Month: September 2017
International Industrial Relations – Convergence and Divergence
I. INTRODUCTION There has been a growing interest in the issue of globalization, internationalization, ‘best practices’ adoption and its impacts on the convergence of national employment relations system. Many scholars concludes that at the industry level, the needed changes to be more flexible and internationally competitive has led to several common patterns in term of employment relations.
Meanwhile, others argue that cross-national variations such as culture, economic stage of development, institutions workers, behavioral mindset still exist and constitutes diversity within and between nations. This essay will review some of the most relevant literature, research and debates surrounding the topic as well as explore different viewpoints in order to make an insightful understanding of these processes. The paper will also compare and contrast two of three most dominant national models: Anglo-American and Japanese model (another is Rhineland-German model) as a case to reflect how convergence and divergence in term of employment relations system moving unstoppable. II. CONVERGENCE – COMING TOGETHER 1.
Globalization Impact Convergence of employment relations system across national borders was predicted in the early days by many scholars. They stated that globalization and international trade may put pressure on firms to standardize practices and policies.
Convergence theory was developed by American Harbison and Myers (1959) and Kerr et al. (1960). They view similar political and economic systems is the result of industrialization process and rapid growth of advanced technology. While the theory itself does not specify on industrial relations or human resource management, but its approach can be applied to gain understanding of the issue.
Globalization’s impacts on HRM come via the opening and penetration of economies to external forces. This is two-way process, with both indigenous firms and multinational enterprise adopt each other’s HRM practice. For example, foreign direct investment (FDI) promote new HRM practice from home country to host country (home-country effect) or alliances/ mergers and acquisitions between organizations facilitate the personnel transfer/relocation, in turn lead to potential convergence. Kerr’s view in the 19060s received criticism due to the over-simplification of industrial development, too much emphasis to the technology impact. Nevertheless, Kerr and other scholars like MAcDuffie (1995) argued that the forces of convergence was more likely to overwhelm national differences.
2. Best Practice Effect Convergence theorists also debate the spread of ‘best practice’ effect and benchmarking. What is considered ‘best practice’ is subjective and variable between authors, sectors and time. To simplify, we can take Gennard and Judge (1993)’s defined best practice (in employee relations) as ‘managing by behaving in a fair and reasonable manner which help to add value to the business.
They assumed that firm across nations would have to converge to best practice, otherwise losing the competitive advantages. From the industrial relations perspective, it means that HRM system need a more comprehensive and integrated mechanism, rather than a ‘pick and mix’ of few practices in order to gain their performance (Pfeffer, 1994). It is also important to notice that ‘best practice’ benchmarking occur in two different scales: internal or individual firm practice, for instance the use of particular technology, production system, labor division, inventory management system, etc and external or inter-firm practice, such as customers and suppliers relations, related industries collaboration or educational institution relations. Furthermore, universal-type theorists believe internationalization forces (political, socio, economic and technological/STEP) will push national system, including industrial relations and HRM towards uniformity. It is argued that all countries are influenced by these factors therefore government will provide similar responsibilities regarding to workforce, infrastructure and competition for international investment (Salamon ,1997).
In short, the transfer of universal ‘best practices’ around the world resulting in convergence system, both at enterprise (internal and inter-firm) and national (constitutional and industry) level. 3.
US – Japan Case The next part of paper will analysis, compare and contrast between two very different nations: Japan and U. S. A in term of employment relations and corporate governance model, each with its own advantages and disadvantages. This would be an example to illustrate how the convergence process varies during the time periods.
Japanese companies were relatively organization-oriented, meaning that employment was of extended duration and turnover low, training was extensive; and internal considerations – equity, seniority-dominated decision making on wages and allocations. Stakeholder corporate governance and enterprise unions supported the firm ‘s organizations orientation, All these implies centralized HR function in Japan. On the other hand, U. S ‘s employment practice tended to be more market-oriented with shorter job duration and higher turnover, low training expenditures, pay and allocation based on ongoing rates and other external criteria. Corporate governance privileged shareholders, and unions were either industrial in orientation or did not exist.
HR function is decentralized in U. S. In the 1980s, the flow of management was from east to west, with the idea of ‘Japanization’ of work organization, quality systems and industry relations. During this period, U.
S economy struggled, productivity declined, inflation rose while Japan experienced one of most glorious days of economy. American realized they should learn the Japanese economy model of high levels of coordination between business and government, well-balance between stakeholders, highly trained workers as well as just-in-time method. However, in the 1990s, the flow has reversed with Japanese companies experienced pressures to adapt U. S- style corporate governance and market-oriented employment practice. U.
S now enjoys macroeconomic success, generate millions of new jobs while Japan and Europe experienced slow growth and high level of unemployment. American model with flexible employment arrangements, shareholder sovereignty, decentralized companies recaptured the lead as slower-growing peers such as Japan and Europe regarding the model as the best.
Generally, this two economies become more aware of each other, they compare themselves and more likely to adopt each other’s practices, especially at the level of the industry in which they complete. For example, U. S investors are active in Japan, trying to persuade local executives to adopt U. S- style business practices, just as U.
S policy makers have been urging the Japanese government to emulate American laws regarding trade, commerce and intellectual property. On the other hand, Japanese firms have made huge amount of investment in U. S and have considerable U. S based employees who adopt to Japanese-style practices. Over time, the U.
S and Japanese firms resembled each other and this could be considered a type of convergence. However, not all ideas were borrowed. The Meiji reformers in Japan during nineteenth century picked and chose the national models that were considered ‘best practice’ of the day, but they favored those that fit with Japanese characteristics. For instance, French police system over the English version.
As in 1980s, Japanese learn about the American superior economic system, but only those elements that ‘best fit’ with Japanese practice. Japanese labor law is an example of how Japanese borrow American elements but still preserve their underlying structure. . Limitation of universalistic theory Convergence theory is contradictory as criticism states that they are too simplistic, assume all organizations implement practice in the same way while in fact they only benchmark what considered ‘best fit’ practice elements into their system. In addition, ‘best practice’ would not bring competitive advantage if all other firms can imitate those practice as well.
The theory also focus on the system and practices but ignore variations in national context such as institutions and culture. III.
DIVERGENCE – MOVING APART While many convergence theorists support that there is ‘one best practice’ of HRM approaches for organizations across nations to follow in order to fit the external environment regardless of differences in technology or stability of environment, it fail to explain how these managerial ideas and practice are interpreted, implemented and respond vary at individual, firm, industrial and institutional level. 1. Culturalism Perspective One of the criticism emphasis on the remained cultural differences between economies. The popular work of Hofstede (1980;1992) can applied to explain the variation in management aspect.
Culture is defined as the ‘collective programming’ of mind of individuals or groups which is reflected in particular assumptions, beliefs and norms held by that person or groups. Apply these perspective to employment relations area, these cultural factors was believed to be of the main important elements that shape management behavior and working practice, therefore bring about divergence. Hofstede concluded that each country will have distinct ‘national economic culture’ ince they respond differently along axis of four dimensions (power distance, individualism, masculinity and uncertainty avoidance) US-Japan Case Japan For example: ‘individualistic’ in the US encourage personal incentives versus ‘collectivism’ in Japan which remunerates group achievement and minimizes pay differentials . Or high ‘uncertainty avoidance’ in Japan, favor social stability, guarantees of job security while low ‘uncertainty avoidance’ in America indicates high degree of labor market mobility. Therefore, each country would end up with each own distinctive ‘national economic culture’ because they respond differently along each of four culture dimension.
Limitation of Perspective However, this cultural approach also have its limitation because it assumes that individual cultural attributes that influence economic behavior held constantly over time. In fact, many value and individual perceptions change such as Japanese adapt to more individualism base view from Western, especially in the case of young generation. Furthermore, the assumption of these cultural characteristics may led to bias, cultural stereotypes or misunderstandings. In addition, it completely ignore the wider institutional context such as national legal framework, business system variations as well as industrial orders.
Given that limitation, other authors like Whitehill (1991) argues that cultural should not only include values held by individuals but also the structure of the firm and society. These boarder factors are referred to as institutional approach 2. Institutional Perspectives The institutional view argues that the traditional values and practices are embedded in a country’s social and economic institutions. Maurice et al. (1986) argues that variation in educational institutions, organization structure produce national distinctive patterns of institutional framework.
Whitley (1998) who adopt these perspectives in explaining the pre-industrial history and industrialization process shape the national business system. Similarly, Kotsova (1999) defined the term ‘country institutional profile’ (CIP) as a country set of 3 institution: regulatory (laws, rules), cognitive (schemas, frames), and normative (values and norms).
He also mentioned the gap between HRM practices and mindsets that result in failure of internalization- the deeper process when employee make commitment to, satisfaction with and psychological ownership of the practice. Adopt of ‘best practice’ in HRM therfore does not lead to global harmonization but differences as the effect of negative internalization process or divergence between All these view can be utilized to explain the variations within and between nation in term of HRM and industrial relations US-Japan Case For example, the success of Japanese economies would not be explained only by its strong ‘work ethic; and ‘discipline’ but should include other institutional factor like government support, substantial enterprise training. direction and availability of skilled workforce. These institutional factors create ‘national culture gaps’ between countries (Horng, 1993) and constitutes huge barrier to the convergence process.
Both the cultural and institutional approach above can be utilized by scholars to argue that national employments relations system and practices are varied. Even convergence at the global level in terms of political, economic, socio and technological forces as mentioned on the first part, divergence still remain. Divergence remains at the national and intra-national level (macro) since these forces are interpreted, responded and implemented by different way with each country’s unique tradition and cultures. At the firm, employee level (macro) divergence occurs since each individual have their own distinctive behavioral mindsets to make commitment and internalization the newly adopted practice. Kottova, 1999:311) Furthermore, each countries are at different stages of industrial and economic development, different way technology configured and used, different choice to make their distinctive political-economic framework ‘best fit’ with global environment, gap between theory and reality of practice are considered reasons that all create divergence.
3. Convergence and Divergence- not subtitles but complementary Recently, scholars realized that divergence can happen inside the convergence trend to some extent as other way around. Youndt et al. 1996 support the view by argues that convergence and divergence both simultaneously occur, only at different level of HRM system’s structure.
Universal and best practice effect are likely to occur at macro level (structure, technology) and divergence at micro level (internal fit, culture and behavior mindsets). To summaries, transfer of ‘best practice’ and convergence of Industrial relations system is a matter of degree, not of kind. ‘What aspects and how much’ choice is determinants that shape the divergence inside that kind (Taira, 1990). IV. CONCLUSION Through the paper, I have examined the impacts of globalization on the national employment system, using Japan and US model as example to explore different viewpoints of convergence/divergence perspectives.
On one side, multinational enterprise apply global standards to their employment system with best practice transferred at various levels, therefore push the convergence button. On the other side, institutional and mindsets differences, the level of HRM practice integrated, internalization, implemented push the divergence button.
More importantly, it was agreed that both process occur simultaneously and there is no ‘best practice’ for all. Depend on their own unique culture and structure. firm will design their own HRM practices as their strategic advantages to be globally successful. References Whitley, R.
(1998) Internationalization and Varierities of Capitalism: The Limited Effects of Cross National Coordination of Economic Activities on the Nature of Business System. Review of International Political Economy, 5: 445-481. Harbison, F. and Myers, C. (1959) (eds.
) Management in the Industrialized World. NY: McGraw Hill. Kerr, C. , Dunlop, J.
, Harbison, E. H. , & Myers, C. (1962). Industrialism and industrial man.
London: Heinemann. MacDuffie, J.
P. (1995) ‘International Trends in Work Organization in the Auto Industry: National-Level vs Company-Level Perspectives’ in K. Wever and L. Turner (eds.
) The Comparative Political Economy of IR, Ithaca, NY: ILR Press, 71-113 Gennard, J. , & Judge, G. (1999). Employee relations. London: IPD.
Pfeffer, J. (1994). Competitive advantage throgh people. Boston, MA: Havard Business School Press.
Salamon, M. (2000). Indstrial relations: Theory and practice. London: FT/Prentice Hall Hofstede, G. (1980) Culture’s Consequences: International Differences in Work-Related Values.
London: Sage. Hofstede, G.
(1993) ‘Cultural Constrains in Management Theories’. Academy of Management Excutive, 7 (1): 81-93. Whitehill, A. (1991) Japanese Management, London: Routledge.
Maurice, M. , Sellier, F. and Silvestre, J. J. (1986) The Social Foundations of Industrial Power, Cambridge, MA: MIT Press.
Kostova, T. (1999). Transnational transfer of strategic organizational practices: A contextual perspective. Academy of Management REview, 24(2): 308-324 Horng, C.
1993). Cultural differences, Trust and their relationships to business strategy and control. Advances in International Comparative Management, 8:175-197. Youndt, M. A.
, Snell, S. A.
, Dean, J. W. , Jr. , & Lepak, D.
P. (1996). Human resource management manufacturing strategy, and firm performance. Academy of Management Journal, 39: 949-969. Taira, K.
(1990). From “Americanization” of Japan to “Japanization” of America in HRM/IR. Paper Presented at the Forty Third Annual Meeting of the INdustrial Relations REsearcch Association (pp. 467-475).
Washington, D. C. : IRRA
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Losing you Id Card
I won't say that losing your ID card is completely out of your control, but even losing it twice can happen obviously. Things happen, we've all lost something before, hell I had lost $100 cash before. When I woke up the next day and couldn't find it, I was so pissed, but it happened and there was nothing I could do about it, just had to take it as a loss. I’m only human, and this will not be the last mistake I ever make. However, I won’t make the same mistake over and over again. I am certain that the corrective training I am doing sucks just enough if not more to make me want to ensure to maintain firm awareness of the location of my ID card at all times from now on, which I'm sure was the intention of this corrective training or essay writing. Don't get me wrong a lot of bad things have the potential to occur if my ID were to fall into the wrong hands, but for the most part it's not too big of a deal. Also what I am doing is not punishment, punishment is Uniformed Code of Military Justice, that's something totally different and effects my well being and carrer a lot more in the long run so I should be fully greatful and fully blessed that I didn’t get a uninformed code of military justice article 15. Corrective training is just that, TRAINING. Mistakes are okay, so long as people don't repeat the same ones and they learn from them. The U. S. army values soldiers that are accountable for their actions. Being accountable means being dependable-arriving to work and appointments on time, meeting deadlines, being in the right place at the right time, doing the right thing at the right time, and making sure you have your i. d. card at all times. Morning formation is the most important formation of the day. It is made to get accountability of everyone and put out any information that there needs to be dealt with. Without having accountability there is no knowing of where everybody is or what's going on. I have realized that is an important asset always showing up on time at the right place of duty. Not only does accountability matter in formation it is also imperative to have accountability of all your weapons and sensitive items like my i. d card. Accountability can be defined as being responsible to someone else, or being responsible for something. The enlisted soldier is responsible for all items issued to issued to them weather it be a weapon, NVG's, clothes, a vehicle, or some TA-50, a feild manual, medication, etc, and most importantly a military I. d card. The NCO's responsibility is to make sure that the soldier is accountable for the items and has eyes on hese items when need, so that he can report it to his higher command. When you lose you id card, there are so many things that you can do and there are so many ways that you will get in trouble, if you lose your id card on accident you must notife you chain of command and then so with your first sgt and go to deers and replace it. Then if your id card get stolen you have to involve the military police, you have to call them then report it stolen then you have to call your chain of command and tell them it was stolen then you have to go with them to get a new id card.
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“A Rose for Emily”
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Baby Boomer and Health Care
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Baby Boomer and Health Care. (2017, Sep 19).
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Dream Vacation
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Dream Vacation. (2017, Sep 19).
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Brave New World
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Brave New World. (2017, Sep 19).
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Program Planning Terminology
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Program Planning Terminology. (2017, Sep 19).
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Jack Welch Transformational Leadership
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Piano Concert
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Human Sexual Behavior
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Human Sexual Behavior. (2017, Sep 19).
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Writing as a Process
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Why did i Get Married too Review
‘Why Did I Get Married Too? ’ Review Tyler Perry is back with another spontaneous movie, ‘Why Did I Get Married Too? ’, the continuation from ‘Why Did I Get Married? ’ Filled with laughter, love, drama, and tears, Perry and the rest of the folks from the 1st movie reunite once again at a couple retreat to the Bahamas. Perry also plays a part in the movie, Terry, as a loyal and loving husband whose wife becomes very secretive from him. The drama begins once everyone arrives at the retreat. Patricia (Janet Jackson) is an expert on relationships, however, cannot seem to communicate with her own husband about their own relationship. Angela (Tasha Smith) and Marcus (Michael Jai White) are the same old couple who constantly argues because Angela accuses him of always cheating on her. The newlyweds, Sheila (Jill Scott) and Troy (Lamman Rucker), are happy to be there together, until they all discover that her ex is joining them also. As the movie continues, the drama just adds on. Sheila’s husband, Troy, worries about finding a job throughout their whole vacation time at the Bahamas. Diane, Terry’s wife, is very happy and glowing which leads him to suspect her of cheating on him. Angela still accuses Marcus of cheating on her because of his job as a sportscaster and having a lot of female fans. Patricia and her husband have the most complicated issue, which eventually causes something tragic to happen. Perry uses all these type of problems, that can also happen in the real world, in the play as a way to tell everyone that they’re not the only ones facing them. Whether it is about money, difficulties finding a job, or even their relationship with someone. Don’t think there’s anything new going on in this 2nd movie, everything is still the same, especially the drama, just more dramatic. The movie isn’t only serious, Perry makes it comedic to balance it all out. Being the writer and producer of Madea, Perry does an excellent job in both of the movies ‘Why Did I Get Married? ’ He makes it a comedy also, so the audience can still be entertained even if it’s a bit depressing. Anyone who disliked the movie needs to watch it again, because it obviously deserved to be in the Top 5 Box Office. The movie gave out great advices and lessons on relationships, and hoping that people realize what they have in front of them. Out of 10, this movie would be rated a 9.
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Incidents of the Life of a Slave Girl
In “Incidents in the Life of a Slave Girl”, Harriet Jacobs writes, “Slavery is terrible for men; but it is far more terrible for women” (64). Jacobs’ work presents the evils of slavery as being worse in a woman’s case due to the tenets of gender identity. Jacobs elucidates the disparity between societal dictates of what the proper roles were for Nineteenth century women and the manner that slavery prevented a woman from fulfilling these roles. The book illustrates the double standard of for white women versus black women. Harriet Jacobs serves as an example of the female slave’s desire to maintain the prescribed virtues but how her circumstances often prevented her from practicing.
