Marketing Strategy Based on the Apex City of London Hotel Essay

Marketing Strategy Based on the Apex City of London Hotel - Essay Example Apex should also choose between business and tourist traffic in order to build a competitive edge. The prime location will not yield adequate returns with only a 4-star rating, and the management should plan for an upgrade. London is a major financial, tourist, and historical center. The 2012 Olympic Games and its aftermath will open additional market segments. The city also has a very large number of established and competitive lodging and boarding facilities. Hence, the long term prospects of a new hotel such as Apex cannot succeed without creative and systematic segmentation and accurate targeting as well (Payne, 2002). Apex targets both affluent tourist traffic, as well as middle-level business executives. This is apparent from how the rooms have been appointed, the location chosen, and the conference facilities (Welcome, 2007). This kind of blend is a copy of tactics followed in the past by competing 4-star facilities, but it is not an optimal strategy for Apex to follow. The hotel should either focus on tourist traffic, or specialize as a convention center. It will weaken its branding by trying to do both things (Nijssen and Frambach, 2000). It is true that London has potential revenues from both segments, but since Apex is a late entrant in a mature market, it would do better to specialize in any one of the two segments which it has served during its first year. Generic Strategy Apex could have focused on becoming a luxury hotel for top executives and for celebrity visitors to the city. The prime location chosen makes it suitable for such use. This find of focus generic strategy would have offered the management superior returns on investment (Porter, 1991). However, the hotel has chosen to compete on price. The discounts promotions, deals, and special offers, which Apex offers makes it a place of choice in the prime locality where it is situated. This generic strategy may be difficult to sustain in the long run, and it is probably not required given the enormous traffic through London. The hotel has probably lost significant cash flows through its deep discounts. The forthcoming London Olympics will impact this low-price strategy, as the hotel has established a reputation for discounts in travel circles, which it may not be able to withdraw during peak tourist arrivals (Barger & Kirby, 1995). Overall, the company has not tried to maximize returns on its ne w investment, and has probably

African Music Essay Example | Topics and Well Written Essays - 1250 words

African Music - Essay Example Placing African music in an historical and social context, brings to the fore the compiling of notes on the social context of African music; on African history; on the popularization of African music and on the instruments and styles of African music. The following text has been put together and a bibliography and appropriate reference is supplied at the end of the article. Africa covers about 11,714,000 square miles (30,339,000 square kilometers), more than a fifth of the earth’s total land area. The continent is an enormous plateau, most of which is covered by deserts, forests and grasslands. It is this vast mass of land that held the immense treasure of Africa called music. Music has been culturally part of and developed in Africa for thousands of years. Its wide range of styles evidently showed much of the country’s landscape. In northern Africa, music follows Arab traditions that consist mainly of chants and the use of various northern instruments but as shown but African music has also spread southward and influenced the music of peoples in parts of Chad, Ghana, Mali, Niger, Nigeria, Senegal and Sudan.

Teaching vocabulary Essay Example | Topics and Well Written Essays - 2000 words

Teaching vocabulary - Essay Example This is because, the LAD as a device which inheres man and helps him learn language, atrophies with age. The acquisition of language also goes hand in hand with the acquisition of vocabulary. Disinterest may also serve as a strong impediment to the acquisition of vocabulary since it is nearly impossible to educate someone on matters he is not interested in. Language-related illnesses and impairment such as Warnicke’s aphasia and global aphasia may be setbacks to the knowledge and acquisition of vocabulary. Those who have suffered global aphasia have great difficulty in understanding words and forming words. In the case of Warnicke’s aphasia, a student may: fail to realise that he is using wrong words; have great difficulty in understanding some words; and not appreciate how words are strung together to form a phrase, clause or a sentence. Again, those with Warnicke’s aphasia have a problem building vocabulary since Warnicke’s aphasia affects the region of the brain’s left hemisphere which is responsible for the understanding of words. Question B There are certain activities which a teacher can expend to solve some of the problems which have mentioned above. When dealing with linguistic barriers which non-native adult speakers use, it is important for me to use both incidental acquisition and direct study. This involves, having proficient and self-motivated students to read a lot of books which are suited for their age. The teacher can then follow incidental acquisition method with vocabulary logs and other techniques which shall also be divulged upon. It is also important to follow up the use of the incidental acquisition model with the provisions of direct study. The use of direct study models will help high-risk students struggling with vocabulary. The strength of direct study helps the student develop his vocabulary by: nurturing an independent reading culture; strengthening the learner’s ability to use context clues ; and strengthening the learner’s context-clues vocabulary acquisition. This measure above will therefore require the teacher to foster a classroom reading programme whereby he can: have the students read in turn; correct the reader’s phonology in case of a wrong pronunciation; have students identify the meaning of a newly encountered vocabulary by using context-cues [so that the student does not rush to the dictionary]; give learners the exact meaning of the newly encountered lexicons with an example of a sentence; and have the students record the same down and use them in a sentence. Again, it will be extremely helpful [of me and to me] to develop a multifaceted approach to vocabulary acquisition. This will entail helping learners to develop the culture of independent reading. As the teacher, I can help develop a recommended reading list, or form a recommended reading list with the school administration. The books in the reading list are those that should challenge t he gifted and the talented, and help slow learners. Thus, the books should be high-interest and low-level. Students will read some of these books independently. For the remaining books, the students can provide feedback by: making oral and written book reports; producing plot summaries; and [if time allows] making performances of key or important scenes. Similarly as an instructor, measures must be made to ensure that students are encouraged to use the different semantic significance of words. This involves, hav

Marketing Strategy Based on the Apex City of London Hotel Essay

