Reactivity of M-C bonds and catalytic formation of heterocycles Essay

Reactivity of M-C bonds and catalytic formation of heterocycles - Essay Example This branch deals with the synthesis, properties and application of heterocyclic compounds and their derivatives. Heterocyclics are largely categorized as unsaturated and saturated heterocyclics, depending on their structures(Pfaltz&Drury, 2004). The saturated heterocyclics have been noticed to behave like their acyclic derivatives. The core focuses of heterocyclic compound studies are the unsaturated derivatives of 5- and 6- membered rings, their applications and their predominance of low-numbered rings. Among the 5- and 6-membered unsaturated heterocyclics are pyridine, thiophene, pyrrole and furan. Similarly studied to a large extent are benzene-fused rings of these 5- and 6- membered unsaturated heterocyclics(Nakamura et al., 1998). These benzene-fused derivatives are quinoline, benzothiophene, indole, and  benzofuran for pyridine, thiophene, pyrrole, and furan respectively. The following are structures of a heterocyclic and a homocyclic compounds namely pyridine, a heterocycli c and cyclo-octasulfur, a homocyclic compound. From the structures of these compounds it is evident that the C-H bond is quite important in their reactions. In fact, it is the activation of this C-H bond that allows for the formation and introduction of other functionality groups/bonds such as M-C or C-C bonds to heterocyclic compounds(Benudhar et al., 2013). Pyridine Cyclo-octasulfur, The core theme in organometallic chemistry is the construction and transformation of metal-carbon bonds. Consequently, most of researches and literatures seem to focus on the traditional M-C bonds formed using the tetravalent carbon bond. However, fewer researchers have concentrated on non-traditional M-C bonds, often referred to as M-C cage bonds, which are found in carborane cages in which the carbon is hypervalent(Nakamura et al., 1998). This paper explores the reactivity of M-C bonds and outlines a plan for the catalytic formation of heterocyclics via the catalytic activation of the M-C bond. Spec ifically, the aim of this paper is the synthesis of some ligands that contain heterocycles or vinyl groups that can undergo C-H activation to form cyclometallated complexes(Benudhar et al., 2013). Further, the paper investigates the reactivity of the cyclometallated complexes with alkynes and alkenes. Thus, the goal is to assess the relative reactivity of different types of M-C bonds. One of the methods used in the catalytic synthesis of heterocycles is the amphibilic metal ligand activation (AMLA). In the AMLA process, the steps in the activation of the C-H bond entail the use of an electrophilic metal in combination with a deprotonation using an intramolecular base, frequently acetate. Chiral ligands are chemical compounds adapted for and largely used in the asymmetric synthesis of heterocyclic compounds. Chiral ligands are pure organic enantiomers that combine with metallic centers through the process of chelation to yield asymmetric catalysts(Nakamura et al., 1998). It is this c atalyst that later engages in the chemical reaction in which the chirality of a ligand is transferred to the product of the reaction. That is, while initially the ligand is chiral, at the end of the reaction, it is the product, which is chiral. In model situations or reactions, one equivalent catalyst

International Trading and Financial Systems Essay

International Trading and Financial Systems - Essay Example presence in the UK. In 1998, it became the first British retailer to reach a pre-tax profit of over one billion pounds. After peaking in 1997-98, a slump in profits began to take place around 1999 which started while Sir Richard Greenbury was the Chairman. Profit margins were pushed to untenable levels and customer loyalty was seriously eroded. In an increasingly competitive and more globally outsourced retail business, the aging and bureaucratic Marks and Spencer which had based its image on being a traditional British retailer, was no longer able to compete with its business rivals. There was a belated switch to overseas suppliers as rival retailers increasingly imported their goods from low cost countries. This undermined a core part of its appeal to the British public. Its refusal to accept credit cards in its stores apart from the company's own charge card played a part in falling profits. It failed to analyze the market needs of the younger customer and cater to a more diverse section of the public. As a result of these shortsighted policies, its profits fell from 1 billion pounds to 145 million pounds by 31st March 2001. The share price fell by more than two-thirds. In 2004, the Arcadia Group tried to take over Marks and Spencer (Wikipedia 2008). A major corporate restructuring plan was announced on 29th March, 2001. This included a total focus on UK retail, expansion of home, food and beauty products, recovery plan for clothing, modernization of stores, improving pricing for value and longer store hours. Financial measures were implemented to bring about sustained growth and enhanced profitability in the company's future. These included renting store space instead of owning the property in the sale and... This paper analyzes the general economic factors that affect the market from which finance will be drawn also need to be considered. There has been an increased trend among economists to favour a finance system based model of macroeconomics.A strong financial system leads to overall growth of the economy, via domestic markets as well as international. Governments should have an effective monetary policy regarding exchange rates which affect international trade, as well as judicious policies regarding interest rates, taxation and the budget which will affect the investment and credit activities of banks and corporates. These will in turn affect the primary and secondary financial markets from which finance is being drawn. The government needs to monitor the economy, not through excessive deregulation or liberalization, but by exercising caution and some restraint, if needed. International capital flows via multinationals and foreign direct investment will benefit the international market. Short term loans and capital flows should not be used as a trade-off for long term financing which will bring about a stronger economy in the long run. It concluded that The UK Government can also educate the individual consumer about personal and public finance issues, thereby producing more financially capable individuals who can then play a more informed role in the financial future of the UK.

