Animal Testing Essays (645 words) - Animal Testing, Animal Rights

Animal Testing Animal Testing ?Beauty without cruelty? is the outcry that can be heard from animal right activists around the world. The FDA does not require companies to perform tests on animals but if the cosmetic product contains chemicals that can be seen as toxins, testing becomes a necessity. There are currently thirteen safety tests that are performed on animals. Anti-testing activists deem these unnecessary and consider them to be cruel. ?Fourteen million animals are used currently in the U.S. to test toxicity and irritancy of cosmetics and household products? (Hannah). Many new forms of safety tests are being developed by companies to save money along with the lives of innocent animals. There are three common safety test that are in use and considered to be the most controversial. Among these are the Draize, LD50, and the skin irritancy test. The Draize test is a test of how a chemical effects irritation in the eye. This test is performed on rabbits who under controlled supervision have a chemical force into one of their eyes. The eyelid is then held shut to prevent the chemical from being flushed out. For the next couple of weeks the rabbits are tested for blindness and other damages that result. Besides being abusive, the test is imprecise given the fact that a rabbit eye is unlike the human eye in physical makeup. A rabbit eye lacks tear ducts to flush out foreign objects unlike humans who can produce tears to protect the eye. The cornea in a rabbit eye is also much thinner and sensitive than a humans. The LD50 is short for ?lethal dose in 50 percent?. In this test the chemical being tested if force fed to rats or mice in small amounts until the dosage is in excess. This is continued until at least 50% of the test subjects die. Although the test rodent may not die right away, it may experience seizures and internal damage. This test is considered to be the most cruel of the tests and can only determine how much of a chemical substance is needed to kill a small animal not a human being. In the skin irritancy test the chemical is applied directly onto the shaved skin of a animal. The skin is then monitored for irritation. This test is also inconclusive in the skin makeup of an animal differs greatly from that of a human. The amount of absorption between the two different skin types will have an influence on how the chemical will react once it comes in contact with human skin tissue. Many companies such as Avon, Revlon, and Estee Lauder have completely stopped the use of animals in testing their products. Over 250 companies are also following in their footsteps and seeking new methods to generate the same effect. One company has gone as far as performing tests on nuns who have sympathized with those against animal testing. ?None of the nuns died.? ?For the first time in their lives, the nuns wore lipstick.? (Penders2) Using computer generated models is one example where researchers can predict the how the skin will respond to the chemicals using cloned human tissue cells. The use of egg membrane has also replaced the Draize test. The membrane is removed from fresh eggs and then exposed to a small amount of a chemical. Researchers can then observe the reaction by noticing the breakdown of blood vessels within the membrane. Although these methods are not considered to be as good as testing on actual living animals they have greatly reduced the number of animals being killed in the name of science. They have provided the consumer with a product they can be assured has not been tested on animals. On the plus side animal testing has reduced and eliminated the use of dangerous toxins from cosmetics. The fight to completely end the use of animal testing has not ended for animal activists. Until definite methods can be developed to accurately test chemicals, many companies will refuse to abandon their traditional forms of testing. Animal Science

From Cells to Systems Essay

From Cells to Systems Essay From Cells to Systems Essay CHAPTER 2: From Cells to Systems Important topics in cell biology: * Cell theory: 1. All organisms are composed of cells and cell products 2. The cell is the simplest structural and functional form of life 3. An organism’s structure and all of its functions are ultimately due to the activities of cells 4. All cells arise from pre-existing cells 5. All cells share fundamental similarities and metabolic mechanisms * Cell structure: * About 210 different cell types in the human body, including: squamous, polygonal, cuboidal, columnar, spheroid, discoid, stellate, fusiform, fibrous * Fluid-mosaic model of the plasma membrane because the double phospholipid membrane is more liquid than solid * Microvilli- tiny folds of the plasma membrane found on the apical surface of the cells that line the small intestine, and in some other parts of the body. Increase the SA of the cell, enabling a rapid rate of transport of nutrient molecules into the cell * Cilia- tiny hairlike structures that protrude from the plasma membr ane into the ECF. Motile cilia are found in places like the respiratory tract uterine tubes where they move substances past the tissue (â€Å"9+2† arrangement of microtubules) * Flagella- found only on sperm cells, it is a single, whiplike structure that propels the sperm through its environment (also has the â€Å"9+2†Ã¢â‚¬ ¦) * Functions of specific organelles * The cytoskeleton: a latticework of protein microfilaments and microtubules that function as the skeleton of the cell. Makes parts of the cell rigid, serves as a transport system within the cell, can produce cell movement * Mitochondrion: the sites for most of the energy production within a cell. * Contain their own DNA * All mitochondria come from the mother’s egg cell * Endoplasmic reticulum (ER): Two types 1. Rough ER: contain ribosomes (â€Å"protein factories†) that read mRNA codes then sends vesicles containing the newly made protein to the Golgi complex†¦ 2. Smooth ER: synthe sizes other materials, detoxification, Ca2+ storage. (no ribosomes, no protein synthesis) * Golgi complex: a network of stacked, flattened membranous sacs withing the cytoplasm of cells. * Takes vesicles containing protein from the rough ER and continue synthesis * Sends finished products out as: * Lysosomes which stay in the cell or as * Secretory vesicles that take proteins out of the cell * Nucleus: contains all the instructions for protein synthesis in the form of DNA. * DNA consists of nucleotides which form 2 strands connected together by H-bonds. The sequence of nucleotides gives us our genetic information * Chromatin is the long and threadlike form of DNA and protein that serves as the functioning genetic material within the nuclei of nondividing cells * Chromatin is spooled onto proteins to form nucleosome particles which condense into a more compacted form identified as: * Chromosomes are compacted chromatin visible through a microscope that contain regulatory prote ins as well as DNA * Membrane transport* * Energy transduction* * Cell-cell signaling* * Cell cycle and its regulation 3 Types of RNA: 1. Messenger RNA (mRNA): a complementary copy of a gene that codes for the structure of a protein 2. Transfer RNA (tRNA): contains 3 nucleotides at one end which match up with a codon of mRNA (anticodon) and an AA on the other end. Transfers AAs to the messenger RNA, translating the nucleotide base into an AA sequence 3. Ribosomal RNA (rRNA): make up part of the structure of ribosomes Making Proteins (Transcription and Translation): DNA acts as a template for the synthesis of RNA: * A gene is a region of DNA that codes for a polypeptide chain * Transcription: The process by which mRNA is

Consumer behavior about target-based internet market in China Dissertation

Consumer behavior about target-based internet market in China - Dissertation Example eople’s Republic of China Theoretical Background 11 Chapter Three: Methodology†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 31 Chapter Four: Results and Discussions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 48 Chapter Five: Conclusions and Recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 72 References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 79 Appendices†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 85 Abstract This research focuses on the determination of the behavi ors of consumers to target-based internet markets. The researcher focuses on the use of the said target-based internet markets as well as the perceptions of the consumers in the People’s Republic of China. In order to determine the same, this study used a purposive sample of 142 consumers. In ascertaining the perceptions of the China-based customers with respect to target based internet marketing, the results pointed out that this type of marketing has been preferred by the respondents because of the following factors: (1) its capacity to ensure that the online activities of the users and the consumers do not suffer from intrusion; (2) it has the capacity to appeal to the senses in a more effective manner; (3) marketers may customize the advertisements depending on the needs of the target population; (4) marketers may control the amount of junk mail associated thereto; and lastly, the efficient use of models. Unfortunately, the responses of the participants revealed mere neut rality with respect to the issue of privacy. This, however, means that the marketers must effectively address the issue of privacy in order to ensure that they properly influence the behavior of the consumers. Nevertheless, the overall preference for the marketing approach and behavioural intentions related to the approach has been rated positively signifying that indeed, the Chinese customers have high regard for target-based internet marketing. Moreover, the study found that target-based internet marketing has been merely confined as regards the factor that influence it, traditional marketing has been approved of only in terms of use of models. The rest of the factors were assessed neutrally. Finally, the independent variables that were found to positively and significantly predict behavioural intentions are customization and use of models. Recommendations for the improvement of target-based marketing are put forth. Chapter 1: Introduction Background of the Study The twenty-first century noticed a remarkable increase in terms of the usage of the internet. Undoubtedly, the increase in its usage has tremendously affected society (Kuratko and Hodgetts 2008). For instance, traditional societies who once gave paramount importance to the knowledge of their revered and respected elders do not rely on the as tons of information has been available online. In fact, the influence of the internet has even caused breakdowns within their societies (Charlesworth 2009; Lee 2001; Roldan 2001). Aside from this, the increase in the usage of the internet has likewise affected the commercial latter organisations and their businesses. Literature written with respect to the topic at hand clearly shows that the businesses’ use of the internet

