Sunday, January 26, 2020

Analysis Of BMW Financial Position And Performance Accounting Essay

Analysis Of BMW Financial Position And Performance Accounting Essay This is a financial analysis report on BMW. Specifically, in the first part of this report, the financial position and performance of BMW for the four financial years from 2008 to 2011 will be firstly re-formulated, and the financial ratios for the company will be computed for analysis purposes. In order to perform a throughout financial analysis on the company, the trends of the financial ratios of BMW will be analyzed. Then, the financial statements of Audi will also be reformulated and the respective financial ratios for Audi will also be computed. The financial performance of Audi will be used to compare to the performance of BMW, to gauge the relative performance of BMW, as compared to one of the peer within the industry. Then, in the second part, BMWs forecasted value of equity per share at the end of the fourth financial (i.e., at FY 2011) will also be computed. Recommendations will be provided if the stock is a good investment choice, based on the various findings derived fr om this study. 1.2 Company Background Today, BMW is the worlds best-selling manufacturer of premium cars (Rauwald, 2012). BMW is founded in 1916; and is headquartered in Munich, Germany. Today, the company has more than 96,000 workforces at 24 production facilities in 13 countries and had penetrated to around 140 countries in the world (Avery Bergsteiner, 2011). BMW is also a company emphasizing on corporate social responsibilities (Stamoulakis Bridwell, 2009). Some of the competitors of BMW include Audi and Mercedes-Benz, whereby these companies has also been competing with BMW in important markets such as China (Rauwald Pearson, 2011a). Referring to Table 1 below, the various business segments BMW is operating within is shown. The major revenue contribution of the company comes from selling automobiles, and then followed by car financing activities. Table 1: The Various Business Segments BMW Operating Within Source: Worldscope Table 2 below however shows the various geographical regions BMW is operating within. As shown from the figure, the revenue generated from BMW sales in China is improving fast, while the revenue generated from the United States are stagnating. Indeed, prior to the financial crisis, United States is the biggest market for BMW (Rauwald, 2010). In contrast, as discussed in Muller (2010), BMW growth in recent years had largely driven by the increase of sales from emerging countries. This is a trend worth acknowledging in analyzing the current financial performance and to predict the future probable performance of the firm. Table 2: The Various Geographical Region BMW Operating Within Source: Worldscope Part I: Analysis of BMW Financial Position and Performance In Part I, the financial analysis on BMW will be performed through two major methods, firstly by reviewing the trends of the financial metrics of BMW and its competitor; and secondly, through the review of various financial ratios of BMW and to compare the ratios to the competitors ratios. 2.1 Trend Analysis A Review of BMW Past Performances 2.1.1 Profitability Ratios Based on Table 3 below, the various profitability ratios of BMW are shown. As measured by the Return on Assets, Return on Equity and Return on Invested Capital, BMW performance is generally well-performing in FY2007, but subsequently suffered to a minimal profitability in FY2008 towards FY 2010, before returning to superior profitability situation in FY2011. This is not surprising. In FY2008, the world financial crisis hit, and the automotive industry, which is cyclical in nature, are impacted adversely (Peterson, 2008). Indeed, the entire automotive industry fall into a turmoil as auto sales have plunged in the United State and Europe; while sales faced stagnation in previously booming markets like China and India (Rauwald, 2009b). In 2009, as discussed within Rauwald (2009a), BMW suffered losses due to recession as the sales and demand of luxury cars stalled. This is logical as in recessionary period, people cut down spending and luxury product manufacturers are often the most im pacted as the product demand are highly elastic. Then, qualitatively speaking, in FY 2010, the profitability improvement in BMW is due to improved efficiency significantly in all areas of the company (during the restructuring programme of BMW in the global financial crisis) as well as favourable exchange-rate fluctuations for the company (Rauwald, 2010). Next, Rauwald Schmidt (2012a) had however attributed the significant enhanced of BMW performance due to the companys comprehensive transformation, via cutting jobs and costs since 2007 (which include a cut of more than 8,100 jobs and reduction of more than 6 billion Euros in costs). This is also true as based on the employee per sales figure, the company is showing positive improvement as in recent years, more sales are generated per employee. Aside from that, it is also observed that the ratio of research and development to sales ratios has also been high, approximately around 5%. This is because BMW has been investing in research and development activities for further innovations in the future. For example, one of the recent innovations of BMW is development of eco-super car through the Vision Efficient Dynamics concept (Kable, 2010). Overall, based on the profitability ratios, a gross profit margin of 24% and the Return on Equity ratio of 19.2% in the recent years suggest that BMW is a well performing firm. Nonetheless, the fact that the firm could be seriously affected by recession also suggests that the business is cyclical, and therefore, the business risk faced by the firm and investors could be high. Table 3: Trends of Profitability Ratios of BMW Source: Worldscope 2.1.2 Asset Utilization Ratios Based on Table 4 below, the various asset utilization ratios, such as assets per employee, total assets turnover, inventory turnover and net sales to gross fixed assets are shown. Overall, there is a trend of improvement on these ratios. As discussed in Rauwald Schmidt (2012b), the strong performance of BMW is primarily contributed by the strength of the BMW, MINI and Rolls-Royce brands as well as improvements in efficiency. The improved of efficiencies can be noted as the assets per employees had increased (i.e., fewer employees as compared to the total assets), and the higher total assets and inventory turnover ratios (as the company is more able to generate more sales from every unit of asset). Table 4: Trends of Asset Utilization Ratios of BMW Source: Worldscope 2.1.3 Leverage Ratios Based on Table 5 below, the trends of use of debt financing and capital structure of BMW are shown. Overall, it can be noticed that BMW is a highly geared firm, as the long term debt within the capital structure has been consistently high throughout the past few years, i.e., at approximately 60%. Then, the portion of debt is also far outweigh the portion of equity, and as indicated by the total debt to common equity ratio, the total debt is approximately more than 2 to 3 times the total amount of