Pelagian Culture Essay Example | Topics and Well Written Essays - 750 words

Pelagian Culture - Essay Example Original sin and overemphasized necessity in Divine aid were considered as the fetters for human. Therefore, the essence of traditional Pelagianism was in negation of original sin influence upon human nature and in neglecting of Divine aid role for human salvation. Promptly these ideas were transformed into several moral principles, namely that human will is capable of choosing good or evil without Divine aid, and that humanity has full control and responsibility for its own salvation in addition to full responsibility for every sin. These old ideas are in a heart of modern society. Indeed, most of us live inspired by ideas of independence, self-sufficiency, and also responsibility for our free choice. However, allegorically some of us build our houses upon the sand. "And every one that heareth these sayings of mine, and doeth them not, shall be likened unto a foolish man, which built his house upon the sand. And the rain descended, and the floods came, and the winds blew, and beat upon that house; and it fell: and great was the fall of it." (Matthew 7:26-27). Are we strong enough to make the right choice between good and evil without God's will inside of us Are we so wise to disclose consequences of our actions hidden in future Last Last questions are contra-Pelagian for the "no" answers. It is interesting that these questions will become pro-Pelagian rhetoric for the "yes" answers assumed. It seems that psychologically Pelagian culture is a culture of self-confident and active individuals. And vice versa, non-Pelagian culture is "suited" for submission and confidence in God's will. For instance, Pelagius places free will at the basis of all turning to God for grace; see St. Augustine's critique in (Book I, chapter24). Then, doctrine of Pelagius somewhat conflicts with the words of Christ: "Without me ye can do nothing" (John 15:5); see details in St. Augustine (Book I, chapter 30). It seems that for modern human being non-Pelagian culture is too passive and internal oriented. However, I suppose that this is essential feature of true Christianity. Of course, both Pelagian and non-Pelagian cultures have positive and negative aspects. To disclose these ones, let us consider the case of real person which tried to balance between own freedom and responsibility. This is the case of Albert Speer, the first architect of the Third Reich. He was talented designer having numerous architectural ideas. And he wished to realize them all. This was the case when individual wants to be self-fulfilled, but self-fulfilled at any price. It is important that this is a typical case for Pelagian (sic!) culture. Moreover, Speer was capable to understand and then realize monstrous architectural visions of Hitler. Therefore, he had access for almost all intellectual, financial and human resources of Nazi Germany. In other words, his free will was supported by external forces. And Speer worked. He felt oneself as a creator of beautiful, perfect and immense constructions. But simultaneously he agreed with the forced evictions of Jews from their houses t o make room for his plans, and also agreed with usage of the slave labour to build his constructions. After years, Speer acknowledged his own guilt, but as guilt of blinded creator with "see no evil" attitude towards the

History and description of Coca Cola

History and description of Coca Cola Coca Colas history can be traced back to a man called Asa Candler, who bought a specific formula from a pharmacist named Smith Pemberton. Two years later, Asa founded his business and started production of soft drinks based on the formula he had bought. From then, the company grew to become the biggest producers of soft drinks with more than five hundred brands sold and consumed in more than two hundred nations worldwide. Although the company is said to be the biggest bottler of soft drinks, they do not bottle much. Instead, Coca Cola Company manufactures a syrup concentrate, which is bought by bottlers all over the world. This distribution system ensures the soft drink is bottled by these smaller firms according to the companys standards and guidelines. Although this franchised method of distribution is the primary method of distribution, the mother company has a key bottler in America, Coca Cola Refreshments. In addition to soft drinks, which are Coca Colas main products, the company also produces diet soft drinks. These are variations of the original soft drinks with improvements in nutritional value, and reductions in sugar content. Saccharin replaced industrial sugar in 1963 so that the drinks could appeal to health-conscious consumers. A major cause for concern was the inter product competition which saw some sales dwindle in some products in favor of others. Coca Cola started diversifying its products during the First World War when Fanta was introduced. During World War 1, the heads of Coca Cola in Nazi Germany decided to establish a new soft drink into the market. During the ongoing war, Americas promotion in Germany was not acceptable. Therefore, he decided to use a new name and Fanta was born. The creation was successful and production continued even after the war. Sprite followed soon after. In the 1990s, health concerns among consumers of soft drinks forced their manufactures to consider altering the energy content of these products. Minute Maid Juices, PowerAde sports drinks, and a few flavored teas variants were Coca Colas initial reactions to this new interest. Although most of these new products were well received, some did not perform as well. An example of such was Coca Cola classic, dubbed C2. Coca Cola Company has been a successful company for more than a century. This can be attributed partly to the nature of its products since soft drinks will always appeal to people. In addition to this, Coca Cola has one of the best commercial and public relations programs in the world. The companys products can be found on adverts in virtually every corner of the globe. This success has led to its support for a wide range of sporting activities. Soccer, baseball, ice hockey, athletics and basketball are some of these sports, where Coca Cola is involved (Bell, 2004). The company is listed in the New York Stock Exchange, the SP 500 index and the Russell 1000 Growth Stock Index. As of 2010, company had an operating income of more than 8 billion US dollars with an asset base worth more than 72 billion US dollars. The current chair and chief executive is Muhtar Kent. This is particularly impressive for a company, which spends millions annually on lobbying and related expenses. Competition between Coca Cola and its rival, PepsiCo has always been an exciting affair. In 2008, PepsiCo acquired the majority share of a leading Russian juice company called Lebedyansky, securing a firm foothold in the vast region. A year later, Coca Cola responded by purchasing Russias largest juice maker, Nidan Soki, a move which reduced PepsiCos influence in the region. While some saw Coca Colas action as retaliation, analysts viewed it as a way to compete (Ilya Plakhinas). Russia being a vast country with many people, presents a potentially lucrative market to anyone who secures the firmest foothold, which is essentially what both companies attempt to do. President of the region, Ahmet Bozer, summarized his companys actions as a commitment to direct more investment in Russia. Bozers comments are reflected by the fact that Coca Colas investment in Russia exceeds 2 billion US dollars, distributed over two decades of commitment to this lucrative market. One billion US dollars was earmarked for the same market as Coca Cola strives to introduce more investment in Russia and the Eurasian market. Before the transaction was finalized, Nidans projected earnings before taxation and amortization was about 45 million US dollars. For a company as large as Coca Cola to invest in a company this size, the net benefits must have been identified as essential. This is the case since the small business represents Coca Colas entry into the Russian market. So faithful was Coca Cola in the potential of Russia that, they even to choose to pay off Nidans debts. 