History of Googles Development

History of Googles Development 1.1.0 HISTORY OF GOOGLE Google began in January 1996, as a research project by Larry Page, who was soon joined by Sergey Brin, when they were both PhD students at Stanford University in California. They hypothesized that a search engine that analyzed the relationships between websites would produce better ranking of results than existing techniques, which ranked results according to the number of times the search term appeared on a page. Their search engine was originally nicknamed BackRub because the system checked backlinks to estimate the importance of a site. A small search engine called Rankdex was already exploring a similar strategy. Convinced that the pages with the most links to them from other highly relevant web pages must be the most relevant pages associated with the search, Page and Brin tested their thesis as part of their studies, and laid the foundation for their search engine. Originally, the search engine used the Stanford University website with the domain google.stanford.edu. The domain google.com was registered on 15 September 1997, and the company was incorporated as Google Inc. on 4 September 1998 at a friends garage in Menlo Park, California. The total initial investment raised for the new company amounted to almost $1.1 million, including a $100,000 check by Andy Bechtolsheim, one of the founders of Sun Microsystems. Both Brin and Page had been against using advertising pop-ups in a search engine, or an advertising funded search engines model, and they wrote a research paper in 1998 on the topic while still students. However, they soon changed their minds and early on allowed simple text ads. In March 1999, the company moved into offices in Palo Alto, home to several other noted Silicon Valley technology startups. After quickly outgrowing two other sites, the company leased a complex of buildings in Mountain View, California at 1600 Amphitheatre Parkway from Silicon Graphics (SGI) in 2003. The company has remained at this location ever since, and the complex has since come to be known as the googolplex (a play on the word googolplex). In 2006, Google bought the property from SGI for $319 million. 1.1.1 Name of Google The name Google originated from a misspelling of the word googol, which refers to 10100, the number represented by a 1 followed by one hundred zeros. Having found its way increasingly into everyday language, the verb google was added to the Merriam Webster Collegiate Dictionary and the Oxford English Dictionary in 2006, meaning to use the Google search engine to obtain information on the Internet. 1.1.2 Growth of Google While the primary business interest is in the web content arena, Google has begun experimenting with other markets, such as radio and print publications. On 17 January 2006, Google announced the purchase of a radio advertising company dMarc, which provides an automated system that allows companies to advertise on the radio. This will allow Google to combine two niche advertising media-the Internet and radio-with Googles ability to laser-focus on the tastes of consumers. Google has also begun an experiment in selling advertisements from its advertisers in offline newspapers and magazines, with select advertisements in the Chicago Sun-Times. They have been filling unsold space in the newspaper that would have normally been used for in-house advertisements. 1.2.0 GOOGLE PRODUCTS AND SERVICES Google product development philosophy involves rapid and continuous innovation, with frequent releases of early-stage products that they then iterate and improve. Google often make products available early in their development stages by posting them on Google Labs, at test locations online or directly on Google.com. If their users find a product useful, they promote it to beta status for additional testing. Once they are satisfied that a product is of high quality and utility, they remove the beta label and make it a core Google product. Their main products and services are described below. 1.2.1 Google.com Search and Personalization They are focused on building products and services on the Google web sites that benefit their users and let them find relevant information quickly and easily. These products and services include: Google Web Search, In addition to providing easy access to billions of Web pages, they have integrated special features into Google Web Search to help people find exactly what they are looking for on the web. Google Image Search, Google Image Search is a searchable index of images found across the web. To extend the usefulness of Google Image Search, Google offers advanced features, such as searching by image size, format and coloration and restricting searches to specific web sites or domains. Google Video, Google Video lets users upload, find, view and share video content worldwide. iGoogle and Personalized Search, iGoogle connects users to the information that is most useful and important to them in an easy-to-use and customizable format. Users add gadgets and themes created by Google and developers to create a powerful and personalized homepage and arrange the content the way they want. 1.2.2 Application Information created by a single user becomes much more valuable when shared and combined with information from other people or places. Therefore their strategy for products Google develop in this space is simple: develop tools for their users to create, share and communicate any information generated by the user, thus making the information more useful and manageable. Examples of products Google have developed with this strategy in mind include: Google Docs, Google Docs allows their users to create, view and edit documents, spreadsheets, and presentations from anywhere using a browser. These documents are useful to their users as they are accessible anywhere internet access is available, manageable as they are stored within their servers and automatically backed up, and shareable in that they allow real time editing with co-workers and friends over the internet. Gmail, Gmail is Googles free webmail service that comes with built-in Google search technology to allow searching of emails and over seven gigabytes of storage, allowing users to keep their important messages, files and pictures. Google serve small text ads that are relevant to the messages in Gmail. Orkut, Orkut enables users to search and connect to other users through networks of trusted friends. Users can create a profile, personal mailboxes, post photos and join or manage online communities. Google Sites, Google Sites allows users to easily create, update and publish content online without technical expertise, with control over who can see and update the site. Google Sites supports a variety of information such as videos, calendars, presentations, spreadsheets, discussions and texts. YouTube, YouTube is an online community that lets users worldwide uploads, share, watch, rate, and comment on videos, from user generated, niche professional, to premium videos. YouTube is also a video platform providing general purpose video resources to the web community. YouTube videos are embedded in blogs, social networks and web applications, and YouTube programming interfaces are utilized by many registered developers to create third-party products and services. In addition, YouTube offers a range of video and interactive formats for advertisers to reach their intended audience. 1.2.3 Client Google Toolbar, Google Toolbar is a free application that adds a Google search box to web browsers (Internet Explorer and Firefox) and improves user web experience through features such as a pop-up blocker that blocks pop-up advertising, an autofill feature that completes web forms with information saved on a users computer, and customizable buttons that let users search their favorite web sites and stay updated on their favorite feeds. Google Chrome, Google Chrome is an open-source browser that combines a minimal design with technologies to make the web faster, safer, and easier to navigate. Google Desktop, Google Desktop lets people perform a full-text search on the contents of their own computer, including email, files, instant messenger chats and web browser history. Users can view web pages they have visited even when they are not online. Google Desktop also includes a customizable Sidebar that includes modules for weather, stock tickers and news. 1.2.4 Google GEO-Maps, Earth and Local Google Earth, Google Earth lets users see and explore the world and beyond from their desktop. Users can fly virtually to a specific location and learn about that area through detailed satellite and aerial images, 3D topography, street maps and millions of data points describing the location of businesses, schools, parks and other points of interest around the globe. Google Earth includes Sky, an astronomical imagery library with images of over 100 million stars and 200 million galaxies, and Ocean, with a detailed bathymetric map of the earths ocean floors. Google Maps, Google Maps helps people navigate map information. Users can look up addresses, search for businesses, and get point-to-point driving directions-all plotted on an interactive street map or on satellite imagery. Google Maps includes Street View, 360-degree street-level imagery available in several regions around the world, and Google Transit, which provides up-to-date information on local transit options in many cities. 