Franchising Marketing Essay Example | Topics and Well Written Essays - 3000 words

Franchising Marketing - Essay Example Franchising has been recognized as a successful business model leading to accelerated expansion of the new store with local control of the franchise owners assuring lesser financial risks with rewards associated with local ownership which requires lower level of supervision and economies of scale. "The most widely accepted definition of a franchise refers to a contractual relationship between a franchisee (usually taking form of a small business) and a franchisor (usually a larger business) in which the former agrees to produce or market a product or service in accordance with the blueprint devised by the franchisor"(Stanworth et al. 1995) Management Structures: Franchising is primarily defined in terms of the legal business agreement between two partners, the franchisor and the franchisee. The franchisor, who has previously established a market-tested business package of products or services, enters into a continuing contractual relationship with a number of franchisees, typically small business owners, who must operate their businesses according to the franchisor's specified format (Curran and Stanworth, 1983). The franchisor provides a proven method of operation, support, and advice on the setting up of the new franchisees, and also guarantees continuing support to the franchisee. In return, the franchisee pays a lump sum entrant fee and other charges for regular services (that is, royalty on sales, advertising fees, marketing levy) (Fulop and Forward, 1997). Franchising has been adopted a growth strategy for many firms in business with the advent of globalization. It is a different from other form of business. A f ranchise is a hybrid form of business characterized by complex contractual arrangements (Eisenhardt, 1989). Though many franchises operate between hybrid and the hierarchy (centralized or organizational) firm and incorporate both the franchised units as well as the company owned outlets (Brickley and Dark, 1987) In a hybrid operation, the franchisor monitors and controls the franchisee within the limits specified in the franchise agreement. In contrast, the franchisor operates company-owned outlets through his or her authority over a centralized bureaucracy or as a hierarchical organization. The resource scarcity theory and the agency theory explained the theory of franchising around the hybrid and hierarchy forms of franchise organization. Support for the agency theory as a rationale behind franchising was substantial. Research found that the franchisee motivation as an agent was perceived to be the most important strategy of the franchise firms (Oxenfelt and Kelly, 1968-69) while the capital advantage of franchising, which was proposed by the resource scarcity theory, had a low acknowledgement by the franchisors (Lillis, Narayana and Gilman, 1976). The franchisee's high motivation was probably derived from the nature of the franchise relationship. Franchising involves an exchange relationship between franchisor and franchisee which was sometimes described as a partnership or strategic alliance (Stanworth and Kaufmann, 1996). The franchisee is simply managing an outlet featuring the corporate strategy of the franchisor and to a certain extent possesses a degree of autonomy in managing the outlet (Dant and Gundlach, 1998). Unlike the company-owned manager, the franchisee enjoys more dependency in running the day-to-day business Franchisee and Franchisor: The

The study of criminology Essay Example for Free

The study of criminology Essay Criminology is the scientific study of crime, criminals, criminal behavior, and the criminal justice system. In the United States, it is taught chiefly in departments of criminology and criminal justice of colleges and universities. Criminologists study factors related to crime. Research in criminology involves fields such as sociology, psychology, and psychiatry. Law enforcement greatly depends on criminology. Often, the best method of treating offenders and ways to prevent crime are determined by criminologists. There are different things to study in criminology. Most criminological research examines environmental conditions. Others concentrate on the connection between crime and biological factors such as brain structure and chemical imbalances. And others emphasize peoples emotions and motives. Some study the ways which individuals learn criminal behavior through association with people. Criminologists also study penology, which is the science of punishment and treatment of offenders. They try to make punishment more certain than ever, bringing people to trial quickly, imposing fair sentences, and providing adequate prisons. Criminologists use a wide variety of research techniques. Statistics are often used to study the crime rate and the characteristics of criminals. Criminologists find relationships between crime rates and certain physical or social conditions. For example, such studies may show that the crime rate increases when poverty and unemployment rise. Criminologists generally use statistics compiled by government agencies. Criminology is extremely important in determine numerous factors in trials. It played many important roles in the recent OJ Simpson murder trial. Criminologists also use statistics to learn about personality traits or social conditions that are more common among criminals than other people. Researchers usually compare a group of criminals with a group of non-criminals who are similar to the lawbreakers in most ways. Differences  between the two groups can be measured in this manner. Any personality trait or social condition that occurs more frequently among criminals maybe one of many causes of criminal behavior. Case studies is another technique criminologists use. In a case study, a criminologist examines all the personality traits and social conditions that affect one criminal. The researcher studies the persons family history, environment, physical condition, psychological state, and many other characteristics. All these details help determine how certain conditions produce criminal behavior in an individual. Some case studies are conducted on certain groups of criminals, such as rapists or juvenile gangs. A criminologist may use the results of a case history to work out a theory about the development of criminal behavior. Most criminologists have university training in criminal justice, sociology, psychology, psychiatry. or related areas. Requirements vary for a career, but most criminologists have a masters or doctors degree. Many of these experts conduct research and reach criminology at universities and colleges. Many social workers are employed in the general area of criminology. Parole and probation officers must have a knowledge of criminology. Personnel trained in criminology also work in crime prevention programs and in the treatment of offenders. Lawyers, judges, and prison superintendents also should have some knowledge of criminology. In the United States, the major professional organization for criminologists is the American Society of Criminology, which was founded in 1941.