Expectations of the women of the era, as stated in class discussions, resided in four arenas: piety, purity, domesticity and obedience. The conditions that the female slave lived in were opposed to the standards and virtues set by society. It resulted in the female slave being refused what was considered the identity of womanhood. It was another manner in which slavery attempted to eradicate the slaves’ value of themselves. Jacobs continually struggled to maintain these female virtues. Her belief in the ideas of piety, purity, domesticity and is highlighted in her admiration of one rare, benevolent mistress, The young lady was very pious… She taught her slaves to lead pure lives… The eldest daughter of the slave mother was promised in marriage to a free man; and the day before the wedding this good mistress emancipated her, in order that her marriage might have the sanction of law. (43) Piety was one of the subscribed to virtues. However, in order for one to be pious and obtain religious insight, it would be necessary to read the Bible. This would be an obstacle for the overwhelming majority of slave women as illiteracy was prevalent, Jacobs wrote, . “.. it was contrary to the law; and that slaves were whipped and imprisoned for teaching each other to read” (61). As Jacobs knew how to read and write, illiteracy was not an impediment. Yet, slaves were forbidden to meet in their own churches, another catch for the female slave attempting to keep the virtue of piety.
Jacobs writes of the difficulties the slaves had in obtaining religious instruction after the Nat Turner insurrection, “The slaves begged the privilege of again meeting at their little church… Their request was denied” (57). A slave would only be allowed to practice the religion of their masters, . “.. the slaveholders came to the conclusion that it would be well to give the slaves enough of religious instruction to keep them from murdering their masters” (57). A typical sermon would consist of “Servants, be obedient to them that are your masters… ” (57), this type of sermon had less to do with a woman’s piety than a slave’s obedience. Nevertheless, Jacobs exhibits piety in many fashions, despite these disadvantages. When services begin in the home of a free colored man, Jacobs was invited to attend as she could read, regardless of the risk to herself “Sunday evening came and, trusting to the cover of night, I ventured out” (57). Jacobs practiced piety as the dictates of the period demanded at a great risk to her safety.
She taught a man to read the bible and begs of missionaries to recognize the need to instruct slaves in biblical studies. (61). Jacobs did not only speak of piety, but through these examples, but put it into action and could fulfill this one aspect of the female gender identity. The practice of purity was the virtue most denied to a woman in slavery. Men of society constructed the conventions, established the importance of purity in women. Purity was praised and rewarded in free white women and stolen from black slave women. The system worked against protection of slave women from sexual abuse by their masters.
Sexual abuse of slave was not viewed as a criminal offense because she did not count as a woman. Rather, she was property of the owner, who could dispose of her body and he saw fit. Jacobs’ master explicitly stated, “He told me I was his property; that I must be subject to his will in all things” (26). Sexual harassment was taken as a matter of course, “I now entered my fifteenth year, – a sad epoch in the life of a slave girl” (26). Sadly, sexual abuse was accepted almost as a rite of passage for a female slave, that at a certain age, her purity would be stolen. A female slave could not expect to find safe harbor even from the other woman of the house, “The mistress, who ought to protect the helpless victim, has no other feelings towards her but those of jealousy and outrage” (26). As opposed to acting on behalf of the female slaves, the mistress saw the slave as the problem. Without any assistance, Jacobs consistently attempted to thwart her master’s sexual attempts in order retain her purity. Importance of this purity is highlighted in the passage describing her rebellion to build a separate house where he could be alone with her, I vowed before my make that I would never enter it. I had rather toil on the plantation from dawn till dark; I had rather live and die in jail, than drag on from day to day, through such a living death. (46). Jacobs viewed the preservation of purity as passionately as any woman but slavery had placed her in circumstances that left her its certain loss. Enslaved women could not even maintain purity if subscribing to the idea of sexual relations occurring within a marriage, as it was typically denied by law or the owner.
Jacobs had fallen in love with a free black man We became mutually attached, and he proposed to marry me. I loved him with all the ardor of a young girl’s first love. But when I reflected that I was a slave, and that the laws gave no sanction to the marriage of such… 33) Jacobs is denied marriage to her lover by her owner, “Never let me hear that fellow’s name mentioned again. If I ever know of your speaking to him, I will cowhide you both… I’ll teach you a lesson about marriage free niggers! ” (35-36). However, Jacobs will not allow it to totally destroy her sense of self as a woman. While she has suffered abuse and harassment and the hands of Dr. Flint, Jacobs remained determined that Flint would not “succeed at last in trampling his victim under his feet,”(46). As she is not permitted purity, Jacobs decided to take a white lover. If she were to be forced to give up her purity it would be at least . “.. to a man who is not married… It seems less degrading to give one’s self, that to submit to compulsion” (47). The quotes show Jacobs’ recognition of the sanctity of marriage has well certain personal standards. Jacobs possesses a sense of self, she feels that she deserves to choose her own lover.
Regarding her lover she wrote, There is something akin to freedom in having a lover who has no control over you except that which he gains by kindness… The wrong does not seem so great with an unmarried man, as with one who has a wife to be made unhappy (47). Jacobs used her own sexuality as a defense, since keeping her physical purity, a right to other women, had been denied to her. By choosing an unattached man, Jacobs explains that does retain a certain moral purity, as much as could be allowed in her situation The denial of a legal marriage and own a home with him ruled out the possibility for domesticity virtue to be achieved. The women in slavery were not married and living with their own husband and children. The master often used the female slave for breeding, the children taken from the mother and sold. Jacobs poignantly narrates this destruction of family through New Year’s Day auction of slaves, On one of these sale days, I saw a mother lead seven children to the auction-block. She knew that some of them would be taken from her; but they took all. The children were sold to a slave-trader, and their mother was bought by a man in her own town.
Before night her children were all far away. … I met that mother in the street, and her wild, haggard face lives to-day in my mind. She wrung her hands in anguish, and exclaimed, “Gone! All gone! Why don’t God kill me? ” I had no words wherewith to comfort her. Instances of this kind are of daily, yea, of hourly occurrence. (17) How could the female slave possibly exhibit domesticity in a system where such constructs were not permitted to her? Women in bondage lived in a society where their offspring were not their own, as children . “.. follow the condition of the mother… ” (37), they were but the property of the master to be taken and sold at his discretion.
While domesticity was highly regarded for the white women, this was not applicable to a black slave “my mistress, like many others, seemed to think that slaves had no right to any family ties… (33). Yet, domesticity was one of the values that Jacobs most strove to maintain. She had the experience of a traditional family earlier in life speaking of how she had . “.. lived together in a comfortable home; and, though we were all slaves, I was so fondly shielded that I never dreamed I was a piece of merchandise… ” (9). Other black women apparently esteemed domesticity, as Aunt Marthy stated Ah, my child, …. Stand by your own children, and suffer with them till death. Nobody respects a mother who forsakes her children; and if you leave them, you will never have a happy moment” (75). Family and the attempt to preserve some sort of domestic was supreme. Jacobs viewed her refuge in the garret as a means to keep some semblance of domesticity and family life by being near her children.
She suffered in seclusion for seven years, residing in the garret that . “.. was only nine feet long and seven wide. The highest part was three feet high… ” (91). Jacobs did in the name of family, in yearning for domesticity, for through all her discomfiture she was able to take solace and even joy in at least being able to be near her children, “But I was not comfortless. I heard the voices of my children” (92). Jacobs’ pains illustrate how strong of a desire for the domestic family life that was denied. Even after obtaining freedom for her children and herself, she writes, “The dream of my life is not yet realized. I do not sit with my children in a home of my own. I still long for a hearthstone of my own” (156). A traditional family life remained Jacobs’ most desiderate dream which she partially obtained in her freedom, but not in the same manner that a white woman could enjoy. The one aspect of the ideal Nineteenth century female that most slave women were able to achieve was that of obedience. It was not the same obedience that the free woman was expected to subscribe to – it was not obedience to her husband, God or family, but slave woman was expected full, unquestioning obedience to her master. This obedience was achieved by physical force and the slaves’ knowledge that they were nothing more than property. Obedience was the dictate Jacobs rebelled against.
After the refusal of her request for marriage Jacobs recognizes her insolence to her master, “I know I have been disrespectful, sir… ut you drove me to it… ” (35). Jacobs could not acquiesce when such an action would be the complete destruction of her body and soul. The institution of slavery was complete subservience and annihilation of a female slave as an individual being. To practice that kind of obedience, to be submissive, would be certain death to Jacobs, whether in the physical or spiritual sense. Jacobs’ “disobedience” occurred when her piety, purity and domesticity where threatened. Instead, Jacobs exhorted obedience to the precept of morality. Moreover, she adhered to obedience of what was considered moral and just for white women.
The prescribed of ideas of what construed womanhood in the 1800s surrounded a purity, piety, domesticity and obedience. Those were most of the characteristics that were not permitted for the female slave to practice or acquire. Examining the experiences of Harriet Jacobs in “Incidents of the Life of a Slave Girl”, one witnesses that while Jacobs desired to practice the dictates of her time slavery forced her to often do otherwise
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60 Years of Independence – India’s Achievements
60 years of Independence – India’s achievements Contemporary India with a scientist President and an economist Prime Minister is very successfully treading the fast track of development Starting from an utterly ruined and exploited country under the rule of the haughty Britishers who sponged away the India wealth, the story of India’s success in the last 60 years, is one of the proverbial rise from ‘rags to riches’. India’s development within a short span of time, to the level of a country which on its own conducted nuclear test, joining the elite club of nuclear powers, and now becoming a rightful contender for getting a permanent seat in UN Security Council, speaks volumes about India’s success. Statistics and facts bear a testimony to this, that the country once thought to be just a place for the ‘snake charmers’ is making its presence felt in the land of ‘elephants’. In fact, India is flourishing in the real sense, catching the imagination of the world and thus causing blinking of the eyes of westerners who are awestruck at the sudden metamorphosis of this sleeping giant. When Kanwal Sibal, a retired foreign secretary says, “there is little doubt that India became a major player in the international checker board. It forced the world to engage with India on an entirely new basis,” there is no exaggeration in it. The truth of this statement is vindicated by the Prime Minister of Singapore Lee Juan Yew, who says, “China and India will shake the world…, and in terms of global corporate presence and representation, India is ahead of China. ” India has arrived on the world market with a bang – five lakh engineers, 2. 5 lakh doctors and 75 lakh graduates.
Goldman Sach’s BRIC report sees India as the third largest economy in the world by 2050. Another report says that by 2020 only, India will be the fourth largest economy. All is going well for India now – an improved investment climate, high economic growth, a young population (70% population below 34 years of age) and above all positive attitude of people. India is now among one of the best performing economies of the world in terms of annual growth rate of Grass Domestic Product. Mr. Kumar Mangalam Birla, Chairman Aditya Birla Group says, “we have emerged stronger, fitter and a leader in many ways. I believe we are at an inflection point, past consolidation into a phase of growth not just incremental but accelerated”. The fact that our foreign exchange reserve crossed 1 $ billion, reflects the growing confidence of investors in India. The companies of India netted over Rs. 70000 crore in exports when the global economy was seething in 2002-03. There are 16 companies whose exports net over Rs. 1000 crore, 15 companies exports goods worth Rs. 500 crore and 150 compnaies which earn over Rs. 100 crore in foreign exchange. The FORBE’S list has included 18 Indian companies under its list. Noting these positive developments, the US National Intelligence Council in its report has predicted that India will become global player in the 21st century. For the first time India has entered the ranks of the world’s tenth largest economies.
The World Bank has described India as an Asian Giant and its report mentions ‘This country rose form 12th to 10th in dollar term between 2002-04, its G. D. P. overtaking Korea and Mexico. The economy of India has grown by more than 7% in the past two years.
Apart from economic advancement, the performance of India in political sphere is also praiseworthy. The present Prime Minister of India Mr. Manmohan Singh has successfully come from two foreign trips. In France the Prime Minister very competently ‘leveraged India’s new economic clout into advancing the vital strategic objective of breaking the restrictive Nuclear Suppliers Groups’. In US, he very intelligently coaxed President Bush to work for giving legal status to India in the nuclear powers club, in return of giving, “voluntary” right of inspection of only the civilian nuclear facilities to the international atomic watchdog I. A. E. A. Those who allege India to have become a party to the US unilateralism in view of India’s voting in Iran’s case, alongside U. S. , must remember that India remained on its principle and didn’t join US on its war against Iraq inspite of enormous US pressure. It out-rightly rejected this proposal. This bears ample proof that India has its independent foreign policy. It has matured politically and has now become very realistic in its approach. It takes decision according to whichever way suits best for the national interest. Now there is no place for misplaced idealism or shibboleth of third worldism. Showing utmost political maturity, India shoved aside decades of sloth and signed major agreement with China a country earlier thought of as a backstabber and talk with it was a big no. Our country has now refused to be trapped hopelessly in the remains of a bad yesterday, proving once again that this is a nation hardened by history, that it suffers only to renew itself the other day and that it keeps pace with the changing needs so as to be in consonance with the ever changing time. Talks with Pakistan, restoration of the Muzaffarabad bus service, the historic exchange of prisoners etc are the cases in point. Another important factor which radiates the flourishing of India is its successful and smooth functioning of democracy.
Right from its start, it allowed Universal Adult Franchise, a unique achievement in itself. Many scholars at that time predicted that a country as poor, illiterate and diverse as India, could not survive on Universal Adult Franchise but succeeding years proved then wrong. These days the general election in India is the largest organized human event in history so much so that Indian Election experts are invited by America. Inspite of being not very affluent, the wisdom of Indian electorate has been proven time and again. The Economist” of London has very rightly made an apt comment regarding Indian electorate that, “the Indians have more political wisdom per thousand calories than any other people”. Prof Lani Gunier of Havard Law school says, “The best barometer to measure the health of a society is to look at the condition of its minorities who are like the coal minor’s canary…, the first to notice toxic gases in coal mines. ” Seeing with this perspective also, Indians electroate’s performance is quite good.
They discarded the NDA under whose aegis Gujrat cauldron of 2002 took place, not with landing the hooplah of India shining. Communal forces have been out-rightly discarded and secularism is on its hold. At present the sovereign head of India is a Muslim and the Prime Minister is a Sikh both from minority community. Social conditions are also developing fastly. The number of middle class enjoying a good standard of living is growing at a rapid pace. The hope for an egalitarian society is fulfilling its dream as today we have 13% scheduled caste grade I officers in the I. A. S. climbing from less than 1% in the early 50’s. The Indian diaspora with their commitment and hardwork are also making India proud. The per capita availability of grain and cloth is greater than before and health care is better.
Now even foreigners are coming to India for cheaper medical treatment. Today India is for more integrated than it was at 1947. Problems do occur but have resulted in stronger identities and a larger Indian consciousness. Nativism is now giving place to Indianism. Disasters and calamities do not dumbstruck us. We have defiantly faced the havocs of nature like the Earthquake or Tsunami on national level. The whole country unites as a family in giving succour and solace to the victims. In the field of education also, India is progressing.
The literacy rate in 2001 reached 64. 8% from 52. 21% in 1991. This increase of 12. 5% during this period is the highest increase in any decade. It is also an achievement that the rate of growth in literacy is more in rural areas than in urban areas. The gap in male female literacy rate has decreased from 24. 84% in 1991 to 21. 60 in 2001. In higher studies the IIT’s AIIMS and IIM’s of India could compete with the best institutions of the world.
Recently Times Higher Education Supplement ranked the IIT’s as 3rd in all Technological Universities of the world. Seeing the enormous talent of Indian students the European Union has announced 100 Erasmus Mundus Scholarship for Indian’s students which was previously offered to European students only. In scientific, technological and bio medical research India has made a mark. The launching of EDUSAT – a satellite purely for educational purposes marks a great lead forward in the area of satellite education. Space technology has also got a boost. Culturally India is witnessing a great renaissance.
Indian music, dance and various performing art have blossomed in the last 50 years. Now these have greater audience and their appeal is becoming universal. Language of India has seen resurgence. Indian writing in English, like that of Arundhati Roy, Jhumpa Lahiri etc has been acclaimed in the English speaking world. In the field of sports and entertainment also India is shining. Sania Mirza, Lender Paes, Sachin Tendulkar, Vishwanath Anand and Shekhar Kapoor, Amitabh Bacchan, Aishwarya Rai, Shah Rukh Khan are the bright Indian faces in the world arena. All the above mentioned points emphatically proves that India’s achievement in the last 60 years has been commendable.
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Exploring Handshakes
Correspondence concerning this article should be addressed to: Greg L. Stewart, Department of Management and Organizations, Tippie College of Business, University of Iowa, Iowa City, IA 52242 Electronic Mail may be sent to: greg-stewart@uiowa. edu. A firm handshake is often identified as an aspect of nonverbal communication that has a critical influence on impressions formed during employment interviews. Indeed, a recent search of the Internet revealed nearly a million listings that detailed the importance of the handshake and gave advice about the proper way to shake hands during an interview. In spite of seemingly widespread acceptance of the important role the handshake plays in interview success, empirical research examining the handshake in employment interviews is lacking. Nonverbal cues other than the handshake, such as eye contact during discussions and smiling, have been shown to have a critical influence on interview assessments (DeGroot & Motowidlo, 1999). Although not studied in the interview context, the ubiquitous prevalence of the handshake at both the beginning and the end of interviews suggests that nonverbal cues communicated through the shaking of hands may convey important information about job applicants. The handshake may specifically convey information about an individual’s personality, as early research suggested a traitlike relationship between the handshake and personality (Chaplin, Phillips, Brown, Clanton, & Stein, 2000; Vanderbilt, 1957). In short, good handshakes are believed to communicate sociability, friendliness, and dominance, whereas poor handshakes may communicate introversion, shyness, and neuroticism (Chaplin et al. , 2000). Yet, research has not explored relationships between the nonverbal act of shaking hands and employment interview evaluations. In this article, we empirically examine the role of the handshake in employment interviews. We first seek to determine whether quality of the handshake does indeed correspond with interviewer assessments. We then explore the nature of what is being conveyed through the handshake by examining relationships between the handshake and personality. We also assess the effect of potential gender differences in handshaking. Is Handshake Quality Related to Ratings in Employment Interviews? In the interview context, nonverbal behaviors are assumed to convey useful information (Gifford, Ng, & Wilkinson, 1985; Schlenker, 1980). The category of nonverbal cues can be broadly defined as cues, other than the content of responses, or demographic differences like sex and race (Parsons & Liden, 1984). Nonverbal behaviors commonly thought to be important during an interview include eye contact, smiling, posture, interpersonal distance, and body orientation (Forbes & Jackson, 1980; Imada & Hakel, 1977; Motowidlo & Burnett, 1995; Young & Beier, 1977). These behaviors are assumed to influence interviewer reactions, which in turn result in attributions of applicant characteristics such as communication ability, intelligence, and self-confidence (DeGroot & Motowidlo, 1999; McGovern & Tinsley, 1978). Given that a handshake typically occurs in the interview setting, it is surprising that researchers have not looked at the role this form of tactile nonverbal communication may play in the interview setting.