1.2 Problems facing Coca Cola It being a producer of soft brinks and associated beverages, Coca Cola has always had the issue of environmental pollution and sustainability through recycling as areas of concern. This prompted it to take the unusual initiative of requesting retailers to return the unique recyclable racks provided along with stocks. Earlier on, the company had started a program where retailers were provided with unique cardboard racks for use exclusively with Coca Cola products. The company identified the need to create such a program in order to establish synergy between Coca Cola and its distributors. The issue of environmental degradation has been one of considerable concern for the Coca Cola Company for a long time. This is due to nature of its main products, which require attractive yet disposable packaging. While the company deviated from using glass as its original packaging material in favor of aluminum and plastics, these present the problem of pollution. The concern for preserving our environment has become a significant factor even among potential customers considering buying or not. The Hartman Group in the United States researched on this and concluded 70 percent of potential buyers consider sustainability. With this in mind, companies like Coca Cola have come up with initiatives to ensure they portray this concern for our environment as they go about their business activities (Foust 2006). While Coca Cola works with retailers in United States, consumers have not been left out. The company started a recycling program for their soda can which saw the companies recycle over 700million kilograms of aluminum cans in 2010. In addition to the tremendous savings incurred, the company is recognized for its concern for the environment. This boosts a companys image since concerns about pollution are wide spread among consumers of these products manufactured by companies like Coca Cola. While companies like Coca Cola are always associated with positive results and things, sometimes they face scandals and libels, which undermine their name and alter their representation in society. Coca Cola has had its fair share of these, and although most have been fought off and settled amicably, it is difficult to pin point the culprit in any of them. It is however worth noting that Coca Cola Company is a large multinational, and will usually do anything possible to survive as has been demonstrated many a times. In 2006 and 2007, Coca Cola faced harsh action in the form of demonstrations in some university campuses due to allegations that it had facilitated the murder of eight employees in Colombia, and the unjust jailing of scores more on nonexistent charges. Trade union legend Ray Rogers started this wave of campus boycotts with a view to calling for justice. His actions led to the banning of Coca Cola products in some universities and demonstrations in others. While these actions seem to have noble intentions, the company suffered unfavorable publicity, and a tarnished reputation, which though negligible in fiscal terms, have a long-lasting effect on image. 1.3 Coca Colas PR Strategy In terms of public relations, Coca Cola has several opportunities. The first, and perhaps most notable, is global warming and environmental degradation. Bottled products account for a big portion of the effects of pollution since they are products, which require heavy industrial involvement in production. The recent moves by this great company to reduce its contribution to global warming have been received with admiration. This is because one cannot help but appreciate the concern for our environment from a company that operates more than two hundred thousand diesel vehicles in America alone. Rapid response to inquiries and public concern are an opportunity for Coca Cola to improve its public relations strategy. Since the company will always face scandalous investigations and accusations, handling these issues in a timely fashion, and prudently will assist in their amicable settlement. Two such cases in which the company handled things in this fashion are that of poison Coke in Belgium, and the Indian bottling plant that polluted water in Plachimada, Kerali. Sustainability presents another avenue in which Coca Cola can improve its public relations strategy. Since most consumers have been found to consider the sustainability of a products manufacturer in their production processes, Coca Cola has taken advantage of this and started numerous programs aimed at increasing recycling. The fact that most of these organizations derive their raw materials from our planet is a cause for concern. With this in mind, Coca Cola should adopt even more measures to reduce their reliance on natural resources. Coca Cola Companys overall public strategy is based on creating a source of enjoyable yet safe, distinct and pleasant tasting drinks which appeal to all people regardless of age, gender, locality and affiliation. They have been successful in some respects at achieving this, but more needs to be done to address the issues of consumer perception of Coca Cola products and their impact on health. This has somewhat remained a gray area in its strife to remain significant to the health conscious who make up most of todays consumer market. Coca Colas strategy in news media relations is geared towards the adoption of more friendly relations so that in times of crisis, these media houses take time to assess the credibility of any information they might come across before announcement. Since this is a successful company, many are the times that scandals will be presented to news media organizations for announcement and dissemination. It would be in the companys best interest to create a favorable rapport with media houses. In addition, they are the same people Coca Cola uses in advertisement. The target audiences are all potential consumers and existing ones with the channels used being television, videos, pictures and the Internet. Coca Cola Companys strategy for community relations is directed at creating a lasting relationship with the people who also form the consumer base of the company. The company aspires to ensure these communities feel cared for in all relevant aspects in this relationship, starting from quality of products, their integrity and safety and their overall impact on the nature as outlined in its mission to conserve the environment. In doing this, media has been used since there is no specific target in matters concerning our environment. Concerning the companys public relations strategy on government relations, Coca Cola strives to work more closely with the existing authorities of all markets and their governments in order to ensure there is beneficial coexistence. The implementation of such entails advertisements tailor made to lubricate relations between Coca Cola and the governments of these specific areas. In crisis management, Coca Cola needs to do a lot more since there are many instances where the company has handled these badly. The manner in which you handle a crisis determines its outcome. In Indias case of contaminated drinks, the company acted in a terribly ignorant manner from the very start. Instead, they should have reassured the government, stakeholders and especially consumers by carrying out an open inquiry and investigating the matter openly. Indias perception of Coca Cola and its products would have been different had the management chosen to use the media to reassure all stakeholders. Coca Colas employee communication strategy is aimed at ensuring the companys most valuable assets are well catered for. This is being done by clearing all communication lines between them and management so they do not feel left out or ignored. To achieve this, company has adopted social media and other similar communication avenues. They come in the form of company forums and websites. Coca Cola can benefit immensely from forming another crisis management strategy since the current one is not working. Its effectiveness has not been identified in any of the crisis Coca Cola has found itself facing. Using an example of the incident in India, where contaminated products were discovered, the companys image would have suffered less damage had those responsible for that crisis handled it better. Instead of implementing damage control measures, they cultivated doubt in the findings and its evidence. Concerning its strategy on government relations, Coca Cola should strengthen, existing ties by avoiding the embarrassment of denial incase of any scandal. The companys relationship with the Belgian government suffered slightly as compared to that with the Indians since, in the former case, no denial was done, as was the case in the later. Instead, Coca Cola focused with reassuring its stakeholder while carrying out independent investigations and liaising with local authorities. This led to contempt between those involved and Coca Colas loss of the Indian market. In respect of what happened in Colombia, this company needs to address the issue of employee communication. When an organization has poor communication lines, external influence from extremists and rogue trade unions becomes a real threat. Although the country was undergoing civil wars, had the company invested more in ensuring proper communication, maybe no employee would have died. 1.4 PR Strategy vs. Advertising In advertising, Coca Cola uses a range of methods all designed to ensure potential customers are informed of the existence of this great product. The most widely used of these is television adverts. Since this is one of the most widely available forms of leisure, the company has invested a lot of resources to ensure that any country with a television network runs its advertisement. This is consistent with its public relations policy of educating as many of the masses as possible about its products. Print media follows television as the second most popular means of accessing information for potential consumers. With this in mind, Coca Cola has dedicated a lot of resources in ensuring its full range of products is advertised in news papers, magazines and books. This is in line with its public relations policies of availing information to as many as possible and obtaining feedback in the form of complaints and complements. The Internet is penetrating society extremely fast. This is why Coca Cola has recently resulted to using adverts within websites so that as people navigate through them, they should across these adverts. Although the Internet is yet to reach many parts of Africa, this does not mean people cannot see these advertisements. Many cell phone service providers have incorporated Internet services into their package. While this works well for the company, it can be used maliciously against the same. Here, anti-Coca Cola propagandists use this resource to spread their myths. Billboards and other forms of signage play a vital role in Coca Colas advertisement campaigns. They are a principal form of advertisement especially within towns, meaning that their message reaches many people since they are usually large and are placed at strategic positions. Their use is consistent with the companys public relations policy of reaching out to as many of its consumers using the most effective means (Kotler, 2006). Point of sale advertisements in the form of stickers and stamps are another means through which the company seeks to advertise itself. Within most stores, supermarkets and shops, Coca Cola products are visible in the distinct red color that has come to be synonymous with the drink. Other Coca Cola products are also represented in their respective colors, such as green standing for Sprite and Orange for Fanta. Promotions are another method the company utilizes to advertise itself. The most common of these is in restaurants where Coca Cola drinks are offered free with other food products the eatery serves. McDonalds offer of a free coke for every burger is an excellent example of this. In addition, it should be noted that in choosing which product to partner with, compatibility of the products involved is crucial. This is the reason why such promotions are only carried out with products of a similar nature. 