Analysis of Unilever’s Risks and Risk Management Strategies Essay

With the rapid development of modern economy, companies are always exposed to risks which are penetrating to all walks of life and not only exist in the products market, but also exist in financial market (Ballou, 2005). It is undoubtedly that risks jeopardize the company’s development in that they may increase the cost of a company’s operation and make it harder for a company to make a crucial decision. Accordingly, it is essential to know risks and find out risk management strategies. This essay will firstly map out Unilever’s business model and have a brief analysis on it. Following this, it will illustrate specifically risks Unilever is exposed to in light of the business model. Meanwhile, it will point out some risks Unilever has not managing enough. Next, the essay will assess some risk management strategies Unilever has taken to mitigate or avoid the risks. Finally, it will recommend the company some more risk management strategies in order to help it mitigate or prevent risks. Analysis of Unilever’s Business Model Business Model A business model, strictly speaking, is the organization’s core logic for creating value (Jane & Susan, 2000). After over 80 years’ development, Unilever has become one of the largest suppliers of consumer products in the world. Its strong portfolio of foods, home and personal care brands is trusted by consumers the world over. Unilever’s top 13 brands account for total sales of over EUR23 billion and top 25 brands represent nearly 75% of the sales (Unilever Annual Report, 2009). Unilever is a well-operated company, and its business model is mapped out as follows: Key Partners Suppliers Contractors Distributors Key Activities Research Design Production Sale Value Proposition Produce innovative and good-quality personal and household care goods for consumers and try to make people feel good and comfortable every day; Produce and sell nutritious foods, such as tea, ice cream, dressing to people and to make them enjoy a better life. Customer Relationships Deliver goods to customers via various channels Customer Segments Huge segment of customers Customers all over the world Key Resources Brands /Labels Employees Production Sites & Lines Technology Information, Intellectual Property, Embracing Diversity Channels Malls Supermarkets Stores Groceries Pharmacies Terminal Markets Cost Structure Research cost, design cost, production cost, supply and sale cost, marketing and promotional spend, management cost Revenue Structure Sales of the consumer goods the company researches, designs and produces. Analysis of the Business Model The business model mapped out above indicates that a multi-national enterprise like Unilever has an integrated and inseparable business chain which is global on the one hand, and multi-level on the other hand, that is, its economic activities involve employees, suppliers, producers, storage, terminal markets, retailers, customers and other beneficiaries (Ian, 2009). Such business model enables Unilever to become a world top supplier of consumer products. However, each coin has two sides. Since the Unilever’s business chain connects each other so closely and relates to numerous parties and factors, thus the company’s whole operation is rather vulnerable and is easily subject to various risks. Risks Exposed to Unilever in light of the Business Model Market Uncertainties As a top supplier of consumer products, Unilever’s business activities are operated within a global, vigorous and competitive market. Its business development is subject to the condition and change of the whole market. Firstly, economic condition plays a crucial role on the development of Unilever’s business as consumption demand and purchase ability of consumers directly influence the sale of the products. 2008 and 2009 were relatively tough years for Unilever due to the global economic crisis (Unilever Annual Report, 2009). The economic downturn reduces consumers’ wealth and makes them unable to buy as many products as before. Meanwhile, customers purchasing ability was greatly undermined and turned to buy those inexpensive but substantial products rather than those top-grade products. Customers’ reactions affect Unilever’s turnover, profit and cash flow. Next, more and more companies are targeting the market of consumer goods due to the attraction of billions of consumers. Thus, the market of consumer goods is just like a piece of pie and is shared by more and more competitors. Therefore, the whole market is uncertain and Unilever has to be well prepared for the fight against the economic uncertainties and the industrial fierce competition. Financial Instability The interest rate risk is a risk brought to the value or the cash flow or profitability of a company when the change of the interest rate occurs. To clarify it more specifically, the floating interest rate exposes the company to the risk of the increased interest cost and the increased borrowing afterwards; while the fixed interest rate makes the company subject to the risk of the loss of the fair value. Meanwhile, as a multinational company whose business activities are operated in more than 180 countries, Unilever is exposed to the risk of the fluctuation of the exchange rate during the process of the change of currencies and the actual value of the currency may be decreased due to such fluctuation (Unilever Annual Report, 2009). Provided that Unilever does not handle the issue of interest rate and exchange rate well, the company may be subject to the exposure of the reduction of cash flow, turnover, profits which