The Rural Development And Agritourisms

The Rural Development And Agritourisms As per the evidence in the chapter 2, it is clear that tourism is an important sector and it has the ability to contribute for national development of many countries in developed and also in developing world. In this chapter, relationship between agritourism; a form of rural tourism and rural development is going to be studied to understand the level of contribution of agritourism for the rural development using existing literature especially in developing countries. Therefore, this chapter establishes the vital theoretical background for this research. This chapter is consisted of three main sections. In the first section, information related to rural development including definitions, different sectors of rural development, a new paradigm of rural tourism and barriers of rural development in developing countries. The second section provides information related to agritourism such as the concept, definitions, theoretical basis of agritourism, activities of agritourism, factors affecting for successful agritourism, advantages and disadvantages of agritourism, impact of agritourism for local residents, important policies related to agritourism development and current situation and development of agritourism in the world and in Asia. In the last section, relationship between agritourism and rural development has been discussed in detail. 3.1 Concept of rural development Before understand what rural development is, it is important to look at what rural areas are. In general, rural areas are geographical areas that are located outside the towns or cities. Hamlets, villages, towns, and other small settlements are in or surrounded by rural areas. Rural areas are open swath of lands that has few homes or other buildings, and not very many people. In rural areas, population density is lower than urban areas. Still 70 percent of the worlds poor is living in rural areas (World Bank, 2010) and agriculture is the main source of income and employment. Agriculture and forestry represent activities which occupy many fields of land and play a primary role in the managing of the rich natural resources and in the formation of the landscape in the rural regions, where they constitute an essential part of the natural environment and cultural heritage. Wildlife is more frequently found in rural areas. Rural development generally refers to the process of improving the quality of life and economic wellbeing of people living in relatively isolated and sparsely populated rural areas. It aims at the improvement of welfare of rural populations through the sustained growth of the rural economy. As a concept, it connotes overall development of rural areas with a view to improve the quality of life rural people. As a phenomenon, it is the result of various physical, technological, economic, socio-cultural and institutional factors. As a discipline, it is multi-disciplinary in nature representing an intersection of agricultural, social, behavioral and management of sciences (Fotiadis, 2009.). Rural development is not simply an economic proposition; it has social, psychological and cultural dimensions as well. It is a multi-dimensional as well as multi-directional concept. Thus, rural development is a program designed to improve the socio-economic living conditions of the rural poor. It aims at raising their cultural level and reorienting their rich traditions. It seeks to achieve increase rural production and productivity, greater socio-economic equity and a higher standard of living for the rural poor. It is partly ameliorative and partly development-oriented (..). Development is interlinked with motivation, innovation and the active participation of the beneficiaries. Rural development recognizes the importance of improved food supplies and nutrition, as well as the importance of basic services such as health, housing, education and expanded communications, which will go a long way in enhancing the productivity of the rural poor. Moreover, it aims at providing gainful e mployment, so that the rural people too may contribute their mite to the national product. Rural development implies a fuller development of existing resources, including the construction of infrastructure, such as roads and irrigation works, the introduction of new production technology, the revival of traditional arts and crafts, and the creation of new types of institutions and organizations (Desai, 2005). Not like traditional rural development approach that was based on modernization theory, the contemporary rural development is a new rural development approach, representing a policy model that seeks to focus less on the production of primary commodities and more on innovation and diversification (Ploeg et al., 2000). The model claims to encourage more democratic and effective rural development on the basis that different local stakeholders are involved as decision makers in the development process, and that the emergent development outcome is more innovative and integrated as a result. (Macken-Walsh, 2009). 3.1.1 Definitions of Rural Development There is no universally accepted definition of rural development. The term is used in different ways in vastly divergent contexts. Rural development can be defined as the development of regions excluding the urban areas such as the towns and cities. Smaller settlements such as villages, farmsteads, and market towns are normally included within the concept of rural, while most of the land area is expected to be used as agricultural land, forest or in its natural state (Apostolides. 2001?). According to Robert Chambers, rural development is a strategy to enable a specific group of people, poor rural women and men, to gain for themselves, and their children more of what they want and need. It involves helping the poorest among those who seek a livelihood in the rural areas to demand and control more of the benefits of rural development. The group includes small-scale farmers, tenants and the landless. Rural development may be defined as overall development of rural areas to improve the quality of life of rural people. It is an integrated process, which includes social, economical, political and spiritual development of the poorer sections of the society. Social or economic activities or initiatives designed to improve the standard of living in areas far away from large towns or cities. Thus, the term rural development may be used to imply any one of the above-mentioned connotations. The avoid ineffective floundering among the myriad definitions, it can be defined as a process leading to sustainable improvement in the quality of life of rural people, especially the poor 