equity. Overall, this suggests that BMW is heavily leveraged and the firm would face higher finance risks (such as solvency, liquidity and interest payment risks) in hard times. In contrast, the firm would make high return on equity for the shareholders due to use of leverage. Therefore, part of the reasons contributing to the high return on equity for BMW is through the use of high leverage within the firm. Table 5: Trends of Leverage Ratios of BMW Source: Worldscope 2.1.4 Liquidity Ratios Based on Table 6 below, the various liquidity ratios such as quick ratio and current ratio are shown. Overall, the liquidity position of BMW is marginally satisfactory, as the current and quick ratio fall around the range of 1. A more conservative ratio would be a current ratio of more than 2 times. Then, it is also noted that throughout the years, the proportion of receivables in the current assets is the highest, followed by cash, and then inventories. This is however unavoidable, as most of the customers would purchase the luxury cars on credit. Table 6: Trends of Liquidity Ratios of BMW Source: Worldscope 2.1.5 A Review of the Financial Performance Trends of BMW In order to form an overview of the financial performance of BMW in the past few years, the general profitability picture of BMW is presented in Figure 1. As shown below, prior to the crisis, BMW has been in a rising profit position for more than a decade (Avery Bergsteiner, 2011). However, unfortunately, the firm performance is badly affected during the global financial crisis (as discussed previously). During the period of financial crisis, the net income, return on equity and total common equity fall sharply. Nevertheless, upon the crisis, the profitability of BMW surged sharply. Avery Bergsteiner (2011) had found that one of the reasons contribute to fast BMW recovery from the global financial crisis in 2008 is due to sustainable leadership model and processes within the company. Therefore, this suggests the resiliency and the quality of the management within the firm as satisfactory and competent. Then, another trend worth discussing is that in the recent years, BMW car sales have been increasing significantly in the China market (Rauwald, 2012). Indeed, as discussed within Schafer (2011), much of the sales increases of BMW come from the growth of sales from China and India. Such a trend had contributed significantly as even in FY2011 and FY2012, BMW sales in Europe are facing challenges due to sovereign debt crisis (Rauwald Pearson, 2011a). Similarly, as discussed within Schafer (2011), the sales of BMW cars are slow in Europe due to the slow recovery within the region. Figure 1: Net Income, Equity, ROE and ROCI Trends of BMW C:Documents and SettingsHappyGoLuckyDesktopData Collectiondatareturn analysis chart.jpg Source: Worldscope 2.2 Peers Financial Ratios Comparisons In this section, in order to understand the financial position and the performance of BMW in the context of its industry as well as in relation to its peers, the various financial ratios of BMW, the peers and one of its leading competitors, namely Audi will be performed. 2.2.1 Growth Rates related Ratios As shown in Table 7, the various growth rates of BMW is compared to the peers and Audi. Firstly, it is noted that the growth of sales of BMW is slightly worse than the growth of Audi, but significantly worse off than the peers. In other words, both Audi and BMW are performing less satisfactorily as compared to the industry average. Therefore, while the financial picture of BMW is recovering and experiencing sharp upturns in FY2011, the firm is actually down perform as compared to the industry average. Table 7: Trends of Growth Rates of BMW, Audi and Peers Company BMW AG Peer Mean Audi AG Last Fiscal Yr End Date 12/31/2011 12/31/2011 Key 1 Year Growth Rates Sales 1Yr Growth 13.80 22.22 24.42 Operating Income 1Yr Growth 53.21 47.75 57.09 Net Margin 1Yr Growth 32.92 104.88 36.41 Net Income 1Yr Growth 51.26 149.43 69.72 EPS 1Yr Growth 51.12 146.47 69.73 Total Assets 1Yr Growth 11.71 14.54 19.56 Equity 1Yr Growth 13.11 8.58 13.72 Key 5 Year Growth Rates Sales 5Yr Growth 7.03 15.17 7.20 Operating Income 5Yr Growth 16.39 23.44 14.71 Net Margin 5Yr Growth 3.92 7.76 18.21 Net Income 5Yr Growth 11.22 23.09 26.72 EPS 5Yr Growth 11.21 21.35 26.72 Total Assets 5Yr Growth 9.18 12.25 14.00 Equity 5Yr Growth 7.17 9.09 11.83 Source: Thomson One Banker As shown in Table 8, the figures of growth rates of several financial metrics are also computed, from the reformulated financial statements (as shown in Appendix at the end of this document). Overall, it can be observed that both Audi and BMW financial performance move in tandem, whereby the good performance of both company tend to be happen at the similar time. For instance, the growth of sales was negative for both of the firm at FY2009. Then, the growth rates of common shareholder equity also tend to be similar in terms of magnitude. For example, the growth rate of shareholder equity has been slight negative or positive at FY2009. However, the growth rate of operating income (after tax) for both the company tend to be less similar. This could be due to the operational management differences between the two firms. Table 8: Trends of Growth Rates of BMW to Audi Profitability R 2009 2010 2011 Growth Rate in Sales BMW -4.73% 19.33% 13.80% Audi -12.74% 18.77% 24.42% Growth Rate in OI (after tax) BMW 352.36% -20.66% 49.91% Audi -43.17% 128.13% 60.40% Growth Rate in NOA BMW 31.36% 13.02% -10.94% Audi 10.86% 47.64% -4.07% Growth Rate in CSE BMW -1.79% 15.94% 17.18% Audi 2.62% 9.30% 13.72% Source: Computed from Reformulated Financial Statement 2.2.2 Profitability Ratios As shown in Table 9, the profitability related ratios for BMW, peers and Audi are shown. Overall, the profitability margins of BMW would be slightly lesser than that of the Audi (particularly from the net margin perspective), but would be higher than that of the peers. This is because BMW operate within the luxury car segment, and therefore, the margins would be higher, as the majority of other competitors go for the volume for profitability. Therefore, the asset turnover of BMW and Audi is lower significantly than the peers, as the company focus on the luxury niche segment. Aside from that, it could be seen that the RD expense to sales ratio for BMW (and Audi) is higher than that of the peers. For this, one of the successes of BMW comes from investing heavily in extra production capacity and new technology constantly (Rauwald, 2012). Table 9: Profitability Related Ratios for BMW, Peers and Audi Company BMW AG Peer Mean Audi AG Last Fiscal Yr End Date 12/31/2011 12/31/2011 Asset Turnover 0.57 0.85 1.25 Pretax Margin 10.73 13.70 ROA 4.37 13.86 Return on Invest Cap 5.62 34.13 Reinvest Rate 13.25 37.59 35.68 R D to Sales 4.90 3.43 5.09 Gross Profit Margin 24.62 19.45 18.57 Operating Profit Margin 11.42 6.92 9.54 Pretax Margin 10.73 13.70 Net Margin 7.09 9.95 Source: Thomson One Banker Table 10 is about the profitability ratios of BMW and Audi, computed from the reformulated financial statements (as shown in Appendix at the end of this document). Overall, it can be seen that Audi