The North Face Case

Executive summary The report seeks to analyse The North Face Company to determine its marketing strategies. The company manufactures and sells clothing, tents, backpacks, and sleeping bags. It also specializes in skiwear. The aim of the report is to apply different marketing concepts with the aim of formulating a recommendation that would be applicable in future decision making and marketing strategic direction of the company.Advertising We will write a custom report sample on The North Face Case specifically for you for only $16.05 $11/page Learn More It evaluates the different competitive advantages, competences, and capabilities that have made the company successful. It also accesses whether these are transferable and operable in the ski clothing market. The findings indicate that while some could be applicable, others are hard to determine. Based on the report the move by TNF to have skiwear was appropriate given that it had a market share of 1.9%. S everal growth alternatives applicable to TNF as well as recommendations have been provided. Background information North Face is a manufacturing company that specializes in clothing outdoor equipment of high quality. Some of the products that have been part of its success are clothing, sleeping bags, tents, and backpacks (Mezzatesta Cook 1983, p. 743). These products are based on high quality and state- of- the art design, and this has ensured its competence and a high market share over the years. Its major market is in the U.S although the company also has operations in more than twenty oversees countries. The company also co-owns Ski wear cloth line that makes quality and affordable products. As part of its marketing strategy, the company has always believed in high quality products which are affordable to its customers with a lifetime warranty. The success of the company has been attributed to its good reputation in supplying quality products, good management team, and closer re lationship with the established distribution network. However, its skiwear line was not a success as the other products it sold, owing to the presence of stronger competitors who had specialty skiwear stores. Because of the low level of market penetration, The North Face skiwear products were ranked as having the lowest market share. The report analyses The North Face (TNF) case based on marketing knowledge so as to formulate recommendations that would be viable for future application in TNF future strategic marketing directions. Analysis Evaluation of existing competences for competitive advantage Competitive advantage is that particular unique aspect used by a company to gain a competitive edge in the market over the rest of its competitors by either offering quality products and services or through pricing (Botten 2007, p. 264). A company can also offer high prices compared with its competitors based on the quality of the products. There are different distinctive aspects that hav e placed the TNF Company at par with other companies in the market. The company has applied marketing mix as part of its marketing strategy thus gaining a competitive advantage in the market. A marketing mix is comprised of the 4ps applicable in marketing and they are price, product, distribution/place, and promotion. The company specializes in the manufacture of a variety of quality products which are durable and have a lifetime warranty (Mezzatesta Cook 1983, p.743).Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More For example, the back packs manufactured by TNF are superior and are able to compete with other products as they have coil zippers, stitches, and nylon fabric which make them durable and adaptable. This according to Michael porter’s competitive model is a form of differentiation that offers a company a competitive edge (Botten 2007, p. 264). The manufacture of different products that were adaptable to different occasions made the company a success. All the products of The North Face Company had distinctive features and varieties that differentiated its products with those of the competitors, thereby offering the company a competitive advantage. The pricing of TNF products are affordable as it offers premium prices to its products. Mezzatesta and Cook (1983, p.746) note that as part of the corporate strategy the company believes in the manufacture of quality products, price them fairly and remain in the market for ever. It is also noticeable from the case that TNF manufactured quality back pack products that were sold at high prices than the competitors and still maintained its market share because of its quality products. Through price competition the company has been able to place itself ahead of its competitors. The distribution channels of the NTF were well organised and the shops were strategically placed. The positioning of the company based on the case study is well established as the company has different outlets in the US and other foreign countries. This enlarged its customer base and the market share. The company had specialized markets and through the building of specialty stores, it was able to create a brand name that was used as a competitive advantage (Mezzatesta Cook 1983, p.748). Brand name was created through the specialty shops, as they acted as the marketing strategy for the company. Correlation of TNF competences and competitive advantages to Skiwear Most of the stores that sold skiwear were specialty stores that were well established than the TNF. The assumption made by the TNF prior the introduction of the skiwear was that it would gain a market share if it introduced the products through the specialty stores it had. Based on the data, NTF was ranked 18 in the ski wear provision with a market share of 1.9% (Mezzatesta Cook 1983, p.752).Advertising We will write a custom report sample on The Nort h Face Case specifically for you for only $16.05 $11/page Learn More This means that although The North Face controlled the other products, the outlets that controlled the market were not TNFs’ stores. If the company transferred some of its competencies and competitive advantage on the ski wear operations, it would not be appropriate to set specialty stores so as to create a band name. This is because the skiwear market has no dominant brand and to gain a market share of 70% a firm requires at least 9 brands. Furthermore, the market is highly fragmented and customers have no particular brand. However, through the production of quality ski wear and apply the pricing concept of premium prices that varies through differentiation the strategy would be operable and could be used as a competitive advantage. As explained in the case, there was no specific brand that they associated themselves with and hence TNF would be the new brand. The corporate standard of TNF was to make better products, price them at return earning level, and promise that it would attract customers (Mezzatesta Cook 1983, p.743). This, coupled by the pyramid of influence, would be operable in skiwear as people belief in referrals and recommendations. This would address the product needs to different segments of the market. Examination of skiwear move The move by TNF to establish ski wear was appropriate and timely according to the given data. After analyzing the market for ski wear products, the company had a market share of1.9% despite the fact that it did not manufacture skiwear products and that most of its outlets sold skiwear. Although the company feared toppling of some of its existing stores, through the offer of skiwear to competitors, what the company needed was to position its skiwear products in the market and make a brand out of it that would be competitive like some of its products like the backpack. Given that the company did not manufacture skiwear its market entrance gave it the chance to exploit the 2% market share that existed. It could increase its market share based on the 2% share to increase its performance in the market. Evaluation of Growth alternatives Growth alternatives strategies are crucial as they propel the profits and the products market share to the next level (Hoskisson, Hitt Ireland, 2008, p.196).Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The major growth strategies applicable to any organisation are the market development, product development, product penetration, and diversification (Doole Lowe 2008, p.170). The skiwear products can be propelled through different market segmentation instead of relying on a singular market. This could be achieved through product development that involves the expansion of a product line. This could be applied on skiwear where the material used, weight, and size would be improved to counter the existing market (Ansoff 1957, p.113). Through product mission, the company would concentrate on making a product that would meet the needs of customers at affordable prices. The company would also try market penetration as a way of ensuring its growth (Gessinger 2009, p183). Market penetration is a growth strategy that ensures a company penetrates already existing markets. According to Ansoff (1957, p.114) it aims at increasing the sales of product or service without the departure from the pro duct marketing strategy that was adopted during its inception. Through this growth alternative, the company either increases its volume sells or find new markets for its products. This increases the market share as well as the product usage leading to market growth in the long run. Since the skiwear products are new the company can segment the market and target these new segments that are not currently occupied by TNF. Instead of concentrating in the already existing market, it would be advisable to introduce the skiwear products to other geographically placed markets thus ensuring growth. Lastly, the company would adopt diversification strategy to ensure market growth (Baker 1998, p.77). This strategy is different from the other three because it requires the incorporation of new skills, new techniques and, new techniques (Doole Lowe 2008, p. 170). This changes the whole operational, organisational and physical structure of the firm. A distinctive break from the past business opera tions based on experience is realised Recommendations Based on the analysis of TNF and the skiwear it has emerged that there some recommendations which are important to see full success of the company. The company needs to position its skiwear products through branding that needs more than backpacking account. This would be achieved through establishment of different product and market segments as well as appropriate targeting. Instead of depending on already existing markets, the company can venture in new and more diverse markets that have not been penetrated much and establish themselves as a new brand. This would grant the company a market share that would absorb its products. The company could establish a marketing mix that was used as driving force for TNF products in establishment a market share for its skiwear products. This can be achieved through quality production, establishment of proper distribution channels, and offer of premium and affordable prices to its customers. The company can introduce specialty stores that specialize in the selling of skiwear products. Although, there exists other 5 skiwear stores with no backpacking, TNF could be the first to introduce the idea to ensure that they provide a particular product under a particular store. This could be a competitive edge for the company. The company could adopt the growth alternatives discussed in the report and incorporate them in the marketing strategy. The combination of different marketing alternatives would make it possible to gain market share and expand in terms of customer base. Conclusion The TNF is a company that specializes in the manufacture of tents, backpacks, sleeping bags, and clothing wear. Its products are state- of- the art and of high quality. The competitive advantage of TNF is based on premium prices, high quality products, and organised chain of distribution as well as strategic position in different US store outlets and in other foreign countries. These could be ap plied to skiwear to ensure that it gains a market share. The alternative growth strategies that can be applied are through product development, diversification, market development and market penetration. The recommendation given can be applicable in TNF marketing strategy to propel it in a more successful direction. Reference List Ansoff, H. I. 1957, Strategies for diversification [Online], Harvard Business review, pp, 113-126. Web. Baker, M. J. 1998, Marketing: managerial foundations, Macmillan Education Australia, South Melbourne. Botten, N. 2007, Management accounting: business strategy. Oxford, CIMA. Doole, I. Lowe, R. 2008, International marketing strategy: analysis, development and implementation, South Western Cengage. Learning, London. Gessinger, G. H. 2009, Materials and innovative product development: using common sense, Butterworth-Heinemann, Burlington. Hoskisson, R. E., Hitt, M.A. Ireland, R. D. 2008, Competing for advantage, Thomson/South-Western Mason, OH. Mezzatest a, G. Cook, V. 1983, The North Face, ‘Case 19’, Stanford University Graduate School of Business, pp. 743-754. This report on The North Face Case was written and submitted by user Samiya N. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Essay on Honor