3.1.2 Barriers for rural development In many countries several problems can be identified against the rural development. They act as barriers to reach rural development. Most of them are common to number of countries. Some main barriers prevailing in developing countries can be summarized as follows. Depleting natural resources, resulting in insecurity of food and employment, compelling over majority of the rural population to live in poverty. Pollution of the environment and climate change, causing shortage of clean drinking water and adverse impact on agricultural production. Lack of employment opportunities, forcing the landless and small farmers to migrate to urban areas reducing young labour for the activities of rural areas. Poor access to education, resulting in low literacy and unemployment of the youth. Particularly among women having adverse effect on their skills development, employment productivity, family welfare and education of their children. Poor health status due to lack of clean drinking water, hygiene, sanitation and drainage facilities; Inadequate health care facilities, leading to high child mortality and morbidity; loss of labour productivity, economic loss, indebtedness and poor quality of life. Poor infrastructure for receiving timely information on development opportunities, market demand and prices for agricultural commodities, new technologies, forward and backward linkages, credit facilities and development policies of the government and Lack of technological skills to conduct processing and value addition to agricultural and other local products available in rural areas. Lack of peoples organizations and participation for supporting various socio-economic development activities and governing themselves (Hegde, 2010; Walsh, 2009; Commission on Sustainable Development, 2007). If we can overcome these problems, significant level of rural development can be obtained. It is the responsibility of the government to create a suitable environment for rural people to engage in rural development activities to gain sustainable development. 3.1. 3 New rural development paradigm As explained earlier, the traditional rural development approaches mainly based on industrial sector and modernization path. Decline in number of farms and a sharp drop in employment opportunities were seen as inevitable outcomes of this model. In addition, regional disparities increased and tensions grew between farming on the one hand and landscape, nature, environment and product on the other (Knickel 1990; Meyer 1996; Roep 2000). Until the early 1990s, due to scale-enlargement, intensification, specialization, within other sectors, a strong trend towards internalization was the parameters that circumscribed developments in the agricultural sector. With the understanding of these issues, present rural development means a new developmental model for the agricultural sector. This model entails societys expectations of agriculture and with the interests, prospect and perspectives of increasing segments of the agrarian community. In brief, new rural development can be seen as the sear ch for a new agricultural development model which is targeting to use rural resources in an effective manner to distribute benefits for the majority of the community. It is impossible and undesirable to refer to rural development as a new blueprint, but understanding of what elements should comprise in this new model are emerging fast. (Mannion 1996; Saraceno 1996) Agritourism, an alternative for diversification of agriculture is one of the main elements of it. 3.2 Concept of Agritourism Agritourism can be explained as a farm enterprise operated for the enjoyment and education of the public that may also generate additional income for the farmer by promoting farm products and experiences and giving many opportunities to local community to enhance their living standards (Wilson, Thilmany, Sullins, 2006). The concept is gaining popularity and its providing a great escape for people in urban environment from their high-paced, strenuous and many times monotonous lifestyle. At the same time its helping the new generation to get first-hand experience of the rural life, which otherwise is limited only to the books for them. Spending time on the farms, interacting with the local people and farmers to get an insight into their day-to-day work and their traditions, participating in the local fairs and festivals, doing the actual work on the farm, milking the cow, riding a bullock cart, are some of the activities that can be enjoyed on an agritourism outing. 3.2.1 Theoretical basis of agritourism Agritourism is multifunctional and cooperative strategy (Sidali, Spiller and Schulze, 2011; Wilson, 2007; Essex, et. al., 2005; Schmitt, 2010; Mason, 2000). The post-productivits agricultural system is the new approach in agricultural development. It is very complicated than subsistence and productivits agriculture systems (Topcu, 2007). Post-productivits agriculture system is a broad concept and the five main tasks of it are qualitative priorities in food production, alternative income sources for farmers and sustainability of agricultural lands, conservation of environment and new employment opportunities. Agritourism can easily link with these new aspects of agricultural development. Moreover, agritourism can be performed in five important sectors such as agricultural economic, socio-cultural, environmental and educational context in an effective manner. Further, since it is highly involved with the gender factor, agritourism as a gender approach is also having higher importance ( Topcu, 2007; Sidali, Spiller and Schulze; 2011; Wilson, 2007; Essex, et. al., 2005). 3.2.2 Definitions of agritourism Before 1990, only a little information has been published on agritourism. This lack of information was one of the reasons for the absence for the commonly accepted definition (Lack, 1997). However, after 1990, the research literature on agritourism has flourished and several number of definitions are available now (McGehee Kim, 2004). Some selected definitions of agritourism are as follows. Agritourism can be defined as the practice of engaging in activities, events and services that has been provided to consumers for recreational, entertainment, or educational purposes at a farm, ranch, or other agricultural, horticultural, or agribusiness operation in order to allow consumers to experience, learn about, and participate in various facets of agricultural industry, culinary pursuits, natural resources, and heritage (Colorado Agritourism Research Project, 2010). Tew (2010) cited The Agribusiness Development Division of the Missouri Department of Agriculture (2010) defines agritourism