Beveridge Report of 1942 Essay Example | Topics and Well Written Essays - 2750 words

Beveridge Report of 1942 - Essay Example The Second World War for the general population was an experience that was more extensive and indiscriminate than 'f any previous conflicts. Previous wars had mostly been fought far from Britain. The Blitzkrieg, the war by air, changed this. It destroyed millions 'f homes and forced people from the cities to flee to the countryside, bringing together people from different classes and backgrounds. It had been an intense and traumatic time for the entire nation but also a realisation that misfortune and tragedy were not restricted to the disadvantage alone. The task 'f re-building the state needed to take place at every level, as well as the re-building 'f lives: This led to a great expansion in the role 'f Government in society. Historically British social policy had been dominated by the Poor Laws. But now there was widespread support for reform and expansion 'f the welfare system. Development 'f such reforms would owe much to Fabianist beliefs and the Beveridge Report 1942. William Beveridge was appointed by the wartime Government to review Social Security Policy. His report concluded that the state should meet collective welfare needs and provide positive freedom to individuals by removing the Five Giant Evils. In 1945 Labour began addressing Beveridge's evil through state action introduced reforms: 'Our po'The National Health Service was set up to combat Disease. Full Employment to combat Idleness. State Education to fifteen to combat ignorance (actually introduced by the war time government). Public Housing to combat Squalor. National Insurance and Assistance Schemes to combat Want.' (Jones, 1991 p.126) Claiming: 'Our policy was not 'f reformed capitalism, but progress towards a democratic socialism...the war had shown how much could be accomplished when public advantage was put before private vested interest. If that was right in wartime, it was right in peacetime' (Jones, 1991 p.117) To describe the social policy reforms, press at the time coined the phrase 'from the cradle to the grave'. Alcock describes the social policy proposals as: 'The social policy response to the depravation 'f depression' (Alcock, 2003 p.220) Prior to the NHS, health care was not a luxury everybody could afford. Access to a doctor was free to workers but this did not cover their families. Poor people often went without medical treatment, relying on home remedies or on the charity 'f a doctor. For the Government to fund the NHS and other evils economic growth and full employment were essential. Maynard Keynes advised the government to spend its way out 'f a recession by lowering taxes and investing more in projects and programmes. Government began to use Keynes theory 'f demand management and in 1946

Marriage in Other Countries Essay Example for Free

Marriage in Other Countries Essay This paper will be about a traditional dress from my native land and other countries. The traditional dress I will be writing about is called a wedding dress. A wedding dress is used throughout the world in various countries including China, Japan, India, and Vietnam. This paper will also detail different cultures, religions, types and colors of wedding gowns that symbolize the bride or groom wealth, occupation and or belief. In the Americas, weddings performed during and immediately following the middle ages were often more than just a union between two people. They could be a union between two families, two businesses or even two countries. Many weddings were more a matter of business than love, particularly among the wealthy people. Brides were therefore expected to dress in a manner that made their family seem more presentable, for they were not representing only themselves during the ceremony. Brides from wealthy families often wore rich colors and exclusive fabrics. The amount of material a wedding dress contained also was a reflection of the brides social standing and indicated the extent of the familys wealth to wedding guests. In the 1920s, wedding dresses were typically short in the front with a longer train in the back and were worn with cloche-style wedding veils. Today, Americas traditional wedding color is white because of the marriage of Queen Victoria to Albert of Saxe-Coburg. Victoria wore a white gown for the event to incorporate some lace she prized. Before then, white was a mourning color, it represented a bride whom had recently lost a loved one. Black was actually a color that was worn by the lower class because it was more favorable and could be worn again on many occasions. In the eastern cultures, the traditional wedding color was red, the color red symbolizes good luck and favorable. In modern Chinese weddings, the bride will opt for Western style dresses and traditional costumes for the official tea ceremony. In India a choice for a bride is a wedding sari, which is a traditional garment for Indian women. Over time color options and wedding fabrics have changed throughout the eastern countries. Fabrics have expanded and today, fabrics like crepe, georgette, tissue, silk, and satin have been used. Colors such as gold, pink, maroon, brown and yellow have also expanded. It seems as if the other countries around the world are starting to adopt the western tradition. At Japanese weddings, brides will often wear three or more dresses throughout the ceremony and subsequent celebrations with a traditional kimono, white and color dress combination being popular. The Javanese people of Indonesia wear a kebaya, a traditional kind of blouse, along with batik. The Native Americans have traditions different from most other countries. A Hopi (A Native American tribe) bride traditionally would have her garments woven by the groom and any men in the village who wished to participate. The garments consisted of a large belt, two all-white wedding robes, a white wedding robe with red stripes at top and bottom, white buckskin leggings and moccasins, a string for tying the hair, and a reed mat in which to wrap the outfit. A Pueblo bride wore a cotton garment tied above the right shoulder, secured with a belt around the waist. In the traditions of the Delaware, a bride would wear a knee-length skirt of deerskin and a band of wampum beads around her forehead. Wedding dresses are very diverse and unique. There are a few things that all weddings dresses have in common among all cultures. The most important thing is that bride’s want to look and feel beautiful. The wedding dress is plays a significant part in the wedding ceremony. The wedding dress gives the bride the opportunity to stand out. A wedding dress represents one of the most precious garments that a woman will wear in her lifetime. It represents religions, cultures and family traditions. Although it’s just material, the wedding dress is very important because it symbolize marriage, the union of two people who love each other.

