Presences of Others Essay

It is shown that people have the tendency to perform better when in a group this is called social facilitation. There have been other studies done contradicting this and with more difficult experiments it actually hurts a person’s performance in a group. As Zajonc stated; a state of arousal is linked to performance without the presence of others. When an individuals is faced with a more difficult task it may lower that persons self esteem and then lead to that person not performing at his or her best. Most people are afraid of being judged and this will affect all of our normal everyday behaviors due to a low self esteem issues. Now with simple tasks a person’s performance can be a positive and a stimulating experience allowing a person to perform better and set higher goals for themselves and have higher self esteem. I am a person who can identify with these, in starting school a few years back I was very intimidated and self conscious about being in a class room with people I did not know. I watched everything I said or did and did not want to even raise my hand because I did not want to be embarrassed if I answered incorrectly or sounded stupid. At first in my class I did not perform very well with the group, but as I got to know everyone my positivity started coming out and I was able to benefit with being in a group and excelled. The article I read in the Journal of Social Psychology was about a widely accepted finding that in social psychology, that the mere presence of others reduces anxiety. Based on Wrightsman’s widely accepted findings, that his study which he originally demonstrated that the reduction of anxiety is less in the presence of others (at least firstborns). Though Epley raised some questions on the methodology of Wrightsman’s study and about the real reason there was an anxiety reduction, Epley stated that it was probably due to the distractions or social comparison and not just the  presence of others. I believe that depending on the situation the group may be in. I also found that also it depends on the situation and task at hand that a group is in and if the conditions are peaceful or hectic. The next article I read stated that the presence and type of situation and the connection between the two with the presence of an audience and how they react to the performance. Partic ipants were performing various tasks both in group settings and alone. In group settings word association was better performed compared to problem solving tasks which were more successful while performed alone. It all depends on the task at hand and in what situation the task is being performed in and under what conditions. Reference Journal of Social Psychology. Aug1978, Vol. 105 Issue 2, p301. 2p.

