Literacy Is The Foundation Of Every Student s Learning Essay

Importance of Literacy Literacy is the foundation of every student’s learning, and learning to read English is a particularly challenging task. The OECD Programme for International Assessment of Adult Competencies defines literacy as: the ability to identify, understand, interpret, create, communicate and compute, using printed and written materials associated with varying contexts. Literacy involves a continuum of learning in enabling individuals to achieve their goals to develop their knowledge and potential and to participate fully in their community and wider society (as cited in Kennedy, Dunphy, Dwyer, Hayes, Mc Phillips, Marsh, O’Connor, Shiel, 2012, p. 40). Additionally, The OECD report (1996) highlighted the role of literacy in promoting competitiveness and employment, democracy and social cohesion, and addressing poverty (as cited in The National Literacy Strategy for all in Malta and Gozo, 2014). However, many research conducted in countries have shown that literacy levels are below the normal rate. Research conducted by the National Institute of Child Health and Human Development has found that more than 74% of children who enter first grade at risk for reading failure will continue to struggle to read into adulthood. Progress in International Reading Literacy Study shows that children from a low socioeconomic status and migration backgrounds are the biggest group among poor readers (as cited in TheShow MoreRelatedFinal Literacy Statement . I Have Learned A Vast Amount1057 Words   |  5 PagesFinal literacy statement I have learned a vast amount of knowledge after taking this literacy course. My perspective on literacy now, have developed into a notion that literacy is needed for a student’s success. My outlook on adolescent literacy is still that it has wide range of different perspectives. Literacy is the basic method of understanding the material. 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(2014) Common Core Literacy for Math, Math, and Technical Subjects: Strategies to Deepen Content Knowledge (grades 6-12) Ed.: 1. San Francisco: Jossey-Bass. 2014 The schools improvement effort was changed in its instructional practices that aligned with literacy outlook, that would be effective in advancing student grades. This study present findings from an analysis of classroom instruction data collected in 200 classrooms in seven high poverty high school classroomsRead MoreDesign of an Ideal Early Literacy Program1610 Words   |  7 PagesDesign of an Ideal Early Literacy Program Goals I have such an overwhelming feeling come over me when I think about the fact that in a few short months I will be responsible for helping nearly thirty students either learn to read or improve in their reading abilities. It is such an exciting yet daunting task! 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The Battle Of Antietam Was The Turning Point Of American...

The battle of Antietam was the turning point in American history pertaining to the possible division of the nation, the abolishment of slavery, and the success of a democratic government. The battle analysis examines the strengths and weaknesses of the Confederate and Union army leading up to the battle on September 17, 1862. Union and Confederate forces suffered severe losses totaling 22,719 casualties, ending with Confederate forces withdrawing to the south. Broken and unmotivated, Union and Confederate soldiers lost morale and drive to finish the battle. The fact that Lee withdrew from the battle of Antietam was enough of a victory for President Lincoln to justify the issuance of the Emancipation Proclamation, and prevented the Confederate army from gaining foreign support. The battle analysis of Antietam assesses the invasion of Maryland, human intelligence assets utilized, and failures on both sides of the battlefield. This battle analysis will depict an alternate outcome of the Confederate army winning at the battle of Antietam (Cannon, 1994). President Abraham Lincoln took office on November 6, 1860, three months later eleven states seceded from the Union to form the Confederate States of America. Lincoln wanted to eradicate slavery and issue the Emancipation Proclamation. He knew it would be hard to unite the north and south, due to southern reliance on slavery in the cotton fields. Confederates were fully aware of President Lincoln’s plan to abolish slaveryShow MoreRelatedThe Battle Of Antietam By Robert E. Lee1046 Words   |  5 Pagesthe American Civil War. The Civil War was fought between the North (Union) and the south. The Battle of Antietam took place on September 17, 1862 near Sharpsburg, Maryland, and it was the bloodiest day in American history. Before the battle, the confederacy had a better chance of winning the war. Conflict arose between McClellan and Robert E. Lee which sparked the invasion of the north and the beginning of a long war. McPherson argued in his novel that the battle of Antietam w as the turning pointRead MoreThe Civil War : The Battle Of Antietam969 Words   |  4 PagesIn 1800s, there was a war that happened that caused many people to die in the war, which was Civil War. The Civil War was a war that was fought between the Union and Confederate parts of United States. The Union was in the North, and the Confederates were in the South. There were many reasons why the battles were fought. During the Civil War, the president was Abraham Lincoln. There were many reasons why the war was fought, but the main reason was to keep the country together. Before the war, theRead MoreThe Battle Of Antietam And The Civil War876 Words   |  4 Pages Ryan Prendergast Morrow A/B American Studies First Draft Neil Armstrong, the first man on the moon, uttered the words,That’s one small step for man, one giant leap for mankind. 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According to McPherson the Civil War was constantly changing hands, at some points the Confederates wereRead MoreEssay on Battle of Antietam1561 Words   |  7 PagesThe following case study will be about the Battle of Antietam that took place on September 17, 1862 in Sharpsburg, Maryland along the Antietam Creek. Known as â€Å"†¦the bloodiest single day in American History,† by the end of the day there would be approximately twenty-three thousand casualties of which forty-five hundred to six thousand were dead. The first topic of discussion will be on the history leading up to the morning of the seventeenth in order to establish the mindset of the commanders onRead MoreThe Battle Of The Civil War960 Words   |  4 PagesHave you ever wondered why the Civil War happened or why it was so substantial to American History? What was the battle that changed it all; that made it the history it is today? Many people have made speculations on the causes of the war and what the major turning point was, but cannot really narrow it down. In James McPherson’s Crossroads of Freedom: Antietam he points out the pivotal moments in American history that led up to and changed the Civil War, so that the reader can get a better insightRead MoreThe Battle Of The American Civil War1018 Words   |  5 Pages On September 17, 1862, the Union and Confederate armies met near the Maryland village of Sharpsburg in a battle that still remains the single bloodiest day in American history. The battle consisted of many attacks and counterattacks between Union General George B. McClellan and The Army of the Potomac against Confederate Robert E. Lee and his Army of Northern Virginia. Despite being heavily outnumbered, the Confederates managed to fight relentlessly over the course of the struggle. However, afterRead MoreThe Battle Of Allan Pinkerton s Human Intelligence On The Enemy s