Australian Beverages Limited

Exam case Australian Beverages Limited Pre-seen information Semester 1 2010 Australian Beverages Limited — Pre-seen information A. Introduction to Australian Beverages Limited — March 2010 Australian Beverages Limited (ABL) commenced soft drink manufacturing in 1937. During the 1970s and 1980s, the company expanded its beverage portfolio by entering into other non-alcoholic beverage categories, such as fruit and milk-based drinks. Entry into the snack food market was recently undertaken in response to declining consumption of carbonated soft drinks (CSDs), the company’s traditional area of business strength. This move also enabled ABL to leverage its strong distribution capabilities to supermarkets, convenience stores and hospitality channels by adding adding such complementary food products to non-alcoholic beverages. Nevertheless, CSDs still accounted for 90 per cent of company revenue in 2004. Tom Dwyer, the current managing director, has been with the company since 2005. He joined the company at a time when CSD growth was stagnating and shareholder confidence in the company was waning. This had resulted in the share price declining by 15 per cent in the two years prior to his appointment. In order to restore shareholder confidence, Dwyer established a strategic planning team within the company to assess the current product portfolio and identify organic and acquisition growth opportunities. From this review the importance of operational excellence was identified and strong investment was made in world class manufacturing facilities and systems. Process re-engineering was implemented to reduce costs of manufacture and time to market. Having finalised the integration of a snack food business acquisition just over 12 months ago, Dwyer is now aware that he needs to identify further growth options given predicted continuing decline in the CSD market. In January 2010 he asked the strategic planning team to undertake another detailed review of opportunities for future growth, specifically identifying products and markets where the company would have the capabilities for successful entry. Bottled water was one industry that was identified, based on its complementary nature to the existing beverage portfolio. This industry had been identified as ‘of interest’ in the ABL’s first strategic review in 2005. At that time the market was deemed too small and unsophisticated. However, the Australia bottled water manufacturing industry has grown significantly since this initial review. Dwyer has requested a detailed review to determine whether entry into the domestic bottled water manufacturing industry is now a viable strategic option. If deemed to be a viable strategic option, Dwyer also wants a recommendation whether the ABL should enter the industry by establishing its own operations or by targeting an existing competitor for acquisition in order to gain immediate market share. B. The Australian bottled water manufacturing industry 1 Bottled water is the fastest growing category in the non-alcoholic beverage market in Australia, with sales revenue of $1. 483 billion in 2009. The major segments of the industry include bottled still and sparkling water. Within these two segments, different packaging sizes and types are offered. Water can be purchased in a range of single or multi-serve bottles including 600 millilitre, 1 litre or 5 litre bottles from the supermarket or convenience store. Bottled water is also available in bulk packs (that is: 10 litres or greater) for water coolers for home or office use. Different types of water also exist, from naturally sourced sparkling mineral waters to purified 2 and specialty waters. Manufacturing facilities for purified water are generally located in close proximity to major water utility suppliers to minimise the transport distance from the water source to the purification plant. In contrast, most sparkling mineral water manufacturing plants are necessarily concentrated in close proximity to high quality mineral springs where the product is bottled at source, usually in regional locations. The bulky and relatively low value of the product as well as the high costs of transport mean that the manufacturing and distribution plants need to be located where there are major population centres. The Australian bottled water manufacturing industry is currently in a growth stage. Growth has been achieved due to the increase in per capita consumption of bottled water, albeit from a relatively low base compared with other more established beverages. As consumers become more health conscious and change their drinking habits away from CSDs to healthier beverages, bottled water would increasingly become their drink of choice. 1 2 All figures are for the year ended 31 December unless otherwise stated. Purified water is water that has been produced by distillation, deionization, reverse osmosis or other suitable processes. Page 1 of 21 As a result, sales of bottled water are expected to increase. Of particular significance in the industry has been the large number of new products that have been launched and accepted by consumers since 2005, making bottled water a dynamic and fast growing industry. 1. Evolution of the Australian bottled water manufacturing industry 3 A relatively new industry, the Australian bottled water manufacturing industry evolved out of the soft drink manufacturing industry during the 1990s. Soft drinks are those that do not contain alcohol. Soft drinks are distinguished from hard drinks—beverages such as distilled spirits, beer or wine—by the simple fact that they do not contain alcohol. Given bottled water is a category within the broader non-alcoholic beverage industry, trends impacting this broader industry also impact on bottled water. Total non-alcoholic beverage revenue in Australia was over $10 billion in 2009, including CSDs, bottled water, fruit juices, energy drinks, sports drinks 4, ready to drink teas and milk beverages. Table 1 shows the market share of bottled water within non-alcoholic beverages over the past 10 years and predicted market share to 2014. Table 1: Australian non-alcoholic beverages – market share of volume by category- 1999 to 2014 Category Diet CSDs Full calorie CSDs CSDs Bottled Water Milk Drinks* Fruit Drinks** Sports Drinks Ready to Drink Tea/ Coffee Energy Drinks Total non-alcoholic Beverages 1999 16. 70% 46. 10% 62. 80% 6. 40% 8. 20% 20. 70% 1. 50% 0. 40% 0. 00% 2004 16. 50% 41. 30% 57. 80% 9. 50% 9. 60% 18. 80% 2. 20% 1. 70% 0. 40% 2009 16. 30% 34. 70% 51. 00% 13. 30% 11. 90% 16. 90% 3. 70% 2. 00% 1. 20% 2014 (P) 16. 10% 25. 30% 41. 40% 17. 40% 16. 00% 14. 80% 5. 0% 2. 90% 2. 50% 100. 00% 100. 00% 100. 00% 100. 00% P = Projection * Includes white and flavoured full fat, skim and soy milk beverages ** Includes fruit juice and fruit drinks Australians consumed 963 million litres of bottled water in 2009. However, Australia consumption of bottled water is significantly lower as compared with the total consumption of the top 10 global bottled water consuming countries. Table 2 shows Australia’s per ca pita consumption compared with that of the highest consumption per capita countries in the world. When compared to similar markets, such as the United States, Italy, France and Spain, this data suggests that the Australian market has potential for a higher rate of consumption and sales growth before it reaches maturity. It needs to be noted, however, that the drivers for bottled water consumption can differ. The climate or lack of clean drinking water impacts on consumption levels in countries such as Mexico and the United Arab Emirates. However, in Italy, France and Austria, for example, consumption of bottle water is driven by fashion. A recent report by the Global Earth Policy Institute concluded that global consumption of bottled water rose 56. 8 per cent to 164 billion litres from 2005 to 2009. Table 2: Global bottled water consumption: Litres per capita – 2005 and 2009 Country Italy Mexico United Arab Emirates France Spain Germany Switzerland United States Australia Global Average 2005 170. 3 128. 7 120. 7 129. 0 112. 0 110. 8 99. 1 70. 0 35. 3 17. 9 2009 202. 0 185. 4 179. 9 155. 8 140. 3 137. 4 109. 5 89. 6 45. 5 26. 6 Total % Change 18. 6% 44. 1% 49. 0% 20. 8% 25. 2% 24. 0% 10. 5% 28. 0% 28. 9% 48. 6% Projection figures for the industry were provided by industry experts at the recent Bottled Water Institute of Australia’s â€Å"Future Focus† conference. Beverage designed to help athletes rehydrate, as well as replenish electrolytes, sugar and other nutrients, which can be depleted after strenuous training or competition. 4 3 Page 2 of 21 Table 3 contains consumption statistics of bottled water in Australia, showing actual consumption for the past seven years and projected consumption for the next six years. Table 3: Australian bottled water consumption, 2003 to 2015 2003 605 30. 6 2004 677 33. 8 2005 715 35. 3 2006 765 37. 2007 825 39. 9 Consumption million litres Consumption per capita (litres) 2008 906 43. 3 2009 963 45. 5 2010 (P) 1024 48. 0 2011 (P) 1089 50. 5 2012 (P) 1159 53. 3 2013 (P) 1235 56. 3 2014 (P) 1316 59. 4 2015 (P) 1398 62. 4 P = Projection Table 4 shows total industry revenue over the past seven years and projected revenue for the next six years for the Australia bottled water manufacturing industry, compared to that of non-alcoholic beverages in total. Historical growth in bottled water has been derived from increases in total consumption, helped along by strong customer acceptance of new products launched over the past five years. The increase in the total Australian population together with an increase in per capita consumption of bottled water has contributed to this historical growth. (Compared with other developed markets, however, growth in the Australian market has been achieved from a relatively low base). These trends are expected to continue in the future. Bottled water will therefore continue to increase as a percentage of the non-alcoholic beverage market. Table 4: Australian bottled water and non-alcoholic beverage revenue – 2003 to 2015 2003 810 $1. 34 7 199 2004 920 $1. 36 7 675 2005 990 $1. 8 8 191 2006 2007 2008 2009 Bottled water revenue $m Bottled water Ave $ per litre Non-alcoholic beverages revenue $m Bottled water % of non-alcoholic beverages 2010 (P) 1 070 $1. 40 8 723 1 200 $1. 45 9 250 1 335 $1. 47 9 648 1 483 $1. 54 10 449 1 660 $1. 62 11 024 2011 (P) 2012 (P) 2 121 $1. 83 12 235 2013 (P) 2 375 $1. 92 12 871 2014 (P) 2 611 $1. 98 13 515 2015 (P) 2 796 $2. 00 14 177 1 877 $1. 72 11 619 11. 3% 12. 0% 12. 1% 12. 3% 13. 0% 13. 8% 14. 2% 15. 1% 16. 2% 17. 3% 18. 5% 19. 3% 19. 7% P = Projection An exception to the identified growth trends, however, is the delivery of bulk water for home and office use. This product type is now in the mature phase of its life cycle. It has experienced low growth over the past five years as more offices and homes install water filters as a result of improvements in filter technology. To counteract the decline in bulk water sales to offices and homes, bottled water manufacturers have developed new distribution channels for bulk water products. Increasingly bulk packs are sold in petrol station forecourts and supermarkets. To date, manufacturing capacity within the industry has meant that manufacturers have been able to meet growing demand using existing manufacturing infrastructure. Production stockpiling has not occurred which has helped manufacturers protect their profit margins. They have been able to achieve an increased weighted average price per litre as all production is generally sold in the year it is produced, reflecting the strong demand growth. The average price per litre has also been influenced by new product launches during the past five years, particularly the range of premium 5 waters and smaller, more convenient packaging sizes that achieve higher average prices. 2. Bottled water manufacturing The Australia bottled water manufacturing industry has similar manufacturing and distribution processes to the non-alcoholic beverages industry from which it emanates. 2. 1 Water supply There are several sources of water for bottling, such as underground springs, wells and water storages. The source of water plays a key role in the quantity and quality of bottled water that is produced. About 25 per cent of all bottled water comes from water storages that is tap water) that is further treated before 5 Premium waters are generally higher priced waters which have higher levels of purity or are sourced from natural springs. Page 3 of 21 bottling at an average price of $2. 40 per kilolitre. The other 75 per cent of water comes from groundwater at an average price of around $1. 00 per kilolitre. In some Australian states, permits are required to extract groundwater. Bottled water manufacturers often contract out the actual extraction of water to external providers. The price of water in Australia compared with other countries and with other products is very low. It has become the subject of debate due to diminishing water supplies caused by extended drought conditions in Australia. To increase water prices would be politically contentious and many consumers would argue that because water is a basic human need it should be free. It is significant to note, however, that Australians pay a thousand times more per litre for bottled water than they do for tap water of similar quality. 2. 2 Treatment Once water has been sourced, the next step is to filter and purify the water to remove organic compounds such as metal ions. These compounds can contribute adversely to the taste and odour of the water and to bacteria that may cause health problems. Some water, mainly mineral water, is naturally carbonated at the source. However, more commonly, carbonation of both spring and purified water takes place in the factory (where both the treatment process and bottling occur). For other drink types (for example sparkling wines or beer) carbonation is achieved naturally during the fermentation of sugar into alcohol. However, for sparkling water, carbonation cannot be achieved through a fermentation process, as no sugar is added. It is therefore achieved by injecting carbon dioxide, into the water under pressure. The pressure increases the solubility of the water and allows more carbon dioxide to dissolve than would be possible under standard atmospheric pressure. When the bottle is opened the pressure is released, allowing the gas to come out of the solution, thus forming bubbles. 2. 