BEHAVIOURAL FINANCE AND MARKET EFFICIENCY Essay

BEHAVIOURAL FINANCE AND MARKET EFFICIENCY - Essay Example Due to the presence of inefficiency within the global market, the sales and profitability of a company is not only affected but also the country’s ability to build a more reliable capital asset. Therefore, in response to poor market efficiency, the study on behavioural finance has gained importance back in 1990s2. Using knowledge on behavioural finance, the main causes and underlying drivers of the most recent global financial crisis will be identified and tackled in details. As part of analyzing the factors that has triggered the recent global financial crisis, both behavioural and non-behavioural explanation behind such crisis will be compared and contrast. In relation to the presence of irregularities in the global markets, whether or not â€Å"value† is riskier than â€Å"growth† will be answered based on the theory behind the rational risk pricing. 2. Main Causes and Underlying Drivers of the Most Recent Global Financial Crisis 2.1 Non-behavioural Explanatio n behind the Most Recent Global Financial Crisis Next to the Great Depression which occurred back in 1930s, the worst global financial crisis happened between 2007 to 2008 when most of the large-scale financial institutions worldwide were at risks of bankruptcy aside from the sudden fall in the stock markets3. Specifically the U.S. real estate bubble in 2006 had caused serious damages to the status of global financial institutions4, 5. Eventually, the prolonged 2007 to 2008 global financial crisis has somehow contributed to the European sovereign-debt crisis6, 7. This increases the risks wherein most of the largest financial institutions such as the Lehman Brothers had serious problems about their liquidity and bank solvency8. Based on the study of macroeconomics, a lot of potential factors have been considered to be the main drivers behind the most recent global financial crisis. Based on the historical trend in the global financial crisis, one thing that is certain is that increas e in financial imbalances within the world market has something to do with today’s global financial crisis9. Likewise, it is also suspected that the growing imbalances in the worldwide capital flows are one of the main reasons behind the recent global financial crisis10, 11, 12, 13. Furthermore, it is also possible that the combination of the increasing imbalances in the flow of capital worldwide and the use of monetary policies have contributed to the development of the recent global financial crisis14, 15. Financial crisis is often characterized by having relatively low levels of national savings, huge fiscal and financial deficits, business bankruptcy and foreclosure, low GDP output, high unemployment rate, and huge trade or current account deficits16. With regards to the continuously increasing global financial imbalances, Merrouche and Nier (2010) explained that the incidence of global financial imbalances is somehow strongly connected with the huge dispersion between a huge net capital flows between two or more different countries and the position of the current account across different countries17. In line with this, a country with excessive inflows of capital can have long-term low interest rates which can influence most investors to search for other investment options as most financial institutions would try other means of maintaining their daily operational costs18, 19. Likewise, excessively high inflows of capital can also significantly reduce the wholesale funding cost of the

Principles of Research and Practice Assignment Example | Topics and Well Written Essays - 2000 words

Principles of Research and Practice - Assignment Example Many researchers categorize empirical research methods into three categories: experimental, correlational, and descriptive (Creswell: 1994). These all correspond to ways of taking guesses and theories about humanity into argument with knowledge. Researchers must conduct testing for a wider range of basis, testing starts from pre-testing a research design to challenging the process of a measuring instrument. There is a popular application of methods in examining the fundamentals of hypotheses and this is very appropriate in giving the most reliable evidence of causation (Deacon ET. Al.:1999). A researcher must work on two essential things; first, he must have a control to at least one independent variable. He must observe and measure an independent variable. Second, he must do a random assignment, the researcher must decide whether or to what extent an investigational contributor is depicted to the independent variable. The numerous independent variable in an investigational designs i s significantly helpful, the outcomes in the field of media may vary for different kinds of people, such as creating consent to the knowledgeable study of these differences (Jensen: 2002). For example, including both experiences to mediated opposition and gender in one design allows a researcher to observe the independent variable with hostility and their interaction. ... In order to use mass communication, social and cultural backgrounds of the viewers must be observed to give a full description of the "real" world. For an instance, connection to broadcasted violence usually happens at home (Malhorta and Birks: 2000). If a researcher be in control of it, he has no guarantee that the results studied will be relevant in more