1.5 Effectiveness of Coca Colas PR compared to PepsiCo. A comparison between Coca Cola Company and its greatest rival PepsiCo reveals fascinating facts about how both treat marketing. From a web-marketing standpoint, both companies obviously have decent websites but they are different in their content. While competitors copy their rivals, the two choose to do this differently. Coca Cola Companys website directs one straight to other informative links and websites. PepsiCos websites on the other hand, opens with an animation of a glass being filled with the drink. The Coca Cola website does not offer a prospective customer chances to win gifts like the PepsiCo one where one has the chance to win tickets to an American football game or a car. The two websites treat one differently since one assumes a person is looking for information while the other assumes you would be seeking information and the chance to win a gift. These differences might assist the respective companies boost their images. If one was looking for information about PepsiCo products, their search would be a bit problematic since it is biased to displaying promotional information. This is however not the case in the Coca Cola one where emphasis is given to product information as opposed to promotional services and opportunities. This clearly demonstrates a difference in the opinion between the two soft drink giants concerning information-seeking habits of consumers. While the above are differences in the two companies marketing policies focused on web marketing, similarities are also present. One is quick to notice how both have chosen bright colors in their websites. Seemingly, both companies know the importance of using catchy color schemes on websites adverts in order to attract attention and effectively advertise ones products. PepsiCo uses blue while Coca Cola chooses to stick with red. Websites can be used as information-gathering tools, and both websites exhibit knowledge of this due to the information they have on their footers relating to the total number of visitors to their websites. This also means that feedback is collected in both websites since there are contact boxes where this is collected. In addition, the companies might use these figures to plan marketing strategies. Customer relations and their management is a vital aspect to consider when advertising or marketing your products. Both PepsiCo and Coca Cola Company exhibit knowledge of this since contact aids such as email address, physical address and telephone contacts are provided. The presence of these details means both companies value their consumers and would like to hear from them, or assist in case it is necessary. Forging lasting relations is crucial in boosting corporate image and boosting profitability. According to Kotler, consumers categorize products and internalize them in their minds. This is what both companies have used to their advantage by clarifying them and terming them as superiorities. When a consumer notices a company which puts their categories into consideration, they opt for that. These differences might be a small as size or coloring but they can be the deciding factor for a consumer. Physically, Coca Cola has remained the same for a long time. The company chose to stick with the original style in styling the logo since they believe change might not work for them. PepsiCo on the other hand are a dynamic lot with their product having undergone many changes over the years. This shows a belief in the changes that society itself undergoes and the dynamic nature associated with such goods. Another distinct difference between the two is the choice of icon in marketing. Coca Cola Company uses a bottle, which has been the icon of the company for a long time. This dates back from the late 1800s, when the first symbols were forwarded for use as the company icon. PepsiCo has no distinct icon that can be termed as its marketing symbol. Coca Cola Company bought Columbia pictures, a motion picture company, to bolster its advertising campaigns making them more personalized and cheaper to produce. This advertising strategy worked quite well until Columbia pictures stated incurring losses prompting its parent company to sell it off. PepsiCo never bought a film Company to better its marketing efforts but still went on to become a stiff competitor to Coca Cola. In their advertising activities and public relations, PepsiCo have found themselves in positions where under hand activities were the only solution. They used such in the form of ridiculing advertisements and tasting competitions. Coca Cola on the other hand have always relied on the full name their brand enjoys and popularity of their soft drinks, never on shadow tactics. This ensures their continued success in this industry. In running their Coke side of life advertisement campaign, Coca Cola came across as an original as was reported in a survey that followed its launch. PepsiCo failed in their use of an attractive woman, which came across as being a bit common. Had they chosen another plot in their Max your life campaign, maybe revenues would have soared over Coca Colas. This strategy of Coca Cola, where they use catchy yet original advertisements, has seen them surpass their rival often. During occasions where significant sports are taking place, both countries usually choose different strategies to market themselves. During the 2006 soccer world cup, for example, PepsiCo chose to use a soccer star in their campaign. On the other hand, Coca Cola, decided to utilize a new bottle design in order to boost consumption of their soft drinks during this important affair. While both companies have a strong presence in sponsoring sports and games, PepsiCo exhibits some sought of bias in their sponsorship deals. Coca Cola on the other hand have thoroughly diversified their deals to incorporate both genders in many parts of the world participating in various disciplines. A few notable examples that come to mind with respect to Coca Cola are the 2002 and 2006 FIFA World Cups, the FIFA Womens World Cups in 1993 and 2003 and the FIFA U-17 Championships in 2005. In conclusion, Coca Cola has identified China as the focus of its future expansion and growth plans. With a population exceeding 1 billion, and the fact that it is one of the fastest rising economies in the world, mean that many international companies have intentions of permeating this potentially lucrative market. Coca Cola already has three plants and has earmarked additional 2billion US dollars for investment in China.

Genghis Khan Essay -- Biography History Khan Essays

Genghis Khan   Ã‚  Ã‚  Ã‚  Ã‚  Arriving in this world with a blood clot in the palm of his hand , Genghis Khan was destined to be a hero. In 1167, Genghis Khan was born to Yisugei, Chieftain of the Kiyat-Borjigid, and his wife Ho’elun. He was named Temujin (which means blacksmith) after a Tatar Chieftain his father had just captured. As a young boy, Temujin experienced many hardships after his father was poisoned by a group of Tartars. This loss of their leader caused the Kiyat tribe to scatter, leaving Temujin and his family alone. Yet, with much will power and determination Temujin developed into an intelligent, brave warrior at an early age.   Ã‚  Ã‚  Ã‚  Ã‚  In 1189, when Temujin was 22, he was elected new leader of the Kiyat tribe. His rise to power came when a rival clan, the Merkit, captured his wife, Borte. The Khan of the Kereit tribe, Toghril, helped him by providing him with 20,000 soldiers. Also, Jamuka, a childhood friend provided an army. With their help Temujin destroyed the Merkit tribe. Soon after this victory his allies abandoned him and plundered his property, but he ‘tactfully’ captured them, taking their men and turning them into his soldiers and servants.   Ã‚  Ã‚  Ã‚  Ã‚  This victory laid the foundation for his rise to power. He started taking over other clans one by one. Eventually his alliance with Toghril dissipated and he also took over the powerful Keriet tribe. This event caused him to be in direct competition for ruling power with his former ally Jamuka. Many of Jamuka’s...