Impact Of The Super Bowl On A City Tourism Essay

Impact Of The Super Bowl On A City Tourism Essay Executive summary Its no doubt that American football and the Super Bowl event for that matter is a multi-million dollar business. Most estimates put its contribution to host cuties economies consistently over $300 million. A good number of Americans follow events that shape the sport and contribute to its well being in one way or the other. Besides the benefits that the players and industry regulators reap there are numerous other ways that ordinary people benefit. Entertainment is one such avenue but the biggest of them all is the economic impact that the event brings to the host city This paper seeks to examine the economic impacts that come along with the hosting of the event. The direct and indirect impacts that are accrued from activities that surround the staging of the championship run into millions of dollars. There is significant investment from the authorities that is required for the success of the championship. The authorities then benefit fro revenue collection and improvement of infrastructure. The event also accords the host city business opportunities that local individuals and companies exploit to boost the local economy. Documented evidence and critical reviews on the economic impact of Super Bowl exist. This provided the basis of this research as the starting point and the fleshing up of the conclusions arrived. The paper dwells mainly on the background, statistical evidence as well as the sectors benefit as direct result of the staging of Super Bowl. The contents of this paper aides the conclusion at the end of it. This is the general idea that can be deduced from the whole findings that are contained in the paper. Introduction Sports are today an integral part in the development of nations. Its an income earner for many people both directly and indirectly. In Europe soccer is the major sport developed through the various soccer leagues in Europe. Rugby is common too in Europe as is cricket in Asia (Layden, 2005). In the United States basket ball, base ball and American football form the top cream of sports business entertainment and business. They are huge money minting machines that responsible for the generation of millions in taxes to the authorities hence playing a big part in economic development. The Super Bowl is perhaps the biggest and most unique annual sporting events that take place in the United States. This is the final game of the national football league championship which can comfortably claim to be the most watched television broadcast in the US. It holds such significance in the American culture that some consider it an unofficial holiday. The Super Bowl Sunday, the day that the game is staged is the second biggest food consumption day in the United States only next to thanks giving day. That translates to a big boost in food businesses and others as well. Besides the game which is the star attraction of the event, there has been the cooption of various performances from artists. The artists perform during the pre-game and half times. Its importance is well demonstrated when the campaign of the then senator Barrack Obama bought airtime in various networks 30 minutes before the Super Bowl to advertise his policies. Television channels have used the Super Bowl time to introduce series of the programs that the want to attract huge followings Its not lost to any casual observer that the Super Bowl has importance that stretches beyond the field and beyond the mare fact that its a popular game. To many the hosting presents a windfall of opportunities. The impacts of the game span past sports to culture and the economy. That has always been the subject of debate from the games administrators to commentators and independent observers. According to Depken and Wilson (2003), the viewership of the Super Bowl is estimated to be close to 100 million people worldwide and a potential of one billion. That can easily rival the FIFA soccer World Cup and the Olympic. While it has not acquired the status of the above two, the economic impact that the event is likely to bless a host city with is unprecedented. That is besides other advantages like the chance to revamp its infrastructure and improve its security. Economists have always dismissed that the economic impact that the Super Bowl brings to the host city may a fraction of what its normally touted to be. But that is subject to debate (Feinstein, 2007). Extensive studies are carried out every year to determine the economic impacts that championship game brings to the host city. However there appears to be consensus among attendees, local business leaders, and corporate planners that its beneficial to host the event, whichever way one looks at it. Purpose With super bowl comes a host of opportunities for the companies that win time to advertise and those that manufacture anything associated with the staging of the event. Of particular importance however is the benefit that the host city reaps from the staging of the event. The economic impact on the city can be enormous and careful planning may ensure the netting of a good amount of revenue besides the publicity that the city gets. The current NFL policy is to stage the Super Bowl in a city that has an NFL franchise. Cities normally bid fro the hosting and they are determined five years before the game is played. Currently the cities have been determined up to the year 2013. There has been a string of criticism that the figures and projections that are presented by NFL to the host cites are not based on reality. The purpose of this paper therefore is to shed some light into the whole issue of the economic impact of the host city of Super Bowl. This research will seek to determine the economic impact that the Host city receives. All dimensions are examined, the merits and demerits as far as its economy is concerned. Background Football has been played in the US for a long time just like other sports like baseball. Professional football in the United States began in the year 1920. Super Bowl the premier event of the game-Super Bowl championship however is relatively young having been played for the first time in 1967 (Schwartz, 1998). Since then the event has acquired elevation to one of the most valued sports traditions in the history of sports. Super Bowl is the football game that is played annually to determine the champion of the National Football League. Winners from the American Football Conference championship game and the National Football Conference face each other in the run up to the National Football League playoffs. The merger agreement between the American football league and the national football league saw the creation of the Super Bowl. The NFL has a long history dating back to the 1920s while the AFL started gaining dominance in the 1960s. There was as a result intense rivalry between the two leagues in regards to fans, players and control of the game. To avoid financial ruin, the two rivals decided to engage in talks in 1966 which resulted in the subsequent merger. Since then it has become a national pastime activity whose popularity is rivaled by few events in America. The Pittsburgh Steelers is the team that has won the most Super Bowls- six while the Dallas cowboys and the San Francisco have both won five each Data collection The findings and conclusions that were made in this research paper were very dependent on data. There was no field research conducted, however secondary data form books, scholarly research articles and the internet was used in this research. All sources were included in the in text citation and the bibliography at the end of the paper. General figures The figures associated with Super Bowl indicate clearly why the event is an important one in American culture and business, most importantly the host city. Its the most watched television program every year in the country. 