Saturday, September 21, 2019
Composite Performance framework (CPF) Application The scope of this dissertation is; To diagnose issues within a division, project or company within the mining and allied industries. To give guidelines on assessing the nature of the issues. To provide guidelines on corrective actions for those perceived issues. To take steps to prevent it from reoccurring. To embrace continuous improvement in all aspects of the operations and where possible to extend this continuous improvement to employees personal lives. This research has limitations, in that the research of literature is taken from all over the world with much of the literature coming from the USA, and the heuristic component is harvested through local Australian and Africa experience. Whilst these limitations are not all encompassing, they are nonetheless limitations. A research dissertations such as this: Does not guarantee outcomes Only addresses identified issues Does not guarantee access to replacement of personnel Does not guarantee Management driven solutions Does not instantly cure a culture that may be weak Works within the confines of the operational dynamics of that site Research done mostly on coal mines and associated industries This dissertation is based on the application and implementation of the Composite Performance framework (CPF). This research is derived from the experience of this researcher and is harvested from the mining and related industries. The outcomes of this research are intended to benefit the mining industries in its future endeavours, especially management at all levels. Appendix E demonstrates the application of the CPF. Chapter 6 introduced case studies using the CPF and these chapters will introduce the implementation of the composite performance framework (CPF) as well as managerial practices within the mining industry in more detail. This current chapter will address some issues as they are seen by this researcher and methodologies to restrain them. The nature of the mining industry calls for a different and in some cases a unique set of managerial skills and tools, such as a succession and training plans, due to the high attrition rates, discussed in earlier chapters of this dissertation. Implementation practices using the CPF in the mining industry. As demonstrated in Ch 6, management is not a passive function, but rather an ongoing active and proactive function. Ignoring issues and not dealing with them in a prompt and decisive manner will cause issues to morph into potentially larger issues that could be even more difficult to resolve. This dissertation has focused on implementing change in the mining industry. Change merely for the sake of change, and change without gain are of no benefit to the organisation. By the same token; the absence of change is static, and will not help a company progress or take advantage of new technology and possibilities. All change to be implemented must be evaluated to assess the change that will benefit the organisation. As mentioned in Ch 2 of this dissertation, it is not good enough to do things correctly; the correct factors need to be established, and they must be implemented correctly. Management and planned change must be programmed according to the changing and growing objectives of the organisation and its people. All changes must be able to be measured, and based on the continuous improvement philosophy; must show measured change, on track and in accordance with the scheduled objectives of the company or operations. Previous chapters of this dissertation raise various issues within the mining industry including aspects and issues within the management of the mining industry. The mining industry has taken steps to resolve some managerial issues in the mining industry and to this end have introduced some training courses which are mandatory for anyone that will supervise another mine worker in any way. Any intended change must be preceded by a operational process plan, a basic idea of what a broad operational process will look like, when implementing change in accordance with the CPF philosophy. RQ1: What are the elements of a framework that can be used to address mine operational problems and issues? In answer to RQ1 this researcher is convinced that all five aspects of the CPF are valid frames to re-engineer a company or organisation within the mining or allied industries. The five elements can be seen in chapter 4 and also within the case studies presented in chapter 6. The five elements of the CPF were developed to cover all aspects of change management and to be flexible and to deliver sustainable change by way of the continuous cycle of assessment. RQ2: What are the appropriate strategies to initially identify mining operational problems and issues? In answer to RQ2 this researcher states, that by assessing the operation to be re-engineered the manager assigned to implement change, will be made aware of problems and issues within that organisation. His role is to find areas where change will be rejected and how to best deal with that situation as and when it arises. Communication is vital at all stages of the change implementation process. Chapter 4 and the case studies in chapter 6 demonstrate this effectively. RQ3: What is the efficacy of the CPF in mining operations? In answer to RQ3, this researcher is comfortable that the CPF is a highly efficacious tool to re-engineer organisations within the mining industry. Chapter 6 of this dissert Introduction When projects are conceived, they are costed out and a cost is assessed. This cost is invariably a budget cost to complete the project. The next stage is to assess whether that cost can be negotiated down and cost savings to be sought. This is usually done by value improvement processes. This stage is commonly known as a value improvement process (VIP), and assembles a team of experienced managers within the field at assess each cost and see where savings can be gained. A normal project function with any large project in the mining industry is that of Value Improvement Process (VIP); Value Engineering (VE) forms a part of VIP Process. Value Engineering is a methodology where the best possible engineering or process practices are employed to gain a value advantage to ensure that the project remains viable. This is initially achieved by a VIP project using a series of workshops, usually facilitated by an independent facilitator. The primary objective of a VIP project it to gain cost reductions, without losing value or functionality project wide, in order to reduce costs and improve the net present value (NPV) as well as improve operating costs into the future. This researcher uses a number of specific strategies when implementing the CPF. These are briefly considered: Brain storming. This is used in group situations with relevant team members as well as the VIP team. Identification of local champions. Local champions are usually selected in conjunction with supervisors and management meetings, and team leaders that know the team structure better. Identification of local champions s detailed below. As with so many professionals; in developing a VIP project, the VIP project manager will discover that professional single mindedness prevails and can cost the project dearly if not handled correctly. In order to address the above, this researcher in using the CPF uses the workshops as an idea generation methodology. In short it is a Brainstorming exercise. This researcher considers that the usual form of Brainstorming is counter-productive rather than conducive to the idea generation. This is because of some team members that may be experienced but silent during the brain storing sessions. This researcher will introduce a more beneficial manner of generating ideas and concepts in section 7.5 of this chapter. The objective is more than to generate ideas; it is to generate the best quality of new ideas. Another area of integration effectiveness can be derived from self-managed work teams. Of equal importance is the need for local champions (normally leading hands or