The estimated healthcare worker shortage projection:
short 18 million by 2030.
- The world continues to vary in its measures (see Shanghai, Apr 2022) to contain the covid-19 virus and simultaneously, fear.
- One out of eight nurses works in a country outside of their home country. In the United States of America, with a population of 331,002,647 as of 2020, has a total expenditure on healthcare per capita of $9,403 (2014).
- According to the most recent World Health Organization nursing report, investment in education, jobs and leadership are part of key action steps in creating a workforce of nurses.
- Many nurses holding faculty positions have inadequate clinical experience. The lack of clinically qualified faculty to teach in both undergraduate and graduate programs has been a serious problem in nursing institutions (Lu, 2004; Turale, Ito, & Nakao, 2008).
- Ultimately, with the baby boomer generation reaching a critical mass in line with the life expectancy at birth of 78.5 years as of 2019, a shortage of 18,000,000 nursing personnel seems to be pretty relevant.
Introduction & A Nurse’s Choice
In the third year of our global pandemic, one wonders where the next nurse is going to come from. Who will be taking care of us,
our loved ones,
or someone who’s going to change the future?
When one looks into the varying strategization methodology of governmental agencies worldwide, the measures represent a level of intricacy that, if applied correctly to the state of the shortage of across both hemispheres, there would be no shortage.
Through cross-referencing (1) the state of aging baby boomers, (2) average life expectancy in the United States of America, and (3) the ratio of nurses to other medical practitioners in their respective projected retirement dates, this writer sees a story in the choice presented to a young man or woman, growing up rurally: to survive in whatever mode/path available to them or to go into medicine and the care of our people and communities.
The English Barrier of Entry
Language barriers that may lead to errors may hinder the delivery of appropriate healthcare services and even result in life-threatening consequences for patients. For example, when a diabetic patient’s diet order has been written as “sugar free,” a non-English speaking nurse may interpret this to mean the “free use of sugar.” Such an interpretation could result in the patient experiencing a dangerously high level of sugar in the blood.
Increased migration of nurses to other countries, increased international travel, and the increased mobility of global epidemics have made competency in English a necessity. In addition, nurses enrolled in CNS, NP, master’s, or doctoral programs rely mainly on English language textbooks and research databases to keep abreast of the growing international body of nursing knowledge.
Opportunities for career growth may be restricted for nurses with limited English-language proficiency. A greater emphasis on helping nursing students master the English language is needed. Nonetheless, with growing online learning resources and management systems for education, opportunities to train and send a nurse only realistically requires approximately 500 hours of nursing training for the first level of certification for live-in aid, and another 400 hours from zero English proficiency to a score of 4.0/9.0 on the International English Language Testing System (IELTS).
Nurses Outnumber Every Other Medical Personnel Category…And They’re Getting Old
With the very handy National Health Workforce Accounts Data Portal, seen in the large black bar, exists a 5:1 ratio in the number of nurses compared to medical doctors, nursing personnel, dentists, pharmacists, medical and Pathology Laboratory scientists, Physiotherapy Technicians and assistants, dietitians, and ambulance workers.
They outnumber every other medical professional. Five to one.
The data depicts a clear majority in the medical and hospital systems in each and every country. Not only that, the baby boomer generation needs care. And, as they age, the nursing workforce gets older with them. The most experienced, knowledgeable advanced nursing practitioners are aging out of our medical care systems.
Why not focus on the biggest group that cleans bedpans, makes sure people get their meds, and makes sure every infrastructural duties is fulfilled?
The Nursing Industry Overview
Differentiation in nursing practice based upon levels of education, experience, and competency helps to define the structure and roles of professional nurses (AACN, 1995). Differentiation criteria will continue to be established as the healthcare system demands higher levels of abilities and competencies from nurses. Future career pathways for nurses will occur as nurses more clearly define their identity, increase their skills, and adapt to new work environments. Nurses have always been a resilient group, able to respond to challenges proactively, to create new and exciting opportunities.
Greater emphasis on providing culturally competent care is needed to ensure that nurses are prepared to work in a multicultural world. Although the number of foreign workers, including professional and technical personnel as well as labor and unskilled workers, nurses remain ill prepared to offer culturally competent care to patients from different cultural and ethnic backgrounds. The nursing curricula in each of these countries provides only limited, if any, culturally specific content to guide nurses in caring for patients from cultures different from their own. Nurses’ overlooking of cultural implications of care can result in patients experiencing misunderstanding, mistreatment, or marginalization, all of which can impede their recovery.
Although the goal of a stable nursing workforce remains elusive. As the debate continues whether multiple entry points for nursing education and licensing is compatible with today’s healthcare needs, more employers are showing a preference for BSN-prepared nurses. As universities expand nursing programs and increase the number and quality of nursing graduates, the BSN degree is a standard.
The rapid expansion of APN, master’s, and doctoral nursing programs in each country. Such programs benefit the nursing profession by increasing the supply of advanced nursing specialists and faculty, generating research-related activity, and equipping nurses with higher levels of clinical expertise and leadership skills.
Career Development Opportunities
Each young lady or potential nursing candidate in SE Asia with very limited funds and education may choose amongst a wide range of entry-level jobs. While progression along these career development paths has potential, certifications and career pathways are significantly more accurately defined in nursing. A person could essentially train for 500 hours and learn English to gain employment as a live-in caregiver, returning in two years with approximately $70,000. During their employment, a nurse could engage in additional certification programs and research, combined with obtaining either their bachelor’s or master’s degree in nursing (online and clinically). A potential candidate pool of 1,000 fresh trainees could, within eight years’ time, net ONE advanced nursing practitioner (APN).
Unfortunately, eight years is exactly the timeline projected by the World Health Organization (WHO).
Types of Nurses
Certified Nurse Assistant (CNA).
Median annual salary (2020)1: $30,830
Projected employment growth (2020–2030)1: 8%
Licensed practical nurse (LPN).
Median annual salary (2020): $48,820
Projected employment growth (2020–2030)1: 9%
Registered nurse (RN).
Median annual salary (2020): $75,330
Projected employment growth (2020–2030)1: 9%
Advanced practice registered nurses (APRNs).
Median annual salary (2020): $117,670-117,670
Projected employment growth (2020-2030)1: 45%
Caregiver | Home Health Aide (HHA) | First Aid and Emergency Care | Hospice, Palliative, And End-Of-Life Care
Median annual salary (2022): $23,238-$36,560
Barriers of Entry and Circumstance
Due to a lack of physicians, there is a crucial need for advanced practice nurses to work in primary care settings, especially those located in the rural parts of the country. Nurses in rural practice must face many challenges, such as geographical isolation and limited resources which make it difficult to attract nursing professionals to work in rural healthcare delivery (Chin Limprasert, n.d.).
Additionally, nursing programs in these countries depend too heavily on the use of non-nursing clinical faculty who teach nursing content from a non-nursing perspective. Students may be taught, both in the classroom and in the clinical setting, from a biomedical standpoint, rather than from a nursing perspective. The use of physicians to teach undergraduate and graduate nursing courses is still common today, especially in Japan and Taiwan. Many teaching hospitals and universities prefer that physicians teach nursing courses due to their perceived greater technical and clinical expertise. A shortage of qualified nursing faculty results in this continued reliance on physicians to teach in nursing programs. Qualified nursing faculty are needed to develop and guide nursing students to fulfill their role as professional nurses, thereby empowering nurses with greater autonomy and control over nursing practice.
Abridged WHO Nursing Report
Nurses are critical to deliver on the promise of “leaving no one behind” and the global effort to achieve the Sustainable Development Goals (SDGs). They make a central contribution to national and global targets related to a range of health priorities, including universal health coverage, mental health and noncommunicable diseases, emergency preparedness and response, patient safety, and the delivery of integrated, people-centered care.
The nursing workforce is expanding in size and professional scope. However, the expansion is not equitable, is insufficient to meet rising demand, and is leaving some populations behind.
191 countries provided data for this report, an all-time high and a 53% increase compared to 2018 data availability. Around 80% of countries reported on 15 indicators or more. However, there are significant gaps in data on education capacity, financing, salary and wages, and health labor market flows. This impedes the ability to conduct health labor market analyses that will inform nursing workforce policy and investment decisions.
The global nursing workforce is 27.9 million, of which 19.3 million are professional nurses. This indicates an increase of 4.7 million in the total stock over the period 2013–2018, and confirms that nursing is the largest occupational group in the health sector, accounting for approximately 59% of the health professions. The 27.9 million nursing personnel include 19.3 million (69%) professional nurses, 6.0 million (22%) associate professional nurses and 2.6 million (9%) who are not classified either way.
The world does not have a global nursing workforce commensurate with the universal health coverage and SDG targets. Over 80% of the world’s nurses are found in countries that account for half of the world’s population. The global shortage of nurses, estimated to be 6.6 million in 2016, had decreased slightly to 5.9 million nurses in 2018. An estimated 5.3 million (89%) of that shortage is concentrated in low- and lower middle-income countries, where the growth in the number of nurses is barely keeping pace with population growth, improving only marginally the nurse-to-population density levels.
Aging health workforce patterns in some regions threaten the stability of the nursing stock. Globally, the nursing workforce is relatively young, but there are disparities across regions, with substantially older age structures in the American and European regions. Countries with lower numbers of early career nurses (aged under 35 years) as a proportion of those approaching retirement (aged 55 years and over) will have to increase graduate numbers and strengthen retention packages to maintain access to health services. Countries with a young nursing workforce should enhance their equitable distribution across the country.
Relative proportions of nurses aged over 55 years and below 35 years (selected countries)
Percentage of nurses less than 35 years
Percentage of nurses aged 55+ years
18 countries at risk of an aging workforceThe majority of countries (152 out of 157 responding; 97%) reported that the minimum duration for nurse education is a three-year program.
A large majority of countries reported standards for education content and duration (91%), accreditation mechanisms (89%), national standards for faculty qualifications (77%) and inter-professional education (67%).
However, less is known about the effectiveness of these policies and mechanisms. Further, there is still considerable variety in the minimum education and training levels of nurses, alongside capacity constraints such as faculty shortages, infrastructure limitations and the availability of clinical placement sites. The duration of nursing education is predominantly three or four years globally. A total of 78 countries (53% of those providing a response) reported having advanced practice roles for nurses. There is strong evidence that advanced practice nurses can increase access to primary health care in rural communities and address disparities in access to care for vulnerable populations in urban settings. Nurses at all levels, when enabled and supported to work to the full scope of their education and training, can provide effective primary and preventive health care, amongst many other health services that are instrumental to achieving universal health coverage.
One nurse out of every eight practices in a country other than the one where they were born or trained. The international mobility of the nursing workforce is increasing. While the patterns are evolving, equitable distribution and retention of nurses is a near-universal challenge.
1. Countries should strengthen capacity for health workforce data collection, analysis and use.
Actions required include accelerating the implementation of National Health Workforce Accounts and using the data for health labor market analyses to guide policy development and investment decisions.
2. Collation of nursing data will require participation across government bodies, as well as engagement of key stakeholders such as the regulatory councils, nursing education institutions, health service providers and professional associations.
3. Nurse mobility and migration must be effectively monitored and responsibly and ethically managed.
Actions needed include reinforcement of the implementation of the WHO Global Code of Practice on the International Recruitment of Health Personnel by countries, recruiters and international stakeholders.
Partnerships and collaboration with regulatory bodies, health workforce information systems, employers, government ministries and other stakeholders can improve the ability to monitor, govern and regulate international nurse mobility.
3. Countries that are over reliant on migrant nurses should aim towards greater self-sufficiency by investing more in domestic production of nurses.
4. Countries experiencing excessive losses of their nursing workforce through out-migration should consider mitigating measures and retention packages, such as improving salaries (and pay equity) and working conditions, creating professional development opportunities, and allowing nurses to work to their full scope of education and training.
5. Nurse education and training programs must graduate nurses who drive progress in primary health care and universal health coverage. Actions include investment in nursing faculty, availability of clinical placement sites and accessibility of programs offered to attract a diverse student body.
6. Nursing should emerge as a career choice grounded in science, technology, teamwork and health equity. Government chief nurses and other national stakeholders can lead national dialogue on the appropriate entry-level and specialization programs for nurses to ensure there is adequate supply to meet health system demand for graduates.
7. Curricula must be aligned with national health priorities as well as emerging global issues to prepare nurses to work effectively in inter-professional teams and maximize graduate competencies in health technology.
8. Nursing leadership and governance is critical to nursing workforce strengthening. Actions include establishing and supporting the role of a senior nurse in the government responsible for strengthening the national nursing workforce and contributing to health policy decisions.
9. Government chief nurses should drive efforts to strengthen nursing workforce data and lead policy dialogue that results in evidenced-based decision-making on investment in the nursing workforce. Leadership programs should be in place or organized to nurture leadership development in young nurses. Fragile and conflict-affected settings will typically require a particular focus in order to (re)build the institutional foundations and individual capacity for effective nursing workforce governance and stewardship.
10. Planners and regulators should optimize the contributions of nursing practice. Actions include ensuring that nurses in primary health care teams are working to their full scope of practice. Effective nurse-led models of care should be expanded when appropriate to meet population health needs and improve access to primary health care, including a growing demand related to noncommunicable diseases and the integration of health and social care.
11. Workplace policies must address the issues known to impact nurse retention in practice settings; this includes the support required for nurse-led models of care and advanced practice roles, leveraging opportunities arising from digital health technology and taking into account aging patterns within the nursing workforce.
12. Policy-makers, employers and regulators should coordinate actions in support of decent work. Countries must provide an enabling environment for nursing practice to improve attraction, deployment, retention and motivation of the nursing workforce. Adequate staffing levels and workplace and occupational health and safety must be prioritized and enforced, with special efforts paid to nurses operating in fragile, conflict-affected and vulnerable settings.
13. Remuneration should be fair and adequate to attract, retain and motivate nurses.
14. Further, countries should prioritize and enforce policies to address and respond to sexual harassment, violence and discrimination within nursing. [And, with Zoom surveillance measures with IOT.]
15. Countries should deliberately plan for gender-sensitive nursing workforce policies. Actions include implementing an equitable and gender-neutral system of remuneration among health workers, and ensuring that policies and laws addressing the gender pay gap apply to the private sector as well. Gender considerations should inform nursing policies across the education, practice, regulatory and leadership functions, taking account of the fact that the nursing workforce is still predominantly female.
16. Policy considerations should include enabling work environments for women, for example through flexible and manageable working hours that accommodate the changing needs of nurses as women, and gender-transformative leadership development opportunities for women in the nursing workforce.