The handshake is a nonverbal touch behavior that can convey an “immediacy” dimension in interviews (Imada & Hakel, 1977). Immediacy is an interaction between two individuals that involves close physical proximity and/or perceptual availability (Mehrabian, 1972). It has been theorized that greater immediacy leads to attributions of greater liking (Imada & Hakel, 1977; Mehrabian, 1967). Because the act of shaking hands requires physical contact, the handshake should influence immediacy evaluations. Physical touch is generally associated with warmth, closeness, caring, and intimacy (Edinger & Patterson, 1983). Of course, awkward handshakes can also communicate negative information (Edinger & Patterson, 1983; Schlenker, 1980). Desirable handshakes have been described as firm handshakes that include a strong and complete grip, vigorous shaking for a lasting duration, and eye contact while hands are clasped (Chaplin et al. , 2000). Given the high correspondence between other nonverbal cues and interview assessments, we predicted that handshakes demonstrating these desirable characteristics would communicate positive information about the ndividual being evaluated. * Hypothesis 1: Individuals with a firm handshake will receive more positive evaluations during employment interviews. What Does the Handshake Communicate? Because shaking hands is often the first behavioral act that occurs when people meet, information conveyed through the handshake is potentially critical. But what information does a handshake convey? What specific cues communicated through the handshake might enhance an interviewer’s evaluation? One possibility is that shaking hands during an interview creates an impression about candidate personality traits that in turn influences assessments of suitability for employment. To explore this effect, we examined existing research on the relationship between traits and the handshake. Greeting behavior, such as the handshake, has mainly been investigated in anthropological and ethnographic studies (Astrom & Thorell, 1996; Schiffrin, 1974; Webster, 1984). Our search of the literature found only four empirical studies related to handshaking, and none of them was conducted in the interview context. Three studies were conducted in Sweden by Astrom and associates (Astrom, 1994; Astrom & Thorell, 1996; Astrom, Thorell, Holmlund, & d’Elia, 1993), who found moderate relationships between the handshake and personality characteristics such as social extraversion.
However, the generalizability of these conclusions to an interview setting is limited, as participants included psychiatric patients, therapists, and clergymen. Another study by Chaplin et al. (2000) in a noninterview setting found a firm handshake to be positively related to extraversion (r = . 19) and emotional expressiveness (r = . 6) but to be negatively related to shyness (r = ?. 29) and neuroticism (r = ?. 24). The findings across studies suggest that the handshake is particularly informative for assessment of two personality traits: extraversion and neuroticism (Chaplin et al. , 2000). Of the two personality traits identified as likely to be communicated through the handshake, extraversion, but not neuroticism, appears to correspond with interview assessments.
Tay, Ang, and Van Dyne (2006) specifically found evidence of a relationship with interview success for extraversion (r = . 4) but not for neuroticism (r = . 06). Other studies (e. g. , Caldwell & Burger, 1998; DeFruyt & Mervielde, 1999) have similarly identified extraversion as the personality trait most strongly related to employment interview outcomes. Moreover, meta-analytic evidence suggests that interviewer assessments of extraversion are related to evaluations of work contribution (? = . 33; Huffcutt, Conway, Roth, & Stone, 2001). Thus, cues related to extraversion appear to be particularly relevant for interpretation of personality information conveyed through shaking hands during employment interviews. In the interview setting, a firm handshake may convey that the applicant has a high level of extraversion and thus lead to a more positive evaluation. In short, a firm handshake signifies persuasive ability, sociability, and interpersonal skills (Astrom & Thorell, 1996; Chaplin et al. , 2000), which are aspects of extraversion that are particularly related to success in social interactions (Costa & McCrae, 1992; Tay et al. , 2006). We therefore hypothesized that the handshake represents a behavioral manifestation of an individual’s extraversion. Hypothesis 2: Extraversion will correlate positively with handshake ratings. * Hypothesis 3: The handshake is a behavioral mediator of the relationship between extraversion and hirability evaluations in employment interviews. Although extraversion is the only five factor model (FFM) trait previously linked both to the handshake and to interview outcomes, we sought additional insight concerning traits. We thus included the remaining FFM traits—neuroticism, agreeableness, conscientiousness, and openness to experience—as exploratory measures. Meta-analytic evidence also suggests that interviewers may use candidate appearance for spontaneous personality assessments at the beginning of the interview (Hosoda, Stone-Romero, & Coats, 2003). To control for possible effects of the “what is beautiful is good” stereotype (Eagly, Ashmore, Makhijani, & Longo, 1991), we obtained measures of candidate physical attractiveness and professional appearance.
Prior research suggests that physically attractive candidates obtain more positive interviewer evaluations than do candidates who are less attractive (Forsythe, Drake, & Cox, 1985; Motowidlo & Burnett, 1995). Professional appearance, which includes appropriateness of hygiene, personal grooming, and dress (Kinicki & Lockwood, 1985; Mack & Rainey, 1990), is expected to have even larger effects during the interview, because candidates are assumed to have more control over their own cleanliness and dress and interviewers are influenced by expectations about customary social behavior or conduct during the interview (Posthuma, Morgeson, & Campion, 2002). To better isolate the effect of shaking hands, we included both measures of candidate appearance as covariates. Does a Weaker Handshake Place Women at a Disadvantage in Employment Interviews? Considerable research has investigated how demographic characteristics, including gender, impact interview outcomes. Given equal qualifications, research suggests that women tend to be evaluated less positively than do men in ratings of their credentials on paper (Arvey, 1979; Barr & Hitt, 1986; Hitt & Barr, 1989; Parsons & Liden, 1984). On the other hand, female applicants have been found to be judged more favorably than male applicants on some nonverbal interview behaviors, such as posture and eye contact (Parsons & Liden, 1984). Nevertheless, many of these effects are modest and may largely reflect similarity between applicant and interviewer (Arvey & Campion, 1982; Dipboye, 1982; Harris, 1989; Posthuma et al. , 2002; Schmitt, 1976). Goldberg and Cohen (2004) posited that, in relation to nonverbal cues, gender may impact recruiters’ assessments of applicants differently than do verbal cues. For example, research suggests that women are perceived as being more adept at conveying nonverbal communication than are men (Buck, Miller, & Caul, 1974; Goldberg & Cohen, 2004; Graham, Unruh, & Jennings, 1991; LaFrance & Mayo, 1979). In contrast, men are typically seen as being more rational in their presentation of ideas than are women (Burke, 1996). Goldberg and Cohen (2004) found that nonverbal skills were a stronger predictor than were verbal skills of overall interview assessments. However, they found only marginal support for expected gender differences. This finding highlights the need for research that clarifies gender differences associated with nonverbal communication.
Potential gender differences are of particular concern when it comes to the handshake. Chaplin et al. 2000) found handshaking scores to be lower for women than for men. They suggested that this may be so because women have less experience in handshaking, as the practice has historically been more common between men than it has been between women or between women and men. Thus, a positive relationship between the handshake and interview outcomes might have a negative impact on women. If handshakes for women are evaluated as less desirable, the result might be lower interviewer assessments of suitability for hiring.
This expected difference in handshaking resulted in our final hypothesis. Hypothesis 4: Handshakes from women will be rated less favorably than are handshakes from men, which will result in lower interviewer assessments for women. Method Participants and Procedures Participants in this study were 98 undergraduate students enrolled in an elective, one-credit career preparations class at a large midwestern university. Their mean age was 21 years (SD = 2. 7), and 69% were juniors and seniors. Of the participants, 50 were women and 90% were Caucasian. As part of the class, students participated in a mock interview. Participants were instructed to treat this experience just as they would a “real” interview (e. . , by dressing appropriately and researching the company prior to the interview). They were also informed that past participants had occasionally obtained real interviews, which led to actual jobs, as a result of favorable mock interviews.
Informal conversations with participants and interviewers following the mock interviews indicated that the participants did take the opportunity seriously and put forth their best effort. Human resources professionals from local organizations volunteered their time to conduct the mock interviews, which typically lasted about 1 hr. A mock interview included a 30- to 45-min interview and 15–20 min of feedback provided to the participant.
Interviewers were instructed to use the same interview format they presently followed with actual candidates and to focus on the job with the most frequent openings. Hence, the mock interview was based on actual selection practices and corresponded to an interview the candidates could expect to engage in during their own job search. Because some interviewers conducted more than one interview, we assessed potential bias from nonindependence of measures. Following the procedures of Kenny and Judd (1986), we conducted an analysis of variance, with interview ratings as the dependent variable and interviewer as the independent factor, and found no evidence of rater effects, F(26, 74) = 1. 26, ns. The obtaining of multiple ratings from interviewers thus appears not to have created problems associated with nonindependence of measures. Handshake firmness was assessed by five independent raters, who scored each participant’s handshake at different times during the mock interview process. The raters shook hands while greeting each participant, either before or after the mock interview, so both interviewees and interviewers were unaware that handshakes were being evaluated.
None of the handshake evaluators served as an interviewer. Two raters greeted and shook hands when a participant arrived for the mock interview. Participants were then introduced to a third rater, who shook hands. After the mock interview, a fourth rater greeted participants, shook hands, and introduced them to the fifth rater, who shook hands. Within 5–10 s of shaking hands, raters excused themselves from participants and completed an evaluation form. To avoid priming interviewers to pay undue attention to the handshake, we did not ask them to provide explicit assessments of the handshake.
Rater Training Following the procedures of Chaplin et al. (2000), we trained raters in handshake evaluation. On contact with an individual’s hand, raters were instructed to close their hand around the participant’s hand but to wait for the participant to initiate the strength of the grip and the upward-and-downward shaking. Furthermore, the raters were instructed to release their grip only when the participant began to relax his or her grip or otherwise show signs of terminating the handshake. Raters practiced their handshaking technique on each other and on other individuals until they had mastered the evaluation concepts and technique. The training included information about the handshake dimensions. Definitions of the completeness of grip, strength, duration, vigor, and eye contact were provided.
Extreme examples of each dimension were illustrated. Individuals were recruited to shake hands with the raters and were instructed to shake hands the same way with all five raters. The raters coded the practice handshakes on all dimensions. We discussed discrepancies in the ratings to create a common frame of reference among raters. Measures Handshake ratings The raters assessed the five handshake characteristics on 5-point rating scales (Chaplin et al. , 2000). Given that each student’s handshake was scored by five independent raters, we calculated estimates of interrater reliability for completeness of grip (1 = very incomplete to 5 = full; intraclass correlation [ICC(2)] = . 77), strength (1 = weak to 5 = strong; ICC = . 83), duration (1 = brief to 5 = long; ICC = . 73), vigor (1 = low to 5 = high; ICC = . 71), and eye contact while grasping hands (1 = none to 5 = direct; ICC = . 68). Given high intercorrelation among the handshake characteristics, we also created an overall handshake score represented by the mean of the five items (ICC = . 85). Personality Participants completed the Personal Characteristics Inventory (Mount, Barrick, & Wonderlic Consulting, 2002) in a classroom context not directly related to the mock interview. The inventory comprises 150 Likert-type items that measure conscientiousness, extraversion, agreeableness, emotional stability, and openness to experience. Coefficient alpha estimates are . 89, . 90, . 91, . 90, and . 85, respectively.
Hiring recommendation Interviewers completed a final hiring recommendation at the end of the interview. The evaluation consisted of five questions that are used to assess perceived applicant suitability (Cable & Judge, 1997; Higgins & Judge, 2004; Stevens & Kristof, 1995). Questions were rated on a 5-point scale.
Examples include “This student appears to be very qualified” (response options ranged from strongly disagree to strongly agree) and “How satisfied do you think you would be if you were to hire this student for a full-time position? ” (response options ranged from strongly dissatisfied to very satisfied). Coefficient alpha for the hiring recommendation was . 90 in this sample. Candidate appearance Each candidate was videotaped while sitting for 5 s (with no audio). Four raters, independent from the interviewers and other raters in the study, evaluated applicant physical attractiveness and professional appearance. Physical attractiveness was assessed according to the single-item measure used by Cable and Judge (1997): “Please rate the overall level of physical attractiveness of this candidate on a 5-point scale ranging from 1 (very unattractive) to 5 (very attractive). Ratings of professional dress relied on a five-item scale adapted from Parsons and Liden (1984) and Kinicki and Lockwood (1985). Items include “The applicant was appropriately dressed,” with answers ranging from 1 (strongly disagree) to 5 (strongly agree). Coefficient alpha for the five-item professional dress scale was . 80. Interrater agreement was shown by ICC values of . 79 for physical attractiveness and . 89 for professional dress. Results Table 1 shows means, standard deviations, and intercorrelations among the variables.
Hypothesis 1 predicted a relationship between a firm handshake and interview ratings and was supported (r = . 9, p < . 05). All five handshake dimensions also related significantly to the interviewer evaluation (rs . 24–. 31), although none were significantly different from the effect found for the overall handshake. We thus include only the overall average rating for our tests of mediation. As expected, extraversion correlated positively with interviewer ratings (r = . 28, p < . 05). Supporting Hypothesis 2, extraversion correlated positively with handshake quality (r = . 23, p < . 05). The two covariates, physical appearance and professional dress, were not significantly correlated with the interviewer’s hiring recommendation (rs = ?. 1 and . 15, respectively) but were correlated with the ratings of the handshake (r = . 19 and . 42, respectively). None of the other FFM traits were related to either the handshake or the interviewer evaluations. apl-93-5-1139-tbl1a. gifMeans, Standard Deviations, and Correlations In a result similar to those of previous studies, women received lower ratings for the overall handshake rating (M = 3. 47 for women vs. M = 3. 70 for men). As shown in Table 2, item-level analysis revealed that this effect was attributable to gender differences on handshake strength (M = 3. 11 vs. M = 3. 64) and grip (M = 3. 51 vs. M = 3. 9). apl-93-5-1139-tbl2a. gifVariable Means by Participant Gender We used path analysis (Bentler & Wu, 1995) to test Hypotheses 3 and 4. We tested and compared three models. Model 1 includes both direct and indirect effects for extraversion and gender. Models 2 and 3 are nested within Model 1. To test whether part of the effect of extraversion and gender on interviewer ratings is mediated by the handshake, Model 2 eliminates paths from these variables to the handshake by fixing these parameters to zero. Comparison of the fit of Model 2 to that obtained for Model 1 enabled us to test whether there were mediation effects. Model 3 removes the direct paths from extraversion and gender to interviewer ratings. Lack of difference in the fit of Models 1 and 3 would provide support for the more parsimonious complete mediation model (Model 3). Each model controlled for the effect of agreeableness, conscientiousness, emotional stability, openness to experience, physical attractiveness, and professional dress on interviewer ratings.
Given an expected relationship between physical appearance and professional dress, we allowed the error terms for these variables to covary. Table 3 shows results for each model. To estimate model fit, we evaluated the chi-square statistic, root-mean-square error of approximation (RMSEA; Browne & Cudeck, 1993), goodness of fit index (GFI; Joreskog & Sorbom, 1993), and comparative fit index (CFI; Bentler, 1990). Model 1, with both direct and indirect effects, exhibited good fit, ? 2(16, N = 98) = 24. 15, p = . 09, RMSEA = . 07, GFI = . 95, CFI = . 95. Fit for Model 2 was not as good, ? 2(18, N = 98) = 31. 68, p = . 02, RMSEA = . 09, GFI = . 94, CFI = . 91, and a chi-square difference test suggested that it was significantly worse, ? 2(2, N = 98) = 7. 15, p < . 5, than was the fit for a model that included mediating effects (Model 1). This result shows that at least some of the effect of extraversion and gender on interviewer assessments was mediated by the handshake. Fit for Model 3 was marginal, ? 2(18, N = 98) = 31. 28, p = . 03, RMSEA = . 09, GFI = . 94, CFI = . 91, and the chi-square difference test suggested that fit for Model 3 was significantly worse than was fit for Model 1, ?? 2(2) = 7. 13, p < . 05. This result supports partial mediation, as the direct paths from gender and extraversion (included in Model 1) retain some explanatory power. pl-93-5-1139-tbl3a. gifFit Indices for Path Models Results for the best fitting model—Model 1—are shown in Figure 1. Extraversion had an indirect effect on interviewer ratings through its relationship with the handshake (? = . 19), as well as a direct effect (? = . 31). Hypothesis 3 was supported, as the handshake operated as a mediator of the relationship between extraversion and interviewer assessments. Hypothesis 4 was not supported.
Women received lower ratings for the handshake (? = . 18) but somewhat higher interviewer ratings (? = ?. 14). Weaker handshakes for women did not translate into lower interviewer assessments. In fact, the negative indirect relationship for women through the handshake was compensated for by a positive but nonsignificant direct relationship with the interviewer assessment. This effect is labeled suppression by Cohen and Cohen (1983). Negative relationships with some personality traits for women created additional indirect paths that were negative. Taken together, these effects show that about one half of the positive effect for women on interviewer ratings was nullified by indirect and spurious effects through the handshake. pl-93-5-1139-fig1a. gifFigure 1. Path model with direct and indirect effects. Values are standardized coefficients. Personality and gender variables are allowed to intercorrelate.
Error terms between ratings of professional dress and physical appearance are allowed to covary. *p < . 05. None of the covariates exhibited a significant relationship with the interviewer assessment. However, the handshake influenced interviewer ratings even after we had controlled for ratings of physical attractiveness and professional dress, as well as for the remaining FFM personality traits. Discussion To our knowledge, this is the first study that empirically supports the commonly held assumption that the handshake matters in employment interviews.
The high degree of interrater reliability associated with the handshake evaluation provides strong support for the notion that people present a consistent handshake when greeting others. Furthermore, as hypothesized, individuals who follow common prescriptions for shaking hands, such as having a firm grip and looking the other person in the eye, receive higher ratings of employment suitability from interviewers. As this is the first empirical study to have examined the handshake in employment interviews, a number of issues that still need clarification. One issue is the extent to which our findings generalize to other settings. Our data were collected in a mock interview setting, in which interviewers evaluated the suitability of candidates for a wide variety of jobs.