A Comparative Analysis of Community-Based Tourism in Uganda and Kenya

1. Introduction As pointed out by Tasciet al (2013), the contribution made by tourism to the growth of the economy can be enormous. Given the great potential of the tourism sector, several models have been developed over the past few years. Community-based tourism, developed in the 1990’s by authors including Pearce (1992) has been suggested to provide for sustainability in the industry (Beeton 2006). Community-based tourism (CBT) can be defined as a bottom-up approach that ensures the involvement of the local communities in the planning process (Koster 2007). Given the potential of CBT, many rural areas are increasingly relying on tourism as an alternative to economic development, replacing their former reliance on forestry, mining and agriculture (Lopez-Guzman et al. 2011). Rural areas are considered important tourist destinations as they appeal to many tourists (Butler et al. 1998). This paper conducts a comparative analysis of community based tourism between Uganda and Kenya. The paper wi ll first define the concept and then explore the demographics and history of tourism in Kenya and Uganda, and finally examine the socio-economic and environmental impacts. A comparative analysis will be done between the two countries by highlighting similarities and differences. 3. Community-Based Tourism Model: Overview The notion of CBT can be traced back to the alternative approaches developed in the 1970s which were concerned with issues beyond the strictly economic (Tefler 2009). During this period, development in the tourism sector began to focus more on community-based initiatives and stressed more on the participation of the local individuals (Giampiccoli & Kalis 2012). The concept brought together issues of sustainability, local empowerment and self-reliance. CBT has come about due to the desire for a more inclusive approach to planning that incorporates local values (Koster 2007). The concept of CBT has suffered from competing and ill-thought-out definitions. For example, Suansri (2003) and Ramsa & Mohd (2004) view CBT as a tourism venture wholly managed by the local communities. On the other hand, Scheyvens (2002) and Mearns (2003) are inclined to see it as involving a degree of participation or partnership with other stakeholders playing a part. Perhaps the problem with defining the concept can be attributed to the fact that CBT may mean different things to different people. Despite debate over meanings, the CBT framework used in this paper is that initiated, planned, controlled, owned and managed by the local people with the aim of meeting the needs of the entire community. Private enterprises at the micro-level can be considered as part of the definition if the focus is on communal well-being rather than individual profit. The benefits should accrue to the local community and CBT should respect and preserve local culture. 2. Background to Tourism in Kenya and Uganda: Demographics, History, Socio-Economic Considerations andEnvironmental SustainabilityTourism plays an important role in Kenya, accounting for 10% of GDP and 9% of employment. It is also increasingly profitable with a 17.9% rise in earnings from the sector between 2009 and 2010 (Ndivo et al 2012). Amongst African countries, Kenya is currently ranked 5th for international tourist visits, with approximately 1.5 million international tourists in 2008 (Bunyere et al. 2009). Because it has the potential to generate employment and prosperity, it has been given an increasingly important role in national socio-economic agendas, with a number of key policies and strategies created including the National Tourism Master Plan (Ministry of Tourism Kenya 2009), Tourism Policy (Government of Kenya 2010) and Tourism Bill 2005 (Ndivo et al 2012). Although there is potential to develop tourism around the country, historically interest has centred on the beac hes of the south coast, national parks and game reserves (Ndivo et al 2012). According to a survey conducted by the EU, 63% of EU visitors in Kenya chose coastal areas as their tourist destination (Kibicho 2004). Wildlife is also a popular attraction, with70% of the tourism earnings in Kenya coming from wildlife-based tourism (Bunyere et al, 2009). Given the critical importance of the tourism sector in Kenya, it is extremely vital to protect and conserve these significant resources. Indeed, conservation policies and collaborative schemes have been already been put in place. There is a large area of protected land, and 10% of Kenya’s land has been designated as national park and game reserve land (Akama et al., 2011). Critical biodiversity areas and the rich cultural coastal region form the flourishing tourism sector in Kenya. Although measures to protect Kenya’s ecology have been put in place, there are concerns over sustainability, and the country continues to experie nce accelerated decline and destruction of critical biodiversity areas. There has been a decline in wildlife population in national parks and game reserves at rates similar to non-protected areas, indicating the state’s inability to protect critical biodiversity (Akama et al., 2011). Moreover, coastal tourism which has for decades dominated has experienced a rapid decline in the recent years owing to the tribal clashes that have erupted (Cheung 2012). Kenya’s coastal tourism industry experienced a period of unprecedented dismal performance with 56% of the hotels closing in 2008 (Akama et al., 2011). Although much of the violence that occurred was tribal in nature, findings indicate that lack of community participation and involvement in tourism activities in the coast was a major factor contributing to these ethnic clashes. Had the local communities been involved in the tourism activities, such ethnic flare-ups would have been averted. The ethnic flare-ups, land use co nflict between local communities and wildlife managers, threats of extinction of species and the apparent inability of the state to protect critical biodiversity areas have led to a new realization of the importance of community based tourism in Kenya (Korir et al 2013). Considerable effort has now been made to provide support to CBT enterprises including donor funding. Further, a framework that gives impetus to successful and sustainable operations of CBT ventures has been linked into the overall national policy (Akama et al. 2011). History of Ugandan tourism sector and socio-economic contributions Tourism also has a role to play in the Ugandan economy. Similar to Kenya, main tourist products in Uganda are nature-based and are linked to wildlife game reserves, forest reserves and national parks. Other attractions include cultural heritage, community development, eco-tourism and faith-based tourism (Paul, 2004). The importance of involving the local communities in tourism activities is also evident in Uganda. Conflicts between the locals and the government have largely been due to their lack of involvement in planning and development activities. For example, after the establishment of Bwindi Impenetrable National Park in 1992, conflicts arose between the locals and the park. The conflicts that led to the burning up of 5% of the park by the local community was evidence enough that the park would not be protected without consent and local support (Mujuni et al. 2003). A collaborative management plan was however set up which promoted participation of the locals in park management and revenue sharing. As a result, conflict ended and the locals committed themselves to protecting and preserving the park. The experience showed the importance of local community involvement in tourism activities. Uganda used to be a key leader in tourism in the past. In the early, 1960s Uganda used to be the main tourism destination in East Africa(Frederic, 2011). However, the unpreced ented turmoil of the 1970’s and early 80’s led to a decline in the tourism industry (Paul, 2004). As a result, Uganda lost its position as a top tourist destination in East Africa to Kenya. However, the government that took over in the mid 80’s restored peace and stability (frederic, 2011). Since then, the sector has been steadily increasing despite lagging behind Kenya in terms of its contribution to GDP. Unlike in Kenya where tourism contributes around 10% of the GDP, Ugandan tourism industry is estimated to contribute 4% of the total GDP(Sanchez-Canizares, 2013). Nonetheless, there has been an increasing trend in tourism with the number of international tourist visits increasing from 468,000 in 2005 to over 940,000 in 2010 (Paul, 2004). Given that both countries are still developing, it is worthwhile to examine some of the similarities and differences between the two countries. Comparative analysis of community based tourism between Kenya and Uganda Similarit ies Socio-economic impact The two countries share certain things in common starting with the embracement and recognition of community based tourism as an important tool for reducing poverty. Both countries have embraced and given emphasis to development of community based tourism as an important tool for poverty reduction (Sanchez-Canizares, 2013). There are several community based tourism projects in both Kenya and Uganda. Some of the popular community based tourism projects in Kenya are: the Kimana Community Wildlife Sanctuary, Mwaluganje, Sera Conservancy and Kalacha Bandas in Marsabit among many other(Tang, 2013) Similarly, Ugandan ministry of tourism has laid emphasis on the importance of community based tourism in the country. The idea of community based conservation has become the focus of the industry. Perhaps this has been driven by the recognition of the benefits of involving the local community in tourism development including: poverty reduction, decline in conflicts with the ministry over land use d and reduced poaching activities (frederic, 2011) Some of the successful community based projects in Uganda include Lake Nkuruba Nature Sanctuary, Buhoma Community Restcamp, Mgahinga Community Campground, Busingiro and Kaniyo Pabidi community project, Ruboni Community Campground and Bigodi Wetland Sanctuary(Zeppel, 2006). Participation of the locals in these projects is high. For example, in Bigodi Wetland Sanctuary, the local people are involved in community-guided walks and bird watching tours (Zeppel 2006). Both countries seem to be embracing community tourism as an important tool for reducing poverty. Another similarity can be seen with the funding of these projects. Most of these projects are donor funded. Kenya is heavily reliant on donor funding. In fact, almost 100% of community based tourism development activities in Kenya is donor funded. For example, funds from USAID and World Bank were used to set up an electric fence around the Kimana Community Wildlife Sanctuary (Jona than et al. 2013). Mwaluganje, another community based tourism development activity, was established through donor funding. Sera Conservancy that was formed to empower the local Samburu communities in Kenya was established with funds from USAID. The EU has also played a major role in funding community based tourism development in Kenya. In 2000, a massive grant of 5.5 million Euros was released by the EU which saw the establishment of 16 community based tourism developments in Kenya (Ruhiu 2007). Other key players funding CBT in Kenya include international bodies such as the UNDP, conservation based NGOs such as AWF, Pact Kenya and WWF; and national agencies such as Kenya Wildlife Service (KWS) and Kenya Forest Research Institute (KEFRI) (Jonathan et al. 2013). It is clear that donor funding has played a major role in the development of community based tourism in Kenya. The government’s role has merely been the provision of an enabling environment such as security, programme coordination and policy formulation (Ruhiu 2007). Similarly, Community Based Tourism Enterprises (CBTE’s) in Uganda rely predominantly on donor funding. The Mgahinga Bwindi community project was established with funds from the World BANK (Mujuni et al. 2003). Moreover, the two major associations Uganda Community Tourism Association (UCOTA) and (NACOBTA) in charge of promoting community based tourism in Uganda by providing loans and training to the local communities are predominantly donor funded. NACOBTA is 99% donor funded whereas UCOTA is 44.8% donor funded (Elisa et al., 2001) UCOTA empowers the local Ugandan communities to improve their livelihood through participating in sustainable tourism development activities. The association helps the local communities by aiding in the sale of handcrafts, providing accommodation, and tour guiding. Furthermore, both countries have witnessed improved livelihoods due to community based tourism activities. For example, the Mgahinga Bwindi Community Project in Uganda has improved the livelihoods of the locals living around Bwindi Impenetrable National Park. Many of the local population living nearby have been employed as park rangers and ‘porters’ (labourers). The community has also benefited through improved infrastructure including roads, education and health facilities. About 60% of the Mgahinga Bwindi Impenetrable Forest Conservation Trust has been devoted towards development of local community projects (Adams & Infield 2013). The local communities in Kenya have also benefited from employment and improved livelihoods. The locals living near Mwaluganje, Sera Conservancy and Kalacha Bandas in Marsabit have benefited from schools, clinics and boreholes which have been built by these projects (Ruhiu 2007). Further, pro-poor tourism have assisted women with bead making through provision of platform for selling their products. Whilst these benefits are encouraging, participation of the locals in both countries is still far from enough. Although some of the locals have managed to secure jobs and improve their livelihoods, most of them are paid low salaries, an equivalent of 30 pounds per month (Ruhiu 2007). This certainly doesn’t really improve their livelihood that much. In fact, critics have argued that community based tourism and tourism in general should not necessarily be relied on as a tool for poverty alleviation. According to them, tourism does not compete well with sectors such as agriculture whic h have higher potential of reducing poverty. Environment impact Also, community based tourism in both countries have led to positive impacts on the environment. For example, in Uganda, KAFRED has created awareness among the local communities bordering wetlands about the importance of protecting and preserving the environment (Adams & Infield 2013). This has led to a reduction in encroachment and eucalyptus planting in the wetlands. Further programs such as the National Wetlands Program and Semliki conservation project which have risen from CBT activities have established village by-laws governing the use of wetlands (Adams & Infield 2013). Environmental education has played a role in ensuring sustainability of tourism. Similarly, in Kenya, involvement of the local people in tourism activities has led to reduction in wildlife poaching and destruction of forests. Community wildlife and conservation ventures in Kenya have played a major role towards protecting the environment and preserving wildlife (Jonathan et al. 2013). Environment degradation ha s reduced and conservation measures strengthened with the help of the locals who are employed as park ranges and ‘porters’. Community based tourism and eco-tourism have led the way towards responsible travel with important environmental benefits. Differences Having highlighted the similarities, it is important to identify some of the differences in community based tourism between the two countries. One particular difference relates to the extent to which community based tourism is promoted. CBT in Uganda is only limited to areas within or along the forest reserves and national parks. Almost all of the community projects are within or along the forest reserves and national parks. For example, the Buhoma Community Restcamp is within the impenetrable Bwindi Forest national park. The Mgahinga Community Campground project lies next to Mgahinga Gorilla National Park (Zeppel 2006). Others including the Bigodi Wetland Sanctuary, Busingiro and Kaniyo community project and the Ruboni community campground are located along or near national parks and forest reserves (Zeppel 2006). Community based tourism activities in Uganda continue to be limited to areas lying within or along the national parks and forest reserves. This has been echoed by Industry operators who have highlighted ‘limited efforts to promoting community tourism at the national level’ as one of the main concern of tourism development in Uganda. In stark contrast, community based tourism is promoted at the national level as evident with the opening up of new areas of possibility such as sports tourism, eco tourism, adventure safaris, horse and camel safaris, walk tours, and cultural tourism among many others (Cobb 2006). Further, programs such as the Enterprise Development Program have been implemented across the country to build the local capacity and integrate communities into tourism development activities. Such programs ensure the mobilization of the community through seminars, debates, regional workshops and participatory trainings (Ruhiu 2007). Further the local communities are provided advisory services on product development and market access which helps strengthen growth of their enterprises (Cobb 2006). This has been driven by the realization of the potential of community based tourism to reduce poverty, and multiplier effects of the tourism sector as a whole in driving the economy. Perhaps another difference that can be pointed between CBT in Kenya and Uganda relates to the coastal attraction. While community based ecotourism ventures along the coastal region form the flourishing tourism sector in Kenya, Uganda being a landlocked country does not have any coastal attractions (Mulinda & Wilbert 2009). Coastal attraction features provides Kenya with an edge over Uganda(Wilbert, 2009). Beaches, sun-basking, the aquatic life at the coast and rich culture that includes performances, dances and the contemporary ways of living of the coastal people make it a popular tourist destination. Another difference is related to the marketing and promotion of CBT activities. Unlike Uganda, Kenya has invested more in marketing and promotion of tourism activities. For example, last year, Kenya budgeted $34 million dollars for tourism promotion and marketing. This is in stark contrast with Uganda’s budget of only $90,000 (UIA 2014). While this may be seen as impacting on development in the overall sector , community based enterprises are also affected in terms of the number of visits and revenues generated from sale of products. Uganda’s funding of the sector remains very low despite the potential of becoming a multi-billion sector. The slow pace of tourism in Uganda can be attributed to the lack of identity at the international level. While Kenya has promoted their visibility at the international level, Uganda is still lagging behind in terms of investing fully in promotion of tourism. While CBT in Kenya has grown much faster than Uganda, it has not developed as expected owing to many factors including in adequate funds for marketing and promoting tourism, transparency and governance issues, lack of marketing skills and absence of a system for ensuring equitable sharing of the opportunities and benefits accruing from tourism activities. For example, while Kenya’s budget for promotion of tourism may be $34 million, the Kenya Tourism Board receives only $6 million. Further, funding remains a major problem in both Kenya and Uganda. Given that these countries are still developing, there are very limited financial resources for supporting CBTEs. Even when these finances are incorporated in government budgets, they are often inadequate to support CBT developments (Ruhiu, 2007). As a result, community based tourism has often relied on foreign investment which may lead to the rise of neo-colonial structures discussed above as foreign investors seek control of tourism resources. Whereas Kenya may be ahead of Uganda in terms of pro-tourism development, it is still far from being developed as it is still prone to failures resulting from limited funding, poor infrastructure development, lack of formal education, political influences and inadequate representation of the locals. CBT in Kenya still remains very low with lack of local representation in the workforce. While the industry may boast of over 500,000 jobs, the employment opportunities remain inequitably distributed (Cheung 2012). Most of the local communities are missing out on employment opportunities as these are being taken over by the outside workforce. According to a survey conducted by Bruyere et al. (2009), 64% of the local community members found the employment opportunities to be insufficient. Kenya’s community based approach to tourism development is still largely skewed to the interest of tourism (hotels, hospitality and service) with limited representation of the locals. There are also political considerations to take into account. For example, a neo-colonial structure has emerged within the industry as some foreign investors seek control of tourism resources. (Cheung 2012). This has resulted in social and political disempowerment of the locals as neo-colonial structures have made it increasingly difficult for them to participate in the planning and decision making process. Although there exist more opportunities for local entrepreneurs to invest in the industry compared to Uganda especially given the ongoing development agenda that encourages of the growth SMEs, a divide of power continues to disengage and disempower the local communities. The majority of Kenyans continue to live below the poverty line with the highest incidence of poverty occurring in tourist destination areas. 5. Conclusion The above has looked at the notion of CBT with particular reference to the situation in Kenya and Uganda. From the analysis, both countries seem to share certain commonalities and differences as well. For example, community based tourism is embraced in both countries and recognized as an important tool for reducing poverty. Also, both countries are heavily reliant on donor funding. Moreover, the locals in both countries have experienced improvement in their livelihoods through employment opportunities, and access to school and health facilities. Further, Pro-poor tourism has assisted women with bead making through provision of platform for selling products. Both countries have also seen improvement in their environments which has resulted due to community development projects and conservation ventures. In Uganda, programs such as the National Wetlands Program and Semliki conservation project have established village by-laws governing the use of wetlands. Community wildlife and conser vation ventures in Kenya have played a major role towards protecting the environment and preserving wildlife. There are also sharp differences in CBT developments in both countries. For example, community based tourism activities in Uganda are limited to areas lying within or along the national parks and forest reserves. In stark contrast, community based tourism in Kenya is promoted at the national level as evident with the opening up of new areas of possibility such as sports tourism, eco tourism, adventure safaris, horse and camel safaris, walk tours, and cultural tourism. Another difference is that Uganda being a landlocked country does not have coastal attractions. On the other hand, beaches, sun-basking, the aquatic life at the Kenyan coast and rich culture that includes performances, dances and the contemporary ways of living of the coastal people make it a popular tourist destination. Additionally, Kenya has invested more in marketing and promotion of tourism activities comp ared to Uganda. While Kenya has promoted their visibility at the international level, Uganda is still lagging behind in terms of investing fully in promotion of tourism. While CBT in Kenya has grown much faster than Uganda, it has not developed as expected owing to many factors including in adequate funds for marketing and promoting tourism, transparency and governance issues, lack of marketing skills and absence of a system for ensuring equitable sharing of the opportunities and benefits accruing from tourism activities. Nonetheless, the future of tourism in both these two countries lies in community based tourism. The potential of CBT to reduce poverty and make the sector sustainable is enormous. Not only can CBT help in enhancing biodiversity conservation but it can also generate income and bring economic growth to the local communities. 6. References Adams, W. and Infield, M. 2013. Community conservation at mgahinga gorilla national park, uganda. Institute for Development Policy and Management, Manchester. Akama, J. and Starry, P., 2000. Cultural tourism in Africa: strategies for new millennium.Africa International Conference, Mombasa, Kenya. Beeton, S (2006) Community Development Through Tourism, USA: Landlinks Press Bruyere, B.L., Beh, A.W. and Lelengula, G., 2009. ‘Differences in perceptions of communication, tourism benefits, and management issues in a protected area of rural Kenya’. Environmental Management, 43, 49-59 Butler, R., Hall, C.M. & Jenkins, J. 1998. ‘Continuity and change in rural tourism: Introduction’ in R. Butler, C.M. Hall and J. Jenkins (eds) Tourism and Recreation in Rural Areas (New York: Wiley) 3-17 Cheung, H., 2012.Tourism in kenya’s national parks: a cost-benefit analysis. Kenya Giampiccoli, A. and Kalis, J.H., 2012. Community-based tourism and local culture: the case of the amaMpondo, vol. 10 (1), pp. 173-188 Frederic, T., Grace, B, and Celestine, k. 2011. Opportunity study: Uganda inclusive tourism. Jonathan, T. B., Nelly, J., and Nehemia, K., 2013. ‘An examination of Kenya’s outbound tourism to ugandan destinations: towards re-thinking Kenya’s tourism product development and marketing’. Journal of Economics and Sustainable Development 4(8). Kibicho, W., 2004. Community tourism: a lesson from Kenya’s coastal region. Journal of Vacation Marketing, Vol. 10, pp.33-42 Korir, J, Muchiri, J and Kamwea, J 2013. ‘Wildlife Based Tourism, Ecology and Sustainability of Protected Areas in Kenya’ Journal of Natural Sciences Research 3:3, Koster, R.L., 2007.An evaluation of community based tourism development: how theory intersects practice. Priarie Perspectives Lopez-Guzman, T. and Sanchez-Canizares, S. and Pavon, V., 2011.‘Community based tourism in developing countries: a case study’. An Internation al Multidisciplinary Journal of Tourism, vol.6 (1), pp 69-84 Mearns, K., 2003. Commmunity based tourism. The key to empowering the Sankuyo community in Botswana. Africa Insight, 33:29-32 Mujuni C.N., K. N., P. van de Kop, A. Baldascini and S. Grouwels 1., 2003. ‘Community-based forest enterprise development for improved livelihoods and biodiversity conservation: A case study from bwindi world heritage site, uganda’. In World Forestry Congress. Canada, Quebec City. Ndivo RM, Waudo, J N and Waswa F 2012. ‘Examining Kenya’s Tourist Destinations’ Appeal: the Perspectives of Domestic Tourism Market.’. Journal of Tourism and Hospitality, 1, 103. OECD 2012.Tourism Trends and Policies, OECD Publishing, UK Paul, A. 2004. Tourism in a rural Ugandan village: impacts, local meaning and implications for development. Pergamon, New York. Pearce, D. 1992 ‘Alternative tourism: concepts, classifications and questions’, in Smith, V.L. and Eadington, W. R., (eds), Tourism Alternatives: Potentials and Problems in theDevelopment of Tourism, New York: John Wiley and Sons pp. 18–30. Rihiu, J.M., 2007. Capital for investing in community based tourism (CBT) – grants vs loans. National Ecotourism Conference Sanchez-Canizares, T. and Lopez_GuzmanL, 2013. Community – based tourism in developing countries: A case study Tourismos: An International Multidisciplinary Journal Of Tourism 6(1):69-84. Scheyvens, R., 2002. Tourism for development empowering community. Harlow: Prentice Hall Suansri, P., 2003. Community based tourism handbook.Responsible ecological social tour – REST project, Thailand. Tasci, A.D., semrad, K.J. and yilmaz, S., 2013. Community based tourism: finding the equilibrium in the COMCEC context setting the pathway for the future. Tang, K. 2013. Community based tourism. Singapore. Tefler, D.J., 2009. ‘Development studies and tourism’. In: Jamal, T. and Robinson, M. (eds). The SAGE ha ndbook of tourism studies, London: SAGE Publications Zeppel, H. 2006. Indigenous Ecotourism: Sustainable Development and Management. CABI.