Marketing Strategy Based on the Apex City of London Hotel - Essay Example Apex should also choose between business and tourist traffic in order to build a competitive edge. The prime location will not yield adequate returns with only a 4-star rating, and the management should plan for an upgrade. London is a major financial, tourist, and historical center. The 2012 Olympic Games and its aftermath will open additional market segments. The city also has a very large number of established and competitive lodging and boarding facilities. Hence, the long term prospects of a new hotel such as Apex cannot succeed without creative and systematic segmentation and accurate targeting as well (Payne, 2002). Apex targets both affluent tourist traffic, as well as middle-level business executives. This is apparent from how the rooms have been appointed, the location chosen, and the conference facilities (Welcome, 2007). This kind of blend is a copy of tactics followed in the past by competing 4-star facilities, but it is not an optimal strategy for Apex to follow. The hotel should either focus on tourist traffic, or specialize as a convention center. It will weaken its branding by trying to do both things (Nijssen and Frambach, 2000). It is true that London has potential revenues from both segments, but since Apex is a late entrant in a mature market, it would do better to specialize in any one of the two segments which it has served during its first year. Generic Strategy Apex could have focused on becoming a luxury hotel for top executives and for celebrity visitors to the city. The prime location chosen makes it suitable for such use. This find of focus generic strategy would have offered the management superior returns on investment (Porter, 1991). However, the hotel has chosen to compete on price. The discounts promotions, deals, and special offers, which Apex offers makes it a place of choice in the prime locality where it is situated. This generic strategy may be difficult to sustain in the long run, and it is probably not required given the enormous traffic through London. The hotel has probably lost significant cash flows through its deep discounts. The forthcoming London Olympics will impact this low-price strategy, as the hotel has established a reputation for discounts in travel circles, which it may not be able to withdraw during peak tourist arrivals (Barger & Kirby, 1995). Overall, the company has not tried to maximize returns on its ne w investment, and has probably

Teaching vocabulary Essay Example | Topics and Well Written Essays - 2000 words

Teaching vocabulary - Essay Example This is because, the LAD as a device which inheres man and helps him learn language, atrophies with age. The acquisition of language also goes hand in hand with the acquisition of vocabulary. Disinterest may also serve as a strong impediment to the acquisition of vocabulary since it is nearly impossible to educate someone on matters he is not interested in. Language-related illnesses and impairment such as Warnicke’s aphasia and global aphasia may be setbacks to the knowledge and acquisition of vocabulary. Those who have suffered global aphasia have great difficulty in understanding words and forming words. In the case of Warnicke’s aphasia, a student may: fail to realise that he is using wrong words; have great difficulty in understanding some words; and not appreciate how words are strung together to form a phrase, clause or a sentence. Again, those with Warnicke’s aphasia have a problem building vocabulary since Warnicke’s aphasia affects the region of the brain’s left hemisphere which is responsible for the understanding of words. Question B There are certain activities which a teacher can expend to solve some of the problems which have mentioned above. When dealing with linguistic barriers which non-native adult speakers use, it is important for me to use both incidental acquisition and direct study. This involves, having proficient and self-motivated students to read a lot of books which are suited for their age. The teacher can then follow incidental acquisition method with vocabulary logs and other techniques which shall also be divulged upon. It is also important to follow up the use of the incidental acquisition model with the provisions of direct study. The use of direct study models will help high-risk students struggling with vocabulary. The strength of direct study helps the student develop his vocabulary by: nurturing an independent reading culture; strengthening the learner’s ability to use context clues ; and strengthening the learner’s context-clues vocabulary acquisition. This measure above will therefore require the teacher to foster a classroom reading programme whereby he can: have the students read in turn; correct the reader’s phonology in case of a wrong pronunciation; have students identify the meaning of a newly encountered vocabulary by using context-cues [so that the student does not rush to the dictionary]; give learners the exact meaning of the newly encountered lexicons with an example of a sentence; and have the students record the same down and use them in a sentence. Again, it will be extremely helpful [of me and to me] to develop a multifaceted approach to vocabulary acquisition. This will entail helping learners to develop the culture of independent reading. As the teacher, I can help develop a recommended reading list, or form a recommended reading list with the school administration. The books in the reading list are those that should challenge t he gifted and the talented, and help slow learners. Thus, the books should be high-interest and low-level. Students will read some of these books independently. For the remaining books, the students can provide feedback by: making oral and written book reports; producing plot summaries; and [if time allows] making performances of key or important scenes. Similarly as an instructor, measures must be made to ensure that students are encouraged to use the different semantic significance of words. This involves, hav

The rest of the play Essay Example for Free

The rest of the play Essay The opening scene of A View from the Bridge contains a lot of clues and preparations for what is to come in the rest of the play. By just reading the title, the reader can tell a lot about what events will occur. The opening stage directions suggest the theme of the play before any characters are introduced, which is very significant. The first few lines of each persons speech hints at the type of character that each person is going to be, and many clues are given away to what is going to happen and why. The set can also give the audience some contextual information- by showing what time period it was in. This hints to what the story may lead to because of the particular things going on at this time in America, and also the idea of the American Dream. The title of the play is very significant. As the first thing you read, you can use it to predict/ sum up what will happen in the play. Obviously, you cannot tell from the title exactly what the plot will be, and what type of characters involved, however you do get an idea of the type of play that it is. The title A View from the Bridge can be interpreted as the idea of somebody watching down on a series of events. As the play is set in America, it is likely that the Bridge is Brooklyn Bridge, so you could see this as Alfieri watching Eddies household from Brooklyn Bridge. This is associated with the theme of Greek Tragedy, in that it gives the idea of someone watching down on what is happening. This shows a definite sense of inevitability and fate- showing that someone can see what is going to happen, but it cannot be avoided because it was meant to happen, suggesting that the characters are isolated and fate will run its course, and those watching from the bridge cannot intercept. Therefore just by looking at the title of the play, you know that it is going to be tragic- usually associated with a death. Another interpretation of the title is that Alfieri is the bridge, in that he is the bridge character between the audience and Eddie and his family, because his character enforces the Greek Tragedy theme, and the general theme of inevitability. His character represents the reality, as he shows the audience what the play is about and prepares them for what is to come. This interpretation also gives a sense of isolation of Eddie, as Alfieri connects to the audience-, which could also show that not only Alfieri, but the whole audience is seeing the View from the Bridge. The opening stage directions are important because this is the first time that the audience will see the set, and will begin to make assumptions or predictions about what is going to happen. They are very long and specific- again showing that everything is in its place, and fate will run its course. The first indication of death in these stage directions is in the second sentence: The front is skeletal entirely- this is very early in the play, straightaway suggesting that the tragedy will be happening soon.