Assimilation of Native Americans Into Society Essay

â€Å"How different would be the sensation of a philosophic mind to reflect that instead of exterminating a part of the human race by our modes of population that we had persevered through all difficulties and at last had imparted our Knowledge of cultivating and the arts, to the Aboriginals of the Country by which the source of future life and happiness had been preserved and extended. But it has been conceived to be impracticable to civilize the Indians of North America – This opinion is probably more convenient than just. † (Henry Knox to George Washington 1970’s) Since the founding of The United States of America, the complication of dealing with the indigenous Native Americans has been prevalent. The opening quotation emphasizes the idea that our fathers grappled over what to do with the Indians since the founding of our country. Post colonial era Native Americans were discriminated against in a battle defined by â€Å"the white man versus the red man†. As American settlers and institutions expanded westward, the Indians were pushed aside not only by containing them in reservations but were often disregarded as Americans from the â€Å"civilized† and educated white American. These prejudices even came from far up the totem pole in Washington. The politics in the 19th century American Government regarding the indigenous people were defined by an era of the â€Å"Americanization of the Native American people†. This analytical research paper will address the issue of Native American assimilation and display how the efforts made by the American Government failed to shed a positive light on the indigenous people. It will also explore the founding of specific schools for Indian children, namely the Carlisle Indian Industrial School for Native Americans. The school was intended to integrate Indian children into western society by educating them and transforming their cultural beliefs. Although founder Richard Henry Pratt had good intentions for the school, it ended up doing more destruction to the Indians than success assimilating them into American society. Before the assimilation of Indians can be fully understood, the history of the segregation of the red man must be established. â€Å"Before the Civil War it had been possible to imagine that Indians and whites could remain permanently separate from on another† The national census of this time was that the minority ethnic groups did not belong in the same category as the â€Å"Americans†, and that they should remain a separate existence. The general idea was that separation was the easier and â€Å"safe† way to deal with the ethnic differences rather than entering into a group conflict. Native Americans were easier to separate into cultural groupings, because they were the ones who chose to do so. Blacks, Irish, and Native Americans alike, Hoxie asserts, â€Å"In this compartmentalized society, minority groups welcomed the opportunity to be socially isolated and culturally autonomous. † As the whites expanded westward eventually towards California and Oregon, the separation between the two ethnic groups would no longer be possible. The natives, who once claimed the North American continent as their own, were different from the generality of Americans. They were known as the â€Å"others†. Eventually, with the help of the Indian Removal Act of 1830, the Indians were pushed back to the west and there was a line known as the â€Å"Indian frontier†. This land came with a promise that the white man would not desire this land for generations. But as the nation expanded, the indigenous people were forced onto smaller and smaller reservations, which restricted them economically. They were mostly restricted from food and other resources. Brenda J. Child emphasizes this in her book Boarding School Seasons as she makes claims that the Ojibwe once made a lucrative profit farming rice, but â€Å"were left with a fair amount of swampland after their allotments had been made†¦Few Nett Lakers were able to maintain adequate gardens, but traditional subsistence activities, tourism, and off reservation labor maintained the band. † As the struggle to maintain their niche increased, Indians would either have to conform to society, or they would be crushed by it. The early relationship between Indians and whites was defined more like a war than the whites trying to work the Indians into society. Indian territories were often viewed as their own sovereign states rather than occupied American territory. Treaties were often agreed upon in order to separate the red man from the white. â€Å"Humanitarians believed that separation would reduce the level of violence on the frontier and provide Indians with enough time to become civilized† However, the civilization of Indians into American society would not happen on its own once the ethnic groups were separated. Political action groups such as the Friends of the Indian were formed. These groups as well as government officials started to change their beliefs into those that the American Indians should be assimilated. Paul Prucha mentions in the introduction of his book that â€Å"government officials and well meaning humanitarians and missionaries had had a hand in the operation and had sought the welfare of the Indians in their attempts to civilize and Christianize them, bringing them into conformity with the patterns of life that marked the white existence. † The goal of these advocates was not only to destroy the Indian and save the American; but more importantly they sought the ideal that assimilated Native Americans would be proof that America was an â€Å"open† society and that by gratifying the wishes of society they could acquire social equality. Henry L. Dawes was one of the outstanding figures leading the Indian policy reform in the 19th century. Dawes served in the United Government; throughout his career he was a congressman, senator, and eventually chairman of the Senate Committee on Indian Affairs. He was an advocate for the allotment of land to the Indians, and the assimilation of the indigenous people into the non-Indian mainstream. He proposed the Dawes Act of 1887, which encouraged Indians to farm by â€Å"allotting† the head of house 160 acres of land. The land was private property, and small portions of it could be shared with members of the family. Dawes held strong opinions for the assimilation of Indians into white man’s society, as he proclaimed in a speech to an Indian reform group in 1884, â€Å"it were worth while to consider whether we could not make something out of him, and for the first time in the whole history of our dealings with the Indians, within a few years, we have attempted to make something out of him. † In this speech he argues that the methods of â€Å"waging war† against the Indian has been failing, and was taking the lives of both the Indian and the white man. Instead he proposes that they be assimilated, and that the Native Americans can be useful in society. He later touches on educating the Native American children, stating, â€Å"Take him as you do other children, and bring him up as you do other children. † Education then becomes a major factor in the assimilating the Native American people. The Idea that targeting the younger generation of the Indian population and shaping them into the mold of an educated white man became prevalent in assimilation techniques. â€Å"Education of the Indians was the ultimate reform† An increase of immigrants from Europe reflected a growing public support for education. Thus, if the children of the Indian were educated, they would catch on in American society and pave the way for future generations. Richard Henry Pratt was an outstanding figure in the Americanization of Native Americans. As a veteran of the Civil War, Pratt fought both alongside and against Indian warriors. He was a proponent of educating the tribal people in order to â€Å"kill the Indian, save the man†. He was well aware of the capabilities of the Indian following his tour of duty with them on the battlefield. When the war was over, Pratt insisted that he took a group of Indian prisoners to Fort Marion in Florida and educate them as well as assimilating them into American culture. He had remarkable success as he educated them in English, Christianity, art, and culture. What brought the success was that he found work for the Indians around the predominately white St. Augustine area. â€Å"He interested white benefactors in his cause and persuaded his army superiors to assign him to the work of Indian education, where he could promote and expand the approach to Indian assimilation that he had begun so dramatically at fort Marion. † Pratt’s motif was straightforward: he wanted complete integration of the Indians into white society, and all of his actions were submitted towards that goal. His next project, The Carlisle Indian Industrial School, was by far his most famous and also controversial way of implementing Indians into society. His idea was to transform the abandoned Carlisle Military Barracks in Carlisle, Pennsylvania into a boarding school for Native Americans. It wasn’t hard to persuade the government to jump on board with his idea, â€Å"Said that the government was about to adopt a new policy with the Indians; that it believed the Indian youth capable of acquiring the same education and industries as our white youth† However, it was relatively difficult to persuade chiefs of various tribes to send their children away with Pratt. In his autobiography, Pratt tells a story about going out west to propose