Essay on Honor Honor is defined as esteem paid to worth and is associated with reverence, dignity, distinction, reputation, good name and a good sense of what is right, just, and true. The key part to honor is having respect for others and for yourself, the two must act together because with out both you have nothing. I strongly believe that reputation is hard to gain and easily lost. A speaker once said, â€Å"Every day thousands of planes fly somewhere and there is never any news or headlines about a successful landing, however when one crashes it is all over the news.† This fact reminds me of honor in that you must maintain honor because one infraction will result in the forfeiture of ones honor and in a sense will be headlines, and if not to others definitely oneself. â€Å"Honor is like a rugged island without a shore, once you have left it, you cannot return.† Honor is something in which is not obtained and sustained easily. One must have patience and study to become a person of integrity and goodwill. Honor is an everyday thing; obstacles trying to deter one from being honorable lay in life’s everyday path. Perseverance is a key to honor; one must fight the constant impeding objects in order to maintain the highest level of honor. An island is often looked at as something isolated and secluded yet has a certain mystique about it. Honor is much like an island in this sense. A test of all will power living with honor will not always be the most popular route and possibly could cause short- term alienation. Honor must come from inside and be unable to be swayed by minor factors. The shore is a place, which represents compromise. Honor has no room for compromising in no way is it a partial way of life, it cannot be turned off and on when desired. People often see honor as something malleable yet it is not one cannot pretend to be honorable in certain environments and not in others. An absolute way of life, honor is like a pass or fail course, there is no in between. The shore is a place of change, for instance if one stays on the shore he/she will drown at high tide, the shore is not an option. The last part of the quote from Satires is the most important of all the aspects. Honor does not have three strikes and you’re out or nine lives policy, everybody is given one chance and if that person chooses to invalidate their honor it is lost. Honor does not have a series of choices. I see honor much in the way of a quote by well known American author Gore Vidal, â€Å"One is sorry one could not have taken both branches of the road. But we were not allotted multiple selves.† I firmly believe in living with the highest level of honor, which in a way is the only degree of honor. In the present day many people have relaxed their standards thinking that lying once or twice will not matter because no one will find out. This common mentality is what is hurting society; people have lost the strong belief of self-respect, which is a major part in honor. Honor should always be in one’s conscience and should be reflected through their actions. It is a distinct characteristic in a person that separates that person from a group. Honor must be the center of what one’s moral revolves around and is the capstone of a person.