Comparison of Beer Industry in Italy and Canada

Comparison of Beer Industry in Italy and Canada Introduction Beer is one of the most used beverages in the world next to coffee and tea. The beer industry therefore as we can imagine is one of the biggest industries in the world with many competitors inside of the industry. It is not surprising that many different kinds of beer and a variety of brands can be found in both Italy and Canada, and both of the countries has a long history of development of brewery industry as well. In this article, we are going to compare both of the countries markets, industry condition, cultural differences, political background and so forth, all those information will be taken into consideration, and be processed to make the final decision on which county environment is more suitable and beneficial for us to invest into. Some theories are going to be applied to analyse the cultural dimensions of both countries, such as Hofstedes cultural dimensions, and SWOT analysis, Porters Five Forces Model. Methodology What method do you use to compile your factbook and why? The methods i use to compile my factbook is that i are going to apply some frameworks from respected authors that are most applicable to my chosen industry (beer industry) such as Hofstede, SWOT analysis and Porters five forces. What prime theory and approaches do you draw on and why? Hofstedes Cultural Dimensions Hofstede measures the cultural dimensions differences in different countries. There are five dimensions in this framework, namely the Power Distance Index (PDI), the Individualism-Collectivism, Masculinity-Femininity and Uncertainty Avoidance. Since Hofstede measures cultural dimensions, therefore it will be used in the cultural system page of the paper when the cultural aspects are discussed. SWOT Analysis SWOT is the abbreviation for Strengths, Weaknesses, Opportunities and Threats. It is an analytical framework to help summarize in a quick and concise way the risks and opportunities for a certain company, for my case the beer industry in two different countries, Canada and Italy. The SWOT analysis looks into internal factors within the company/industry/country (Strengths and Weaknesses) and external factors outside the company/industry/country (Opportunities and Threats). This method will eventually help us to look at the main positive, (strength and opportunities), and the negative, (weaknesses and threats), sides of both countries when comparing. Initially this should help us decide on which country would be most attractive to invest in the beer industry. For this reason, this method will be used at the end of the paper, which will give us an conclusive overview of the both countries. Porters Five Forces Model Porters five forces model argues that there are five forces in an industry to determine the extent and scale of the competition. These five forces affect the industries attractiveness. It is an efficient tool to analyse competition in the industry. In this model, five forces are the threat of substitute products or services, the threat of the entry of new competitors, the intensity of competitive rivalry, the bargaining power of customers, and the bargaining power of suppliers. The industrys attractiveness is the primary and fundamental factor to deciding the profitability, and in any industry, the rule of competition will be reflected in any of the five competitive forces. The purpose of Porters five forces is to show the attractiveness of the beer industry in both Canada and Italy and to help investors decide in which country to enter in the beer industry, besides it could help companies to develop a particular strategy in the industry, and this theory might be used in chapter whic h deals with market / industry conditions. What method of data collection and analysis do you use and why? The methods i use to collect my data are searching my universitys library modules for useful academic articles and using a mix of articles from authors known through literature and the Theory Tutorials for my Comparative Country Studies course. Of course, the reliable information on Internet is also consulted as additional sources, and i have also analyzed the annual report of the company. The beer industry of Italy and Canada In this section, relevant market conditions that apply to the Italian and Canadian beer sector will be explained. The market can be separated according to different factors like size and attractiveness as well. If we divide the market according the different market shares which individual brewery holds, we can see that there are several main player in the beer industry in both of the countries. Italy Italy is famous for its wines, however, it is not well-known for its own beer. Generally speaking, Italy doesnt consume nearly as much beer as its European neighbour, however, there is a growing trend of consumption for beer in Italy, the beer in Italy is not as widespread as in its European neighbours, mainly because there is a historical preference for wine in the country. Italian breweries have undergone a Renaissance in recent years. In fact, only in the past few years, Italy has started having beer drinking and tasting competitions and many related festivals. Normally, this sort of activity is reserved for wine, however, nowadays beer is earning more and more respect from wine-preferred Italians, and even many young Italians prefer to support their countrys beer industry rather than the wine industry now, still, the Italian beer industry has much space to grow and be developed. There are some brands of beer in Italy, one of the oldest and most recognized breweries is Birra Peroni, which was established in 1846 and the headquarter of Peroni is in Rome. Peronis most famous product is a pilsner-style beer. Nastro Azzuro, which is also one of the few Italian beers that marketed all over the world, Nastro Azzuro, is a rather light style beer, many breweries are crafting darker, heavier beers that are rousing interest from new and experienced beer drinkers alike. In addition to those giant breweries, there are many microbreweries in Italy, and they play a important role and have a great portion of the market as well. A microbrewery particularly gains attention from young Italians is Birrificio Baladin, the brewery appeals to young generation through quirky advertisements and sponsoring international music festivals and young Italians think theres room in the global beer market for some of their most outstanding brews. Canada Traditionally, Canadas largest brewing companies were Labatts and Molson. In 1995, Labatts was purchased by an Belgian company which is called Interbrew and it is now a part of Brazilian-Belgian Anheuser-Busch InBev, the worlds largest brewing company and Molson, the other largest beer company, which was merged with US company Coors in 2005 and created a new company called Molson Coors, which is the worlds fifth largest brewing company now. In 2006, with the purchase of Sleeman Breweries, the largest remaining Canadian brewery was purchased by the Japanese owned Sapporo Brewery, Canadas beer production has been mainly under the control of foreign multinationals. By the end of 2006, nearly 90% of beer sales was of product brewed domestically under licence from non-domestic corporations. American beers brewed under licence dominate much of the market. For instance, Budweiser is brewed under licence in Canada by Labatts and Coors Light by Molson. The market in Canada for domestic beer is dominated by Labatt, Molson and Sleeman, all foreign-owned companies. The largest Canadian-owned brewer, Moosehead breweries, only controls about 5.5% of the Canadian market. Country comparison Macro-economic indicators Economy Canada population 33,487,208 (July 2009 est.). Italy population 58,126,212 (July 2009 est.). Economic freedom Canada world rank 6. Economic freedom Italy world rank 87. Finance Financial freedom for Canada: 