3 Bottling and labelling After the water has been treated, and in some cases carbonated, it is transferred (if carbonated, this transfer occurs under pressure) to a filling machine. Here, bottles or bulk containers are filled and then passed by conveyor belt to a sealing machine. Once sealed, the bottles are packed in cardboard boxes for transport. There are currently 22 bottled water manufacturers in Australia certified by Food Standard Australia. Some manufacturers operate on a contract bottling basis only, providing bottling services to companies that have their own brands or to supermarkets which sell private label products 6. However, a number of these bottlers do have brands of their own which they sell. 2. 4 Packaging Bottled water is provided to consumers in a variety of packages. These may be glass, PET plastic (polyethylene terephthalate) or polycarbonate bottles. Water can be purchased in a range of single or multiserve bottles from various outlets and is available in bulk packs for water coolers for home or office use. The technology required to bottle water is quite basic and widely available. However, to achieve the volume of manufacturing required to be cost competitive, the level of capital investment is large. Key improvements in technology have been focused on quality control and automation to meet the need for greater manufacturing efficiencies and the strict health and regulatory standards of food standards that apply across all Australian states and territories. Environmental concerns are rising in relation to the disposal of empty drink bottles. With the increasing amount of water being consumed, the issue of the resultant bottle waste has become significant. In Australia, of the 118000 tonnes of drink bottle plastic used every year, only 35 per cent is recycled. In South Australia, where consumers can redeem a deposit for drink containers, the bottles made up less than 10 per cent of the state's rubbish, compared with 13. 4 per cent nationally. Drink bottles also take up more space than other waste, comprising 38 per cent of total volume of litter. Recycling experts believe that the recycling of empty water bottles is hampered because most bottled water is consumed as a convenience beverage outside the home where recycling bins are not readily accessible. Following the success of reducing the use of plastic shopping bags it is thought that the introduction of a nationwide empty bottle deposit law would create the incentive to recycle bottles. This would also help to ease the burden on taxpayers who pay for the clean-up of litter. Private label products or services are typically those manufactured or provided by one company for offer under another company's brand. Private label goods and services are usually positioned as lower cost alternatives. Page 4 of 21 3. Industry segmentation The Australian bottled water manufacturing industry has two clearly defined segments: †¢ Still water – this segment accounted for 7 6 per cent of consumption volume in 2009. †¢ Sparkling water – this segment accounted for 24 per cent of consumption volume in 2009. 3. 1 Still water Still water is generally consumed for hydration and thirst satisfaction at home, in the office or while travelling. Convenience is a major factor in the growth of the still water segment. It is used: †¢ as an alternative to other packaged beverages when consumers want to moderate their calories intake and seek an unsweetened, clean tasting and natural product. Water is the best and healthiest form of hydration as it is a fat and calorie-free thirst quencher; †¢ when consumers are not satisfied with the aesthetic qualities (for example, taste, odour and colour) of their tap water. Many people wish to drink something that is refreshing, clean and pure, and avoid certain chemicals used in the treatment of public water supplies, such as chlorine and fluoride; †¢ when consumers require the convenience of bottled water for their refreshment. This is especially the case with the development of more widespread leisure activities and the expansion of travel, for both business and pleasure; and †¢ for nutritional and performance benefits, such as near waters 7 and mineral water supplements claiming to have the nutritional components equivalent to a bowl of salad. As shown in Table 5 below, significant growth in bottled still water in Australia has occurred over the past six years, and this has driven most of the growth in the overall industry. As with the industry overall, the average price per litre has increased due to the introduction of premium bottled still waters. Table 5: Revenue and production- Still Water- 2003 to 2015 Type Revenue $million Production million litres Ave $ per litre 2003 555 516 $1. 08 2004 648 584 $1. 11 2005 708 619 $1. 14 2006 780 668 $1. 17 2007 883 720 $1. 23 2008 999 796 $1. 25 2009 1 127 847 $1. 33 010 (P) 1 279 901 $1. 42 2011 (P) 1 472 958 $1. 54 2012 (P) 1 688 1 020 $1. 65 2013 (P) 1 934 1 095 $1. 77 2014 (P) 2 154 1 173 $1. 84 2015 (P) 2 323 1 252 $1. 85 P = Projection 3. 2 Sparkling water Carbonated water was commonly known by the name of soda water until World War II. In the 1950s, new terms such as sparkling water began to be used due to the negative perceptions associated with use of the word ‘car bon’ being considered a chemical additive in water. Sparkling water is essentially still water into which carbon dioxide gas has been dissolved, resulting in the formation of bubbles. Sparkling water is generally consumed as a refreshment beverage mostly while dining out rather than for hydration or thirst satisfaction alone. In the last few years, supermarkets have started to stock premium sparkling water brands. 7 Near Water – also known as functional waters. These are bottled water beverages which have nutrients added, such as fruit juices, vitamins or minerals to enhance the positive health benefits associated with water. Page 5 of 21 Table 6: Revenue and Production:- Sparkling water- 2003 to 2015 Type Revenue ($million) Production (million litres) Ave $ per litre 2003 255 89 $2. 7 2004 272 93 $2. 92 2005 282 96 $2. 94 2006 290 97 $2. 99 2007 317 105 $3. 02 2008 336 110 $3. 05 2009 356 116 2010 (P) 381 123 $3. 10 2011 (P) 405 131 $3. 10 2012 (P) 433 139 $3. 12 2013 (P) 441 140 $3. 15 2014 (P) 457 143 $3. 20 2015 (P) 473 146 $3. 24 P = Projection $3. 07 While experiencing declining growth, sparkling water is still showing some growth, albeit at much lowe r rates than still water. This reflects the refreshment beverage nature of sparking water which is generally consumed at restaurants and cafes rather than in the home. The majority of the sparkling water consumed is comprised of premium imported spring waters, such as Eau de Vivre, which is the world’s premier sparkling water brand. As such, the average price per litre for sparking water is substantially higher than that of still water (see Table 6). This reflects the increased cost of manufacturing required to carbonate the water, different closure types required to retain the carbonation, the cost of imports and the premium nature of this product. The increase in average price over the projection period reflects estimates in foreign exchange movements. Foreign exchange xperts forecast that the current high levels in the value of the Australian dollar are not sustainable and project them to decline in the future. 4. Distribution trends Bottled water is sold by manufacturers to independent wholesalers, including specialist confectionary and soft drink wholesalers as well as grocery wholesalers. Figure 1 below illustrates the current industry distribution channels. Figure 1: Australian bottled water distribution channels – 2009 Manufacturer Wholesaler Supermarket Convenience stores Direct Distribution Hospitality Home & office Delivery Vending machines Other End Consumer In the past few years, retailers have been increasingly buying direct from the manufacturer to reduce the cost of goods by eliminating the wholesaler margin from their purchase price. This has been facilitated by improved information systems that now provide timely information to manufacturers for production planning, thereby enabling them to engage in direct sales to a larger numbers of customers. The increase in direct distribution has been most notable amongst major industry competitors. Major retailers want to purchase from fewer, larger companies. Beverage wholesalers, however, still play an important role in distribution for smaller bottled water manufacturers. These smaller competitors generally have a smaller product range and are unable to meet major retailer demands for inventory management and direct to store delivery. Page 6 of 21 Table 7 shows the share of revenue in 2009 by distribution channel. Table 7: Major distribution channels share of revenue- 2009 Distribution channel Supermarkets and grocery wholesalers 2009 35. 0% 30. 0% 15. 0% 9. 0% 6. 0% 5. % 519 445 222 133 90 74 Revenue ($m) Comments Supermarkets use online ordering systems direct to manufacturers, bypassing wholesalers in general. Major growth in this channel reflecting convenience purchasing. Main outlet for the purchase of single-serve products. Dominated by higher priced spring and mineral waters, including imported products. Bulk packaged water is the main product through this channel. Placed in schools, sports clubs and other public places or venues . Niche value added brands only due to high transportation costs (e. g. exports) or specific to single distribution channels. Convenience stores (including petrol stations) Hospitality Home and office delivery Vending machines Other Branding is an important differentiator in the bottled water manufacturing industry. Existing competitors that have established brand names have an advantage over new entrants who have to spend heavily on marketing for brand recognition. Sales in convenience stores have always been an important distribution channel for soft drinks. This importance is growing, not only for soft drinks but also for bottled water, driven by the trend in more frequent convenience shopping for ‘time-poor’ consumers. Success in the convenience store channel is critical for any new product to succeed. If the brand recognition is achieved, it is often quickly followed with brand extensions, leveraging the brand to offer new flavours and packaging. Once consumer demand is established in the convenience store channel, the move into the supermarket channel generally supports maintenance of profit margins, considering that supermarket buyer power is reduced when strong product demand has been established. Manufacturers have had to respond to significant changes in consumer buying behaviour. Product distribution, presentation and availability has had to match these changes in order to maximise sales. Increasing quantities of product are now distributed through convenience stores and petrol stations. For example, bulk water packs were once sold via direct sale to offices. However, as more offices have installed their own in-built water filters, this channel has declined and there has been a shift to bulk water sales through petrol stations and supermarkets. A key strategy employed by non-alcoholic beverage manufacturers to lock out rivals is the placement of vending machines and refrigeration units in distribution outlets. This ensures that their products are stocked and presented for the best possible sales whilst making it difficult for competitors to get refrigeration space. The distribution outlet has to invariably agree not to stock competitor products as part of the terms of using the refrigeration equipment supplied. Vending machines are increasing in variety, size, style and sophistication, depending on where they are located. Distributors in some locations, such as private or non-government schools, have worked with the manufacturers to introduce the use of smart card technology for payment and therefore avoid the need for cash. Similarly, in the hospitality arena, manufacturers have to tender for the supply of beverages to key entertainment and sporting venues. Once a manufacturer has secured a contract with a venue, their product has guaranteed sales for a defined period of time. Quite often, patrons are not allowed to bring in their own beverages for consumption or are limited in the amount they are allowed to bring in. Hospitality, through restaurants and cafes, is the main distribution channel for sparkling waters and it is also common practice for venues to be locked into one particular manufacturer. Exports and imports represent about 5 per cent of industry production. These levels are not expected to change in the future due to the high cost of transporting the heavy weight and bulk of water. The Australian bottled water manufacturing industry is protected to some extent from the threat of water imports due to the high volume and low unit value of water, even though water with no additives is exempt from tariffs. For water that has added sugar or other sweeteners, there is a 5 per cent import tariff. The main distribution channel for imported waters is cafes and restaurants that primarily serve premium sparkling waters. Page 7 of 21 5. Demand trends Bottled water is a growing part of the non-alcoholic beverages industry. While the broader non-alcoholic beverages industry is growing, bottled water is growing at a faster rate due to increasing awareness of health issues. Research shows that people want better tasting and healthier alternatives to many of the soft drinks and sports drinks currently available. Market research surveys suggest that over 90 per cent of Australians consume too many sugary and caffeine-based drinks. As bottled water is part of this larger beverages industry, it is important to understand firstly, the trends impacting on non-alcoholic beverage consumption overall, as well as the trends specifically impacting on bottled water consumption. 5. 1 Non-alcoholic beverages Consumption of non-alcoholic beverages in Australia increased from 179. 7 litres per capita in 2005 to 228. 