his idea to a chief named spotted tail and after his proposal he receives the response, â€Å"We are not going to give any children to learn such ways† Pratt refutes and claims that if it weren’t for the Indians ignorance and lack of education, the American Government would not be able to take advantage of the tribes if they were educated. The chiefs reconvened and after discussing decided to send their children. In a way, Pratt used slander to get the Indians to give up their children by telling them the kids would come back and contribute. However, Pratt did not want this, as his intentions were to fully integrate the red man into society. The Carlisle Boarding School was founded in 1879. It started with about a hundred Indians and over time expanded to about a thousand. It admitted both boys and girls. Upon arrival, students were required to disrobe from their native clothes and cut their hair. The cloths were shoddy, and Pratt mentions, â€Å"It was the shoddiest of shoddy clothing. † This was the first step towards the transformation to white culture. Although students were provided with an education, daily life was rough for students at Carlisle. Students had to wake early and drill. School schedules were grueling, and the students were often underfed. Sometimes the school seemed like more a labor camp as they were instructed to perform tasks such as â€Å"The authority came, and, directed by the carpenter, the Indian boys dug the holes, set up the post, nailed on the rails and slats, and we soon had a substantial barrier which remained a satisfactory protection during my superintendency. † The school may have taught Indians mechanical and agricultural skills as well as providing an education, but it definitely was not as successful as Pratt Envisioned. There were many successes in the founding of the Carlisle Indian Industrial School, but there were more mishaps. Advocates for boarding schools such as Pratt argued that the separation of Indian children from their families in combination of industrial training would reduce the tribalism in the individual. Brenda J. Child proposes, â€Å"One of the worst ideas about how to best solve the â€Å"Indian problem† mandated the separation of American Indian families. † Homesickness was extremely common in Indian boarding school students, and often led to the students back lashing against authority, or running away from the school. Sickness and death was also a very serious problem at boarding schools. â€Å"Crowded conditions are the perfect medium for the spread of disease. Small pox, chicken pox, diphtheria, tuberculosis, and the common cold killed many of these children and crowding helped spread the diseases to the rest. † Students with serious sicknesses were often sent home because if they died at the school, their reputation would be devastated. The problems seemed to outweigh the advantages at boarding schools, and these factors contributed to the eventual dismissal of Richard Henry Pratt from the Superintendent position. Because Native Americans have always been distinctly different from the rest of society, efforts to assimilate Indians completely into society have been abandoned. There have still been assimilation efforts in the twentieth century, but the ideals behind them have changed. The effort to â€Å"kill the Indian, save the man† has been deemed impossible. Indian schools are successful in theory, but there is a reason that they failed and that Pratt’s unrealistic dream did not come true. Some argue that the efforts by reformers such as Dawes and Pratt were successful, but the truth is that many failures come with successes. As George Washington states, â€Å"When one side only of a story is heard and often repeated, the human mind becomes impressed with it insensibly. † Bibliography Primary Sources Pratt, Richard H. Battlefield and classroom: four decades with the American Indian, 1867-1904. Oklahoma: University of Oklahoma Press, 2004. Coleman, Michael C. American Indian Children at School, 1850-1930. n. d. Child, Brenda J. Boarding School Seasons: American Indian Families, 1900-1940. Lincoln: University of Nebraska Text, 1998. Hoxie, Frederick E. A Final Promise: The Campaign To Assimilate The Indians, 1880-1920. Cambridge: Cambridge University Press, 1984. Prucha, Francis P. The Great Father: The United States Government and the American Indians. Vol. 2. N. p. : University of Nebraska Text, 1984 Duran, Eduardo, and Bonnie Duran. Native American Postcolonial Psychology. Albany: State University of New York Press, 1995. Prucha, Francis P. Americanizing the American Indians: Writings by the â€Å"Friends of the Indian† 1880-1900. Cambridge, Massachusetts: Harvard University Press, 1973 Lee, John. â€Å"Reports of Indian Schools. Annual Report. Washington, D. C: Office other Commissioner of Indian Affairs. † From Library of Congress, American Indians of the Pacific Northwest. (1886) Leupp, Francis E. â€Å"Report of the Commissioner of Indian Affairs. Annual Report. Washington, D. C: Office of the Commissioner of Indian Affair. † Library of Congress, American Indians of the Pacific Northwest (1908) Dawes, Henry L. â€Å"Solving the Indian Problem. † Fifteenth Annual Report of the Board of Indian Commissioners (1883): 69-70. Morgan, Thomas J. â€Å"Supplemental report on Indian Education. † House Executive Document 1, no. 2 (n. d. ): 93-104. Schultz, Jeffrey D. Encyclopedia of Minorities in American Politics : Volume 2, Hispanic Americans and Native Americans. Westport: Greenwood Press, 2000. Secondary Holm, Tom. Great Confusion in Indian Affairs : Native Americans and Whites in the Progressive Era. Austin, TX: University of Texas Press, 2005. Simonsen, Jane E. Making Home Work : Domesticity and Native American Assimilation in the American West, 1860-1919. Chappel Hill: UNC Press, 2006. authorsden. com . â€Å"WHAT WERE BOARDING SCHOOLS LIKE FOR INDIAN YOUTH?. † Hetzel, Theodore B. â€Å"WE CAN LEARN FROM AMERICAN INDIANS. † Journal of American Indian Education 4, no. 3 (1965) â€Å"The Indian School at Chemawa. † The West Shore 13, no. 1 (1887): 5-12. Davis, Julie. â€Å"American Indian Boarding School Experiences: Recent Studies from Native Perspectives. † OAH Magazine of History Vol. 15, No. 2, 2001, 20-22. Fear-Segal, Jackie. â€Å"Boarding School Seasons: American Indian Families, 1900-1940 by Brenda J. Child. † Journal of American Studies 34, no. 1 (2000): 160-161. Hoerig, Karl A. â€Å"Remembering Our Indian School Days: The Boarding School Experience. † Away from Home: American Indian Boarding School Experiences by Margaret L. Archuleta; Brenda J. Child; K. Tsianina Lomawaima (2002): 642-646.

F&B Revenue Management

INSTITUTE OF HOTEL MANAGEMENT, AURANGABAD Synopsis – Food and Beverage Revenue Management: Implementation at „The Westin Hyderabad Mindspace? Kussh Raathi (H – 16045) â€Å"Submitted in Fulfilment of the Requirement for B. A. (Hons) in Hotel Management† THE UNIVERSITY OF HUDDERSFIELD, UNITED KINGDOM July 2010 food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 DISCLAIMER This is an academic endeavour does not necessarily reflect the view of IHM – A and/or hotel chains discussed herein and are not binding on the Institute and/or the companies in any manner.This report is the intellectual property of the author and/or IHM – A and the same or any part thereof may not be used in any manner whatsoever, without express permission of the author in writing. The assignment does not aim to reveal any information confidential to the hotel companies discussed. No one provided significant profession al or personal review assistance to the person signing this disclaimer and report. This is all authors‘ work and does not necessarily represent the views of either IHM – A, India, or University of Huddersfield, United Kingdom, or any other party.Kussh Raathi (Year 3, H – 16045, Hotel Management, Institute of Hotel Management – Aurangabad) July 31, 2010 raathi, k. (h – 16045) page 2 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 ACKNOWLEDGEMENT As the author sums up the draft of this assignment, he reminisces appreciatively the contribution and extends his heartfelt gratitude to the following persons lacking whose support and help, this report could not have taken its present form: Mr.Anand Iyengar, Understudy Project Mentor and Academic Registrar, Institute of Hotel Management, Aurangabad (IHM–A), for providing me with the opportunity to work on an interes ting project like this, for his continuous support, feedback and guidance. A special thanks to Mr. Rahul Upmanyu, Revenue Manager, The Westin Hyderabad Mindspace, who is the most responsible for helping me in the compilation of this project report as well as the challenging research that lies behind it. Without his encouragement and constant guidance, I could not have finished this report.He was always there to meet and talk about my ideas, to proofread and mark up my papers and chapters, and to ask me good questions to help me think through my problems (whether philosophical, analytical or computational). Sincere thanks to the entire executive committee at The Westin Hyderabad Mindspace for their unconditional support, encouragement and guidance. Kussh Raathi July 31, 2010 raathi, k. (h – 16045) page 3 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ uly 2010 ABSTRACT / EXECUTIVE SUMMARY Purpose â₠¬â€œ This paper aims to suggest the efficacy of revenue-management levers to improve a restaurants‘ revenue through process control for customer profitability through literature review and Seasonal Tastes as an excellent study site in