree there was a great oak, its ancient limbs overgrown with smokeberry vines; they knelt before it to offer their thanksgiving, as if it had been a weirwood. Sansa drifted to sleep as the moon rose, Arya several hours later, curling up in the grass under Ned's cloak. All through the dark hours he kept his vigil alone. When dawn broke over the city, the dark red blooms of dragon's breath surrounded the girls where they lay. â€Å"I dreamed of Bran,† Sansa had whispered to him. â€Å"I saw him smiling.† â€Å"He was going to be a knight,† Arya was saying now. â€Å"A knight of the Kingsguard. Can he still be a knight?† â€Å"No,† Ned said. He saw no use in lying to her. â€Å"Yet someday he may be the lord of a great holdfast and sit on the king's council. He might raise castles like Brandon the Builder, or sail a ship across the SunsetSea, or enter your mother's Faith and become the High Septon.† But he will never run beside his wolf again, he thought with a sadness too deep for words, or lie with a woman, or hold his own son in his arms. Arya cocked her head to one side. â€Å"Can I be a king's councillor and build castles and become the High Septon?† â€Å"You,† Ned said, kissing her lightly on the brow, â€Å"will marry a king and rule his castle, and your sons will be knights and princes and lords and, yes, perhaps even a High Septon.† Arya screwed up her face. â€Å"No,† she said, â€Å"that's Sansa.† She folded up her right leg and resumed her balancing. Ned sighed and left her there. Inside his chambers, he stripped off his sweat-stained silks and sluiced cold water over his head from the basin beside the bed. Alyn entered as he was drying his face. â€Å"My lord,† he said, â€Å"Lord Baelish is without and begs audience.† â€Å"Escort him to my solar,† Ned said, reaching for a fresh tunic, the lightest linen he could find. â€Å"I'll see him at once.† Littlefinger was perched on the window seat when Ned entered, watching the knights of the Kingsguard practice at swords in the yard below. â€Å"If only old Selmy's mind were as nimble as his blade,† he said wistfully, â€Å"our council meetings would be a good deal livelier.† â€Å"Ser Barristan is as valiant and honorable as any man in King's Landing.† Ned had come to have a deep respect for the aged, white-haired Lord Commander of the Kingsguard. â€Å"And as tiresome,† Littlefinger added, â€Å"though I daresay he should do well in the tourney. Last year he unhorsed the Hound, and it was only four years ago that he was champion.† The question of who might win the tourney interested Eddard Stark not in the least. â€Å"Is there a reason for this visit, Lord Petyr, or are you here simply to enjoy the view from my window?† Littlefinger smiled. â€Å"I promised Cat I would help you in your inquiries, and so I have.† That took Ned aback. Promise or no promise, he could not find it in him to trust Lord Petyr Baelish, who struck him as too clever by half. â€Å"You have something for me?† â€Å"Someone,† Littlefinger corrected. â€Å"Four someones, if truth be told. Had you thought to question the Hand's servants?† Ned frowned. â€Å"Would that I could. Lady Arryn took her household back to the Eyrie.† Lysa had done him no favor in that regard. All those who had stood closest to her husband had gone with her when she fled: Jon's maester, his steward, the captain of his guard, his knights and retainers. â€Å"Most of her household,† Littlefinger said, â€Å"not all. A few remain. A pregnant kitchen girl hastily wed to one of Lord Renly's grooms, a stablehand who joined the City Watch, a potboy discharged from service for theft, and Lord Arryn's squire.† â€Å"His squire?† Ned was pleasantly surprised. A man's squire often knew a great deal of his comings and goings. â€Å"Ser Hugh of the Vale,† Littlefinger named him. â€Å"The king knighted the boy after Lord Arryn's death.† â€Å"I shall send for him,† Ned said. â€Å"And the others.† Littlefinger winced. â€Å"My lord, step over here to the window, if you would be so kind.† â€Å"Why?† â€Å"Come, and I'll show you, my lord.† Frowning, Ned crossed to the window. Petyr Baelish made a casual gesture. â€Å"There, across the yard, at the door of the armory, do you see the boy squatting by the steps honing a sword with an oilstone?† â€Å"What of him?† â€Å"He reports to Varys. The Spider has taken a great interest in you and all your doings.† He shifted in the window seat. â€Å"Now glance at the wall. Farther west, above the stables. The guardsman leaning on the ramparts?† Ned saw the man. â€Å"Another of the eunuch's whisperers?† â€Å"No, this one belongs to the queen. Notice that he enjoys a fine view of the door to this tower, the better to note who calls on you. There are others, many unknown even to me. The Red Keep is full of eyes. Why do you think I hid Cat in a brothel?† Eddard Stark had no taste for these intrigues. â€Å"Seven hells,† he swore. It did seem as though the man on the walls was watching him. Suddenly uncomfortable, Ned moved away from the window. â€Å"Is everyone someone's informer in this cursed city?† â€Å"Scarcely,† said Littlefinger. He counted on the fingers on his hand. â€Å"Why, there's me, you, the king . . . although, come to think on it, the king tells the queen much too much, and I'm less than certain about you.† He stood up. â€Å"Is there a man in your service that you trust utterly and completely?† â€Å"Yes,† said Ned. â€Å"In that case, I have a delightful palace in Valyria that I would dearly love to sell you,† Littlefinger said with a mocking smile. â€Å"The wiser answer was no, my lord, but be that as it may. Send this paragon of yours to Ser Hugh and the others. Your own comings and goings will be noted, but even Varys the Spider cannot watch every man in your service every hour of the day.† He started for the door. â€Å"Lord Petyr,† Ned called after him. â€Å"I . . . am grateful for your help. Perhaps I was wrong to distrust you.† Littlefinger fingered his small pointed beard. â€Å"You are slow to learn, Lord Eddard. Distrusting me was the wisest thing you've done since you climbed down off your horse.†