5 litres per capita in 2009. Per capita consumption trends for all non-alcoholic beverages generally follows consumption patterns in the United States. On that basis, there are still significant opportunities for growth in all non-alcoholic beverages, including CSDs. Currently, Australian per capita consumption is 63 per cent of the US consumption level. Increasing awareness of the obesity problem in Australia, as well as the firmly established focus toward health and wellbeing, is ensuring strong future growth for ’healthy’ beverages. This has resulted in the introduction of sugar-free or diet CSDs. However, many older Australians are not switching to sugar-free versions of the CSDs they used to drink. Instead, they are moving to alternative beverages. Hence the general decline in the consumption of CSDs has also been accompanied by a rise in the consumption of beverages that are perceived to be healthy, such as fresh fruit juices, flavoured milks, energy drinks, sports drinks and ready-to-drink teas. Changing lifestyle trends, health consciousness and a growing ‘cafe culture’ have also contributed to an increased demand for these alternative beverages. For example: †¢ Freshly squeezed fruit juices, with fresh flavour attributes being preferred by the consumer. With the emergence of juice bars and a greater focus by manufacturers in establishing juice brands, consumption of juice products has increased. In the United Kingdom and United States, juice bar sales represent about 5 per cent of total juice sales in those countries. However, in Australia, juice bars are still only an emerging distribution outlet and offer a good opportunity for new product development and growth. Ready-to-drink teas, with their antioxidant properties being promoted, have become a popular ‘health’ drink. The Australian market for this product is currently 2 million litres per annum and predicted to grow to as much as 20 million litres over the next few years, particularly as the Australian population ages. Product development includes a variety of flavoured ready-to-drink teas. †¢ Flavoured milk is a growth beverage. Data shows that A ustralians are each drinking, on average, nearly 0. litres more flavoured milk per annum than a year ago. Perceived health benefits of milk have contributed to this growth, and this is expected to drive continued growth in the future. Milk sales have increased by 6. 7 per cent with low fat brands performing particularly well. Last year, each Australian, on average, drank 9. 5 litres of flavoured milk – more than the per capita figure for any other country. †¢ Both energy 8 and sports drinks 9 are growing products in a society that is increasingly health conscious and aspiring to be more active. Energy drinks have had double digit growth since 2006 and the sports drink market has grown 14 per cent on volume and 20 per cent on revenue compound annual growth over the last three years. 8 Beverages that are designed to give the consumer a burst of energy by using a combination of methylxanthines (including caffeine),vitamins and herbal ingredients. 9 Purified water with additives similar to those of sports drinks with the aim of providing hydration during sport. Page 8 of 21 5. 2 Bottled water Bottled water consumption has increased significantly over the past six years, but is still significantly below consumption levels of other developed countries including Europe and the United States. This indicates further opportunities for growth in Australia, primarily at the expense of CSDs and fruit based drinks, given the rising concern surrounding the link between CSD consumption and obesity, especially in children. One possible reason for the lower per capita consumption of bottled water by Australians is the relatively good quality of tap water available. Tap water contains fluoride ions which have a positive effect on tooth decay. The drinking of bottled water, which is distilled 10 to remove element such as fluoride, is believed to be contributing to an increase in the risk of tooth decay. However, most people continue to cook with tap water and this should provide sufficient fluoride to prevent tooth decay. Alternatively, some people wish to avoid exposure to fluoride, particularly systemic ingestion of fluoride in drinking water, and may choose such bottled water for its absence of fluoride. Nevertheless, surveys show that there is an increasing concern about the quality of tap water in Australia and that this is driving some growth in bottled water consumption. Growth is further supported by concerns about alcohol consumption and associated drink-driving accidents which has encouraged the consumption of non-alcoholic beverages, such as bottled water, when dining out. Females consume about 58 per cent of all bottled water in Australia. Young people, in particular females aged between 18 and 35 years, are the largest consumers of bottled water. In general, bottled water consumers are more health conscious and socially aware. Studies have found that younger generations are far more diligent in drinking their recommended daily intake of water and men are less likely to think about water consumption on a daily basis than women. In addition, for young women, image is an important factor in determining consumption behaviour. Figure 2 shows consumption by age group. Figure 2: Australian bottled water consumption by age group, 2009 30 25. 8 25 20 23 18. 5 14. 8 % 15 10 5 0 9 8. 9 18-24 25-34 35-44 45-54 55-64 65 and older Age group (years) 10 Distillation is the process of eliminating impurities by heating a liquid until it boils, capturing and cooling the resultant hot vapours, and collecting the condensed vapours. Page 9 of 21 Due to the increase in health consciousness, water has also become a fashion accessory. Some consumers now carry a bottle of water with their mobile phone and iPod. Packaging is therefore critical. Small plastic bottles are preferable for many consumers as they are re-sealable, perceived to be more contemporary and can fit in car-cup holders. The convenience factor means that the most popular pack size is around 600 ml, as shown in Table 8 below. This is an important consideration for convenience when travelling for business or leisure. In fact, it is the convenience aspect that has to some extent, driven the growth in bottled water. Table 8: Australian still water revenue share by pack size Pack Size 1999 2004 2009 500 – 750ml 1–2 litre Bulk 47. 3% 22. 8% 29. 9% 52. 3% 27. 5% 20. 2% 57. 3% 32. 6% 10. 1% 2014 (P) 60. 3% 34. 8% 4. 9% P = Projection Increased future consumption of bottled water in the home is likely to result from continued growth in household disposable income in Australia. This disposable income growth will also sustain growth of takeaway foods and restaurant meals, both of which tend to increase consumption of bottled water and fruit juice. However, while currently experiencing positive growth, total household expenditure on consumable goods is expected to slow in the future. This will adversely affect growth in discretionary spending on all beverages. However, a factor which contributes positively to growth in the sales of bottled water is the climate. The gradual warming of Australia’s climate is expected to support further growth in water consumption. Bottled water is well positioned to benefit from the shift in consumer preferences towards healthier and natural drinks. Spring water is particularly popular in Australia because it is perceived to have come from a natural, pristine environment. This is reinforced by marketing that emphasises the pure and natural image of water. As well as purchasing more bottled water, consumers are also prepared to pay more; with 69 per cent of consumers recently surveyed believing quality is more important than price. New product development activities are targeting changing consumer lifestyle needs and the trend towards purchase convenience. There are now numerous bottled water brands available in Australia, from international beverage brands to boutique ‘rain farms'. The huge variety of waters and sources means that the bottled water market has a broad demographic reach. According to a recent consumer survey, at least 99 per cent of all Australians have tried or purchased bottled water in the last 12 months. The Australian bottled water manufacturing industry has pursued sales growth by developing products for niche markets. Smaller producers can supply relatively small segments with specialist or premium products. Given the continuing concern about the use of artificial colourings, flavourings and preservatives, the industry is expected to develop a range of premium products better suited to the demands of the health conscious consumer. For example, pet owners can now buy ‘vitamin-fortified’ water specifically formulated for their canine companion. 6. Costs and gross margins Bottled water has the highest profit margins of all non-alcoholic ready-to-drink beverages. This is due in part to the strong growth that the industry has achieved. Manufacturers are also able to sell all production in a year. Industry rivalry is relatively low, particularly as the major competitors are focused on supplying through different distribution channels. A percentage breakdown of costs in 2009 is as follows: †¢ 55. 2 per cent for purchases of supplies; †¢ 26. 8 per cent for marketing, distribution and selling costs; †¢ 12. 1 per cent for wages; †¢ 4. 1 per cent depreciation and administration costs; and †¢ 1. 8 per cent for utilities and rent. A net margin of 16. 3 per cent was achieved by the industry in 2009. Page 10 of 21 Purchases include water supplies, labels and other packaging materials such as glass and plastic resin bottles and closures which are generally purchased on 5 year contracts. One of the key costs is polyester (PET) resin for bottles; however, there is no forward market 11 for PET resin. As a commodity, PET resin has been subject to price rises over recent years, as the price of oil has increased. This is reflected in the minor decline in gross and net margins experienced by manufacturers in 2009, as shown in Table 9 below. Overall, however, the cost to create bottled water is relatively inexpensive. Therefore, water is a more profitable product than other nonalcoholic beverage categories. Table 9: Five year weighted average industry gross and net margins 2005 2006 2007 Gross margin % Net margin % 31. 3% 16. 6% 31. 9% 16. 9% 31. 1% 16. 5% 2008 2009 30. 7% 16. 3% 31. 5% 16. 7% Current levels of profitability are expected to continue. However, it is noted that as sales through the supermarket distribution channel increase, so too will the buyer power of these large retailers and this may have a negative impact on profitability levels. At a recent presentation, ABL’s managing director, Tom Dwyer, commented: ‘The increasing power of major retailers will squeeze the small competitors in both the food and beverage businesses. Without modern technology, smart systems and economies of scale, it will be very difficult for small manufacturers to generate an acceptable return on capital employed and maintain current levels of profitability. ’ 7. Industry key success factors and future predictions Industry experts summarise the following areas as critical to future success in the Australian bottled water manufacturing industry: †¢ Distribution and lacement: Control of distribution channels through an established and comprehensive network of distribution outlets to gain access to end consumers is essential to ensure timely delivery, low costs and maximised product reach through effective placement. If not operating in a niche market, manufacturers must become a major competitor in the wider market. I n general, a major competitor needs to have at least 20 per cent share of at least one distribution channel. Effective market orientation, product promotion, and advertising: Market research, product development and speed-to-market are important capabilities. Successful competitors need to be able to clearly segment the market and develop products that reflect the requirements of different customer groups. The ability to effectively promote their brand and provide label and packaging design is also important. First movers with effective distribution have an advantage in that new competitors need to spend heavily on marketing to catch up. The effectiveness of strong advertising, a sophisticated distribution chain and a focused strategy is critical in influencing consumer choice. Strong brand names contribute to the appeal of bottled water as an accessory as well as building a product's reputation for quality. Having these attributes allows manufacturers to win market share within particular consumer segments and charge premium prices. Economies of scope: Breadth of product range enables efficiencies in distribution, marketing and administration. Such efficiencies are gained when a competitor uses its manufacturing process to produce a wide range of beverage brands (and possibly also complementary products) which are provided as part of a total solution to the various distribution channel customers. Being a total beverage provider to major customers is becoming more important as these major customers are increasing in concentration and prefer to deal with fewer larger manufacturers. Economies of scale: Economies of scale are very important for a low value product since high volumes must be produced and sold to maintain profitability. Manufacturers must have effective cost controls and access to the most efficient manufacturing and distribution processes, tracking technology and techniques to monitor sales and respond accordingly. Economies of scale are particularly important for competitors who have undifferentiated products. Since unit manufacturing costs are an important element of profitability, it follows that economies of scale, based upon critical mass, are also important. Some manufacturers have commenced contract bottling for smaller industry participants in order to secure manufacturing volumes. †¢ †¢ †¢ 11 A forward market enables producers to lock in prices for a defined period of time, thereby providing certainty of costs. Page 11 of 21 At the recent annual Australian Beverage Congress, Alan Vaughan, an independent industry expert of 30 years’ experience, presented an extensive insight into the bottled water market and its future direction. Vaughan concluded his presentation with this comment: ‘The Australian and global beverage industries are in a period of growth and major transformation. In general, there has been a switch away from carbonated drinks to beverages with less sugar and additional functional benefits. To the younger customer, the older brands are looking a little staid, with bottled water and energy drinks viewed as more cool and exciting. This is reflected in marketing and advertising campaigns. People these days are working harder and have greater commitments. Bottled water and energy drinks are replacing other traditional beverages because they provide refreshment as well as a functional benefit, such as re-invigoration, replenishing hydration and energy levels, improving mental alertness and enhancing concentration. These beverages appeal to everyone from partygoers to office workers, through to truck drivers. ’ C. Industry competition 1. Basis of competition The basis of competition for non-alcoholic drinks are primarily price, convenience and taste. The main basis of competition by which