1.3.0 GOOGLE FINANCIAL STATUS TO DATE The first funding for Google as a company was secured in August 1998 in the form of a $100,000 USD contribution from Andy Bechtolsheim, co-founder of Sun Microsystems, given to a corporation which did not yet exist. On June 7, 1999, a round of equity funding totaling $25 million was announced; the major investors being rival venture capital firms Kleiner Perkins Caufield Byers and Sequoia Capital. In October 2003, while discussing a possible initial public offering of shares (IPO), Microsoft approached the company about a possible partnership or merger. However, no such deal ever materialized. In January 2004, Google announced the hiring of Morgan Stanley and Goldman Sachs Group to arrange an IPO. The IPO was projected to raise as much as $4 billion. On April 29, 2004, Google made an S-1 form SEC filing for an IPO to raise as much as $2,718,281,828. In May 2004, Google officially cut Goldman Sachs from the IPO, leaving Morgan Stanley and Credit Suisse First Boston as the joint underwriters. They chose the unconventional way of allocating the initial offering through an auction (specifically, a Dutch auction), so that anyone would be able to participate in the offering. The smallest required account balances at most authorized online brokers that are allowed to participate in an IPO, however, are around $100,000. In the run-up to the IPO the company was forced to slash the price and size of the offering, but the process did not run into any technical difficulties or result in any significant legal challenges. The initial offering of shares was sold for $85 per share. The public valued it at $100.34 at the close of the first day of trading, which saw 22,351,900 shares change hands. Googles initial public offering took place on August 19, 2004. A total of 19,605,052 shares were offered at a price of $85 per share. The sale raised US$1.67 billion, and gave Google a market capitalization of more than $23 billion. The vast majority of Googles 271 million shares remained under Googles control. Many of Googles employees became instant paper millionaires. Yahoo!, a competitor of Google, also benefited from the IPO because it owns 2.7 million shares of Google. Googles revenue growth rate has been slowing, but for the first time since it went public, the companys quarter-to-quarter revenue declined. The company, as is customary, reported results that most business only dreams of, recession or not. Its net income grew 8 percent to $1.42 billion and its revenue, excluding commissions paid to advertising partners, grew 10 percent to $4.07 billion. It generated free cash flow of $2 billion for the quarter, the vast majority of it derived from money advertisers pay Google when people click on ads next to search results. But everything is most definitely not coming up roses. Googles revenue, after ascending steadily quarter after quarter, peaked in the fourth quarter and declined 3 percent in the first quarter. Googles business is still relatively strong, and its been hit by the recession less than many in the tech world, but its been hit nonetheless. 1.4.0 CULTURE AND EMPLOYEES Google take great pride in their company culture and embrace it as one of their fundamental strengths. Their culture encourages the iteration of ideas to address complex technical challenges. In addition, Google embrace individual thinking and creativity. As an example, Google encourage their engineers to devote as much as 20% of their time to work on independent projects. Many of their significant new products have come from these independent projects, including Google News, AdSense for content and Orkut. Google began as a technology company and have evolved into a software, technology, internet, advertising and media company all rolled into one. Google take technology innovation very seriously. Google compete aggressively for talent, and its people drive their innovation, technology development and operations. Google strive to hire the best computer scientists and engineers to help us solve very significant challenges across systems design, artificial intelligence, machine learning, data mining, networking, software engineering, testing, distributed systems, cluster design and other areas. Google work hard to provide an environment where these talented people can have fulfilling jobs and produce technological innovations that have a positive effect on the world through daily use by millions of people. Google have assembled what Google believe is a highly talented group of employees. Despite their rapid growth, Google constantly seek to maintain a small-company feel that promotes interaction and the exchange of ideas among employees. Google try to minimize corporate hierarchy to facilitate meaningful communication among employees at all levels and across departments. Google believe that considering multiple viewpoints is critical to developing effective solutions, and Google attempt to build consensus in making decisions. While teamwork is one of their core values, Google also significantly reward individual accomplishments that contribute to their overall success. As Google grow, Google expect to continue to provide compensation structures that are more similar to those offered by start-ups than established companies. Google focus on very significant rewards for individuals and teams that build amazing things that provide significant value to us, their advertisers and their users. At December 31, 2008, Google had 20,222 employees, consisting of 7,254 in research and development, 8,002 in sales and marketing, 3,109 in general and administrative and 1,857 in operations. All of Googles employees are also equity holders, with significant collective employee ownership. As a result, many employees are highly motivated to make the company more successful. 1.5.0 GOOGLE BUSINESS MODEL As with its technology, Google has chosen to ignore conventional wisdom in designing its business. The company started with seed money from angel investors and brought together two competing venture capital firms to fund its first equity round. While the dotcom boom exploded around it and competitors spent millions on marketing campaigns to build brand, Google focused instead on quietly building a better search engine. The word quickly spread from one satisfied user to another. With superior search technology and a high volume of traffic at its Google.com site, Googles managers identified two initial opportunities for generating revenue: Advertising Search services 1.5.1 Google grows and business blooms Over time, these two business lines evolved into complementary networks. Google AdWords advertisers create ads to drive qualified traffic to their sites and generate leads. Google publishing partners deliver those ads targeted to relevant search results powered by Google AdSense. With AdSense, the publisher shares in the revenue generated when readers click on the ads. For sites wishing to have more control over their intranet or site searches, Google developed the Google Search Appliance, a scalable and secure appliance that delivers accurate search results across any number of documents. Google continues to think about ways in which technology can improve upon existing ways of doing business. New areas are explored, ideas prototyped and budding services nurtured to make them more useful to advertisers and publishers. However, no matter how distant Googles business model grows from its origins, the root remains providing useful and relevant information to those who are the most important part of the ecosystem the millions of individuals around the world who rely on Google search to provide the answers they are seeking. 1.5.2 Google AdWords for Advertisers Google designed AdWords for advertisers who want to reach a qualified audience as efficiently as possible. Advertisers select their own target keywords and only pay when customers click on their ads. Its easy to create ad text and manage online advertising accounts with no large upfront payment required. All thats needed is five minutes and a credit card. The ads appear across Googles growing roster of partners, including thousands of sites from America Online to the Washington Post, and are targeted to relevant search and content pages. Googles experienced sales and service team optimize campaigns for our larger advertisers. Our staff of AdWords experts work with advertisers to select the appropriate keywords and generate the matching creative, then carefully monitor the campaign to improve its performance over time by winnowing keywords and rewriting copy based on what is most effective. Theres no limit to the number of keywords that an advertiser can select and each keyword can be matched with a different creative execution. Recent advertisers include Amazon, Cisco Systems and Staples. Google provides all of its advertisers with a full complement of reporting services to enable fine tuning of campaigns and real-time intelligence about which components are performing best. Advertisers can further increase efficiencies by targeting their campaigns to specific geographies or languages. 