80.0. Financial freedom in Italy 60.0 Canada investment freedom 75.0. Italy investment freedom 75.0. Canada Economy -GDP (Purchasing Power Parity) $ 1.335 trillion (2010 est.). Country comparison to the world: 15. $1.297 trillion (2009 est.) $1.33 trillion (2008 est.) -GDP Per capita (PPP) $39,600 (2010 est.) country comparison to the world: 22 $38,700 (2009 est.) $40,000 (2008 est.) -Inflation rate (consumer prices) 1.6% (2010 est.) country comparison to the world: 41 0.3% (2009 est.) Italy Economy -GDP (PPP) $1.782 trillion (2010 est.) country comparison to the world: 11 $1.763 trillion (2009 est.) $1.857 trillion (2008 est.) -GDP per capita (PPP) $30,700 (2010 est.) country comparison to the world: 43 $30,300 (2009 est.) $31,900 (2008 est.) -Inflation rate (consumer prices) 1.4% (2010 est.) country comparison to the world: 32 0.8% (2009 est.) Historical developments Italy Beer is known and drank in Italy very long time ago, Italians brewed and consumed the blond drink. It said that Roman Emperor Agricola was a fan of beer when he was the governor of Britannia, and in 83 AD Roman Emperor Agricola raised to the imperial throne and came back to Italy, he took three master brewers with him from Glevum of which the ancient name Gloucester and opened the first real pub in Italy. Nowadays beer is especially loved by young people in Italy, which has been seen as an informal drink, compared to the wine which is alway used in much more formal places. Aperitif and wine tasting have now gained back to wine many casual drinkers, however, until a few years ago, young Italians actually drank more beer than wine. Pub-styled bars are still very popular in Italy and they have spread the love for the more exotic brands of beer: many of them serve Japanese, German, Australian and East European beers along with the more known ones brewed in the UK and Belgium. At least one bottle of Birra cinese (Chinese beer) is served on every table of every Chinese restaurant. Canada Beer was first introduced to Canada by European settlers in the seventeenth century, as Canada had an ideal climate for making and storing beer before refrigeration was introduced. The first commercial brewery was built by Jean Talon in Quebec City, in the year 1668. Over a century later a number of commercial brewers thrived, including some that became the staple of the Canadian industry: John Molson founded a brewery in Montreal in 1786, Alexander Keith inHalifax in 1820, Thomas Carling in London in 1840, John Kinder Labatt in 1847, also in London, Susannah Oland in Halifax in 1867, and Eugene OKeefe in Toronto in 1891. The very first patent to be issued by the Canadian government on July 6, 1842, was to one G. Riley for an improved method of brewing ale, beer, porter, and other maltliquors. Prohibition in Canada did not last as long as in the U.S. and was largely over by the mid 1920s (apart from Prince Edward Island, where it ran from 1901 to 1948). Nevertheless, it had a similar effect of leaving very few brewers, and it was only in the late twentieth century that there has been a revival and microbreweries have started. Brewpubs are still illegal in some provinces. Cultural system Hofstedes Cultural Dimensions of Italy and Canada Power Distance Individualism Masculinity Uncertainty Avoidance Italy Higher More collective More masculine Strong Canada Lower More individualistic More feminine Weak Power distance Canada is lower on the Hofstedes power distance index than Italy, Italy falls in the middle on the index overall. Italian seems to expect differences in power between people. Canadas Power Distance (PDI) is relatively low, with an index of 39, compared to a world average of 55. This is indicative of a greater equality between societal levels, including government, organizations, and even within families. This orientation reinforces a cooperative interaction across power levels and creates a more stable cultural environment. Individualism The more collective nature of Italy compared to Canada can be seen in many ways. It is not uncommon for grown children to live with their parents for years. Italian businesses are primarily owned by individuals and families. Business is preferably done with people with which one is familiar. Unacquainted guests will not be invited into an Italian home. Coffee or dinner will be taken with non-family members at a cafe or restaurant. Canada has Individualism (IDV) as the highest ranking (80) Hofstede Dimension, and is indicative of a society with a more individualistic attitude and relatively loose bonds with others. The populace is more self-reliant and looks out for themselves and their close family members. Masculinity Italy is a fairly masculine society and ranks slightly higher on this index than Canada. Many Italian men still treat women with gallantry and value machismo. Although women have entered the workforce, their numbers are still small and few are in upper echelon positions. Italian household are the sole domain of women; Italian women for the most part cook, clean and care for the children. Italians place a prime importance on material possessions. It is very important to look good in Italy. However, like a more feminine culture, Italians also know how to take time to appreciate the good things in life. Italians work in order to live rather than living to work. Ambition is not prevalent in Italian culture. Therefore i assume that beer as a informal beverage, it is more popular under this kind of cultural background rather than more formal cultural background countries. Uncertainty Avoidance Italy avoids uncertainly more strongly than Canada. By and large Italians prefer to do business with people they know. In addition, Italians prefer to know something about an individual before they speak with him/her on the phone. Thus, in business one should send an introductory fax and follow-up with a phone call. Political/Government System Beer or malt liquor, is defined as all fermented liquor brewed in whole or in part from malt for the purposes of the Excise Act, grain or any saccharine matter without any process of distillation, but does not include wine. Italian Alcohol Taxes and Duties Legislative Framework Alcohol Duty Beer (5% ABV or 12ËÅ ¡ Plato) 0.12Â £ per pint Wine (bottle 11.5% ABV) 0.00Â £ per 75 cl As we can see in the table of different rates of duty applies to beer in Italy, which contains following level of duty. Italy is a member of the European Union, therefore it shares the Common External Tariff regime. EU duties are charged by the Italian Customs Agency on the CIF (cost, insurance and freight) value of the product imported into Italy. The Alcohol Act (2001) bans TV and radio advertising of alcoholic products between 4PM and 9PM and prohibits alcohol advertisements from being shown on TV within 15 minutes before or after any childrens programs. The Act also requires a self-regulatory code to be provided jointly by media companies, advertising agencies and advertisers to govern alcohol advertising. For the legal drinking age, there is no minimum age of legal drinking. And the legal purchasing age of alcohol is 16 and 18. South Tyrol prohibits both serving and purchase for people under the age of 18 and to everybody in a state of inebriation. Milan has enforced a ban on those under 16 purchasing alcohol. Heavy fines are given to proprieters and parents if a transaction is completed. Canadian Alcohol Taxes and Duties Legislative Framework Beer Duty Up to 1.2% alcohol $2.591/hectolitre 1.2% to 2.5% alcohol $13.990/hectolitre Over 2.5% alcohol $27.985/hectolitre As we can see in the table of different rates of duty applies to beer, which contains following level of duty: (1) more than 2.5% absolute ethyl alcohol by volume; (2) more than 1.2% but not more than 2.5% absolute ethyl alcohol by volume; and (3) less than 1.2% absolute ethyl alcohol by volume, and for all beer containing more than 2.5% absolute ethyl alcohol by