Ethical Debate on Assisted Suicide Essay Example | Topics and Well Written Essays - 750 words

Ethical Debate on Assisted Suicide - Essay Example This is because they have adequate knowledge to assist persons commit suicide. The ethical debate on assisted suicide is not as recent as most people assume. Examining the principles of medical ethics sheds light on these issues. In the 4th century B.C, the Hippocratic Oath took precedence as guidance to doctor patient relationship. One section of this oath holds that the doctor should not administer, or advice persons to administer lethal drugs. The Platonian philosophical error focused an immense deal on not only the moral but also the psychological (social) and theological (religious) questions on suicide. However, the ancient debates on suicide and assisted suicide for that matter take little account of the self. Instead, these debates focus on the social role and responsibility of the person committing suicide. Religion, on the other hand, takes a rather different approach. In Christianity, for instance, killing is wrong whether done to self or others. The contradiction is that most religions hold the virtue of compassion with endearment. While other parties will use this same virtue to root for assisted suicide, religion still views it as wrong (Gorsuch, 2009). Philosophy, like most religions, acknowledges the human ability to distinguish right from wrong. Upon this foundation, a philosopher may examine the issue of assisted suicide from one feasible approach. This first approach requires that one assumes that all factors held constant, an individual in their right state of mind in whatever decision they make reflect their moral, religious, philosophical and by extension ethical convictions. As such, a person choosing death instead of life must have examined their options and tagged assisted suicide â€Å"best option†. Fernandes (2008) while reflecting on some of the arguments

How does the economy of Iceland work Essay Example | Topics and Well Written Essays - 500 words

How does the economy of Iceland work - Essay Example As opposed to a purely capitalistic economy, the mixed economy in Iceland ensures regulated private ownership and safeguarded welfare of the citizens, a feature that limits exploitation of the public and concentration of resources in the hands of few individuals at the expense of other citizens. The country’s economy also operates through investments into creation of employment opportunities. Reported data on the country’s economy for instance indicates low unemployment rates, an indication that job creation is a prioritized economic policy (CIA, p. 1). One of the core bases of the Iceland’s economic sustainability is its fishing industry. According to CIA statistics, the industry is responsible for about 12 percent of the country’s economy and is a source of employment to at least seven percent of the country’s population. The fishing industry also sustains Iceland’s economy through the vast export of the fishery products. Contributing about 40 percent of the country’s export identifies fishing as a major source of foreign exchange to the country. The export aspect from fishing industry also indicates the country’s involvements and derived benefits of international trade. International trade is therefore another base for Iceland’s economic functionality and sustainability and includes other exports other resources such as metal ores. The economy is also characterized by significant foreign investments. With cheap energy sources such as geothermal power, the country has been able to attract investors from across the world. Investments in the economy have also undergone diversification towards exploration and exploitation of different available resources in the country. Further, the country has been able to attract foreign revenues through foreign investments by its domestic industries such as its financial institution. The

Management of Law Office Assignment Example | Topics and Well Written Essays - 750 words

Management of Law Office - Assignment Example There are several forms of business organizations that a person may venture into among them sole proprietorship, partnerships, limited liability partnerships, law corporations and group law practices.Each of these forms has their own specific differences, as well as, the features upon which each can be evaluated so as to suit the organizational needs of Ms Seow. In this paper, I seek to discuss in brief these forms and then select on one upon which I shall make a recommendation about and the justifications for the same. In a sole proprietorship, a person decides to operate on a particular business venture on their own. The main advantage with this form is that one gets the opportunity to manage and enjoy the profits/benefits from the business alone. However, the costs are enjoyed alone as well which may be detrimental. However, this form would not be essential for Ms Seow considering the nature and form of organization and clientele she serves (Roper, 2007.p.85). On the other hand, a partnership would be when she joins hands with another lawyer and pools resources and clientele base together. In such an arrangement, the benefit would arise from the fact there will be shared responsibility in terms of management and even sourcing of capital for the firm. This arrangement would appear essential considering the financial challenges faced by Ms Seow’s firm. Above all, there are joint deliberations in the making of decisions thus, ensuring their concreteness. However, this would not seem feasible as the same has not worked with the current partnership with Mr. How. Consequently, this form of business may prove unproductive taking into consideration the likely disagreements that may arise between the partners or even the fact that they will be subjected to unlimited or limited liability based on the nature of the partnership. Additionally, a partnership in spite of being flexible and allowing for sharing of losses will also involve the sharing of profits by th e partners. This seems to be the case of Ms Seow in which case the options to her appear as though she should part ways with Mr. How. In the case of a law corporation, the situation facing Ms Seow and her law firm may not prove fruitful. This is because law corporations are usually considered as large scale operational units. Usually, the institutional set-ups as, as well as the structural nature of such may not warrant the organisation run by Ms Seow to be classified as such. This is considering that Ms Seow for one has limited office space, limited number of staff, and above all limited, or inadequate capital to finance her firm’s operations. This is worsened by the ideal situation of the market in which due to the competition, the profits levels have decreased hence, lawyers are not able to make many earnings in the business. For instance, Mr. How, despite being specialised in conveyancing, the same poses a major challenge in the face of the stiff competition with most fir ms opting to charge lower fees (Nollkamper, 2013.p.205). In all these situations, the most feasible and achievable option for Ms Seow and her law firm that will also ensure the achievement of enhanced profitability would be to engage in a Group Law Practice. As the adage goes, ‘there is strength in numbers.’ As such, it would be beneficial for Ms Seow to enter into a Group Law Practice with other firms of similar sizes and enjoy the benefits of extended employees’ network. Group Law Practices are continuously providing effective strategies through which the demands in the ever evolving law demands can be met. As has been reasoned by most seasoned lawyers in private practice, the strength in the seasoned legal bench enables the firms to offer an extensive assortment of services to customers. This is so because group law practice will enable Ms Seow to build a team of sophisticated and dedicated lawyers with diverse knowledge on the benefits of the clients. Clearly , this seems to be much possible