17. National governments, with support where relevant from their domestic and international partners, should catalyse and lead an acceleration of efforts to: build leadership, stewardship and management capacity for the nursing workforce to advance the relevant education, health, employment and gender agendas; optimize return on current investments in nursing through adoption of required policy options in education, decent work, fair remuneration, deployment, practice, productivity, regulation and retention of the nursing workforce; accelerate and sustain additional investment in nursing education, skills and jobs.
Actions include intersectoral dialogue led by ministries of health and government chief nurses, and engaging other relevant ministries (such as education, immigration, finance, labor) and stakeholders from the public and private sectors.
Investment in Education, Jobs and Leadership
A key element is to strengthen capacity for effective public policy stewardship so that private sector investments, educational capacity and nurses’ roles in health service provision can be optimized and aligned to public policy goals.
Professional nursing associations, education institutions and educators, nursing regulatory bodies and unions, nursing student and youth groups, grass-roots groups, and global campaigns are valuable contributors to strengthening the role of nursing in care teams working to achieve the population’s health priorities.
The investments required will necessitate additional financial resources. If these are made available, the returns for societies and economies can be measured in terms of improved health outcomes for billions of people, creation of millions of qualified employment opportunities, particularly for women and young people, and enhanced global health security. The case for investing in nursing education, jobs and leadership is clear: relevant stakeholders must commit to action.
World Health Organization (WHO)
Conclusion
Let’s train, send, and protect nurses.
18 million to go. 8.75 years.
A ton are retiring.
Business / Case Studies / Finance / Investment / Uncategorized
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April 8, 2024Business / Case Studies / Finance / Investment / Uncategorized(Source: The Balance)
For many, the business world can be viewed as an ecosystem; symbiotic relationships, perpetual cycles, and hidden yet omnipresent systems are present. Gil Forer, a Digital and Business Disruption leader, claimed that understanding the interactions in an economy is essential to a corporation’s success with 68% of corporate business leaders agreeing. As time went on, numerous companies began partnering with others to sustain themselves while continuously growing. These business relationships, such as alliances, are designed to be symbiotic, meaning that both parties benefit from each other. As time went on, acquisitions became relevant in the world of business due to their potential and promised growth, but they can also end in disaster.
What is a Business Acquisition?
Table of Contents
What is a Business Acquisition?1. Vodafone and Mannesmann for $180.95 Billion in 19992. America Online and Time Warner for $165 Billion in 20003. Verizon Communications and Verizon Wireless from Vodafone for $130 billion in 20134. Dow Chemical and DuPont for $130 Billion in 20175. Raytheon and United Technologies for $121 Billion in 20206. Anheuser-Busch InBev and SABMiller for $104 Billion in 20167. Pfizer and Warner-Lambert for $91.5 Billion in 20008. Gaz de France and Suez for $85 Billion in 20079. AT&T and Time Warner for $85.4 Billion in 201810. Heinz and Kraft for $45 Billion in 2015ConclusionManagerial intellect wilted in competition with managerial adrenaline. The thrill of the chase blinded pursuers to the consequences of the catch.
According to Will Kenton, a business acquisition is “a transaction wherein one company purchases most or all of another company’s shares to gain control of that company.” Businesses often do M&As to gradually improve synergy, and diversification to stand out and soar in the market. Furthermore, it increases the market share, lowers production costs, or even eliminates competitors by buying them outright. Jeanine Skowronski, the Head of Content at Forage, stated that there are four main types of takeovers:
Horizontal Acquisition – Buying a company that produces comparable products.Vertical Acquisition – Buying a company that produces supplies in the existing industry
Congeneric Acquisition – Buying a company that produces different products, but they have the same consumer base
Conglomerate Acquisition – Buying a company from another industry
Acquisitions and mergers have similar meanings, but mergers form a new legal entity. On the other hand, acquisitions still allow the “acquired” entity to operate within its boundaries, but it is still owned and affected by the owner company’s administration. In certain cases, the acquisitions can be hostile, meaning that they can occur without the consent of the acquiree.
Despite this, there are instances in which companies damage their market values due to mismanagement, sudden world events, or increased upkeep, which can discourage shareholders from investing in the company. Acquisitions can be a two-edged sword in both times of need and struggle, so a company should understand its importance and process.
1. Vodafone and Mannesmann for $180.95 Billion in 1999
The Vodafone and Mannesmann merger and acquisition was considered one of the largest in history with more than $180 billion on the table. (Source: Goldman Sachs)
Vodafone Airtouch PLC, a UK-based and American wireless telephone service provider, was one of the world’s largest telecommunications companies due to its size and expanding operations. The company’s main strategy for expansion is strategic acquisitions of smaller companies in different countries; this would allow Vodafone to purchase potential competitors outright without hassle.
Mannesmann was a German industrial conglomerate known for its high-quality steel products, mechanical and electrical engineering, and automobiles. In 1989, the German telecommunication market was liberated after the fall of the Berlin Wall; this increased the commercial and economic traffic within Germany, according to Funding Universe. Seeing an opportunity, Mannesmann raced to enter the telecommunication sector and be one of the first cellular phones and internet service providers In Germany. Combined with a German economic boom, the total sales of Mannesmann nearly quadrupled, reaching 22.3 billion Deutsche Mark in 1989. Despite this, the company still faced issues regarding high expenditures due to rapid expansion, culminating in break-even in 1992.
During Vodafone’s peak in the 2000s, the company planned on expanding to European countries, namely Germany because of its demand for telecommunications. Mannessman seemed to be one of the best choices for the company due to its influence on the German market and cheap value. On February 4th, 2000, the M&A deal was finalized with $190 billion, merging both companies into Vodafone Group PLC, according to Goldman Sachs. With Vodafone having more influence over the telecommunication market, the company was expected to expand across the globe.
Despite this, the Wall Street Journal stated that the company suffered from increasing debt, higher operational costs, and acquisition costs. Consequently, the company announced massive write-offs throughout the years to curb expenditures, resulting in the highest write-off of $22 billion in February 2006, according to the Financial Times.
2. America Online and Time Warner for $165 Billion in 2000
As Time Warner was considered a media conglomerate during the 80s and 90s, the deal is one of the most lucrative yet. (Source: Los Angeles Times)
As an American pioneer who popularized web portals and online services, American Online (abbreviated as AOL) was a cornerstone of the telecommunication industry in the 1990s with more than one million subscribers. AOL’s strategy is similar to Vodafone’s: acquiring lesser companies to build up value and attraction eventually. The technique has proven to be successful with CompuServe and MapQuest with more users signing up, albeit with some controversy. To build room for future expansions, AOL desired to acquire a company adjacent to its line of work to eventually seep into the market. Time Magazine stated that AOl was the United States’ largest service provider with $125 billion in valuation by the year 2000.
In a different industry, Time Warner was a media and entertainment giant known for its lucrative assets, such as Warner Bros., HBO, and Cinemax, according to Britannica. The company remained successful since its founding in 1966 due to its strong corporate connections, diverse portfolio, and excellent business management, extending its relevance to the 2000s. Despite the advent of the internet, Time Warner remained mostly unaffected as the demographic shifted to a digital medium, continuing its acquisitions into the late 90s.
In late 1999, American Online initiated the deal with Time Warner to diversify its assets and content, building its dominance over the media and entertainment industry. The New York Times reported that Steven M. Case, AOL’s cofounder, initially expressed enthusiasm over the deal. Still, optimism began to fade after regulators and management of both sides approved the merger.
As both entities have diverse organizational cultures, there were instances of internal conflict and mismanagement, leading to a major accounting scandal in 2002. This was further exacerbated by the dot-com bubble burst, a decline in advertisement revenue, and heightened operational costs, plummeting AOL’s stock value from $56.60 to $14.81 in January 2001. It was the last straw before the two companies parted ways.
3. Verizon Communications and Verizon Wireless from Vodafone for $130 billion in 2013
Verizon is currently the world’s second-largest telecommunication service provider with $135.5 billion in revenue. (Source: Yahoo! Finance)
Verizon Communications Inc., the second-largest service provider in the world, was founded after the merger between NYNEX, GTE, and Vodafone concluded in 2000 according to Nathan Reiff. During Verizon’s first merger, Verizon and Vodafone formed a long-lasting partnership and initiated a joint venture operating as Verizon Wireless (VWZ) in 2000; Verizon owned 55% of the company shares and Vodafone owned the rest, Reuters stated. Throughout the 2000s, Forbes reported that VWZ experienced increased NOPATs for over 14 years, peaking at nearly $24 billion in 2013. During their partnership, Verizon and Vodafone profited from their VWZ’s operations and collaborations.
As VWZ became one of the most prominent service providers in the United States, Vodafone initiated negotiations to sell 45% of VWZ’s stock. The decision was made to diversify Vodafone’s business portfolio outside of the United States, namely Europe, and open more opportunities for shareholders. Furthermore, Verizon was interested in the acquisition of VWZ to gain windfall cash flow, providing growth and stability against market disruptions.
On the 2nd of September, 2013, Verizon announced that Vodafone sold 45% of its VWZ stock to Verizon Communications Inc. for $130 billion. Furthermore, Verizon’s acquisition involved raising an enormous bridge loan of $61 billion, the largest bridge loan in history. Despite this, the deal resulted in an increase in net profits up to nearly $54.3 billion, according to Businesswire.
4. Dow Chemical and DuPont for $130 Billion in 2017
Dow Chemical and DuPont are leaders in the chemical industry. (Source: CNBC)
Ever since its founding in 1802, DuPont de Nemours, Inc., otherwise known as DuPont, has been a leading chemical conglomerate known for developing numerous revolutionizing polymers, such as Teflon, nylon, or Kevlar. According to Macrotrends, DuPont’s annual net income rose by nearly $53%, reaching roughly $7,435 billion in 2015. Similar to DuPont, the Dow Chemical Company was the world’s largest chemical producer during the early 2000s with more than $46,000 billion in sales in 2005.
In 2015, both conglomerates expressed their desire to merge to generally improve the companies’ synergy, reduce production-related costs, and accelerate material science research. Additionally, the merged company would have lower tax rates with combined market capitalization, enticing and enabling shareholders to invest more in the company, according to PR Newswire. Initially, the deal was settled at an undisclosed amount, but it had settled at $130 billion when the merger was completed on September 1st, 2017.
The newly-merged conglomerate, DowDuPont, was successful in generating income and lowering expenses. According to DealRoom, DowDuPont generated nearly $86 billion in annual net revenue in 2018, nearly eight times the 2017 net income of DuPont. However, the European Commission questioned the company’s adherence to regulations and predictiveness in the agricultural market as the company gradually dominated the market, according to Manufacturing Chemist. To comply with EU’s regulatory guidelines, DowDuPont proposed a plan to split into three companies: Dow, DuPont, and Corteva, an American agricultural and chemical company, Alexander H. Tullo stated. The deal was finalized on April 1st, 2019.
5. Raytheon and United Technologies for $121 Billion in 2020
United Technologies and Raytheon are major US military contractors and industrial corporations. (Source: SDM)
Numerous contractors are working for the United States Department of Defense, one of which was the Raytheon Company. Known for manufacturing complex military and commercial electronics, Raytheon had more than $27.1 billion in net sales, 67,000 employees, and 80 clients across the globe in 2018 as stated in Raytheon’s 2018 annual report. According to Defense News, Raytheon was the second-largest US military contractor based on its revenue, just behind Lockheed Martin.
United Technologies was also a major producer of military and civilian electronics, amassing over $7.8 billion in annual revenue. It ranked 11th in terms of revenue. The company was well-renowned for its acquisitions of popular manufacturers, such as Pratt & Whitney, Hamilton Sundstrand, and Carrier Corporation; the company had control over the supply chain in civilian and military aircraft, air conditioning, and elevators.
On November 26th, 2018, United Technology announced its intentions to split into three separate entities to streamline manufacturing and improve shareholder value, according to SDM. United Technologies CEO, Gregory Hayes, stated that the merger of both companies would strengthen and unleash market opportunities in the long run. Additionally, the merger would lead to more synergy, monetary efficiency, and more advanced R&D as there would be more funding. Finally, the Guardian reported that the merger was finalized on the 10th of June, 2019 with $121 billion offered by Raytheon. Eventually, the merged company rebranded to RTX Corporation in 2020.
6. Anheuser-Busch InBev and SABMiller for $104 Billion in 2016
AB InBev and SABMiller are powerful players in the alcoholic beverages industry, amassing over $200 billion combined. (Source: Just Drinks)
Ever since Interbrew’s founding in 1987, the Belgian company rapidly expanded over the 90s and 2000s through M&As between Ambev, InBev, and Anheuser-Busch, forming Anheuser-Busch InBev (AB InBev). According to the Guardian, the company generated roughly $47 billion in annual revenue with nearly 155,000 employees in 2015. Before the SABMiller acquisition, AB InBev purchased and sold theme parks, bought market shares, and even secured deals with popular brands, namely Budweiser and Bud Light.
On another continent, SABMiller Plc was a large South African brewing and beverage conglomerate based in Surrey, England. According to Reuters, it was the second-largest brewer in the world measured by net revenue, being one of the dominant players in the brewing industry. Notably, SABMiller was a major bottler of Coca-Cola and brewer of numerous local favorites, such as Foster’s. SABMiller generated nearly $26 billion in annual revenue with 69,000 employees in 2015.
According to the BBC, talks regarding the acquisition initiated in September 2015 with AB InBev wishing to take over SABMiller. This was due to AB InBev’s planning market expansions in Africa; however, SABMiller had always been a dominant player in the African market. Additionally, both companies would benefit from lower costs of production and higher synergies through a merger, unlocking their potential in the global market. Finally, the Chicago Tribune reported that AB InBev and SABMiller finalized the acquisition on the 10th of October, 2016 for $104 billion, the largest deal in the brewing industry. Today, Anheuser-Busch InBev is the world’s largest brewer with $59 billion in annual revenue in 2023.
7. Pfizer and Warner-Lambert for $91.5 Billion in 2000
Pfizer is known for being pioneers in the biotech and pharmaceutical industries respectively. (Source: BBC)
Pfizer Inc. is a household name in the pharmaceutical and biotechnical industry known for developing and distributing COVID-19 vaccine, apixaban, and pneumococcal conjugate vaccine. According to Pfizer’s investor page, the company generated $58.5 billion in annual revenue in 2023 with 37 global manufacturing sites and roughly 88,000 personnel worldwide.
On the other side of the industry, Warner-Lambert was a pharmaceutical company that originated in 1856 as a pharmacy. William R. Warner, the founder, invented a tablet-coating process and acquired numerous cosmetic companies, eventually forming Warner-Hudnut, then Warner-Lambert. Britannica reported that the company was known for its ownership of Listerine, Bromo-Seltzer, and Smith Brothers’ cough drops.