south-India‘s largest luxury hotel. Design / methodology / approach – The research finds its basing upon a popular/busy coffee shop called Seasonal Tastes at The Westin Hyderabad Mindspace, Andhra Pradesh, India.The study presents the state-of-the-art of the literature review related to restaurant revenue management and a case study of a restaurant with high operational complexity and an extensive customer product and commercial service line. The literature review demonstrates the few empirical studies that have actually addressed the application of revenue management systems in the food and beverage industry. Much of this section comes from the article by Kimes, S. (2004). Findings – Seeking to augment revenue and also to imp rove customer service, the restaurant analyzed its operations and customers‘ characteristics.It found that its table-mix (mostly 6tops) was inappropriate for its customer base (mostly singletons, couples and groups of three/four). It also found that it could tighten up its post-meal procedures, particularly those involving settlement. The findings of the study show that the measurement of cost-to-serve provides specific and detailed customer information that enables a more comprehensive customer profitability analysis than the classical paradigm. Research limitations/implications – The result would lead to an increase in revenue (from higher occupancy) that paid for the increased capital costs in one year.The revenue improvement in this instance was to guests‘ advantage, since menu prices were not changed as part of this revenue management implementation. Originality/value – The paper includes a comprehensive review of literature and the empirical case stud ies by Kimes (2004), Thompson (2009, 2003, 2002), Kimes et al (2007), offers additional insights in food and beverage revenue management and analysis. Paper type – Research Project raathi, k. (h – 16045) page 4 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ uly 2010 1. Introduction C efficiency. ross (1997), defines the concept as, ? the art and science of predicting real-time customer demand at the micro-market level and optimizing the price and availability of products‘. Conceptually, revenue management is a micro-economic concept about how to manage the relationship between supply and demand to maximize revenue potential. Simplified it means – selling the right product to the right customer at the right time for the right price on the right distribution channel with the best commission Revenue Management ReviewThe era has ended when revenue management can stand alone as a tact ical approach to rooms management, with technological and management support, revenue management must be and is being integrated into all aspects of hotel management marketing and operating strategies. Going beyond its role of managing room inventory, revenue management will consider total revenue contributions, including group business and its ancillary revenues. Because prices are essentially transparent, hotels will need to consider customer price elasticity and not simply match competitors‘ prices, with a goal of ptimizing prices. Beyond that, revenue management can be used to manage all of the hotel‘s revenue streams, in part by considering the interaction of room sales and food and beverage sales. While revenue per available room (RevPAR) has been a good measure of performance, a revenue generation index, which compares competitors‘ RevPARs, is even more useful. Even more sophisticated is a revenue opportunity model, which monitors the effectiveness of invent ory controls and analyzes the effects of revenue management decisions.Perhaps most promising is a customer-focused approach that tracks customers‘ purchases and targets promotions based on an understanding of customers‘ responses to prior offers. Hotels can benefit by increasing revenues and profitability through revenue management by optimally matching demand to available supply (rooms) to accommodate the most profitable mix of customers at each property. In the lodging industry, revenue management is the process of selectively accepting and rejecting customers by rate, length of stay and arrival date to maximise revenues.The process of revenue management generates incremental revenues (Kimes 1999; Cross 1997). raathi, k. (h – 16045) page 5 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 2. Theoretical Framework / Literature Review From its origin in the airline industry nearly sixty years ago, revenue management has expanded to other hospitality industries, notably lodging and rental cars. More recently, ? nontraditional? ervice industries, such as restaurants, golf courses, and casinos, have begun to adapt and apply revenue management principles. Need for a holistic approach towards RM Revenue management of hotel inventory has long been the practice for hoteliers worldwide, both large and small, chain and independent. Hotel operators understand and accept the need to forecast customer demand at some level of detail and recommend product availability conditions that will deliver the maximum revenue based on that demand.However, for the most part, traditional hotel revenue management is focused purely on maximizing sleeping room revenue with no regard for any other revenue associated with the hotel guest. Many companies are now realizing that there is a strong need to adopt a more holistic approach to revenue management across the enterprise. This involve s two distinct components. First, there is a need to capture and track all revenue associated with hotel guests in order to segment customers more discretely based on their value—this can come from food and beverage, spa, event venues or, in the case of a casino/hotel, gaming.Second, and equally important, operators need to begin to apply the same principles of revenue management employed at the hotel to each discrete revenue source—there has been a strong push for revenue management in restaurants, spas, event venues and even on the casino floor. (HSMAI Article, published on March 10, 2010) While many hotel companies have implemented loyalty programs, the real opportunity lies in the ability to capture data about the customer beyond the hotel in order to truly capture the guest‘s profitability, not the room revenue generated.There has been a lot of altercation lately about the move from REVPAR to GOPPAR, TOTALPAR or some other such acronym; this is where those c ompanies who practice Total Hotel Revenue Management will win, in realizing it is not about the room, it is all about the guest. raathi, k. (h – 16045) page 6 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 Restaurant Revenue Management (RRM) Revenue-management tools can be used by restaurant managers to analyze the ffects of process-control changes. A dinner house seeking to shift demand and to achieve greater facility utilization during busy times analyzed the factors that caused delays in the service process—and thus increased the guest queue. Although the restaurant was able to hasten the actual dining time, much of the slack was found in the processes that occurred before and after the actual dining period. Moreover, the restaurant managers were able to analyze customer-arrival and market-mix data in relation to the restaurant‘s table mix.Seat occupancy was improved by mat ching the table arrangement to the customer mix, and table turns were increased by improving the kitchen operations so that front-of-the-house functions could be tightened up. In particular, end-of-meal steps were speeded up. As a result of its process improvements, the restaurant enjoyed revenue growth greater than that of comparable restaurants. (Bertsimas and Shioda, 2003) The challenge of a floor manager is to decide when and where to seat each arriving customer.If there are only tables of four available and a party of two enters, does he seat the party at the larger table or reserve it for a larger, more revenue-producing party? In addition, if the restaurant takes reservations, he needs to further decide how to seat walk-in customers so that they would not take tables away from the reservation customers while considering the possibility of no-shows. These are important practical issues for restaurant managers, where in some cases a good floor manager can make the difference of couple of hundred dollars per night (Kimes, 1999).Thus, a tool that can help floor managers better make these decisions would be of significant value to a restaurant. Genesis / Background Nestled amidst the emerging central business district of Cyberabad-Madhapur, the fastest growing commercial destination of Hyderabad, also known as the ? new Silicon Valley of India? , The Westin Hyderabad Mindspace (TWHM) identifies myriad possible aspects that can offer a sense of wellness to business travellers when they stay at the hotel. The author captures the unique ? wellness‘ service approach that the hotel has on offer. The 428-room property is the largest one in Hyderabad.Opened in December 2009, the property managed an average occupancy of 50 per cent until March end. The revenue share raathi, k. (h – 16045) page 7 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 of the hotel is 70:30 for room/F&B and banquet/conferences, respectively. Effectively, it is being positioned as the benchmark that the brand wants to set in India and that it is known for internationally. Nancy London, Vice President – Global Brand Leader, Westin, explains, â€Å"The idea is to preserve wellness in travel.Customers from various facets could derive this wellness factor where