Friday, April 17, 2020
Integration of Nation States
There is an ongoing debate among political scientists about the current and future trends in international relations. The key question is whether the world of nation states becomes more centralized and interdependent or it grows more fragmented and nation states tend to be more separated from one another.Advertising We will write a custom essay sample on Integration of Nation States specifically for you for only $16.05 $11/page Learn More This paper will defend the argument that international politics is more inclined toward unity rather than fragmentation and that despite numerous conflicts and disagreements, nation states try to find some common denominators in their relations with one another. To some extent this argument supports the theory of political liberalism which postulates that the policies of a state are inevitably affected by the interests of other players (Griffiths, Oââ¬â¢Callaghan Roach, 2008). This trend can be explained by differen t economic, social, and technological factors. Finally, we need to say that international players have already understood that partnership is more conducive to the solution of common problems, faced by different countries. It is possible to draw several examples supporting this point of view. One of them is the large number of political alliances that emerged in the course of the twentieth century. One should speak primarily about the United Nations Organizations, the North Atlantic Treaty Organizations, the European Union, the Union of South American Nations and so forth. These alliances include practically every country of the world. Nowadays, they are taken for granted, while in the nineteenth century they were non-existent. This contrast indicates that contemporary international politics is more oriented toward centralization and unity. The key issue is that a country which wants to be a member of these alliances, has to comply with certain rules and regulations. Thus, the right s of nation states are no longer unlimited. Furthermore, one should not focus only on historical comparison. It is also possible to refer to the current events which also demonstrate that modern world is becoming more centralized. One of the most eloquent examples is the recent nuclear disarmament agreement commonly known as New START (Strategic Arms Reduction) treaty reached by the United States and Russia. According to it both sides will have to reduce the number of nuclear warheads. Political and economic interests of these countries may contradict one another but mutual willingness to promote global security forced them into this agreement. In this case, the centralization or unification of states appears to be a natural process since it will allow both countries to promote security and reduce expenses on the maintenance of nuclear weapon.Advertising Looking for essay on government? Let's see if we can help you! Get your first paper with 15% OFF Learn More We need to mention that the very concept of nation state is being transformed. Before the World War II, the state was regarded as a primary and unitary actor within the territory of a country; in other words, the state could do virtually everything with the citizens without having to ask for the permission of other international players. The most horrible examples of such power of a nation state are Holocaust, Rwanda Genocide, Darfur, and so forth. In each of these cases, the legitimate government of the country attempted to exterminate a certain ethnic group of people, and there was no international law that allowed other countries to intervene. The World War II changed the status quo, and one of the outcomes was the adoption of UDHR (Universal of Declaration of Human Rights) in 1948. Yet, we should also discuss the recent developments in this area. In 2005 the members of UNO signed an agreement according to which UNO has right and obligation to intervene into a nation state if there is a threat of genocide (UNO, 2005, p 1). Of course, this is just a preliminary step but it shows that a nation state is not the only decision-maker as it was before. Overall, this evidence supports the argument, advanced by the supporters of liberalism theory: international politics is gradually becoming more integrated and centralized. The key point that we can make is that modern nation states are trying to establish certain common values, inherent to any society, for instance, the right for privacy, free speech, freedom of expression. On the basis of these values, they develop their foreign policies. Furthermore, one should unity of nation states is economic relations between nations. We can mention the World Trade Organization, North American Free Trade Agreement, Mercosur or Southern Common Market. Again, none of these unions existed before 1957. This is why one can argue that nation states are more inclined to cooperate rather than act separately. To some degree, these trade agree ments show how national borders can be erased. Free movement of labor, capital, and technology is no longer hindered by the intervention of local governments. Certainly, no one can deny the fact that there are some limitations like quotas on imported goods, but they are no longer insurmountable. It should be pointed out that the policies of protections aimed at shielding domestic manufacturers, are being abolished by the governments of many countries. Currently, it is much easier for international companies to enter the markets of foreign countries. By looking at such countries as India, China, or Russia, one can see that separate nation states are no longer separated from one another. It seems that economic considerations are the underlying cause for the centralization trends in international politics.Advertising We will write a custom essay sample on Integration of Nation States specifically for you for only $16.05 $11/page Learn More Another example of such integration is the attempts of different countries to cope with environmental problems. We can mention the Kyoto Protocol which was ratified by the governments of many countries. It forces the countries to reduce the amount of greenhouse gas emissions. Again, it is quite possible to argue that nation states have to take the opinion of other international players into account, and this tendency can be viewed as movement toward unity. Thus, if we look at this problem from historical or modern day perspective, one can see that the world of nation states is growing more integrated and centralized. This trend manifests itself in different aspects: trade relations, human rights protection, movement of labor force and capital, environment protection and so forth. There are several rational behind this tendency. One of them is that it is much easier to struggle with common problems like economic crises, local military conflicts, security threats, environment pollution, etc. Apart fr om that, the examples that we have discussed, indicate that separate nation states have consider the interests of their players in order to maximize benefits. Contemporary international politics strongly resembles a cooperative game in which players join their efforts rather than compete with each other. Certainly, we cannot say that the interests of different countries are in complete harmony, but the governments of different countries have already realized that cooperation in international politics can be much more fruitful than competition. Reference List Griffiths M. Oââ¬â¢Callaghan T. Roach Steven. 2008. International relations: the keyà concepts. NY: Taylor Francis. US. Department of State. (2011). New Start. Accessed from https://www.state.gov/new-start/ United Nations Organization. (2005). World Summit Outcome. Web.Advertising Looking for essay on government? Let's see if we can help you! Get your first paper with 15% OFF Learn More This essay on Integration of Nation States was written and submitted by user Malachi D. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.