Strategic Marketing at Burberry

Content Page Introduction2 1. Business planning and developing a strategy. 3 2. 1. The formation of Burberry’s new strategic business plan. 3 2. 2. Business strategy, vision and mission 4 2. 3. 1. Successful strategy and achieving the goals based on analysis. 5 2. 3. 2. Vision and mission7 2. Protect, Explore and Inspire. Burberry values. 8 3. 3. Values8 3. 4. Classification of Burberry values. 8 3. 5. 3. Protect8 3. 5. 4. Explore9 3. 5. 5. Inspire 10 3.Monitoring and evaluating of Burberry strategic goals and objectives. 11 Conclusion 12 References 13 Introduction The report below tells about the history and development of the iconic luxury brand from Britain, Burberry. It reflects the company’s mission, vision and core purpose, which consequently form the values of the brand. The report indicates the key strategic goals and objectives, which form the competitive advantage of the company, how they are being monitored and evaluated.Having been found as a small shop in B asingstoke, Hampshire, by a young draper Thomas Burberry in 1856 and developed into a large world-know brand ever since, Burberry is one of the first names that springs in mind when it comes to fashion and luxury. [4] The company went through many-years history of change and development. However, the core Burberry product still remains the trench coat made out of the brand weatherproof but breathable Gabardine invented and introduced by Thomas Burberry himself in 1880. [4] Today, according to Business Weekly, Burberry is the 98th most valuable brand. 10] 1. Business planning and developing a strategy Creating the strategy of an organisation is a part of business planning, on one hand, but it is the essence of the strategic planning on the other, where the difference between the strategic plans and the business planning is only in timing of implementing and the process of evaluating the two. Different authors writing in the field of strategic marketing give various definitions of str ategic planning. However, all of them tend to agree in the fact that it always includes the major points below. Vision – developing a common â€Å"vision for the future† or a â€Å"conceptualization† of where an organisation wants or desires to be in the long-term;[10] * Assessment – appraising or determining where an organisation is currently (i. e. , its goals, objectives, activities, results, etc. );[10] * Strategies – identifying how an organisation will actually realise (via concrete and predetermined actions) its mission, goals, and objectives;[10] * Measurement – evaluating the progress of an organisation in the implementation of its action strategies. [10]The report below will be based on the resumptive understanding of the term as a process of formulating of the mission, vision and goals of the organization and choosing the specific paths for outlining and gaining the desired resources to be used in order to provide the successful f unctioning of an organisation in future. Strategic planning is a useful tool in making the decisions concerning the total management of an organisation. Its main purpose is to ensure the right amount of innovation and modification for the organisation to be able to respond to the changes on the market.However, creating a strategy does not lead to an immediate action, but it sets up the general direction for the company to follow in order for its fence-mending and growth. 2. 1. The formation of Burberry’s new strategic business plan One of the main features that characterizes the strategic plan is its possibility to be adapted to the ever changing circumstances initiated by both internal and external factors. Thus over the decades Burberry has been changing its strategy and approach to trading.So when the age of the globalization brought new strong competitors into the market new ways of winning the customers loyalty and preference were to be found. In the 2006 the current CEO Angela Ahrendts joins the company replacing Rose Maria Bravo, who managed to greatly expand the Burberry market share in the US. [6] Ahrendts modernizes every aspect of the company’s behaviour and positioning itself on the market having chosen an innovative five year strategic business plan. 2. 2. Business strategy, vision and missionAccording to the new plan the company concentrates its investment efforts on opening its own stores rather than on the wholesale, especially in London. The new CEO recognizes Burberry’s presence in its genuine way and major PR activity in this city precisely, as another way to emphasize the British heritage of the brand. However, Ahrendts points out there are 25 such â€Å"Londons †, where Burberry will strive for recognition and loyalty, which include such metropolises as Paris, New York, Hong Kong, Dubai, etc. 12] As due to the fact that the company produces luxury goods Ahrendts prefers to play more or less safe and concentrate on those parts of the world which are likely to be protected from the wider economic problems. As another crucial factor for the growth and development that Ahrendts chooses, predicting the future customer be younger, is the company to not maintain their traditional product line and merchandising way only, but to enhance it with the new design and presentation to be able to satisfy the demand of the new type of a customer.Thus the new strategy with the new vision and mission appeared that has brought changes into every area of the company. 2. 3. 