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Social net working in the uk - Essay Example This paper seeks to discuss social net working in the UK. Individual in United Kingdom use BBC Suffolk website to interact with other people where they use it alongside a traditional output known as BBC Radio. In most cases, communication among the youth is done through social networking which has made the means of communication cheaper compared with other means. Since the use of social networking websites is a valuable mode of communication globally, groups, feeds and other contents are being used by BBC Suffolk and its programmes. For one to view BBC Suffolk groups one must be a member of facebook and BBC Suffolk so that he or she can interact with others in different social networking. Facebook has more than 150 million users around the world. The use of social networking like facebook gives an individual a chance to communicate with friends from each corner of the world1. Additionally, peer counseling and sharing of related problems are posted in the site where peers can help one another to solve the problems facing them. Individuals who are members of facebook can as well join groups dedicated to musicians where one can view the recent released albums or campaigns which are being held or to be started. This is a social networking site that is mainly used by the UK young people since it is associated with music and especially the one that is current in the market. The musicians use the site to post their current album released and this help them to market them and advertise their music globally. BBC Suffolk is a site that is used by those who want to support the musicians around the United Kingdom where any kind of support is given. Update of what one is doing is posted in the Twitter where the numbers of characters are limited to 140 which are then linked to other sites which make it interesting. Videos can also be linked in the Twitter handle which can be posted and later friends will view them making it possible to communicate

The Role Of Systems And Simulation Research Paper

The Role Of Systems And Simulation - Research Paper Example The process management is recognized to be one of the most important tools for developing better operational management as well as a performance of a company.   In order to maintain the business process in a smooth manner, every company has developed its own process. Most of the companies have built their own process charts such as producing the widget, paying vendor administering payroll and much more. Contextually, it is evident that Wal-Mart has also played a vital role in preparing its own process management. The process name six sigma has been regarded as a more critical organizational process that includes a large number of operational activities of the organizations has been implemented within the operations of Wal-Mart (Grewal, 1-3).   It is notable that the concept of process management is recognized to be one of the most important concepts of managing the operations of the business in the most efficient manner. Through the implication of six sigma techniques of process management, the company has been able to reduce its additional cost within the business. It will be worth mentioning that the strategy of sig sigma is recognized to be more efficient in reducing extra cost of the company. In this regard, the company has decided to implement the six sigma process within the logistics department.   Apparently, it can be stated that Wal-Mart is recognized to be successful in establishing sustainable supply chain management with the help of a new concept name six sigma (Cengage Learning 1-2).  

Principles of Marketing Essay Example | Topics and Well Written Essays - 1500 words

Principles of Marketing - Essay Example The formulation of a long term marketing plan ensures that the resort remains a popular tourist destination and highly competitive. In 2007, Alton Towers joined Merlin Entertainment Group which is the second largest and the most dynamic tourist attraction (Fyall et al., 2008). Merlin manages tourist attractions, hotels and holiday villages in different parts of the world. The growth strategy involves the continuous investment in all the attractions to improve quality of the customer service and experience. The company also aims to develop the theme parks into short break resort destinations with the inclusion of accommodation options and more quality entertainment along the Alton Tower model. Alton Towers is the ninth most visited theme park in Europe and the most popular park in the UK. The park attracts approximately 2.7 million visitors annually (Alton Towers, 2010). The resort has developed a 10 year plan to remain a favorite tourist destination and to ensure its competitiveness. Upon finalization, the plan should be handed over to the Council to notify them about the review process for the production of a n ew (SPD) Supplementary Planning Document for Alton Towers. Alton Towers should consider its environment before choosing the marketing principles to apply. The internal environment is composed of the staff, office technology and the departments in the organizations. The micro environment is composed of the customers, distributors and suppliers while the macro environments is composed of the Political (Legal) forces, Economic, Socio-cultural and Technological forces which are popularly referred to as PEST (Hooley et al., 2004). These factors play an essential role in the creation of a marketing strategy. The success of an organization goes beyond the PEST analysis since it should consider the strengths, weaknesses, opportunities and threats which are referred to as the SWOT analysis. The resort has positioned itself

Does Dr Who tell us about science and technology or the Britain of its Essay

Does Dr Who tell us about science and technology or the Britain of its time Discuss - Essay Example Moreover, the era gave birth to television, which changed many aspects of the British society (Campbell). During these years of technological advancements many other elements were also becoming popular in Britain. People were fascinated with TV shows and greatly appreciated them. One of the most famous TV shows of all times is Doctor Who broadcasted on BBC, the first story of the series began on 23 November 1963 (Hyland). The caste of Doctor Who is fascinating and interesting, the science fiction elements in the series is its major attraction. the first episode of ‘Unearthly Child’, Doctor Who has been at the heart of its viewers (Britton). This paper aims to analyze whether Doctor Who tells us more about science and fiction or Britain of that time. Moreover, the paper will discuss some of the many technological elements from Doctor Who. Thesis Statement: Doctor Who is a science fiction show which was first presented in 1963. The show has presented many technological ele ments which are either inevitably possible or impossible. It has merged science fiction with science fantasy and has grasped what was going on in the British society of that particular time. Background The longest running British science fiction series, Doctor Who first began in 1963. The series is based on about 800 episodes that have been broadcasted periodically, and celebrates its 50 years anniversary. The theme of the series revolves around the science fiction and science fantasy, as some of the critics identify it as science fiction where as some believe it’s a science fiction. Doctor Who portrays some of the most amazing and fascinating adventures for humans. The series incorporates elements of science and technology, through illusions, imaginary narrative, through its unique representation of character and events, like Aliens, Cyber men, Sonic Screwdrivers etc. The entries story of the series focuses on the concept of time travel that allows the characters of the seri es to travel anywhere, even in the past and future. Doctor Who presents advanced science, technology and fiction in a very innovative manner, attracting several viewers around the world. Some believe that the ideas in the series are beyond human imagination, whereas some ideas seemed quite reasonable with the foreseeable science and are believed to be possible. Another chief element, which contributed towards the longevity of the show, is that it has effectively portrayed the fact of technological development and transformation of British society. Doctor Who certainly highlights science and fiction, which has tapped fear and curiosity among the viewers with the help of strong imaginary narratives and comments of the technological issues. The argument Doctor Who is undoubtedly a brilliant piece of science and fiction, but the need is to understand whether the show has actually tried to portray science fiction or science fantasy and whether it has reflected the Britain of that period. The science and technology that has been showed in Doctor Who is certainly beyond ones imagination (Campbell). Doctor Who is a science fiction series and viewers enjoy watching it as it is fun (Mckee). It gives the viewer an escape from their routine life and exhausted schedule so that they can fire up their imagination with some extra imaginary story. Some of the concepts in the serieshave become a part of reality whereas some are

Out sourcing man power strategy Research Paper Example | Topics and Well Written Essays - 3500 words

Out sourcing man power strategy - Research Paper Example Finally, I give high regards to my parents who assisted me financially and in advisory terms. This inquiry is directed at analyzing the current state of the HR outsourcing market in Borouge and the trends that are dominant in the same. Today, in this epoch of globalization, there is a high level of competition in all arenas (Anikin & IL, 2009). One really significant trend in the recent times has been the maturation of human resource outsourcing. The dynamic nature of the market and global competitive pressures in the organizations are inducing the organizations to concentrate on their burden clientele (Baca, 2009). Many organizations are rapidly identifying that they cannot provide everything to all consumers. For that reason, many companies are opting to outsource some of their HR for specific purposes in the organization (Coase, 2005, pp. 2-3). Where they let somebody else manage the rest in a more effective and cost-effective fashion. As a consequence, human resources outsourcing is becoming more and more dominant. The number of organizations outsourcing HR roles are con tinuously growing, and the scope of outsourced HR activities continues to inflate (Allen, et al., 2003, pp. 1-2). Outsourcing has become a normal response in the management and technology resources that encourages strategic measure in enhancing quality services and reduction of cost of running businesses effectively (Baca, 2009). Companies where organizations outsource their HR function hires professionals who have the knowledge and resources expected for the specifically fulfil the client’s needs partially or wholly of a clients’ human resources role, leaving the customer to streamline their internal operations and focus on getting profit in their burden clientele (Coase, 2005). With the increased globalization, outsourcing has become a crucial aspect in efficient administration of a business.

Legitimacy Crisis Essay Example for Free

Legitimacy Crisis Essay I know that plagiarism is wrong. Plagiarism is to use another’s work and pretend that it is one’s own. 2. I have used the â€Å"Harvard† convention for citation and referencing. Each contribution to, and quotation in, this essay/report/project from the work(s) of other people has been attributed, and has been cited and referenced. 3. This essay/report/project is my own work. 4. I have not allowed, and will not allow, anyone to copy my work with the intention of passing it off as his or her own work. Signature: Jvanrooyn Word Count: 308 excluding in-text citations Jihad Van Rooyen. Introduction to Politics, Tutorial Group #11 12 March 2014 Assignment #3 Legitimacy Crisis Revolutions result in a ubiquitous change in society. This essay ascertains themes throwing legitimacy into crisis through an evaluation of the sources of the French, Russian and Iranian revolutions. As stipulated by Max Weber in his legitimacy crisis ideals, society functions on a moral relationship between the ruler and the ruled (Hague, Harrop Breslin, 1992:19). Non-acceptance by the ruled would result in a regime losing its legitimacy and pave way for a political break-down. This is emphasized by John Locke in the Social Contract, where he deemed that society has no moral obligation to the regime when the contract is breached (Spragens, 1997:34). Thus, legitimacy certifies political stability and must be lost before any revolution can transpire. The French Revolution was based on the constitutional and monetary crises, which lead to instability. Thus through the failure of the regime to meet demands, legitimacy was lost and a secular revolution followed (Hague, Harrop Breslin, 1992:72). Relative deprivation was an immediate by-factor, clearly evident through the revolts against the structural conditions, which ultimately abolished absolute monarchy in France (Hague, Harrop Breslin, 1992:74). Similarly to the French revolution, the Russian overthrowing of the old political system proved easier than consolidating power (Hague, Harrop Breslin, 1992:79), especially after both revolutions were influenced by the regime’s spending on warfare. Both revolutions involved peasants uprising, owing to hunger, poverty and social inequality. The Tsar was not able to meet the demands of the citizens and in so doing lost credibility. In contrast, Iran’s old regime had not been ravaged by warfare nor had it suffered monetary failure, prior to its revolution (Hague, Harrop Breslin, 1992:79). The revolution was a religious affair against the regime. Like the previous two revolutions, expectations amongst the people were not met by the regime. In conclusion, when a regime doesn’t fulfill its moral obligation to the people or if they do not meet the expectation of the citizens, relative deprivation could occur which could ultimately result in illegitimacy and a revolution.