Vodafone Business Marketing Analysis Marketing Essay

Vodafone Business Marketing Analysis Marketing Essay Vodafone is a well-known mobile network operator headquartered in Newbury, England. It is recognized as the largest telecommunications network company all over the world on the basis of its turnover. Currently, the company has equity interests in twenty-five countries and Partner Networks in another forty-one countries (Vodafone 2011). It is the second largest mobile telecom group throughout globe after China Mobile. The firms success is due to its strategic capabilities and their link with significant external and internal factors. Nowadays for surviving in an intense competition, it is essential that firms must be innovative but it is also essential to identify what makes a firm innovative. As well, it is also vital to identify that what are the resources that make a substantial contribution in a firms innovation capabilities. In regard to business these innovation capabilities are also known as a firms strategic capabilities. The success of a firms strategic capabilities depends on its ability to link it with its internal and external factors that influence the setting of its business objectives and policies. In the light of resource based theory, the strategic capabilities of Vodafone can be assessed by identifying its current resources and capabilities as a successful player in telecommunication network industry (Ordanini Rubera 2008). Subsequently, the effects of its key resources on its strategic capabilities need to be identified in relation to its link with external and internal factors. Throughout company long history and success its resources are classified in two categories that are: Tangible resources: The company tangible resources can be classified into four categories that are financial, physical, organisational structure and technological resources. Intangible resources: Intangible resources can be classified into people-dependent and people-independent resources (Bakar Ahmad 2010). All these resources are not having same importance to company strategy as financial, structure, technological are highly important whereas physical resources is having ordinary importance to it. On the other hand, people dependent and people-independent resources like human and innovation resources and reputation and organisational culture all are having high importance to Vodafone strategy. In regard to these resources, the company is significantly able in developing several strategic capabilities that can be analyzed with the help of its value chain activities that are primary activities and support activities (Bakar Ahmad 2010). Activities or organisational functions direct its employees towards the development of capabilities so it is essential to identify capabilities in regard to companys primary and support activities. One of the substantial strategic capabilities developed by Vodafone in regard to its operations is providing telecommunication services at low cost with guaranteed quality. In regard to technological development, the company have become able to exploit technological opportunity and developing and applying technologies (Donaldson OToole 2007). For handling human resource management, it has developed its capabilities in concern of recruiting and training competent personnel for technological innovation and motivating compensating all employees for more and more technological innovation (Dodourova 2003). In regard to its infrastructure related activities, it has developed capabilities like recognizing and promoting the aspect of innovation, financing and planning for technological innovation, integrating all functional departments, evaluating technological innovation, legal support to it, and attaining essential government support to finance and protect its technological innovation (Dodourova 2003). The discussion of company strategic capabilities and resources depict that almost all its strategic capabilities are grounded on technological innovation that are highly supported by its innovation-friendly tangible and intangible resources. Due to this extreme association between resources and capabilities, the company have become able to handle its external and internal environment that can be understood with subsequent tools like PEST and SWOT analysis: PEST analysis Political factors: Several political factors related to regulations, infrastructure, and health issues affect Vodafone business objectives and policies but with its strategic capability of recognizing, financing, planning, integrating, assessing, and legal and government support it become able to effectively deal with these external issues and develop effective business strategy as per the industry trends and environment (Donaldson OToole 2007). Economic factors: Economic factors like high cost of licences, the bidding war for 3G and constant price wars between providers also critically affect company and its business plans but with its strategic capabilities of technological innovation Vodafone has become able to serve its customers with more surprising and advanced services (Dodourova 2003). Its technological development operations related capabilities are significantly assisting it in resolving economical issues from its external environment. Social-cultural factors: Socio-cultural factors like health issues, demographics and social trends also affects company operations that it critically handled with the help of technological innovation in regard to its human resources and technology development (Lynch 2006). Technologies offered by Vodafone are assured and approved that assist it in handling health related issues and its employees are highly dedicated and committed for technological innovation that assist in handling changing demographics and social trends. Technological factors: Technology related issues that affect company operations and business plans are excessive technological change in mobile phone industry, the introduction of 3G and several other advanced aspects (Dodourova 2003). All these external environment related issues are handled by Vodafone with its technological innovation capability that has been developed by exploiting technological opportunity and developing and applying technologies. SWOT analysis: Another contribution of Vodafone strategic capabilities is in concern to the management of its internal environment that is highly essential to link it up with external environment. With the help of its strategic capabilities, the company has become able to maximize its strength and existing opportunities like global experience, establish itself across several countries, exploring new technologies related to telecommunication and mobile, and increase its size of the market and as well as its market share (Bakar Ahmad 2010). As well, due to its technological innovation capability it has also become able to establish itself at a good global platform, standardized customer relationship management and attaining high operations margin (Dodourova 2003). In addition to this, the company has also become able to minimize its weaknesses and threats to external environment like high capital expenditure, huge RD and infrastructural costs, legal issues, selection of appropriate technologies, political and social regulations, and increasing competitors (McLoughlin Aaker 2010). It has all become possible due to its strategic capabilities developed throughout its different primary and support activities and continuous support from its tangible and intangible resources. All the above identified strategic capabilities assist firm in handling its external as well as internal factors that in turn assist it in the development of appropriate business objective and plans for present and future success of the company. Critical Appraisal of Vodafones Business Performance since 2008 Vodafone is one of the worlds largest mobile communications companies on the basis of revenue. From, its inception it is operating with a vision to become communication leader in a significantly connected world (Capon 2008). In its initial year, it confronted substantial difficulties throughout its business performance but in last some years it has attained immense success due to its several distinct strategic initiatives (Sandbach 2009). Since 2008, the company is doing quite well but still it confronted several failures related to intense competition, emergence of advances communication technologies, and continuous changes in customer preferences (Lynch 2006). For handling failures related to competition the company adopted three generic strategies for competitive advantage. For handling excessive competition and market pressure, the company made use of cost leadership strategy and differentiation in spite of focus strategy. In regard to its problem of competition, the company cost leadership strategy was highly helpful. One critical success attained by the company in this period was to become a firm with truly international customer base (Sandbach 2009). It become possible for Vodafone due to its appropriate strategies like differentiation and cost leadership strategy. In present also, this strategy is highly helpful for the company in dealing with the issues that may arise with number portability. Number portability means customers can switch to anyone who provides a reliable and cheapest service (Vodafone Annual Report 2010 2011). By competing on its cost leadership, Vodafone can direct itself towards higher unit profits that in turn will help it in attaining competitive advantage through decreasing costs. Another imperative success that company has attained in last 3 years is a good global platform which integrates its existing future network systems and heightens its ability to launch products with a concentration on both market speed and the ability to deliver it throughout all group network (Lynch 2006). It is done with a strategic initiative of differentiation. The differentiation along with marketing strategy and effective marketing mix helped Vodafone in serving its customers with added value through their wide range product features and quality that is significantly different from its competitors (Curwen Whalley 2010). The company strategic initiatives and their success and failures can also be understood effectively with the help of BCG matrix that depicts the companys market share and growth rate: Relative Market Share (Cash Generation) High Low Stars Multimedia messaging Question Marks 3G Vodafone Live Cash Cow SMS Dogs Analogue services High Market growth rate (Cash Usage) Low Vodafone BCG Matrix The BCG matrix depicts Vodafones portfolio that in turn demonstrates its products stand. Boston matrix represents the companys portfolio according to where the products and services stand in regard to market share and growth (Johnson 2008). This matrix shows that the company is operating by attaining a balance. Although, it has also confronted troubles in some last years in regard to 3G and Vodafone live that can also be depicted as a problem child or question marks. For effective future success in regard to the existing problems, the company should decrease its investments into its analogue services and in its place it should make use of money from cash cow SMS to reconstitute the problem child and maintain the star multimedia messaging in the high market share/high market growth area (Lynch 2006). In addition to these strategy models, the company performance since 2008 can also be understood with the help of different tools of financial analysis. By analysing subsequent financial ratios in terms of liquidity profitability, efficiency and return to investors it will become easy to identify that how well company managed its performance: Liquidity Ratios Current Ratio: The current ratio for Vodafone decreased from 5.40 to 5.00 in 2009 and 4.99 in 2010. It depicts that in terms of liquidity this period was not as good as throughout these years the company capability to pay its liabilities has decreased (Vodafone Annual Report 2010 2011). Quick Ratio: Vodafones quick ration fall from 5.38 in 2008 to 4.98 in 2009. This in turn also decreased slightly with 4.97 in 2010. This decrease shows that since 2008, the company ability to pay current liabilities without depending on the sale of inventory has also not attained any improvement (Luetjen Maatwk 2011). Profitability Ratios Gross Profit Margin: Vodafones gross profit margin over the three years has fallen slightly from 38.30% in 2008 to 37.00% in 2006 to a further 33.80%. It is the result of uninterrupted rise in the cost of sales. Although company margins are falling but its ratios are much better than its competitors that demonstrate that industry is at its matured stage and regularly the company is making use of new marketing strategies to bring down its cost. Operating Profit Margin: The company operating profit margin has fallen from 28.32% in 2008 to 14.28% in 2009 that in turn again rose to 21.32% in 2010. This was due to company approach towards market trends and existing competitors moves (Luetjen Maatwk 2011). Net Profit Margin: The company net profit margin has fallen initially from 19.4% in 2008 to 7.51% in 2009 and afterwards it improved to 19.38% in 2010 that was due to companys use of appropriate generic strategies and marketing strategy (Vodafone Annual Report 2010 2011). Return on Equity: The return to equity was also fallen from 8.83% in 2008 to 3.63% in 2009 but again with appropriate strategies it was increased to 9.49% in 2010. Efficiency Ratios Stock Turnover: The company stock turnover has increased continuously in the three years from 85.08 in 2008 to 99.56 in 2009 and 102.71 in 2010. This shows that throughout this three years period the company has effectively converted its stocks into revenue and as well it also made an effective use of its working capital that is critical for attaining success in present intense competitive environment (Luetjen Maatwk 2011). Debtor Turnover: The debtor turnover of the company has fallen slightly from 5.42 in 2008 to 5.35 in 2009 and 5.06 in 2010. It depicts that Vodafone is having high efficiency in regard to credit management. Asset Turnover: The asset turnover of the company is almost similar in three years as it was 0.28 in 2008, 0.27 in 2009 and again 0.28 in 2010. This ratio of company depicts its performance in generating sales from the assets at its disposition. Investment Ratios The Company earning per share has confronted both the increase and decrease from 2008 as in 2008 it was 12.56. In 2009 it reached at 5.84 and in 2010 it reached at 16.44. In addition to this, its price earning ration also confronted increase and decline. In 2008, it was 2.52 that increased to 3.14 in 2009 and again decreased to 1.35 in 2010 (Vodafone Annual Report 2010 2011). The companys use of appropriate strategies in comparison to its competitors assisted it in attaining this position. With the analysis of different financial ratios of the company, it can be said that the company performance since 2008 was a mix of success and failures. In this period the company did not confronted any severe failure in spite of just some minor business and competition related troubles (Wilson Gilligan 2005). Also, the company efforts made throughout this period were highly effective as due to this only it become able to make an effective use of its working capital. Development of a Potential Future Strategy for Vodafone With detailed discussion of company strategic capabilities and performance since 2008, it becomes apparent that company is doing very well but several times it is also troubled with intense competition and several other factors like increasing costs, emergence of advance communication technologies and changing preferences of customers (Dibb Simkin 2010). Till now, the company made use of cost leadership and competitive strategy that significantly helped it in attaining its specific business goals and objectives but it also need to be updated continuously. In regard to grow its position in international and global markets it is vital that the company operate with a potential future strategy that can be developed effectively with the help of Porters Diamond that in regard to Vodafone is as follows: Porters five forces Subsequent five forces make a direct effect on Vodafones strategic competitiveness that in turn will assist in determining a potential future strategy for the company: Competitive rivalry: In telecommunication market in which Vodafone operates competition is quite high and basically it comes from its competitors O2, Orange, T-Mobile and Virgin. In this market rivalry is high and there is no brand loyalty that exhibits that there exist little differentiation in spite of price (Dibb Simkin 2004). For handling this rivalry and growing in international markets the company should expand its operations in more and more developing nations. Buying power: In the market Vodafone is operating buying power is quite high and it could be understood with the measures of number of customers that disconnect throughout a year. This also depicts that rivalry in industry is high. Customers have several choices and new packages in regard to new tariffs and new phones (Hitt, Ireland Hoskisson 2009). For surviving in this kind of market it is vital to have continuous upgrade and expansion in developing countries for maintaining company position at global level. Power of suppliers: In addition to high buyer power, the telecommunication market also operates with strong suppliers power. In this regard, as Vodafone is a cost leader, it operates with margins higher than their competitors. This assist it to attract price increases from its suppliers more comfortably than its competitors (Dibb Simkin 2010). Being an extensive, leading competitors of the mobile telephone industry, Vodafone is able to hold its supplier cost down and attain profit but this situation would not remain in long-term if company is not able to main its position in global and international markets. For this it is vital to enter different developing countries. Threat of substitutes The company threat of product substitutes is low and it is due to its focussed cost leadership strategy. This strategy makes it difficult for others to produce similar products and services at a lower rate with same economies of scale (Fransman 2002). Threat of entry Although the threat of new entrants in industry is low but this situation need to be maintained by Vodafone by reducing its cost below of its competitors. This could be done by maintaining eminent level of efficiency and extending its place and position in different international and global markets (KÄÂ ±mÄÂ ±loÄÅ ¸lu, HNasÄÂ ±r NasÄÂ ±r 2010). With the help of this porters diamond analysis, it becomes evident that the most potential future strategy that can be adopted by Vodafone is expanding or concentrating more on developing countries. This analysis assists in identifying the suitability of selected potential future strategy. With this analysis it becomes evident that in present, Vodafone is able to maintain its position and attain significant competitive advantage with the help of focussed cost leadership strategy but the situation will not remain same in future. In future competition will get more intense and in that environment a firm that have strong international level presence will be able to operate. So, it is quite helpful for Vodafone to operate with a strategy of concentrating more on developing countries (KÄÂ ±mÄÂ ±loÄÅ ¸lu, HNasÄÂ ±r NasÄÂ ±r 2010). This strategy will also assist the company in increasing its profitability and cost-benefit that is related to the acceptability of a strategic option. Until or unless a strategic option s not acceptable it is not beneficial to use it. With this future strategy, the company will become able to reduce its costs and increase its benefits and shareholder value (Hitt, Ireland Hoskisson 2009). In addition to the suitability and acceptability of this future strategy, adoption of this strategy is also feasible. As in present also company is operating in several global locations so it is not so difficult for it to concentrate more on developing nations (Dibb Simkin 2004). It serves its customers with low prices that would also be beneficial for it to expand in developing nations. In this way, it can be concluded that concentrating more on developing markets is a quite effective potential future strategy for Vodafone and for its assured future success.