volume, the rate of excise duty is currently $27.985 per hectolitre. However, excise duties are not imposed on beer provided it is brewed by a person for personal or family use or to be given away without charge and is not for sale commercially. Canadian government showed how highly they value beer production and its breweries by lowering the taxes exercised on beer production. This is a benefit to the industry. As one of the leaders of the whole economy of Canada, the beer sector is likely to maintain these tax benefits and other benefits might be offered as well to the beer sector to develop the Canadian beer industry. In Canada, alcohol was taxed pursuant to the Excise Act previously. However, a new regime in Canada for the federal taxation of certain alcohol, including spirits and wines, was introduced in the Excise Act, 2001, which was implemented effective July 1, 2003. Excise duties on beer (and malt liquor) continue to be imposed under the Excise Act. Generally, different excise duty treatment applies to alcohol for non-beverage use. A licence is required authorizing certain alcohol operations under both the Excise Act, 2001, and the Excise Act. For beer, a licence is only required under the Excise Act for the commercial operation as a brewery, for example, the place where beer is manufactured. All brewery licensees are required to post and maintain security with the Canadian government. The amount of security is set at a minimum of $5,000. Generally, beer is subject to an excise duty that is imposed and becomes payable during the production process. The legal drinking and purchasing age in Canada are both 19. However, In some areas such as Ontario, Saskatchewan, British Columbia, Newfoundland and Labrador, Nova Scotia, Northwest Territories, Yukon, and Nunavut, underage drinking under parental supervision is permitted, with some restrictions, on ones own property in the provinces of New Brunswick andOntario and at home in the provinces of Prince Edward Island, British Columbia and Saskatchewan. InBritish Columbia, only children of the supervising parents, not any other minors such as guests, are allowed underage drinking. Consumption of alcohol in another persons home is subject to other laws. Major players The brewing industry had become extremely concentrated in Canada by the 1970s, being dominated by just three major companies, which are Molson, Labatt, and Carling-OKeefe. Canadas largest brewing companies were Labatts and Molson as we mentioned in the previous overview of industry condition of both countries. In 1995, Labatts was purchased by an Belgian company which is called Interbrew which is now part of Brazilian-Belgian Anheuser-Busch InBev, the worlds largest brewing company and Molson, the other largest beer company, which was merged with US company Coors in 2005 and created a new company called Molson Coors, and it is the worlds fifth largest brewing company now. In 2006, the largest remaining Canadian brewery was purchased by the Japanese owned Sapporo Brewery, Canadas beer production has been mainly under the control of foreign multinationals. By the end of 2006, nearly 90% of beer sales was of product brewed domestically under licence from non-domestic corporations. American beers brewed under licence dominate much of the market. For instance, Budweiser is brewed under licence in Canada by Labatts and Coors Light by Molson. The market in Canada for domestic beer is dominated by Labatt, Molson and Sleeman, all foreign-owned companies. The largest Canadian-owned brewer, Moosehead breweries, only controls small portion of the Canadian market. Italy hosts a few breweries, with the largest owned by the best known Italian and foreign brands. Peronis brewery produces the best known Italian beer: la Peroni. Peroni also produces the premium beer Mastro Azzurro and the brands WÃ ¼hrer, and lesser known Raffo. Heineken Italy brews its famous Heineken, but has also acquired the brands Moretti, Ichnusa, Birra Messina and Dreher. Carslberg owns a few brewerys in Northern and Central Italy. In Northern Italy, Forst brews its own branded beer as well as the famed Menabrea. In Friuli Venezia Giulia the latest brand of Italian beer Birra Castello, has been active since 1997. Along with these big players, there are lots of microbreweries small scale breweries that produce small quantities of beer, they also have premium quality. Major finding of comparison and recommendations Making a decision in which country to invest is not so easy, because of all those different variances in both of the counties, some of the variances are strength for Canada, however, some of them are favorable for Italy. In the first place, the tax rates between Canada and Italy differ. In Canada the rates are relatively lower than in Italy due to the fact that the tax level is relatively high in the European context. In addition to this, the Canadian government reduced taxes even more to benefit Canadian brewers. Secondly, when a look is taken at macroeconomic indicators like GDP per capita we see that Canada is a bit more favorable. However, since this differences are so small, both of the countries that we have chosen are developed countries, and GDP per capita which above certain level has a relatively weak influence on the consumption of beer. Therefore, this factor is not likely to have a significant influences on the desicion of investment in the countries. Thirdly, the population above legal drinking age in the markets has been calculated starting from the age at which alcohol consumption is allowed. This would mean that we start counting the population starting from 18 years old in Italy (some area start from 16 years old) and 19 years old in Canada. We find that the relative amount of people able to purchase and consume alcohol in Italy is larger than in Canada, because the whole population is larger in Italy than in Canada, and the population of legal drinking age are also higher in Italy than in Canada, therefore, the potential market in Italy are larger than in Canada. Lastly, when comparing markets according to its players and their market shares we find that Canada has a more concentrated market with high market share large players and many small players. Italy on the other hand has two old players with a high share and one smaller player while the rest of the market consists of really small players. It would therefore be an advantage to invest in the Italian market; trying to gain and increase a market share because of the fact that there are many foreign players already play very important roles in the Canadian market, Molson Coors Brewing company and Anheuser-Busch InBev have a market share of 42,70 and 42,20 percent respectively. Third place is hold by Moosehead Brewing company with a share of 5,90 percent. These three main players hold 90,8 percent of the market in total by volume. Taking all those facts into consideration, i would say that Italy would be the country that we are going to invest in. As we explained above, we analysed both countries SWOT, for Italy, the strength is market size, the weakness is relatively higher tax rate on alcohol, and the opportunities is that there are only two big old players and some extreme small players, gaining or increasing a share is relatively easy, and the market of Italy are more potential, because Italy still on the growing phase of beer industry. Moreover, since the age allowed to drink in Italy starting from the age of 18 and in some areas are even lower to 16, and with more population in Italy, therefore the market is bigger in Italy than in Canada. In addition, nowadays the Italian government highly values the Italian beer industry due to the impact on its economy and therefore taxes are getting lower and lower. And the threats of Italy is that new public policy may harm the beer industry, such as the advertising policy we mentioned before which bans the ads of alcohol in specific period of time on