Future studies should assess whether the same relationships exist in actual interviews, with real job offers on the line, and whether the effect is stronger for some jobs than for others. Most of the interviewers in our study chose to interview for jobs with at least moderate social demands, and it may be that the handshake is not as strongly related to evaluations for jobs in which social interaction is not integral. We also chose to isolate the effect of the handshake by not sharing preinterview information, such as test scores and resumes. Such information has been linked to interview assessments (Macan & Dipboye, 1990), and provision of additional details about interviewee characteristics and qualifications may result in interviewers being less influenced by nonverbal cues like the handshake. Future studies should thus explore whether or not the inclusion of preinterview information alters the relationship between the handshake and interview evaluations. Perhaps the most important question for future investigation is whether the handshake represents superficial bias or truly communicates important information about job candidates. A long-standing concern about employment interviews is the possibility that interviewers make quick first impressions and then seek information that verifies their early perceptions (Dougherty, Turban, & Callender, 1994; Macan & Dipboye, 1988). Is the relationship between the handshake and hiring recommendation evidence of quick judgmental bias for interviewers, or are interviewers actually obtaining valid information when they shake hands? In the present study, we sought to minimize judgmental bias by obtaining handshake ratings from a source other than the interviewers. The link between interviewer evaluation of the candidate and handshake ratings provided by other individuals increases our confidence that a quality handshake conveys something meaningful about the interviewee that is also reflected in the rating of employment suitability. Moreover, the link between handshake quality and personality is consistent with the notion of information relevant to job performance (i. e. , extraversion; Huffcutt et al. , 2001) being communicated through this nonverbal interaction. Nevertheless, additional research should clarify the extent to which the handshake operates as either a biasing influence or an indicator of valid information. Of course, interviewee actions during the course of the interview will result in additional information that should be taken into account when the interviewer makes a hiring recommendation. This fact illustrates how noteworthy it is to find a consistent effect for the handshake even after 30 min of social interaction during the interview.
One explanation for the relationship is the possibility that the handshake itself is recalled and factored into the final evaluation. Another explanation is that individuals with a firm handshake engage in other positive behaviors during the interview. Once again, the link between extraversion and interview ratings supports such an effect. More extraverted interviewees present a firmer handshake, and they likely engage in other positive behaviors that reflect their ability to perform work successfully. Indeed, Huffcutt et al. (2001) found interviewer assessments of extraversion to be an important predictor of job performance. It thus seems likely that interviewers subconsciously combine information obtained during the handshake with other information obtained during the interview to arrive at an evaluation of employment suitability that is a valuable predictor of future performance. Our findings also provide important insights concerning gender and the handshake.
The suppression effect identified in our data illustrates that, even though women may be less adept at handshaking, they engage in other actions that overcome the effects of a weak handshake. Our dimensional results show that the negative effect for women is carried through strength and grip rather than through eye contact. This finding, coupled with other research demonstrating that women excel at coding and decoding other nonverbal cues (e. g. facial expression and posture; Graham et al. , 1991), suggests that women have other strengths that can overcome the liability of a handshake that lacks a firm and complete grip. In terms of gender, our a priori prediction was simply that women would receive lower ratings for quality of handshake. We did not hypothesize that the influence of the handshake on evaluations provided at the end of the interview would differ for men and for women. Yet, post hoc exploratory analyses also suggest that women may benefit more from a firm handshake than do men. Specifically, we probed how gender interacts with the handshake by regressing interviewer ratings on handshake ratings, gender, and the interaction between gender and handshake. A possible trend we identified suggests that handshake firmness (a combined measure of strength and grip) interacts with gender. Although this relationship was below conventional standards for statistical significance (? R2 for interaction term = . 02, p = . 20), a plot of the results suggests a stronger relationship with a firm handshake for women than for men. Men and women with a weak handshake (one standard deviation below the mean) received almost identical ratings for employment suitability, but women with a firm handshake (one standard deviation above the mean) received substantially higher ratings than did men with a handshake of the same firmness.
Thus, even though women on average present a weaker handshake, those women who do present a very firm handshake receive higher ratings than do men with an equally firm handshake. This effect was not found for the eye contact dimension or for the overall handshake rating. The combined findings that there is a potential interaction between firmness and gender and that the same dimensions of strength and grip are, on average, lower for women suggest that the value of a firm handshake may be greater for women than for men.
The fact that an interviewer is less likely to receive a firm handshake from a woman than a man makes handshake firmness more salient to the interviewer when he or she evaluates women and thereby increases the potential benefit of a strong and complete grip for women. The results of this study therefore provide three specific contributions toward an understanding of the handshake in employment interviews. First, we provide the first empirical link between the handshake and interviewer assessments. Second, we show that a firm handshake partially mediates the effect of extraversion, which implies that the handshake is more than a biasing factor and can indeed communicate meaningful information about job applicants. Third, we demonstrate that women overcome the effects of weaker handshakes, such that on average they do not receive lower interview performance ratings from interviewers, and that women may actually benefit more than do men if they present a strong and complete grip when they shake hands. From a practical perspective, our findings suggest that the effect of the handshake in employment interviews should not be ignored.
Interviewers can obtain important information about interviewee traits through the nonverbal cue of the handshake. Indeed, given that Huffcutt et al. 2001) found a stronger correlation with job performance for a rating of extraversion from interviewers (? = . 33) than is typical for a correlation with self-report measures (? = . 15; Barrick, Mount, & Judge, 2001), obtaining trait evaluations through behavioral indicators such as the handshake may be a valuable approach that can increase the validity of selection decisions. Of course, the likelihood of accurate assessment of traits through behavioral acts such as the handshake is likely to attenuate if job applicants receive training to provide firmer handshakes. When it comes to handshake training, a practical implication of the results is that women, as compared with men, have a greater chance of improving their interview evaluations by learning to shake hands with a firm and complete grip. In the end, our findings add to a long-running historical analysis of the handshake. The handshake is thought to have originated in medieval Europe as a way for kings and knights to show that they did not intend to harm each other and possessed no concealed weapons (Hall & Hall, 1983). The results presented in this study show that this age-old social custom has an important place in modern business interactions. Although the handshake may appear to be a business formality, it can indeed communicate critical information and influence interviewer assessments. References Arvey, R. (1979). Unfair discrimination in the employment interview: Legal and psychological aspects. Psychological Bulletin, 86, 736–765. Arvey, R. D. , & Campion, J. E. (1982). The employment interview: A summary review of recent research.
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My Aunt
Significant - adjective; important. If there was one person who has made a significant impact in my life, there would be no doubt my aunt LaTania. She is hardworking, always there for me, and has shined throughout all of her struggles. Many people in the world do not have a positive influences and most of them are the ones in trouble. Everyone should have someone like my aunt. As the manager of Source Corp Imaging, she has many responsibilities to uphold. Training all employees, doing payroll, filling out paperwork for different clients that have to go out, holding meetings and speaking publicly, answering difficult questions, and staying late without overtime pay, I would have to say this is true dedication to her job. This woman works very hard for her company and when I was a summer employee I got a first hand look at what she really did. Every employee has respect for her because she is diligent about her work, and how she interacts with people. This is the one person, I swear who doesn’t complain about all the work she has to do and when I get established in my career I hope I have all her qualities.
My aunt LaTania has always been here for me since the day I was born, she treats me as if I was her daughter. When she did have her child, everywhere they went, I was right along with them. We went to amusement parks, go - carting, the pool, arcades, the mall, the monster trucks, anywhere that was fun, we went. People always compare her daughter and me, they say that we were switched I act like my aunt and her daughter is just like my mom. We all also look alike so when you see all of us you can tell we are related.. We used to have so much fun. We didn’t need friends because we were very close to each other. When I told my family I was pregnant, it seemed like the only person who was there for me in my family was my aunt.
She would tell me everything would work out and they were just shocked and they would get over it. Aunt Toni would make sure I was okay and if I wanted to talk about something we would hop in her truck and just drive and talk about life or whatever was on my mind. I appreciate her for just always aking sure that I was all right. Throughout all her shine, she has had quite a downfall of events also. She thought she had found the man of her dreams, he was the father of her child and the only man she had been with for 18 years. They got married in August 1997 but it didn’t last long, they finalized their divorce in early 2009. When they were together around family it was all good but when I would stay over night at their house it was a different story. Always arguing, no positive energy, he gave up on their relationship and she was tired of feeling like she was the one bringing it down. Therefore it was not a healthy way to live and ultimately it had to come to divorce. Now she is very happy with someone new and it shows in her attitude and body language. I am so excited for her and her “new life. ” As a positive influence, my aunt has gone above and beyond what someone should do for somebody. She has been a great role model, a person that everyone should have in their life. I have a great appreciation for everything she has done for me. I thank god I can always go to her for her help and support.
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Hookah Bar Business Plan
Cowboy HookahTM Business Proposal Executive Summary Cowboy Hookah is a hookah bar concept that will be located in Laramie, WY to serve as an alternative place for customers to relax and enjoy a cultural experience. The focus will be to bring in students from the University of Wyoming and community members as well as young professionals in the area. The bar will be located in downtown Laramie and be managed by a team of four owners.
The business will generate revenues through the sale of flavored tobacco, non-alcoholic beverages and snacks. Cowboy Hookah will enter the market with a competitive advantage given that there are no hookah bars in Laramie. Cowboy Hookah projects to be earning profits by its first year of operation. Below are the projected gross income, total expenses and net income. The business projects growth of 50% the first year and 25% the next two years with more sustainable growth after that period. Since the company is in the introductory stage it is expected to see a lot growth after opening. 1. Objectives Cowboy Hookah’s objectives for the first year of operations are: •Effectively corner a niche market for a previously non-existent business.
Turn in profits from the first month of operations. •Maintain a 65% gross margin. 2. Keys to Success The keys to success will be: •Store design that is deemed legally acceptable and will be both visually attractive to customers, and designed for efficient operations. •Employee training to insure the best education and knowledge of products and preparation techniques. •Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high margin products, such as our line of hookah products. 3. Mission Cowboy Hookah will give its best effort to create a unique place where customers can socialize with each other in a comfortable and relaxing environment while enjoying the best brands of smoking tobacco and products in town. We will be in the business of helping our customers to relieve their daily stresses by providing piece of mind through great ambience, convenient location, friendly customer service, and products of consistently high quality. Cowboy Hookah will invest its profits to increase the employee satisfaction while providing stable return to its shareholders.
Company Summary Cowboy Hookah is a new company that provides knowledge and expertise in hookah smoking along with a lounge for people to relax in a cultural environment with their friends while enjoying smoking flavored tobacco. The concept for our hookah lounge centers around the community of Laramie and being available to the people for them to have a new experience. The business will launch its first hookah lounge in Laramie within the next six months and hopes to create a modern, cozy, hookah bar with knowledgeable employees and guaranteed high quality service and products while at a reasonable price. The business will earn revenues through the sale of tobacco (multiple flavors), drinks (coffee, tea, and juices), food (Pastries, hummus and chips, etc) and hookah products. The customers are expected to be those interested in hookah and hookah culture, and young (18-25 years old) students interested in a community-oriented experience that is an alternative to bars serving alcohol and coffee shops. 4. Company Ownership Cowboy Hookah will be registered as a Limited Liability Corporation in the state of Wyoming. 5. Start-up Summary We will need initial start-up funding of approximately $265,000 to get our hookah bar up and running. The funding will be mainly through financing but we will need at least 20-30% through equity in order to have enough money in the deal to make this a favorable loan. We will maintain a cash reserve at startup in order to cover approximately two months of expenses.
The expenses covered by this reserve will not include cost of goods sold as we will also have enough dedicated cash equivalents to purchase two months of inventory. •Legal expenses for obtaining licenses and permits totaling $1,300. •Marketing promotion expenses for the grand opening of Cowboy Hookah in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0. 4 per copy) for the total amount of $3,580. •Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium of $2,400. •Premises remodeling in the amount of $20,000, which, we consider to be sunk costs because it will not significantly increase the value of the property. •Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500). The required start-up assets of $235,000 include: •Operating capital in the total amount of $40,000 which includes cash reserves of $27,000 and inventory for the first two months of operation. Start-up inventory of $7,657, which includes: oHookah tobacco – $3,000 oCoffee filters, baked goods, salads, sandwiches, tea, beverages, etc. – $3,450 oRetail supplies (napkins, coffee bags, cleaning, etc. ) – $920 oOffice supplies – $287 •Equipment for the total amount of $25,000: oSmoking apparatus and equipment – $3,000 oFood service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc. ) – $3,000 oStorage hardware (bins, utensil rack, shelves, food case) – $2,720 oCounter area equipment (counter top, sink, ice machine, etc. – $4,750 oServing area equipment (plates, glasses, flatware) – $1,495 oStore equipment (cash register, security, ventilation, signage) – $5,935 oOffice equipment (PC, fax/printer, phone, furniture, file cabinets) – $3,600 •Purchase and remodel of the Building in the amount of $190,000: oBuilding – $170,000 oRemodel (Sunk Costs) – $20,000 Funding for the company comes from two major sources–owners’ investments and lender financing. The owners will contribute $80,000, $20,000 of which will be immediately sunk into the remodel. The remaining $185,000 needed to cover the start-up expenses and assets will come from two bank loans and short-term debt instruments. The two loans will consist of a 10 year loan in the amount of $29,000 and a 30 year mortgage on the building of $136,000. Both loans will be secured through the First National Bank. The additional $20,000 of financing needs will use distributor financing through their accounts payable and will be used in the purchasing of inventory and other supplies.
Start-up Requirements Start-up Expenses Legal$1,300 Stationary$500 Brochures/Flyers$3,500 Insurance$2,400 Remodeling$20,000 Other$2,300 Total Start-up Expenses$30,000 Start-up Assets Cash Required$27,000 Start-up Inventory$6,500 Other Current Assets$6,500 Long-term Assets$195,000 Total Assets$235,000 Total Requirements$265,000 Start-up Funding Start-up Expenses to Fund$30,000 Start-up Assets to Fund$235,000 Start-up Funding Required$265,000 Assets Non-cash Assets from Start-up$195,000 Cash Requirements for Start-up$13,000 Additional Cash Raised$0 Cash Balance on Starting Date$27,000 Total Assets$235,000 Liabilities and Capital Liabilities Current Borrowing$29,000 Long-term Liabilities$136,000 Accounts Payable$20,000 Other Current Liabilities$0 Total Liabilities$185,000 Capital Planned Investment (Owner Contributions)$80,000 Additional Investment Required$0 Total Planned Investment$80,000 Loss at Start-up($30,000) Total Capital$40,000 Total Liabilities and Capital$195,000 Total Funding$265,000 6. Company Locations and Facilities Location and Legalities The majority of funding will go towards our building and property. We will be purchasing a two unit commercial building in downtown Laramie on the corner of 1st and Grand Avenue. We believe this to be a prime location which will have a large positive impact on our exposure and growth. Because of the remodeling needed to convert one unit of 106/108 Grand Avenue into an outdoor patio we have elected to purchase the building rather than rent. This does increase our initial costs but the remodel is necessary in order to conform to the smoking ban, Title 8, Chapter 8, of Laramie, WY Municipal Code. For this remodel we have budgeted $20,000 which we consider to be sunk costs as it will not significantly affect the value of the property. The remodel will consist of removing upper portions of two walls and installing additional supports and sliding glass doors. By doing this it will allow us to conform to Laramie Municipal Code because the structure will then have only two walls and be considered an outdoor patio, which therefore will fall under 8. 56. 050 where smoking is not regulated.
This conforms to the City of Laramie’s Attorney recommendations. The floor plan will include a 50 square feet back office and a 1200 square feet Hookah bar, which will include a seating area with 10 tables, a kitchen, storage area and two bathrooms. The space in the hookah bar will be approximately distributed the following way–1,200 square feet (i. . , 55% of the total) for the seating area, 600 square feet (26%) for the production area, and the remaining 440 square feet (19%) for the customer products service area. This property is located in a commercial area within a walking distance from the University of Wyoming campus on the corner of a major thoroughfare connecting affluent neighborhoods with the busy downtown commercial area. The commercially zoned premises have the necessary water and electricity hookups and will require only minor remodeling to accommodate the hookah bar, kitchen and storage area. The hookah bar’s open and clean interior design with modern wooden decor will convey the quality of the served beverages and snacks, and will be in-line with the establishment’s positioning as an eclectic place where people can relax and enjoy their hookah experience.
The clear window displays, through which passerby will be able to see customers enjoying the atmosphere, and outside electric signs will be aimed to grab the attention of the customer traffic. 7. Product Description/Products Hookahs for Sale – range from $30. 00 to $150. 00 to purchase These include the following pieces: Pyrex Bowl •Snap-on tray •Stainless Steel Valve •One-way valve •Glass Base •Custom Hose •Bowl Grommet •Hose Grommet •Base Grommet The Python: 28″ Multiple Hose Rotating Hookah The Python Multiple Hose Hookah is the first type of Hookah model to be fully customized for today’s Hookah smoker. This Hookah has been designed with superior craftsmanship for complete authenticity and quality.
The Python rotates a full 360 degrees to allow for durability and flexibility with the individual Hookah smoker. The Python may always be converted depending on how many users are available. This Hookahs durable design allows for ease with setup and maintenance. The Neptune: 33″ Double Hose Hookah The Neptune is a larger Hookah model designed specifically for producing a great smoking experience. This Hookah model may be converted to a one hose model if two users are not available.
This Hookahs durable design allows for ease with setup and maintenance, while providing entertainment for years to come. The Zeus: 33″ Single Hose Hookah The Zeus is a larger Hookah model designed specifically for producing a great smoking experience. This Hookahs durable design allows for ease with setup and maintenance. The Colossus: 33″ Triple Hose Hookah The Colossus is primarily used by Hookah smokers who are interested in smoking with a larger group of friends. Although this model allows for up to three hookah users, it may always be converted into a two or one hose model. This Hookah may be used for both decorative and smoking pleasures, providing entertainment for years to come.
The Helios: 26″ Triple Hose Hookah The Helios is a smaller version of the Colossus, but still offers a great smoking experience. This Hookah allows for up two three users, but may always be converted into a two or one hose model. Whether smoking alone or with a group of friends, this Hookah is guaranteed to make an undeniable presence at any party. Hookah Sessions- Each session consists of the customers’ choice of size of hookah. Larger crowds usually get larger hookahs with more hoses.
