...Product Liability Management Victor Adejayan Dr. Dianne Barrs Strayer University LEG 500 September, 2012 Product liability is the responsibility of a manufacturer for injury or loss caused by its product (Dictionary.com). Product liability serves to protect the public but it is may turn out to be very expensive to organizations. Management has the duty of making sure that organizations’ resources, especially funds and reputation, do not suffer unnecessary attrition and damages through the implementation of effective, affordable product liability programs. It is important to have people in management that possess the skills such needed to solve liability issues in the legal arena, most importantly before they occur.The challenge of the manager is fulfilling his/hers responsibilities by generating profit in business while protecting the interests of otherstakeholders, such as, employees and customers. Though the savvy manager cannot stop people from having the intention and grievances to sue the organization, they can reduce the motive of prospective plaintiffs and in event of a lawsuit happens; effective product liability management mitigates the negative effects on the organization. Management has the duty of making sure the product liability policies and programs of the organization is clear, concise and precise so that the interpretation thereof cannot be turned to work against the organization. Most lawsuits that are directed at organizations arise...
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...Buy one coffee and get US $640,000 free Reported by: Violet Simbi, M984011056 Uyanga Purevjav, M984011053 Anh Le, M984011066 NSYSU Department of Management BRIEF CONTENTS Abstract 3 1. Introduction and issue identification of the case 4 2. Analysis 7 2.1. Stakeholder analysis 7 2.1.1. Consumers 8 2.1.2. Owners, executives, employee 8 2.1.3. Other groups of stakeholders 9 2.2. CSR Analysis 9 3. Evaluations 10 3.1. Who is to blame? 10 3.2. Root cause analysis 11 3.3. Recommendations 11 4. Implication of the case for future product related complaints 12 Conclusion 15 References 16 Appendix (Case: “The coffee spill heard round the world”) 17 Abstract The Stella Awards were inspired by the Stella Liebeck case in 1992. Stella purchases McDonald’s coffee from a drive through and later received US $ 640,000 for burning herself with this coffee. The lawsuit between Stella Liebeck and McDonald’s – a huge cooperation, was one of the most controversial court cases of its time. In this paper we defined the major ethical issues, analyzed who are the stakeholders and how the stakeholders influenced this case. Furthermore, we also mentioned other complain and lawsuits which McDonald’s had to face with before 2007, which means before and after Stella’s case. Finally, we have some references and comments form McDonalds in particularly. As well as general comments about how organizations and how they make final decisions in the future when...
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...Introduction McDonalds is one of the world’s leading fast food chain restaurants. It account for the total of over 30,000 restaurants in over 119 countries. All these McDonalds restaurants serve around 50 million people every day. There are ups and downs in every business. Every business has to face challenges over the time. Out of those challenges, one of the major challenges faced by McDonalds was supply chain management. Supply chain management involves creating a balance between minimising wastage as well as at the same time meeting customers’ needs. Wastage is reduced by two major steps:- * Accurate forecasting (product is not ordered in excess) * Accurate supply control of raw material. Supply chain management involves creating balance between customers need at the same time minimising wastage of product including raw material. It is believed to be very tough to balance. In order to fulfil changing taste of customers, McDonald’s needs to introduce new products to their existing menu, which in turns make it even harder to minimise wastage. Importance of required change In early days, stock ordering was so easy at all McDonald’s restaurants. Stock ordering was responsibility of restaurant manager. They order stock using their local knowledge, as well as data on what the store sold previous day, week and month. For example, if last week's sales figures showed they sold 100 units of coffee and net sales were rising at 10%, they would expect to sell 110 units...
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... Starbucks Coffee Table of Contents Introduction 3 Product Analysis 3 Product Overview 3 Market Structure 4 Competition 5 Dunkin Donuts 7 Krispy Kreme 3 McDonalds 8 Panera Bread 8 Elasticity Estimates Pricing Strategy 10 Forecast 12 Determants of Demand 13 Forecast Model 15 Forecast Error! Bookmark not defined. Summary 15 Works Cited Introduction With the economy in trouble, the stock market tanking it is important to start your day with a good cup of coffee to take on these challenges. Can Starbuck’s sustain it business model and place in the market? The paper examines Starbucks business and it respective practices. In 1971, the original Starbucks opened in Pike Place Market in Seattle, Washington by three partners named Jerry Baldwin, Zev Siegal, and Gordon Bowker. Their focus was to sell coffee beans and equipment. They purchased green coffee beans from Peet’s, a specialty coffee roaster and retailer, during their first year of operation. Later, they began buying coffee beans directly from the growers. In 1983, an entrepreneur by the name of Howard Schultz joined the company; Schultz felt that the company should sell coffee and espresso drinks as well as coffee beans. The partners felt that selling coffee and espresso drinks would take away from their primary focus of selling coffee beans. Since the...