40% of all households in the US tune to television during the game as are 60% of all homes (St. John, 2009). Close to 90 million Americans tune into the Super Bowl game while another close to 120 million partially doing so. Hallmark Cards Inc rates Super Bowl as the number one home party event every year, perhaps bigger than New Years Eve. Wenner (2005) reveals that its the biggest eating day in the U.S apart from thanks giving day. 15,000 tonnes of chips and four thousand tones of popcorn are consumed in homes during the Super Bowl. Avocado which is essential for the preparation of guacamole is another type of food that is widely consumed on super Sunday. According to the California avocado commission, twelve million avocados are sold in preparation for the game. Figures available on the impact of the Super Bowl indicate that cities experience economic impacts amounting to millions of dollars. In 1994 Atlanta Georgia made 166 million dollars from the Super Bowl, Miami made 365 million in1995; phoenix reaped 306 million in 1996 while New Orleans raked in 200 million in 1997. Others include 295 million for San Diego in 1998,336 million for Huston Texas in 204 and 372 million for Detroit Michigan in 2006. Economic impact For the host city to be determined it has to be appealing to tourist, sponsors and spectators. That is besides being a franchise city of the NFL (Depken Wilson, 2003). The NFL, local governments and various associations of hotels and restaurants normally predict the economic impact that the hosting will have on the city (Depken Wilson, 2003). This mainly takes into account the expenditure that the city is likely to incur while determining the real benefits that it will get. For instance the police and fire departments are paid for the overtime hours that they work to ensure safety and security is maintained. The spending is done according to the projected impact and the extent to which the prevailing economy can allow. Tampa Bay had to scale back spending on the Super Bowl due to the state of the current state of the economy. The potential positive impact on the local economy is the major incentive for the city that is hosting the Super Bowl. Economists generally estimate that super bowl always has had an impact of between $300- $400 million on the host citys economy (Coates Humphreys, 2002) There are direct and indirect impacts that come with the event, which can also be long-term and short-term as well (Christopher Peters, 2006). In simple layman terms, the sum total comprise of the economic impact of the Super Bowl on the host city (Polzer, 2003). The direct impacts come form the spending by the various participants while indirect impacts are the multiplier effect the is felt way after the event is done. The money that was spent locally is re-spent again leading to additional rounds of spending (Wenner, 2005). Indirect impacts also include rise in local residents incomes due to the activities associated with the game as well as the dollars that are withdrawn form the local economy. Further the direct impacts comprise of the large scale purchase of goods by companies mainly from local producers and manufacturers (Depken Wilson, 2003) The economic impacts of any sporting event are usually measured in terms of the increase in revenue collection for the authorities and individual business that help sustain it. Direct and indirect expenditure is also factored in. Super Bowl is a unique event that cannot be really compared to any type of sport. However the economic impact that it breeds is comparable to those other world events mentioned earlier. The above statistics paint a rosy picture of the Super Bowl event and day. They are not exaggerated in any way meaning they can translate to real economic benefits on the ground. The host city will have to reevaluate its entire system to be able to deal with the needs of the traveling fans that flock to town for the Super Bowl. The economic impact of the city is more or less positive because of the increased consumption of goods and services that are as a direct result of the temporary population explosion. Overall the change in economic activity associated with the event is the most appropriate indicator of the benefits. Its arrived at by multiplying the direct impacts by the multiplier and adding the result to the direct impacts. To be more precise the economic activities that result into the benefits in the local economies have been highlighted in the following section. Tourism Tourism is one of the major income earners especially for any authorities that enjoy any degree of autonomy. Tourism is boosted by various events that attract record numbers of people. Sports events like Super Bowl are some of them. There is always an influx of visitors mainly traveling fans to the super bowl host city. A joint commissioned study by the NFL and the Sport Management Research Institute in 1999 concluded that the average expenditure of attendees who flocked to the south Florida Super Bowl were double the expenditure of tourists during the peak season of that place (Leiker, 2005).These comprise of the majority of tourists that visit the city during that particular time. The locals who take breaks from their work to watch the event to some extent comprise of the domestic tourists of the city. According to Price Water House Coopers, Indianapolis that is bidding to host the event in 2011 will receive over 98,000 visitors and approximately $131 million in direct spending from the visitors and the locals. An estimated 95600 people visited Atlanta during the Super Bowl period. Huston was estimated to have received close to 90,000 visitors during its Super Bowl (Layden, 2005). The direct impact as a result of the sporting event is widespread spending by the local residents as well as tourist. In Tampa Bay for instance hospitality and tourism industry activities as a result of the Super Bowl XLIII were estimated to generate approximately $150 million in direct spending. In past championships, the same activities generated $195 million in phoenix and Miami. Detroit generated $118 million, $ 124 million for Jacksonville in 2005 and $ 135 million for Huston in 2004 all from direct spending form tourist and hospitality activities as result of the staging of the Super Bowl (Depken Wilson, 2003). They spend on hotels, rental cars, taxis and visits to local attractions. The expenditure that is pumped into the city/s coffers from accommodation, food and other tourist activities is the boon that is capitalized on most. According to Schwartz (1998), most hotels report 100% booking rate in the period on the run up to the games a few days after. Bed occupancy and demand for the provision of other services are critical in the revenue generation of hotels that are involved during the Super Bowl. Shopping Its an unofficial fact among all sports fans, Super Bowl fans are the biggest spendthrifts there are today. Commodity prices rise due to the market forces of demand. Some traders too cash in on the event with modest price increments that translate to the increase in revenue. Many retail chains in the host cities find it economically viable when the Super Bowl is held in their city. They are among the direct beneficiaries of the free spending habits of the traveling fans and tourists. The impact it has on their sales cannot be missed. The week before the Super Bowl always sees a surge in shopping that pumps quite