Wednesday, October 30, 2019

How in the World Did THAT Get into my Home Essay

How in the World Did THAT Get into my Home - Essay Example (Ayers 45) Raw materials, this is the primary source in bread production. It mainly concerns natural wealth and pulling out of raw materials and working with farmers to grow wheat that is required to make bread. Other raw material is water, this obtained from taps. Manufacture, the bread is manufactured in one of the leading bakeries in U.S.A. Process of making bread commence with gathering all the necessary ingredients and storing them. Each ingredient has its own place waiting the time of becoming component of batter. All the process of manufacturing is automated and monitored as is it a continuous transition from one stage to another. Bread is baked in a tunnel-shaped oven and must be provided with a lot of vapor at the beginning. This heat the bread much faster so as to increase its size and to provide its softness nature. Packaging, bread is packaged in a flexible manner that provides high quality, attractive presentation and conserving breads natural freshness. Also bread is packed in various forms so to accommodate different consumer needs. So the appearance and quality of packaging in very important, this provides the standard that consumer want. Also quality ensures that bakeries bake the best each and every time. Packaging is also done properly for shipping so as to ensure that bread arrives safely. Improper packed breads can be easily damaged thus losing its consumer choice and value (Ayers 110) Display, the bread in the whole sale was displayed in a way that is visually attractive from the consumers’ perspective. For instance using a Bakery display case to tell consumers varieties present. This kind of display provides for bake products to be easily sold as they are highly perishable. Display stand was also among the better tool for displaying in some part of the whole sale, this stand is taller than other items thus displaying more of the baked bread inside the whole sale. Scene of

Sunday, October 27, 2019

Inflation and Fiscal Policy in the UAE

Inflation and Fiscal Policy in the UAE Table of Contents (jump to) 1. Inflation in that existing economy then suggested an applicable solutions to cope these statement Political and Social Stability Oil and Mineral Resources Agricultural Resources 2. Evaluate advantage and disadvantages of the current fiscal policy and monetary policy being implemented in the chosen country 3. Find out and explain the effectiveness of various economic growth reforms that were carried out in the past years Dubai to sustain % GDP growth in 2014 DH953.2 Billion GDP estimates at current 2013 Abu dhabi’s GDP up 5.6% in 2012 Contribution of extractive industries to Abu Dhabi’s GDP amounted to 5% in 2011 4. Examine the effect of the balance of payment on the exchange rates in the chosen country explaining. How the chosen country manages its foreign debt 1. Inflation in that existing economy then suggested an applicable solutions to cope these statement Thirty years back the UAE was one of the slightest created nations of the world. Today, it has attained a wage level practically identical to that of the industrialized countries. The UAE did not pass through the speculative advancement organizes that most created nations appear to have encountered. Rather, its extensive oil incomes have permitted her to jump these stages to the phase of high mass utilization. Monstrous oil incomes have empowered the UAE to alternate way the normally troublesome and long procedure of sparing and capital amassing important for financial improvement. Given a wealth of common asset blessings (oil and gas), the UAE has grasped asset based commercial ventures (RBI) as an advancement procedure, a mechanical technique that is focused around use of characteristic assets. There has been a sending of windfall wage, to a great extent coordinated at a for the last time help to the social and investment foundation, which empowered the UAE to attain a critical lev el of investment advancement inside the exact concise time period of 1973 to 1982, a period of moderately high oil costs (Kandil, Morsy, 2011). Prior to the disclosure and fare of oil, the economy of the Trucial States (which today structure the UAE) depended predominantly on subsistence farming, itinerant creature cultivation, the concentrating of pearls and the exchange pearls, angling, and marine. The period before the revelation of oil, hence, reflected the nations restricted regular assets, and brought about a basic subsistence economy (Kandil, Morsy, 2011). Political and Social Stability Since its shaping in 1971 the UAE has appreciated a political steadiness. The current political structures seem to suit the tribal pop culture of the UAE and the dissemination of immense oil incomes as social and financial base, high compensations, an elevated expectation of social administrations, for example, wellbeing and training has raised the expectation for everyday comforts for UAE nationals and impressively decreased the probability of inward political and social turmoil. It is worth saying that the UAE Government has kept up a generally decent record on human rights since the creation of the state. This thus has pushed political and social strength (Alà ¢Ã¢â€š ¬Ã‚ mulali, Sab, Binti, 2011). The UAE is a dynamic part of numerous provincial and universal affiliations, for example, the Middle Easterner League, the United Nations, the Non-Aligned Movement, the Arab Gulf Cooperation Gathering, and the Organization of the Islamic Conference. Oil and Mineral Resources The UAE is blessed with incomprehensible stores of oil, both seaward and coastal. Co partnered gas from raw petroleum generation and non-partnered gas is likewise created. Since the early 1970s the UAEs incredible development has depended to a great extent on the revelation and abuse of oil. The oil and gas commercial ventures are generally overseen and the most recent innovation is persistently tackled to build beneficial productivity. As indicated by the UAE Ministry of Petroleum and Mineral Resources, the UAE most extreme reasonable every day limit of oil generation (greatest creation rate that might be managed day by day for one year in current states