Position And Troop Strength Essay700 Words   |  3 PagesMcClellan’s apprehension robbed him of victory and allowed Lee’s forces to consolidate prior to the Battle of Antietam (Davis, 1999). If McClellan had defied Allan Pinkerton’s human intelligence information claiming the Confederacy consisted of 120,000 soldiers, he could have defeated Lee prior to the battle of Antietam (Cannon, 1994). L ee relied heavily on J.E.B. Stuart’s scout unit for reconnaissance missions to gather intelligence on the enemy’s position and troop strength (Cannon, 1994). OnRead MoreTen Days that Unexpectedly Changed America Summary Essay1406 Words   |  6 PagesChapter 1: â€Å"Massacre at Mystic† May 26, 1637 was a fateful day in the history of America. The actions of Major John Mason and his Puritan men set a precedent for the next two hundred years of European and Indian relations. On that clear May night near the Mystic River of New England, hundreds of Pequot Indians were killed by the Europeans and their allies, most of the victims being the elderly, women, and children. This massacre was a massive turning point in the Pequot War, effectively ruining theRead MoreAnalysis Of The Book Crossroads Of Freedom By James M. Mcpherson1167 Words   |  5 PagesBook Essay Two The book Crossroads of Freedom: Antietam, was written by James M. McPherson to argue why the Battle of Antietam was the battle that changed the cause of the Civil War. While McPherson argued this he also argues that the Civil War had many other turning points and was not settled by just one battle. McPherson’s targeted audience would have to be those interested in the Civil War and the events that led to it. McPherson wrote this great book which came to be an important contribution

Phillip morris Essay Example For Students

Phillip morris Essay Definition of Industry Market Concept The tobacco industry consists of many competitors trying to satisfy a specific customer need. Companies such as Philip Morris, RJ Reynolds, Brown and Williamson, and Lorillard hold almost the entire market share in the tobacco industry. While each company has different advertising and marketing techniques, they all target the same customer group. Tobacco companies try their best to generate interest in their particular brand or brands. Companies market a number of attributes that usually include, but are not limited to: taste, flavor, strength, size and image in order to distinguish themselves from competitors (Business Week 179, November 29, 1999). However, all tobacco companies are satisfying the same needs. Many long-time smokers are addicted to the nicotine in cigarettes. They smoke because the nicotine is needed to help them feel normal (Focus group). Many addicts go through withdraw without nicotine. All tobacco companies have nicotine in their cigarettes, which fulfills the need of long-time smokers. Other smokers depend on cigarettes in social settings. Many smoke to look sophisticated and mature. Tobacco companies make many kinds of cigarettes that target different groups. Social smokers may perceive certain brands as more sophisticated, and therefore they shy away from other lesser-known brands. For example, a person who smoked generic cigarettes at the bar may be perceived as uncultured. On the other hand, the smoker with the Marlboro Lights may be more socially accepted because they have a brand name product (Focus group). Many types of cigarettes cater to the many markets of smokers who want to portray a certain image in social settings. Tobacco companies do not create the need to smoke, but try to generate interest in their particular brand (Hays, New York Times, November 24, 1999). Overall, the tobacco companies satisfy consumer demand for the millions of adult Americans who choose to use tobacco by providing differentiated products to different target markets of smokers.Industry Concept The tobacco industry has developed a rather large array of products. Companies such as Philip Morris, Lorillard, RJ Reynolds, and Brown and Williamson, as well as the other smaller competitors, all provide the same product- cigarettes. The tobacco industry is filled with fierce competitors. But underneath the brand names and images, the product is relatively the same. All tobacco companies produce an inhalant that is made with tobacco, tar, and nicotine. These materials are rolled in a special kind of slow-burning paper for longer smoking time. The cigarettes are approximately three to four inches long and come in packs of twenty to twenty-five. With so many similarities, one would think that the market would resemble that of a commodity. However, through brand marketing and promotions, each cigarette is uniquely different in the mind of the customer. Boundaries The tobacco industry can be broadly or narrowly defined. Many products use tobacco as the main material. We chose to define the market by focusing on the tobacco and the way it is smoked. Companies such as Philip Morris, Lorillard, RJ Reynolds, and Brown and Williamson are the main competitors in the tobacco industry (Pollack, Advertising Age, August 30, 1999). They produce cigarettes, which are lit and the smoke is inhaled to the lungs. Tobacco products such as cigars, snuff, and chew are considered close substitutes to cigarettes. Cigar smoke is just taken into the mouth, but not inhaled like cigarettes. Snuff and chew do not even contain smoke, but are put on the skin for nicotine absorption. Companies such as Imperial Tobacco, which produce a wide array of chew and snuff products, would be considered a company that provides substitutes to cigarettes. They would not fall in the cigarette industry itself. 2 .Situation Analysis 2.1 Industry Structural Analysis 2. 1.1 Threat of Entry The tobacco industry has a very low threat of entry. A few powerful firms, such as Philip Morris, RJ Reynolds, Lorillard, and Brown and Williamson, control most of the industry (Pollack, Advertising Age, August 30, 1999). Any new entrants would be sure to receive heavy retaliation from the other companies fighting to keep their share of the lucrative industry. For example, Philip Morris is by far the industry leader with estimated tobacco sales of $46.7 billion is 1999 (Business Week 179, November 29, 1999). They have a huge base of resources with which to attack other competitor entrants. They could easily start promotions such as buy one, get one free or offer coupons at certain times during the year to discourage entrants to the industry. Many small companies will not be able to compete with the capital requirements in the tobacco industry. The barriers to entering the tobacco industry are numerous. First, the high volume of cigarette sales gives existing firms economies of scale, which would be a disadvantage for newcomers to the market. The products currently on the market are differentiated somewhat in their design, but mostly through the large advertising budgets that are used to promote them. Tobacco companies now pour $4 billion a year into promotions and advertising- nine times what they spent in 1971 (Elliot, New York Times, September 22, 1999). These firms have finely tuned distribution channels, which include legions of sales representatives that vie for shelf space. One of the biggest obstacles to a new entrant would be finding a decent place of the shelf with such heavy-handed competition already occupying that space. Store managers may be reticent to give away prime slots for fear of losing discounts or other offers from major players. Government policy is another possible deterrent to enter the market. Large settlements against the tobacco companies have been the norm in the past several years. Although gigantic companies like Philip Morris are able to handle the charges because of their extensive monetary resources, it is difficult to imagine how a small startup company would be able to burden the expense. Switching costs are very high in the tobacco industry. Many smokers are still smoking the same brand they first started smoking (Focus group). Even if the price of their brand is raised, they would not consider switching to another brand (Focus group). Many companies who would want to come into the industry would not easily take away market share, due to high brand loyalty. 