a good amount of money into the economy. Americans spend close to one million man hours doing shopping mainly for food items that are consumed during the game. That has always been the trend and indications show that it getting bigger whether there is a recession or not. The event is big food eating event and shoppers are estimated to spend at least $55 million on food alone. Infrastructure China invested heavily in the build up to the Olympics; South Africa is involved in massive up gradation n of infrastructure ahead of the 2010 FIFA World Cup. The same trend can be seen in Brazil and London who are in line to stage the Olympics as well. The same scenario is common in the build up to NFL games. Its a critical component that is a must for the any successful staging. Huge investments from local authorities, NFL and individuals in preparation to the staging of the Super Bowl provide the stimulus money that is needed to boost the local economies. The successful attraction of the event to the host city calls for the capability for the host city to provide the venue, hotels, and transport and entertainment facilities. Public health and safety facilities re also renovated to meet the demand that comes with the people attending the event (Feinstein, 2007). An increased need to renovate infrastructure fro such an event forces the authorities to repair them this ensure a positive long-term effect for the local economy log after the Super Bowl is gone. Roads, pavements and public utilities like parks are upgraded to be able to accommodate the high numbers of travelers entering the city. The stadium where the event is staged is the single biggest infrastructure activity that the host city carries. It has to meet the minimum requirements that the NFL sets. The authorities inject substantial amounts of money normally in hundreds of millions into the economies in the efforts to renovate the NFL stadiums. Since 1995 through 2003 604 billion dollars has been spent on renovating twenty one NFL stadiums (Leiker, 2005). The renovation is a source of numerous jobs that boost the citys employment rate. Publicity There is always a media blitz that accompanies such a sporting event with a national following. The kind of publicity that the host city gets is enough to boost its image among attendee and non attendees. Prospective investors and tourists get a chance for an in-depth review of the cities potential. The city is therefore saved millions in terms of advertising itself as premier business or tourist destination. Jobs With such an event the demand for labor rises. This leads to the creation of jobs that are needed in the overall preparation pf the event. They range from skilled experts to part-time social workers who tend to visitors new to the city. These experts normally sourced locally comprise of construction workers, planners and organizers. The Super Bowl is thought to create an estimated minimum of 500 jobs any time that its staged. In other cases there have been statistics that suges5t that in fact the event creates far more jobs than its reported. According to Christopher and Peters (2006) the event created over 2700 jobs in Atlanta Georgia besides the $166 million that it pumped into the economy. That is quite the most direct impact that the host city feels. Though most of these jobs are short-term and part-time, there is good compensation that comes along with it that makes them economically viable. Local authorities hire residents for the jobs thus helping in the retention and circulation of the money in the local economy. Confidence building The successful staging of such a sports event like Super Bowl build confidence in the management of the city. Together with the publicity that the city gets pairs up to ensure long-term success of the economic ventures of the city. Criticism However no everyone agrees with the notion that Super Bowl is an economic resuscitating machine in the host city. There is some positives but not as they are put forward by industry players. They have presented their case with researches that advance reasons why they think that is the case. Some scholars have accused the NFL of inflating the figures that are presented to cities that are bidding to host the event. They assert that the economic impact is not as big as its meant to look on paper. The figures according to them are presented to be ale to convince reluctant cities into accepting the NFL proposals. There is a general agreement among the critical scholars that the estimates normally never go beyond gross measures. There is also a feeling among these scholars that the multiplier effect they economists use to estimate the economic impact of sports events may not be accurate after all and it pants the incorrect picture as far as the benefits are concerned. Further more the use of expenditure multipliers is not clear in cases like where for instance hotels are owned by a nationwide chain. It does not clearly articulate the fraction of the revenue that remains and circulates in the particular locality where expenditure occurs. The average impact is likely to be a quarter of or less the estimates that are presented by the NFL. According to Leiker (2005), several factors lead to the wrongful estimation of the economic impact of the Super Bowl. Investigator bias and data measurement error rank high as some of the leading factors that are used influence the inaccurate presentation of economic impact figures. Capacity constraint and changing product relationships are the other factors that Porter came up with. He arrived at the conclusion after reviewing the available short-term data on sales receipts for a number of Super Bowls. Polzer (2003) postulates that, after examining twenty five Super Bowls from 1973-1977 concluded that Super Bowl was only responsible for the creation of 535 jobs. The economic impact of the game according to them was not in the hundreds of millions but roughly 30 million dollars. That represented roughly a tenth of the figure that NFL touted. On the same note, Coates and Humphrey (2002) examined the post season play in all American sports. They concluded that hosting the Super Bowl had little or no statistical impact on the per capita income of the city residents where the championship was staged. Conclusion The following facts are clear from the findings above. That millions of dollars are received as revenue by authorities and individuals of the host city of the Super Bowl event That, there are jobs created due to the staging of the event in the city that that is the host. These clearly are indicators of positive outcomes of the event on the economy of the city. There is a long-term positive economic effect that the host city enjoys after the event is over. This is from the publicity that comes along with the staging of the championship game. The improvement of infrastructure certainly bodes well for the host city since it will not need to undergo major renovations should the event or an equivalent come up again. Whether or not the figures that are presented in the by civilian and sports authorities are real, remains to the subject of discussion. Even if they do not amount into the proportions that are presented there must be some net benefit that is realized from the successful staging of a Super Bowl championship game. The event still has a lot of potential that has yet to be tapped. The numerous studies that have been conducted provide the pointers as to where the weaknesses are and what needs to be done. Though its not guaranteed that the event can be staged in any particular city, the earnings from the sport can be improved. That is what the future host cities need to focus on.