Both companies once collaborated in the distribution of Lipitor in 1997, reaching nearly one billion dollars in sales in the first year. Due to Lipitor’s success, Pfizer saw an opportunity to lower production costs and increase the company’s portfolio from Warner-Lambert’s acquisition. Furthermore, the acquisition would reduce competition in the pharmaceutical market, opening more financial opportunities. In November 1999, Pfizer began making hostile bids to buy Warner-Lambert for $82.4 billion at first.
After three months, Pfizer finalized the takeover of Warner-Lambert for $91.5 billion on the 7th of February 2000, according to the Washington Post. The New York Times stated that the merger would form a pharmaceutical giant in the US and world pharmaceutical market based on statistics. As of 2023, Pfizer remained the top seller of pharmaceutical products with 1.6 trillion in annual revenue in 2023, Statista reported.
8. Gaz de France and Suez for $85 Billion in 2007
Suez CEO Gerard Mestrallet (right) with GDF CEO Jean-Francois Cirelli (left) in 2006 (Source: DW)
A major natural gas producer in France was Gaz de France (GDF) with nearly $30 billion in annual revenue in 2007 with over 30,000 staff, according to the Zonebourse. Ever since it was founded in 1946 by the French government, GDF expanded its operations to become a dominant player in the natural gas market through rapid expansion inside France. Over the years, GDF diversified its portfolio and expanded internationally, offering services relating to natural gas.
On the other hand, Suez was a French-based multinational utility company with a diverse portfolio of services spanning electricity, water, waste management, and environmental solutions. The company’s expertise is in water treatment, wastewater management, and environmental protection, according to the company’s website.
Talks regarding the merger began in February 2006 when the boards of GDF and Suez announced their intention to merge; this was to form a leading energy and utilities group catering to numerous industries. Additionally, the merger aimed to reduce competition in the energy industry, stabilize the energy market, and increase synergy within the corporation. During the acquisition deal, some regulatory and economic concerns had raised officials’ eyebrows, but the merger was approved. On the 3rd of September, 2007, the deal was finalized, and the companies merged into GDF Suez on the 22nd of July 2008, Eurofound reported.
9. AT&T and Time Warner for $85.4 Billion in 2018
AT&T and Time Warner are titans of the media industry. (Source: Deadline)
AT&T Inc. is a multinational conglomerate based in the United States, operating mainly in telecommunications and media. Originally established in 1885 as the American Telephone and Telegraph Company, AT&T has grown into one of the largest and most influential companies in the world due to its influence over the entertainment industry. According to its 2022 financial report, it was the fourth-largest telecommunications company in the world and the biggest service provider in the United States.
According to the New York Times, the discussions for the merger began in October 2016 when AT&T announced its plans to acquire Time Warner for $85.4 billion, aiming to expand into new markets and dominate the telecommunication industry. The proposed merger would bring AT&T’s vast infrastructure and Time Warner’s media assets together, creating an entertainment powerhouse. However, the merger faced significant regulatory and antitrust scrutiny, as critics raised concerns about the potential for anti-competitive behavior and market consolidation.
After a legal battle, the merger was finally approved by a federal judge in June 2018, allowing AT&T to proceed with the acquisition of Time Warner according to their official website. Following the merger’s completion, AT&T integrated its operations into its broader telecommunications and media ecosystem.
The merger between AT&T and Time Warner marked a significant milestone in the convergence of media and telecommunications industries, highlighting the growing importance of content ownership and distribution in an increasingly digital and interconnected world. Despite facing regulatory challenges and legal hurdles, the merger ultimately reshaped the competitive landscape of the media and telecommunications sectors.
10. Heinz and Kraft for $45 Billion in 2015
List of brands owned by Heinz and Kraft (Source: Money)
For more than 150 years, the Heinz Company has dominated the food industry with a wide range of products that have become household names, ranging from soup to ketchup. According to Macrotrends, Heinz accumulated over $10.9 billion in annual revenue in 2014 with production plants located in more than 200 countries.
In the same field, Kraft Foods Group was an American food and beverage company known for its Kraft cheese, Toblerone, Jello, Kool-Aid, and many more delicacies. Throughout the years, Kraft has gained traction through corporate acquisitions, thus generating more products and profits with less production costs. The United States Securities and Exchange Commission documented that the company’s annual revenue for 2014 was $18.2 billion with roughly 22,000 employees around the globe.
In March 2015, H.J. Heinz Company, owned by Berkshire Hathaway and 3G Capital, announced its intention to merge with Kraft Foods Group in a transformative deal valued at $45 billion, Forbes reported. This merger aimed to create one of the largest food and beverage companies in the world, with a diverse portfolio of iconic brands spanning various categories such as condiments, snacks, dairy, and beverages. This was to curb competition by assimilating lesser rivals in the industry while rapidly expanding.
Following regulatory approvals and shareholder consent, the merger was completed in July 2015 with the deal valued at $45 billion, marking the beginning of a new chapter for both companies. The Kraft Heinz Company emerged as a global powerhouse in the food and beverage industry, emanating its presence throughout the world market. However, the merger faced challenges in the subsequent years, including shifting consumer preferences, changing market dynamics, and operational issues within the combined entity, resulting in major write-offs according to the New York Times. Despite these challenges, the Kraft Heinz Company remains a major player in the food industry, continually evolving its portfolio and strategies to adapt to the evolving market landscape.
Conclusion
Acquisitions have always been part of the economy due to their impact on corporations, the market, and investors. While a majority of M&As resulted in success for both companies and investors, some ended in disaster due to poor and hasty planning or sudden events, resulting in disagreements, deficits, or even split-ups. Thus, it takes great judgment and consideration for business owners to incorporate with other companies.
Managerial intellect wilted in competition with managerial adrenaline. The thrill of the chase blinded pursuers to the consequences of the catch.
Warren Buffet
According to David B. Jemison and Sim B. Sitkin, numerous factors affect M&As and the aftermath. Mainly, the involvement of specialists and market analysts, increasing momentum, and lack of communication can lead to ambiguity, limited consideration, and integration issues. All of this would lead to fragmented perspectives, meaning that the companies have different views and understandings of the deal, much to the confusion of both companies in the future. Consequently, both companies would face scrutiny from investors due to underwhelming performances and controversies. Despite this, mergers and acquisitions can benefit corporations if done properly, boosting their assets and access to markets. Thus, businessmen should take great consideration when negotiating M&As.
One should consider the following when doing M&As:
Similar strategic goals, long-term visions, and business plan
Financial health, performance, and potential synergies
Revenue growth, cash flow, profitability, debt, valuation, etc.
Potential risks, liability, and challenges
Legal, operational, regulatory requirements or cultural aspects
Market position, competitive landscape, and growth potentials
Integration planning
Legal and regulatory considerations
Stakeholder communication
Risk management
Taking time to perform M&As to fully discuss and analyze crucial data
Do not be swayed by momentum or pressure
Resolve important issues before concluding the deal
Despite the complexity and dangers of M&As, they can be successful if done properly and diligently for both parties, shareholders, and the economy at large. [...]
March 2, 2024Business / Case StudiesPhil Nike and Bill Bowerman are Nike’s co-founders and former CEO. (Source: KATU 2 ABC)
Just do it.
Nike
Nike has a long-standing history in the sportswear industry. Being renowned for revolutionizing sneakers and sporting equipment, the company stood the test of time for more than half a decade; its innovative ideology, strong marketing techniques, and supply chain management are Nike’s keys to success. According to D. Tighe, a marketing researcher, Nike generated approximately $22.3 billion in worldwide gross profit in 2023, making it the largest sportswear corporation, according to Runners Athletics. As of August 2023, Nike’s total assets and net income were approximately $40.3 billion and $6.05 billion, respectively, with roughly 80,000 employees worldwide.
Before Nike was known for revolutionizing the sports industry, it was a product distributor of Onitsuka Tiger under Blue Ribbon Sports. Its co-founders, Phil Knight, and Bill Bowerman, transformed a small business into a multinational corporation overnight through ingenious methods that are still used today.
Everyone Has to Start Somewhere
Table of Contents
Everyone Has to Start SomewhereBlue Ribbon IdeasConnecting the West to the EastGet Set, Go!Into the Big LeaguesHow a Waffle Iron and a Swoosh Made HistoryInnovation is KeyInspiration and MotivationWhere We Are Today
Knight was in the esteemed Oregon Ducks track and field program at the University of Oregon. (Source: Phil Knight Weebly Page)
Knight was born on the 24th of February, 1938, to William Knight, a lawyer turned The Oregon Journal publisher, and Lota Cloy. As the eldest brother of William’s three sons, he was raised in the Eastmoor neighborhood in Portland. In his childhood, he attended Portland High School. According to an archived article from People, when his father refused to offer a summer job at his office to push him to find one on his own, Knight applied for The Oregonian, The Oregon Journal’s rival; he worked night shifts cataloging sports scores, then ran back home seven miles every morning. This event may have inspired him to pursue sports, namely track and field.
The Encyclopedia Britannica stated that Knight had little interest in education in his early life, but he attended the University of Oregon in 1955. Due to his interests, Knight became a runner for the Oregon Ducks track and field program and a sports reporter. During his tenure as a runner, he met Bowerman, a well-acclaimed coach known for training 32 Olympic medalists and modifying athletes’ shoes. Eventually, he earned his degree in Arts and Science in 1959. Then, he spent eight years serving in the US Army as a reserve, attended Stanford University with a major in business, and found his passion: entrepreneurship and sales. Combined with his love for running, he dreamed of opening a shoe store.
Blue Ribbon Ideas
Connecting the West to the East
The first store of Blue Ribbon Sports was opened in 1966. (Source: Shortform)
After he graduated from Stanford University in 1962, Knight was already planning his business. According to the archived article in Stanford Magazine, he was inspired by his old business class paper which reflects that Japan produces high-quality athletic shoes at a low price to be put on the industry’s map, according to Knight’s biography Shoe Dog. To find other ideas for his business, Knight toured around the world and made a stop in Kobe, Japan in November 1962. During his visit, he discovered Onitsuka Tigers, a well-respected Japanese sports fashion brand. Due to the products’ superiority and low production cost, Knight pitched a deal with Kihachiro Onitsuka, the company’s founder, to earn distribution rights to sell his products in the United States; the deal went through.
The first sample delivery arrived a year after the deal was made, and Knight sent two samples to Bowerman to hopefully get a sale and some recognition. Not only was Bowerman elated with the samples and bought them, but he also wanted to become a partner to help design products. Thus, Blue Ribbon Sports was born on January 25th, 1964 with a handshake between Knight and Bowerman.
Get Set, Go!
Advertisement from Blue Ribbon Sports (Source: The Deffest)
Forbes stated that Knight and Bowerman invested $500 each in the business. According to numerous sources, Blue Ribbon Sports made its first sales on the back of Knight’s Plymouth Valiant. Reportedly, the company sold 1,300 pairs of Onitsuka Tiger shoes for $8,000 in the first year (1964), equating to nearly $80,000 in March 2024. This is all due to Knight’s clever marketing strategy. Air Designs stated that Knight traveled all over the Pacific Northwest to chat and show his wares to coaches, athletes, and fans between races.
The company was booming more than ever before, which allowed it to open its first retail outlet in Santa Monica, California. Knight also hired the company’s first employee, Jeff Johnson, in 1965 to operate the store. Johnson was an exceptional worker, selling more than 3,250 pairs of shoes in 10 months. While he employed the same technique as Knight, he surpassed him in customer relationship management. With the initial success, Knight resigned from his accountant job and pursued Blue Ribbon Sports full-time.
Into the Big Leagues
How a Waffle Iron and a Swoosh Made History
Nike’s first product, the Moon Shoe, is worth $437,500 today. (Source: CNN)
The 1970s saw a major change in company history. As BRS’ growth accelerated, Onitsuka Tiger proposed an ultimatum that would grant the company 51% of BRS’ shares, essentially taking it over. Knight and Bowerman rejected the acquisition attempt, and tensions between the two companies ensued. Finally, the relationship between both parties ended in 1972. However, seeing that the contract would likely be canceled, Knight planned to produce shoes without importing products into the US.
One morning when his wife was making waffles on a waffle iron, Bowerman had an idea as mentioned by Deepika Lal. As grass fields were replaced with artificial ones, runners needed shoes that did not have spikes while still gripping the track and had little weight; waffle-patterned soles from “waffle irons” were the way. In addition, the sturdiness of the waffle soles provides the shoe with integrity and balance; it became a favorite amongst the running community. Hence, the idea transformed into the debut of Moon Shoes, the company’s first product, in 1972. However, it is not a product without a brand.
Knight believed that BRS needed to rebrand itself to establish its independence and image with local and international audiences. Moreover, rebranding could be used as a marketing and advertising strategy. Many names were passed amongst the 50-employee group, but no dice. At the last minute, Johnson proposed the name Nike, a Greek goddess of war, victory, art, and athletics; it was perfect. Carolyn Davidson, a graphics designer hired by BRS, formulated the iconic “Swoosh” which Knight “didn’t love, but it grew on him” according to CNBC; she was paid $35.
Innovation is Key
The Air Jordans is a line of Nike basketball shoes partnering with Micheal Jordan, a well-known Chicago Bulls basketball player in his first season. (Source: The Guardian)
With Nike establishing its first successful product, they had to think outside of the box when it comes to product design. As the 80s loom in, there was a rise in sports fashion as more people became interested in sports for the sake of health and ‘trendiness’ according to Fashinza; a majority of consumers were interested in running or jogging as it is an easily accessible sport that requires little to no expertise to participate. Nike was quick to cash in on the mania. In 1983, Nike released the Pegasus, a line of sneakers designed to be lightweight, comfortable, yet clean-cut. To this day, the Pegasus is one of the most long-standing lines of sportswear in Nike history. As manufacturing technology progresses, the shoe line continues to improve with each iteration.
To thrive in the market, brands need both recognition from the public and their approval. There are many ways to achieve acknowledgment from consumers, but celebrity endorsement has proven to be one of the most effective methods. Knight and Bowerman had already employed these techniques during the BRS era, but they were going to take it up a notch by approaching Michael Jordan with a pair of personalized basketball shoes in 1984. At the time, Jordan had just begun his basketball journey, so he happily accepted the deal. As Jordan’s reputation within the basketball community grew, so did Nike’s. Due to popular demand, Nike then released their state-of-the-art shoe line, the Air Jordans in 1985. Nike did the endorsement stunt again in 1996 with Tiger Woods, a professional golfer.
Inspiration and Motivation
“Just Do It” is Nike’s most iconic motto because of its conciseness and simplicity.
Nike is not only known for its products, its partnerships, or even its shoes; it is also known for its simple message: everyone can exercise. This all stems from Bowerman’s philosophy regarding athleticism:
If you have a body, you are an athlete.
