Multilateral Responses to E-Commerce :: essays research papers

The Issues to contents list The advent of the new economy has already produced a sizable body of literature. This paper does not attempt to discuss all the issues involved in the new economy, but aims to extract the implications for the international regulatory framework and to provide guidelines for necessary changes. It will thereby focus on the establishment of standards, on policy co-ordination and on taxation. The new economy is sometimes seen as the herald for a truly borderless world. However, since the internet requires substantial prerequisites concerning technical infrastructure and human capital, some worry that the developing countries will be left behind. The paper addresses this fear of a growing "technological apartheid" between the industrialized and the developing countries and looks at policies to overcome the digital divide. The structure of the paper is as follows: The paper first clarifies the various catchwords of the new economy, examines the rapid growth of e–commerce and looks at the digital divide between countries. It then discusses the necessary modifications for the multilateral framework concerning the establishment of standards, the need as well as the scope for policy coordination, taxation and the overall treatment of e-commerce. Finally, the paper looks at strategies to tackle the digital gap between countries. 1.1 Catchwords and Concepts for the New Economyto contents list Various catchwords have been coined to capture the essence of the economy- wide consequences resulting from an increased use of processed digital information and from the application of the internet for a wide array of services (software programming, webpage maintenance, ticket and hotel reservations, on-line information and support, ordering facilities, publishing, indexing or abstracting etc.) as well as transactions (delivering music, movies, documents, literature or software in digital form).(1) The following catchwords aim at different characteristics of this phenomenon but are frequently used as synonyms: "digital economy", "information economy", "knowledge-based economy", "weightless economy", "virtual economy", "internet economy", "electronic commerce", "e-commerce", "e-conomy", or maybe more capacious "new economy". Some authors have tried to assign distinguishing concepts to this variety. For example, Kling and Lamb (2000) suggest to use the term "information economy" to include all informational goods and services like publishing, research, legal and insurance services, entertaining, and teaching in all of its forms, and the term "digital economy" to address (only) the goods and services whose development, production, sale, or provision is critically dependent upon digital technologies. Furthermore, the term "new economy" is associated for them to possible consequences of the information economy and the digital economy, namely high growth, low inflation, and low unemployment.

Tourism, a factor of sustainable development

All forms of tourism development that are conducive to saving rare and precious resources, in particular water and energy, as well as avoiding so far as possible waste production, should be given priority and encouraged by national, regional and local public authorities; To minimize the use of scarce and non-renewable resources in the development and operation of tourism facilities and services. A sustainable future depends on the careful management of resources to ensure their availability for present and future generations. Resources that are non-renewable, in limited supply, or essential for life support are of particular concern. These include land, fresh water, forests, minerals and fossil fuels. Conservation of energy is important, especially where it is derived from non-renewable resources. Tourism is a signiï ¬ cant user of resources in many areas. Ensuring that it uses resources eï ¬Æ'ciently is important both for the wellbeing of the local environment and host community and in maintaining global resources. Eï ¬Æ'cient use of resources, notably energy derived from fossil fuels, is also important in the reduction of polluting emissions. Resource eï ¬Æ'ciency in tourism will be achieved largely by changing the consumption patterns of tourists and tourism enterprises. Enterprises should be encouraged to establish environmental management systems to minimize impacts and drive a process of continual improvement. To minimize the pollution of air, water and land and the generation of waste by tourism enterprises and visitors. Maintaining environmental purity means reducing waste and harmful emissions to the environment in order to preserve the quality of the air, water and land that sustain life, health and biodiversity. Actions should address all aspects of pollution prevention and control throughout the lifecycle of tourism development, during and after the use of facilities, as well as the impacts of tourists themselves. Although local impacts on the environment, such as local air and water quality, are the most immediately apparent to local communities and to visitors, the tourism industry also has global environmental impacts. Governments need to recognize the responsibilities towards both the global and the local environment that are inherent in maintaining environmental purity. There is a need for a profound change in the way we generate and use energy and in other activities that release greenhouse and other gases into the atmosphere. Global pollution may also impact many local destinations through the consequences of climate change. As with promoting resource eï ¬Æ'ciency, waste and pollution control will be achieved largely by changing the consumption patterns of tourists and tourism enterprises. This should be a key component of individual environmental management systems within enterprises.

