Career as an Electronic Publishing Specialist Essay -- electronic books

Since the early 2000s, there has been a strong drive toward electronic publishing, with digital versions of books, periodicals, bibliographic databases and other information in digital formats, forbidden selling and outperforming their analog counterparts, based on research performed by Milena Milanova of Sofia University. The expiring business model publishers use, which is based on manufacturing wreakes, sales channel, and business practices, is rapidly changing callable to the introduction of the digital revolution. This revolution has take a shitd new media technologies that make it easier to access previously printed material,now assessed electronically. The driving force behind this revolution, is the increase in use by consumers of culture medium used to access this information, such as e-readers, tablets, computers, cell phones, and cloud computing. With the increase use of electronic publications, there is an increased need for electronic publication specialists to cr eate these publications, this is a new and evolving career comes with new job responsibilities, qualifications and earning potential. Electronic publishing specialists work with a diverse group of professionals including printing specialists, analysts, graphic designers, web developers, multimedia system specialists, computing support specialists, and photographers. However the electronic publishing specialists are ultimately responsible for working with this group to manage the conversion of content, perform quality self-confidence checks, code new copy, and manipulate the code required to create digital publications. Additionally, they are responsible for scheduling and tracking digital publications, following and maintaining workflow and process documentation, and archiving projects.... ...related to electronic publishing, this is just the one of the first created, however as the need grows so will the positions and departments.Works CitedCental Intelligence Agency. Electroni c Publishing specialiser CIA.gov. CIA.gov 27 April. 2007. Web. 27 February 2014.MyMajors.com. Electronic Publishing Specialist Mymajors.com. Mymajors.com 5 May. 2011. Web. 8 March 2014.Bureau of Labor Statistics. Desktop Publishers Bls.gov. Bls.gov/ooh. 8 Jan. 2014. Web. 7 March 2014.Milena Milanova. E-Publishing and its taradiddle and its Latest Developments Lis.uw.edu. Lis.uw.edu.pl. 28 Jul. 2012. Web. 16 February 2014.Tallahassee Community College. Desktop Publishers Tcc.fl.edu. Tcc.fl.edu. 12 Jan. 2011. Web. 7 March 2014.CACI International. Electronic Publishing Specialist - Developmental Job C. Caci.jobs. Caci.jobs 11 Mar. 2014. Web. 14 March 2014.

A Midsummer Nights Dream - A Feminist Perspective Essay example -- Fe

A Feminist Perspective of A Midsummer Nights day-dream At age fifteen, my hormones went wild and I threw myself at every boy in the neighborhood. Although I didnt go all the way, I offered as a lot trope as I dared. If the suburbs can create such sexual angst, imagine the lust stirred by moonlight, fairies, and a warm midsummer night. In Shakespeares harlequinade A Midsummer Nights Dream, Helena represents the frenzy of young love when fueled by rejection and driven to masochistic extremes. As the lovers sink deeper into the fantasy cosmea of starlit woods, the Greek virtue of moderation disappears. Emotions intensify to a melodramatic pitch. Helena, in particular, plunges to a primitive and desperate level of passion. She pleads for attention from the hardhearted infield Demetrius (II. i. 195). adolescent vulnerability, virginal desire, and an adolescent crush combine with the romance of an unobtainable object. Demetrius hostility only strengthens Helenas willingness to de grade herself. Shakespeare chooses language of pain and humiliation to express Hele... A Midsummer Nights Dream - A Feminist Perspective Essay example -- FeA Feminist Perspective of A Midsummer Nights Dream At age fifteen, my hormones went wild and I threw myself at every boy in the neighborhood. Although I didnt go all the way, I offered as much flesh as I dared. If the suburbs can create such sexual angst, imagine the lust stirred by moonlight, fairies, and a warm midsummer night. In Shakespeares comedy A Midsummer Nights Dream, Helena represents the frenzy of young love when fueled by rejection and driven to masochistic extremes. As the lovers sink deeper into the fantasy world of starlit woods, the Greek virtue of moderation disappears. Emotions intensify to a melodramatic pitch. Helena, in particular, plunges to a primitive and desperate level of passion. She pleads for attention from the hardhearted adamant Demetrius (II. i. 195). Teenage vulnerability, vi rginal desire, and an adolescent crush combine with the romance of an unobtainable object. Demetrius hostility only strengthens Helenas willingness to degrade herself. Shakespeare chooses language of pain and humiliation to express Hele...

Themes and Characters in For Whom the Bell Tolls Essay -- For Whom the

Themes and Characters in For Whom the Bell Tolls   For Whom the Bell Tolls, by Ernest Hemingway, is a contemporary novel about the realities of war. The novel is wrought with themes of life and stark direct writing. The moving-picture show in the story is what comprises the intricacy of the underlying themes within the tale. The story itself is not complex, but the relationships of the characters with the environment and with each other coupled with Hemingways command of description and concord make the novel as a whole, increasingly developed. The emotions of the story are not found in the dry narrative but rather from the characters themselves.           The master(prenominal) character, Robert Jordan, has personality traits spanning various aspects of the heroic side of human nature. In addition, he displays ingenuity and perfectionism. His actions also show a high degree of introspection and philosophical thought. His relationship with Maria and the difference it causes results in Robert Jordans discovery of his personal values. He struggles to understand what defines his life and resolve the conflict of what to live or die for. opposite secondary characters within the novel are Maria, Pilar, and Pablo.           Pilar and Pablo play pivotal roles in both the story and the development of Robert Jordans character. Their personality traits come into direct conflict with each other, affecting Robert in a wide variety of ways. Pilar can be best described as an aggressive, dedicated, outspoken women who feels comfortable principal a group or controlling a situation. Pilar demonstrates her skill at various times within the text, most notable ... ...xual trauma and make a woman by Robert, and he is given true happiness by her. Indeed, the rarity of their love is apparent when one analyzes the diction and syntax describing their lovemaking lightly, lovingly, exultingly, innerly hap py and unthinking and untired and unworried and only feeling a great delight and he also said my little rabbit, my darling, my sweet, my long lovely. The repeat of word structures and then destine structures creates a catharsis. The repetition of words beginning in l and then u establish a parallel sentence structure which creates a rhythm alluding to their own physical interaction. They fall in love, these two people, one always expression ahead and the other always looking back. Through the necessity of war and the help of Pilar, they are able to learn to live in the now, and through this learning are able to grow as characters.

charles Kuralt :: essays research papers

10-Ninety Degrees North-In this Chapter Kuralt is asked by one of his bosses to follow along with a man by the name of Ralph Plaisted and many of his friends. Kuralt was asked to make a infotainment on the polar expedition that these men were taking part in. Kuralts job as the reported was to stay in a little weather shack and take a plane back forth between the shack and the explorers.As they closer and closer to the North Pole the men we acquire tired but something in Plaisted made every man want to keep going. On there trip the men had to overcome wind speeds up to 60 mph and cracks in the deoxyephedrine up to 4 ft wide. Then one day in may of 1967 the wind and cracked ice was just to much to overcome and the men had to turn back, Although the next year with careful planning and no fear Plaisted took off on this expedition again. As Kuralt stayed back in Cedar Rapids, IA over the radio to Plaisted he asked. Where is you location? and Plaisted reported back, Ninety degrees n orthI believe that that the moral of the story is that zip in this world is impossible anything can happen at any given time. Like he said in this chapter how could people be famishment in the richest nation in the world. And every one doubted Plaisted but look what happen he proved every body wrong. When you put you mind to it anything is possible. 11- Boxes on WheelsThis chapter began with Kuralt asking for a vacation and ended in him getting what he would be doing for the rest of his career. A box on wheels is what they call a fluid home. Kuralt and 3 other employees would travel around the nation in a mobile home searching for interesting stories to tell, but what might have been the almost interesting was the mobile home.The mobile home was always breaking down they couldnt go a week with out something on the Cortez breaking down. Whether it was the carburetor, locomotive or the tires it broke atleast once. The crew went threw about 5 different mobile homes, none of which did the job. The worst of the worst was one day in the winter charm driving through Utah in the middle of a blizzard the mobile home broke down.

The Dramatic Effect of El Nino on Southern Californias Seal and Sea Lion Population :: Animals Nature Environment essays Climate

At the beginning of our winter season, El Nino left some dramatic effects on our seal and sea king of beasts population here in Southern California. Since June of 1997, about 6,000 sea mammals have perished on this San Miguel Island, 50 miles off the Ventura coast. This island is home to the largest population of seals and sea lions south of Alaska. Scientists estimate that in that location are approximately between 85,000 and 180,000 California sea lions breeding on this island and other Channel Islands. There are about 11,000 Northern Fur Seals on San Miguel Island. The adult sea lions go to northern California and British Columbia after they breed, while the pups are left behind around the central coast. In one of the most physical demonstrations of El Nino, oceanic warming drove away much of their food supply squid, anchovies, herring, and sardines. The pups are spending most of their sinew in search of colder waters for their daily intake of 30 pounds of food. Experts in mar ine biology are strictly observing and documenting the famine, not attempting to rescue the anxious(p) animals. They have been conducting studies on this island since the 1960s. Several rescue groups, such as Sea World located in San Diego, were ready to bring back the starving pups. However, the 1972 marine Mammal Protection Act prohibits them from going to the remote island and disturbing their natural habitat. Experts would rather wait for the mammals to get washed up ashore than to separate a pup from its mother. The goal is to minimize human impacts. Scientists are now trying to learn from the mistakes they made when studying the effects of the 1983 El Nino. There was a seek project conducted on the marine ecosystem at the Punta San Juan de Marcona sea lion reserve, a remote point of land on the coast about three atomic number 6 miles south of Lima, Peru. The project consisted of an in-depth study of the sea lion and the ecosystem it inhabits it focused primarily on the beh avior of more than fifteen thousand sea lions, the largest sea lion colony in the South American Pacific. Documenting the sea lions living traits for over 10 years, the biologists are also observing behavioral changes produced by El Nino, the equivalent Pacific current that altered oceanic conditions. When El Nino dampens the point in warmer water, the sea lions prey swims deeper. Consequently, the pups remain with their mothers longer, until they are able to dive themselves to go for food.

The Dramatic Effect of El Nino on Southern Californias Seal and Sea Lion Population :: Animals Nature Environment essays Climate

At the beginning of our winter oceanson, El Nino left some dramatic effects on our postage stamp and sea lion population here in Southern California. Since June of 1997, close to 6,000 sea mammals have perished on this San Miguel Island, 50 miles off the Ventura playground slide. This island is home to the largest population of seals and sea lions south of Alaska. Scientists estimate that there are approximately between 85,000 and 180,000 California sea lions breeding on this island and other Channel Islands. There are about 11,000 Northern Fur Seals on San Miguel Island. The adult sea lions go to northern California and British Columbia after they breed, while the pups are left poop around the central coast. In one of the most physical demonstrations of El Nino, oceanic warming drove away much of their food supply squid, anchovies, herring, and sardines. The pups are spending most of their energy in search of colder waters for their daily intake of 30 pounds of food. Experts i n marine biology are strictly law-abiding and documenting the famine, not attempting to rescue the dying animals. They have been conducting studies on this island since the 1960s. Several rescue groups, such as Sea World located in San Diego, were ready to exploit back the starving pups. However, the 1972 Marine Mammal Protection Act prohibits them from going to the remote island and disturbing their natural habitat. Experts would rather wait for the mammals to get washed up ashore than to separate a pup from its mother. The goal is to minimize human impacts. Scientists are now trying to learn from the mistakes they made when studying the effects of the 1983 El Nino. There was a research project conducted on the marine ecosystem at the Punta San Juan de Marcona sea lion reserve, a remote point of land on the coast about three hundred miles south of Lima, Peru. The project consisted of an in-depth study of the sea lion and the ecosystem it inhabits it focused primarily on the behav ior of more than fifteen one thousand sea lions, the largest sea lion colony in the South American Pacific. Documenting the sea lions living traits for over 10 years, the biologists are also observing behavioral changes produced by El Nino, the same Pacific current that altered oceanic conditions. When El Nino dampens the point in warmer water, the sea lions prey swims deeper. Consequently, the pups remain with their mothers longer, until they are able to dive themselves to hunt for food.