as, visiting a working farm or any agricultural, horticultural, or agribusiness operation for the purpose of appreciation, enjoyment, education, or recreational involvement with agricultural, natural or heritage resources Agritourism as an innovative agricultural activity related to tourism and agriculture both in which has capacity to create additional source of income and employment opportunities to the farmers and local communities (Maruti, 2009). Agritourism can be characterized as a business or activity that invites visitors to come on-farm or into a rural community to enjoy agriculture, its produce and the natural environment in which it exists. Agritourism is generally an additional enterprise added to the farm, integrating tourism into agri-business (Porcaro, 2009). An activity, enterprise or business which combines primary elements and characteristics of agriculture and tourism and provides an experience for visitors which stimulates economic activity and impacts both farm and community income (Bruch, 2008). Tourism on a working farm in which visitors can experience a direct connection with the host farm, rural life and/or the local environment. There is not a consistent definition of agritourism in the literature, and it has been used interchangeably with other terms. For example, some studies have previously been synonymously linked to rural tourism, farm tourism, agro-tourism, agricultural tourism and farm based vacation (Seong-woo and Sou-yeon, 2006; Ilbery, 1998; Ilbery, 1991). However, the main idea of all of these definitions is more or less similar. As a whole, agritourism can be explained as an interaction among agricultural producers, visitors, and local residents. Operators (mainly farmers) can earn extra income from the farm, visitors can get real knowledge and experience on farming and local residents can enhance their living slandered in several ways. 3.2.3 Working definition for agritourism in the study For the purpose of this study, agritourism is defined as tourism activities that conduct in working farm and surrounding, for enjoyment, education, recreation of visitors, hoping an additional income for the operator from farm resources in special and sustainable local development in general. This is the working definition for agritourism in this study that is suitable in Sri Lankan context. After having strong theoretical knowledge and practical experience in agritourism sector, this was developed, including considering the main purposes of agritourism visitors, motivation of agritourism operators and expectations of local residents for rural development. Economic, social, environmental dimensions have been included in this definition. 3.2.4 Activities involved in agritourism Normally, agritourism activities are the tourism activities take place in agricultural lands and surrounding rural environments. The number of agritourism activities mainly depends on the size of the farm and nature of the farming activities. These activities are important for the visitors to enjoy and learn agriculture. Blacka et al (2001) has divided agritourism activities in Virginia, into six categories as lodging and camping (bed breakfast, camp sites, youth camp, farm vacation, weddings, honeymoons), special events and festivals (music festivals, haunted house, holiday celebrations, harvest festivals) Off the farm (farmers markets, roadside produce stands), recreational activities and events (fee fishing, hiking, rock climbing, horseback riding, skeet shooting), tourism related direct marketing (pick your own fruits/vegetables, sell processed food on the farm, sell herbal organic products) an youth and or adult education (Organized tours, agricultural educational programs, dem onstrations). Lack (1995) divided agritourism British Colombia, into three groups as retail sales/ direct marketing (goods produced on-site, customer harvested produce and goods produced off-site), Tours (tour of processing facilities, scenic tours and tours of production facilities) and activities (accommodation, cultural activities, recreation and educational or hands on experiences). It is important to include all the possible agritourism activities because it helps to increase the length of stay and satisfaction of the visitors. In European countries, in a farm there are activities for visitors even for several days. However, the number of agritourism activities is lower in Asian countries. Further, activities in agritourism and rural tourism havent clearly categorized yet and most of the time they are used interchangeably. Briefly, a successful agritourism operation should have three aspects. They are the need to have things for visitors to see (educational tours, historical recreations, festivals/special events, crop arts), things for visitors to do (educational activities, petting zoos, hay rides, pick your own) and things for visitors to buy (food drinks, farm products, souvenirs). Things to see and do are often offered free of charge. But, money can be earned by selling things to the visitors (Adam, 2001). Agritourism can be used as primary, supplementary or complementary enterprise. As a primary enterprise, agritourism would be the main activity in the farm. Agritourism could be a minor activity in supplementary enterprises and it would share equal footing in complementary enterprises (Blacka et al., 2001). Agritourism can consist of different alternatives such as temporary attraction or special event, part of a large agriculture-oriented destination, part of a large non-agriculture-oriented dest ination, and complete agritourism agritourism operation. Different forms agritourism business Farmers can incorporate agritourism activities to their farms in various ways according to the situation. Four possible ways are; as a supplementary, complementary or primary enterprise, farmer must be ready to think creatively and plan effectively in order to success the agritourism enterprise (Mnguni, 2010). Supplementary enterprise In a supplementary enterprise, agritourism could be a minor activity that would support the other products on the farm. For example, if the primary enterprise is crop production, educational and training programs can be introduced with marketing facility of value added crop products. Complementary enterprise In a complementary enterprise, agritourism activities have equal share with other enterprises in the farm product mix. For instance, if there is a grapes production enterprise on the farm, it the farmer wants to sell half of the grapes to a whole seller and the remainder to pick-your-own operations for visitors on the farm, then the two enterprises would be complementary enterprises. The primary enterprise In the primary enterprise, agritourism would be the major activity on the farm. For example, suppose that a farmer wants to open a winery on the farm and invite guests to spend the day or the weekend tasting wine. As a part of the wine tasting package, farmer may include overnight lodging in a cottage on your farm. You may produce grapes for the wine on your farm to supplement your wine tasting activities. Here agritourism is the main part of the farm product mix and it becomes the primary enterprise (Bernardo, Valentin and Leatherman, 2007; Blacka, et al, 2001). 