Anorexia Nervosa, Case Study - 2389 Words

1. The case study. Christine is a sixteen year old girl who has severely restricted her dietary intake. She is currently forty nine kilograms and height 163cm. Her mother says she was 60kgs six months ago. In form three, at age fifteen, Christine was removed from the public school she was attending and put into a private school, where she was awarded the dux prize. She did not have any friends during this year as she spent all recesses in the library, reporting that ate alone as she ‘had no friends to eat with anyway’. Her mother says that she attends roller skating sessions up to five nights a week and believes she does this to lose weight. She is pre-occupied with food and is constantly cooking for the family. She does not sit down with†¦show more content†¦Downy hair over the body (lanugo), insomnia and early wakening are also characteristic (Wozniak, Rekleite and Roupa, 2012). 3. Key elements to recovery include patient oriented recovery, therapeutic relationships, collaboration. Reduce further deterioration and complications of the illness. The patient is admitted to a psychiatric ward when the risk of death either from suicide or physical effects of starvation is high (ASEN, 2002). During treatment, as a patient’s weight increases, anxiety and depression may return, increasing the risk of suicide (Asen, 2002). A comprehensive psychiatric assessment will be carried out including a mental state exam (MSE) and a risk assessment. Depression is assessed with Hamilton Anxiety and Depression Rating Scale or Beck as depression and anxiety are associated with AN (ANZCPG, 2004). Medication may be prescribed in the form of antidepressants such as fluoxetine; olanzapine decreases hyperactivity of AN and may reduce overvalued ideas about food, shape and weight (ANZCPG, 2004). The nurse will monitor vital signs, weight and other tests including, blood tests for deficiencies such as anaemia, electrolyte balance and cardiac function with ECG (ANZCPG, 2004). In the first stage ofShow MoreRelatedCase Study: April - Anorexia Nervosa3467 Words   |  14 PagesCase Study: April - Anorexia Nervosa XXXX Pennsylvania State University Case Study: April - Anorexia Nervosa Presenting Concerns April was a 17-year-old high school freshman who presented with severe emaciation due to self-starvation and excessive exercise. Despite being severely underweight, April indicated an intense fear of gaining weight. She bragged about how much weight she had recently lost, though she indicated that her butt was still too fat. She also reported that she was constantlyRead More The Prevalence Of Anorexia Nervosa, Bulimia Nervosa, And Binge Eating Disorder1723 Words   |  7 PagesThe Prevalence Of Anorexia Nervosa, Bulimia Nervosa, And Binge Eating Disorder How prevalent is anorexia nervosa, bulimia nervosa, and other eating disorders? Without the knowledge of research, one is likely to think eating disorders are quite prevalent in society today. However, research proves that eating disorders, in general, are not as prevalent as one might think without any knowledge of the subject. Prevalence of an eating disorder refers to the number of cases of an eating disorderRead MoreUnderstanding Anorexia Nervosa1008 Words   |  5 PagesAnorexia nervosa has the highest mortality rate of any psychiatric disorder, with more than 10% of those that suffer from it will die. Anorexia nervosa is an eating disorder that is categorized by severe food restriction, excessive exercise and body dysmorphia, which leads those that suffer from it to believe that they are overweight. Anorexia nervosa is commonly misunderstood by the general public. Research has disproved many of the previous thoughts about anorexia nervosa. According to the scientificRead MoreEating Disorders: Anorexia Nervosa1653 Words   |  7 PagesAnorexia Nervosa Anorexia Nervosa is one of several subtypes descending from feeding and eating disorders. It is a crippling life-threatening condition marked by a patient placing restriction on energy intake relative to needed energy requirements, resulting in a relentless pursuit of low body weight in the context of age, sex, development and physical health. According to American Psychiatric Publishing of diagnostic and statistical manual of mental disorders (DSM-5) â€Å"Anorexia Nervosa, often timesRead More The Effects of Pharmacological Treatment on Anorexia Nervosa1462 Words   |  6 PagesThe Effects of Pharmacological Treatment on Anorexia Nervosa The Characteristics of Anorexia Nervosa Individuals with anorexia nervosa are so successful at losing weight that they put their lives in a great deal of danger. Although dramatic weight loss is the most noticeable feature of the disease, anorexics also have an intense fear of obesity and pursue thinness with unparallelled ambition (Bruch, 1986). Anorexia is most common among females, with only about five percent of those sufferingRead MoreDiagnostic And Statistical Manual Of Mental Disorders1631 Words   |  7 PagesIntroduction The fifth edition of the Diagnostic and statistical manual of mental disorders (2013) or DSM-5 outlines the four feeding and eating disorders as, Anorexia Nervosa, Bulimia Nervosa, Binge-Eating Disorder, and Other Specified Feeding and Eating Disorder (OSFED). These are complex and highly devastating disorders that cause health, emotional, and relationship problems (NEDA, 2016). These conditions should not be taken lightly due to their potential to cause long term emotional and physicalRead MoreEating Disorders : Anorexia Nervosa1493 Words   |  6 Pages408 Hernandez Illness Paper – Anorexia Nervosa February 28, 2016 According to the Mayo Clinic (2016), eating disorders are â€Å"conditions related to persistent eating behaviors that negatively impact your health, your emotions, and your ability to function in important areas of life.