would perform slightly better than BMW, although from the net profit margin perspective, BMW outperform Audi in FY2010 and FY2011. Then, it is also observed that the financial margins of BMW are more volatile as compared to Audi. Therefore, the risks (from the standard deviation perspective) for BMW are higher. Nonetheless, as discussed before, BMW is performing well in terms of cutting down the expense. This can be observed as the portion of administration costs to the sales ratio for BMW has been decreasing from FY2008 towards FY2011; whereby the ratio for Audi had been staying relatively constant (around 8-10%). This reaffirm that BMW had been slowly transform itself into a more efficient organization. Table 10: Trends of Profitability Ratios of BMW to Audi 2008 2009 2010 2011 Operating Profit Margin BMW 0.95% -0.09% 5.71% 8.03% Audi 5.27% 3.43% 6.59% 8.50% Sales Profit Margin BMW 1.95% 9.27% 6.17% 8.12% Audi 5.27% 3.43% 6.59% 8.50% Other Items Profit Margin BMW 0.00% 0.00% 0.00% 0.00% Audi 2.82% 2.86% 2.87% 2.90% Net Profit Margin BMW 1.25% 0.13% 5.23% 7.75% Audi 6.46% 3.52% 3.07% 5.91% Expense Ratio Admin Costs BMW 9.59% 9.91% 7.98% 7.83% Audi 9.47% 10.52% 8.57% 8.16% Expense Ratio Distribution Costs BMW -0.21% 0.10% 0.24% 0.50% Audi 0.88% 1.01% 1.06% 0.97% Operating Profitability (RNOA) BMW N/A 14.55% 9.55% 14.27% Audi N/A 12.48% 21.87% 30.03% Financing Profitability (RNFA) BMW N/A 0.70% 0.98% 1.37% Audi N/A 5.07% 5.54% 9.98% Source: Computed from Reformulated Financial Statement 2.2.3 Asset Utilization ratios Table 11 is about the asset utilization related ratios for BMW, Audi and peers. Overall, BMW down perform both Audi and the peers from asset turnover and inventory turnover perspective. Indeed, Audi perform best in utilizing assets in generating revenue. This shown that BMW may not be effective to the peers and Audi in leveraging on the assets to generate sales, and there are much room for improvement to significantly enhance the asset utilization ratios for the firm. Table 11: Asset Utilization Related Ratios for BMW, Audi and Peers Company BMW AG Peer Mean Audi AG Last Fiscal Yr End Date 12/31/2011 12/31/2011 Asset Turnover 0.57 0.85 1.25 Inventory Turnover 5.11 8.52 8.85 Source: Thomson One Banker 2.2.4 Leverage Ratios Table 12 is about the comparisons of leverage related ratios between BMW, Audi and peers. Obviously from the figure of the industry mean score, it can be noticed that most of the automotive manufacturers are highly geared. Indeed, as it is discussed that BMW is a firm that relied heavily on debt instrument for financing its operations, the industry average figure is even higher. In stark contrast, Audi is a lowly leveraged firm. Indeed, the use of debt is very minor within the firms capital structure. Table 12: Leverage Ratios Related Ratios for BMW, Audi and Peers Company BMW AG Peer Mean Audi AG Last Fiscal Yr End Date 12/31/2011 12/31/2011 Total Debt to Common Equity 245.94% 250.96% 9.39% LT Debt to Common Equity 133.58% 146.61% 0.17% LT Debt to Total Capital 56.96% 41.23% 0.16% Dividend Payout 17.46% 15.80% 0.00% Cash Dividend Coverage Ratio 7.13 21.08 #N/A Source: Thomson One Banker In Table 13 below, trends of leverage ratios of BMW and Audi, computed from the reformulated financial statements (as shown in Appendix at the end of this document) are presented. Similar to the discussions presented above, the financial leverage ratio of BMW is significantly higher than the case of Audi. However, from the operating liability leverage ratio perspective, the figures of the two firms are roughly comparable. Table 13: Trends of Leverage Ratios of BMW to Audi 2008 2009 2010 2011 Financial Leverage Ratio (FLEV) BMW 0.299 0.414 0.413 0.410 Audi 0.256 0.198 -0.128 0.054 Capitalization Ratio BMW 1.378 1.843 1.796 1.365 Audi 0.781 0.844 1.140 0.962 Operating Liability Leverage Ratio (OLLEV) BMW 1.093 0.663 0.645 1.011 Audi 1.479 1.381 1.058 1.268 Source: Computed from Reformulated Financial Statement 2.2.5 Liquidity Ratios In Table 14 below, the liquidity related ratios for BMW, Audi and peers are compared and presented. It is noted that the liquidity position of BMW, as measured from all of these ratios, i.e., quick ratio, current ratio, cash and equivalent to current assets ratio, account receivables days as well as inventories days held are not only down performing the peers, but also perform much badly as compared to the situation of Audi. Indeed, Audi is having strong liquidity position, thereby indicating that the firm is unlikely to suffer from any near term liquidity issues. Audi had also outperformed the peers significantly and based on the findings above that Audi is a lowly geared firm; the firm is financially conservatively managed. Table 14: Liquidity Related Ratios for BMW, Audi and Peers Company BMW AG Peer Mean Audi AG Last Fiscal Yr End Date 12/31/2011 12/31/2011 Quick Ratio 0.82 1.00 1.32 Current Ratio 1.04 1.28 1.60 Cash Equivalent to Current Assets 23.52 32.24 41.13 Accounts Receivable Days 136.25 102.07 61.22 Inventories Days Held 71.44 48.60 41.24 Source: Thomson One Banker 2.2.6 Summary Overall, while BMW is a profitable firm, and the firm is performing very well in FY2011 (i.e., experiencing sharp recovery) such performance can be largely attributed to the industry wide recovery situation around the world. However, the performance of BMW would seem to be lacking, more risky and less efficiently, effectively and conservatively managed when compared to the peers. This is particularly when compared to Audi, as Audi had found to be having much stronger and yet conservative financial position and performance. It can be summarized that BMW performed unsatisfactorily as compared to the other automotive manufacturers. Part II: Valuation In this section, valuation of BMW stock will be performed via the discount cash flow model. In order to compute the company value via this method, the dividend distributed to the investors will be treated as the proxy of the cash flow to the investors. Currently, the latest dividend payment from BMW is EUR 2.30 (Figure 2, the indicated dividend payment from the management). Then, from Figure 3, the growth rate of the dividend yield/ payment (i.e., the growth rate of the cash flow of the firm) range from 0.23% (i.e., 3-years growth rate) to 1.01% (i.e., 3-years growth rate). Theoretically, the longer term growth rate should be used. However, the global financial meltdown in FY2008 to FY2009 would be considered as anomalies (the black swan event), and therefore, it is unfair to take the three year average figure for the firm. Therefore, conservatively, a growth rate of 0.5% would be assumed to represent the growth rate of dividend payment for the investors. Then, in order to compute th e required rate of return for BMW, the risks pertaining to the firm will be considered. As BMW is found to be highly geared, a required rate of return of above 10% would be necessary. Therefore, conservatively speaking, a required rate of return of 15% is justifiable. Hence: D = EUR 2.30 g = 0.5% r = 15% Firm value = D (1+g) (r-g) = 2.3 (1+0.005) (0.15-0.005) = 2.3 (1.005) (0.145) = EUR 15.94 Therefore, a very conservative firm value for BMW