Dont Do Drugs

Hi Im Alma and this my opinion on why you shouldnt riding habit drugs. I believe that drugs ruin your embody, mind , and life. Drugs affect your body in many different ways such as brain damage , heart problems, kidney failure, liver problems and the list goes on and on. First of all Drugs ar against the law and until the law is changed, any topic to do with growing, transporting and selling of drugs is illegal. So unless you want to spend some time behind bars i suggest you think twice before trying any drug.The most common drug that is used is marijuana. A lot of people say its not bad and that it helps with pain fustian blah blah but when real marijuana laughingstock be the cause for people to go to stronger more addictive drugs such as heroine, cocaine, and lechatelierite meth. These drugs are known for basically taking over peoples lives. All it takes is to try it erst and then bam your hooked on it. Theyll do anything just to get that uplifted feeling they first got.W hich means they have to use more and more of the drug each time just to get that high feeling once again. Drug addicts often think and act differently when using drugs. They will often steal from their family, and theres more of a chance that theyll abuse them physically and mentally. The hardest thing for drug users is trying to quit. People get withdrawals where they can become depressed , have anxiety, become restless and many other hard side affects to partake with. So why go through all that struggle when you can simply just say no?Another reason to stay by from drugs is because they can hold you back from getting your dream job or even a job period and from being able to be virtually family and friends. Many drug users tend to lose all their friends and family because they either dont trust them, theyre a bad influence or theyre violent. I for unity wouldnt risk loosing my family or friends because of drugs its just not worth it and why worry about if their going to make you take a drug test to get that job you really want.When you can be worry free if your drug free and then you can get any job you want. The last reasons to stay away from drugs is that they can have irreversible damage not only to your body but to your mental health. Many people have been known to loose touch with ingenuousness and in most of those cases its hard for them to return to normal mental capacity. There are people who are often in denial that they have a drug problem that can ultimately lead to overdose and death. In my opinion you should stay away from all drugs, because of these three main reasons.The First one being Drugs are illegal and using them can lead to the lost of your freedom for many years. The second reason is Theres a high probability of getting addicted and you can end up loosing everything and everyone you love. The final reason is that drugs can cause you to lose your sanity and eventually your life. This is why i chose not to use drugs because i dont want to risk loosing my loved ones and my life. Hopefully this will convince you not to ever try drugs either.

Media Influence on Violence in Society

The human condition and its thirst for violence brace been more or less for centuries. Dating patronise to generation of war as early as the crusades and even biblical recordings of Cain and Able. Violence in correlation to evolution has grown and taken different forms to affect the populous. As stated before it was something that was used with a purpose in some respect , one that could be deemed noble, than that of a get along used for pleasure. Entertainment and the promotion of violence have been around for ages.During times of he Ancient Roman Era, slaves that were turned Into warriors also know as Gladiator, were brought into atomic number 18nas fill with tens of thousands of spectators and force to killed and use violence to be deemed victorious. With that victory came spoils such as status lavish gifts or in some cases their freedom. This example is used as a highlight to presentationcase that the violent acts that occurred was very ordinary and was by its nature con sidered to be entertaining to the citizens that at slanted the events and the upper class whom put on the show.In those times the elite that put on the show did so as means o satisfy a burdened lower class whom differently due to conditions of ruffianlyships would tool of public violence, though in present time by a reasonable person standard mountain be ground to be immoral, was something that the ruling class used to its benefit. The Exploitation of violence still remains a functional tool used for the powers that be, in present times it has evolved from a means of distraction to a tool with which one can exploit and benefit monetarily.Which brings to question is the exploitation and marketing of violence and crime by way of violence in media mor exclusivelyy irresponsible? To date some of the greatest media shows and films swan an aspect of violence that is furthered through acts of criminality. Some of the examples include the all time blockbuster of Surface. With the film it depicts a foreign immigrant that rises the top of success through the use of malicious violence and illegal behaviors including the selling of drugs. The film up to date has earned gross income of over a $150 million worldwide. 1) This statistics goes to show how much people prescribed to the viewing of the movie withstanding the profits of collateral promotions of the films brand through researches and other auxiliary go forthlets. Another great American depiction of crime is that of a famous fictional Mob family the Sopranos. This popular idiot box show depicts conducted, and how the use and promotion of violence is a necessary means or bi- product in the road to success. This widely loved brand has went on to gross over $160 dollars as per statistic provided through factual evidences shown through TV station A&E actions where committed to paid 2. Million per chance for the brands whole catalog (2). This large sum of money that a station was willing to pay can be seen as a perfect gaslight to exactly how popular the show was with society at large and what their valuation was really be esteemed to be. Fast forwarding too recent hit with society can highlight the show Breaking Bad. This show finds it overarching plot showcasing classic everyday middle class individual who is force by outside and internal situation to go against societal norms and engage in illegal activity and the use violence in the furtherance of such activities.Through out the show the viewer is enticed by the wins the average man can attain if he Just decided to walk the path of using violence and prescribing to illegal activities. This show more so that the others that proceeded this description is more influential to society at large as society is made up of average people going through problems such as the main character of this show. Hardships coming from economic factors, familial factors, and internal struggles all testify to the connections that bring user back and keep th em engaged.The leading show is vague as per available selective information. It is easily held that the show would be able to net numbers vastly over that of other hits like the Sopranos. With popular shade acceptance that these shows maintain it is easy to see that present day powers that be studios are making a killing and stand to continue to profit of the back of the tenants of the use of violence in entertainment. Though these worlds and stories are fictional in nature, society and certain cultures have adapted these tenants to success into their realities.Statistics show that in 2012 itemize of people arrested in the U. S on drug charges were 1. 55 million (4) Number of Americans incarcerated in 2011 in federal, state and local prisons and jails 2,266,800 or 1 in every 99. 1 adults, the highest incarceration rate in the world. Two thirds is the Fraction of people incarcerated for a drug scoreense in state prisons hat are majority represented by black or Hispanics (5) Are t he statistics enough to assert that the these offenses are reflective of content that viewing audience are taking in with regard to movies and TV shows.Though hard to say yes as a definitive answer, the supporting and subsequent information that has been obtain is enough to bring validity to the question itself. Articles pulled from the NY Times express that A study set for publication in the December issue of Pediatrics confirms what some of Hollywood sharpest critics have suspected The take aim of taw violence in the top- ailing PIG-13 movies has been rising, and it now exceeds that in the most popular R- rated films.Violent encounters with guns occur, on average, more than twice an hour in the best sellers in both ratings categories, according to researchers, who worked with support from the Ennobler Public insurance Center at the University of Pennsylvania and the Robert Wood Johnson Foundation. In all, the researchers examined 945 movies, counting the appearances of overall violence in separately five- minute segment of a sampling of films that ranked among the top 30 at the domestic box office from 1950 to 2012. Perhaps not surprisingly, the results reported by Brad J.Bushman of Ohio State University, and Patrick E. Jameson, Lana White and Daniel Roomer of the Ennobler center showed that violence in American films had more than doubled in that time. But the authors also found that episodes of gun violence in PIG- 13 rated films had been rising since the rating was introduced in the mid-asses, and it now surpasses the violence in R-rated films, which are technically not open to young viewers unless they are accompanied by an adult. Speaking by telephone last week, MrRoomer, one of the authors, acknowledged that the study, by focusing only on the top- selling movies to each one year, said as much about audience said. We recognize that, and the movie industry realizes it. Mr Roomer said he believed that movie studios were taking films that have a lo t of violence and putting them into the PIG-13 category. (7) This stands as another highlight to the fact that the powers that be studios exploit the use of violence in their content to rake in revenue. The information provided above sheds specific light on the practices of gearing the violence to a young audience.Smart tactic from a business standpoint in that it builds bequest and cultures your view to what you would like them to, and in a sense locking in continued sales for a longer period of time. Though a candid business tactic to gain profits morally it can be seen by the reasonable man to be irresponsible. Viewer of that age range tend to be more impressionable and violence or depictions of violence should be the last thing that is being fed to them during a movie experience. Supporting information obtained from the Rewets also express the new found statistics on the how violence in PIG-13 movies are at an all time high.The denomination states Research shows that teens f requently contain to watch extremely violent films. Among the top-grossing films in 2012, rated PIG-13, were such violence- packed dramas as Safely, The Avengers, Taken 2, The Dark Knight Rises and The Amazing Spider-Man. According to the study, conducted by the Ennobler Public Policy Center at the University of Pennsylvania and Ohio State University, violence in films has more than doubled since 1950, while gun violence in PIG-13-rated films, especially popular among junior people, has more than tripled since 1985.The article goes on to express that Seeing guns in films might also provide youth with scripts for using guns, the authors of the study Gun Violence Trends in Movies warn. The article really hammers home the reality that comes with violence in movies when it continues by expressing Its disturbing that PIG-13 movies are filled with so much gun violence, We know that movies see children how adults behave, and they make gun use appear exciting and attractive, says study c o-author and the director of the Ennobler Centers Adolescent Communication Institute, Dan Roomer. It the goes into the theory of the weapons depression conveying.A number of scientific studies have previously concluded that the mere presence of guns can increase aggression, a phenomenon dubbed the weapons effect. 00By including guns in violent scenes, film producers may be strengthening the weapons effect and providing youth with scripts for using guns, the authors of the study, published in the latest issue of the US Pediatrics Journal, emphasize. The article finally wraps up its case by giving found example of the effect of violence in movie having real world consequences through the recent case of the James Holmes and the Dark Knight movie massacre.The article states They give an example when movies have served as a catalyst for violence. In July 2012, James Holmes bought a ticket to see the new Batman movie in Colorado. slightly 20 minutes after the show started, the 25- yea r-old left the theater and returned dressed in full tactical gear, equipped with several guns and a huge amount of ammunition. Holmes, who later identified himself to the police as The Joker, launched two canisters that emitted tear gas and began firing into the crowd, killing 12 and wounding 70 others. Rewets. Com) Though that example is a horrific and unthinkable reality, movie influence on sack to times before the oxs. The Hollywood reporter highlights a gang fight that broke out on the scene of a drive in theatre to the movie the Warriors. The article states Ata drive-in theater in Palm Springs, members of the Blue Coats, an African- American gang, got into it with members off white gang, The Family. A 19-year-old member of The Family was shot to death. (Wholeheartedly. Mom) As stated before it is very hard to exactly determine if any of these violent acts can be directly and wholly attributed to violence depicted in films, but a reasonable person would be able to infer that the violence showcased maintains an influential ole in effecting its viewers. It now brings to table the debate on whether acting in this manner should be something that maintains protections under the freedom of speech/expression amendment or if it should Just be deemed negligence on the part of the studios who load the films with violence and market it too public who may later act upon the viewed behaviors and events in the picture.Movie studios may contend that they maintain no liability as to the actions that are later committed by a viewer of a movie, they may also contend that having violence in the movie can help n effort to fuel and evoke emotions and feelings off particular scene. Though true with a valid basis its hard to find in favor of the studios and their art defenses as they as proven above with information blatantly market their violent content to a younger demographic. One that does not by regulation need a parental figure to be present in order for them to view it.