† One such eating disorder is anorexia nervosa. Not to be confused with anorexia, which is simply a general loss of appetite that can be attributed to many medical ailments, anorexia nervosa is a serious eating disorderRead MoreAnorexia Nervos Eating Disorders Association1013 Words   |  5 PagesIntroduction Anorexia nervosa is an eating disorder that affects about 0.5 to 1 percent of women in the United States today. (Anorexia Nervosa | National Eating Disorders Association) While, that may not seem like a lot of people are suffering from Anorexia nervosa it has received a significant amount of attention due to the consequences of developing this disorder. For example, it is reported that five to twenty percent of people who have Anorexia Nervosa will eventually succumb to theirRead MoreAnorexia Nervosa As A Pathological Fear Of Gaining Weight1195 Words   |  5 PagesIntroduction Anorexia Nervosa is a type of eating disorder defined as a pathological fear of gaining weight. In its simple term, is self-starvation. There are records that Simone Porta of Genoa, Italy, diagnosed the first medical account of anorexia nervosa in 1500. A hundred years later, in 1689, Sir. Richard Morton, a British physician offered a detailed explanation of the medical illness and reported two adolescent cases (One female and one male). He describes it as wasting away due to emotionalRead MoreEssay on Family Dysfunction and Anorexia: Is there a correlation?1227 Words   |  5 PagesFamily Dysfunction and Anorexia: Is there a correlation? Introduction Each year millions of people in the United States develop serious and often fatal eating disorders. More than ninety percent of those are adolescent and young women. The consequences of eating disorders are often severe--one in ten end in death from either starvation, cardiac arrest, or suicide. Due to the recent awareness of this topic, much time and money has been attributed to eating disorders. Many measures have been

Analysis Of The Text Lady Audley s Secret - 824 Words

Explication Essay In the text â€Å"Lady Audley’s secret (1862)†, written by M. E. Braddon, there are many literary devices that came together to create a unique experience for the reader. The sentences in this text are purposely disconnected into eight lines. When reading a text that has sentences that are connected and flow fluently, it can be heard to determine key ideas. The text breaks up sentences so that key ideas are easily highlighted and specific words are emphasized. Within the eight lines, the author uses a unique sequence of events. The author begins the text by mentioning Talboys, and what he had done to Lady Audley. However, the author refrains from immediately saying who Talboys was in relation to her. Next the author explained,†¦show more content†¦In this line of the text the author also uses the word â€Å"thud†. The word thud is an onomatopoeia, meaning it is spelled the way it sounds as its action is taking place. This enhanced the ability to imagine the sound of the fall. Another instance where imagery is used is when the author uses detailed adjectives to illustrate the size and appearance of the well. Throughout the text the author uses the â€Å"mouth of the well† and the â€Å"cry† of Talboys as defining aspects of his death. Both are presented in multiple places in the text. Braddon used the mouth of the well in the fifth line when Audley initially attacked Talboys and in the eighth line when Talboys was confirmed to be dead. The cry of Talboys was used in the fifth and the seventh lines of the text. Both the mouth of the well and the cry mark the beginning of Talboys attack and the confirmation of his death. The one cry by Talboys also confirmed that his death happened instantly. Characterization plays a major role in the impact of the text. The main character Audley is depicted as an evil woman who killed her first husband without remorse and who threatens her new husband. Audley threatens her husband by explaining to him what she has done to ex-husband, who happened the treated her as he is now treating her. In other words she implied that he can possibly end up like her ex-husband, if he does not change the way he

Essay on The Difficult Lesson of The Enormous Radio