distinctive contexts. Thus, experimental research may specify what can happen, rather than what really happen in "realistic" situations. Experimental research also leans to be limited to the short-term effect of the mass media. One typically cannot influence and have power over media-related activities for months or years. The researcher has no influence in a study using a co-variation among variables, such as televised violence and assault in children (Jensen: 2002). As an alternative, a researcher generally determines the variables as they take place obviously. Such studies usually fall well short of gathering the standards for c ausal conclusion. A correlation study, regarding measures of discovery to televised violence and aggression; it was a synchronic or cross-sectional study. Each variable was assessed at only one time point. It is occasionally probable to control time order by using a diachronic study, concerning more than one time point. One could correlate a determined independent variable with later adjusts in a dependent variable. Regardless of this inadequacy, correlational studies usually reflect naturally in occurring processes. In this sense, they are high in external validity. In fact, many questions are examined using both experimental and correlational techniques (Malhorta and Birks: 2000). To the extent, each type gives similar evidence such as a person's exposure to mediated

Animal testing Research Paper Example | Topics and Well Written Essays - 1250 words

Animal testing - Research Paper Example The same applies to cosmetics since researchers investigate for the suitability of such products in animals. Animal testing therefore is a vital practice in education, defense and breading researchers with most governments formulating appropriate legislations to guide the use of animals in studies as the discussion below portrays. Government regulation is essential in safeguarding the rights of both the animals and the humans who engage in the practice. Proponents of animals testing argue on the positive attributes of the practice key among which is the fact that animal testing enhances the growth of knowledge thereby bettering such vital sciences as medicine and social arts among many others. â€Å"they feel that the scientific advances that have emerged from animal testing-such as polio vaccine and measles, cancer chemotherapy and open heart surgery- far outweigh any pain, suffering or death the animals may experience† (Hayhurst 72). Opponents of the practice on the other hand argue in favor of the animals. They claim that using animals is both unethical and breaches the rights of the animals. The studies disrupt the natural existence of the animals in their respective habitats. Furthermore, the testing includes inserting harmful substances in the bodies of the animals possibly endangering or killing such animals. Such individuals oppose the practice based on the ethical implications and the rights of the animals. Despite the above arguments, both parties contend that animal testing is important and advantageous in medical practice among others. Toxicology testing is one such important tests conducted on animals. Just as the name suggests, it refers to the testing of the toxic levels in such finished products as pesticides thereby establishing the suitability of such products. The tests investigate for the effectiveness of such pesticides and their effects on other animals including humans. The tests include testing both the

Principles of Research and Practice Assignment Example | Topics and Well Written Essays - 2000 words

Principles of Research and Practice - Assignment Example Many researchers categorize empirical research methods into three categories: experimental, correlational, and descriptive (Creswell: 1994). These all correspond to ways of taking guesses and theories about humanity into argument with knowledge. Researchers must conduct testing for a wider range of basis, testing starts from pre-testing a research design to challenging the process of a measuring instrument. There is a popular application of methods in examining the fundamentals of hypotheses and this is very appropriate in giving the most reliable evidence of causation (Deacon ET. Al.:1999). A researcher must work on two essential things; first, he must have a control to at least one independent variable. He must observe and measure an independent variable. Second, he must do a random assignment, the researcher must decide whether or to what extent an investigational contributor is depicted to the independent variable. The numerous independent variable in an investigational designs i s significantly helpful, the outcomes in the field of media may vary for different kinds of people, such as creating consent to the knowledgeable study of these differences (Jensen: 2002). For example, including both experiences to mediated opposition and gender in one design allows a researcher to observe the independent variable with hostility and their interaction. ... In order to use mass communication, social and cultural backgrounds of the viewers must be observed to give a full description of the "real" world. For an instance, connection to broadcasted violence usually happens at home (Malhorta and Birks: 2000). If a researcher be in control of it, he has no guarantee that the results studied will be relevant in more distinctive contexts. Thus, experimental research may specify what can happen, rather