Miguel De Cervantes :: essays research papers

Miguel de Cervantes Miguel de Cervantes Saavedra, born September 29, 1547, was a Spanish novelist, dramatist, and poet. Cervantes was the author of the novel Don Quixote, a masterpiece of world literature that was a great influence to other renaissance writers. Cervantes was born to a poor family in a town called Alcala de Henares. His father was a surgeon who made little money to support the family . Without the means for much formal education, Cervantes became a soldier. On his return to Spain he worked at a series of government jobs that involved extensive travel in Andalucia. (Funk & Wagnalls Encyclopedia) . His career as a public servant was marked by as much misfortune as was his military career. Not till his later years did Cervantes find a patron. It was then that he had the time to devote to his writing.   Ã‚  Ã‚  Ã‚  Ã‚  Cervantes was a literary experimenter. In 1568, when Cervantes was a student, a number of his poems appeared in a volume published in Madrid to commemorate the death of the Spanish queen Elizabeth of Valois. In 1569 he went to Rome, where in the following year he entered the service of Cardinal Giulio Acquaviva. Soon afterward Cervantes joined a Spanish regiment in Naples. He fought in 1571 against the Turks in the naval battle in Lepanto, in which he lost the use of his left hand. While returning to Spain in 1575, Cervantes was captured by Barbary pirates. He was taken to Algeria as a slave and held there for ransom. (Funk & Wagnalls Encyclopedia). He did however make several unsuccessful escape attempts, but he was finally ransomed in 1580 by his family and friends. Returning to Spain at the age of 33, Cervantes, despite his wartime service and Algerian adventure, was unable to obtain employment with a noble family. This was usually the gift presented to military veterans for their distinguished courage. Deciding to become a writer, he turned out poems and plays at a prodigious rate between 1582 and 1585 (Funk & Wagnalls Encyclopedia). Few of these are still existent. His pastoral novel La Galatea (1585) gained him a reputation, but the proceeds from its sale were insufficient to support him. Cervantes then took government jobs, first furnishing goods to the fleet of the Armada and later collecting taxes. The government imprisoned him several times because he failed to give a satisfactory explanation of his tax-collecting activities. While in prison Cervantes conceived the idea for a story about a madman who imagines himself a knight-errant performing the splendid feats described in medieval tales of chivalry.

The Un Amor Decision

I have considered the whole situation your company are in and have prepared a recommendation for you based on the information of the market. There are three options in this situation. First of all, you keep distributing only beers brewed by Enhances-Busch Inbox. Second, you transfer your core item from the A-B Ellen beers to Un Amour tequila. Lastly, you distribute beers and tequila simultaneously. The first option is rather risky. As you see, the declining of the beer market is not only by the economic downturn, but also by change of consumer tastes.So, whatever meaner you introduce to your company, it might be hard to rebound this trend. The second option may sound good because the relationship between you and A-B Company is changing gradually. Also, Missouri and some of Missouri companies are becoming hostile to A-B Ellen. However, it cannot be a good solution. That's because you can lose a stable background for your company. The competition in the tequila market has not finished yet. If you change your main item from beer to tequila or other liquor, it is possible for your company to face difficulties in the near future.So, y recommendation is to deal with both items-beer and tequila. By this method, you can expand your item portfolio and target markets. You can distribute beers to the low-price market and tequila to the middle or high price market. You can promote each market with the other item. For example, if the customers buy expensive tequila, you can give some beers to the customers as a promotion. Also, you can advertise that your company can handle diverse items in various markets. You will have a chance to expand your customer range. By this way, you can hedge risk and boost the profit.