Tennessee Williams :: Essays Papers

Tennessee Williams Thomas (Tennessee) Lanier Williams born March 26, 1911 in Columbus, Mississippi. The second of three kids. His father a shoe salesman and his mother the daughter of a preacher. Williams lived a family life of turmoil. His family often engaged in violent arguments during his youth. Williams got his first taste of fame in 1929 when he took third place in a national essay contest. Williams started college at the University of Missouri until his father forced him to quit and go to work for his father’s shoe factory. Later Williams returned to college in 1937 and where he resumed the writing of plays. Williams had two of his plays, Candles to the Sun and The Fugitive Kind, produced by Mummers of St. Louis, and in 1938. Williams graduated from the University of Iowa. Williams then went to Chicago in search of work, failing, he then moved to New Orleans and changed his name from Tom to Tennessee which was the state of his father's birth. In 1939, the young playwright received a $1,000 Rockefeller Grant. In 1944, what many consider to be his best play, The Glass Menagerie, had a very successful run in Chicago, and a year later worked its way onto Broadway. People think that Williams used his own family relationships as plots for the play. The Glass Menagerie won the New York Drama Critics Circle Award for best play of the season. Williams followed up his first major critical success with several other Broadway hits including such plays as A Streetcar Named Desire, Summer and Smoke, A Rose Tattoo, and Camino Real. He received his first Pulitzer Prize in 1948 for A Streetcar Named Desire, and reached an even larger world-wide audience in 1950 and 1951 when The Glass Menagerie and A Streetcar Named Desire were made into major motion pictures. Later plays which were also made into motion pictures include Cat on a Hot Tin Roof , which he earned a second Pulitzer Prize in 1955. Williams struggled with depression throughout most of his life. For much of his life, he battled addictions to prescription drugs and alcohol. February 24, 1983, Tennessee Williams choked to death on a bottle cap at his New York City residence at the Hotel Elysee. He is buried in St. Louis, Missouri. Williams play, The Glass Menagerie, is about the Wingfeild family, the mother Amanda and here two children Tom and Laura. Amanda has a life that is centered around finding a gentleman friend for her daughter Laura, a husband.

Joint optimization of mean and standard

The author suggests that through the use of pacific algorithms, business can eliminate the DNS problems, and achieve a standardization of reporting. The findings of this study are not so much to introduce an overall fix for the DNS problem, but to inform the reader about a number of mathematician who are working to introduce a â€Å"one size fits all† solution to the global optimal solution in reporting the mean and the standard deviation targets (Mourn, Niece 2003).Reference: Kooky Mourn, Niece Diagonally. (2003). Journal of Quality Technology. Joint optimization of mean and standard deviation using response surface methods: http://search. Protest. Com. Explore. Bibliography. Mom/deceive/214494399 Joint optimization of mean and standard By affiliate entered wrong, or the deviation to large or small.The purpose of this article is to investigate the potential, and problems, with the dual response system (DRY), study, the author explores the use of each system and the inherent p roblems that deviation below a specified value. This one shot approach is acceptable, but this are using the DRY to obtain more flexible information access. One of the approaches is to use a nonlinear multiplicative programming technique that uses the NIMBUS software and Solver in an Excel spreadsheet to acquire simultaneous solutions to the

Macroeconomics Equilibrium GDP

1. Move the green pointer on the horizontal axis to an income level of 430. Then click on the â€Å"income adjustment† button. What happened? Why did income return to equilibrium at 470? The GDB rises to restore equilibrium. This is because at GDP=430, the aggregate expenditures is higher than production. This is a state of imbalance so that production opportunities will rise to match the total spending. 2. Move the green pointer on the horizontal axis to an income level of 510. Then hit the â€Å"income adjustment† button. What happened? Why did income return to equilibrium at 470? GDP decreases to restore equilibrium. This is because at GDP=510, production is higher than aggregate expenditures. This means that there will an excess in production. The excess will force production to reduce to maintain profitability until equilibrium point is achieved. So GDP will always return to equilibrium point of 430 where aggregate expenditure equals production. 3. What happened to Income in Chapter 10 exercise when Investment was increased? Income also increases as indicated by GDP line at 6000. 4. Explain why the resulting increase in equilibrium Income was greater than the change in Investment spending. Investment will produce some level of gains or in numbers this is a multiplier. This gain (multiplier) is what causes the GDP change in equilibrium to be higher. 5. Give three real-world forces that could cause a â€Å"shift in Aggregate Demand.† 5.1 An increase in consumption will increase the Aggregate Demand. 5.2 An increase in government expenditure will increase the Aggregate Demand. 5.3 An increase in net export will increase the Aggregate Demand. 6. Give three real-world forces that could cause a â€Å"shift in Aggregate Supply.† 6.1 An increase wages and salaries will increase the Aggregate Supply. 6.2 Education and Training will shift the Aggregate Supply. 6.3 Research and Development will shift the Aggregate Supply. References C. MacConnell, S. Brue (2005). Economics: Principles, Problems, and Policies, 16/e. Graphing Exercise: Equilibrium GDP (Chapter 10.1). Retrieved January 27, 2007 from

The influence of gender on identity in contemporary Western Society Essays

The influence of gender on identity in contemporary Western Society Essays The influence of gender on identity in contemporary Western Society Paper The influence of gender on identity in contemporary Western Society Paper In this piece of work the ideology of gender identity in western society will be discussed, the piece will draw on the theories of multiple sociologist and examine the role of gender inequality in society. The Work will briefly examine Gender Identity Disorder and its relevance to western society today. The concept of identity is defined as â€Å"A sense of self that develops as a child differentiates from parents and family and takes place in society† (Jary Jary,1991). A person’s identity is what makes them whom they are and what groups they belong too. A person’s identity includes their ethnicity, nationality, sexuality class and gender. Our social identity is whom we are, whom we see other people are and respectively how other people see themselves and others. To sociologist the concept of identity is paramount, a person’s identity can take many facets that are ever changing, and with these changes there can be many contradictions. Many sociologists believe that identities are not simply formed because of the social groups we belong too. Some theorists believe our identities to be fractured and fragmented. Our identities can be and often are extremely stereotypical, one such stereotype is that of gender. â€Å"Gender is a term that has psychological and cultural connotations; if the proper terms for sex are ‘male’ and ‘female’, the corresponding terms for gender are ‘masculine’ and ‘feminine’; these latter might be entirely independent of (biological) sex. (Stoller, 1968, p.9) To elaborate, it is not necessarily right to say that being female means they will be feminine and aversely being male does not make them masculine, girls are not necessarily compassionate or caring; boys are not necessarily competitive and aggressive. There are many differences between men and women; many contrasting approaches have been developed for the understanding of gender identity and the social roles based on such diverse identities. A difference between sex and gender must be understood. To clarify the difference between males and female sociologists use sex to show anatomical and physiological differentiation, by contrast gender concerns the social, cultural and psychological differences between men and women. Gender is socially constructed; a man is seen as masculine and women seen as feminine; these assumptions are not a direct link to a person’s reproductive biology. Many theorists argue that many aspects of human biology ranging from hormones and chromosomes and even genetics; the size of the brain is in some way responsible for the innate differences in the behaviour of males and females in the development of identity. If the definition of gender identity is to be either male or female, include inherited sex chromosomes at conception and the release of hormones during the foetal process can be used to determine the factors of gender identity. This is clearly simplistic and can be flawed. Genetics does not answer the question of how a person’s gender identity can change over time. â€Å"Two of the leading theories to explain the formation of gender identities are concerned with the emotional dynamics between children and their caretakers, according to such views gender differences are formulated ‘unconsciously’ during the early years of life, rather than resulting from a biological disposition.†(Haralambos p.110) Freud’s(1905) theory perhaps the most influential yet controversial suggests that gender is learnt and is the result of the absence or present of a penis; Freud is cautious when suggesting this and insists this is not just an anatomical distinction that matters; the penis is symbolic and divers to the persons gender. Masculinity –v- Femininity. Chodorows (1978, 1988) concepts of gender development adopted the strategy of Freud although argued that learning to be female or male derives from childhood and the development of attachment to the parents at an early age. It does not recognize the emphasis on the penis as the mother is the principal attachment in he early years this must be broken for the child to achieve a sense of a separate self. Chodorows has suggested that this breaking process is different for both boys and girls, girls remain closer to their mother and able to show emotion, love, hugging and kissing and imitating her mothers actions. Because there is no definite break the girl and later in life, women, develops a sense of self that continues with other people, and her identity is more dependent on others. Boys, on the other hand, have to develop their sense of self by a more drastic and radicle break, he must reject his mother in order to gain a sense of masculinity. As a result of this break, boys are less skilled in relating closely to others, this produce the man to have a more analytic view of the world and repress their own feelings and those of the world. Gender inequality and the patriarchy system stand hand in hand, Walby (1990) said â€Å"patriarchy is indispensable for analysis of gender inequality â€Å"(Haralambos. P112) In defining patriarchy, we can understand the treatment of women throughout ages and how it has moulded their success and future in life. Patriarchy not only explains how our society functions in the world as a whole and our modern western society but how it controls women. Patriarchy is a control by men. The opposite of patriarchy is matriarchy this means women are dominant and the head of families. Obviously, the culture of Great Britain and most other countries is patriarchal. Men are dominant and have the power and control the women. Consider the basics of how our society functions ! Most women in western society have to fight for their rights and sometimes can be seen to struggle just to survive without the domination of men threatening them. Whether an individual woman wants to overcome patriarchy will come from her strong inherent desire to be independent. Pollert (1996) commented that those sociologist who have rejected the concept of patriarchy have turned to postmodernism. Pollet does not agree with postmodernism. It has, in recent years become an influential approach to gender identity and sex. Barret and Phillips (1992) suggest that because of dissatisfaction of general characteristics of traditional male dominated social science new feminisms have developed; i.e. Women have developed a range of new female identities. Feminists have always been doubtful of theories developed by men, although in the past socialist and liberal feminists have embraced aspects of male theories. The certainties of the Marxist, liberal and radical feminists developed in earlier decades are no longer uncritically accepted. Harriot Bradley (1997) disagrees that neither postmodern or modern conceptions of identity are sufficient on their own. She comments â€Å"A key objective is to pull together classical or modernist approaches to understanding inequalities with he newer perspectives inspired by postmodernism and poststructuralism†. (Haralambos, p702). Bradley believes that in contemporary western society stratification systems and identities are becoming fragmented and polarised. Stuart Hall (1992) theorised on three stages of identity, one of these stages was that of Enlightenment. The enlightenment theory recognises that each person’s identity is unique and that a person’s identity could not be broken down or made into something bigger. Halls ideology can be linked with that of Descartes (1596-1650). He believed that humans were divided into two parts; mind and body or a dualistic conception, everyone has a separate mind. Descartes said â€Å"Cogito ergu sum† I think therefore I am. This meant that a person was free to be as he felt without the boundaries of society or tradition. Both postmodernists and feminists question Enlightenment thinking as they do not believe that male rationality is inadequate for understanding the western social world. Ann Oakley (2002) has developed a global perspective on the impact of global gender inequalities. She suggests that patriarchy has an impact on the social world as a whole and not just in gender inequality, she draws her ideas from several types of feminism, she is decidedly dismissive of postmodernism. She believes that postmodernism wraps intellectuals in cotton wool and isolates them from critical social debates. Oakley denies that men are biologically born aggressive, and many men opposed to violence. She does not believe that one gender should be dominant but does suggest that the system of patriarchy should change within western society. Oakley has a structural view of society, and that believes that both men and women collude to maintain the gender/sex system, however the position of men and women in the system is not equal; men do have more power than women. Oakley agrees that significant steps have been taken in regards to womens rights and that some forms of gender inequali ty are in decline in, western society, women are not restricted in education, property ownership or whom they can marry. Gender socialisation assists in the understanding of studies of gender roles and how agencies such as family and the media play an inherent role in such socialization. This approach suggests a distinction between biological sex and social gender; a child is born with the first and develops the second by contact and interaction of social agencies. Children will internalise gradually to the expectations and social norms dependent on its biological sex. Gender inequality is the result of males and females being socialized into certain roles. Campbell (1993) suggested a link in the changing role of men in western society. In the past, a young man was expected to be the bread winner, have a clear set of goals for life such as a legitimate job, a wife and a family. The role of bread winner is now under stress particularly for men in more under privileged areas, in these areas only long term unemployment is an option and the means to support a family are less likely. Women have become more independent and do not require the support of a man to reach a status in a wider society in the social western world. In 1997, it was requested that the diagnosis of gender identity disorder was removed from the DSM IV (Diagnostic and Statistical Manual of Mental Health) because it â€Å"implicitly labels homosexual boys as mentally disordered† (Isay.1997) Isays opinion was that the constructs of sexual orientation and gender identity are isomorphic. Many people with gender identity disorder became socially isolated, whether by choice or by ostracization, thus bringing on low self-esteem, depression and suicide. Peer ostracism and teasing are remarkably common for boys with the disorder in the education system. The requirements for Gender Identity Disorder (GID) to be diagnosed are exceedingly complex; the person must repeatedly state the insistence of wishing to be the opposite sex; refusal to wear stereotypical clothing; constant fantasies about being the opposite sex; the list is endless and no way exhaustible. The diagnosis of GID can take a minimum of two years. The generation in which we live today accepts boys whom openly dress up in clothes normally associated with girls. In an interview by fox news (2011) Dr Keith Ablow cautioned parents on allowing their children to watch transgender Chaz Bono on ‘Dancing with the stars’ for fear that their children would be influenced to swap gender. If the word of such people was adhered to the subject of gender identity would make it a flimsy susceptible construct, the choice between a rare steak and a fairy cake. This shows that, in some cases gender identity is not understood or accepted in western society by all. In conclusion, the gender identity of a person is a direct result of gender role socialisation, unlike a person’s sex which is biological. There are many differences between men and women; many contrasting approaches have been developed for the understanding of gender identity and the social roles based on such diverse identities. The enlightenment theory recognises that each person’s identity is unique and that a person’s identity could not be broken down or made into something bigger. Most women in western society have to fight for their rights and sometimes can be seen to struggle just to survive without the domination of men threatening them. Whether an individual woman wants to overcome patriarchy will come from her strong inherent desire to be independent. Patriarchy not only explains how our society functions in the world as a whole and our modern western society but how it controls women. Walby (1990) said â€Å"patriarchy is indispensable for analysis of gender inequality.†