A social network services

A social network services Introduction Asocial network servicefocuses on buildingonline communitiesof people who share interests and activities of others. Most social network services areweb basedand provide a variety of ways for users to interact, such ase-mailand instantservices. Boyd (2007) What is Social Networking? Social Networking is the forming of persons into specific group. It is a worldwide community while networks achievable human beings in particular place to some other places through the internet, since internet overflowing those people are looking to other peoples sharing the information of relations, religious, experience of work, etc., Most social network services such as chat, message, email, video, video chat, file sharing, blogging, discussion group and so on. What are the uses of Social Networks? It offers some benefits to organization members. Learning of supports: In essence of social networking require as a less controlled, user environment, which challenged convention view of the attractive management of learning and teaching. The most conventional learning environment is objectivist in life and highly planned in term of student development and selection. While here are best points on other side of the contest to essential difference in academic position. Support for members of an organization: Social networks help the improvement of communities of practice, It can be used all folks of an organization, moreover people not involved in working with students. Effort of information and applications: In the case of many social networking service can be provided to assistance of users by simplify to access other tools and applications. Common interface: A potential assistance of social networks could be the common interfaces which span works. However, in addition of barrier to those who wish include the severe limits between work and social activities. Examples of Social Networking Services: There are several sites of social networking sites Facebook: Facebook is a social networking Web site that allows people to communicate with their friends and exchange information. In May 2007 Facebook launched the Facebook Platform which provides a framework for developers to create applications that interact with core Facebook features. [3] MySpace: MySpace is a social networking Web site offering an interactive, user-submitted network of friends, personal profiles, blogs and groups, commonly used for sharing photos, music and videos. MySpace is currently the worlds sixth most popular English-language Web site. [4] LinkedIn: LinkedIn is a business-oriented social networking site. It is an interconnected network of professional all over the world. In the website have more than 50 million members in excess of 200 countries around the world. [5] Bebo: Bebo is a most popular site in UK. It has a more than 25 million members in this site, the journalist, musicians and writers are using this website interrelation to the people. [6] Ryze: Another business oriented site called as Ryze. It is a first online networking site; the people who can expand the business networks meeting such as new people to join business, industries, safety, and geographic areas. [7] What are the Advantages and Disadvantage of Social Networking? Social networking is a modern creation to facilitate the internet unmoving reputation through the people. Present community to stand the collective of networking site even as advantage and also disadvantage. Here are the some advantages Economical It is free cost online networking in favor of together with personal and business peoples. Personal thing is quite easy for everyone; the business works understand the real cost, size, difficulty, etc. Although social networking site survey of target markets and potential customers among a small amount of clicks in addition to keystrokes, adding an increase of the advertisement as well as strategies. Builds Credibility Individual appearance of social networking to make easily to find the people of corporate social networking. You can develop the customer satisfaction to connect both personal and professional level. To join with corporate social networking to form a good contacts with new people from your company. You able to good references and build a reputation with social networking. It is a tremendous to get a network in your field or trade. [8] Connections I do have friends who have many other friends whom I dont know. There is prospective of such a common situation. In the social networking sites to very helpful for students, many students organizations contain particular social networks designed to help students connect. E.g. MySpace, bebo, etc. [9] To Share Multiple Points of View protected folks could not understand a lot of different points of the people who have possible to hold extremely different way of thinking, although to learn the diversity and experience to various points of view. Most of them can use mobile social networking tools to along with friends and makestrategyon the fly. Here are the some Disadvantages Lack of Anonymity The majority of people would be careful, but individual to be firm at all time. They are putting information about our name, location, and several types of information that we may not want to let others know, since the people know how to exact to find the way. Scams and Harassment There is some illegal plan for making money failure of security together with personal and business level. While several sites apply to certain dealings of these cases of irritation, cyber-stalking, online scams, as well as personality. Time Consuming The explanation of social networking supposed to be entertainment sites, whether the people are doing its kick or click in the order of business purposes. Some people assumed it is not kind of thing it would be a waste of time. At the present there is something in actual fact not anything without a mark, other than type of networking should not be actually to be much regarding of your safety. As long as we go restricted of make a big mistakes, that time as good quality. On one occasion to understand the advantages and disadvantages of social networking, then you can travel through without fail. [10] Conclusion Social networking is great convenience of people. Easily connect with friends, reconnect with old friends with the few button clicks. However, like all things have well with some people time to spend the internet. As well as the people getting the internet to community, chatting through instant messenger. It becomes a safety and security issues. Online social networking sites agree to user that a constant site and making a explicit or improper content is removed. Some requirement of social networks makes a risky situation of children and young adult. Even though in future will be a technologies surrounding of social networking. References Boyd, Danah, Ellison and Nicole (2007) Social Network Sites: Definition,Journal of Computer-Mediated Communication 8:17 PM 11/14/2009 Social networking, Available: http://www.whatissocialnetworking.com/ Learning of supports, Available: http://thejournal.com/Articles/2008/05/21/Social-Networking-Learning-Theory-in-Action.aspx?Page=3 [8:00 PM 11/14/2009] Facebook, Wikipedia, Available: http://en.wikipedia.org/wiki/Facebook MySpace, Wikipedia, Available: http://en.wikipedia.org/wiki/Myspace LinkedIn, Wikipedia, Available: http://en.wikipedia.org/wiki/LinkedIn Bebo, Wikipedia, Available: http://en.wikipedia.org/wiki/Bebo Ryze, Wikipedia, Available: http://en.wikipedia.org/wiki/Ryze The Advantages of Social Networking, Available: http://www.everyday-wisdom.com/social-networking.html [8:17 PM 11/14/2009] Connections, Available: http://www.life123.com/parenting/tweens-teens/social-networking/advantages-of-social-networking.shtml 8:17 PM 11/14/2009 Disadvantages of Social Networking, Available: http://www.everyday-wisdom.com/social-networking.html [8:17 PM 11/14/2009]

The Joys of Planning a Wedding Essay -- Wedding Planners Marriage Essa

The Joys of Planning a Wedding The verdict is in - I will only get married once. I’ve always felt that in my heart, but the experience of planning my wedding removed any doubts that I may have had. The process of planning a wedding is so extensive and involved that once the process has started, there is no turning back. You will be completely absorbed in the ins and outs of the entire day from that point forward. While the main focal point should be the actual ceremony uniting the man and woman, that is rarely the case. There are so many details to work out from the color scheme to the reception menu that you have no option but to stay completely focused. Anyone that has been involved in planning a wedding before will tell you that once you get the â€Å"big four† out of the way you’re almost home free. The â€Å"big four† in the wedding planning world are: deciding where the ceremony will be held, choosing a reception venue, deciding which dresses will be worn, and planning the ho neymoon. Deciding where the ceremony will be held is one of the first things you need to do when planning a wedding. You need to decide first and foremost whether or not you want a church wedding. If you are a member of a particular church, your first instinct will be to hold the wedding at your church. You have to be certain that the church will be able to accommodate the number of guests you’ll be inviting to attend. Does the church have any specific rules against music or decorations? You do...

Human Nature :: essays papers

Human Nature In â€Å"Shooting an Elephant† , human nature is the same as it would be in just about any story that we would read or hear. Human nature is no different in Burma than anywhere else in the world. In this story we see different degrees of human nature, from completely normal to in some cases extreme. This essay is mainly focused on peer pressure. â€Å"Should I shoot the elephant or should I not?† or â€Å"Will I lose face with these people if I don’t shoot the elephant?† In this essay, I will discuss the traits of the different characters. Orwell was the kind of person that did not have a very high self-esteem. He did not have his ducks in a row, so to speak. I don’t think that Orwell was one to function under pressure. He would give in to what he thought the people of Burma wanted, not to what he wanted. But secretly inside he hated the environment in which he lived, he hated the imperialistic government in which resided in Burma. He hated the residents of Burma. He stated that he would love to stick his bayonette into the stomach of a Buddhist priest. He felt all of this hatred for the people around him, but yet he felt as if he had to go along with everything and everyone else just to live in harmony. As Orwell was summoned to the â€Å"tiny incident† as he called it, taking care of the elephant situation, he found that the residents of the village did not know exactly what was going on with the elephant until they found out that there could possibly be a shooting, or at least some excitement. For example, he asked some of the villagers if they had seen the elephant. Some said that the elephant went to the left and some said that the elephant went to the right and some did not even know about the elephant at all. The people seemed to be only out for themselves. They were not interested in the situation until they found out that they might be able to benefit from it. This is typical of people in any culture, especially in present times. In the last paragraph of Orwell’s essay, there had been two men that had feelings on the shooting of the elephant.

Cyber Bullying Essay Essay

Bullying. It is something everyone has heard of, witnessed or experienced. When the word â€Å"bullying† is heard, many people think of the classic school kid being picked on at lunch, in a physical and/or verbal manner. Although verbal and physical bullying still occur, there is a form of bullying that has grown to be quite prominent, due to the vast use of technology in this generation. This form of bullying is known as; cyber bullying. Cyber bullying is a deliberately harmful, aggressive, and repetitive form of bullying through the Internet and related technology. Cyber bullying is just as harmful as physical or verbal bullying, and should be taken just as seriously. Cyber bullying negatively impacts children in many ways. The most prominent effects of cyber bullying are the toll it can take psychologically, and emotionally on the people involved. These effects are exacerbated by the current popularity of social media. The psychological effects of cyber bullying are obvious , and in some way more severe than physical bullying. The psychological effect of cyber bullying can be more severe because there is often no escape from one’s tormentors. Unlike the typical bullying thats takes place at school or on the bus, cyber bullying follows students around 24/7. With technology like smartphones, the repetitive harassment is nearly impossible to escape. In many cases of cyber bullying, it begins with one bully but ends with many. The internet is open to everyone. Once something is out there, for example a picture, it can be sent to phones everywhere and is essentially on the Internet forever. With one click of a button, information can instantly spread like wildfire. It is psychologically damaging to know that even if that picture, those words, that rumor, are deleted, it is never actually gone. Although cyber bullying isn’t necessarily as public as a punch at school would be, it can often be easily hidden by the victim. If there are no bruises or bumps, it is hard for any family or friend to see what the targeted person may be suffering with inside. Fifty-two percent of cyberbully victims never tell anyone about what is going on. Isolation, is often where internalizing problems leads. Cyber bullying becomes a battle not only with the bullies, but also a battle with oneself. Social media has become the main way of communication. Many people have at least one of these sites available to them: Twitter, Facebook, YouTube, Tumblr. It is no secret that there are bullies who target certain, or any people online. Thirty-percent of online  teens say they have been targets of menacing and/or hurtful online activities; and 88 percent of online teens say they have witnessed someone being mean or cruel to someone else on a social network. Most bullies have the power online; there is really no way to be stopped through a computer screen. Especially with the â€Å"anonymous† option, harassing the target can be the easiest thing to do, because the power the bully feels; being unknown, and knowing there is little chance of any consequences. Eighty percent of teens use their cell phones regularly making it the most common form of technology used. Many teens are willing to take the risk of being cyber bullied, not because they don’t think it is serious, but because social media affects one’s social status. In a world where almost every teen has some sort of social media, it can be hard to feel â€Å"normal† or involved if you don’t have one too. As a result of most o f this generation communicating online, cyber bullying has become more popular and dangerous. Much like physical bullying, cyber bullying has a huge emotional burden. Being a victim of cyber bullying often leads to depression. Since in most cases, teenagers cannot escape the relentless harassment, it can lead to feeling hopeless and isolated. When hundreds of people, some you may or may not know, begin harassing you, it can feel like the entire world is against you. Being harassed constantly can slowly eat away at the victim. Self esteem is what gets damaged most. Being degraded, made fun of, or accused of actions that never happened can lead to the victim eventually believing the rumors. Lastly, an emotional struggle triggered by cyber bullying is anxiety. It becomes a constant fear, every time you use your social media, you wonder what may be waiting for you. The worst part about cyber bullying is it follows you everywhere; at home, at school, etc. While cyber bullying can affect a person at any time or place, it often comes to head at school. If there are rumors, or a private picture circulating for everyone at school to see, simply attending school can provoke anxiety. In many cases, victims of cyber bullying have such bad anxiety about facing schoolmates in this situation, that they stop going to school. It is time that we as as a society treat cyber bullying just as we would physical bullying. It may not leave a scar or bruise visibly on one’s body, but it leaves an emotional wound that may never completely heal. Cyber bullying can take place anytime, anywhere, and creates psychological and emotional burdens for the victim.  Since technology is becoming more and more evident in this generation and will only become more prevelant in the future, this would be the time to act.