1. Successful strategy and achieving the goals based on analysis According to Michael Porter â€Å"Competitive strategy is about being different. It means deliberately choosing different set of activities to deliver a unique mix of value†. [13]The creation and the development of a new strategy to manage such a diverse business with the global outreach as Burberry is very complex in nature. Depending on various both internal and extern al factors it often requires to be made in the uncertain situations.It also often involves the radical change in the current culture of an organisation which is always uneasy for the employees and may adversely affect the performance of the organisation. Being an international company with the Global outreach makes it challenging for the company like Burberry to develop and maintain the competitive strategy that will encourage financial growth and gain advantage on the market. Nevertheless, Angela Ahrendts chooses the most ambitious and strategic plan Burberry has had in almost 50 years. * Leveraging the franchise[4]Where the goals are brand momentum by consistent global articulation, marketing innovation and product excellence. * Intensifying the development of non-apparel[4] By focusing on the yet under-penetrated non-apparel categories, such as men’s collections, soft accessories collections and licensing the eyewear, fragrance, make-up and watches products globally. * Acc elerating retail-led growth[4] To change the static wholesale model of the company to a dynamic retail model by driving the productivity, putting the customer needs in the centre, and investment into opening new stores. Investing in the underpenetrated markets[4] The goals are engaging China, developing India and the Middle East markets and elevating the wholesale presence. * Pursuing operational excellence[4] To be recognised not only by operational excellence, but by product and marketing excellence. However, despite the most well-considered strategy a company is always dependent on both internal and external factors able to make an impact on its development and trade. PESTEL method will help to analyse the macro external environment Burberry may find difficult to deal with in order to realise its strategic plan.Political| Economical| Social| Technological| Environmental| Legal| Being an international company may create problems with possible tensions between the governments of th e countries where Burberry trading takes place| Continuous recession| Fairtrade responsibilitiesAnti-fur/ leather campaigns| New highly technological approaches to selling , buying and advertising the product appear| The impact on the Planet while manufacturing and transporting the goods | Different taxation and trading rules and regulations in different countries|However, not only the macro external factors, but the micro external factors too might cause obstacles for the company’s strategy. Michael Porter’s Five Forces analyses gives the clearest understanding of the micro external environment, which includes the threat of the existing competitive rivalry, threat of bargaining power of the suppliers, threat of substantial products, as well as the threat of the customer bargaining power and the threat of the new entrants. It can be seen from the scheme, that Burberry’s main existing competitors include Stella McCartney in the market of clothing and shoes (appar el); Hermes in the non-apparel market, e. . bags and scarfs; and Chanel to talk about make-up. Moreover there is also a threat from the substantial products, such as those produced by Sisley, Ted Baker and Karen Miller, which are not luxury brands, however do have a reputation of a great quality and they are also British. Which means in times of recession people might switch to them. There is a threat from the suppliers in case they would increase the price, as Burberry only works with those the members of the Ethical Trading Action Group.There is a threat coming from the customers too due to the fact that most of the Burberry products are fashion oriented, which means once they are out of fashion, people will refuse buying them. However, the threat of the new entrants is not essential, as even though the new brands may offer novelty, they cannot offer the name with such a rich background and heritage that Burberry has. All of these factors must be taken into consideration for Burbe rry current strategy to be successful. 2. 3. 2. Vision and missionWith the appointing of Angela Ahrendts as a CEO in 2006 when the Internet was booming bursting the opportunities of the global trade with its no-boarders possibilities, Burberry steps on a completely new path of high-tech cooperation with its customer. [5] With the core Burberry ideology of â€Å"The faster we move forward, it becomes even more critical to look back and never forget who we are and never forget where we came from. And what made this brand such a great global luxury brand today†[2] in mind Ahrends sets the new core purpose for Burberry. We had a vision† – she admits in one of the interviews – â€Å"And the vision was to be the first company who was fully digital from end-to-end†. [2] Ever since the company has been working on integrating various digital approaches to its business. Burberry’s advertising campaigns and catwalk shows became more and more technologic ally complex whereas the on-line trading on the contrary became easier and more available by the company’s partnering with various on-line selling platforms to take that vision and built the social enterprise.The experience expected was that the customer would have the total access to Burberry across any device anywhere and would get exactly the same feeling of the brand, feeling of the culture, regardless of where, when, how they were accessing the brand. Everyone now should be able come into Burberry world and see the Burberry journey and mission. The new vision enhanced the Burberry mission to sell its â€Å"distinctive Britishness† to the world with the new flavour of community that every customer is believed to become a part of buying or at least being interested in a Burberry product.Such attitude intends to create greater customer’s loyalty to the brand as this is the community, where one’s opinion in a way of a feedback is valued and appreciated. Even the personal preferences of how the core Burberry product should look like is taken into consideration from now on as the company launched www. artofthetrench. com web platform, where anyone can post their photos wearing a Burberry trench, moreover, can create their own trench coat based on the iconic trench from Burberry. Ahrendts goal is to deepen, broaden and vary the communication between the company and the customer through every activity the company is involved in.She emphasizes on the vital necessity of the cross-channel communication to be â€Å"totally connected to everyone who touches your brand†. [2] The new vision and the new additions to the established mission of the company have formed the brand’s new strategic intentions 2. Protect, Explore and Inspire. Burberry values. 