Friday, March 13, 2020
Tesco Essays
Tesco Essays Tesco Essay Tesco Essay Executive Summary Starting from a small stall in the east end of London, Tesco today is the largest retailer in the UK with over ? 59 billion sales in 2008. In this dynamic environment, Tesco has managed to stay ahead of its competition through focus on people, both customers and employees. However, in todayââ¬â¢s rapidly changing globalised environment, anything could happen. Companies today need to always innovate and reinvent themselves in order to maintain their competitive advantage. The macro environment that Tesco operates in provides both opportunities and threats. Therefore, for sustainable growth and development, Tesco needs to have proper strategic direction that addresses these macro environmental challenges. Though the company has extensive operations worldwide, Tescoââ¬â¢s largest market is still the UK. This report analyses the macro environment that Tesco UK operates in using the PESTEL framework and its interconnectedness to external opportunities and threats. Competitiveness of Tesco UK is analyzed by applying Michael Porterââ¬â¢s five forces model. The paper is further expanded by linking both the PESTEL framework and the 5 forces to understand Tescoââ¬â¢s dynamic macro environment. A stakeholder analysis is carried out in order to understand the expectation of Tescoââ¬â¢s stakeholders. Strategic capabilities of Tesco are explained through the identification of core competencies of the firm. Justification of these competencies explains how Tesco manages to stay ahead of its competitors. Table of Contents 1. Introduction to Tesco Plc6 1. 1. Tesco UK7 2. The Macro Environment Analysis8 2. Political Factors8 2. 2Economical Factors8 2. 3Social/Cultural Factors8 2. 4Technological Factors8 2. 5Environmental Factors8 2. 6Legislative Factor8 2. 7Overall impact of the PESTEL factors8 2. 8Potential opportunities from the external environment8 2. 9Threats from the external environment8 3. Competitive Analysis on Tesco Using Porterââ¬â¢s Five Forces Model8 3. 1. Threat of New Entries8 3. 2. Competitive Rivalry8 3. 3. Substitutes8 3. 4. The Power of Supplier8 3. 5. The Power of Buyer8 3. 6. Summary of the 5 Forces Model8 4. Stakeholder analysis8 . Core Competences8 5. 1Value8 5. 2. Rarity8 5. 3. Inimitability8 1. 4. Non-substitutability8 6. Conclusion8 7. References8 Introduction to Tesco Plc Founded in 1919 by Jack Cohen, Tesco Plc is the largest British based international grocery and general merchandising retail chain, and is the worldââ¬â¢s third largest retailer, after Wal-Mart of the US and Franceââ¬â¢s Carrefour. The Tesco brand first appeared in 1924. The first store was opened in 1929 in London. Tesco floated on the London Stock Exchange in 1947 with a share price of 25p. During the 1950s and the 1960s Tesco grew organically, and through acquisitions. Most of this early growth was in and around London. The ââ¬Å"pile it high, sell it cheapâ⬠strategy of Cohen had left the company ââ¬Å"stagnateâ⬠which resulted in his resignation in 1973. In 1977, Tesco launched ââ¬Å"operation checkoutâ⬠which included price reductions and centralized buying for all stores. The result was a rise in market share of 4% in two months. Today, the company operates over 3000 stores in several countries including the U. S ad Japan with over 440,000 employees. Tesco has diversified their business into other areas such as clothing, consumer electronics, financial services, telecommunication, insurance schemes etc. With their core purpose of ââ¬Å"create value for customers to earn their lifetime loyaltyâ⬠, the company has been able to build a multibillion-dollar empire. Operating income for 2008 was ? 3. 12billion. (The Guardian 2009). The ability to appeal to all market segments through their own brand products with up market and low price value range has been a key element of their success. The two key values of Tesco are 1. No-one tries harder for customer, and 2. Treat people as we like to be treated With their ââ¬Å"Every little helpsâ⬠strategy, they regularly ask their customers and staff ââ¬Å"what we can do to make shopping with us and working with us that little bit betterâ⬠(Tesco. com) 4 Tesco UK Tesco UK is the first and largest operations under Tesco PLC. Tesco UK contributes approximately 70% to the groupââ¬â¢s sales and profit. Its business is significant in the UK, with over 285,000 employees and over 2,200 stores. UK businessââ¬â¢s growth comes from new space, extensions to existing stores and a multi-format approach. The overall growth in UK was contributed by the sales of non-food, which forms another key part of Tesco strategy. Tesco customized their store formats to satisfy customers needs. It has more than 1960 Express stores offering a range of approximately 7000 quality, great value, and fresh food close to where customers live and work. Tesco opened its first Metro in 1992 catering to the needs of busy customers, bringing Tesco nearer to customer in town and city centre locations. The superstores which began in the 1970s is an ongoing program of extending and refreshing their superstores to improve the overall experience for customers, including introduction of new non-food ranges such as DVDs and books. Since 1977 the one-stop Extra destination store has proved extremely popular and Tesco now have more than 175 Extra stores offering the widest range of food and non-food lines. The 10 Homeplus stores (approx 35000 to 50000 sq ft) are dedicated to non-food, including clothing, with more available through Tesco Direct order and collection points. In addition to array of formats, Tesco continually innovate and invest in new lines to increase choice for their customers, such as, lifestyle ranges like organic, healthy living. Various own brand also enable customers to purchase product to compliment their lifestyle. Value-adding service, such as Tesco nutritional signpost labeling targets to provide customers with the key information they need to help them choose a balanced diet. Tesco innovatively counteract the recession challenge by launching around 500 new ââ¬Ëdiscount brandsââ¬â¢ products because customers were shopping around for best prices without compromising on quality. The Macro Environment Analysis The Macro environment gives organizations their means of survival as well a source of threat. Understanding the strategic position is concerned with identifying the impact on strategy of the external environment, an organizations strategic capability and the expectations and influences of stakeholders. Organizations exist in the context of a complex political, economic, social, technological, environmental and legal world. The PESTEL framework will be used on Tesco UK to identify how future trends in these environments might impinge on the organization. This analysis aims to provide the broad data from which to identify key drivers of change and understand the interconnectedness of the macro environment. (Johnson, Scholes, Whittingon, 2008). 1. 2. 6 Political Factors Even though, this paper is concerned with the Strategic perspective of Tesco UK, it is important to consider the global political scenario considering Tescoââ¬â¢s scope of operations. The company has over 3000 stores in 13 different markets outside the UK including Europe, North America and Asia. Tesco therefore, is greatly influenced by political and legislative circumstances among these countries as well as European Union (EU). ââ¬ËAs Tesco grows ever bigger in more countries, it has inevitably faced criticism from consumer activists and environmental groups and also regulators. Brussels recently referred Tescos acquisition of three stores in Slovakia to domestic regulators, claiming the deal could potentially reduce competition in certain areas. ââ¬â¢ (BBC 2006) Another important aspect to consider is the policies and regulations governing monopolies and dominant market shares within the EU. Even though, Tesco is yet to be recognized this way, it is an important factor to note considering itââ¬â¢s scope of operations. In the UK, planning permission is an important political factor. There have been several cases where Tescoââ¬â¢s request to build new stores in the UK have been denied by the Town councils due to oppositions by the public. Therefore, careful analysis of the political factors when opening stores in UK is critical. 7 Economical Factors Considering that Tesco is UKââ¬â¢s largest private sector employer, economic factors such as unemployment rates and purchasing power are important factors to take note of. The recessional period that the world has been experiencing has had quite an impact on western countries such as the US and UK with high job lay offââ¬â¢s etc. Unemployment rate in the UK has increased by 2% when compared with 2008. (National Statistics UK 2009). Unemployment rates affect Tesco in two ways. One is that it reduces demand for products and can affect Tescoââ¬â¢s sales. However, average earnings including bonuses rose by 1. 2 per cent in the year to September 2009 which is an indicator that the UK economy is picking up. The other issue is that with Tesco being the leading private sector employer, it will be under severe pressure on job lay offââ¬â¢s. Tescoââ¬â¢s strategy of catering to many segments of the market has been able to keep them afloat in the rise of the economic recession. According to the research firm TNS WorldPanel, The UK number one, who has reaped the benefit of its double Clubcard points promotion, took 30. 7% of the grocery market in the 12 weeks to 1 November 2009. (Press Association 2009) The recessional period is slowly picking up with UKââ¬â¢s retail sales showing an increase of 2. % as of September 2009 when compared with the previous year which indicates a positive outlook for Tesco. (National Statistics UK 2009). 8 Social/Cultural Factors UK has a population of 61. 