Bill Bowerman
In 1987, Nike was planning a televised advertisement to promote its products with Wieden+Kennedy, a creative agency. According to an interview about advertisements in 2009, Dan Wieden, the director of the creative agency, admitted that the inspirational advertisement ironically originated from a convicted murderer’s last words during his execution. Despite the dark subtext of the tagline, it heavily resonated with audiences of different ages, genders, or physical capabilities. The campaign did not promote Nike shoes as sportswear, it empowered athletes worldwide to take their first step. In other words, just do it.
Throughout the 80s and 90s, Nike’s sales increased exponentially, according to Statista with more than $5.5 billion in revenue in 1997. As Nike’s popularity boomed all over the globe, the company expanded its catalog to cover other sportswear and franchises locally and internationally. As of March 2024, Nike has stores in more than 190 countries under its investor page.
Where We Are Today
In December 2004, Knight resigned from Nike as CEO for his retirement, with a net worth of nearly $43 billion as of March 2024. Outside of Nike, Knight is the owner of Laika, a stop-motion animation studio known for its cult classics, namely Coraline. However, Bowerman unfortunately passed away on December 24th, 1999 at the age of 88.
Today, Nike serves as a symbol of passion and determination to numerous athletes, inspiring many others to take up sports and other ventures. It is the largest sportswear company in terms of revenue when compared to its competitors like Adidas, Puma, and Under Armour. With its innovative designs and technology, Nike revolutionized how we view sports. [...]
February 27, 2024Science / Technology / UncategorizedThe inner structure of the JET Tokamak, a large device used in fusion experiments in the UK (Source: CNN World)
Electricity is one of the most essential resources for the human populace. In 2022, global electricity consumption reached approximately 25,500 terawatt-hours, according to the Statista Research Department. The International Energy Agency’s Electricity 2024 Report stated that the world’s demand for energy will increase by an average of 3.6% until 2026 due to the rising usage of technology in various commercial sectors, namely artificial intelligence (AI), cryptocurrencies, and energy-intensive data centers.
As many countries have adopted new renewable energy plants worldwide, they have encountered some issues, such as efficiency, public or governmental opposition, and high maintenance and building costs. To counteract the bottleneck in energy production, research groups have been finding innovative solutions to the incoming energy crisis, one of which is fusion energy. The International Atomic Energy Agency claimed that this form of energy production is highly sustainable in terms of fuel, energy output, and environmental impact.
Table of Contents
Table of Contents
Table of ContentsWhat is Fusion Energy?Fusion Reactions in a Controlled SettingWhy All the Hype?Wait, How Will This Affect the Economy?A Bright Future Ahead
What is Fusion Energy?
A depiction of a nuclear fusion reaction in fusion power plants (Source: BYJU)
The United States Department of Energy stated that nuclear fusion is a nuclear reaction in which “two light nuclei merge to form a single heavier nucleus,” resulting in the formation of one or more subatomic particles (neutrons or protons) and the release of energy from leftover mass. Einstein’s Theory of Relativity states in part that mass and energy can convert into each other, validating phenomena.
The fusion reaction occurs in nature in many ways with different materials and conditions, such as star formations, stellar reactions, and Earth’s core. In nuclear fusion plants, scientists utilize two isotopes (variations) of hydrogen, which are deuterium and tritium, in the fusion reaction within the tokamak, a vessel designed to encapsulate the extreme temperature and pressure of the reaction. Moreover, there is a magnetic field surrounding the vessel to ensure that there is no plasma leaking out and to transform the gaseous matter into plasma.
Fusion Reactions in a Controlled Setting
The ITER Institute described the process of fusion energy generation. When the isotope is introduced to the tokamak, it is electrically charged by the magnetic field surrounding it; it breaks down electrically and transforms into plasma, a phase of matter in which particles become ionized, meaning that it has an electrical charge. As the particles gain charge, they start colliding with other molecules, producing 150-200 million degrees Celsius of heat. In this state, particles will begin the fusion reaction; helium, a neutron, and an immense amount of energy formed from the reaction. Then, helium and other byproducts are ejected from the facility to make room for incoming fuel.
Fusion reactions are the opposite of fission reactions, which are nuclear processes that involve nuclei splitting and forming smaller nuclei and energy, forming a radioactive leftover and energy. However, both processes are used to heat a fluid, usually water, resulting in steam, which turns the turbine and generates electricity.
Why All the Hype?
Many countries are interested in building research tokamaks, such as South Korea’s KSTAR within the Korea Institute of Fusion Technology. (Source: NewScientist)
Unlike nuclear fission, fusion energy does not produce any radioactive material nor greenhouse gases such as carbon dioxide; it only produces helium, an inert, non-toxic gas according to ITER. On the contrary, fission reactions often produce radioactive waste hazardous to the environment and humans; the Nuclear Energy Agency stated that it takes approximately ten thousand years to decay completely within secure underground storage.
Deuterium and tritium are also commonly found in the Earth’s ocean and lithium deposits. This allows the usage of this type of energy production to continue for a long period. Furthermore, the reactions release less radiation and are more controllable, improving the safety of fusion power plants. Since fusion reactions require the combination of two nuclei, should one material be removed from the chamber, it would already cease the ongoing reaction. Many nuclear institutes, such as the IAEA, WNA, and CCFE, regard fusion energy as one of the most sustainable and efficient forms of energy generation.
Moreover, the scientific development of fusion is one of the most anticipated research projects in the scientific community. This is because the breakthrough can be detrimental to future and past research, especially in energy generation, nuclear physics, and environmental science. Therefore, fusion energy research can revolutionize how humanity perceives and rationalizes other phenomena in the realm of science.
Wait, How Will This Affect the Economy?
A chart illustrating the external costs of each type of natural resource in energy production. (Source: Slavomir Entler et al.)
The University of York stated that introducing fusion energy into the power grid can lead to major restructuring of businesses. To build and run a power plant, especially sophisticated ones like fusion reactor plants, an organization requires a huge amount of unskilled and skilled labor to construct and operate a plant smoothly; this provides job opportunities for people from a variety of backgrounds. Partnerships, governmental grants, and investments can boost the research and development of fusion energy, potentially boosting the local and international economies.
With energy more accessible and cheaper to produce, the world would have nearly limitless electricity to solve energy insecurity and crisis issues across the globe, improving people’s quality of life and industrial output. With little to no pollution produced, there would be fewer expenses spent on environmental damage. Higher electricity generation enables the industrial sector to expand and innovate from research in fusion energy, namely in hardware, software, and AI. Furthermore, fusion energy research often results in collaboration between multiple nations, fostering a political and economic bond between countries.
A Bright Future Ahead
While the future of nuclear fusion energy is unclear, there are some plausible assumptions to be made. According to Hayley Dunning and Laura Gallagher, as of February 2024, fusion energy has successfully generated net positive energy in the National Ignition Facility in Livermore, California. After the first fusion plant officially begins operation, public and private companies would likely start competing to build a plant of their own with international involvement; this process would result in legislation and regulations regarding fusion energy production to maintain the standards and safety of this form of energy production.
This mass production of fusion energy would result in heavy development in energy generation, environmental, and material technology, which would have a definitive impact on the global economy with businesses adopting them into their products. As a result, global wealth would slowly rise as people had more access to electricity, which not only upgrades their well-being, it also strengthens their career opportunities, financial stability, and work efficiency. [...]
February 9, 2024AuthorWhile I’ve always believed in the uniqueness of individual experiences, my journey into the realm of psychographics has revealed the fascinating ways we all interact with broader psychological and sociological patterns. My curiosity in psychology and human behavior led me to this discovery, though the realization bloomed later than I hoped. Psychographics, a term that was unfamiliar to me until recently, opened my eyes to the complex and vast domain of marketing psychology, emphasizing the profound impact of our mental processes on decision-making.
Every choice we make stems from our feelings, which are influenced by countless factors.
My exploration into psychographics, sparked at the age of 19 as a high school graduate, not only expanded my understanding of others but also helped me learn more about my psyche, which led me to question my motives before making a purchase.
Foundational Theories and History of Psychographics
Table of Contents
Foundational Theories and History of PsychographicsDefining Psychographics: What Does It Mean?Psychographics in the Real World Core Elements of Psychographic Segmentation:The VALS Framework: An OverviewUnderstanding the Three Main Motivational Paths and their subtypesCorrelation with Maslow’s Hierarchy of Needs
The concept of psychographics builds upon the foundational theories of human motivation and personality, such as Abraham Maslow’s hierarchy of needs, which categorizes human needs from the most basic to self-fulfillment needs. Arnold Mitchell and the Stanford Research Institute’s development of the VALS (Values, Attitudes, and Lifestyles) framework in 1978 further solidified the role of psychographics in marketing by classifying consumers based on psychological traits and key demographics. These milestones in psychology and market research have paved the way for a deeper understanding of consumer behavior, illustrating the dynamic interplay between individual values, lifestyles, and purchasing decisions.
If you’re looking for the ideal customer profile when it comes to marketing, there are four main types of segmentation: demographic, psychographic, geographic, and behavioral.
Psychographic segmentation stands as one of the more advanced segmentation types as its variables are subjective.
Defining Psychographics: What Does It Mean?
Psychographics are subdivisions for customer profiling in marketing, where the values, interests, lifestyle, personality, and social status of the audiences are the focal points that are analyzed to create a particular product for each categorized customer segment. It deals with the “why” behind a person’s purchasing decision: why do they prefer certain products, hold specific beliefs, or have certain aspirations?
Psychographics in the Real World
Incorporating psychographics into marketing strategies has proven to be profoundly effective. In the music domain, Fernández-Tobas et al. (2016) showed that online music recommendations are more successful when they leverage the correlations between people’s personalities and their music preferences. Similarly, Karumur, Nguyen, and Konstan (2016) discovered correlations between personality and movie preferences among Netflix users. Additionally, studies in marketing have found that personality explains only a surprisingly small amount of the overall variance in consumer behavior.
Core Elements of Psychographic Segmentation:
These elements are subjective, ever-changing, and intertwined with each other. Every aspect affects the other, forming a person’s psyche as a whole. These elements, which categorize a person’s character into five broad dimensions (openness, conscientiousness, extraversion, agreeableness, and neuroticism), offer a scientific basis for understanding how personality influences consumer preferences and behaviors. By considering these elements, marketers can craft strategies that resonate with the specific characters and values of their target segments, leading to more effective and meaningful consumer engagement.
Personality Traits
Categorizing the personality of the audience can help study their choices, what aligns with the type of person they are, and what they prefer as someone with their own set of characters. Personality can be broad and deep, so generally most people can fall under these specific traits: creative, emotional, introverted, extroverted, opinionated, friendly, closed-off, and organized.
Opinions and Beliefs
A person’s opinions and beliefs can depend on external factors such as their age, their level of education, the environment they grew up in, and other specific events in life. It shapes the priorities, preferences, lifestyles, interests, and motivations of an individual. In psychographic profiling, we look for the reasons behind these opinions and use those to influence their willingness to buy goods.
Interests and Lifestyles
The interest and lifestyle aspect can be assumed based on their personality and other core elements but can also sometimes be contradictory; e.g., an introverted person can have “extroverted” hobbies such as hiking, and an extroverted person might indulge in reading books alone for a few hours. Similarly, a very organized person can have an irregular sleep schedule. If we study why their interests are in such a manner, we can create products that align with their lifestyles and the reasons behind those lifestyles.
Values and Attitudes
What people hold as their truth is considered a part of their identity. Values play a big role when it comes to that. Attitude and value go hand in hand; how someone acts or reacts is how they place importance on the action/reaction. Values are generated from religion, community, culture, and such. If a product speaks to them as something that can reaffirm their values, then their identity will also be too, which persuades them to purchase the products.
Suppose we are advertising a holistic medicine with multiple benefits, where one of them includes helping with sleeping. We can advertise it in a way that speaks to a person whose goal is better sleeping. For instance, the advertisement description can emphasize the multiple functionalities of a single product. This type of marketing can feel specific, so the customer should feel as if the product was specifically made for them and what they needed.
The VALS Framework: An Overview
The VALS framework, a tool for psychographic segmentation, stands for Values, Attitudes, and Lifestyles. Developed in 1978, SRI International Consumers are classified with the help of this framework for their psychological characteristics.
Understanding the Three Main Motivational Paths and their subtypes
Thinkers: Motivated by Ideals and Philosophical beliefs
People who fall into this category are usually strategic, planning and evaluating their actions and all the possibilities, and seeking credibility and factual benefit with proof. It’s hard to influence them and persuade them into trends; they seem to prefer traditional and reliable products with historic value
Believers: Thinkers with lower resources
Believers are a subtype of thinkers due to three factors: low resources, many motivations, and the intensity of the motivations being different from those of thinkers. While having firm ideals and knowing where they stand, they keep them to themselves and do not strive to create change. They lead simple, normal lives and value basic rights. They enjoy books or TV shows but prefer the romance genre with hints of spirituality and humanity.
Achievers: Motivated by Status and Rewards
Achievers are often stereotyped as “me first, my family first” types of people. They are the typical go-getters who prioritize schedules, goals, and productivity. But there’s a catch, not necessarily bad: they’re image-conscious. All the hard work is worth it to them, so they can claim they are responsible for their hard-earned work and its benefits. They can lead a simple life, but they can be materialistic to a certain extent (which also should be a productive purchase).
Strivers: Achievers with low resources
While strivers are typically hardworking, they do not have a sense of direction to reach their goals. They jump from job to job, and while that process shows their ambition, their lack of direction can be detrimental to their development. This group of people also engage in activities that involve feeling a sense of accomplishment, like video games. Being friendly people with enjoyable characteristics, they tend to show off things they value.
Experiencers: Motivated by Self-Expression
These people are free spirits. They are rebellious, but also very up-to-date with trends and topics. People who fall into this category love feeling the thrills of life; physical activity makes them feel alive and gives them a boost of adrenaline. This makes them try everything. Their actions are often unpredictable, impulsive, and spontaneous.
Makers: Experiencers with low resources
Makers are considered to be distrustful of the government; while they view themselves as intelligent people, others may not feel the same. They believe in strict gender roles, want some sort of material possession, preferably land, and are usually protective of things they believe belong to them.
Thinkers, Achievers, and Experiencers are all primarily motivated by ideals, achievements, and self-expression respectively.
Correlation with Maslow’s Hierarchy of Needs
The relation between the VALS framework and Maslow’s Hierarchy of Needs has a very similar baseline: there are survivors (basic needs), people who are neither survivors nor innovators (psychological needs), and innovators (self-fulfillment needs).
To reach self-actualization or be an “innovator” one must fulfill the other needs beforehand. Maslow’s principle discloses that “the clear emergence of these needs rests upon prior satisfaction of the physiological, safety, love, and esteem needs. We shall call people who are satisfied with these needs, basically satisfied people, and it is from these that we may expect the fullest (and healthiest) creativity.”