3. 3. Values Burberry is a brand with over 150 years of history. [6] All that time the company has been run by the efforts of many people and, naturally, these people might have bee n of a completely different personalities, views and opinions. However, being a company, which in this case is Burberry, draw hese people together united not only by common vision of where the company is going, but also by the values, which in a context of a corporate culture set the behavioural norms of the company through years for everyone who entered it. Edgar H. Schein describes corporate values as â€Å"A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems†. 7] Burberry defines their core values as Protect, Explore and Inspire. Angela Ahrendts, Burberry’s CEO, often refers to the company as the â€Å"new and old company†[9] and such description definitely reflects the way the company constantly strives for the new opportunities, but always staying faithful to its old priorities. The essence of the Protect, Explore and Inspire company’s core values can be explained through the objectives of Burberry as an organization. 2. 2. Classification of Burberry values 2. 2. 1. Protect 1. Cultural value of the company to traditionally remain a â€Å"quintessentially British† brand.Burberry is proud of its rich heritage which has seen over a 150 years of British history. Thus the company is passionate about the the authenticity of their trade mark and core product in design and purpose, such as world-wide recognized trademark check and Prorsum horse logo and a traditional modern classic style trench coat. 2. Environmental value aims the environmental excellence of the company. Burberry is continuously aware about the environmental issues, such as climate change and carbon dioxide emissions and animal welfare, for example.The company is a member of the UN Global Compact and uses the Compact’s Ten Principles to guide its Corporate Responsibility activities. It is listed on the FTSE4Good Index and achieved the Carbon Trust Standard. [15] The work of the Business for Social Responsibility Sustainable Luxury Working Group, of which Burberry was a founding member, also continued this year, focusing on animal welfare guidelines and the exotic skins supply chain. As a result, the release of a common Animal Welfare Policy by the Group was communicated to Burberry suppliers, detailing its high expectations in respect of welfare standards. 15] Burberry is also a member of the Leather Working Group, supporting its efforts to improve transparency in the leather industry. Burberry does not utilise sandblasting on any of its products manufactured by or on behalf of the Group. [15] 3. Ethical value is in the desire of the brand to ensure the rights of their employees are highly valued and carefully followed. Burberry constantly shows its striving towards the improved C orporate Responsibility (CR) performance.To achieve long-term improvements in labour conditions, Burberry provides support and resources to suppliers to empower them to take responsibility for their factory and subcontractor conditions. The CR team delivers supplier training covering the Group’s ethical trading expectations, management systems and counsel on transparency and standards for subcontractors. [5] Burberry strongly believes that a policy of equal opportunity in employment is integral to the strength and growth of its business as a global brand with a diverse stakeholder and customer base.The company aims to ensure that the most capable job applicants are recruited and the most competent employees in the company progress. All decisions about people’s employment are based solely on an objective assessment of their suitability for the job. Burberry aims to maintain a working environment free from harassment or intimidation on discriminatory grounds and ensures that employment conditions and job requirements reflect its commitment to equal opportunities. [5] 2. 2. 2. Explore Burberry values in that area are very much business oriented.Thomas Burberry, the founder of the brand, explored the world of outerwear of his generation by inventing his sensational waterproof Gabardine and a trench coat, which none has ever seen nor worn before. Today Burberry’s aims to expand its production range to make it as diverse as possible to increase the market share. However at the moment the range already goes from the core innovative outerwear to not only womenswear and menswear, but to the non-apparel items, e. g. accessories, watches, childrenswear and even some home decoration items. 8] Burberry has always been aiming for the new markets: first sports and outdoors, then military usage and later civilian clothing. Now that the company has established itself on the different types of market, it is striving for the geographical expansion taking mar kets throughout the world, with a balance across major geographic regions. 2. 2. 