Ortiz Surname Meaning and Origin

Ortiz Surname Meaning and Origin The name Ortiz is a patronymic surname meaning son or Orton or Orta, with its origin in Spanish. Ortiz is the 94th most popular surname in the United States and the 16th most common Hispanic surname. Alternate Surname Spellings: Ortize, Ortez, Ortaz, Ortes, Ortis Famous People with the Surname ORTIZ: David Ortiz - Major League Baseball Player.Victor Ortiz - professional American boxer.Russ Ortiz - Major League Baseball Pitcher.Tito Ortiz - MMA (Mixed Martial Arts) Fighter. Genealogy Resources for the Surname Ortiz Genealogy.com allows you to search the popular genealogy forum for the Ortiz surname to find others who might be researching your ancestors, or post your own Ortiz query. With FamilySearch.org you can find records, queries, and lineage-linked family trees posted for the Ortiz surname and its variations. RootsWeb hosts several free mailing lists for researchers of the Ortiz surname. Cousin Connect  allows you to read or post genealogy queries for the surname Ortiz, and sign up for free notification when new Ortiz queries are added. DistantCousin.com provides access to free databases and genealogy links for the last name Ortiz. References Cottle, Basil. Penguin Dictionary of Surnames. Baltimore, MD: Penguin Books, 1967. Menk, Lars. A Dictionary of German Jewish Surnames. Avotaynu, 2005. Beider, Alexander. A Dictionary of Jewish Surnames from Galicia. Avotaynu, 2004. Hanks, Patrick and Flavia Hodges. A Dictionary of Surnames. Oxford University Press, 1989. Hanks, Patrick. Dictionary of American Family Names. Oxford University Press, 2003. Smith, Elsdon C. American Surnames. Genealogical Publishing Company, 1997.