Relevant Concept Of Celebrity Endorsements Marketing Essay

Relevant Concept Of Celebrity Endorsements Marketing Essay Introduction In the introduction this research paper will be providing an insight about the research area. It would begin by briefly discussing the background and relevant concept of celebrity endorsements and how it affects the consumer pre-purchasing behavior. 1.1  Ã‚  Ã‚  Ã‚  Ã‚   Background Advertisement came into existence in early 18th Century. Since then the concept started playing an active role in the development of the society in the early 1930s.Most of the celebrity back then used their status in society to promote product, service or charity. These celebrities performed stage shows; modeling, sports activities and most of them were from movie industry (Kambitsis, Harahousouy, Theodorakis and Chatzibeis, 2002). In the early 19th century, worlds first celebrity endorser Lillie Langtry (British actress) appeared in the advertisement for pear soap. It marked the beginning of the brand representation by endorsers. These endorsers according to the Tellis (1998) can be divided into three major groups experts, lay endorsers and celebrities. Here experts are those people who know about the product and they have limited knowledge about the product which they have assembled during study, training or experiences. Such an instance can be shown in advertisement where dentist for toothpaste advert or nutritionists for healthy food items as both of them are able to provide an expert opinion about the product. Secondly lay endorsers are people who may be real or fictional, which resembles to the target groups and can be quite effective to provide message. Thirdly comes celebrity endorser who can be defined as the people who enjoys public recognition and who uses this on the behalf of a consumer good by appealing with it in an advertisement (McCracken, 1989, p.310). Celebrity endorsements are used for advertisement just because they can create an appeal and can increase its attractiveness for the viewers and consumers. For example Michael Jordan acted in advertisement for Nike; David Beckham for Gillette and newly made football cup advert of coca cola where Roger Millas celebrates wonderful world of football goals. According to Ohanian (1999) both theory and practice proves that the use of super stars in advertisements generates a lot of publicity as well as draws the attention of public. Most of the companies try to utilise the already made image of the celebrities to attract more customer base and increase their loyalty. As in this highly competitive business environment brand loyalty has become the utmost important for success. Companies use celebrities endorsement in the advertisements so that they are able to associate with celebrity and are able to cash there image for a long period of time. It is said that, If the consumers are able to see the link between the celebrity and the product then the endorsements can be highly effective (Hsu and McDonald, 2002). It is believed that attractive endorsers can be highly affective while promoting products and can be used to enhance consumers attractiveness. Attractive people have greater influences on the consumers compared to unattractive people (Till and Busler, 1998). Till (1998) states companies used celebrity endorsers either sporadically or opportunistically at the whim of the client or the agency. Paying back for the investments in the celebrity endorsement usually comes from using the celebrity regularly over time. The reputation strengthens the associative link for those consumers who were already aware of the celebrity endorsement. It also increases the pole of consumers who begins to make themselves aware of the link between the brand and the celebrity. Some marketers change celebrity endorsers very frequently which weakens the benefit expected to be derived from the endorser. Such as Nikes consistent use of Michael Jordon has encouraged customers to think about Nike when thinking about Jordon and vice versa these have shown that Nike and Jordon have become a part of each others association similarly association of the Nike and Tiger woods have made same impact as whenever customers think of golf products they think of the Tiger woods and its endorsed Nike product. McCracken (1989) proposed the hypothesis that endorsers are more effective when there is a fit between the endorser and the endorsed product. Byrne et al (2003, p.289) states celebrity can help the brand to rebuilt and even create a new identity with new dimensions. Celebrity endorsement boosts brands attractiveness among the consumers and saves valuable time in terms of creating the credibility. When consumers see a credible celebrity endorsing a product they think the company has to be good and reputed. The major job for the company is to choose the right kind of the celebrity for the endorsement and its the job of the advertisers within the company to match the companys image or product with the personality of the celebrity and characteristics of the target market to establish effective message and mass expectance. According to the Shimp (2003) two general attributes which are important when determining the effectiveness of the endorsers as well as the communications effectiveness are credibility and attractiveness. The first attribute concerns endorsers quality of being believable or trustworthy and the achievements and skills of the celebrity which could correlate with the brand image. The latter attribute refers to the celebrities ability to appeal, attract and engage large consumer base on the basis of their attractiveness. A good example of these would be golf star Tiger Woods whose scandalous image resulted in his ruining his credibility among the consumers which lead to his sponsors (ATT, Gillette, Tag Heuer and Accenture) dropping his advertisements and Anna Kournikova who although has never won any pro-level tournament but was still used by Swiss watch maker Omega to endorse their products because of her international reputation and appealing looks. Purpose and research questions Many of the previous studies on the celebrity endorsement have been focused on how celebrity endorsements influence consumer behavior. But there has been less consideration on the empirical   research on celebrity endorsement specifically on sport celebrity endorsements and in what manner do they use celebrity and how do they addresses the future returns on the investments in celebrities. The lack of proper research in this area inspires the present dissertation. So the main aim of this research would be to gain deeper understanding of the celebrity endorsement and how it influences the consumers behavior specifically in sports industry. To be able to achieve that following question were formulated: 1. Why does sports industry uses celebrity endorsements for promotional strategy? 2. How does celebrity endorsement affect the consumer behavior in sports industry? 3. How does company select the celebrity? 4. How effective are celebrity endorsement for sports industry? Demarcations This topic falls into the very broad area. Limits of both time and resources have led this research to focus on the very specific questions. Therefore the research paper will concentrate specifically on sports industry and will analyses the prominent companies in the field.   Furthermore there are several viewpoints which could be adapted in the research of the celebrity endorsement. There is consumers view point as they are affected by celebrity endorsement and then there is a companys point of view as they use celebrity endorsement as there promotional strategy. The research is done by keeping in mind that both points of views are highly important in understanding the consumer behavior as well as companys approach in promoting celebrity endorsement. Literature review This section of the research paper would be discussing what has already been done by other authors on the topic and their conclusion about the effect on consumer pre-purchasing decisions. Celebrity image is one of the major concerns for the endorser. Whichever company is endorsing celebrity the major issue they have to see is the compatibility between the celebrities and their brand. Advertising companies look for celebrities who compete and maintain an image (Kambitsis et al, 2002). Mostly companies are looking for the some basic properties such as likeability, expertise, trustworthiness and similarity thats what makes celebrity endorser to become a source of persuasive information and this creates a sense of certainty .Physical attractiveness of the endorser is also considerable and can be highly effective in producing an effective message. Acceptance of a message by a receiver could be influenced by celebrity endorsers as believable sources of information about a product or a firm (Amos et al, 2008). The use of celebrity endorsers to support products is explained by balance theory principles too. According to theory, successful companies establish an emotional rela tion between the observer and the endorser and a relation between endorser and brand too (Mowen, 2000). One of the important issue which arises here is whether there is a link between the consumers purchasing intention and celebrity endorsement. Many researchers have concluded that they have observed that many customers will pay a premium price for the product which have been endorsed by celebrities then product which have not been endorsed by celebrity. But the consumer should be able to see associations