3.2.5 Issues and challenges of agritourism development As agritourism is a business activity, lots of requirements are essential for the successfulness of it. However, as agritourism is conduct mainly in rural areas by farmers, presence of several issues and challenges is a common phenomenon. For example, a study by Lack (1995) in British Colombia, has discovered that, lack of training, marketing knowledge, quality control, finance, appropriate insurance, excessive regulations, personal challenges for farm families, conflict with primary agricultural production, distance from markets, infrastructure limitations and farm disease are the challenges of agritourism development in that country. Agritourism in Nova Scotia has some obstacles. Many agritourism operators face the problem of lack of assistance and the knowledge required to produce market-ready products as Nova Scotia Tourism and Culture is reluctant to include and to enhance agritourism in their marketing campaigns. This lack of support hinders the development of agritourism produ cts and services resulting poorly developed and marketed products by farmers. So, farmers could not develop many skills required to operate an effective tourism business (Colton and Bissix, 2005). A study in Haryana, India has reported that the Lack of funds for publicity and advertisement less number of visitors, Lack of technology to develop farm tourism, lack of motivation of farmers, inadequate price for farm products/activities as major constraints in establishing agritourism (Shehrawat, 2009). In Sri Lanka, issues and challenges in agritourism are small size farm lands, lack of required skills for the operators, poor level of processing of agricultural products, low level of publicity and promotion are the significant factors. Furthermore, lack of visitors, environmental pollution, poor condition on infrastructure, are the common problems for all the operators (Malkanthi and Routray, 2011b). Although there are few differences, most of the issues and challenges are common for many countries. As issues and challenges are negatively affect for the growth of the sector, finding solutions is utmost important. 3.2.6 Sustainability in agritourism operations Sustainable tourism development is supposed to meet the needs of present tourists and host regions while protecting and enhancing the opportunities for the future. It is envisaged as leading to management of all resources in such a way that economic, social and aesthetic needs can be fulfilled, while maintaining cultural integrity, essential ecological processes, biological diversity and life support systems (World Tourism Organization, 1999) Therefore, Sustainability principles refer to the environmental, economic, and socio-cultural aspects of tourism development, and a suitable balance between these three dimensions to guarantee its long-term sustainability. Same as other tourism destinations, sustainability of agritourism destinations are very important in long run. Although most of the destinations that are feasible in short run, face difficulties in survival in long run. So, economic feasibility, social acceptability and environmental friendliness of tourism operations are equally applicable to agritourism as well. World Tourism Organization (2001), defines sustainable development as convene the requirement of present tourists and host regions as caring and improving opportunity for prospect. Its management of resources satisfies in way of economical, social and aesthetic needs satisfying while maintaining cultural integrity necessary for ecological processes, biological diversity and existence support system. Markandya, et.al., (2003) have reported that the three main linkages among tourism and sustainable development are economic, social and environmental. Tourism can kill itself if we mismanage the tourism activities and places (Yalcin Kuwan Perran Akan, 2001). Unspoiled natural environment is an asset of the industry. It will create the competitive advantage to the industry (Cater, 1993). The implementation and success of policies of sustainability, in employing tourism income to support social and cultural development and wild life conservation, require strategy framework which guides tourism development in a balanced and coherent way (Hall, 1998). Economic feasibility As one element of destinations economy, tourism must support a viable economic base. A healthy economy enables a country, region or city to pursue initiatives designed to enhance the quality of its residents (Ritchie Crouch, 2003). Traditional way of management of tourism destination was rather productive and resource-centered. But since there are limits in adapting to the market, the present strategy is combined supply and market let approach. In this context, management of demand is highly responsible for the sustainable tourism development (Kastenholz, 2004). So, instead of profit maximization of a destination by damaging the environment in short term, now the principle is to obtain the optimum profit. Economic benefits are positively related with the number of visitors. Further arrangement of traditional and cultural events is cost effective with this large number. However, as agritourism is a niche market, socio-culturally and environmentally sustainable, cooperation of cultural activities is very important. Socio-cultural feasibility It is widely accepted that local community participation is essential in sustainable tourism. Since agritourism is a service industry, goodwill and cooperation of host communities are the key factors of the success of the industry (Cole, 2006; Knowd, 2006). It is more important for the positive effects of tourism to the local community. It should be free from negative effects to the community. So, it is essential to test the social acceptability of tourism destinations (Gonzalez and Falcon, 2003). Convery, Dutson Scott (2006) found out the importance of stronger link between tourism and surrounding communities. The study also emphasizes the importance of social capital and social network in remote upland rural locations for the success of the operation. Most common measurement in tourism