Banking Regulation and Risks Coursework Example | Topics and Well Written Essays - 750 words

Banking Regulation and Risks - Coursework Example One of the reasons for increased leverage generating value for banks is that increased leverage increases the savings from cost of capital obtained from debt funds due to the tax code and subsidized government guarantees. ROE= Net Income/Shareholders Equity ROE can be decomposed to classify the financial drivers of value creation in a company. This is known as DuPont analysis. ROE= Return on assets*leverage Or, ROE= (Net Income/assets)*(assets/shareholders equity) Or, ROE= (Net Income/Revenue)*(Revenue/assets)*(Assets/Shareholders’ Equity) Or, ROE= Net Profit Margin*Asset Turnover*Leverage Thus the three components of ROE is net profit margin, asset turnover ratio and gearing ratio or leverage. The profit margin states the amount of profit made by a bank from its operations. The asset turnover ratio states that how efficient a bank is in using the assets it owns and determines the revenue generated by the bank from its assets. Asset turnover ratio has an inverse relationship w ith net profit margin. The gearing ratio measures the financial leverage and states that how the bank finances the assets it holds, i.e. the amount of assets per pound of shareholders’ equity investment in the bank. Assets are financed by shareholders’ equity and by creditors, and a higher ratio indicates that the bank is getting more finance from the creditors. Thus greater gearing ratio leads to rise in ROE. Illustration: Consider the following data- Revenue= ?29,261millions Net Income= ?4,212millions Assets= ?27,987millions Shareholders’ Equity= ?13,572millions Net profit margin= Net Income/Revenue= ?4,212millions/?29,261millions= 0.1439=14.39% Asset Turnover= Revenue/Assets= ?29,261millions/?27,987millions=1.0455 Leverage=Assets/Shareholders’ equity= ?27,987millions/?13,572millions= 2.0621 ROE= 0.1439*1.0455*2.0621= 0.3102 = 31.02% ROE of 31.02% to a bank is a good indicator of growth. Still, if a bank decides to not to take leverage so as to become d ebt-free, then the ROE drop to 15.04%. Even if a bank decides to assume less leverage than the current, ROE will decrease. Thus, from the above illustration it can be said that ROE can be improved through leverage, i.e. leverage is important for the rise and improvement of ROE. Answer 2. Northern Rock, the UK Bank was the most high-profile casualty of the credit crisis of 2007, as in September 2007 the bank suffered run from its depositors. Northern Rock Building Society, a British Bank was formed in 1997 when the society floated on the London Stock Exchange. The bank specialized in mortgage business, and 90% of the assets of the bank were residential mortgages. Rise in growth, profitability and market value was noticed in the bank’s performance since 2001. The shareholders of the bank were benefitted and the management informed that the business model of the bank was effective in bringing about cost control, high quality asset growth, and competitive products with innovative products and transparency. The following graph summarizes the key growth rates for the years 2001-2006. Source: suerf.org, 2009. The huge gap between risk-weighted assets and total assets made by the extensive regulatory arbitrage raised questions in respect to the quality of assets held by the bank. Due to the aggressive policy of Northern Rock, the bank ended up with a leverage to be the highest in the European sector but the capital that was to serve as a cushion against

Three Branches Of Government Essay Example | Topics and Well Written Essays - 500 words

Three Branches Of Government - Essay Example The leaders are elected by the parties in both the Senate and the house of the representatives. The leader of the party controlling the house is called a majority leader while minority leader is the leader of the minority group. The executive branch makes official laws and is headed by the president who is elected for a term of four years by the entire nation. The laws passed by the legislative branch have to be approved and carried out by the president. The vice-president and other cabinet members are also a part of this branch. Other duties of the president include appointing or removing cabinet members, negotiating treaties as well as acting as the commander-in-chief and the head of state. The cabinet also gives advice to the president on important issues and is made up of heads of 15 major departments of the government such as the secretary of labor, education, defense, state etc. (Three branches of government, Web). The third branch of the government is the judicial branch which is responsible for administrating the court system of the country. The head of the judicial branch is the Supreme Court which is responsible for explaining the constitution and the laws passed by the Congress. The Supreme Court is made of one chief justice, eight associate judges and nine justices. The nominations of the judges are made by the president but have to be approved by the Senate. Decisions made by the Supreme Court are final and no one can deny these decisions. (Three branches of government, Web).