Conclusion: My Journey in Discovering Psychographics
Having studied psychology with interests inhuman behavior, and the social sciences, this concept was new to me. After some researching, I stumbled upon the relationship between VALS and Maslow’s needs, a familiar topic, helped me draw clearer conclusions. Everyone is unique and cannot be labeled, however certain traits can be categorized, and that is what psychographic profiling does. My foray into the world of psychographics has not only broadened my perspective on psychology and human behavior but also highlighted the practical applications of these insights in marketing and beyond. While this knowledge has the potential to inform not just marketing strategies but also public health campaigns, educational initiatives, and social programs, it can also illustrate the versatility and profound impact of psychographics across various domains.
The motive here is to understand what drives particular groups of people and why the same things don’t work for other people.
References
Mitchell, A. (1978). VALS: Values, Attitudes, and Lifestyles Outlines the development of the VALS framework, a key tool in psychographic segmentation.[Wikipedia]
Fernández-Tobías, I.; Braunhofer, M.; Elahi, M.; Ricci, F.; Cantador, I. Alleviating the new user problem in collaborative filtering by exploiting personality information. User Model. User Adapt. Interact. 2016, 26, 221–255. [Google Scholar] [CrossRef] [Green Version]
Karumur, R.P.; Nguyen, T.T.; Konstan, J.A. Exploring the value of personality in predicting rating behaviors: A study of category preferences on movie lens. In Proceedings of the 10th ACM Conference on Recommender Systems, Boston, MA, USA, 15–19 September 2016; pp. 139–142. [Google Scholar]
Sandy, C.J.; Gosling, S.D.; Durant, J. Predicting consumer behavior and media preferences: The comparative validity of personality traits and demographic variables. Psychol. Market. 2013, 30, 937–949. [Google Scholar] [CrossRef]
Maslow, A. H. (1943). A Theory of Human Motivation. Psychological Review, 50(4), 370-396. This seminal paper introduces Maslow’s hierarchy of needs, a foundational theory in psychology that has influenced consumer behavior studies.[Originally Published in Psychological Review, 50, 370-396.] [...]
February 5, 2024Author(Source: Reginald F. Lewis Official Website)
Many young, up-and-coming American entrepreneurs often have misconceptions about how numerous business empires are entirely dominated by White magnates. According to research by Alex Cook, White people own 85.6% of American businesses while African Americans have ownership of 2.5% in 2020. Victor Ray, an Associate Professor in African American Studies and Sociology and Criminology, stated that historical reinforcement of White dominance has resulted in radial disparities within workplaces from unfair selection policies and environments, leading to a decline in non-white representation in administrative power.
However, some have argued that there is an increase in the entrepreneurship of people of color. With laws and regulations canceling out disadvantageous qualifications and readjusting policies about employee treatment, there is more room for non-White businessmen to take the spotlight. One of them is Reginald Francis Lewis, an aspiring and tough entrepreneur who became the first African American to own a billion-dollar company. With a law firm, a national conglomerate, and several philanthropies under his belt, he has inspired numerous POCs to pursue business, law, and finances.
Index
Table of Contents
IndexA Strong DriveThe Law PrevailsPower MovesPhilanthropy and DeathLasting LegacyKeep going. To build a better society in America. To be a compassionate America… Keep going, no matter what.
A Strong Drive
Reginald F. Lewis spent his childhood in Baltimore, Maryland (Source: Thirteen PBS)
Lewis was born to Clinton and Carolyn Lewis in a working-class community on December 7, 1942. According to his biography, he was raised to be ambitious and determined by his parents and relatives at a young age, formulating a work ethic that stayed with him for all his life; he was taught the value of savings by his grandmother as well.
When Lewis was ten years old, he had already made his first venture into business: newspaper delivery service. With Baltimore Afro-American News supplying, Lewis created his delivery route, where he employed other children. After two years of operation, the customer base increased from ten to more than a hundred customers, and Lewis sold the route at a profit. In his teenage years, Lewis attended the acclaimed Dunbar High School and became a well-respected athlete in football and baseball. Despite his stardom, Lewis was inclined to work full-time at a country club night and day with determination.
I know that what I’d like is to be the richest black man in America.
Reginal F. Lewis
Due to his athletic history, Lewis earned a football scholarship at the historically Black Virginia State University in 1961. However, his athletic career was cut short when his leg got injured, so Lewis focused on education and work, where he worked as a sales assistant for a photographer. In 1965, there was a new summer program for legal studies funded by the Rockefeller Foundation. His biography stated that Lewis had excelled in the program so much that he was the first and only person to be invited to attend Harvard Law School in the 148 years of Havard’s history…essentially, he was already admitted before applying.
The Law Prevails
Reginald F. Lewis in his lawyering years (Source: Thirteen PBS)
To be a good lawyer, one must study HARD.
Reginald F. Lewis to himself
After Lewis graduated from Harvard Law School in 1968, he was offered a position by a prestigious New York law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP where he practiced corporate law. During his tenure, Lewis helped numerous minority-owned establishments in securing their overdue investments and advised major corporations like General Foods and Equitable Life (currently AXA). Additionally, Lewis was also a counselor for the Commission for Racial Justice and served the Wilmington Ten, a group of wrongfully convicted African American activists. According to SFGate, Lewis was regarded as one of the best business lawyers in New York, especially for black-owned businesses. In the same year, Lewis married Loida Nicolas, an attorney from the Philippines.
After two years of working in the firm, Lewis and a few colleagues resigned to start their firm, Wallace, Murphy, Thorpe, and Lewis; it was the first African American law firm on Wall Street. However, in 1983, Lewis decided to “do the deals himself” and founded a venture capital firm, TLC Group, L.P. According to Loida, his wife, Lewis failed his first three ventures, but he learned from those mishaps and kept pushing harder nonetheless. His first successful venture was the acquisition of McCall Pattern Company, a struggling fashion company, at $22.5 million in 1983. With Lewis’ entrepreneurship and leadership skills, he led the company to have the two most profitable years in its 113-year history, ultimately saving the company. After revitalizing the corporation, he sold it for a whopping $90 million.
Power Moves
Beatrice Foods was very well-renowned for its reach throughout the world. (Source: Flickr)
I have a rule: I never talk about a deal until it’s done.
Reginald F. Lewis
With his mysterious two-man team, Lewis managed to outbid Citicorp, one of the most influential multinational investment banks in America, in the acquisition of Beatrice Foods for $895 million in 1987. Beatrice was a major American food processing company responsible for 64 companies in 31 different countries; the buyout was a massive feat done by the TLC Group. It was considered one of the largest leveraged buyouts of international companies in American history during the era.
As the CEO and chairman of TLC Beatrice International, Lewis’ potential shined most during his tenure, with numerous strategies, marketing, and financial techniques at play. Beatrice’s performance swiftly improved with its debt paid, rising value, and skyrocketing sales. In 1992, Beatrice’s reached approximately $1.8 billion in annual sales, becoming the first Black-owned company to attain a billion dollars in annual sales.
Philanthropy and Death
The International Law Center was renamed the Reginald F. Lewis Law Center to commemorate his achievements and donations. (Source: Harvard Official Website)
had the work ethic, the skills, and the know-how. Beyond that, he had the temperament, the self-assurance, and the confidence that he belonged there. Being the first of anything requires a certain mindset. Reginald Lewis had it.
Barack Obama
While Lewis was often hailed as a successful businessman who inspired millions, he was also known for his philanthropic side. According to Michael Paul Williams, a Times-Dispatch staffer, Lewis was fully aware of the White-dominant environment of American entrepreneurship, which discourages future POCs from becoming successful moguls. While Lewis was an intense and demanding man, he was very empathic, sensitive, and tender toward others, according to his wife Loida. Gerald Moriba, the executive producer for Reginald Lewis’ documentary, stated, “He opened doors and created hope where it didn’t necessarily exist. That is his legacy.”
In 1987, Lewis founded the Reginald F. Lewis Foundation, which donated $10 million in grants to various non-profit organizations, according to BlackPast. These organizations provide aspiring students of any race with scholarships, fellowships, and faculty sabbaticals. Lewis also funded Howard University with $1 million in the same year and Harvard Law School with $3 million in 1992, which was the largest donation Harvard has received in its history. Subsequently, Harvard named a building after him. Additionally, his organization also financially supported the construction of the Reginald F. Lewis Museum of Maryland African American History & Culture in 2002.
Due to the stressful and demanding nature of his work, Lewis was diagnosed with an inoperable brain tumor. Six days after his diagnosis, he passed away when he was 50 from brain cancer on January 19, 1993. The news of his diagnosis and death greatly shocked his family, coworkers, shareholders, and others. Loida and her two daughters, Leslie and Christina, continued the corporation and charity foundation, with TLC Beatrice being reduced to a family-run business. On the other hand, the Reginald F. Lewis Foundation expanded to provide aid for people of all paths of life, such as the All-Star Code Program, which trained underrepresented children to code during the summer free of charge.
Lasting Legacy
Lewis’s life is filled with grit, passion, and leadership, which led to his success in business, with Forbes describing him as the ‘Jackie Robinson of Wall Street.’ Despite all of his success, he found happiness with his family and friends and by giving back to his community. Many have credited him with changing how the public views Black people, especially for future businessmen and owners who are inspired by his success. In the end, many agreed that Lewis did make his dream come true.
Keep going. To build a better society in America. To be a compassionate America… Keep going, no matter what.
Reginald F. Lewis [...]
December 11, 2023Author / Business / Case Studies / UncategorizedSince the advent of typewriters and printing, virtually everyone has made typos in their work, frowned upon in academic and professional settings. Many simply retype the entire page or type over the error, but the former is simply tedious, and the latter is considered unprofessional. Using an eraser will also only smudge the ink across the paper, ruining the entire page. These are all tribulations faced by office workers before the invention of word processing software. One day, an exasperated secretary decided that she had had enough and decided to do something about this inconvenience, and thus, Liquid Paper was born.
Correction liquid allowed workers to bypass tedious reworks with a dabble, which is why Liquid Paper was so successful. Many corporations have been trying to reinvent how people fix their errors, with varying levels of success. In the 21st century, with word processing programs taking the world by storm, companies have to get creative on how they adapt this invention in an ever-changing market.
“I invented Liquid Paper because I wanted to make a better place to work.”Bette Nesmith Graham
A Secretary’s Frustration
Bette Nesmith Graham was the owner of the world’s first correction fluid brand, Liquid Paper. (Source: Saint Mary’s College Adelaide)
After she and her husband got divorced, Bette Nesmith Graham was left on her own to raise her child, Micheal Nesmith. According to Infinite Tuesday: An Autobiographical Riff, Micheal’s autobiography, he stated that financial troubles would cause Graham to frequently “burst into tears of panic.” Fortunately, she was able to secure a position at Texas Bank and Trust as a secretary when she was 30, and she was able to rise through the ranks quickly.
During her employment, typewriters were becoming commonplace in workplace environments as they would increase the efficiency and productivity of employees by theory. While many secretaries, including Graham, were excited to use them for the first time, they soon learned some hard truths. Firstly, the sensitivity of the typewriters’ keypads is high, resulting in more typographical errors. Secondly, utilizing a rubber will only smudge the ink around the paper, ruining it.
Frustrated, Graham was finding solutions to fix typos without discarding an entire page. Before her secretary career, she was an avid painter. According to the Hustle, she took the artists’ approach to the issue: painting over the error.
Graham filled a little nail polish bottle with homemade fast-acting tempera paint which she brought to work every day to correct mistakes. It worked like a charm. Despite the success, Graham did not initially trademark her product, named Mistake Out, as she needed more funds to do so; moreover, she began a little business catering to fellow secretaries in secret from her employer in 1956. Eventually, Graham managed to secure a deal with wholesalers to sell Mistake Out and started hiring her first workers. Four years after Mistake Out’s debut, Graham made an accident that revealed her secret side hustle, resulting in her dismissal according to CNBC; it only gave Graham more motivation to perfect her concoction, which was officially trademarked as Liquid Paper in 1958 as we know it today.
“I think anyone who is making progress faces fear… overcoming fear is all there is to success. You have to face fears and doubts constantly. You keep doing it over and over.”
Bette Nesmith Graham
Erasing out Problems
Advertisements of different variations of Liquid Paper (Source: Pinterest & Iktva Forum)
After the success of Liquid Paper, many businesses found an opportunity to assert themselves in the lucrative market. For example, Wite-Out is the second most popular brand in the United States; it was used in commerce in 1966 and registered in 1974. While not as successful as the pioneer, it maintained healthy profits by adapting the formula to have faster drying times and be applicable to different mediums, such as copy or colored paper. Furthermore, as customers used correction liquids for long periods, some of the liquid began thickening, sometimes even solidifying. To solve the issue, Wite-Out manufactured bottles of thinner to liquify them.
The 80s marked a major change in manufacturing and product standards. Original recipes of correction liquid often contain inhalants, namely 1,1,1-Trichloroethane which is a thinner and ozone depleter. It was frequently abused recreationally. According to Sciencing, there are concerns over the safety of correction liquids as the thinner is linked to cancer cases. To comply with new regulations and demands, many companies, including Wite-Out, came up with new organic formulas to substitute for toxic ones.
Staying on top of the correction liquid is a hard task, with numerous competitors at every corner. Many companies, such as Tipp-Ex (a popular correction fluid brand in Europe), have changed the brush to be a form applicator so that users have more precision and comfort. According to Medium, Tipp-Ex has expanded the brand beyond correction liquid as it has manufactured correction tape for typewriters, which cuts out the risk of toxication and time to dry.
Messing Up, Matching Up
Correction tapes are becoming a norm in the modern world due to their simplicity. (Source: Oh Happy Fry)
According to the Computer History Museum, the 80s saw a crucial change in computing technology as personal computers became more accessible and useful to the common man. Offices began introducing computers to employees for the sake of efficiency and automation, and paper-based records began to phase out. The correction liquid industry faced lower sales as a result.
Correction liquid brands must adapt to the modernizing market as people, mainly office workers, move on from using correction fluids. However, there is still a demand for it, namely from students, writers, transcriptionists, and even artists.
To keep up with these demands, a Japanese stationery company began manufacturing correction tape in 1989 according to Tombrow. The correction tape allows users to handle the device precisely and cleanly without drying or exposure to toxic chemicals. The product spread nationwide and soon globally. Furthermore, companies, such as Pentel, released correction pens for artistic mediums, such as oil and water-based ink.
In Closing,
In conclusion, the journey of Liquid Paper from a simple, homemade solution to a global commodity is a testament to innovation, perseverance, and adaptability. Bette Nesmith Graham’s invention, born out of necessity and frustration, revolutionized the way mistakes were corrected in written documents, offering a quick and efficient solution to a common problem. Her story is not just about the creation of a product but also a narrative of overcoming adversity, from her struggles as a single mother to facing the challenges of a male-dominated business world.