3. Inspire They are the Burberry social objectives. Burberry believes that contributing into the local communities the company works with will make a positive impact.In 2008 Burberry established the Burberry Foundation charity organisation the purpose of which was to help young people realise their potential through fashion and creativity, built their confidence and self-esteem. [9] 3. Monitoring and evaluating of the strategic goals and objectives Ahrendts approach to monitoring and evaluating of the strategy execution and achieving the goals is â€Å"Divide and conquer†. According to that there were particular teams created to monitor and evaluate particular aspect of the new strategy. Design team, headed by Chief Creative Office, responsible for everything the consumer sees, including merchandising and creative media;[4] †¢Marketing team responsible for integrated advertising, PR and comm unications functions, which together focus on building and elevating brand awareness through traditional and digital media;[4] †¢Digital commerce newly-formed team, driving digital commerce globally to accelerate the brand’s digital leadership position in the luxury sector and help unlock the huge opportunities in this high-growth channel;[4] †¢Merchandising and planning team, which assorts, procures, and analyses the global collections in alignment with brand initiatives and commercial opportunities. [4] Every year Burberry reveals their annual results and achievements according to the itinerary in their annual report. ConclusionA straight forward highly innovative strategy by the new Burberry CEO caused uncertain reaction from different people in 2006 as well as it still causes doubts. Some think those were unnecessary changes, which made Burberry loose its original look and spirit, and some believe it was the best thing that have happened to Burberry in the last 50 years. However, the facts and numbers indicate that Burberry grew up to 500 stores in over 50 countries and led to increase the total revenue up to +23% in five years by September 2012 with the on-line sales increase in 50%. [3] Almost certainly the course has been changing during those five years due to the macro and micro external factors, which were indicated above.Nonetheless, it is obvious that creating a relevant and detailed strategic business plan and a consistent monitoring of its results and execution are crucial for a successful management of the company. Also, the earliest possible setting of the strategic goals and stating the company’s vision and mission and staying faithful to them makes the strategic plan effective. And in conclusion, understanding the values of an organisation will keep the corporate culture of the company stable, which is directly linked to productivity and job satisfaction among employees. References 1. Angela Ahrendts. (2011). Burberry uses salesforce com to create the ultimate Social Enterprise. Available: http://www. youtube. com/watch? v=oRpLo44nUEQ. Last accessed 13. 12. 2012. 2.Angela Ahrendts. (2011). The Young-Old Company – Angela Ahrendts, Burberry. Available: http://www. youtube. com/watch? v=_i50d6wiCBc. Last accessed 13. 12. 2012. 3. Burberry. (2012). Annual report. Available: http://www. burberryplc. com/documents/full_annual_report/burberry_ar_final_web_with-urls_indexed. pdf. Last accessed 13. 12. 2012 4. Burberry. (2012). Annual report. Available: http://www. burberryplc. com/documents/full_annual_report/burberry_ar_final_web_with-urls_indexed. pdf. Last accessed 13. 12. 2012. 5. BW staff. (2009). The 100 Best Global Brands 2009. Available: http://images. businessweek. com/ss/09/09/0917_global_brands/4. htm . Last Strategic Marketing at Burberry Content Page Introduction2 1. Business planning and developing a strategy. 3 2. 1. The formation of Burberry’s new strategic business plan. 3 2. 2. Business strategy, vision and mission 4 2. 3. 1. Successful strategy and achieving the goals based on analysis. 5 2. 3. 2. Vision and mission7 2. Protect, Explore and Inspire. Burberry values. 8 3. 3. Values8 3. 4. Classification of Burberry values. 8 3. 5. 3. Protect8 3. 5. 4. Explore9 3. 5. 5. Inspire 10 3.Monitoring and evaluating of Burberry strategic goals and objectives. 11 Conclusion 12 References 13 Introduction The report below tells about the history and development of the iconic luxury brand from Britain, Burberry. It reflects the company’s mission, vision and core purpose, which consequently form the values of the brand. The report indicates the key strategic goals and objectives, which form the competitive advantage of the company, how they are being monitored and evaluated.Having been found as a small shop in B asingstoke, Hampshire, by a young draper Thomas Burberry in 1856 and developed into a large world-know brand ever since, Burberry is one of the first names that springs in mind when it comes to fashion and luxury. [4] The company went through many-years history of change and development. However, the core Burberry product still remains the trench coat made out of the brand weatherproof but breathable Gabardine invented and introduced by Thomas Burberry himself in 1880. [4] Today, according to Business Weekly, Burberry is the 98th most valuable brand. 10] 1. Business planning and developing a strategy Creating the strategy of an organisation is a part of business planning, on one hand, but it is the essence of the strategic planning on the other, where the difference between the strategic plans and the business planning is only in timing of implementing and the process of evaluating the two. Different authors writing in the field of strategic marketing give various definitions of str ategic planning. However, all of them tend to agree in the fact that it always includes the major points below. Vision – developing a common â€Å"vision for the future† or a â€Å"conceptualization† of where an organisation wants or desires to be in the long-term;[10] * Assessment – appraising or determining where an organisation is currently (i. e. , its goals, objectives, activities, results, etc. );[10] * Strategies – identifying how an organisation will actually realise (via concrete and predetermined actions) its mission, goals, and objectives;[10] * Measurement – evaluating the progress of an organisation in the implementation of its action strategies. [10]The report below will be based on the resumptive understanding of the term as a process of formulating of the mission, vision and goals of the organization and choosing the specific paths for outlining and gaining the desired resources to be used in order to provide the successful f unctioning of an organisation in future. Strategic planning is a useful tool in making the decisions concerning the total management of an organisation. Its main purpose is to ensure the right amount of innovation and modification for the organisation to be able to respond to the changes on the market.However, creating a strategy does not lead to an immediate action, but it sets up the general direction for the company to follow in order for its fence-mending and growth. 