Navajo Religion

Curiously, the Navajo peoples have no word In their language that can be directly translated to â€Å"religion†, In the way we perceive It (Woman 536). Rather, the term ‘religion' refers to their world view. Anthropologists define religion as a set of attitudes, beliefs, and practices dealing with supernatural powers. The Navajo do not divide the secular from the holy; life and religion are one in the same. The Dine religion has a deep connection with the supernatural. Gods, spirits, monsters, and other supernatural beings play a large part of their everyday life.Din Dinned, or the â€Å"Holy People†, are viewed as gods by the Navajo. The term used for the deities does not Imply that these are virtuous gods, but that they are powerful and dangerous. It is considered the duty of humans to preserve a harmonious connection with the Holy People (Woman 539). The Navajo are polytheistic; however the Changing Woman is possibly the most cherished deity. Her twin sons, Mon ster Slayer and Born For Water, their father the Sun, and her make up some sort of â€Å"Holy Family† which is often seen in myth and ritual (Woman 539).There can be confusion about which Din Dinned appears In certain myths and rituals because different Ames are occasionally used to represent the same deity (Woman 539), The Navajo have a heavy sense of animism, which is the belief in spirits. Nearly everything in the universe contains a human-like inner form Ones). This inner-form is very similar to the concept of a soul. Aside from natural phenomena, such as mountains and plants, material objects such as arrowheads can even contain this in-lying â€Å"soul† (Woman 539). However, death and ghosts are greatly feared In their society (Nonfood-Grimm 1801).The dead are burled promptly without any accompaniment of a public ceremony. (Adams 253). To keep the deceased from returning, all of their possessions would be destroyed or rendered useless. This would be done so person al belongings would follow the deceased into the afterlife, therefore, keeping them happy and giving them no reason to return (Inform-Grimm 1801 ). The Holy People and spirits are central to Navajo life. Monsters plague their peripheral existence. Monsters may help explain a disastrous situation every now and then, such as The Monster Who Kicks People Down the Cliff, but It Is not something one would come across every day.Because of the Navajo everyday connection with the preternatural, myth plays an important role in day-to-day activities. Most myths discuss how things came to be, such as how humans came about. The creation myth of the Navajo describes the four worlds the Din Dinned passed through before creating the first earth surface people, known as First Man and First Woman, in the fifth world (Martinez 35). Myth also has a direct link to ceremonies and rituals the Navajo perform. The Changing Woman influences a very important rite of passage for girls who reach puberty. It is said the Changing Woman grew from infancy to maturity in four days.To honor this myth, upon a girl's first menstruation cycle, she partakes in a ritual known as the Kendal. The Kendal is a four day ceremony which begins with a blessings chant, and finishes with the young woman blessing a number of small children by lifting them, and killings their heads. TLS Is done so â€Å"their bodies grow There are few ceremonies, however, that mark a life-change. The Navajo see seven stages in life, however only three are recognized through ceremony. The first is at birth, where both the mother and child are washed, chanted over and sprinkled tit pollen to protect them from evil.The second applies only to girls, as it is the puberty ceremony discussed above. There is no puberty ceremony for boys. The third would be marriage. A brief blessings chant would take place, followed by a feast for family and friends (Inform-Grimm 1800). Most Navajo ceremonies and rituals focus on restoring â€Å"h ¶GHz ¶Ã¢â‚¬  or universal balance and harmony Cones 337). This is most often done through ceremonials. Ceremonies are often held in a Hogan (a house, or building) in a group setting (Woman 537). Ceremonies can employ multiple types of ritual.Offerings are sometimes made to the Din Dinned to attract attention and obligate their assistance. Another common practice is a sort of a sacred meal. Pollen is often consumed in addition to prayer. This is because pollen is personified as Corn Pollen Boy and his cohort Corn Beetle Girl, who together represent fertility, life, and happiness. Perhaps the most common form of ritual found in the Navajo religion is prayer. Prayer is often seen in the form of chants, and songs (Woman 541). All of these rituals can be combined to maximize the chance of contact with the supernatural.The Navajo interesting view of the inner-form make the sacred aspect of religion interesting. Because nearly all things in the universe have this human-like inner form, whether it be one of the four cardinal directions or a Din dinned, there is no clear separation of sacred and profane (Woman 539). As mentioned earlier, the main duty of man is to preserve a harmonious relationship with the Holy People. A person may rely on this relationship for healing, or for good fortune in the future. Ceremonies are rarely ever done in a private setting. Even in a girl's Kendal Rooney, the various segments are done with others.During the Kendal, it is customary for the young woman to race, in honor of the run the Changing Woman took towards the dawn. The subject of the ceremony races with other girls her age (Inform-Grimm 1800). The beliefs of the Navajo also easily fulfill both the intellectual and psychological needs of the society. Because of their strong belief in the supernatural, natural phenomena can easily be explained. When one falls ill, it can often be blamed upon a ghost or possibly improper contact with a Din Dinned. This is a very simple explanati on for why negative experiences may occur.One can find relief from these tragedies by expecting a cure from a ceremony (Woman 537). The major religious practitioner in the Dine society is called a singer. Singers are full time specialists who dedicate themselves to learning one or two major chanteys (Woman 538). A chantey is essentially a ceremony. However, the ceremonies performed by the Navajo are often long and drawn out, lasting two, three, five, or even nine nights (Adams 252). Singers spend years studying a single chantey with an older expert, who receives gifts from their apprentices as payment.Singers hold very high status and sometimes act as informal leaders in their communities (Woman 538). Because they are able to have full-time religious specialists, the Navajo religion religious practitioners, as well as group prayer, which is all present with the Dine. Religion plays a key role in the everyday life of the Navajo peoples. Their world view is evident through their belie fs and actions. The Dine views provide the society with important values and ideas. The use of religion by the Navajo gives an example of how a society can be positively affected by a unique belief system.