Principles of Care in Care Setting That Ensure Client Empowerment Assignment

Principles of Care in Care Setting That Ensure Client Empowerment - Assignment Example The paper will also dwell on the need of safeguarding client confidentiality and existing legislation that protects the sharing of such information to non-authorised persons. Another principle of care that will be discussed is the need to enable the client make informed choices and respect the human dignity of the client while offering personalised care attention. The paper will also focus on the ways in which different cultural beliefs and preferences of the clients may affect care delivery and suggest measures that care workers can implement in order to avoid cultural prejudices and stereotypes during care delivery. Client empowerments entails a process of change that enables people gain more information about themselves and take more control of their lives through identifying and working with others for the change. Empowerment is an interactive process that enables people experience personal and social change that facilitates people to influence the institutions and environments i n which they live. Ideally, client empowerment in care setting can be termed as a developmental process that entails the four stages of entry, advancement, incorporation and commitment. The entry stage in client empowerment is motivated events that affect an individual, immediate family or certain aspects that foster empowerment such as supportive peer relationships, mentoring and social or political relations. However, empowerment in a care setting can be initiated through orientation or counsel through helping individuals who seem powerless in the society by enabling them to understand the power dynamics at work, develop critical skills and capabilities to exercise control of their lives without interfering with the rights of others in the society.

Importance of Global Education in Promoting Better Relations Within Essay - 10

Importance of Global Education in Promoting Better Relations Within Society - Essay Example There has been some correspondence in terms of the things global education entails and its expected role in society. For example, comparing the works of Hicks, Pikes, and Selby in relation to global education may give some insight on the aspects involved in global education. Global education can be considered to be more focused on bringing change to society by improving levels of coexistence among people. However, its focus is not limited to a small geographical area but rather focuses on facilitating this change on global scales. In order to promote unity and peaceful coexistence, it important to create awareness on the importance of social justice, human rights and acceptance of cultural diversity. This focus of global education can be attributed to the need for the creation of a better future society. With peaceful coexistence, it is possible to unite the people from diversified cultures and regions in a cooperative way. This is to say that global education changes the general view of people in looking at different global issues and creates an open mind enabling its partakers to think from a more global platform. According to Pike global education impacts change on students enabling them to take charge of their future (2000, p.221; Selby). This is to say that global education fulfills the aspect of changing people’s point of view and encourages them to take up responsibilities. However, the change is not only at a personal level but also from a less individualistic point. This then creates the ability of global education to improve society. By charging partakers of global education to take responsibility for social and personal issues, people can be able to challenge different issues in the world especially those causing crisis. These issues may include policies and values in the society with inclusions of

Principles of Care in Care Setting That Ensure Client Empowerment Assignment

Principles of Care in Care Setting That Ensure Client Empowerment - Assignment Example The paper will also dwell on the need of safeguarding client confidentiality and existing legislation that protects the sharing of such information to non-authorised persons. Another principle of care that will be discussed is the need to enable the client make informed choices and respect the human dignity of the client while offering personalised care attention. The paper will also focus on the ways in which different cultural beliefs and preferences of the clients may affect care delivery and suggest measures that care workers can implement in order to avoid cultural prejudices and stereotypes during care delivery. Client empowerments entails a process of change that enables people gain more information about themselves and take more control of their lives through identifying and working with others for the change. Empowerment is an interactive process that enables people experience personal and social change that facilitates people to influence the institutions and environments i n which they live. Ideally, client empowerment in care setting can be termed as a developmental process that entails the four stages of entry, advancement, incorporation and commitment. The entry stage in client empowerment is motivated events that affect an individual, immediate family or certain aspects that foster empowerment such as supportive peer relationships, mentoring and social or political relations. However, empowerment in a care setting can be initiated through orientation or counsel through helping individuals who seem powerless in the society by enabling them to understand the power dynamics at work, develop critical skills and capabilities to exercise control of their lives without interfering with the rights of others in the society.