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... Starbucks Coffee Table of Contents Introduction 3 Product Analysis 3 Product Overview 3 Market Structure 4 Competition 5 Dunkin Donuts 7 Krispy Kreme 3 McDonalds 8 Panera Bread 8 Elasticity Estimates Pricing Strategy 10 Forecast 12 Determants of Demand 13 Forecast Model 15 Forecast Error! Bookmark not defined. Summary 15 Works Cited Introduction With the economy in trouble, the stock market tanking it is important to start your day with a good cup of coffee to take on these challenges. Can Starbuck’s sustain it business model and place in the market? The paper examines Starbucks business and it respective practices. In 1971, the original Starbucks opened in Pike Place Market in Seattle, Washington by three partners named Jerry Baldwin, Zev Siegal, and Gordon Bowker. Their focus was to sell coffee beans and equipment. They purchased green coffee beans from Peet’s, a specialty coffee roaster and retailer, during their first year of operation. Later, they began buying coffee beans directly from the growers. In 1983, an entrepreneur by the name of Howard Schultz joined the company; Schultz felt that the company should sell coffee and espresso drinks as well as coffee beans. The partners felt that selling coffee and espresso drinks would take away from their primary focus of selling coffee beans. Since the...
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...Brand Management Brand Value Chain - The below diagram is a typical model of brand value chain. It follows the process of developing a brand. There are two lines in this model, first line shows the various stages of developing the value of company and the second line consists of the multipliers which strengthen the relationship between the stages. Generally there are four value stages and three multipliers in a brand value chain model but for explaining the case of Starbucks we have excluded the fourth stage and the subsequent multiplier. Marketing Program Investor Customer Mind-set Market Performance Marketplace Conditions Multiplier Program Quality Multiplier Value Stages Multipliers * Product * Location * Advertising * Employee * Clarity * Distinctiveness * Relevance * Consistency * Price Premiums * Price Elastics * Market Share * Expansion Success * Cost Structure * Profitability * Awareness * Attitude * Association * Attachment * Activity * Competitive Reactions * Channel Support * Customer Size & Profile Marketing Program Investor Customer Mind-set Market Performance Marketplace Conditions Multiplier Program Quality Multiplier Value Stages Multipliers * Product * Location * Advertising * Employee * Clarity * Distinctiveness * Relevance * Consistency * Price Premiums * Price Elastics * Market Share *...
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...McDonald’s and Leadership. McDonald’s is a well-known company that many people have frequented at least once in their lifetime. McDonald’s, like many other companies, started with a dream and a vision. Back in the 30’s when the McDonald brothers started selling hot dogs; little did they know that they would have a profound effect on what would become the fast food industry and American culture (How McDonald's Works, 2012). In 1948, the McDonald brothers reinvented their business, their products and their processes and it paid off. They expanded their business and became a franchise, and it was during this expansion that they would encounter the man who in 1961 bought the whole business, and who takes credit for the McDonald’s corporation, Ray Kroc (How McDonald's Works, 2012). It has been Kroc’s determination, vision and goal to advance McDonald’s into the fast food giant that it is today. As one can see, McDonald’s is an ever changing and evolving organization. This research paper highlights four areas of McDonald’s management; planning, organizing, leadership and control. Planning: McDonald’s Corporation has a “Customer-Focused Plan to Win” plan (Strategic Direction, Company Profile). The plan is more of a guide for operating that is adaptable to change. It involves Five Elements (the 5 P’s): People, Products, Place, Price, and Promotion; along with being financially responsible. They continue to train all employees at all levels to keep them updated on...