Then they can choose flavors of tobacco to use. Flavored tobacco for hookah pipes will be sold as well for $15 for the first round and $12 for subsequent rounds. Each round last approximately from 30 to 45 min. Flavors include: •Cherry •Strawberry •Blackberry •Mixed Fruit •Apple •Blue Mist •Candy •Jasmine •Banana •Rose •Grape •Pistachio •Lemon •Cola •Mint •Orange •Peach •Vanilla Mango •Blueberry •Grape •Purple Haze •Raspberry •Coconut •Melon Berry A quick lighting coal made by Miraculum Coal brand. Miraculum Coal’s formula allows for the charcoal to light faster as well as maintain a more even and consistent burn throughout without interfering with the flavor of tobacco, making it the most sought after quick lighting charcoal brand available.
These Charcoals are manufactured in Holland, and are specifically designed for smoking with the Hookah. Cowboy Hookah wants to keep our prices low and competitive.
Each customer has the option of what hookah size they want to use and how many types of tobacco they would like. We hope to keep bringing new flavors to the shop so people can continue to try new things. In the future we would also like to start selling hookahs of different sizes and shapes. Food and Drink The initial menu includes: •Assortment of organic teas •Assortment of organic coffees •Fruit juices and juice blends •Salads •Pita or pita chips and hummus/other dips •Assorted pastries 8. Sales Literature Two thousand flyers will be distributed in the adjacent neighborhood, on the University campus, and in the selected office buildings within two weeks prior to the opening of Cowboy Hookah. Subsequently, free postcards with Cowboy Hookah endorsement will be printed to increase the company visibility among the patrons. Market Analysis Summary U. S. tobacco consumption has shown level growth. They favor new and interesting smoking experiences and demand great service.
Laramie, Wyoming, with its liberal and outgoing populace and long winter, has traditionally been a great place for establishments that have great atmosphere. Cowboy Hookah will strive to build a loyal customer base by offering a great atmosphere in a relaxing environment of its hookah bar, located close to the ustling University of Wyoming campus. The market for hookah bars in the United States has grown significantly in the past decade. Hookah-bars. com reports that, as of October 2008, there were at least 470 hookah bars in the U. S. and an average of five new hookah bars were opening every month. From these numbers, it can be estimated that 2-5 million current hookah smokers live in the United States. Of these hookah smokers, approximately 90% are of American origin but have grown to embrace hookah culture. In Laramie, Wyoming, Cowboy Hookah Bar will focus on college students, Community members and young professionals. . Market Segmentation Cowboy Hookah will focus its marketing activities on reaching the University students and faculty, people working in offices located close to the hookah bar and on sophisticated adults who are eighteen years old or older.
Our market research shows that these are the customer groups that are most likely to buy our products. Since tobacco consumption is universal across different income categories and mostly depends on the level of higher education, proximity to the University of Wyoming campus and local bars will provide access to the targeted customer audience. College Age Residents: College students who seek an alternative to bars and parties on campus seek out different ways to hang out with friends. Hookah bars provide such an experience because of their exotic ambiance, colorful atmosphere, focus on group dynamics, and a unique place in Laramie without alcohol. Furthermore, those between the ages of 18 and 20 can patronize hookah bars while they cannot go to the bars that serve alcohol.
Laramie has plenty of bars, but lacks spots for those under 21 to socialize with each other. Young Professionals: 18-30 years-old professionals who are tired with bar culture here in Laramie are looking for other activities. They seek locations where they can socialize with friends, talk, and share a new experience. Hookah bars make a great substitution for these individuals. According to the 2000 census there were 27,204 people living in Laramie. Out of this 31. 8% were 18-24. This group of 8,651 makes up our market segment.
According to our survey that participants took online, 50% of people ages 18-20 would be patron of a hookah bar in Laramie. Out of the participants surveyed, 48% in the age range of 21-24 said they would patronize a hookah bar in Laramie. This means that roughly 50% of the 8,651 or 4,325 individuals between the ages of 18-24 in Laramie would patronize a hookah bar in Laramie. 10. Target Market Segment Strategy Cowboy Hookah will cater to people who want to unwind and enjoy the company of friends in a relaxing atmosphere.
Such customers vary in age, although our location close to the University campus means that most of our clientele will be college students and faculty. Our market research shows that these are discerning customers that gravitate towards a new experience. Furthermore, many college students consider hookah bars to be a convenient studying or meeting location, where they can read or meet with peers without the necessity to pay cover charges. For us, this will provide a unique possibility for building a loyal client base. To attract these young students and young professionals residing in Laramie, Cowboy Hookah will position itself as an alternative to bars. We will attract them by giving them a place to socialize without having to drink alcohol. This will also give young students between the ages of 18-20 a place where they can hang out at night since they can’t go to any bars in Laramie. Along with having hookahs available to partake in smoking we will also market snacks and non-alcoholic beverages.
Competition There is currently no hookah bar in Laramie; the company will have no competitors within this industry. Bars and the bowling alley will not be considered as competitors as a substitute for our services since most are restricted under the smoking ban. That means our customer will be willing to come to any location in Laramie to relax at a hookah bar. With no competitors we will not need to worry about differentiating our service or product. This makes it easy for us to meet the needs of our customer. Website Marketing Strategy The website for Cowboy Hookah will be promoted through public relations, direct advertising, search engine optimization, and the growing community of customers. •Public relations events will include handing out handbills around campus.
Hanging posters around the town at popular locations promoting an event. •Direct advertising will include Google ads and Facebook ads. We can advertise directly to our target market with Facebook. The community of customers will generate word-of-mouth and online referrals by inviting friends to become fans of Cowboy Hookah on Facebook. Development Requirements Development of the website requires an experienced Web development firm. The website will include the following in its basic, front end: •About Us – background on the business and its concept and mission •FAQs about hookah smoking, etc. •Menu of food, drinks, and tobacco •Photo gallery •Contact page •Location and Directions page with connection to maps from Google Maps Furthermore, the management will create and regularly update a Facebook fan page. They will update the information on the fan page including: •Upcoming events, including live music and bands •Photos of the events and the hookah bar •New flavors, products or discounts 11. Market Needs General trend toward quality among U. S. consumers definitely plays an important role in the recent growth in the hookah bar industry.
Additionally, such factors as desire for small indulgencies, for something more exotic and unique, provide a good selling opportunity for hookah bars. 12. Industry Analysis Tobacco consumption has shown a level growth rate in the United States over the last decade. In 1994, total sales of tobacco were approximately $7. 5 billion. The retail tobacco industry is remaining consistent. The local climate, with a long winter season, is very conducive for the consumption of items in an indoor setting. At the same time, hot dry summers drive people into cafes to order iced drinks and other amenities. 13. Buying Patterns The major reason for the customers to return to a hookah bar is a great products, quick service and pleasant atmosphere. Although, as stated before, tobacco consumption is uniform across different income segments, Cowboy Hookah will price its product offerings competitively. We strongly believe that selling tobacco with a great service in a nice setting will help us build a strong base of loyal clientele. Strategy and Implementation Summary Cowboy Hookah’s marketing strategy will be focused at getting new customers, retaining the existing customers, getting customers to spend more and come back more often.
Establishing a loyal customer base is of a paramount importance since such customer core will not only generate most of the sales but also will provide favorable referrals. 4. Competitive Edge Cowboy Hookah will position itself as a unique hookah bar where its patrons can not only enjoy a relaxing smoke but also spend their time in an ambient environment. Comfortable sofas and chairs, dimmed light and quiet relaxing music will help the customers to relax from the daily stresses and will differentiate Cowboy Hookah from any incumbent competitors if we eventually get any. 15. Sales Strategy Cowboy Hookah employees will handle the sales transactions. To speed up the customer service, at least two employees will be servicing clients–while one employee will be preparing the customer’s order, the other one will be taking care of the sales transaction.
All sales data logged on the computerized point-of-sale terminal will be later analyzed for marketing purposes. In order to build up its client base, Cowboy Hookah will use banners and fliers, utilize customer referrals and cross-promotions with other businesses in the community. At the same time, customer retention programs will be used to make sure the customers are coming back and spending more at the hookah bar. 16. Sales Forecast Food costs are assumed at 25% for coffee beverages and pastries, 50% for retail tobacco sales and products. Proximity to the University campus will dictate certain sales seasonality with revenues slightly decreasing during the school vacation periods. The chart and table below outline our projected sales forecast for the next three years. Sales Forecast Year 1Year 2Year 3 Sales Tobacco Products$150,000$225,000$281,250 Tobacco$37,500$56,250$70,313 Food and Beverages$62,500$93,750$117,187 Total Sales$250,000$375,000$468,750 Direct Costs of SalesYear 1Year 2Year 3 Tobacco Products$32,142$48,215$60,267 Tobacco$16,073$24,107$30,135 Food and Beverage$26,785$40,178$50,223 Total Direct Cost of Sales$75,000$112,500$140,625 18. Management Team Gaps Despite the owners’ and manager’s experience in the industry, the company will retain the consulting services of Sahara Smoke.
This company has over twenty years of experience in the Hookah industry and has successfully opened dozens of hookah bars across the U. S. Consultants will be primarily used for market research, customer satisfaction surveys and to provide additional input into the evaluation of the new business opportunities. 19. Personnel Plan The table below outlines the personnel needs of Cowboy Hookah. Personnel Plan Year 1Year 2Year 3 Owners$80,000$100,000$110,000 P. T. Employees$12,000$22,000$27,000 Total People677 Total Payroll$92,000$122,000$137,000 Financial Plan Cowboy Hookah will capitalize on the strong demand for new and unique experiences. The owners have provided the company with sufficient start-up capital. With successful management aimed at establishing and growing a loyal customer base, the company will see its net worth doubling in two years. Cowboy Hookah will maintain a healthy 65% gross margin, which combined with reasonable operating expenses, will provide enough cash to finance further growth. We have assumed very conservative interest rates of 5. 25% for our commercial mortgage of 80% of property value and 8% for our small business loan. These loans are amortized over 30 and ten years respectively with all interest expense and depreciation being tax deductable. We plan to each work as needed and draw a $20,000 salary for our time during the first year. To provide additional help we will also hire part-time servers at an expense not to exceed $12,000 for the first year. We have budgeted $30,000 and an additional $15,000 for staff increases over years two and three respectively. We have also assumed a 25% payroll tax and a 15% income tax over the first three years. 20. Important Assumptions Financial Assumptions Year 1Year 2Year 3 Mortgage Interest Rate5. 25%5. 25%5. 25% Long-term Interest Rate8. 00%8. 00%8. 00% Tax Rate15. 00%15. 00%15. 00% 21. Projected Cash Flow As the chart and table below present, the company will maintain a healthy cash flow position, which will allow for timely debt servicing and funds available for future development.
Pro Forma Cash Flow Cash from OperationsYear 1Year 2Year 3 Cash Sales$250,000$375,000$468,750 Total Cash from Operations$250,000$375,000$468,750 ExpendituresYear 1Year 2Year 3 Cost of Goods Sold$75,000$112,500$140,625 Cash Spending$26,275$39,932$51,761 Bill Payments$133,237$177,490$201,283 Total Expenditures$234,512$329,922$393,669 Net Cash Flow$15,488$45,078$75,081 Cash Balance$16,213$21,359$44,679 22. Break-even Analysis With average monthly fixed costs of $20,300 in FY2001 and an average margin of 65%, Cowboy Hookah’s break-even sales volume is around $31,300 per month. As shown further, the company is expected to generate such sales volume from the out start. Break-even Analysis Monthly Revenue Break-even$19,561 Assumptions: Average Percent Variable Cost35% Estimated Monthly Fixed Cost$13,003 23. Projected Profit and Loss Annual projected sales of $250,000 in FY2010 translate into $156. 25 of sales per square foot, which is in line with the industry averages for this size of hookah bar. Overall, as the company gets established in the local market, its net profitability increases from $15,264 in FY2010 to $75,956 in FY2012. The table below outlines the projected Profit and Loss Statement for FY2010-2012. Pro Forma Profit and Loss RevenueYear 1Year 2Year 3 Sales$250,000$375,000$468,750 Sales Allowance($2,500)($3,750)($4,688) Net Sales$247,500$371,250$464,063 COGS($75,000)($112,500)($140,625) Gross Income$172,500$258,750$323,438 Expenses Payroll($92,000)($122,000)($137,000) Marketing($20,000)($30,000)($37,500) Loan Principle($1,429)($1,995)($2,102) Depreciation($8,525)($8,525)($8,525) Utilities($3,600)($4,140)($4,761) Insurance($2,400)($2,520)($2,626) Payroll Taxes($23,000)($30,500)($34,250) Other($3,500)($5,250)($7,875) Total Expenses($154,454)($204,930)($234,659) EBIT$18,046$53,820$88,779 Interest Expense($10,118)($9,795)($9,448) Taxes($1,189)($6,604)($11,900) Depreciation$8,525$8,525$8,525 Net Income$15,264$45,946$75,956 24. Projected Balance Sheet The company’s net worth is expected to increase from approximately $212,000 by the end of FY2010 to approximately $443,000 in FY2013. The table below summarizes the projected balance sheets for this period. Pro Forma Balance Sheet AssetsYear 1Year 2Year 3 Current Assets Cash and Equivalents$27,000$21,359$44,679 Other Current Assets$13,000$24,500$36,375 Total Current Assets$40,000$45,859$81,054 Long-term Assets Equipment and Furnishings$25,000$35,000$45,000 Building$170,000$178,500$187,425 Total Long-term Assets$195,000$213,500$232,425 Total Assets$235,000$259,359$313,479 Liabilities and Owner’s Equity Liabilities Short-term Debt$20,000$20,000$20,000 Long-term Debt$155,000$152,106$147,756 Total Liabilities$175,000$172,106$167,756 Owner’s Equity$60,000$87,853$145,723 Total Liabilities and Owner’s Equity$235,000$259,359$313,479 25. Business Ratios The table below outlines the company’s business ratios.
The last column represents industry average business ratios for Specialty Tobacco Places (SIC 5812). Ratio Analysis Year 1Year 2Year 3Industry Profile Sales Growth0. 00%50. 00%25. 00%7. 60% Inventory7. 83%6. 30%5. 23%3. 60% Other Current Assets0. 00%0. 00%0. 00%35. 60% Total Current Assets80. 11%86. 41%90. 46%43. 70% Long-term Assets19. 9%13. 59%9. 54%56. 30% Total Assets100. 00%100. 00%100. 00%100. 00% Current Liabilities14. 31%9. 56%7. 13%32. 70% Long-term Liabilities7. 40%4. 44%2. 54%28. 50% Total Liabilities21. 71%13. 99%9. 67%61. 20% Net Worth78. 29%86. 01%90. 33%38. 80% Percent of Sales Sales100. 00%100. 00%100. 00%100. 00% Gross Margin65. 00%65. 00%65. 00%60. 50% Selling, General & Administrative Expenses47. 94%48. 47%47. 37%39. 80% Advertising Expenses2. 26%2. 18%2. 26%3. 20% Profit Before Interest and Taxes23. 27%22. 47%23. 85%0. 70% Main Ratios Current5. 609. 0412. 690. 98 Quick5. 058. 3811. 950. 65 Total Debt to Total Assets21. 71%13. 9%9. 67%61. 20% Pre-tax Return on Net Worth62. 87%44. 64%37. 71%1. 70% Pre-tax Return on Assets49. 22%38. 40%34. 06%4. 30% Additional RatiosYear 1Year 2Year 3 Net Profit Margin17. 00%16. 58%17. 62%n. a Return on Equity46. 93%33. 48%28. 12%n. a Activity Ratios Inventory Turnover10. 9110. 1110. 11n. a Accounts Payable Turnover11. 2512. 1712. 17n. a Payment Days273029n. a Total Asset Turnover2. 161. 741. 44n. a Debt Ratios Debt to Net Worth0. 280. 160. 11n. a Current Liability to Liability0. 660. 680. 74n. a Liquidity Ratios Net Working Capital$177,858$284,304$408,334n. a Interest Coverage48. 1662. 07104. 13n. a
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Cosmetic Industry
Introduction Global economy had experienced the worst recession in decades during 2008 till 2009 (Nouriel, 2009). Fear and panic were surrounded among people. During those days, the main headline of newspaper is about share market decreasing, industrial growth decreasing, and overall instability of the economy. Rumors are thick and flying, as a result, it create more fear among people and households about their savings and hard earned income.
Most countries are affected by the recession, especially the developed country, United State (US). For example during May 2009, US housing sector had face a declined of sales, which was 79%, much more than from its peak in 2006 (74%) and became lowest in the history (Xinhua, January 21, 2010). While, stabilization in construction activity and housing prices has come during the mid of 2009, when a turnaround had emerged in housing sector. Besides, a global financial meltdown had affected world stock markets facing huge fallen, large financial institutions have collapsed and world’s wealthiest nations’ governments have to come up with strategies and resolution in order to bail out the financial systems (Anup, 2009). United Union has forecast that in 2010, the world economy is toward a mild growth of 2. 4% (Xinhua, January 21, 2010). 1. 1 How Did the Downturn Start? The crisis bursting can be caused by many reasons, inflation, increased unemployment, high oil and food prices, declining dollar value. However among the reasons, it can be concluded as due to the US housing bubble which peaked in 2005 to 2006 (Wikipedia, 2010). US economy is built on credit, therefore credit is a great tool in US and is used wisely. People can easily get credit to start or expand a business. Besides, crediting can be used to purchase luxury goods or assets such as houses or cars. In addition, the combination of low interest rates and large inflows of foreign funds had become the reason for people to do loans for doing investment or speculation (Ryan, 2009). When there are enough funds, there will be enough money to lend to potential borrowers. Loan agents definitely were asked to look as much potential borrowers or home buyer as possible in turn to get big sum of incentives or commission.
Therefore, low interest rates or cheap credit systems were launched. An increase in marketing on loan packaging and incentives such as easy initial requirement or a long-term trend will be given when raising the total loan had given. This encouraged investor assumed that they are able to increased property value to refinance their homes with lower interest rates and take out the second mortgages and use the funds to refinance or to purchase another house for the sake of investment (Wikipedia, 2010). When cheap credit created more money, definitely people spend more the money. In turn, overbuilding of houses during the period had finally led to a surplus inventory of homes. Beginning from the summer of 2006, home prices started to drop moderately (Victor, Sonal, Sreekanth et al. , 2009). Refinancing became more difficult, loan rates reset to higher level interest rates and also the payment amount, heavy losses in mortgage and many banks and investment firms began losing money in directly.