Strategic Thinker Essay Example for Free

Strategic Thinker Essay After reading through, the tactical planner and logistician. I would consider myself to be a strategic thinker. Strategy has never been more challenging, or more important, than in todays environment of global competition, in which, corporate strategies must transcend the borders of nations and markets. Too many organizations try to be everything to everyone, wasting resources in markets that may never provide a worthwhile return on investment. What is strategic thinker? The ability to come up with effective plans in line with an organizations objectives within a particular economic situation. Strategic thinking helps business managers review policy issues, perform long term planning, set goals and determine priorities, and identify potential risks and opportunities. Systems perspective; being able to understand implications of strategic actions. A strategic thinker always have a mental model of the complete end-to-end system of value creation, his or her role within it, and an understanding of the competencies it contains. Intent focused; more determined and less distractible than rivals in the marketplace. Crediting Hamel and Prahalad with popularizing the concept, Liedtka describes strategic intent as the focus that allows individuals within an organization to marshal and leverage their energy, to focus attention, to resist distraction, and to concentrate for as long as it takes to achieve a goal. Thinking in time means being able to hold past, present and future in mind at the same time to create better decision making and speed implementation. Strategy is not driven by future intent alone. It is the gap between today’s reality and intent for the future that is critical. Scenario planning is a practical application for incorporating thinking in time into strategy making. Hypothesis driven, ensuring that both creative and critical thinking are incorporated into strategy making. This competency explicitly incorporates the scientific method into strategic thinking. Intelligent opportunism; which means being responsive to good opportunities. The dilemma involved in using a well-articulated strategy to channel organizational efforts effectively and efficiently must always be balanced against the risks of losing sight of alternative strategies better suited to a changing environment. There are two types of strategic approach: Emergent Strategy: Emergent strategy, on the other hand, is characterized by recursive learning loops, as an organization sets about on a course and then senses and reacts to opportunities that may not have been recognized at the onset. Deliberate Strategy: Deliberate strategy is process driven. Traditional calls for strategic planning indicate a desire for an analytic and somewhat linear approach to strategy. Importance of a strategic thinker The purpose of Strategic Thinking is to create a strategy that is a coherent, unifying, integrative framework for decisions especially about direction of the business and resource utilization. To do it, Strategic Thinking uses internal and external data, qualitative synthesis of opinions and perceptions. It is conscious, explicit, and proactive and defines competitive domain for corporate strategic advantage. Strategy is a key outcome of a relevant strategic thinking process. Tregoe and Zimmerman outlined the relationship between strategy and operations in their work on strategy, Top Management Strategy: What It Is and How To Make It Work Strategic Decisions: The object of strategy is to bring about advantageous conditions within which action will occur. In the military context, this means positioning forces for best advantage and judging precisely the right moment to attack or withdraw. Strategic decisions prior to D-Day in 1944, for example, included setting the day and time of the invasion of the European mainland as well as the choice of battleground. The campaign and each battle were conducted within the boundaries of space and time as set forth by strategy. Once strategy is determined, second tier or operational decisions can be made in the proper context. By definition, operational decisions are those that pertain to the broad execution of strategy. In the realm of business, operational planning is usually conducted with a one-year time horizon, fitting into the context of a longer-range strategic plan. In the military, endeavors resulting from operational decisions are often called campaigns. A campaign is a series of military operations or battles carried out over a large geographical area—such as WWII Normandy—in order to achieve a  large-scale objective during a war. The operational plans for D-Day, for example, set the stage for landing hundreds of thousands of men and significant amounts of equipment and materials on five Normandy-area beaches as part of the overall strategy for taking back France and ending the war in Europe. Other famous military campaigns include Sherman’s march through the Civil War South, Napoleon’s incursion into Russia, and Schwarzkopf’s Desert Storm conflict in Iraq. The Vietnam War presents an excellent example of tactical and operational success but strategic failure. Shortly after the war, a victorious North Vietnamese general was approached by an American general in a diplomatic setting. â€Å"You know,† said the American, â€Å"you never beat us on the battlefield.† Pondering the comment for a moment, the Vietnamese general replied, â€Å"That may be so. But it is also irrelevant.† Indeed, history shows that the American military never lost a significant battle in Vietnam. The war was lost, though, at the strategic level. The mission of the United States drifted to the point that merely finding a way out was considered a successful outcome. Napoleon once said that â€Å"in war, the moral is to the material as three to one.† With every material advantage possible, America did not have the strategic consensus—or the will—necessary to accomplish a military victory.