The Difficult Lesson of The Enormous Radio The Enormous Radio by John Cheever begins with Jim and Irene Westcott who are an average American couple with an average American family. Cheever describes them as middle-aged, having two young children, a pleasant home, and a sufficient income. On the surface they seem to have a perfect life, but underneath this is not the case. In the course of the story, Irene’s imperfections are revealed by a hideous radio. The radio was bought to give the Westcott’s listening pleasure, but then they discover it can hear all the neighbors’ conversations. Irene becomes so obsessed with eavesdropping on her neighbors’ conversations, that it blinds her from her own problems. It seems as though†¦show more content†¦In her obsession with the radio she fails to realize how her life was pertinent to the lives of her neighbors. Smith states that Irene becomes so involved in her neighbors’ predicaments, she fails to recognize her own (59). She had deceived herself and everyone else into thinking that life was different from those around her. Not only does she have blindfolds on, but she seeks constant reassurance from Jim that their lives are not like those of her neighbors. After listening to all her neighbors’ problems one day, she cries for Jim’s reassurance that they are happy and content. She tells Jim that, Mrs. Hutchinson’s mother is dying of cancer, and Mr. Hendricks is going to lose his job in April (822). She wants Jim to reassure her that their life is not like their neighbors, so she asks Jim, And we’re not hypercritical or worried about money or dishonest, are we? (823). He lies and says that they are not, but indeed they are. Jim, in fact, worried about money a great deal (823). Jim says, I don’t like to see all of my energies, all of my youth, wasted on fur coats and radios and slipcovers (824). He tells Irene that they need to cut back on their expenses. He tells her that she needs to learn how to manage her money better, but Irene doesn’t seem to care about her husband’s concerns. She even lies to him about paying for her clothing bills, which is ironic since she believes that she and Jim areShow MoreRelatedInfluence Of Mass Media885 Words   |  4 Pageshistorical events. These movies are like history lessons to the audience since they show something we were not able to witness or take part in. Over the years, it has gained the attention of every culture in every part of the world. These days, thanks to Hollywood, it is instrumental in shaping the social culture by transforming the viewers’ opinions or swaying them one way or another. The idea that a film can have such an enormous impact on people can be difficult for some, however, this same impact canRead MoreHow Tiger Woods Affects the Game of Golf985 Words   |  4 Pagesof all time. Due to his incredible playing on the course, his young age, and the endorsement deals he signed with major advertising companies, Tiger Woods fans place him on the best of the best list in professional sports. Society places an enormous amount of responsibilities on its champions or favorites. Sure, he is good on the course, but how well does he support society? What does he stand for, the public says. There is more to Tiger Woods than a good golf swing or how well he canRead More How Tiger Woods Affects the Game of Golf Essay examples966 Words   |  4 Pagesgolfer of all time. Due to his incredible playing on the course, his young age, and the endorsement deals he signed with major advertising companies, Tiger Woods’ fans place him on the â€Å"best of the best† list in professional sports. Society places an enormous amount of responsibilities on its champions or favorites. â€Å" Sure, he is good on the course, but how well does he support society? What does he stand for†, the public says. There is more to Tiger Woods than a good golf swing or how well he can sayRead MoreEssay On Duke Ellington1506 Words   |  7 Pagesnot actually Ellington’s name, but it is only his nickname, which children gave him when he was a little boy for his aristocratic manners and the ability to dress elegant things. When Duke was seven years old, he began his piano training and took lessons from Marietta Clinkscales. (Ruhlmann) Duke Ellington was an American jazz pianist, composer, and orchestra leader. He was more than just a musician, he was an artistic legend of his generation. In the summer of 1914, he wrote his first compositionRead MoreGeorge C. Marshall s Accomplishments1602 Words   |  7 Pagesinsisted, however, that the meetings be held in Paris and that the Soviet Union be invited to participate. ââ€"  The great strength of the Communist Party in France meant that George Bidault had to consider its feelings and this stricture resolved the difficult question, for the Americans, of inviting the USSR / Russia and the eastern European nations under its control to join in the plan. Early advice from Gorge Kennan had convinced George Marshall and President Henry Truman that the Soviets would participateRead MoreThe Kings Speech By Colin Firth1992 Words   |  8 Pagespersonal turbulent anxious battle to overcome his debilitating stammer that had plagued him for all of his adult life. As part of his duty as King, George VI would need to address the public with speeches in person and via radio, something that he found excruciatingly difficult and crippling to do due to his stammer. 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Red Bull Report free essay sample