TV. Comparison of Beer Industry in Italy and Canada Comparison of Beer Industry in Italy and Canada Introduction Beer is one of the most used beverages in the world next to coffee and tea. The beer industry therefore as we can imagine is one of the biggest industries in the world with many competitors inside of the industry. It is not surprising that many different kinds of beer and a variety of brands can be found in both Italy and Canada, and both of the countries has a long history of development of brewery industry as well. In this article, we are going to compare both of the countries markets, industry condition, cultural differences, political background and so forth, all those information will be taken into consideration, and be processed to make the final decision on which county environment is more suitable and beneficial for us to invest into. Some theories are going to be applied to analyse the cultural dimensions of both countries, such as Hofstedes cultural dimensions, and SWOT analysis, Porters Five Forces Model. Methodology What method do you use to compile your factbook and why? The methods i use to compile my factbook is that i are going to apply some frameworks from respected authors that are most applicable to my chosen industry (beer industry) such as Hofstede, SWOT analysis and Porters five forces. What prime theory and approaches do you draw on and why? Hofstedes Cultural Dimensions Hofstede measures the cultural dimensions differences in different countries. There are five dimensions in this framework, namely the Power Distance Index (PDI), the Individualism-Collectivism, Masculinity-Femininity and Uncertainty Avoidance. Since Hofstede measures cultural dimensions, therefore it will be used in the cultural system page of the paper when the cultural aspects are discussed. SWOT Analysis SWOT is the abbreviation for Strengths, Weaknesses, Opportunities and Threats. It is an analytical framework to help summarize in a quick and concise way the risks and opportunities for a certain company, for my case the beer industry in two different countries, Canada and Italy. The SWOT analysis looks into internal factors within the company/industry/country (Strengths and Weaknesses) and external factors outside the company/industry/country (Opportunities and Threats). This method will eventually help us to look at the main positive, (strength and opportunities), and the negative, (weaknesses and threats), sides of both countries when comparing. Initially this should help us decide on which country would be most attractive to invest in the beer industry. For this reason, this method will be used at the end of the paper, which will give us an conclusive overview of the both countries. Porters Five Forces Model Porters five forces model argues that there are five forces in an industry to determine the extent and scale of the competition. These five forces affect the industries attractiveness. It is an efficient tool to analyse competition in the industry. In this model, five forces are the threat of substitute products or services, the threat of the entry of new competitors, the intensity of competitive rivalry, the bargaining power of customers, and the bargaining power of suppliers. The industrys attractiveness is the primary and fundamental factor to deciding the profitability, and in any industry, the rule of competition will be reflected in any of the five competitive forces. The purpose of Porters five forces is to show the attractiveness of the beer industry in both Canada and Italy and to help investors decide in which country to enter in the beer industry, besides it could help companies to develop a particular strategy in the industry, and this theory might be used in chapter whic h deals with market / industry conditions. What method of data collection and analysis do you use and why? The methods i use to collect my data are searching my universitys library modules for useful academic articles and using a mix of articles from authors known through literature and the Theory Tutorials for my Comparative Country Studies course. Of course, the reliable information on Internet is also consulted as additional sources, and i have also analyzed the annual report of the company. The beer industry of Italy and Canada In this section, relevant market conditions that apply to the Italian and Canadian beer sector will be explained. The market can be separated according to different factors like size and attractiveness as well. If we divide the market according the different market shares which individual brewery holds, we can see that there are several main player in the beer industry in both of the countries. Italy Italy is famous for its wines, however, it is not well-known for its own beer. Generally speaking, Italy doesnt consume nearly as much beer as its European neighbour, however, there is a growing trend of consumption for beer in Italy, the beer in Italy is not as widespread as in its European neighbours, mainly because there is a historical preference for wine in the country. Italian breweries have undergone a Renaissance in recent years. In fact, only in the past few years, Italy has started having beer drinking and tasting competitions and many related festivals. Normally, this sort of activity is reserved for wine, however, nowadays beer is earning more and more respect from wine-preferred Italians, and even many young Italians prefer to support their countrys beer industry rather than the wine industry now, still, the Italian beer industry has much space to grow and be developed. There are some brands of beer in Italy, one of the oldest and most recognized breweries is Birra Peroni, which was established in 1846 and the headquarter of Peroni is in Rome. Peronis most famous product is a pilsner-style beer. Nastro Azzuro, which is also one of the few Italian beers that marketed all over the world, Nastro Azzuro, is a rather light style beer, many breweries are crafting darker, heavier beers that are rousing interest from new and experienced beer drinkers alike. In addition to those giant breweries, there are many microbreweries in Italy, and they play a important role and have a great portion of the market as well. A microbrewery particularly gains attention from young Italians is Birrificio Baladin, the brewery appeals to young generation through quirky advertisements and sponsoring international music festivals and young Italians think theres room in the global beer market for some of their most outstanding brews. Canada Traditionally, Canadas largest brewing companies were Labatts and Molson. In 1995, Labatts was purchased by an Belgian company which is called Interbrew and it is now a part of Brazilian-Belgian Anheuser-Busch InBev, the worlds largest brewing company and Molson, the other largest beer company, which was merged with US company Coors in 2005 and created a new company called Molson Coors, which is the worlds fifth largest brewing company now. In 2006, with the purchase of Sleeman Breweries, the largest remaining Canadian brewery was purchased by the Japanese owned Sapporo Brewery, Canadas beer production has been mainly under the control of foreign multinationals. By the end of 2006, nearly 90% of beer sales was of product brewed domestically under licence from non-domestic corporations. American beers brewed under licence dominate much of the market. For instance, Budweiser is brewed under licence in Canada by Labatts and Coors Light by Molson. The market in Canada for domestic beer is dominated by Labatt, Molson and Sleeman, all foreign-owned companies. The largest Canadian-owned brewer, Moosehead breweries, only controls about 5.5% of the Canadian market. Country comparison Macro-economic indicators Economy Canada population 33,487,208 (July 2009 est.). Italy population 58,126,212 (July 2009 est.). Economic freedom Canada world rank 6. Economic freedom Italy world rank 87. Finance Financial freedom for Canada: 