of misuse) is 2 million barrels a day (Alà ¢Ã¢â€š ¬Ã‚ mulali, Sab, Binti, 2011). Agricultural Resources The aggregate zone of area under farming and ranger service constitutes short of what 1.5 for every penny of the aggregate area territory of the UAE. Agribusiness has made just a little commitment to GDP (3.8 for every penny in 1999). There has, notwithstanding, been a reliable and significant expand in the measure of area committed to horticulture and ranger service in the course of recent years as the aftereffect of supported exertions by the UAE Government to advertise farming improvement utilizing the accompanying motivations (Osman, Louis, Balli, 2009): Agricultural plots are conceded allowed to any UAE national. Land is leveled and arranged mechanically for nothing. Production inputs, for example, seeds, manures, and insect sprays are given at half cost. Water wells are bored free of charge. There is procurement of free specialized administrations, for example, establishment of water pumps (Osman, Louis, Balli, 2009). 2. Evaluate advantage and disadvantages of the current fiscal policy and monetary policy being implemented in the chosen country Regardless of the UAEs pay rates positioning higher than the worldwide normal, supplementary expenses excessively are shooting up. As indicated by Dubai Statistics Center, on the premise of purchaser value information, expansion in Dubai rose to its most elevated amount in the most recent four years in October. Lodging and utility expenses, which represents just about 44 for every penny of purchaser costs, climbed 3.2 for every penny year-on-year and 0.2 for every penny month-on-month individually in October. Despite the fact that sustenance and drink costs climbed by 1.8 for every penny yearly, October costs fell 0.4 for every penny from the past month (Osman, Louis, Balli, 2009). In a Bayt.com compensation study of UAE experts, discharged not long ago, 28 for every penny of experts said their compensations expanded just hardly while an alternate 28 for every penny reported a moderate build. Around 19 for every penny of respondents said there was no change. The greater part of experts reviewed ascribed their pay climb to swelling and the climbing average cost for basic items while around 80 for every penny said that climbing rents constituted a significant a piece of their living costs. Be that as it may as business certainty gets in front of the Expo 2020 offer, Dubais lopsided climb in compensations in connection with rents could go about as a focused disservice in holding ability at later stages. It is important that as per the Bayt.com MENA Salary Survey (May 2013), 47 for every penny of UAE respondents accept that their steadfastness is 70 to100 for every penny connected to their compensation, consequently showing that pay is a key driver for corporate faithfulness for a lions share, said Suhail Masri, VP of offers, Bayt.com (al-Awad, 2013). This general pattern is seen over the Middle East that organizations must start to address; in doing thus, they will have the capacity to help building worker steadfastness and fulfillment, and will have the chance to decrease the amount of representatives looking to change employments inside the one year from now. Masri said that in spite of the lodging remittance given to UAE workers being the third most astounding in the district, climbing living expenses for occupants are a reason for concern. 3. Find out and explain the effectiveness of various economic growth reforms that were carried out in the past years Dubai to sustain % GDP growth in 2014 Billions of dollars worth of realty ventures to help economy Dubais economy is relied upon to develop around five for every penny not long from now, a comparable pace to 2013, the leader of its detail office said on Monday. Development in the Gulf emirate, the districts exchange and business center, grabbed firmly a year ago, floated by the possibility of government land ventures worth many billions of dollars. It is normal that development will arrive at around five for every penny in 2013,   official chief Arif Obaid Al Muhairi said on the Dubai Statistics the economy developed around 4.5 for every penny in the initial nine months of a year ago, he said. Dubai represents a quarter of yield of the UAE economy, with oil-fueled Abu Dhabi in charge of around 65 for every penny (al-Awad, 2013). The UAE, one of the worlds top oil exporters, has yet to discharge 2013 GDP information. DH953.2 Billion GDP estimates at current 2013 The Statistics Center-Abu Dhabi (SCAD) affirmed yesterday throughout a question and answer session held at the Abu Dhabi Economic Media Club, the last comes about and budgetary studies for 2012, which registered the GDP for the Emirate of Abu Dhabi, and GDP gauges for 2013 (al-Awad, 2013). The Conference was gone to by Mr. Nasser Dayan, Director of Economic Statistics Department, Dr. Mohammed Al Dhaheri, Director of Field Surveys, Ms. Shamma Al Rumaithi, Director of National Accounts, and Mr. Osama Al Zugbi, Assistant Director of Economic Statistics Department. Mr. Nasser Dayan expressed that the vital comes about and assessments arrived at by SCAD on investment advancements in Abu Dhabi a year ago demonstrated that all financial exercises and divisions, oil and non-oil, accomplished development (Termos, Naufal, Genc, 2013). Abu dhabi’s GDP up 5.6% in 2012 In its yearly report for 2012, the Department ascribed the slower development in 2012 to the slight climb in the oil division in both creation and costs contrasted and 2011. It demonstrated Abu Dhabis true GDP remained at Dh678 billion in 2012 and said that notwithstanding the loosening development in 2012, Abu Dhabis economy kept up its recuperated and came back to its solid pace, exploiting the powerful enhancement methodology received by the emirates legislature as of late. The report demonstrated the oil division accomplished a 3.8 for every penny true development in 2012, which was lower than past rates acknowledged by the action throughout 2010 and 2011 (Termos, Naufal, Genc, 2013). Interestingly, non-oil exercises reinforce the increases accomplished over the recent years, and transformed into a solid mainstay of budgetary execution in the emirate, it said. Non-oil investment exercises recorded