between the product and endorser as well as his/her intentions and purpose with the endorsers. The question that arises here is how does consumer associates itself with the celebrity endorser, to make a connection and association. It can be simply identified as most of the   companies choose an endorser who uses the product and where the use of the product is reflected due to endorsers professional expertise (Daneshvary and schwer, 2002). An athlete endorser such as David Beckham endorses football shoe then association can be seen but if he endorses golf products or racing car then customer will not be able to identify association. Therefore companies have to be very careful while associating with brand and product with the endorser so that they are able to utilize endorsers capabilities according to their need. Celebrity endorsement based on attractiveness is common among everyday consumers which, most of the time, effect consumers positively. Michael Jordon is an example of an attractive endorser but his effectiveness is likely greater when endorsing to this athletic ability is more rather than the products which are not relate to athletic performances. Consumers often have the positive effect towards the product and the celebrity despite the fact it is well known that the endorser earned a lot when promoting a product. (Cronley et al., 1999) Its more effective to use celebrity endorsement constantly to increase the strength of the link between the celebrity and the endorsed brand. Its also more effective to use celebrity who is not associated with another product (Till, 1998). When a Celebrity endorses only one or two products it is significantly more trustworthy than a celebrity who endorses even more products (Tripp at al., 1994). Celebrity endorsement can have both positive and negative effect on companys image e.g., many celebrities who switch their endorsement to the rival brands increase the risk of negative impact and confusion among the consumers. Pros and cons of celebrity endorsement Erdrogen (1999) states that academic findings and company reports safely argues that celebrity endorsers are more effective than non celebrity endorsers   when it comes to generate all desirable outcomes (attitudes towards advertisings and endorsed brands, intension to purchase and actual sales). Companies mostly utilize celebrities whose public image and personality match with product and the target audience and who have not endorsed previously. It has been clearly understood by the advertisers that celebrity endorsement has the significant potential to increase the recognition of the product and the brand. The increasing competition and new product increase in the market have made companies and marketers to use attention creating media stars to assist product marketing (Erdogan, 1999). With recent technology such as remote controlled televisions, video controlled systems, internet and satellite television, the power over programmed advertisements have increased and has made advertising more challenging. These threats with increased products, competition and technology development can be eased by the use of the celebrity endorsements as celebrity presence in the advertisement tend to   make impact on consumers reaction toward the advertisement and can help making advertising stand out from the clutter(Erdogan, 1999). Advertisers use celebrity to develop the communication between the consumers and the brand by cutting down excessive noise in the communication process. Some of the most complicated problem with the global marketing is to enter foreign countries due to cultural roadblocks such as time space, language relationships, a powerful risk, masculinity, femininity. And to overcome this problem companies hire local celebrities as they are powerful means to enter the foreign market. It makes it easier for companies to make the local people understand and associate the product with them. But it can also bring too many risks as well mostly because celebrities loss of credibility due to the frequently changes in endorsements or if celebrity drops in popularity. Therefore celebrity endorsement is a creative as well as risky tool for the companies. The whole process of celebrity endorsements needs a proper strategic plan before risking their investment.   Celebrity Endorsers Effect on consumers attitude Marketers and advertisers are particularly interested in consumers attitudes towards advertisements and brands. They always need to be aware of how sensitive consumers are about the adverts and brands. And they should know how do consumers start liking the product and consider it. It very much depends upon the consumers attitude towards certain product or brand or celebrity endorser. An attitude shows whether we like something or not. Attitudes have three basic components: affective, cognitive and behavioral. Affective component is related to our liking or feelings about an object. Cognitive is referred to beliefs about an object and behavioral component regards actions we take about that object (Severin and Tankard, 2001). Attitude towards advertisement is defined as a learned tendency to respond in a consistently desirable or undesirable approach toward advertisement in general (Haghirian, 2004). Determinants of advertisement consist of attitude towards the advertiser, assessment o f the advertising execution itself, the mood evoked by advertising and the extent to which the advertising affect viewers encouragement. A successful advertisement in one country or region is not necessary it will be successful in other parts of the world as what makes advertisement impressive will change noticeably in cross-culturally. Many researchers have concluded that the use of the celebrity endorsement in advertising creates constructive impact on attitudes of the consumer towards products and brands with which they are associated. Agarwal and Malhotra (2005) have defined brand attitude as consumers general evaluative judgment of a brand based on brand beliefs. Such beliefs concern product-related attributes, like practical and experimental benefits. A successful endorser is able to enhance intentions and preferences towards brands directly or indirectly. An endorser who has major source factors of credibility (like expertise, trustworthiness and effectiveness) is able to imp ress purchase intentions of the consumer considerably (Liu et al, 2007). Information from a credible source can impress ideas, attitudes and behaviour through a process called internalization(Belch and Belch, 1993).   Internalization occurs when the receiver is motivated to have an issue. The receiver learns and accepts the idea of the credible spokesperson, since he supposes that information of this person represents an accurate position on the issue. Therefore, if such spokesperson who is known to be an expert endorses a product, consumers will more probably have a desirable idea about that advertisement and brand and they will consider it in their shopping list the next time they go shopping. Researchers have used the identification process of social influence in order to explain the effectiveness of celebrity endorsers (Basil, 1996). This theory suggests that if an individual identifies with another individual, then he is more likely to accept an attitude or behavior of that individual or a group. The internalization process of social influence occurs when an individual accepts influence because the induced behavior is congruent with his value system. An individual accepts the influence, since it provides a solution to a problem (Daneshvary and Schwer, 2000) A successful endorser strategy can enhance the level of consumers recalling towards product information, reinforces consumers recognition to endorsed brands, positively influences consumers attitude to low-involved products and even enhance consumers purchase intention and preference towards brands (Liu et al, 2007) Celebrity endorsement and its involvement sports industry Sports industry is becoming the vital revenue generator in world economy and it is mainly due to increase in the broadcast coverage of important sporting events like Olympics, World Cup football, UEFA Cup, Wimbledon, US Open, Australian Open, French Open, Formula 1 racing, World Athletic meet, NBA and Basketball championship .Due to increase coverage sports persons have started becoming celebrities as more and more people know them and consider them as their idols. Sports celebrities have become major spectacles of todays media culture. Sports celebrities have been looked upon as role models from the todays young generation.   