than what really happen in "realistic" situations. Experimental research also leans to be limited to the short-term effect of the mass media. One typically cannot influence and have power over media-related activities for months or years. The researcher has no influence in a study using a co-variation among variables, such as televised violence and assault in children (Jensen: 2002). As an alternative, a researcher generally determines the variables as they take place obviously. Such studies usually fall well short of gathering the standards for c ausal conclusion. A correlation study, regarding measures of discovery to televised violence and aggression; it was a synchronic or cross-sectional study. Each variable was assessed at only one time point. It is occasionally probable to control time order by using a diachronic study, concerning more than one time point. One could correlate a determined independent variable with later adjusts in a dependent variable. Regardless of this inadequacy, correlational studies usually reflect naturally in occurring processes. In this sense, they are high in external validity. In fact, many questions are examined using both experimental and correlational techniques (Malhorta and Birks: 2000). To the extent, each type gives similar evidence such as a person's exposure to mediated

Subculture III Essay Example | Topics and Well Written Essays - 1000 words

Subculture III - Essay Example Heroes Camp has been such a subculture that has considerable influence upon the lives of the deprived children of the South Bend region of Indiana. The management and the officials of the Heroes Camp have been crucial for the purpose of enlightenment of the mind, body, and soul of those children and transform their lives for the greater good of the God and society. Heroes Camp has been an influential subculture for the ‘at – risk’ youth of the region of South Bend of Indiana. The most important aspect of this subculture has been that it has been helping the members to get involved in the long-term relationship of love and mutual respect. The present facility of the Heroes Camp has an area of more than 20,000 square feet of area that includes the food bank, at least three basketball courts, kitchen, offices and the laundry area. The further description of the Heroes Camp suggests it to be a, â€Å"an organization that trains youth with activities that offer hope, life skills, and loving relationships. This outreach has an extraordinary component that specializes in servicing the overlooked and disadvantaged youth who are challenged by lives circumstances. Heroes Camp purposes to provide a solid foundation for the progressive development of spirit, soul, and body with an end goal of holistic growth so that youth have the oppo rtunity to build stable productive lives and become leaders†. The most important factor for the success and the prosperity of the sub – culture (Heroes Camp) has been the highly experienced and influential management. The ministry is headed by Pat Magley and B J Magley, the co-founders and the directors. The organization was founded by them in 1989 and Pat has been working full – time for the ministry since 1990 as he left his job with Berkheimer.

Strategic Analysis Of The External Environment Currently Facing Gillette Marketing Essay

Strategic Analysis Of The External Environment Currently Facing Gillette Marketing Essay 1. Abstract Purpose The objective of this report is to conduct an extensive analysis of the external environment and evaluate the key drivers influencing the corporate strategic management of Proctor Gambles brand, Gillette. It will concentrate on identifying, categorising and prioritising the key issues facing this organisation both in the macro-environment and the micro-environment. Methodology The tools used in this report to provide an external analysis of the key environmental forces and competitive drivers include; analytical frameworks such as the PESTEL framework, and Porters 5-forces analysis. In addition an analysis of strategic groups and sources of competition will be included. Findings The influence of political, economic, social, technological, environmental and legal drivers in the macro-environment, combined with the issues from the micro-environment, provide a series of implications for competitive action and strategic choice in the future. In the current external environment, social-trends and technological aspects play a vital role in a companys success in the Shaving Razor industry. Value The report utilises appropriate theory, conceptual frameworks and academic literature on future strategies and scenarios for Gillette from an analytical perspective. 