2. 1. The formation of Burberry’s new strategic business plan One of the main features that characterizes the strategic plan is its possibility to be adapted to the ever changing circumstances initiated by both internal and external factors. Thus over the decades Burberry has been changing its strategy and approach to trading.So when the age of the globalization brought new strong competitors into the market new ways of winning the customers loyalty and preference were to be found. In the 2006 the current CEO Angela Ahrendts joins the company replacing Rose Maria Bravo, who managed to greatly expand the Burberry market share in the US. [6] Ahrendts modernizes every aspect of the company’s behaviour and positioning itself on the market having chosen an innovative five year strategic business plan. 2. 2. Business strategy, vision and missionAccording to the new plan the company concentrates its investment efforts on opening its own stores rather than on the wholesale, especially in London. The new CEO recognizes Burberry’s presence in its genuine way and major PR activity in this city precisely, as another way to emphasize the British heritage of the brand. However, Ahrendts points out there are 25 such â€Å"Londons †, where Burberry will strive for recognition and loyalty, which include such metropolises as Paris, New York, Hong Kong, Dubai, etc. 12] As due to the fact that the company produces luxury goods Ahrendts prefers to play more or less safe and concentrate on those parts of the world which are likely to be protected from the wider economic problems. As another crucial factor for the growth and development that Ahrendts chooses, predicting the future customer be younger, is the company to not maintain their traditional product line and merchandising way only, but to enhance it with the new design and presentation to be able to satisfy the demand of the new type of a customer.Thus the new strategy with the new vision and mission appeared that has brought changes into every area of the company. 2. 3. 1. Successful strategy and achieving the goals based on analysis According to Michael Porter â€Å"Competitive strategy is about being different. It means deliberately choosing different set of activities to deliver a unique mix of value†. [13]The creation and the development of a new strategy to manage such a diverse business with the global outreach as Burberry is very complex in nature. Depending on various both internal and extern al factors it often requires to be made in the uncertain situations.It also often involves the radical change in the current culture of an organisation which is always uneasy for the employees and may adversely affect the performance of the organisation. Being an international company with the Global outreach makes it challenging for the company like Burberry to develop and maintain the competitive strategy that will encourage financial growth and gain advantage on the market. Nevertheless, Angela Ahrendts chooses the most ambitious and strategic plan Burberry has had in almost 50 years. * Leveraging the franchise[4]Where the goals are brand momentum by consistent global articulation, marketing innovation and product excellence. * Intensifying the development of non-apparel[4] By focusing on the yet under-penetrated non-apparel categories, such as men’s collections, soft accessories collections and licensing the eyewear, fragrance, make-up and watches products globally. * Acc elerating retail-led growth[4] To change the static wholesale model of the company to a dynamic retail model by driving the productivity, putting the customer needs in the centre, and investment into opening new stores. Investing in the underpenetrated markets[4] The goals are engaging China, developing India and the Middle East markets and elevating the wholesale presence. * Pursuing operational excellence[4] To be recognised not only by operational excellence, but by product and marketing excellence. However, despite the most well-considered strategy a company is always dependent on both internal and external factors able to make an impact on its development and trade. PESTEL method will help to analyse the macro external environment Burberry may find difficult to deal with in order to realise its strategic plan.Political| Economical| Social| Technological| Environmental| Legal| Being an international company may create problems with possible tensions between the governments of th e countries where Burberry trading takes place| Continuous recession| Fairtrade responsibilitiesAnti-fur/ leather campaigns| New highly technological approaches to selling , buying and advertising the product appear| The impact on the Planet while manufacturing and transporting the goods | Different taxation and trading rules and regulations in different countries|However, not only the macro external factors, but the micro external factors too might cause obstacles for the company’s strategy. Michael Porter’s Five Forces analyses gives the clearest understanding of the micro external environment, which includes the threat of the existing competitive rivalry, threat of bargaining power of the suppliers, threat of substantial products, as well as the threat of the customer bargaining power and the threat of the new entrants. It can be seen from the scheme, that Burberry’s main existing competitors include Stella McCartney in the market of clothing and shoes (appar el); Hermes in the non-apparel market, e. . bags and scarfs; and Chanel to talk about make-up. Moreover there is also a threat from the substantial products, such as those produced by Sisley, Ted Baker and Karen Miller, which are not luxury brands, however do have a reputation of a great quality and they are also British. Which means in times of recession people might switch to them. There is a threat from the suppliers in case they would increase the price, as Burberry only works with those the members of the Ethical Trading Action Group.There is a threat coming from the customers too due to the fact that most of the Burberry products are fashion oriented, which means once they are out of fashion, people will refuse buying them. However, the threat of the new entrants is not essential, as even though the new brands may offer novelty, they cannot offer the name with such a rich background and heritage that Burberry has. All of these factors must be taken into consideration for Burbe rry current strategy to be successful. 