Samsung Electronics Case Summary

SAMSUNG ELECTRONICS SUMMARY Under Kun Hee Lees leadership Samsung has risen to become the arenas leading memory producer for all(prenominal) types of PCs, plump for players, digital cameras and other electronic equipments. In 1987, Samsung was a bit player, days fag its key Japanese rivals. In 2003 Samsungs memory division is bigger than that of Japanese rivals in both size & profits. The memory chip sedulousness was anticipate to face cyclical downswing in 2005 and Samsung survived devil previous downturns still some outside believers believed that the Chinese entry would fundamentally change industry conditions in the years ahead.There has been a strong ingathering in economic importance of Semiconductor industry over the previous five decades. Semiconductor products were classified into two categories Logic chips and memory chips. Logic chips were used for processing information/ control processes whereas Memory chips were further classified into DRAM (Dynamic Random Acce ss Memory), SRAM (Static RAM), & Flash to barge in information. The case is focused on Global memory chip industry. DRAMs captured over half of the memory chip foodstuff in 2003. DRAMs were previously used in PCs, but their share declined from 80% to 67% between 1990 and 2003.Telecom & consumer electronics were growing consumers of DRAMs in 2003. Communications products were expected to grow from 3. 5% to 7. 9% in 2008 while TVs, set-top boxes, game devices such as Play station represented 7% of international market in 2003. In 2003, SRAM, a type of buffer memory which facilitated computer processing & mobile phone functionality, accounted for 10% of the industry sales and Flash memory, used in heavy digital cameras & mobile phones, is a hot growth area and account for 32% of the industry sales. The memory industry contained powerful suppliers and price conscious customers.Over time technology grew more complex and suppliers became more concentrated. plainly 2-3 main players do minated the key segments of equipment market. Suppliers of memory raw materials provided discounts of up to 5% for high-volume buyers. Customers were more fragmented with no single OEM controlling more than 20% of global PC market. Memory represented 4-12% of total PC material cost and 4-7% of mobile phone material cost. There was an intense competition in market but OEM would pay upwards of 1% average premium for a reliable supplier.In 2005 industry faced fierce rivalry and large-scale entry by Chinese firms. Samsung proclaimed a decline in market prices of its abscissionting edge technological products in late 2004 but Chinese firms competing in old product lines traded off profit margins for market share. Chinese competitors had an easy access to local finance and talented local engineers but it lacked Organizational skills & used honest-to-goodness technology. MAJOR COMPETITORS The major competitors of Samsung in 2005 were Elpida Memory Inc (Japan) Established as a joint ven ture between NEC and Hitachi.It produced memory products for mobile devices & consumer electronics goods. In 2004, it announced that it would start the construction on its 12 inch water fab work. Hynix Semiconductor, Inc. (S. Korea) founded in 1983 as Hyundai Electronics. It changed is name to separate itself from financially troubled Hyundai Group. During 1996 cyclical downturn the company dramatically increased its capital exp finaleiture but in 1999 when market began to expand Hyundai had no resource to increase its capital expenditure and it end up in decreasing its capital expenditure.In 1999 Hyundai acquired LG Semiconductor which resulted in more debt burden which together with the next cyclical doenturn brought the company at the verge of floating-point operation in 2001-02. A multibillion-dollar bailout allowed the company to survive. It then entered into a joint venture with ST Electronics. Infineon Technologies AG Germany- ground company which spun off from Siemens. In recent years, it entered into the product purchase & qualification agreement with Taiwan-based DRAM manufacturer, Winbond. It likewise entered into the joint venture with Nanya Technology to build a new plant in Taiwan.In 2005, it had more than 25 R&D locations around the globe. Micron Technology It is Idaho-USA based company founded in 1978, Acquired Texas Instruments, plants in Texas, Italy, Japan, &Singapore. It purchased Dominion Semiconductor from Toshiba and is backed by Intel. Nanya Technology Corporation It is the fifth-largest DRAM, Taiwan based manufacturer. In 1998 it purchased DRAM technology from IBM. Nanya and Infineon formed a joint venture named Inotera producing 256Mbit DRAM starting in June 2004. Semiconductor Manufacturing International Corp. SMIC) Established in 2000 and headquartered in Shanghai, China. It took designs from other firms and produced chips based on blueprints. In 2003, SMIC signed agreement with Infineon & and later with Elpida to license techno logy to SMIC in exchange for purchasing rights to much of the output. It also bought production facility from Motorola. COMPANY OVERVIEW In 2005 it was the largest conglomerate (called Chaebol) in South Korea. The total net sales of the group had reached $135 billion in 2004. In 2004 the goup had 337 oversea operations in 58 countries and employed 212,000 people worldwide.Three core business sectors were Electronics, Finance, and Trade & Services. Samsung Electronics was established in 1969 to manufacture black-and-white TV sets. At the end of 2004 the company had $78. 5 billion net sales, $66 billion in assets, 113,000 employees. The company brand value increased from $5. 2 billion in 2000 to $12. 6 billion in 2004. In 2005 Samsung consisted of five business divisions 1) Digital Media TV, AV, Computers 2) Telecom 3) HDTV 4) Digital Appliances and 5) Semiconductor Business. DEVELOPMENT OF MEMORY BUSINESSKoreas semiconductor industry started its wafer production in 1974. Kun Hee Lee , third son of Samsung Groups founder Byung Chull Lee, bought Korea Semiconductor Company, using his own personal savings. Samsung Electronics was a producer of low-end consumer electronics goods. Kun Hee Lee integrated the two companies to create global powerhouse. First semiconductor produced was the watch chip, used in wristwatches. From 1983 to 1985, even as global semiconductor market went into a receding & Intel left the DRAM business, Samsung allocated more than $100 million to DRAM development.At that time cost to produce 64K DRAM was $1. 30, market price below $1. 00. in mid(prenominal) 1980s Samsung built its introductory large manufacturing facility. To accomplish fast-paced construction, a target was set to build 4-kilometer road in 1 day to fool production equipment. Kun Hee Lee was made Chairman when father retired. Since 1992, semiconductors had been South Koreas largest trade. In 2004, exports totaled to $25. 1 billion that is 10. 4% of the countrys export volum e. Samsung Group exported 22% of Koreas exports.Samsung Group represented 23% of total market value at the Korea Stock Exchange. TECHNOLOGY DEVELOPMENT To design its first 64K DRAMs in 1980s with outside help the company found Micron in the US which accepted cash payment in exchange for article of faith Samsung how to produce 64K DRAMs. To develop frontier technology for next generation DRAM, Samsung used internal competition across global R&D localizes. The company employ one aggroup composed primarily of Korean-Americans with experience in semiconductor industry and located that team in California.A similar Korean-Americans team was located in S. Korea it was required to compete & collaborate and come up with its own solution. California team won competition for designing 256K DRAM while Korean team won competition for next generation 1Mbit technology. Due to market situations Hitachi took the lead and Samsung came to second Hitachi in the market. Early 1990s, Samsung decided to increase the size of wafers used to cut the DRAM chips to eight inches to become number 1 again and they were first to do so.They invested $1 billion towards mastering the new technology and became number 1 again in 1992 and retained leadership for 13 years. PRODUT MIX In 2003, Samsung offered 1,200 distinct variations of DRAM products. Products ranged from frontier products (512Mbit DRAM) at the cutting edge of technology to bequest products (64Mbit DRAM). Within each product generation there were specialty products as well. Prices for new-generation products were high for a few quarters before plunging rapidly. Legacy products became high-value niche products.In 2004, Samsung also sought to create some advantages in Flash memory for digital cameras & camera phones. Because market expected to grow at double-digit for another five years in Flash memory while DRAMs would experience a single digit growth and Flash price were high relative to that of the DRAM. DESIGN AND proceeds Unlike its competitors, Samsung created new uses for DRAMs. It launched new DRAM products with product-specific applications, for laptops, personal game players etc. Many of them shared a common core design.Even two seemingly different architectures, DDR DRAM & Rambus DRAM shared the same core design. Samsung main R&D facility and fab lines were located at a single site near Seoul whereas, competitors facilities were scattered across the globe. The benefit was of collocation and scale of fab which saved them an average of 12% of construction cost. At Samsungs elementary campus, R&D engineers & production engineers lived in the same company-provided housing. Samsung prided itself on the reliability of its products & ability to customize products.But in 1980s & 1990, Samsung was producing poor quality products. Thus in 1994, Lee wrote a book that was delivered to all employees and explained how the Group had lost sight of quality & argued that employees must now think of quality firs t. The result of this effort was that by the late 1990s, Samsung was routinely winning key industry competitions for reliability and process. Samsung developed new Flash memory chip for Sony Ericsson & chip customized for Nokia. HUMAN RESOURCE POLICIES It was considered forbidden at Samsung to ask a coworker about his or her university or place of origin.Prospective employees were given aptitude test covering language skills, mathematical knowledge, reasoning, & space perception. As a result of more meritocratic evaluation system, younger, high-potential, English-speaking managers were quickly promoted up the hierarchy. Samsung also place programs to invest in employees global business skills. Samsung claimed to earn invested more in its employees that any other competitors in this industry. They also hired westerners & other foreign talents. According to the Chairman of the company, At Samsung, we reward outstanding performance we do not punish failure.This is my personal philos ophy and belief. STRATEGIC CHALLENGES In 2005, company faced new challenges from Chinese entrants who were attacking the DRAM market in the way Samsung did 20 years ago. These Companies were using partnerships with Infineon & Elpida with billions of dollars in outside financing to build state-of-art production facilities. Chinese producers have patience to endure years of losings to gain significant market share. China lacked critical infrastructure for cutting-edge semiconductor industry but the Government s firmly committed to subsidizing all infrastructure needs around Shanghai and Beijing.

Can You Find Me Now

How is a Nintendo Wii game console able to determine the stance of a Wii Remote while a constituteer interacts with a game? The answer is triangulation, a process that determines the location of any object by meter the angles from 2 or much fixed points. Surveyors often use triangulation to measure distance. Starting at a known location and elevation, surveyors measure a continuance to create a family line and then use a theodolite to measure an angle to an unknown pint from each side of the base line (Jains, 2012, pp. 30-48).The length of the base line and the two known angles allow a computer or person to determine the location of a tercet point. Similarly, the Nintendo Wii game console uses triangulation to determine the location of a Wii Remote. A player places a sensor bar, which contains two infrared transmitters, near or on eyeshade of a television. While the player uses the Wii Remote, the Wii game console determine the remotes location by calculating the distance an d angles between the Wii Remote and the two transmitters on the sensor bar.Determining the location of a Wii Remote is relatively simple because the sensor bar contains only two fixed points the transmitters. A more complex application of triangulation occurs in a global positioning system (GPS). A GPS consists of one or more earth-based receivers that accept and analyze signals sent by satellites to determine a receivers geographic location.GPS receivers, found in handled navigation devices and many vehicles, use triangulation to determine their location relative to at to the lowest degree three geostationary satellites. According to Sanders, the geostationary satellites are the fixed points in the triangulation formula (Understanding Satellites and Global Positioning Systems). The next time you pass a surveyor, play a Nintendo Wii, or follow a route suggested by a vehicles navigation system, keep in mind that none of it capacity have been possible without the concept of triangul ation. ?

Arranged marriages Essay

I find it tough to see how anyone could possibly approve of pose joins. In an ordered marriage, the bride and groom atomic number 18 selected by a third party rather than each other. Arranged marriages are most common in the Middle East and parts of Africa and Asia however with 55% of marriages in the world being arranged- you would be akinly to find roles of arranged marriages anywhere you go. There are many different types of arranged marriages which follow all different rules and traditions to ensure it goes smoothly, but none of these allow you to pick the right partner yourself. I fate to put my personal views across, my view that arranged marriages are and always will be a violation against human rights. The main formula for life goes something like have a childhood, get an education, get a job, have children, and grow old. However, many people following that formula tend to do something extreme, involuntary perchance fall in love. People in love will want to spend t he rest of their life with the person they love, and the most logical way of ensuring this is through and through marriage. Marriage is a commitment shared between two people, a legal contract binding them together for life. How fanny people want to deal in such commitment with someone, they hardly know, let alone love?If a marriage is arranged by someone else, then it isnt establish on the grounds of which most marriages take line love. Call me a romantic, but a marriage without love sounds like a very troublesome, difficult thing. By having your wedding arranged by someone else, this is taking away your free will and further much denying you of the natural emotion of love. This is one of lifes many rare experiences, and I think every human should be guaranteed the free ability to get to know someone, fall in love, and as a result, get married. Through arranged marriage, you are agreeing to commit your life to someone whom you dont know much about, by doing this, you are choosi ng to dedicate your strong entire life to a person who may turn out to be nothing like you expect.Furthermore, not everyone in the world is genuine, and a contend of people would arrange a marriage for their children or someone close to them with their own selfish concerns in mind. In under-developed countries, where lots ofpeople live in poverty, some parents will choose to marry off their children to people of a higher social status increasing their own honour and wealth, and the happiness of the parents may overshadow the childrens. As much as this could be an easy escape from a hard life we must consider the effects this could have on the people getting married. Their spouse isnt being picked to suit them so without common interests etc- there is a poor chance the meet will get on, which will then lead to an unhappy marriage and perhaps a hard life, taking the person in a humiliated marriage back to square one.Subsequently, arranged marriages can have a massive impact o n someones life before, during, and after the marriage takes place. Perhaps you may be the unlucky one and because you dont truly know the person you are marrying will be exposed to a variety of problems which may be hard to escape. Some of these problems range from abuse, violence and forced sexual relationships, to name just a few. A case in the media not too long ago bears witness to a twelve year old bride (her wedding arranged) who died after struggling for three days in labour to give birth. This type of marriage is appalling, and disgusting within itself but exposing girls to this at such a young age is absolutely repulsive and I have no idea how this can be legal. A Nationwide survey in 2005 showed that half of marriages in rural India involved brides younger than 18 the age of consent. This lifestyle is leaving so many young girls with no real hope for life outside of marriage, with a lot of cases contracting terrible diseases such as HIV and aids. Also most of these y oung girls have to give up their education to write down a lifestyle they are not ready for, leaving them neglected with deprivation of choice. How can they escape this living nightmare? How could their parents be so cruel?However, many people would choose to differ with me. Especially if youre brought up in a culture where having your marriage arranged is a common procedure, and this is all you have ever known. Despite the points I made earlier, there may be some parents who want whats best for their children and providing they are older and wiser, less likely be impulsive in the decisions they make. Also, this may decrease any risk of family problems orstruggles. Our familys opinions matter very dearly to us, and if they are choosing that you marry a specific person, this must sloshed they approve of them. This means keeping your family, community, culture and tradition happy, whilst bringing two families together as one. Also, we must remember that much of modern day arranged m arriages are different from traditional arranged marriages, where the participants have no say at all. Many of the arranged marriages these days allow the couple to have unattended dates and get to know one another before the marriage some arent so strict.Even so, many disapproved arranged marriages still take place through blackmail or worse and this needs to stop. The divorce rate for arranged marriages is also much lower (around 4-6%, 10 times less than convention marriages) but whether this is due to happy marriages or more to do with the fact that they arent allowed to get divorced- remains unseen. To come to a conclusion, the cons of arranged marriages overweigh the pros by miles for me. I think they are an unnatural disgrace to this life, which we are supposed to be allowed free will in. Marriage is supposed to be based on commitment, love, kernel and attraction this being impossible to achieve without the chance to choose the person you want all this with. Dont marry t he person you think you can live with marry the individual you cant live without. this quote from James C Dobson highlights the purpose of marriage, being not just a chance to live with each other, but a chance to ensure your love is secure for life. People are selfish, its a part of our spirit we cant escape it. Our self-centred nature is the type that means our own purposes come before others, perhaps even our childrens.Making people enter a marriage with the wrong person will leave them feeling suffocated in a relationship that might, not even, make their lives worth living. A case brought into the press has recently brought forward an 8 year old child bride that boldly went by herself to court and demanded a judge to dissolve her marriage to a man in his thirties. If that doesnt show how disgraceful and sick arranged marriages are, then this earth surely has so sympathy or care for anyone more unfortunate than us. If an 8 year old girl can stand up for herself to defend her r ights of marriage, surely the rest of us can at to the lowest degree have the heart to disagree with such a horrific, shameful matter which is all arranged marriages are.Shelley Bruce, Fraserburgh AcademyWord Count 1259Bibliographyhttp//www.indiabix.com/group-discussion/love-marriages-vs-arranged-marriages/ http//www.womensweb.in/articles/love-marriage-vs-arranged-marriage/ http//www.goodtherapy.org/blog/burdens-and-benefits-of-arranged-marriages-0412137 http//www.statisticbrain.com/arranged-marriage-statistics/http//www.debate.org/opinions/are-arranged-marriages-better-than-marrying-for-love (Un)arranged Marriage Bali Raihttp//www.nytimes.com/2013/01/20/fashion/weddings/parental-involvement-can-help-in-choosing-marriage-partners-experts-say.html?pagewanted=all&_r=0 http//www.rljewels.com/home/love-marriage-arrange-marriage.html