socio cultural force is the relation of visitors to the local population. Vital indicators are the stay-over time and average length of stay (Mcelroy, 2003). Sharpley (2002) said that socio-cultural growth includes population of remote areas, development and maintenance of public services, renewal of local craft, customs and cultural recognition. So it influences the chance for social control and exchange. Environmental feasibility Tourism destination should less damage to the surrounding environment; especially it should be free from serious environmental pollution activities. So, it should match with environmental rules and regulations and followed by Environment Impact Assessment (United Nations, 1999). However, the literature reveals that little evidence is there regarding environment being considered by farmers, planners and tourism professionals (Kline et al. 2007). Thus, sustainable agritourism should ensure viable, long-term economic operations, providing socio-economic benefits to all stakeholders that are fairly distributed, including stable employment and income-earning opportunities and social services to host communities, and contributing to poverty alleviation. Also, respect the socio-cultural authenticity of host communities, conserve their built and living cultural heritage and traditional values, and contribute to inter-cultural understanding and tolerance. It should make careful use of environmental resources that constitute a key element in tourism development, maintaining essential ecological processes and helping to conserve natural heritage and biodiversity. Sustainable agritourism development requires the informed participation of all relevant stakeholders, as well as strong political leadership to ensure wide participation and consensus building. Achieving sustainable agritourism is a continuous process and it requires constant monitoring of impacts, introducing the necessary preventive and/or corrective measures whenever necessary. Furthermore, it should also maintain a high level of tourist satisfaction and ensure a meaningful experience to the tourists, raising their awareness about sustainability issues and promoting sustainable tourism practices amongst them. Although it is difficult and expensive, agritourism development should follow the sustainable tourism procedures to obtain the real benefits of it forever. However, most of the operators in many countries mainly emphasize only on short term economic advantages without social and environmental benefits. This is the reason for the breakdown of many tourism operations including agritourism, within a short time period. 3.2.7 Government policies in agritourism In general local government is the most important authority in establishing tourism development policies (Perce, 1989). However, the types and the content of its involvement vary from country to country based on the political, economic, and constitutional systems. In many European countries governments have supported the growth of the agritourism sector. There are national policies for the support and development of agritourism in a number of countries for a long time. For instance, in France, state financial aids to support the renovation of redundant farm buildings into accommodation facilities were introduced in 1954. Farms in Italy, Germany and Denmark also have long benefited from national support for the development of tourist facilities (Frater, 1983; Nilsson, 2002). In Britain, Scheme offering financial incentives and advices about diversification, together with partial relaxation of planning restrictions, have facilitated the development of farm-based tourism. The farm diversification Grant Scheme introduced by the ministry of Agriculture, Fisheries and Food in 1988, was one of the first measures offering grants to farmers to help them develop diversification schemes (Walford, 2001). According to Douglas Douglas, (2001); Fernando, Rebollo Biadal, (2003), it is important to develop policies in a proactive nature to lay the foundation and capture the development potential of tourism for rural communities. So, the national rural tourism strategy of a country must emphasis on infrastructure development, product development, accreditation and industrial standards, education and training, market analysis and the role of government authorities and industrial leaders in further developing the rural tourism product. Ritchie Crouch (2003) reported that policy is an important factor which ensures the success of tourism destination. It also creates a friendly environment among stakeholders. Therefore, the main objectives of agritourism policy are to minimize and alleviate negative environmental, s

Ice Cream Essay

According to market research conductedin 1996, 80% of Filipino consumers bought on impulse (they bought only upon passing an ice cream shop or scooping station, but without an intention to buy first); 98% ate ice cream was an afternoon snack. Furthermore, studies showed that per capita consumption of ice cream was less than a forth of a gallon per person per year. In 1992, it stood at 0. 23 gallons per person and declined to 0. 20 in 1993. On average, domestic ice cream market was 13. 8 million gallons from 1991-1993, worth estimated p 2. 5-3 billion per annum. Bulk ice cream comprised 86% of the industry sales while the rest was accounted for by frozen novelties. Main competitors in this include San Miguel Corporation’s (SMC) Magnolia and RFM’s Selecta. Magnolia Other trailing competitors are Universal Robina Corporation’s (URC) Presto, Arce Dairy Ice Cream, and Pure food’s Coney Island, as well as foreign brands like Baskin-Robbins ,Dreyer’s and Haagen-Dazs. Magnolia – The pioneer ice cream brand in terms of flavour, quality control, variety, technology and distribution produced by the merger of SMC and Nestle. It introduced the Flavor of the Month series that provided a huge variety of ice cream flavours to the consumer, with projected volumes of FoM ice cream sold reaching over 28 million gallons. It pioneered the introduction of tropical fruit flavours. It was the first to achieve International Standards Organization quality standards, and is the only Filipino ice cream brand that has expanded overseas. Magnolia is poised as the main competitor, as it aims to be at the forefront of the dairy industry. With increasing competition, MNC intends to make its products available in neighborhood stores and major outlets; introduce a feedback mechanism that will help the corporation monitor the market; and employ new approaches to selling. Currently, magnolia is the preferred choice of many five star hotels, fine dining restaurants, sports and country clubs and food chains.Presto – this brand