supervisors) among current work teamsÃ¢â¬ ¦they become information gatherers and disseminators, coaches and mentors, teachers, consultants and facilitators. Identification of local champions Local champions at times, are just one of the team members. However, they are crucial because they are usually respected and their peers carefully consider their views. Local champions in the mining industry are quite often the Leading Hands or the Supervisors. When placing champions in work teams, through positive problem solving and conflict management strategies, they may help various group representatives to confront existing conflict. It is the conviction of this researcher that the Leading Hands and Supervisors are the quintessential managers on a mine site or mining project. Enhance / promote problem solving behaviour The effectiveness of each organisation in achieving integration or administering change management programmes is directly related to the extent that its members rely on problem-solving behaviour to resolve conflicts. In order to implement problem-solving behaviour and at the same time establish commitment to work teams, champions need to be competent in their: skills in human interaction ability to form quick and functional relationships deciding priorities among goals ensuring decisions are fair and equitable Some of the conditions, which foster integration within an organisation, are: external communications internal communications empowerment team training and team learning Team work Team work is when a team works in harmony with each other to reach certain goals and objectives for the company, but also to a lesser degree for each member of that team. During the implementation process of change it is critical that teams work together with each member as well as other teams and management. Meet regularly with teams and discuss the planned as well as completed organisational changes and what outcomes are expected. Recognise that teams will understand that you may not have the answers to everything, but it is important for them to feel the communication is candid. Regularly communicate agreed goals and the vision of the new situation Encourage teams to discuss fears and concerns in teams Open suggestion boxes for employees to raise questions in anonymity Whenever possible, assign roles and responsibilities in line with teams interests Obtain individual team member buy-in Obtain commitment from the team members to the change Minimise any resistance that is suspected Reduce team anxiety Ensure total clarity of objectives Share the information and the goals Challenge the current situation and allow the team members to do the same Obtain clarity from the senior management as well as the team members Minimise uncertainty
Friday, September 20, 2019
Business Essays Heineken Beer Market Heineken Beer Market Executive Summary Chapter 1 analyze threats Heineken is facing and opportunities the company can get from the beer market by using two model PESTLE and Porter Five Forces. PESTLE describe what difficulties come from external environmental factors that the company is facing and Porter five force analyze the threats as well as opportunities of Heineken in suppliers, buyers, competitors, substitutes and new entrant. OT factors in SWOT analysis also use to define in chapter 1 for threats and opportunities of the company. Chapter 2 describes strengths and weaknesses in the company operation through the analysis of internal environment such as company resources, organizational structure and culture. The resources with include tangible, intangible, management capability and marketing which used to identify what the advantages Heineken are managing for the performance of their operation. SW in SWOT also use at the same time to analyze strongly what strengths and weaknesses Heineken is taking. Chapter 3 assesses how Heineken perform in term of effectiveness, efficiency and return to shareholders based on efficiency ratios and performance investment ratios. This assessment identifies the market share and market growth of company in the market. Chapter 4 finding the options those are available to the company and recommendation of the most appropriate ones for future strategic direction. Chapter 5 finding recommendations for structures, systems and policies which use to implement these strategies successfully. Chapter 6 the outline of my assessment of the usefulness of strategic management models for Heineken analysis. How PEST, Porter Five Force, SWOT, resource-based and financial analysis use to be described for my analysis successfully. Introduction Today beer is widely available and enjoyed in most countries and cultures around the world. Heineken is one of the largest companies in a global network of distributors and breweries. In addition, Heineken owns and manages one of the worlds leading portfolios of beer brands in terms of sales volume and profitability. Moreover, the company has been able to remain one of the worlds leading consumer and corporate brands for more than 130 years. It became Europes favorite beer brand successfully exported to every corner of the world. Chapter 1 Analysis of the external general PESTLE model Political Beer is a kind of drink that the government excises significantly because it contains alcohol which is addicted people. Therefore, this will affect Heineken Company in sale volume in the market. With internationalisation and globalisation, more and more brewers are hunting for new markets, governments on the other hand with and intention to gain maximum profit as well as get empathy on ethical grounds are imposing heavy taxes on liquor and beer imports. As a result, this fact will bring threat for Heineken. For example, recently drinking alcohol is prohibited on public transport in London. This hence will impact on the beer market because people want to enjoy their beer not only at home but also at public where they can have fun time with their friends. Economic Heineken has many operations in mature Ã¢â¬â mainly Western European and it is reported in Euros. Therefore, the currency fluctuations could create threat to the overall company results, especially relating to the US dollar. However, Heineken has a clear policy on hedging transactional exchange risks; this would postpone the impact on financial results. Nowadays, unemployment has risen due to recession in the market and this will result in more people will choose some cheaper alternative. As a result, Heineken with premium price will be impacted for that. This also brings threats for company in distribution aspect. Social culture Nowadays, beer is not only for men enjoy it but women also drink beer to enjoy its taste. Furthermore, life style of the new generation has become very fast and different, which result in lack of time in today life. Thus the consumption at bars is declining. This means that the beer market will be affected by this as well as Heineken Company, this will lead to go down in sale volume. Furthermore, demographic changes would influence the company a lot. For examples, in China where the population is going up rapidly and this combined with consumer having increasing amounts of leisure time. Therefore, these would lead to consumption of beer in China grew by 33.56% between 2000 and 2006. China now has overtaken the United State to become the largest national beer market in the world. As a result Heineken Company will have significant sale volume in this market. Technology Now it is hard to find a part of the companyÃ¢â¬â¢s business that doesnÃ¢â¬â¢t use technology. Therefore, technology is developed will impact the company as well as beer industry. Information technology security upgraded has created opportunities for HeinekenÃ¢â¬â¢s worldwide business operations, and connectivity in the company and with outside partners is increasing. For example, the recent advancement in the technology has opened huge markets for organizations to access world population without any barriers. This can be taken as a chance to reach out to almost every location on the globe. Hence Heineken will