true development of 7.7 for every penny in 2012, contrasted with 6.7 for every penny and 6.1 for every penny in 2011 and 2010 separately. This considered absolutely the commitment of non-oil exercises to the true GDP of the Emirate, which rose to 48 for every penny in 2012 contrasted with 44 for every penny in 2007. A breakdown demonstrated the land division developed by 16.7 for every penny in 2012, as an immediate consequence of the noteworthy recuperation of offers exercises in the land part in the Emirate (Basher, Elsamadisy, 2012). The assembling division stretched by 9.7 for every penny to a record Dh41.5 billion, the report indicated Contribution of extractive industries to Abu Dhabi’s GDP amounted to 5% in 2011 The extractive business is the spine of the economy of the Emirate of Abu Dhabi, and a standout amongst the most vital parts of the national pay of the emirate, where oil incomes are utilized within development of base tasks, and in addition other monster national commercial enterprises. The commitment of extractive industry to the GDP of the Emirate of Abu Dhabi arrived at 58.5% in 2011, as an aftereffect of high oil costs in world markets, and the expand in creation of oil in Abu Dhabi. OPEC normal oil value rose from Us$77.45 for every barrel in 2010 to Us$107.46 for every barrel in 2011 (Basher, Elsamadisy, 2012). Aggregate Fixed Capital Formation: The aggregate altered capital framing in the extractive business movement rose from Dh 7.8 billion in 2006 to Dh 48.8 billion in 2011 at a yearly development rate of 44% on normal throughout the period, while settled capital shaping in the action developed by 11.6% in 2011 (Hamaideh, 2010). 4. Examine the effect of the balance of payment on the exchange rates in the chosen country explaining. How the chosen country manages its foreign debt Conversion scale administrations can harshly be characterized into three classifications: settled (pegged), adaptable (gliding) and moderate administrations. Before 1970s, most economies worked under settled conversion standard administration known as the Bretton-Woods framework. Under this framework, nations altered their trade rates against US dollar and the dollar was worth a settled measure of gold. All taking part coinage were certainly pegged to the gold. The framework was broken down following 25 years (1946-1971) yet the arrangement of altered conversion scale remained the favored administration in numerous nations. The fundamental inspiration for keeping trade rates settled is the conviction that a stable swapping scale can encourage exchange and speculation streams between nations by diminishing variances in relative costs and by lessening vulnerability (Hamaideh, 2010). Since 1971, economies have been moving towards adaptable conversion standard administrations, where the estimation of the cash is controlled by the business. In this setting, the residential coin, all else equivalent, devalues when interest for the remote money expands or supply of the outside cash diminishes and acknowledges when interest for the outside coin abatements or supply of the remote coin builds (Hamaideh, 2010). References Kandil, M., Morsy, H. (2011). Determinants of Inflation in GCC.Middle East Development Journal,3(02), 141-158. http://www.worldscientific.com/doi/abs/10.1142/S1793812011000351 Alà ¢Ã¢â€š ¬Ã‚ mulali, U., Sab, C., Binti, C. N. (2011). The impact of oil prices on the real exchange rate of the dirham: a case study of the United Arab Emirates (UAE).OPEC Energy Review,35(4), 384-399. http://onlinelibrary.wiley.com/doi/10.1111/j.17530237.2011.00198.x/abstract?deniedAccessCustomisedMessage=userIsAuthenticated=false Osman, M. A., Louis, R. J., Balli, F. (2009). Output gap and inflation nexus: the case of United Arab Emirates.International Journal of Economics and Business Research,1(1), 118-135. http://inderscience.metapress.com/content/h815u130l51p1493/ al-Awad, M. M. (2013). Ex Ante Inflation Rates in the UAE. http://repository.yu.edu.jo/handle/123456789/535773 Termos, A., Naufal, G., Genc, I. (2013). Remittance outflows and inflation: The case of the GCC countries.Economics Letters,120(1), 45-47. http://www.sciencedirect.com/science/article/pii/S0165176513001468 Basher, S. A., Elsamadisy, E. M. (2012). Country heterogeneity and longà ¢Ã¢â€š ¬Ã‚ run determinants of inflation in the Gulf Arab states† .OPEC Energy Review,36(2), 170-203. http://onlinelibrary.wiley.com/doi/10.1111/j.1753-0237.2011.00208.x/abstract?deniedAccessCustomisedMessage=userIsAuthenticated=false Hamaideh, M. E. (2010).A Risk Management Strategy To Hedge Projects Against Cost Escalation Caused By Price Inflation(Doctoral dissertation, British University in Dubai). http://bspace.buid.ac.ae/handle/1234/328

Friday, October 25, 2019

Schindlers List Essay -- Thomas Keneally Nazi Germany Literature Essa

Schindler's List In 1933 the most evil of all political parties, the National Socialist Party, came to power in Germany. Led by Defuhrer Adolf Hitler, these Nazis began to implement policies aimed at restricting the Jewish population of Germany. This is where Thomas Keneally begins the story of Oskar Schindler; a simple German businessman who would, in the end, come to symbolize hope and life to all the Jews who knew of him. Oskar Schindler, the son of Hans and Louisa Schindler, was born on April 28, 1908 in Austria. He grew up in Zwittau, a rather large and industrial city. Twenty years later he was wed to a young farmer's daughter named Emilie. It was not until the Fall of 1939 that Schindler moved to the Polish city of Cracow. When Schindler came to Poland he had hoped to set up a business there. His desires led him to seek the advice of an enslaved Jewish accountant named Itzhak Stern. Though Stern is suspicious of Schindler, he sees that perhaps Oskar could serve as a buffer against the other Nazi soldiers. Soon after this encounter Schindler opens his factory, Emalia. In this shop mess kits were created for the German army. Oskar uses Jews to get free labor, but in turn provides them with protection and security. Through the years he manages to keep this good treatment secret, despite two arrests for being over-friendly with his Jews. Throughout all of this the restrictions on Poland's Jews became more and more harsh. They were herded ...