bottled water competes against other beverages, such as CSDs, fruit drinks, sports drinks and energy drinks, is health appeal. Given zero or very low sugar content, both still water and near waters have successfully developed an image of being healthier than other drinks and this has driven growth in the industry. To a degree, home filters also serve as a source of competition, although mainly against the bulk water segment. Tap water is also an external competitor, with a clear advantage in price. Beverage marketing and display are beginning to undergo dramatic change. There will always be the major conventional media promotions, but the consumer market is becoming much more time sensitive and there is a high level of competition from substitute products, mainly other non-alcoholic beverages. The major ways for industry participants to differentiate and compete successfully include: †¢ Branding, image and breadth of product range: Recent growth in bottled water is related to the successful positioning of a number of brands as fashion accessories. Both media support behind the brand and the design of the bottle including the label contribute to the appeal of a product. Breadth of product range is also important as concentration of major customers continues. Large retail buyers (both in the supermarket and convenience store channels) prefer to deal with large manufacturers or suppliers that can provide a large product range. Packaging: Convenience is a key benefit of bottled water. Hence bottle size, shape and functionality form a basis of competition. Bottles are designed with particular uses in mind, for instance some water bottles have a pop-top cap for ease of use when playing sport or training. Distribution coverage: An ability to satisfy the needs of retailers, and obtain favourable terms such as promotional programs and stock positioning is important. Market share dominance of distribution channels is important as it allows manufacturers to diffuse the power of large buyers and maintain strong profitability levels. The ability to secure shelf space in convenience stores is also important, given that success in the convenience store channel is a precursor to getting new products into supermarkets. Taste: Especially at the premium end of the market, taste can be a basis of competition for both still and sparkling waters. Use of market data: Access to and use of market data is also important. The larger the competitor the more likely they are able to afford retail check-out scanning data to understand what its customers are buying. In this way, manufacturers can ensure retailers replenish their stock as required. This provides larger manufacturers with an advantage of responsiveness and flexibility as they make use of this information and respond quickly. †¢ †¢ †¢ †¢ Page 12 of 21 2. Current industry competitors The Australian bottled water manufacturing industry is dominated by large beverage manufacturers. Two of the major competitors are subsidiaries of global food and beverage conglomerates that are also major competitors in the non-alcoholic beverage market. Table 10 summarises the market share of the industry competitors in 2009. It should be noted that Australian Beverages Limited (ABL) is not currently in the Australian bottled water manufacturing industry, despite being a major competitor in the Australian non-alcoholic beverage market. Table 10: Market share by distribution channel and major competitors – 2009 Total market share 26. 9% 26. 3% 18. 3% 12. 0% 16. 5% 100. 0% Other includes export sales and use of purified water for medical procedures (for example: dental etc) ** Other competitors comprise small, locally based water manufacturers. No single entity has greater than 2 per cent market share Competitor Butlers Hydrate Water International Beverages Fountain Springs Other** Total Market Share Australian bottled water manufacturing industry – Market share by distribution channel Supermarkets Convenience Hospitality Home & Vending Other* & grocery stores (15%) office machines (5%) wholesalers (30%) delivery (9%) (6%) (35%) 27. 0% 35. 0% 25. % 15. 0% 30. 0% 38. 0% 22. 0% 20. 0% 15. 0% 35. 0% 20. 0% 17. 0% 35. 0% 15. 0% 10. 0% 10. 0% 5. 0% 15. 0% 70. 0% 5. 0% 16. 0% 15. 0% 55. 0% 20. 0% 30. 0% 100. 0% 100. 0% 100. 0% 100. 0% 100. 0% 100. 0% The industry has grown significantly to date. To keep industry profitability levels relatively high, the industry’s major competitors have tended to dominate one or two distribution channels only, rather than all channels. In this way, they hope to avoid strong head-to-head competition. This has assisted in keeping the overall level of industry rivalry relatively low to date. However, this is expected to change in the future as consumption growth begins to slow. Several new competitors have entered the market over the last five years. Moreover, industry consolidation has occurred. Major industry competitors have acquired smaller competitors to increase economies of scale, scope, market share and profitability. In 2009, the four largest competitors accounted for approximately 82 per cent of industry revenue. No major change is expected to this trend in the future as further consolidation will be difficult due to the relatively high market shares held by the four major companies. Regulatory concerns about restriction of competition will also affect further consolidation. Two of the competitors, Butlers Corporation and International Beverages, are owned by global food and beverage conglomerates that use Australia as the base for their non-alcoholic beverages operations in Asia. Industry experts believe that acquisition of either of these companies, to be used as a mode of entry into the industry and gain significant market share, is not possible. The parent companies will be unwilling to sell their Australian operations. The major industry competitors are summarised below. 2. 1 Butlers Corporation A wholly owned subsidiary of a large multi-national listed company, Butlers Corporation commenced operations in the United Kingdom in the 1800s as the official chocolatier to the King. Operations were expanded throughout the 20th century to include other types of confectionary, biscuits, snack foods and non-alcoholic beverages. Geographic expansion was also undertaken. Butlers Corporation is now a global giant in its chosen products. Butlers established its operation in Australia during the 1950s. It has held the majority market share in the Australian confectionary, non-alcoholic beverage and snack food industries for the past 20 years. The company entered the Australian bottled water manufacturing industry during the 1980s through the acquisition and consolidation of several state-based water manufacturers. This helped Butlers to become the first bottled water manufacturer to have national distribution. Page 13 of 21 Butlers has strong distribution capabilities given its broad product range. It is the largest supplier to convenience stores and the second largest to the hospitality distribution channels. Growth in its market share of the supermarket channel has also been strong over recent years, in particular through its well known still water brand ‘Olympus’. The company also holds significant market share in the sparkling water segment, having obtained the Australian license for Eau de Vivre, the worlds leading sparkling water brand. One of the areas of focus for Butlers is innovation for all its beverages. This includes a large of number of soft drinks such as flavoured mineral waters, flavoured milks and fruit juices. Its broad product offering that includes complementary snack products, has been leveraged to achieve strong sales in convenience stores and through vending machines. 2. 2 Hydrate Water Pty Limited Hydrate Water is a privately owned company that originated in 1993 in Queensland. The company has access to natural springs in Queensland, New South Wales and Victoria, and a long term agreement with key water utilities in these states to access water when required. It distributes nationally from ISO 9002 quality accredited manufacturing facilities in Queensland, New South Wales, Victoria and Western Australia. The company has products in the sparkling and still water segments. The products include energy drinks, fruit juices and a limited range of high quality carbonated soft drinks. It is also the manufacturer of the leading brand of still water, H2O, that is sold through the supermarket distribution channel. Hydrate is seeking a stronger presence in convenience channels. Its business model focuses on using its funds to support retailers so that the retailers can offer promotions, rather than spending on direct consumer advertising. The company has recently begun investigating the use of scanned retail data to monitor sales trends and adjust production volumes accordingly. This investigation into scanning data is due to having run out of inventory at the end of last financial year when the manufacturing plant was closed for annual cleaning and maintenance. As a result, the company had lost some market share. A number of the company’s water products are targeted to the sporting and energy drink consumer. One of its best known brands, ‘Viva! ’, has a 72 per cent market share in sports water products. Hydrate Water has been able to leverage the high brand recognition of ‘Viva! ’ to successfully introduce flavoured water. Similarly, Hydrate Water sells the leading brand in sparkling mineral water and has again leveraged this brand by introducing a number of flavoured mineral waters, including diet drinks. Both these initiatives have resulted in above average market growth for the company. The company is particularly well known in the industry for its packaging innovation and engineering design capability. Hydrate Water developed ‘Pop Tops’ – small plastic bottles that were very successful with young children as they fit perfectly into lunch boxes and have the advantage of being re-sealable. The ‘Pop Top’ range increased its bottling turnover by 50 per cent. This product won the coveted Australian dietician award for ‘Best New Product’ when launched. It also received the Australian Health Foundation endorsement for its diet drinks. In addition, the company has been commended by dieticians for promoting products that address the increasing concerns of childhood obesity linked to CSDs. Hydrate Water was also the first company to introduce stackable bulk water packs for sale through supermarkets. The management team at Hydrate Water have extensive industry experience, having a collective 80 years in the industry between them. Operations manager, Simon Miles, is well regarded in the industry and is currently the chairman of the Bottled Water Institute of Australia. Current owner, Jack Wells, has indicated he wishes to retire in the next five years, and has been grooming Simon Miles as his successor. An offer for acquisition was received from International Beverages last year, but Wells turned down the offer as he did not want to sell the Australian business he established to an international company. Page 14 of 21 2. 3 International Beverages Limited International Beverages is the wholly owned subsidiary of a large multinational company and sells fruit juices, energy and sports drinks, water and soft drinks. Its initial entry into the Australian market was through fruit drinks. During the industry consolidation in the 1990s, the company entered the bottle water manufacturing industry through acquisition. Through its parent company, International Beverages has the licence to sell the world’s leading brand of bottled still water Aqua Grande, in Australia and New Zealand. The company also sells the imported sparkling water brand San Vitale one of the most popular mineral waters bottled at the source. This product, in particular, has given the company a strong share of the hospitality channel. Company growth has been driven by new product development and product extensions which have leveraged existing capabilities and focussed on specific consumer requirements. The company’s latest successful product launch is calcium enriched water targeted at aged care facilities and nursing homes for women at risk of osteoporosis, a bone degeneration disease. 2. Fountain Springs Pty Limited Fountain Springs is a Sydney based company that has access to a naturally rising spring located in the Snowy Mountains in southern New South Wales. To date, the company has been unable to secure distribution and shelf space in major Australian retail outlets. This is because its product range is limited to only two pack sizes, 600ml and 2 litres. An export strategy was th erefore developed with the assistance of the Australian Trade Commission (Austrade). Fountain Springs is now Australia’s largest exporter of spring water and better known overseas than in Australia. In the past two years, the company’s bottled water exports have grown sales revenue significantly, having secured a contract with the major UK supermarket chain Besco. Growth is also expected through its expansion into UK convenience stores and petrol station channels which is planned for later this year. The UK was the first export market for Fountain Springs where it was able to leverage the perception of Australia as ‘clean and natural’. Since developing this UK market, the company has also been successful in developing business in the Middle East, South East Asia and the United States. Given the cost of transport to these export markets, Fountain Springs has a niche strategy and sells only premium grade water in the 600ml and 2 litre pack size at a higher price. However, market research shows that there is still very low consumer awareness of its products and brand in Australia. To raise awareness, a cause-related marketing strategy has been adopted. Under this program, the company donates a percentage of its profits to partner charities in its chosen markets. This has been central to the growing market awareness of the company in its selected markets. It leverages the networks and relationships of its partners to develop new business and sales. As a result of the company’s success in overseas markets their brand ‘Aqua Caliente’ is now being stocked in selected school canteens in Australia as a natural alternative to sugar laden CSDs and fruit juices. Given Fountain Springs did not have the capability to distribute directly to schools, it entered a distribution arrangement with a school food provider. The company also altered its cause-related marketing strategy whereby it would donate a proportion of all bottled water sales in each canteen to the school. The money was to be used by the schools to purchase