from the dividend discount model (i.e., Gordon Growth Model valuation method) is only EUR 15.94. This is even much lower than the analysts target price of EUR 75.60 (Figure 2). Therefore, from the valuation method applied, it is unwise to purchase into BMW stock. Figure 2: Estimates from Analyst C:Documents and SettingsHappyGoLuckyDesktopUK0538 Advanced financial statement analysisData Collectiondatathomson forecast report.jpg Source: Thomson Financial Figure 3: Estimates from Analyst C:Documents and SettingsHappyGoLuckyDesktopUK0538 Advanced financial statement analysisData Collectiondatastock valuation.jpg Source: Thomson Financial In Table 15 below, the price multiple of BMW, peers and Audi is shown. It is shown that BMW stock prices is valued at 10 times earnings multiple, as compared to Audi (which is only 5 times earnings multiple). Indeed, from the other two yardsticks, namely price to book value and price to cash flow ratios, BMW stock is valued more expensively. Then considering that the financial position and performance of BMW is significantly lower than the peers, and particularly, to Audi, the high price multiples of BMW would justify a sell comment on the stock. Table 15: Market Value Related Ratios for BMW, Audi and Peers Company BMW AG Peer Mean Audi AG Last Fiscal Yr End Date 12/31/2011 12/31/2011 Current P/E Ratio 10.17 5.15 Price/Book Ratio 1.84 1.33 1.81 Price/Cash Flow Ratio -11.10 1.94 3.34 Source: Thomson One Banker Then, from the qualitative perspective however, looking forward, competition between automotive manufacturers in China could be intensifying and this could affect how BMW compete with other car manufacturers (Rauwald, 2012). However, some analysts had also been optimistic as they anticipate growth in markets such as China and Russia which would contribute to higher BMW sales in these emerging regions (Rauwald Schmidt, 2012a). Then, as discussed in Reed Schafer (2010), the rise of sales in China is primarily due to the branding and the quality of the cars sold by BMW. Therefore, the growth story of BMW in emerging regions would be in doubts, as the competitors, such as Audi has also strong performance in these emerging regions. Therefore, from a more conservatively perspective, it is reasonable to conclude that even it is expected that BMW could profit from the emerging countries, which would also not justify the high valuation of the stock. Hence, it is not rational to purchase i nto the stock of the company at the current price. In contrast, investors seeking exposure to automotive industry would be better to purchase the stock of Audi, as the firm is financially conservatively and operational effectively managed, and yet, having a low price multiple. References Avery, G. C., Bergsteiner, H. (2011). How BMW successfully practices sustainable leadership principles. Strategy Leadership, 39(6), 11-18. Kable, G. (2010). Bolts from BMW. Autoweek, 60, 12-12. Muller, J. (2010). BMWs push for made-to-order cars. Forbes, 1. Penman, S. H. (2010). Financial Statement Analysis and Security Valuation, 4th Edition. McGraw-Hill Irwin, New York. Peterson, T. (2008). BMW 135i: High performance, low price. Business Week (Online). Rauwald, C. (2009a). Corporate news: BMW posts loss as unit sales fall 21%. Wall Street Journal. Rauwald, C. (2009b). Corporate news: BMW swings to $1.24 billion loss as luxury-car sales plunge. Wall Street Journal. Rauwald, C. (2010). Luxury demand drives BMW results. Wall Street Journal (Online). Rauwald, C. (2012). BMW, Porsche profits rise on higher sales. Wall Street Journal (Online). Rauwald, C., Pearson, D. (2011a). Corporate news: BMW cranks up profit view luxury-auto maker gains on emerging-market demand as European woes damp peugeot-Citroen. Wall Street Journal (Online). Rauwald, C., Pearson, D. (2011b). BMW raises sales, profit forecasts. Wall Street Journal (Online). Rauwald, C., Schmidt, N. (2012a). Managing careers: For BMW, a tough transformation pays off. Wall Street Journal (Online). Rauwald, C., Schmidt, N. (2012b). For BMW, a tough transformation pays off; no grand prix cars, but pole position in luxury market gives CEO reithofer a happy start to the new year. Wall Street Journal (Online). Reed, J., Schafer, D. (2010). Demand for luxury powers BMWs China sales. Financial Times. Schafer, D. (2011). BMW receives sales turbo-charge from China and India. Financial Times. Stamoulakis, D., Bridwell, L. (2009). BMWs approach to global warming and environmental management: Corporate social responsibility or greenwashing? Competition Forum, 7(1), 98-106. Subramanyam K. R., Wild, J. J. (2009). Financial Statement Analysis, 10th Edition. McGraw Hill, New York.

Saturday, January 18, 2020

Darden case study Essay

1. Using the full spectrum of segmentation variables, describe how Darden segments and targets the sit-down dining market. The types of segmentation include geographic, demographic, psychographic, and behavioral segmentation. For geographic segmentation, Darden has all of its Longhorn Steakhouse restaurants in the eastern half of the United States but they are trying to expand to the west coast. This is a great idea because out west is an untapped market with great potential for lots of earnings. Darden has a chance to redefine the image of steakhouses as is currently being done like the classiness that is being added to the brand. The customer traffic is increasing and Longhorn Steakhouse could potentially even overtake Outback Steakhouse as the premier steakhouse type of restaurant. For demographic segmentation, Red Lobster represents the opportunity Darden has to fill the gap between the young fast food concept and the upscale white-tablecloth restaurants. Red lobster is even making many changes to accommodate for the changing times around America which is causing sales to fall. With innovative concepts such as wood fired grilling resulting in a â€Å"taste of wood-grilled seafood† and investments in equipment and training, Darden is putting itself back in the spotlight to becoming recognized and respected. You can also never go wrong with fried shrimp so Red Lobster will always have that marketing card to play. The Psychographic segmentation is shown by how people want to feel positive emotions when they go out to restaurants such as the concept of a happy family and namely the mythical Italian family. Customers want to feel emotionally satisfied as much as they want to be physically satisfied by the food. Creating an authentic menu hits close to home because people get that warm and happy feeling when they see the authenticity. Even Olive Garden’s commercial â€Å"When you’re here, you’re family† and slogan show the feelings of connection that Americans want to feel and would be willing to come in for. Behavioral segmentation is shown in how less frequently Americans want to sit down at restaurants to eat their meals. With all of our financial constraints we are choosing different and more cost effective ways to eat out and have a good time with the family. Darden needs to use more cost effective ways to lower the meal prices so that family’s will once again be willing to eat out at a sit down restaurant on a regular basis.