Liquid Paper’s evolution mirrors the broader shifts in technology and societal needs. As the world moved from typewriters to computers, the demand for correction fluids like Liquid Paper and its competitors such as Wite-Out and Tipp-Ex evolved. These brands adapted by diversifying their product lines, improving their formulas, and addressing environmental and health concerns, demonstrating the importance of innovation in sustaining business relevance.
The transformation of the correction fluid market also underscores the impact of technological advancements on consumer products. The shift from manual to digital typing reduced the need for traditional correction fluids, leading to the development of new products like correction tapes and pens. This shift reflects a broader trend in which industries must continually adapt to changing technologies and consumer preferences.
Bette Nesmith Graham’s legacy, therefore, extends beyond the invention of Liquid Paper. It is a story of resilience, entrepreneurial spirit, and the continuous evolution of products to meet the changing needs of society. As technology and consumer habits evolve, the journey of Liquid Paper serves as a reminder of the enduring importance of innovation and adaptability in the business world. [...]
November 28, 2023AuthorSmartphones have become an essential part of modern-day life during the 21st century. Since the invention of IBM Simon, the first mobile phone, in 1992, many technological companies have been pumping out model after model. A model that becomes a viral sensation will guarantee a company’s success, while the lack of it will leave others in their shadow. Despite the efforts of many establishments, the Nokia Corporation outshined others with their creation: Nokia 3310.
Many praised the Nokia 3310 as the icon of the end of the 1990s, during the genesis of the cell phone. Its durability, affordability, and functionalities resulted in its massive popularity and sales, pioneering the smartphone market and the design of phones until the next decade. Despite more intricate cell phones being introduced into the market in the 2010s, the Nokia company revealed the revised Nokia 3310; its popularity skyrocketed overnight as nostalgia and memes spurt out.
The components of the original Nokia 3310 (Source: Wikipedia)
According to the British Museum, prices for telephone calls and purchase costs were heavily lowered as technology advanced and cellular companies competed.
Many consumers, especially teenagers, desired more affordable methods of communication, so there was a massive demand for economical phones on the market. The market price of a Nokia 3310 was approximately £122.99, which is around $154, according to Mobile Industry Review. When compared to other brands, the Nokia 3310 was cheap.
Nokia Corporation, a Finnish telecommunication technology company, was one of the major cell phone manufacturers at the end of the 20th century. According to Slate, Motorola and Ericsson, also major cell phone producers in Finland, were Nokia’s main competitors, which harmed the company’s sales. However, Nokia’s recent products, such as the Nokia 3210 and 5110, fended off competition with more advanced technology.
Recognizing a huge demand for cost-effective cell phones, Nokia decided to make a new model based on the moderately successful Nokia 3210. The design team emphasized the functionalities and ergonomics of the phone, as consumers will be using their devices for long periods of time. Battery life is also an aspect that the Nokia development team addressed, as consumers do not want to recharge their phones, especially during the day. Moreover, the materials used for the phone are durable, yet affordable to highlight its viability.
Not much is known about the design and production of the Nokia 3310, but the Nokia 3310 went public on the 1st of September, 2000, according to TechRadar.
The Indestructible
Table of Contents
The IndestructibleThe New Legend Rises“Innovation needs to be part of your culture. Consumers are transforming faster than we are, and if we don’t catch up, we’re in trouble.” — Ian Schafer
(Source: Emilie Reynaud on X)
After the release of the Nokia 3310, many regular Nokia users were amazed by the design and functionalities of the model. The simplistic interface and round casing made the phone appealing to many users. According to Vice, Nokia had projected that 20 million units would be sold, however in actuality, 126 million were sold. This makes the Nokia 3310 one of the best-selling cell phones during the 2000s.
During the 2000s era, SMS (short message service) was one of the most common ways of communication due to low costs, easiness, and widespreadness. However, the system limited a selected amount of characters in a post, often requiring a user to send many messages to get the context across. To resolve this issue, the Nokia 3310 contained a new ‘Chat’ function which allowed longer messages (459 characters).
Additionally, many utilities were uncommon in cell phones, such as a calculator, network monitor, timer, or even a task reminder. Customization was also present in this model, allowing users to modify their wallpaper, case, or ringtone.
A Nokia 3310 contains four games: Pairs II, Space Impact, Bantumi, and Snake II. Many mobile games during the era were rustic and boring, yet Snake II proved to be one of the most recognizable games of all time. Due to its simplistic and addictive nature, this game had a huge player base, resulting in increases in sales of the Nokia 3310.
All of these features made the Nokia 3310an icon of the early 2000s as many purchased it due to the skyrocketing trend and affordable price. As other phone companies released more refined and sleeker models, especially the first iPhone, Nokia discontinued the production of the Nokia 3310 in 2005 to focus on other ventures, according to Techpoint Africa.
Despite this, the Nokia 3310 remained in many users’ nostalgia due to its impact on many cultures. It cemented its legacy in many pieces of media, such as movies, television shows, and literature.
The New Legend Rises
The new Nokia 3310 (left) next to the old model (right) (Source: Medium)
After 12 years of discontinued production, Nokia, now known as HMD Global announced a digitalized rendition of the Nokia 3310 at the Mobile World Congress (MWC) in 2017, according to CNET. The new market price of the updated Nokia 3310 in 2017 is £35, which is even cheaper than the old version.
The up-to-date Nokia 3310 has almost the same physical designs as the original one, except for the colored 2-megapixel screen, camera, expandable storage, and sleeker hardware that somehow improved the durability of the phone. The software is updated to fit a new generation of users, improving the function quality and including support for 2G signals. While many criticized the phone for not including better networks, such as 3G or 4G, Nokia soon released newer models that could handle new types of networks.
The new Nokia 3310 received mixed reviews. While some appreciated its throwback design and the inclusion of many features, especially the Snake game, others disliked its limitations compared to modern smartphones due to the lack of sophisticated functions. The phone’s appeal was largely based on its nostalgia factor and its positioning as a secondary, backup phone rather than a primary device. However, for some, the phone allowed many to escape the bustling World Wide Web…often difficult in the modern world.
By David Jay
“Innovation needs to be part of your culture. Consumers are transforming faster than we are, and if we don’t catch up, we’re in trouble.”
— Ian Schafer [...]
October 30, 2023Author / Business / Case Studies / TechnologyExamples of ReCAPTCHA prompts to deter bots (Source: NopeCHA)
The Internet has been subjected to many kinds of attacks from malicious figures all across the World Wide Web since its creation. This is because the Internet provides valuable data, anonymity, and exploitable elements that allow malicious figures to rampage all over cyberspace. As a consequence, cybercrimes, especially those involving bots, were rampant. However, Google’s development of CAPTCHA, otherwise known as “Completely Automated Public Turing Test to tell Computers and Humans Apart,” allows websites to improve their security.
Despite Google’s attempts to deter bots, newer autonomous programs became more sophisticated, weakening CAPTCHA’s defenses. Furthermore, online users often consider CAPTCHA as “annoying” due to its puzzling nature, and it is not supported for the disabled. To solve this problem, Google conceived a new version of the anti-botting measure in 2020. It is called ReCAPTCHA.
What is ReCAPTCHA?
Newer renditions of ReCAPTCHA prompt (Source: Google)
According to Google, ReCAPTCHA is an “advanced risk analysis machine” that prevents malicious software from abusing websites. The system will employ methods that restrict bot access, preventing any exploitation or data leakage. Furthermore, the system “learns” from each user and bot interaction to improve its operations in later accesses.
ReCAPTCHA is mainly used to protect against scraping, fraudulent payments, account takeovers, fake accounts, misinformation, and money laundering.
Web developers need to choose the right system for many reasons, mainly to deter abusive bots and make the system less intrusive to the users’ experience. Therefore, webmasters should select the machine wisely depending on what kind of website they are building. According to DataDome, there are two remaining versions of ReCAPTCHA developed by Google, including V2 and V3.
V2 requires the user to tick a checkbox or complete an image or audio recognition test to access the site. Since the majority of bots cannot decipher puzzles, only human users can enter the site. While this system requires users to solve a task which can be inconvenient, it does not require the web administrator to constantly monitor their activities and is consistent in quality. However, hackers have been attempting to develop new software to complete the puzzle, so choosing this system can be outdated.
On the other hand, V3 involves the system passively monitoring the users’ activity by using a scoring system that determines who is a bot or a human. The systems’ quality can be further improved by the web administrators’ interactions with the user (e.g. friend requests, chat boxes, etc.) The method is very effective in detecting bots with the algorithm, but webmasters must be constantly on duty to ensure safety.
How Does ReCAPTCHA Impact the Economy?
(Source: CNBC)
Many websites require a substantial amount of security and maintenance as cyberattacks become more frequent since the 2010s when cyber crimes were becoming rampant. According to Crowdstrike, some of the most common types of attacks are malware, DDOS, phishing, and spoofing which can be conducted by malicious bots. To subdue the rate, Google released the ReCAPTCHA program to the public to curb the issue by preventing bots from operating. By employing the system in a website, the website can deter most of the attacks performed by bots, preventing damage to the site’s integrity and reputation.
The site’s security is considered one of the most important aspects of web design in the modern era. E-commerce websites such as Amazon, eBay, or Etsy, prioritize cybersecurity since buyers and sellers are required to provide confidential information (e.g. banking details) for the site to function smoothly. Should an attack be successful, the site will lose a proportion of its customer base due to the decrease in trust, resulting in the loss of revenue. Investors who are the backbone of some companies are likely to pull out if there is a cyberattack to prevent monetary loss, which can further damage the company’s value and funds. Furthermore, the addition of ReCAPTCHA makes users feel more secure while on the site.
(Source: CNBC)
On the contrary, customers are also bothered by frequent security checks which end with them abandoning their activities. According to Forbes, this is because the machine relies on behavioral analysis of bots and human users with each puzzle completed by a bot will make future ones more challenging, which can result in customers leaving the site to look elsewhere. With lower sales and traffic, investors and advertisers are less willing to invest in the website, resulting in decreased revenue.
In the end, ReCAPTCHA is a two-edged sword. Without it, websites are completely compromised during cyberattacks; but with it, clients are unlikely to use the website at all.
A War Between Robots
ReCAPTCHA’s evolution since 2007 (Source: Google Cloud Blog)
As a consequence of ReCAPTCHA development, many hackers have been finding ways to improve the bots’ intelligence in puzzle-solving. This is because website hacking is still a profitable, automatable, and less risky venture for malicious figures. Furthermore, improved malicious bots net higher profits than ordinary outdated bots. Therefore, many hackers are still motivated to update their automated accounts’ intelligence.
Understandably, Google and other web security developers have been fighting off these attempts by improving the algorithm to make puzzle harders, suspect accounts with certain behaviors, and understand the behavior of human and robot users. However, their improvements resulted in more human users failing these puzzles while robots can still solve them. According to the Baymard Institute, between 8-29% of human users failed the CAPTCHA test in 2018.
On the contrary, the Verge revealed that the reason why ReCAPTCHA became harder to solve is not that bots become smarter, but human users are simply unable to solve the problems. The basis is that as puzzles become harder, the algorithm understands the behavior patterns of users and creates the puzzles based on what they have not considered, for example, hidden objects, signs in foreign languages, and unusual items. As a result, human users are confused by the prompts and find sites with lower security.
By David Jay [...]
October 9, 2023AuthorTelemedicine has become a vital trend within the medical industry. (Source: Forbes)
During the COVID-19 epidemic, many medical establishments, namely hospitals, were overwhelmed with patients suffering from COVID-19. People were left for dead because of the lack of capacity. Professionals were scrambling to find solutions to free more beds and reduce the number of patients recovering in the establishment, and so came telemedicine.
Tracing its origins back to the 50s, telemedicine has proven very beneficial to the medical industry in curbing the number of admitted patients and reducing staff’s workload. Despite its potential, telemedicine fizzled out during the early 20th century due to the high costs of running telephone services, but its popularity resumed in the 21st century when the internet became mainstream. Its reintroduction has caused many experts to realize its full potential and how it can be applied to boost efficiency, reduce expenses, and increase the quality of service.
What is Telemedicine?
Table of Contents
What is Telemedicine?BenefitsImpact on the Medical IndustryThe Future of Telemedicine
According to Medley Med, telemedicine is a digital platform for medical businesses and patient care, telemedicine simply uses technology to improve healthcare quality and accessibility. Since it relies on digital technologies, patients from areas without a healthcare infrastructure can benefit from telemedicine. In addition, telemedicine establishments can host their services on two-way communication services, such as websites, applications, or telephone calls. Three main types of telemedicine are asynchronous, remote surveillance, and real-time interactive services.
Asynchronous telemedicine, more commonly referred to as “telemedicine with a store-and-forward capability,” involves the service receiving necessary information (e.g., symptoms, lab reports, or X-ray scans) which will be sent to medical professionals located elsewhere. Then, the professionals will send the report back to the service which will be forwarded to the patients. All of the transmission of private information will be done securely under HIPPA-complaint systems.
Remote surveillance is a service that allows patients to monitor their health by using technologies to monitor and record their vital signs. This type of service is essential to those with chronic illnesses, such as asthma, diabetes, or cardiovascular diseases, and to those who are at risk of getting one; they are essential to maintaining their health and well-being.
Lastly, interactive services allow patients to connect to doctors and consultants in a private video call for diagnosis. This allows patients to directly express their concerns regarding their conditions, and the doctors would be able to monitor and diagnose them from afar. Furthermore, the service is mainly done through HIPPA-complaint services to ensure patients’ confidentiality.
According to the Institute of Health, Washington D.C., there are supporting services to telemedicine as well, such as teleradiology, telepathology, and telepharmacy.
Benefits
During the COVID-19 epidemic, many countries, including Thailand, have utilized telemedicine to aid in patients’ recovery. (Source: National Health Security Office)
The multitude of advantages offered by telemedicine have shaped the medical industry today. According to Brian William Hasslefeld, a practitioner at Johns Hopkins Hospital, the ever-growing technology allowed further improvement in the quality of service. The following contains the benefits of telemedicine:
Convenience and Comfort: Patients are not required to travel to the doctor’s office, which can take up to hours or days of their time; mostly, the time is spent commuting and waiting. Instead, telemedicine allows patients to receive consultations and diagnoses from the comfort of their homes. Telemedicine allows patients to easily schedule their consultation as it requires less time. Furthermore, patients with immobility can comfortably interact with practitioners.
Infection Control: Telemedicine reduced the risk of infection by making physical contact and traveling unnecessary. Patients with contagious diseases can safely receive advice from doctors in a safe environment without infecting others.
Better Evaluation: Despite not going to the doctor’s office, practitioners can diagnose patients effectively as they can directly observe patients in their element. For example, doctors can understand the living conditions and behavior of their patients, which can aid them in diagnosing.