Consent And Informed Consent Nursing Essay

Consent And Informed Consent Nursing Essay The Mosby pocket Dictionary of Medicine, Nursing and Health Profession defines consent as, permission given by an individual acknowledged as legally competent. Informed consent is a requirement necessary prior to any invasive procedure to be performed. Simpson (2011) highlights consent is permission given by the client for a procedure to be implemented. While, Wilhite (2010) explains that informed consent is a process where clients are informed of the risk, benefits and alternative treatment empowering client to play a part to make informed and autonomous decisions proceed for the treatment. As demonstrated by Hall et al. (2012) informed consent encompasses and intersect three different concepts; ethical, legal and administrative factors. Ethically, it safeguards and supports the autonomous decisions made by the client. Hereby, Bosek and Savage (2007) and Rumbold (2002) cites Gillon (1986) defined autonomy as a major ethical principle based on respect for an individual who is capable to think and decide independently for informed choices. Legally, it acts as defence against assault or battery as also supported by Staunton Chiarella (2008). Lastly, administrative purpose ensures that ethical and legal aspects of informed consent are implemented and appropriately documented. In the writers opinion, most sourced definition and concepts are consistent and capture the overall essence of informed consent. However, the definition of informed consent from Mosby pocket Dictionary of Medicine, Nursing and Health Profession lacks the knowledge of information giving and only pointed to invasive procedures. As much as possible, informed consent in nursing procedures should also be included. Consent differs from informed consent. Consent is the act of asking approval to proceed onto a procedure. Conversely, informed consent is a process in which all information relayed is understood by the receiver and decides independently. The act of securing an informed consent is to protect clients rights which resemble the ethical principle of autonomy and avoid any legal ramification to the nurse (Wilhite, 2010). As practicing nurses, we should act as advocates, and build rapport with our client to facilitate the process of obtaining informed consent; Tschudin (2002) affirms that it is also a caring act that involves connecting one another. The next few paragraphs, the professional, ethical and legal drivers will be identified and explained. Professional drivers for nurses are indicated in the professional code of ethics and conduct. It serves as platform for self-regulation, a professional responsibility to ensure that the right and quality duty of care is carried out (Bandman and Bandman, 1995). This corresponds with the ethical theory of Deontology, Thompson et al. (2006) refers Deontology as actions that is based on duties, principles and duties. His view is further reinforced by Bosek and Savage (2007), which emphasise that ones moral duties and responsibilities act is consistent with the right actions. In the Singapore Context, the Singapore Nursing Board (SNB) Code and Ethics and Professional Conduct (1999) value statement 2 states Nurses shall respect the clients right for self-determination and provide them with whatever information they require to make informed decisions concerning their own care. It accentuates ethical principle of upholding autonomy of the client when nurses are securing informed consent. Staunton Chiarella (2008) adds that when a client is asked to give consent to treatment, the nurse is compelled to provide sufficient information. In value statement 2.4, it says nurses should obtain consent for nursing intervention where necessary and collaborate with other members of the health care team to obtain consent for medical treatment. When client are incapable to make informed choices, consent should be sought from family members or significant others. The holistic process of securing an informed consent is encouraged and to be obtained from relatives if otherwise. However, McHale (2009) argues if an adult client ability to decide is deficit or without any represented decision maker; that is appointed by the court or client himself, treatment can proceed in the client best interest and minimise harm caused. This resembles the ethical principles of beneficence and non-maleficence. Beauchamp and Childress (2009) refer beneficence and non-maleficence as acting for the benefit of others following a moral duty and the act of not causing any form of harm. In the context of United Kingdom (UK), the Nursing and Midwifery Council (NMC) Standards of Conduct, Performance and ethics for nurses; Regulation in Practice (2012) declares the regulation of consent taking comprises various aspects of situations, issues and policies. Situational events such as emergencies, issues concern with refusal of consent by competent or incompetent client and minors under age of 16. Lastly, policies of the Mental Health Act, Mental Capacity Act (2005) are incorporated. It embodies the ideal guidelines and procedures of obtaining informed consent. The writer infers SNB say on informed consent taking as ambiguously written, In terms of the choice of words used such as whatever information and where necessary. The writer argues against that whatever information may be misleading on how adequate is whatever information to be disclosed and where necessary is to abide by the convenience of the nurse or clients rights. Conversely, the writer remarks that NMC consent taking procedures are specifically and descriptively written in every section on the regulation. It is used to assist healthcare professional when faced with any moral dilemma or uncertainty. Both professional code of ethics and conduct stresses on the ethical principle of safeguarding autonomy of the clients and protects the nurse against liability of torts. Legal drawbacks related to failure to obtain informed consent may be imposed to the healthcare professionals and face the following claims; battery and/or assault and false imprisonment (Staunton Chiarella, 2008). Fleming (1998) as cited by Aveyard (2002) defines battery and assault as deliberately touching, inducing harm, injury or offensive contact to a client without clients consent. False imprisonment is defined as individual is physically detained from leaving the place (Kelly, 2011). Following a given example, battery may be claimed towards Nurse Jane when she performed a sponge bath intentionally, when the competent conscious adult client who is on complete rest in bed order has refused it. Ethically, Nurse Jane has applied the principles of beneficence, that it is her client best interest that she feels clean fresh after sponge bathing. However, clients autonomy was tempered by not allowing her time to decide and Nurse Jane forced a treatment in contradiction of clients will. Thus, contributing to the liability for tort of battery. In this instance, Nurse Jane has also committed a Paternalistic act. Rumbold (2002) outlines Paternalism as the decisions and preferences of the client are ignored and clinicians act on behalf of the client. The autonomy and beneficent act may conflict and risk becoming a paternalistic act. To prevent paternalism, several writers, (Simpson 2011; Slowther 2007; Aveyard 2002) implies that healthcare professionals should respect clients autonomous rights when treatment is refused even so, if it leads to death. As a practicing nurse, Jane should adopt the caring act and gradually give details about the nature of the intentional procedure. Allowing the client time to decide and promote autonomy. The tort of false imprisonment can be liable to the nurse when a competent client is not committing harm to self or others is detained without his consent (Kelly, 2011). It is similar to a situation whereby a nurse falsely imprisons a competent adult client to the bed raising the side rails of the bed preventing him from getting off the bed without his consent. However, Staunton Chiarella (2008) debates in a contrasting situation whereby after approaches to decrease hostility and violent in an incompetent client failed, the use of restraints are allowed without his consent to protect him and others from potential injuries. The clients next of kin and physician in charge needs to be informed of the reason why he is being restraint at that point of time. It is essential that nurses documents the incident to prevent any liability for the tort of false imprisonment or battery. Moving on, the writer explains how informed consent is obtained and criteria for informed consent to be met via an illustrated example of Nurse Kelly, practising on the surgical floor and had been ordered to insert a urinary catheter for her competent adult client. The criteria(s) that should be met when obtaining consent are; client retains the mental capability to make legal decisions, information given by client is suitable and satisfactory. Lastly, client willingly consents without external pressures or coercion (Thompson et al. 2006). Insertion of urinary catheter is an invasive nursing procedure involving a piece of foreign body into the anatomy of the client. Before commencing on the procedure, Nurse Kelly should alley anxiety of the client by introducing herself; gradually explain the purpose, risk, benefits consequences for inserting the urinary catheter and any reasonable alternatives that is available (Wilhite, 2010). Allowing her some time to decide and make the informed choice. Hence, Nurse Kelly is promoting clients autonomy by allowing client to make optimum decision in the best interest of the client. Nevertheless, Nurse Kelly clients may choose to refuse treatment. Hall (1996) supports, nurses are offering the freedom to refuse when permitting client the autonomy for consent to treatment. This situation often causes great stress and dilemma to the nurse as she has the duty carry out the care to safeguard her client from harm and at the same time, to respect her clients autonomy and the right to refuse. To resolve this dilemma, Nurse Kelly may want to view the decision to refuse, from her clients perspective and the reason for refusal of treatment (Slowther, 2007). At this present times, Chavarriaga (2000) and Cole (2012) admit that the use of implied consent is commonly implemented within the nursing practice. Cole outlines Implied consent as the behaviour of the conscious client is consistent with the nursing procedure that is about to be implemented. It is recognised that the usual nursing procedure such as taking vital signs seen as non-invasive and quick procedure that would not cause any potential harm. However so, the practice of implied should be discourage as much as possible so as to protect patient autonomy and promote meaningful decisions and prevent potential battery can be imposed to the nurse for unrightfully touching. Obtaining informed consent for nursing procedures often seen as a rigid process (Aveyard, 2002). Therefore, as much as possible, it is a better practice in clinical area to practice obtaining informed consent prior to any nursing interventions to uphold the professional obligations as practicing nurses. In a true emergency situation it is an exception area whereby obtaining informed consent is withheld as supported by these writers (Simpson, 2011; Michael, 2002; Chavarriaga, 2000; Hall, 1996). In this exceptional case, consent taking is implied as the ethical principle of beneficence and non-maleficence is prioritised over clients autonomy. It is the Doctrine of necessity where immediate treatment is necessary to preserve the life and prevent harm to the client and it is assumed that client would consent if able to do so (Staunton Chiarella, 2008) In another situation, Michael (2002) insists that when client is scheduled for a surgical procedure that is being done by the physician. It is the responsibility of the physician to secure a written informed consent and not the nurse. As argued by Michael, nurses play a part as a witness and clients advocates during the process of informed consent taking with the physician. Beforehand, nurses could assess for outstanding impairments or limitations such as; language barrier or hearing impairments that would be a hindrance to clients understanding during the process of informed consent (Wilhite, 2010). These are initiatives taken by the nurse to assist and encourage clients autonomy. On balance, literatures referenced are in favour for nurses playing a major role in securing informed consent (Wilhite, 2010; Chavarriaga, 2000; Simpson, 2010; Aveyard, 2002; McHale, 2009; Michael, 2002 Hall et al., 2012). Legal nurses (Wilhite, 2010; Simpson, 2010 Michael, 2002) who authored the literatures emphasise and define on the major role of nurses securing informed consent, Philosopher (Aveyard, 2002 p.243) reaffirms that nurses are required to obtain informed consent prior to nursing care as she views that nurses should not be mechanistic but should be determined by the need of individual patients. Finally, this essay has explained the central importance of whether nurses should or should not play a key role in securing an informed consent. The writer for one believes that nurses should play a major role to secure informed consent for nursing procedures to a greater extend. We are compelled as it is stipulated and articulates in the SNB and NMC code of ethics and conduct. When informed consent is obtained, it acts as a safeguard against legality issues; battery and false imprisonment. However nurses may be faced with obstructions such as time constrains and may choose to obtain implied consent instead. Nurses may face with dilemma when client abuse the freedom of choice and refuse treatment. In spite of those constrictions, in reality, nurses are bounded by guidelines to follow. Thus, nurses have to try their best to accomplish it.

Canvas of War :: essays research papers

The Canvas of War exhibit exemplifies the various sides of life during the war. The layout of the works alone was very effective in the sense that one led into the next as you moved along looking at them. The styles implemented range from a stylistic approach, mainly surreal in nature, and many were highly detailed realistic paintings. The paintings themselves speak volumes for the hardships the soldiers faced as well as the hardships of life for those at home trying to make ends meet while their family members were out fighting. It was a very difficult time for many, and the exhibit communicates this very well to the public, especially the younger generation which are not too familiar with the past history of war. The First World War images of battle, hospital corps, heroic portraits and gathering soldiers take the visitor through the confused emotions of life in wartime. One image that truly has expression to it in my opinion is that of Ablain-St. Nazaire by J.W. Beatty. It depict s a war torn land with dead and broken trees, only their stumps remaining. In the distant background there is a church which has also been destroyed during the war. The destruction of the church is symbolic of religion being tossed aside during war, a time were instinct is your only chance of survival. The painting uses very cool colours which gives a sense of relief to the viewer. It signifies that its all over, and the green grass and shrubs that are now growing symbolize a new life or rebirth. After a war is over most people have to start at square one again, which is what this image shows, so for that reason I believe it is truly effective.   Ã‚  Ã‚  Ã‚  Ã‚  Through examining the various artworks in this exhibit I have found many styles never known to me in the past. Through looking at the paintings I begin to realize that the artists that created these images are also the heroes in the sense that they risked their lives in the heat of battle, all in an attempt to illustrate what was happening. I can only imagine how many innocent artists lost their lives as well in the process.