Thursday, October 24, 2019

The Challenges of Fair Trade

Historically, coffee cultivation had brought a positive influence in developing countries to alleviate rural poverty. Paige (1997) and Williams (1994) also claimed that coffee cultivation had enabled households to develop their land holdings in sustainable, high return activity, and gainfully employ their family labor (as cited in Barham, Gitter, Lewis & Weber, 2011, p. 116). However, the global coffee market has fallen into crisis in recent years. A research conducted by Murray, Raynold and Taylor (2003), with a large decline in the coffee employment, many rural households have been forced to abandon traditional farming and adopt new livelihoods. Meanwhile, small scale but growing number of coffee farmers have participated in Fair Trade to try to survive such crisis. But, according to the research published recently, Fair Trade coffee may not only fail to bring the rural poor better life, it may impoverish them. This claim is supported by unbalanced price premium, limited Fair Trade coffee market and lack of Fair Trade knowledge by households. The higher sale price in Fair Trade coffee comparing to the conventional coffee is claimed to be the most direct benefit to individual rural farmers who participate in Fair Trade. As indicated by Barham et al. (2010), Fair Trade coffee growers receive an average US $344 in net cash income per hectare compared with US $192 for conventional growers (p. 120). Yet such premium price provided by the Fair Trade does not cover the cost to produce certified coffee for rural farmers. Weber (2011) states that if the coffee growers want to sell their products through Fair Trade, first they have to be certified (p. 109). Fair Trade Foundation requires coffee growers to pay high certification fees which the majority of Third World farmers are too poor to afford. In such cases, these growers are likely try to receive Fair Trade certification through cooperatives, but are required to share their net profit with cooperatives. For example, from the article What Price for Good Coffee? by Fieser and Padgett (2009) , Antonio, a coffee producer in Guatemala, receives 1. 55 dollars per pound of organic coffee sold through Fair Trade, approximately 10 percent more than the conventional market price. However, Antonio only receives less than 50 cents per pound after he pays Fair Trade cooperative fees, government taxes, farming expenses, and other costs (Fieser and Padgett, 2009, p. 98). This shows Fair Trade farmers often lose out on the premium price that can be fetched by certified coffee. Fair Trade is filled with contradictions. Even if the cooperatives and organizations are willing to lower the certification fees, the net cash income for growers participating in Fair Trade market is still not enough to cover the cost to produce certified coffee, by the fact that not all the high cost Fair Trade-organic certified coffee are sold at Fair Trade-organic certified coffee price. While Fair Trade coffee being organic is not a requisite for selling in Fair Trade market, most farmers that participate in cooperatives are expected to transit into organic coffee products and pass the organic certification (Weber, 2011, p. 110). However becoming organic certified requires a transition period. Weber (2011) claims it takes 3 years for growers to complete the transition into organic certification where they have to follow organic norms but unable to sell their coffee as organic (p. 111). This implies a significant delay between the time of the cost and when coffee starts yield a return. Such scenario above affects the net cash income received from Fair Trade households. Though some Fair Trade households do not transit themselves into organic certified coffee, the fact that most coffee grown by Fair Trade membership households is sold in the conventional markets is still true due to the lack of Fair Trade markets. Even though coffee is the second highest traded commodity, the market of Fair Trade coffee is relatively small with average 2. 5 % of the global coffee trade (Fieser and Padgett, 2009, p. 99). Barham et al. 2010) state that Fair Trade has limited the supply of coffee that labeled with certificated to keep the Fair Trade-organic coffee price up in the market. Therefore, even though the growers produce their coffee in a high cost Fair Trade-organic certification standards, they may have to sell their certified coffee to the markets that do not give the value of certification once Fair Trade refused their products (p. 122). Going through the effort to produce Fair Trade standards coffee, the farmers are not reaping the rewards they should have obtained. Also, with the lack of a consumer market but continually growing coffee producing households populations, Weber (2010) claims that it leads the cooperatives to increase their membership without expanding the market which results in lower premium for each household member (p. 113). The benefit to Fair Trade sales including price premiums, social premiums, long-term contracts, and low-interest credit are significantly reduced as less coffee is sold in Fair Trade markets (Murrary, 2003, p. 16). As a result, the limited and slow growth in the Fair Trade market has become one of the major concerns confronting Fair Trade production. Unconstrained market is the key to maximum returns; knowledge is the key ingredient to develop a more democratic institution. Yet households of coffee growers are facing the lack of clear knowledge for Fair Trade. Fair Trade is an indistinct concept to coffee growers comparing to coffee growing which appears in their daily farming livelihoods. Murrary et al. (2003) claim that coffee growers have not received regular and detailed training about information on Fair Trade, and have no contact with Fair Trade representatives but the cooperatives and the technical advisers (p. 6). Even more, majority of coffee growers identify Fair Trade with the cooperative. Such misinterpretation, leads some cooperatives to not tout the benefits coffee growers should gain as Fair Trade certification benefits (pp. 16 – 17). Since cooperatives and the technical advisers deal