4 million and considered an ageing population with a relatively equal split between male and females with 62% representing the workforce. The proportion of people aged 65 and over is projected to increas e from 16 per cent in 2008 to 23 per cent by 2033. (Statistics online). Therefore, Tesco will have to consider this an important aspect of future strategic direction. The increase in employment among older people and females have created a demand for value added products and convenience goods and meals The need for bulk purchasing and one stop shopping has prompted Tesco to have more non food items available for sale. However in recent times, there seems to be a decrease in this trend as more and more people are pinching their pennies in times of recession and reducing the use of such convenience products. While money is tight, women will feel obliged to forgo the price premiums they have been paying for this kind of help and take on the labour themselves. Euromonitor 2009). Therefore moving into house brands with different market segmentation and the focus on own label share of the business mix and supply chain which reduces cost as Tesco has done is an important element of their corporate strategy. According to Eurominitor international, Value rather than cheapness will now count when consumers have to choose between brands when making purchasin g decisions in the year ahead. Hence consumers will reward brands focusing on quality with loyalty. (Euromonitor 2009) Tescoââ¬â¢s focus on retaining customers is evidence to this trend. Another important socio cultural aspect to consider is the migration of eastern Europeans and Asians to the UK. There is a large community of Indians living in the UK. Tesco needs to ensure that they are able to cater to this segment with product differentiation. Consumers in UK are also being more health conscious and therefore increased their use of organic products. Also offering products which has been manufactured in an ethical and socially responsible way is also becoming increasingly important in the UK consumers mind. 9 Technological Factors Technology is an important macro environmental factor that affect any organization. Tesco has been successful at exploiting the widespread phenomena of internet purchasing. Their comprehensive website and online catalogue with easy checking out options have boosted their sales. To retain their competitive advantage it is important for Tesco to always reinvent and re-innovate and to be abreast of the rapid technological changes. Adoption of technologies such as intelligent scales, electronic shelf labeling, self checkout and RFID as helped the company to maintain its competitive advantage. In order to make maximum use of strategic capabilities, Tesco UK has transferred their IT support structure to Bangalore India. 10 Environmental Factors Today, environmental issues play a key role in business. Matters such as global warming and pollution have pressured companies into being more socially responsible towards the environment they operate in. Tesco has been instrumental in supporting carbon reduction and has created a a ? 100 million Sustainable Technology Fund for this purpose. In order to be carbon free, Tesco is revamping their own stores and building new low carbon stores. Their target is to halve carbon emission totally by 50% by the year 2020. Tesco is also encouraging their customers to go green by introducing a new ââ¬ËGreener Livingââ¬â¢ brand. The range comprises 200 products as diverse as energy-saving light bulbs, paper goods and kitchenware TESCOââ¬â¢s corporate social responsibility exceeds the minimum expectation levels set by the industry. 11 Legislative Factor In 2000, the government introduced legislation that allowed schemes, set up in line with the regulations, to offer employees savings on tax and national insurance contributions when buying and selling shares in the employing company. Tesco has used this legal framework to provide comprehensive share schemes and has had considerable success in retaining their employees as shareholders and potentially reaping the benefits from their increased commitment to the company. (Eurofound 2008) The UKs Competition Commission is to introduce a code of practice for supermarkets in a bid to ensure the fair treatment of suppliers and address issues hindering competition in the market. The commission believed that this food control the buying power of certain supermarkets. (Justfood. com 2009). This affects both Tesco and the industry in general; in terms of higher cost. 12 Overall impact of the PESTEL factors Identifying the PESTEL factors for Tesco, has given insight to the environment they operate in and the interconnectedness of these factors. Identifying these factors are important in creating future strategic direction and growth. The political impact of the EU and the UK is an important factor for this British Retail giant in terms of market growth and monopoly. The present economic crisis has increased unemployment levels which is a negative indication. However recent reports on increased sales and changes in socio cultural patterns are an indication for new prospects for Tesco. 13 Potential opportunities from the external environment The recovery of the economic situation means that there will be increased market potential and increased spending power. This is already in evidence by the increase in sales of Tesco UK in September 2009. The demand for non-food retail items is increasing and is in favour of Tesco. Their health and beauty products are top of the range and there is further potential to grow. The increasing population of Asians and Eastern Europeans is also an opportunity for Tesco to explore this particular market segment. Increased focus on ââ¬Ëgoing greenââ¬â¢ is beneficial to the company considering their many steps towards this process both in terms of influencing the consumer and improving the processes within the company. The increased use of online purchasing means the reduction of related costs and processes could be more efficient. This would also enable Tesco to provide other services such as banking, delivery etc. 14 Threats from the external environment Consumer behavior patterns are slowly changing towards organic and ethically produced goods. This creates both opportunity as mentioned above as well as threat. More and more research and capital will need to be allocated to sourcing these products. The company has made substantial investments in energy saving projects around the business. The price war between the supermarkets is another cause for concern which will be later discussed under competition. The possibility of increased regulation in terms of pricing is a threat to Tesco and other supermarkets in the industry. Competitive Analysis on Tesco Using Porterââ¬â¢s Five Forces Model Porterââ¬â¢s five forces framework were developed to determine the competitive intensity and market attractiveness of an industry. (Porter, 2001) Market attractiveness refers to whether a company will have the profit potential in an industry. Porterââ¬â¢s five forces structure (as shown below) constitutes of the threat of new entrants, the threat of substitute, the power of suppliers, the power of buyer and competitive rivalry. [pic] 16 Threat of New Entries According to Johnson, Scholes and Whittington (2008), threat of entry depends on the extent and height of barriers to entry such as economic of scales and experience, access to supply or distribution channels, legislation or government action and differentiation. The combination on two factors: Tesco, having 85 years of retail experience since the ââ¬Å"TESCOâ⬠brand name started and with the existance of the incumbent retail giants (i. e. Asda, Sainsbury, Mark Spencer) make it difficult for new entrant to penetrate into the UK retailing market. Potential entrants will find that barriers are imposed on them, either explicitly or implicitly, by the conglomerate incumbents. (Tesco Porters Five Force Model , 2008) Tesco, as the largest retailer in UK has control over supply and distribution through customer or supplier loyalty. They have the established loyalty program such as offering loyalty card, point card, advantage card or club card to attract and retain the customers. Besides that, Tesco has direct ownership (vertical integration) for some of the products that they are selling with the brand ââ¬Å"Tescoâ⬠. The new entrants will find it challenging to find the new supply and distribution channel as the more common ones had been cornered by Tesco and other giant retailers in UK, who have the advantage of economies of scale. While the new entrants find it easy to enter into UK market, they may face many challenges in the operating environment. Therefore, it can be said that Tesco has a considerately low threat of new entrants in UK. 17 Competitive Rivalry Competitive rivalry refers to the direct competition between organizations that sell the similar products aimed at the same customer group. Johnson, Scholes, Whittington, 2008) Tesco has many direct competitors who do the same business as them, namely the Asda Group Limited, Carrefour S. A, J Sainsbury PLC, Marks and Spencer Group PLC, The Big Food Group PLC and etc. As the number of competitors increases and become roughly equal size, the rivalry become intensified and competitors attempt to gain dominance over others. Though Tesco is presently the largest retailer in UK, many other upcoming retailers mentioned above are trying to gain more market share by dominating the market. Rivalry is also stronger when demand for the product is growing slowly. (Tesco Porters Five Force Model , 2008) With the rivalry intensity, each competitor is tempted to use price cuts to boost unit volume and hence create price war between rivals. Besides that, Tescoââ¬â¢s business and products are also weakly differentiated that customers do not require any cost switching from one retailer to another. The intensity of rivalry in the retailing industry where Tesco belongs to is great. Therefore the threat of competitive rivalry is high for Tesco. 