80.0. Financial freedom in Italy 60.0 Canada investment freedom 75.0. Italy investment freedom 75.0. Canada Economy -GDP (Purchasing Power Parity) $ 1.335 trillion (2010 est.). Country comparison to the world: 15. $1.297 trillion (2009 est.) $1.33 trillion (2008 est.) -GDP Per capita (PPP) $39,600 (2010 est.) country comparison to the world: 22 $38,700 (2009 est.) $40,000 (2008 est.) -Inflation rate (consumer prices) 1.6% (2010 est.) country comparison to the world: 41 0.3% (2009 est.) Italy Economy -GDP (PPP) $1.782 trillion (2010 est.) country comparison to the world: 11 $1.763 trillion (2009 est.) $1.857 trillion (2008 est.) -GDP per capita (PPP) $30,700 (2010 est.) country comparison to the world: 43 $30,300 (2009 est.) $31,900 (2008 est.) -Inflation rate (consumer prices) 1.4% (2010 est.) country comparison to the world: 32 0.8% (2009 est.) Historical developments Italy Beer is known and drank in Italy very long time ago, Italians brewed and consumed the blond drink. It said that Roman Emperor Agricola was a fan of beer when he was the governor of Britannia, and in 83 AD Roman Emperor Agricola raised to the imperial throne and came back to Italy, he took three master brewers with him from Glevum of which the ancient name Gloucester and opened the first real pub in Italy. Nowadays beer is especially loved by young people in Italy, which has been seen as an informal drink, compared to the wine which is alway used in much more formal places. Aperitif and wine tasting have now gained back to wine many casual drinkers, however, until a few years ago, young Italians actually drank more beer than wine. Pub-styled bars are still very popular in Italy and they have spread the love for the more exotic brands of beer: many of them serve Japanese, German, Australian and East European beers along with the more known ones brewed in the UK and Belgium. At least one bottle of Birra cinese (Chinese beer) is served on every table of every Chinese restaurant. Canada Beer was first introduced to Canada by European settlers in the seventeenth century, as Canada had an ideal climate for making and storing beer before refrigeration was introduced. The first commercial brewery was built by Jean Talon in Quebec City, in the year 1668. Over a century later a number of commercial brewers thrived, including some that became the staple of the Canadian industry: John Molson founded a brewery in Montreal in 1786, Alexander Keith inHalifax in 1820, Thomas Carling in London in 1840, John Kinder Labatt in 1847, also in London, Susannah Oland in Halifax in 1867, and Eugene OKeefe in Toronto in 1891. The very first patent to be issued by the Canadian government on July 6, 1842, was to one G. Riley for an improved method of brewing ale, beer, porter, and other maltliquors. Prohibition in Canada did not last as long as in the U.S. and was largely over by the mid 1920s (apart from Prince Edward Island, where it ran from 1901 to 1948). Nevertheless, it had a similar effect of leaving very few brewers, and it was only in the late twentieth century that there has been a revival and microbreweries have started. Brewpubs are still illegal in some provinces. Cultural system Hofstedes Cultural Dimensions of Italy and Canada Power Distance Individualism Masculinity Uncertainty Avoidance Italy Higher More collective More masculine Strong Canada Lower More individualistic More feminine Weak Power distance Canada is lower on the Hofstedes power distance index than Italy, Italy falls in the middle on the index overall. Italian seems to expect differences in power between people. Canadas Power Distance (PDI) is relatively low, with an index of 39, compared to a world average of 55. This is indicative of a greater equality between societal levels, including government, organizations, and even within families. This orientation reinforces a cooperative interaction across power levels and creates a more stable cultural environment. Individualism The more collective nature of Italy compared to Canada can be seen in many ways. It is not uncommon for grown children to live with their parents for years. Italian businesses are primarily owned by individuals and families. Business is preferably done with people with which one is familiar. Unacquainted guests will not be invited into an Italian home. Coffee or dinner will be taken with non-family members at a cafe or restaurant. Canada has Individualism (IDV) as the highest ranking (80) Hofstede Dimension, and is indicative of a society with a more individualistic attitude and relatively loose bonds with others. The populace is more self-reliant and looks out for themselves and their close family members. Masculinity Italy is a fairly masculine society and ranks slightly higher on this index than Canada. Many Italian men still treat women with gallantry and value machismo. Although women have entered the workforce, their numbers are still small and few are in upper echelon positions. Italian household are the sole domain of women; Italian women for the most part cook, clean and care for the children. Italians place a prime importance on material possessions. It is very important to look good in Italy. However, like a more feminine culture, Italians also know how to take time to appreciate the good things in life. Italians work in order to live rather than living to work. Ambition is not prevalent in Italian culture. Therefore i assume that beer as a informal beverage, it is more popular under this kind of cultural background rather than more formal cultural background countries. Uncertainty Avoidance Italy avoids uncertainly more strongly than Canada. By and large Italians prefer to do business with people they know. In addition, Italians prefer to know something about an individual before they speak with him/her on the phone. Thus, in business one should send an introductory fax and follow-up with a phone call. Political/Government System Beer or malt liquor, is defined as all fermented liquor brewed in whole or in part from malt for the purposes of the Excise Act, grain or any saccharine matter without any process of distillation, but does not include wine. Italian Alcohol Taxes and Duties Legislative Framework Alcohol Duty Beer (5% ABV or 12ËÅ ¡ Plato) 0.12Â £ per pint Wine (bottle 11.5% ABV) 0.00Â £ per 75 cl As we can see in the table of different rates of duty applies to beer in Italy, which contains following level of duty. Italy is a member of the European Union, therefore it shares the Common External Tariff regime. EU duties are charged by the Italian Customs Agency on the CIF (cost, insurance and freight) value of the product imported into Italy. The Alcohol Act (2001) bans TV and radio advertising of alcoholic products between 4PM and 9PM and prohibits alcohol advertisements from being shown on TV within 15 minutes before or after any childrens programs. The Act also requires a self-regulatory code to be provided jointly by media companies, advertising agencies and advertisers to govern alcohol advertising. For the legal drinking age, there is no minimum age of legal drinking. And the legal purchasing age of alcohol is 16 and 18. South Tyrol prohibits both serving and purchase for people under the age of 18 and to everybody in a state of inebriation. Milan has enforced a ban on those under 16 purchasing alcohol. Heavy fines are given to proprieters and parents if a transaction is completed. Canadian Alcohol Taxes and Duties Legislative Framework Beer Duty Up to 1.2% alcohol $2.591/hectolitre 1.2% to 2.5% alcohol $13.990/hectolitre Over 2.5% alcohol $27.985/hectolitre As we can see in the table of different rates of duty applies to beer, which contains following level of duty: (1) more than 2.5% absolute ethyl alcohol by volume; (2) more than 1.2% but not more than 2.5% absolute ethyl alcohol by volume; and (3) less than 1.2% absolute ethyl alcohol by volume, and for all beer containing more than 2.5% absolute ethyl alcohol by volume, the