directly with the Fair Trade certification, buyers, and others; coffee growers simply have no control over their products com pare to other coffee investment patterns. For example, the Thrive's system mentioned by LaPorte (2013) in his article. Mr. Lander, an entrepreneur based in Atlanta, created the company named Thrive Farmers Coffee assisted coffee growers to increase their ownership and profit margins by splitting half of proceeds with farmers and by establishing relationships between farmers and local coffee co-ops. Mr. Lander also states that organizations like Thrive are trying to teach these growers the basic knowledge of risk and quality because now they see their products selling to their ultimate consumers (p. 106). If coffee growers can understand the way to prevent risk and way to improve coffee quality, these growers will most likely sell more coffee overall. In conclusion, Fair Trade is not the answer to solve poverty. The system offers limited price improvement to very few primary households, while neglecting the poorest of poor in the sector. With farmers lack of understanding of the structure and operation, Fair Trade can easily prevent the poor from liberating themselves, keep them in their land and restrain their future. And lastly, by raising Fair Trade coffee price for the consumer, it slows down the growth of global Fair Trade economy and limits the market from certain group. Overall, there are benefits to the small-scale farmers from Fair Trade movement, but the benefits are much insufficient compared with other investment patterns. It is nothing but a short-term diversion. If the Fair Trade is unable to put forward a plan for improving their current rate of returns, coffee growers are unlikely to lift themselves out of their poverty through Fair Trade. And, perhaps the only fair choice is to support free trade. References Abad-Vergara, Diane. (Director, Produce). (2009). Living with coffee [Documentary]. New Zealand. Barham, B. L., Callenes, M., Gitter, S., Lewis, J., ; Weber, J. (2011). Fair trade/organic coffee, rural livelihoods, and the â€Å"Agrarian Question†: Southern Mexican coffee families in transition. World Development, 39(1), 134-145. Fieser, E., ; Padgett, T. (2009). What price good coffee? Time International, 171(13) 90-91. La porte, N. (2013, March 16). Coffee’s economics, rewritten by farmers. New York Times. Retrieved 5/20/13 from  http://www.nytimes.com/2013/03/17/business/coffees-economics-rewritten-by-farmers.html Murray, D. L., Raynolds, L. T., ; Taylor, P.L. (2003). One cup at a time: poverty alleviation and fair trade coffee in Latin America. Fair Trade Research Group, Colorado State University. Weber, J. G. (2011). How much more do growers receive for Fair Trade-organic coffee? Food Policy, 36(5), 678-685

Wednesday, October 23, 2019

New Belgium Brewing: Ethical and Environmental Responsibility

Although most of the companies frequently cited as examples of ethical and socially responsible firms are large corporations, it is the social responsibility initiatives of small businesses that often have the greatest impact on local communities and neighborhoods. These businesses create jobs and provide goods and services for customers in smaller markets that larger corporations often are not interested in serving. Moreover, they also contribute money, resources, and volunteer time to local causes. Their owners often serve as community and neighborhood leaders, and many choose to apply their skills and some of the fruits of their success to tackling local problems and issues that benefit everyone in the community. Managers and employees become role models for ethical and socially responsible actions. One such small business is the New Belgium Brewing Company, Inc. , based in Fort Collins, Colorado. History of the New Belgium Brewing Company The idea for the New Belgium Brewing Company began with a bicycling trip through Belgium. Belgium is arguably the home of some of the world’s finest ales, some of which have been brewed for centuries in that country’s monasteries. As Jeff Lebesch, an American electrical engineer, cruised around that country on his fat-tired mountain bike, he wondered if he could produce such high-quality beers back home in Colorado. After acquiring the special strain of yeast used to brew Belgian-style ales, Lebesch returned home and began to experiment in his Colorado basement. When his beers earned thumbs up from friends, Lebesch decided to market them. The New Belgium Brewing Company (NBB) opened for business in 1991 as a tiny basement operation in Lebesch’s home in Fort Collins. Lebesch’s wife, Kim Jordan, became the firm’s marketing director. They named their first brew Fat Tire Amber Ale in honor of Lebesch’s bike ride through Belgium. New Belgium beers quickly developed a small but devoted customer base, first in Fort Collins and then throughout Colorado. The brewery soon outgrew the couple’s basement and moved into an old railroad depot before settling into its present custom-built facility in 1995. The brewery includes an automated brewhouse, two quality assurance labs, and numerous technological innovations for which New Belgium has become nationally recognized as a â€Å"paradigm of environmental efficiencies. † Today, New Belgium Brewing Company offers a variety of permanent and seasonal ales and pilsners. The company’s standard line includes Sunshine Wheat, Blue 1  © O. C. Ferrell 2006. We appreciate the work of Nikole Haiar in helping draft the previous edition of this case, and Melanie Drever who assisted in this edition. This case was prepared for classroom discussion, rather than to illustrate either effective of ineffective handling of an administrative, ethical or legal decision by management. All sources used for this case were obtained through publicly available material and the New Belgium website. Paddle Pilsner, Abbey Ale, Trippel Ale, 1554 Black Ale, and the original Fat Tire Amber Ale, still the firm’s best-seller. Some customers even refer to the company as the Fat Tire Brewery. The brewery also markets two types of specialty beers on a seasonal basis. Seasonal ales include Frambozen and Abbey Grand Cru, which are