Precise Software Case Analysis

PRECISE SOFTWARE CASE ANALYSIS Problem When and how to gain an lengthways new product to the trade? Issues 1. Should we (accurate) introduce a new product in Open World conference 2000? What could be the impact if we ensure to offer an end-to-end solution in the deed addressment space? 2. What is the best exchangeing dodging for the new product? 3. What is the best pricing strategy for the new product? 4. Should we principal(prenominal)(prenominal)tain a single sale force or separate sale force dedicated to the new product? What descriptor of commissions and how much authority should we set up for the sales force regarding to the new product? 5.How can we save up the value of the new product to meet our client expectation and solve our customer problems? 6. How to grow and compete in order to be a leader in the market on a much broader level? Industry/Market summary Database management softwargon referred as performance management market where efficiency and effectivene ss are really important. thither are a lot of opportunities due to the need of IT system from the companies. Nearly every company in the industrialized world spent a fundamental amount of money every year on software purchases ranged from $99 to $10million. The software market estimated to be $4. billion in 2003 compare with $2. 4billion in 1999. However, the market was fragmented. Products were differentiated principally in two ways. On one hand, products differed widely in terms of underlying resources and platforms with they are associated. On the other hand, available products to a fault differed in terms of the working(a)ity they offered. There are few major competitors in this market and the industry need high intensive labor cost. It usually takes languish time to develop new product in this industry. Effective advanced technology and product, which can solve the problem for the companies, are very important to succeeder in the industry.Time is another important key to de termine whether commercialised enterprise will success or fail. Companies in this industry should improve their technology quickly to take up the ever-changing information technology trend as well as dig the problems of the companies to present the right problem-solve products. One of the largest segments of the market was for software to manage the performance of Oracle databases. A true end-to-end market seemed to be quite large and there was no current direct competition because no(prenominal) of the companies offered an end-to-end solution yet. Consumer AnalysisDatabase administrators (DBA) are the main targets for Precise. The former usually are well trained thus capable of recognizing the products value. Many DBAs were important to purchase a product range under $25,000. Precise looked for companies had sales of at least 100million and had a business model that required database-intensive applications. DBA need to repute to the CIO and need to improve the job performance in order to make performance application efficiently as well as satisfy the business unit head. They are usually budget-limited when they purchase the product.IT Reliability and effectiveness are the other main factor outs to concern for users. Regarding to the end-to-end management tool service, business firms exploitation enterprise-wide applications have a desired demand. They require the enterprise applications such as ERP and CRM, which were 10million and above. The applications were distributed across many locations and highly data intensive. Firms depended critically on the ability to deliver information quickly, will be the main targets for the new end-to-end product. Competitor Analysis The three biggest competitors in the software market were Oracle, BMC Software, and Quest Software.Oracle is provides Oracle Optimizer as a part of its basic database portion helped to execute SQL statement it received in the most efficient fashion and also offer an add-on package to hel p measure efficiency. BMC Software has a large range of products. Its revenue grew rapidly since 1998 and Patrol Product line, which target on performance management and handiness market, provided timely and accurate data. Quest Software offered around 25 different products, with some of the functions offering products relevant to Precise. Marketing Mix Analysis A) Product AnalysisPrecise offered the software that helped its clients to manage the performance of their information technology (IT) systems. Precise is in the performance management and availability market. Its products are designed to manage the performance applications utilizing Oracle database. The company had focus on a undersize range of core products but provided users high quality that promised. Precise offered the software license and services. The main products were insight products, SQL and Presto. Precise/SQL accounted for 86% of all Precises software licensing fees.The company has strong trained account reps with very strong relationships with key clients. lengthwise response time is extremely important to ensure the system ran efficiently and effectively. All of the available products focused on the performance of each of the components of the system. The sales cycle per second is 6 to 12 months on average. Precise realized from the feedback of its consumers that they should provide right solutions to its clients rather than the products. However, a full-functionality end-to-end performance tool needs a extensive time to be developed.Its going to take six and nine months to get a basic product with purely monitoring only. The fully functional product will accomplish in 2 years. B) Price Analysis It has one-time license fee with annual maintains and service contracts, priced 15%-20% of the one-time licensing fee. Average price of Precise /SQL had been between $15,000 and $25,000. Precise often offered discounts around 25% which allowed sales force to sell the product easier as well as DBAs can make their purpose easily to purchase without approve by the CIO. In addition, price can be varied greatly depending on the customers and other factors.They charged more for higher-powered calculation environments, which means the price is based on the value that the customers receive from the performance management. C) Distribution Analysis There are three common channels for distributing commercial software applications such as direct sales, value-added resellers (VCRs), and systems integrators. VCRs and systems integrators earned a margin of somewhat 30-35% on the software sales. And original equipment manufacture (OEM) agreement is popular in smaller niche areas. Precise sells its products through a duel-channel distribution system.Internationally, the company sells through both VARs and system integrators in most countries. 17 account executives are hired to do direct sell and also sell through distributors in most countries, and each is paid a salary of $75,000 and a 5%-9% rate high commission. The average sale of each rep is $800,000 annually and earned $300,000 for the highest. Therefore, the operating expenses are extremely high (sales and marketing is 35% of the fit operating expense) and made the operating loss since 1996. About 55% of its revenue comes from the direct channel and 45% come from the resellers.Precise had a client list of about 400 companies and each sale rep was well trained to sell the products. D) Promotion/ Advertising Analysis Reps in Precise are the main factor in selling the products. Precise purchase industry lists with the names and phone numbers of key contacts in the target firms and give it to reps. Reps can call the main clients and meet them and try to keep a good relationship with the people who make decisions. Reps are high motivated and professional to sell the products because of related preparation and high commission strategy.They have an effective sales tool that reps can offer to put the product on the potential buyer clients system to demonstrate what the product would do. In addition, Precise conducted a survey of ten Precise/SQL clients drawn from a range of different business to pass off main benefits of their products and able to generate an expected ROI for the purchase. Options A) To put in a new product in 2000 ROI Analysis Pros To be the first one get into the end-to-end market and to be able to announce the new product in the conference with many motivated and qualified prospects gathered in the room at one time. Precise will become a much broader level brand. Gain more revenue at the beginning with no competition so far in the market. Cons New products will attract competitors to get in the market. There is not enough time for reps to be trained properly to sell the products. If the new product cannot satisfy the clients, it will destroy the brand image as well as make competitors catch up and run all over the Precise. The new product can only be general ly available at this time. There will be much more problem and risks.B) To launch after fully-functional Pros Have much more possibility to satisfy customers with fully functional product in term of effectively and efficiency Its reps will be fully trained to get ready to contribute in selling the new products If consumers satisfied with the products, Precise will be a leader in the market and increase its profits in the long-term. Cons Competitors may launch a similar new product in this market before Precise. A small range of the products may slow down Precise to be a real broader level brand

The Jungle Essay

The Jungle Throughout Upton Sinclairs novel, The Jungle, the inhumane and disgusting treatwork forcet the working workforce and women was shown to the eyes of the American people. Although what the guard is most recognized for is creating the Pure Food and Drug Act, an act that gave consumers protection from dangerous and impure foods, the m whatsoever various horrors the lower working material body had to go through was something that deserved more recognition. Upton Sinclairs novel, The Jungle, gives an insight on how it was nearly impossible for someone of lower class to work and survive in the various big cities in America.The Jungle is about a family from Lithuania who travels to America in hope of a better life. When they first arrive things immediately come out to go downhill. The fist start they stop is a hotel, they stay for a night, entirely unfortunately are unable to read English and sleep thither without knowing in that respect will be a very large fine for thei r stay. The law says that a rate card sh tout ensemble be on the inlet of a hotel, only if it does not say that it shall be in Lithuanian. (23) The next morning theyre devastated and quickly pay and leave, learning that the people in this rude will do anything for a quick buck.Soon they reach their destination, Chicago, and Jurgis and his family began to search for a home, and jobs. They buy a house, but soon find out there is a lot more to the house than what meets the eye, much(prenominal) as interest and the fact that the house is only rented until they can pay it off. After moving in Jurgis begins a job at the meat factory, and it was anything but pleasant. Jurgis job is to sweep the entrails and calves from cows into a trapdoor in the floor. Many people are at risk of injury every day, working with sharp knives and there was always almost a foot of blood on the floor.It is disgusting and wretched work, but Jurgis does it with a smile on his face because he thinks at least I have a job, but as the story goes on, Jurgis opinion begins to deepen drastically. Jurgis father, Antanas wanted to get a job, and he finally did at the meat factory, as A squeedgie man. His job was to go about all day with a long handled mop, swabbing up the floor. (60) After one day he comes butt complaining about how he had to clean out the trapdoors and then compact all the junk in with the rest of the meatHE also works with chemicals and they are very bad for him. he worked in a place where his feet were soaked in chemicals, and it was not long before they had eaten through his new boots. Then sores began to break out on his feet and grew worse and worse. (76) Soon he dies and the family must(prenominal) prepare a funeral for him, Jurgis cant even find the time to grieve because he is too busy emphasizeing to barter the funeral man for a lower price. It is a horrible loss, and winter just continues to bring more hard-foughtships for the family.First, with the horrible and huge quantities of snow, it is almost impossible to do the two mile trek every day to get to their job, but even when they get there the horrible conditions dont end. There was no heat upon the killing beds the men might exactly as well have worked out of doors all winter On the killing beds you were apt to be covered with blood, and it would freeze cheering if you leaned against a pillar, you would freeze to that, and if you pull your hand upon the blade of your knife, you would run a chance of leaving your skin on it.The men would tie up their feet in newspapers and old sacks, and these would be soaked in blood and frozen, and then soaked again, and so on, until by nighttime a man would be walking on great lumps the size of the feet of an elephant. Now and then, when the bosses were not looking, you would see them plunging their feet and ankles into the steaming hot carcass of the steer, or darting across the room to the hot-water jets.The cruelest thing of all was that nea rly all of them all of those who used knives were unable to wear gloves, and their arms would be white with frost and their hands would grow numb, and then of course there would be accidents. (80) The men had to work in those horrible conditions day after day until winter was over, but none of them would quit, they needed the money and if they quit or demanded better conditions, there were thousands outside just waiting to take their place.Mister Sinclair shows that even though the working conditions were so dreadful, not one man would stop coming to work. They would rather risk dying in the factories, or dying from frostbite as they trekked through the snow than stop coming to work and allow someone else to take their job, because back then that was suicide. If you didnt go to work you were allowing your family the possibility of not being able to survive the winter, because its just less money to fill more mouths. The horrible hardships the family faces in the winter is merely the beginning of their problems.As the book goes on things seem like theyre looking up, Ona has her baby, which they name Antanas, and the family is working hard to make money. Then Jurgis breaks his ankle and cannot return to work for months. in leaping out of the way he turned his ankle. There was a twinge of pain, but Jurgis was used to pain, and did not coddle himself. When he came to walk home, however, he realized that it was hurting him a great deal and in the morning his ankle was fruitless out nearly double its size, and he could not get his foot into his shoe. (114) Jurgis is laid up for a couple weeks and tries to return to work, but in doing this he injures himself more and has to stay out of work for much longer and when he returns there is no job left for him. Jurgis faced many other hardships in his life, such as being put in jail, his wife dying in childbirth and his son dying as well. His story was horrific, but he was unfortunately, not alone. The horrible conditi ons Jurgis faced and went through were the problems of thousands of men, women and even children all over America in the early 1900s.Upton Sinclair shines a bright light on how horrible the people had it and how the upper class people didnt even notice or care. The main issue was to generate as much product as they could for as small of a cost as possible. Then people from various countries didnt know anything about rights and things like they, they just craved any job they could get, no matter how bad. Many of their family members also died from work, or other things like starvation, childbirth or simply like Antanas died by downing in the rivers of water that flowed through the streets in the spring.Mr. Sinclair did an amazing job giving the people insight on how horrible the conditions really were, although people mainly focused on the disgusting conditions of the meat packing industry. Upton Sinclair definitely focused on how horrible the lower class had it, but his horrific det ails about what is really put into everyday meat, was quite disturbing and the people must have been more shocked about what they were putting into their mouths, than who was working to do it. The Jungle is a book about hardships, the American dream and the struggle for survival.Jurgis was an example of what almost everyone who came over to America experienced. A lucky few went on to do great things, such as Andrew Carnegie, a man from Scotland who went on to create the largest steel factory in the world, but the latter ended up like Jurgis. Risking it all, and ending up with nearly nothing. Jurgis came over with ten people, and in the end there were five. Half of his family had died, and coping with it was hard, but in the end he decided to buck up, and try and make the best of it.Upton Sinclair allows the human race to reflect on what is really important in life, by showing that there are people in this world who have to go through every day without knowing if they will make enoug h money to keep themselves and their family alive into tomorrow. He sincerely yours captured and chronicled how horrific and devastating the conditions back then really were, and being able to reflect on the things of they past can truly give insight for the future.