may subsequently adversely impact the company’s credit rating, ability to raise funds and confidence of investors. Environmental Risk As a top producer of consumer goods, some waste water is generated for disposal and the company also discharges some CO2 from energy that the company uses in the process of the production (Unilever Annual Report, 2009). In case the said issues are not dealt with appropriately, the environment will probably be polluted. One of the Unilever factories in Brazil discharged a great deal of stink smell to the air due to the false operation in 2008 which impacted upon more than 100 thousand people’s normal life and Unilever was imposed a fine of 10 million Brazilian Real by the Brazilian government due to such pollution (Unilever Annual Report, 2009). Similar accidents will greatly damage the reputation of the company as not only the government but also common people’s awareness of environmental protection has been greatly improved nowadays. Accordingly, Unilever is exposed to the environmental risk which may result in the heavy fine and adverse reputation. Loss of Customers Unilever’s extraordinary achievement obtained nowadays is on the one hand because of the superior products it supplies and on the other hand is inseparable to the customers’ sufficient trust of the company and its brands. However, the following three factors may undermine customers’ trust to the company and its brandsï ¼Å¡ a. Products fail to meet high product safety standards. Quality inspectors in each state have set many standards and are doing lots of inspection work to ensure the safety of products sold in the market. In case the product is found insecure or with any shortcomings, customers will feel disappointed; b. Lack of new products and technical capability. Customers have quite high requirements on products. Lack of new products and technical capability will push customers to other supplier of similar consumer goods; c. The service and product provided by the competitive company is better than Unilever. Loss of customers’ trust may be caused by several reasons, while the result is simply the loss of the company’s cash flow and the damage of the company’s growth and profitability. Operation Risk Each step of Unilever’s business activity is separable to each other (Unilever Annual Report, 2009). For example, the company’s production of goods is conditioned by the timely and secure supply of the raw-material, while the successful sale of goods needs effective storage and distribution capability. However, the supply of the company’s raw material, mostly agriculture products, is based on the secure and sufficient agricultural production which may be influenced by weather, water scarcity, and farming practices. Similarly, the storage and distribution of products is usually influenced by the storage and distribution capability, the cost of it and the local social stability. Any issue of the foregoing may badly influence Unilever’s normal production and sale and subsequent cash flow, turnover, and profit and other business indexes. Risk of Employees and Talents Unilever is a company with more than 300 operation agencies in 88 countries, more than 1000 well-known brands and sells its products in more than 150 countries. Thus the successful operation of the company not only depends on the superior products, but also needs appropriately qualified employees. In the event that the company suffers high employment turnover rate, it may be exposed to the risk of high cost of training, suspended market share and loss of some investment opportunities which will impact the smooth development of the company and undermine the company’s capability of competitiveness in the market. Legal Risk Unilever is doing business in more than 150 countries. Different country has very different legal system and regulations concerning the employment, the product safety, the pricing, the intellectual property rights, the disclosure, the environment and other factors (Ian, 2009). Legal risk may probably bring a suit to the company and will do harm to the company’s reputation in local market. Other Risks exposed to but not identified or Elaborated by Unilever Unilever has found out and elaborated some risks exposed to the company; however, there are some risks which have not aroused Unilever’s great attention: Risk of New products Exploitation In order to confront the industrial competition, Unilever needs to exploit continually new products to attract customers and consolidate the relationship with customers. The exploitation of a new product basically involves following steps: design, research, selection of the scheme, the involvement and allocation of the resources, the production and promotion of the products. However, there are some uncertain factors existing in the process of new products exploitation, such as technology, market, fund and environment and each uncertain factor may lead to the unsuccessful exploitation, loss of cost or negative reputation to the company (Michel, 2001). Physical Risk A company is unavoidably exposed to some natural disasters or accidents (Jane, 2000), such as fire, windstorm or earthquake which will cause the property damage or employees’ body injury. Such damage or injury will cause the company’s normal operation affected and subsequently, turnover, cash flow and profitability will be impacted. Other risks The company is also exposed to other risks such as fiscal, tax and so on. Interaction of Risk Factors Economic Downturn ↠ → Market Uncertainties ↙â†â€" ↓↑ Risk of New Product Exploitation↠ → Financial Instability ↓↑ â†â€"↘ ↓↑ Legal Risk ↠ → Loss of