Analisis Bimbo

Grupo Bimbo: Growth and Social Responsibility The most important thing in a firm is its people, because investors give what they have, but people give what they are. — Lorenzo Servitje, Grupo Bimbo founding partner By 2008, Grupo Bimbo was the leading baking company in the Americas and one of the largest in the world. It had annual sales of over $7. 4 billion, more than 100 brands and more than 97,000 worldwide associates—as Bimbo liked to call its employees. It manufactured more than 5,000 SKUs (stock keeping units) from 83 plants located in Mexico, the United States, Central and South America, Europe and Asia. Bimbo distributed its products to more than 1 million sales outlets in 18 countries. Each of these points of sale was visited by more than 36,000 route salespersons. Its products ranged from sliced bread, buns, cookies, snack cakes, pastries, sweet baked goods, packaged food, tortillas, salted snacks, confectionary goods and goat milk sweet or â€Å"cajeta,† among other products. Bimbo was the largest Latin American-based food company and the second largest bread company in the world. For eight years in a row, Bimbo had been honored with the Socially Responsible Enterprise Award from CEMEFI, the Mexican Center for Philanthropy. Moreover, Grupo Bimbo was ranked in the 9th position of the Reputation Institute for best corporate reputation in the world. 1 The next Mexican ranked firms in the study were Grupo Modelo and Cemex in the 112th and 119th spot, respectively. Grupo Bimbo had set ambitious growth objectives beyond 2010. It wanted to become the world leader in the baking industry and one of the best food companies in the world. In order to achieve those objectives, it had embarked on an aggressive program of acquisitions in overseas markets, starting with the United States across the border, and going all the way to China. Even as we pursue an ambitious growth agenda, we cannot forget our core values and who we are as a company,† stated Don Lorenzo Servitje, the now retired 90 year old founder of the company. As Figure 1 shows, Bimbo captured its core values along the seven attributes of passion, profitability, effectiveness, team work, trust, quality, with the â€Å"person† coming at the ce nter. Under its second CEO, Roberto Servitje (now chairman of the board) and its current CEO, Daniel Servitje, the company had grown spectacularly and gained an international footprint. See Exhibit 1 for its revenue growth. â€Å"Yes, indeed we have grown ur business, not at the cost of our responsibility to society, but because of our investments in it. Going forward, however, we are a far more complex company than the one founded and 1to ensure that our values and strategy are in alignment,† asserted Daniel Servitje. Figure 1 Source: Grupo Bimbo. (In the figure above, the expression â€Å"efforts and illusions† under â€Å"profitability† is best interpreted as â€Å"efforts and aspirations. †) Mexico By 2008 Mexico was the second most populated country in Latin America (behind Brazil) with 105. 7 million inhabitants, 76% of them living in urban areas. In 2007 Mexico’s Gross Domestic Product (GDP) was $893. 4 billion –-the second largest in Latin America behind Brazil’s GDP of $1,286. 7 billion but ahead of Argentina’s $262. 3 billion, Venezuela’s $228. 1 billion and Colombia’s 2 Instituto Nacional de Estadistica, Geografia e Informatica, INEGI, www. inegi. gob, last viewed August 11, 2008. 2 Grupo Bimbo: Growth and Social Responsibility 509-025 $172 billion. Mexico was the 14th largest economy in the World. 3 Mexico’s GDP per head in 2007 was $8,219. However, Mexico was a country of contrasts: the lowest 20% of the population accounted for only 3. % of total income and the Gini coefficient was 0. 508. 4 Forty percent of Mexico’s population was considered poor, and 18% lived in extreme poverty. 5 Due to deficiencies in the public education system, the unskilled and low skilled labor pool was large and around 40% to 60% of the workforce worked in the informal sector. Mexico was ruled for 71 years by one single party, the Partido Revolucionario Insitucional, or PRI. The PRI led Mexico through a stabilizing development from 1958 to 1971 where the country industrialized and GDP grew at annual rates of 6%. From the 1970’s to the end of the 1980’s the PRI policies became very nationalistic and interventionist. This period was characterized by high inflation rates and frequent financial crises, where GDP plummeted, real incomes dropped, with high external debt and soaring interest rates. During this period, Mexico’s economy was heavily dependent on oil exports. In the 1990’s the PRI embraced free market and liberalization policies that included privatization of hundreds of state-owned firms, trade liberalization that culminated in the North American Free Trade Agreement, NAFTA, in 1994, and deregulation of various industries. After NAFTA, Mexico’s economy diversified and changed from being dependent on oil exports to manufactured goods exported mainly to the United States. After the Tequila crisis that started in 1994—where GDP plummeted 6. 2% in real terms and inflation rose above 52%—the PRI was historically defeated in the year 2000, and since then two presidents from the Partido Accion Nacional (PAN) had been in power: President Fox from year 2000 to 2006 and Felipe Calderon—who by 2008 was in his second year of presidency. Despite high hopes for President Fox’s administration, his political effectiveness was severely hindered by a divided congress, and economic reforms that were needed to improve the competitiveness of the country, such as fiscal and energy reforms, were not able to pass through Congress. Felipe Calderon, at his second year of term, faced similar obstacles. He proved to be a better negotiator than President Fox. His administration had been able to pass pension reform and a mild fiscal reform. However, one of the most important reforms needed for boosting Mexico’s competitiveness and growth—energy reform—had not been able to pass. High energy costs—along with high labor costs—were limiting Mexico’s ability to compete with other exporting countries such as China. Strengthening of fiscal and monetary policies since the end of the last century had translated into macroeconomic stability but growth was not catching up with the country’s needs. Average annual growth rates since year 2000 had been 3%, insufficient to alleviate poverty and reduce inequality. 6 Constraints for growth were high-cost labor and energy inputs, a weak non-oil tax base, continued dependence on US markets for exports, weak skill base and a shallow credit market. Calderon was struggling to pass the energy reform but it was hard to boost growth given high input costs and Mexico’s dependence on the slowing US economy. 3 World development indicators database, World Bank, July 2008, www. worldbank. org last viewed August 12, 2008. 4 Source: World development indicators, www. worldbank. org, last viewed 8/13/2008 and Mexico Country Profile, Economist Intelligence Unit. A high Gini coefficient indicates a high level of income inequality, 0 corresponds to perfect equality and 1 to perfect inequality with one person having all the income. Worldwide Gini coefficients range from 0. 49 in Japan to 0. 707 in Namibia (www. wikipidia. org last viewed 8/13/2008). 5 Mexico Country Brief, World Bank, www. worldbank. org, last viewed August 13, 2008. 6 Source: Banco de Mexico, www. banxico. gob, last viewed August 13, 2008. 3 509-025 Grupo Bimbo: Growth and Social Responsibility Grupo Bimbo: History The Servitje family started doing business in the baki ng industry early in the 20th century. When Lorenzo Servitje was 18 years old, his father—who had a well-known bakery called El Molino—died from a stroke. Lorenzo had to leave behind his accounting career in order to attend to his father’s bakery. On taking over, Lorenzo wanted to make the bakery something bigger and more ambitious. He wished to start a bread production and distribution business. On December 2, 1945, Bimbo was founded. It had five founding shareholders, all family members: Lorenzo Servitje and his younger brother Roberto Servitje among them. The logo, the Bimbo bear, was drawn by the wife of one of the founders. Bimbo started with only one brand, 38 workers, and 10 trucks to deliver the bread made in one plant in Mexico City. The first products were white boxed bread and toasted white bread. The production process was completely manual and rudimentary. Bimbo bread was quickly accepted by Mexico’s households because it was packed in transparent cellophane paper—instead of the traditional wax paper—which kept it fresh and also because its quality was easily seen. Another key to Bimbo’s success was its huge publicity campaign in newspapers, radio and the movies. Never before had so much been paid to publicize bread. 7 In the next few years, Bimbo quickly incorporated more products into its product line, such as whole wheat bread, sweet breads, cakes and sweet loafs. Its distribution network, however, only reached Mexico City and cities nearby. To reach other cities, Bimbo expanded its distribution system in a way similar to how newspapers were distributed at the time. By 1956, Bimbo had commissioned its first plant outside Mexico City. Having successfully built the company from scratch, in 1963, Don Lorenzo Servitje took on the role of CEO of Grupo Bimbo and his brother, Roberto Servitje, became CEO of Bimbo breads division. Over the next 15 years, the two brothers rapidly grew Bimbo’s sales to $425 million and 16,125 associates. At the beginning of the 1970’s, Bimbo opened the largest bread factory in Mexico and Latin America and one of the 10 largest factories in the world. In this factory, bread production was completely automatic. The factory produced one-and-half, big boxed bread, per second, which was completely unprecedented in Latin America. In 1979, Lorenzo Servitje handed over Grupo Bimbo’s presidency to his brother Roberto and he assumed the chairmanship of the board. In 1980, Bimbo went public with 15% of its stock in the Mexican stock exchange. The company was then valued at $12. 5 million dollars. The successful IPO gave the company confidence to expand into the United States. Bimbo sent its first trucks with bread to the U. S. to explore the possibility of catering to a burgeoning population of Hispanic consumers just north of its border. Satisfied with the existence of demand for its products, in 1987 Bimbo started to distribute products in Houston and Los Angeles. By the end of the decade, Bimbo had expanded to Central and Latin America as well. In 1997, Daniel Servitje, Lorenzo’s son, at the age of 39 with an MBA from Stanford University, became CEO of the group and continued to lead Bimbo’s internationalization effort through important acquisitions. Roberto Servitje took on the chairman’s position and Lorenzo stepped down from all formal positions. Daniel Servitje continued with the growth strategy of his predecessors, and in the year 2000, Grupo Bimbo expanded to Europe by acquiring two plants –one in Austria and the other in the Czech Republic- and in 2001 it expanded into Brazil. See Exhibits 2 and 3 for the company’s historical financial performance, and regional indicators. By 2007, the company had a sales turnover of Ps 72,294 million (or $6. 65 billion) and a net 7 â€Å"Bimbo: A 60-year History of Believe and Create† Source: www. rupobimbo. com. mx/admin/content/uploaded/Historia% 20Grupo%20Bimbo. pdf. Last viewed: July 8th, 2008. 4 Grupo Bimbo: Growth and Social Responsibility 509-025 profit of Ps 3,914 million (or $360 million). 8 Of its total sales, 67% were in Mexico, 22% in the U. S, and 11% from twelve Latin American countries. While Roberto Servitje at age 80 served as the chairman of t he board, Lorenzo Servitje at age 90 was still active in its social responsibility affairs. Products and Brands Through the years, Bimbo grew in its bread production and also added many new products and brands. With nearly 5,000 items in its portfolio, and the nearly 100 new products being added every year, the company offered something for every taste and every occasion. Many of these additions came through acquisitions of different firms and brands. Its Bimbo bread division was undoubtedly the flagship of the company, accounting for nearly 50% of all its revenues. Of its main brands, Marinela produced all sweet breads, buns and cakes. Its star product was the â€Å"gansito† or â€Å"little duck,† which was a cake filled with marmalade and covered with chocolate. By 1975, one million â€Å"gansitos† were sold daily. Barcel started off by producing candies, but by 1977 it had begun to produce a wide range of salted snacks. Production of candies was transferred to a new firm called Ricolino. By 2007, Bimbo dominated the market in the packaged bread segment in Mexico. In the salty snack category, Barcel was second to its main competitor Sabritas, owned by PepsiCo. Other important brands were Tia Rosa, which produced specialty sweet breads and flour tortillas, Milpa Real, which produced corn tortillas and Lonchibon, which made ready-to-eat food and snacks. Most of Bimbo’s internationalizations efforts were carried out through local acquisitions. Bimbo looked to acquire firms in regions and segments that provided a platform for growth. It also looked for strong brands that were complementary to its existing portfolio of products and brands, and also provided opportunities that could enable Bimbo to scale up and achieve cost savings. Exhibit 4 provides a summary overview of its various brands, the associated product lines, and their country of operation. Sales and Distribution System Bimbo had one of the largest and most complex distribution networks in the country—second only to Coca-Cola. With time, Bimbo’s distribution system had become more sophisticated and larger but qualitatively, it was essentially the same as when Bimbo started 63 years ago—products were delivered fresh directly from Bimbo depots to the retail store, there were no intermediaries in between. Bimbo products were distributed in to three different channels: supermarkets, convenience stores and through what was called the detail channel to mom pop stores (MPs). The importance of the detail channel was diminishing as MPs found it harder every day to compete with expanding supermarket chains and convenience stores that offered other services such as ready-to-eat food. In the last 10 years, the supermarket chains had grown considerably and the traditional MP channel was losing share (see Exhibit 5). Convenience stores especially, were showing strong growth as they expanded into suburban and rural areas. Moreover, large chain retailers such as Wal-Mart and Chedraui were offering banking services to their customers, thus making it harder for MPs to compete. The total grocery retail market in Mexico was estimated at $125 billion in 2007. 