open their market in many locations in the world. PorterÃ¢â¬â¢s five forces model The bargaining power of suppliers The suppliers of raw materials to Heineken Company are mainly farmers. Therefore, the threat for power of supplier is high. The bottle supplier for Heineken is provided by Heye Glas Nederland which is fully supplied the green bottle for the worldwide distribution of Heineken beer. In the past, Heineken kept only 33% its stake in Heye Glas in order to secure the supply of high quality export bottles at a lower cost to meet the needs for demand but now Heineken has kept 100% stake in 2002. Beer is produced by water, barley, hops and yeast. These ingredients are supplied by farmers. Heineken also mentioned that competition for agricultural products from the biofuels industry that is affecting their costs. The bargaining power of buyers The buyers in this industry have many choices as there are many companies serving beer. This will increase the choice of the customer and hence the threat for power of buyers is high. For example, for serving customer at the pub, there are a lot of beer brands for them to fit their taste such as Guiness, Carlsberg, Tiger. Therefore, buyers now have a choice to choose the one they like. As a result, choosing of customer for what kind beer they want to drink will bring threats for Heineken. The threat of potential new entrants Nowadays, an explosion of smaller brewers has entered the market during the past decade that making the industry much more competitive. Heineken is one of the largest brewers in the world and they have to share market with other brewer. The barrier in the beer market is low. Therefore, the threat of potential new entrants for Heineken is high. This will make Heineken considering to create innovation or uniqueness into their product that can sustain competitive advantages in the beer market. The threat of substitutes Beer is a kind of beverage which contains alcohol. However, people can switch to drink wine which also is alcohol drink. CustomerÃ¢â¬â¢s taste is not similar so that they have right to choose what they want to enjoy, so this will affect the beer market as well as Heineken Company. As a result, the threat of substitute for beer market is high. The extent of competitive rivalry Heineken has achieved the economy of scale in the market especially in Europe. It holds about 30% of market share in European beer market. Since the beer market is growing, so the competitors will try to attain their growth targets. The large brewer like Heineken tends to enforce their own strategies to the beer industry and due the economies of scale they will produce higher quality and unique products which can make their own place in the market, hence keep themselves growing to achieve their target. Chapter 2 Internal analysis of the company Analysis the resources Tangible: Since Heineken know that their plant and equipment is a key for company production, they invest so much in the infrastructure to make sure that their operation is working efficiently. For example, Heineken have four breweries in Russia, all those use KHS Till plant technology. This equipment at HeinekenÃ¢â¬â¢s packaging can processes 50 liter kegs in addition to 30 liter at an output of up to 140 kegs an hour. As a result, the two-lane machine can operate with one racking, six washing and sterilizing stations. Intangible: brand name is most valuable asset of the Heineken Company, they has built this name Heineken with premium brand. The company recognizes that brand is very important key for them to develop a strong presence globally in the beer market so that Heineken have a lot of marketing activities for its brand name. Furthermore, branding is also a highly defensible competitive advantage for Heineken; this would bring strength to company expansion. Hence Heineken Company can stretch their production internationally and add more money for company. Management capability: Heineken implemented a number of new initiatives in the area of leadership development in 2004. One is a new leadership competency model that defines behavior expectations from all senior managers at Heineken. The model takes Heineken company ambitions and values as a starting point and translates these into the leadership behavior required from senior managers. With marketing differentiation using different message within normal media advertising can also have differentiating effect. This differentiation will bring strengths for Heineken. When most advertisers are pursuing essentially the beer market with the same message like showing gregarious groups of males in public houses having an enjoyable night out. In the other hand, Heineken managed to differentiate its beer by using a series of advertisements employing humour and the caption Heineken refreshed the parts other beers can not reach. Organizational structure In 2005 Heineken announced that it was created a new top management structure, this would drive and support growth as a global organization. In order to connect functions, operation and finance in a more effective way, the company create a new more streamlines Executive Board. Hence change would lead to create strengths for operating regions and global functions. Furthermore, Heineken has grown substantially over the past four years. The new structure is better suited to the present organization and ensures faster decision-making. In the beer market where the consolidation process is accelerating and rapid introduction of innovations is essential, this is crucial to the achievement of HeinekenÃ¢â¬â¢s long term ambitions. Culture Heineken is proud of they are one of the worldÃ¢â¬â¢s great beer companies. Hence their culture will reflect the company view and values. These values create so many strengths for company to develop their environment within the company. Heineken based on the value that they respect their employees, business partners, customers, shareholders and all others who are connected to the company. Furthermore, Heineken make life more enjoyable by bring enjoyment to life, they also encourage this core value within the working places and atmosphere within the company. In addition, company has a fundamental belief in the concept and delivery of quality, it is also reflected in their other activities such as their social and employment policies. This will create benefit and value both for Heineken and their reputation. As a result, these values define Heineken corporate culture and working methods which help company to do the business successfully. Chapter 3 Evaluation of the companyÃ¢â¬â¢s financial performance 2005 2006 2007 Return on investment (ROI) 14% 20% 12% Return on equity (ROE) 21.1% 27.0% 15.5% Net profit margin 7.05% 11.02% 7.72% Dividend payout ratio 25.8% 24.3% 42.5% Earnings per share 1.71 1.90 2.29 Return on investment of Heineken changed from 2005 to 2007. In 2006 return on investment have a significant improvement compared to 2005. The increasing of ROI show the efficiency which Heineken got profit from its technology investment. The reason for increasing ROI is that the company deployed Windows Mobile 5.0 in 2006 and has experienced significant business benefits. Company has improves account development by offering its sales representatives instant access to pricing, promotions, availability and accounts receivable data. Window mobile led to an average sales increase after deployment. The return on equity of Heineken rose 5.9% in 2006 then declined 11.5% in 2007.The reason for going up return on equity is net profit increasing. In 2005 HeinekenÃ¢â¬â¢s net profit is Ã¢â ¬761 millions and it was increasing to Ã¢â ¬1211 millions in 2006.The rising of return on equity shows that the company have used money from shareholders effectively in manufacturing. However, declining return on equity indicated that the Heineken beer was getting more expensive to produce because the prices of raw materials and packaging have raised significantly, transportation, energy and pressure on labor costs were also expected in the beer market. In 2006 net profit margin of Heineken increased so much compared with 2005 and 2007. 