Customers ↓↑ ↙â†â€" ↓↑ Risk of Employees and Talents ↠ → Operation Risk All risks illustrated above do not exist independently but rather influence interactively (Geert, 2008). The economic downturn will lead to the financial instability which may cause the company to operate adversely and the subsequent poor operation may cause the company to face more fierce industrial competition and environmental risk. The said issues are easy to lead to the loss of employees and talents which may also subsequently lead to poor operation and vice versa. To sum up, the factors function with each other and the company has to take some effective and holistic measures to defend these risks. Assessment of Unilever’s Risk Management Strategies Unilever has recognized that most of the risks exposed to it may become material obstacles to the company’s further development. Accordingly, it has tried to taken some effective and structured measures to identify and then exploit the key risk management strategies for the business (Michael, 2007). The specific risk management strategies it has exploited are as follows: 1. Unilever has been carefully monitoring economic indicators and consumer behavior in different areas through extensive and professional research in order to respond quickly and take new and flexible measures to meet the changing demand of customers. 2. In order to deal with the issue of financial instability, the company has been making efforts to get access to global debt markets through various ways such as short-term or long-term debt programs. Unilever attaches great importance to the fluctuation of interest rate, trying to have different types of financial services and balance the risks between floating and fixed rate interest after a professional prediction and assessment of the interest rate; Regarding to the foreign exchange rate, Unilever sets a policy which limits the operating companies’ financial foreign exchange exposures so as to minimize such risk. 3. Unilever has made a series of standards and policies for the procedure of design, manufacture, and distribution of products to ensure the high standards of products’ quality. Unilever also has a â€Å"Sustainable Development Group† which is comprised of five external specialists, engaging in the company’s development of the strategy. Unilever also has specific policy concerning products recall in case there’s products quality incident. 4.Unilever has set complete and effective contingency measures and system to ensure the material supply or to share the production task between different production sites or to use substitute materials in case of the lack of the material. The company also calculates the cost of transportation and distribution from time to time and to adjust the policy and service promptly to optimize the cost. These measures enable the company to operate well. 5. Unilever needs to find a way to attract, develop, train and retain qualified employees. The company has an admiring human resource system. It has established Resource Committees to identify employees’ skill and capability, define employees’ career paths. It also provides numerous opportunities for employees to improve their skills, leadership abilities through training and coaching. Meanwhile, Unilever shall take measures to enhance employee’s risk management ability. Ballou and Heiger (2005) propose â€Å"shifting the employee’s attitudes about risk management to include monitoring, measuring, and controlling certain risks while sharing, avoiding, and accepting that other risks will not occur effectively in a short period of time†. 6. Unilever has set policies to make sure employees follow policies and abide by local laws and regulations in all relevant aspects concerning its business and activities. Regarding those crucial issues and activities, the prior legal check and consent are needed in the company. In a word, Unilever has been making great efforts to build effective, reasonable and practicable strategies for risk management. The boards have overall responsibility for Unilever’s risk management and the company has a Code of Business Principles which stipulates the standards of business operation and requires employees to abide by the code. The above strategies enable Unilever to operate its business well in the global market. New Risks Exposed to Unilever and Recommended Risk Management Strategies Besides risk management strategies mentioned above, the writer will recommend some more strategies for Unilever and try to give it some ideas on better monitor and manage its risks. Transfer and Divert Risks In order to avoid the damages and losses brought by such risks to the development of the company, Unilever may select to transfer risks by applying for insurance. Modern insurance system is the idealist way to transfer risks (Mike, 2006). For example, Unilever may transfer the risks of property, employers’ liability and business interruption by applying for the insurance of Property All Risks, Employer’s Liability and Business Interruption so as to transfer risks to the insurance company. Establish an Effective Control System Risk management is not only to establish a risk management for business procedure, more importantly, the company shall establish a comprehensive and effective risk management control system to make sure the effective implementation of the risk management strategy. The company can establish a Risk Management Committee in the head office and shall be directly responsible for the board of directors. â€Å"The board needs to be consulted on matters of risk management and it needs to be able to give guidance to the risk