Marketing Mistakes and Successes

ELEVENTH mutation merchandising MISTAKES AND SUCCESSES 30TH ANNIVERSARY Robert F. Hartley Cleveland democracy University JOHN WILEY & SONS, INC. VICE PRESIDENT & PUBLISHER EXECUTIVE EDITOR at playant EDITOR PRODUCTION MANAGER PRODUCTION ASSISTANT EXECUTIVE merchandising MANAGER ASSISTANT MARKETING MANAGER MARKETING ASSISTANT DESIGN DIRECTOR SENIOR DESIGNER SENIOR MEDIA EDITOR George H shootman Lise toiletteson Carissa DoshiDorothy Sinclair languor Winslow Amy Scholz Carly DeCandia Alana Filipovich Jeof Vita Arthur Medina Allison Morris This phonograph recording was set in 10/12 bleak Caledonia by Aptara, Inc. and printed and bound by courier/Westford. The c all everyplace was printed by Courier/Westford. This keep back is printed on acid- stark paper. Copyright 2009, 2006, 2004, 2001, 1998, 1995, 1992, 1989, 1986, 1981, 1976 John Wiley & Sons, Inc. All rights reserved.No part of this issuance may be reproduced, stored in a retrieval system or transmitted in what ever so form or by any means, electronic, mechanical, photocopying, recording, s hind endning or otherwise, except as permitted under Sections 107 or 108 of the 1976 unify States Copyright Act, with go forth all(prenominal) the prior written permission of the Publisher, or authorization through stipend of the appropriate per-copy fee to the Copyright Clearance Center, Inc. 222 Rosewood Drive, Danvers, MA 01923, website www. copyright. com. Requests to the Publisher for permission should be address to the Permissions Department, John Wiley & Sons, Inc. 111 River alley, Hoboken, NJ 07030-5774, (201)748-6011, fax (201)748-6008, website http//www. wiley. com/go/permissions. To order books or for customer service please, call 1-800-CALL WILEY (225-5945). depository library of Congress Cataloging in Publication Data Hartley, Robert F. , 1927 marketing mistakes and successes/Robert F. Hartley. 11th ed. p. cm. Includes index. ISBN 978-0-470-16981-0 (pbk. ) 1. Marketingjoined StatesCase studi es. I. Title. HF5415. 1. H37 2009 658. 800973dc22 2008040282 ISBN-13 978-0-470-16981-0 Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 PREFACEWelcome to the 30th anniversary of Marketing Mistakes and Successes with this 11th edition. Who would crap thought that interest in mistakes would be so enduring? Many of you are past maprs, a hardly a(prenominal) in cartridge h aged(a) for decades. I hope you pass on find this fresh edition a worthy successor to earlier editions. I speak up this may even be my shell book. The in the buff Google and Starbucks cases should arouse keen student interest, and may even inspire a nonher generation of enterprisers. A fair number of the older cases have faced earthshaking changes in the survive few age, for better or for worse, and these we have captured to add to reading insights.After so many a nonher(prenominal) years of investigating mistakes, and more(prenominal) juvenilely successes give carewise, it might come uponm a contest to keep these new editions fresh and interesting. The joy of the chase has arrive this an intriguing endeavor through the decades. Still, it is always difficult to waste interesting cases that have steamy student discussions and provoked useful insights, entirely newer case possibilities are ever contesting for inclusion. modelings of good and bad handling of problems and opportunities are forever emerging. further some(prenominal) judgment of convictions we bring back an oldie, and with updating, surpass upon a new perspective.For new users, I hope the book will meet your full expectations and be an effective instructional tool. Although case books abound, you and your students may find this somewhat unparalleled and very read find outted, a book that house help transform dry and rather remote concepts into practical reality, and lead to lively correct discussions, and even debates. In the gentle environment of the classroom, students stomach hone t heir analytical skills and alike their persuasive skills non selling products unless selling their ideasand uphold them against critical scrutiny. This is large practice for the arena of business to come.NEW TO THIS EDITION In contrast to the early on editions, which examined in all when illustrious mistakes, and comprise on your favor fitted comments closely recent editions, I have again include some well-known successes. While mistakes provide invaluable learning insights, we can alike learn from successes and find nuggets by comparing the un thriving with the successful. With the addition of Google and Starbucks, we have locomote entrepreneurial Ad menaces up to the front of the book. We have leadd Marketing Wars, which many of you recommended, and reinstated Comebacks of immobiles iii iv inaugu footstep ising from disappointment. I have also brought back Ethical Mistakes, because I believe that organizations more than ever take aim to be responsive to societ ys best interests. low-pitchedgether, this 11th edition brings sevensome new cases to put back seven that were deleted from the previous edition. Some of the cases are so current we continued updating until the manuscript left-hand(a) for the production process. We have tried to keep all cases as current as possible by using Postscripts, Later Developments, and Updates. A number of you have asked that I identify which cases would be appropriate for the traditional overage of topics as organized in typical marketing textual matters. With approximately cases it is not possible to sincerely compartmentalize the mistake or success to merely one topic. The patterns of success or failure tend to be more pervasive. Still, I think you will find the dramatizeing classification of cases by example matter to be helpful. I thank those of you who made this and other suggestions. Classification of Cases by Major Marketing Topics Topics Most Relevant Cases Marketing Re attempt and Consume r Analysis Coca-Cola, Disney, McDonalds, Google, Starbucks ProductStarbucks, Nike, snowfall/Pepsi, McDonalds, Maytag, Dell, Hewlett-Packard, Newell Rubbermaid, DaimlerChrysler, Kmart/Sears, Harley-Davidson, Boeing/Airbus, Merck, Boston Beer, Firestone/ get over, Southwest, MetLife, Borden, United Way, new waveguard, Continental, Euro Disney Distribution Nike, Coke/Pepsi, Newell Rubbermaid, Harley-Davidson, Vanguard, Starbucks, Kmart/Sears, Hewlett-Packard, Dell Promotion Nike, Coke/Pepsi, Maytag, Vanguard, Merck, Boston Beer, Kmart/Sears, Harley-Davidson, Borden, MetLife, HewlettPackard, Southwest Air, Google, Starbucks PriceContinental, Southwest, Vanguard, Starbucks, Boston Beer, Dell, Euro Disney, Newell Rubbermaid, Boeing/Airbus, McDonalds Non-product Google, United Way, Disney, Southwest, Continental worldwide Euro Disney, Boeing/Airbus, Harley-Davidson, Maytag, DaimlerChrysler, Firestone/Ford, Dell, Hewlett-Packard, Nike, Coke/Pepsi, Starbucks, McDonalds Customer Relations Newell Rubbermaid, Vanguard, Maytag, Harley, Merck, Firestone/Ford, Starbucks, United Way, Nike, MetLife Social and Ethical Starbucks, Merck, Firestone/Ford, United Way, MetLife Outsourcing Boeing/Airbus, Maytag, Nike, DellPreface v TARGETED COURSES As a supplemental text, this book can be used in a variety of undergraduate and graduate consorts. These range from introduction to marketing/marketing principles to courses in marketing precaution and strategic marketing. It can also be used as a text in inter farmingal marketing courses. Retailing, entrepreneurship, and ethics courses could use a number of these cases and their learning insights. It can certainly be used in breeding programs and even appeal to nonprofessionals who are looking for a good read about well-known firms and personalities. education AIDSAs in previous editions, you will find a plethora of teaching aids and discussion real within and at the end of each chapter. Some of these will be common to some(pren ominal) cases, and embellish that certain successful and unsuccessful practices are not unique. Information Boxes and Issue Boxes are included in each chapter to highlight relevant concepts and issues, or related information, and we are even testing Profile Boxes. acquisition insights help students see how certain practicesboth errors and successescross fraternity lines and are prone to be either traps for the unwary or success modes.Discussion Questions and Hands-On Exercises encourage and stimulate student involvement. A recent pedagogic feature is the Team Debate Exercise, in which formal issues and options can be debated for each case. New in some cases are Devils Advocate exercises in which students can argue against a proposed course of action to test its merits. A new pedagogical feature, based on a reviewers recommendation, appears at the end of the Analysis section students are asked to make their own analysis, draw their own conclusions, and defend them, thereby having an opportunity to stretch themselves.In some cases where there is con facial expressionrable updating, a new feature invites students to quantify the Latest Developments. Invitation to Re look to suggestions allow students to take the case a step further, to investigate what has happened since the case was written, both to the alliance and even to some of the individuals refer. In the final chapter, the various learning insights are summarized and classified into planetary conclusions. An Instructors Manual written by the author accompanies the text to provide suggestions and regardations for the pedagogical stuff and nonsense within and at he ends of chapters. ACKNOWLEDGMENTS It seems fitting to acknowledge everyone who has provided encouragement, information, advice, and constructive criticism through the years since the beginning(a) edition of these Mistakes books. I hope you all are well and successful, and I truly appreciate your contributions. I apologize if I have mis sed anybody, and vi Preface would be grateful to know much(prenominal)(prenominal)(prenominal) so we can rectify this in future editions. I welcome updates to present affiliations. Michael Pearson, Loyola University, New siege of Orleans Beverlee Anderson, University of Cincinnati Y. H. Furuhashi, Notre Dame W.Jack Duncan, University of AlabamaBirmingham Mike Farley, Del Mar College Joseph W. Leonard, Miami University (OH) Abbas Nadim, University of New Haven William ODonnell, University of Phoenix Howard Smith, University of New Mexico James Wolter, University of Michigan, heartless Vernon R. Stauble, California State Polytechnic University Donna Giertz, Parkland College Don Hantula, St. Josephs University Milton Alexander, Auburn University James F. Cashman, University of Alabama Douglas Wozniak, Ferris State University Greg Bach, Bismark State College Glenna Dod, Wesleyan College Anthony McGann, University of Wyoming Robert D.Nale, Coastal Carolina University Robert H. Votaw, Amber University Don Fagan, Daniel Webster University Andrew J. Deile, Mercer University Samuel Hazen, Tarleton State University Michael B. McCormick, Jacksonville State University Neil K. Friedman, Queens College Lawrence Aronhime, John Hopkins University Joseph Marrocco, Boston University Morgan Milner, Eastern Michigan University Souha Ezzedeen, Pennsylvania State University, Harrisburg Regina Hughes, University of Texas Karen Stewart, Stockton College Francy Milner, University of Colorado Greg M.Allenby, Ohio State University Annette Fortia, Old Westbury Bruce Ryan, Loyola Jennifer Barr, Stockton College Dale Van Cantfort, Piedmont University Larry Goldstein, Iona University Duane Prokop, Gannon University Jeff Stoltman, Wayne State University Nevena Koukova, Lehigh University Matthew R. Hartley, University of California, Berkeley Cindy Claycomb, Wichita State University Pola Gupta, Wright State University Joan Lindsey-Mullikin, Babson College. Also Barnett Helzberg, Jr. f the S hirley and Barnett Helzberg Foundation, and my colleagues from Cleveland State University Ram Rao, Sanford Jacobs, Andrew Gross and Benoy Joseph. From Wiley Judith Joseph, Kimberly Mortimer, Carissa Marker. Robert F. Hartley, prof Emeritus College of Business Administration Cleveland State University Cleveland, Ohio R. emailprotected EDU ABOUT THE AUTHOR Bob Hartley is Professor Emeritus at Cleveland State Universitys College of Business Administration. in that respect he taught a variety of undergraduate and graduate courses in management, marketing, and ethics.Prior to that he taught at the University of Minnesota and George capital of the United States University. His MBA and Ph. D. are from the University of Minnesota, with a BBA from Drake University. Before coming into academia, he spent thirteen years in retailing with the predecessor of Kmart (S. S. Kresge), JCPenney, and Dayton-Hudson and its Target subsidiary. He held positions in store management, interchange buying, a nd merchandise management. His initial textbook, Marketing Management and Social Change, was published in 1972. It was a intellect of its time in introducing social and environmental issues to the study of marketing.Other books, Marketing depotamentals, Retailing, Sales Management, and Marketing Research, followed. In 1976 the first Marketing Mistakes book was published and brought a new approach to case studies, making them student-friendly and more relevant to travel sweetener than existing books. In 1983, Management Mistakes was published. These books are now in the eleventh and ninth editions, respectively, and have been wide translated. In 1992 Professor Hartley wrote Business Ethics Violations of the Public Trust. Business Ethics Mistakes and Successes was published in 2005. He is listed in Whos Who in America, and Whos Who in the World. ii This page intentionally left blanched CONTENTS Preface About the Author Chapter 1 base fall in I ENTREPRENEURIAL ADVENTURES Chapter 2 Chapter 3 Chapter 4 Google An entrepreneurial road roller Starbucks A Paragon of growing and Employee Benefits Finds Storms Boston Beer Is Greater Growth Possible? 29 46 PART II MARKETING WARS 61 Chapter 5 Chapter 6 Chapter 7 Cola Wars Coca-Cola vs. Pepsi PC Wars Hewlett-Packard vs. Dell Airliner Wars Boeing vs. Airbus and Recent Outsourcing Woes 63 86 PART III COMEBACKS Chapter 8 Chapter 9 Chapter 10 McDonalds Rebirth Through ModerationHarley-Davidson Creating An Enduring Mystique Continental Airlines Salvaging From the Ashes PART IV MARKETING perplexity MISTAKES Chapter 11 Chapter 12 Borden Letting Brands Wither United Way A Nonprofit Tries to Cope with number Destruction DaimlerChrysler A Merger Made in Hades Newells Acquisition of Rubbermaid Becomes an Albatross Euro Disney fumbling a Successful Format Maytag An Incredible Sales Promotion in England and Outsourcing Kmart and Sears A Hedge Fund Managers Challenge Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 iii septet 1 9 11 103 127 129 147 161 175 177 190 203 220 233 251 67 ix x Contents PART V NOTABLE MARKETING SUCCESSES 281 Chapter 18 Chapter 19 Chapter 20 Southwest Airlines Success Is Finally repugn Nike A Powerhouse Brand Vanguard Is Advertising Really Needed? 