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...Operations Management (McDonalds Case Study) INTRODUCTION - OPERATIONS MANAGEMENT: Operations management can be defined as the planning, scheduling , and control of the activities that transform inputs into finished goods and services. In other words, it is ‘a field of study that focuses on the effective planning , scheduling, use, and control of a manufacturing or service organisation through the study of concepts from design engineering, industrial engineering, and management information systems, quality management, production management, accounting, and other functions as the affect the operation.’ (APICS Dictionary, 1995) Operations management concerns making the most efficient use of whatever resources an organisation has so as to provide the finished goods or services that its customer need in a timely and cost effective manner. (Barnett ,1996). Operations management is related with the strategy of the organisation. In this coursework, we will demonstrate the relationship between the operations management and the strategy of the organisation with the help of a corporate entity. The corporate entity chosen is McDonald's Corporation. COMPANY BACKGROUND McDonald's Corporation is the world's largest chain of fast-food restaurants. The business began in 1940, with a restaurant opened by siblings Dick and Mac McDonald in San Bernardino, California. Their introduction of the "Speedee Service System" in 1948 established the principles of the modern fast-food restaurant...
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...City college international faculty of university of sheffield 2013 STARBUCKS COFFEE STRATEGIC PLAN MODULE TITLE: Business Strategy Executive Summary The main purpose of the current paper was to develop strategic plan for Starbucks for the future and to analyze the alternative strategic directions compared with the existing strategy. The paper starts with brief description of the company profile and the product line that company successfully offers during their operations history. The second part of the strategic plan analyzes the external environment of the company by analyzing the industry current situation. From the Five forces model we able to move on to ascertain that the industry generally is attractive that lead to a growth of strategy. The external environment analysis identify that company faces a strong competition from competitors from other industries like case of McDonalds and Dunkin Donuts. Also, from the external analysis was identified the success factors of Starbucks that led them to leading position in the industry. The drivers of change are describing the external environment in which the company operates and to which factors company need to pay attention for the future avoidance of challenges. The third section of the assignment analyzes the internal environment of the company there is given high attraction to SWOT analysis in order to understand the company’s opportunities for growth and strengths that could increase the strategy’s success and...
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...McDonalds: Operating in the Best Interests of Society or its own Profits? Marc Nettekoven Florida Atlantic University Professor Brenda Richey MAN 6937 December 7, 2011 Table of Contents Introduction 3 Company Changes 3 Competition 7 Consumer Protection & Regulation 8 Corporate Social Responsibility 10 Conclusion 11 Appendix 12 References 13 McDonalds: Operating in the Best Interests of Society or its own Profits? Today, there are numerous other fast food chains and similar alternatives for consumers to choose from beyond the option of McDonalds. Due to increasing levels of competition, rising concerns of food quality and increasing concern of obesity; operating in today’s globalized fast food society can deem to be a difficult task. McDonalds needs to broaden its narrow-minded focus on generating profits (expanding its location base) and adding more locations. The company needs to increase market share while building a good reputation by operating in, and contributing to, the best interest of society. When referring to society, it includes all stakeholders in the company, ranging from customers to suppliers. To realign its strategy and focus on ethicality and its responsibility as a corporation, McDonalds must involve all levels within the company, from top management to suppliers to franchise employees. Although operating in such a manner would require large levels of capital, the benefits to society as a whole would inevitably bring company...
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...reputation of having the best coffee in the world. In 1990 Starbuck’s senior executive team created their mission statement and principals, which would incorporate Schultz’s principles. In their mission their final statement proclaimed “people first and profits last” with the number one guiding principal of Starbucks was to “provide a great work environment and treat each other with respect and dignity.” (Ferrell, Fraedrich & Ferrell pg. 325, 2012) Starbucks Mission Statement is to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. (Starbucks.com) Positions In our Compensation System Proposal for Starbucks, we will analyze and define positions in the organization. These positions are Barista, Shift Supervisor, Assistant Store Manager, Store Manager, District Manager and Regional Director. We provide a general overview of these positions to the reader in order to facilitate a better grasp and idea of what these critical roles and job functions are in the Starbucks organization. The Barista is considered to be the face of Starbucks, and as such, they are an important part of the customer’s day. The Barista is an expert in handcrafting deliciously perfect beverages. Barista’s are the connection to the company mission, by creating the moments that make a difference in each person’s day. The Shift Supervisors direct work on the floor, run a shift, lead a team, and make important decisions that impact store operations. They also help create...