The Philosophy of Cartesianism

â€Å"Cogito, ergo sum† (â€Å"I think, therefore I am. â€Å"), Descartes famous basis for his philosophy of Cartesianism, is also compelling evidence towards the defense of one of the most famous of the early Greek teachers, Socrates. In order to be, one must think. Socrates was a seeker of truth, and the highest knowledge is knowing what is best for oneself and one†s community. He was penalized and served the ultimate sentence for his belief in the true nature of education. He was blamed for opposing the authoritative belief that education had the sole purpose of transmitting social mores intact. He believed instead that education was meant to examine and re-evaluate social norms for the betterment of society. It was his re-evaluation of social norms that was perceived as dangerous by his society. This leads to the question, â€Å"Is it dangerous to think to much? † Is it sometimes better to let things be, in order to keep the peace? One of the many charges brought against Socrates was the charge of corrupting the youth with his teachings. Instead of letting the laws govern their lives, he was attempting to show his pupils ways of rationalizing their own world. God originally gave mankind free will so that we would not become a bunch of robots walking around doing his bidding, and yet this is what traditions were doing. The customs of early Athens were limiting on what a person could or could not believe. Socrates believed independent thought in itself could never be bad. It is what one does with this knowledge that determines its worth. Socrates believed that â€Å"self-knowledge† is different from the â€Å"knowledge of information† that had been handed down from generation to generation. Socrates was more concerned with ethical knowledge: self-understanding means self-improvement. Not only must one know what it means to be a human being and understand one's own character (and how it falls short of the ideal), but knowing better means doing better. Knowledge becomes a virtue. One must transform one's own character in the light of one's vision of what is best. Socrates believed true knowledge or human wisdom was not abstract information or facts that filled the brain. It is knowledge that transforms character, brings order to a disorderly life, refines attitude, and makes one better. This self-understanding that Socrates taught his pupils is actually beneficial to a community. When one has order in their lives, it is easier for them to bring order to the world around them. When you smile the world cannot help smiling too. Conversely, when one allows himself to be corrupted, he corrupts the society around them. Self-improvement equals social reform. At the same time, social reform requires knowledge of what is best for the community (as a whole). Thus, since self-improvement and social reform are interdependent, self-knowledge and knowledge of social justice are also interdependent. Ethics is inseparable from politics and individual good is inseparable from the common good. Therefore, by teaching the youth to think without worrying about following tradition, Socrates not only helps them enhances themselves, but he improves society in general. There still remains the question as to whether or not this constant inquiry into the world can be detrimental. Without pioneers of thought, pioneers of action would never exist. As science progresses through time, more and more of its theories are being put into development. Although the progress of science has greatly enhanced society and the world we live in, there are many cases where an invention or discovery managed to set society back. One of the best examples of this is weapons of mass destruction, more specifically, the A-bomb. No one would disagree that this was a terrible thing to create; even the inventor had hesitations when he figured out what he was doing. Still he made it, and as society progress, it progressively develops newer and more destructive weapons. The irony is that the leaders of society are the people pushing for the bigger and better weapons, for the sake a guaranteeing public safety. Yet as more and more weapons are created the inevitable mass destruction of all societies becomes evident. In this way, Socratic thought and the quest for knowledge is detrimental to a society. Pure Socratic belief is best summed up by his saying, â€Å"the unexamined life is not worth living. † Many of Socrates adversaries believed that this principle was an open invitation for anarchy. Examining life leads to new ideas that do not necessarily conform with the beliefs of society. This causes great movements of revolution. Socrates believed these movements were a great tool in the advancement of civilization. One great proof against this idea is the rise of Hitler and communism. Hitler examined his life and found that the Jews were the source of all his problems. He therefore decided to kill as many of them that he could. His ultimate goal was genocide. In this case the personal thoughts of an individual did not help the advancement of society. The new debate becomes, â€Å"Is it justifiable to condemn a person for Socratic behavior? † The answer is no. Everyone should be allowed to quest for knowledge. That is why the necessity for a college education in the modern world is so strong. Society needs thinkers. What is condemnable is the specific actions that are taken as a result of some of these thoughts. Hypothesizing about what a weapon of mass destruction can do and testing it out on innocent people and animals are two different things. Many people criticize Socrates for not being a man of action. All Socrates ever accomplished was questioning and probing the democratic beliefs of his day. He built nothing, and he wrote nothing, all he did was think, and a person cannot be condemned for their thoughts. In the big picture, people should be encouraged to think for themselves, to decide what they are going to believe and what they are going to dismiss as fiction. Society has the right to punish a man†s actions if they are causing harm to society, but expressing a view other than popular opinion is not harmful to society. In actuality, contemplation can help to resolve many of society†s problems. Meditation on a problem leads to possible solutions to the problem, and in essence, progress. By examining oneself, a person gains better insight into who they are, and where their place in society is. This allows them to become more secure with themselves and more efficient in the community. Socratic behavior is about examining everything in order to gain knowledge. The pursuit of knowledge is not condemnable as long as no one is getting hurt.