Grapvine Communication

INTRODUCTION Grapevine communication is the informal communication network within an organization. Grapevine is used to spread information bypassing the formal communication structure. Just like the grapevine plant: it spreads in random ways and it goes where it can. It is formed by individuals and groups in an organization. The people in the groups have something in common that links them together. A person can belong to one or more groups. A grapevine communication is a form of informal communication by which people communicates each other without any formal line of communication.It’s called Grapevine because like that of a grape vine it’s impossible to find the origin of information which results in spread of rumours. Grapevine communication is a form of informal business communication, which develops within an organization. It means gossip, usually gossip that spreads and covers a lot of ground (a lot of people), much like vines do. ACKNOWLEDGEMENT At first we desir e to express our deepest sense of gratitude of almighty Allah. We are thankful to our University (Leading University, Sylhet) and the respective authorities for providing us an opportunity to take our BBA program.With profound regard we gratefully acknowledge our respected course teacher Md. Shamimul Islam for his generous help and day to day suggestion during preparation of the assignment. He is so much an inspiration and guidance to us that we are, short of words in expression our gratitude. We like to give thanks especially to our friends and many individuals, for their enthusiastic encouragements and help during the preparation of this assignment by sharing ideas regarding this subject and for their assistance in typing and proof reading this manuscript.And finally, we thank to all of our group members as they all were serious and prolific towards making this assignment. Once more time to Sir, we owe more than we can mention†¦Ã¢â‚¬ ¦mostly for teaching us to see the silver lining in every hard work. OBJECTIVE OF THE STUDY We have prepared this assignment to know about the grapevine, it’s positive and negative impact. Actually what the grapevine is and what are the impact of grapevine in any organization. We mainly tried to find out whether grapevine is helpful or it is harmful for the organization’s progress. METHODOLOGY OF THE STUDYIn this assignment we have collected different information from both primary and secondary sources of information. We collected different data from different books but mainly by browsing internet (secondary source). We paid more attention to secondary source to collect updated information. LIMITATIONS OF THE STUDY In this assignment we tried to find the effect of grapevine in the organization but didn’t get enough information on this topic. Because of the scarcity of information from primary sources we have to depend on secondary sources. DESCRIPTION OF THE TOPIC DefinitionIn the word of Keith Davis, à ¢â‚¬Å"Grapevine is basically a channel of horizontal communication, for its only people working at the same level of hierarchy who can informally communicate with one another with perfect ease. † Formal vs. Informal Channels of Communication Every organization has a formal communication system. This formal system provides information regarding the organization to the employees through different media. The formal network, made up of memos, reports, staff-meetings, department meetings, conferences, company newsletters, official notices, is highly documented and as such has very little chance for change.However, nearly all of the information within the grapevine is undocumented and is thereby open to change and interpretation as it moves through the network. â€Å"The informal organization is less permanent and less stable because its leaders and patterns of action change readily. † This occurs because of the dependency of the network on personalities, whereas the formal n etwork is set up through structured policies nondependent on individuals. The grapevine is flexible and personal and can spread information faster than the formal communication channels.The grapevine is also capable of penetrating even the tightest security because it cuts across organizational lines and deals directly with people in the know. Bosses who chose not to pay attention to the grapevine have 50% less credible information than those who do. It exists because of excessive structuring of formal work flows and the excessive channeling of information flows. It is fed by personal apprehension, wish fulfillment, retaliation, and gossip. Surprisingly, most researchers have found that most grapevine information is either true or has within it a kernel of truth.How Accurate is the Grapevine Allport and Postman's research indicated that â€Å"most rumors start as a report of an actual episode – that is to say, with someone's perceptual experience of an event which he deems o f sufficient interest and importance to communicate to others. Once this central theme, the actual episode, has been accepted there is a tendency to distort subsequent news or events in order to make them consistent with the central theme. However, Keith Davis reports from his research â€Å"that in normal business situations between 75 percent and 95 percent of grapevine information is correct. In general people tend to think the grapevine is less accurate than it is because its errors tend to be more dramatic and consequently are more impressed on one's memory than its day-to-day routine accuracy. In a normal work situation, upwards of 80% of the information that comes over the grapevine is accurate. While the day-to-day accuracy may be good, people believe the grapevine is less accurate because the times it is wrong are more dramatic. A communication may be 90% correct in details but that last 10% is often the most important part of the message.Messages from the grapevine are of ten lacking in all the details so that the message is subject to misinterpretation; while the grapevine generally carries the truth it seldom carries the whole truth. An interesting note about the informal communications network is that an estimated 80% of grapevine information is oriented toward the individual while 20% concerns the company. Allport and Postman discuss, in their book, the changes that occur as a rumor passes along the grapevine. The central theme may be resistant to change, however crucial details necessary for understanding the true situation keep being deleted.At the same time the most dramatic details keep being exaggerated each time the rumor is repeated. So as the rumor moves along it begins to appear as some sort of shrinking missile as it keeps getting shorter and more pointed in flight. This may sound very simple, however we should remember that â€Å"the grapevine is fast-paced and generally moves, free of organizational restraints, by word of mouth. â₠¬  Factors Affecting Grapevine's Operation Several additional factors affect the operation of the grapevine. (1) In wartime, the conditions for rumor are optimal.Military events are of the greatest importance. (2) The greater the homogeneity of the organization, the better the grapevine will operate. (3) Rumors prosper best where formal communication is poor. They thrive in an environment where employees are not kept informed about anything that may be important to them. (4) They perform best in informal social contacts but can operate as effectively as a sideline to official meetings. In a poorly managed organization they can chip away at morale and fuel anxiety, conflict, and misunderstanding. 