Housing price declining slowed growth of new home building, meaning that the housing market value was worth less than the mortgage price (Ryan, 2009). As compare to 2006, sales volumes of new homes were declined by 26. % in 2007 of the excess supply (Victor, Sonal, Sreekanth et al. , 2009). During March 2008, an estimated 8. 8 million of US homeowners were believed that had the negative equity. Instead of paying high interest rate which unaffordable, many people choose to just go off. [pic] (Sources: https://www. globalissues. org/article/768/global-financial crisis#Thefinancialcrisisandwealthycountries. By Anup Shah, 2009) Figure 1: Global Financial Crisis Figure 1 showed about the total amounts that governments have spent on bailouts during the economy recession. From a credit loss of $2. 8 trillion in October 2009, US taxpayers alone spend $9. 7 trillion in bailout packages and plans. Besides, $14. 5 trillion of the value of world’s companies significantly wiped out by the financial crisis (Anup, 2009). 1. 2 Implications of the Downturn to Various Economies or Countries Across the World? Around the world, stock markets have fallen, large financial institutions have collapsed and even governments have to come up with rescue planning to bail out their financial systems (referred Section 1. 1, Figure 1). In this section, we are going to compare BRIC (Brazil, Russia, India and China) and Asia Four Tiger’s (Hong Kong, Taiwan, Singapore and South Korea) economy by presenting their GDP (Gross Domestic Product) real growth rate from year 2007 to 2009. Brazil is a emerging, large and well-developed in agricultural, mining, manufacturing and service sectors country. Brazil macroeconomic can to be said stable and steadily improved before the global financial crisis hit on it during September 2008. However, their consumers and investors are in good confidence with Brazil gradually increasing of GDP growth in the second quarter of 2009. Second, Russia had faced the hardest hit economy downturn by the 2008 to 2009 as oil prices goes up and large sum of foreign credits that made Russian banks and firms relied on dried up. Thirdly, India is a developing open market country, which capitalized on large numbers of well educated people.
India escaped the brunt of the global financial crisis in 2009 because of the cautious banking policies and a low rate dependence on exports although faced a deficit due to fuel and fertilizer subsidies, debt waiver program for farmers, job guarantee program for rural workers and also with other expenditures. Lastly, China’s economy during the past thirty years has changed from a central planned system (largely closed to international trade) to a more market-oriented economy (rapid growing in private sector). The 2009 global crisis had reduced foreign demand for Chinese exports for the first time in many years. [pic](Sources BRIC referred CIA World Factbook: https://www. theodora. com/wfbcurrent/brazil/brazil_economy. html, https://www. theodora. com/wfbcurrent/russia/russia_economy. htm, https://www. theodora. com/wfbcurrent/india/india_economy. html & https://www. theodora. com/wfbcurrent/china/china_economy. tml) Figure 2: BRIC’s GDP Real Growth Rate As comparing between BRIC’s GDP real growth rate in Figure 2, Russia’s growth rate faced the most impact during the crisis year on 2009 which made the country faced a -8. 5% of real growth rate. However, second largest impact country Brazil only showed a 0. 1% of growth rate comparing to year 2008 which still maintaining a 5. 1% of GDP real growth rate. Hong Kong, Taiwan, South Korea and Singapore are recognized as the Asia Four Tiger and knew as newly industry country. Hong Kong has a free market economy and highly dependent on international trade and finance. However, Hong Kong’s open economy left it exposed to the global economic slowdown in but luckily its integration with China has helped it slowly recover from the downturn. Taiwan’s economy mostly generates 70% by exporting electronics and machinery products.
Heavy dependence on export makes the economy in danger to economy downturn. For example, during January to October 2009 Taiwan exports depreciated about 27%. South Korea had achieved an incredible record to the growth and global integration and become a high-tech industrialized economy. During the global economic downturn, South Korea faced a slowed growth of GDP to 2. 2% in the late of 2008 and 0. 8% during second quarter of 2009 and began to recover in the mid of 2009. Singapore is a country that heavily depends on exporting in consumer electronics, information technology products, pharmaceuticals and financial services’ sector. It has a highly developed and successful free-market economy; however during the 2008 global financial crisis, their GDP real growth rates depreciate about 2. 6% in 2009. [pic](Sources Asia Four Tiger referred CIA World Factbook: https://www. heodora. com/wfbcurrent/hong_kong/hong_kong_economy. html, https://www. theodora. com/wfbcurrent/taiwan/taiwan_economy. htm, https://www. theodora. com/wfbcurrent/korea_south/korea_south_economy. html & https://www. theodora. com/wfbcurrent/singapore/sinpapore_economy. html) Figure 3: Asia Four Tiger’s GDP Real Growth Rate Figure 3 is comparing GDP real growth rate between the Asia Four Tiger. Four of the country faced a negative growth rate during the 2009. Taiwan was the worst comparing to others and presents -4% of growth rate at the 2009. Then come to Hong Kong, Singapore and South Korea which is the country faced a less impact in between the four countries and showed -0. 8% for the GDP real growth rate during 2009. 1. 3 How Did It Affect Malaysia? Malaysia is a middle-income developing country. Since 1970s, Malaysia had transformed from a producer industry of raw materials into an emerging multi-sector economy.
During 2003, former Prime Minister Tun Abdullah Ahmad Badawi put in effort and tried to boost up Malaysia’s economy by investment in high technology industries, medical technology and pharmaceuticals (Malaysia Economy, 2010). Nevertheless, Malaysia is counting on exports and particularly of electronics can be concluded as a significant driver of Malaysia economy (Indexmundi, 2009). As an oil and gas exporter, Malaysia definitely has profited from higher world energy prices, even though the US crude oil price spikes approximately to $145 a barrel during 2008 and made domestic gasoline and diesel fuel forced to reduce government subsidies (Nouriel, 2009). During the global downturn, Malaysia central bank has maintains a healthy foreign exchange and same to the regulatory system. This has limited Malaysia expose to a riskier financial instruments and be one of the global financial crisis even though decreasing worldwide demand for consumer goods is expected to hurt Malaysia economic growth in 2009 and beyond (Malaysia Economy 2010). In general, we are using statistics of unemployment rate, labor force, inflation rate, export, import and GDP in order to easily explained and carry out the affect been faced through Malaysia’s economy during the US housing bubble crisis. [pic] (Source: https://www. indexmundi. com/malaysia/unemployment_rate. tm, by Indexmundi, 2009) Figure 4: Malaysia’s Unemployment Rate Figure 4 showed about the Malaysia’s unemployment rate from the year of 2006 to 2009. Highest rate was showed during 2006, which is 3. 6%. It was consistently decline over the next two year from 3. 5% to 3. 2%. However, it showed an increasing of 1 % on 2009, due to the global downturn. [pic] (Source: https://www. indexmundi. com/malaysia/labor_force. html, by Indexmundi, 2009) Figure 5: Malaysia’s Labor Force Figure 5 showed about the total employment from the year 2006 to 2009. According to Indexmundi, Malaysia labor force was at the rank of 40 over the world at the total of 10,670,000 and gradually increasing over the next few years. Even though the global downturn on the 2008, Malaysia’s labor force also showed an increasing to the total sum of 11,090,000 and at the rank of 45 among the global. [pic] (Source: Data Stream Sultanah Bahiyah Library UUM, 2010) Figure 6: Malaysia’s Inflation Rate Malaysia’s 2007 to 2009 inflation rate which present in Figure 6 showed an instability performance. It showed an increasing from 2006 to 2007 and obtained 2% of inflation rate. However, during 2008, inflation rate was increased dramatically to 5. 43%. Malaysia central bank has maintains a healthy foreign exchange and regulatory system, therefore, this has limited Malaysia expose to face a worst financial crisis. During 2009, the inflation rate declined sharply to 0. 64%. [pic] (Source: Data Stream Sultanah Bahiyah Library UUM, 2010) Figure 7: Malaysia’s Total Exporting, Importing and GDP Figure 7 showed about Malaysia’s total exporting and importing of goods and services and also the GDP (Gross Domestic Product) from the 2005 to the 2009. From 2005 to 2008, the rate of total exporting, importing and GDP gradually showed an increasing with 11. 4%, 14. 4% and 15%. However, it showed a declined on 2009 with -11. 3%, -14. 2% and -1. 7%. 1. 4 How Did It Affect Cosmetics Industry? As the US fell into a deep financial crisis in 2008, consumers who felt wealthy from the housing boom and treating themselves to indulgences such as designer handbags and luxury cosmetics had started looked for lower-priced mass brands and private label products as to close their wallets. Besides, consumers have also begun to buy less products and wait until their cosmetics bottle empty to buy another. Many middle class consumers have become more careful on spending or value-conscious. They are cutting coupons, shopping at discounts, buying more private label and will just used credit cards for certain time. In addition, well develop of internet system made them able to shop via online, comparing products via web sites in an effort to cutting down unnecessary expenses to stretch their incomes (Svetlana, 2010). pic](Sources:https://web. ebscohost. com. eserv. uum. edu. my/bsi/pdf? vid=1&hid=9&sid=f8ee297f-348b-4a8c-a310-b13bcd72ca4a%40sessionmgr12, by Chain Drug Review, 2010) Figure 8: Beauty Survey Figure 8 present about a beauty survey of consumer behavior during the global downturn period and their reaction to buy beauty products.
The survey showed that about 26% of consumers willing to buy more store or private label beauty/cosmetic products that are close to their budgets. For example, during the great depression, cosmetic sales-lipstick went up 25% because consumers looking for an affordable pick-me-up during difficult times (Sarah, Nov 20, 2008) Apart from the above survey, the weak economy of US has forced beauty store department sales drop another 2% from 2003 levels and even though offering on those high-end products, but in the end a 4. 5% dollar sales decline at September, 2009 (Chain, 2010). In addition North American L’Oreal, French cosmetics giant industry sales were down 5. 7% year over year during the September, 2008 as some distributors cut back on purchasing. Some more, New York beauty company Avon’s third-quarter revenue in North America slipped 3% (Andrew, October 11, 2008). Furthermore, according to Brazilian Association of Cosmetics, cosmetic industry in Brazil grew up 27. 5% and a drop of 3. 5% in United Kingdom (IMI, 2009). In 2009, a research been done by world’s top cosmetic leader-L’Oreal. Discovered that although times are bad, people are keeping close with their budgets, women are still willingly to spend, continue to use cosmetics to cheer themselves up and maintain a flawless complexion and hides the effects of stress and money worries on the skin (L’Oreal, 2010). For example, highlighting of the effect and risks of unprotected sun exposure and converting the message to non-users to regular sun protection in order to increase the sales (Svetlana, 2010). Research and development been done through by L’Oreal.
They find out there is still a huge market for cosmetic industry. For example, they found out that the trend women focusing on self-expression. In 2009, they determined that as the recession took hold, women were four times more likely to choose natural looking make-up than brighter colours. Therefore, striking/bolder colours beginning to replace by the nudes. Besides, they realize the market for false lashes and false lash effect mascaras is growing rapidly due to consumers feel false lashes are fun and easy way to experiment with look and also within the budgets (Amandine Ohayon, 2010). Therefore, L’Oreal sales market for false eyelashes and mascaras increasing hugely and represent more than 30% during 2009. According to Beyond Beauty Paris, to keep survive in the recession, manufacturers must not losing sight of the importance of innovation and product research and development even in the current climate. Besides with the purpose of increasing sales, manufacturers should also work together with their value chain to show how they can add value to their brand, products and services offering (Katie, July 15, 2009). Brief History of Cosmetic Industry The core purpose people used cosmetics are to make their face or body more attractive. Perfumes, lipsticks, nail polish, facial makeup, hair spray and many other type of product also are the example of cosmetic.
The history of cosmetic goes back very far into the past and it covered at least 6,000 years of human history. The first archaeological evidence of cosmetics usage is found in Egypt around 3500 BC during the Ancient Egypt times with some of the royalty having make-up such as Nefertiti, Nefertari, mask of Tutankhamun, and so on. The Ancient Greeks and Romans also began to use cosmetic. (Wikipedia, 2010) During the middle Ages, the use of cosmetics fell rapidly low. It is mainly because religious leader claimed that the use of cosmetic was similar to immorality or prostitution and was a sign of a person’s sinful nature. (Chelsi Woolz). For example, in the 1800s, make-up was used primarily by prostitute, and Queen Victoria publicly stated that make-up is inappropriate, and acceptable only for use by actors. (Wikipedia, 2010). This belief persisted for centuries until the beginning of the Renaissance. (Chelsi Woolz). Nevertheless, cosmetics were not just for beauty reason, but rather also for cultural reasons. For example, in ancient cultures, women would add rouge to their faces by grinding various mineral into a powdered form and applying them to their face. They used things like slate as a mirror. They also used various minerals to adorn their eyes, and add pigment to their hair. (https://www. health-and-beauty-advice. com/cosmetics/history-of-cosmetics. php) One of the famous cosmetic products was perfumes. Alcohol based perfumes were developed in the Middle East and were brought to Europe by the Crusaders in the 13th century. Perfumes were developed in France in 17th century.
Natural perfumes were made from ingredients like flowers, fruits, or any other naturally occurring aroma containing product. The commercial cosmetics industry saw its earliest substantial growth in the beginning of the 20th century. Lydia Boyd). In the early years of the 20th century, cosmetic are used by women to emulate their favorite singers, artists, and dancers. As a result, many companies like Revlon, Estee Lauder, Christine Dior and other had grown up and began to mass produce cosmetics to support the demand of cosmetic. 2. 1 Cosmetic: Capital Intensive Industry According to the explanation on Investopedia, capital intensive is a business process or an industry that require large amount of money and other financial resources to produce a good or service. On the other hand, labor intensive mean that a business or industry that requires large amounts of human effort to produce goods. (https://www. answers. com/topic/labor-intensive) From an article, it states that cosmetic industry is capital intensive industry. This is because they use much capital to do research and development.
There have many competitors in cosmetic industry, since companies will put more effort and time in R & D. They need to produce more product innovation which is different with their rivals so that they can attract more consumers. (https://www. firstresearch. om/Industry-Research/Personal-Care-Products Manufacturing. htm). The R&D budget that spends by the major company in cosmetic industry – L’Oreal in 2006 had cost € 533 millions. Even other competitors such as Shiseido also spend €119 millions during 2006. There is a big amount or budget need spend by cosmetic industry. (L’Oreal Annual Report, 2006) 2. 2 Factor Affecting the Industry Figure 9: PEST Analysis According to Thomas L. Wheelen, PEST analysis focuses on factors in societal environment which are political-legal, economical, socio cultural and technological. 2. 2. 1 Societal The meaning of societal that given by Oxford Advance Learner Compass is connected with society and the way it is organized. It also can be relate to the structure, organization, or functioning of society. Besides that, societal also relate to human society and its member. (Free online dictionary, 2010) 2. 2. 1. 1Animal Testing Cosmetic companies have to test their cosmetic new product on animal before they launched it. Many companies have passed regulations which states that the preservatives and lotions have to be tested before the usage. However, many protests do not agree what they did on animal. As a result, many companies have stopped testing their product on animals because of the animal right. Avon is the first company that stops using animal for product testing.
They realize that it is unethical to treat the animals cruelly. In addition, now have a lot of alternative that can substitute the cosmetic animal testing. (https://www. clearleadinc. com/site/cosmetic-animal. html) 2. 2. 1. 2 Health Care Some of cosmetics product will give impact on the health. Although before launching the new product, they will do testing on animal, some effect of the products may need more time to react. Furthermore, some of the feature in the animal is not similar to human. If the products do not give any reaction to animal, it doesn’t mean it won’t have impact on human. As a result, consumers must choose the cosmetic product carefully.
Low quality cosmetic product will dry the skin out, block the pores and others. It is best to avoid products that contain mineral oil artificial colors and artificial fragrances. Consumers are advice to check the ingredients inside the products and how the product manufactured to protect them. (https://www. vegetarian-restaurants. net/Additives/Cosmetic-Skin-Effect. htm) 2. 2. Political Malaysia cosmetic industry is controlled by Act Control of Drugs and Cosmetics Regulations 1984. However, in United State, cosmetic industry has controlled by The Federal Food, Drug, and Cosmetic Act and also The Food and Drug Administration Globalization Act. Those Act or rules is to ensure that those companies’ products is safe. According to the Al J. Spicoli, cosmetics are not considered as drugs or food, so they do not need a prior certification by the FDA or any governing body. If the cosmetic company says their new products is safe, it is allowed to go to the market without pre-market testing. Therefore, cosmetic regulation is left up to the cosmetic companies and thus, is a self-regulating industry. 2. 2. 3 Economic Economic, it usually will relate to economy. In economic term, it economy will affect or concern materials resources or welfare. (Free Online Dictionary, 2010) 2. 2. 3. 1 Palm Oil Price Increase [pic] (Sources: https://www. mongabay. com/images/commodities/charts/chart-palm-oil. html) Figure 10: Palm Oil Price Chart Nowadays, oil price are very unstable. The high oil price will increase the cost of the products especially for the supply chain. The transportation cost will increase indirectly will increase the product costs.
Beside, palm oil is a popular ingredient in personal care product has undergone a series of price increases over the past year. The price of palm oil can be seen at the chart above. When the price of raw materials increase, ingredient suppliers have been able to increase their price, thus, competition will be so fierce in the market. 2. 2. 3. 2 Economic Downturn When there is economic downturn, it will affect the sales of cosmetic. Consumers will first purchase food, clothing and then transportation, education and health care. But, it is another case for cosmetic industry when economic downturn.
According to the Beauty Counter Direct, (February 18, 2009) beauty products and cosmetics are increasingly popular. This situation is called “lipstick effect”, first evidence during the Great Depression 1929-1933 when lipstick sales rocketed 25%. 2. 2. 4 Technological Meaning of technological given by free online dictionary relates it to technology especially scientific technology. In the other hand, it is also affected by or resulting from scientific and industrial progress. 2. 2. 4. 1 Nano Technology Nanotechnology has been used in cosmetics since 1990s but it was only during the last decade that marketers caught on and started using it to sell products. Nanotechnology is currently used mostly in sunscreens. Scientist use nano technology to add shimmer and increase solubility. (https://chemistscorner. com/top-cosmetic-science-stories-of-the-decade/) 2. 2. 4. 2 Website Costly to Maintain For those companies that use e-commerce, website is costly to maintain.