1.5.3 Google AdSense and advertisers Google believes relevant advertising can be as useful as search results or other forms of content. And that advertising can enhance the experience for visitors to a publishers website, while helping publishers recover some of their investment in creating content of value. Google AdSenseâ„ ¢ combines Google Search technology with our base of keyword advertisers to deliver ads that precisely target search results or the content on a sites pages, no matter how specialized the subject matter. Advertisers, publishers, and information seekers all profit as a result. Signing up for AdSense is easy it only takes a few minutes to apply. And our sales team helps customize the program for sites receiving more than 20 million page views a month. AdSense serves relevant ads on content pages search result and content pages as well as dormant domain pages. Google Search Services enable publishers to provide Google web search on their own pages results that can be used to generate revenue with the AdSense for Search program The Google Search Appliance, a scalable and secure device that provides Google quality search across an individual website or intranet. Google Wireless Services deliver Google search results via PDAs, wireless phones and other mobile devices powered by many of the worlds leading wireless service providers. .1.0 GOOGLE GLOBAL MARKET SHARE Not only does Google continue to dominate the global search market, its also growing faster than any of its competitors, according to data from comScore. The audience measurement firm estimates that Google sites notched up a total of 76.7 billion searches during the month of July 2009, an increase of 58 percent over July 2008. Googles search product therefore continues to govern the global search landscape, accounting for over 67 percent of all queries worldwide, comScore suggests. In comparison, Yahoo and Microsoft which agreed to a ten-year search partnership in July attracted a joint total of 12.2 billion queries through their search services, which represents just 10.7 percent of queries globally. Microsofts product did, however, experience substantial year-on-year growth of 41 percent. 2.2.0 GOOGLE KEY TECHNOLOGIES Google web search technology uses a combination of techniques to determine the importance of a web page independent of a particular search query and to determine the relevance of that page to a particular search query. 2.2.1 PageRank Technology PageRank reflects our view of the importance of web pages by considering more than 500 million variables and 2 billion terms. Pages that we believe are important pages receive a higher PageRank and are more likely to appear at the top of the search results. PageRank also considers the importance of each page that casts a vote, as votes from some pages are considered to have greater value, thus giving the linked page greater value. We have always taken a pragmatic approach to help improve search quality and create useful products, and our technology uses the collective intelligence of the web to determine a pages importance. 2.2.2 Hypertext-Matching Analysis Our search engine also analyzes page content. However, instead of simply scanning for page-based text (which can be manipulated by site publishers through meta-tags), our technology analyzes the full content of a page and factors in fonts, subdivisions and the precise location of each word. We also analyze the content of neighboring web pages to ensure the results returned are the most relevant to a users query. Our innovations dont stop at the desktop. To give people access to the information they need, whenever and wherever they need it, we continue to develop new mobile applications and services that are more accessible and customizable. And were partnering with industry-leading carriers and device manufacturers to deliver these innovative services globally. Were working with many of these industry leaders through the Open Handset Alliance to develop Android, the first complete, open, and free mobile platform, which will offer people a less expensive and better mobile experience. 2.2.3 Life of a Google Query The life span of a Google query normally lasts less than half a second, yet involves a number of different steps that must be completed before results can be delivered to a person seeking information. 2.2.4 Infrastructure Google provides their products and services using their homegrown software and hardware infrastructure, which provides substantial computing resources at low cost. Google currently use a combination of off-the-shelf and custom software running on clusters of commodity computers. Their considerable investment in developing this infrastructure has produced several benefits. This infrastructure simplifies the storage and processing of large amounts of data, eases the deployment and operation of large-scale global products and services, and automates much of the administration of large-scale clusters of computers. Although most of this infrastructure is not directly visible to their users, Google believe it is important for providing a high-quality user experience. It enables significant improvements in the relevance of their search and advertising results by allowing us to apply superior search and retrieval algorithms that are computationally intensive. Google believe the infrastructur e also shortens their product development cycle and lets us pursue innovation more cost effectively. 2.3.0 QUALITY OF PERSONNEL Google is among the most successful Internet-based businesses and companies since the booming dotcoms years in late 1990s and remains to be a leader to date. The success of the Google is rooted on its outstanding organisational practices and core competencies. Googles formula of success is not only its competent technology but also its aggressive ability to come-up with both innovative and profit-oriented projects. Innovation is very critical among the members of its workforce since it operates in global environment.Managing global environment requires managers the ability to manage change through innovation and creativity. The innovative capability of Google combined with integrated process and a supportive culture creates sustainable competitive advantage. Among the considered high-leverage innovators, Google excels in ideation with overall adeptness and competence across all four stages of the innovation value chain. For example, (2007) describes Google as search engine leader tha t creates new-fangled ideas with intense speed or what they call the 70-20-10 Rule where the staff particularly engineers are encouraged to use 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. Larger organisations like Google, in contrast to small ones are faster in adoption of innovations because of greater access to resources and need for strategic planning. Due to the stiff competition among Internet companies, the encouragement of innovation and creativity is inherent to Google. Innovation as a ground for doing business in the 21st century will be the consistent tugging force that the organisation must either strive to adopt or suffer the consequences of being left behind by competitors. The Googlers (employees) are motivated to contribute their suggestions, ideas, or anything that pertains to potential profit-gaining activities through various means like meetings, intr anet, and other forms of communication. In product development, they emphasise on the feasibility and user-friendliness of relevant ideas. The feasibility is supported by Googles aim of coming-up with something original and financially viable whereas the idea of user-friendliness works toward potential users. Through innovations, Google has expanded its services and features. Google today is no longer a search engine company but a web computing applications company. The upscale ability of Google is among its critical success factors that make it a sustainable competitive company in its specified industry. On the aspect of HRM, Google has a distinct recruitment procedure that is bounded on the increased importance on valued intelligence and brainpower more than experience. (2003) identified recruiting as part of the overall management function of staffing. Conversely, (2004) emphasised that staffing requires both the process of attracting and selecting potential personnel with exceptional capabilities and competencies to fill-in the company position available at hand. Recruiting potential Googlers are based on academic proficiency and human intelligence. The diversity of skills and qualities of applicants is recognised because Google management believes that it can contribute on its progression. There are also unique advertising techniques in job postings, effective referral system, and campus recruitment. Generally, Google upholds the key HRM functions namely; attracting a quality workforce, developing a quality workforce, and maintaining a quality workforce. 