Red Bull is one of the most famous brands in the drink industry. With an innovative product Red Bull was able to sell millions and millions of cans and to draw profits of dizzy amount. But as often it is not only the product which determinates the success or failure of a company. And of this Red Bull is a very good example. Although nowadays Red Bull has to compete with the biggest drink companies in the world (Coca Cola, PepsiCo), it detains in its segment almost everywhere more than 50% market share. It is true that Red Bull was the first large and international energy drink producer, but for their leadership they did and still do a lot of accurate marketing actions in order to preserve and improve their awareness and image and as consequences their position. Like mentioned the marketing actions of Red Bull were very accurate and coherent themselves. Dietrich Mateschitz, the founder of Red Bull, was spending about two years to create the product and their packaging. He conceived an advertising strategy with basically two slogans (â€Å"Red Bull gives you wings† and â€Å"Red Bull revitalizes body and mind†), which are still in the Red Bull ads nowadays. The message of the ads is always the benefit of the product. This red line has been seen from the beginning until today. Red Bull focused a lot of the functional side of the drink. Also because of that Red Bull is practicing a premium price, they argue that it is easier to believe in an efficiency of a product if it is more expensive than their competitors. A lot of marketing actions of Red Bull wants to show people the different use opportunities of their drink. It should not be only a mixer or a clubbing drink. Therefore Red Bull defined 5 potential users: students, drivers, clubbers, business people and sports people. Red bull was able to get in some way mystic. But why? First of all the category of drink (energy drink) was completely new. Then Red Bull has a clever distribution and a new-market-enter concept. First they are available in â€Å"in† bars, discotheques and stores. They sponsored peers to take Red Bull in the public (confiding in the word-of-mouth) and only in a successive moment Red Bull is available in the discount stores, when a lot of people already know it. They call this concept â€Å"seeding program†, that were able to create a wave of buzz around the drink before and the first time of its apparition. Also the only available packaging (cans of 250 ml without reducing the price if taken in great quantity) contributes to the mystification and success of Red Bull. Red Bull is very active in the event and sponsor marketing, taking a lot of attention if this kind of event or sport (sport sman) fits well together with the message of Red Bull as an energetic drink. So the sports are often extreme sports or related to speed (see Formula 1). All this things were contributing and still contribute to the brand equity. The company has always take care a very lot of their image and awareness. So Red Bull is an example of a good, successful and advised marketing. Do these sources change depending on the market or country? The Red Bull global marketing strategy is to use similar techniques everywhere, without differentiating the product or the brand characteristics depending of different countries or different markets. The Red Bull now-famous package is similar everywhere, characterized by the blue and silver small can (250 ml), which allows the company to give a different idea of drink to consumers. In fact this small can signal that the product is different and stronger than traditional soft drinks. The demonstration of the power and success of this can comes from the Red Bull attempt to commercialize a different package for its product. The company developed a glass brown bottle that had to be sold in places where cans were not allowed; it was introduced in Germany when Red Bull was launched in this country, and the quick demand of the product outpaced supply, so the company was forced to sell glass bottles. As soon as glass brown bottles were commercialized, sales fell off. Dietrich Mateschitz, the company founder, wants Red Bull to be drunk by everyone and everywhere; he wants consumers to drink it whenever they need a lift, whether it is morning, noon or night. This is another point of strength of Red Bull marketing strategy, because the company doesn’t define a specific demographic or psychographic segment as its target market. Red Bull doesn’t want to focus on a narrow consumer target, and this ensured to the company to be able to grow into numerous market segments. Moreover Red Bull’s advertising doesn’t specify any consumption occasions, which further facilitated an elastic positioning. In fact, at the beginning, Red Bull consumers in Austria were dancers, clubbers and ravers who used the drink to stay fresh during late-night parties. This was a very good publicity for the company, because this party-association created a significant buzz around the drink. Red Bull was used primarily as a mixer, a strategy allowed from the company useful to make Red Bull to be present in every kind of place and to be drunk in a lot of contests; in fact Norbert Kraihamer, Red Bull’s Group Marketing and Sales Director, said â€Å"We are not against mixing, but over time we must make sure that the product is regarded as much more than a mixer†. The Red Bull intention has always been to communicate to everyone and in every country same concepts, and to do it the company used animated television spots adopted uniformly across the company’s global market. Said Kraihamer: â€Å"Even in a country where they speak a different language, we send the same message using the cartoon†¦. The power of our marketing mix works†. The mot â€Å"Red Bull gives you wiiings† became a well-known sentence in all over the countries where the drink was sold. Usually the company used a â€Å"pre-marketing† strategy to establish awareness in markets where the product were not yet sold. It consisted in sponsoring events that took place in countries where Red Bull was not