2. 1.2 Competitive Rivalry The tobacco industry is a very competitive market. As mentioned above, about four very large corporations control the entire market. Philip Morris is the biggest company in the industry, but others such as Lorillard and growing in brand name (Pollack, Advertising Age, August 30, 1999). All companies battle for market share through heavy advertising budgets and slotting deals. The cigarette market is well into the maturity stage of the PLC, and some might even argue that given the recent anti-smoking campaigns and lawsuits the industry is nearing the decline phase. However, sales show that decline has not yet been reached. As mentioned before, Philip Morris has estimated tobacco sales of $46. 7 billion (Business Week 179, November 29, 1999). Apparently, brand loyalty still exists. Buyers Retailers. The stores that sell tobacco products have a moderate influence on the market. Retailers have some power over manufacturers who need prime slotting to ensure strong sales. However, manufacturers have leveraged quite a bit of power by offering retailers special incentives for giving their products good placement or for installing certain numbers of brand advertisements around the store. To some stores, such as gas stations, losing a major cigarette brand would mean large loss of revenues from customers who would rather go to another gas station to locate their favorite brand. Also, companies are trying to develop closer relationships with bars and coffeehouses. Tobacco companies offer ashtrays, napkins, and matches, saving each buyer thousands of dollars in supply costs (Heuslein, Forbes, January 11, 1999). Retailers now are marketing the brand on coasters and napkins for the company. Consumers. The end-users in the industry also have moderate power. Brand loyalty is very high, and it has been shown that smokers generally chose a brand in their teen year and continue to smoke that brand the rest of their lives (Focus group). However, in the face of a dramatic price hike, consumers have been quick to notice that brands are interchangeable and then go for the lowest price. But the dearth of substitutes for tobacco products makes it difficult for the industry to lose customers all together. Suppliers The suppliers in the tobacco industry have a low level of influence, even though there is no close substitutes that the industry can use in place of tobacco. Tobacco is purchased from farmers, who essentially have to take the market-determined price for their crops. Tobacco is a commodity, so it makes no difference from which supplier a firm buys its materials. The large number of individual farms that supply the industry makes it almost impossible for anyone to raise the price. There is not a threat of forward integration from suppliers because they have none of the tools necessary to manufacture or market tobacco products. The farmers have only the land and equipment necessary to grow the leaf. If they were to try to produce cigarettes, they would probably not be able to compete with the many large companies that have economies of scale (from Threat of Entry section). 2.1. 3 Substitutes The affect of substitutes on profits is also low. Nicotine can be found in cigarettes, as well as cigars, chew, and snuff. But most people will not switch over to chew and snuff if the price of cigarettes rises. Chew and snuff do not substitute for the needs of a cigarette. Cigarettes are smoked for the nicotine and for social acceptance. Chew and snuff are not acceptable substitutes for most smokers; the nicotine is not inhaled but put on the skin for absorption. 3 . Profit Analysis Why are tobacco executives still smiling? Simple: They continue to rake in the huge profits from the category despite a decade-long stagnation in dollar and unit sales growth. (Arrizza, Discount Merchandiser, p 97) Indeed, the tobacco industry has faced much opposition during recent years but still remains profitable. To be specific, there are two main reasons that the industry has continued to be prosperous: addiction and management practices. Government influence and lobbying have also played a smaller role. First, the strong addiction of tobacco has allowed for a very loyal following in the tobacco industry. In fact, most tobacco users are very brand-loyal and therefore less price sensitive than most would think. Not only does this bring in revenue for the companies themselves but for the wholesalers and retailers as well. The average smoker still smokes 1.2 packs per day, which means strong profits for the industry as a whole (Heuslin, Forbes, p 160). Buyer power is lower because the smokers depend on the cigarettes to fulfill their addictions. On average, the industrys profit on cigarette sales is about 23 cents a pack. When the average store sells around 25 packs per day, the industry is bound to make substantial profits (Sullum, Reason, p 18). The loyalty of customers in tobacco has allowed for a successful forecast of future profits in the industry. The management practices of the tobacco industry have also contributed to the industrys success. For example, The Retail Masters program has allowed for strong profits. Retail Masters is a multi-level program of promoting brands in the retail environment. This program has the potential to increase a stores cigarette sales by 11 percent (Arrizza, Discount Merchandiser, p 99). Simply by getting better displays and shelf space, for instance, the tobacco industry could become more profitable. Buyer influence increases because they have the power to delegate displays and shelf space. Overall, if the industry were to constantly maintain better displays and shelf space, tobacco companies as a whole would have a better chance of achieving greater profits. Also, most tobacco companies are introducing new products in order to keep high profit margins. RJ Reynolds, for example, is in the final phase of conducting market studies on its latest product, Eclipse. The company claims the new product reduces second-hand smoke by nearly 90 percent, ridding itself of ash and odors ( Arrizza, Discount Merchandiser, p 98). Tobacco companies are also trying to get a better public image by producing public service announcements such as the Be Smart, Dont Start campaign. And although the industry has been under close scrutiny as of late, their customers are impressed with the message. Again, the marketing management practices behind the tobacco industry bring a promise of strong future profits. As already stated, the profits of the industry look to be good, but there are a lot of changing conditions that might affect the future of the industry. For example, the new product inventions mentioned above could either help or harm the industry depending on how well they do. For example, the new Eclipse cigarette will more than likely be imitated by other competitors, who will also have to invest a great deal of capital to get the product on the market. And finally, tobacco companies are having to pay more and more money for court settlements. Profits can be decreased greatly if money the money is spent defending the company. The government is also a very limiting factor to tobacco. Just over the past decade, the government has passed so many laws that it