Familial Contact: Family members can join in sessions with patients to help provide necessary information, take notes, or ask questions to doctors. In addition, telemedicine allows family members to substitute patients if they are unavailable.
Chronic Condition Management: Patients can monitor their conditions, especially ones that can affect their livelihood and well-being, such as cardiovascular diseases. Remote surveillance is suitable for this role. Patients can also receive more consultations as telemedicine reduces the time wasted to attend a meeting.
Reduced Costs: The cost for each telemedicine appointment is significantly lower as it lowers or cuts out commuting costs, reservation costs, and lost time from work. Additionally, the medical establishment benefits from reduced patient-care costs.
Accessibility: Telemedicine allows patients to connect to appointments via phone calls or the Internet; therefore, patients who have limited access to medical establishments will be able to easily consult with professionals.
Emergency and Disaster Response: The accessibility of telemedicine allows patients to make emergency consultations should an emergency arise. Whereas traditional healthcare requires facilities to function, telemedicine can provide care during dire conditions.
Impact on the Medical Industry
Teladoc is considered to be one of the most successful telemedical businesses in the US. (Source: Yahoo Finance)
Ever since the 2000s, the medical industry realized the potential of telemedicine. Medical establishments can provide better care to patients, reduce operational costs, and provide more access to patients away from facilities. Furthermore, telemedicine allows for more room for better chronic disease management and mental health services due to its versatility. As a result, telemedicine has bloomed ever since the 21st century as the Internet became widespread.
During the COVID-19 outbreak in the 2020s, telemedicine has proved to be a viable alternative to physical consultations. Furthermore, it is considered risky to venture and social distancing rules are in place. Seeing a business opportunity, medical businesses, specifically telemedicine, and telepharmacy, expanded to customers affected by the virus. Pharmacies can receive orders from customers via the Internet, and telemedicine employees receive both orders and appointment scheduling. In return, the industry bloomed.
The Future of Telemedicine
Tyto Care has been developing new telemedicine devices to allow doctors to monitor their patients’ conditions remotely. (Source: CNN)
The future of telemedicine will revolve around innovation, growth, and integration with traditional healthcare. As technology progresses throughout the 21st century, telemedicine is bound to improve its quality, accessibility, and most importantly, its options.
The integration of telemedicine and traditional care is no surprise. With paper-based documentation becoming obsolete, many medical establishments have turned to electronic health records to increase accessibility and portability. Additionally, paper-based records can be damaged and costly to produce, and they can be misinterpreted by practitioners due to their handwriting, resulting in medical errors. Therefore, there can be an integration between technology and conventional healthcare.
Biomedical engineering companies will jump on the trend and incorporate telemedicine with advanced technology, such as virtual reality (VR), artificial intelligence (AI), biosensors that monitor patients’ health, or applications. According to Pillips, they are already in action in screening, monitoring, and transferring data. Furthermore, new specialties of telemedicine will originate from these innovations, namely mental healthcare, dermatology, and dentistry.
The rise in telemedicine also came with a new wave of regulations and standards set by governments. Many medical establishments must follow the guidelines provided, further improving the quality of service. The new set of regulations will also improve the electronic medical records’ privacy and transparency.
By David Jay [...]
September 8, 2023Authorbitcoin-paper-satoshiDownload
The Enigma of Satoshi Nakamoto: The Unsolved Mystery of Bitcoin’s Creator
Table of Contents
The Enigma of Satoshi Nakamoto: The Unsolved Mystery of Bitcoin’s CreatorA Mystery Wrapped in Cryptographic CodeWhy The Secrecy?Failed Attempts to Unmask NakamotoImplications for the Crypto CommunityA Philosophical PerspectiveConclusion
In a world increasingly driven by technology and digital transformation, mysteries often unfold on our screens rather than in dark alleys. Among the most intriguing of these digital enigmas is the identity of Satoshi Nakamoto, the anonymous figure behind Bitcoin, the world’s first decentralized cryptocurrency.
A Mystery Wrapped in Cryptographic Code
The name “Satoshi Nakamoto” first surfaced in a white paper published in 2008, detailing how Bitcoin would work. The paper introduced a groundbreaking concept: a decentralized, peer-to-peer financial system that could operate without a central authority. This revolutionary idea changed the way we look at money, spawning a new era of fintech innovations. However, despite the radical transparency of blockchain technology, the identity of its creator remains elusive.
Why The Secrecy?
Given my diverse interests in technology, emotion, and psychology, I can’t help but ponder why Nakamoto chose anonymity. Was it to protect personal privacy in an era of increased surveillance? Or perhaps it was an intentional move to let Bitcoin stand on its own merits, uninfluenced by the persona of its creator? Theories abound, but none provide a definitive answer. The very system designed for transparency also serves as the perfect cloak for its creator.
Failed Attempts to Unmask Nakamoto
Journalists, coders, and even government agencies have tried to uncover Nakamoto’s identity, employing techniques ranging from linguistic analysis to cryptographic tracing. Despite their sophisticated methods and relentless pursuit, no one has successfully cracked this code. It seems that the creator of a system designed for transparency knew how to remain impenetrable.
Implications for the Crypto Community
Nakamoto’s anonymity brings both risks and benefits. On one hand, it fortifies the decentralized nature of Bitcoin. The absence of a known leader makes it difficult for authorities to undermine or control the cryptocurrency. On the other hand, not knowing the creator’s identity has led to wild speculations, conspiracy theories, and in some cases, legal difficulties for the crypto community.
A Philosophical Perspective
As someone deeply interested in philosophy and the beautiful complexities of human behavior, I find Nakamoto’s anonymity to be an allegory for the digital age. It reflects our collective struggle for privacy and autonomy in a hyper-connected world. The mystery of Satoshi Nakamoto serves as a paradoxical reminder that even in an age of digital transparency, anonymity can still exist. This duality raises crucial questions about identity and privacy in modern society—questions that extend far beyond the world of cryptocurrency.
Conclusion
The enigma of Satoshi Nakamoto is far more than just an unsolved mystery; it’s a complex narrative that delves into issues of privacy, authority, and human behavior in the digital age. As someone who wears many hats—ranging from technology enthusiast to psychological inquirer—I find the mystery to be a rich ground for exploration, both intellectually and emotionally. Whether or not Nakamoto’s identity will ever be revealed is unknown, but the questions it raises will continue to reverberate through society for years to come.
Live a Life. Be Happy. Improve As You Go.
Paul Park [...]
September 7, 2023AuthorIn an age inundated with quick-fix articles and superficial advice on professionalism, it’s crucial to cut through the noise and get to the root of what it means to excel in your career and personal life.
And what better way to do this than by turning to some of the most insightful and groundbreaking articles ever published on Alabrava?
Introduction
Table of Contents
IntroductionKey TakeawaysHarnessing Your PotentialThe Economic Landscape and Your RoleEntrepreneurial IngenuityProfessional Etiquette in a Digital WorldEmpathy and Emotional IntelligenceInnovation and the FutureThe Ethics of ProfessionalismA Global PerspectiveSocial ResponsibilityThe Fine Balance of Work and LifeUnderstanding Economics and Business ModelsThe Psychology of Consumer BehaviorSustainability in BusinessEntrepreneurial SpiritThe Future of Tech and DataThe Importance of Mental HealthNavigating ControversiesInvesting in Real Estate SpaceLessons from Art and HistoryThe Future of LearningExploring the Social ContractScarcity in HealthcareConclusion
In today’s fast-paced, ever-evolving professional landscape, mere competence is not enough to set you apart. True professionalism is an amalgamation of qualities that go beyond the boundaries of a cubicle or office—qualities like emotional intelligence, adaptability, and a global perspective. For those aspiring to master such well-rounded professionalism, Alabrava provides an unparalleled compendium of articles that dissect and discuss the multiple facets of becoming an exemplary modern professional. From the intricacies of understanding economic trends to the art of entrepreneurial ingenuity, this treasure trove of insights arms you with the necessary tools to rise to the pinnacle of your profession.
Key Takeaways
Harnessing your potential, understanding the economic landscape, and entrepreneurial ingenuity are just a few of the concepts that Alabrava dives into. The platform also emphasizes the importance of ethics, offers a global perspective, and underscores social responsibility. Balancing work and life, understanding consumer behavior, and grasping sustainability in business are also explored. Other captivating reads delve into the future of tech, mental health, crisis management, and even the possibilities of real estate in space. Each article, in essence, serves as a building block for a holistic professional.
Harnessing Your Potential: Understand the various forms of intelligence and how to utilize them for personal and professional growth.
The Economic Landscape and Your Role: Stay informed about macroeconomic factors that can influence your career.
Entrepreneurial Ingenuity: Gain insights into the essence of entrepreneurial leadership.
Professional Etiquette in a Digital World: Learn the importance of maintaining professionalism in remote work and online interactions.
Empathy and Emotional Intelligence: Recognize the value of emotional intelligence in professional settings.
Innovation and the Future: Prepare for the evolving landscape driven by technological advancements and consumer behavior shifts.
Ethics of Professionalism: Reflect on your ethical compass and its alignment with societal norms.
A Global Perspective: Be aware of global economic shifts to become a truly global professional.
Social Responsibility: Understand the broader impact of your actions in the professional sphere.
Work-Life Balance: Learn to harmonize your professional responsibilities with personal well-being.
Harnessing Your Potential
When you read “7 Signs You’re Incredibly Intelligent,” you’re not just skimming through standard indicators of intelligence. You’re opening a window into understanding how intelligence manifests in various forms and how it can be harnessed for both personal and professional growth.
The Economic Landscape and Your Role
Understanding economic trends is key to professionalism. Articles like “Looking at the Economy from Recessions” and “How Does Climate Change Affect the Economy?” offer a comprehensive view of how macroeconomic factors impact individual careers. The pieces challenge you to be aware of the larger forces at play, fostering a holistic understanding of your role in the professional world.
Entrepreneurial Ingenuity
If you’re aspiring to build a billion-dollar company, don’t miss “How to Build a Billion-Dollar Company: Yvon Chouinard & Patagonia.” This article delves into the essence of entrepreneurial ingenuity and leadership, offering key insights from successful entrepreneurs. Similarly, “The Art of Building Startups: Lessons from Silicon Valley” provides practical guidance on navigating the unpredictable terrain of startups.
Professional Etiquette in a Digital World
In the age of remote work and digital communication, the line between personal and professional life is blurring. Articles like “The Future of Written Content and AI-Driven Ambitions” underscore the importance of maintaining professionalism even in online interactions and remote work settings.
Empathy and Emotional Intelligence
One of the most under-discussed aspects of professionalism is emotional intelligence. The article “Youth Mental Health: Understanding and Support” sheds light on how understanding mental health is critical to nurturing empathetic relationships in the workplace.
Innovation and the Future
The professional landscape is continually evolving, driven by advancements in technology and shifts in consumer behavior. To stay ahead of the curve, articles like “Superconductors, Pandemics, and UFOs: Unraveling the Threads of Modern Discoveries” help you comprehend how innovation impacts industries and offers opportunities for those prepared to adapt.
By immersing yourself in these articles, you’re not just reading—you’re investing in your growth as a modern professional. You’re equipping yourself with knowledge and skills that will serve you well in any scenario, be it the corporate boardroom or the digital landscape of remote work. In an era that demands more than surface-level understanding, Alabrava offers the in-depth insights you need to master professionalism in its truest sense.
The Ethics of Professionalism
Ethics often stand as the bedrock of professionalism, shaping not just how you do your work but why you do it. In the article “Money Over God, Country, and Family in America,” Alabrava delves into the complex layers of value systems that influence professional choices. This piece will challenge you to reflect on your own ethical compass and how it aligns or diverges from societal norms, a valuable exercise for anyone aiming for genuine professionalism.
A Global Perspective
In today’s interconnected world, a myopic view won’t suffice. The piece “China’s Digital Yuan: The Race for Central Bank-Issued Digital Currencies (CBDCs) and the Future of Global Finance” opens up an avenue for understanding how global economic shifts can and will affect individual professions. By extending your view beyond your immediate environment, you’re not just a professional in your field; you become a global professional, prepared for the intricacies of international relations and markets.
Social Responsibility
True professionalism extends beyond your office desk or your Zoom screen. It encompasses a sense of social responsibility and an understanding of the broader impact of your actions. “How and Why Did Terra Luna Crash?” offers a lens into corporate responsibility and the far-reaching effects of business decisions on society at large. Similarly, “The World Will Be Short 18 Million Nurses by 2030” invites professionals to consider career paths that not only satisfy personal ambitions but also fill critical societal gaps.
The Fine Balance of Work and Life
Last but not least, professionalism isn’t solely about your 9-to-5 obligations. It’s also about how you balance your work with your personal life to create a harmonious existence. “Prepping in the Unpredictable Future by a Wizened Survivalist” offers a unique take on the importance of preparedness and adaptability, both in the professional realm and in your personal life.
By deeply engaging with the perspectives and insights offered in these articles from Alabrava, you’re doing more than scrolling through advice; you’re undertaking a rigorous course in professionalism tailored for the complexities of modern life. It’s a journey that goes beyond buzzwords and quick tips, diving into the essence of what it means to navigate the multifaceted landscape of today’s professional world. This comprehensive guide serves as a cornerstone, providing you with the analytical tools, ethical frameworks, and practical wisdom you need to excel.
Understanding Economics and Business Models
The article on “The Economics of Cubesats” gives you a sneak peek into the world of emerging technologies and their economic implications. It’s a must-read for those who aim to stay ahead of the curve, reinforcing the idea that professionals must continually adapt to technological advancements.
The Psychology of Consumer Behavior
Exploring “Branding the Happy Meal: The Influence of McDonald’s Toys on Consumer Behavior,” allows you to delve into the nuances of consumer psychology. Being in tune with the motivations and behaviors of consumers is an essential skill, whether you’re in sales, marketing, or any customer-facing role.
Sustainability in Business
The case study on “How to Build a Billion-Dollar Company: Yvon Chouinard & Patagonia” illustrates how sustainability can be integrated into a business model. Today’s professional must be aware of their social and environmental impact, and this article offers a fantastic blueprint.
Entrepreneurial Spirit
Reading “Melanie Perkins: The Girl Who Started Canva” helps you understand the journey of turning a simple idea into a global enterprise. Entrepreneurial skills are highly beneficial in any role, not just for business owners.
The Future of Tech and Data
The examination of “Regulation of the $257B Data Brokerage Industry: Still in Infancy” is an eye-opener for anyone in the tech industry or roles that rely heavily on data. Understanding regulation is crucial as you navigate the professional world.
The Importance of Mental Health
A focus on “Youth Mental Health: Understanding and Support” brings in the much-needed conversation about well-being. In a truly professional setting, mental health should never be sidelined.