Porsche Cayenne

JOHN DEIGHTON JILL AVERY JEFFREY FEAR op yo Porsche: The Cayenne Launch In March 2003 the Porsche brand faced a challenge without precedent in 55 years. Since the e launch of the Porsche 356 in 1948, the brand had stood for expensive, high-performance sports cars. Its designs, varying little over the decades, formed and then came to reflect the notion of a classic n sports car. It was a connoisseur’s racing vehicle, engineered for speed and maneuverability. But it was also a rebel’s car; the car James Dean died in and that Tom Cruise ditched in the motion picture Risky Business.Always and everywhere, Porsches were sports cars. tC 2003 marked the end of this single-minded focus. In March of that year, it launched a sports utility vehicle (SUV), the Porsche Cayenne. The extension of the brand to a new product category posed many challenges. Looking ahead, the company had to think about how to position the Cayenne while protecting the Porsche parent brand. How much and in what ways would the Cayenne change Porsche’s image and brand identity? The company also had to decide what to do about the on oing consumer-to-consumer ng conversations in online Porsche brand communities.Some argued that online brand communities were an important source of consumer research. Others argued that the consumers who participated in the online conversations held views more extreme than the average consumer. Were they of any value in deciphering the market’s renegotiation of Porsche’s brand meaning? n No The Legacya Do Ferdinand Porsche was born on September 3, 1875 in Bohemia, part of the former AustroHungarian Empire. After a brief stint as Daimler-Benz’s technical director, he left the company, which did not want to build small, fast cars for the public.Unemployed at 55, Porsche started his own design firm. The staff grew to include some of the luminaries of German automotive engineering, Porsche’s son, Ferdinand Anton Ernst â€Å"Fe rry† Porsche, his son-in-law, Anton Piech, whose son became chairman of Volkswagen, and a handful of key en ineers. Ferr became head of ng ry research and development. a This section draws from Jeffrey R. Fear and Carin-Isabel Knoop, â€Å"Dr. Ing. h. c. F. Porsche AG† (A) and (B), HBS Nos. 706-018 and 706-019 (Harvard Business School Publishing, 2006). _______________________________________________________________________________________________________________ HBS Professor John Deighton, Jill Avery (Simmons School of Management), and Jeffrey Fear (University of Redlands) prepared this case. This h case was developed from published sources. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright  © 2011 President and Fellows of Harvard College.To order copies or request permission to reproduce materials, call 1-800-5 45-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to www. hbsp. harvard. edu/educators. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School. This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Porsche: The Cayenne Launch rP os t 511-068In 1934, Adolf Hitler asked Porsche to develop a family car that was both cheap and reliable—thus the â€Å"people’s car† or Volkswagen, was born. Its design was intended to evoke the German infantry helmet and honor National Socialist ideals. During wartime, Porsche focused on tank design, including the formidable â€Å"Tiger. † In June 1948, the company launched the 356, the first automobile to carry the Porsche brand mark. A Volkswagen factory manufactured the 356b, with its tubular spaceframe chassis, aluminum body, and rear-mounted four-cylinder engine, until Porsche opened its own production facility in Stuttgart-Zuffenhausen in 1950. See Exhibit 1 for company milestones. op yo In 1953, Porsche produced its first racing car, the 550. In 1964 came the iconic 911, also a racing car. Designed by Ferry’s eldest son, the rear-engine vehicle became a twentieth-century design landmark. In the 1970s, Porsche and Volkswagen collaborated on launching the 914. In 1972, Porsche became a joint stock company (Porsche AG) with the Porsche and Piech families on the board. Porsche AG was nearly derailed by the U. S. stock market crash in 1987.Sales volume collapsed from a peak of 50,000 cars in 1986 to 14,000 in 1993. 2 At the time Ferry Porsche commented: â€Å"I certainly have not given away my family name to sell off and cash out the company to the highest offer. This philosophy might hold true for Americans, but not for us. †3 tC In 1991, Porsche launched the first of several cars at price points lower than traditionally associated with the Porsche brand. The 911 RS America was a no-frills version of the long-running rear-engine 911 model; priced at $54,000, it ran about $10,000 under traditional Porsche prices.This was followed by the entry-level 968 at about $40,000, close to the $37,000 Nissan 300ZX Turbo or the $33,000 Mazda RX-7. 4 Design and production changes continued in 1992 with the introduction of a revamped, water-cooled 911, the 996. The decision to break with the past and replace the traditional air-cooled engine with a water-cooled engine was seen as a sacrilege to many Porsche purists. No Wendelin Wiedeking became Porsche’s executive director (CEO) in 1992. In the mid-1990s he steered Porsche through one of its most noteworthy turnarounds.He staved off bankruptcy by cutting costs, paring the product line to two models, bringing Japanese manufacturing processes to Porsche’s plant s, and expanding into 70 global markets—30 more than in 1993. 5 Do In 1996, Porsche launched the $40,000 Boxster, a zippy two-seater with an â€Å"entry-level† price. In departures from tradition, the Boxster shared 40% of its parts with the 9966 and was assembled by a third party contract manufacturer, Valmet Automotive, in Finland, rather than at b Porsche 356 Photograph Courtesy of Stephen Hanafin, http://www. flickr. om/photos/shanafin/432562761/, Porsche Racing Photograph Courtesy of James Emery, http://www. flickr. com/photos/emeryjl/4620731098/, Porsche 911 Photograph Courtesy of Collector Car Ads, http://www. flickr. com/photos/[email  protected]/4586382193/, Porsche 996 Photograph Courtesy of lacomj, http://www. flickr. com/photos/[email  protected]/3813925902/, Porsche Boxster Photograph Courtesy of The Car Spy, http://www. flickr. com/photos/thecarspy/2641636681/, Porsche Cayenne Photograph Courtesy of The Car Spy, http://www. flickr. com/photos/thecarsp y/47216338591. This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 511-068 rP os t Porsche: The Cayenne Launch Porsche’s legendary Zuffenhausen plant. â€Å"We had no choice,† said Wiedeking, stressing that on-site German assemblers and engineers ensured that the Boxsters assembled in Finland were â€Å"100% Porsche†7 and just as good as those made in Germany. 8 The SUV Betc op yo In 1998, Porsche announced its plans to develop an SUV.By then, the 50year old firm was back on solid financial footing and its stock price was outrunning the national DAX index by 180% (see Exhibits 2 and 3 for stock and financial information). The Porsche Cayenne SUV would be the company’s third model series, joining the 911 and Boxster sports cars, and the first developed and launched entirely under Wiedeking’s watch. He wante d the vehicle to combine traditional Porsche styling and performance with off-road driving capability and a spacious interior, placing more emphasis on â€Å"sport† than â€Å"utility. The new car had to retain the brand’s style and panache while accommodating family, outdoor, and transport activities. Wiedeking felt that SUVs were â€Å"nearer to the sports car business than sedans. We also looked at minivans, but we do not want an eighth ‘me-too’ product. It has to be a real Porsche in terms of chassis, performance, and design†Ã¢â‚¬â€Porsche’s core strengths. 9 The average Porsche customer already owned three cars: an SUV, a sedan, and a Porsche sports car. 10 Wiedeking saw an opportunity: â€Å"We know from our surveys that a lot of our customers are waiting for a Porsche SUV.Then there will be no doubt that customers can proudly park their SUV next to a Mercedes S-Class and other cars like that. †11 tC Porsche wanted to leverage its premium brand to enter a hot, new market to capture incremental growth and to diversify the business to hedge against potential declines in the sports car segment due to economic fluctuations. The company observed other car manufacturers like BMW and MercedesBenz successfully leveraging their brands across a wide range of product categories and wanted to do the same.SUV optimists argued that Porsche had creatively found a way to diversify its aging model range in an oversaturated market. They estimated a breakeven number of 10,000 units priced between DM 100,000 and DM 120,000. By building 20,000 SUVs a year, Porsche could boost its total sales by 50%. 12 The SUV Market Do No In the late 1980s, the Ford Explorer legitimized the SUV as the quintessential American family vehicle. The SUV’s popularity with U. S. drivers was attributed to the nation’s historic affinity for larger cars and trucks that could serve for both work and personal use.This new breed of vehicle was viewed as innately â€Å"American. † Its rugged and powerful appearance, and the promise to combine the carrying capacity of station wagons with the off-road capability of pick-ups, offered an alternative to old fashioned family suburban and rural utility vehicles. The sporty and aggressive design appealed even to those who would never dream of taking a car into rough terrain, namely preppy, youthful professionals, including working women and stay-at-home mothers (colloquially known as â€Å"soccer moms†) who preferred not to be associated with station wagons and minivans.After Ford’s successful launch of the Explorer, other leading manufacturers both in the U. S. and abroad (Japan, Germany) followed with their own models. By the late 1990s, the SUV market was deemed intensely competitive,13 as many manufacturers strove to offer SUVs with car-like agility, the space of a mini-van, and the utility options of a sport vehicle. Fortunately for owners of such lar ge c This section draws from Jeffrey R. Fear and Carin-Isabel Knoop, â€Å"Dr. Ing. h. c. F. Porsche AG† (A) and (B). 3 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013.Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Porsche: The Cayenne Launch rP os t 511-068 cars (SUVs weighed 4,000 to 6,000 pounds; cars 2,000 to 4,000 pounds), gasoline prices in the U. S. remained very low by global standards. In 1998, light trucks, including SUVs, captured 51% of the new U. S. vehicle market, double the share they had 20 years before, propelled by a strong economy, demand for roominess (some even had 10 cupholders) and the perception of enhanced driver visibility and safety. op yoPorsche’s SUV would join an already crowded market, estimated at about two million units in early 1998. Still, the category ranged from pick-ups, light trucks, and small jeeps to high-end entries such as the Range Rover—the only SUV with a base price over DM 100,000. 14 A successful high-end, high-performance Porsche SUV could trigger me-too followers within two to three years, thanks to the compression of development intervals within the automobile industry. Already, Mercedes Benz was considering an M-Class SUV vehicle with a 300-plus horsepower engine. BMW was also rumored to be interested in developing what would later become the X5.Other European, Japanese, and American brands were looking into developing luxury SUVs, including Lexus, Infiniti, Audi, Lincoln and Cadillac. The potential for such new entrants threatened the sustainability of Porsche’s sales forecasts of 20,000 SUVs each year. 15 By 1996, the premium SUV market was proving its success. Sales of the 1996 Mercedes off-roader M-Class demonstrated a demand for luxury SUVs (see Exhibit 4 for SUV market information). Luxury/crossover SUVs targeted the high-end market with top quality interior amenities such as stylish materials (wood and leather) and lowered suspensions.Sales of high-end SUVs—those costing between $43,000 and $49,000—were expected to reach 300,000 in 1998 (up from 75,000 in 1995)16. Exhibit 5 shows SUV sales forecasts by region. Cadillac was expected to launch an SUV in 1999, and Ford was testing a 19-foot â€Å"crew wagon† with a V10 engine. tC Competition in luxury SUVs was intensified by major Asian players. Lexus, Toyota’s luxury auto division, saw its small LX 450 SUV grow to nearly 30% of all U. S. Lexus sales in just a few years. Acura (Honda), Infiniti (Nissan), and Mitsubishi already had luxury offerings in the U. S. arket. Nissan’s Xterra SUV was planned for 2000. 17 Launching a luxury SUV was an expensive bet for Porsche. R&D alone amounted to â‚ ¬300 million, and capital expenditures for new plant and equipment tripled between 2000 and 2002. 18 No Wiedeking was confident in his SUV strategy: â€Å"Our new sport utility ve hicle will not only correspond in full with Porsche’s high technical and visual standards, but will also pave the way for future growth potential in the sales, turnover, and earnings areas† he promised. 19 An SUV would give Porsche â€Å"a new dimension in both profit and revenues. 20 Fred Schwab, President of Porsche Cars North America explained, â€Å"What is going to distinguish us from them [Porsche’s competitors] is that they are making practical vehicles that are good off-road, but are essentially there to get your groceries and take a ride on Sundays. Porsche is in the business of making fun cars. The Cayenne will go faster, handle better and you will be more comfortable in it. It won’t swing and sway†¦ It will go from zero-to-sixty in 5. 4 seconds. This SUV will be fun to drive. It will be an SUV sports-car lovers will love. †21 Do By 2002, SUVs were under attack in the U.S. by cultural critics. Starting in 1997, Keith Bradsher, a prom inent reporter for the New York Times, spent four years writing scathing critiques of SUVs that culminated in a book launched in 2002 entitled â€Å"High and Mighty: The Dangerous Rise of the SUV. † In his articles and book, Bradsher debunked the widely held notion that SUVs were safer than cars and held up SUVs as a prime example of how American consumerism was contributing to global warming. Some began to question the long-term attractiveness of the SUV segment, predicting a move towards smaller, more fuel-efficient cars. 2 4 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 511-068 rP os t Porsche: The Cayenne Launch Bradsher also painted an unflattering portrait of SUV buyers, â€Å"Who has been buying SUVs since automakers turned them into family vehicles? They tend to be people who are insecure and vain. They are frequently nervous about their marriages and uncomfortable about parenthood. They often lack confidence in their driving skills.Above all, they are apt to be self-centered and self-absorbed, with little interest in their neighbors or communities. †23 Bradsher criticized SUV owners for buying SUVs with functionality that they didn’t need, citing auto-industry surveys that showed that less than one in 100 SUV owners took their SUVs off-road. Bradsher connected the SUV to â€Å"soccer moms† who were rejecting minivans and opting into SUVs as their vehicle of choice. Exhibit 6 shows consumers’ perceptions of SUV drivers and Porsche drivers. Listening to Consumers in Online Communities The Rennlist Community op o Web communities provided an opportunity to observe how Porsche owners reacted to the announcements and actions of the company in the months leading up to and following the Cayenne launch. The launch lit up the numerous and diverse online brand communities devoted to Porsche, as enthusiasts around the world came together to talk about this cataclysmic event in the life of their brand in chat rooms, web discussion forums, and blogs. One such community was Rennlist. tC Rennlist, www. Rennlist. com, was an international online community of Porsche enthusiasts founded in 1998.At the time of the Cayenne launch it had 36,000 active posters of comments and a lurker population of 200,000, a silent audience who read but did not participate in the discussions. Rennlist provided a virtual communal gathering place for Porsche enthusiasts, as highlighted in the site’s mission statement: â€Å"[Our members] look to Rennlist as their community, their international club—and their ‘daily dose’ of what we are all bonded by—an uncommon sense of loyalty to the Porsche marque as well as to other Rennlist members throughout the world. Rennlist was independently owned and run by Porsche enthusiasts and was not affiliated with Por sche, although some local Porsche dealerships enjoyed commercial sponsorship through advertising banners on the site. No One of the most used features of Rennlist was its web forums, online discussion boards where members engaged in ongoing dialogues with each other by first initiating topics of conversation with a seed post, and then listening and responding to others’ comments in asynchronous conversations. All posts were public and were archived on the website for posterity.In the words of a Rennlist member, the web forums simulated a virtual fraternity: â€Å"I haven’t had as much fun talking about cars in many years, than I’ve had on these forums. Many times it’s like sitting around a big roundtable with everyone having beers and telling war stories & giving each other help. It’s fraternity; and I