new equipment or facilities for the school. Despite the success of its export strategy, the company has had mixed financial results over the past few years. This has been largely due to set up costs associated with its export business and distribution arrangements in the UK. It is rumoured that the company is in financial difficulty. Rumours abound that bankers have been requesting monthly audits of the cash position so that the company can maintain its line of credit. In addition, it is believed that its major UK supermarket customer, Besco, is demanding price reductions therefore squeezing margins for the company. Poor hedging of foreign exchange transactions with the company’s UK debtors has also contributed to its declining financial position. Page 15 of 21 D. Australian Beverages Limited (ABL) 1. History Australian Beverages Limited (ABL), formerly known as Australian Soft Drinks Limited, commenced operations in 1937. The antecedent company was established by a group of enterprising pharmacists who had previously made carbonated soft drinks in their pharmacies which were then offered for sale in sealed bottles. The first manufacturing plant opened in Sydney in 1938. Business began slowly, but the arrival of American soldiers in Australia in 1942 had a significant impact on both sales and market acceptance of carbonated soft drinks. Australian Soft Drinks initiated its move into non-carbonated soft drink beverages in 1984 when it began manufacturing fruit drinks. This followed the acquisition of a fruit juice manufacturer in Victoria. The fruit drinks’ business expanded nationally over the next 10 years. In 1990, Australia Soft Drinks entered the milk drink market with the purchase of manufacturing facilities from a dairy co-operative. The company officially changed its name to Australian Beverages Limited upon listing on the Australian Stock Exchange (ASX) in 1996, to reflect the broader beverage base of the business. In the years since its ASX listing, ABL has adopted a multi-beverage strategy wherein its product range has been expanded to cover all categories of the non-alcoholic beverage market. However, bottled water remains outside this product range. The company has also moved into the manufacture and distribution of snack food products through its acquisition of several small businesses in 2004. It aims to strengthen distribution relationships with convenience stores and hospitality channels. These developments have resulted in ABL’s revenue composition to change from 90 per cent CSD-based in 2000 to 68 per cent CSD-based in 2009. The aim is to further reduce dependence on CSDs by 2015. ABL intends to increase its market share of non-CSD beverage products so that CSDs will represent less than 50 per cent of company revenue as part of its multi-beverage strategy. 2. Business strategy ABL’s vision is ‘To satisfy Australia’s thirst by being a manufacturer of non-alcoholic beverages for every occasion in every location’. The company aims to achieve this vision by pursuing the following strategic goals for the 2007 to 2012 period: ? offer a wide range of products in the non-alcoholic beverage and complementary markets; ? grow the company’s share of the non-alcoholic beverage market to move from the second largest to the argest competitor in this market. This goal will be achieved by: ? offering a wider range of products; ? increasing per capita consumption of non-alcoholic beverages through product and packaging innovation; ? expansion into new non-CSD beverage categories; ? extend key customer relationship capabilities and grow product availability. This goal will be achieved through effective placement of refrigerated drink equipment and outlet expansion. This strategy would help the company to establish a major presence in all major non-alcoholic beverage distribution channels; ? aintain world best practices throughout the company’s operations to deliver cost discipline, low cost leadership and timely responsiveness to changing market demand; and ? ensure that the company’s operations are environmentally and economically sustainable. At a recent strategy presentation to market analysts, managing director, Tom Dwyer, outlined the company’s intention to be a major competitor in all categories of the non-alcoholic beverage market. He stated that ABL hopes to achieve this aim by being the supplier of choice for the distribution channels of supermarkets, convenience stores and hospitality outlets. It is hoped that ABL’s position in the snack food market, which it recently entered via acquisition, would be made stronger by another potential acquisition in line with the general consolidation already taking place in the food and beverage supply industry in Australia. Such an acquisition would add further breadth to the company’s total product offering to its customers in all major distribution channels. Of all the competitors, ABL would provide the greatest share of beverage and snack foods. Page 16 of 21 By offering a broader product range, ABL expects to leverage its market power in soft drinks to sales of related products. It also aims to control product supply, apply discounts, introduce loyalty rebates or promotions, and secure conditions of use on supplied refrigeration equipment. As more Australians now drink different beverages at different times of the day, Dwyer highlighted his belief that a modern beverage company needs to be highly flexible in manufacturing, distribution and marketing as well as be able to operate in all product areas. 3. Business operations ABL is currently the second largest competitor in t

Mandatory Questions and Answers Essay

Outline the guidelines, procedures and codes of practice relevant to personal work? (1.1.1) Follow a set routine so you don’t make any mistakes. Confidentiality. Explain the purpose of planning work, and being accountable to others for own work? (1.1.2) Throughout the day I will always find out what job is the most important for me to do first and do my other work afterwards. Any delay in the important jobs could impact on someone else’s work e.g. (Every hour we have to go online and collect VBS’s for the drivers otherwise they cannot get on the docks to empty or load their container which delays them from their next job meaning it impacts on their work.) Explain the purpose and benefits of agreeing realistic targets for work? (1.1.3, 1.1.4) It gives a good working practice and gives you something to aim for. Describe types of problems that may occur during work and how would you seek assistance in resolving problem? (1.1.8, 1.1.9) Part of my job is dealing with POD’s and it is important that I chase for outstanding ones otherwise we cannot prove the delivery of container was made which could delay payment or some other issues like insurance claims. Explain the purpose and benefits of recognising and learning from mistakes? (1.1.10) One of the mistakes I have done could have lost the company money but luckily it didn’t. The way I have learnt from this is because I wasn’t very careful but now I take more precautions e.g. checking twice when sending out invoices so I don’t send it to the wrong person. Explain the purpose and benefits of agreeing and setting high standards for own work? (1.2.1, 2.1.1) The benefits for setting high standards for your own work means that it is always done to the best of your ability. Describe ways of setting high standards for work? (1.2.2) * Making goals and sticking to them. * Writing a list of what needs to be done. * Aiming to do certain things by a certain time/day. Explain the purpose and benefits of taking on new challenges if they arise? (1.2.3) It means I get to learn more about the company and interact with everyday tasks; I will be more involved and have a lot more options. Accounts, POD’s and traffic sheets are some examples of what I would do which also gives me more option in the future. Explain the purpose and benefits of adapting to change? (1.2.4) Sometimes change can make things more efficient and easier to complete tasks. Explain the purpose and benefits of treating others with honesty, respect and consideration and what types of behaviour show this and what ones don’t? (1.2.5, 1.2.7) Good behaviour * Friendly * Considerate * Confident Bad behaviour * Being unmotivated * Refusing to do work * Being cold towards other employees Explain why behaviour in the workplace is important? (1.2.6) Being friendly to others makes it a comfortable and relaxing atmosphere to work in meaning there are no uncomfortable and awkward moments so you can enjoy being at work. Explain the purpose and benefits of encouraging and accepting feedback from others? (2.1.2) Shows you where your good and bad flaws are and what you can improve on. Explain how learning and development can improve own work, benefit organisations and identify career options? (2.1.3) It can improve your own knowledge and make you understand your job role better. Describe possible career progression routes and development opportunities? (2.1.4, 2.1.5) I could possibly work in a bank or something with accounting as an option which would be a potentially good career or I could stay in this area of work. Describe what is meant by diversity and why it should be valued? (3.1.1) Diversity refers to the fact that we are all different. Diversity should be appreciated and valued because nobody is the same as anyone else. Describe how to treat other people in a way that is sensitive to their needs? (3.1.2) You should be kind and be caring towards people. Look out for their needs as you would like them to look out for yours. Treat others how you would like to be treated. Describe how to treat people in a way that respects their abilities, background, values, customs and beliefs? (3.1.3) Don’t judge anyone by their race, religion systems, mental capabilities, physical appearance. Get to know them before you take judgement on them. Describe ways in which it’s possible to learn from others at work? (3.1.4) You can watch how they act with certain people e.g. you learn different mannerisms and personalities. Describe the purpose and benefits of maintaining security and confidentiality at work, what are the company and legal requirements and how do you deal with any concerns? (3.2.1, 3.2.2, 3.2.3, 3.2.4) Confidential information is only allowed to be looked at by your employer and other staff but not to be discussed outside of work as this could breach your contract. Explain the purpose of keeping waste to a minimum? (3.3.1, 3.5.2) It is better for the environment. Describe the main causes of waste that may occur in a business environment? (3.3.2) I would say paper is the most common cause of waste the business as there is so much information to take down, re-write and make notes. It is all recycled though. Describe ways to keep waste to a minimum? (3.3.3, 3.5.1, 3.5.2) Recycle and reuse. Identify ways of using technology to reduce waste? (3.3.4) * Shredder * Moving paper files on to the computer * Using a compost pot for wasted food Outline the purpose and benefits of recycling and what are your organisational procedures? (3.3.5, 3.3.6) Reduces carbon footprint and pollution Describe the benefits and procedures and organisational procedures for the recycling and disposal of hazardous materials? (3.4.1, 3.4.2) The benefits of recycling can be extremely beneficial to all different things. The only hazardous object we have that we recycle is the toner from our printer and it goes when a man picks it up to recycle and give to a charity. Explain reasons for knowing the purpose of communication? (4.1.1) The purpose of communication is to understand each other and connect. Communication is the means in which information is circulated. Explain the reasons for knowing the audience to whom the communication is being presented? (4.1.2) You modify your presentation style to suit the audience so you get optimum results. Describe the best methods of communication and when to use them? (4.1.3, 4.1.4) 1. In person – for an immediate response to your question/query 2. Telephone – when you are not near the person you wish to receive information but would like a quick response. 3. Email – when you are replying to a request and need to send them something or when you need something sent to you. Identify different sources of information that may be used when preparing written communication? (4.2.1) Websites on the internet, a dictionary and previous correspondents could be used to prepare written communication. Describe the communication principles for using electronic forms of written communication in a business environment? (4.2.2) It is environmentally friendly and easier to use. Describe the reasons for using language that suits the purpose of written communication? (4.2.3) You use different languages to address the matter in the right context for example; informal or formal letters/emails. Describe ways of organising, structuring and presenting written information so it meets the needs of the audience? (4.2.4) PowerPoint presentations can be very good for presenting and gives you a lot of room for information. You can use a wide range of different effects that make the information look more interesting. Describe ways of checking for the accuracy of written information and the purpose of accurate use of grammar, punctuation and spelling? (4.2.5, 4.2.6) If you are using the computer you can use spell check on almost any document to make your grammar correct. Explain what is meant by plain English, and why it is used? (4.2.7) Plain English is a general term for communication styles that emphasise clarity, brevity and the avoidance of technical language. The intention is to write in a manner that is easily understood by its target audience: appropriate to their reading skills and knowledge, clear and direct, free of clichà © and unnecessary jargon. Explain the need to proofread and check written work? (4.2.8) In case you have made any mistakes or your work doesn’t make sense. Explain how to identify work that is important and work that is urgent? (4.2.9) Urgent means as soon as possible and important means take a little more time and care over it but do it quickly. Describe organisational procedures for saving and filing written communications? (4.2.10) We scan all the documents so there is always a back up file on the computer and then we file the paperwork into a folder and archive. Describe ways to verbally present information and ideas clearly? (4.3.1) Use number points, examples and be clear when presenting information. Explain ways of making contributions to discussions that help move them forward? (4.3.2) Always ask questions, recap information and listen carefully.