9 8 Foreign exchange as of December 28, 2007 was 10. 8662. Source: Diario Oficial de la Federacion. www. dof. gob. mx. Last viewed July 3rd 2008. 9 â€Å"Retailing Mexico: Country Market Insight,† Euromonitor International, May 2008 and â€Å"Top 5 Retailers in Mexico,† Planet Retail, September 2008. 5 509-025 Grupo Bimbo: Growth and Social Responsibility All Bimbo products—from all brands and from all plants—were taken to depots from where they were distributed to all channels. In Mexico, around 40% of Bimbo’s total workforce consisted of route-sales associates. Its flagship brand, Bimbo bread, was distributed in large trucks serving metropolitan cities and towns. The rest of the brands were distributed in smaller trucks by independent sales forces. The distribution system was highly programmed. A handheld computer contained all the information on customers, their average orders, product assortments, and their detail route. That information was synchronized with Bimbo’s server at the end of each day. Mexico has nearly 1 million sales outlets, of which Bimbo reached nearly 750,000. Salesmen arrived at the depot around 6:30a. m. to load their trucks. Thanks to the handheld, they knew which products to load depending on the routes they were assigned that day. Trucks were randomly inspected to cross-check the information in the handheld with the actual physical stock in the truck. Salesmen started their routes around 7:00a. m. At each sales point, salesmen delivered products that they booked and took back products before their â€Å"shelf life† had expired. This practice was necessary to insure that consumers had access to fresh product in the market at all times. All sales information was entered into the handheld for control of daily sales. At the end of their route, salespeople returned to their appropriate depots, where stocks were checked and the recalled products were readied to be sent to an â€Å"expendio† or discount store. Salespeople had sales’ goals that they could attain through increasing sales in each store or increasing the number of clients in their â€Å"route. † Daily wages to salesmen consisted of a base salary plus commission, which was a percentage of their daily sales. Commission, on average, was more than double the base salary. On average, a Bimbo salesperson earned slightly more salary than the one usually offered by food industry for similar positions. The traditional or detail channel was the most important channel for Bimbo because it represented its largest source of sales. Bimbo supervisors were always trying to encourage their team to expand their sales points to include nontraditional outlets such as gas stations, beauty parlors, internet cafes, among others. A large fraction of low-income people, who lived in rural areas or small towns, depended on the traditional MPs to buy their groceries. 0 See Exhibit 6 for a view of three semi-urban outlets. MPs usually sold at higher prices than supermarkets but lower than convenience stores. Most MPs had a very close relationship with their clients who often relied on the credit given by the store owner for their purchases. Most of the time customers cleared their accounts by pay day. Such credit was usually not offered by convenience stores or supermarkets. In spite of its service levels, the traditional channel was slowly disappearing. It was becoming increasingly difficult for the small MPs to compete with convenience stores and supermarkets. Their stores were smaller, the product range more limited, and the layout and management of the stores less professional. MPs had to pay for most of their inventory in cash. They received almost no credit from suppliers—some distributors such as Coca Cola, Sabritas (PepsiCo. ), had only recently started to offer credit to MPs. Moreover, because their purchase volumes were relatively smaller, they received no quantity-discounts such as those offered to convenience stores and supermarkets. As a response to the needs of the MPs but also as a way of maintaining Bimbo’s most important channel, in 2004 Bimbo initiated a bold new program called â€Å"Pesito. † 10 From field visits, the case writers estimated their size to be about 250 to 500 square feet. The owners reported average daily sales of between $200 and $450, of which sodas, juice and water accounted for 50%, food-30%, and tobacco-20%. Larger stores also carried cleaning and some health and beauty products. Some carried beer. Margins varied widely by product, averaging about 20%. 6 Grupo Bimbo: Growth and Social Responsibility 09-025 Pesito During the course of their daily route selling, salesmen offered credit on purchases of Bimbo products. Store owners wanting the credit paid a flat fee of 2 pesos (20 cents) regardless of the size of the order placed. The sales person entered the credit information on to his handheld so the record of each credit could be uploaded into Bimbo’s central system once the sales person ended his daily route. At the next visit to the store—which could be anytime between two days to one week, the store owner had to pay the credit to the sales person. The sales person would then give the store owner a receipt, which was printed from the handheld and the transaction was closed. If the store owner was unable to repay the credit, for a payment of 2 pesos the credit could be rolled over, but no new transactions would be made. Many Bimbo clients recognized that â€Å"Pesito† was a way to increase their income, without having to invest in inventory, helping them to grow their business. Consequently the default rate was very low. Bimbo had different sales forces for different brands, thus there were separate Pesito programs for each brand. For example, a store could have outstanding credit with Bimbo, Marinela, Tia Rosa and Barcel. The store would appear in the Pesito accounts under four different identifiers. There were limits to the amount of credit that a sales person could give per client, in most cases the equivalent of one week’s order; and then there were overall limits per route as well. Through steady efforts by Grupo Bimbo’s route sales people, approximately 350,000 of the small store owners participated in the Pesito program and paid on time, and Bimbo’s goal was to further increase that in the coming years. Microfinance for Store Owners Don Lorenzo Servitje had, among many other of his social concerns, the idea of helping the poor through micro credits. Don Lorenzo was particularly interested in the MPs store owners because, through Bimbo, he had noticed how they lived day by day solely with the income from their store. They had no health or life insurance and Don Lorenzo noticed how many times MPs had to close due to sickness or death in the family. Store owners also had no access to the formal financial system so they had to rely on money lenders, especially to make capital improvements in the store. They seldom had resources to invest in their store to make it more productive or more attractive to customers for example by installing new equipment, refrigerators, meat cutters, or a PC to access the internet. Thus in 1994, Bimbo started an alliance with Fincomun, a microcredit institution with the goal of providing further financial services to its MP clients. The loan process with Fincomun was simple. A Bimbo salesperson could recommend a client to Fincomun. Bimbo salespeople knew their clients quite well, their business model, their cash flow, and their credit reputation. If the client accepted the offered credit, Fincomun agents visited the store and gave them a check that could be cashed at a bank. If the Bimbo sales person assisted in the follow-on collection, they were paid a small fee for the effort. Only a very small proportion of Bimbo’s clients, however, were Fincomun customers (less than 5%). By June 2008, Fincomun also offered Life and Hospitalization insurance and had 400 clients in the pilot stage of the insurance program. History of Bimbo’s Corporate Social Responsibility From its very beginnings, Bimbo prided itself on its commitment to social causes and Mexico’s development. In 1954, not even 10 years after its founding, Bimbo opened a school for workers’ 7 509-025 Grupo Bimbo: Growth and Social Responsibility children. Since then, a percentage of Bimbo’s pre-tax profits were earmarked for social and educational causes. â€Å"I wanted to dedicate myself to something more than just making cakes and bread. I aspired to serve others,† Don Lorenzo was reputed to have said in a newspaper interview. 11 Even in hard times, Bimbo had avoided firing people and reducing the CSR budget. Roberto Servitje used to say, â€Å"Entrepreneurs are meant to create and grow, not to destroy. Over time, Bimbo’s portfolio of CSR programs had grown both in size and in sophistication. At the beginning, the programs were more geared internally, toward Bimbo’s associates. Over time, they expanded externally as well. Bimbo’s CSR programs were divided into a matrix (for a detailed description of programs see Exhibit 7). Daniel Servitje asser ted, â€Å"Our CSR programs are divided into six categories that overlap with each other. We have internal and external programs, and then we have economic, social and environmental programs. When Bimbo was founded, CSR was neither structured nor formal. It was something that we did because we believed in it; because the values of social awareness were embedded in all of us since we were children. † Martha Eugenia Hernandez, head of institutional relations and CSR and who had been at Bimbo since 1981, recalled â€Å"Don Lorenzo used to say, ‘Your left hand should never know what your right hand is giving. ’ And that was the philosophy behind CSR at that time; it was low key. † Roberto Perez Gomez, head of labor relations and a 20-year-old veteran of the company added, â€Å"With Don Lorenzo, Bimbo was a small and privately held firm; contact with associates was very personal. Even though Bimbo has grown rapidly and is now a public company, the social responsibility philosophy is still the same. Contact with associates is still personal. Daniel Servitje visits each plant every year and has annual meetings with associates of different areas. † The company’s CSR budget was determined as a percentage of its profits. This percentage was decided by a CSR committee comprised of five members of the board. The committee also decided which programs to support and to what amount. The profit percentage varied from year to year, and was determined independently for each country. Bimbo’s CSR programs were divided into four areas of commitment: Employees or Associates, Health, Environment, and the Community. Associates Since the beginning, one of our greatest concerns was our relationship with associates. We wanted people to work happily, we wanted them to identify with the company and we wanted them to be respected, having a non instrumental view of people; we wanted relations with personnel to be harmonious and cordial. With the years, the view of a highly productive firm that could also be a profoundly humane company consolidated. Profit sharing with our associates was higher than that required by law and many of our associates purchased shares with their monthly savings. 12 (Don Lorenzo Servitje13) 11 â€Å"Lorenzo Servitje: Sonar y Realizar,† Reforma, Club section, May 16, 2008. 12 Legal profit sharing in Mexico was 10%. Profit sharing in Bimbo was linked to productivity and could go from 11% to 13. 5% of profits depending on the results of the company. Source: Company information. 13 â€Å"Bimbo: A 60-Year History of Believe and Create. † Source: www. grupobimbo. com. mx/admin/content/uploaded/ Historia%20Grupo%20Bimbo. pdf. Last viewed: July 8th, 2008. 