11.02 % show that the company got more profit from their sale. In that year, the distribution of Heineken went up with 111.9 hectoliters in consolidated beer volumes. Furthermore, the company achieved the best annual growth rate for Heineken premium brand for many years with growth of 11.8 %. With these reason Heineken achieved their performance effectively. From the table above we can see dividend pay out ratio decrease 1.5% in 2006 and then increase so much 18.2 % in 2007.The reason of increasing is that HeinekenÃ has been changing its dividend pay-out policy at the end of 2006. This means that it would up the amount paid to shareholders from 20-25% of net profit before exceptional items and amortization to between 30% and 35%. These proposals support Heinekens intention to preserve its independence, to maintain a healthy financial structure in order to grow the business both organically and through acquisition. Earning per share of Heineken increased from 2005 to 2007. These figures above show the company has maintenance revenue. Distributions of company increase every year so that Heineken could earn from 1 share which investors have invested. Moreover, increasing company market share by earning per share will indicate that the profit getting from every dollar invested can satisfy both HeinekensÃ¢â¬â¢ stakeholders and shareholder. Chapter 4 Recommendations on strategic options 4.1. To face with the alcohol pressure in the market, Heineken have the strategy to produce and sell beer in the ways that have a positive impact on society at large. With this strategy, Heineken promotes awareness of the advantages and disadvantages of alcohol, this also encourage informed consumers to be accountable for their own actions. For example, in 2006 the launching of the Ã¢â¬Å"Enjoy Heineken ResponsiblyÃ¢â¬ program was finalized. Therefore nowadays company is becoming more and more engaged to promote responsible consumption in partnership with consumers. By using this strategy as purpose the company does not want beer consumers to condone in any way the abuse of alcohol, particularly Heineken Brand. As a result this will lead to the Company get positive aspect for their production in the society. I strongly recommend Heineken should use this strategy. 4.2. For solving the problem with currency risks as the global market is unstable in exchange money, Heineken have a strategy on hedging transactional exchange risks which postpones the impact on company finance result. After deduction of dollar-denominated costs, a net cash inflow in US dollars remains. This cash flow is hedged in advance mostly by means of forward contracts. This reduces the volatility of export results and the Ã¢â ¬ cash flows due to short-term fluctuations in the value of the US dollar against the Euro. Transactions are entered into with a limited number of counterparties. I donÃ¢â¬â¢t recommend that the company use this strategy because the global market is unpredictable. 4.3. To intensify the international marketing Heineken have sponsored for a lot of entertainments activities in the world. This strategy would bring the biggest strengths for Heineken brand name. For example, company is a major sponsor of tennis champion such as Wimbledon, the US Open, Australia Open and the Shanghai Open. Moreover, the music plan adopted also remains a key sponsorship area for Heineken. For example, in Singapore has been successful that it is now used in other markets such as Malaysia and Thailand. Following with these marketing strategies on advertisement, the good thing company would show that Heineken always attend to social activities that mean they are not only bring enjoyable but also bring responsible to people around the world. I recommend Heineken should continue to pursue this strategy. 4.4. For adapting with development of technology, Heineken has a strict information technology (IT) security strategy to ensure confidentiality, integrity and availability of information and data. Furthermore, supporting and monitoring activities towards operating IT are being strengthened for the company. Moreover, IT contingency measures with regard to the partly outsourced IT shared service centre. The benefit of this strategy on IT would help Heineken to connect with so many operations around the world. I recommend company use this strategy. 4.5. By using brand strategy Heineken has built a strong portfolio that combines the power of local and international brands. Furthermore, the consistent growth of brand requires solid creative brand management which Heineken coordinate centrally. Company has developed and adopted brand strategy to get strengthening in the market share where there are lots of other brewers there. I recommend Heineken use this strategy. 4.6. To sustain with strong position in the beer market, Heineken have adapted competitive strategy in its management. By offering competitively priced and quality products, Heineken want to give consumers the premium product with reasonable price compare with other brewers. The management of company recognizes that to maintain HeinekenÃ¢â¬â¢s sales, they need to focus on what consumer needs. In addition to look at the strengths and weaknesses of the competitor in the key business segments, competitive strategy would bring advantages for Heineken to compete with itÃ¢â¬â¢s competitor for attracting customers. Chapter 5 Recommendations on the most feasible strategic options 5.1. Responsibility is a heart of alcohol policy. Based on the alcohol policy adopted Heineken want to stress that their operations need to sustain dialogue with government and health organizations. The objectives of policy are to prevent misuse and abuse of alcohol. Furthermore, they want to ensure that responsible consumption of beer is socially acceptable. In addition to help Heineken be a truly sustainable business. With this alcohol policy would implement for succeed of strategy. 5.2. As consumer needs and tastes vary, Heineken must decide how much to adapt marketing strategy to local needs using a variance of standardized marketing mix adapted marketing mix, owing to the strong brand preferences loyalties that exist among the beer drinkers. Also, Heineken need to prioritize between global integration versus national responsiveness evident from decreasing sales in Holland, Rest of Europe, and Africa. Besides that the beer market is also attractive in terms of size and future growth, this approach would help the company differentiate Heineken beer with premium price compared with other beer brewer. 5.3. Data synchronization provider system can manage data behind the firewall while benefiting from one point of access to the Global Data Synchronization Network. This system would help to minimal disruption to Heinekens day-to-day operations. This integration is the first in a series of initiatives that Heineken International has been planning to accelerate its data synchronization activities through one central connection point. As a result, this system would implement highly for technology strategy to the company. 5.4. Using the branding policy the company has built brand recognition for long-term to differentiate the brand Heineken and be sure to add value to the product in order to get the brand loyalty. The brand policy also stresses for maintenance of beer quality or creates benefits for society and culture, and also provides an emotion to its consumers. This policy would add more value for Heineken Company in successful way. 5.5. Heineken has in place a strong competition compliance policy across the entire business and has a comprehensive code of business conduct for all employees. Furthermore, Heineken believes in the principle of fair competition. It will keep in place policies and programmes aimed at giving guidance to employees to ensure that they understand competition laws and act in compliance with them. Chapter 6 The assessment of the usefulness of strategic management models 6.1. To me, I find that the PEST analysis is a useful business measurement tool. ItÃ¢â¬â¢s looking at external factors to the organization. Following the factors of the analysis, I can see the big picture of HeinekenÃ¢â¬â¢s environment in which they are operating and the opportunities and threats that lie within it. By analyzing factors of PEST model I can understand the Heineken external environment and how the environment affects business performance of the company. 