Civil Rights Movement in the United States - Free Essay Example

Sample details Pages: 4 Words: 1234 Downloads: 9 Date added: 2019/03/22 Category History Essay Level High school Topics: Civil Rights Movement Essay Did you like this example? Civil Rights Movement The late 1950s and early 1960s the period when civil rights was the most pressing issue for African Americans. They were looking to completely integrated into the American society and fully experience the liberties presented in the U.S. Constitution. Don’t waste time! Our writers will create an original "Civil Rights Movement in the United States" essay for you Create order At the same time, the Civil Rights movement was in no way an easy feat. African Americans in the northern part of the United States faced extreme poverty, did not have adequate housing, suffered from unemployment and often segregation (Gore 9). Meanwhile, African Americans in the southern part of the country continued dealing with harsh Jim Crow laws, racism, and disenfranchisement. In 1954, the Supreme Court decided to outlaw segregated public schools in the U.S. and that started the sit-in movement. African Americans hoped that through this movement racial inequalities could be addressed. It was through extensive media coverage that Dr. Martin Luther King Jr. and the African American protesters (in particular, members of the Southern Christian Leadership Conference) could conveyed their message of liberation to the wider audiences (Gore 9). Newspaper texts wrote about the civil rights movement, and media representation of Dr. King and other participants of the movement aimed to convey a positive bias to its audience. The public was biased for and against the movement. The material from two newspapers of the period covered the 1963 Birmingham Campaign and the 1965 Selma to Montgomery Voting Rights March, The Atlanta Constitution (or white and moderate press) and The Atlanta Daily World (or Black and conservative). Even though the press represented Martin Luther King Jr. and his followers as lawbreakers, it created an overall positive representation of the Civil Rights Movement by emphasizing the protesters heroic roles, and their support by young people as well through linking the protesters activity to religion and God. Firstly, with regard to 1963 Birmingham Campaign, The Atlanta Constitution presented Dr. King and the followers of Southern Christian Leadership Conference (SCLC) as those who were breaking the law. In headlines, for example, multiple references can be found about Dr. King and other African Americans getting arrested, being taken to jail, and getting released from jail. Headlines included: King Arrested in Birmingham;Birmingham Arrests; 700 Are Jailed In Negro Protest at Birmingham (3 May 1963); 62 Negroes Seized In Selma For Defying Sheriffs Order; Thousands Of Negroes Roam City (4 May 1963; 5 May 1963). Dr. Martin Luther King, Jr., returns Saturday to racially troubled Selma to keynote a new Negro voter registration drive throughout Alabama. There was speculation the 1964 Nobel Peace Prize winner would face arrested for violation of a state court injunction banning mass meetings. (2 January 1965) As for The Atlanta Daily World, it represented Dr. King and SCLC members as rule-breakers. Specifically, the paper wrote, with reference to the 1963 Birmingham Campaign,Wave after wave of young Negroes marched into the downtown area and ran head-on into police roadblocks, where they were arrested simultaneously, picketed appeared in front of downtown stores with such signs as segregation sold here, and no dignity, no dollars. (3 May 1963)Likewise, when writing about the 1965 Selma to Montgomery Voting Rights March, the paper framed the protesters as lawbreakers. To illustrate, it wrote, Fifty state highway patrolmen under the command of Col. Al Lingo moved into Selma Tuesday where 34 more arrests were made in connection with a Negro voter registration drive (27 January 1965). Having studied the articles from The Atlanta Constitution and The Atlanta Daily World, one can find that they appealed to religion when speaking about the protests and protesters, as well as made many references to the young people participating in the civil rights campaigns. The Atlanta Constitution, concerning the 1963 Birmingham Campaign, used such phrases as Negroes Worship at Birmingham or Connor Yields, Permits 1,000 Negroes To Sing in its headlines, as well as described how African Americans were kneeling as one or being led in their prayer by a minister, or how hymn-singing blacked students were being encouraged by their school teachers, etc. (22 April 1963). As for this newspapers coverage of the 1965 Selma to Montgomery Voting Rights March, it used religious symbols and appealed to the publics religious sense. For instance, it described how the African American protesters knelt and prayed as they proceeded and were attacked by state troopers, as welled as covered the participation of the clergy in the march (24 April 1965). images and covered the religious elements in the campaigns, too. books and toothbrushes for the trip to jail as they emerged from the 16th Street Baptist Church (7 May 1963). Characterization of the African American protesters and Dr. King is that of heroes in both newspapers. For example, in the coverage of 1963 Birmingham Campaign, The Atlanta Constitution portrayed Dr. King as a hero in the following excerpts: Birmingham Accord in Sight: King Says and Dr. Martin Luther King, Jr., leader in the desegregation fight in Birmingham, said Thursday night a formula had been devised for settling the dispute. The Negro demonstrators were depicted as heroes as evidenced by the following quoted: about 150 residents of Birmingham, England Wednesday night demonstrated in behalf of Negroes in Birmingham, Alabama. The meeting sent a telegram to Dr. Martin Luther King, Jr., Negro leader, saying ?Citizens Birmingham, England Silent Vigil Salute Prisoners, Demonstrators. We Shall Overcome. and other protesters as heroes in its coverage of 1963 Birmingham Campaign. For instance, it wrote, Leaders announce pact: The agreement was first announced by the Revs. Fred Shuttlesworth and Ralph Abernathy and Dr. Martin Luther King, Jr. (9 May 1963) and Desegregation counters, job opportunities won A biracial committee reached agreement on three of four of Dr. Kings desegregation demands (10 May 1963). Likewise, in the 1965 Selma to Montgomery Voting Rights Campaign The Atlanta Constitution also depicted Dr. King as a hero, which is supported by the following examples. First, King is presented as 1964 Nobel Peace Prize winner (29 January 1965) and hes a citizen of the State of Georgia and the City of Atlanta who has a won a world-wide prize (2 February 1965) as well as a segregationist struck Dr. Martin Lu ther King, Jr., in the head with his fist marring an otherwise peaceful and successful challenge to Selmas historic segregation barriers (13 February 1965). The Atlanta Daily World, too, made its coverage of the 1965 Selma to Montgomery Voting Rights March full of positive references to Dr. King and protesters, who were seen as heroes. In particular, it used the following words to refer to Dr. King: Dr. Martin Luther King, Jr., became a prophet with honor (28 January 1965) or Dr. Martin Luther King, Jr., the Nobel Peace Prize winner was released from jail (January 1965). Also, schoolchildren protesters were depicted as heroes confronting injustice, which was evident from the following examples: 1,000 arrested nearSelma, Alabama: Many of the demonstrators were school age children who were singing freedom songs and Leon Jackson, an obscure Negro farm boy will be buried as a hero of the integration movement clad in the denim jumper and jeans that have become the movements trademark (2 January 1965). Overall to religion and God. It contributed to the public perception of the protesters as good and helped prevent racial bias in the public. Works Cited Gore, Shannon. Civil Rights Television Documentaries in the United States, 1960-1966.Unpublished PhD Thesis. Northwestern University, 2009.The Atlanta Constitution, May 1963, PProQuestHistorical Newspapers, https://search-pProQuestcom /pqrl/advanced?accountid=7374. Accessed 22 April 2018.The Atlanta Constitution, January 1965/February 1965, PProQuestHistorical Newspapers,https://search-pProQuestcom /pqrl/advanced?accountid=7374. Accessed 22 April 2018.The Atlanta Daily World, April 1963/May 1963, Proquest Historical Newspapers, https://search-proquest-com /pqrl/advanced?accountid=7374. Accessed 22 April 2018.The Atlanta Daily World, January 1965/February 1965, Proquest Historical Newspapers,https://search-proquest-com /pqrl/advanced?accountid=7374. Accessed 22 April 2018. Civil Rights Movement in the United States - Free Essay Example Sample details Pages: 5 Words: 1434 Downloads: 2 Date added: 2019/07/01 Category Politics Essay Level High school Topics: Civil Rights Movement Essay Segregation Essay Did you like this example? Following the Civil Rights Movement within the United States, several pieces of legislation were enacted in order to better protect minority rights. This included the Fair Housing Act, implemented in 1968 in an effort to better provide equal housing opportunities and reduce the effects of housing segregation. Decades later, housing segregation remains rampant and widely unregulated within society, still disproportionately affecting the black community. Don’t waste time! Our writers will create an original "Civil Rights Movement in the United States" essay for you Create order The effects of housing segregation are evident in all aspects of life, from policing and healthcare to education and economic status. Historically and currently, housing segregation continues to disenfranchise racial minorities and service white supremacy in a society already catered to the white advantage. In an effort to combat the banking crisis of the 1930s, Congress introduced the National Housing Act of 1934 with the hope that it would increase home ownership. This act established the Federal Housing Administration, (FHA), as a regulatory agency of interest rates and mortgage terms, effectively creating the traditional thirty-year mortgage. After WWII, the FHA offered incentives to American soldiers returning home to start families, promising affordable homes with newly secured mortgages. At this time, ninety-eight percent of the loans issued by the FHA were to exclusively white borrowers. In 1933, another government agency was established to assist in the stabilization of the real estate market, the Home Owners Loan Corporation, otherwise known as the HOLC. Eventually, the HOLC was regulated by the FHA, issuing long-term loans to nearly one million prospective homeowners. More importantly, the HOLC has been credited with creating residential security maps, through which the proce ss of redlining is derived. In practice, redlining is the systematic monopolization of the real estate market to favor a specific racial group, white people. Through the process of redlining, residents of certain communities or members of specific racial groups deemed undesirable are denied loans, mortgages, home refinement, and even prevented from buying property in residential areas such as the suburbs. Although the relevance of redlining has only recently garnered public interest, redlining has been practiced for centuries. In their scholarly article, The Historical Demography of Racial Segregation, author Angelina Grigoryeva uses census data, housing licenses, and property tax records to determine the historical extent of housing segregation within the United States. Through their research, Grigorieva found that housing segregation followed a pattern predating the Civil War when slave residences were structured in proximity to the homes of their white owners. Presently, Grigorieva notes a similar pattern in the way metropolitan areas are organized, writing, Whereas northern cities developed segregation via racialized districts, southern cities were more susceptible to micro-segregation, through the backyard pattern and other forms of tertiary segregation, (2). Here, Grigorieva refers to the backyard pattern, a term she coined referencing the way in which white residences dominate front and main streets while black communities are forced into alleys and smaller streets, living behind white people. Therefore, Grigorieva findings outline a historical precedent of housing segregation, presently reinforced through federal legislation that favors the interests, and perceived superiority of white people. Presently, the black community remains the most segregated of all racial minorities. In his opinion piece titled, The Ghettoization of Black Americans Hasnt Been Reversed, author Charles Lane claims, It is to a large degree a legacy of conscious federal actions that helped ghettoized blacks as they migrated from south to north in the mid-20th century. Although they are correct in their assertion, it is important to acknowledge the private practices of the real estate market that facilitate this segregation as well. Even in Northern areas classified as progressive and tolerant, prospective black homeowners face additional difficulty in purchasing real estate and predominantly white neighborhoods. In the documentary, A Matter of Place, filmmakers followed the stories of several minority homeowners and their attempts to secure adequate housing in New York City. For one black couple, the line, Discriminate with a handshake and a smile, became especially relevant as they pursued apartment s in predominantly white buildings. Their story emphasized a common philosophy perpetrated by the housing market, that minorities should live exclusively with other minorities. Recently, several federal initiatives were proposed by the Obama administration to address the lasting impacts of housing segregation. In Charles Lambs scholarly article, HMDA, Housing Segregation, and Racial Disparities in Mortgage Lending, Lamb review recently proposed legislation to offset housing inequality. Lamb writes of a bill proposed in the Senate in 2015, writing, Thus, these opening statements, (of the bill), implied that Congress intended to make communities, at least in part, responsible for deterring lending discrimination by publicly examining bank lending policies and the statistical data made available by HMDA, (page ?). The HMDA, or the Housing Mortgage Disclosure Act of 1975, required financial institutions to disclose mortgage data to the public, and this proposed bill proposed to expand its power along with the Department of Housing and Urban Development. Such legislative action has been reluctantly enforced by current political administrations. In Walter Mondale s opinion piece, The Civil Rights Law We Ignored, he writes that The Trump administration has sought to delay enforcement of the 2015 HUD integration rules by as much as seven years. Ben Carson, the HUD secretary, has referred to these rules † essential to the act he is supposed to safeguard † as mandated social engineering. Therefore, progress against housing segregation has been diminished by an administration willfully upholding a negligent practice that promotes white supremacy. The centuries of housing segregation have left lasting effects on the black community. In Terry Grosss NPR piece, A Forgotten History Of How The U.S. Government Segregated America, he writes that, Today African-American incomes on average are about 60 percent of average white incomes. But African-American wealth is about 5 percent of white wealth. Most middle-class families in this country gain their wealth from the equity they have in their homes. So this enormous difference between a 60 percent income ratio and a 5 percent wealth ratio is almost entirely attributable to federal housing policy implemented through the 20th century. Here, Gross notes the disparities between the incomes of white and black people. An important part of housing segregation was ensuring that white middle-class Americans would receive affordable mortgages so they would eventually be able to own their homes. In this way, housing segregation established that white wealth would be predominantly evident in their home equity, disenfranchising the black community that was not issued loans or able to purchase adequate housing that would one-day garner wealth. Unfortunately, housing segregation has not only hindered black wealth, but education, health care, and policing as well. Given that public schools are primarily funded through property taxes, schools with better facilities, teachers, and resources are likely to be located in more affluent areas. The better the school is, the more the homes cost, the more money there is to fund the schools, creating a cycle of exclusion. Federal and private initiatives that denied mortgages to black families and urban planning that used geographic barriers such as highways and bodies of water to isolate black communities has prevented access to these affluent areas. In some cases of racially charged urban planning, school districts have been drawn to purposefully exclude black residents. In addition, urban planning has resulted in black people being more likely to live near industrial plants or factories that release toxic fumes. Black homes are more likely to have toxic paint and undrinkable water. Furthermore, areas designated for black residents are historically farther away from grocery stores, creating food deserts wherein there is limited, or no, access to fresh and nutritious food. Collectively, these conditions have contributed to black people having higher reported cases of asthma, cancers, and heart disease. Most relevant to our current political climate would be racial profiling disguised as spatial profiling, meaning that living in a certain area, (one with a large black population), makes the likelihood of being stopped by the police, or having frequent interactions with them all the more likely. The practice of spatial profiling has resulted in heavy policing, manifesting into the use of extreme violence and the murder of black people. In synopsis, housing segregation was primarily that of federal motive, and remedies to the epidemic or solutions are reluctantly if at all, enforced. The consequences of housing segregation are evident in the disparity in wealth between black and white citizens, as well as the inadequate living conditions and education that have proven detrimental to the black community. Through the monopolization of the real estate market and present discriminatory practices, housing segregation has fostered white supremacy. Given access to better housing, and subsequent wealth and education, white citizens retain a distinct advantage over their black counterparts and continue to reap the benefits from centuries of discrimination.