has forced the tobacco companies to double their prices on cigarette packs. Although the customers still seem to be buying as they have in the past, there is certainly a price ceiling that a customer will not be willing to pay above. It is highly unlikely that the same customers who are currently paying less than three dollars a pack, will pay ten dollars for a single pack of cigarettes. However, if the government keeps increasing excise tax and still allots money to the prosecution during tobacco lawsuits, the industry will be severely handicapped. Overall, as the restrictions of the government increase and lawsuits are lost, the profits of the industry are bound to decrease. Industry Environment The tobacco industry is an environment with many strong competitors that have many opportunities in the market. There are also many threats, mostly imposed by the government. The tobacco companies play off each other for market share and innovate marketing strategies to fight back and keep the smoking demand. The tobacco industry has limited media coverage due to government restrictions placed over the past two decades. The tobacco companies have been prohibited from advertising on television and radio, and even more recently from billboards and outdoor posters because of the harmful side effects their products may cause. Since so many channels of marketing are closed for the tobacco industry, magazines are the most common method of advertising (Elliot, New York Times, September 22, 1999). Even with magazines and other legal forms of advertising, tobacco makers are still running into restrictions. In each magazine advertisement, a Surgeon Generals warning is required to appear with information about tobacco-related health risks that the product may lead toward. Companies have also been required to create advertisements solely about the harmful consequences of using tobacco products. These ads were a result of an advertising war between the tobacco industry and anti-tobacco campaigns. The tobacco companies were mocking the ads and celebrating those who continued to use tobacco. The government intervened and required the tobacco warning advertisements for all tobacco companies (Fairclough, Wall Street Journal, B12, 1999). The government has also intervened with tobacco marketing by altering the slogans and gimmicks the companies use. The government wants the companies to avoid targeting vulnerable markets, such as young children and teenagers under the legal smoking age of 18 years. Since government regulations have become such a threat to the tobacco industry, companies are coming up with creative ways to advertise and appeal to consumers. Some companies are developing smokers lifestyle magalogs, a combination of a magazine and catalog. The issues come out monthly and contain articles about travel, cooking, and shopping. The magalogs do not contain articles about smoking and do not have pictures of people smoking, but they do advertise tobacco products and accessories. The idea of the magalogs is to portray an image that a smokers lifestyle is fun and exciting (Wyatt, New York Times, C5, November, 24, 1999). Tobacco companies are hoping these magalogs will persuade the existing smokers to purchase more. In the past consumers have been proven to remain loyal to one company throughout their lives, but as tobacco prices have steadily increased several times, more brand switching from the premium brands to the lower priced one is occurring. The price increases are decreasing the demand for tobacco products as well. Figures show the number of smokers has decreased 10% in 1999 (Heuslein, Forbes, January 11, 1999). One of the main reasons for the price increases in the tobacco industry is that companies are trying to keep shareholders happy by paying them high dividends. Another reason is that companies need to cover the higher costs that they have incurred from legal settlements with state governments. The premium brand companies are also spending more money on advertising as the prices increase to keep their customers from switching to the lower-cost brands (Fairclough, Wall Street Journal, B12, 1999). The tobacco industry has many strong competitors with varied portions of market share. As of now, the price leader is Philip Morris. When they increase prices, other brands will follow the lead to avoid price wars. Any attempt to take away market share from the leader will result in more harm than good for the lower companies with less share. If a price war were to be started, Philip Morris, with its extensive capital, could easily outprice all other brands (Porter). The smaller tobacco companies could not compete and would soon go out of business. This type of competitive rivalry causes threats to all competitors. The companies with less market share want to follow the trends to avoid losing share no matter how high costs are, and they are trying to gain new consumers as well. The competitors have to watch the price leader carefully to make a competitive strategy. The price leader controls the industry and sets the rules of the game. But the opportunities of the leader and the other companies can be dampened by government regulations. As more restrictions are being placed in the tobacco industry, all companies will lose consumers if they do not find successful alternatives to marketing their products. Once the tobacco gain market share, it is somewhat easy to keep it. The addictive substances in tobacco products give the industry opportunities to keep consumers brand loyal and trying their new products. The environment of the tobacco industry is constantly changing with all of the threats and opportunities. Tobacco makers rely on the key success factor of image in all that they do. The new magalogs are another attempt to create a wanted tobacco users lifestyle, and they will continue to find alternatives around regulations to keep their image up as they fight hard in the competitive environment. Competitive Analysis We have chosen Philip Morris and their brand of Marlboro. Philip Morris is the industry leader and is able to heavily promote and advertise a new product. Marlboro is one of the most well-known brands in the world. We could easily create a line extension and rely on the brand name for customer loyalty. The tobacco industry consists of many competitors striving to provide tobacco products that satisfy the consumers need to smoke. Companies such as Philip Morris, RJ Reynolds, Brown and Williamson, and Lorillard are the top four competitors in the tobacco industry that together hold almost all of the market share. While each company targets the same customer group, they have different advertising and marketing techniques. Philip Morris is by far the industry leader with tobacco sales of $46.7 billion (Business Week, 179, November 29,1999). The industry giant is responsible for the development of Marlboro, Virginia Slims, and Basic, three of the best-known brands on the market. Other than producing tobacco products, the company has expanded and purchased Kraft Foods in 1988, the largest food company in the United States in (Business Week 186, November 29, 1999). Krafts affiliation with Philip Morris has led to much scrutiny from anti-tobacco users and a decrease in profits. Philip Morris has a strong advantage with the Marlboro brand. Marlboro is one of the most well-known brands in the world. The brand loyalty to Marlboro will help Philip Morris keep customers. Lorillard is responsible for cigarette brand Newport, which is currently second behind Marlboro (Pollack, Advertising Age, August 30, 1999). Lorillard is the fasted growing brand in the cigarette category, but is still quite far behind Philip Morris (Pollack, Advertisng Age, August 30, 