6.2. For me, I find that The PorterÃ¢â¬â¢s five forces tool is a simple but powerful tool for understanding where power lies in a business situation. This model is useful because it helps me understand both the threats of Heineken current competitive position and the strength of a position company are looking to move into. Furthermore, understanding the nature of Heineken competitive environment by using PorterÃ¢â¬â¢s five forces model, I can analyze what are crucially important for company to build long-term business strategy and sustain competitive advantages in the market. 6.3. SWOT analysis is a powerful model for me to understand Heineken strengths, weaknesses, opportunities and threats that company face. This model helps me to assess what Heineken can and can not do as well as its potential opportunities and threats. Therefore, I can know what may assist the firm in accomplishing HeinekenÃ¢â¬â¢s objectives and obstacles. Moreover, the model is also useful in the way that it gives me the overall performance of Heineken. Hence I can analyze where the place the company get their position. 6.4. Resource-based theory is useful to me in the analysis of internal factors of Heineken following these reasons. Firstly, I can find the factors that deliver sustainable competitive for the company like branding. Secondly, the physical resources can give me a look about the efficient operation of Heineken in new technology they adopted. Thirdly, by understanding resource-based I can recognize that the way company has the dominant position in the beer market compare with other breweries. 6.5. Financial analysis method is useful for me to understand the measurement of performance of Heineken. Based on the ratio formula I can see how effectiveness and how the financial risk company was doing. Moreover, looking at the numbers which company has represented on the financial statement, I can know the market share that Heineken has positioned in the market place and the market growth company has developed. As a result of calculating for financial analysis for every year I can find how the company has operated in the effectiveness way. Conclusion I think that with all analysis include external and internal environments, company performance and all the strategy and policies Heineken adopted will help company to step more successful in the future. Although Heineken now have some troubles in production or distributions but the top management are considering creating flexible way to overcome them and then Heineken Company will keep their position is that one of the most largest brewers in the world. Appendix Key financial ratios 2007 IFRS 2006 IFRS 2005 IFRS Net profit margin 7.72% 11.02% 7.05% Operating profit margin 12.0% 15.3% 11.6% EBIT margin 12.2% 15.5% 11.9% EPS 2.29 1.90 1.71 Operating cash flow per share 3.53 3.77 3.82 ROE 15.5% 27.0% 21.1% Equity/ borrowed capital 0.85 0.74 0.62 Interest coverage ratio 22.7 19.7 14.8 Net Debt/ EBITDA 0.8 0.7 1.3 Operating free cash flow/ net debt 0.39 0.59 0.43 Cash conversion rate
Thursday, September 19, 2019
The Life of Frederick Douglass Frederick Douglass was born in Tuckahoe, Maryland, near Hillsborough. He doesnÃ¢â¬â¢t know for sure of his age, he has seen no proof and his master will not inform him. Most masters prefer for their slaves to stay ignorant. He believes that he was around twenty-seven and twenty-eight when he began writing his narrative - he overheard his master say he was about seventeen years of age during 1835. His mother, Harriet Bailey, was separated from him when he was an infant and she died when he was seven years old. FrederickÃ¢â¬â¢s father was a white man who could have been his master but he never found out. Education was of utmost importance in his life. He received his first lesson while living with Mr. and Mrs. Auld. Sophia Auld, FrederickÃ¢â¬â¢s "mistress", was very humane to him and spent time teaching him the A, B, CÃ¢â¬â¢s. After he mastered this, she assisted him in spelling three and four letter words. At this point in his lesson Mr. Auld encountered what his wife was doing for Frederick and forbid her to continue. He believed that "if you give a nigger an inch, he will take an ell" and continuing with "learning would spoil the best nigger in the world". The masters felt that an ignorant slave formed a choice slave and any beneficial learning would damage the slave and therefore be futile to his master. His next step on the road to success was during his seven years living with Master HughÃ¢â¬â¢s family. Frederick would make friends with as many white boys as he possibly could on the street. His new friends would be transformed into teachers. When he could, Frederick carried bread on him as a means of trade to the famished kids for knowledge. He would also carry a book anytime he had an errand to run. The errand would be completed quickly, allowing extra study time. When Frederick was working in Durgin and BaileyÃ¢â¬â¢s ship-yard he would notice timber marked with various letters. He soon discovered how the letters matched the type of wood and the names of these letters. Any boy he met that could write he would challenge them to a writing contest. Frederick would use the letters he recently learned and told the child to challenge that. He then copied the Italics in WebsterÃ¢â¬â¢s Spelling Book until he knew them well.
Wednesday, September 18, 2019
When someone mentions the Beatles, most people who know of the band would think of Lennon, McCartney, Ringo and Harrison playing great music on stage. The Beatles still are the best pop rock group ever and it has been said that no other pop rock band will come close to their level of success. Their music was fresh, new and of course it sounded fantastic. But there have been rumors and stories about what the Beatles were singing about, and also about the band members such as whether Paul McCartney was dead or alive along with many other well-known controversial rumors.Elson manages to bypass all this hearsay and write and intimate diary of Paul McCartney's life and also a short history of his father and mother. It is in two parts, the first explores Paul's childhood and his experiences of growing up, meeting other members of the Beatles and how their careers developed.The book also goes on to clear up rumors about their music and what stimulated the Beatles to write songs. The second part explores Paul's solo career and life as a family man with Linda.The book starts off when Paul is a young child and explores Paul's influences such as his father who had a deep passion for music and shared this passion with his two boys. Epstien explains how Paul loved the guitar and how this enabled him to write songs to communicate his feelings inside him, an example is when he wrote "Let it be" which was about his mothers death. "When I find myself in times of trouble, mother Mary comes to me, speaking words of wisdom, Let it be"The book continues to travel through the various stages Paul went through as a child, his passion for music, his talents at school and his aspirations for become a teacher. It describes his first meeting with John Lennon and how the two boys shared their musical talents and songwriting ideas that developed songs that later on in life would be hits all over the world.Originally John and Paul didn't have compatible styles o f music. However, after time spent together they shared their music and songwriting ideas and most of the Beatles music was composed even before the band was formed.The other two members of the band Ringo Star and George Harrison and their entrance into McCartney's life is written about as well as their influences on the music a very brief history of their family life.