Friday, January 10, 2020

Population Growth and Company

Introduction The main purpose of the research done in the report is to discover and analyze the strategic intent and various other strategies to evaluate the internal and external influences that the company could go through owing to the dynamic market it operates in. Moreover, the evaluation of these strategies would involve examining the company's performance in United States, the chosen host country. The performance would be looked upon with the use of the company's annual reports since financial position of an organization is an important indicator of performance in the market.The research conducted is based on the secondary research approach considering the fact that the data pertaining to the company's strategies and performance is available at various sources on internet. From the financial evaluation of the company, key findings extracted indicate that the company is running with fruitful profits and is expected to continue its good financial performance in the coming years. The sales growth rates are high and are expected to remain high.Moreover, its worldwide presence makes its inevitable for the company to yield high profits. This is cause if the company suffers a loss in one of the host countries, it offsets by the profit earned in other host countries, a benefit of global presence. Limitations of the study being conducted are numerous. Firstly, the research is a secondary research which may not be as useful in evaluating the internal and external strategies that the company adopts.Moreover, evaluation of the strategic environment may be accurate since the data on their website is authentic, but it may lack the truth which could have been obtained from the company through a qualitative research using the tool f In-Depth interviews with company officials or by gauging consumer perception of their brands, which could have helped in Judging their consumer demand and thus rightful profitability and expectation of future sales. The report would mainly be structured according to the priority of the findings that need to be extracted from the study.The first thing that would be evaluated is the company's and the host country's strategic environment analysis which would first involve the evaluation of various internal and external strategic environmental analytical tools. This would be followed y the analysis of the company's internal environment. The external strategy would be evaluated of the host country, as it serves as an external source. The next section would be dedicated to discussing the participation strategy of the company, which meaner identifying the initial market entry modes that the company used to enter the US market.Moreover, the reason for entry modes used in this country will be discussed as well, with the help of identifying the advantages and disadvantages of the entry modes used, internal and external environment the company had at the mime of its entrance in USA and the key influences that persisted in the coun try and that persuaded the company to expand in this host country. The next section would involve a review of performance of the company. This will be evaluated using financial reports of the company, helping us see the sales growth, profitability, market share and the effort put in for corporate social responsibility activities.Final section would be a forecast based on the secondary research conducted and the findings future prospects in the host country, by forecasting its sales growth levels it could expect in the US market. The forecast will be of the next five to ten years based on the financial performance, market share, sales growth and Corporate Social Responsibility in the host country. This would also help in identifying the key influencing factors that could have an impact on the company's future development in the host country and their impact on the company as a whole.The last section of the report would include certain recommendations based on the findings of the rese arch conducted for this report, thus helping us analytically and practically see whether the suggestions put forth could be implemented and have practicability enough to be used in reality (meaning they are not out of context though they can be hypothetical but must be realistic and implantable). 2. About the Company Deanne, the original company was found in Barcelona, USA in 1919 by Isaac Caracas as a small factory that produced yogurt. He named the organization Deanne which meant â€Å"Little Daniel† after his son Daniel Caracas.The first yogurt began selling in the year 1923 to the pharmacies due to it being recommended by doctors for its therapeutic qualities. Ten years later the company moved to France from USA and the first French factory was built. The company moved to New York later after the World War II and Daniel Caracas employed a Swiss-born Spaniard partner named Joe Metzger. The company name was changed in the USA to Daemon to give it a more American touch. In 1 968, Deanne aired its first campaign on TV. In the years, it launched its first diet (low fat) yogurt named Deanne Designated.In 1992 the company became an official sponsor of the national sports event of Olympics which was held then in Barcelona. Since 1998, the Group of Deanne has been categorized into three business divisions around the globe; Fresh Dairy Products (including courts, desserts and infant foods), Beverages (including mainly packaged water) and Biscuit and Cereal products. Geographically the company is now spread along countries in almost all the continents of the world (Empress, 1998). 3. Company and Host Country Strategic Environment Analysis 3. 1.Internal Environment Analysis The company aims towards resolving 6 issues as objectives of providing quality products to their customers; Innovation and rethink its achievements, embody approach positive power where the company aims to provide health food so as to embody it as a source of pleasure, connect, contact, conve rsation (this statement presents the fact that Deanne makes of use of every available meaner of contacting their customers), securing access to its raw materials, adapting the models and build its future (Deanne adopts the strategy of expanding in new markets (different countries) by adapting its models and products and lastly, growing reconciling economic and social ( this statement represents the fact that a company draws on its environment as measured by economic development. The mission of the company is to grow as a leader while working for the health of the consumers. Another part of its session is that it wishes to become a consultative organ for professionals through the various research activities it conducts and the company's culture.The reason for the company to be a market leader in the food industry is the fact that the company products, varieties in flavors and healthy pleasures. Considering the organizations situation, the company mainly employs the internal strategy of maintaining a sustainable growth levels based on its corporate philosophy or ideally high growth levels of its shares by taking into account the following criteria; supporting profitable Roth in the business account that is an elementary component for the type of industry the company operates in, privileging the operating margin for enjoying the profitability on investments and accomplishing human and social policies (a particular element helping the firm gain huge success).For the firm, to achieve these objective mentioned above, it has to develop a global vision which incorporates the core values that the firm operates on, thus displaying the internal environmental attributes of loyalty, customer relationship and customer satisfaction. Namely, the arioso attributes that the company values and is included in the set of its core values are following; Openness: The company quotes and defines this value in the following words â€Å"Diversity is a source of wealth and change a cons tant opportunity'. Curiosity: This refers to an approach towards awareness and forecasting accurately, being in sync with other people, not accepting rigid ideas and models and imagination. Agility: Energy, suppleness, adaptability, vivacity, speed Simplicity: The term simply refers to the attributes of informality and practicality in a management style.Enthusiasm: Zeal, determination to do something, willingness to achieve goals. Boldness: Willingness to explore new, unconventional ways and take risk. Passion: Conviction, enthusiasm to lead, pleasure of work and the ability to rise above expectations and achieve excellence. Appetite for challenge: Optimistic, zealous and physical desire to grow and take the lead. Humanism: Showing concern for individuals (in this case consumers, employees or citizens). Sharing and Responsibility: Approach emphasizing on dialogue, transparency and teamwork. Responsibility is mainly focused on safety of people and products, thus acting pop- socially and environmentally friendly.Respect of others: Is sensitive to cultural differences, and aims to treat social and commercial partners with respect. Proximity: Mainly this term represent the idea of staying close to everyone like colleagues, consumers and clients, suppliers, stockholders and society. The company