2. Introduction This report will define Gillette as assembling and marketing its products within in the Shaving Razor industry, a distinct category of the Beauty Personal Care sector. Regardless of the period of growth the industry, valued at  £523 million, has benefitted from in recent years, Mintel (2009) suggested that sales of shaving and depilatory products had dropped by an estimated 3%. (Lee, 2010) proposes the industry faces cash-conscious consumers who may be seeking to reduce the cost of expensive razor blades or ensure they last for a longer period of time. However, (Bottomley, 2010) suggests a different reason for the decrease, even the most gadget- obsessed male is likely to question the value of on-board microchips and precision trimmers, when there are simpler, high-quality products available for a fraction of the price. Another point of view from (Jefferson, 2010) who suggests perhaps it is the functional approach that companies within this industry present to customers, connectin g with customers on a more emotional level will remedy the predictable perceptions of two blades are better than one, three blades are better than two and so on. The object of this report is to provide a structure focusing on future trends that can help to analyse strategic choices available to companies in the Shaving Razor industry. It will provide an extensive external environmental analysis of the current Shaving Razor environment with a future-trend perspective, using the PESTEL (political, economic, social, technological, environmental, legal) framework (see, for example, Brooks et al., 2005, p.7) as a suitable analytical tool for the macro-environment. The report will draw out and highlight the key drivers which are most likely to influence the future development of the industry. The report will then focus on Porters five forces framework, which (Porter, 1980) referred these forces as the micro-environment, which will then be used to establish the competitive intensity and therefore the overall industry profitability. Finally the report will analyse strategic groups and sources of competition within the Shaving Razor industry. 3. PESTEL Analysis of the Shaving Razor Industry The external environment consists of the external environment forces which may influence an aspect of organisational activity. These are defined within six broad-ranging sections with the acronym PESTEL, political, economic, social, technological, environmental and legal. A full PESTEL analysis of the Shaving Razor environment is provided in Table 1, however the report has identified, categorised and prioritised the key issues facing the industry from the macro-environment below. Among the key conclusions of the PESTEL analysis are the following: With consumer purchases increasingly dependant on the often neglected topic of social responsibility, (Shayrn, 2009; Trainer, 2005) suggest that over the coming years, even in todays tough economic times, consumers demand an urgency about making their communities more environmentally friendly, fairer and sustainable. In the future, as environmental issues become increasingly reported in the media, (Kraus, 2005) implies the consumer will not only consider the impact their purchases have, but having a corporate social responsibility will be compulsory to remain competitive. In the Shaving Razor industry, this refers to using environmentally-friendly materials, long-lasting performance, environmentally-friendly packaging, CO2 emissions. See for example, Bics new environmentally friendly shaving razor (BicEcolutions, 2010). As the industry provides an essential product, that the majority of males require on an international basis. It is common for companies in this industry to operate and distribute globally. (Anwar et al, 2009) suggested that each country has individual rules on taxation and custom duties which may distort the companys pricing policies, a contradiction in pricing may cause people to purchase stock in bulk from countries with minimal price and black market the companys products, which would have a negative effect on profitability and brand reputation. The Shaving Razor industry take advantage of around a 4750% mark up according to (Poulter, 2009) who suggests that insiders have revealed that replacement razors blades cost only 5p to make yet are sold for around  £2.50 each. This extortionate mark-up on compatibility costs has caught the attention of the Office of Fair Trading who are currently investigating the issue. (The Office of Fair Trading, 2010) refers to this type of issue under the name compatibility costs, these purchase decisions lock a consumer in with inexpensive original equipment (durables) in order to purchase follow-on products which a substantial profit is made on (consumables). The high value-to-size ratio offered by the Shaving Razor industry has triggered the products offered by Shaving companies to become the worlds most shoplifted product according to (The Telegraph, 2003; BBC News, 2010). Kopalchick and Monk (2005, p.70) proposed this caused several companies in the Shaving Razor industry to take action and incorporate Radio-Frequency Identity (RFID) tags, which automatically tracks the products location when it is removed from the shelf. However, with the technology available today, e.g. GPS systems; it would be possible to track the product from leaving the shelf to its eventual disposal, which has led to ethical disputes regarding personal privacy according to (The Star Phoenix, 2006). There is an ongoing legal battle within in the Shaving Razor industry, examples of this are evident in (New York Times, 2004, p4; Grand Rapid Press, 2003, p11; BBC news, 2006). The series of disputes refer to company slogans, advertising campaigns, design patents regarding razor heads with more blades and trademarks according to (Solley, 2005). Each legal battle has costs both in money, time and to some extent brand reputation. The UK government has ordered an increase in value added tax (VAT) from 17.5% to 20%, this will take place on the 4th January 2011 (HM Revenue Customs, 2011). The increase will trigger an increase in material costs, meaning a higher price needs to be charged to customers in order to