available, because like Kraihamer said â€Å" we want to be recognized as the pre-eminent brand, even if we are not there†. Only once Red Bull tried to go over his traditional marketing entry strategy and it was a big mistake. It happened when they were introducing the product into the United Kingdom in 1995. In fact, marketing managers wanted to change the idea of â€Å"stimulating† drink in that one of â€Å"energy† drink. It was a failure. In England consumers were very familiar with sport drinks category, dominated from decades by another brand, Lucozade. Management also changed the word-of-mouth strategy which characterized the awareness of the product until then. All preliminary steps were skipped and Red Bull started to be sold in the largest supermarkets and convenience stores, delaying every kind of buzz that has always been the strength of the brand. The last mistake in which UK management incurred was to introduce a new advertising concept; instead of the usual slogan they used a new one: â€Å"Never underestimate what Red Bull can do for you†, which not really clarify what was the company positioning. What is more, they focused advertising efforts on billboards that were not as effective in communicating product’s benefits as electronic media. After necessary changes, between 1997 and 2001 Red Bull was able to gain the 48% of the energy and sports drink market. Another different, but successful marketing entry strategy was applied during the introdu ction of Red Bull into the US market in 1997. The company used the so-called â€Å"cell† approach, consisting in dividing key markets in the country into targeted geographic segments, rather than attempt a nationwide launch. Even if the entry strategy was different from the usual one, Red Bull didn’t change the sources of brand equity that have always dictated the success of the company by giving to all consumers the same idea of what Red Bull drink was, and which were its benefits like functional product. Red Bull’s Marketing Program Analysis in terms of how it contributes to its brand’s equity. When a new product is launched on a market, first thing to do is to choose brand elem ents, identify points of difference and points of parity. Unless we do that, we can’t start thinking about marketing activities and so on. The reason is very simple. Everything must fit each other. The message that we are sending through our marketing program must reflect the desired perception of our product that we want to fix in consumers’ minds. The truth is that marketing communication is the main source of consumer’s knowledge about the product. There can’t be any misunderstandings or contradictions between this and the brand image. In our opinion, in case of Red Bull’s marketing program, everything was carefully planned. It contributed to build strong brand equity. Everything was important: pre-marketing, sponsorship and way of advertising. First of all, they managed to build one scheme of introducing their energy drink, which they copied in each country. It is how they made the product recognizable in every country in the same way with the same associations across the cultures. It also allowed lowering the costs of expanding, because the product did not need additional adaptation to another country. A very important point of their strategy was to make a buzz over the Red Bull energy drink before launching on a new market. People were talking about this drink, wondering what it is exactly, an atmosphere of excitement was created. This marketing trick was increasing brand’s equity. Firstly, the brand was known before entering the market. Secondly consumers were aware of its benefits and unusual ingredient which was kind of mystery. Of course sometimes the rumors were negative, but still everybody was just waiting to try â€Å"this new thing†. Word-of-mouth communication was the key of their marketing program. Slightly controlled, by for example placing empty cans in clubs and pubs to build an illusion of popularity, it helped to build brand equity based on consumers’ own impressions. As they said: â€Å"we do not market the product, we let the consumer discover it†. Thanks to that, Red Bull users are more convinced of the effect that the drink brings, as it seems to come from them-selves and from peers, not â€Å"from the TV screen†. That kind of media is maybe the oldest one, but the most efficient. It does not mean that they completely resigned from advertisements. In fact, TV commercials are still one of the most efficient ways of influencing consumers as they can reach the biggest spectrum of them and they allows for sight, motion and sound and so they stimulate many human senses. Of course Red Bull had some TV spots, but very simple one. A cartoon always based on the same scenario two people, one advising to another lacking the energy to drink Red Bull and the line: â€Å"Red Bull gives you wiiiings†. It could fit consumer of every age. It allowed the brand not to be classified for only one target group. Although these are young people of 14-19 years old, who are the biggest group of buyers, this openness for people of every age brought by marketing program is the point of difference. Other products of the same category are focusing on specific target group or specific occasion of usage. Red Bull case is different. They wanted to make a product for every occasion. And so advertisements where never specifying