earns about 31 percent of sales from emerging markets, which is close to the target that the company has set for business that is 40 percent of the business on emerging markets and 60 percent in developing nations. About 60 percent of the sales of the brand fall under the following brands, Deanne, Avian, LIZ and WAHOO. These brands thus enable the company to optimize its advertising outlays.The advertising outlay serves as a key source that provides the company with fruitful rewards in terms of profitable growth based on the core value innovation and closer customer relationships. Moreover this key strategy has merged with the extension and promotion of brands called tag bra nds like Vitamin for low fat products and Prince for brands pertaining to children. Being a global brand, Deanne consists of various business lines and in each of these branches or lines Deanne is the world market leader. The market leader session that it holds is owing to the factors like marketing expertise, industrial efficiency, the breadth of the product range, and Research and Development (R;D).The company gained its world position by building upon strong position both the closer customer relationships and balanced long term relationships with major retailers, unrivaled acquaintance with local consumers and a recognized capacity for effective communication. Another value that the company caters to and that defines the company's internal environment is the steady thirst for innovation to gain optimum consumer satisfaction. His process of developing a new innovative product begins with the identification of the customers' needs. Since the company attaches great importance to thi s matter, the brand is built upon recognized marketing expertise, efficient R;D, strong brands and unrivalled experience in the categories of nutrition and health. N order to maintain a sustainable growth, the company has gone all the way to build a dual philosophy unique program that has made the business' success inseparable from the respect of people and environment. The company's compassion for excellence has demonstrated its ability o the dynamic market and thus the changing environment it operates in. This the company does so with high potential commitment of their teams and simple structures that promote initiative and past experience they gained (Deanne. Com, 2012). 3. 1. 1 . Value-added Chain analysis Being the largest firm in the food industry, the company has designed its product in such a way so as to differentiate it from its competitors. He strategy to do this is to create the good's perceived value such as it is indicated as being a premium product, create loyalty of the brand in hearts of the consumers and thus achieve low price insensitivity (lesser magnitude fluctuations in demand owing to the changes in price). This the brand does through its focus on the quality, the health and the real taste of their product. Additional elements that add up to the loyalty are creativity, innovation and customers' service. The company spends a huge amount of money on R;D to adapt to the dynamic market. So to achieve this differentiation, the company employs an evaluation approach called Value-added Chain analysis. This method thus helps in understanding the part of operations of the company that create value.It specifies how a product moves from a raw material to its final form which is sold in the market (Annual Report, 2011). For this company, the value chain has been divided into two segments which are namely Primary activities and Secondary activities. 3. 1. 1 . 1. Primary activities The company aims for superior handling of the raw material of its prod ucts so as to reduce the damage to the minimum and thus improve the quality of yogurt. As part of this superior handling thus, the company makes yogurts using the best of ferments and fresh products to provide their customers with high quality food. This remarry activity is known as Inbound logistics.The operations of production along the same lines are aimed to be performed most efficiently. The operational efficiency is achieved by consistent manufacturing of products which they may call attractive and by responding promptly to customers' specifications thus producing products according to their specifications or preferences. For instance, the quality of yogurt is protected and sustained by its packaging. Furthermore, the label on the packaging has the main purpose of attracting customers and providing them with maximum necessary information about the product. The quality is further maintained by owing to its daily production. This is known as outbound logistics.Considering the ma rketing and sale of the function of the company, the company has a strong coordination among its R&D department, marketing department and product development department. According to the corporation, the key to success is product innovation. In the services, the company has the service of client telephone service which responds to the consumers' queries, doubts and takes into account their opinions regarding various things. The secondary activities that take place in the organization are pertaining to infrastructure where the company has highly efficient and developed information systems helping them better comprehend the customers' preferences in purchasing. For understanding the customer, the company implements various tools like phone interviews, focused groups and other types of market research.The company's human resource department has a compensation program that major aims to compensate employees in order to motivate them to work creatively and productively. Deanne further ma kes an immense amount of investment in Research and Development by investing in technologies which thus low them to produce products at a consistently high quality. Moreover, the company has certain systems and procedures installed helping them find highest quality raw materials for production (Deanne Sustainability Report, 2011) 4. External Environment analysis There are various external factors or environmental factors that impact the organization on the whole.One of the major factors that have an impact on the company and can be considered as an external factor is the Demographics of the country in which it is operating. The USA population accounts for approximately 313 million. The median age of the country is 36. Years with the median age of males being 35. 6 years and the median age of females being 38. 2 years. Population growth rate is 0. 899 percent as per 2011, thus indicating a low growth, though the company's popularity in the country is immense. Highest age demographic is on average 65 years. 82 percent of the country's population resides in the Urban cities and towns. Annual rate of change of arbitration in the country as of 2010 is 1. 2 percent. The net migration rate in the country is 3. 62 migrants per 1000 population in July 2011.According to the US law, the articles 4 and 12 state that all yogurts must contain the yogurt† consideration in case they have alive bacterium at high levels. By high levels of alive bacterium the law meaner Yogurt bacterium must not be less than 10 million per gram. The company fulfills this requirement to the highest level and thus faces no breach against law, thus operating efficiently. The country is a Mediterranean country, with people following a Mediterranean diet where yogurt is an essential component of people's diet and thus displays a huge market for the company's product. Not only US families, but families in other countries like Greece and Italy also consume yogurt as an essential part of their die t.The country's specific segments like children, parent's and grandparent's consume the product as a dessert, breakfast and snack or Just for pleasure, thus making the company's product a success in this host country. Moreover, company's products like Vitamin are targeted towards people who are self conscious and wish to look good so as to become acceptable in the society. These societal trends and the country's cultural trend are country's economy has grown substantially regardless of it being a developed nation beforehand as well and thus the willingness to pay higher for food has increased due o the country's economic development. The family consumption levels have increased leading to increased demand of the company's products in the US market.The US economy being the largest and most technologically powerful country has a per capita GAP of $48,100. GAP according to the Purchasing Power Parity (APP) is $15. 04 trillion in 2011. Real GAP growth of the economy is 1. 5 percent. Pop ulation below poverty line amounted to about 15. 