8 Grupo Bimbo: Growth and Social Responsibility 509-025 In 2005, Bimbo hired a Canadian company to analyze Bimbo’s competitive advantages. They concluded, â€Å"We have analyzed their technology. They have the best in the world. They are leaders in the markets where they are present and have a great distribution network. However, what strikes us the most is that people are committed far beyond what is normally seen in other companies. People identify with the company. We see all workers, at all levels, seeking to give the best in them. That is what truly makes them special. 14 Bimbo was rated one of Mexico’s best places to work during the last eight years. In September 2008, Grupo Bimbo as a whole had more than 97,000 associates, of which around 60,000 worked in the baking division in Mexico. Around 25% of them were international associates and 13% were women. Right from the beginning, Bimbo’s top management did not merely perceive t heir associates as a labor resource, but rather as people who were partners in Bimbo’s mission to create value. They were treated with care, and provided opportunities to grow and learn and advance their quality of life. Grow and innovate was the motto driving Bimbo’s relationship with its associates. Javier Millan, head of Human Relations, put it simply: â€Å"Our competitive advantage lies within our values, outstanding among which is the person. Viewing a person as an individual is the small difference that makes all the difference. Once they are treated that way people get involved, they become interested in the company’s objectives. † Bimbo’s programs for its associates were divided into two areas of support: economic or development. Within economic benefits, Bimbo had health assistance, support for home improvement, and help with wills and deeds. It strongly encouraged long-term retirement savings among its associates. Roberto Servitje said: â€Å"What you truly gain is what you save and invest. † Under personal development, Bimbo offered its associates various courses that covered much more than just training for the workplace. Many courses addressed personal development opportunities such as, improving communication skills, raising healthy families, and so on. There were also educational offerings that enabled associates to complete a high school program, online and on-site English proficiency courses, and a mandatory course on how businesses work and contribute to the economy (to see a description of Bimbo’s programs for its associates, see Exhibit 8). Roberto Servitje said, â€Å"The firm is what its people are, and the people are what their leaders are. † From among the many benefits provided to associates, the health and education offerings were highly valued. Mexico’s public health system was known to be inefficient. It often took long hours to be seen by a doctor and receive treatment, and many visits to the doctor before one could see a specialist. Moreover, few people had access to preventive medicine. Bimbo tried to bridge the gap by providing free complete medical exams to all associates over 40, once a year preventive medical exams for cardiovascular illnesses at Bimbo facilities and follow-up checkups for those identified as needing further monitoring and care. All Bimbo associates were covered by the Mexican government’s health plan, to which Bimbo made a contribution, as did the associates through payroll deduction. In order to enable its associates circumvent the poor system of public care, Bimbo made available its facilities for the government to operate its clinics. Because of their location most of these operated as exclusive clinics for Bimbo employees. Moreover because these clinics were on Bimbo premises, the company was able to offer better infrastructure than what would normally be available to such clinics. 14 â€Å"In Grupo Bimbo, People Make the Difference,† presentation given by Javier Millan, head of Human Relations, 2007. 9 509-025 Grupo Bimbo: Growth and Social Responsibility Health and Nutrition Within Organization for Economic Cooperation and Development countries (OECD), Mexico had the dubious reputation of being second in obesity rankings after the United States. 15 Recent studies16 showed that obesity in Mexico within the total population had increased during the last 60 years, but that this growth had accelerated at an alarming pace in the last 20 years. Obesity growth rates accelerated 10% to 20% in children, 30% to 40% in adolescents, and 60% to 70% in adults. The increase in obesity was most worrying in children (see Exhibit 9). The same study linked the reasons for the increase in childhood obesity to changes in eating habits, to diets high in calories, refined carbohydrates and sodas, and decrease in consumption of fruits and vegetables. This same study stated that the increase in obesity was also related to a decrease in physical activity. In Mexico, the obesity risk for children 9 to 16 years old increased 16% for each hour that they watched TV or played videogames. On average, Mexican children watched TV or played videogames 4. 1 to 6. 3 hours daily. 7 To counter the varied causes of obesity, in 2007 Bimbo launched a health program called Committed to Your Health. The program had many different components roughly divided into five areas: improving product healthiness, education in health and nutrition, promotion of physical activity, research, and being an exemplary firm in terms of health and nutrition (for details of the programs see Exhibit 10). The company published Nutrinotas, which reached 1 milli on print and online subscribers, and distributed sports and nutrition materials for 21,000 students. As part of its efforts to promote physical activity, the company staged a nationwide soccer tournament for children, Futbolito Bimbo Stars. In 2007, 46,000 children aged 9 to 12 participated in the program and the winning team travelled to Venezuela for the America’s Cup soccer tournament. In 2008, more than 50,000 children attended, winning a trip to Disney World. In its 2007 annual report, the company affirmed its commitment to health: The millions of people who enjoy our products each day count on them for quality, consistency and taste. The success lies in staying attuned to consumer tastes and trends. That means enhancing the nutritional value of our products and introducing new, healthy options. In this regard we follow the guidelines of the World Health Organization on reducing fat, salt and sugar content, and decreasing portion sizes†¦We are also innovating by adding functional ingredients to numerous products, for example, to lower cholesterol or enhance mineral absorption. We have created a range of products with less than 100 calories each; and just as importantly, we are investing in mass-market educational campaigns to encourage active, healthy lifestyles. In order to create the necessary research and development infrastructure, Grupo Bimbo had built four Innovation and Nutrition Institutes (‘Institutos de Investigacion y Nutricion de Grupo Bimbo’), two of them located in Mexico, one in the United States and one in South America. 15 World Health Organization, www. who. org last viewed July 8, 2008. 16 â€Å"Obesidad Infantil,† Instituto Nacional de Salud Publica, Nov. 2006. www. insp. mx/Portal/Centros/ciss/nls/boletines/ PME_14. pdf. Last viewed July 7, 2008. 17 â€Å"Obesidad Infantil,† Instituto Nacional de Salud Publica, Nov. 2006. www. insp. x/Portal/Centros/ciss/nls/boletines/ â€Å"PME_14. pdf. Last viewed July 7, 2008. 10 Grupo Bimbo: Growth and Social Responsibility 509-025 Environment Bimbo’s programs in terms of environment protection were divided into five areas: emission reduction, saving water, saving energy, solid waste management and CSR on environmental matters through an institution dedicated to forest conservation and reforestation called â€Å"Reforestamos Mexico. † In the words of Martha Eugenia Hernandez, â€Å"we want to be a Green Company, both inside and outside. † See Exhibit 11 for the impact of its natural resource conservation effort. In 1998, Mexico suffered extensive fires in its forests; Mexico lost 800,000 hectares of forests. The government invited companies to participate in recovering lost forests. Bimbo responded speedily. Its associates raised money, and each peso donated by them was matched by Bimbo. As a result of the company’s (and its associates’) efforts, 1 million trees were planted and 8 natural areas were targeted for improvement. After that impressive achievement Bimbo’s directors decided to extend their commitment to Mexico’s forests on a more permanent basis. As a result, in 2002 Bimbo created a non-profit organization dedicated to protecting the forests and trees of Mexico and named it â€Å"Reforestamos Mexico. † The administrative costs of Reforestamos Mexico was entirely borne by Bimbo, while the costs of the various projects were shared by Bimbo and other firms such as Wal-Mart, Banco Santander, Hewlett Packard, as well as individual donors. Twenty percent of Bimbo’s saving from energy conservation was used to fund Reforestamos Mexico. All Reforestamos’ employees, including the director, were independent. Its director, Ernesto Herrera, had worked for Bimbo prior to this appointment and was passionately committed to its mission. â€Å"I have worked for the environment for 10 years. For me, Reforestamos Mexico has been a dream-cometrue. I work in something that I passionately care about, and in one of the most committed companies in the world. I envision Reforestamos Mexico expanding into Latin America and working along with some of America’s most important environmental NGOs. † From the 27 people that constituted Reforestamos Mexico’s advisory board, only 3 worked for Bimbo. In addition to its Reforestamos Mexico activities, in August 2008, Grupo Bimbo announced that it had begun the use of degradable polyethylene packaging for its products, which made it the first Mexican company to use a 100% environment-friendly material. Ramon Rivera, Operations Director of Grupo Bimbo, commented, â€Å"the products packaged in degradable wrapping preserve their freshness and all of their characteristics exactly the same as those using traditional wrapping, and therefore consumers can have total confidence that the product will continue to be exactly the same. With the technology known as â€Å"d2w,† the degradation of the plastic began as soon as its useful life was over and the plastic discarded. The plastic was programmed to be consumed by bacteria and fungi in the soil, through an additive that reduced its molecular structure. This process of degradation would take a maximum period of 3-to-5 years, in comparison to the normal process that could take as lo ng as 100 to 400 years. 18 Community Bimbo was acutely aware of its close linkages to the community, and therefore had instituted various programs in support. It worked jointly with the National Development Bank for the small and micro enterprise (Nacional Financiera or NAFIN) to help its suppliers with working capital needs. Bimbo also supported many educational programs for both its suppliers and its store owners. For suppliers, Bimbo provided a course that helped them improve their business skills. The topics included cost reduction, quality improvement, and tracking operations online. For store owners, 18 Grupo Bimbo Incorporates Degradable Packaging 100% Environment Friendly, http://www. grupobimbo. com. mx/ salaprensa/index. php? fuseaction=home. oletinlangID=2bolID=212. 11 509-025 Grupo Bimbo: Growth and Social Responsibility Bimbo developed a course jointly with local universities called â€Å"the store-owner university† or â€Å"la Universidad del tendero. † This course covered basic management tools such as accounting, marketing, customer service, operations planning and control, and some basic computer skills among other things. By June 2008, Bimbo had delivered 38 classes to almost 1,000 store owners. In 2007 and 2008, through Televisa Foundation, an institution that sought the development of children and young people of Mexico, Grupo Bimbo istributed 550,000 copies of a Values Calendar and Teacher’s Support Guide, to almost all Mexican elementary schools. Each year the company invited 1 million children to visit its many plants and learn about the food industry. The company had long been a supporter of the Papalote Museo del Nino (children’s museum), providing the funding support for a school program for children from low-income communities to visit the museum. Over 4,500 children visited the museum every year as part of the program. In addition the company directly supported Crisol, an elementary school for low-income children. In addition, Grupo Bimbo supported the activities of the Mexican Foundation for Rural Development (â€Å"Fundacion Mexicana para el Desarrollo Rural†), an organization with more than 40 years of experience that promoted the development of the agricultural sector, and low-income rural families. The company also supported the Center for Integrated Development of the Countryside, A. C. , (â€Å"Centro para el Desarrollo Integral del Campo, A. C. †), which benefited one of the poorest populations of Mexico in the Nayar zone. In a similar vein, the company supported various development programs for indigenous communities in areas such as health, nutrition, and education, through workshops coordinated by Foundation Mazahua Region (â€Å"Patronato Pro Zona Mazahua†) benefiting more than 20,000 people from the Mazahua area of northwestern Mexico State. All-in-all, Bimbo supported many different projects and organizations (for a list of institutions supported by Bimbo, see Exhibit 12), leading Martha Eugenia Hernandez to conclude, â€Å"We have lots of requests for help and we would love to help everyone. We want to be Santa Claus but we just cannot! It is hard to say no, but it is hard to say yes to everything. † Going Forward There was no question in Daniel Servitje’s mind that the internationalization of Bimbo’s business was important for its growth strategy. In addition to increasing Bimbo’s presence in markets such as the United States or Latin America, he also wanted to penetrate markets where Bimbo was not present or where it was just entering, such as China. An important challenge was to improve international profitability, which was lagging behind Mexico’s operations. But the leadership position it had gained in the domestic market and indeed in many markets of Latin America was something that Daniel Servitje did not want to lose sight of. He recalled the passion and commitment with which his predecessors, his father Lorenzo Servitje, and then his uncle, Roberto Servitje, had led the company. They were able to blend the company’s strategy development and its mission and values. He wondered what he could do for an encore. Bimbo was undoubtedly one of the most respected companies in Mexico. How should he go about continuing the tradition in Mexico and rest of the markets it had entered? 