Costa Coffee Marketing Plan for China

Costa Coffee Marketing Plan for China This paper aims at outlining the strategic marketing approach of Costa Coffee for entering a new market . Costa Coffee is the British part or retail sales of Whitbread Family. Whitbread is a British Multinational Company and it has franchises worldwide. Whitbread includes Hotels, Restaurants [Household names like TGI Friday], Health and Fitness plus Other Businesses. The contents of this paper include the marketing strategy of Costa Coffee and its expansion plans in China. Introduction The Story The history of Costa Coffee began in a mountain town outside the region of Parma, where there was the house of Costa family. In the late 60s, the Italian brothers Bruno and Sergio Costa, hungry for success, traveled to England, seeking an opportunity for professional advancement. By arriving there, they found how simple the English coffee market was. Motivated by their Italian background and Sergios skills in the roasting of coffee beans, they decided to return to Milan to enrich their knowledge and technique in Italian coffee shops. In 1971, upon their return to London, they bought a three-story building in Lambeth, where they set up their own coffee shop. In the beginning, the Costa brothers worked as producers and wholesalers and were supplying high-class restaurants and specialty stores. Soon, they built their reputation for their dedication to excellent quality of their product. However, in 1978 they had to find some employment for their wives in order not to interfere in their business. Therefore, they decided to create their first coffee boutique in Vauxhall Bridge Road, London, and assigned its management to their wives. This idea experienced tremendous success, and led the brothers to the expansion of Costa coffee boutiques and award their management to relatives and friends. Since the opening day of the first store to date, the same traditional method of slow roasting (18-22 minutes) of coffee beans is used, offering the delicious and fragrant blend Mocha Italia, from 6 Arabica beans and 1 Robusta. Listen Read phonetically Dictionary View detailed dictionary Today, Costa Coffee owns 500 shops worldwide. Costa Coffee believes in its employees skills therefore, it provides intensive employee training at the Cost Coffee Academy. VISION: Costa Coffee vision is to provide the best hospitality to its customers since its range of hospitality products range includes restaurants, hotels and leisure clubs. MISSION: To serve the best coffee in the true Italian style. BUSINESS PORTFOLIO: Costa Coffee has built an unrivaled reputation for coffee excellence, and this is achieved by fully controlling the process, from harvest and selection of coffee beans, from the roasting of the Italian maestros, the choice of engines and compliance with the procedures of manufacture of beverages, ensuring this way that customers can enjoy the same excellent quality coffee at any of Costa Coffee in the world. The drinks are served in 3 different sizes Primo, Medio and Massimo, and the customer can choose between the unique blend of Mocha Italia, or decaf, whole or skim milk and add an extra dose of espresso, flavored syrup, cream, candy or chocolate. There are 15 factors that are combined and help to create the perfect Costa coffee. In addition, in every store worldwide regular controls take place, which ensure consistency and maintenance of quality. Every Costa Coffee has a Barista Maestro (coffee expert) responsible for maintaining the excellence of the drinks served. COSTA COFFEE AND STARBUCKS: Starbucks is the largest competitor of Costa Coffee. Starbucks is the leader in the coffee shop market. Its international presence is in 50 countries. On the other hand, Costa Coffee, is the third biggest coffee specialist in the market with shops in 25 countries. Both companies have an excellent financial performance up to 2005 but in 2008 there was a decrease in revenue and operating profit as a result of the global economic recession. However, in 2009. Starbucks has an improving in cost structure and therefore its liquidity is better than Costa Coffee since it has managed to pay its short term debts. A key factor for both companies is globalization since most leading players in the foodservice market expand their operations in other countries. So the future success of Costa Coffee will be based on its operations outside the UK. The same applies for Starbucks. . THE CHOICE OF CHINA: China is one of the biggest economic forces in the world. Its domestic market is larger so there is a lot of potential for multinational businesses. Its average GDP growth rate is more than 10% despite the global economic crisis (10.9% last quarter 2009) (BBC China economy 2009). International financial analysts believe that the growth of the Chinese economy will continue. Regarding the coffee industry in China, it should be noticed that competition is quite intense but sales in cafes has grown by 8% to RMB36billion (over  £3,487million). It should also be noticed that in 2009 coffee shops chains had a growth of 22% (Euromonitor International August 2009,Cafà ©s/bars China). However, the Chinese market for many international companies is considered a tough market since it is difficult to understand local culture and customeCNY. Therefore, many companies pursue joint ventures and strategic alliances in order to do business in China. In 1998, Starbucks entered China and it has 180 coffee shops. In 2006, Costa Coffee entered