18 Substitutes The accessibility and availability of acceptable substitutes for products that Tesco offers are easy and abundant. For example, Sainsbury can match the low prices that Tesco offers in the market and even equal the quality of products they offer, making the substitute force high in the retailing industry. (Tesco Porters Five Force Model , 2008) This drives Tesco to upgrade the product quality, reduce prices and differentiate their products from its substitute in order not to be affected by the threat. The upcoming trend of online shopping and free delivery also pose a substitute threat for the conventional shopping. Busy working adults can order their groceries or anything they need with just clicks on the PC. E-bay for instance, can offer a wide range of products from all over the world to its customers. However, Tesco had anticipated this new trend and has an online shopping website to cater the needs of this group of people. Hence, Tesco faces low threat on substitutes looking at the fact that Tesco affords to go on the price war since they are the biggest retailer in UK and most of the people still would want to go on the conventional way of shopping. 9 The Power of Supplier The factors increasing supplier power are the converse to those for buyer power and the supplier power is likely to be high where there are concentrated suppliers, high switching cost and supplier competition threat. (Johnson, Scholes, Whittington, 2008) However, this is not the case for Tesco who has the power over the suppliers. Suppliers are clamoring attention from giants like Tesco to buy their products. Suppliers understand that the purchasing volume from Tesco will be enormous if they clinch on any deal with them. With this, giant retailers have the overwhelming advantage to dictate the price and if the suppliers do not give in to the price that they are willing to pay, the suppliers are left only with the small supermarket chains that do not give them huge orders. Besides that, suppliers will have to maintain good services and prices with Tesco to sustain the order. This is due to the fact that switching cost from one supplier to another is low and therefore creating stiff competition among suppliers. With the above explanation, it is clear that Tesco faces low threat from the suppliers as they has much more negotiating power than any others would have. 20 The Power of Buyer Customers are essential for the survival of any business and buyers will normally have strong position when there are only a few concentrated buyers who buy in bulk and low switching cost from one supplier to another is low. (Johnson, Scholes, Whittington, 2008) In the retailing business, the number of customers is very large and they do not purchase in bulk. Therefore, the buyerââ¬â¢s power is not that strong. However, the switching cost for a buyer is virtually none. Buyers have the freedom to choose supermarket that can offer good prices since the things that all supermarket sells are almost the same. Fortunately for Tesco that all competitors have a disciplined approach in price setting, partly due to the government regulations. (Tesco Porters Five Force Model , 2008)The prices may differ, but it would not be a huge difference. Therefore, it will be more economical for customers to buy all the things they need in one place, rather than hopping around for the retailer that sells the cheapest in certain items. With the mentioned reason, it can be said that the threat of buyer is relatively low. 1 Summary of the 5 Forces Model |Porterââ¬â¢s Five Forces |Level | | |High |Low | |Threat of New Entries | |v | |Competitive Rivalry |^ | | |Substitute | |v | |The Power of Buyer | |v | |The Power of Supplier | |v | From the above analysis, Tesco clearly has a strong position in the retail industry in UK. The business is attractive to Tesco in UK and Tesco is enjoying the profit from the business. The only high threat that Tesco faces is the threat of competitive rivalry from the rivals. The following statistic shows the market share of the closest rivals that Tesco has. Supermarket in UK |Market Share | |Tesco |30. 6% | |ASDA |16. 6% | |Sainsburys |16. 3% | |Morrisons |11. % | |Somerfield |5. 4% | |Waitrose |3. 7% | |Iceland |1. 8% | (Source TNS cited by BBC 2006) Though Tesco has the largest market share, other retailers are coming up quickly. Tesco must keep an eye on these rivals so that the threat of substitute will not become high over time. Besides that, the easy entrants to UK also increase the rivalry for Tesco. It is good that Tesco is already well established in UK and the new entrants will require time to build up their experience and network to compete with Tesco. The rivalry forces can also affect the power of buyer. For example, if ASDA does some promotion that can attract the customer, Tesco will lose some of the market share to their rivals. Therefore, it is clear that Porterââ¬â¢s five forces are inter-related to each other and Tesco must always be alert to any of the forces. The macro environment give an impression of the political, economic, sociological, technological, legal and environmental factors that influence Porterââ¬â¢s five forces. The government regulation on the price setting actually had help Tesco to manage the threat of rivalry and substitute. UK is also getting more open in their economy, hence, Tesco is able to source from the cheaper suppliers from other countries and lower the threat from local suppliers. The buyers are now consisting of diversified people and Tesco must take into consideration of the new goods that can be sold to this group of people. This is one of the tactics to reduce threat from buyer and rivalry from other retailers who had catered into this new need. In addition to that, Tesco can make use of the latest information technology to sell their products online to avoid the substitute threat from retailers who do online business. Stakeholder analysis ââ¬ËStakeholders are people or groups with a legitimate interest in a company. Since stakeholders are interested in and affected by the organizationââ¬â¢s action, they have a ââ¬Ëstakeââ¬â¢ in what those actions areââ¬â¢ (Williams, C. 2000). Therefore it is important to understand the role stakeholders play in terms of Tesco as a business. Applying the concept of stakeholder mapping provides better understanding to the influence of stakeholders on corporate strategy. This can help to identify potential risk, establish the political background to the area, seek to influence the decision-makers, and provide intelligence about competitors, key themes and area of potential risk. The availability of the source of power determines the extent of power that can be exerted by both internal and external stakeholder group, this includes key position in the hierarchy or the decision-making process e. g. key managers, key role in strategy implementation or important shareholders; control of strategic resources and possession of know-how, or information. At Tesco, a big part of that is listening to the people around them, and making sure they act on their concern. Engagement helps Tesco identify new risks and opportunities to ensure that long-term strategy is sustainable. In some instances working with stakeholders in partnership can help deliver shared goals. Tesco acknowledge that customers need to be able to trust their business and customers will only trust them if they do the right thing by all their stakeholders Key players: Tesco core value defines ââ¬Å"peopleâ⬠as a critical success factor. People includes customer, employees. Customer question time meeting are invaluable to Tesco. Staff hears customersââ¬â¢ views on everything from how they are being served in their stores to Tescoââ¬â¢s role in the community. Employee gives feedback through viewpoint staff survey, staff question time sessions and staff forum process. Tesco core value is ââ¬Å"treat people how we like to be treatedâ⬠. And its something Tesco applies firmly to their supplier relationships. Tesco loyalty card scheme ââ¬â ââ¬Å"Clubcardâ⬠enables Tesco to better understand their customers and show appreciation to customer for shopping with them. Tesco creative marketing created more than eight million unique coupon variations of Clubcard mailing, to ensure that each Clubcard member receives the kind of offer that is appropriate for them. (Tesco, 2009) Tesco employs more than 285,000 employees in the UK, besides market-leading package of pay and its employees are entitled to fringe benefits such as childcare vouchers and share schemes. (Tesco. com) Tesco shareholders are also key player, the investor relations team regularly meets analysts from the financial institutions which invest in them or represent Tesco shareholders. Keep Satisfied Non-Government Organization (NGO) have less power but bear high interest on the organization, regular meetings with NGO to understand and respond to issues of concern will keep this group satisfied as getting their ââ¬Ëendorsementââ¬â¢ is critical to the success of a strategy. Keep Informed Rival retail chain and trade magazine also have influencing power to their corporate strategy, therefore need to take them into account. Minimal Effort This group exerts low power and low interest. Core Competences Core competences are defined as the ââ¬Å"skills and abilities by which resources are deployed through an organizationââ¬â¢s activities and processes such as to achieve competitive advantage in ways that others cannot imitate or obtainâ⬠. (Johnson, Scholes, Whittington, 2008, p. 97) Tescoââ¬â¢s core competence is to create value for customers