Navigating Controversies
The article “Balenciaga Accused of Promoting Child Sexual Abuse in Controversial Ad Campaigns” serves as a lesson in crisis management, emphasizing the importance of reputation and the potential pitfalls in creative roles.
Investing in Real Estate Space
From “Axiom Space: The Final Frontier for Real Estate,” one can extrapolate the value of innovative thinking in investments, stretching the imagination about what professional opportunities might look like in the future.
Lessons from Art and History
Pablo Picasso & Apple: The Bull Lesson focuses on simplicity and design, reinforcing that these principles are as timeless as they are modern.
The Future of Learning
“Prenda Microschools Raises $20M on 3,000 Students” sheds light on the future of education, a significant read for professionals in every field, as lifelong learning becomes more integrated into our careers.
And this is just the beginning. The variety of topics in these articles not only educates but also enriches your understanding of what professionalism means in the 21st century. Each article serves as a building block, helping to create a well-rounded, deeply informed professional ready to take on the challenges of today’s multifaceted work environment.
Exploring the Social Contract
The article on “Harris Rosen & Tangelo Park” sheds light on philanthropy and community development, which adds depth to the understanding of social responsibility for any professional.
Scarcity in Healthcare
Reading “The World Will Be Short 18 Million Nurses by 2030” offers a lens into the future of healthcare, painting a vivid picture of supply and demand. This is essential knowledge for anyone interested in public health or policy-making.
In the section on Ethics and Governance, “Regulation of the 257B Data Brokerage Industry Still in Infancy” serves as an invaluable guide on ethical and regulatory dimensions of data privacy, particularly for IT professionals, lawyers, and policymakers.
Switching to Cultural Commentaries, the article “Balenciaga Accused of Promoting Child Sexual Abuse in Controversial Ad Campaigns” offers a critical look at the intersection of fashion, ethics, and public sentiment—essential reading for professionals in advertising and public relations.
When it comes to Mental Health Matters, “Youth Mental Health: Understanding and Support” is a comprehensive resource aimed to demystify mental health issues among younger populations, supplementing educational and healthcare practices.
Collectors and Economics brings you “The World of Hot Wheels Collectors”, giving a glimpse into the fascinating realm of collectibles, a subject that could intrigue economists and sociologists.
For those interested in Unconventional Business Success, “How Did Pet Rock Rock the Market?” provides an insightful look at the idiosyncrasies of consumer behavior—highly engaging for business strategists and psychologists.
Moving to Disruptive Forces, “The Tattooing Industry: An Analysis” explores the social norms affecting industry growth, relevant for entrepreneurs and sociologists.
In The Art and Business of Color, “Pantone and the Big Business of Inventing New Colors” unpacks how color is commercialized, making it a captivating read for designers and marketers.
The Luxury of Essentials features “The High-End Water Industry”, an article that delves into how basic needs can transform into luxury markets—a nuanced discussion for those interested in capitalism and consumer behavior.
Under Creative Journeys, “Pablo Picasso & Apple: The Bull Lesson” explores the symbiotic relationship between art and business, beneficial for creatives and business leaders.
Asset Management and Investment brings you “FTX Saga Explained with Monopoly”, simplifying complex financial instruments, and offering insights for aspiring investors and financial analysts.
Finally, in Housing and Social Equity, “Build More Low-to-Middle Income Housing” scrutinizes the housing crisis and its social implications, pertinent for urban planners and social workers.
The inclusion of these direct links enhances the value of this comprehensive list, making it a versatile toolkit for broadening one’s professional and intellectual horizons. Whether you’re into technology, finance, healthcare, or ethics, these articles offer a wealth of knowledge.
Conclusion
In a world where Google can offer millions of answers to a simple query about professionalism, the depth and breadth of the articles on Alabrava stand as a differentiator. These carefully curated pieces provide not just knowledge, but wisdom. They challenge you to examine your work life through different lenses—from the global economy to mental health to even the high-end water industry. By exploring this comprehensive guide, you’re not just skimming through content; you’re undertaking an educational expedition that primes you for real-world challenges and complexities. Alabrava’s rich repertoire lays down a blueprint for achieving the epitome of professionalism in the 21st century, transforming you from a job-holder to a career-builder. Whether you are a seasoned professional or an aspiring entrepreneur, this guide is your roadmap to achieving professionalism in its fullest, most meaningful sense. [...]
August 30, 2023AuthorPizza Hut is one of the most recognizable pizza brands in the world.
In the modern age, the fast food market has dominated the culinary industry due to its speed, convenience, and affordability. According to the Barbeque, over one-third of American adults on any given day enjoy pizza. Recognized by millions across the globe for its iconic shape and flavors, many pizza-making brands have perfected their renditions, ranging from Domino’s, Papa John’s, to Little Caesars; but no one took the slice like Pizza Hut.
Being known for its iconic menus, Pizza Hut has conquered the pizza empire for over three decades. During its reign, the company has pioneered many services within the industry to appeal to the ever-changing demographic. With a little over 19 thousand outlets in 160 countries in 2022, it has proven itself to be a significant player in the economy, with one billion dollars in annual profits. However, its crown was passed onto other brands like Domino’s due to the lack of improvements. Despite this, there is potential that Pizza Hut will make a comeback in the pizza industry with modernized business models.
Baked In A Hut
Table of Contents
Baked In A HutRed Roofs“We about lost control of the operations. Then we figured out that we had to learn how to plan.” Red FlagsRock and A Crusty PlaceThe Potential
The building of the first Pizza Hut outlet in Wichita, Kansas, is how the Carney brothers came up with their company’s name. (Source: Hut Life)
The story of Pizza Hut began in 1958 when a real estate agent approached Dan and Frank Carney with a proposition. The agent with an unrented brick hut convinced the Carnies that a pizzeria on his plot would be ideal. The brothers found the business to be promising, as there was constant demand for inexpensive meals for students, and pizzas were affordable to make. Moreover, the location is within a campus, attracting local customers, and pizza parlors themselves are a rarity. With this in mind, the brothers borrowed $600 (equivalent to more than $6,340 in 2022) from their mother to purchase the hut, equipment, and ingredients.
The name “Pizza Hut” came from how the brothers wanted to focus their business on only pizzas, how the store was in a brick hut, and how the sign only had a place for eight letters. On May 31st, 1958, the brothers founded the first Pizza Hut location within the Wichita State University campus in Wichita, Kansas.
On the first day of their business, the brothers gave away free meals to customers, building their first customer base. Despite the slow incline, the brothers’ business managed to gain popularity because of their special recipes, fresh ingredients, and comfortable atmosphere. As their business grew, the Carnies proceeded to open their first franchise in Topeka, Kansas, in 1959.
Throughout the 1960s, Pizza Hut employed aggressive marketing, a type of advertisement that directly engages with potential clients, to promote their chain. The campaign resulted in 145 more units being established throughout the United States in 1966.
The first Canadian Pizza Hut opened in 1968, followed by the establishment of the International Pizza Hut Franchise Holders Association (IPHFHA), which allowed the acquisition of franchises. However, due to the different accounting systems used by different acquirers, Pizza Hut spent eight months merging all systems as sales plateaued and profits decreased.
Red Roofs
Pizza Hut is iconized for its unique red roof, which was conceptualized in 1969. (Source: Hut Life)
“We about lost control of the operations. Then we figured out that we had to learn how to plan.”
– Frank Karney on the rapid growth of Pizza Hut in 1972
The Carney brothers were concerned about how to fight competitors as their company grew internationally, so they came up with creative ways to be unique. The Carnies contacted Richard D. Burke, a college friend, and architect, to help come up with a building that would make Pizza Hut recognizable. According to Hut Life, an architect who cooperated with Burke stated that the red roof design was “a fusion of common sense, the architectural taste of the 1950s, and a need for the design to be both remarkable and appealing in a variety of locations.”
As the company grew rapidly, Frank Carney stated that old business practices, such as annual reports, were inadequate for the company, so he decided to revise the company’s business model to be sustainable in the future. Frank Karney built the model to prioritize profits and sales over providing adequate financing and growth. Additionally, expansion is a key concern in the emerging market. Karney’s decision also attracted the attention of PepsiCo, Inc.
In 1970, Pizza Hut expanded its operations to Germany and Australia, and there were more than 500 branches within the United States. According to the number of franchises and sales, Pizza Hut became the largest pizza company in 1971. A year later, Pizza Hut gained a listing on the New York Stock Exchange, allowing investors to support the company. The company furthered its acquisitions and expansions in many countries throughout the 1970s.
Advertisements played an important role in establishing Pizza Hut’s public profile and introducing new customers to the chain. According to Reference for Business, expenditures on advertising increased from $942,000 in 1972 to $3.17 million in 1974.
PepsiCo formed a merger with Pizza Hut in 1977 due to its potential to expand outside of the US and its rapid growth. Moreover, sales reached $15 million in the same year. As the fast food industry blossomed in the 1970s, people began to favor the convenience and inexpensiveness of fast food.
Red Flags
Pizza Hut’s “Pan Pizza” is an iconic menu that originated from the 1980s century. (Source: Food & Wine)
The 1980s introduced Pizza Hut to numerous competitors in the fast food market, for example, Domino’s, Little Caesars, and Papa John’s, leading to Pizza Hut’s attempts to raise its public profile.
One of the most notable schemes was the “Pan Pizza.” Delightfully, the pizza was cooked in a pan instead of a tray. The addition to the menu became a sensation among customers due to its crustier texture, lowered greasiness, and thinner crust. Moreover, a Pan Pizza requires under five minutes of preparation, allowing staff to serve customers quickly, especially during rush hours. An extension to the menu was made in 1983 when the “Personal Pan Pizza,” Pan Pizza with customizable toppings, was introduced. A mentionable addition is the “Hand-tossed Traditional Pizza,” originating in 1988.
1986 marked the 5,000th Pizza Hut outlet was established and brought on the debut of the company’s home delivery service. According to Reference for Business, 25% of Pizza Hut’s sales accounted for takeaways and deliveries during the 1990s.
Pizza Hut Express outlet located at Miami International Airport (Source: MIA)
Opposition within the United States heightened as McDonald’s, a major fast food chain, introduced its new product, the McPizza in 1991. Competing with a major chain such as McDonald’s is no easy feat, so Pizza Hut needs to stay relevant by following public demands. Throughout the 1980s and early 1990s, Pizza Hut incorporated other types of dishes, for example, pasta, salads, and desserts to add more variety to their product. Furthermore, as the public health consciousness rose during the mid-90s, Pizza Hut advertised their vegetarian toppings and healthy ingredients to provide a healthy alternative to other brands of pizzas.
The early 1990s also saw a rapid increase in convenience and accessibility across the fast food industry with drive-throughs and delivery services emerging from companies. A strategy that Pizza Hut utilized to increase accessibility, lower operating costs, and be unique is to form Pizza Hut Express. While almost the same in service, Express outlets have a smaller menu, building size, and price, increasing the affordability of pizzas and lowering functioning costs. Express franchises were established in high-traffic areas where rent is expensive (eg. airports, cafeterias, business districts) so that they can serve as much as possible.
December 26th, 1991 marks the end of the Cold War, allowing businesses to return to normalcy as food rationings and restrictions subsided. PepsiCo saw a major opportunity to expand to an international audience, especially in the Eastern Bloc where economic sanctions were in place before its dissolution. Moreover, the economic boom would allow customers to purchase more products, increasing the company’s profit margins. By 1997, Pizza Hut had franchised to 90 countries. However, as the company soared in profits throughout the end of the 20th century, rival companies remained competitive.
Rock and A Crusty Place
Pizza Hut’s Stuffed Crust Pizza was created to increase popularity. (Source: USA Today)
In 1994, Pizza Hut’s attempts to modernize resulted in lower sales as customers did not find certain aspects favorable, causing the company to experience the first decline in profits in the last 15 years. Rival establishments reduce the prices of their products to entice consumers, leeching off Pizza Hut’s gradual downfall.
Roger A. Enrico, the CEO of PepsiCo during the era, devised a strategy to stay on top of the pizza industry: developing new recipes. Pizza Hut’s famous stuffed crust pizza was introduced and heavily promoted in 1995, with success indicated by the 1.4% increase in market shares, 16% increase in market sales, and 40% increase in operating income during 1995. Moreover, Pizza Hut introduced new menus to customers, improved recipes, introduced online delivery, and installed modern ovens, improving the quality and efficiency of a variety of stores during the 2000s. Despite Pizza Hut’s efforts, it started to fall out of the spotlight in the later years due to a variety of factors.
Pizza Hut’s expenditures began offsetting the capital investments in PepsiCo’s other branches. Since PepsiCo has greater assets in the beverage and snack foods division, the company decided to group its restaurant chains and form a daughter company called Tricon Global Restaurants, now known as Yum! Brands.
Competition between pizza companies heightened during the 21st century as customer preferences altered, with consumers prioritizing convenience and affordability. While Pizza Hut is one of the first companies to utilize delivery services, its delivery is inferior to Pizza Hut’s rivals and third-party services, such as Uber. In addition, competitors can accommodate new trends quickly within the fast-food industry, notably healthiness and diversity; Pizza Hut was unable to catch up to them. Artisans and local pizzerias also drained the profits of Pizza Hut as locals preferred homemade products, which often led to franchises canalizing themselves for profits and creating a lose-lose situation.
While Pizza Hut has fully embraced technological changes, its rapid changes have caused the company to lose some customers and profits. Many companies have adopted various technologies to appeal to consumers, such as pinning establishments on Google Maps, modernizing webpages, and applying social media. The global economy also played a part in Pizza Hut’s dethronement, as various recessions caused reduced demand all across the globe, sinking sales and profits.
The Potential
Pizza Hut revealed the e-Pallete, an autonomous delivery vehicle in 2017.
Despite the turmoil, there is still the possibility that Pizza Hut could regain its superiority again. The company continues to address issues and make attempts to renovate the company’s business model and image.
Pizza Hut has been diversifying its menus to resonate with consumers, especially with healthier and vegan options to accommodate health-conscious customers. Moreover, international branches have created their recipes to suit local cuisine as well, for example, Pizza Hut branches in China have the “Durian Pizza’ which is well-received by the locals.
The majority of the establishments are being renovated to have a welcoming atmosphere, better efficiency, and more digital appliances. Furthermore, the delivery services of Pizza Hut were improved to allow deliveries via drones, self-driving vehicles, or third-party services. Sustainability has also become Pizza Hut’s priority, as customers want to do their part to slow down global warming.
Social media has become an essential lifeline for many companies, including fast-food-related businesses, as a way to engage, advertise, and maintain a presence among their customer base. Pizza Hut is no exception, quickly expanding to popular networking platforms such as Twitter, YouTube, or Facebook. [...]