2.4.0 GOOGLE CAPITAL BASE REVENUE STREAM Googles stock fell decidedly below the psychologically significant mark of $300 per share at one point. The stock has fallen 60% overall from its high near $720 and sits near its 2004-2005 prices. Despite this, Google remains a global leader in search, internet advertising, and has its finger on the pulse of innovative web services. Googles earnings powerand Googles search share remain intact in the long. Does that mean the shares necessarily imply a great risk-reward tradeoff now? For perspective, lets take a look at Googles performance and its stock performance over a similar period. Overall, Googles stock grew at a 93% CAGR from its IPO in 2004 until 2007. Even including the precipitous drop in 2008, the stock has grown at a 30% CAGR. Since 2003, Google has grown its revenue at a 72.6% CAGR and its net income at a 109.1% CAGR. Roughly normalizing to the 2004-2008 time period, Googles revenue and net income have grown at 62% and 80% CAGR, respectively. Its clear that Googles stock grew relatively in line with its net income, in fact, even at its peak Googles stock growth never outpaced its net income growth rate thus implying that wild multiple expansion was not responsible for investor returns over the last five years. Unfortunately, with the changing economic outlook, the market seems to be pre-emptively punishing Google for slowing growth. If the current share price holds, the implication is that the Company will not grow net income from 2008 levels for another three years assuming that a stocks return (30% CAGR) trends towards the long term growth rate of a company. This return scenario seems compelling for a long term investor, but given that we remain dependent on growth for our returns as opposed to any fundamental valuation. Its hard to ascertain whether or not the stock current price represents a reasonable entry point. Now, let us try to look at the overall strengths and weaknesses of Googles market, technology, personnel and capital base and revenue stream. 2.5.0 Googles Strengths Google Already number one search engine has established a brand name, in which its users trust. Its dependable, reliable and fast. Google needs very little end user marketing as the name itself is getting word by mouth publicity. Google has a simple interface and it gives comprehensive results without confusing its users. Google has low operation cost as it uses low cost UNIX web servers for indexing millions of web pages across internet. Google has hired PhDs who are continuously working hard in order to enhance search algorithms and make searching faster, efficient and relevant. Google provides an interface to 177 languages to make it comfortable to search for its users in different countries. Google uses state of the art search technology to index pages regularly in order to give most updated results to its users. Google also weights the votes and ranks web pages with its PageRank technology to give its user access to most important pages first. Google is not biased towards advertisers. It clearly separates relevant advertisements and actual results by giving Sponsored Links tag to sponsored results when user searches to get information with some keyword. Moreover, it also ranks sponsored links to keep most relevant sponsored links on the top. Google offers localized search called search by location where users can get results showing vendors, products and services nearby their areas. Google also has a range of innovative additional services like Images, Groups, Directory, and News

Honest Iago Essay

Iago is the most unique villain of Shakespeare There has been a lot of controversy about his motives and he has been considered as an incarnation of the devil. At the same time, Iago is one of the most brilliant Shakespearean characters although Shakespeare uses his cunningness only for diabolical purposes. He has can rightly be called an atheist of human nature and a stealthy corrupter of human piety, a fearless disturber of domestic peace and an unbeliever in and denier of anything spiritual. This is interesting to note that all characters in the play, except for Roderigo (to whom he sometimes shows his real face) have a high opinion of Iago and refer to him as â€Å"honest Iago†. He uses this high oestimation of him by these major characters to befool them. The Mutual relationship between Iago and Othello is of trust and reliance on the part of Othello but it is conniving and devious on the part of Iago. Iago has same relationship with Cassio. Cassio is also deceived by the seeming virtue of Iago and actually believes that ensign is a kind-hearted man. But at the same time is a rival to Iago in the royal court. Another facets of his relationship with Othello and Cassio is that he (Iago) lives the part of a blurt outspoken plain fellow who is always prepared to say what he really thinks without caring for the effect it may have on others. Othello is shown as a trustful and thorough in his trust for Iago. Although when Iago starts working on him, he suspects him and asks for evidence, yet from the beginning of the play, he seems to have put entire confidence in the honesty of Iago, who had not been his companions in arms. This confidence is misplaced but it is no sign of stupidity in Othello. He does not have a distinctive fear of him. We find this even before Iago has set a trap for him. Othello fears the monster â€Å"too hideous to be shown† that he discerns about Iago’s thoughts. This manifests a strange relationship based on paradoxical feelings. It is of confidence, trust and fear. But latter events show that Othello’s trust in Iago overpowers the instinctive fear. This happens due to Othello’s non-meditative nature. He does not contemplate over issues and does not weigh their motive and consequences. And this is the thing that helps Iago to get control over Othello. A. C. Bradley rightly says in this regard; The sources of danger in this character are revealed but too clearly by the story. In the first place, Othello’s mind, for all its poetry, is very simple. He is not observant. His nature tends outward. He is quite free from introspection, and is not given to reflection. Emotion excites his imagination, but it confuses and dulls his intellect. On this side he is the very opposite of Hamlet, with whom, however, he shares a great openness and trustfulness of nature. In addition, he has little experience of the corrupt products of civilised life, and is ignorant of European women. (p. 217) Relationship between Iago and Cassio exists and develops on the same lines as that of Othello’s. Cassio has a high opinion of Iago and considers him an unmatched person in Florence but Iago’s opinion of him is prejudiced and biased. Iago dismisses Cassio as a mere theorist and not a practical warrior. In their mutual relationship Cassio’s genuine honesty is contrasted with Iago’s seeming honesty. We are never certain that we understand why Iago commits his evil deeds. Coleridge calls his evilness as â€Å"motiveless malignity† (315) there is no doubt that he is throughout an artist in villainy. There is no mystery in the psychology of Iago and the key to Iago’s motives may lie in the composition of his character. One of the noticeable traits in his character is keen sense of superiority and contempt for others. There also the annoyance of having always to play a part, the enjoyment of the action and the absence of fear. Iago’s sense of superiority has been thwarted and it needs satisfaction. The fullest satisfaction, it could find would, no doubt, be in the consciousness to take revenge from those who are so successful and popular. In addition to his strong desire to satisfy his sense of power, there are also certain other forces which drive him on. One of these is a pleasure in action very difficult and perilous. This action and pleasure lends him artistry in the art of being spiteful against other. All these characteristics if nature and his disposition play a part in making him a great villain of Shakespeare. These motives appear and disappear in the most extraordinary manner. Resentment as Cassio’s appointment is expressed in the first conversation with Roderigo, and from that moment is never once mentioned again in the whole play. Hatred of Othello is expressed in the first act only. Desire to get Cassio’s place scarcely appears after the first soliloquy, and when it is gratified Iago does not refer to it by a single word. The suspicion’s of Cassio’s intrigues with Emilia emerges suddenly as an afterthought. Iago’s love of Desdemona is alluded to in the second soliloquy; there is not the faintest trace of it in word or deed either before or after. The mention of jealousy of Othello is followed by declarations that Othello is infatuated about Desdemona and is of a constant nature, and during Othello’s suffering Iago never shows a sign of the idea that he is now paying his rival in his own coin. In the second soliloquy he declares that he quite believes Cassio t0o be in love with Desdemona; it is obvious that he believes no such thing, for he never alludes to the idea again, and within a few hours, he describes Cassio as an honest fool. All these motives have strange paradoxical characteristics in them but it could not have been coincidence that Shakespeare has attributed so many motives to Iago. All these motives manifest the intricate nature of Iago’s characters and disposition. In addition to a man of action, Iago also seems to be something of an artist who takes delight in undertaking a complicated task in a meticulous manner. The action he starts and works out is intricate. We get an impression that at some stage, the action Iago initiates remain no longer within his control and power but rather becomes his master. It is as he was fated to do what he does. Works Cited Bradley, A. C. Shakespearean Tragedy: Lectures on Hamlet, Othello, King Lear, Macbeth. 2nd ed. London: Macmillan, 1905. Colderidge, Samuel Taylor. Lectures 1808-1819 On Literature. Ed. R. A. Foakes. Volume 2. Princeton, New Jersey: Princeton University Press, 1987. Shakespeare, William. Othello. New York: Penguin Books. 1993.