rate of excise duty is currently $27.985 per hectolitre. However, excise duties are not imposed on beer provided it is brewed by a person for personal or family use or to be given away without charge and is not for sale commercially. Canadian government showed how highly they value beer production and its breweries by lowering the taxes exercised on beer production. This is a benefit to the industry. As one of the leaders of the whole economy of Canada, the beer sector is likely to maintain these tax benefits and other benefits might be offered as well to the beer sector to develop the Canadian beer industry. In Canada, alcohol was taxed pursuant to the Excise Act previously. However, a new regime in Canada for the federal taxation of certain alcohol, including spirits and wines, was introduced in the Excise Act, 2001, which was implemented effective July 1, 2003. Excise duties on beer (and malt liquor) continue to be imposed under the Excise Act. Generally, different excise duty treatment applies to alcohol for non-beverage use. A licence is required authorizing certain alcohol operations under both the Excise Act, 2001, and the Excise Act. For beer, a licence is only required under the Excise Act for the commercial operation as a brewery, for example, the place where beer is manufactured. All brewery licensees are required to post and maintain security with the Canadian government. The amount of security is set at a minimum of $5,000. Generally, beer is subject to an excise duty that is imposed and becomes payable during the production process. The legal drinking and purchasing age in Canada are both 19. However, In some areas such as Ontario, Saskatchewan, British Columbia, Newfoundland and Labrador, Nova Scotia, Northwest Territories, Yukon, and Nunavut, underage drinking under parental supervision is permitted, with some restrictions, on ones own property in the provinces of New Brunswick andOntario and at home in the provinces of Prince Edward Island, British Columbia and Saskatchewan. InBritish Columbia, only children of the supervising parents, not any other minors such as guests, are allowed underage drinking. Consumption of alcohol in another persons home is subject to other laws. Major players The brewing industry had become extremely concentrated in Canada by the 1970s, being dominated by just three major companies, which are Molson, Labatt, and Carling-OKeefe. Canadas largest brewing companies were Labatts and Molson as we mentioned in the previous overview of industry condition of both countries. In 1995, Labatts was purchased by an Belgian company which is called Interbrew which is now part of Brazilian-Belgian Anheuser-Busch InBev, the worlds largest brewing company and Molson, the other largest beer company, which was merged with US company Coors in 2005 and created a new company called Molson Coors, and it is the worlds fifth largest brewing company now. In 2006, the largest remaining Canadian brewery was purchased by the Japanese owned Sapporo Brewery, Canadas beer production has been mainly under the control of foreign multinationals. By the end of 2006, nearly 90% of beer sales was of product brewed domestically under licence from non-domestic corporations. American beers brewed under licence dominate much of the market. For instance, Budweiser is brewed under licence in Canada by Labatts and Coors Light by Molson. The market in Canada for domestic beer is dominated by Labatt, Molson and Sleeman, all foreign-owned companies. The largest Canadian-owned brewer, Moosehead breweries, only controls small portion of the Canadian market. Italy hosts a few breweries, with the largest owned by the best known Italian and foreign brands. Peronis brewery produces the best known Italian beer: la Peroni. Peroni also produces the premium beer Mastro Azzurro and the brands WÃ ¼hrer, and lesser known Raffo. Heineken Italy brews its famous Heineken, but has also acquired the brands Moretti, Ichnusa, Birra Messina and Dreher. Carslberg owns a few brewerys in Northern and Central Italy. In Northern Italy, Forst brews its own branded beer as well as the famed Menabrea. In Friuli Venezia Giulia the latest brand of Italian beer Birra Castello, has been active since 1997. Along with these big players, there are lots of microbreweries small scale breweries that produce small quantities of beer, they also have premium quality. Major finding of comparison and recommendations Making a decision in which country to invest is not so easy, because of all those different variances in both of the counties, some of the variances are strength for Canada, however, some of them are favorable for Italy. In the first place, the tax rates between Canada and Italy differ. In Canada the rates are relatively lower than in Italy due to the fact that the tax level is relatively high in the European context. In addition to this, the Canadian government reduced taxes even more to benefit Canadian brewers. Secondly, when a look is taken at macroeconomic indicators like GDP per capita we see that Canada is a bit more favorable. However, since this differences are so small, both of the countries that we have chosen are developed countries, and GDP per capita which above certain level has a relatively weak influence on the consumption of beer. Therefore, this factor is not likely to have a significant influences on the desicion of investment in the countries. Thirdly, the population above legal drinking age in the markets has been calculated starting from the age at which alcohol consumption is allowed. This would mean that we start counting the population starting from 18 years old in Italy (some area start from 16 years old) and 19 years old in Canada. We find that the relative amount of people able to purchase and consume alcohol in Italy is larger than in Canada, because the whole population is larger in Italy than in Canada, and the population of legal drinking age are also higher in Italy than in Canada, therefore, the potential market in Italy are larger than in Canada. Lastly, when comparing markets according to its players and their market shares we find that Canada has a more concentrated market with high market share large players and many small players. Italy on the other hand has two old players with a high share and one smaller player while the rest of the market consists of really small players. It would therefore be an advantage to invest in the Italian market; trying to gain and increase a market share because of the fact that there are many foreign players already play very important roles in the Canadian market, Molson Coors Brewing company and Anheuser-Busch InBev have a market share of 42,70 and 42,20 percent respectively. Third place is hold by Moosehead Brewing company with a share of 5,90 percent. These three main players hold 90,8 percent of the market in total by volume. Taking all those facts into consideration, i would say that Italy would be the country that we are going to invest in. As we explained above, we analysed both countries SWOT, for Italy, the strength is market size, the weakness is relatively higher tax rate on alcohol, and the opportunities is that there are only two big old players and some extreme small players, gaining or increasing a share is relatively easy, and the market of Italy are more potential, because Italy still on the growing phase of beer industry. Moreover, since the age allowed to drink in Italy starting from the age of 18 and in some areas are even lower to 16, and with more population in Italy, therefore the market is bigger in Italy than in Canada. In addition, nowadays the Italian government highly values the Italian beer industry due to the impact on its economy and therefore taxes are getting lower and lower. And the threats of Italy is that new public policy may harm the beer industry, such as the advertising policy we mentioned before which bans the ads of alcohol in specific period of time on TV.