Tuesday, September 17, 2019
When a company experiences a financial setback of the magnitude that More Beer, Incorporated had after its failed venture into internet marketing, it sometimes becomes necessary to reduce the workforce in order to mitigate the losses. The Human Resources (HR) Department faced a very difficult decision in choosing whom to fire, as there was a potential for legal action with each of the five candidates presented for possible termination. In addition, many of the candidates also had personality traits or issues in their personal lives that could have contributed to the decision. In the ending analysis, however, one must remember that More Beer, Incorporated is a business, and the personnel decisions made herein must first serve the best interest of the company, not the individual. Therefore, after careful consideration, the HR Department has concluded that the best way for the company to survive the economic downturn is to terminate three of the five employees and internally transfer the other two, according to the following recommendation, effective at the start of the pay cycle three weeks from Monday. Terminations The three individuals recommended for termination will all receive a severance package equal to one weekÃ¢â¬â¢s salary for every year of service to the company, plus additional pay and benefits noted below. Each individual will be required to sign a waiver that releases More Beer, Incorporated, from any future claims against the company regarding their termination. The employees will be given 45 days from the date of notification to consider their respective severance packages. All three employees will be required to sign a confidentiality agreement that stipulates they are not to divulge any proprietary information they may have acquired during their employment with More Beer, Incorporated. Mike Williams Mike WilliamsÃ¢â¬â¢ employment is recommended for termination because his particular area of expertise involves maintaining the computer systems which will be obsolete when that segment of the company closes. Therefore, his skills will no longer be an asset to the company. His above average productivity, excellent attendance, and educational background indicate a strong work ethic that will be an asset to another organization. A Letter of Recommendation stating as much will accompany his severance package. In addition, Mr. Williams will receive all of his accrued sick leave, vacation, and holiday pay. In terms of post termination litigation, the company must ensure it is in compliance with Title VII of the Civil Rights Act as it pertains to race, as Mr. Williams is of Asian descent, and he may allege that his strong accent was a reason for his termination. In Fragante v. City and County of Honolulu, the appellate court determined that Ã¢â¬Å"[a]n adverse employment decision may be predicated upon an individualÃ¢â¬â¢s accent when Ã¢â¬â but only when Ã¢â¬â it interferes materially with job performanceÃ¢â¬ (Twomey, 2013, p. 450). Although other employees complained they had difficulty understanding his heavily-accented English, Mr. WilliamsÃ¢â¬â¢ primary job was with maintaining computers, which has no requirement for oral communications. Accordingly, this argument should hold as a successful defense against both a disparate treatment and disparate impact claim, should Mr. Williams choose to pursue either of those allegations of unlawful employment discrimination. Phillip Price Phillip Price is also recommended for termination on the appointed effective date. The only positive contribution he made to the company was in the programming area, which is being eliminated. Mr. Price is an average performer, with an attendance record showing that he was absent nearly 43 percent of the time he was scheduled to work in the past two months. His overall track record is average. His supervisors have documented all of these performance items. There is no apparent benefit to transferring him elsewhere in the company, especially since Mr. Price mentioned he feels he has been treated differently after recently announcing that he is homosexual. Mr. Price will likely argue his termination is a violation of Title VII of the Civil Rights Act as it pertains to sex. He may also claim disparate treatment or disparate impact. Title VII does not contain specific language protecting against discrimination based on homosexuality, as both the Equal Employment Opportunity Commission (EEOC) and the courts Ã¢â¬Å"have determined that the word sex as used in Title VII means a personÃ¢â¬â¢s gender and not a personÃ¢â¬â¢s sexual orientationÃ¢â¬ (Twomey, 2013, p. 427). Still, in Oncale v. Sundowner Offshore Services, Inc. , the Supreme Court found that sex discrimination consisting of same-sex harassment is actionable under Title VII. To have a claim under Title VII, Mr. Price would have to allege that his termination was solely based on Ã¢â¬Å"sex, Ã¢â¬ thus bringing his case within the precedent set by Oncale. More Beer, Incorporated is an at-will employer, which means it is Ã¢â¬Å"free to terminate the relationship with or without cause,Ã¢â¬ (Twomey, 2013, p. 598), so his argument will be moot. Mr. Price will receive the severance package that consists of one week of pay for every year of service to the company. He had used all of his sick leave, annual and holiday leave, and so will not receive any additional pay. Sally James Sally James is the third employee recommended for termination. While she is a very popular employee, and has longevity with the company, neither of those factors contributed to the companyÃ¢â¬â¢s bottom line. Her productivity and performance were very good, but they were in a segment of the company that failed overall. Ms. JamesÃ¢â¬â¢ age, 55, puts her in a protected class, so the company must be wary of potential violations of the Age Discrimination in Employment Act (ADEA) and the Older Workers Benefit Protection Act (OWBPA). The company can use the Ã¢â¬Å"reasonable factors other than ageÃ¢â¬ (RFOA) provision (Twomey, 2013, p. 536) as an affirmative defense of these claims. Because Ms. James has been with the company for twenty years, the company is going to offer her an early retirement package that will include the standard severance offer of one week basic pay for every year of service to the company. In addition, she will be offered stock options in the company, enrollment in the companyÃ¢â¬â¢s Tuition Assistance plan for her son for one full semester of college, and Social Security Ã¢â¬Å"bridgeÃ¢â¬ payments until she reaches retirement eligibility age (Twomey, 2013. p. 546). Acceptance of the retirement package would require Ms. James to waive any future claims against the under ADEA in accordance with the requirements set forth in the Oubre v. Entergy Operations, Inc. These requirements would include: 1. The waiver is part of a written agreement. 2. It makes specific reference to rights or claims under the ADEA and may refer to Title VII and all other claims. 3. It does not apply to rights or claims that may occur after the agreement is signed. 4. It is exchanged for value that is in addition to what the employee would otherwise be entitled to receive. 5. The employee is given written advice from the employer to consult with an attorney. 6. The employee is given a 21-day waiting period to consider the agreement and a 7-day period to revoke the agreement. (Twomey, 2013, p. 548) Transfers The remaining two individuals on the list will be transferred to positions within the company effective immediately. They will retain their current salaries and seniority in the company. Margaret Jones Margaret Jones will be transferred to the Sales Department. Although the internet sales concept for More Beer, Incorporated was a failure overall, Ms. JonesÃ¢â¬â¢ contributions were significant, and she has demonstrated that she is a dynamic salesperson who can contribute to the companyÃ¢â¬â¢s profits. The decision to retain Ms. Jones was not made in any part because of her race and her affiliation with a local chapter of a civil rights group. To elect to retain or fire her based on her race or gender would be discriminatory, and would be in violation of Title VII of the Civil Rights Act on the basis of race or sex. The fact that she is perceived to be a ladder climber, out only for herself, or not a team player, has no bearing on the success of the company, and therefore has no consideration in making this business decision. Jenny Smith Jenny SmithÃ¢â¬â¢s multi-lingual status has been a boon to the companyÃ¢â¬â¢s global marketing efforts. Accordingly, she will be transferred to the Human Resources Department, Marketing and Public Relations Division. She will continue in that capacity if she chooses to return to work at the completion of her six weeks of maternity leave in compliance with the Family Medical Leave Act. That she is female and of Hispanic origin gives her protection under Title VII of the Civil Rights Act. The fact that she is currently pregnant puts her in a protected status under the Americans with Disabilities Act (ADA), the Rehabilitation Act, and the Pregnancy Discrimination Act. In order to make a reasonable accommodation to the disability of her morning sickness, the company will permit her to work from home as necessary, which will reduce her absenteeism and increase her productivity for the company. Conclusion The decision to fire a group of employees is never a popular one, and is rarely a pleasant task. The Vice President of Human Resources for More Beer, Incorporated performed a detailed analysis of the candidates, and makes the above recommendations with the companyÃ¢â¬â¢s financial future as the primary basis for its decisions. Additionally, the HR Department had to consider potential legal ramifications of terminating these employees, even the ones who were ultimately retained. Finally, the profoundly distressing effects of terminations on the individuals were not lost, and every attempt has been made to mitigate the financial or professional impact wherever possible. References Twomey, D. (2013). Labor & employment law: Text & cases. (Fifteenth ed. ). Mason, OH: South-Western.