Website has to attract people to click in. As a result, they need to put much effort and time to design website and manage the website. They need to always update the information to their customers and make sure their customers get what they want and needs. (https://www. econ. unian. it/servizi/hpp/micozzi/documenti/Aveda_Mktg_Plan. pdf) 2. 2. 5 Conclusion The industry is very volatile since changes in the PEST factors will affect the industry dramatically. 2. 3 Rules or Acts Governing by Cosmetic Industry Every industry in each country will govern by a rules or acts. Below is analysis of rules or acts of cosmetic industry. Food, Drug Administration (FDA) is the agency in US which relate to health and human services. It is the agency representative most popular among cosmetic industry. 2. 3. 1 United State In USA, there is few rules and regulations which famous among cosmetic industry. a. ) The Federal Food, Drug, and Cosmetic Act The purpose of this act is giving the authority to the US foods, drugs, and cosmetics. The Act defines cosmetics as products for cleansing, beautifying, promoting attractiveness, or altering the appearance. In this sense the FDA classify cosmetics without actually regulating them. This allows a manufacturer the ability to use ingredients or raw materials and market the final products without government approval. . ) The Food and Drug Administration Globalization Act The purpose of this act is to ensure the safety of the nation’s food, drug, medical device and cosmetic supply in an increasingly globalized marketplace.
The Act contain several provisions that will impact the cosmetic industry which are ? All cosmetic facilities would be required to report adverse event resulting from the use of their products to the FDA. ? All cosmetic would be required to comply with good manufacturing practices established by the Secretary of Health and Human Services. All color additives must be specifically approved by the FDA before they can be included in cosmetic products sold in the US. ? All importers of drugs, devices, foods and cosmetic would need to register with the FDA annually and pay a registration fee. ? The FDA would be given additional resources to monitor foreign facilities producing food, drugs, devices and cosmetics for American consumers. FDA also has the power to intervene when necessary to protect the public but does not generally require pre-market approval or testing.
Companies are required to place a warning note on their products if they have not been tested. The source and information about FDA is taken from Wikipedia- FDA. 2. 3. 2 Malaysia The cosmetic industry is governed by The Control of Drugs and Cosmetic Regulations 1984 Act. All of the cosmetics products have to register with the Drug Control Authority, National Pharmaceutical Control Bureau of the Ministry of Health which effective on 1st January 2004. Besides of that, manufacturers, importers and wholesalers of cosmetics industry must be licensed by the Drug Control Authority before they want manufacture, import or sell the cosmetic products. a) The Control of Drugs and Cosmetic Regulations 1984 Act All of the cosmetic products has been divide into two category which is category 1 (products which can absorbs through skin or mucous membranes) and category 2 (others cosmetic products). Products in category 1 include of eye care or make-up product (exclude eyebrow products), lip products, oral cavity products, and sun tanning products containing topical dyes or tan accelerators that apply on the area of body. For category 2 products, it includes of hair dyes without phenylendiamine, toluenediamine, salt and derivatives, and sun tanning without topical dyes or tan accerators. Registration for category 1 can be applied which began on January 2002. However category 2 products can be applied which began on January 2003. All of the registration can be apply by online system. All of the ingredients of cosmetics product must be make known by the manufacture before the product going to be register. Cosmetic product must be manufactured, packed, and keep under hygiene conditions which suit to the Good Manufacturing Practice (GMP) requirement.
There is some information that must be labeled by the manufacture on the product is: The term of ‘cosmaceuticals’ has not yet been applied by the Drug Control Authority. Therefore, all of the cosmetics product will be identified by three criteria which set by Drug Control Authority. The criteria are about application, purpose and ingredient of the product. For those products contains include medical claims, that products have to referred to the Drug Control Authority to determine the classification. All of the source and information is taken from National Pharmaceutical Control Bureau’s website. 2. 4 Growth of the Industry |2004 |2005 |2006 |2007 |2008 | |Tobacco |5 180 |5 594 |6 010 |6 426 |6 839 | |(RM million) | | | | | | |Tourism receipts |8 198 |8 846 |8 974 |9 066 | | | |(US$ million) | | | | | | | |Total Exports |86. 83 |147. 18 |113 |130 |150 |44 | |Imports from U. S. |44. 4 |32. 4 |65 |39 |41 |25 | (Source: World Trade Atlas & Department of Statistics, Malaysia) * This is an estimated figure.
The latest production data available is for year 2003. Table 2: Cosmetics and Toiletries, Malaysia From table 2, it shows that total cosmetics products import from US on year 2007 is estimated got $25 millions. It become less if compare with the year before. It may because the fluctuated on exchange rate. On year 2004, cosmetics Malaysia which imports from US is the higher which reach on $65 millions. Total market size that estimate for cosmetics and toiletries products is estimated $226 millions. In another business report shows that, the actual market size of cosmetics and toiletries products is RM3520 million. There is a different amount actual amount and estimated amount. [pic] (Source: Euromonitor and Bernstein analysis) Figure 11: 2002-2007 CAGR by Category in Global Beauty In global market, an analysis done by Euromonitor and Benstein (Figure 11) shows that the Compound Annual Growth Rate (CAGR) by category of colour cosmetic is the most slowly in beauty industry. It had only growth 4. 1% from year 2002 – 2007. The average growth rate in beauty industry is 5. 4%. However, sun care becomes the fastest growth in industry which gain 7. 8% from year 2002 – 2007. [pic] (Source: Euromonitor and Bernstein analysis) Figure 12: 2002-2007 CAGR Contribution to Growth by Product Category in Global Beauty In contribution sales by product category part (Figure 12), skin care is the largest contribution in global beauty eventhough the sales is only growth 6. 9% which less than sun care. It contributes 45% of CAGR to the global beauty by product category. Eventhough sun care sales is the most fastest growing, but the percentage sales that contribute to global skin care is only 5% during year 2002 – 2007. | |% of Total Sales |2002 – 2007 CAGR | |Facial Care |26. 7 |6. | |Body Care |5. 8 |7. 9 | |Hand Care |0. 8 |5. 4 | |Skin Care |33. 3 |6. 9 | |Shampoo |8. 4 |7. 1 | |Conditioners |5. 7 |8. 9 | |Colourants |5. |3. 9 | |Styling Agents |4. 1 |1. 6 | |Salon Hair Care |2. 5 |1. 8 | |2-in-1 Products |1. 5 |-2. 9 | |Perms and Relaxants |0. 5 |7. 2 | |Hair Care |27. 9 |4. | |Facial Make-Up |7. 0 |4. 1 | |Eye Make-Up |5. 1 |5. 6 | |Lip Products |5. 0 |3. 5 | |Nail Products |1. 7 |1. 9 | |Colour Cosmetics |18. 8 |4. 1 | |Fragrances |16. |4. 7 | |Sun Care |3. 5 |7. 8 | |Total |100 |5. 4 | (Source: Euromonitor and Bernstein analysis) Table 3: Sub-Categories within the Broader Categories Colour cosmetic can divide into face make-up, eye make-up, lip products, and nail products.
Four of these sub-categories had gain 7. 0%, 5. 1%, 5. 0%, 1. 7% respectively. Face make-up gain the largest sales percentage in colour cosmetic. But the percentage of average growth of face make-up is not the highest. It is only 4. 1% which same with the total average growth rate of colour cosmetics. Percentage sales of skin care is the highest and growth of skin care also faster than hair care, colour cosmetics, fragrances, and sun care. [pic] (Source: Euromonitor and Bernstein analysis) Figure 13: 2002 – 2007 CAGR of Global Beauty by Geographic Area From the information of figure 13, Latin America is the faster growth place for beauty products. Malaysia consider as emerging Asia category which rank on 3rd of the world in beauty industry. North America is the most slightly growth in global beauty industry. The average growth of global beauty industry is 5. 4%. Western Europe, Developed Asia, and North America growth rate is lower than the average growth rate. It means that the country growth rate which higher than average growth rate is growth faster than others. 2. 5 Contribution of the Industry to Employment and GDP |Sector |2008 (Thousands) | |Agriculture, Hunting, and Forestry |1 365. 6 | |Fishing |122. | |Mining and Quarrying |54. 5 | |Manufacturing |1944. 7 | |Electricity, Gas, and Water Supply |60. 5 | |Construction |998. 0 | |Wholesale and Retail Trade; Repair of Motor |1729. 4 | |Vehicles, Motorcycles and Personal and Household | |Goods | | |Hotels and Restaurants |783. 6 | |Transport, Storage, and Communications |583. 4 | |Financial Intermediation |276. 0 | |Real Estate, Renting, and Business Activities |553. 2 | |Public Administration and Defence; Compulsory |751. | |Social Security | | |Education |656. 5 | |Health and Social Work |252. 6 | |Other Community, Social and Personal Service |274. 2 | |Activities | | |Households with Employed Persons |253. 0 | |Extra-Territorial Organizations and Bodies |1. | |Total |10659. 6 | (Source: (BA) Labour force survey) Table 4: Statistic of Employment by Sector Cosmetic and toiletries industry consider as manufacturing sector in Malaysia. In manufacturing, it divides into few sub-industries.
Cosmetic and toiletries industries are under non electronic and electric product- chemical and chemical products industry. In 2008, manufacturing sector had contributed 1944. 7 thousands (Figure 17) of employment. The job opportunity in manufacturing sector is quite high if compare with other sector.
Sector |2006 |2007 |2008 | | |(RM Millions) |(RM Millions) |(RM Millions) | |Agriculture, Forestry, |50 512 |65 701 |76 219 | |and Fishing | | | | |Mining and Quarrying |83 869 |92 796 |127 277 | |Manufacturing |169 761 |179 522 |195 027 | |Construction |15 941 |17 584 |19 519 | |Services |266 062 |299 139 |335 235 | |Undistributed FISIM |18 066 |18 846 |19 942 | |Import Duties |5 659 |5 969 |7 387 | |GDP at purchaser |573 736 |641 864 |740 721 | (Source: Jabatan Perangkaan Malaysia, Department of Statistik, Malaysia) Table 5: GDP Malaysia at Current Price Same as mention before, cosmetics and toiletries industry is under manufacturing sector which sub-sector is chemical and chemical products. The GDP Malaysia at current price in manufacturing sector is increase year by year. Manufacturing is rank on second which only behind service sector. The GDP rate of manufacture sector from year 2006 to 2008 is RM169 761 millions, RM179 522 millions, RM195 027 millions respectively (Figure 18). The percentages on manufacturing sector contribute to Malaysia GDP is become decrease year by year even though the total gain by manufacturing is increase year by year. It shows that Malaysia economy crisis will be recovered soon. From the economy report Malaysia (Refer to appendix), it shows that GDP by index of non electronic and electric- chemical and chemical product achieve 152. 2 on year 2007 and increase to 156. 4 on year 2008. The percentage change on year 2007 is 9. 2 and year 2008 is 1. 4. An export of manufactured goods chemical, chemical and plastic products had gains RM20128 millions on year 2007 and raise to RM23136 millions on year 2008. The percentage change is 22. 1% and 14. 9% on year 2007 and year 2008 respectively. 2. 6 Critical Success Factor Critical success factor is the factor that an organization or company necessary to achieve its mission. It also relate to how an organization success in an industry no matter is current or future. 2. 6. 1 Loyal Customer Base In cosmetic industry, there have many well-known cosmetic companies such as Christian Dior, Lancome, Avon, Estee Lauder and many more.
Each company has to build its own loyal customer base so that they can gain a large market share. Loyal customers are more likely to stay with the brand and buy more. This is because the company can give a high satisfaction to the customers and they choose to buy and visit more. Many companies spend much of their time and effort always trying to attract new customers. Each cosmetic product has its own characteristics. Therefore, companies have to study the needs and want of the customers and produce the cosmetic products that match the requirement of customers. (https://marketingpr. suite101. com/article. cfm/building_a_loyal_customer_base) 2. 6. 2 Wide Range of Product Cosmetic industries are suggested provide a wide range of product.
Cosmetic market target can not only providing cosmetic product to the women which in 20 to 30 years old, but also provide product that suit to the women in 50s and 60s. For example, Kanebo has done that with its Chicca brand, not just women in the 20s and early 30 s, producing eye shadow and lipstick that can be applied quickly and simply by women in their 50s and 60s. On the other hand, Shiseido also launched a new brand called Elixir Prior which targets the over 60s. (https://www. beautypackaging. com/news/2008/12/30/despite_economic_slide,_japan’s_cosmetic_market_remains_strong) 2. 6. 3 Time and Effort Time and effort is one of the important critical success factors. In cosmetic industry, company will require much effort and time to do research and development. There have many cosmetic companies supply similar product. As a result, company can apply product differentiation strategies by concentrate more in product innovation to gain competitive advantage. The companies use their creativity to create a new product which their rivals are difficult to imitate. But, in other case persistence is also a reason for some people failures. Many people persist too long in the face of obvious defeat, increasing their losses and missing out on lost opportunities while they follow the wrong path. If the research cannot be continuing, then the company has to stop it to reduce the loss. (https://www. articleflame. com/Art/1512/140/Critical-Success-Factors. html) 3. 0 Analysis of Competitive Factors Competitive factor is a feature benefit considered key or essential to the promotion of a product or service to its intended market (Layton, 2007). Competitive factor is an important tool which can attract buyers on the products.
The company has to analyze carefully and clearly about the competitive factors that available in the markets to make sure the products can gain the customers’ loyalty, increase market share and raise the reputation of the brand or company, 3. 1 Major Companies and Other Players of the Industry The major company that we will discuss is Loreal which is the leading company in cosmetics industry and other players which are Christian Dior, Shiseido, Kose and Estee lauder which know as the competitors of Loreal in this industry. We will briefly explain the company information as below. 3. 1. 1 L’Oreal Although there are many other brands of cosmetics in the global market, but L’Oreal still considered as the leading company in the cosmetics with a portfolio that contains many of the world’s biggest hair and beauty products, including such brands as Garnier, Maybelline and Lancome. Lancome had been established since 1935 in cosmetics market. It has variety kinds of products which include skincare, makeup and fragrance products. 3. 1. 2 Christian Dior It is specializes in the production and distribution of consumer goods. According to annual report 2006 of Christian Dior, it stated that the perfumes and cosmetics again gained the market share compare with all of their competitors. The strength of the LVMH’s leading brands such as Louis Vuitton, Christian Dior and so on give the group a competitive advantage. 3. 1. 3 Shiseido It is a major Japanese hair care and cosmetics producer. It is known as the oldest cosmetics company in the world and fourth largest company in the world. Currently, Shiseido sells Benefique pre-makeup and foundations products, Macquillage full-line makeup counseling-based products, and integrate full-line makeup self-selection based products.
The “Makeup” provides full range of products including lips products, powder eyes shadow, eye liner pencils, mascara, fluid and compact foundation, concealers, and powder blush. 3. 1. 4 Kose Thegu basic of all Kose’s corporate activities based on two words which are sensuousness and intelligence. Kose seeks to evolve from just a cosmetics manufacturer into a diversified company that focuses on beauty and enriches people’s lives. Kose has always been committed to brand development for each age, producing products long-loved by customers and items at the cutting edge of new trends, and will continue to offer cosmetics with unique value to win satisfaction of customers. (Kose Corporate Profile) 3. 1. 5 Estee Lauder The company founded in year 1946 armed with four products and an unshakeable belief which is woman can be beautiful. It is a globally recognized manufacturer and marketer of skin care, makeup, fragrances and hair care products.
Headquarter of Estee Lauder is in New York. 3. 1. 6 P (Beauty) It is the world first maker of household products courts market share and billion dollar names. It divided into three global units which are health and well-being, beauty and household care. (https://biz. yahoo. com/ic/11/11211. tml) 3. 1. 7 Avon Avon products are the world largest direct seller of cosmetics and beauty-related items, it is busy building a global brand and enticing customers younger than its typical middle-aged buyer. Its products lines include cosmetics, fragrances, toiletries, jewelry, apparel, home furnishings, and more. (https://biz. yahoo. com/ic/10/10152. html) Avon use both door-to-door sales people and catalogs to advertise its products. Avon is the company for women which is a leading beauty company, with $10 billion in annual revenue. (https://www. avoncompany. com/investor/companyoverview/index. html 3. 2 Trend and Drivers of Cosmetic Industry Trend means a general direction in which a situation is changing or developing (Oxford Advanced Learner’s Compass, 2010). In cosmetic industry, there will have different trend and drivers on every year. Cosmetic industry include of skin care, hair care, and also make-up. The similar trend may continue on next few years.
But it will have some change on style, product category or ingredient. 3. 2. 1 Cosmetic Market Trend and Driver by Make-up Style According to the head of buying beauty at House of Fraser, the latest or major trend on cosmetic industry is bronzing make-up ( Debbie Beaumont Howell). Bronzing make-up can define as make-up with natural colour which similar with human skin. It more to gold color or brown color or skin colour. The fashion cosmetic trend now can be considered to more natural since Debbie answer an interview in International cosmetic news. In 1990, exaggerated make-up is very famous among girls and lady. Almost every girl or lady who like to make-up will draw a very sharp colour on their face. “One new trend which cannot ignored is that of facial primers which have seen a resurgence in light of the new focus on eye products. ” (www. thefreelibrary. com) The purpose of they focus on eyes is to make human looks become more eye-catching and nice-looking. The colour use to eye make-up also is focus on neutral colour such as bronze, taupe, gold or brown colour. It will look natural. But, for younger female, they will try to combine the neutral colour with a layer of bright colour. To make it become attractive, use eye liner and mascara to carry on it. Eye liner is one of the popular cosmetic that use by female during make-up. Nowadays, most will choose powder or liquid type and brush the base of lash liner with metallic or colourful colour. The old style of eye liner pencil will eliminate by the industry (https://www. thebeautybiz. com). 3. 2. 2 Cosmetic Market Trend and Driver by Product Category Debbie also got mention that sun care also is one of the trend in the latest cosmetic industry. For people who have whitening skin is very care on their skin colour. They will use the cosmetic which has sun protection to avoid their skin become worse.
People who stay at Asia country will more concern about it because there are almost tropical countries which will have a hot weather no matters in which month of the year. Nowadays, cosmetic not only use for make-up and make human become difference, it also become a product that need to protect their skin and avoid injured by the fierceness sunshine. Cosmetic product also include of skin care. The fierceness of sunshine had made the SPF product high demanded.