1999). Currently, the company is trying to introduce a new kind of cigarette that would directly compete with Marlboro. The new product would be a non-menthol cigarette, which is a first in the industry because most companies usually introduce menthol cigarettes. Lorillards strength is shown with its creativity. As long as they try new products, they can gain some market share from Philip Morris. Juvenile Delinquency Essay Soft packs were not liked by any participants. More hard packs should be distributed. One point that surprised us was the excitement for prepacked cigarettes. Tobacco companies might have a marketing strategy with prepacked cigarettes. The high price of the cigarettes was noted within the group, but each was willing to pay for their particular brand. Tobacco companies do not need to lower price because the members of the group were still willing to pay. They all saw the brands of cigarettes as being very differentiated, and therefore the industry has very high switching costs. It was also noted that the participants still smoked the same brand of cigarettes that they started out with. Many have not even bothered to try different brands. This is a key point that the tobacco companies need to focus on. If they can get people to start smoking their brand first, then they have a good chance of having that person making a repeat purchase. The tobacco industry is seen by consumers to be very differentiated, allowing the companies to charge higher prices and creating high switching costs. Current Marketing Mix Philip Morris Marlboro is currently in the mature life cycle. The cigarette industry as a whole is in this life cycle. The objectives for the mature stage are to extend the life cycle for Marlboro by maintaining the brand leader position, advertising image, and cannibalizing the product. Marlboro needs to watch competition (RJ Reynolds and Brown and Williamson), maintain high brand loyalty to keep brand leadership, and continue with creating a socially conscious company. The creating of this image as a socially conscious company is a company wide customer orientation. What has helped them remain on top is their size advantage, experience, and well-defined target. Some specific areas that Philip Morris needs to focus on are sales growth, profits, customers, and competition. These will be discussed briefly. We will elaborate on the factors product, pricing, promotion, and distribution in greater detail. Marlboro is currently in a growth maturity stage for sales growth. Although the industry is in the mature life cycle, Marlboro still controls a majority of the share and sales are increasing (1999 Annual Report). With the 1998 Master Settlement Agreement, where Philip Morris had to pay a large settlement to past consumers for with holding information about the harmful effects of smoking, sales still increased from 1998 to 1999. This is mostly due to the high brand loyalty of consumers (focus group). As mentioned above, due to the high and unusually strong brand loyalty of the market, profits have increased even with stricter laws and regulations. Pending litigation, smoking could become even more expensive than it already is. Taxes could be imposed to increase price per pack, which would hurt profits if consumers start buying cheaper brands. If government raises the price per pack as a standard and consumers remain brand loyal, profits could increase for the company. Marlboro targets adults over twenty-one and will not use anybody in an advertisement who looks younger than twenty-five. They wish to retain current customers and try to discourage youth smoking. Many smokers start smoking in high school and remain loyal to the brand they start smoking (focus group). Though reality and their strategy are incongruent, they try to target current consumers. The three big competitors in the tobacco industry are Philip Morris (market leader), RJ Reynolds, and Brown and Williamson. Philip Morris (Marlboro) and RJ Reynolds (Camels) own the two main brands. Due to the price increases delegated by the government, cheaper non-premium brands are catching price sensitive customers. If such price increases persist, competition could increase as well. That is only if the prices increase so much that brand loyalty sways. We would like to discuss how these stated strategies of Marlboro effect Porters Five Forces. Buyers are an overall weak force in that they are so brand loyal, they will pay inflated prices for product. They do expect more from the parent company that helps explain the Philip Morris Foundation, a community service charity ran by the people of Philip Morris, and the new slogan for Philip Morris, Working to Make a Difference. The People of Philip Morris. The main reason buyers are a weak force is because of their strong, unwavering brand loyalty. Competitive rivalry is intense in the tobacco industry. With the changing view of smoking by society from one-time glamorous to now outcast and increasing government restrictions with price increases, the consumer pool is dwindling. Luckily, Philip Morris Marlboro has an advantage as brand leader. The three main competitors are struggling to maintain market share, and Philip Morris is succeeding in remaining the market leader. New entrants in the tobacco industry are rare. It is later in the life cycle, so many would-be new entrants are dissuaded by many factors. First is the sheer size of the established competition. They have the upper hand with economies of scale, experience curve, channels of distribution, and high brand loyalty. New entrants also are thwarted from entering the tobacco market by the uncertain future of the market. The pending legal dealings, increased restrictions, and mandated price increases makes the environment risky for new entrants. There are high barriers to entry. Being that the cigarette industry is in the mature life cycle, the number and availability of substitutes should be numerous. There are a few substitutes to cigarettes like chew, snuff, and cigars, but none truly substitute the cigarette. Unlike perfume were the smell is similar enough or clothes that fit well and look nice, the taste and experience of smoking your brand of cigarettes can not be duplicated. This inability to reproduce the experience and taste makes the substitution uncommonly weak for the mature life cycle. As mentioned in the new entrants, channels of distribution are established and the high demand from the brand loyal customers weakens the power of distributors. This is the environment for Marlboro in reference to Porters Five Forces. Although it does not follow the text book definition of the mature life cycle, it is due mainly to the unique industry of tobacco. The competitive strategy of Marlboro is differentiation. Marlboro has a perceived uniqueness industry wide by consumers. The uniqueness of the brand name Marlboro and its image, quality, and taste, is highly valued by customers. The customers value it enough to pay higher prices for the Marlboro brand. Marlboros strategy of differentiation has remained stable and consistent. There are three main strategies Philip Morris has chosen to help differentiate Marlboro. The company has increased the service quality of quick responsiveness to complaints and compliance to federal regulations, assurance of a quality product purchased, and empathy for consumers (smokers and non-) through the services of the Philip Morris Foundation. Philip Morris has differentiated by reputation and brand image as well. The company has remained consistent in their image as a high quality product and an American tradition. Their market expertise, as market leader, has also allowed them to differentiate their product. This strategy reinforces the image as a stable