Siddhartha the Life of a Prophet Essay - 1376 Words

Buddhism was brought to light about 500 BC by Siddhartha Gautama. Buddhism has not been described as a religion as such but rather as philosophy. The story of Siddhartha Gautama and how he brought Buddhism to limelight is quite moving. In this essay the thoughts of Siddhartha Gautama are explained and how the society reacted to his arguments. Generally this essay will briefly describe the achievements of Siddhartha Gautama in his quest to attain enlightenment and how that impacted the society of his time and to some extent the current society. It is reported that Buddha was born in 563 B.C.E. It is also reported that Buddha was born with an ability to walk and talk; he walked about and cried, â€Å"I am supreme in the world. This is my last†¦show more content†¦He is said to have fasted for six years trying to understand the why suffering existed. It is recorded that he deprived his body so much that he could have easily died; He held his breath until his head roared, ate little food-and what he did eat was sickening-endured painful body positions for lengthy periods, became entrusted with filth, and lost weight until his bones protruded and he could feel his bones protruded and he could feel his spine by pressing on his abdomen. (Warren 107) It is said that he underwent such extreme measures that at one moment he almost died had Siddhartha not have come by and given him some food. It is said that the food he was given helped him to â€Å"regain the strength necessary to return to life† (Warren 107). Having risked death and not attained enlightenment Siddhartha decided to pick a different approach towards enlightenment. Moving away from the path of rigid asceticism, he engaged in meditation that had less bodily harm and succeeded in attaining enlightenment to become Buddha. Siddhartha’s experience of being enlightened has been described as thus: His mind cleansed and concentrated, Siddhartha remembered his former existence-his names, roles in life, and sufferings. Early in the in the night he found knowledge dispelling ignorance. Concentrating his powerful vision on the order of beings coming into existence and passing away, he interpreted the process in terms of their karma. In a third exploration, during the third watch, heShow MoreRelatedSpeical Spiritual Leaders Essay examples625 Words   |  3 Pagessuch as mass and salat, respectively; but these are two very unique rituals. In the same way, religious leaders among religions can vary. Religious leaders are one of the fundamental elements of religions today; however, through the lives of Jesus, Siddhartha Gautama, and Muhammad one can see the differences among these famous religious leaders. For Christians, Jesus Christ is the most famous religious figure. Jesus was born around 4 BC and died around the age of thirty-three. Jesus did not start preachingRead MoreThe Teachings Of Muhammad, Siddhartha Gautama ( The Buddha ), And Jesus1034 Words   |  5 PagesMuhammad, Siddhartha Gautama (the Buddha), and Jesus Christ were extremely influential leaders and were all the keys to establishing three of the major religions today; Islam, Buddhism and Christianity. These religions are currently the largest religions in the world and influence billions of people every day. All three of these men have shaped the course of history and redefined the destiny of mankind. They all lived very interesting lives and preached different lessons to their followers. I wouldRead MoreThe Origins And Central Beliefs Of Islam1735 Words   |  7 Pagesgrowing religion and the second largest in the world. Muslims make up 23% of the world’s population. 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Siddhartha or the Buddha found enlightenment under a tree, since then, he extended his wisdom and taught the Four Noble Truths, as life is suffering, desires causes suffering, end suffering by eliminating all desires, and following the Eightfold Path (Smith, 1991, P. 99)Read MoreAnalysis Of The Hero 1873 Words   |  8 PagesName: Siddhartha Gender: Male Caste: raised in the highest class of Hindu society Role in the story: the hero personality/morality: Born in India (presumably during the late nineteenth century), Siddhartha grew up in a middle-class home under the care of his parents and under the teaching of the Brahmins. His early years are spent learning to meditate and speak the Om. In his village a group of semanas past through. From this day Siddhartha left his family and became one of the poor, misunderstood

A comparison between a girl of 8 years old and one of 16...

A comparison between a girl of 8 years old and one of 16 years old, talking about who they are Is there any developmental trend? Abstract: Two girls, an 8 year old and a sixteen year old were interviewed talking about who they are, following Rosenberg’s categories .It was found that there is a developmental trend between the girls. The locus of self – knowledge shifts with the age from relating on others to relating to the self. Introduction: Younger children focus on describing external characteristics when they talk about who they are, for example, physical appearance and routine activities they participate in, on things that other people are able to observe. As children get older, they focus more on internal characteristics,†¦show more content†¦Talking about relationships and inner categories it could be seen that there is a nice difference between the girls. The eight year old didn’t talk about it, while the sixteen year old choose two of each to describe her. Discussion The results of this report indicate that child’s self-description shows changes with age. The outcome of this report is a pattern of results predicted by Rosenberg: most of the descriptors used by younger children were about physical activity and physical characteristics. The older children were more likely to use the character traits to define the self. The results indicated that the eight years old uses the physical and character categories to describe her, while the sixteen years old goes more for the character and inner to talk about who she is. The younger girl has no relationships and inner categories descriptions in her way of talking about who she is. For the older girl physical categories descriptions are not so important when she talks about who she is. In Annie’s interview there is a lack of consistency between the question that is asked and the answer that is given. The 8 year old doesn’t properly understand some of the questions. For example when she was asked if she has any weak points, she replied: â€Å"my ears†¦my legs†. Locus of self-esteem is following Rosenberg’s findings. When Annie was asked who would be right if her mother and she were askedShow MoreRelatedPortrait Of A Lady By Khushwant Singh Chapter Summary CBSE Class XI XII CBSE Class 11 12 Study Materials Homework Help Extra Questions1287 Words   |  6 PagesHome About CHEMISTRY ENGLISH Blog Archive ââ€" ºÃ‚   2014 (1) ââ€" ¼Ã‚   2013 (8) ââ€" ºÃ‚   August (1) ââ€" ¼Ã‚   July (7) Shirley Toulson A Bio Sketch The Photograph by Shirley Toulson Extra Question... The Photograph by Shirley Toulson Question Ans... The Photograph by Shirley Toulson Chapter Summar... MATHEMATICS PHYSICS Thursday, 4 July 2013 Popular Posts Portrait of a Lady by Khushwant Singh - Chapter Summary The Photograph by Shirley Toulson Chapter Summary Short Synopsis A photograph descries 3 stages. 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Health Care Strategy in Australia-Free-Samples-Myassignmenthelp

Question: Discuss about the Health Care Strategy in Australia. Answer: Introduction Nursing homes in Australia report various problems associated to medication, which impact the outcome of the elders. The factors that expose elders to Adverse Drug Reactions (ADRs) are pharmacokinetics, pharmacodynamics and Polypharmacy. Most of the ADRs occur because nursing assistant staff in aged care centers lacks sufficient knowledge on medications. Lack of adequate information on drugs leads to overdose, omission or giving out wrong medicines. In this paper, a health care strategy will be developed to educate nursing staff on medication. The specific strategy is the Safe and Effective Use of Medicine (SEUM) and will consist of 5Rs. Nursing assistants will be informed about the right drug, right patient, right time, right route and right dose. Besides, the nursing assistants will be trained on the side effects of drugs. When the nursing assistants are educated about medicines, they will adhere to better prescription practices, which will improve the health of elders in nursing h omes. Overview of Safe and effective use of medicine (SEUM) There is a need to minimize Adverse Drug Reactions (ADRs) in the nursing homes around Australia. Safe and effective use of medicines (SEUM) will solve the challenges associated with inappropriate use of medicines. This strategy will first identify knowledge gaps in the prescription drugs among nursing assistants in nursing homes. The nurses will then be educated on the best practices for giving out medication to prevent adverse outcomes based on the 5Rs. The primary aim of the strategy is to improve the health of the elders in aged care facilities. In the long-term, this strategy will gain traction and success in improving the quality of life (QOF) for seniors in nursing homes. Adverse Drug Reactions (ADRs) in nursing homes Adverse Drug Reactions (ADRs) are a major problem in nursing homes. Empirical evidence suggests that there are high-risk medications in aged care facilities. Based on the studies done since2002, about 2 to 3 percent of Australian hospital admissions are drug-related. Hospital reports indicate that incidents connected to medications are the second most common kind of incidents after falls. The most prevalent medication errors are overdose and omission. Studies indicate that most of these medicine errors occur due to patient factors (Roughead Semple, 2009). Another study conducted between 2003 in Australia showed that ADRs account for the most common ADEs. They further found that majority of the ADEs were severe and required hospitalization (Nair, Chalmers, Peterson, Bereznicki, Castelino, Bereznicki, 2016). These studies insinuate that older adults in aged care facilities have higher chances of experiencing ADRs. The most common causes of Adverse Drug Reactions (ADRs) are amplified drug impacts, side-effects, drug-disease interaction, drug-drug interaction and drug-nutrient. Multiple comorbidities are common in adults, which require them to take several drugs. One study involving 412 patients aged over 72 years found that there was an increase in the number prescribed and non-prescribed medications. The mean medications per patient were above three drugs. The study further found that only 11.4 percent of these patients received a clear explanation of the prescribed drugs. Even most of these patients did not have a clear knowledge of the side effects of the medications (Chan, Wong, So, Kung, Wong, 2013). Interaction of these drugs can cause adverse reactions. Lack of a proper diet may also cause adverse impacts for elders. Anaphylactic shock is caused by the administration of sensitive drugs. Penicillin is the leading cause of anaphylaxis. Respiratory depression is caused by barbiturates or analgesics when administered with an alcoholic compound. Hypotension might be caused by calcium channel blockers or oxidase inhibitors (Galbraith, Bullock, Manias, 2007). There are several risk factors for Adverse Drug Reactions (ADRs). The primary risk factors are advanced age, comorbidity, and polypharmacy. Inappropriate medication has also been cited as a leading risk factor for ADRs (Nair, Chalmers, Peterson, Bereznicki, Castelino, Bereznicki, 2016). Many other factors play a major role in the development of ADRs. Most of these elements are client related, socially related and medicine related. Age, for example, has an important effect on the occurrence of ADRs. Elders have higher chances of experiencing ADRs than other age groups. Alcohol consumption also has a fundamental effect on the occurrence of ADRs (Alomar, 2014).These factors increase the risk of ADRs mainly in adults. Non-compliance with treatment is also another factor that occurs in elders. Social, economic, and patient-centered factors result in medication non-compliance (Jin, Sklar, Oh, Li, 2008). Biological impacts of aging including altered cognition and special senses lead to medicine non-compliance. Social circumstances also result in medicine non-compliance. Some of the social factors include living alone, insufficient social support, and illiteracy level impacts medication adherence. Perceptions about medications play a critical role in medication