released at Thanksgiving, and Christmas and Farmhouse Ale, which are sold during the early fall months. The firm occasionally offers one-time-only brews, such as LaFolie, a wood-aged beer, which are sold only until the batch runs out. Until 2005, NBB’s most effective form of advertising has been its customers’ word of mouth. Indeed, before New Belgium beers were widely distributed throughout Colorado, one liquor store owner in Telluride is purported to have offered people gas money if they would stop by and pick up New Belgium beer on their way through Ft. Collins. Although New Belgium beers are distributed in just one-third of the United States, the brewery receives numerous e-mails and phone calls every day inquiring when its beers will be available elsewhere. With expanding distribution, however, the brewery recognized a need to increase its opportunities for reaching its far-flung customers. It consulted with Dr. David Holt, an Oxford professor and branding expert. After studying the young company, Holt, together with Marketing Director Greg Owsley, drafted a 70-page â€Å"manifesto† describing the brand’s attributes, character, cultural relevancy, and promise. In particular, Holt identified in New Belgium an ethos of pursuing creative activities simply for the joy of doing them well and in harmony with the natural environment. With the brand thus defined, New Belgium went in search of an advertising agency to help communicate that brand identity; it soon found Amalgamated, an equally young, independent New York advertising agency. Amalgamated created a $10 million advertising campaign for New Belgium that targets high-end beer drinkers, men ages 25 to 44 and highlights the brewery’s image as being down to earth. The grainy ads focus on a man rebuilding a cruiser bike out of used parts and then riding it along pastoral country roads. The product appears in just five seconds of each ad between the tag lines, â€Å"Follow Your Folly †¦ Ours Is Beer. † The ads helped position the growing brand as whimsical, thoughtful, and reflective. In addition to the ad campaign, the company maintained its strategy of promotion through event sponsorships. New Belgium Ethical culture According to Greg Owsley Director of Marketing for New Belgium Brewing beyond a desire for advertising and promotion ethics there is a fundamental focus on the ethical culture of the brand. Although consumer suspicion of business is on fully raised eyebrow, those in good standing- as opposed to those trading on hype- are eyed with iconic-like adoration. From this off polarization comes a new paradigm in which businesses that fully embrace citizenship in the community they serve can forge enduring bonds with customers. Meanwhile, these are precarious times for businesses that choose to ignore consumer's looking at brands from an ethical perspective. More than ever before, what the brand says and what the company does must be synchronized. NBB believes the mandate for corporate social responsibility gains momentum beyond the courtroom to the far more powerful marketplace, any current and future manager of business must realize that business ethics are not so much about the installation of compliance codes and standards as they are about the spirit in which they are integrated. Thus, the modern-day brand steward- usually the most externally focused member of the business management team- must prepare to be the internal champion of the bottom line necessity for ethical, values-driven company behavior. At New Belgium, a synergy of brand and values occurred naturally as the firms ethical culture- in the form of core values and beliefs- and was in place long before NBB had a marketing department. Back in early 1991, New Belgium was just a home-brewed business plan of Jeff Lesbesch, an electrical engineer, and his social worker wife, Kim Jordan. Before they signed any business paperwork, the two took a hike into Rocky Mountain National Park. Armed with a pen, and a notebook they took their first stab at what the fledgling company's core purpose would be. If they were going forward with this venture, what were their aspirations beyond profitability? What was the real root cause of their dream? What they wrote down that spring day, give or take a little wordsmithing, was the core values and beliefs you can read on the NBB website today. More important, ask just about any New Belgium worker, and she or he can list for you many, if not all, these shared values and can inform you which are the most personally poignant. For NBB branding strategies are as rooted in our company values as in other business practices. New Belgium’s Purpose and Core Beliefs New Belgium’s dedication to quality, the environment, and its employees and customers is expressed in its mission statement: â€Å"To operate a profitable brewery which makes our love and talent manifest. † The company’s stated core values and beliefs about its role as an environmentally concerned and socially responsible brewer include: .  ¦ Producing world-class beers .  ¦ Promoting beer culture and the responsible enjoyment of beer .  ¦ Continuous, innovative quality and efficiency improvements .  ¦ Transcending customers’ expectations  ¦ Environmental stewardship: minimizing resource consumption, maximizing energy efficiency, and recycling .  ¦ Kindling social, environmental, and cultural change as a business role model .  ¦ Cultivating potential: through learning, participative management, and the pursuit of opportunities .  ¦ Balancing the myriad needs of the company, staff, and their fami lies .  ¦ Committing ourselves to authentic relationships, communications, and promises .  ¦ Having Fun. Employees, believe that these statements help communicate to customers and ther stakeholders what New Belgium, as a company, is about. These simple values developed 15 years ago are just as meaningful to the company and its customers today even though there has been much growth. Employee Concerns Recognizing employees’ role in the company’s success, New Belgium provides many generous benefits. In addition to the usual paid health and dental insurance and retirement plans, employees get a free lunch every other week as well as a free massage once a year, and they can bring their children and dogs to work. Employees who stay with the company for five years earn an all-expenses paid trip to Belgium to â€Å"study beer culture. † Perhaps most importantly, employees can also earn stock in the privately held corporation, which grants them a vote in company decisions. New Bel-gium’s employees now own one-third of the growing brewery. Open book management lets employees see the financial costs and performance. Environmental Concerns New Belgium’s marketing strategy involves linking the quality of its products, as well as their brand, with the company’s philosophy toward affecting the planet. From leadingedge environmental gadgets and high-tech industry advancements to employeeownership programs and a strong belief in giving back to the community, New Belgium demonstrates its desire to create a living, learning community. NBB strives for cost-efficient energy-saving alternatives to conducting its business and reducing its impact on the environment. In staying true to the company’s core values and beliefs, the brewery’s employee-owners unanimously agreed to invest in a wind turbine, making New Belgium the first fully wind-powered brewery in the United States. Since the switch from coal power, New Belgium has been able to reduce its CO2 emissions by 1,800 metric tons per year. The company further reduces its energy use by employing a steam condenser that captures and reuses the hot water that boils the barley and hops in the production process to start the next brew. The steam is redirected to heat the floor tiles and de-ice the loading docks in cold weather. Another way that NBB conserves energy is by using â€Å"sun tubes,† which provide natural daytime lighting throughout the brew house all year long. New Belgium also takes pride in reducing waste through recycling and creative reuse strategies. The company strives to recycle as many supplies as possible, including cardboard boxes, keg caps, office materials, and the amber glass used in bottling. The brewery also stores spent barley and hop grains in an on-premise silo and invites local farmers to pick up the grains, free of charge, to feed their pigs. NBB even encourages its employees to reduce air pollution by using alternative transportation. As an incentive, NBB gives its employees â€Å"cruiser bikes†Ã¢â‚¬â€ like the one pictured on its Fat Tire Amber Ale label—after one year of employment and encourages them to ride to work. New Belgium has been a long-time participant in green building techniques. With each expansion of the facility they have incorporated new technologies and learned a few lessons along the way. In 2002, NB agreed to participate in the United States Green Building Council's Leadership in Energy and Environment Design for Existing Buildings (LEED-EB) pilot program. From sun tubes and daylighting throughout the facility to reusing heat in the brewhouse, they continue to search for new ways to close loops and conserve resources. Reduce, Reuse, Recycle- the three ‘R's of being an environmental steward. The reuse program includes heat for the brewing process, cleaning chemicals, water and much more. Recycling at New Belgium takes on many forms, from turning â€Å"waste† products into something new and useful (like spent grain to cattle feed), to supporting the recycling market in creative ways (like turning their keg caps into table surfaces). They also buy recycled whenever they can, from paper to office furniture. Reduction surrounds them – from motion sensors on the lights throughout the building to induction fans that pull in cool winter air to chill their beer – offsetting their energy needs is the cornerstone to being environmentally efficient. Social Concerns Beyond its use of environment-friendly technologies and innovations, New Belgium Brewing Company strives to improve communities and enhance people’s lives through corporate giving, event sponsorship, and philanthropic involvement. Since its inception, NBB has donated more than 1. million dollars to organizations in the communities in which they do business. For every barrel of beer sold the prior year, NB donates $1 to philanthropic causes within their distribution territory. The donations are divided between states in proportion to their percentage of overall sales. This is their way of staying local and giving back to the communities who support and purchase NB products. In 2006, Arkansas, Arizona, California, Colorado, Idaho, Kansas, Missouri, Montana, Nebraska, Nevada, New Mexico, Oregon, Texas, Washington and Wyoming received funding. Funding decisions are made by the NB Philanthropy committee, which is comprised of employees throughout the brewery including owners, employee owners, area leaders and production workers. New Belgium looks for non-profit organizations that demonstrate creativity, diversity and an innovative approach to their mission and objectives. The Philanthropy committee also looks for groups that involve the community to reach their goals. NBB also maintains a community bulletin board in its facility where it posts an array of community involvement activities and proposals. This community board allows tourists and employees to see the different ways they can help out the community, and it gives nonprofit organizations a chance to make their needs known. Organizations can even apply for grants through the New Belgium Brewing Company Web site, which has a link designated for this purpose. NBB also sponsors a number of events, with a special focus on those that involve â€Å"human-powered† sports that cause minimal damage to the natural environment. Through event sponsorships, such as the Tour de Fat, NBB supports various environmental, social, and cycling nonprofit organizations. New Belgium also sponsored the MS 150 â€Å"Best Damn Bike Tour,† a two-day, fully catered bike tour, from which all proceeds went to benefit more than five thousand local people with multiple sclerosis. NBB also sponsored the Ride the Rockies bike tour, which donated the proceeds from beer sales to local nonprofit groups. The money raised from this annual event funds local projects, such as improving