Monday, September 16, 2019
For my ethnography project, I decided to observe the Starbucks on Rockside Road in Independence, Ohio. My plan was to observe the subculture of StarbucksÃ¢â¬â¢ customers. A subculture is defined as a Ã¢â¬Å"structured social inequality or, more specifically, systematic inequalities between groups of people that arise as intended or unintended consequences of social processes and relationships. Ã¢â¬ My question was twofold. Does Starbucks appeal to certain social statuses? And if so, does Starbucks serve as another example of social inequality? The City of Independence has approximately 7,000 residents. The City is a hub for business, the majority of which are primarily based on Rockside Road. There are a variety of businesses, many of which include law firms, medical offices, and accounting firms. These busy professionals are just the type of clientele that I observed patronize Starbucks. The Starbucks on Rockside Road is located in a mid-size strip mall. The mall itself is very clean and has ample parking. Starbucks is flanked by other restaurants including HeidiÃ¢â¬â¢s, Zoup, Chipotle, Winking Lizard, Quiznos, and Thai Gourmet. All of the surrounding restaurants also cater to working professionals who have limited time available for food in their hectic days. The strip mall also contains non-food businesses that complete the full-service atmosphere. The additional stores include a large KinkoÃ¢â¬â¢s, Verizon Wireless, AT&T, a second printing shop, and a nail salon. The Starbucks is located right next to KinkoÃ¢â¬â¢s. It announces its presence with a large, tripod chalkboard that subtly invites passersby to reminisce of childhood. Indeed, the chalkboard notices offer some form of comfort in an otherwise hectic life. I first walked past the chalkboard on October 30th, a crisp Saturday in Northern Ohio. The chalkboard sign confirmed that it was in fact fall. The sign was decorated with orange and brown ribbons and offers of Ã¢â¬Å"Toffee MochaÃ¢â¬ or a Ã¢â¬Å"Pumpkin Spiced LatteÃ¢â¬ along with a Ã¢â¬Å"homemadeÃ¢â¬ glazed donut. As I pushed open the glass door, with the immediately recognizable green and white StarbuckÃ¢â¬â¢s logo, I was met with a warm breeze. The scent of chocolate and coffee beans filled the store. The sound of Wilco and grinding coffee beans invaded my ears. The store was about 500 sq. ft. in size. It contained a long, dark green counter behind which had two smiling twenty-something Ã¢â¬Å"baristasÃ¢â¬ who were ready and waiting to take my order. Several Espresso machines were situated along the counter. There was also a large display case which contained what appeared to be delicious donuts, cookies, and various pastries. The store also offered Ã¢â¬Å"EthosÃ¢â¬ water which informs potential purchasers that a portion of the money goes to ensure clean drinking water in less fortunate countries. Patrons could also purchase organic non-coffee drinks, coffee mugs, ground Starbucks coffee, and iTunes music downloads. The store had an interior designed for comfort. Sixteen wooden tables filed the area. The floor was a deep cherry faux wood. There were multiple pictures on the walls, some of which depicted the different countries that Starbucks gets its coffee. The store was decorated for fall. Two sequenced pumpkins sat on the counterÃ¢â¬âone at the register and one at the pickup station. The pumpkins matched the pumpkin chalk on the outside display. The color orange was splashed around the store. There were already other patrons when I arrived. One table was occupied by a twenty-something male, typing away on his Macintosh laptop. A young couple occupied another table. The remainder of the store contained a scattered group of males and females, all with laptops, who appeared to be working on some kind of project. I chose a table situated near the middle of the store and began gathering my observations. Over the span of two weekends (the weekends of October 23rd and October 30th) I had an opportunity to observe the type of people who purchased the Starbucks Ã¢â¬Å"logo. Ã¢â¬ On both Fridays I conducted my observations between the hours of 6 and 8pm, and on each Saturday between 11am to 1pm. I found that the majority of the clientele appeared to be middle or upper class individuals. It became apparent that Starbucks appealed to people of a certain socioeconomic status through their thoughtful use of products, language, decor, and location. Socioeconomic status (SES) is defined as Ã¢â¬Å"an individualÃ¢â¬â¢s position in a stratified social order,Ã¢â¬ meaning upper middle, or lower class. SES is primarily determined by income. The remainder of this paper will look at the different ways that Starbucks caters to the more privileged. First, Starbucks products are clearly designed for those with a disposable income. Realistically, who would spend almost three dollars for a small cup of coffee when you can get a jumbo coffee for . 99 cents at a gas station? One reason could be quality. Starbucks claims to use high-quality whole bean coffee and sells them in a traditionally European style. But the products are not limited to coffee. Starbucks also offered a full array of organic drinks, socially conscious products, outrageously priced coffee mugsÃ¢â¬âsome of which are plastic versions that prominently display their logo, and music downloads. There were two available downloads that I observed. One was a new release by a famous artist. The other was a new release by an Ã¢â¬Å"undiscoveredÃ¢â¬ new group. Similar to the music, my observations revealed that the Starbucks patrons primarily fit into two categories. The first were businessmen and women, who entered in suits with cellphones in hand, and hastily ordered a latte before running out the door. The second were twenty-somethingÃ¢â¬â¢s who ordered a drink and settled in to work on their laptops. These observations suggest that primarily busy, preoccupied people only have time to grab a cup of coffee and get back to work, and since Starbucks offers quick quality, itÃ¢â¬â¢s the store of choice. Second, Starbucks has a language reminiscent of an Italian coffee shop. Instead of small, medium, or large, Starbucks uses Ã¢â¬Å"tallÃ¢â¬ for small, Ã¢â¬Å"grandeÃ¢â¬ for medium, and Ã¢â¬Å"ventiÃ¢â¬ for large sizes. This variation in language may indicate that in order to buy Starbucks coffee, you must have a basic knowledge of foreign languages which could reflect oneÃ¢â¬â¢s educational attainment. The change in language may add an air of sophistication to their products as well. Instead of ordering a large coffee, someone could order a Ã¢â¬Å"venti carmel macchiato. Ã¢â¬ The language barrier at Starbucks may reflect a culture that only certain people with a certain educational level are able to recognize and adjust accordingly. This would apply to the middle and upper classes which are typically associated with higher educational levels and which could indicate a more cultured person. Third, Starbucks uses its decor to appeal to people with a higher socioeconomic status. What is Starbucks trying to sell besides coffee? An experience. The atmosphere of Starbucks is warm and enticing. The store uses mainly earth-tone colors to give the customer a sense of comfort. The lighting is dim and sets a mood for relaxation and is reminiscent of a library at night. The lighting is designed to highlight certain products in the same way that an expensive restaurant showcases its food. The decor also contained a worldly feel. The artwork was meant to evoke an exotic getaway. The store was exceptionally clean and the Ã¢â¬Å"baristasÃ¢â¬ were friendly. Through its decor, Starbucks is trying to sell an experience where customers enter a sophisticated yet understated