China in a different way i.e. through a joint venture with Yueda Group which is based in Jiangsu Province. This was done because a local partner knows the market better so market penetration for the new entrant is easier. However, this also means that Costa Coffee is heavily dependent on Yueda. Costa Coffee has a strong Italian aura that aims at attracting the Chinese market. Affluent Chinese customers want to taste a coffee that is represented by a global brand name. So far, Starbucks has been quite successful in this area. The risk is that by being a partner with Yueda, the brand will be customized too much therefore, Costa will lose its competitive advantage which is the Italian aura. Starbucks has very aggressive expansion plan in China. The crucial point is if Costa Coffee will maintain its brand essence and will not be customized. In this case, Costa Coffee will be a strong competitor to Starbucks. Future trends Strategy The main issue for chained coffee shops is to create a unique experience that cannot be easily copied. The consumers want to enjoy their coffee in a nice environment. The coffee shop space should be comfortable with an ambiente that will be inviting so the consumers will return to the shop again. People will want to live the espresso experience at home so the sales of equipment and coffee will increase as well as the demand for better and higher quality of coffee and beverages in coffee shops. Corporate social responsibility is another issue that chained coffee shops should take care on. They have to prove that they implement ethical practices. Regarding marketing, researchers predict that chained coffee shops will use mobile apps and have social networking tools in the very near future. COSTA COFFEE Financial Data Turnover:  £263.8m (2008:  £216.3m) Operating profit before exceptional items:  £22.7m (2008:  £20.8m) Number of outlets: 881 in the UK, 407 overseas Total Revenue  £ (m) Strategy Our target for Premier Inn during 2009/10 is to deliver around 2,000 new rooms in the UK and overseas. We have a strong pipeline of secured sites and will continue to develop a land bank. Internationally, our first hotel opened in Dubai during 2008 and we will build on this position, intending to open a further two hotels in the Emirates plus one in India. We plan to open around 100 new Costa outlets in the UK in 2009/10. We will capitalise on our strong Costa brand by focusing on new locations, as well as areas where we can replace existing operators, such as in supermarkets, hospitals and leisure facilities. Costa will also continue to strengthen its position across international markets, adding 100 net new stores in the year ahead. MARKETING OBJECTIVES: Enter Greek market and develop a significant market share; Increase product portfolio by new high caliber products; Bring more value to shareholders; Be a leader in its field for customer service; Develop alliances with commercial partners and the communities in which Costa Coffee shops operate. TARGET MARKET Costa Coffee offers a wide range of products suitable for all consumeCNY. So far, coffee in China is consumed in big cities (Beijing, Shanghai, Guangzhou). Coffee producers have targeted young professionals since they are the most westernized, affluent and open-minded. However, they see it as something that is in fashion rather than a regular habit. Another target group for coffee consumption are returnees i.e. Chinese that studied in Western countries and come back to China. They are also affluent and they are accustomed to visiting coffee shops. Ex- pats are another target group. Chinas economic growth has attracted a lot of investments from foreign companies. Ex-pats are used to drink coffee and their number increases every year. It has been estimated that businessmen from Hong Kong and Taiwan as well as Westerners amount to 30% of customers at multinational chained coffee shops as Starbucks. The above customer base has been quite saturated so there is a need to increase customer base. However, coffee is considered a luxury good and the average Chinese cannot pay for a cup of coffee. The average Chinese annual income is RMB 8000 yuan whereas a small cup of Starbucks coffee costs RMS 12 yuan ($1.5 which is the same price as in USA). In the big cities the average annual income is higher however it is still difficult for someone to consume a cup of coffee. If coffee still goes on being considered as a luxury good, it will happen the same thing as in Japan i.e. it will take China more than 90 years to make coffee popular. Market Segmentation: Based on the above the following market segments were defined: Young / Mature professionals Returnees Ex-pats Students Middle Class Upper Middle Class Single Married Bus section and train/airplane passengers Marketing Strategy: Costa Coffee will follow Market Development strategy and the reason for choosing this strategy will be explained below: CURRENT NEW PRODUCTS PRODUCTS 1. Market Penetration Strategy 3. Product Development Strategy 2. Market Development Strategy 4. Diversification Strategy CURRENT MARKETS NEW MARKETS   Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Coffee is considered a luxury good. This misperception hinders businesses in identifying customer groups and implement marketing strategies. This misperception also hinders the majority of the population to get acquainted with coffee. The same happened in Japan, where coffee was also considered as a luxury beverage with unreasonably high prices. It has taken almost 90 years for Japan to get acquainted with coffee and still per capita coffee consumption is quite low. This makes things worse since Japan sets the trend for Taiwan and South Korea.   Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Ãƒ £Ã¢â€š ¬Ã¢â€š ¬In China coffee shops open every day in cities like Beijing and Shanghai. However, the average Chinese cannot afford a cup of coffee everyday. Multinational coffee companies have faced difficulties in developing the Chinese coffee market. Although they know how to penetrate mature markets but they see that they have difficulty in immature coffee markets. These companies need to understand better China and its people. Without understanding them all marketing campaigns will be in vain. A characteristic example is the marketing campaign of Nestle which was targeting at the young middle class Chinese although in reality this class does not exist or even if it existed they would not be heavy coffee drinkeCNY. Starbucks has increased awareness but it needs a different strategy for the Chinese market. Only KFC has been quiet successful. Starbucks success cannot be considered as sustainable since it was based on management, financial power and brand name whereas the Chinese market needs entrepreneurship to advance it and this is what Costa Coffee is planning to do. Coffee has been promoted by the Chinese government through festivals and fashion awards however these strengthened the misperception of coffee being a luxury good. Local coffee shops add too many side things such as food, spirits etc. Therefore, they dilute the idea of coffee. Coffee is a product that does not hurt health, stimulates the brain and it is addictive. Based on researches someone who has drunk coffee three times a week for two months in the row is addicted to coffee. Brain stimulation is important for personal wealth and intelligence. Coffee became popular because coffee shops were focused at making the customer accustomed with coffee. When people get accustomed then the market develops at an extremely fact pace. The coffee shop is important for this development and a coffee shop can be a seated place or coffee stands and carts. It is important to make people drink coffee and then offer them ground coffee. Many companies have found as an excuse the fact that tea is dominant in China and there is no place for coffee in a tea dominant country. However, there are no major tea companies that can compete international coffee giants nor is there a specific promotion to protect tea. On the contrary local society support the development of coffee houses and it is not negative to coffee. Costa Coffee will focus on making people drink more coffee. Its new coffee shops will be around areas where people gather such as Universities, stations and office buildings etc. This can be the best promotion since if one group of people becomes loyal to coffee then it will influence other consumer groups. Costa Coffee will focus specifically on these people and its promotions will be measurable and specific. Coffee has an unbeatable image in China and it is known to everyone. Costa Coffee will be based on the quick service restaurant (QSR) concept. QSR is based on the idea of offering cheap, clean and good food and its purpose is to sell to a wider range of population. Costa Coffee plans to adopt this concept. Coffee has a high profit margin but food is what attracts people to the coffee shop. Costa Coffee already offers more products than coffee; however it should plan to add more snacks that are better suited to local customers and a cheaper but good quality filter coffee for taking away. Many local Chinese coffee shops offer food however, they have not formulated a strategy so they cannot be considered as potential competitoCNY. So far in these shops the restaurant is separated form the coffee house something that it is not the case of Costa Coffee. In the next two years the aim is to introduce new product lines that will be offered at affordable prices for the average Chinese consume r. It should be noticed that this does not mean price cutting since this will hurt Costa Coffees brand name. The location of the new coffee shops is also an important part of Costa Coffee strategy. Up today, the coffee shops were opened at locations where population is dense and the income is high. As a result, the rental prices are quite high. Therefore, Costa Coffee is planning to open new shops at bus stations and other busy intersections where rents are lower and the traffic is big. The marketing strategy that will be followed to China is important since it influences neighboring states such as South Korea which is also a new coffee consuming country. If the model of highly expensive coffee will be followed then the consequences will be similar to Taiwan and Hong Kong where there is a negative trend in coffee growth. à £Ã¢â€š ¬Ã¢â€š ¬Ã‚     Ã‚  Ã‚  Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Ã‚  Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Ã‚   à £Ã¢â€š ¬Ã¢â€š ¬Ã‚     Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Ãƒ £Ã¢â€š ¬Ã¢â€š ¬ SWOT ANALYSIS: Strengths Weaknesses Established brand name worldwide Expensive prices for the average Chinese consumer Wide range of products Starbucks dominant position in the market Third ranked coffee shop chain in the world Coffee is considered a luxury good Know how of Yuda (local partner) Tea is the daily beverage of the average Chinese Opportunities Threats Big market potential a lot of Chinese Consumers