management committee in its deliberations. To do this effectively the board needs to ensure the whole company is engaged in managing risk, thereby making it an intrinsic part of the company culture†. (Corporate Governance: An International Review, 2009, 546-558). The function of the Risk Management Committee is to implement the risk management, to be especially responsible for the risk supervision of the whole company and to make unified risk management policy and procedure; each branch of the company shall establish an independent risk supervisor, responsible for the risk management and to report the matter of risk to Risk Management Committee without consent of the local manager. Establish a Database of Risk Accidents Database of risk accidents is a tool to effectively predict and assess the risk. The data in the database shall include both internal and external data concerning risk accidents. â€Å" We can try to estimate how bad this problem is by looking at the historical severity of these events in relation to any risk factors that we define and then examining the prevalence of these risk factors†(Michel, Dan and Robert, 2001). Through correct analysis of such data, the company will learn a lesson and consider its risk management policy and procedure so as to judge whether the company will prevent the occurrence of the risk accident and how to take precautious measures to avoid the occurrence of similar accidents. Conclusion In conclusion, risks exist in the whole process of business operation, any company shall attach great importance to the risk management to effectively predict and avoid the risk. Unilever is a company which has well recognized its major risks and taken effective risk management strategies. Research on risk and risk management strategy is a long journey and need all employees of the company to make effort and abide by the policy and standards to monitor and manage risks proactively. References Ballou, B. & Heitger, D. L.2005. A building-block approach for implementation COSO: Enterprise risk management-integrated framework. Management Accounting Quarterly, 6(2):1-10. Geert Bouckaert and John Halligan, 2008, Managing performance: international comparisons. Routledge, 2008, pp221-225. Ian Brown, Adam Steen, and Julie Foreman. 2009. Risk Management in Corporate Governance. A Review and Proposal Corporate Governance: An International Review, 2009, 17(5):546-558. Jane Linder, Susan Cantrell, 2000, Changing Business Models: Surveying the Landscape, Business Publisher: Accenture, Pages: 1-15 Michel C., Dan G. and Robert M., 2001, Risk Management, McGraw-Hill. Michael R. Czinkota, Ilkka A. Ronkainen, 2007, International marketing, Cengage Learning, 2007, p417-422. Mike Walker. 2006. Managing international risk. International Business Briefings. The Institute of Risk Management. 2006. P 5-6. Unilever Annual Report, 2009, Unilever Annual Report, from: http://annualreport09.unilever.com/downloads/Unilever_AR09.pdf (Accessed on May, 25, 2011)

Night school MBA Essay

For a film-maker, viewer’s perspective is all-important. Towards this end, he uses movements, contrasts, visual patterns, narrative emphasis etc. Mis En Scene refers to arrangement of all the visual elements of a theatrical production, within the fixed area allotted-the stage. It has 4 formal elements: 1. The physical setting and decor, 2. The staging of the action, 3. The manner in which these elements are framed. 4. The manner in which they are photographed Making movies a co-operative effort they represent the triumph not of a single department, but the blending of all. Setting: The story is set in the shark-infested waters of corporate mergers. The physical merger (romance) is the foundation of the story and increases the ‘share value’ of this movie. For Tess it is the far cry from the Staten Island Ferry to Manhattan. She was too brilliant for the low position that she occupied. Her ideas catch the imagination of her boss so much that she is willing to steal it as her own. She does it in a clandestine operation. The opening credits show the camera pans over the skyscrapers of New York City. The rousing tune about the â€Å"new Jerusalem† plays. For the modern materialistic generation like Tess, New York is the holy place. It aspires to reach the secret ambitions and achieve something substantial. But advancement is not all that easy and simple. Many are compelled to perform tasks and pursue careers, where there is no scope of advancement. But ‘fortune favors the brave,’ they say. Tess realizes that she needs to change and her talents will definitely help her at the appropriate stage. Her boss goes on medical leave, and she acts boss, goes beyond the instructions given to her. But her craze for success is so much; she is up to doing anything, including going to bed with her business associate. One of the crucial and interesting scenes in the film, as Tess’s boss forces Trainer to make a critical choice. Katherine recoups her original health, returns, comes to know about the business-adventures of Tess, she has no hesitation to send her to her place on the corporate food chain. The film has 7 important filming locations, viz. World Trade Center, Manhattan, New York City and New York etc. The story is creative and witty. Mike Nichols’ direction is laudable and in the highest form. The fine supporting cast also features Cusack and the always dependable Phillip Bosco. Carly Simon’s wonderful song won an Oscar. The soundtrack, featuring Carly Simon and the St. Thomas boys’ choir, is sublime. When ‘Let the River Run’ hits as the camera pulls away from Melanie within her new office in the World Trade Center you can only realize that how beautiful is life! Sit through and enjoy the magnificent helicopter shot of the New York Skyline and Staten Island Ferry during the opening credits, with Carly Simon’s award-winning theme playing on the soundtrack. You will feel elated and the first impact will be the everlasting impact. It is an unforgettable experience for the lifetime. 