2 Grupo Bimbo: Growth and Social Responsibility 509-025 Exhibit 1 Historical Bimbo Sales 800 700 600 500 400 300 200 100 0 1980 82 84 86 88 1990 92 94 96 98 2000 02 04 06 2008 Historical Bimbo Sales (1980 =100) Source: Company information. Exhibit 2 Consolidated Income Statement (million dollars) 1980 426 225 201 150 51 (4) 1 47 24 24 0. 4 23 12. 3% 9. 1% 1997 2,302 1,123 1,179 966 214 11 (14) 211 90 121 5 126 10. 3% 7. 3% 2000 3,279 1,435 1,844 1,506 338 (8) (13) 317 130 187 5 192 12. 0% 7. 5% 2006 5,851 2,724 3,127 2,588 539 (27) 12 524 194 330 3 333 15. 6% 8. % 2007 6,653 3,138 3,515 2,926 590 (22) (36) 537 177 366 6 360 14. 0% 8. 7% USD MM Net sales Cost of sales Gross profit Operating expenses Operating income Integral financial result Other income or expenses, net Income before income taxes Income tax expense Net income before participation in partner companies Equity in income of associated companies Net income ROE ROA Source: Grupo Bimbo, 1980, 1998, 2000 and 2007 Annual report, www. grupobimbo. com, last viewed June 5th, 2008. 13 509-025 Grupo Bimbo: Growth and Social Responsibility Exhibit 3 Financial Information by Region (million dollars) Mexico 1998 NET SALES OPERATING INCOME EBITDA 1,923 266 338 Mexico 2000 NET SALES OPERATING INCOME EBITDA 2,431 356 443 Mexico 2006 NET SALES OPERATING INCOME EBITDA 4,110 510 634 Mexico 2007 NET SALES OPERATING INCOME EBITDA 4,575 542 686 USA 364 11 23 USA 599 (9) 12 USA 1,399 21 52 USA 1,524 19 51 Latam 238 (32) (14) Latam 249 (9) 9 Latam 490 4 25 Latam 699 25 55 Total 2,524 245 348 Total 3,279 338 463 Total 5,851 539 714 Total 6,653 590 796 Source: Grupo Bimbo, 1980, 1998, 2000 and 2007 Annual report, www. grupobimbo. com, last viewed June 5, 2008. 14 509-025 -15- Exhibit 4 Bimbo’s Products and Brands Division Bimbo Mexico Mexico United States Argentina, Brazil, Chile, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela China Barcel Bimbo Bakeries USA Bimbo Latin America Bimbo Asia Country Mexico Brands Bimbo, Marinela, Tia Rosa, Wonder, Milpa Real, Suandy Lara, Lonchibon, Gaby, El Globo, among others Barcel, Ricolino, Coronado, La Corona, among others Oroweat, Mrs Baird’s, Bimbo, Entenmann’s*, Thomas*, Tia Rosa, Marinela, Francisco, Old Country, Boboli*, Weber’s*, among others Bimbo, Marinela, Plus Vita, Pullman, Ideal, Holsum, Trigoro, PyC, Bontrigo, Cena, Fuchs, among others. Bimbo Source: Grupo Bimbo 2007 Annual Report. www. grupobimbo. com, last viewed Sept. 9, 2008. * Under license. Example of products 509-025 Grupo Bimbo: Growth and Social Responsibility Exhibit 5 Grocery Retailers Market Share 1999 Wal-Mart Safeway Soriana OXXO Comercial Mexicana Gigante Carrefour Chedraui Costco Casa Ley Comextra 7-Eleven HEB Comercial VH Almacenes Zaragoza Casa Chapa Controladora y administradora de pastelerias Grandes superficies de Mexico Others ( Mostly â€Å"Mom Pops†) Total 0. 8 1. 4 0. 5 0. 2 0. 2 0. 3 0. 2 0. 2 0. 1 0. 9 78. 8 100. 0 6. 6 1. 5 2 1 2 2. 4 0. 9 002 6. 1 3 1. 2 2. 6 3. 2 0. 9 2 0. 6 0. 3 0. 3 0. 3 0. 2 0. 2 0. 1 0. 9 78. 1 100. 0 2004 10. 2 4. 7 2. 6 3. 4 3 1 1. 9 0. 6 0. 3 0. 3 0. 3 0. 2 0. 2 0. 1 0. 9 70. 4 100. 0 2005 11. 5 4. 8 2. 9 3. 4 2. 6 1. 5 1. 8 0. 6 0. 3 0. 3 0. 3 0. 2 0. 2 0. 1 69. 4 100. 0 2006 12. 7 5. 2 4 3. 5 2. 4 2. 1 1. 7 0. 8 0. 5 0. 3 0. 3 0. 2 0. 2 0. 1 66. 1 100. 0 2007 14. 6 5. 7 4. 5 3. 6 2. 4 2. 2 1. 8 1 0. 5 0 . 3 0. 3 0. 2 0. 2 0. 1 62. 7 100. 0 Source: Retailing Mexico, Country market insight, Euromonitor International, May 08 and Retail planet. 16 Grupo Bimbo: Growth and Social Responsibility 509-025 Exhibit 6 Views of Semi-Urban MPs Source: Casewriters. 17 509-025 Grupo Bimbo: Growth and Social Responsibility Exhibit 7 Bimbo’s CSR Programs Source: Company information. 18 Grupo Bimbo: Growth and Social Responsibility 509-025 Exhibit 8 †¢ Bimbo’s Programs for its Associates †¢ Development benefits: ! Development courses for associates o Personal development course: 3 day course on meditation on oneself and life. The topics ranged from ones ideals, work as a means of personal development and community contribution, the company, health and spirituality, role in society, among others. Leadership course for bosses where the motto was: The firm is what its people are and the people are what its boss is. o What is a firm: one day course on the firm? Topics were savings, investment, work, CSR and profits. The firm was explored so that associates would learn the need to have profit and how in a successful firm everyone benefited. o Family integration workshops for associates and their spouses ! Education courses: o Open schooling to associates so that they could finish middle and high school. Online English proficiency courses and on-site English courses o Support for elementary to masters education for associates in Mexico and the United States o Intensive mandatory training course on driving for all sales personnel. o Many production associates wanted to become sales people because wages were higher. Bimbo offered training in sales and driving to production associates so that they could become sales people. o Bimbo offered, in some of its production facilities, summer camps for associates’ children during the summer vacations. ! Savings: Voluntary saving program where 1 to 2% of associates’ wages were kept for a long term etirement savings program. Economic assistance: ! Health: o Bimbo organized a health week where social security came to Bimbo to do preventive medicine tests on associates such as sugar level tests, cholester ol, blood pressure, among other things. o Associates that came out bad in any of the tests were given follow-up checks up throughout the year. o Bimbo had mandatory health checks for associates over 40. o In case of severe health problem, Bimbo helped by putting pressure into the social security system so that the associate got adequate treatment. Bimbo also got private labs to make specialized tests to associates at very low prices. ! Home improvement: o Bimbo organized a home improvement fair through the Mexican institute for home equipment, IMEVI, so that associates could get home improvement credits and better prices on home improvement materials. ! Wills and deeds: o Bimbo got associates special prices with public notaries so that they could regularize their land or home by making deeds as well as wills. Bimbo also helped associates by allowing them to pay for their will or deeds procedures in a monthly basis instead of in a lump sum. Nutritionist and doctor in Bimbo offices to help associates keeping a healthier diet. Company information. Source: 19 509-025 Grupo Bimbo: Growth and Social Responsibility Exhibit 9 Obesity and Overweight Prevalence in Mexican Children 1999 5. 3% 5. 9% 1999 18. 6% 2006 9. 4% 8. 7% 2006 26. 0% % Change 77. 0% 47. 0% % Change 39. 7% Obesity in children 5 to 11 year olds Boys Girls Overweight and obesity in children 5 to 11 year olds Boys and girls Source: Compiled by casewriters using data from Encuesta Nacional de Salud y Nutricion 2006, Instituto Nacional para la Salud Publica, http://www. nsp. mx/ensanut/resultados_ensanut. pdf, last viewed July 7, 2008. Exhibit 10 †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Health programs in Bimbo Social marketing campaign advocating 30 minutes of daily exercise through television commercials, billboards, radio announcements and packaging. Futbolito Bimbo Stars Tournament: Bimbo invited 46,000 children to a soccer tournament where they were given information on the need for physical activity and healthy diet. Mail and e-mail distribution of nutrinotas, an information brochure on health and nutrition, to more than 1 million people annually. Distribution of posters promoting good nutrition in 21,000 public and private schools. Distribution of the book â€Å"Living a Healthy Lifestyle† to all Bimbo’s associates throughout the world and to MPs owners. Elimination of transfats from its products. Reduced portion sizes and created products with only 100 calories Decreased fat, sugar and salt in 8% of all Bimbo’s product portfolio Fortified products with iron that was five times easier to absorb. The Public Health National Institute, in its Nutrition and Health 2006 census showed that children in Southern Mexico had an important iron deficiency. Bimbo developed products that appealed to children and met 20% of their daily iron needs Created a new bread that helped reduce cholesterol Participated in the Alliance of the Heart with Pfizer and Lala where 200,000 people were diagnosed and tested, at no cost, for cardiovascular diseases based on indicators such as cholesterol, glucose and blood pressure levels. Bimbo also made efforts to be an exemplary firm by giving talks to associates on health and nutrition, providing nutritionists for consults, having healthy menus in its cafeterias and recommendations to have physical activity in the workplace. Bimbo gave founding to many health organizations such as The Mexican Foundation for Health (FUNSALUD), The APAC foundation –providing rehabilitation for people with cerebral palsy, the Ronald McDonald Children’s Foundation –supporting programs that directly improve the health and well-being of children around the world, the Juvenile Diabetes Research Fund, the March of Dimes –health education for pregnant women and promotion of folic acid supplements in bread and the Mexican Red Cross. Company information. †¢ †¢ †¢ †¢ Source: 20 Grupo Bimbo: Growth and Social Responsibility 509-025 Exhibit 11 †¢ Impact of Natural Resource Conservation at Bimbo Since 2003, Bimbo decreased its vehicle fleet fuel by 3. 6 million litters and increased their average kilometer per liter by 15% by improved carburetion technology engines and fuel types Since year 2000, Bimbo decreased its energy index per ton produced by 13% and the thermal energy index per ton produced by 34%. Since year 2000 Bimbo had saved 194 million liters of water or 23% of its consumption by water treatment, installing water-treatment systems in plants, collecting water from rain, among other things. By 2008 Bimbo was recycling 85% of their solid wastes through recycling policies. †¢ †¢ †¢ Source: Company information. 21 509-025 Grupo Bimbo: Growth and Social Responsibility Exhibit 12 Organizations and Institutions Supported by Bimbo, among others †¢ Educational Institutions: o Instituto Tecnologico de Estudios Superiores de Monterrey (ITESEM) o Escuela Bancaria y Comercial (EBC) o Universidad de Monterrey (UDEM) o Universidad Nacional Autonoma de Mexico (UNAM) o Instituto de Fomento e Investigacion Educativa (IFIE) Other foundations or institutions: o Televisa foundation o UNICEF o Junior League Mexico City o Papalote Children Museum: from the Support given to the museum, in 2007 4,500 children from public schools and 30,000 children from marginalized communities visited the museum o Fundacion Pro Empleo Productivo o Impulsa o Fundacion Mexicana para el Desarrollo Rural o Patronato Pro-zona Mazahua o Fundacion Tarahumara o Fundacion CIE o Amigos del Museo de Arte Popular: which benefits more than 8 million Mexican artisans Relief efforts: o After the 2007 floods, Bimbo made a campaign to help associates that were damaged by the flood. Over 33,000 associates donated and donations were matched by Bimbo. o In the United States, Bim bo contributed to food drives for the tornado victims in Texas and Kansas International foundations: o Project leaders of the 21st Century (Colombia) o National Park Foundation (United States) o Toys for tots (United States) o United Way (United States) o Junior Achievement (United States) o Institute of the Americas (United States) o Amigos de las Americas (United States) o Young Women Association (YWCA) †¢ †¢ †¢ Source: Social Responsibility Report 2007, Grupo Bimbo. 22