parks and bike trails. In the course of one year, New Belgium can be found at anywhere from 150 to 200 festivals and events, across all fifteen western states. Organizational Success New Belgium Brewing Company’s efforts to live up to its own high standards have paid off with numerous awards and a very loyal following. It was one of three winners of Business Ethics magazine’s Business Ethics Awards for its â€Å"dedication to environmental excellence in every part of its innovative brewing process. † It also won an honorable mention in the Better Business Bureau’s 2002 Torch Award for Outstanding Marketplace Ethics competition. Kim Jordan and Jeff Lebesch were named the recipients of the Rocky Mountain Region Entrepreneur of the Year Award for manufacturing. The company also captured the award for best mid-sized brewing company of the year and best mid-sized brewmaster at the Great American Beer Festival. In addition, New Belgium took home medals for three different brews, Abbey Belgian Style Ale, Blue Paddle Pilsner, and LaFolie specialty ale. According to David Edgar, director of the Institute for Brewing Studies, â€Å"They’ve created a very positive image for their company in the beer-consuming public with smart decision-making. Although some members of society do not believe that a company whose major product is alcohol can be socially responsible, New Belgium has set out to prove that for those who make a choice to drink responsibly, the company can do everything possible to contribute to society. Its efforts to promote beer culture and the connoisseurship of beer has even led it to design a special â€Å"Worthy Glass,† the shape of which is intended to retain foam, show off color, enhance the visual presentation, an d release aroma. New Belgium Brewing Company also promotes the responsible appreciation of beer through its participation in and support of the culinary arts. For instance, it frequently hosts New Belgium Beer Dinners, in which every course of the meal is served with a complementary culinary treat. According to Greg Owsley Director of Marketing although the Fat Tire brand has a bloodline straight from the enterprise's ethical beliefs and practices, the firm's work is not done. They must continually re-examine ethical, social and environmental responsibilities. In 2004, New Belgium received the Environmental Protection Agency's regional Environmental Achievement Award. It was both an honor and a motivator not to rest on our naturally raised laurels. There are still many ways for NB to improve as a corporate citizen. They still don't produce an organic beer. The manufacturing process is a fair distance from being zero waste or emission free. There will always be a need for more public dialogue on avoiding alcohol abuse. Practically speaking, they have a neverending to-do list. NBB also must acknowledge that as their annual sales increase, the challenges for the brand to remain on a human scale and culturally authentic will increase too. How to boldly grow the brand while maintaining its humble feel has always been a challenge. Every six-pack of New Belgium Beer displays the phrase, â€Å"In this box is our labor of love, we feel incredibly lucky to be creating something fine that enhances people’s lives. † Although Jeff Lebesch has â€Å"semi-retired† from the company to focus on other interests, the founders of New Belgium hope this statement captures the spirit of the company. According to employee Dave Kemp, NBB’s environmental concern and social responsibility give it a competitive advantage because consumers want to believe in and feel good about the products they purchase. NBB’s most important asset is its image—a corporate brand that stands for quality, responsibility, and concern for society. Defining itself as more than just a beer company, the brewer also sees itself as a caring organization that is concerned with all stakeholders, including the community, the environment, and employees. Sources: These facts are from Greg Owsley, â€Å"The Necessity For Aligning Brand With Corporate Ethics,† in Sheb L. True, Linda Ferrell, O. C. Ferrell, â€Å"Fulfiling Our Obligation, Perspectives on Teaching Business Ethics,† Kennesaw State University Press 2005. p. 128-132. New Belgium website http://www. newbelgium. com/sustainability. php. and http://www. newbelgium. com/philanthropy. php. (accessed May 17, 2006) Peter Asmus, â€Å"Goodbye Coal, Hello Wind,† Business Ethics, 13 (July/Aug. 1999): 10–11; Robert Baun, â€Å"What’s in a Name? Ask the Makers of Fat Tire,† [Fort Collins] Coloradoan, Oct. 8, 2000, pp. E1, E3; Rachel Brand, â€Å"Colorado Breweries Bring Home 12 Medals in Festival,† Rocky Mountain News, www. insidedenver. com/news/1008beer6. shtml, (accessed Nov. 6, 2000); Stevi Deter, â€Å"Fat Tire Amber Ale,† The Net Net, www. thenetnet. com/reviews/fat. html (accessed Apr. 29, 2003); DirtWorld. com, www. dirtworld. com/races/Colorado_race745. htm (accessed Nov. 6, 2000); Robert F. Dwyer and John F. Tanner Jr. , Business Marketing (Irwin McGraw-Hill, 1999), p. 04; â€Å"Fat Tire Amber Ale,† Achwiegut (The Guide to Austrian Beer), www. austrianbeer. com/beer/b000688. shtml, (accessed Jan. 19, 2001); â€Å"Four Businesses Honored with Prestigious International Award for Outstanding Marketplace Ethics,† Better Business Bureau, press release, Sept. 23, 2002, www. bbb. org/alerts/2002torchwinners. asp; Del I. Hawkins, Roger J. Best, and Kenneth A. Coney, Consumer Behavior: Buil ding Marketing Strategy, 8th ed. (Irwin McGraw-Hill, 2001); David Kemp, Tour Connoisseur, New Belgium Brewing Company, personal interview by Nikole Haiar, Nov. 1, 2000, 1:00 PM; Julie Gordon, â€Å"Lebesch Balances Interests in Business, Community,† Coloradoan, Feb. 26, 2003; New Belgium Brewing Company, Ft. Collins, CO, www. newbelgium. com (accessed Apr. 29, 2003); New Belgium Brewing Company Tour by Nikole Haiar, Nov. 20, 2000, 2:00 PM; â€Å"New Belgium Brewing Wins Ethics Award,† Denver Business Journal, Jan. 2, 2003, http://denver. bizjournals. com/denver/stories/2002/12/30/daily21. html; and Dan Rabin, â€Å"New Belgium Pours It on for Bike Riders,† Celebrator Beer News, Aug. /Sept. 1998, www. celebrator. com/9808/rabin. html