maintain the same profit levels per unit. According to (The Guardian, 2010) several companies have already made plans to increase their prices and many companies are waiting to see what action competitors take, while some companies have chosen to absorb the increase. (The Western Mail, 2011) reports that many companies believe that if they absorb the VAT increase, they will attract more customers and be able to compete more effectively in the marketplace. This suggests that Shaving Razor companies who absorb the VAT increase may experience more increased custom than those who choose to pass on the rise in costs to customers. Political Economic Social Technological Environmental Legal Each country has individual rules on taxation and custom duties which may distort the companys pricing policies. Contradiction in pricing may cause people black market the companies products.a The VAT increase from 17.5% to 20% will raise material costs throughout the industry and the UK.b Continued growth trend in industry value ( £523 million), however estimated 3% decrease in 2009.c Recession had minimal effect on spending habits within this industry, few people have spend less on shaving products. However, value of sales has dropped, due to heavy promotional discounting.c Price increase due to high demand in premium disposable shaving systems. d Brand loyalty is high within the industry, however one in ten users experiment with new brands and formats. Quality and performance are the key factors relating to whether the user switches to the new brand or format.c Cultural and religious factors that prevent people from shaving. In addition, the media popularisation of Movember, a fund-raising event to raise money to fight prostate cancer.e Demographic changes e.g. the increasing aging of population, who statistically shave less often.f Changing social attitudes. Rise in male grooming sales suggests men are more conscious with the way they look.g Introduction of high-end products last longer, meaning they have to be replaced less frequently, reducing sales.h High-quality premium product with additional USPs e.g. indicator that tells customers when blades need to be replaced; means a higher price can be charged.i Use of JIT and ICT within industry can reduce wastage and ensure the manufacture is more efficient.h Consumer purchases increasingly dependant on the often neglected topic of social responsibility.j The disposal of the dangerous razor blades is a key issue, previously Blade banks were provided as promotional material. It is a joint responsibility between manufacturer and customer to ensure the dangerous affect to the environment is minimised k Depilatories A Possible Threat to Shaving Systems.l There is an ongoing legal battle within the Shaving Razor industry. The series of disputes refer to company slogans, advertising campaigns, design patents regarding razor heads with more blades and trademarks.m Replacement shaving razor heads have become the worlds most shoplifted product.n Many companies within the industry have incorporated RFID tags into packaging to automatically monitor products from shelf to disposal, however this has led to ethical disputes regarding personal privacy.o Office of fair trading are investigating the high compatibility costs currently charged by companies in the industry., putting the present 4750% mark-up at jeopardy.p Sources: a(Ricciuto, 2001); b(The Guardian, 2010; HM Revenue Customs, 2010); c(Mintel, 2009); d(The Times 100, 2010); e(Mandal, 2003); f(Gale,2008); g(Verdon, 2007); h(Greb, 2009); i(Kruger,1998); j(Shayrn, 2009; Trainer, 2005); k (Kostigen, 2008) l(Global Industry Analysts, 2010); m (Solley, 2005; New York Times, 2004, p.4;BBC news, 2006) n(The Telegraph, 2003); o(The Star Pheonix, 2006); p(Poulter, 2009; The Office of Fair Trading, 2010). 4. 5-Forces Analysis of the Shaving Razor Industry Porters five forces framework can enable companies to analyse key forces that will affect the industry from the micro-environment and determine competitive intensity and consequently the overall industry profitability. According to (Porter, 1980) the five main forces include three from horizontal competition: threat of substitution, threat from established rivals and threat from new entrants. The two remaining forces are from vertical competition: bargaining power of suppliers and bargaining power of customers. The diagram below identifies, categorises and prioritises the key issues facing Gillette in the micro-environment. A more detailed exposition of the competitive intensity and industry profitability follows in the next sections. Diagram 1 Key Drivers facing Gillette in the micro-environment 4.2 Threat Of Substitution The level of threat from substitution depends on several factors, the key factors are; relative quality and price, customers willingness to substitute and the costs involved with switching to a substitute. In Gillettes case the main substitutes would be in the form of electric razors, straight traditional razors, depilatories and the option of not shaving. The threat of substitution from electric razors is minimized as Gillette owners, Proctor Gamble, have an arm in this industry with their successful brand Braun. The (Chain Drug review, 2008) suggests that older men tend to prefer electric razors; however the younger generation would lean towards purchasing wet-shaving products which are offered by Gillette. This could be interpreted that there is a