that do not drink coffee Stagnant coffee growth due to high prices Unbeatable image of coffee Possible marketing enforcement of tea companies No competitors are located at bus intersections PESTEL ANALYSIS: Political China has a stable political environment that welcomes foreign direct investments. Economic The Chinese economic growth is impressive (10% per annum). Social Although the income of the average Chinese consumer is low, there is a growing middle class -190 million urban households, or 29%. According to McKinsey, middle class is expected to expand to 75% (372 million), by 2025 (DAltorio 2011). Technological New coffee machines are produced so making coffee at home is easier. Environmental There is a trend in producing organic coffee. Legal There are no legal issues involved. MARKET POSITIONING: The positioning strategy of Costa Coffee will be in line with its international strategy i.e. THE ITALIAN COFFEE MASTERS. The competitive advantage of Costa Coffee is the quality of their coffee. The image of the company is that is has a UNIQUE coffee. Another positioning of Costa Coffee is that this excellent coffee quality can be offered with affordable prices (launch of the new take away filter coffee). THE ITALIAN COFFEE MASTERS This is the tag line that will communicate the Italian aura of Costa Coffee to the mass audience. Since Chinese consumers perceive well the Italian atmosphere it is expected that it will attract more people to Costa Coffee. MARKETING MIX: Product: Brand Name: Costa Coffee is a well established brand that signifies luxury, perfection and excellence. Chinese consumers prefer established brand names. Image/Theme: Luxury Costa Coffee is related to luxury. The coffee shops ambiance is trendy and comfortable. Customers will have a nice time in a flashy environment. However, this luxury image should be cleverly related with the new, affordable, take away filter coffee. The message that will be transmitted is luxury can be affordable and can be taken with you. Color Scheme Costa Coffees shops are in warm tones having brown as the main color. Other colors that are used are green, black and white. The purpose of this color selection is the creation of a comfortable and trendy atmosphere. Service: Apart from coffee, Costa has a reputation of excellent service. Hiring and retaining talented employees and train them accordingly is a strategic goal of the company. Product variety: ESPRESSO A short, strong and black coffee, with no milk. ESPRESSO DOPPIO A double espresso shot. For those who like it strong. RISTRETTO An extra short coffee, even shorter than an espresso, with an even stronger flavour. MACCHIATO Espresso topped with just a dash of milk. Yum. AMERICANO Coffee, mixing shots of espresso with hot water. Add milk if you like. FLAT WHITE A rich, full-flavoured coffee with a velvety, smooth texture. Each Flat White is hand-finished with a distinctive pattern. CAPPUCCINO Coffee combining espresso with steamed, frothy milk. Chocolate on top if you have a sweet tooth. CAFFE LATTE Coffee made with steamed milk. Not as strong as a cappuccino, but just as good. MOCHA Espresso with hot chocolate, topped with steamed, frothed milk. (Source: Costa Coffee 2010) Costa Coffee products variety includes iced tea and coffees as well as cakes, pastries, Panini and sandwiches. Prices: Costa Coffee prices are generally higher than other coffee shops. High prices are related to the outstanding quality and taste of Costa Coffee. Therefore, the traditional customer groups of Costa Coffee are high and middle classes. Costa Coffee believes that a reduction in its prices will harm its brand name. However, it wants to increase its Chinese customer base so it will offer a filter coffee for takeaway at affordable prices. Chinese middle class growth rate is significant, it will reach 372 million by 2025, it is a social class that cannot be neglected. Therefore, Costa Coffee is planning in the next three years to offer its products at affordable prices for the Chinese middle class without harming its brand name. Locale / Setting: The next Costa Coffee shops will be at busy intersections e.g. bus, train stations and at areas where office buildings and Universities are located. It will focus again on the big cities like Shanghai and Beijing. The aim for the next three year is to have 30 new coffee shops at both cities. Promotion: Costa Coffee will not do a lot of advertising since its brand name is recognized. However, there will be special sales promotions at its new shops for the new filter coffee that can be taken away. Costa Coffee is based on word of mouth advertising since reputation is very important. MARKET DEMAND It is important to measure the market before launching new products and shops. It is also important to measure the market after the launch of the new products / shops so as to see their effects and gain a larger market share. Growth Share Matrix There are two factors that are important for the expansion to new markets and these are : market attractiveness and the Business Strength. Market Attractiveness Business Strength Factors Rate Factors Rate Overall Market Size 70% increase (2004-2012) Market Share 5.0 Annual Market Growth Rate 7.8 Product Quality 5 Competitive Intensity 4 Brand Reputation 4.5 Technological Requirements 2.5 Distribution Channel 3.5 Inflationary Vulnerability 4.9 Promotional Effectiveness 4.5 Productive Efficiency 4 Managerial Personnel 3.5 Market Attractiveness As it is seen above, the attractiveness of the Chinese