5) People start and spread rumors to enhance their status, fill gaps in social conversations, and avoid suspense over suspected events. This activity increases during times of stress, uncertainty, and in the absence of news. Frederick Koenig, a sociologist who studies rumors, believes that people listen to and pass a rumor because it satisfies some need. This is why the nature of people involved is important. Different people have different needs and rumors†¦ a) may circulate because they are interesting or a source of diversion.The valve can be the content of the message or the state of the group. b) can pull together events and fill in the gaps to make sense and provide explanations for what is going on. c) can validate and support a point of view d) reconcile one's psychological state with what one sees as actually going on. e) are a means of getting attention. f) are a way of manipulating situations. The idea of some person or group deliberately starting a rumor to serve selfish ends is frequently suggested. Types of Grapevine Rumors can be divided into four categories.The categories are- 1. Wish fulfillment rumors 2. Bogey rumor 3. Wedge drivers rumors 4. Home stretchers rumors Wish fulfillment rumor These express the wishes and hopes of those who circulate rumors and these are the most positive and they help to stimulate the creativity of others. often solutions to work problems are a result of employees verbally expressing desire for changes. These improvements sometimes result in increased efficiency for certain departments within the organization. Even though the tone is positive they still represent employee concerns. Bogey rumorBogey rumor comes from employees' fears and anxieties causing general uneasiness among employees such as during budget crunch. In this case, employees will verbally express their fears to others. These rumors are sometimes damaging, such as a rumor about possible lay-offs, and need a formal rebuttal from management. Wedge Drivers rumor Wedge Drivers divide groups and destroy loyalties. They are motivated by aggression or even hatred. They are divisive and very negative rumors. They tend to be demeaning to a company or individual and can cause damage to the reputation of others.A wedge driver rumor may be s omeone at x Company saying that v Company serves worms in their hamburgers; or in another context, a school-age child telling friends that another child has AIDS, or some other tale, like â€Å"Louise, the office manager, was seen the other day alone with that young new accountant. They were in a car together leaving Motel Six. † or one may spread the word that â€Å"Mary got the promotion because she is sleeping with the boss. † Women are more likely to be attacked with the sexual gossip. Home stretchers rumorThese are anticipatory rumors. These rumors occur after employees have been waiting a long time for an announcement. There may be just one final thing necessary to complete the puzzle and this in effect enhances the ambiguity of the situation. Now we will look at how the message is spread and those who participate. How is the message spread Within the organization communication chains exist. The chain used by formal communication may be very rigid, following the chain of command or authority. However, the chain used by the grapevine tends to be very flexible.Four different chains/structures appear to dominate the grapevine network according to Keith Davis are: 1. Single Strand Chain 2. Gossip Chain 3. Probability Chain 4. Cluster Chain Single Strand Chain This is a simple concept to follow, A tells B, who tells C, who tells D and so on. Each person passes the information on to the next person. The longer the strand the more distortion and filtering affects the information being passed until the last person in the chain may find the information unrecognizable from the original message. Most inaccuracies occur in this chain. Gossip ChainIn this illustration A simply tells everyone with whom they come in contact. This pattern is considered to be somewhat slow in moving the information. Probability Chain In this case A makes random contact with say F and C and passes on the information. They in turn randomly contact others in accordance with la ws of probability. Some hear the information and some don't. In this structure, there is no definite pattern of communication. Information is randomly passed along to anyone willing to listen. They type of person who communicates in this manner might be a very outgoing and talkative type of individual.Cluster Chain Here A tells contacts, B and F, who may work with A. They may tell two or three other persons with whom they usually have close contact. Most predominant pattern is the cluster pattern. Selectivity is the basis for this pattern. In any organization, individuals will generally feel more comfortable with some fellow employees than with others and therefore only relay information to those in their informal social groups. This flow pattern results in information missing some individuals completely. Roles of the ParticipantsIn addition to identifying certain structured patterns, research has also given us some other facts and descriptions, It has been discovered that only 10% of all the individuals in an organization are highly active participants in the grapevine. The types of individuals relative to rumors, have been identified. The three are- 1. Bridger 2. Bagger 3. Bearer Most employees fall into one of the three basic categories as they relate to the grapevine. Bridger Bridger’s receive and pass information to others. These people are the ones primarily responsible for the success of the grapevine.Bridger’s are the passers-along; the liaisons of rumors, also called KC's, as explained by Sutton. â€Å"Key Communicator† is the term that is given to this type of individual who is responsible for initially sending information into various networks. Baggers Baggers hear rumors but do not pass them along or fail to tell others. They are called â€Å"dead-enders. † They receive information but do not pass it on or only pass it on to one or maybe two other dead-enders. Bearer Bearers are not privy to any information, do not hear the information and thus cannot pass along, a rumor.They tend to be outside the grapevine. They neither hear nor pass along the information. Each type of individual can easily be identified in the communication mains previously illustrated. It should also be noted that people are more active on the grapevine when their friends and colleagues are actively involved. After all that has been said about the grapevine the next questions that arise are: What should the company managers do about the grapevine? Is it good or bad? Should the managers participate? How do we manage the grapevine? Management's Response to the GrapevineThe key thing to remember is that the grapevine exists, William A. Delaney reminds us of this when he says the â€Å"grapevine exists, always has and always will, and you can't stop it. † So managers should accept the fact and decide how they can use it to their own benefit. Vanessa Arnold contends that â€Å"Managers interested in creating effective organi zational communication will use information from the grapevine to improve communication throughout the firm. † The real value of the grapevine should be in revealing to management those issues that generate from the grass roots.As Donald Thompson said â€Å"its usefulness is seldom acknowledged, its voice often muffled, its insights ignored. † Should Managers Participate In many cases lower and middle managers are already active participants. They hold strategic positions in the communication channel because they filter and block two-way communication between higher management and operating employees. Managers basically have three options when it comes to their participation in the grapevine: 1. Ignore the grapevine, be no part of it. This is difficult in most organizations, but can be accomplished.They do their job and let it operate unnoticed around them. In effect they become an â€Å"isolate. † 2. Participate only when it serves their purpose. In this case th ey may seek out the grapevine and tap it to learn what is being said concerning a specific situation or issue. 