to earn their lifetime loyalty. Its success depends on people, the people who shop and work with Tesco. If the customers like what Tesco offer, they are more likely to come back and shop again. And if the Tesco team finds what Tesco do rewarding; they are more likely to go that extra mile to help the customers. To achieve and sustain the competitive advantage, Tesco own its strategic capabilities which are valuable to customers, rare, inimitable and non-substitutable. Value No-one tries harder for customers like Tesco does. Tesco regularly ask the customers how to make shopping in Tesco better. Tesco creates value by listening to what the customers have told them, understand and be the first to meet their needs. Therefore, Tesco has created the ââ¬Å"Every Little Helpsâ⬠strategy which to ensure the aisles are clear, the customers can get what they want with a good price, customers need not to queue and the staff are helpful and great. With the aim of become the ââ¬Å"best value retailerâ⬠and customer deserve best value for money, Tesco had worked hard to find ways of keeping the prices down which has resulted in 17% of price reduction between 2000 and 2006. (Tesco 2009) The company has also been successful in creating a great place to work which is ââ¬Å"treat people how we like to be treatedâ⬠. Staffs are treated with respect, managers who always help, opportunities are provided to get on. The better the staffs are treated, the better services they would provide to the customers. 25 Rarity To win over other competitors means one company must possess a unique and rare capability. Tesco has been so successful in capturing leadership of the market for online grocery shopping by designing and implementing supply systems that effectively link existing shops with Tesco. com web site. (tutor2u, n. d. ) Although online shopping is a feature of competitors such as Wal-Mart and other competitors, Tescoââ¬â¢s ability to design and deliver a ââ¬Å"customer interfaceâ⬠that personalizes online shopping and makes it more efficient has resulted the customers valuing the Tesco. com experience highly. Customerââ¬â¢s confidence has been built up with Tescoââ¬â¢s reliable and efficient delivery infrastructure from product picking, distribution to customer satisfaction handling. 26 Inimitability To create sustainable competitive advantage over time is not so straightforward and it must be competitively unique and difficult for competitors to imitate. (Kotelnikov, n. d. ) Tesco PLC of the United Kingdom has greater market share than its rival ASDA Group PLC in Britain. The market share for groceries is 31 percent for Tesco PLC compared to 16 percent for Wal-Marts Asda chain. The supermarket chain has introduced a loyalty program called Tesco Clubcard that collects detailed market information. (Advameg Inc. , 2008) Tesco pioneered the Clubcard rewards program to gather customer detail information, which it then used to accommodate to specific customer needs and potential desires. When shoppers signed up for the card, their age, gender, and income are automatically provided. Tesco was then able to segment their shoppers based on these factors. As long as the shopper used the card when shopping online or in-store, purchased product information was automatically captured into Tesco database. This enables Tesco to collect data about the spending habits and product choices of the customers allowing Tesco to target goods and services effectively such as grocery delivery services. (Knowmore. org, 2008) Apparently Tesco has done significantly better than competitors in winning customerââ¬â¢s loyalty. 27 Non-substitutability In order to maintain a big market share in this competitive environment, Tesco has to provide value to customer and possess competence which is non-substitutable over time. Hence, Tesco has evolved from merely food supply store (Tesco Express and Tesco Metro) to a wide range of food and non-food provider (Tesco Superstore, Tesco Extra and Tesco Homeplus). In addition to a variety of store formats, Tesco also provides a broad appeal by continually innovating and investing in new lines to increase options for customers. ââ¬Å"From Value to Finest and lifestyle ranges like Organic, Free From, Healthy Living and Wholefoods, our various own brands enable customers to buy products to compliment their lifestyle. Our nutritional signpost labeling aims to provide customers with the key information they need to help them choose a balanced diet. â⬠(Tesco 2009, The recent recession has shown a new challenge to Tesco because although customers tend to shop around more for the best prices when times are hard but it doesnt mean they want to compromise on quality of the shopping trip or on choice. ââ¬Å"That is why last year we made the biggest change to our range in a decade, launching around 500 new products as part of our Discount Brands at Tesco initiative. (Tesco 2009) This new range of products enables customer to match their budget without compromising on quality or choice. This act managed to retain the customer to continue to stay on Tesco. Core Competencies need to be flexible and evolve overtime with adaptation to the environment. As a business evolves and adapts to new circumstances and opportunities, so its core competencies which underpin the success will have to adapt and change . With the capabilities of which are valuable to customers, rare, inimitable and non-substitutable, Tesco manages to sustain as British largest retailer over its competitors. Conclusion Today, companies operate in a dynamic global environment whether they are domestic or international players. In order to stay competitive, companies need to innovate. ââ¬ËInnovation requires pressure, necessity and even adversity. The fear of loss often proves more powerful than the hope of gainââ¬â¢. (Porter, 1999,p. 164). In these changing times, Tesco has been able to maintain their position as Britainââ¬â¢s number one retailer through innovative approaches in all aspects of their business, from customers to employees to supply chain management. The dynamic macro environment that Tesco UK operates in provides both opportunities and threats. The present economic situation in UK is an important indicator that would and is affecting Tescoââ¬â¢s operations. Though the country has been experiencing high unemployment rates presently, recent statistics show an improvement in sales figures which is an indication for future growth. Changes in consumer behavior patterns and socio cultural changes such as increased migration will no doubt play an important role in creating strategies to have a sustainable competitive advantage for the company. Through Porters 5 Forces Model, we have gained a better understanding of Tescoââ¬â¢s competition. The biggest threat is the existing rivalry in the UK between the supermarket giants such as Asda, Sainsbury, Safeway, Marks and Spencer ad Tesco. Price competition is still the main form of competition existing within these giants. However, Tesco has understood the importance of their stakeholders, mainly consumers and employees and focused their strategic direction towards creating a loyal consumer and employee base with long term commitment. Constant changes to meet customer demands and high response to consumer feedback are important core competencies of the company. Value for money and being able to cater to all market segments have also been vital in maintain their competitive advantage. With the identification of these competencies and the environment analysis, Tesco now could align their future strategic direction to achieve long term sustainable growth as a responsible leader in the UK retail industry. References Johnson, G. , Scholes, K. , Whittington, R. (2008). Exploring Corporate Strategy. Harlow: Prentice Hall. Kotelnikov, V. Core Competencies: Things You Can Do Better Than Your Competition. Retrieved November 15, 2009, from 1000 Ventures: 1000ventures. com/business_guide/crosscuttings/core_competencies. html Knowmore. org. (2008, May 21). Tesco PLC. Retrieved November 17, 2009, from Knowmore. org: knowmore. org/wiki/index. php? title=Tesco_PLC Tesco 2009. Core UK. Retrieved November 17, 2009, from Tesco PLC: tescoplc. com/plc/about_us/strategy/coreuk/ tutor2u. Strategy Core Competencies. Retrieved November 15, 2009, from Tutor2u: http://tutor2u. net/business/strategy/core_competencies. htm The Press Association, Tesco sees market share growth, 10 November 2009. Retreived on 17 November from google. com/hostednews/ukpress/article/ALeqM5hBp-Szv5JTubP4tXxSQSQdL3bsMw Office for National Statistics, UK Statistics Authority 2009 retrieved on 19 November 2009 from statistics. gov. uk/instantfigures. asp Just-Food. com, Sound Bites ââ¬â The UK Grocery ââ¬Ëcode of practiceââ¬â¢ . Russel Michelle, 3 March 2009 retreived from ttp://www. just-food. com/article. aspx? id=105666 The Guardian, UK 21 April 2009. Wearden G. Tesco unveils record profits of ? 3bn. Retrieved on 19 November 2009 from guardian. co. uk/business/2009/apr/21/tesco-record-profits-supermarket Eurofound 2009, Tesco, UK: Make work pay ââ¬â make work attractive retrieved on 19 November 2009 from eurofound. europa. eu/areas/qualityofwork/betterjobs/cases/uk04tesco. htm BBC News Online, Stamp Gavi n 25 April 2006 Foreign growth jey to Tesco goals retrieved on 19 November 2009 from http://news. bc. co. uk/2/mobile/business/4781458. stm Tesco corporate responsibility report 2009 retreived on 17 November 2009 from investis. com/plc/cr09/crr09. pdf Porter, Michael. E. (1999) On Competition. Harvard Business Press Williams, C. (2000). Management, Cincinnati Ohio, South-Western College Publishing Advameg Inc. . (2008, n. d. n. d. ). Abstract. Retrieved November 17, 2009, from Internet FAQ Archives: Online Education: faqs. org/abstracts/Business-international/No-1-retailer-in-Britain-uses-Clubcard-to-thwart-Wal-Mart. html