Most of the sports companies (Adidas, Nike, Wilson, Puma, Slazenger, Stiga, Dunlop and Yonex ) which have international recognition wants to have an international sport celebrity which is recognised by the most of their consumers and has enough credibility and attractiveness to appeal to large customer base. Due to which, Celebrity endorsements in the sport i ndustry continues to grow both in number and value. Certain athletes are utilized by brands as endorsers of their products because of the celebrity status gained by these athletes as a result of their success in their chosen sports. Most models of celebrity endorser effectiveness proposed by previous researchers have been based upon two basic models: the Source Credibility Model (Hovland, Janis, Kelley, 1953; Hovland Weiss, 1951) and the Source Attractiveness Model (McGuire, 1968). The Source Credibility Model significances that the effectiveness of the message is largely determined by the expertise and trustworthiness of the celebrity endorser, which offers explanations for why certain athlete endorsers such as highly successful mens tennis professionals Andre Agassi, Rafael Nadal, and Roger Federer could easily represent any brand of tennis equipment. In a different vein, the Source Attractiveness Model significances that similarity, familiarity, and liking of celebrity endorsers primarily determine their effectiveness, which attempts to explain why some athletes such as Manning, Woods, and racecar driver Dale Earnhardt Jr. can endorse brands in many different product categories. A general measure of physica l attractiveness has often been used to assess celebrity endorser effectiveness, assuming what is beautiful is good (Dion, Berscheid, Walster, 1972). However, mixed findings suggest that caution should be exercised in basing endorsement decisions on this model alone, since consumers perceive physical attractiveness differently. The Product Matchup Hypothesis (Forkan, 1980; Kahle Homer, 1985; Kamins, 1989; Kamins, 1990) emphasizes the need for a matchup, also referred to as congruency or fit, between the celebrity and the product. For example, the fit between Woods and Nike Golf is undeniable. However, according to sport marketing consultant Marc Cagins, Woods has failed as an endorser for Buick because of a lack of fit: People always shook their head as to why he did the deal anyway with Buick. If hes going to do a deal with GM, you would have thought Cadillac more than Buick (Thomaselli, 2008, p. 28).Research based on attractiveness matchup and expertise matchup has supported the hypothesis that celebrity/product fit remains critical to endorsement success. Kamins (1990) tested the matchup hypothesis based on attractiveness and found that the physical attractiveness of a source only mattered when an attractive source was paired with an attractiveness-related product, resulting in increased perceived source credibility and attitude toward the advertisement. Current examples would include the female tennis professionals and sisters Serena and Venus Williams Avon cosmetics campaign and the European mens soccer star Thierry Henry/Woods/Federer Gillette campaign. In a study examining the impact of gender and physical attractiveness on responses to motorsports sponsorships (Roy, Stewart, Goss, 2003), attractiveness played a greater role for female drivers than for male drivers, with the more attractive female drivers perceived as possessing greater expertise with products such as shampoo, tanning products, and dietary products. However, Bower and Landreth (2001) found that highly attractive models were not more effective than normally attractive models for problem-solving, attractiveness-related products and attributed these results to the premise that consumers perceive highly attractive models to have never faced an attractiveness-related problem and therefore have little expertise using these products. To illustrate, this premise would suggest that the current campaign utilizing female tennis star Serena Williams for ProActiv acne medication would be unsuccessful. However, a moderately attractive model may be more likely to be perceived to have faced an attractiveness-related problem and overcome it using the advertised product, fully illustrating the premise that the expertise of the source is more important than the attractiveness of the source.   Chapter 3 Methodology Research can be defined as the search for information or as any organized investigation to establish facts. There are two main types of research methods: quantitative and qualitative. Quantitative study uses numerical data to test hypothesis under investigation, which is flexible and objective. Qualitative study uses softer approach to look at perceptions and insights of people based on few samples but in great depth (Silverman, 2006) In quantitative research usually numerical data is collected through surveys.  So that they are able to observe surveys and develop it into the meaningful results. In quantitative research it is important to collect large sample to develop fairly accurate results, small the sample less chances to develop proper results. Qualitative Research Qualitative research helps in developing more meaningful complex researches. It has been characterized into four main approaches: they are observation, record, interpretation and conclusion. In qualitative research data is collected by focus groups or by interviews and then the data is observed thoroughly. Once observed data is collected or recorded in meaningful way so that it is able to be interpreted into understandable form. Then finally conclusion is constructed in a suitable way. Observational study has been criticized to be unreliable and subjective depending on observers understanding of the data. This form of research would be more appropriate at preliminary phase of research (Silverman, 2006). Researcher also uses other approaches to investigates, it is mostly done by reading of various materials on the subject to develop and recognize relevant information. This method of research is less common among qualitative research. Most common method among qualitative research is interviews and focus groups (Silverman, 2006). In interviews, participants respond to questions asked by researcher to investigate their understanding of the subject and allows respondent to elaborate further with his or her ideas and feelings. Focus group method is a more costly approach to carry out than methods mentioned, but often criticized for limited sample size which may not be representative of the population under investigation (Silverman, 2006) Research Method The purpose of this research seeks to investigate the insight and opinions of the consumers over the celebrity endorse and does it really affect the consumer behaviour during the purchasing. To support my research and to understand the consumer behaviour in depth survey will be conducted where common people/consumer from all walks of life and will be collected and interpreted into meaningful results and conclusion.   To understand the subject in the perception of the company interviews will be conducted with the people, who have understanding of the market and know how companies generate profits from the celebrity endorsement and what they make of celebrity endorsements effect on consumers attitude.   Primary Data Collection Primary data is information gather first-hand to contribute to what could be explored further into the research and also to justify. It involves collecting data using basic methods such as interviews, questionnaires, observations and abstractions. But the key point here is that the data collected should be unique and should not resemble with already done researches. The primary data, which is generated by the above methods, may be qualitative in nature (usually in the form of words) or quantitative (usually in the form of numbers or counts of items assessed). In this research both questionnaires and interviews are utilise so that   consumer behaviour could be understood fully from   both prospective consumer as well from companies.in this research questionnaire will have both open and closed ended questions so that prà ©cised options and answers could be obtained and it will be more accurate in interpreting the data. For the interviews, semi-structured pattern with open-ended qu estions will be develop in order to understand   interviewees opinion and belief about a particular matter or situation and not restrict respondents answer to confined questions. Semi-structured questions are used in this research to encourage respondent to elaborate on points they feel appropriate and provide a blueprint for them to understand the progression of the interview (Ruane, 2005). Although qualitative and quantitative data collection can be time consuming, but it is reasoned that this form of research provides more accurate results. Participants for survey are the common people whom answered to a posting on Facebook, tweeter and collage email. Participants for the interview are the managers of the different companies which have international experiences and have some sort of knowledge and understanding of the celebrity endorsements. Researcher carefully examined each participants position and company background to ensure they correspond to requirements of this research. The final participants were chosen upon their qualification and availability. Interviews were conducted personally in their respected office due to their availability in the London U.K .The time assumed for interviews were 20 to 30 minute but Interviews were longer than predicted, as participants were remarkably eager to elaborate their answers with personal experiences; each interview lasted about 30minutes to 60 minutes. 3.5 Limitations An extra care is need in preparing the questions for the interview and questionnaire as if researcher conducts the structure too loosely then it may lead to undesirable information making the result and concision less effective. Therefore structure of interview and questionnaire should be in a way that appropriate information is collected. Even semi-structured interview and questionnaire are criticized for possibility of missing information if researcher follows the structure too closely. Availability of the time restricted the research by creating the boundaries such as limited respondents for surveys as well as restricted participation of interviewers. The research was concluded in a limited time frame.