the proper time of drinking. They were emphasizing the purpose of using – whenever people are mentally or physically fatigue – these were the only two dimensions characterizing a Red Bull consumer. Thanks to that brand equity increased as it better cover the market. Sampling was a crucial part of the Red Bull marketing program. Energetic people conv incing others to try and drink Red Bull at the right time and at the right place – every aspect of a product trial was carefully planned. Thanks to that brand’s equity increases, because people can try the product just â€Å"in time† to see how it works, to feel benefits and so to spread the good word further to friends. The most important thing that contributed the brand equity was their approach to sponsor sport events. By sponsoring individual athletes or international competitions and events, they were showing brand’s involvement in viewer’s country. This pre-marketing strategy helped to establish awareness of the product and good associations with the brand before entering the market. The whole Red Bull marketing program was well-considered. Marketers have chosen various communication options, which shared common meaning but simultaneously were complementary, to build strong and unique brand equity. They did just one mistake during launching the product on the UK market as they thought it differ from another. Fortunately, they realized their mistake very quickly and they took necessary steps to fix the situation. Future Scenarios for Red Bull How to maintain its momentum? How to develop its extension? What would its marketing strategy be? Red Bull, in spite of its premium marketing strategy, will figure lots of new challenges in the future. Even if there have been some mistakes in the direction’s choices, as the launch in the UK or the attempt to commercialize the tea â€Å"Carpe diem†, it’s clear that they have invented not only a new category of food: â€Å"Functional†, but also a very good way to enter in people’s mind, focusing on each costumer. However, there is a question: how to keep this little empire on the top? Now, more than ever, it is important to focus on its core product, as had happened in the first years. The reason for this is simple: too many big competitors on the market as well as small ones. Consequently to this situation, Red Bull has lost a big market share due to others brands attempting to copy Red bull’s marketing strategies to enter the various segments. Another problem is the major cost they have to support for the different advertising campaigns: more than the 30% of the revenues, in spite of the big competitors like Coca Cola and Pepsi that just spend 9% of them. This is a necessary cost, if Red Bull wants to remain a top brand in its sector. Anyway, as we could see from the results, all attempts to launch new products or to try common marketing strategies have failed or didn’t have much success. A good example of that are the â€Å"Carpe diem† tea and eventually the fast-food chain with the homonymous name. The costumers’ awareness has been build trough the years focusing on every â€Å"cell† they got in; now that all this work has been done, they can’t just adopt big brands strategies. They have to continue to keep the image in people’s mind, the one of their first and so innovative product. In these last years, we’ve seen the scarce answer that the market has given to product as â€Å"Red Bull Light† and above all the â€Å"Red Bull Cola†. This last one, even if it has been presented trough the usual channel used by Red Bull, like the â€Å"Red Bull Teams† out of Universities and Colleges, it had no success. It has been for sure a too big challenge for them. They moved too much from their border this time; it is the reason why in many European Countries the product has not even been launched. It means they’re very scared of the present situation since the big competitors are taking more and more shares of Red Bull’s market. If they want to try to move in new sectors or to create a new product for different segments, they should create other brands. In the present situation they’re giving an image of dispersion, just losing more space without any profit. On the other hand, the evolution of its marketing strategy being a sponsor of extreme and high-speed sports and also the decision to buy a soccer team and to create a F1 team, makes us understand that its basic values are still the same. We can see how it sponsors athletes, who are the best in their ranges, even if their sports are still not so famous, or are not given any particular recognition to. Thanks to that, in the future, Red Bull will have best champions in new, very fashion and extreme sports. To be remembered, the Red Bull project to develop an air team; this requires a lot of money, but gives an enormo us payback in awareness and image. The brand is also very good in creating new events and contests, so to give them a very personal mark. These are the best occasions to strengthen again the relations with its core classes of costumers, like sportsmen and clubbers. At the end, we can say that Red Bull is still doing a really good job thanks to its creativity and fantasy, but it should take care not to get confused and disoriented because of many competitors trying to take its place. Stay focus and remember not to mix new and old challenges. That is the only way to get into the worldwide trade and extension.