Services Marketing Essays

Services Marketing Essays Services Marketing Essay Services Marketing Essay Australasian Marketing Journal 18 (2010) 41–47 Contents lists available at ScienceDirect Australasian Marketing Journal journal homepage: www. elsevier. com/locate/amj How the local competition defeated a global brand: The case of Starbucks Paul G. Patterson *, Jane Scott, Mark D. Uncles School of Marketing, Australian School of Business, University of NSW, Sydney, NSW 2052, Australia r t i c l e i n f o a b s t r a c t Americanised the coffee tradition. Keywords: Service brands Service quality Global branding International business Starbucks Coffee The astounding growth and expansion of Starbucks is outlined, both on a global scale and within Australia. The focus then shifts to the abrupt closure of three-quarters of the Australian stores in mid 2008. Several reasons for these closures are described and examined, including that: Starbucks overestimated their points of differentiation and the perceived value of their supplementary services; their service standards declined; they ignored some golden rules of international marketing; they expanded too quickly and forced themselves upon an unwilling public; they entered late into a highly competitive market; they failed to communicate the brand; and their business model was unsustainable. Key lessons that may go beyond the speci? cs of the Starbucks case are the importance of: undertaking market research and taking note of it; thinking globally but acting locally; establishing a differential advantage and then striving to sustain it; not losing sight of what makes a brand successful in the ? rst place; and the necessity of having a sustainable business model. O 2009 Australian and New Zealand Marketing Academy. Published by Elsevier Ltd. All rights reserved. 1. Introduction ‘‘Shunned Starbucks in Aussie exit† (BBC News, 4 August 2008) then shifts focus to describe the extent of the store closures in Australia, before offering several reasons for the failure and lessons that others might learn from the case. 2. Background ‘‘Weak coffee and large debt stir Starbucks’ troubles in Australia† (The Australian, 19 August 2008) ‘‘Memo Starbucks: next time try selling ice to Eskimos† (The Age, 3 August 2008) ‘‘Taste of defeat for the mugs from Starbucks† (Sydney Morning Herald, 31 July 2008) ‘‘Coffee culture grinds Starbucks’ Australian operation† (Yahoo News, 3 August 2008) When the announcement was made in mid 2008 that Starbucks would be closing nearly three-quarters of its 84 Australian stores there was mixed reaction. Some people were shocked, others were triumphant. Journalists used every pun in the book to create a sensational headline, and it seemed everyone had a theory as to what went wrong. This case outlines the astounding growth and expansion of the Starbucks brand worldwide, including to Australia. It * Corresponding author. Tel. : +61 2 9385 1105. E-mail addresses: p. [emailprotected] edu. au (P. G. Patterson), [emailprotected] com. au (J. Scott), m. [emailprotected] edu. au (M. D. Uncles). Founded in 1971, Starbucks’ ? rst store was in Seattle’s Pike Place Market. By the time it went public in 1992, it had 140 stores and was expanding at a breakneck pace, with a growing store count of an extra 40–60% a year. Whilst former CEO Jim Donald claimed that ‘‘we don’t want to take over the world†, during the 1990s and early 2000s, Starbucks were opening on average at least one store a day (Palmer, 2008). In 2008 it was claimed to be opening seven stores a day worldwide. Not surprisingly, Starbucks is now the largest coffee chain operator in the world, with more than 15,000 stores in 44 countries, and in 2007, accounted for 39% of the world’s total specialist offee house sales (Euromonitor, 2008a). In North America alone, it serves 50 million people a week, and is now an indelible part of the urban landscape. But just how did Starbucks become such a phenomenon? Firstly, it successfully Americanised the European coffee tradition – something no other coffee house had done previously. Before Starbucks, coffee in its current form (latte, frappacino, mocha, etc. ) was alien to most US consumers. Secondly, Starbucks did not just sell coffee – it sold an experience. As founding CEO Howard Schultz explained, ‘‘We are not in the coffee business serving people, we’re in the people business serving coffee† (Schultz and Yang, 1997). This epitomised the emphasis on customer service such as making eye contact and greeting each customer within 5 seconds, 1441-3582/$ see front matter O 2009 Australian and New Zealand Marketing Academy. Published by Elsevier Ltd. All rights reserved. doi:10. 1016/j. ausmj. 2009. 10. 001 42 P. G. Patterson et al. / Australasian Marketing Journal 18 (2010) 41–47 leaning tables promptly and remembering the names of regular customers. From inception, Starbucks’ purpose was to reinvent a commodity with a sense of romance, atmosphere, sophistication and sense of community (Schultz and Yang, 1997). Next, Starbucks created a ‘third place’ in people’s lives – somewhere between home and work where they could sit and relax. This was a novelty in the US where in many small towns cafe culture consisted of ? lter coffee on a hot plate. In this way, Starbucks positioned itself to not only sell coffee, but also offer an experience. It was conceived as a lifestyle cafe. The establishment of the cafe as a social hub, with comfortable chairs and music has been just as important a part of the Starbucks brand as its coffee. All this came with a premium price. While people were aware that the beverages at Starbucks were more expensive than at many cafes, they still frequented the outlets as it was a place ‘to see and be seen’. In this way, the brand was widely accepted and became, to an extent, a symbol of status, and everyone’s must-have accessory on their way to work. So, not only did Starbucks revolutionise how Americans drank coffee, it also revolutionised how much people were prepared to pay. Consistency of product across stores, and even national boundaries, has been a hallmark of Starbucks. Like McDonald’s, Starbucks claims that a customer should be able to visit a store anywhere in the world and buy a coffee exactly to speci? cation. This sentiment is echoed by Mark Ring, CEO of Starbucks Australia who stated ‘‘consistency is really important to our customers . . . a consistency in the product . . . the overall experience when you walk into a cafe . . the music . . . the lighting . . . the furniture . . . the person who is working the bar†. So, whilst there might be slight differences between Starbucks in different countries, they all generally look the same and offer the same product assortment. One way this is ensured is by insisting that all managers and partners (employees) undergo 13 weeks of training – not just to learn how to make a coffee, but to understand the nuances of the Starbucks brand (Karolefski, 2002) and how to deliver on its promise of a service experience. The Starbucks formula also depends on location and convenience. Starbucks have worked under the assumption that people are not going to visit unless it’s convenient, and it is this assumption that underlies their highly concentrated store coverage in many cities. Typically, clusters of outlets are opened, which has the effect of saturating a neighbourhood with the Starbucks brand. Interestingly, until recently, they have not engaged in traditional advertising, believing their large store presence and word-ofmouth to be all the advertising and promotion they need. Starbucks’ management believed that a distinctive and memorable brand, a product that made people ‘feel good’ and an enjoyable delivery channel would create repeat business and customer loyalty. Faced with near-saturation conditions in the US – by 2007 it commanded 62% of the specialist coffee shop market in North America (Table 1) – the company has increasingly looked overseas for growth opportunities. As part of this strategy, Starbucks opened its ? rst Australian store in Sydney in 2000, before expanding elsewhere within New South Wales and then nationwide (albeit with 0% of stores concentrated in just three states: NSW, Victoria and Queensland). By the end of 2007 Starbucks had 87 stores, enabling it to control 7% of the specialist coffee shop market in Australasia (Table 1). By 2008, consumer awareness of Starbucks in Australia was 90% (Shoebridge, 2008), with each outlet selling, on average, double the number of coffees (270 a day) than the res t of Australia’s coffee shops (Lindhe, 2008). 3. Expansion into Asia Starbucks currently operates in 44 markets and even has a small presence in Paris – birthplace and stronghold of European cafe culture. Beyond North America, it has a very signi? ant share of the specialist coffee shop market in Western Europe, Asia Paci? c and Latin America (Table 1) and these regions make strong revenue contributions (Table 2). It is in Asia that they see the most potential for growth as they face increasing competitive pressure in their more traditional markets. Half the international stores Starbucks plans to operate in the next decade will be in Asia (Euromonitor, 2006; Browning, 2008). Indeed, Starbucks has done well in international markets where there has not traditionally been a coffee drinking culture, namely Japan, Thailand, Indonesia and China. In effect it has been responsible for growing the category in these markets. The ? rst Starbucks outside the US opened in Tokyo in 1996, and since then, Starbucks’ Japanese stores have become twice as profitable as the US stores. Unsurprisingly then, Japan is Starbucks’ best performing overseas market outside North America. More than 100 new stores open each year in Japan, and coffee is now more popular than tea in terms of both volume and value (Lee, 2003; see also Uncles, 2008). As opposed to their entry into the Australian market, Starbucks made small changes to its formula for the Japanese market; for example, the invention of a green tea frappucino, and the provision of smaller drinks and pastries to conform to local tastes. Starbucks arrived in China in 1998 and by 2002 had 50 outlets, and 165 outlets by 2006 (BBC News, 2006), quickly becoming the nation’s leading coffee chain. Starbucks now sees China as its key growth market due to the size and preferences of the emerging middle class. In the Asia–Paci? region, Starbucks command of the specialist coffee shop market grew from 15% in 2002 to 19% in 2007 (refer to Table 2). The total market for cafes in China grew by over 135% between 1999 and 2004 to reach US$2. 6 billion. It is projected to grow another 144% by 2008 to reach US$6. 4 billion in sales. More specialty coffee shops are opening across China as a middle class with strong purchasing power emerges, although this rise in coffee con sumption is highly concentrated in large cities such as Beijing, Shanghai and Guangzhou. Starbucks has said that it xpects China to become its biggest market after the US and the plan is to open 100 stores a year (Euromonitor, 2006). Signi? cantly, certain Western brands are valued by Chinese consumers and Starbucks appears to be one of them. A growing number of China’s 500 million urbanites favour Starbucks for its ambience, which is seen as an important signal of service quality, Table 2 Starbucks’ regional sales performance by outlets and value 2006. Region North America Asia Paci? c Western Europe Australasia World % of company sales (outlets) 79. 