they interact in our hotel as our guest. So, each and every aspect has to offer that very essence of wellness that Westin stands for. † 3. Approach / Methodology: A Case Restaurant operators can manipulate two main strategic levers to manage revenue: price and meal duration. Price is a fairly obvious target for manipulation, and many operators already offer price-related promotions to augment or shift peak-period demand (e. g. , early bird specials, special menu promotions).More-sophisticated manipulations of price include daypart pricing, day-of-week pricing, and price premiums or discounts based on party or table size. Managing meal duration (i. e. , speeding table turns) is a bit more complicated, as discussed ahead. For example, meal duration depends in part on the efficiency of the restaurant‘s service cycle, as well as on the foible of customer arrival patterns and diners‘ deciding to linger (or not) after the meal. However, as explained further, duration control has great potential in a revenue-management strategy.To develop an RRM program, managers should (1) establish the baseline of performance, (2) understand the drivers of that performance, (3) develop a revenue management strategy, (4) implement that strategy, and (5) monitor the strategy‘s outcomes. This paper discusses and illustrates how to establish the baseline and understand its drivers, and how to develop a revenue-management strategy. The article starts off with a brief introduction to revenue management, followed by a description of the restaurant that provided data for this study. In so oing, the author analyzes the restaurant‘s baseline performance, including seat occupancy, revenue per available seat hour (RevPASH), party size/mix, and dining duration. The author also analyzes/examines the possible causes of performance. After reviewing the revenue management strategies for duration control the author talks about how managers could implement those strategies. The article concludes with an evaluation of the said restaurant‘s revenue-management strategy and recommendations for how other restaurateurs can implement revenue management. raathi, k. (h – 16045) page 8 of 16 understudy project ood & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 With all the data that are collected by the POS software, a revenue-maximizing seating policy can be utilized. The present paper stems from the belief that restaurants can increase their revenue by optimizing their nesting decisions, i. e. , when to save tables in anticipation for larger parties, even when there are smaller parties currently in queue. To control duration, managers can use either internal means (i. e. , those that do not involve customers) or external means (that do involve customers).The chief internal duration-control methods involve regulating and redesigning service processes (including speeding up service to promote customer turnover and providing an optimal table mix), forecasting customer arrivals (i. e. , forecasting the timing and party-size mix of arriving customers), and implementing inventory controls (usually through overbooking, if a restaurant takes reservations). External methods include booking fees or guarantees (e. g. , having guests guarantee reservations on a credit card) and such behavioural approaches as restricting the length of time that customers can use the table.Not surprisingly, most firms have chosen to manage duration internally, so as not to risk dissatisfied customers. The Study Site As part of the research the author developed an RRM system for an extensive, casual coffee shop in Mindspace, Hyderabad. Seasonal Tastes, a 208-seat restaurant, serves regional Indian and international favourites, and also features a live show kitchen concept that has Chefs actually interacting with guests while serving. The oriental theme show kitchen here takes authenticity to new heights while the centre piece bread oven bakes freshness into every slice. Its average check is approximately $18 (INR 840/-).The Japanese Sushi counter, the cold plate dessert counter, the SuperFoodsTM offering for breakfast and the Spa cuisine make the a-la-carte options here as appetizing, the roasted beef and goat cheese gateaux, the fishand-chips, the roasted lamb chops and the mango cheese cake are signature dishes. The restaurant is open 24 x 7 and has a manager always on duty. The next section describes the type of data and analysis necessary to establish a baseline, the tools that can be used to under stand actual service-cycle performance and operational tactics that are part of a revenue-management strategy.The researcher uses his experience at Seasonal Tastes to illustrate the discussion. raathi, k. (h – 16045) page 9 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 4. The Five-step Revenue Management Approach The managers and the author used the five-step process explained here to develop a revenue management strategy for the restaurant. Rather than attempt price-related promotions, the focus was on internal revenue management, specifically related to the duration of the dining experience.Although the data presented here are specific to Seasonal Tastes, the process and analyses described can be applied to any restaurant. Step 1: Establish a Baseline The first step in the process was to establish the restaurant‘s baseline performance. Baseline statistics were drawn from five sets of four-week periods of point-of-sale (POS) data and detailed time studies over the same time-frame. Using these data, an analysis of average check per person, RevPASH, seat occupancy, meal duration (from both the POS data and the time studies), and the party-size mix by day of week and hour of day was done.The POS data showed that the average check per person for the 208-seat main dining room was approximately near about INR 840/- (refer Exhibit D). Calculated by day of week and hour of day, average check ranged from INR 505/- at breakfast to INR 1,324/- at brunches on Sundays (Considering only the main meal periods, viz. Breakfast, lunch and dinner). The highest check averages occurred on Friday and Sunday afternoons, while the lowest checks occurred for lunch on Wednesdays. (Since breakfast is a part of the room plan its APC generally remains the lowest) RevPASH provides a good estimate of seat occupancy combined with the average check.This statistic is useful in two ways, the f irst being the important matter of how much revenue the restaurant is realizing in each time period. RevPASH was calculated by first determining the total hourly revenue from the main dining room for each day of the week and then dividing the hourly revenue by the 208 covers, as shown in Exhibit E. RevPASH ranged from INR 207/- on Mondays at Breakfast to INR 3,208/- on Fridays at Lunch. The highest RevPASH of INR 5,959/- was recorded on Sundays between 11:00 to 16:00 hours and on Fridays from noon to 15:00 hours.The lowest RevPASH was experienced mid-week postbreakfast, before noon and late-night. raathi, k. (h – 16045) page 10 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 SEASONAL TASTES? BASELINE The first thing done to determine the baseline at ? Seasonal Tastes‘ was collection of data from the POS system. The resulting data were analyzed to develop hourly arrival rates, meal tim es, and RevPASH. All results presented in this paper are from January 2010 – May 2010.The data was extracted on the date, the check number, the transaction time, the party size, and the transaction amount. Each party at the restaurant usually had multiple transactions for their meal-including when the check was opened, when orders were entered, and when the check was closed. (In a few cases there were just two transactions: when the check was opened with the entire order and when it was closed at the end of the meal. Any voided checks were excluded from the study. ) The usable data was then transferred to Microsoft Excel, where the multiple transactions were condensed into a single record for each party.Each record contained information on the date, the check number, the starting time, the closing time, the party size, and the check amount for each party. Data analysis to find the number of hourly arrivals, the mean and standard deviation of meal duration, and the hourly RevP ASH was performed using Microsoft Excel. SUMMARY OF FINDINGS It was not at all surprising to find that Sunday brunches and Wednesday – Thursday nights were busy and profitable, but the low RevPASH and head counts that we recorded for the other nights and all lunch periods were unexpected.The average meal time of almost an hour and a quarter seemed right, but we were alarmed at the high standard deviation of the meal time. Armed with this knowledge and the results of the time study, the author decided to proceed to the next step and study the possible causes of the aforesaid findings. Step 2: Understand the Causes A variety of tools can be used to help managers understand the underlying causes behind operational problems, including service blueprints, process analysis, and fishbone diagrams. Those techniques are fairly simple to implement and have been widely used in total-qualitymanagement programs.Service blueprints can be used to graphically illustrate a service process. Th e steps in the process are mapped and the connections between steps are identified. One of the key strengths of the service blueprint is the identification of potential delays and failure points. raathi, k. (h – 16045) page 11 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 THE CAUSES AT SEASONAL TASTES A blueprint