2. 3. 2. Vision and missionWith the appointing of Angela Ahrendts as a CEO in 2006 when the Internet was booming bursting the opportunities of the global trade with its no-boarders possibilities, Burberry steps on a completely new path of high-tech cooperation with its customer. [5] With the core Burberry ideology of â€Å"The faster we move forward, it becomes even more critical to look back and never forget who we are and never forget where we came from. And what made this brand such a great global luxury brand today†[2] in mind Ahrends sets the new core purpose for Burberry. We had a vision† – she admits in one of the interviews – â€Å"And the vision was to be the first company who was fully digital from end-to-end†. [2] Ever since the company has been working on integrating various digital approaches to its business. Burberry’s advertising campaigns and catwalk shows became more and more technologic ally complex whereas the on-line trading on the contrary became easier and more available by the company’s partnering with various on-line selling platforms to take that vision and built the social enterprise.The experience expected was that the customer would have the total access to Burberry across any device anywhere and would get exactly the same feeling of the brand, feeling of the culture, regardless of where, when, how they were accessing the brand. Everyone now should be able come into Burberry world and see the Burberry journey and mission. The new vision enhanced the Burberry mission to sell its â€Å"distinctive Britishness† to the world with the new flavour of community that every customer is believed to become a part of buying or at least being interested in a Burberry product.Such attitude intends to create greater customer’s loyalty to the brand as this is the community, where one’s opinion in a way of a feedback is valued and appreciated. Even the personal preferences of how the core Burberry product should look like is taken into consideration from now on as the company launched www. artofthetrench. com web platform, where anyone can post their photos wearing a Burberry trench, moreover, can create their own trench coat based on the iconic trench from Burberry. Ahrendts goal is to deepen, broaden and vary the communication between the company and the customer through every activity the company is involved in.She emphasizes on the vital necessity of the cross-channel communication to be â€Å"totally connected to everyone who touches your brand†. [2] The new vision and the new additions to the established mission of the company have formed the brand’s new strategic intentions 2. Protect, Explore and Inspire. Burberry values. 3. 3. Values Burberry is a brand with over 150 years of history. [6] All that time the company has been run by the efforts of many people and, naturally, these people might have bee n of a completely different personalities, views and opinions. However, being a company, which in this case is Burberry, draw hese people together united not only by common vision of where the company is going, but also by the values, which in a context of a corporate culture set the behavioural norms of the company through years for everyone who entered it. Edgar H. Schein describes corporate values as â€Å"A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems†. 7] Burberry defines their core values as Protect, Explore and Inspire. Angela Ahrendts, Burberry’s CEO, often refers to the company as the â€Å"new and old company†[9] and such description definitely reflects the way the company constantly strives for the new opportunities, but always staying faithful to its old priorities. The essence of the Protect, Explore and Inspire company’s core values can be explained through the objectives of Burberry as an organization. 2. 2. Classification of Burberry values 2. 2. 1. Protect 1. Cultural value of the company to traditionally remain a â€Å"quintessentially British† brand.Burberry is proud of its rich heritage which has seen over a 150 years of British history. Thus the company is passionate about the the authenticity of their trade mark and core product in design and purpose, such as world-wide recognized trademark check and Prorsum horse logo and a traditional modern classic style trench coat. 2. Environmental value aims the environmental excellence of the company. Burberry is continuously aware about the environmental issues, such as climate change and carbon dioxide emissions and animal welfare, for example.The company is a member of the UN Global Compact and uses the Compact’s Ten Principles to guide its Corporate Responsibility activities. It is listed on the FTSE4Good Index and achieved the Carbon Trust Standard. [15] The work of the Business for Social Responsibility Sustainable Luxury Working Group, of which Burberry was a founding member, also continued this year, focusing on animal welfare guidelines and the exotic skins supply chain. As a result, the release of a common Animal Welfare Policy by the Group was communicated to Burberry suppliers, detailing its high expectations in respect of welfare standards. 