claims value for money, as part of the corporate philosophy of the Gokongweis, owners of JG summit corp. hich URC is part of, which is to make available value-for-money items for all its consumer-branded products, and as such has positioned its prices lower than Magnolia & Selecta. Presto excels in the frozen novelties market, as was demonstrated in their introduction of Tivoli bars, the first ice cream bar in the Philippines, a phenomenal success that had competitors challenge it with their own versions of ice cream bars. Presto currently holding the number three position, is determined to fur ther widen its market share and catch up with the giants. Thus, the company is eyeing the possibility of plant capacity expansion and wider distribution network. It is also determined to enhance its advertising campaigns and be very active in the communication field. Arce Dairy – This ice cream brand was started in January 1995 and immediately got hold of a 5% market share. Its trademark was the use of carabao milk as base, comfortably within the 5-16% fat content requirement to be called ice cream because carabao milk contains considerably more fat than cow milk (9. 65% as opposed to 4. 16%). Only the expensive ice cream (super deluxe and super special) of Arce contain carabao milk, and are priced at higher than the rates of the competition, showing that Arce’s main strength is its appeal to the AB market where its products cost P3-5 more than its competitors’ products, and as its regular ice cream products are priced lower than its competitors by P3-5 which indicates its attempt to appeal to the CD market’s tendency to want every peso to count. Coney Island – 1976 saw the entry of Coney Island in the local ice cream market. It introduced a new standard of creaminess thanks to its products’ high milk fat content, setting a standard for flavour richness back then. Purefoods acquired it in 1991 and increased its production capacity without having neglected the improvement of its quality. In line with Pure Food’s rule of following the highest international standards, Coney Island tried to implement the zero-vegetable fat and at least 10 percent milk fat standard of US ice cream. It used high quality ingredients like Callebaut chocolate from Belgium for its top-of-the-line products such as the Premium Bar, Pure and Simple and Bugs Bunny Bar. It repositioned itself in the market in 1995 to improve local competitiveness. It marketed its products as â€Å"Not Just Ordinary Ice Cream†, supported by new flavours and packaging. Coney Island revised its product classification, and began categorizing its bulk ice cream as simply creamy, fruit and nuts, and cakes and pastries instead of the traditional premium and super premium. This move was inspired by a study that showed that consumers buy ice cream on the basis of flavour concepts. Foreign Brands – Foreign include Haagen-Dazs, Dreyer’s Grand Ice Cream and Baskin-Robbins. Dreyers was the first to penetrate the local market.

Creative Concept Essay

I. TIME CONTEXT The case is analyzed when problems affecting the company’s operation took place, inventory cost rises, and lead time for manufacturing custom and standard product line increases. It was then that Thomas decided that it’s about time to take a careful look at the overall impact the new standard furniture line is having on his operation. II. POINT OF VIEW Chad’s Creative Concept started with a good vision of producing custom-made wooden furniture for vacation cabins bringing â€Å"a bit of outdoors inside†. Gaining popularity, evidenced by the increasing demand for their products,  they’ve proven themselves and earned the trust of their clients with subtle and elusive tastes. Opportunity came for the company to venture into the production of a more standard line of furniture. This endeavour could have been great but such affected the company’s operations, marketing and finances. Alterations could have been done in the overall manufacturing process of the company or conducting a marketing analysis could provide insights and working out the marketing segmentation on the potential demand for the standard line products. Most likely, the company was not that much ready to embark on this new line of furniture making in terms of their managing their resources and making the most out of them. Consequently, problems arose and if this situation will continue, additional investment in product cycle will be low or even zero at some point of time. If this will not be given much attention and proper solution will make matters worse. III. STATEMENT OF THE PROBLEM Enumerated below are the problems identified in the case of Chad’s Creative Concepts. How did producing standard furniture affect Chad’s Creative Concept’s operations and its financial gain? How can the company operations or slow manufacturing process be improved to cater market demand for both furniture lines? What can the management do to reduce production costs while upholding customer satisfaction? IV. OBJECTIVES The following are the objectives the case proponent would like to achieve in order the address the problems faced by Chad’s Creative Concept. To ascertain the operational and financial effects of manufacturing standard furniture. To determine ways on how to improve company operations to cope with the increasingly steady demand for standard and custom-made furniture. To decrease production cost without sacrificing product quality and customer satisfaction. V. AREAS OF CONSIDERATION A. SWOT ANALYSIS STRENGTHS: The company began by producing custom-made furniture and in a short period established a stable reputation for creative designs and high-quality workmanship. Growth of sales led into the production of a more standard line of furniture. Can offer products at the lowest possible price with utmost customer satisfaction. Producing custom and standard furniture offer customers with more choices. WEAKNESSES: Single manufacturing process for both standard and custom furniture. Processing time on the same equipment and craftspeople are shared in manufacturing custom and standard furniture. The holding cost of the company is increasing with dollars tied up in inventory, both of raw materials and work in process. OPPORTUNITIES: Good reputation yields custom furniture sales to be strong and steady sales growth for standard line furniture. THREATS: Customer demands lowest possible cost with maximum satisfaction, in terms of product quality and delivery requirements. Custom furniture is prioritized in making schedules because of its high sales and profit margin causes delay of finishing standard furniture. Costs associated with standard furniture line are increasing. Expensive storage or warehousing cost. Increasing lead time for both custom and standard orders causing longer promised delivery times. Capacity is at its peak providing no space left for expansion.VI. ALTERNATIVE COURSES OF ACTION In order to address the issues faced by the management of Chad’s Creative Concept the following alternative courses of action may be implemented: 1.Relocation of warehouse to an economical and cost saving location. 