0 13. 6. 7 1. 1 100. 0 % of company sales (revenue in $US) 80. 5 10. 8 7. 7 1. 0 100. 0 Table 1 Starbucks’ share of the specialist coffee shop market in each major region. Region North America Western Europe Asia Paci? c Australasia Latin America Source: Euromonitor (2008b). 2002 (%) 44 17 15 6 0 2007 (%) 62 21 19 7 18 Source: Percentage of company sales in each region is calculated from retail sales within this market in 2006, with sales data drawn from Euromonitor (2007). P. G. Patterson et al. / Australasian Marketing Journal 18 (2010) 41–47 43 nd Starbucks’ design concept rests easily with China’s consumers, who tend to lounge with friends while sipping coffee. Its outlets in China frequently maintain larger seating areas than average outlets in other countries, and plush chairs and davenports are provided to accommodate crowds that linger. However, success for Starbucks in China is not a given, and they will face several challenges in the coming years. China’s accession to the WTO has led to the gradual relaxation of the policy governing foreign-owned retail outlets, and this will lead to more foreign investment and thereby competition (Lee, 2004). Several multinationals are engaged in selling coffee (including KFC, McDonald’s, Yoshinoya, and Manabe), and a number of local brands have recently emerged, some even imitating Starbucks’ distinctive green and white logo and its in-store ambience (notably Xingbake in Shanghai). Furthermore, the reduction of import tariffs on coffee will also encourage foreign investment in coffee. 4. The Australian retail coffee industry Australia’s taste for coffee is a by-product of the waves of immigrants arriving on the country’s shores following World War II. European migrants, predominantly Greeks and Italians, were the ? st to establish the coffee culture, which was later embraced more widely in the 1980s. For decades Australians enjoyed a variation of the ‘lifestyle coffee experience’ that Starbucks created from scratch in the US. Australians did not need to be introduced to the concept of coffee as many other countries did. Savouring a morning cup of coffee was already a ritual for many consumers. It is fair to describe Australia’s coffee culture as mature and sophisticated, so when Starbucks entered Australia in 2000, a thriving urban cafe culture was already in place. This established culture saw Australians typically patronise smaller boutique style coffee shops, with people willing to travel out of their way for a favoured cup of coffee, especially in Melbourne where coffee has developed an almost cult-like following. For Australians, coffee is as much about relationships as it is about the product, suggesting that an impersonal, global chain experience would have trouble replicating the intimacy, personalisation and familiarity of a suburban boutique cafe. Furthermore, through years of coffee drinking, many Australians, unlike American or Asian consumers, have developed a sophisticated palate, enjoying their coffee straighter and stronger, and without the need to disguise the taste with ? avoured, syrupy shots. This love of coffee is easily quanti? ed. The Australian market is worth $3 billion, of which $1. 8 billion relates to the coffee retailing market. For every cup of coffee consumed out of home, two cups are consumed at home (AustralAsian Specialty Coffee Association, 2006). Per capita consumption is now estimated at 2. kg-twice as much as 30 years ago. Whilst Australians are among the highest consumers of instant coffee in the world, they are increasingly buying coffee out of the home (Euromonitor, 2008c). More than 1 billion cups of coffee are consumed in cafes, restaurants and other outlets each year, representing an increase of 65% over the last 10 years. Even between 2000 and 2005, trade sales of coffee have increased about 18%. In 2007, the growth in popularity of the cafe culture resulted in trade volume sales growing at an annual rate of 5%. Some 31% of the coffee sold through foodservice is takeaway, and it is thought that ‘fast coffee’ will be a growth area in future years (Euromonitor, 2008d). There is also a trend towards larger takeaway sizes, with 400 ml cups increasing in popularity (Euromonitor, 2008d). One might argue that Starbucks drove these trends, especially in regards to larger sizes. There are almost 14,000 cafes and restaurants serving a variety of coffee types in Australia, and during 2006/07, they generated $9. 7 billion in income (Australian Bureau of Statistics, 2008). However, despite these statistics, the coffee business does not guarantee success. As Paul Irvine, co-founder of Gloria Jean’s notes, ‘‘Australia is a tough retail market and coffee retailing is particularly tough†. According to of? cial statistics, the cafe business is not always pro? table, with the net pro? tability of cafes falling to about 4%. For a cafe to be successful, it has to offer marginally better coffee than local competitors, and do so consistently. Coffee drinkers in Australia are discerning, and they will go out of their way to purchase a good cup of coffee. They are not as easily persuaded as people from other countries simply to visit their nearest cafe. Secondly, for a cafe to make a pro? t, it needs to turn over 15 kg of coffee a week. The national average is 11 kg, so a cafe has to be above average to begin with to even make a pro? t. Any newcomer needs to understand this before entering the market. The other signi? cant constraint on pro? tability is the cost of hiring baristas, with a good one costing between $1000 and $1500 a week (Charles, 2007). However, it seems that this is a necessary cost in order to deliver a superior product. The question that then begs to be asked is: How well did Starbucks understand this existing coffee culture? Did they under-estimate the relational aspect of coffee purchasing in Australia, as well as the importance of the quality of ingredients and the skills of the person making each cup? Did they overestimate the value consumers attach to the in-store experience and the ‘third place’ concept? Or did they just look at the statistics regarding coffee consumption and think that operating in Australia was a license to print money? Did they simply see Australia as the next logical step to global domination? Starbucks has 87% of the US specialty coffee shop market, and only now is it beginning to feel pressure from non-traditional competitors such as Dunkin Donut, 7 Eleven, McCafe and Krispy Kreme (Burritt, 2007). However, in Australia, the competitive landscape is different. Gloria Jean’s dominates the high-street part of the coffee retailing market and McCafe dominates the convenience end (Shoebridge, 2008). Other signi? cant competitors include The Coffee Club and Wild Bean Cafe (an add-on to BP petrol stations) and Hudson’s Coffee (see Table 3). All offer a similar in-store experience to Starbucks, with McCafe from 2007 onwards refurbishing many McDonald’s stores to imitate the Starbucks’ experience, albeit at the economy end of the market. 5. Growth grinds to a halt . . . store closures In recent times however things have started to go wrong for Starbucks. Internationally, company earnings declined as cashstrapped consumers faced record petrol prices and rising interest rates meaning they have had to pull back on gourmet coffee and other luxuries. Sales fell 50% in the last 2 years, the US share price fell more than 40% over the past year and pro? s dropped 28% (Bawden, 2008; Coleman-Lochner and Stanford, 2008; Mintz, 2008). Consequently, Howard Schultz, the founder and chairman of Starbucks, resumed the position of CEO in 2008 with the aim of revitalising the business. He slowed the pace at which stores were opened (and in fact closed more stores than he will open in the coming year), introduced key performan ce targets (KPTs) and an employee rewards system in the US, and simultaneously shut down every store in America for three and a half hours of staff training (Muthukumar and Jain, 2008). Customer-oriented initiatives have included the addition of more food, the launch of the Starbucks card and Starbucks express, and the provision of highspeed wi-? internet access (Hota, 2008). Notably, Schultz acknowledges that the company’s focus has been more on expansion than on customer service – the very thing that was at the heart of its unique value proposition. 44 P. G. Patterson et al. / Australasian Marketing Journal 18 (2010) 41–47 Table 3 Competition in the Australian specialty coffee chain market (chains arranged in order of the number of stores operating in Australia). Number of stores in Australia Gloria Jean’s 500 Year established in Australia 1996 Business model Price of an espresso coffee (e. g. , ? at white, cappuccino) Regular $3. 25 Small $3. 25 Standard $3. 40 Regular $3. 40 Small $3. 10 Tall $3. 60 Performance highlights and lowlights Franchise Overall Winner, 2005 Franchisor of the Year Sales rose 18% to an estimated $240 m for 07/08 driven by new stores and growth from existing stores The fastest growing cafe brand in Australia and NZ Number of stores up from 60 in 2002 Winner, 2008 Food Franchisor of the Year The number of stores reported here includes NZ Plans to open more sites McCafe Coffee Club Wild Bean Cafe 488 220 105 1993 1989 2004 Some store-owned, some franchise Franchise Part of a franchise with Wild Bean Cafe (BP) Connect Franchise Store-owned Hudson’s Starbucks 45 23 1998 2000 Plans to expand store numbers by 20–30% 08/09 Prior to closures in August 2008 there were 84 stores had a perceived lower quality product Sources: Various company reports as at the end of 2008. However, it seems that these measures were too late for the Australian operation. On 29th July 2008, Starbucks announced that it would be closing 61 of its 84 Australian stores (i. . , 73%) by August 2008, resulting in a loss of 685 jobs. All of these stores had been under-performing (8 were in SA, ACT and Tasmania, 28 in NSW, 17 in Victoria and 8 in Queensland). This decline of Starbucks in Australia was not as sudden as many would have us believe and in fact some reports (Edwards and Sainsbury, 2008; Shoebridge, 2008) indicated that by late 2007 Starbucks already had: accumulated losses of $143 million; a loss of $36 million for that ? nancial year; lost $27. 6 million the previous ? nancial year; loans of $72. million from Starbucks in the US; was only surviving because of its US parent’s support. Whilst the troubled economy might seem an easy scapegoat, with people tightening their belts and eating out less, it is unlikely that this was the core problem as evidenced by the continuing growth of their competitors. Indeed, coffee is no longer considered a luxury item by many Australians, but rather an affordable part of their daily routine. Instead, there is substantial evidence to suggest a number of factors combined to bring about Starbucks’ demise. . 