Supply Chain of Amul

ARAVALI INSTITUE OF MANAGEMENT (An institution of Marwar Education Foundation) Term Paper on Supply Chain of AMUL Submitted to:Submitted by: Dr. Parikshit CharanSunil Kansara PGP II PGDM (S) Section A Roll No. 30 HISTORY Amul was formally registered on December 14, 1946. The brand name Amul, sourced from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand and it was chosen because it was a perfect acronym for Anand Milk Union Limited. The Amul revolution was started as awareness among the farmers. It grew and matured into a protest movement that was channeled towards economic prosperity Over five decades ago, the life of an average farmer in Kheda District was very much like that of his/her counterpart anywhere else in India. His/her income was derived almost entirely from seasonal crops. The income from milk buffaloes was undependable. Milk producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand – often milk went sour, especially in the summer season, as producers had to physically carry milk in individual containers. Private traders and middlemen controlled the marketing and distribution system for the milk. These middlemen decided the prices and the off-take from the farmers by the season. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throw-away prices. In this situation, the private trader made a killing. Moreover, the government at that time had given monopoly rights to Polson Dairy, which was run by a person of Parsi descent, (around that time Polson was the most well known butter brand in the country) to collect milk from Anand and supply to Mumbai city in turn (about 400 kilometers away). Another problem farmers faced was that in winter the milk output of buffaloes doubled which caused prices to fall down even further. India ranked nowhere amongst milk producing countries in the world in 1946. Gradually, the realization dawned on the farmers with inspiration from then nationalist leaders Sardar Vallabhbhai Patel (who later became the first Home Minister of free India) and Morarji Desai (who later become the Prime Minister of India) and local farmer, freedom fighter and social worker Tribhovandas Patel, that the exploitation by the trader could be checked only if they marketed their milk themselves. Amul was the result of the realization that they could pool up their milk and work as a cooperative Setting up of Kaira District Co-operative Milk Producers' Union In the early 40’s, the main sources of earning for the farmers of Kaira district were farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor and illiterates’ farmers by the private traders. The traders used to beside the prices of milk and the farmers were forced to accept it without uttering a single word. However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk. These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also form to collect the milk from such village co-operative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union. However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of govt. , the farmers of Kaira district went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme was severely affected. The milk commissioner of Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the farmers demand. Thus their cooperative unions were forced at the village and district level to collect and sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien showed main interest in establishing union who was supported by Shri Tribhuvandas Patel who lead the farmers in forming the Co-operative unions at the village level. The Kaira district milk producers union was thus established in ANAND and was registered formally on 14th December 1946. Since farmers sold all the milk in Anand through a co-operative union, it was commonly resolved to sell the milk under the brand name AMUL. At the initial stage only 250 liters of milk was collected everyday. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakhs liters of milk everyday. Since milk was a perishable commodity it becomes difficult to preserve milk flora longer period. Besides when the milk was to be collected from the far places, there was a fear of spoiling of milk. To overcome this problem the union thought out to develop the chilling unit at various junctions, which would collect the milk and could chill it, so as to preserve it for a longer period. Thus, today Amul has more than 150 chilling centers in various villages. Milk is collected from almost 1073 societies. With the financial help from UNICEF, assistance from the govt. of New Zealand under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was planned. Setting Up of Gujarat Cooperative Milk Marketing Federation In 1954, Kaira District Co-operative Milk Producers’ Union built a plant to convert surplus milk produced in the cold seasons into milk powder and butter. In 1958, a plant to manufacture cheese and one to produce baby food were added. Subsequent years saw the addition of more plants to produce different products. In 1973, the milk societies/district level unions decided to set up a marketing agency to market their products. This agency was the Gujarat Cooperative Milk Marketing Federation (GCMMF). It was registered as a co-operative society on 9 July 1973 COMPANY PROFILE THE TASTE OF INDIA, AMUL comes from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand and it was chosen because it was a perfect acronym for Anand Milk Union Limited. AMUL was formed under the dairy cooperative movement in India in 1946 The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand . The system succeeded mainly because it provides an assured market at remunerative prices for producers' milk besides acting as a channel to market the production enhancement package. What's more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socio-economic upliftment and common good. Looking back on the path traversed by Amul, the following features make it a pattern and model for emulation elsewhere. Amul has been able to: ? Produce an appropriate blend of the policy makers farmers board of management and the professionals: each group appreciating its rotes and limitations, ? Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment. ? Provide a support system to the milk producers without disturbing their agro-economic systems, ? Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers and ? Even though, growing with time and on scale, it has remained with the smallest producer members. In that sense. Amul is an example par excellence, of an intervention for rural change. Organization structure It all started in December 1946 with a group of farmers keen to free themselves from intermediaries, gain access to markets and thereby ensure maximum returns for their efforts. Based in the village of Anand, the Kaira District Milk Cooperative Union (better known as Amul) expanded exponentially. It joined hands with other milk cooperatives, and the Gujarat network now covers 2. 12 million farmers, 10,411 village level milk collection centers and fourteen district level plants (unions) under the overall supervision of GCMMF. There are similar federations in other states. Right from the beginning, there was recognition that this initiative would directly benefit and transform small farmers and contribute to the development of society. Markets, then and even today, are primitive and poor in infrastructure. Amul and GCMMF acknowledged that development and growth could not be left to market forces and that proactive intervention was required. Two key requirements were identified. The first, that sustained growth for the long term would depend on matching supply and demand. It would need heavy investment in the simultaneous development of suppliers and consumers. Second, that effective management of the network and commercial viability would require professional managers and technocrats. To implement their vision while retaining their focus on farmers, a hierarchical network of cooperatives was developed, which today forms the robust supply chain behind GCMMF's endeavors. The vast and complex supply chain stretches from small suppliers to large fragmented markets. Management of this network is made more complex by the fact that GCMMF is directly responsible only for a small part of the chain, with a number of third party players (distributors, retailers and logistics support providers) playing large roles. Managing this supply chain efficiently is critical as GCMMF's competitive position is driven by low consumer prices supported by a low cost system. The Union looks after policy formulation, processing and marketing of milk, provision of technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, better feeds and the like – all through the village societies. DISTRIBUTION CHANNEL Amul products are available in over 500,000 PLUS retail outlets across India through its network of over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory of the entire range of products. GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the cheque system adopted by other major FMCG companies. This practice is consistent with GCMMF's philosophy of maintaining cash transactions throughout the supply chain and it also minimizes dumping. Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises. This just-in-time inventory strategy improves dealers' return on investment (ROI). All GCMMF branches engage in route scheduling and have dedicated vehicle operations Establishing best practices: A key source of competitive advantage has been the enterprise's ability to continuously implement best practices across all elements of the network: the federation, the unions, the village societies and the distribution channel. In developing these practices, the federation and the unions have adapted successful models from around the world. It could be the implementation of small group activities or quality circles at the federation. Or a TQM program at the unions. Or housekeeping and good accounting practices at the village society level. More important, the network has been able to regularly roll out improvement programs across to a large number of members and the implementation rate is consistently high. For example, every Friday, without fail, between 10. 00 a. m. and 11. 00 a. m. , all employees of GCMMF meet at the closest office, be it a department or a branch or a depot to discuss their various quality concerns. Each meeting has its pre-set format in terms of Purpose, Agenda and Limit (PAL) with a process check at the end to record how the meeting was conducted. Similar processes are in place at the village societies, the unions and even at the wholesaler and C agent levels as well. Examples of benefits from recent initiatives include reduction in transportation time from the depots to the wholesale dealers, improvement in ROI of wholesale dealers, implementation of Zero Stock Out through improved availability of products at depots and also the implementation of Just-in-Time in finance to reduce the float. Kaizens at the unions have helped improve the quality of milk in terms of acidity and sour milk. (Undertaken by multi-disciplined teams, Kaizens are highly focussed projects, reliant on a structured approach based on data gathering and analysis. ) For example, Sabar Union's records show a reduction from 2. 0% to 0. 5% in the amount of sour milk/curd received at the union. The most impressive aspect of this large-scale roll out is that improvement processes are turning the village societies into individual improvement centers. Supply Chain of Amul Consumers expect marketers to deliver products in the locations and forms they require. To meet expectations of such demanding consumers, alignments of our four Distribution Highways of Fresh, Chilled, Frozen and Ambient products were already made by introducing Project DIL. Subsequently, a major initiative was taken to enhance distribution network to smaller towns. About 1200 distributors in small towns across India were added during this initiative. Today about 3000 Distributors ensure availability of our products across India, whether it is in Leh or Lakshadweep, in Kutch or Arunachal. Simultaneously, to augment fresh milk distribution in various markets of India, approximately 1400 exclusive Milk Distributors have been inducted. ? AMUL has the largest cold chain network in India (i. e. 18000 refrigerators) as compared to any other company. The chemical components of milk are water, SNF and solids. Milk is very perishable product so it has to be consumed within 24 hours. In order to avoid wastage AMUL converts the milk in to SNF and milk solids by evaporating the water, which comprises up to 60-70% of milk contents. This is possible only if the distribution channel right from the producer to the consumer is well organized. It will be surprising to know that AMUL makes even the ‘Sarpanch’ to eat pizza i. e. it supplies pizzas even to rural market. ? Last year, theye divided the retail market into 14 specific segments to achieve further distribution efficiency. This year our focus was on inducting distributors having expertise in servicing such specific market segments. This initiative is yielding results by way of ensuring wider availability of our product range. ? The role of distributors in our business process has never been more diverse or more important, as it is today. As a matter of fact, we consider our Distributor to be the real â€Å"Marketing Manager† of our organization. To enhance business performance of our Distributors, a workshop on Marketing and Sales Management was designed in collaboration with a premier business school. The objective of the entire initiative was to upgrade the knowledge of our Distributors in terms of contemporary Business Management Practices, so that they can perform well not only as our business partner but also as Marketing Managers. During the year, 659 Distributors have undergone this programme in 39 locations. Cold Storage is an extremely essential component n the Federation’s distribution process. Unfortunately, availability of efficient cold storage facilities is grossly inadequate in our country. To cope up with the increasing need of suitable cold stores closer to our markets, we have continued our endeavour of creating the Federation’s own cold stores this year in various locations acr oss the country. We now own 24 state-of- the art cold rooms of different sizes. ? To get an exposure to our cooperative structure, our culture as well as operational systems and processes, every year we invite our distributors, major retailers and other business partners to Anand, for Amul Yatra. So far, about 7000 Distributors and other business partners have participated in this Amul Yatra. ? Over recent years, the Federation has successfully introduced new product lines. This year, in order to leverage their distribution network strengths, to optimize market supervision expenditures, to achieve increasing efficiency while keeping the distribution infrastructure lean, focused and productive, the Federation amalgamated its different distribution networks. Today, they operate an efficient distribution infrastructure consisting of 46 sales offices, catering to 3,000 distributors and five lac retailers. Almost every Federation stockist has visited Anand to participate in a unique programme called ‘Amul Yatra'. During this programme, stockists are exposed to the Federation Philosophy, the culture of Cooperation, as well as operational Systems and Processes. The Federation has also invited distributor's salesmen from all over the country to Anand for a training program focused on the Federation's philosophy and developing their selling skills. AMUL is a dairy cooperative in the western India that has been primarily responsible, through its innovative practices, for India to become the world’s largest milk producer. The distinctive features of this paradigm involves managing a large decentralized network of suppliers and producers, simultaneous development of markets and suppliers, lean and efficient supply chain, and breakthrough leadership. Every day Amul collects 447,000 litres of milk from 2. 12 million farmers , converts the milk into branded, packaged products, and delivers goods worth Rs 6 crore (Rs 60 million) to over 500,000 retail outlets across the country. To implement their vision while retaining their focus on farmers, a hierarchical network of cooperatives was developed, this today forms the robust supply chain behind GCMMF’s endeavors. The vast and complex supply chain stretches from small suppliers to large fragmented markets. Management of this network is made more complex by the fact that GCMMF is directly responsible only for a small part of the chain, with a number of third party players (distributors, retailers and logistics support providers) playing large roles. Managing this supply chain efficiently is critical as GCMMF's competitive position is driven by low consumer prices supported by a low cost system of providing milk at a basic, affordable price. THE BUSINESS MODEL From the very beginnFng, in the early 1950s, AMUL adopted the network as the basic model for long-term growth. †¢ The network explicitly includes secondary services to the farmer-suppliers. †¢ Several of the entities in the network are organized as cooperatives linked in a hierarchical fashion. Customers: In comparison with developed economies, the market for dairy products in India is still in an evolutionary stage with tremendous potential for high value products such as ice cream, cheese etc. The distribution network, on the other hand, is quite reasonable with access to rural areas of the country. Traditional methods practiced in western economies are not adequate to realize the market potential and alternative approaches are necessary to tap this market. Suppliers: A majority of the suppliers are small or marginal farmers who are often illiterate, poor, and with liquidity problems as they lack direct access to financial institutions. Again, traditional market mechanisms are not adequate to assure sustenance and growth of these suppliers. Third Party Logistics Services: In addition to the weaknesses in the basic infrastructure, logistics and transportation services are typically not professionally managed, with little regard for quality and service. In addition to outbound logistics, GCMMF takes responsibility for coordinating with the distributors to assure adequate and timely supply of products. It also works with the Unions in determining product mix, product allocations and in developing production plans. The Unions, on the other hand, coordinate collection logistics and support services to the member-farmers. In what follows we elaborate on these aspects in more detail and provide a rationale for the model and strategies adopted by GCMMF. Simultaneous Development of Suppliers and Customers: From the very early stages of the formation of AMUL, the cooperative realized that sustained growth for the long-term was contingent on matching supply and demand. The member-suppliers were typically small and marginal farmers with severe liquidity problems, illiterate and untrained. AMUL and other cooperative Unions adopted a number of strategies to develop the supply of milk and assure steady growth. First, for the short term, the procurement prices were set so as to provide fair and reasonable return. Second, aware of the liquidity problems, cash payments for the milk supply was made with minimum of delay. This practice continues today with many village societies making payments upon the receipt of milk. For the long-term, the Unions followed a multi-pronged strategy of education and support. For example, only part of the surplus generated by the Unions is paid to the members in the form of dividends Managing Third Party Service Providers: Unions focused efforts on these activities and related technology development . The marketing efforts were assumed by GCMMF. All other activities were entrusted to third parties. These include logistics of milk collection, distribution of dairy products, sale of products through dealers and retail stores, some veterinary services etc. It is worth noting that a number of these third parties are not in the organized sector, and many are not professionally managed. Hence, while third parties perform the activities, the Unions and GCMMF have developed a number of mechanisms to retain control and assure quality and timely deliveries. This is particularly critical for a perishable product such as liquid milk. Coordination for Competitiveness Coordination is one of the key reasons for the success of operations involving such an extensive network of producers and distributors at GCMMF. Some interesting mechanisms exist for coordinating the supply chain at GCMMF. These mechanisms are: Inter-locking Control The objective for developing such an inter-locking control mechanism is to ensure that the interest of the farmer is always kept at the top of the agenda through its representatives who constitute the Boards of different entities that comprise the supply chain. This form of direct representation also ensures that professional managers and farmers work together as a team to strengthen the cooperative. This helps in coordinating decisions across different entities as well as speeding both the flow of information to the respective constituents and decisions. Coordination Agency: Unique Role of Federation Its objective is to ensure that all milk that the farmers produce gets sold in the market either as milk or as value added products and to ensure that milk is made available to an increasingly large sections of the society at affordable prices Supplier Enhancement and Network servicing Their objective is to ensure that producers get maximum benefit and to resolve all their problems. They manage the procurement of milk that comes via trucks & tankers from the VSs. They negotiate annual contracts with truckers, ensure availability of trucks for procurement, establish truck routes, monitor truck movement and prevent stealing of milk while it is being transported. GCMMF’S SUPPLY CHAIN DISTRIBUTION CHANNEL Amul products are available in over 500,000 PLUS retail outlets across India through its network of over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory of the entire range of products. GCMMF transacts on an advance demand draft basis from its wholesale dealers instead of the cheque system adopted by other major FMCG companies. This practice is consistent with GCMMF's philosophy of maintaining cash transactions throughout the supply chain and it also minimizes dumping. Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises. This just-in-time inventory strategy improves dealers' return on investment (ROI). All GCMMF branches engage in route scheduling and have dedicated vehicle operations Establishing best practices A key source of competitive advantage has been the enterprise's ability to continuously implement best practices across all elements of the network: the federation, the unions, the village societies and the distribution channel. In developing these practices, the federation and the unions have adapted successful models from around the world. It could be the implementation of small group activities or quality circles at the federation. Or a TQM program at the unions. Or housekeeping and good accounting practices at the village society level. More important, the network has been able to regularly roll out improvement programs across to a large number of members and the implementation rate is consistently high. For example, every Friday, without fail, between 10. 00 a. m. and 11. 00 a. m. , all employees of GCMMF meet at the closest office, be it a department or a branch or a depot to discuss their various quality concerns. Each meeting has its pre-set format in terms of Purpose, Agenda and Limit (PAL) with a process check at the end to record how the meeting was conducted. Similar processes are in place at the village societies, the unions and even at the wholesaler and C&F agent levels as well. Examples of benefits from recent initiatives include reduction in transportation time from the depots to the wholesale dealers, improvement in ROI of wholesale dealers, implementation of Zero Stock Out through improved availability of products at depots and also the implementation of Just-in-Time in finance to reduce the float. Kaizens at the unions have helped improve the quality of milk in terms of acidity and sour milk. (Undertaken by multi-disciplined teams, Kaizens are highly focussed projects, reliant on a structured approach based on data gathering and analysis. ) For example, Sabar Union's records show a reduction from 2. 0% to 0. 5% in the amount of sour milk/curd received at the union. SELECTION, MOTIVATION & EVALUATION OF CHANNEL MEMBERS Selection: The company takes into consideration a host of factors while selecting the channel members. This is because GCMMF believes that selection of channel members is a long run decision & the rest of the decision regarding the supply chain depends upon the efficiency & coverage by the channel members. The following are the host of factors considered by the company in selecting the channel members: ? Authentication is required by the regarding the identity of the channel members, which includes the name & address, photograph of the location. ? Proof of solvency which requires name & address of the channel member’s bankers ? Safety of the inventory, which means that the distributor/ dealer should et the stock of the company insured. ? Inventory or the perishable goods kept by the distributor/ dealer should be in good condition which means a detail of storage space & Refrigeration facility is to be provided. Refrigeration system should have deep freezers, cold room & walk in coolers. ? Details of the delivery vehicle, which includes Light Commercial Vehicles, Matador, 3 Wheel er Van, Tricycle Van & Hand/Push cart. The number & model of each of the vehicle needs to be furnished to the company. ? GCMMF acknowledges the fact that it needs to be sensitive to the market demands. For this it requires that a number of salesmen needs to be present on the field. The salesmen too are divided into various categories like the Field salesmen & Counter salesmen. Also the details of Clerical Staff & Mazdoors are to be provided. The technical competence of the salesmen needs to be mentioned ? Details of the product kept of other companies have to be provided. The annual sales of these products too have to be mentioned. Also details of complementary products & product lines need to be mentioned. ? Dealers of the company must carry a good reputation. This is due to the fact that the company believes reputation of the dealer affects the clientele. ? Market coverage by the distributors needs to be defined which includes details of Geographic coverage & Outlets per market area. ? The company also requires the dealers to furnish any Advertising & Sales initiative undertaken by them on behalf of the company. Observation ? The company’s strength is in its procurement and not the distribution even they know this, as this is the industry’s main problem. Other companies fail to replenish demand due to lack in procurement of raw milk. Amul has loyal cooperatives that provide milk only to them, over time the relationship of trust has built up with these people that amul leverages now. ? Transport channel is another strength as the transporters have grown with the company overtime the bonding with them enables the company to give least margins when it comes to the distributors in the industry, lowering the costs. ? The company believes that there is an ongoing demand in the market and therefore no promotions are needed to increase the sales, also the fact this would affect the cost of the product the company doesn’t undertake many promotion schemes. The not being a profit driven organization, is able to provide products at the least price in the industry, and is able to give least channel margins as the channel members earn through volumes and not through high margins. ? The company is enabled to push its new products into the market by hooking them onto the fast moving products like Amul butter; they force the channel members to carry the new products as well. Comments and Suggestion: ? Amul should go in for exclusive outlets in at least all the shopping malls coming up these days and any location where footfalls are large in number. The advantages of this channel will be: Full range display Easier to promote new products Easy to push impulse purchase products Brand building will be facilitated ? Pushcarts should be increased in number in order to increase the market reach this can provide with e very effective channel for ice creams and flavored milks. ? Trade promotion should be formulated for newly launched products instead of just tagging them onto best sellers. ? The company should start a home delivery where a particular household will order full range of products required by it over a period of time. For this the company could provide a deliveryman with cycle to reach the different houses. ? In order to motivate the channel members it is also very essential for the company to increase the margins for the hard selling items e. g. Amul dahi where it faces competition from Nestle & Mother dairy. ? In order to remain sensitive to market demand, it is essential for the company to place additional salesmen on the field since the brand as such commands a high demand in the market but fails to match it with the supply. [pic][pic][pic]