The side effect of sunscreen is can bring pigmentation problem to human skin. Therefore, SPF product becomes a trend in cosmetic industry to reduce the irritating emotion of consumer. With the “well-established of UV filter ethylhexy methoxycinnamate was safely entrapped in silica, giving Eusolex ® UV Pearls OMC (Rona/EMD Chemicals Inc) and contact of the UV filter with the skin was practically eliminated” (Phyllis Klein, vice president of public relations at Max Factor). Besides of that, for Asia market, consumer will more prefer to buy multi-functional product which fulfill the economy value (https://www. bfsmagazine. com. my/pdf/JA_articles. pdf). For example, consumer can use a product which include UV protection and in other way can hydrate their skin at the same time. Some of the cosmetic will include some vitamin contain with take advantage for consumer skin. It is a good product for smart consumer for those got a well financial planning. According to an article from ids group, it got mention that consumer nowadays got a great demand on anti aging added function product (www. idsgroup. com). The growth of baby boomer generation has brought the trend in cosmetic industry. There is few example of the company which launch of anti aging product or shows growth sales on anti-aging product.
According to Avon, market of anti aging product had a double digit growth sales compare to year before. They also state that Avon had spent US$200million on R to develop anti aging product.
For Lancome cosmetic brand, they had breakthrough for anti aging series on second semester of 2009. The trend of Lancome is concern on consumer future. It is a long term planning for a consumer. Lancome will continue the amazing stories which happen on 1990. The product had brought an amazing and great result to the customer. The mastery of Lancome is the ingredient of cosmetic make consumer ease to use the product without worry of the safety issue or any allergic problem. Most of the female consumer will use of the anti-aging product around they in 25 years old which can bring them become younger with economically without any surgery or Botox (www. beauty. about. com). The purpose of they take anti aging product is wish to see the immediate result without any brand loyal (Global Insight Report). In 21st century, cosmetic is not a product which only own by female consumer . Male consumer already becomes the new target market for cosmetic company. (https://www. bfsmagazine. com. my/pdf/JA_articles. pdf). There is a lot of male cosmetic product range develop by cosmetic company such as L’Oreal, Shiseido, Mandom and so on. Nowadays, not only female concern about their appearance or image, male also will care of it. In a Global Insight executive summary report got state that male consumer nowadays already start accept the usage of cosmetic or personal care. The acceptance of male in this industry has bring a new trend to the cosmetic industry.
For young male, they will care on cleanness of face and also focus on their looks of media star. However, aging male will care on the volume and colour of their hair. There is an expected growth on men shaving products and hair care products as well as facial cleansers and skin care items. Usually skin care items or facial cleanser is use by teens or male on range 25-30 years old. (https://edms. matrade. gov. my) Another trend on product category is whitening product. This trend is more popular on Asia countries which locate at tropical country with a shining sunshine. In China and Indonesia, a research done by Asian Market Intelligent report that almost half of the female on that country has use whitening product. Asian countries prefer white and fair radiance skin.
However, Western country people are more prefer on bronze colour skin. Therefore, the cosmetic product trend will have some different on different contingent country. (https://www. bfsmagazine. com. my/pdf/JA_articles. pdf). . 2. 3 Cosmetic Market Trend and Driver by Ingredient “ By 2009, the natural personal care market is projected to reach US$7. 9 billion. ”(https://edms. matrade. gov. my) The major trend of cosmetic industry in ingredient part, consumer more prefer to natural product which not include too many organic ingredient in cosmetic. There is a market report done by Euromonitor International with an article name as the growth of natural ingredient can show how popular a natural ingredient in cosmetic industry. Euromonitor also predict that natural cosmetic product will continue growth on the next five years.
President of Green Marketing Inc. , Darrin C. Duber-Smith mentioned that there is a growth almost 8% per year on natural ingredient. Besides that, in a beauty tips article, it mentions that organic cosmetic market is growing exceptionally. (www. beautytipshub. com). Other than that, from a marketing research company- Kline show that the trend for natural care products in Asia is strong and the awareness of consumer on ‘natural’ concept is quite high on Asia. A report with content of overview of the china cosmetic also state that demand of natural product also has been grow well. “Since China consumer tend to believe in traditional Chinese herbal medicine, cosmetic using natural herbs appear to be appealing to many user. ” (www. idsgroup. com). In other way, we also can conclude natural product as ecological product. All of the report and article can shows that people nowadays are more concern and aware of the important of health and wellness. Ingredient of cosmetic is very important to consumer. Today’s consumers are more prefer to choose the safe and pure option to assure a better treatment even though only for externally used.
Consumers are willing to pay higher price for their health and skin benefit and have a higher standard quality product. Therefore, to become a smart consumer, consumer will very concern and ask beauty advisor or consultant about the ingredient in the cosmetic product. Debbie Beaumont Howell personally thinks that pure rather than organic is the way forward. As cosmetic manufacture, they also start to concern about this issue and do R on this field to produce natural product in mass market and specialty markets. 3. 3 Comparison between Major Company with Competitor in Cosmetic Industry |Company |Sales |Profit |Market share |Products |Target market | | |($ millions) |($ millions) | | | | |Estee Lauder |7910. 8 |473. 8 |6. 1% |Types of products: |Premium market | | | | | |Skin care | | | | | | |Make-up | | | | | | |Fragrance | | | | | | | | | | | | | |Product Category: | | | | | | |Core Brands | | | | | | |Specialist Brands | | | | | | |Licensed Fragrances / | | | | | | |Make-up | | |Kose |1. 802220 |0. 069 |0. 00009% |Types of products: |Premium market | | | | | |Skin Care | | | | | | |Make-up | | | | | | |Hotel Amenity | | | | | | |Cosmetics | | | | | | | | | | | | | |Product Category: | | | | | |High-Prestige Brands | | | | | | |Prestige Brands | | | | | | |Self-Selection Brands | | (Source: L’Oreal official website) Table 7: Geographic Area that L’Oreal Going Abroad L’Oreal is a worldwide company which in cosmetic and toiletries industry.
The origin country of L’Oreal is France. However, after few centuries, they had success to bring their business going abroad. With the well performance of their business strategy, they had become the major company in cosmetic and toiletries industry. They had brought their business to Europe country, Asia country, America, Africa, and Middle East country. As a parent company, L’Oreal has a lot of product under different brand name with different division. Not every brand has gone abroad every country that L’Oreal going abroad. It has depended on the country market. | |2008 | | |€ millions |% of total | |Western Europe |7 984. 7 |45. 5 | |North America |4 167. 5 |23. 8 | |Rest of the World |5 389. 6 |30. | |Group |17 541. 8 |100 | (Source: 2008 Annual Report, L’Oreal) Table 8: Revenue / Sales by Geographic Zone Total revenue (Figure 21) that gains by L’Oreal from all of the sub-brand all over the world on year 2008 is €17541. 8 millions. In Western Europe, there had supply €7984. 7 millions (45. 5%) to L’Oreal parent company. It is a large amount compare with other contingent of the world. It shows that L’Oreal has a large and stable market on Western Europe country. A strict and success inventory management by distributors has brought a positive impact to L’Oreal sales. Compare with other country, they also supply 30. 7% from overall revenue to parent company.
The rest country can be divided into Asia, Eastern Europe, Latin America, and Africa. Overall sales performance of those countries also has brought like-for-like growth with minimum 6% and maximum 27%. But the revenue gain still less than Western Europe. | |2008 | | |€ millions |% of Total | |Western Europe |7 381. 5 |45. | |North America |3739. 3 |22. 9 | |Rest of the World: |5238. 1 |32. 0 | |Asia |1844. 3 |11. 3 | |Latin America |1151. 2 |7. 0 | |Eastern Europe |1380. 3 |8. 4 | |Other Countries |862. 2 |5. | |Cosmetics Branch |16358. 9 |100 | (Source: 2008 Annual Report, L’Oreal) Table 9: Revenue / Sales of Cosmetic by Geographic Zone The business of L’Oreal is quite wide. On cosmetic industry, they had total earn €16358. 9 millions. In cosmetic industry, L’Oreal has divided it into consumer products, luxury products, professional products, and active cosmetics. In Western Europe, it has achieved a slightly growth with the success of L’Oreal Professional for man and the new launch of Keraskin Esthetics. However, the rest of the world also has a growth with the successful leadership management. For Nor
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A Long Way Gone Questionair
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Safe and Responsible Driving
Being a safe and responsible driver takes a combination of knowledge, skill and attitude. To begin, you must know the traffic laws and driving practices that help traffic move safely. Breaking these "rules of the road" is the major cause of collisions. Traffic laws are made by federal, provincial and municipal governments, and police from each level can enforce them. If you break a traffic law, you may be fined, sent to jail or lose your driver’s licence.
If you get caught driving while your licence is suspended for a Criminal Code conviction, your vehicle may even be impounded. But you need to do more than just obey the rules. You must care about the safety of others on the road. Everyone is responsible for avoiding collisions. Even if someone else does something wrong, you may be found responsible for a collision if you could have done something to avoid it. Because drivers have to cooperate to keep traffic moving safely, you must also be predictable, doing what other people using the road expect you to do. And you must be courteous.
Courteous driving means giving other drivers space to change lanes, not cutting them off and signalling your turns and lane changes properly. You must be able to see dangerous situations before they happen and to respond quickly and effectively to prevent them. This is called defensive or strategic driving. There are collision avoidance courses available where you can practice these techniques. Defensive driving is based on three ideas: visibility, space and communication.
- Visibility is about seeing and being seen. You should always be aware of traffic in front, behind and beside you. Keep your eyes constantly moving, scanning the road ahead and to the side and checking your mirrors every five seconds or so. The farther ahead you look, the less likely you will be surprised, and you will have time to avoid any hazards. Make sure other drivers can see you by using your signal lights as required.
- Managing the space around your vehicle lets you see and be seen and gives you time and space to avoid a collision. Leave a cushion of space ahead, behind and to both sides. Because the greatest risk of a collision is in front of you, stay well back.
- Communicate with other road users to make sure they see you and know what you are doing. Make eye contact with pedestrians, cyclists and drivers at intersections and signal whenever you want to slow down, stop, turn or change lanes. If you need to get another person’s attention, use your horn.
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A Rose for Emily and the Feather Pillow
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Why i Want to be an Ota
When I was seven my papaw had a stroke. He stayed in the hospital a few weeks and when he came home he had a new bed and bars in the bathroom. Michael started coming to papaw’s not long after that.
It was confusing and difficult to watch Michael help papaw out of bed, or brush his teeth, or tie his shoes. Over time we began to notice improvements. Papaw needed help with his buttons but not his shirt. Michael would make the coffee but papaw could pour it. By the time papaw died he needed much less therapy but we still saw Michael every few weeks.
The patience, compassion and encouragement of one person improved my family’s last years with its patriarch in countless ways. It was this improvement that inspired me to pursue a career as an occupational therapist assistant.
Occupational therapy assistants (OTAs) “provide rehabilitative services to persons with mental, physical, emotional, or developmental impairments”. (Occupational Outlook Handbook)
As an OTA I will be responsible for the “hands-on” portion of a patient’s therapy as well as all documentation on a patient’s progress and changes to therapy that are needed. OTAs guide a patients therapy based on “a treatment plan developed in collaboration with an occupational therapist”. (OOH) Upon graduation from a school accredited by the Accreditation Council for Occupational Therapy Education, a passing grade on a certifying exam is necessary to obtain employment as a Certified Occupational Therapy Assistant (COTA).
Once certified, COTAs face no shortage of employment options. In 2008, OTA was named as one of the fifty fastest-growing recession-proof jobs with an annual percentage growth of over twenty-five percent. Biotech Week). These positions can be held in such places as nursing care facilities, elementary and secondary schools, hospitals, or outpatient care centers.
An OTA can look forward to an average annual salary of over fifty thousand dollars with offices of other health care practitioners offering the highest average salary. The growth of this field is even more advantageous locally, with Ohio having the “highest concentration of workers in this occupation” in the United States.
OOH) Possible local employers include Select Specialty Hospital, a long term acute care hospital, and CareTenders, a member of Almost Family which is a leading provider of home health nursing, rehabilitation and personal care services. An OTA has to have a wide variety of skills at their disposal to handle changing environments and problems that arise in a variety of patient’s therapy. They have to be dependable and honest since they are required to work directly with patients with little to no supervision.
An OTA needs to have a high level of self control and the ability to be flexible considering therapy can be decidedly frustrating for patients who have lost independence and mobility and must now rely on others. (O*NET OnLine) Being a good student is paramount due to an OTA being “expected to continue professional development by participating in continuing education courses and workshops in order to maintain certification”.
(OOH) Lives are changed everyday by occupational therapy assistants. I have the dedication, compassion, and ability to celebrate every miniscule improvement needed to become a successful OTA. This a quickly growing field where I can use the talents I already possess to excel. I can easily recall the differences made in my papaw’s life through occupational therapy and the way every advancement in mobility or independence was as exciting as it would be with a new born.
Michael became as close as family through his work with papaw. I want to touch lives.
I want to make a difference. I want to be an occupational therapy assistant.
Works Cited
- “Occupational Outlook Handbook.
” Bureau of Labor Statistics. Department of Labor, 2010-2011 Edition. N. pag.
Web. 22 Jul 2010.
- “Occupational Therapy Named One of Nations 150 Best Recession-Proof Jobs. ” Biotech Week 5 Nov. 2008: 3963.
- General OneFile. Web.
22 Jul 2010. “Summary Report for: 31-2011. 00 – Occupational Therapist Assistants. ”
- U.
S. Department of Labor, 2008. Web. 22 Jul 2010.
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Name Reflection Essay
First and foremost the name franklyn came from a British origin meaning Freeman. My name was given to me by my dad because he thought it was a very successful name. He gave this name to me because everyone that he has heard off with the name Franklyn has been successful.
To me the name Franklyn means someone with style dignity and class, so basically they like to do things on their own without the consent of anyone. I say this because for me I do not like to copy what other people are doing or listen to authority I just live by my own rules. One of the stories I was told by my dad why he chose the name Franklyn for me is because he knows this guy name Franklyn and he was a very successful guy, his businesses never seemed to be going on the down low and he is always been good to people.
The other story he told me why he gave me this name is because of one of America’s greatest heroes Benjamin Franklin because he was also a very great man and he helps achieve a lot of thing during the American Revolution and he was also one of the men who help to contribute on the Declaration of Independent. The way I feel about my name is quiet sterling because it mean Freeman and I am a person that does not like to listen or live by other people rules, so I believe my name suits me well and I am agreeable with it. The only bad thing about my name is that it not that name that lots of parents usually think about to name their kids, like Josh, Jonny, Bill etc.
In conclusion the other thing I noticed when I tell people my name hey usually think am from some European country or the U. S.
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A Thousand Splendid Suns Essay
If we the United States don’t prevent the wars that we provoke or interfere in and spend the same amount of time, money, and effort we share the guilt for the dead who are actually fighting. In other words if we don’t try to stop a war, we are as guilty of murder as the person who is pulling the trigger. Therefore we the people of the United States should not interfere with the problems of other countries. There are many types of people in our world today who have experienced war and in every way hate the thought of it and those who have not who think that another country joining in to help with their problems might not be such a bad idea, because it would help them possibly better their everyday life.
In A Thousand Splendid Suns Tariq thought of the United States joining the war and said “It may not be such a bad thing. The reason that Tariq might not think that it is a bad idea is that even though he has experienced it first hand he might hope that the United States will help the suffering people of his country. In helping to fight against the Taliban who are causing all the trouble in this country. Although Laila does not view the United States joining in the same way she says “Not so bad? People dying? Women, children, old people? Homes destroyed again.” To Laila it would all be the same because she has seen people die and because of this experiencing such things it has affected her physically and emotionally. Laila would add that war brings death, which would mean that a lot of people would lose their lives in it, the deaths of people would emotionally break down families, which would all lead to being completely miserable and unhappy. Both Laila and Tariq are contradicting views on war would have to do with personal experiences that each individual had so they could say such things about the war in their country. Laila and Tariq are not just the only ones who have experienced war. The reason is that war has happened in many countries whether it be civil or controversial and one specifically that the United States went into to interfere with was the Vietnam War.
The United States entered this war to prevent a communist takeover of South Vietnam. To do such a thing they used a containment policy that used military, economic, and diplomatic strategies so that they could reduce the spread of communism which would in their eyes enhance America’s security and prevent a domino effect of Communism spreading all over. This single war out of many that have happened to have to do with the U. S. was the longest war in American history. This was one of the most unpopular American wars that happened during the twentieth century. This war alone caused nearly 60,000 American deaths alone not including those who were injured. Because of this war today many Americans still ask if it was worth American effort in Vietnam or if it was just a careless mistake, or an actual necessary war to go interfere in just so that the South Vietnamese would be protected from a totalitarian government. Because of wars like these many people are affected and lose family members that should still be alive but are not do to choices that were taken in joining another countries war and helping with their problems. War its self affects many aspects of many peoples every day life’s and with the United States reputation of joining other wars to interfere with their problems has become very common and not only affects civilians personally but economically as well. Today the war in Iraq has a price of $59,202,453,105 cost of the war in Iraq to our community and $22,300,331,143 cost of the war in Pakistan to our community and is still climbing by the day. This very large amount of money shouldn’t even be being wasted because we shouldn’t even be overseas trying to fix other countries' problems.
The main reason that anyone might argue as the reason that soldiers are staying in Iraq when there is no war happening is because of the large abundance of oil that this country has that we the United States can get a hold of for a discount possibly because of helping resolve their problems. Because of being overseas the money spent on keeping military soldiers there is becoming more and more expensive. This leads us to see the total amount of money($81,502,827,471) that wars have cost since 2001. Because of the United States' actions we as a nation are in national debt which is still rising unfortunately especially in the area of war which is also causing many military soldiers to lose their lives because of problems that they shouldn’t have gone into. For this reason, things like economies suffering, people dying, and problems being solved each makes many people have different points of view of wars like the ones that are happening in our world today but one thing that will never change is that people will always die and economies will suffer because of wars ,and if we don’t try to change this then people who make the decisions to go to war will be sending people off to their deaths and will worsen our economy which would then make their own people suffer. Because of things like this a wise man of our countries U. S. Army once said “Wars can be prevented just as surely as they can be provoked…and we who fail to prevent them, must share the guilt for the dead. (Omar N. Bradley, General of the U. S. Army, 1893-1981) which will continue to happen if we do keep on happening if we the United States don’t take into consideration the consequences that come with their actions when interfering in another countries problems.
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