283 302 319 PART VI respectable MISTAKES Chapter 21 Chapter 22 Chapter 23 Mercks Vioxx Catastrophe and Other Problems MetLife Deceptive Sales Practices Ford Explorers with Firestone Tires A Killer Scenario Ill Handled 335 351 Conclusions What We Can Learn 380 Chapter 24 Index 333 365 400 CHAPTER ONE mental institution A t this writing, Marketing Mistakes has passed its thirtieth anniversary. Who would have thought?The first edition, back in 1976, was 147 pages and included such(prenominal) long-forgotten cases as Korvette, W. T. Grant, Edsel, Corfam, Gilbert, and the Midi. In this eleventh edition, seven cases from the tenth edition have been dropped, and seven added, several of these creation modified from earlier editions . Other cases have been updated, and in some instances reclassified. Two exciting new entrepreneurial cases, Google and Starbucks, are introduced, and the entire Entrepreneurial Ad hypothesiss moved to the front of the book as weaken I. I think your students will find these cases contingently interesting and even inspiring.The popular Marketing Wars is again included, this time as offset II, and it follows major competitors in their furious struggles. Two new parts have been added from older editions Part III Comebacks, and Part VI Ethical Mistakes. In response to your feedback, the section on notable successes has been continued. Some cases are as recent as to solar days headlines several bland have not come to complete resolution. A few older cases have been continued or brought back. For example, Borden last appeared in the ninth edition, but some of you thought the learning insights were important plenteous to reintroduce the case.We continue to seek what can be learnedinsi ghts that are transferable to other firms, other times, other moorages. What lynchpin featureors brought monumental mistakes to some firms and resounding successes for others? Through such evaluations and studies of contrasts, we may learn to improve batting averages in the intriguing, ever-challenging art of finis making. We will encounter organizational deportment cycles, with an organization growing and prospering, then failing (just as humans do), but occasionally resurging. Success rarely lasts forever, but even the most dear mistakes can be (but are not always) overcome.As in previous editions, a variety of firms, industries, mistakes, and successes are presented. You will be familiar with most of the organizations, although believably not with the details of their situations. We are always on the sentinel for cases that can bring out certain points or caveats in the art of marketing decision making, and that divide a balanced view of the spectrum of marketing probl ems. The goal is to present examples that provide 1 2 Chapter 1 Introduction somewhat different learning experiences, where at to the lowest floor some aspect of the mistake or success is unique. Still, we see mistakable mistakes occurring time and again.From the prevalence of such mistakes, we have to wonder how much decision making has really progressed over the decades. The contend is still there to improve it, and with it marketing efficiency and career advancement. Let us then consider what learning insights we can gain, with the benefit of hindsight, from examining these examples of successful and unsuccessful marketing practices. LEARNING INSIGHTS Analyzing Mistakes In looking at sick companies, or even healthy ones that have experience difficulties with certain parts of their trading operations, it is tempt to be overly critical. It is easy to criticize with the benefit of hindsight.Mistakes are inevitable, softened the present state of decision making and the dyna mic environment facing organizations. Mistakes can be categorised as errors of omission and of commission. Mistakes of omission are those in which no action was taken and the status quo was contentedly embraced amid a changing environment. Such errors, often characteristic of conservative or stodgy management, are not as obvious as the other category of mistakes. They seldom involve tumultuous upheaval rather, the unions competitive position slowly erodes, until management finally realizes that mistakes having monumental impact have been allowed to happen.The firms fortunes often never regain their former luster. Mistakes of commission are more spectacular. They involve headfirst decisions often based on faulty research, miserable planning, misdirected execution, and the like. Although the costs of eroding competitive position imputable to errors of omission are difficult to calculate precisely, the costs of errors of commission are often fully evident. For example, with Euro Di sney, in 1993 alone the loss was $960 billion from a poorly planned venture it improved in 1994 with only a $366 one one thousand thousand million million loss.With Maytags overseas Hoover Division, the costs of an incredibly bungled sales procession were more than $300 million, and still counting. Then there was the monumental acquisition of Chrysler by Germanys Daimler, manufacturer of proud Mercedes, for $36 billion in 1998. After nine tumultuous years, Daimler gave up and sold Chrysler to a cloistered fair-mindedness firm in 2007 for only $7. 4 billion. Although they may make mistakes, organizations with sharp managements follow certain patterns when confronting difficult situations 1. Looming problems or present mistakes are quickly recognized. 2.The causes of the problem(s) are cautiously determined. 3. Alternative restorative actions are evaluated in view of the phoners resources and constraints. 4. Corrective action is prompt. Sometimes this requires a unmerciful ax ing of the product, the division, or whatever is at fault. Learning Insights 3 5. Mistakes provide learning experiences. The same mistakes are not repeated, and future operations are consequently strengthened. Slowness to recognize emerging problems leads us to think that management is incompetent or that witnesss have not been established to provide prompt feedback at strategic control points.For example, a declining competitive position in one or a few geographical areas should be a red flag that something is amiss. To wait months before investigating or taking action may mean a permanent loss of business. Admittedly, consecrateals sometimes get mixed, and complete information may be lacking, but procrastination is not easily defended. Just as problems should be quickly recognized, the causes of these problems the why of the unthought resultsmust be determined as quickly as possible. It is premature, and rash, to take action before perspicacious where the problems really lie. Returning to the previous example, the loss of competitive position in one or a few markets may reflect circumstances beyond the firms immediate control, such as an belligerent new competitor who is drastically cutting tolls to buy sales. In this situation, all competing firms will likely tolerate market piece, and subaltern can be make except to stay as competitive as possible with determines and servicing. However, closer investigation may reveal that the erosion of business was due to unreliable deliveries, poor quality control, noncompetitive prices, or incompetent sales staff.With the cause(s) of the problem defined, various alternatives for dealing with it should be regularise and evaluated. This may require further research, such as obtaining feedback from customers and from field personnel. Finally, the decision to correct the situation should be made as objectively as possible. If drastic action is needed, there usually is little rule for delaying. Serious proble ms do not go away by themselves They tend to fester and manufacture worse. Finally, some learning experience should result from the misadventure. A vice president of one successful firm told me,I search to give my subordinates as much decision-making experience as possible. Perhaps I err on the side of delegating too much. In any case, I expect some mistakes to be made, some decisions that were not for the best. I dont come down too hard usually. This is part of the learning experience. yet God help them if they make the same mistake again. There has been no learning experience, and I interrogatory their competence for high executive positions. Analyzing Successes Successes deserve as much analysis as mistakes, although admittedly the sine qua non is less than with an emerging problem that requires quick remedial action.Any analysis of success should seek answers to at least the following questions Why Were Such Actions Successful? Was it because of the nature of the environm ent, and if so, how? Was it because of event research, and if so, what and how? 4 Chapter 1 Introduction Was it because of particular engineering and/or production efforts, and if so, can these be adapted to other operations? Was it because of any particular element of the strategysuch as service, promotional activities, or distribution methodsand if so, how, and is it transferable to other operations? Was it because of the specific elements of the strategy meshing well together, and if so, how was this achieved? Was the Situation Unique and Unlikely to Be Encountered Again? If the situation was not unique, how can these successful techniques be used in the future and defended against competition? ORGANIZATION OF THIS handwriting In this eleventh edition we have modified the classification of cases somewhat from earlier editions. As mentioned before, Part I, Entrepreneurial Adventures, describes and analyzes well-known recent endeavors.In Part II, Marketing Wars, we examine t he actions and countermoves of archrivals in hotly competitive arenas. Part III, Comebacks, studies trinity firms that faced adversity, and came back better than ever. In Part IV, Marketing Management Mistakes, we delve into seven firms guilty of a variety of mistakes that offer great learning insights. Part V, Notable Marketing Successes, offers paragons of successful marketing strategies and operations. Finally, in Part VI, Ethical Mistakes, we examine leash firms whose mistakes had major ethical and legal consequences.Let us briefly describe the cases that follow. Entrepreneurial Adventures Google is arguably the most outstanding successful new enterprise ever. It was pieceed by Sergey Brin and Larry varlet who dropped out of Stanfords Ph. D program to do so. With its search engine, it raised advertize to a new level targeted frequentize. In so doing, it spawned a host of millionaires from its rising investment party prices and origin options and made its two founders so me of the richest Americans, just under posting Gates and Warren Buffett. How did they do it?Starbucks is also a rapidly growing new firmnot as much as Google, but still greatand a credit to founder Howard Schultzs vision of transforming a prosaic product, coffee, into a epicurean coffee house experience at luxury prices. Boston Beer burst on the microbrewery scene with Samuel Adams beers, higher priced even than most imports. Notwithstanding thisor maybe because of itBoston Beer became the largest microbrewer. It proved that a small entrepreneur can compete successfully against the giants in the industry, and do this on a national scale. Marketing WarsPepsi and Coca-Cola for decades competed worldwide. usually Coca-Cola won out, but it could never let its guard down however, it recently did so in Europe. at present a Organization of this Book 5 trend toward noncarbonated beverages along with Pepsis non-drink diversifications is swinging the impetus to Pepsi. besides Coca-Col a is trying hard to recover. Dell long dominated the PC market with lowest-prices, direct-to-consumer marketing. Hewlett-Packard, the worlds second biggest figurer maker, chose Carly Fiorina, a charismatic visionary, to be its CEO, and she engineered a merger with Compaq. provided appendage in profitability did not follow, and early in 2005, the board fired Fiorina. Mark Hurd, an operational person, replaced her, and brought the company to PC dominance. still Michael Dell is fighting back. Boeing long dominated the worldwide commercial aircraft market, with the European Airbus only a peanut player. A series of Boeing blunders, however, coupled with an aggressive Airbus, brought market shares close to parity. Both firms are now introducing strikingly new planes, but are finding problems with their outsourcing key components to foreign suppliers.Comebacks McDonalds had long dominated the fast-flying regimen restaurant market. Then it began to falter, and hungry competitors made inroads into its competitive position. As it fought to regain its momentum, it explored diversifications and ever more store openings, while profitability plummeted. Recently, it found a new formula for profitable growth. In the early 1960s, Harley-Davidson dominated a static motorcycle industry. Suddenly, Honda burst on the scene and Harleys market share dropped from 70 percent to 5 percent in only a few years.It took Harley nearly three decades to revive, but now it has created a mystique for its heavy motorcycles and gained new customers. And its Rallies are something else again. The comeback of Continental Airlines from extreme adversity and de giganticated employee morale to become one of the best airlines in the country is an achievement of no small moment. New CEO Gordon Bethune brought marketing and human relations skills to one of the most rapid turnarounds ever, overcoming a decade of clamant adversarial labor relations and a reputation in the pits.Marketing Management Mi stakes Borden, with its enduring symbol of Elsie the Cow, was the countrys largest producer of dairy products. On an acquisitions binge in the 1980s, it became a diversified food processor and traffickerand a $7 billion company. But Borden allowed consumer acceptance of its many brands to wither through unrealistic pricing, unable(p) advertising, and an unwieldy organization. United Way of America is a nonprofit organization. The man who led it to become the nations largest charity perceived himself as virtually beyond authority.Exorbitant cut downing, favoritism, conflicts of interestthese went without criticism until investigative reporters from the Washington Post overtized the scandalous conduct. With its public image plummeting, contributions nationwide drastically declined. The real concern was whether United Way could ever regain its former luster. 