potential reduction of the threat of substitution with electric razors in the future. Another substitute is the traditional straight-edge razor. This type of product operates in a very niche market. According to (Smith, 2010) these types of shavers have been fading in popularity due to their dangerous nature, suggesting the threat from this substitute is minimal. Depilatories are chemical agents used to temporarily remove hair at the skins surface. According to (Tuckington Dover, 2007) depilatories offer a smoother skin surface than shaving, however only 1% of American women use such products. It is also suggested that this is due to the fact depilatories are expensive, slow and irritating to the skin. The alternative substitute of not shaving is often combated by the industrys clever marketing techniques, which often suggest it is not socially acceptable not to shave. (Cavallaro, 2008) suggested methods and techniques in which are most effective to market products to men; these methods are used by many companies to advertise effectively. (Birchall, 2009, p.9) suggested Gillettes recent advertising campaigns were framed as an affirmation of body shaving as masculine. The messages portrayed through these advertising campaigns are manipulated to benefit the company, and draw customers away from purchasing substitutes. 4.3 Threat From Established Rivals The intensity of the rivalry from established competition is reliant on; the structure of competition, industry costs, degree of differentiation, switching costs, strategic objectives and exit barriers. The industry Gillette operates in is already unattractive; it contains many powerful and aggressive competitors who have high stakes in staying in the segment, due to high exit barriers. These conditions lead to frequent price wars, advertising disputes, and new, innovative product introductions, making it expensive for Gillette to maintain a high market share. The threat from established rivals is limited by the strong image and brand loyalty Gillette maintains. In addition, Gillettes innovative research and development department keeps the industry thriving by generating differentiation and technological advances. Their success has caused established rivals to borrow from their $1 billion research and development efforts (McCullough, 2003). 4.4 Threat From New Entrants The level of threat from new entrants to the Shaving Razor industry is established by; economies of scale, investment requirements, customer switching costs, access to industry distribution channels, access to technology, brand loyalty, chances of retaliation from existing industry members, government regulations. In the Shaving Razor industry, (Mintel, 2009) suggested there are high levels of brand loyalty present. This makes the industry very unattractive for new entrants, as they would be directly pitting against several major competitors in an oligopoly. Gillette minimises the threat from new entrants by efficient usage of economies of scale advantages, access to the industrys distribution channels and access to technology enhancements. Another key factor affecting the threat from new entrants is the risk of retaliation by Gillette, which could be substantial and could include mergers or acquisitions, an example of this is when Proctor Gamble acquired Gillette for  £30.2bn (BBC News, 2005). Entry to the Shaving Razor industry also involves high set-up costs and exit barriers are also high, reducing the probability of successfully securing finance from external sources, increasing the difficultly for new entrants for this industry. 4.5 Bargaining Power of Suppliers The negotiating power from supplies it determined by; concentration of suppliers, supplier branding, profitability of suppliers, threat of suppliers forward integrating into industry, buyers threat of backward integration into supply, buyers level of importance to suppliers profitability, switching supplier costs. As Gillette manufactures its own products, there is minimal effect from this source. Gillette maintains a win-win relationship with its suppliers of raw-materials as they can be obtained from anywhere and little supplier switching costs would be incurred. (Evans, 2008) suggested that Gillette identifies suppliers with a proven ability to meet its specifications. Once a supplier is selected to participate, Gillette expects them to produce a pre-production planning system to assess the suppliers capability to deliver Gillettes specifications. This high level of capability Gillette demands from its raw-materials supplier shows that he supplier has little power in the business relationship and there is minimal threat. In addition, as a large global brand it can establish a powerful supply-chain management model and global competitiveness enables suppliers prices to be driven low. 4.6 Bargaining Power of Customers The level of bargaining power from customers relies on; the concentration of competition, differentiation and unique selling points, profitability of companies, threat of backward or forward integration into the industry, cost of customers switching to competitor. Buyers in the Shaving Razor industry possess strong and growing bargaining power. With Wal-Mart as the main retailer for Gillettes products, the conclusion drawn could be that the potential profitability can become shortened as Gillette has a high reliance on Wal-Mart and similar large retailers for a large proportion of revenue. (DePamphilis, 2010) outlined suppliers such as Gillette have been under considerable pressure from retailers, due to the on-going growth of Wal-Mart and industry mergers, for example Sears and Kmart. DePamphilis then goes on to suggest Wal-Mart is responsible for 13% of Gillette income is 2005, suggesting a high-reliance on the retailer for profitability, increasing the threat of bargaining from customers. The buyers power increased due to the fact Shaving Razors represents a significant fraction of the retailers costs and the products are undifferentiated. In addition, the buyers in this industry are price sensitive. (Chopra et al, 2010) outline that Gillet tes pricing power is being further eroded by channel migration and increasing consumer resistance to paying significantly higher prices for innovation. 