company and plays up the companys longevity and dominance in the market. The current position of Marlboro has been mentioned many times as the brand leader. As the brand/market leader, Marlboro has to defend their position and territory against competition (which as mentioned before is very intense). Luckily for Marlboro, the defensive position is the preferred position. It has becoming increasingly difficult to defend position pending legal results from numerous cases set against Philip Morris and other tobacco companies. If excise taxes ensue (which would increase price of cigarettes by federal government and state) they could lead to a decline in sales, a decline of volume for the entire industry, and a shift from the premium segment (Marlboro and Camels) to the discount segment (GPC) (1999 Annual Report). Given Philip Morris superior defensive position currently, it enables them to have defenses against environmental factors Porter identified as the Five Forces. Marlboro being a differentiated premium brand, this creates a buffer with high price and low cost. The consumers are brand loyal and less price sensitive. New entrants have barriers to entry due to Marlboros brand leader position. The barriers include the high emotional switching cost from Marlboro to a new brand due to high brand loyalty, the high product differentiation Marlboro has created and maintained, and the economies of scale and established distribution channels the com from Marlboros experience. The buffer previously mentioned for the defense against the threat of new entrants, also is a defense against competitive rivalry. It is with this buffer that Philip Morris has the excess resources to fight, identified as the Principles of Force by Ries and Trout. The expertise of the company in the mature industry also is a powerful defense against competitors. As the market leader and the high brand loyalty, Marlboro is less susceptible to price wars. For some of the same reasons mention above, Marlboro has similar defense against buyers. Being less susceptible to price wars because of the high brand loyalty helps the company have greater control over pricing. This could change, though, with price increases and pending excise taxes. For now it does not seem to be a problem, but the future of the industry is uncertain. But for now as market leader, Marlboro can create expectations of higher quality products and service. The buffer so prominent in many of the factors defends against suppliers. The defense against substitutes is Marlboros decreased susceptibility to a price ceiling and the brand name loyalty advantage. Due to the position of market leader, Philip Morris and Marlboro have strong defenses against factors in the industrial environment. Their defensive position allows them these perks and if the market is not too effected by litigations pending, it looks to be a very sustainable advantage. Growth strategies of Marlboro have been product development or line extensions. They have created new products like Marlboro Lights and Marlboro Menthol and introduced them in the same market. They have also employed a family of branding such as specific brands (Marlboro, Virginia Slims, and Newport) that target certain segments and offer different images. Marlboro is well positioned and successfully maintaining the leadership position in the mature life cycle stage. They have retained this position through differentiation and product development. These have helped and will continue to help, if the market stays stable, Marlboro extend the mature life cycle and remain market leader. Now we are going to focus and emphasis some major factors in the current marketing mix not yet discussed. These factors are the product, pricing, promotion, and distribution. The product strategy is differentiation and being widely available through distribution. As market leader, Marlboro has taken the Defensive Warfare. They have had the courage to attack themselves through line extensions, and have expanded the market with their family of brands. Strengths of their product position is that the company has a strong position. They are not over, under, confused, or doubtful in their positioning of Marlboro. It makes sense, is not too narrow, is stable and consistent, and consumers believe in the higher quality of the brand. The high brand loyalty and perceived higher quality help the positioning of the product to be strong. Some weaknesses of the product are mainly environmental. Societys view of smoking has changed. Smoking used to be considered glamorous and beautiful, now most buildings are smoke free. Smokers have to huddle outside in rain, sleet, and shine and enjoy their cigarettes. Restrictions on advertising for tobacco products have increased. Outdoor advertising has recently been taken away. The only traditional medium appropriate to find tobacco product advertisements is print. There have also been legal backlashes due to health risks of nicotine use. A negative view of tobacco companies that is prominent in society is one of shiftiness and shadiness. Plus in medium unavailable to the tobacco companies, there has been an influx of anti-smoking campaigns. But even with all of the weaknesses of the market, Marlboro has remained brand leader. The branding strategy of Philip Morris, as mentioned before, is family of branding. Marlboro follows a family branding strategy. Marlboro would be considered the megabrand and Marlboro Lights/ Ultra Lights/ Menthol would be considered the subbrands. This some what follows Ries and Ries 22 Laws of Immutable Branding. Ries and Ries say that family of branding is good, while family branding takes away from the product. Marlboro follows many of the suggestions made by Ries and Ries. Marlboro has a unique and one of a kind name that helps set it apart from other cigarettes. Marlboro also owns a word, that word is rugged. The cowboy, who embodies a sense of a great American tradition, represents this ruggedness. There are many characteristics highly valued in our society that are related directly to cowboy. Marlboro has also been continuously consistent in their brand imaging (with the cowboy) and packaging. Changes have been slight and industry wide, like the introduction to Lights, Ultra Lights, and hard packs. Some other ways in which Marlboro follows Ries and Ries suggestions are their law of color, law of quality, and law of extensions. As mentioned above, Marlboro has followed Ries and Ries law of consistency. They have done this not only in the handling of their brand image, but also in the look of their packaging. Marlboro does not follow all of the suggestions from Ries and Ries. One is their law of publicity. With all of the trials impending and the changed view of society on smoking and tobacco companies, publicity has not helped the product or the market. Though the Philip Morris Foundation would be an excellent vehicle for publicity, they have decided to advertise. If they would let the newspapers and reporters take the drivers seat, consumers might believe it more. Even with all of the problems the industry is seeing, Marlboro is still the brand leader. The high brand loyalty is the key factor to Marlboros dominance in the market. They achieved brand loyalty by being first movers, becoming established, quality of their product, and consistency. This has helped them endure through the turbulent times in the industry. Brand equity is also very important to the product. Marlboro has a lot of brand equity. It has high brand loyalty that increases trade leverage, attracts new customers, and gives consumers a reassurance in you product. The high brand awareness is due in part of it being brand leader. Marlboro sticks out in the mind of consumers, including