1. Starbucks overestimated their points of differentiation and customer perceived value of their supplementary services ‘‘I just think the whole system, the way they serve, just didn’t appeal to the culture we have here† Andrew Mackay, VP of the Australian Coffee Traders Association, in Martin (2008) Whilst there was initial curiosity and hype about Starbucks, after trying it, many Australians quickly found that it failed to offer a particularly unique experience that was not offered by other chains or cafes. Given the strong established coffee culture and discerning palates of Australians, the core product – coffee – was not seen as particularly different from, say, a latte or short black from a good suburban barista, Gloria Jean’s or Coffee Club. Its point of difference in Australia, where a coffee culture already existed, had to be in its supplementary or value-adding services – i. e. , its unique servicescape, engaging customer service, brand image and so on (Lovelock et al. , 2007). But was this worth a premium price, especially as the competition began replicating Starbucks in-store experience? Starbucks has since been harshly criticised by Australian consumers and the media. Their coffee has been variously described as ‘a watered down product’, ‘gimmicky’, and consisting of ‘buckets of milk’. These are not the labels you would choose to describe a coffee that aspires to be seen as a ‘gourmet’ product. It has also been criticised for its uncompetitive pricing, even being described as ‘‘one of the most over-priced products the world has ever seen† (Martin, 2008). Even the idea of the third place has come under criticism – ‘‘why would you want to sit around a pretend lounge room drinking a weak and expensive coffee when you can go around the corner and have the real thing? † (Wailes, 2008). It seems that Starbucks’ rapid expansion, its omnipresence, somewhat standardised store design and recent insistence on staff achieving various sales KPTs (key performance targets) such as serving ‘x’ customers per hour, all combined to diminish the instore experience. The introduction of sales targets for front-line These closures saw 23 stores kept open in prime locations in Sydney, Melbourne and Brisbane. But this begs the question: can a 23-store chain be viable for the brand in the long-term? Based on the approximate numbers in Table 3, Starbucks had a 6% share of stores in Australia before the closures; this has now fallen to a share below 2%. Even before the closures, Australasia represented only 1% of company sales (Table 2) and now the ? gure is expected to be much lower. This may not make much commercial sense as it will be dif? cult to achieve economies of scale in terms of marketing and purchasing, and such small numbers are totally out of step with the clustering strategy adopted in its strongest markets – the US, Japan and China. However, it could also be argued that with Starbucks’ strategy of global domination, it is unlikely that it will ever close its Australian business entirely. Whilst Starbucks’ management have been keen to suggest that ‘‘this decision represents business challenges unique to the Australian market and in no way re? ects the state of the Starbucks business in countries outside of the United States†, the US market has also suffered. By September 2008, 600 stores had closed (or were due for closure), with about 12,000 workers, or 7% of Starbucks’ global workforce affected (Mintz, 2008). It should be noted that the situation in the US has only worsened as a result of the global ? nancial crisis. 6. So what went wrong? Opinions abound as to why Starbucks failed in Australia. Our research suggests there is some truth to many of these opinions. P. G. Patterson et al. / Australasian Marketing Journal 18 (2010) 41–47 45 employees, for example, meant staff and baristas had less time to engage with customers. It began to stray too far from its roots and the very values upon which the brand was built. Some of these actions were forced upon Starbucks by emerging competitors seeking to imitate the brand, and thus gain a slice of the ever growing lifestyle coffee market. Starbucks’ points of differentiation were systematically being eroded and, in a sense, the brand that taught the world that coffee is not a commodity was itself becoming one. 6. 2. Declining service quality The brand has also come under ? re for declining customer service as it continued to expand. For example, the quality of baristas is said to have declined as Starbucks widened its pool of applicants in order to meet demand at new stores. Can a 17 year old high school student really compete with a boutique trained barista with a passion for coffee? By not offering a better experience and product than emerging direct competitors, Starbucks found itself undermined by countless high street cafes and other chains that were selling stronger brews at lower prices and often offering better or equal hospitality. Whilst they may have pioneered the idea of a ‘third place’, it was an easy idea to copy, and even easier to better by offering superior coffee, ambience and service. Now, with so many coffee chains around, Starbucks have little point of differentiation, even wi-? internet access has become commonplace across all types of cafe. Furthermore, while customers were offered promotional rewards for returning to Starbucks, the card-based scheme is no more sophisticated than equivalent me-too cards at Gloria Jean’s, Coffee Club, Hudson’s and many independent cafes. And as noted earlier, one of the things that set Starbucks apart from the competition – i. e. , acknowledging customers (often by name for regulars) within a few seconds of entering the store and eriously engaging with them, began to unravel when Starbucks imposed both customer service and sales targets for its cafes. The imposition of these targets plus an ever widening range and complexity of coffees to remember and make to perfection, meant staff morale and inevitably customer service levels declined. In fact in the USA some staff were so disillusioned with the impositio n of sales targets (because it meant they simply didn’t have time to engage with customers) they posted blogs openly stating that Starbucks had lost its way. Finally, it appears that Starbucks were not even delivering on their core promise of serving superior coffee in comfortable surroundings, thus justifying its premium price. By switching to vacuum packaged coffee, consumers are denied the store-? lling aroma of the coffee beans. The switching of traditional coffee machines to automated espresso machines (which can make coffees 40% faster and move customers through the lines more quickly), has also resulted in a loss of ‘theatre’ (Grove et al. , 2000) for people wanting to see their coffee made that way and has also had implications for taste. In-store, it has been noted that there are fewer soft chairs and less carpeting, and Starbucks recently lost ground in the ‘service and surroundings’ category of the Brand Keys 2007 Customer Loyalty Engagement Index (Cebrzynski, 2008). It seems that Starbucks is now less about the quality of the coffee, and is more about the convenience of faster service and being on every corner – whilst still charging a premium. 6. 3. Starbucks ignored some golden rules of international marketing Ironically, it seems that the very thing that made Starbucks successful in the ? st place, its ability to adjust the original (European) business model and coffee tradition to local (US) conditions, is the thing that let it down. Whilst Starbucks has made minor changes to its menu in countries such as Japan and Saudi Arabia, it generally offers the same products all around the world. When the company came to Australia, it brought its ‘American’ offering, simply bringing wha t worked in the US and applying it here, without really understanding the local market. But with more than 235 ethnicities speaking more than 270 languages and dialects, companies wanting to get ahead in Australia need to be aware that they are not dealing with one homogeneous market. Unfortunately what worked in the US was ‘‘bitter, weak coffee augmented by huge quantities of milk and sweet ? avoured syrups. Not so much coffee, as hot coffee-based smoothies†. For the Australian consumer raised on a diet of real espresso, this was always going to be a tough sell (Mescall, 2008) As McDonald’s Australia chief executive Peter Bush noted, US retailers that have had trouble making it work in Australia (e. . , Starbucks, Denny’s, Arby’s, Taco Bell) are those that have ‘‘introduced formulae developed for US palates and for the US way of doing business . . . These formulae have, at best, modest relevance in Australia†. Peter Irvine, co-founder of Gloria Jean’s, also noted that ‘‘US retailers often arriv e in Australia thinking the size of their overseas chains and the strength of their brands in other markets will make it easy for them to crack the local market. Their focus is on global domination rather than the needs of the local consumers†. Further, there is a strong sense in Australia of buying local, supporting the community, having relationships with the people you buy from, and supporting ethically-minded businesses. Starbucks clashed completely with that, whereas local stores can differentiate themselves as being local and non-corporate. Furthermore, some would argue that Starbucks has become a caricature of the American way of life and many Australians reject that iconography. Many are simply not interested in the ‘super-size’ culture of the extra-large cups, nor want to be associated with a product that is constantly in the hands of movie stars. . 4. Expanding too quickly and forcing themselves upon an unwilling public In the US, Starbucks started in Seattle as a single store. In a nation bereft of a genuine cafe culture, that single store captured people’s imagination, and soon became a second store, quickly followed by a third. Before long, Starbucks had become a demand-driven phenomenon, wi th everyone wanting a Starbucks in their local area. McDonald’s grew exactly the same way in Australia, opening just one or two stores in each city – nowhere near enough to meet demand – thus creating an almost arti? ial scarcity, which created huge buzz around the brand experience. Krispy Kreme did the same. But when Starbucks opened in Australia, they immediately tried to impose themselves with multiple store openings in every city – adopting the US-model of expansion through store clusters. Australians were not given a chance to ‘discover’ it. As Mescall (2008) points out ‘‘they took key sites, hung huge signs, made us order coffee in sizes and gave the coffees weird names. Starbucks said to us – ‘that’s not how you drink coffee. This s how you drink coffee’†. They took the Coca-Cola strategy of being available wherever people looked, but this quickly led to market saturation. Their expansion di d not hurt their competitors so much as themselves, and they found themselves cannibalising their own stores. Furthermore, by becoming too common, the company violated the economic principles of cultural scarcity and the novelty wore off. By having too many outlets, becoming too commercial and too widely used, it began to lose its initial appeal of status and exclusivity. It began to have a mass brand feel, certainly not the warm feeling of a neighbourhood cafe. Furthermore, they became more reliant 46 P. G. Patterson et al. / Australasian Marketing Journal 18 (2010) 41–47 on less af? uent consumers who now, with a worsening economy, are spending less, making Starbucks more vulnerable to economic ? uctuations. 