5. Strategic Groups in the Shaving Razor industry A key concept used in strategic management practice, (Hunt, 1972) defined  strategic groups  as grouping companies within an industry that have similar interests, business models or similar combinations of strategies. Gillette faces intense competition in most markets, its products compete with highly marketed, well-known, branded products. The Gillettes performance in this industry depends on the brands ability to adapt itself within this kind of competitive environment. Price-Quality Segment Name Of Parent Co. (Brand market share for Gel 7 oz$/Unitsin parenthesis) PG (Gillette)  [1]   PG (other brands) S.C. Johnson Johnson Johnson Beiersdorf AG Perio Super-premium Neutrogena Razor Defense Gel  [2]   (2.5/1.5%) Premium Gillette Fusion Hydra Gel (14.3/11.5%) Aveeno Gel  [3]   (10/6.7%) Mid-price Gillette Mach 3 Gel (4.5/4.4%) Gillette Series Gel (20/22.9%) Edge Gel (34/35.9%) Nivea Gel (6.5/6.2%) Economy Noxzema  [4]  Gel (1.9/2.7%) Old Spice  [5]  Gel (0.5/0.7%) Barbasol Gel (0.4/0.6%) Gillette, Bic, Shick-Wilkinson Sword King of shaves Conclusion Opportunities and Threats References Porter, M. (1980) Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press. Greb, E. (2009) Is JIT Manufacturing the Right Prescription? Pharmaceutical Technology, 33 (3) pp. 72-78 ProQuest [Online]. Available at: http://proquest.umi.com/pqdlink?did=1685062121Fmt=7clientId=29645RQT=309VName=PQD (Accessed: 1 Decmeber 2010). Turkington, C., Dover,J. (2007) The Encyclopedia of skin and skin disorders. 3rd Edn. New York: Infobase Publishing. Kruger, R (1998) Razor sharp Discount Merchandiser, 38 (1) pp. 69-70 EBSCOhost [Online] Available at: http://search.ebscohost.com/login.aspx?direct=truedb=buhAN=133744site=ehost-livescope=site (Accessed 1 December 2010). Kopalchick, J., Monk, C. (2005) A study of RFID Risk: Gillette Co. Internal Auditor. 62 (2) pp. 70 EBSCOhost [Online] Available at: http://search.ebscohost.com/login.aspx?direct=truedb=buhAN=16640867site=ehost-livescope=site (Accessed 1 December 2010) The New York Times (2004) Schick sues Gillette over razor technology patents, 17 June, p.4 Verdon,J. (2007) The new face of shaving: Men paying more for good skin care, The Star Phoenix, 14 July, p.11. The Star Phoenix (2006) RFID technology threatens privacy, 5 June, p.6. Mandal, V (2003) Sikhs outraged by hair-cutting, CanWest News Service, 11 July, p.5. Alden, S. 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Hobbs :: essays research papers

Hobbes gives us his estimation of the nature of mankind by initially showing that all men are generally equal. The strongest man can be beaten by the weakest, if the weaker man uses some other force. When it comes to intelligence Hobbes claims men are even more equal, since all men are of equal experience, which is the only way to gain wisdom. Once Hobbes shows that all men are equals he goes on to explain their interactions. These interactions lead to a war of every man verses every man. If two men want something of which there is only one then this leads to each trying to destroy the other. Competition also rises when men want what others have. Men join forces in order to bring down a man who possesses more than they want him to. War also rises from diffidence, according to Hobbes. Men must always be on guard, because they cannot trust others not to attack them. This causes men to go out and conquer others, since one cannot survive if always on the defensive. Hobbes has one more reason for the state of war: glory. Men want others to look up at them with respect. In order to gain such a reputation, a man will try to conquer others to gain their respect and by example the respect of others. So Hobbes concludes that there are 3 basic causes for war: competition, diffidence, and glory. This all leads to a state of war, all versus all. The state of nature is constantly at war, which Hobbes claims is not merely battle, but even the threat of battle. This constant state of war leads to no form of industry or culture, since every man lives in fear of all others. Hobbes’s gives an example of this fear by pointing out that even today we lock our doors, because we do not trust our fellow man. He also shows how many savage tribes have been observed in this state of constant war, when no sovereign rules. Hobbes’s goes on to claim that even now men slip into this state of civil war between each other. Kings are constantly fighting over land and are always on guard against enemies. Hobbes’s says that there is no justice or injustice in this original state of nature, because there are no laws or sovereign to enforce them.