store to purchase products that they would have had to travel the globe to obtain. This experience is indicative of the values and lifestyles commonly associated with the middle and upper class; education and travel. Fourth, Starbucks chooses its store locations as a means of attracting a certain type of clientele. According to David Firestone, director or real estate for Starbucks, there are two ground rules the company uses when deciding on locations: one, always open near an upscale nchor, two, thereÃ¢â¬â¢s no such thing as too many coffee franchises if pedestrian levels are high enough. Through Starbucks. com website store locator, the search for Starbucks in downtown Cleveland showed over twenty locations in the area, while a search in the less-affluent East Cleveland area found no store locations. This stratified market may suggest that Starbucks chooses locations in areas that would predominantly draw customers from middle and upper classes. Also, for more technology savvy customers, Starbucks designed an iPhone app that avigates the nearest Starbucks for any destination the customer is at, around the world. Through a combination of selective store placement and easy access, Starbucks makes its stores accessible to some, but not to all. In conclusion IÃ¢â¬â¢ve found that Starbucks tries to sell its idea of Ã¢â¬Å"coolÃ¢â¬ to the middle and upper classes through its sleek products, unique language, smooth decor, and specific store locations. Since Starbucks makes a great effort to appeal to people of higher socioeconomic statuses, the subculture of the storeÃ ¢â¬â¢s customers follows suit. The subcultureÃ¢â¬â¢s distinct cultural values and behavioral patterns are those associated with Ã¢â¬Å"high societyÃ¢â¬ living, like wealth, education, and privilege. So, it appears that Starbucks serves as yet another chain of social inequality in the world of commercial business through its specific attention to a target audience that consists heavily of wealth, power, and prestige. This ethnography helped me to better understand that certain marketing strategies appeal to certain subcultures, which relay back to specific socioeconomic statuses. And in a world run by money, status is everything.
Sunday, September 15, 2019
Between the fifteenth and the nineteenth century the fur trade and slave trade connected the global commerce, and played a significant role in world history. Each of them transformed the destiny of North American and African society. Politically, economically and culturally, North Americans were dying slowly in seemingly more peaceful fur trade, and Africans were immediately hit by the wreaked havoc of slave trade. North AmericaÃ¢â¬â¢s ostensible peace with the outside world could not avoid civil wars, as African peopleÃ¢â¬â¢s self-protection could not avoid European gory violent human plunder. In Africa, people were still live in a village community system with introverted self-governments. When colonists came, big kingdoms fragmented because the increasing of trade and arms. In this way, there was not a large-scale revolt or uprising in native Africa. As a result, small societies suffered from frequent slave raiding. As long as their own village was safe, they passively watched as people in other villages were raided and sold. Benin was a developed state in West Africa. In the 16th century the oba banned slave trade and relatively avoided slave traders. They bought arms from Europeans to protect themselves, but never helped others. In consequence, the power of oba declined in the 18th century and they could not stop the slave trade any more (456-457). When armed aggressors burst in small villages, they could not even protect themselves like Benin, but just be pillaged in desperation. Native Americans maintained cooperative relationships with Europeans under the fur trade. It protected them from extinction and slavery like those in Africa. However native people noticed the benefit of the fur trade, and then the profit of trade intensified the competition among tribes. They began to demand guns to deal with other tribes Ã¢â¬â and Europeans had gun. Therefore a circulation of furs and guns was fo rmed, and the increasing of arms imports aggravated the political conflicts of native people. In other words, more trade, more warfare. Fur trade brought North America both modern civilization and prolonged damage, yet the African economy was directly attacked by slave trade. North Americans traded furs with Europeans and received foreign goods and benefits such as pots, guns and metals. Europeans finished products gave them modern technology and tools, and caused the self-sufficiency system to transform to agricultural villages. Hurons lived in North America Ã¢â¬Å"in the early seventeenth centuryÃ¢â¬ . They traded many beavers and Ã¢â¬Å"received copper pots, metal axes, knives, cloth, firearms, and alcoholÃ¢â¬ (447). It was a big step for North America, to become a modern and developed society. Nevertheless, it was also the start of a long-term decline. Ã¢â¬Å"By the 1760s, hunters in southern British colonies took about 500,000 deer every yearÃ¢â¬ (446). Hunters largely killed industrious animals, the amount of them sharply decreased. The fur trade absorbed labor supply, and restricted other developments. In reality, North America had been lagged behind chronically under the simple and dependent economic system caused by fur trade. Unlike North America, Africa had been steadily developing for a while in sixteenth century. The slave trade, was unprecedented havoc for native people and society. Just demographically, Africa lost millions of population in the fifteenth through nineteenth century. The productivity was greatly broken. The economy stagnated, or even retrogressed without technology. Both native North American and African people lost part of their ethos and native culture. North America was changed more by profit motive; however Africa was forced by demographical transformation and authoritiesÃ¢â¬â¢ avarice. Before EuropeanÃ¢â¬â¢s arrival, North Americans led a primitive lifestyle as a part of nature. They had laggard tools and technology but mastered natural environment. Their moral quality could be confirmed by the origin of Thanksgiving holiday: Native Indian helped European settlers tide over the hard time. Although they were economically backward, their spiritual civilization was wealthy. But after they began to trade with Europeans, they killed animals in quantity, overly reclaimed land, and broke their belief of nature. The benefits of furs led people to trade for guns and fight other tribes. Many of them became alcoholics, spent a lot of money to buy rum and brandy. They used foreign products all the time, and forgot their traditional crafts. In Africa, Europeans raided and drove away people in different cultures, and exterminated many ancient civilizations. The Europeans trading living human without caring whether they lived or died, was a bloody humiliation in the history. The hard truth is that many native authorities joined slave trading for their own interest. Dahomey was a highly authoritarian state in eighteenth century. They fully participated in slave trade and helped Europeans capture a lot of native people (456-457). It was a miserable shame of African culture and entire human history, that the chiefs of states helped invaders do human trafficking. Both trades certainly destroyed a part of native civilization, and changed a part of people. The politics, culture and economy of the native North Americans were gradually negatively affected while trading with Europeans and Africans were rapidly devastated by large human raid. Once, struggling in the wheel of history, they grew and died.