6. 5. Entering late into a highly competitive market ‘‘In America, Starbucks is a state of mind. In Australia, it was simply another player. † Barry Urquhart, quoted in Delaney (2008) From Day 1, Starbucks got off on the back foot. They lacked the ? rst-mover advantage they had in the US and Asia, ? nding themselves the late entrant in an already very developed, sophisticated and competitive market. Indeed, the competitive landscape in the Australian retail coffee market is very different to that of other countries. Here, Starbucks found themselves competing with hundreds of independent cafes and speciality coffee chains (see Table 3), where the coffee was generally better and the staff knew their customers by name. Signi? cantly, they were also the last of the major chains to gain a presence in Australia. 6. 6. Failing to communicate the brand Worldwide, Starbucks rarely employs above-the-line promotion, and this was also the case in Australia. Instead, they maintained that their stores are the core of the business and that they do not need to build the brand through advertising or promotion. Howard Shultz often preached, ‘‘Build the (Starbucks’) brand one cup at a time,† that is, rely on the customer experience to generate word-of-mouth, loyalty and new business. But in a market as competitive as Australia, with a consumer whose palate is discerning and whose loyalty often lies with a speci? barista, advertising and promotion was essential to communicate the Starbucks message. The issue is not so much about building awareness – which, at 90%, is high – but to communicate what the brand means and to give consumers reasons for patronising Starbucks. Their lack of advertising made this branding issue even worse, with many people unable to articulate why they should be loyal to Starbucks. At the same time, competitors were communicating their messages very effectively – McDonald’s, for instance, is a heavy spending, award-winning, advertiser in the Australian market. Added to which, more subversive counter-messages were coming from those who saw in Starbucks a ‘brand bully’ riding rough shod over the nuanced tastes and preferences of local cultures (Klein, 2000; Clark, 2008). In other words, a range of strong contrary messages were undermining Starbucks’ own very limited communications. 6. 7. Unsustainable business model Starbucks’ product line is limited primarily to coffee. Sometimes a new product idea will be developed, such as the Frappucino, but these tend to have limited product life cycles and/or are seasonal. For example, the Frappucino has traditionally made up 15% of (summer) sales, but recently sales have been down, suggesting that customers are already bored with it (Kiviat, 2008). Furthermore, in the instance where other products were offered, people failed to purchase them as they only really associate Starbucks with coffee and generally seek food elsewhere. This is a very different model to The Coffee Club which has much more of a cafe feel to it, or McDonald’s which has a full range of breakfast and lunch/dinner items that can be complemented by a McCafe latte. Hence the average transaction value at Starbucks is lower than its competitors, and therefore more customers must pass through its doors to reach the sales and pro? t levels of its competitors. It also creates con? ict with the Starbucks ethos of the third place (and allowing people to sit around for 30 minutes sipping lattes and reading, talking or sur? ng) versus the need to get people in and out quickly and not take up valuable ‘real estate’ (which in itself means that the average Starbucks store needs to be much bigger than the average cafe). Unlike most of the other retail coffee chains, Starbucks does not use a franchise model, preferring to lease and ? t-out its own outlets. This means more cash is being spent upfront, and in Starbucks’ case, more debt accrued. But adopting a franchise model would have numerous other advantages than just minimising this. It would mean that local investors, with a good sense of the local market, put their own money into the business and take an active role in running it and shaping its direction. 7. What are the main lessons from this case study? Several key lessons emerge that should be of interest to both domestic and international marketers. 7. 1. Crossing international borders is risky and clearly Starbucks did not do their homework, or ignored their homework Well conceived market research involving both primary and secondary data, including qualitative and quantitative approaches, would have uncovered the extent of the ‘coffee culture’ that existed in 2000 when Starbucks entered the Australian market. It seems inconceivable that Starbucks management, or at least its Australian representatives, were not suf? iently apprised of the extent to which many consumers were already well acculturated in terms of buying and consuming European styles of coffees such as short black, lattes and cappuccinos, nor the extent to which many customers were in fact loyal to their suburban cafe or competitive brands such as Gloria Jean’s. As a late market entrant, Starbucks clearly failed to do thorough homework on the mar ket before entry – this is a failure in terms of due diligence. Alternatively, they chose to ignore the messages that were coming from any due diligence that they had undertaken. This may or may not have been due to some arrogance on the part of Starbucks, or due to the fact that they considered they had a strong global brand which would meet with universal acceptance. An example of where Starbucks did do its homework, and act on it, was in France when it entered that market in 2006, establishing a cafe in the middle of Paris. Research had clearly shown the American way of consuming and socialising over a coffee was an anathema to many French, so Starbucks held back from entering the French market and when they ? ally entered it was with great trepidation, expanding at a very slow pace and testing the market at every step. 7. 2. ‘‘Think global but act local† This familiar maxim in international marketing should be well understood. While Starbucks had brand awareness as a major global brand, it failed to adapt the product and the customer experience to many mature coffee drinkers in Australia. As noted earlier, all the evidence suggests that it simply tried to transplant the American experience into the Australian market without any adaptation. In particular, it failed to adapt either its core product or its supplementary services to create the intimacy, personalisation and familiarity that is associated with established boutique cafes in Australia. 7. 3. Establish a differential advantage and then strive to sustain it A question of strategy that Starbucks perhaps failed to address was, ‘‘Is our product differentiation sustainable in the long term P. G. Patterson et al. / Australasian Marketing Journal 18 (2010) 41–47 47 and does it continue to justify a price premium? As noted earlier, it can be argued that the core product in this case, that is the coffee itself, is essentially a commodity, and that Starbucks’ coffee, according to many consumers, was no different to the competition, and in some cases inferior. Then Starbucks’ points of difference clearly revolved around its brand image and supplementary services. It was these supplementary services, such as its unique servicescape and exce llent customer service, that they used to justify a premium price. However, as competitors (e. g. , The Coffee Club) quickly imitated the ‘Starbucks experience’ (i. . , their supplementary services, ambiance, etc. ), by providing premium coffee and an intimate casual experience, Starbucks’ value proposition began to fade. In other words, their key points of difference could be easily imitated and were not sustainable. Faced with this scenario, the onus was on management to re-fresh and evolve any lingering differential advantage that Starbucks might have had or, at the very least, give customers reasons to continue patronising Starbucks through its communications. 7. 4. Don’t lose sight of what made you successful in the ? st place As more and more competitors emerged, both individual cafes and chains such as Gloria Jean’s and The Coffee Club, competitive pressures forced Starbucks to impose rigid sales targets on their frontline staff including bar istas to increase store productivity. However, the imposition of these KPTs and the pressure to serve more customers more quickly meant that Starbucks forgot the very thing that made it unique in the early days, namely, to provide a customer experience in an intimate casual setting that set it aside from competitors. As more pressure was placed on staff to have higher throughput, this meant that baristas and other employees had little time to engage with customers. In other words, Starbucks forgot about the very things that made it unique in the ? rst place. This is akin to the Wheel of Retailing hypothesis (Hollander, 1960) where a no-frills retailer gradually moves upmarket in terms of variety of product, price and more services and within several years ? nds itself competing with the more established premium supermarkets that were the very competitors that they tried to distance themselves from in the ? st place. The only difference with Starbucks is that it reversed the direction of the Wheel – by gradually moving downmarket it brought itself into direct competition with cheaper operators and lost sight of what made it successful in the ? rst place. 7. 5. Consider the viability of the business model It has to be questioned whether the Starbucks’ business model is viable in the l ong term, or even the medium term. A business model that uses a premium price to justify the excessive ? or space and elaborate servicescape, and allows customers to sit in this environment for an hour sipping one latte, has to be questioned. Given that Starbucks do not have the array of products that, say, a McDonald’s might have and, as documented earlier in this case, therefore do not generate the same sales volumes and revenues, it is hard to see how the Starbucks’ model is ? nancially viable. 8. Conclusion In summary, it appears on all the evidence that Starbucks not only misjudged the Australian coffee culture but also misjudged the extent of the competition, and failed to adapt its offering to the local market. Furthermore, with the advent of high quality barista training, the availability of premium coffee beans and the technology to produce a high quality cup of coffee (at a modest cost), sole operators who knew their customers by name, were able to set up business as viable competitors. Starbucks may have been responsible for growing the premium coffee category, but the emergence of Gloria Jean’s and the Coffee Club (and McCafe, a premium coffee shop embedded in McDonald’s restaurants) turned out to be serious competitors. Finally, questions have to be raised about Starbucks fundamental business model in a market where many small niche players can easily replicate the ‘Starbucks Experience’. References AustralAsian Specialty Coffee Association, 2006. 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