noncompliance. Some elders might perceive medicines as less helpful or completely unhelpful. In this case, ADRs might arise due to non-compliance with treatments. Details of the strategy The proposed strategy will have two primary elements. First, the health literacy of the nursing assistants in aged care facilities will be evaluated. This part is motivated by the fact that some nurses lack sufficient knowledge on giving out medication which results in medication errors. Nursing assistants who have inadequate knowledge on prescription drugs might be the primary cause of medication errors in nursing homes. A health literacy test will be performed before enrolling nursing assistants into the training system. Second, the nursing assistants in the nursing homes will be educated on medications. This health strategy has been developed based on the fact that medication education is required to improve the use of medicines in nursing homes. The medication education will consist of 5R including the right patient, right drug, the right route, the right dose and the right time. Additionally, the nursing assistants will be educated on the side effects of various drugs that are administered in aged care facilities. Right patient Nursing assistant staff should be informed on giving out medicine to the right patient. Due to a high number of elders in nursing homes or confusion, the nursing assistants might give medicine to a wrong patient. Right drug Elders tend to experience multiple illnesses which result in polypharmacy. Polypharmacy refers to the prescription of numerous drugs for one patient, and it is linked to ADRs. Studies have identified that doctors fail to inform patients, which results in the lack of sufficient education (Rambhade, Chakarborty, Shrivastava, Patil, Rambhade, 2012). When the nursing assistants are educated on the right medicine, the risk of giving out the wrong medicine will be reduced significantly. Right dose Nursing assistants in nursing homes should know the right dose of a specific drug. One study involving 44, 344 incidences found that 60.9% of the medicine errors occurred due to improper dosage (Zakharov, Tomas, Pelclova, 2012). Nursing assistants of nursing homes will be educated on the accurate dosage of the medicines that have been prescribed. Right route The route of administration is very important in reducing medical errors. Medication administration errors happen often and have higher chances of leading to adverse harm and death (Westbrook, Rob, Woods, Parry, 2011). The nursing assistant staff should have sufficient knowledge of how the drug will be administered. Oral and intravenous are the most common routes of administration. Nursing assistants will be informed of the right administration route of the prescribed medicines. Right time Nursing assistants practicing in aged care facilities should know the right time to give out medication. The nurses should give out drugs at different times depending on the condition of the patient. As such, nursing assistants at aged care facilities will be educated on the right time to give out drugs. Education on side effects Nursing assistant staff can play an important role in reducing the occurrence and impact of the medical errors in nursing homes. One study found that patients lack information on the side effects as well as warnings on drugs (Singh, Singh, Kumar, Bhandari, Kaur, Dureja, 2013). Nursing assistants will be educated on proper medication practices to prevent adverse side effects. Impact of the strategy The safe and effective use of medicine (SEUM) will have several impacts on the well being of the elders in aged care facilities. The main effect of this strategy will be improving the health of the elders in nursing homes. Specifically, the nursing assistants will be in a position to make informed decisions when giving out medications. When nursing assistants are educated on medicines, they will be in a position to influence the elders treatment plans. The nursing assistants will decide which drug they should give out at a specific time and in the right dose. It is evident that informed nursing assistant staff has prevented numerous medication errors and medical professionals should encourage patient involvement in medication safety. Cohen further notes that care facilities have an obligation of making patients aware of errors as well as the steps that have been put in place to prevent medication errors (Cohen, 2007). Another impact will be preventing the hospitalization of the elder s in aged care facilities. As discussed in a previous paragraph, medication errors are a leading cause of hospitalization. This occurrence will be prevented through proper education. Patients can notice observable issues that occur due to medication errors (Britten, 2009). The last effect will be preventing and lowering mortality. Adherence to medication will be improved, which will, in turn, prevent adverse outcomes such as death. Goals The safe and effective use of medicine (SEUM) will offer nursing assistants with the skill and education required to promote healthy behaviors in nursing homes. The goal of the strategy is to help the elders to live with their conditions. In the long term, the strategy will have an objective of preventing future health complication, reducing the reliance on health care services and lowering general costs to the health care system. The intention of the strategy to the health care providers will be enhancing the awareness of the need for nursing assistant staff education. Conclusion This scholarly paper has developed a healthy strategy known as the safe and effective use of medicine (SEUM). Nursing assistants in aged care facilities require comprehensive knowledge of the medicines to prevent Adverse Drug Reactions (ADRs) and improve the elders outcomes. The proposed strategy will be based on the 5Rs, the right medicine, the right route, the right dose, the right time and right patient. The health care strategy will also comprise of education on side effects of drugs. As discussed in this paper, the strategy will comprise of two main elements which are the evaluation of health literacy level and actual education. Nursing assistants in nursing homes will be educated on medication based on their literacy level. This strategy will improve the health of the elders in the short-term and lower mortality level in the long-term. References Alomar, M. J. (2014). Factors affecting the development of adverse drug reactions (Review article). Saudi Pharmaceutical Journal , 22 (2), 83-94. Britten, N. (2009). Medication errors: the role of the patient. British journal of clinical pharmacology , 67 (6), 645-650. Chan, F. W., Wong, F. Y., So, W. Y., Kung, K., Wong, C. K. (2013). How much do elders with chronic conditions know about their medications? BMC geriatrics , 13 (59), 59. Cohen, M. R. (2007). Medication Errors. American Pharmacist Association. Galbraith, A., Bullock, S., Manias, E. (2007). Fundamentals of pharmacology. Melbourne: Pearson. Jin, J., Sklar, G. E., Oh, V. M., Li, S. C. (2008). Factors affecting therapeutic compliance: A review from the patients perspective. Ther Clin Risk Manag , 4 (1), 269-286. Nair, N. P., Chalmers, L., Peterson, G. M., Bereznicki, B. J., Castelino, R. L., Bereznicki, L. R. (2016). Hospitalization in older patients due to adverse drug reactions the need for a prediction tool. Clinical interventions in aging , 11, 497-505. Rambhade, S., Chakarborty, A., Shrivastava, A., Patil, U. K., Rambhade, A. (2012). A Survey on Polypharmacy and Use of Inappropriate Medications. Toxicology international , 19 (1), 68-73. Roughead, E. E., Semple, S. J. (2009). Medication safety in acute care in Australia: where are we now? Part 1: a review of the extent and causes of medication problems 20022008. Australia and New Zealand Health Policy , 6 (1), 18. Singh, J., Singh, N., Kumar, R., Bhandari, V., Kaur, N., Dureja, S. (2013). Awareness about prescribed drugs among patients attending Out-patient departments. Int J Appl Basic Med Res , 3 (1), 48-51. Westbrook, J. I., Rob, M. I., Woods, A., Parry, D. (2011). Errors in the administration of intravenous medications in hospital and the role of correct procedures and nurse experience. BMJ Qual Saf , 20 (12), 1027-1034. Zakharov, S., Tomas, N., Pelclova, D. (2012). Medication errorsan enduring problem for children and elderly patients. Upsala journal of medical sciences , 117 (3), 309-317.

Racial Profiling Essays (1653 words) - Social Inequality

Racial Profiling Racial profiling is the tactic of stopping someone because of the color of his or her skin and a fleeting suspicion that the person is engaging in criminal behavior (Meeks, p. 4-5). This practice can be conducted with routine traffic stops, or can be completely random based on the car that is driven, the number of people in the car and the race of the driver and passengers. The practice of racial profiling may seem more prevalent in todays society, but in reality has been a part of American culture since the days of slavery. According to Tracey Maclin, a professor at the Boston University School of Law, racial profiling is an old concept. The historical roots can be traced to a time in early American society when court officials permitted constables and ordinary citizens the right to take up all black persons seen gadding abroad without their masters permission (Meeks, p. 5). Although slavery is long since gone, the frequency in which racial profiling takes place remains the same. Ho wever, because of our advanced electronic media, this issue has been brought to the American publics attention. Some consider racial profiling a viable tool to reduce crime. The New Century Foundation, a non-profit organization based in the Washington, D.C. suburb of Oakton, VA, published a report on the American Renaissance website, stating that African-Americans commit 90% of the approximately 1,700,000 interracial crimes of violence that occurs every year in the United States. They are more than fifty times more likely to commit violent crimes against whites than vice versa. According to this same report, African-Americans are much more likely to commit violent crimes than whites and when they commit these crimes, target whites slightly more than half the time. The foundation believes that these crime statistics warrant racial profiling as a crime deterrent and believe that it may even reduce crime. A recent article published on the website, Jewish World Review, states that racial profiling is frequently used, not only in law enforcement, but also in everyday existence. The author, Walter Williams, states that, we face a world of costly and incomplete education, and that means we have to do a lot of guessing and playing hunches. Because of this uncertainty, specific indications are required that can provide the public with more information and allow educated decision-making. The article presents examples of the types of racial profiling in existence. For example, simply for their own safety reasons, taxi drivers will avoid driving into a particular area of the city because of the reputation of its propensity to crime. They will also drive past a person of color and stop to pick up a white passenger for that same reason, valid or not. Williams cites his own personal experience with his physician, who uses a typical black mans health statistics collected from years of study to agg ressively monitor his high blood pressure. It is because these medical statistics illustrate that high blood pressure is more prevalent in black men than in any other demographic group. In a n article published in the Wall Street Journal, entitled Racial Profiling Doesnt Prove Cops are Racist, Jackson Toby states that a little perspective is in order here. Being a professor of sociology, he believes that racial profiling is an extremely important idea in modern criminology. He continues that within two years of the policys adoption by the New York City Transit Police, the number of felonies in the subway declined by more than 30%. Basically, he believes that by paying attention to subtle behavior, criminal behavior can be prevented, and certain ethnic and age groups exhibit certain subtle behaviors. He goes on to say that although blacks are only 12% of the American population, they comprised 56% of the arrests for murder, 42% of the arrests for rape, 61% of the arrests for robbery, 39% of the arrests for aggravated assault, 31% of the arrests for burglary, 33% of the arrests for larceny, and 40-% of the arrests for motor vehicle theft. Because of these statistics, police are more prone to look for the type of person more apt to commit these crimes, and in these cases, based on the data, African-Americans are brought to the forefront. Naturally,