2.Recruitment of additional staffs e.g., craftsman. By doing so, both  product lines will not compete for the same craftspeople. 3.Encourage existing staffs for overtime in order to reduce delay in manufacturing products, by providing night differential fees and hazard fees. 4.Given that both manufacturing lines are in demand, business capacity maybe enlarged by enabling more facilities to accommodate processing of both product lines. 5. Employ inventory management. This includes developing a forecasting technique about product demand and making right layout and work flow process. Make scheduling decisions, entails how much to produce, to make sure there are not so many raw materials as work in progress status. VII. DECISION CRITERIA The following criteria were used to evaluate the suitability of alternatives recommended in making the decision: Maintain customer satisfaction and company reputation. It is important to note that decision must be based on this rationale because the longevity of a business may be determined by the patronage of its satisfied clients. Chad’s Creative Concept best marketing strategy is the quality furniture they produce for both product lines. Moreover, customers of standard furniture line imposed more stringent delivery requirements, increased lead time for both product lines causes longer agreed delivery times which may garner dissatisfied customers and tarnish company reputation. Improve or at least maintain profitability. Finance and accounting disclosed that profits are declining because of costs congruent with the standard furniture line. Priority given to custom furniture line delayed the generation of revenue for standard furniture line. A company even with a good reputation may not stay in the business if its sales can’t support company operation and administrative expenses. Reduction of cost through proper management of resources such as time, inventory and manpower, will increase profit margin. Hence, it is important at this point to base decisions on this criterion. VIII. DECISION ANALYSIS ALTERNATIVE PROS / ADVANTAGES CONS / DISADVANTAGES 1 Relocation of warehouse with a cheaper rental fee will lessen costs and increase profitability. May incur relocation cost. Since new warehouse is cheaper it may not be that big to accommodate raw materials and inventories. 2 Can manufacture more products and accommodate market demand for both lines and deliver the products on time maintaining client satisfaction. Thus, increasing sales and profit margin. Increase in salaries expense decreases profit margin. May spent time for training new recruits. Learning curve may be lower as they start off. 3 Can increase number of finished products and increases sales. Quality of work may suffer. Employees may get exhausted for working overtime and tend to finish it at a shorter time than usual. Increase salaries expense and decrease profit margin. 4 Can speed up processing time since both lines will not compete for the same equipment. Hence, sales will be increased. Increase asset – capital investment. There is no space left in the plant for expansion. Manpower should also be increased to operate new facilities which increase salaries expense and decrease profit margin. 5 Conceptualisation of right layout and work flow process suitable for both lines would expedite production process. Developing forecasting techniques in understanding demand of products will facilitate timing of procurement of raw materials ex. Just-in-Time Strategy which avoids too much investment on hanging raw materials and work in process inventory. Hiring experts for making the right lay-out and for developing forecast will incur professional fees thus, increasing expenses or costs. IX. DECISION Based on the information presented in the case of Chad’s Creative Concept, the case proponent would like to recommend that alternative no. 5 which entails inventory management address best the problems enumerated above and matches the criteria specified. Hiring an expert who will conceptualize right lay-out for work flow process will speed up manufacturing procedure and configure standard and customized so to reduce setup and changeover time and cope with the demands. Hence, delivery requirement will be met and customers will be satisfied in consideration of preserving company reputation. Moreover, results of forecast will be useful in the timing of procuring raw materials to avoid unnecessary expenditures such as holding cost which will boost up profits. As disclosed in the case, the plant capacity is at its full, plant has no space left for an expansion, and costs associated with the standard line are rising because there is no active sale and the inventory is increasing in the form of raw material and work in process which is holding the investments of the company. It is recommended that the JIT system should be used. Just in Time (JIT) is an inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs which at this point is what the company needs. This inventory supply system represents a shift away from the older â€Å"just in case† strategy, used by Chad’s Creative Concept, where producers carried large inventories in case higher demand had to be met. Though hiring experts will incur cost still the â€Å"benefits exceed costs†. Bearing in mind this principle will further company success and the going concern of the business. X. STRATEGY OF IMPLEMENTATION In implementing the decision the following should be done: Lay-out current manufacturing process. Hire experts who will make the forecasts techniques in understanding demand and conceptualise the layout and work flow process appropriate for both product lines. Lay-out developed should undergo dry run if it would accelerate manufacturing process and achieve the product quality desired. Such as: Product layout for standard line product, usually used for large volume products. Process layout for custom products is used when there are  diversified products using broad-spectrum operations, varying volumes and varying rate of output. Properly laid out factory can ensure the smooth and rapid movement of materials, from the raw material stage to the end product stage. In implementing the new inventory strategy, Just in Time system, supply chain should be adequate and would match demand projected.