Environmental Scanning of Nintendo - 662 Words

1. Environnemental scanning Macro Environment Macro environment is said to be the most general layer of the environment. This consists of broad environmental factors that have an impact on the organization. The PESTEL framework helps us to identify the future trends which might impinge on Nintendo and therefore identify the key drivers of change. On the other hand the five forces framework helps to understand how the competitive dynamics within and around the video game industry are changing. PESTEL Framework: This categorizes environmental influences into six main types: political, economic, social, technological, environmental and legal. Political: Factors such as taxation policies, foreign trade regulations and social welfare†¦show more content†¦Also, games have an influence to the culture of people; bring aggression in children, etc all which have an impact on the industry. Technological: The role of technology is vital in this industry as it focuses on technological efforts for competitive advantage. Every new development uses new technology. Though there are restricted innovations in the gaming industry, the speed of technological transfer is very high. Nintendo’s role from playing cards to toys to video games and then with each console introduced, included many technological changes. Technological up gradation increased hardware costs and discouraged innovation. The online capability of Nintendo Wii was a major change in the technology of the video game industry though they were not able to do as well as their competitors (Sony, Microsoft). Environmental: The video game industry uses a lot of plastic resources. Playing games on television or computers does consume a lot of power. Nintendo therefore see to it that their games utilize low power. On the other hand protecting the environment and practicing a â€Å"green† lifestyle is a value many of today’s parents are trying to teach their children. Nintendo facilitates in that effort through the creation of â€Å"Super Mario Sunshine†Ã¢â‚¬ , which challenge players to improve the environment around them. Legal: The legal issues faced by the video game industry include trademarks, copyrights, licensing, online ownership, revenue recognition and demands ofShow MoreRelatedMarketing Plan3452 Words   |  14 Pages– Sony PlayStation 4 Table of Contents Page 1. About the company 2. Internal analysis 2.1. General analysis 2.2. SWOT analysis 2.3. Predecessor analysis 3. External analysis 3.1. PEST analysis 3.2. Porter s 5 forces 3.3. Competitors 3.3.1. Nintendo 3.3.2. Microsoft 3.3.3. PC 3.4. Customer analysis 4. Marketing Mix 4.1. Product details 4.2. Price 4.3. Distribution 4.4. Promotion 4.4.1 Marketing slogans and logo 4.5. Marketing Objectives 5. Evaluation and Control Toni Hoang, Tim von OldenburgRead MoreComment on How Changes in Macro and Market Environment Forces Impact on the Level of Competition in an Industry.18606 Words   |  75 Pagesmarketing environment explain the distinction between the microenvironment and the macroenvironment discuss the impact of political and legal, economic, ecological/physical environmental, social/cultural and technological forces on marketing decisions explain how to conduct environmental scanning discuss how companies respond to environmental change Political and Legal Forces The marketing environment FIGURE CHAPTER 3 73 marketing-orientated ï ¬ rm looks outwards to the environment in which it operatesRead MoreSony Play Station Competition Analysis10386 Words   |  42 Pages      SONY  Ã‚   PLAYSTATION   TABLE  OF  CONTENT   SECTION I – INDUSTRY SUMMARY: AN ANALYSIS OF THE INDUSTRY MARKET SITUATION ENVIRONMENTAL SCANNING: PESTEL MICRO-ENVIRONMENT FIVE FORCE MODEL ANALYSIS EFE MATRIX SECTION II – COMPANY PERSPECTIVE: AN ANALYSIS OF COMPANY/BRAND COMPANY BACKGROUND PRODUCT BACKGROUND STRENGTHS AND WEAKNESSES SPACE ANALYSIS 6 FUNCTIONAL ANALYSIS IFE MATRIX SECTION III – COMPETITIVE ANALYSIS 20 21 23 24 25 26 10 11 12 13 15 18 1 3 5 6 8 COMPETITORS IN THE MARKET STRATEGICRead MoreStrategic Analysis of Lego Essay4136 Words   |  17 Pagesand they had the required resources to reach their strategic goals. Explanation the environmental factors impacting on LEGO during 1995-2009 Kotler (1998) argues that a PEST analysis is a useful tool in many ways including working out a business’s position, its market growth rate and what direction its operations should be heading in. This report will use a PEST analysis to identify what environmental factors affected LEGO from 1995-2009. Political/Legal factors Compliance with differentRead MoreCango3111 Words   |  13 PagesEconomic analysis can help them define production, distribution and consumers goods and services. CanGo must also analyze the governmental environment within the demographics. This will allow CanGo to look into unfair competition, restraint of trade, environmental, discrimination, online registration, privacy, product safety, labeling, intellectual property, warranties, deceptive and misleading claims, advertising to children, telemarketing, email spam, tying contracts, exclusive dealerships, transportationRead MoreMkc1 Study Guid3211 Words   |  13 Pagesavailability of credit. 9. What are some examples of social-culture influences on marketing decisions? A few examples of social-culture influence on marketing decisions are family, social roles/status, and geographies. 10. What is environmental scanning? Environmental scanning is careful monitoring of organizations internal and external environments for detecting early signs of opportunities and threats that may influence its current and future plans. 11. What is the difference between direct and indirectRead MoreThe Sony Corporation a Case Study in Transnationa Media Management9950 Words   |  40 Pagesat Sony was enamored with the idea of videogame technology. ‘The management at Sony did not view themselves in the business of videogame technology which was seen as a toy’ (Fujishima, S. 2000, pers. comm., 23 March). Worse still, companies like Nintendo and Sega were the established leaders in videogame technology and software. Nevertheless, Sony’s Executive planning committee approved $50 million in start-up costs in order to allow Kutaragi and his design team to develop the basic computer chipRead MoreMkc1 Study Guide Essay8083 Words   |  33 Pagesis right and what is wrong in marketing B. By requiring tailored marketing strategies C. By creating a need for a new marketing technologies D. By studying different cultural practices 2. What element should marketing managers consider when scanning the competitive environment? A. The human mind B. Transfer price C. Substitute products D. The distribution channel 3. When a group of retailers and wholesalers of a particular product decided to all raise prices together and they are accusedRead MoreValve Corporation Final Project Essay4190 Words   |  17 PagesPolitical Factors †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 4 Economic Factors †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 4 Socio-Cultural Factors †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 5 Technological Factors †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 6 Environmental Factors †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦... 7 Legal Factors †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 Five – Forces Model †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 8 Supplier Power †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦....†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 8 Buyer PowerRead MoreMarketing Environment5847 Words   |  24 Pagesconsumers live within a cultural and social environment which to a greater or lesser degree determines the way in which we behave as individuals.† said Elaine O’Brien, University of Strathclyde. Unlike the controllable marketing mix variables, the environmental forces are not controllable by marketers. However, marketers can control how they deal with those uncontrollable forces by identifying and monitoring those forces that are relevant to their firms. They also must forecast changes in these forces