appreciate it. † While anyone who joined could post to Rennlist’s discussion forums, the majority of posters claimed to own at least o ne Porsche vehicle. Most posters used a virtual signature which contained a list of their Porsche cars.The Porsche Brand as an Identity Marker Do Rennlist posts painted a picture of Porsche as an ego-expressive brand. While postings seldom addressed the issue directly, a sense of Porsche as a masculine identity marker was palpable in the kinds of topics discussed: the focus on performance metrics, engineering standards, and admiration for Porsche’s manufacturing and racing prowess. Occasionally, however, posts like this appeared: There’s super hot women everywhere, ignoring us†¦tons of hotties, no love (and in some cases a bit of attitude and contempt) from any of them†¦ ntil we walk outside and head to my 996. When it is apparent as to which car we are going to, I hear, ‘Mr. bald guy’ (I have 5 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Porsche: The Cayenne Launch rP os t 511-068 no hair) ‘Where are you going? Come back’ from a group of about 10 absolutely drop dead beautiful, tightly clothed, amazingly sexy women on the patio. (Rennlist post)Porsche as a socio-economic status marker was seldom expressed directly, and often expressly denied: I’d like people to see me in my Porsches and think ‘there goes a person who really appreciates his sports cars,’ not ‘there goes another yuppie with more money than brains. ’ (Rennlist post) Initial Response of Porsche Enthusiasts to the Prospect of the Cayenne Launch op yo Hostility to the launch of the SUV was intense. A scan of Rennlist showed conversations about the Cayenne reaching a fever pitch as the launch approached.Exhibit 7 shows the number and valence of posts over time. In the New York Times, the founder of Porsche Pete’s Boxster Board (another Porsche online brand comm unity), claimed â€Å"No other Porsche – past, present, or future – comes close to generating the kind of [on-line conversation] response that the Cayenne has. †24 Some posts suggested that a source of pride was about to become a source of shame. It makes me embarrassed of owning a Porsche†¦kinda like that relative you don’t want to admit sharing the same bloodline.Ugh! (Rennlist post) I am actually ashamed of Porsche stopping to be a pure sports car company†¦A SUV (SlowUgly-Vehicle)!! The ANTI-SPORT CAR, a heavy, slow, clumsy, and roll-over happy SUV will share the same emblem on its hood than our sportscars. Sad times for Porsche. (Rennlist post) tC Some Porsche owners posted that they were leaving the brand for rivals Ferrari, Aston Martin, or Maserati, after claiming that Porsche had â€Å"sold out. † Others collectively mourned the loss of the brand they knew and loved.As key design, engineering, manufacturing, and marketing decision s were released by Porsche, consumers used Rennlist as a place to vent displeasure. There just aint nothing Porsche in a SUV. (Rennlist post) No I have been exposed to Porsches since the age of 10. I have seen all the models come and go, but the Cayenne is the first non-sports car to come up and I really don’t like this direction at all. Porsche has always been synonymous with ‘sports car’ and now somebody can say ‘I have a Porsche†¦Ã¢â‚¬â„¢ and mean a Cayenne! I could not imagine a Ferrari SUV for example! (Rennlist post)Do Just as they had done with earlier models, enthusiasts criticized design and engineering attributes of the SUV. The Cayenne’s front-mounted, water-cooled engine offended â€Å"real Porsche† purists. Early photographs of the Cayenne were met with ridicule in the online community, and sparked many conversations about how ugly the Cayenne was and how it resembled the Hyundai Santa Fe. Some argued that the Cayenne’ s design was feminine and lacked the manly stance of competitors like the Hummer and the Jeep. Porsche enthusiasts were also dismayed that the Cayenne included unnecessary† amenities such as cupholders and a tiptronic automatic transmission, which suggested that the Cayenne was designed for drivers who valued luxury over driving performance. These features confirmed that the Cayenne was not designed as a driver’s car, but rather, that it was designed to appeal to what Porsche owners called â€Å"suburban, yuppie, soccer moms. † In online conversations, Porsche owners repeatedly called the Cayenne a car for â€Å"poseurs,† people who did not understand the history, 6 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013.Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 511-068 rP os t Porsche: The Cayenne Launch heritage, and performance of a Porsche, but who bought the brand merely for its status or imageappeal. 20 years ago, when you said you had a Porsche, people looked at you with envy. 10 years ago, when you said you had a Porsche, people looked at you with envy. Today, when you say you have a Porsche, people will reply: oh, those trucks? I got one of those too. (Rennlist post) I just felt really sad.Now ‘soccer moms’ can drive their kids around in a Porsche. Pretty sad. Look at the level that Porsche has been brought down to. BIG MISTAKE (Rennlist post) op yo And the people who will use it!!! Suzy-Housewife, as well as Dorky Dick who’s been beaten up through high school finally bought his first – ahem, PORSCHE got the A-OK from the wife – ‘so long it’s practical dear’!!!!!!!! (Rennlist post) The Cayenne will be bought as a car for the poser wife to take the kids to school, the only time it will go off road will be when it goes up on the curb.Come on how many real rear engined Porsche e nthusiasts will buy one. (Rennlist post) Product Development and Manufacturing Criticism No tC Porsche’s product development and manufacturing decisions figured prominently in the â€Å"real Porsche† debate and became fodder for arguments against the Cayenne. By spring 1998, Porsche was negotiating with Volkswagen to jointly develop and manufacture SUVs. Under the proposed arrangement, Porsche would undertake the research and development of the SUV and Volkswagen would invest about $657 million in the project. 5 The new SUVs would share close to 65% of their parts and modules—the same chassis and some technologies—but showcase different exterior styling, engines, and chassis tuning. Porsche would develop the two models as well as the common platform. VW would be responsible for major aspects of production, with final Cayenne assembly to be conducted by Porsche. 26 Partnering with VW was â€Å"an ingenious coup,† an observer noted: â€Å"Half of Po rsche’s profits come from the Cayenne. That model was developed in collaboration with VW and was built in VW plants. The car is 90 percent VW and 10 percent Porsche. 27 Skeptics worried about paying Porsche prices for a VW, but were assured that the R&D of the new model was purely Porsche’s domain, while its partner would oversee only the production of some major components, excluding the engine. 28 But as one financial analyst opined, the Cayenne would â€Å"push Porsche’s brand credibility to the absolute limit. †29 Porsche’s partnership with Volkswagen caused consternation among Porsche enthusiasts. Earlier Porsche cars produced with Volkswagen, such as the 914 and 924, had been criticized by enthusiasts as â€Å"faux† Porsche vehicles. Many claimed that the Cayenne was a â€Å"Porsche-ized VW† built with too muchVolkswagen content. When Porsche launched a V6 model of the Cayenne which contained a Volkswagen engine, instead of the Porsche engines featured in the V8 and Turbo models initially launched, Porsche consumers cried heresy. When some independent testers chose the Volkswagen Touareg over the Porsche Cayenne in performance tests, consumers cemented their skepticism and claimed that, suddenly, â€Å"there was a substitute† for a Porsche, and it was a Volkswagen Touareg. Do Porsche and VW do not seem to be in bed on this project, they are in bed on this project. They are both exactly the same basic vehicle.VW gave Porsche the chassis and said go and design a SUV if you want to be our partner on this†¦So the VW Toureg and Porsche Cayenne are both Porsche designed on a VW chassis and when they are pulled off the line to go up to Leipzig you will not be able to tell the difference. Only when the Cayenne leaves Leipzig will it look any different. When it has been Porscherised with engine and cosmetics. (Rennlist post) 7 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY unti l August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Porsche: The Cayenne Launch P os t 511-068 Sorry, the Cayenne is a Porsche†¦ While some of the design is shared with VW and some components built @ VW factories, Quality Control was still supervised by Porsche†¦ A good analogy to your argument would be having Emeril Lagasse prepare you a dish at his restaurant and then prepare the same dish at your home. Still the same dish, just produced elsewhere†¦ (Rennlist post) Enthusiasts were distressed to find that the Cayenne had a Japanese transmission. They saw this as a further decline in build quality that came when Porsche switched to Japanese manufacturing processes and away from its handcrafted heritage.In their online conversations, enthusiasts yearned for the days when their Porsche cars were Porsche designed, constructed from German-made parts, and manually assembled in Germany by racing engineers. op yo I was reading in Panorama last night that the Cayenne has a 6 speed tip tranny which is produced in Japan. Is this true? Seems like Porsche is just outsourcing as much as possible to keep profits high. Both my cars have Japanese parts (A/C), but nothing so substantial as a transmission. What's next, engines from the Far East? I'm less and less impressed every day I read more. Rennlist post) IMHO a German car with German Ing should have German parts, especially for something as major as the tranny. Isn't that part of the identity of the brand? oops.. forgot, Porsche doesn't value the brand identity that was built over the last 50 years anymore. The old professor [Ferry Porsche] dies and look what happens†¦ an SUV. (Rennlist post) No tC Personally the thought of purchasing a Porsche with some of its major components outsourced to the Far East is analogous to buying what you think is a fine Swiss time piece that turns out to have a cheap(er) Japanese movement inside.To me t hat would be unacceptable. Yes, both work, and work well, but the reason you bought the Swiss one in the first place was to get the hand crafted Swiss quality and workmanship that dates back hundreds of years†¦I certainly hope this will not be the future for Porsche cars. Those who know the real definition of build quality know exactly what I am talking about. Most Japanese stuff isn't even worth rebuilding, because it is designed to be replaced when it is done. The old German design and build philosophy was much different than the modern Japanese design (if there is such a thing) and build philosophy.Porsche cars used to be about hand crafted high quality performance, but all that seems to have gone out the window these days just to make more profits. (Rennlist post) Wiedeking defended his design and manufacturing decisions, claiming that Porsche focused on its core competencies: engine manufacturing, R;D, body shell work, assembly, quality control, and â€Å"highly professio nal† distribution, while relying on â€Å"extended work benches† at Valmet, VW, and its network of suppliers. It reduced its in-house production depth to one of the lowest in the industry, shared some components with VW such as electronics, and split R;D costs with VW. 0 Do Finally, Porsche’s decision to build the Cayenne in Leipzig, in the former East Germany, put into question whether the Cayenne could be a â€Å"real Porsche. † Rennlist members who visited the Leipzig plant brought back bad news. The Leipzig plant was little more than a final assembler, with most of the assembly work being done by automated machines. To enthusiasts, the Cayenne’s assembly in Leipzig put into question its â€Å"Made in Germany† moniker. Leipzig did not carry the German manufacturing heritage of Zuffenhausen; its location in East Germany was associated with the Communist era.Nice try, but aren't our Cs actually built out in some Skoda plant in Eastern Europe and then final assembled in Leipzig? This may explain some of the initial build quality problems. 8 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 511-068 rP os t Porsche: The Cayenne Launch I've read that the Eastern European manufacturing workforce has some of the attitudinal and work ethic habits of 1970s era Detroit car builders. God forbid. (Rennlist post)Here is a firsthand report of someone who visited the Leipzig factory on March 19, 2004: What amazed me most was how small it was. They really were just integrators and assemblers there. Much of the car (the upper shell and interior) comes in from Bratislava, and the power plant from Zuffenhausen. The tranny from Asia and it is all put together and â€Å"married† with 18 BOLTS! That’s it! Funny. After it is put together, they test drive EACH ONE on the track. I fou nd that to be very interesting quality control, and also a testament to the difference between a VW and a Porsche. Clearly, the Cayenne is not built in Leipzig.Leipzig is where the final assembly and final QC are done. I'm sure that the quality control of Porsche is much better than that of VW. But it is not a car manufacturing plant. (Rennlist post) op yo Having toured the factory in Leipzig two weeks ago, I can assure you that the Cayenne final assembly is mostly by machine, NOT by hand. The level of automation is amazing. It takes 170 production workers per day to produce 130 Cayennes per day. It takes 80 production workers per day to produce 2 Carrera GT's per day! (Rennlist post) And on their website they are boasting about how it's Made in Germany and what that means.Maybe the thing should say kinda-put-together in Germany. (Rennlist post) tC Wiedeking defended his decision to assemble in East Germany: â€Å"The Leipzig location brings our firm advantages, otherwise we would have never built the plant there. But we also create jobs in an economically weak region. †31 However, a Porsche spokesperson confirmed the importance of manufacturing location to Porsche enthusiasts, â€Å"[Location] is not an uncritical issue. People think that as a car comes off the line at Zuffenhausen, Ferdinand Porsche comes by and caresses the car with his hand, and that makes it an official Porsche.Of course, Ferdinand Porsche hasn’t been doing that for some time. †32 Hostility Toward Cayenne Buyers In December 2002, European dealers began to sell the Cayenne, and in March 2003 it was on sale in the United States. Postings by some Porsche owners took on a threatening tone. Try owning a Cayenne and see how you’re treated by other Porsche owners. (Rennlist post) No Oh and just so you guys know†¦you are the laughing stock of all other Porsche owners. (Rennlist post) One thing is for sure: the SUV is NOT my brother! I always accepted the other mod els in the family – the 928s, 924s, Boxsters, etc.They were all sports cars. But the SUV: never! (Rennlist post) Others echoed the earlier concern that the new car would shame them. Do People will buy these Porsche S. U. V. ’s because they’re a fad, and they’ll embarrass the real Porsche crowd. They’re not going to know how to drive and they’ll do stupid things. It’s scary to think about. (Rennlist post) There was a wish to purify the community by exclusion or ostracism. On the road, Porsche owners refused to extend their fraternal greeting to Cayenne owners, limiting it to sports car owners only.They tried to block Cayenne owners from joining local Porsche clubs and refused to allow them to race alongside sports cars in club-sponsored racing event. 