Destiny, Fate, Free Will and Free Choice in Oedipus the King Essay exam

The Concept of Fate in Oedipus Rex  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚        Ã‚  Ã‚  Ã‚   To the first-time reader of Sophocles’ tragedy, Oedipus Rex, it seems that the gods are in complete domination of mankind. This essay will seek to show that this is not the case because the presence of a tragic flaw within the protagonist is shown to be the cause of his downfall.    In the opening scene of the tragedy the priest of Zeus itemizes for the king what the gods have done to the inhabitants of Thebes:    A blight is on our harvest in the ear, A blight upon the grazing flocks and herds, A blight on wives in travail; and withal Armed with his blazing torch the God of Plague Hath swooped upon our city emptying The house of Cadmus, and the murky realm Of Pluto is full fed with groans and tears.    The power of the gods seems quite awesome in their ability to inflict great injuries such as these on the population. King Oedipus, seeing Creon returning from the oracle at Delphi, addresses a brief prayer to King Apollo as the ultimate source of assistance in time of trial: â€Å"O King Apollo! may his joyous looks /Be presage of the joyous news he brings!† Creon brings to Thebes the message of the gods from the oracle: â€Å"Let me report then all the god declared. /King Phoebus bids us straitly extirpate /A fell pollution that infests the land, /And no more harbor an inveterate sore.†    The gods know that Oedipus is a â€Å"pollution,† a â€Å"sore,† which must be gotten rid of, expelled from Thebes. Charles Segal in Oedipus Tyrannus: Tragic Heroism and the Limits of Knowledge supports this view:    In his growing strength Oedipus begins to act as the ritual scapegoat, the pharmakos, the figure who is ritually laden with all... ...s Rex, edited by Michael J. O’Brien. Englewood Cliffs, NJ: Prentice-Hall, Inc., 1968.    Segal, Charles. Oedipus Tyrannus: Tragic Heroism and the Limits of Knowledge. New York: Twayne Publishers, 1993.    â€Å"Sophocles† In Literature of the Western World, edited by Brian Wilkie and James Hurt. NewYork: Macmillan Publishing Co., 1984.    Sophocles. Oedipus Rex. Transl. by F. Storr. no pag. http://etext.lib.virginia.edu/etcbin/browse-mixed new?tag=public&images=images/modeng&data=/texts/english/modeng/parsed&part=0&id=SopOedi -  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚      -  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Spengler, Oswald. â€Å"Tragedy: Classical vs. Western.† In Sophocles: A Collection of Critical Essays, edited by Thomas Woodard. Englewood Cliffs, NJ: Prentice-Hall, Inc., 1966.    Van Nortwick, Thomas.   Oedipus: The Meaning of a Masculine Life. Norman, OK: University of Oklahoma Press, 1998.   

Developmental Profile †Cognitive

The classroom is the venue with which a child learns how to use his/her cognitive abilities for greater understanding and mastery of educational skills like reading, problem solving, critical thinking and hypothesis testing. Piaget’s theory of cognitive development shows that each person undergoes cognitive milestones which have to be attained by a child before he/she can go into the next stage. Each stage is composed of cognitive skills that have to do with the cognitive processing of information (Atherton, 2005).For example, in the early stages a child first knows that he/she is separate from other people. Next, he/she is able to use language and can identify objects and what they represent. The school age child normally is able to think logically; makes use of number, mass and weight conservation and classify objects in terms of various characteristics. The last stage is when the child can think abstractly and test hypothesis as well as be concerned with ideological thinkin g and problems (Atherton, 2005).The classroom offers different activities that promote the learning of this cognitive sills, as well as delivering information and knowledge in ways that are cognitively appropriate for their age. This developmental profile report shows how the teacher supports the cognitive development of her students through the instructional approaches he/she uses in the classroom. Ms. Lisa is a 4th grade teacher, she is well aware that children are still in the concrete stage and that they are more able to understand the lessons if it is presented using concrete examples and models that the children could touch and feel or observe.For today’s lesson, Miss Lisa is introducing the concept of classifications; she has Amber, Stacy and Luis to help her in the lesson presentation. Ms. Lisa presents the 3 children with colored balls and in different shapes, She firsts asks Amber to describe what she sees and then to arrange the balls in size. Amber seems to smile because she knows that her task is very simple, she first places the golf ball in the line, followed by the baseball, then the volleyball and the basketball. Ms.Lisa check Amber’s work and is satisfied, she then asks the class why the balls are correctly lined up. Now Ms. Lisa tells Stacy to arrange the balls by color, Stacy claps gleefully as she proceeds to arrange the balls with the golf, baseball and volleyball on one side and the basketball on the other side. Stacy seeks the approval of her teacher as she asks whether her answer is correct. Ms. Lisa tells her it is correct and she smiles even more. Finally, Ms. Lisa tells Luis to arrange the balls in shape.The class fell silent and Luis scratched his head and made inquisitive looks to his teacher. He approached the balls not really sure of what to do since all the balls looked the same. Then Ms. Lisa encouraged him to go and try out his answer so he would know if it was right or not. In an instant, Luis eyes brightened a nd became rounder, he then went to the balls more confident and then went on to lump the balls in one pile. He smiled and said â€Å"that’s it, they are all round, and they are balls†. Ms. Lisa smiles and tells the class that Luis is right. The process that Ms.Lisa used to demonstrate classification of different characteristics using the same objects showed that the children have achieved the ability to classify objects, in the process the teacher have contributed to the self-esteem and confidence of the student in working with her class demonstration. Amber definitely knows she has the right answer and Ms. Lisa did not have to encourage her, on the other hand Stacy was unsure but tried her best, and Ms. Lisa affirmed her answer. Ms. Lisa however spent more time with Luis since he had difficulty with the task, but in a moment of insightful thinking, he was able to give the correct answer. Reference Atherton, J. (2005).   Learning and Teaching:   Piaget's developmental theory. Retrieved November 12, 2007, from http://www.learningandteaching.info/learning/piaget.htm   