non-smokers because of familiarity, and is seen as a brand to consider. The perceived quality is very high for Marlboro. It is positioned as a premium brand and the price leader. Marlboro is also closely associated with its parent company, Philip Morris. Philip Morris is currently creating an image as a socially conscious company. This indirectly creates a positive image for Marlboro. And as the market leader, Marlboro has a competitive advantage. All of these factors increase Marlboros brand equity. This brand equity helps the consumer by increasing satisfaction, confidence in purchase and helps them to process information by setting a reference point. Brand equity helps the firms by assisting in creating efficient and effective marketing programs, increasing brand loyalty, to independently set prices, aid in brand extensions, increase trade leverage, and competitive advantage. This is shown through the increase of shares from 1998 to 1999 (1999 Annual Report) even though there has been an increase in restrictions. The increases help demonstrate the power of brand equity. The nineties ushered in a time of relationship marketing. Customer Services programs were the most popular way many companies played the new game. Marlboro and Philip Morris are no different. Marlboro offers Marlboro Miles to their customers. Collect a certain amount of miles and order items out of a catalogue them have Marlboro written all over them. This gives current customers perk and draws in new customers. Philip Morris started the Philip Morris Foundation, a service charity and created a new slogan. Their community service relief is aiding in creating a new image for the Philip Morris company. Instead of a seedy, shady cigarette manufacture, Philip Morris is helping society and is socially conscious. Some recommendations for Philip Morris and Marlboro are to let the news organizations cover your good work. Perhaps send out press releases of activities the Philip Morris Foundation are involved in. Dont stop the advertisements, it creates awareness and since Marlboro and Philip Morris are so closely associated it helps separate them during the legal mess and hopefully will have a carry-over effect from Philip Morris to Marlboro. They need to continue the programs that are working for them. These things are the consistent image of the brand, being a first mover to comply with government regulations, and in creating the image of a socially conscious company. They also could introduce a new product, a line extension, of the brand leader Marlboro. They need to introduce a product that offers what no other cigarette offers, waterproof packaging. Pricing Strategy Marlboro is a very well known company with many subsidiaries. The pricing strategy followed by the tobacco portion of the company is one where the primary objective is to simply sell the most products possible through promotions and brand-loyalty. For the first part, demand has been proven to be inelastic. Even if the United States Government enacts bills where cigarette taxes grow even further, customer brand-loyalty will still exist strongly. In fact, history has shown that demand is very, very inelastic, meaning higher prices dont necessarily translate into equivalent reductions in consumption. (Kennedy, p30, June 1998) Indeed, the one out of six tobacco smokers that use Marlboro products have proven their preference not to change. Secondly, Marlboro uses a fair amount of discounting in order to retain its customer base. The company, two times a year, will run promotions where consumers can buy two packs and receive a third for free. This has been shown to not only keep customers who are loyal to Phillip Morris, but will also tend to take away from the competition. According to the article, Experts Pick: Marlboro, by Nathaniel Kennedy, every time the campaign is launched, Marlboro gains a substantial portion of market share. (Kennedy, p31, June 1998) However, competitors have follwed the lead of Marlboro. They too run the same promotions that, in turn, balance out the market share that Marlboro had just recently taken. Because competition is so fierce, the majority of Marlboro pricing strategy is to promote lower prices. In fact, Marlboroshows that you dont have to make cars and trucks to make money. It has the second-highest profit margins among the top-ten U. S. manufacturers.(Hedden, p26, October 1996) The reason being is simple. Marlboro does not sell low enough for it to be considered a generic, but it does keep its prices compatible with its closest competitors. For example, in Mexico, Marlboro and its Mexican producer Cigarrera La Tabacelera Mexicana are temporarily reducing the price of Marlboro cigarettes in Mexico by 20%. (p2, March 1997) The move is an attempt to beat the competition of cigarette smugglers, who are illegally importing the cheaper U.S.-manufactured cigarettes and selling them at steep discounts. Furthermore, the company must fight in the face of many legal competitors as well. With three main competitors, RJ Reynolds, Brown ; Williamson and Lorillard, Marlboro strives to keep its products at a quality level and it prices competitive with the other leaders in the industry. The aforementioned laws of the United States governments have also proved to be a stiff competitor to the companys overall successes. Through maintaining low prices, an inelastic demand and well-placed discounts, Marlboro share of the market is more than doubling its closest rival. However, that demand could easily switch hands at any time. Marlboro relies too heavily upon brand-loyalty to assume that it would always be the leader. Newcomers are plentiful, and it will take a lot of work for the company to maintain its current market share. Indeed, with cigarette prices on the rise as much as they are, consumers are more likely to become, in the future, more price-sensitive than they currently are. If Marlboro falls into the age-old trap of incumbent inertia, there is a good possibility that the corporation will lose their number one spot in the industry. To prevent market loss, Marlboro needs to pay close attention to consumers preferences and any new additions to the industry (such as a less harmful cigarette). Marlboro will be able to keep on top of the game. Technology is the key here, and the corporation must do everything possible to be ahead of it. Promotion Strategy The biggest problems that Marlboro faces today are health problems and advertising to children. To combat these issues, the company uses a substantial amount of promotion and goodwill to keep its high-quality name. For the first part, the company is constantly giving to charities and running television commWords/ Pages : 10,492 / 24

Test Bank Essay Example