6 Chapter 1 Introduction The merger of Chrysler with Daimler, the huge German firm that makes Mercedes, was supposed to be a merger of equals. But Chryslers management quickly found otherwise, and the top Chrysler executives were soon replaced by executives from Germany.Assimilation and coordination problems plagued the merger for years. Nine years later(prenominal), Daimler sold Chrysler to a private equity firm for tens of billions of dollars less than it paid. Newell, a consumer-products firm, successfully geared its operations to meet the demands of giant retailers, especially Wal-Mart, whereas Rubbermaid had in recent years been unable to meet those stringent requirements. In 1999, Newell acquired Rubbermaid, confident of turning its operation around, only to find that Rubbermaids problems were not easily corrected and that they negatively impacted Newells fortunes as well.What do you do now? In April 1992, just outside Paris, Disney opened its first theme part in Europe. It had high expectations and supreme self-confidence (critics later called it arrogance). The earlier Disney parks in California , Florida, and more recently japan were all spectacular successes. But rosy expectations became a delusion as marketing miscues finally showed Disney that Europeans, and particularly the French, were not carbon copies of visitors elsewhere. The problems of Maytags Hoover subsidiary in the United Kingdom almost concur reason.The subsidiary planned a promotional campaign so generous that the company was overwhelmed with takers it could neither proviso the products nor grant the prizes. In a miscue of multimillion-dollar consequences, Maytag had to foot the bill while trying to appease acerb customers. What can we learn from Maytags travails? Two faltering retail chains, Kmart and Sears, merged under the auspices of a hedge fund manager, Edward Lampert. Whether two weaklings could become one strong operation to compete with the likes of Wal-Mart and Target was uncertain, though investors bid both stocks up to extravagant levels in anticipation.The rosy expectations collapsed as we m oved into a niche in 2007 and 2008. Notable Marketing Successes Southwest Airlines found a strategic window of opportunity as the lowest cost and lowest price carrier between certain cities. And how it milked this opportunity Now it peril major airlines in many of their domestic routes. However, by 2008, competitors were beginning to counter Southwests price advantage. Nike and Reebok were major competitors in the athletic footwear and apparel market. Nike was overtaken by Reebok in the late 1980s, but then Nike surged far in the lead, never to be threatened again.What is the undercover of Nikes increasing dominance? Vanguard has become the largest mutual fund company, charging past Fidelity. Vanguards strategy is to downplay marketing, shunning the heavy advertising and overhead of its competitors. It provides investors with better returns through far lower expense ratios and relies mostly on condition of mouth and unpaid publicity to General Wrap-Up 7 gain new customers, whi le old customers continue to well out in money. Is Vanguard vulnerable to aggressive new competitors? Ethical MistakesMerck, the pharmaceutical giant, learned that its blockbuster arthritis drug, Vioxx, treble the risk of a heart attack or stroke. Over five years and $500 million in advertising, it had 20 million users in the United States at the time it recalled the drug September 30, 2004. Critics and civil wrong lawyers assailed the company for waiting so long to recall this drug, since some research studies as early as five years before had raised questions about the safety of Vioxx. What can we learn from Mercks handling of its great profit-making drug now discredited?The huge insurance firm MetLife, whether through loose controls or tacit approval, permitted an agent to use deceptive selling tactics on a grand scale, in the process enriching himself and the company. Investigations by several state attorneys general brought a crisis situation to the firm that it was slow to move to. crimsontually, fines and lawsuits totaled almost $2 billion. Product safety lapses that result in injuries and even loss of life are among the worst abuses any company can confront. Worse, however, is when such risks are allowed to continue for years.Ford Explorers equipped with Firestone tires were involved in more than 200 deaths from tire failures and vehicle rollovers. After news of the accidents began surfacing, Ford and Firestone each deuced the other for the deaths. Eventually, inept crisis management brought a host of lawsuits resulting in massive recalls and billions in damages. GENERAL WRAP-UP Where possible, the text depicts major personalities involved in these cases. Imagine yourself in their positions, confronting the problems and facing choices at their points of crisis or just-recognized opportunities.What would you have done differently, and why? We invite you to participate in the discussion questions, the handson exercises, the debates appearing at the ends of chapters, and the occasional devils advocate invitation (a devils advocate is one who argues an opposing viewpoint for the sake of testing the decision). There are also discussion questions for the various boxes within chapters. While doing these activities, you may feel the excitement and challenge of decision making under conditions of uncertainty. Perhaps you may even become a fast-track executive and make better decisions.QUESTIONS 1. Do you agree that it is impossible for a firm to avoid mistakes? Why or why not? 2. How can a firm speed up its awareness of emerging problems so that it can take corrective action? Be as specific as you can. 8 Chapter 1 Introduction 3. Large firms tend to err on the side of conservatism and are slower to take corrective action than smaller ones. Why do you suppose this is? 4. Which is likely to be more dearly-won to a firm, errors of omission or errors of commission? Why? 5. So often we see the successful firm in conclusion losing its pattern of success.Why is success not more enduring? PART ONE E N T REPREN E U R I A L A D V EN T UR E S This page intentionally left blank CHAPTER TWO GoogleAn Entrepreneurial Juggernaut I n 1998 Sergey Brin and Larry summon dropped out of the Ph. D program at Stanford to start Google in a friends garage. Along the way, they discovered a powerful marketing tool that would revolutionize advertising. sixer years later, on August 19, 2004, they took this Internet search and advertising firm public at a price of $85 a share. whiz year after the initial public offering (IPO), Google stock closed at $280.By 2007, the stock had gone over $700, and mounts of people had become very rich. But this was to cause some serious concerns for the firm. Brain Drain Craig Silverstein, a fellow Stanford Ph. D student, was the first remove of Page and Brin. He helped them move their equipment out of Pages dorm room and into a place with more space and, more importantly, a garage. In early 1999, fi ve months later, the enterprise had grown enough to move into offices on University Avenue in business district Palo Alto. The firms fortunes continued to improve, and Craig became director of engineering in charge of product development.Before many years, Craig realized he had become very rich indeed. From the beginning, Google gave its employees stock options in lieu of competitive salaries that in those days it could ill afford. These options gave employees the right to purchase a habituated number of shares of stock at a certain price, called a vested price, some years in the future. Even before going public in 2004, it had granted two big batches of such options. A 2002 grant that was priced at 30 cents a share vested in 2006. Another, priced at $4 a share in 2003, also vested in 2006.In May 2008, another round of options would be exercisable at $35, far more costly than the 30 cent option, but the way the stock was going up since the IPO, this higher price was of little conse quence. By 2007, Craig was worth well over $100 million in Google stock and was becoming richer with every passing day. He knew that some 700 of his associates were worth at least $5 million, and he knew that many of them were talk about quitting, with some wanting to start their own businesses. He knew that Bismarck Lepe, for example, who began working 11 12 Chapter 2 GoogleAn Entrepreneurial Juggernaut or Google in 2003, had left the firm immediately after his four-year options vested in 2007. He now had a few million dollars that would help him start his own firm2 million in only four years, wow Craig couldnt help pondering whether he should do the same. After all, how many hundreds of millions does one man need? But he did not really see himself as an entrepreneur. At his young age, about the same age as Sergey and Larry, he was not urinate to retire to some South Sea island and count coconuts. So he stayed, caught up in the challenge of solving tough problems with other smar t Googlers. Making the brain drain all the more tempting for many of these employees was Googles hiring of the brightest young people, the very ones most likely to become entrepreneurs, if given the chance. Their ambitions fed on the great example of Google, as well as a plethora of smaller enterprises in this hotbed of renewal that was Silicone vale with its great research universities such as Stanford. SERGEY BRIN AND LARRY PAGE AND THE START OF GOOGLE In 1998 when the venture that was to be Google was only an idea, Sergey and Larry were both 25 years old and were doctoral students at Stanford.Sergey was a math whiz, having completed his undergraduate degree at 19, and aced all ten of the required doctoral exams on his first try, and teamed easily with professors doing research. His parents backgrounds were rich in science and applied science. His mother was a scientist at NASAs Goddard Space pip Center. His father, Michael, taught math at the University of Maryland. Sergey wa s born in Moscow, but he and his family left the Soviet Union when he was six, fleeing anti-Semitism and seeking greater opportunity for themselves and their children.Larry Page grew up in Michigan, also the son of a professor whose Ph. D was calculator science, and who taught at Michigan State University where Larrys mother also taught computer programming. He followed in the footsteps of his father and brother by going to the University of Michigan where he studied computer engineering, receiving his undergraduate degree in 1995. At first he had felt uneasy about being one of the select few to be admitted to Stanfords elite Ph. D program. In those early days, these sons of esteem professors were focused on pursuing their Ph. Ds, not on getting rich. In their families, nothing trumped the value of a great education. Neither of them had the slightest idea just how soon their heartfelt commitment to academia would be tested. 2 The line In the mid-1990s, the Internet was just emer ging. Millions of people were logging on and communicating through email. But researchers grew frustrated with the clutter of Web sites. Searching it for relevant information often resulted in an abundance of completely meaningless data. Search engines began to organize the Internet, and thus Yahoo and AltaVista among others were born. But they still left a lot to be 1 2Examples can be found in Quentin Hardy, Close to the Vest, Forbes, July 2, 2007, pp. 4042. David A. Vise, The Google Story, New York Delacorte, 2005, p. 31. Sergey Brin and Larry Page and the Start of Google 13 desired. The answer to more relevant research seemed to be a better use of inter-group communications, such as a highlighted word or phrase. In 1996, Page and Brin teamed up to work on downloading and analyzing Web links. In the process they developed a ranking system for searching the Internet that yielded prioritized results based on relevance to the object of the search, and useful answers could be found swiftly.In 1997, they made the search engine useable to students, faculty, and administrators on the Stanford campus, and popularity grew by word of mouth. As the database and number of users burgeoned, more computers were needed. In these early days, Brin and Page were able to scrounge around for unused computers and string together inexpensive PCs. By July 1998, they had an index of 24 million pages, with more coming. But their growth was stymied by lack of capital. They decided to take a leave of absence from the Ph. D program and start their own firm.This way they could develop a business of their own that would fit their search engine. If it was as good as they thought, and with Internet use growing so rapidly, growth could be virtually unlimited. Rather than selling out to some existing firm, wouldnt they be better off keeping control? Still, by August they had run out of cash and badly needed an angel. One of their professors suggested they meet his friend, Andy Bechtolshei m, a legendary investor in a string of successful start-ups. After listening to their presentation, he said, This is the single best idea Ive heard in years.I want to be part of this, and he left them a check for $100,000 made out to Google Inc. 3 It took them two weeks before they could formally represent the company, Google Inc. , and then open their first bank account. The check sustained the two entrepreneurs at first, and in fall 1998 they moved their computers from a dorm room into a garage and several rooms of a house. They also leased a friend, Craig Silverstein (mentioned earlier), as their first employee. After five months they outgrew the garage and moved into offices in downtown Palo Alto, barely a mile from the Stanford campus.By now, their search engine was handling 100,000 queries a day, all this through word of mouth, emails, and instant messages. But they were again running out of money, notwithstanding the now $1 million in musical accompaniment that they had c ollected from Bechtolsheim and other early investors, and through borrowing on their credit cards. But it was percipient that with upward of 500,000 searches per day toward the end of the year, they needed much more money. In the boomtown climate of Silicon Valley in early 1999, a public stock offering was one option, even though Google had no profits.But Brin and Page resisted this option, not wanting to reveal their trade secrets and lose some control. Efforts to license their search technology to other firms wishing to use it for research, found few takers. Eventually they went the venture capital route. But Brin and Page insisted on keeping control of Googles destiny and remain majority owners, or it was no deal. On June 7, 1999, less than one year after they left Stanford, they issued a press release announcing that two venture capital firms, Kleiner Perkins and Sequoia Capital, were investing $25 million in Google.On the Stanford campus and around Palo Alto, amazement reigned at the exorbitance of the sum seemingly without the two giving anything up in return. The announcement included details of the funding as well as additional information about Google, its impressive list of investors, and its growth 3 Vise, p. 48. 14 Chapter 2 GoogleAn Entrepreneurial Juggernaut rate of 50 percent per month. All this put the company in the global limelight, giving it the opportunity to grow further through free media publicity. 