market is very high. The annual growth rate of the coffee market is high. There are no significant technological requirements since Costa Coffee already possesses advanced technology. Inflation is quite high and it seems that it will increase in the near future, however the targeted market groups remain unaffected (growing Chinese middle class). Partnership with Yuda will protect Costa Coffee from any possible dangers. Therefore, the Chinese market is very attractive and suitable for coffee shops expansion. Business Strength Costa Coffee is part of the well-known Whitbread Family. The quality of Costa Coffee is unquestionable. Costa Coffee owns more than 500 stores worldwide. Its outlets are in Europe, UK, Middle East, India, Pakistan and China. In order to maintain its excellent reputation, Costa Coffee will continue its policy of recruiting, training and retaining the best available employees in China. Business Strength High Medium Low High Medium Low Costa Coffees Business Strength is high and the overall position is ideal for further expansion into the Chinese market. Projected Sales in CHINA Costa Coffee projected sales are expected to rise to almost 97% in 2012 and this is due to the launch of the new takeaway filter coffee and the new shops at the busy intersections. This rate is expected to slow down (87%) in 2013 and this is because the one time visitors are expected to cease to visit the coffee shops and the existing customer base is expected to remain. An extensive marketing promotion through emails, customer clubs, social media etc. is expected to increase market share. The above numbers are very impressive and expansion seems ideals. Sales forecasts per customer groups are also very promising.: Market 2012 2013 2014 Total Students Youngsters CNY. 20,000,000 CNY. 23,00,000 CNY.6,300,000 CNY 49,300,000 Ex pats and returnees CNY 7,555,000 CNY 7,000,000 CNY. 12,800,000 CNY. 27,355,000 Families CNY. 9,700,000 CNY. 9,850,000 CNY. 17,200,000 CNY. 36,750,000 Professionals CNY. 17,750,000 CNY. 32,750,000 CNY. 92,000,000 CNY. 142,500,000 Totals CNY. 55,005,000 CNY. 72,600,000 CNY. 128,300,000 CNY. 255,905,000 According to the above table it can be seen that professionals is a group that has a lot of potential. This is because the Chinese middle class is rising and the coffee culture is mounting too. Another reason for the increase in sales in professionals is due to the location of the new coffee shops. There will be located in busy intersections where there are many office buildings. Newspapers and other electronic media have approached Costa Coffee and various interviews and programs have been made which boost Costa Coffees reputation even more. BUDGET FORECASTS: The forecasted budget for the upcoming three years is as follows; TYPE 2012 2013 2014 Total Accommodation CNY. 2,000,000 CNY. 5,000,000 CNY. 7,000,000 Training CNY. 1,500,000 CNY. 500,000 CNY. 4,000,000 CNY. 6,000,000 Transportation CNY. 250,000 CNY. 350,000 CNY. 1,000,000 CNY. 1,600,000 Fixtures CNY. 2,000,000 CNY. 7,000,000 CNY. 9,000,000 Total CNY. 5,750,000 CNY. 850,000 CNY. 17,000,000 CNY. 23,600,000 Future promotion and expansion plans: Costa Coffee will be launching more coffee shops in the major cities of China (Beijing and Shangkai) but the plans are to expand all over China after having created a considerable market share in the above cities. The expansion has been planned for the next year that is 2012. In the next two years the next cities where new coffee shops will be located will include Guangzhou and Shenzhen. Costa Coffee is not in favor of extravagant launching campaigns. It supports the use of electronic and social media as well as corporate social responsibility programmes and actions. It also believes in the right location of its shops. So, the marketing activity will be low except the posters that will be in the shops, as sales promotion, advertising the new takeaway filter coffee. ANALYSIS: Costa Coffee has a lot of potential for further intensifying its expansion efforts in China. It already possesses a significant market share in the Chinese market. The reason behind it is the unbeatable image of Costa Coffee and the advertisement (word of mouth) done by people who have visited its outlets. Sales are expected to rise in the following years and they are expected to rise even more in the forthcoming years since Costa Coffee is focusing on the rising Chinese middle class. Students and youngsters in general set the new trends so their influence in increasing coffee consumption and visiting coffee shops is of outmost importance. By further using social media, Costa Coffee is expected to increase its market share in this group. Professionals always seek quiet place to do their official or unofficial meetings. Costa Coffee is an ideal place to do these meetings. Apart from that, Costa Coffees activation in social media will certainly increase its future revenue. In conclusion, it can be said that Costa Coffee has so far implemented an excellent marketing strategy and the new campaign that it will launch for the takeaway filter coffee as well as the location of its new shops will help it increase its sales and gain sustainable competitive advantage. RECOMMENDATIONS: Sales numbers are very promising however the local partner should follow all the below the line activities mentioned. Costa Coffee should continue with low promotional strategies. Apart from posters inside the outlets, Costa Coffee should consider the use of bill boards at the busy intersections.