Wednesday, February 26, 2020
Where you sit on a commercial aircraft can determine if you survive an Research Paper
Where you sit on a commercial aircraft can determine if you survive an airplane crash - Research Paper Example Several studies have analyzed plane accidents in the past in an effort to find out which seats can be considered as being safe. Before any passenger tries to locate the safest seat while boarding a plane, it is important to take note of the realization basing on the past accidents that the ratio of a passenger dying in the event of a crash while using one of the top twenty five airlines considered to be the safest is 1 to 5.4 million (Noland 2). This implies that airlines have become safer and safer with time. It is also true that the chances of surviving while using airliners which have a history of crashing is placed at thirty percent. Considering the two facts above, basing of the statistics, the selection of a safer seat can improve your chances of surviving while travelling in commercial aircrafts in case of a ditch or a crash. Ditching refers to the situation where a plane is forced to land in a place that is not a runway. A good example of a ditch is the accident that took place in January 2009 in Hudson River involving a U. S Airways jet. In this accident, no fatalities were recorded. A crash on the other hand refers to the situation where a pilot is helpless hence has no control over the plane or an attempt by the pilot to ditch a plane misfires (Noland 1). The manufacturers of aircrafts, airline companies as well as Federal Aviation Administration have come up with quotes insisting that all seats are safe in a plane. Several studies have been conducted in relation to such quotes with most studies dismissing the quotes. One of such studies is the ââ¬ËPopular Mechanicââ¬â¢ magazine which analyzed data on airline crashes from 1971 and examined the seating positions of the survivors. According to its findings, the magazine concluded that in any airline, the safest seats are the rear seats located behind the wing (Noland 1). From the studies, it was observed that passengers sitting at the rear cabin had a forty percent chance of
Sunday, February 9, 2020
Marketing Research Degree Essay Example | Topics and Well Written Essays - 2000 words
Marketing Research Degree - Essay Example On the other hand it is also important to have the knowledge of how to present the product in effective manner in order to reach the customer in an effective manner. With the changing business needs the new marketing techniques such as product differentiation, branding and advertising are also gaining immense importance. The successful product positioning and promotion is only possible if all the required information in this lieu is gathered and used in the right direction. In order to fulfill modern information needs, new information technologies have also been evolved. The information regarding the buyer preferences and behavior plays an important part in helping the management to take important decisions regarding the product such as pricing, promotion, competition etc. It is important for the company to establish a system in order to acquire a large amount of information for the marketing managers. "Competitive companies study their managers' information needs and design marketing information systems (MIS) to meets these needs. A marketing information system (MIS) consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision markers. To carry out their analysis, planning, implementation, and control responsibilities marketing managers need information about developments in the marketing environment. The role of the MIS is to assess the manager's information needs, develop the needed information, and distribute that information in a timely fashion, the information is developed through internal company records, marketing intelligence activities, marketing research, and marketing decision support analysis." (Kotler, 2000) In the case of Dairy Products Limited the MIS can play an important role in successfully marketing the new dessert which the company is planning to launch. An effective MIS will also help in enhancing the exposure level of the company from local market to national market. It is important for the company to design the MIS system in an effective manner. In most of the cases the companies lack information sophistication. Some of them collect a large amount of information but the data is not stored in a proper way to be handled easily. Without an effective marketing information system it will become impossible for the Dairy Products limited to reach to the desired customer. The MIS will help the company in understanding the customer's perception, taste, needs and desires regarding the new product. Without the proper MIS the investment in the production and innovation will not be of any use. "The MIS represent a cross between what managers think they need, what managers really need, and what is economically feasible." (Kotler, 2000) The MIS will provide support to the management in the areas of reduction of price risks, planning for an effective and cheap marketing strategy with technology assessment and development, particularly in evolving and popularizing food product offered by the company. An effective Marketing information system can help in the company in motivating distributors, retailers, and other intermediaries to pass along important intelligence. Through the components of MIS the Company will able to collect information regarding
Thursday, January 30, 2020
Troubadors Paper Essay Example for Free
Troubadors Paper Essay It is unlikely, in this day and age, that one could be privy to likes of troubadours, as recounted in the works of Jaufre Rudel andà Bernart de Ventadorn.à Their works, A Love Afar and The Skylark, are similar in that they both speak of a love that for one reason or another has been unreachable to them.à Rudel, in A Love Afar, is pining for a woman he has never met, nor even seen, but has an attraction for based on the information he has been given by other pilgrims. ââ¬Å"My pilgrimââ¬â¢s staff and cloak might shine.â⬠à Rudel professes to worship this love from afar, ââ¬Å"They call to mind my love afar.â⬠à His work follows the path of courtly love, which is typical of the medieval era.à Rudel declares his devotion to his love, ââ¬Å"Gladly Iââ¬â¢d lie at her command, a captive in a Moorish land.â⬠à Also typical of medieval courting, Rudel speaks of physical manifestations of the love that he seeks afar, ââ¬Å"My curse fall on that godsireââ¬â¢s heart, whoââ¬â¢s cursed me so my love runs ill.â⬠à à à à à à à à à à à The tenor of Bernart de Ventadornââ¬â¢s work, The Skylark, lacks the hope that is present in Rudelââ¬â¢s writing.à The Skylark, is the writing of a man who is daunted by the love that he has lost.à ââ¬Å"Alas, I thought Iââ¬â¢d grown so wise; in love I had so much to learn:à I canââ¬â¢t control this heart that flies to here who pays no love return.â⬠à Where Rudel felt that he had been blessed by love, even promised love by God, Ventadorn has been cursed by a love that has stolen the very life from him.à ââ¬Å"Losing control, Iââ¬â¢ve lost all right to rule my lifeâ⬠¦deep in despair.â⬠à Ventadorn presents no benefit from the love he seeks or sought, whereas Rudel sees benefit even if he should die in the end.à Ventadorn has been scorned by love.à ââ¬Å"Iââ¬â¢ll place no trust in women though I did before; Iââ¬â¢ve been there champion so itââ¬â¢s just that I renounce them everm ore.â⬠Rudel has found such promise in love. ââ¬Å"That man speaks true whoââ¬â¢d say I burn for naught else but my love afar; now for no other end I yearn, only to know my love afar.à Ventadorn, however, has lost all faith in women, love, and music.à ââ¬Å"Ay! Now I fall in deep disgrace,à a fool upon loveââ¬â¢s bridge am I; No one know how that could take place, unless I dared to climb too high. Ventadorn places women on a pedestal, but perhaps realized he had done so unjustly.à Ventadornââ¬â¢s writing also suggests an adulterous nature, ââ¬Å"Wrongful it seems, now, in my view, to see a creature loveââ¬â¢s betrayed, whoââ¬â¢d seek no other good but you, then let him die without your aid.â⬠à Ventadorn is so distraught that he swears off his writing and music.à ââ¬Å"Tristan youââ¬â¢ll hear no more from me:à I leave to wander, none knows where; henceforth all joys in love Iââ¬â¢ll flee and all my songs I now forswear.â⬠Courtship during the medieval era was considered to be an art form.à Both of these writings bring to mind the image of the Knight on a white horse, that sweeps his lady off her feet.à Both pieces tell of love that is challenged by a geographical distance and love that is ultimately fated to die.à Both pieces are ideal examples of noble chivalry that was present in the courting present in the medieval era.à à Both pieces place the woman in a superior level to themselves. The image created by Rudel is one of passion, with no price to high, in order to reach his love.à It is almost as though you can see him traveling by boat, ââ¬Å"Such tracks and trails, such land and sea.â⬠à One can almost see him battling his way to his love.à Ventadorn paints an image of a man who is angered and retreats to his destination, which is to be alone, as demonstrated, ââ¬Å"I say no more; I silent go; She gives me death; let death reply.à My Lady wonââ¬â¢t embrace me so I leave, exiled to pain for aye.â⬠Rudel speaks of his love as a lady, while Ventadorn speaks of his love as a Lady while expressing his love, but then reverts to women when expressing his anger and despair.à Troubadors admired ladies, but feared women.à Ladies were to be treasured, something to desire, while women were almost considered evil.à Both writers seem to appeal to their loves as a method of furthering themselves and their current status.