Understanding A Culture Is A Complex Task For Anyone

Understanding another culture is a complex task for anyone. Culture includes all parts of life such as beliefs, art, music, morals, value system and their rules, religion and philosophy, interactions with family, behavioral pattern, practices of reading children, leisure and recreational activities, ceremonies and rituals, nutrition, food preferences, and practices of health (Blais, Hayes, 2016). In America the those of Hispanics origin are a fast growing population especially in California and in particular Ventura County, where the US Census Bureau reports that 42.0% of the population in 2014 are Hispanic. (bureau) US Census Bureau confirms that more than half of the growth in the total population of the United States between 2000 and 2010 was due to the increase in the Hispanic population (Bureau, 2011). Health care professionals, that is, nurses, who provide culturally competent care to the Hispanic vulnerable population, achieve better outcomes than those who do not practic e culturally competent care. Hispanic Community Growing Health Needs Hispanics are getting sicker than others in America. According to the Center for Disease Control’s Office of Minority Health and Health Equity, life expectancy and health bettered in the last couple of years for the majority of American people; but, not all Americans are improving equally. (CDC, 2015). The CDC depicts that Hispanics suffer from the following ten major health disparities as of 2010: Cancer, HeartShow MoreRelatedWhat Makes A Good Poetry?1745 Words   |  7 Pagesthis anthology, then there must be a part of you that is curious as to what is considered poetry and the reason that it has existed in our human culture for so long. Poetry is a form of communication that is adept at using creative techniques to tell a story, or express an emotion or idea. It provides insight and is a looking glass into people, culture, and experiences. It helps both the creator and the observer. For the writer, it provides a medium into which they can express their ideas, and tellRead MoreChildren s Development Of Self And Social Understandings883 Words   |  4 PagesChapter 12 discussed children’s development of self and social understandings. Sense of self refers to one’s own knowledge, beliefs and feelings. There are variations of self-perceptions such as self-concept, self-esteem and self-worth. The chapter examines self-perceptions through the transformations through the years. The purpose of sense of self allows children to understand their motivations, influences their behavior and allows them to find their niche. Psychologists believe in order to achieveRead MoreCase Study 3 Essay1206 Words   |  5 PagesEnglish language. Have ESL students in the classroom certainly raises more questions than it does answers, as teachers are faced with various new situations in helping ESL students better understand not only the English language, but the English culture as well. Another difficulty that is faced is exactly what methods teachers need to be implementing in their goals of better acclimating students to the English language. The school board needs to allow teachers to implement various types of methodsRead MoreChristology For The New Millennium Essay1485 Words   |  6 Pagesfor the new millennium. Sure, it is our task to translate the Gospel so this generation can understand the Word of God. Can this be done in a historical reconstruction of the early ch urch or the canonical New Testament? However, the article seems as though they are trying to bring (change) the Gospel into dialogue with the new or contemporary culture (www.commonwealmagazine.org). Another article states that the new millennium or contemporary culture people believes that the Bible has noRead MoreThe Intercultural Health Issues Subject964 Words   |  4 PagesPreservation of one’s own culture does not require contempt or disrespect for other cultures. Cesar Chavez (n.d). This is the concept that we have learned in the Intercultural Health Issues subject. Being nurses we should respect each other’s culture and should provide culturally sensitive care. Culture is a set of beliefs, customs, arts, values, and behaviours shared by a group of people. Studying culture is important because it helps to avoid any unsatisfactory outcomes and to provide culturallyRead MoreChildren With Dementia And Parkinson s Disease1488 Words   |  6 Pages 1. Introduction Dementia is a collection of symptoms caused by disorders affecting the brain which impact on a person’s functioning, ranging from thinking to behaviour and the ability to perform ordinary tasks and there are different type of dementia with the most common types being Alzheimer’s disease, vascular dementia and Parkinson’s disease (Keast, 2015). In 2009, nearly two-thirds (62%) of people identified as having dementia or Alzheimer s disease were living in a health establishment suchRead MoreNotes On Loss And Loss1013 Words   |  5 PagesLoss is one of the most common experience that each of us share with all of mankind, no matter our age, where we live, what we do. Yet when severe loss occurs in anyone lives most of us feels awful and have no idea how to bring about our painful emotions and continue with our day to day lives (Wyatt, 2010). Loss is the experience of parting with object, person, belief, or relationship that one values. †¢ Losses are come across daily by everyone. †¢ Losses can be minor or major. †¢ The influence ofRead MoreEducational Methods Influenced By Jean Piaget And Lev Vygotsky800 Words   |  4 Pagesphases. Social interaction plays a fundamental role in the process of cognitive development. The More Knowledgeable Other (MKO) refers to anyone who has a better understanding or a higher ability level than the learner, with a particular task, process, or concept. The Zone of Proximal Development (ZPD) is the distance between a student’s ability to perform a task under adult guidance and with peer collaboration and the student’s ability solving the problem independently. According to Vygotsky, learningRead MoreMike Rose Describes His Personal Childhood Observations1389 Words   |  6 Pagesof sitting in the back booth, at whichever restaurant his mother was employed at the time, and watching her juggle all kinds of intricate task simultaneously such as; devising memory strategies to remember orders, and monitoring how long her orders spent in the kit chen. Rose also describes his uncle Joes job as requiring many different skills that are complex and require intellect. Through the use of ethos, pathos, logos, and persuasive devices, the author contradicts the assumptions that blueRead MoreEmotional Intelligence Therapeutic Interaction and Reflective Nursing1527 Words   |  6 Pagesclient. However ‘’compassion is central to holistic nursing care , it involves the recognition that all humans desire happiness and not suffering.†(Rich, 2003)’’.Empathy is a complex multidimensional concept that has moral , cognitive , emotional and behavioral components’’.(merser reyoids,2002).In simple terms it is understanding ones idea expression and feelings. However people sometimes confuse themselves with empathy and sympathy. for example sympathy is thought to have more to do with kind heartedness