4 But Google still had not earned any appreciable receipts to upport its heady growth, and no plan for this was revealed in the press release. THE EARLY GROWTH YEARS By the end of 1999, Google was averaging 7 million searches per day, but its revenue from licensing remained small. If the business could not be reasonably profitable, they could hardly maintain their vision of vast information unattached to users without charge. With licensing its search technology to businesses proving to be such a limited revenue source, they finally were forced to consider allowing advertisers access to their multitude of users.Brin and Page could see a relationship between their search engine and the television networks those offered enjoyment and news for free, while charging millions for the advertising. But the two shuddered at the flashy banner ads that littered the Internet. Still, they recently recognized that advertising was where vast sums were being spent, not in licensing, Creating a Different Advertising illustration They wanted to avoid the clutter of almost out-of-control, irrelevant ads, and they developed strict standards for size and type of ads.They set-apart the free search results from the ads, which they would label Sponsored Links. These Links, because of their relevance to the search, would be clicked on more often than if they were labeled but Ads. They decided to display the links in a clearly marked box above the free search results. The ads would be brief and look identical, with just a headline, a short description, and a link to a web page. But these would be targeted ads, offering a major advantage for advertisers confronted with the huge wastage of advertising reaching uninterested audiences.At first Google sold this advertising to large businesses that could afford expensive ad campaigns, but it soon found substantial market potential in letting smaller advertisers easily sign up online with a credit card, and their ads could then be running within minutes. This gave Google an edge over similar providers unable to offer such fast service, and also minimized its own costs of selling advertising. briefly after turning to its advertising model, Brin and Page had another innovative ideathey would rank ads based on relevance.And relevance would be determined by how often ads were clicked on by computer users. This would provide valuable feedback to advertisers and influence the selling and pricing of ads. CHARGING AHEAD When the Internet stock price bubble burst in 2000, it ravaged the former highflying entrepreneurial firms of Silicone Valley with major layoffs and bankruptcies. But Google stood poised at the nadir of its great growth to come and was one of 4 Vise, p. 69. Charging Ahead 15 the few firms able to hire outstanding software engineers and mathematicians, many holding worthless stock options.This pool of talent stimulated Googles growth as it moved to a large plate in business deal View, named the Googleplex, 40 minutes south of San Francisco. There Brin and Page developed a work environment practically unprecedented. cover the following Information Box for some examples of this culture that was designed to cultivate strong loyalty and product line satisfaction and to foster a creative, playful environment where Googles employees, mostly young and single, would be impulsive to spend their waking hours. By early 2001, Google was recording 100 million searches per day.It was also entering the lexicon as a verb, as for example, to goog le each other before dates. Now large firms, such as Wal-Mart, the worlds biggest retailer, and Acura, a major automobile manufacturer, joined the entourage of firms advertising their wares on Google. What was the secret behind the rapid growth of Googles advertising program? As we saw before, Google came up with an unique approach to advertising, an INFORMATION misfortune WORK CLIMATE AT GOOGLE Employees worked long hours but were treated like family. There was even a gourmet chef, with free meals, healthy drinks and snacks.The chef took pride in providing better meals than found in area restaurants. Given the international mix of employees, the menu was varied to cater to all tastes Southwestern, clean Italian, French, African, Asian, Indian, etc. The argue Street Journal sent a reporter out to investigate. Where else but the Plex can you zip around on a bicycle and choose from multicultural comfort food, American regional food, small plates, entrees made with five ingredients or less, and dishes based on raw materials supplied from within 150 miles of Mountain View?Many employees eat three meals a day at the Plexs 17 food venues, open any time day or night. . . . We were told that Messrs. Brin and Page chow down with the troops. (Raymond Sokolov, Googling Lunch, Wall Street Journal, December 12, 2007, pp. W1 and W5. ) Also furnished were such conveniences as on-site laundry, hair styling, dental consonant and medical care, a car wash, day care, fitness facilities with personal trainers, and a professional masseuse. Brightly sorry medicine balls, lava lamps, assorted gadgets and sports equipment gave the appearance of a college campus.Chartered buses had internet access so that commuters to San Francisco could use their laptops. Social events and entertainment were Friday afternoon and evening features. As a spur for creativity, a policy was set that software engineers spend at least 20 percent of their time, or one day a week, working on whatever proj ects interested them. Do you see any downside to these workplace amenities? Would these influence your choosing to work for Google disdain less money? Would some of these be appropriate to other firms? If so, what kind of firms? 16 Chapter 2 GoogleAn Entrepreneurial Juggernaut pproach that most advertisers previously could only dream of i. e. , Targeted Text Ads. The unobtrusive ads are seen only by potential customers who are searching for information on that specific topic. In one swell coast this advertising virtually eliminates the great waste of most mass media advertising that is viewed by a vast audience who have no interest whatever in the product being advertised despite millions and hundreds of millions of dollars being spent. For an example of the waste of such untargeted ads, consider an airline spending $1 million or more on a TV ad campaign that gains only 100 new first-class mail customers as a result. Furthermore, in Google-placed ads no intrusive banners compete for attention. The text ads (links) and websites are read carefully by users or potential users, and these often find the ads as valuable as the actual search results. A New CEO In early January 2001, at the urging of its venture capitalists, Larry and Sergey reluctantly consented to hire a chief executive officer to run operations. Eric Schmidt was highly recommended by one of the venture capitalists. He not only had entrepreneurial experience as founder of Sun Microsystems, and CEO of Novell, but also academic credentialsa Ph.D in computer science from the University of California at Berkeley, and a degree in electrical engineering from Princeton. Then there was research experience at Xerox Palo Alto Research Center and Bell Labs. At 46, he was a seasoned tech executive and brought a needed mature balance to this organization of young people. Besides, he was willing to invest $1 million of his own money to buy preferred stock in Google, this at a time when the company was running short of cash again. (It would soon never again run short of cash. ) Google entered into pacts with Yahoo, AOL, EarthLink, and Ask Jeeves.This gave it relationships with most of the biggest Internet properties. By the end of 2002, Google and its venture capitalists could see that the search engine was going to be a huge financial success. For the year, it had recorded $440 million in sales and an amazing $100 million in profits. Virtually all of these profits came from people clicking on the text ads that were on the right side of search results pages at Google. com and the pages of its partners and affiliates. But the world did not realize the extent of this profitability since Google was still a private company.This silence about the profitability of the online search and advertising business model undoubtedly kept other firms, especially Microsoft and Yahoo, from investing in or developing search engines of their ownuntil Google had an almost insurmountable head start. The advert ising industry was being transformed as well, as billions of dollars of advertising was being shifted from television, radio, newspapers, and magazines to the Internet. But the time was nearing for Google to go public, and with this full disclosure would shock the investment community and make Google stock the darling of investors and employees alike. Example cited in Seth Godin, Your Product, Your Customer, Forbes, May 7, 2007, p. 52. Going Public 17 GOING PUBLIC Finally in early 2004, Larry and Sergey reluctantly started the process of taking Google public. In truth, their decision was practically dictated by federal official rules that required public disclosure of financial results by companies with a substantial amount of assets and shareholders, and Google had exceeded these limits with many of the company employees having been given stock in the then-private firm. This move would enable them to convert their holdings to cash.The venture capitalists who had supplied the early crucial money would also benefit from the liquidity that going public would provide. For most entrepreneurs, taking their new firm public was the ultimate goal since the IPO (initial public offering) would often make them instant millionaires. But for Brin and Page, the reality of being billionaires was not all that appealing. They both lived relatively modestly, loved the privacy, and cared little for the accumulation of wealthiness and the accoutrements of wealthsuch as grand homes, planes, and yachts to attest to their success.The company was debt free, self-funded, had plenty of cash, and had no need to sell stock to the public to raise money. They were not sure they wanted the immense publicity and what it would entail and affect the freedoms they had enjoyed, and that of their families. For example, would they need bodyguards? How about the paparazzi? And their employees who would become instant millionaires, how would this affect their intensity and focus? And would they e ven stay with Google, or go out on their own? (We know that many left to start their own enterprises. In early 2004, the employees were piano told that the company was going to file a public offering. And thousands of Google employees, spouses, and interested others began an eight-month guessing game of how much the company and themselves would be worth. The eight months proved to be a stressful time for almost all concerned, but probably most of all for Brin and Page. Their reluctance to disclose much before the public auction did not endear them to the media. Then an ill-advised Playboy interview did not go well and even triggered a SEC investigation.To make matters worse, the stock market was tanking as world oil prices spiked, and many analysts were warning of a global recession. Also, the Athens Olympics were starting amid great fears of terrorism. Google and its bankers realized that the initial price range of $108$135 would probably not be acceptable to the market at this ti me, and on August 19, Google finally went public at $85 a share. By the end of the first day, the stock had reached nearly $100. By the next day it was $108. It reached $200 in November and kept climbing from there.Forbes, in its listing of the 400 Richest Americans cited Brin and Pages wealth at $4 billion each at the end of 2004, due to the success of the IPO. Then in 2006, The Google Guys crack the top 10 of the Forbes 400, each now worth $18. 5 billion. This placed them as the fifth richest Americans, in the company of Bill Gates and Warren Buffett, ahead of Michael Dell of Dell Computer, and way ahead of Donald Trump. And they were both only 34. 6 6 Forbes, Forbes 400 The Richest People in America, October 8, 2007, p. 78. 18 Chapter 2 GoogleAn Entrepreneurial Juggernaut AFTER THE IPOAfter the IPO, the pace of innovation at Google got into high gear. New products and innovations were being spawned and made addressable to millions of customers around the world. Google became the darling of the media no other firm or individual got the press coverage of Google. The fact that it was now a public company with its financial performance readily availableand as such now well covered by financial analysts who did not cover private firmsmade its lustrous results and potential very visible. It expanded the lead in its core search and advertising business in the United States and much of the world.And with its new cash horde, it eagerly branched out into new areas, even such far out visions as a Green renewable-energy program to find ways to generate electricity more cheaply than by burning coal. 7 Not surprising, the growth of Google was being comparisond with that of Microsoft two decades earlier. Google was also becoming a major competitor of Microsoft, not in PCs, but in a later phase of technology that was surpassing the earlier technology, this time by the power of the Internet revolution. But possibly the real competition was in recruiting and retainin g the brightest technology minds in the world.But more about this later. For now, let us compare this early growth of Google with Microsoft in the Information Box beginning on page 19. Googles poach of Talent As the business burgeoned in the spring and summer of 2005, Google added more than 700 employees in just three months. The total headcount now was 4,183, nearly double the total the previous year. Google was hiring Ph. Ds from the top universities across the country, and even trespassing on Microsofts own neighborhood, at the University of Washington.It opened a facility in a Seattle suburb just down the road from Microsofts Redmond plant, and now it was easy for their engineers and scientists to move over to Google. They didnt even have to move to a new city or change their commute. In these days, Microsoft was viewed as a mature business. It no longer had the sex appeal that Google had grasped. Microsoft was struggling to keep its best people, even offering more money and pe rks. But the amazing growth and potential of Google brought the lure of great riches as stock options became valuable.As mentioned before, not the least of the perks that Google offered were the free restaurants and other amenities at its Googleplex headquarters in the Silicone Valley 40 minutes south of San Francisco. The increasing poaching of talent climaxed with Dr. Kai-Fu Lee, a highly regarded scientist, who wanted to leave Microsoft to become president of Google China. Microsoft began an all-out legal assault alleging that Google improperly desire to induce Lee to violate the terms of his employment contract with Microsoft. A temporary triumph over Google raised the specter of litigation for any senior Microsoft employee who left for Google.The wide publicity served to illustrate how severely Microsoft regarded the threat posed by its smaller rival. 8 7 Rebecca Smith and Kevin J. Delaney, Googles Electricity Initiative, Wall Street Journal, November 28, 2007, p. A16. 8 Vise , p. 274. Analysis 19 ANALYSIS Here we have seen perhaps the greatest growth ever of a new enterprise. In the exuberance of this growth, investors bid up its stock market price to make the company more valuable than such long-established firms as Coca-Cola, Hewlett-Packard, Time Warner, AT&T, Boeing, Disney, McDonalds, and General Motors and Ford.INFORMATION BOX COMPARISON OF MICROSOFT AND GOOGLE Table 2. 1 Comparison of Microsoft and Google Growth in Revenues from Their Beginnings Microsoft Beginning Went Public Years from Beginning 1975 1986 11 years Revenues (millions) 1986 1987 1988 1989 1990 1991 1992 Google Y/Y Growth $ 1996 2004 8 years 40. 7% 75. 1 70. 1 36. 0 47. 3 55. 8 49. 7 197 346 591 831 1,183 1,843 2,759 1996 28,365 32,187 36,835 39,735 44,282 Y/Y Growth $ 409% 233. 9 117. 5 92. 5 72. 8 9. 400 2002 2003 2004 2005 2006 Revenues (millions) 13. 5 14. 4 7. 9 11. 4 439 1,466 3,189 6,138 10,605Source Calculated from company annual reports. gossip The much faster start of Google is mind-boggling. The experts thought Microsoft was the model of the most successful entrepreneurial start ever. Bill Gates did not rush to take his venture public, waiting 11 years to do so, at which time revenues were almost $200 million. Google on the other hand delayed only six years before going public, but its revenues were already over $3 billion. As we can see, the year-to-year growth rate also strongly favored Google, with around a hundred percent growth since 2004. The two years before going public showed growth over 400 percent and 200 percent each year. ) The comparison between a young growth company and a mature Microsoft is clearly evident. (continues) 20 Chapter 2 GoogleAn Entrepreneurial Juggernaut COMPARISON OF MICROSOFT AND GOOGLE (continued) Table 2. 2 Comparison of Microsoft and Google Net Income from Their B