for Seasonal Tastes was developed so as to identify potential sources of failure.It was noticed that the biggest problem at Seasonal Tastes was the length and variability of dining time. Reducing the mean dining time would be difficult without first reducing the standard deviation of the meal time. The consensus reached upon was that if variation could be reduced, the average meal time could also be reduced. Possible Causes Low seat occupancy Equipment Table mix Methods Personnel Customers Hard to find Reneging Materials Wait list Meal duration and variation Point-of-sale termina ls Credit-card authorization Service stations Restaurant layoutBussing Training Hosting Number Communication Commitment Compensation Management Hosting Training Seating Greeting Food and beverage delivery Cooking Check processing Pre-bussing Check drop Check pick-up Check processing Folder drop Management Pre-bussing Communication Hosting Number Commitment Compensation Management Choose to linger Unsure how to behave Party size Trays Payment and Credit-card folders departure authorization Point of sale terminal Training Number Commitment Compensation Training Number Commitment Compensation ManagementChoose to linger Unsure how to behave Uncomfortable Check folders Bussing Folder pick-up Stacking space Service Stations Bucket, trays Cleaning supplies New place settings The Problem: High standard deviation of meal duration Figure K: Possible Causes of Poor Performance at Seasonal Tastes raathi, k. (h – 16045) page 12 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 Step 3: Developing a Revenue-management Strategy The busy (hot) and slow (cold) periods by day of week and meal-period were first identified.Hot periods were defined as times when guests were waiting to be seated, and the remaining periods were cold. The restaurant had ten hot hours per week, which became the focus of the revenue management program. The two major goals were to reduce dining duration by ten minutes and to increase seat occupancy by 10 percent during the hot periods. An ancillary goal was to reduce the standard deviation of total dining time by 30 percent. It was expected by these changes to increase revenue by at least 5 percent during the ten hot hours, as explained further.The goal of increased seat occupancy could be achieved by attracting more customers, providing a better table mix so more customers could be accommodated, and reducing the dining duration so more customers could be served. The restaurant already had excess demand on Sunday Brunches and Friday Lunches (as indicated by the waiting lines). More worrisome, because the restaurant‘s current table mix and dining duration would not allow the restaurant to serve additional customers, the manager‘s focus was on improving the table mix and reducing dining duration.THE FIVE PERCENT (5 %) SOLUTION To assess the revenue effects of increased occupancy and decreased dining duration, we first calculated the annual revenue for the hot periods. To review, during the ten hot hours each week, the main dining room had an average seat occupancy of 63 percent, an average check of $18 (INR 840/- approx. ), and an average dining time of seventy-five minutes. Annual sales for the restaurant in January – May 2010 totalled (INR 20,699,517/-). The restaurant took in about one-fourth (INR 5,000,000/- approx. ) of its monthly revenue during its ten hot hours.If hot seat occupancy increased from 50 percent to 60 pe rcent, even if dining duration remained the same, monthly revenue would potentially increase by 7. 3 percent (INR 1,511,065/-). Beyond that, if dining duration could be decreased from seventy-five minutes to sixty-five minutes, even if seat occupancy remained the same, the annual revenue potential would increase by 3. 8 percent (INR 786,582/-). If both factors could be changed (i. e. , seat occupancy increased and dining duration decreased at the same time), the annual revenue potential would increase by 11. 9 percent (INR 2,463,243/-).Even if only half of the revenue raathi, k. (h – 16045) page 13 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 potential could be achieved, the restaurant could nevertheless achieve better than a 5 percent increase in annual revenue. Step 4: Possible / Probable Implementation Once the strategy was developed, the hard work of implementation begins. In keeping with the strategy, implementation should focus on training staff, convalescing table mix and on improving the efficiency of service delivery.TABLE MIX An optimal table mix, one that matches party-size mix as closely as possible, would allow this restaurant to serve an increased number of customers with no increase in the number of seats, thereby boosting seat occupancy during busy periods. UNCERTAINTY OF DURATION A restaurant who has dealt with the arrival-time issue must be able to predict meal-length, because this controls the number of tables available. With this information, restaurants can decide which reservation requests to accept, and restaurants with a large walk-in trade will be better able to provide accurate estimates of waiting time for guests in the queue.In addition, a reduction in meal duration during busy periods can increase seat occupancy and table turnover and thus can lead to increased revenue. As stated at the outset, one of the difficulties of implementing re venue management in restaurants is the fact that their explicit unit of sale is a meal (or an event) rather than an amount of time, although one can also argue that the true measure of the restaurant‘s product is time. While the likely length of a meal can be estimated, its actual duration is not firmly set. Reduced dining times can have considerable revenue potential during high-demand periods.Here, Seasonal Tastes, a restaurant with 208 covers, an approx. $20 average check, an average one-hour twenty minutes dining time, and a busy period of three hours per day. During busy periods, defined as those when customers are waiting for a table, a decrease in dining time can increase the number of customers served and the associated revenue. Under the example, the restaurant could theoretically serve approximately 400 covers during its three-hour busy time, assuming all 208 covers were occupied two times for exactly eighty minutes each time.That would result in revenue of $8000. If the average dining time could be raathi, k. (h – 16045) page 14 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 reduced to 50 minutes, the potential number of customers served would increase to 750, and the potential revenue would increase to $15,000, an increase of 18%. The question of how customers would react to such changes, however, causes restaurant operators to approach time decreases with caution. Step 5: Monitor OutcomesAs with much business practice, the success of revenue management cannot be assessed without measuring changes. After establishing the baseline and implementing revenue management, operators must develop a system to measure financial, operational, and customer-satisfaction performance. 5. Summary and Conclusion By implementing revenue management tactics, Seasonal Tastes, would be able to increase revenue by approximately 5 percent. The improved table-mix, the chang es in the service delivery, and the improved training led to the improvement in the restaurant‘s performance.Seat occupancy and RevPASH would increase, at the same time leading to a decrease in dining duration and variability, and thus an increase in revenue. Other restaurant could realize similar results by carefully analyzing their current performance, determining the causes of that performance, and developing appropriate strategies to improve it. Changes in table-mix and problematic service-delivery processes hold particular promise, but only with proper implementation that emphasizes training, employee buy-in, and enhanced management. 6. References o o o Anderson, C. and Xie, X. (2010), ?Improving hospitality industry sales: twenty-five years of revenue management? , Cornell Hospitality Quarterly, Vol. : 51, No. : 1, pg. : 53 – 69 Bertsimas, D. and Shioda, R. (2003), ? Restaurant revenue management? , Operations Research, Vo. : 51, No. : 3, pp. : 472 – 486 Bh ar, S. (2010), ? Creating a culture of wellness? , Express Hospitality, June 15 – 30, 2010 Issue, Section: Spotlight, Management Article, online available at: raathi, k. (h – 16045) page 15 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 etrieved on June 16, 2010 at 11:15 hours o o Cross, R. (1997), ? Revenue Management? , London: Broadway Books HSMAI Online article, Anon. (2010), ? 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Applying capacity-management science: the case of Browns restaurant? , Cornell Hotel and Restaurant Administration Quarterly, Vol. : 40, No. : 3, pg. : 22 – 32 Thompson, G. (2002), ? Optimizing a restaurant‘s seating capacity: use dedicated or combinable tables Cornell Hotel and Restaurant Administration Quarterly, Vol. : 43, pg. 48 – 59 Thompson, G. (2003), ? Optimizing restaurant-table configurations: specifying combinable tables? , Cornell Hotel and Restaurant Administration Quarterly, Vol. : 44, pg. : 53 – 61 Thompson, G. and Kwortnik, R. Jr. (2008), ? Pooling restaurant reservations to increase service efficiency? , Journal of Service Research, Vol. : 10, No. : 04, pg. : 335 – 348 Thompson, G. and Sohn, H. (2009), ? Time-and capacity-based measurement of restaurant revenue? , Cornell Hospitality Quarterly, Vol. : 50, No. : 04, pg. : 520 – 539 raathi, k. (h – 16045) page 16 of 16 understudy project