Test Bank Paper Chapter 1—Strategic Management and Strategic Competitiveness TRUE/FALSE 1. The Chapter 1 Opening Case shows that Borders was unsuccessful in competing in Internet book sales, but not against brick-and-mortar stores. ANS:F 2. According to the Chapter 1 Opening Case, Barnes Noble and Amazon were more competitive than Borders and adjusted more effectively to changes in the retail book market. ANS:T 3. The Chapter 1 Opening Case illustrates that while Borders was able to achieve strategic competitiveness, it did not achieve above-average returns because of conditions beyond the control of of its top management. ANS:F 4. According to the Chapter 1 Opening Case, Barnes Noble and Amazon were more effective than Borders in using the strategic management process as the foundation for the commitments, decisions, and actions they took to pursue strategic competitiveness and above-average returns. ANS:T 5. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. ANS:T 6. Alligator Enterprises has earned above-average returns since its founding five years ago. Since no other firm has challenged Alligator in its articular market niche, the firm’s owners can feel secure that Alligator has established a competitive advantage. ANS:F 7. The goal of strategic management is to develop a competitive advantage that is permanent. ANS:F 8. Risk in terms of financial returns reflects an investor’s uncertainty about economic gains or losses that will result from a particular investment. ANS:T 9. Average returns are returns in excess of wha t an investor expects to earn from other investments with a similar amount of risk. ANS:F 10. Returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales. We will write a custom essay sample on Test Bank specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Test Bank specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Test Bank specifically for you FOR ONLY $16.38 $13.9/page Hire Writer ANS:F 11. According to the Chapter 1 Strategic Focus, Huawei was successful in the US market primarily because of its ability to build Guanxi with the US government. ANS:F 12. The Chapter 1 Strategic Focus shows that while Guanxi is an important element of doing business in China, it is unimportant in doing business in the United States as Huawei discovered when it entered US markets. ANS:F 13. Economies of scale and huge advertising budgets are just as effective in the new competitive landscape as they were in the past, but they must be reinforced by strategic flexibility. ANS:F 14. The two primary drivers of hyper-competition are the emergence of the global economy and technology. ANS:T 15. The rate of technology diffusion has been steadily increasing over the last two decades. ANS:T 16. While patents may be an effective way of protecting proprietary technology in some industries such as pharmaceuticals, many firms competing in the electronics industry do not apply for patents. ANS:T 17. Examples of incremental innovations include iPods, PDAs, WiFi, and web browser software. ANS:F 18. The rapid rate of technological diffusion has increased the competitive benefits of patents. ANS:F 19. Apple (Chapter 1 Strategic Focus) is a source of hypercompetition through its development and introduction of disruptive technologies such as the iPod. ANS:T 20. Developed countries still have major advantages in access to information technology over emerging economies because of the significant cost of the infrastructure needed for computing power. ANS:F 21. The rate of growth of Internet-based applications could be affected by the possibility of Internet service providers charging users for downloading those applications. ANS:T 2. The new CEO of Opacity Enterprises is determined to make the long-established firm strategically flexible. The CEO feels that the employees of the company have the ability, training, and resources to engage in continuous learning. The main obstacle the CEO must face is inertia. ANS:T 23. One capability characteristic of a firm with strategic flexibility is the capacity to learn. ANS:T 24. The I/O (industrial organization) model assumes that the uniqueness of a firm’s resources and capabilities are its main source of above-average returns. ANS:F 25. The CEO of Twin Spires, Inc. , is emotionally and intellectually committed to using the resources of the firm to serve the needs of the natural gardening community by providing rare and native plants to individuals and nurseries around the United States. This commitment has carried the CEO through long periods of below average returns on investment. The perspective of the CEO of Twin Spires is consistent with the assumptions of the industrial organizational (I/O) model. ANS:F 26. Although the fast food (or quick-service) industry is unattractive, McDonald’s has earned above-average returns through product innovations, enhancing existing facilities, and buying properties outside the United States. ANS:F 27. The five forces model suggests that firms should target the industry with the highest potential for above-average returns and then implement either a cost-leadership strategy or a differentiation strategy. ANS:T 28. The uniqueness of a firm’s resources and capabilities is the basis for a firm’s strategy and determines its ability to earn above-average returns under the I/O view. ANS:F 9. Research shows that a greater percentage of a firm’s profitability is explained by the I/O rather than the resource-based model. ANS:F 30. The resource-based model assumes that if firms have resources that are rare or costly to imitate, this is sufficient to form a basis for competitive advantage. ANS:F 31. Resources are considered rare when they have no structural equivalent. ANS:F 32. The assumptions of the industrial organizational model and the resource-based model are contradictory. Therefore, organizational strategists must choose one or the other model as the basis for developing a strategic plan. ANS:F 33. An effective vision statement will specify the market to be served. ANS:F 34. An effective vision stretches and challenges people and can result in increased innovation as illustrated by Apple’s CEO Steve Jobs who is known to think bigger and differently than most people (â€Å"putting a dent in the universe†). ANS:T 35. Organizational mission statements typically do not include statements about profitability and earning above-average returns. ANS:T 36. A firm’s mission tends to be enduring while its vision can change in light of changing environmental conditions. ANS:F 37. Organizational stakeholders are the firm’s internal resources, capabilities, and core competencies that are used to accomplish what may at first appear to be unattainable goals in the competitive environment. ANS:F 38. The degree to which the firm is dependent on a stakeholder group gives that stakeholder less influence. ANS:F 39. The needs and desires of organizational stakeholders are inherently contradictory. ANS:T 40. Relative power is the most critical criteria for prioritizing the demands of stakeholders. ANS:T 41. Hourly workers on the production line of a chicken-processing plant are considered organizational stakeholders. ANS:T 42. Customers, suppliers, unions, and local governments are examples of capital market stakeholders. ANS:F 43. When the firm earns lower-than-average returns, the highest priority is given to satisfying the needs of capital market stakeholders over the needs of product market and organizational shareholders. ANS:FPTS 44. Six years ago, Colette Smith founded a successful catering company that specializes in providing a wide assortment of miniature cheesecakes for corporate and social events. Although Ms. Smith is no longer active in the actual production of the cheesecakes, she continues as president of the catering company. Ms. Smith could be considered a strategic leader of this firm. ANS:T 45. Organizational culture refers to the core values shared by the firm’s top-level managers but not necessarily accepted by lower-level employees who are often transitory and not committed to the organization. ANS:F 46. Although organizational cultures vary considerably, one cannot make an objective judgment that some organizational cultures are more or less functional than others. ANS:F 47. Strategic leaders must have a strong strategic orientation while embracing change in the dynamic competitive landscape. ANS:T 48. Profit pools allow strategic leaders to predict the outcomes of their decisions before taking efforts to implement them. ANS:T 49. Corporate-level strategy in a diversified organization requires a common business strategy for each component business. ANS:F 50. An organization’s willingness to tolerate or encourage unethical behavior is a reflection of its core values. ANS:T