Describing Gearing and Its Importance in Capital Structure of a Company Essay Example

Describing Gearing and Its Importance in Capital Structure of a Company Essay A company with low gearing is one that is mainly being funded or financed by share capital (equity) and reserves, whilst the one with a high gearing is mainly funded by loan capital. Now the question to address is which of the two (equity and debt) is cheaper to the company? The answer is that cost of debt is cheaper than cost of equity. This is because debt is less risky than equity and the tax advantage of debt over equity as discussed below: Risk: debt is less risky than equity because: the required return needed to compensate the debt investors is less than the required return needed to compensate the equity investors; †¢the payment of interest is often a fixed amount and compulsory in nature and it is paid in priority to the payment of dividends; †¢in the event of a liquidation, debt holders would receive their capital repayment before shareholders as they are higher in the creditor hierarchy (the order in which creditors get repaid), as shareholders are paid out last. Corporate tax advantage: in the income statement, interest (on debt) is subtracted before the tax is calculated; thus, companies get tax relief on interest. However, dividends (on equity) are subtracted after the tax is calculated; therefore, companies do not get any tax relief on dividends. From the above discussion, we can observe that debt is cheaper than equity when financing a company. However, there are implications of pursing high gearing rather than low gearing. Watzon and Head (2007) described the following as implications of high gearing: Increased volatility of equity returns: the higher a company’s level of gearing, the more sensitive its profitability and earnings are to changes in interest rates. The company’s profit and distributable earnings will be at risk from increases in the interest rate. This risk will be borne by shareholders as the company may have to reduce dividend payments in order to meet its interest payment as they fall due. This kind of risk is referred to as financial risk. The more debt the company has in its capital structure, the higher will be its financial risk. Increased possibility of bankruptcy: at very high levels of gearing, shareholders will start to face bankruptcy risk. We will write a custom essay sample on Describing Gearing and Its Importance in Capital Structure of a Company specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Describing Gearing and Its Importance in Capital Structure of a Company specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Describing Gearing and Its Importance in Capital Structure of a Company specifically for you FOR ONLY $16.38 $13.9/page Hire Writer This is defined as the risk of a company failing to meet its interest payments commitment and hence putting the company into liquidation. This is because interest payment may become unsustainable if profits decrease or interest payments on variable rate debt increase. Reduced credibility on the stock exchange: at a very high level of gearing, investors will be reluctant to buy the company’s shares or to offer further debt. The encouragement of short-termist behaviour: in order to prevent bankruptcy, managers may focus on the short-term need to meet interest payment rather than long term objective of wealth maximisation. Effects of capital gearing upon WACC, company value and shareholder wealth The capital structure of a company refers to the mixture of equity and debt finance used by the company to finance its assets. Some companies could be all-equity-financed and have no debt at all, whilst others could have low levels of equity and high levels of debt. The decision on what mixture of equity and debt capital to have is called the financing decision. The financing decision has a direct effect on the weighted average cost of capital (WACC). The weighted-average cost of capital (WACC) represents the overall cost of capital for a company, incorporating the costs of equity, debt and preference share capital, weighted according to the proportion of each source of finance within the business (Cornelius, 2002). The weightings are in proportion to the market values of equity and debt; therefore, as the proportions of equity and debt vary so will the WACC. Therefore the first major point to understand is that, as a company changes its capital structure (i. . varies the mixture of equity and debt finance), it will automatically result in a change in its WACC. It is important to note that the financing decision (i. e. altering the capital structure) affects the overall objective of maximizing shareholder wealth. This is based on the ground that wealth is the present value of future cash flows discounted at the investor’s required return. The market value of a company is equal to the present value of its future cash flows d iscounted by its WACC. It is fundamental to note that the lower the WACC, the higher the market value of the company, and vice versa. Therefore, a change in the capital structure to lower the WACC can then increase the market value of the company and thus increase shareholder wealth. As a result, the search for optimal capital structure becomes the search for the lowest WACC, because when the WACC is minimized, the value of the company and shareholder wealth is maximized. Hence, it is the responsibility of finance managers to find the optimal capital structure that will result in the lowest WACC.