1 percent which is very low, thus displaying the company's high demand in the economy. The composition of the industrial sector in the economy on the other hand is 19. percent as of 2011. Highest household income of the country is 30 percent as of 2007, with the distribution of family income, according to the Gin index amounting to 45 in 2007. Inflation rate is 3 percent, which is quite low compared to other host countries. He country comes under the top ten markets in which Deanne operates with a 7 percent share contributed to the total sales growth. These statistics thus display the ideal situation for the company and has thus shown a significant increase in the Group's profits owing to its profitable operations in USA (Index mind, 2012). Being a constitution based federal republic, strong democratic traditions are followed kin the country, thus indicating the country's openness to international participants into the economy. The US government thus divides the country's food products under three differentiations. First category of food products being taxed is those used by humans or animals for their diet, on which the tax levied is 7 percent.The second category is that including bread, flour, milk and milky products, fruits, vegetables and other food products related to this category. The tax levied on these products is 4 percent. The third group includes all products that are not included in the two categories above. The tax levied on these products is 16 percent. Deanne being a food producing company thus has to pay almost all three taxes mentioned, owing to its wide portfolio of food products (Mind, 2012). Being a highly technologically advanced nation, the country helped Deanne make use of its various efficient technical tools, thus making it easier for the company to evaluate and perform market research to find the sales potentials among the various food categories it offers.Looking at the census data, t he R&D expenditure allocated by the government to the manufacturing industries as a percentage of net sales has reduced from 0. 7 percent to 0. 4 percent. This has been due to the government's greater allocation of funds towards the ecological development representing that US nation is an CEO friendly nation working upon sustaining the health of its ecological system (United States Census Bureau, 2012). Considering the geographical location fact Or's that impact the company in the host country, Deanne is highly affected by the US agricultural market as food industry has a major chunk dedicated to agricultural products in the country.Generally the climate of the country is temperate. However in the states of Hawaii and Florida, the climate is tropical, in Alaska it is arctic, in the Great Plains which is situated on the west of the Mississippi River, and the climate is semi-arid. Considering these weather conditions, the company has launched food products taking into account these we ather conditions so as to attract customers to enjoy summers with chilly yogurt products which account for 58 percent, Baby nutrition accounting for 19 percent, Water accounting for 17 percent and Medical nutrition accounting for 6 percent. Deanne US market is an emerging market for the product Missouri†.The operations of the firm are running efficiently owing to its developed economy and high living standards, making the population willing to purchase their product higher compared to even the originating nation Spain. However, despite these fruitful rewards there are certain challenges which the company had to face owing to the existence of various international food manufacturing firms and small competitors in the form of restaurants, food stalls on streets and small scale food manufacturing companies. The introduction of the product Yogurt in the US market has brought about a huge boom in the company's sales. This Greek yogurt had gone through the benefits in the US economy , due to the fact that the economy had highly technologically advanced tools that the company could use for yogurt production.The one major benefit that helped the company flourish in the US economy due to this particular product is the adoption of a new technology which the company adopted so as to assist them in catering to the consumer demand. This technology helped the organization improve to only the quality of the yogurt being produced, but also enhance the quality of other products in the portfolio. However, like any other business, the company faces certain threats in the economy. 4. 1 . Porter's Five Forces Model Analysis 4. 1. 1. Threats of entrants The company when entered the US economy faced the threat of new competitors who might enter the economy. These included competitors like frozen yogurt producers like Tutu Fruit.Apart from that, being the initiator of and identifying the market for yogurt in US, it is probable that the company will face even more new entrants as the time goes by. 4. 1. 2. Power of Suppliers: It might be difficult for the company to operate in the host country owing to its unfamiliarity with the suppliers available and may thus give an opportunity to the suppliers to exploit their power and overcharge for the supplies being provided, thus increasing the company's cost. 4. 1. 3. Threat of Product substitutes: The company also faced the threat of substitute products of yogurts like the frozen yogurt of Tutu Fruit. However, being the initiator, the company is the market leader in yogurt production in the country. 4. 1. 4. Power of buyers:Being a market leader and a multinational, the company has the power to bargain its way from suppliers and gain the benefit of lower cost supplies, despite their unfamiliarity with the product since the suppliers in US would want to be a supplier of such a huge organization. 4. 1. 5. Intensity of rivalry among competitors: Despite being a market leader, the company still faces an intense compe tition in the product yogurt as well as in other product categories launched in the industry (Deanne Sustainability Report, 2011). 5. Participation Strategy After conducting a market research, Deanne identified some of the key success reduce to product and thus elaborate on the success of these products due to these factors. Vitamin, a product category of Deanne, is known for its good taste and low fat.Other factors were the numerous kinds of products that came under this product line. Vitiating includes products like drinks, mousse and a regular yogurt. This was a star product for the company since the company yielded huge amounts of profits from the sale of this product. The other factors that led the company's products to yield high profits are the high quality of products, taste and the health factor associated with these products. The company entered the US economy after conducting a comprehensive research to evaluate the potential of the products it offers. The results showed that US is an emerging market for the product Yogurt, and thus have a huge potential to grow in the US industry.Moreover, the decision of entering the US economy was taken mainly due to its strong economic situation and the availability of advanced infrastructure in terms of the technological tools available their that could help the organization produce its products in high quality. The strategy that it implemented while entering the country is a global strategy the many used while expanding in various countries around all the continents available. The strategy that the company adopted at the time was to achieve high growth rates or maintain a steady growth by establishing itself in the emerging markets of the products in the product portfolio of the company by conducting market research and evaluating the lifestyle trends of the country they target to enter. This is what was done when entering US market.The emerging markets were evaluated on two parameters by the company, the econ omic dimensions of product affordability by looking at the country's income trends and standard of living and alee-addition by evaluating the willingness of buying the product and how much consumers want the product. This the company did in order to stay in closer proximity to the foreign markets they wish to operate in, disperse around the globe to attain higher growth levels and stay more attuned to its market. The major strategy which the company implemented aimed for boosting the company's market share by achieving global presence in the products it offers. This it attempted to do so by focusing on three fundamental priorities.The first priority was to reweighs the reduce portfolios in order to ensure that the prices offered in each country are appropriate considering the country's economic scale of pricing. The second priority was to increasingly focus on the promotion and point of sale events of the company's products to ensure that the promotional and advertising activities a re reaching the right customers and are effective enough to attract their attention. The last priority is to initiate a shift in the advertising of the company's products to bring into limelight and focus upon the product's quality so as to ensure the customers get highest value for the money they pay.Thus the company participation strategy in the host country is mainly to identify the emerging markets in the products they offer and establish in them to attain its broader vision of global presence (Deanne 1 1, 2012). 6. Performance overview The company has been enjoying high profitability and high growth rates since its expansion globally. The company has experienced a solid growth of 7. 7 percent in HI in the first half of 2012 and a 5. 9 percent growth the like-for-like category of the divisions experienced a rising trend in the sales levels in the first half, particularly in the second quarter of the year. In United States, Deanne made 7 percent of its sales in 2011, which amount ed to 19. 3 billion Euro ($billion).