9 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Porsche: The Cayenne Launch rP os t 511-068 So how about the Cayenne? Seems kinda funny flashing lights at an SUV even if it has a Porsche badge†¦Don’t think I can†¦ (Rennlist post) I’m with you guys on the Cayennes. I don’t wave to drivers of re-badged VW Touregs either. Rennlist post) Please don’t flash your lights or honk your horns at me. You will only see my longest finger back at you. (Rennlist post) My point it that all SUV owners should take their toys and play in their playground. NOT in mine. Find other SUV’s go to the track and have fun together. (Rennlist post) op yo There’s still one problem: A Cayenne, driven by the owner of other Porsche cars may be able to perform miracles that would embarrass all competitors in an autocross situation but the scary thought is that PCNA [Porsche Cars North America] are betting that many Cayenne owners will not be previous Porsche drivers.Having these people who could be un accustomed to a vehicle of such power, may very well overstep their abilities in trying to keep up (or prove themselves) to the rest of us and cause some real damage. Yes, I’m biased against the Cayenne. Yes, I think the whole idea of a Porsche SUV is a mistake. (Rennlist post) The newcomers would not understand the values of the community they sought to join. They have little of no feeling of belonging, no understanding of the lineage of Porsches and where their cars were derived from. They don’t care about that, most are probably just poseurs. Rennlist post) tC It’ll be piloted by folks who woulda bought the Mercedes Benz/Range Rover if there weren’t five of them in the subdivision already, who wouldn’t consider a Lexus because it’s ‘jap crap’ and who think BMW/VW is beneath them. They’re not enthusiasts, they’re consumers. They won’t know or care that old time P-snobs will shun them. (Rennlist post) Cayen ne Buyers Respond Some Cayenne buyers sought to broaden the Porsche community to include themselves as members of good standing, or at least to appeal to the better natures of the old guard.No This sense of kinship is getting lost due to lines being drawn between one group to another. (Rennlist post) I thought being a Porsche owner was like joining some sort of fraternity of something†¦ but it’s more like [Boxster, Cayenne] owners are the red-headed step child of some dysfunctional Porsche family. Did all entry level Porsche owner’s get this much crap when they bought their new Porsches? (Rennlist post) Do So am I to understand that you are allowed to rail against and hurl invective and others are not? Look. You like your car, I like mine.I’m not going to bash yours, and I go out of my way to salute yours. Why do you continue to bash my choices? (Rennlist post) Please start being nicer to each other. This is not the correct time to start having a go at each others throats. (Rennlist post from a site moderator) Sadly, the ranks of Porsche owners seems to be populated by those into model specific devisiveness and comparison pissing matches. Where once a camaraderie of enthusiasm existed, now lies a state of SUV owners looking for the next status symbol and those remaining 10This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 511-068 rP os t Porsche: The Cayenne Launch few who love the maker of their dream cars fight with one another over which model is best and how effeminate or inadequate another model is compared to theirs. (Rennlist post) Spillover into the Offline World While the â€Å"real Porsche† debates raged on Rennlist, Porsche enthusiasts began to take their criticisms into the offline world.Consumer-generated-advertising spoofing the Cayenne made its way around the Internet ( see www. flickr. com/photos/alecmcint/447172 for a sample). Consumers circulated bumper stickers, license plate frames, and t-shirts for the Cayenne with slogans like â€Å"My other car is a REAL Porsche. † Cayenne’s advertising featuring headlines such as â€Å"Only one sport utility vehicle has bloodlines like these† and â€Å"Another twisted branch on the family tree† set off online rants. An article in Internet magazine Autoextremist captured the mood: op yoPorsche’s advertising campaign for the new Porsche Cayenne is the latest attempt to link its ungainly SUV to its greatest sports car and traditions, and in doing so it achieves a new low for the once-bulletproof brand by at once dismissing its own legacy and insulting the intelligence of every auto enthusiast—Porsche, or otherwise—in the process†¦A stretch that only delusional Porsche marketers could possibly attempt—and a flat-out insult to every great Porsche spor ts car that has come before it†¦To link it [the Cayenne] in any way to some of motordom’s most historic and legendary machines is an outrage. 3 tC What was said and done on Rennlist traveled beyond the online community. Compelling posts were often copied and pasted to other online communities and to personal and professional blogs. Press reporters used online brand communities like Rennlist to find consumers who were willing to talk about the brand in the press. Porsche owners quoted in news stories about the launch were longstanding, active online brand community members. The mainstream press began to reflect the online zeitgeist of the Porsche enthusiasts.Autoextremist warned that â€Å"[The SUV] threatens to destroy the very soul of the company,†34 while the Los Angeles Times announced that â€Å"Snowballs are rolling uphill in Hades. Porsche—shudder—will build an SUV. † 35 Porsche probably has the purest DNA of any sportscar maker. I donâ €™t care how good an allwheel-drive wagon is, it’s not a sportscar. If you add a car that does not fit with your brand’s image, you must reduce the power of that image. (Porsche consumer quoted in Herald-Sun)36 No Everything about the Cayenne is completely the opposite of what Porsche is and does.It will be the death of a tradition. (Porsche consumer quoted in the New York Times)37 It’s blasphemy†¦I’m not hot on the idea at all. I’ve lived with Porsches all my life and the marquee has always been Porsche sports cars. To bring out an SUV doesn’t sit well with me. (Porsche consumer quoted in the Los Angeles Times)38 Any truck made by Porsche deserves to be a failure. It’s a disgrace to the Porsche name. (Porsche consumer quoted in Autoweek)39 Do Cayenne Owners Become Assertive Cayenne owners began to speak in support of their vehicles.They deflected soccer mom, yuppie, and poseur stereotypes, claiming to be fellow Porsche enthu siasts. They told stories about how they would take their SUVs off-road, or use them to tow their Porsche race cars or boats, or to access adventure sports like skiing, hiking, hunting, and fishing. They bragged about the performance of their Cayennes and wrote of beating other sports cars, including the Porsche Boxster, off of the line at traffic lights. They described positive reactions they received from others. They referred to their 11This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Porsche: The Cayenne Launch rP os t 511-068 SUVs as â€Å"sports cars† and circulated a revisionist history of Porsche in which the Cayenne is a logical descendant of Porsche classics. They reminded readers that Ferry Porsche was the driving force behind the Cayenne: By now, I gotta say the C [Cayenne] is a winner. It’s not really even an S UV in the traditional sense.It’s primary focus, like all porsches is performance, and with a straight face, I can tell you it’s pretty much a sports car with some suv traits. (Rennlist post) op yo You may not need a vehicle that can carry kids, go to the snow, haul a few things and is fun to drive, but that doesn’t mean no one does. The Cayenne may not match the 996 (almost nothing else does) but if it outhandles and outbrakes 90% of the vehicles out there, has great power, is fun to drive, offeres good utility, and has room for more of your stuff (including the dog) if that is required, why on earth wouldn’t you want one if you were ooking for that type of vehicle. Why wouldn’t ANYONE want one who can afford the price of admission? (Rennlist post) The Sports Car Owners Respond Not all sports car owners were hostile to the Cayenne. Indeed 18% of the first wave of buyers owned Porsche sports cars. As time passed, postings began to appear on Rennlist embracing the Cayenne. The posters noted that, unlike many SUVs built for the road, it handled like a sports car with sports car acceleration and nimbleness, yet had the ability to perform like a true off-roader and had impressive towing capacity. C All this over an SUV :rolleyes: And all this talk about how the newer porsches aren’t true to their sportscar heritage, seems to me all new cars are going this way, in the end a car company has to worry about selling new cars a lot more than selling old cars and new car buyers for the most part want all those luxuries†¦If Porsche thinks it needs a SUV to remain strong in the marketplace let them build it. Mercedes has an SUV for chrissakes are they any less of a luxury car company because of it? (Rennlist post) NoIf you’re really a Porsche enthusiast, you recognize that they’re first and foremost the world’s best automotive engineering firm, and the Cayenne looks to be more proof of that. Conceptually, I don’t see it as being that far away from the 928. I can’t imagine a reason in the world why anybody would care that it has four doors. (Rennlist post) Pity you feel that way. Do you wave to 914 owners? How about 924 owners? Who decides which Porsche are worthy and which are not? I know plenty of enthusiasts that have Cayennes as second vehicles. While the Cayenne is not my cup of tea I've driven a few and they are pretty impressive for an SUV.Do you really want to be one of those drivers that wave to some Porsche's and not others? No flame intended†¦Ã¢â‚¬ ¦ just something to consider. After all there are some out there that don't think a 986 or a 928 are real Porsche's either! (Rennlist post) Do I have to say that negative opinions (regarding what is and is not a real Porsche) DO, in fact, piss me off. Who the hell is ANYONE, other than Porsche, to say what is and is not? I, personally, would NEVER buy a 924. I don't like them. I don't like how they look. I think they are underpowered and somewhat boring. Is it a real Porsche? Of course it is!!!! You know why?Because PORSCHE built it and SAYS it is!!! Some shmuck who owns a 911 decides that a 944 isn't real. Show me how he is qualified to make that assesment. Does it have a Porsche badge placed there, at the factory, by PORSCHE Then it is!!!!! (Rennlist post) 12 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 511-068 rP os t Porsche: The Cayenne Launch However, the majority of the community continued to attack the Cayenne, relegating it to the bottom rung of the group’s status hierarchy.Feeling the pressure, Cayenne owners posted their feelings. So SICK OF THIS, like the Cayenne, and plan to buy one. I come to this forum to get updated info, whats new. What I find is the same people making post after post of the same thing, Its ugly, I d on’t like the name, why isn’t Porsche racing Bla Bla Bla. Do these same people go to the 914 forum and tell them their cars have VW motors, or the 924 forum and harp about Audi truck motors? (Rennlist post) op yo I have the V8 Porsche [Cayenne] and guess I get a little defensive when people call it a VW and I paid close to 69K for a quote un-quote VW.I know deep down in my heart that I have a Porsche (Rennlist post) †¦well, maybe the ‘bashing’ was mild this time†¦but its being going on day in day out for the past year†¦Yeah, I shouldn’t let it bother me†¦but after a while anything starts to wear thin†¦trust me. (Rennlist post) Any of you guy’s ever hear the expression ‘if you don’t have anything good to say don’t say it. ’ Almost every time someone is excited about purchasing this vehicle some of you guys have to post something negative. Please next time post what you drive so I can use ever y opportunity to tell you what junk you drive. Rennlist post) Looking Ahead No tC Porsche’s senior management shrugged off the negative buzz from consumers. Despite the withering criticism from consumers, shareholders, and the press, Wiedeking claimed he was not concerned, though he admitted that the decision to build the Cayenne â€Å"was certainly not selfevident. † He said that Porsche was â€Å"richly scolded† for moving away from its â€Å"brand core† so it knew that it had to be a success. Wiedeking argued that launching the Cayenne took the same courage that Porsche’s founder had demonstrated when he founded Porsche in 1931 during the Great Depression. 0 Schwab, Porsche’s North American President, labeled consumers’ response naive, â€Å"Those in the Porsche Clubs of America will castigate us for the SUV decision, but they just don’t know business. For them to keep having their beloved 911s, we have to find a niche else where. That is modern business. †41 Do Wiedeking and Schwab were already looking ahead to their next big launch, the Porsche Panamera, the company’s first ever four-door sedan. Envisioned as a rival to Maserati, BMW, Audi, and Jaguar sedans, Panamera would further diversify Porsche’s product portfolio and customer base. The Panamera is a perfect fit for Porsche,† Wiedeking professed, â€Å"It has all the typical DNA characteristics of a genuine sports car. In terms of performance, design, and driving dynamics, it meets Porsche’s high standards in every respect. †42 13 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Porsche: The Cayenne Launch Exhibit 1 Porsche Milestones rP os t 511-068 Ferdinand Porsche born Sept. 3 in Maffersdorf, Austria-Hungary. 1909 Ferdinand Anton Ernst (â€Å"Ferryâ€Å") Porsche born Sept. 9, in Wiener Neustadt, Austria. 1950 Porsche begins 356 production in Stuttgart-Zuffenhausen. 1951 The senior Ferdinand Porsche dies at age 70. 1953 Porsche introduces the 550, its first racing-specific car, which meets immediate success. 1964 Porsche introduces the 911. The company had produced 78,000 Type 356s in 14 years. 1972 Porsche KG becomes a joint stock company (AG). Ferry Porsche, chairman of the supervisory board, precludes all family members, including himself, from direct management roles. 1978 Launch of the front-engined 928 touring car. 1982 Launch of the 944 sports car. 1984A third of Porsche AG’s capital is offered to the public in the form of nonvoting preference shares on April 25. On Sept. 19, his 75th birthday, Porsche receives the honorary title of â€Å"Professor. † 1990 Butzi Porsche (Ferdinand A. ) succeeds Ferry Porsche as chairman of Porsche AG’s supervisory board. Butzi began his own firm, Porsche Design, in 1972. 1992 Wendelin Wiedeking becomes CEO of Porsche. 1996 Launch of the Boxster two-seater sports car. 1997 Porsche introduces its all-new, water-cooled 911 (the 996) at the Frankfurt Motor Show. 1998 The company prepares to celebrate 50 years of building sports cars with the Porsche name.Ferry Porsche, honorary president of the Porsche AG supervisory board since 1990, dies March 27 at the age of 88. 2001 Porsche releases its plans to build an SUV. 2002 European launch of the Cayenne in December. 2003 U. S. launch of the Cayenne in March. No tC op yo 1875 Do Source: â€Å"Porsche Timeline,† AutoWeek, April 6, 1998, and casewriters. 14 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Exhibit 2 511-068 Porsche Relative Stock Price Performance 600 500 rP s t Porsche: The Cayenne Launch January 1998 US$168 300 200 100 January 1997 US$87 Ja nM 90 ay -9 Se 0 p9 Ja 0 nM 91 ay -9 Se 1 p9 Ja 1 nM 92 ay Se 9 2 p9 Ja 2 nM 93 ay Se 9 3 p9 Ja 3 nM 94 ay Se 9 4 p9 Ja 4 n9 M5 ay -9 Se 5 p9 Ja 5 nM 96 ay -9 Se 6 p9 Ja 6 nM 97 ay -9 Se 7 p9 Ja 7 n98 0 op yo 400 DAX 30 tC PORSCHE DATASTREAM GERMAN AUTOMOBILE INDEX Do No Source: Thomson Financial Datastream, accessed February 13, 1998. 15 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 83. 7860. Porsche: The Cayenne Launch Exhibit 3 Porsche Group Highlights 1995–2002 rP os t 511-068 1995–1996 1996–1997 1997–1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 â‚ ¬ million â‚ ¬ million â‚ ¬ million 1,437. 7 527. 7 910. 0 2,093. 3 671. 9 1,421. 4 2,519. 4 735. 5 1,783. 9 3,161. 30 955. 6 2,205. 70 3,647. 70 893. 2 2,754. 50 4,441. 50 1,001. 30 3,440. 20 4,857. 30 1,121. 00 3,736. 30 5,582. 00 1,482. 50 4,099. 50 Vehicle Sales Domestic Porsche Export Porsche Other Models Vehicle Sales Porsche 911 928 944/968 Boxster Cayenne Units Units Units Units Units Units Units Units Units Units 19,262 ,873 13,346 43 19,219 19,096 104 — 19 — 32,383 9,670 22,713 — 32,383 16,507 — — 15,876 — 36,686 9,174 27,512 — 36,686 17,869 — — 18,817 — 43,982 10,607 33,375 — 43,982 23,090 — — 20,892 — 48,797 11,754 37,043 54,586 12,401 42,185 54,234 12,825 41,409 66,803 13,896 52,907 48,797 23,050 54,586 26,721 54,234 32,337 66,803 27,789 25,747 27,865 21,897 18,411 20,603 Production Porsche total 911 Carrera GT 928 944/968 Boxster Cayenne Other Models Units Units Units Units Units Units Units Units Units 20,242 20,242 20,132 — 28 — 82 — — 32,390 32,390 16,488 — — — 15,902 — — 38,007 38,007 19,120 — — — 18,887 — — 5,119 45, 119 23,056 — — — 22,063 — — 48,815 48,815 22,950 55,782 55,782 27,325 55,050 55,050 33,061 73,284 73,284 29,564 7 25,865 28,457 21,989 18,788 24,925 Employees Personnel expenses At year-end â‚ ¬ million 7,107 392. 1 7,959 464. 4 8,151 528. 2 8,712 574. 9 9,320 631. 3 9,752 709. 9 10,143 799. 4 10,699 849. 5 Balance Sheet Total Assets Shareholders’ Equity Fixed Assets Capital Expenditures Depreciation Extended Cash Flow Net income before taxes Net income after taxes Dividends â‚ ¬ million â‚ ¬ million â‚ ¬ million â‚ ¬ million â‚ ¬ million â‚ ¬ million â‚ ¬ million â‚ ¬ million â‚ ¬ million 951. 4 239. 1 482. 5 213. 6 67. 7 ,249. 7 298. 1 565. 3 234. 8 107. 6 27. 9 24. 6 1. 8 84. 5 71. 3 13. 0 1,490. 9 415. 8 579. 6 175. 8 157. 1 413. 1 165. 9 141. 6 21. 9 1,916. 10 587. 4 525. 6 155 183. 7 592. 5 357 190. 9 21. 9 2,205. 40 782 577. 7 243. 7 196. 6 506. 5 433. 8 210 26. 4 2,891. 60 1,053. 30 731. 8 293. 8 132. 7 764. 4 592. 4 270. 5 45 5,408. 70 1466. 80 2,207. 70 1,119. 50 278. 80 1,067. 30 828. 90 462. 00 297. 00 6,315 1,754. 50 2,663. 30 1,295. 20 392. 20 1,389. 60 933. 00 565. 00 59. 00 Do No tC op yo Sales Domestic Export Source: Casewriters, compiled from data listed in Porsche Annual Reports, 1995-2002, http://www. orsche-se. com/pho/en/ investorrelations/mandatorypublications/, accessed December 2005. Note: HGB and IFRS denote accounting standards. In 2003 Porsche adopted IFRS, or International Financial Reporting Standards. 16 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 511-068 rP os t Porsche: The Cayenne Launch Premium SUV Market Information (1996–1998 forecast) (in units) Exhibit 4 400,000 350,000 300,000 op yo 250,000 200,000 150,000 100,000 0,000 0 1996 tC Luxury 1997 Upper middle class 1998 Middle class Do No Source: C asewriters, compiled from data contained in IHS Global Insight Report, â€Å"World Light Truck Industry Forecast†, 1999. 17 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. – –