2. Lighting The use of mis-en-scene is most objectively utilized in the scenery, costumes and especially the lighting. The narrative compiles a majority of dark scenes with a careful use of low-key illumination and many shadows. These low-light settings make the viewer to express feelings toward the characters and their actions. The close-up camera shots of the character’s faces reveal the emotions they wish to portray whether they are talking or making a statement through silence. The lights whether focused upon a single performer or spread to include the entire scene, have been consistently good. The dancing scene has been done to perfection. Tess dances with happiness and uneasiness, and the light effect makes the audience concentrate its attention on this particular pair, and catch their expression beautifully right through the scene in the bedroom. The results of the light from source to object have been perfectly executed. There is no offensive and unreal glare. The loveliest light, the modern artist will say, and say truly, is reflected light. 3. Costumes and Make-up. Tess is a sex-pot with a night school MBA. From her baby hair, the transformation to new serious hair make-up, (to imitate her boss on sick-leave) and her access to Katherine’s wardrobe is an interesting part of the movie. She poses as a broker in her Donna Karan suits. Later it is fascinating to watch her rapid transformation to swirling ball gowns and dancing feet, which ultimately lead her to the bed. Tess McGill (Melanie Griffith) is one among the masses in Manhattan. She is yet to adopt the Manhattan style of life, happy with her huge blonde hair, an old wardrobe and for easy walking, she sports tennis shoes. This was not expected of the working girl of the 1980s. Her outfit blocks her progress. Her male colleagues make fun of her career ambitions. She has the intelligence of the genius, but success eludes her for sometime, but not for all time. When ultimately she becomes the ‘boss,’ her dress sense goes metamorphic change. Then modernization achieved as for her dress and hair is excellent. The stuffed rabbit that Tess sets on her desk when she arrives at her new job shows her child-like innocence. It was made by teddy bear artist Gae Sharp. It was purchased at the Mables in New York. Director Mike Nichols later visited the store and ordered five more rabbits to give to important cast members. Something about the Best Supporting Actress Cusack! She excels in more than one scene. Her reaction to the expensive dress from the wardrobe of the boss, as she tells Tess, with the line: â€Å"5000 dolluhs It’s not even leather,† the last word emphatically pronounced â€Å"LEH-thuh† as if the price tag on the dress were a working-class faux pas. In that scene, Griffith as Tess nearly faints. 4. Staging or actor’s movement and gestures. The gestures of the boss speaking out her mind very tactfully and yet you need not be a psychologist to understand what actually transpires within the secret chambers of her brain. Her seriousness is deceptive. There is a discerning mind at work, and the way it has been captured calls for admiration. Katharine Parker, a breezy, insensitive sexist who by now knows that her secretary is brilliant, pretends to help her. â€Å"I’d love to help you, but you can’t busy the quarterback with passing out the Gatorade,† Katharine says. â€Å"Tess, you know you don’t get anywhere in this world by waiting for what you want to come to you. You make it happen. â€Å"Katharine further asserts. And there’s more treachery, which can be called as the white-collar crime. â€Å"Bring me your ideas and we’ll see what we can make happen. † Some side-kicks make the movie hilarious and griping. No doubt, Tess is making the best of the destiny-sent opportunity to her, whereas her boss is waiting for the broken bones to come to terms. But the fear element is always there—what if she is exposed at the most unsuspected moment! In one touching scene, she gets up to fetch the coffee when she has in fact been offered some. Tess’ gum-popping sister (jazzy Joan Cusak) is alarmed over her pretend success: â€Å"Sometimes I sing and dance around the house in my underwear. That doesn’t make me Madonna,† she warns. Tess has her own problems relating to her ‘past-life. ’ She has a boy-friend (Alec Baaldwin), not very polished, by any standards. Just care-free! The movie is photographed by Michael Ballhaus. Structurally, the film has some parallels with â€Å"The Graduate,† Nichols’ 1967 classic – including a climactic scene where an important ceremony is interrupted by the wrong person bursting in through the door. The photography is luscious. The Statue of Liberty is often shown; it is the symbol of opportunity, which a girl like Tess is able to grasp. She has proved how sex and money go hand in hand. A girl’s best friend is Capitalism. The important aspect of the movie is the transformation of the mindset of Tess, and her realization that she is capable of achieving more with her life. She is seized of the issue that there are astounding opportunities in New York. The initial frustration and the eventual confidence have been ably handled by Melanie Griffith. She still maintains her fragile inner nature. But now she is the