Wednesday, January 22, 2020
True Grit Vs Old Man And The S :: essays research papers
Comparative Essay Between The Old Man and the Sea and True Grit The Old Man and the Sea, by Ernest Hemingway, a simply written novel of an old man's singular struggle, while trying to catch a fish, against forces of the sea overpowering him and True Grit, by Charles Portis, a gripping western, placing you in the middle of the action during a girl's quest with two other men to get revenge for her father's murder, are two works united in several ways. Many similarities throughout both works appeared evident. Plot, theme, and characterization categorize those similarities. Ã Ã Ã Ã Ã First of all, in plot, the works share the same event progression. An early start, a determined drive, a final showdown, and an attempt to continue the achievement. The intentions were to simply accomplish no matter what the circumstance. The Old Man set out early in the morning as indicated here, '…he began to row out of the harbour in the dark.'; In True Grit, Mattie, a girl bent on avenging her father's death, Rooster, a federal marshal, and LaBoeuf, a Texas Ranger, set off when, 'It was still dark outside and bitter cold although mercifully there was little wind.'; The dedication involved in the characters' pursuits becomes more evident later on. 'He is a great fish,'; the old man told himself, 'and I must convince him not to learn his strength…'; As it was also with the Mattie from True Grit. 'I knew both of them (Rooster and LaBoeuf) were waiting for me to complain or say something that would make me out to be a 'tenderfoot.' I was determined not to give them anything to chaff me about.'; Her intents were not purely superficial though. Her anger toward '… a coward going by the name of Tom Chaney,'; was a key factor in driving her to achieve her purpose. Finally, after toiling with the fish, the Old Man, '…took all his pain and what was left of his strength and his long gone pride and he put it against the fish's agony,'; in his last bout with the great fish. The same sort of event occurs at the same point in the story line in True Grit. 'Rooster said, 'Fill your hand you son of a bitch!' and he took the reins in his teeth and pulled the other saddle revolver and drove his spurs into the flanks of his strong horse Bo and charged directly at the bandits.
Tuesday, January 14, 2020
Helping the street children Essay
Poverty, health and nutrition, and the lack of access to education are the challenges that are linked each other, facing us and become horrible nightmares for the government, and of course children at this time. And nowadays, those nightmares haunt Indonesia, Jakarta ââ¬â the capital city ââ¬â for exact. The challenges are come up by the poverty. Within the poverty, malnutrition and the lack of access to education happened badly. Children, as the innocent parties, also have to feel the impacts. Poor children will become the poverty conservationists. Poor conditions in childhood will only lead to a slower cognitive growth, stunted physical and limited access. Jobs that can be achieved with low education is also very limited. Therefore reduction of poverty might be large and long-term impact when the roots of the problems of poverty such as poor nutrition, education, improved quality of life can be made since the early. No matter how many individual and anecdotal exceptions there may be, the fact remains that the children of the poor simply do not have the same opportunities as the children of non-poor. Whether measured by physical and mental development, health and survival rates, educational achievement or jobs, prospects, incomes or life expectancies, those who spend their childhood in poverty of income and expectation are at a marked and measurable disadvantage. Economic and political conditions often make getting an education ââ¬Ëimpossibleââ¬â¢ for children. Families may require their kids to work so that they have enough money to survive or even sell their children for labor, sex, or adoption because money is too tight. In other cases, obligatory school fees may prove prohibitive. Discrimination, attacks on secular schools, displacement as a result of war or persecution, and other conditions are often to blame. Poverty and prosperity are the two words that opposing each other. Poverty shows the distress and unprivileged situations, while the prosperity shows a luxurious and affluent situations. Traveling Jakarta, everyone can see the luxurious cars like Mercedes-Benz or Hammer along the road, and at the same time, beggars raise their hands, asking for help. The contrast between poor and rich is very pronounced in this very interesting megalopolis. Despite a robust economic growth, Jakarta is still a place of poverty. There is no doubt that the poverty is an intractable problem in Indonesia. Problems associated with poverty is the effect of the poverty for the growth and development of childrenââ¬â¢s lives as they are called to work. In Jakarta, so many school-age children spend most of their time for begging and busking. Most of them started to be beggars and buskers since the age of under five. They were forced to leave the school for work, to provide themselves and help the family economy. The United Nations Convention on the Rights of the Child in 1989, has conveyed that there are a number of rights of children should be guaranteed and fulfilled by the state, which every child has the right to be born, to have a name and nationality to have a family who loved and to love, to live in the community safe, peaceful and healthy environment, to get enough healthy food. The deprived of these basic childrenââ¬â¢s rights causing the growth process of the children stunted. One of the emerging social problems in Indonesia, especially in the Jakarta, is the increase of the children as beggars and buskers along the streets, even in the roads. According to the results of a survey of social welfare problems conducted by the Central Bureau of Statistics and Ministry of Social Affairs in 2000, the estimate of the number of the street children is about 50,000 children comprising 83% males and 17% females. According to the same observation, Prasadja and Agustian reported street children in Jakarta aged 13-15 years by 40% and 16-18 years by 30%. From those who had dropped out of school around 60% to 70% do not want to go back to school with a variety of reasons, specifically ashame because already mature, and prefer work to help parents. Meanwhile, the data from the Department of Social in 2005 also shows that more than 1,1 million toddlers are spend most of their times along the roads and the total amount of street children in Jakarta are 3. 3 million. This large population of street children causing of the strength of the street fascination. According to the ChildFund Indonesia, in 2010, these children were taking to the streets only to help their parents. The streets become the easiest locations to looking for work because it requires no capital and skills. The other problem in Jakartaââ¬â¢s many slums is child malnutrition. Most residents of the neighborhoods donââ¬â¢t have kitchens or cooking supplies to prepare their own meals, so they purchase cheap street food that is usually high in fat and sugar, but low in protein and nutrients. As a result of this poor diet, at least 17% of children throughout the city suffer from acute malnutrition, as well as anemia and stunted growth. That percentage is much higher in the slum neighborhoods where poor families are concentrated. The child poverty really needs serious attentions. This country doesnââ¬â¢t have an accurate data of children poverty population. However, if the percentage of the poverty reaches 39% or around 40 millions of the total population, means that the total poor children has a larger amount. The poverty of children exposed in the amount of information street children, dropped out of school, malnutrition, child prostitution, children trafficking and child labor. The possible causes of the child poverty that related to the health and nutrition of the children and the lack of access to education are 1) the low wages, contrary to some stereotypes, 56% of children in poverty have a parent who works full-time, according to Robert Fellmeth, Price Professor of Public Interest Law at the University of San Diego School of Law and executive director