Thursday, January 2, 2020

Deviance, Crime, And Crime - 1805 Words

I found the topic â€Å"Deviance and Crime† to be particularly interesting because both terms concern individuals departing from norms and laws in society. The feelings that â€Å"Deviance and Crime† evoke in me are curiosity and compassion. I believe I feel curious about this topic, because of the underlying motives that people can have for acting the way they do. Also, it really fascinates me to learn the ways in which deviance and crime are constructed within a society, and the ties it has to race, class, and gender. Compassion goes hand in hand with curiosity, because comprehending motives will lead me to a brand new perspective. There are a few things I already know regarding this topic. I know that part of being deviant is rebellion. When an†¦show more content†¦I have learned family values and codes to look â€Å"normal† and act â€Å"normal. Anything outside being â€Å"normal† just stigmatizes you and gives you a label. Due to my gender, I was taught by my family to always wear light colors, and not show off too much skin. Also, to actively engage in school, play sports, and make many good religious friends. Whenever I saw people who had tattoos, piercings and dyed hair then I immediately thought he or she was a criminal. Even now that I’m 18 years old that view has stayed so intact. I judge people who work as srip dancers, because I have connect it to just sexual desire. My mom has put the idea that if I commit sins or break the law, it won’t only just make me a bad person, but it will also make me go to hell. Through going to rock concerts, I formed a bias that everyone who listens to that type of music do drugs and either worship satan or don’t have a religion at all. Some of the sources of information that have shaped my perceptions and opinions about this information are: -My family -The Internet -Music -TV shows, and movies -School -Church -Concerts There hasn’t been research on specifically sasaeng fans, only slight observations that may have to do with how the phenomenon originated. For example, a statement was made towards how some kpop fans can be wild by stalking idols, and are hated amongst other â€Å"normal† fans . Some observations that have been made consist of the diffusion of the Korean Pop culture wave, alsoShow MoreRelatedCrime and Deviance1123 Words   |  5 Pagesexplanations of Crime and Deviance Labelling theory paved the way in understanding how deviance was something defined by social processes. In this way social agencies such as the police defined what was deviant. Marxists took this view even further by examining the power of certain social groups to define deviance and create the laws which secured social conformity. Marxists see crime and deviance as not coming from moral or biological defects but defects within social order. Crime is an inevitableRead MoreCrime, Deviance, And Deviance899 Words   |  4 Pagesa people so drawn to crime and deviance in the news? What is it about human nature that has a secret sense of interest or even some excitement when we turn on the television and see something major going on like a high speed chase or the like? Interestingly, the closer it happens to be to where we are, the more interested we become as opposed to something happening out of state, or further off in another country. The point here is not to defend or glamorize crime and deviance, but to point out thatRead MoreCrime And Deviance1550 Words   |  7 PagesIn studying crimes and deviance, sociologists look to explain what types of behavior are defined as deviant as opposed to criminal, who defines deviant behaviors, why people become deviant, and how society deals with deviant behavior. Devianc e is defined by sociologists are behavior that significantly goes against expected rules and norms. Criminal behavior is behavior that violates the law. Sociology studies groups as opposed to individuals, so when studying crime and deviance, sociologists areRead MoreDeviance And Crime1611 Words   |  7 Pagessociology book is about deviance, crime, and social control. This chapter was very interesting to me because it shows you how much violence is in our world that you do not really think about or hear about because it is overlooked. Everyone focuses on the big crimes, such as school shootings or terrorists acts, and overlook the victimless crimes and smaller things. This chapter also taught me a lot about deviance and made me form an opinion on whether it is a good or bad thing. Deviance is â€Å"a violationRead MoreCrime and Deviance810 Words   |  4 PagesDa’Vaughn Hawkins Introduction of Sociology 29 October 2015 Written Assignment #3 Crime and Deviance With the rise of crime rates in the last couple of years, people are wondering if locking up the criminal and throwing away the key would be effective for social control. What these people fail to see is that by just throwing away the key, you aren’t actually helping that person to strive for and become anything better. The thing that would be more effective than throwing away the key isRead MoreCrime, Deviance, And Deviance3445 Words   |  14 PagesCrime and Deviance This report will begin by making a distinction between the concepts of crime and deviance, accompanied by the concept that crime is a social construct. Then this report will evaluate some theoretical approaches to how and why crime exists. Further reference will be made to the existing crime statistics, and the validity and reliability of the official statistics that measure crime. Finally, this report will look into the presentation of crime in two areas of the mass media. AtRead MoreCrime and Deviance1885 Words   |  8 Pagesfor the high proportion of young, working class males shown in official statistics on crime.† This essay will start by making a distinction between the concepts of crime and deviance, followed by an examination how such concepts have been acquired and accepted by society. Further reference will be made to the current crime statistics, and analyse some of the possible explanations for the high proportion of crime that is being committed by young males. Finally, consideration will be given to whatRead MoreCrime and Deviance2170 Words   |  9 Pagescauses crime and deviance in society, biological or social factors? Definitions of crime and deviance would change according to time, place, situation and culture, as what is acceptable in one would be unacceptable in another. Crime would entail the breaking of the law according to time and place, deviance would be an action that is unacceptable to the majority within the time and place, but both can alter during time, place, culture and social norms including religion. One example of crime wouldRead MoreDeviance And Crime And Deviance1623 Words   |  7 PagesDEVIANCE AND CRIME Deviance occurs when an individual commits something that disregards or breaks a social norm or folkway; deviant behaviors are considered criminal when it breaks more serious mores. These mores or laws, unlike norms or folkways, have more formal punishments and sanctions, such as fines or imprisonment. The purpose of these punishments or sanctions, according to Diana Kendalt (2017) in Sociology in Our Times, is to give retribution, make a general deterrence, incapacitation, orRead MoreCrime and Deviance4103 Words   |  17 Pagesfunctions and causes of crime and deviance within contemporary British society, yet it fails to account for white collar crime. Evaluate this statement. Every society is guided by laws and regulations, therefore, breaking of the law is known as crime or deviance. Crime and deviance will be defined with examples and how what is crime and deviance depend on culture and society will be analysed. Thus, a criminal act in one place is a norm in another place. Crime and Deviance changes as the society evolve