3. Become an active and full-time participant. Managing the Grapevine Since the grapevine cannot be held responsible for errors and is somewhat of an unknown, managers sometimes succumb to the wish that it will go away; but we have learned from experience and research that â€Å"homicide† will not work with the grapevine.It cannot be abolished, rubbed out, hidden under a basket, chopped down, tied up, or stopped. If we suppress it in one place it will pop up in another. If we cut off one of its sources, it merely moves to another one†¦ It is as hard to kill as the mythical glass snake, that, when struck, broke itself into fragments and grew a new snake out of each piece. In a sense, the grapevine is a human birthright, because whenever people congregate into groups, the grapevine is sure to develop. It may use smoke signals, jungle tom-tome, taps on a prison wal l, ordinary conversation, or some other method, but it will always be there.Organizations cannot â€Å"fire† the grapevine because they did not hire it. It is simply there. Management Options Internal rumors are generally managed differently than external rumors if for no other reason than management of a company has more control over internal formal communication than over information sent out to the external environment. Since grapevine activity increases during times of uncertainty, management must provide information through the formal system of communication about key issues and events that affect employees.Management should supply employees with a steady flow of accurate, timely information; in this way, the potential damage caused by the grapevine can be minimized. Any attempt to soften or distort a rumor to make things look good is not a good way to deal with the rumor. The longer a rumor circulates the more difficult it is to control. Facts should be released quickly . The grapevine can be controlled with prompt, clear, and accurate information on the issues important to the employees. Full facts must be presented. Formal communication lines must be kept open and the process as short as possible.Direct memos, large group announcements, and intercom systems should be used. If employees perceive management is giving them the facts, they will be less anxious and less emotional when rumors are heard. Although the preferred management option is prevention, this never works 100% of the time. In other words, there will be negative rumors and if one wants to manage them, one ought to be prepared. So when prevention doesn't work, and it won't, what can one do? Two methods are suggested. First, a four-step method, and second, a disciplined three-phase management program, Generally, in the four-step method, four steps are suggested: 1.Seek to keep employees informed about what is going on. A formal company newsletter always seems to help. 2. Heed rumors. L isten to what is being said that is 80% true. What other information source is so highly credible? 3. Act promptly. Rumors are more difficult to correct over time because they â€Å"harden†Ã¢â‚¬â€œthe details become consistent and the information becomes publicly accepted, 4. Conduct a training program for employees on the nature of rumors. Advantages of Grapevine Communication Grapevine communication creates a social bond where none existed.People like to talk to one another; whether they talk about work or family, or anything. Teams become more cohesive when members talk to one another outside of the project or assignment they may be working on. Informal communication lends itself to bonding. The grapevine fills in a gap that is left when official information is missing, especially in chaotic or changing times. Even in organizations where management is very proactive about communicating change and keeping employees informed, the grapevine helps to fill in the blanks.The gra pevine in many ways helps keep people honest; it can dissuade people from engaging on behavior that they don’t want others to know about. This is a two edge sword. On one hand, people will think twice about taking what they know is a wrong course of action. On the other hand, they may also think twice about taking a necessary risk and doing the right thing, fearful those appearances that may give rise to rumors. Disadvantages of Grapevine Communication There are some intrinsic dangers in bypassing the organizational channels to get to the facts of the matter.The main danger is that much of the information that gets spread through the grapevine is not verified. Some of the information is likely false and difficult, if not impossible, to verify. We discount information when the source is a known gossiper. But not completely†¦ Even when the source is someone known to spread rumors, we believe that where there's smoke†¦ Since we don’t know what part is fire and w hat smoke is, we accept the whole rumor. To justify our participation in spreading the rumor, we tell ourselves that part of it must be true.The main reason why we give credence to a rumor is that it seems to match what we think about the situation or person that the rumor is about. We also tend to believe the person sharing the rumor with us. Another main disadvantage of grapevine communication is that it's often used to spread more than rumors; it's used to spread gossip. The terms rumors and gossip are used sometimes interchangeably, but rumors are not quite the same as gossip. Both are pieces of information that can't be verified, but rumors tend to affect organizations or groups of people, while gossip refers to more personal matters.When gossip is being spread through the grapevine, people's reputations, careers, and lives can get destroyed very rapidly. FINDINGS While preparing our assignment we have to study a lot on this topic. From all our experience we gathered, we can co me to an end that, certain situations like insecurity of service, uncertainty over promotions, special increments to a particular employee, certain innovations in the organization likely to affect the job prospects of the employees are sure to activate the leaders of the grapevine so that very soon all kinds of rumors have spread in the organization.Whether grapevine is sour or sweet is depends on its impact on the organization. If it works for the organization to increase its quality it will be sweet. For this we will have to use grapevine efficiently. On the other hand, if it works against the organizations purpose it will be considered as sour. SUGGESTION From our study we can suggest that, to use grapevine efficiently we should follow the following ways: 1. The managers should try to spot the leaders. They should try to find out the people who are more active on the grapevine and keep them well informed so that harmful rumors do not reach the employees. . The grapevine should be used to feel the pulse of the employees. 3. If there is any false rumor, the management should immediately use the official channels to contradict and to dispel the fears of the employees. 4. Involve the workers in the decision-making process. CONCLUSION The grapevine is basically a channel of horizontal communication, for it is only people working at the same level of hierarchy who can informally communicate with one another with perfect ease.Thus the workers may have one grapevine and the first line supervisors another. But the fact is that the grapevine does not follow any set pattern and it can be effective horizontally, vertically and even diagonally. REFERENCE Secondary Source 1. Essentials of Business Communication, by: Rajendra Pal & J. S. Korlahalli 2. Business communication (Theory and Application), by: M. Omar Ali 3. www. definitions. net/definition/grapevine. 4. http://dictionary. reference. com/browse/grapevine.