15] Burberry is also a member of the Leather Working Group, supporting its efforts to improve transparency in the leather industry. Burberry does not utilise sandblasting on any of its products manufactured by or on behalf of the Group. [15] 3. Ethical value is in the desire of the brand to ensure the rights of their employees are highly valued and carefully followed. Burberry constantly shows its striving towards the improved C orporate Responsibility (CR) performance.To achieve long-term improvements in labour conditions, Burberry provides support and resources to suppliers to empower them to take responsibility for their factory and subcontractor conditions. The CR team delivers supplier training covering the Group’s ethical trading expectations, management systems and counsel on transparency and standards for subcontractors. [5] Burberry strongly believes that a policy of equal opportunity in employment is integral to the strength and growth of its business as a global brand with a diverse stakeholder and customer base.The company aims to ensure that the most capable job applicants are recruited and the most competent employees in the company progress. All decisions about people’s employment are based solely on an objective assessment of their suitability for the job. Burberry aims to maintain a working environment free from harassment or intimidation on discriminatory grounds and ensures that employment conditions and job requirements reflect its commitment to equal opportunities. [5] 2. 2. 2. Explore Burberry values in that area are very much business oriented.Thomas Burberry, the founder of the brand, explored the world of outerwear of his generation by inventing his sensational waterproof Gabardine and a trench coat, which none has ever seen nor worn before. Today Burberry’s aims to expand its production range to make it as diverse as possible to increase the market share. However at the moment the range already goes from the core innovative outerwear to not only womenswear and menswear, but to the non-apparel items, e. g. accessories, watches, childrenswear and even some home decoration items. 8] Burberry has always been aiming for the new markets: first sports and outdoors, then military usage and later civilian clothing. Now that the company has established itself on the different types of market, it is striving for the geographical expansion taking mar kets throughout the world, with a balance across major geographic regions. 2. 2. 3. Inspire They are the Burberry social objectives. Burberry believes that contributing into the local communities the company works with will make a positive impact.In 2008 Burberry established the Burberry Foundation charity organisation the purpose of which was to help young people realise their potential through fashion and creativity, built their confidence and self-esteem. [9] 3. Monitoring and evaluating of the strategic goals and objectives Ahrendts approach to monitoring and evaluating of the strategy execution and achieving the goals is â€Å"Divide and conquer†. According to that there were particular teams created to monitor and evaluate particular aspect of the new strategy. Design team, headed by Chief Creative Office, responsible for everything the consumer sees, including merchandising and creative media;[4] †¢Marketing team responsible for integrated advertising, PR and comm unications functions, which together focus on building and elevating brand awareness through traditional and digital media;[4] †¢Digital commerce newly-formed team, driving digital commerce globally to accelerate the brand’s digital leadership position in the luxury sector and help unlock the huge opportunities in this high-growth channel;[4] †¢Merchandising and planning team, which assorts, procures, and analyses the global collections in alignment with brand initiatives and commercial opportunities. [4] Every year Burberry reveals their annual results and achievements according to the itinerary in their annual report. ConclusionA straight forward highly innovative strategy by the new Burberry CEO caused uncertain reaction from different people in 2006 as well as it still causes doubts. Some think those were unnecessary changes, which made Burberry loose its original look and spirit, and some believe it was the best thing that have happened to Burberry in the last 50 years. However, the facts and numbers indicate that Burberry grew up to 500 stores in over 50 countries and led to increase the total revenue up to +23% in five years by September 2012 with the on-line sales increase in 50%. [3] Almost certainly the course has been changing during those five years due to the macro and micro external factors, which were indicated above.Nonetheless, it is obvious that creating a relevant and detailed strategic business plan and a consistent monitoring of its results and execution are crucial for a successful management of the company. Also, the earliest possible setting of the strategic goals and stating the company’s vision and mission and staying faithful to them makes the strategic plan effective. And in conclusion, understanding the values of an organisation will keep the corporate culture of the company stable, which is directly linked to productivity and job satisfaction among employees. References 1. Angela Ahrendts. (2011). Burberry uses salesforce com to create the ultimate Social Enterprise. Available: http://www. youtube. com/watch? v=oRpLo44nUEQ. Last accessed 13. 12. 2012. 2.Angela Ahrendts. (2011). The Young-Old Company – Angela Ahrendts, Burberry. Available: http://www. youtube. com/watch? v=_i50d6wiCBc. Last accessed 13. 12. 2012. 3. Burberry. (2012). Annual report. Available: http://www. burberryplc. com/documents/full_annual_report/burberry_ar_final_web_with-urls_indexed. pdf. Last accessed 13. 12. 2012 4. Burberry. (2012). Annual report. Available: http://www. burberryplc. com/documents/full_annual_report/burberry_ar_final_web_with-urls_indexed. pdf. Last accessed 13. 12. 2012. 5. BW staff. (2009). The 100 Best Global Brands 2009. Available: http://images. businessweek. com/ss/09/09/0917_global_brands/4. htm . Last