of the Childrenââ¬â¢s Advocacy Institute. A full 28% have parents who work part-time and only 16% of parents are unemployed. Generally these parents work in low-wage jobs with few benefits and no room for advancement. Though parents work, the wages are not enough to support their families so children live in poverty 2) single parenthood, is that children living in single-parent families, particularly those headed by women, are much more likely to be poor. On average, women earn less than men, reducing their ability to support a family. Two-parent families also have twice the income potential as single-parent families. This effect can be lessened if the father contributes child support 3) parental education, according to NCCP, children whose parents do not have a high school diploma are more likely to live in poverty. In fact, 83% of children with parents who did not graduate from high school live in poverty. The importance of good policy and initial favorable conditions has been identified as the main factors contributing to poverty reduction during the pre-crisis period in Indonesia. There were four main important policies and programs devised by the new order government (1969-1998). First, the rice policy, which subsequently led to Indonesiaââ¬â¢s attainment of ââ¬Å"rice self-sufficiencyâ⬠in 1984, was one of the important factors that had a lasting impact on alleviating poverty. Second, during the oil boom in 1970s, the government made substantial allocations to the social and human resource development sectors, as well as to transport infrastructure. It was during this period that the government implemented the expansion of primary schools (SD INPRES) and health centers (PUSKESMAS) to ensure wide access to these basic social services for the poor society. Also during this period the government established the INPRES funding system, which allows direct grants from the center to the regions. Third, the government ensured that particular social sectors were protected within the development budget, primarily by utilizing the INPRES mechanism. Fourth, labor intensive projects, which have long been part of the governmentââ¬â¢s efforts to stimulate employment and income during tough economic times. But why does Jakarta still have the Child Poverty problems about the Lack of Access to Education and Health? Not all of those organizations ran properly. Some of them are proceeded improperly. Some of them are troubled with the committees, additional costs, bribery, violence, etc. It is because the government does not look after it. They were just made the organizations, leave it, then entrusted to the committees. Virtually, not all the committees work inappropriately, but some of them are still, and unsettling the poor society. The central government and the regional should run the programs seriously in order to solve the poverty problems and improve the education level and health of street children in Jakarta. The government should send some new teachers to the schools for street children (SD INPRES). Teachers who are not just smart or knowledgeable, but the teachers who have the soul of idealism to help improve the education quality of the street children, not really far to left behind the rich children. The teachers should also required to to attend training first, to treat the street children, who probably are very different than the usual children, in terms of behavior, character, politeness. Yet, it should not be resolved with violence. They should give them a fit attention, because someday they will become the future successors. In addition, the government should establish an organization of art and music for the street children and send some teachers who are experts in the in that parts. Repeatedly, not just anyone. Only selected teachers who can teach them, have a strong soul of idealism about street children, enough patience, to bring the street children become more intense and make a lot of satisfactory artworks and wonderful pieces of musical. The teachers have to take the children down to the competitions, contests, or talent shows to make them enthustiastic for developing their talents. For the health centers (PUSKESMAS), the problems are not very different with SD INPRES, but in additional their big fault is that the PUSKESMAS is just waiting for the patients. Some of the doctors and nurses should visit the poverty society routinely, especially the children. Because, some of them might canââ¬â¢t come to the PUSKESMAS causing the distance, transportation, or strength to keep themselves along the way to the PUSKESMAS. Children and the elderly are the first parties that must be handled after the emergency patients then followed by adults patients. The other solution, is that the government should encourage the society, especially the poverty society, to make some latrines, repair the broken sanitation facilities, provide the mosquito nets and clean water. Also the government should appeal the people to implement the healthy life. For children, country, and the future. The fatal faults of adults, impact to the children. Nowadays, they have to face some big problems that they musnââ¬â¢t face. Innocent faces, should dropped out from school because of costs and fees, do not eat healthy food ââ¬â or even rare to eat ââ¬â because of the lack of money to buy the healthy food, working along the streets under the blazing sun, while the other children sitting on the chairs at school at the same time. Dropped out from school, leaving the dreams. Some of their parents made those faults, made the poverty. The laziness, mischiefs and riots when they were still in youths built a big problem, failure that making bankrupts and end with poverty. Regret comes late, so make it never happen. Parents who are failed in the term economy, ought not be fail at the family harmony and guiding children. Make them become worthy persons in the future, that lead the country becomes better and also decrease the rate of poverty in Indonesia, not only in Jakarta ââ¬â even the world. For the government, they should distribute the agricultural assets, including land, and more access for the poor to better education and health facilities must be given as the first priority in poverty alleviation policies. No doubt, the poor are better off when the government gives more focus and run the functional organizations responsibility. Bibliography: UNICEF Innocenti Research Center (2000, June). Innocenti Report Card, Issue No. 1: A League Table of Child Poverty in Rich Nations. Retrieved from http://www. unicef-irc. org/publications/pdf/repcard1e. pdf The World Bank in collaboration with UNICEF (2009). UNICEF Publications: Abolishing School Fees in Africa: Lessons from Ethiopia, Ghana, Kenya, Malawi, and Mozambique. Retrieved from http://www.unicef. org/publications/index_49325. html Richards, Jill (2007). The eHow Health: The Causes of Child Poverty. Retrieved from http://www. ehow. com/about_5375005_causes-child-poverty. html Ruslan, Kadir (2011, August 20). Jakarta, Kota Bercampurnya Kemakmuran dan Kemiskinan (Jakarta, the City of the Mixed of Prosperity and Poverty). Retrieved from http://sosbud. kompasiana. com/2011/08/20/jakarta-kota-bercampurnya-kemakmuran-dan-kemiskinan/ Tambunan, Tulus. Urban Poverty and Social Safety Net in Indonesia. Research Institute, Indonesian Chamber of Commerce and Industry (LP3E-Kadin Indonesia). Retrieved from http://web. mac. com/adrianpanggabean/Loose_Notes_on_Indonesia/Poverty_files/tambunan%20urban%20poverty. pdf Lesmana, Teddy (2008). Sriwijaya Post: The Impacts of the Child Poverty. Retrieved from http://palembang. tribunnews. com/26/07/2010/dampak-kemiskinan-pada-anak Juliarny, Amalia and Erna Dewi Kusuma Ningrum (2011, September 8). Journal Psyche:The Efforts of Improving Achievements of the Street Children at Rumah Singgah, Bukit Duri, South Jakarta. Retrieved from http://blog. binadarma. ac. id/Amalia/? p=19 Emanuela, Maria (2010, May). Poverty is Affecting the 9 Years Study Programs. Retrieved from http://mariaemanuela19. blogspot. com/2010/05/kemiskinan-mempengaruhi-wajib-belajar-9_14. html Rukmana, Deden (April 8, 2007). Indonesiaââ¬â¢s Urban Studies: Urban Poverty and Inequality in Jakarta. Retrieved from http://indonesiaurbanstudies. blogspot. com/2007/04/urban-poverty-and-inequality-in-jakarta. html.
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