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...STARBUCKS By Patricia L. Boyd BA 2430 International Management Professor Jeff Walls January 30, 2011 Summary Three Seattle entrepreneurs started the Starbucks Corporation in 1971. Their prime product was the selling of whole bean coffee in one Seattle store. By 1982, this business had grown tremendously into five stores selling the coffee beans, a roasting facility, and a wholesale business for local restaurants. Howard Schultz, a marketer, was recruited to be the manager of retail and marketing. He brought new ideas to the owners, but was turned down. Schultz in turn opened his own coffee bar in 1986 based on Italian coffee cafes, selling brewed Starbucks coffee. By 1987, Schultz had expanded to three coffee bars and bought Starbucks from the original owners for $4 million. He changed the name of his coffee bars from Il Giornale to Starbucks. His intention for the company was to grow slowly with a very solid foundation. He wanted to create a top-notch management by wooing top executives from other well-known corporations. For the first two years, Starbucks losses doubled as overhead and operating expenses increased with Starbucks' expansion. Schultz stood his ground and did not sacrifice long term integrity and values for short-term profit. By 1991, Starbucks' sale increased by 84% and the company was out of debt. Starbucks brought back founder Schultz to lead daily operations in 2008, closed hundreds of stores and cut jobs. It reemphasized training for...
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...Faculty of Business, Brock University | Starbucks Strategic Analysis | MGMT 4P90: Strategic Management | | Submitted by: | Amar Mohla | Akshat Kaushal | Tania RahmanVijay Bhullar | Presented to: Professor Peter Yannopoulos, PH.DMarch 28th, 2012 | | | ------------------------------------------------- Michael Porter’s 5 Forces Analysis Michael Porter uses the 5 forces model to analyze the industry environment. His ideas on competitive strategy are the most pervasive analytical tool used in strategic management (Henry, 2011). The five forces is used to capture the variation of competition, to determine whether a firm outside an industry should enter the industry, to see barriers to entry, to determine attractiveness of firm and to determine where the organization stands in relation to their industry. These five forces also help increase awareness of a trend towards suppliers and buyers bargaining power as well. Unlike SWOT analysis which is company specific explained in the next portion of this project, Porter’s five forces framework is industry focused. Furthermore, the five variables in the porter analysis are the industry suppliers, buyers, potential new entrants, substitute products and competition among existing firms. This section provides a thorough examination of the five forces affecting Starbucks’ coffee industry environment. Potential for new entrants The first force in Porter’s model analyzes potential new entrants which may impact...
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...EXACTUTIVE SUMMARY This report was commissioned to find out a solution of Starbuck current losing dominant position in Coffee shop industry. The current issues were brought by 20 years phenomenal expansion, which is also the only way that a company must be passed. The report draws attention to both of the company’s internal control and external environmental changes. Further analyzed company’s current situation by SWOT analysis and Market Mix analysis. Also, the report make a conclusion of 3 other strong competitor of Starbucks’, from a view of special ability and distribution channel using similarity and difference comparison method. The report also evaluates Starbucks’ different type of targeted customers, and finding out differential way to promote them. Products and service quality and licensing issues, which are brought by fast expansion, should be taking concern by partners. In order to solve this problem and reduce financial risk at the same time, this report have provide 3 alternatives, “Make the company franchises growth rate slow down; take control of the quality first. Qualify the licensing retail stores and share operating experience between these stores. Continuing provide variety products” is recommended. 1. Problem Statement The Starbuck coffee shop has become one of an expending company in Canada. However, current marketing strategy cannot corporate the situation efficiently, the share price was decline sharply, the customer not...
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...Fig 1. The Modern Coffee Shop Marketplace A relatively mature market with fierce competition. The focus is on increasing Marketshare, mainly through outlet expansion, Premiumisation of products to Differentiate and increase prices to influence the average spend per visit; along with NPD and creating new channels to new markets, i.e. PRC. Specialists add value through their expertise and dramatic show of Barista skills. Brand Loyalty is low, with consumers under pressure due to static wages/rising prices. To offset, retailers offer miniatures/vending, improved convenience and create new occasions to visit stores. Fig 2. Porter’s Generic Strategies (1980) – Strategies to increase marketshare (outlet expansion) & loyalty Differentiation * | Premiumisation of products/services to differentiate & charge higher prices - Increasing spend per visit by consumer-driven N.P.D | Focus | A niche market strategy is not suitable; focus is on mass market & intense penetration with diversification of products/services | Cost Leadership | Low prices is not congruent to the Brand Values of Starbuck’s - Premium price for high quality products & customer service/experience | Fig 3. Porter’s 5 Forces - Market Attractiveness – 60% of consumers have not altered coffee habits in recession Competitive Rivalry Mature & Fierce * Branded coffee shops focus on premiumisation & quality of services - Barista expertise to emphasise their ‘added value’ * Independents...
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