Social Learning Theories and Juvenile Delinquency essays

Social Learning Theories and Juvenile Delinquency essays One of the major problems of youth today is the issue of juvenile delinquency in society. Murder, rape, motor vehicle theft, robbery, aggravated assault, larceny, arson, and burglary are acts of violence that are steadily rising due to juveniles taking part in committing these acts violence. As years continue to pass, there has been enormous concern of how parents, police, counselors, teachers, and friends feel that the ability to control or stop juvenile acts of violence is slowly slipping away over time and are desperately trying to alter behavioral patterns that continue into these dangerous ways of life. Before attempting to determine the cause for this specific kind of behavior, consideration has to be given to the area of location, background of an individual, family pattern, and life at home as these variables affect how a child is raised and how they react to violence. So, to get an understanding of why juveniles participate in violence and act the way they do, it is important to explore the social theories of learning. These theories include four different techniques in understanding deviant behavior. They are classical conditioning, operant conditioning, differential association, and differential reinforcement and should help society get a better feel of the negative behavioral patterns and thoughts of our youth and should hopefully change the way future generations carry out their everyday lives. The first social learning theory that is important to the study of delinquency is the classical conditioning theory. This is an automatic type of learning where individuals develop responses to certain stimuli that are not naturally occurring in the environment. The theory also states that if a person commits a carefully calculated crime, the result is that the individual experiences more pleasure than pain. Ivan Pavlov was a physiologist who attempted to prove this theory by con...

Childs Bath essays

Childs Bath essays The first painting I chose at the museum was an oil painting on canvas. It depicted a women and child in a very informal setting. The woman was tenderly holding a small child on her lap, while bathing her. I was drawn to the piece from across the room, by the soft, glowing toddler. The child was clothed only in a small white towel and her ivory skin seemed to glow against a muted background and it wasnt until I was very close to the painting that I even realized that there was another form in the composition. As I studied the painting further my eyes were drawn in the direction of the eyes of the two figures and it was then that I noticed the strong lines of the womans hands. They were a little out of proportion for a woman; they had an almost masculine quality. Yet against the soft rounded lines of the childs thigh there was a tenderness that was almost palatable. After reading the plaque next to this painting I learned that this artist used more masculine hands on all of her paintings of women and children to emphasize them. I think that it not only accomplishes that but the contrast between the strong lines and soft flowing lines leads to a feeling of stability. The combination of the muted colors, strong solid lines of the mothers hands, and the soft organic lines of the child all lead to a very peaceful, moving, tender portrayal of a mother and child. ...

Manet's Le Dejuner sur l'herbe and Bouguereau's Nymphs and Satyr Assignment

Manet's Le Dejuner sur l'herbe and Bouguereau's Nymphs and Satyr - Assignment Example The paper "Manet's Le Dejuner sur l'herbe and Bouguereau's Nymphs and Satyr" compares Manet's "Le Dejuner sur L'herbe" with Bouguereau's "Nymphs and Satyr". Manet’s work is an example of realism because it demonstrates the concepts of realistic within art. It attempts to represent what one would actually be able to â€Å"feel† or â€Å"see† with a sense of shock and demonstration. Manet’s work broke the mold of realism and depicted elements with some surreal aspects in order to highlight the main points behind the piece of work. This resulted in his work being labeled as â€Å"immoral† and â€Å"amateurish† because it was demonstrating the unexpected, while Bougueraeu was praised by critics. Bouguereau actually presented more of what was expected during this time for elements of realism to catch the attention of the audience. Many historians have considered ‘Dejuner’ to be the first modern work of art because it depicts all of th e elements generally present in modernistic pieces. While it presented elements of expected realism, it introduced concepts of modernity into the sphere of artistry, thus paving the way for more modern concepts in art. Impressionism- How did the advent of photography and/or the introduction of Japanese Ukiyo-e prints influence the impressionists in their abandoning of the stylistic characteristics of traditional painting? Choose an Impressionist work from the module to illustrate your answer. Since the Impressionists loved to paint landscapes and portraits like the Dutch Baroque artists of the 17th Century.

Current Asset Management and Financing Research Paper

Current Asset Management and Financing - Research Paper Example d patient load affect their day to day operations of hospitals, but other systemic and structural factors outside their realm of control cause major operational limitations. For hospitals in general, rising operational costs and shrinking profit margins have negatively affected the industry. It is estimated that in the U.S. around a third of all hospitals are operating with negative profit margins (Sussman, Jordahl, 2010). Some of the major macroeconomic factors affecting their financial viability are: Outdated and Inefficient Administrative Processes- The lack of computerized payment process systems, manual procedures, repetitive rework of outstanding claims and redundant data collections have all contributed to the diminishing bottom line of most healthcare hospitals. It has been estimated that around 30% of all claims filed by physicians have errors with around 15% of claims disappearing or getting lost in the process. For many hospitals around 80% of their claims are for small secondary payments ($100-$200) which often times go unclaimed or result in lengthy reimbursement delays .The overall complexity of the system also contributes to its operational inefficiency. The need for extra sources of reliable short term capital sources with reasonable terms, costs and risks will increase in the future. Most small hospitals even with excellent credit ratings do not have the access to bank credit that top-tier hospitals enjoy. As a general rule taking advantage of alternative sources of short term operating capital is paramount to their long term viability. Even with the improved operating and liquidity positions of most hospitals, internal capital or operating cash flow alone, will not be enough to sustain the level of growth and capital investment necessary to maintain competitiveness. Philanthropic donations will play an increasing role in the funding of hospitals operations. The investment income can also play a major role in providing operating capital.