tough business executive. Somewhere in the corner of her mind, she visualizes the collapse of the whole edifice. In the meantime, her ex-boy friend is making desperate efforts to win her back, and earnestly looks forward to her failure. Tess is shown to be quite uncertain about the future eclipse of her career and what telling effect it will have on her life. All these uncertain situations and movement and gestures of the concerned actors around Tess, have been ably shown and acted. The main characters of the movie are not strong, the plot as such is pedestrian, and yet the movie provides one with the worthwhile experience, because it relates to the trials and tribulations of the working women. What makes the movie click is the element of humor and the romanticism. But this is not a serious classic plot. The great performances (Oscar award winning) and real-life dialogues, make viewing an interesting experience. The professional struggles of Tess mixed with romance, keep the story going. Element of suspense is interwoven throughout the story in one form or the other. The level of imagination in acting by the minor characters like the duplicitous boyfriend is memorable. (Portrayed with an adequate balance of arrogance and warmth, by Alec Baldwin). Conclusion: There are sterling individual performances, but what matters is the collective effort. The small and the big characters have rendered faultless justice to their respective roles and responsibilities, by taking charge of the small and big issues nicely. As for Tess, it is the same old story. ‘God sees the Truth, but how long is the man (woman) to wait! ’ Tess is no more willing to wait to enter the portals of success. They say; having gone for a sea-bath, don’t be afraid of the oncoming waves. If the waves are powerful, duck them; if the waves are friendly, dance with them; when the waves are normal swim further, deep into the sea. .. The opening song of the movie seems to set the goal in the forthcoming life of Tess. Tess takes off her sneakers and puts on her high-heeled shoes. She is up to begin a new life, the life of the working girl, to which sun-rise and sun-set will have special meanings. She will learn to budget her time and regulate her life. She will transform herself from an ordinary ‘yes Sir’, ‘yes Madam,’ secretary to a noticeable executive with powers. Her high pitched ambitions that were dreams now take concrete shape. Gone are the days, when she consoled her conscience that it is better to deserve without receiving, than to receive without deserving. Now the watchword of her life is –success at all times, and success at all costs! Women have more than one enemy. Women executives and the male colleagues, each one up to their special interests! In case of Tess, her boss would not tolerate or accept her brilliance. Her theory is– the boss is always right! Working Girl 1988 is a cheap romantic comedy, and yet it is not! The inner core of every individual desires and loves perfection, wishes to reach the portals of spirituality by transcending the mind barriers, live for the ideals which one cherishes, but Satan is up to his ways to perturb the one treading the right path. He doesn’t like the honest brilliance of Tess. He makes her compromise with her character.

Ebay Strategy

Short history of eBay Pierre Omidyar launched the first online auction in 1995 under the name ‘Auctionwatch’ under the domain name of www. eBay. com with the intention of creating a person- ­? to- ­? person trading community based on a democratized, efficient market where everyone could have equal access through the same medium, the Internet. The initial concept was to attract neighbours and other interested in the San Francisco Bay area residents to the site to buy and sell items of mutual interest. From there, the business grew to succession year after year. 1996: Jeffrey Skoll became co- ­? president and director of eBay. 997: Margaret Whitman became CEO of eBay. 2004: eBay acquired a share in Craigslist. 2005: eBay acquired Rent. com and Shopping. com. 2006: Acquisition of Skype. 2007: eBay acquired Stubhub. com. 2008: Margaret Whitman resigned as CEO. John Donahoe was her successor. During the years 2006- ­? 2008, eBay experienced a drop in gross merchandise sales to - ­? 12% and a reduction in number of auctions listed to - ­? 15%. This signalled a downturn in business for eBay, and a need to overcome the challenges which it now faced. Between 2006 and 2008 : eBay’s share of the US e- ­? commerce market had fallen from 19% to 17% (Amazon market hares, same period: from 3,7% to 5,3%). In 2008, John Donahoe took over the firm. Donahoe was a man who liked change. He believed that the firms marketplace sector had reached its maturity and a change in strategy was needed for the firm to move forward. In other words, he believed that the emphasis should no longer be put on the market place sector of eBay but on expanding the business by providing an array of other services. Question 1: Porters’ five forces: When eBay was first set up in 1995, it was the first business in the online auction industry. Since then, the industry has grown significantly. eBays competitors includeAmazon, uBid, Yahoo, and Google. Due to the incre asing interest in the online auction industry, eBay is now facing competition from a number of different rivals, most importantly Amazon. 1. Bargaining Power of buyers: Medium Buyers have the power to negotiate a price which suits them through setting their preferred bid. There is no pressure on buyers to surpass their preferred price limit. However, the number of buyers in the market is vast therefore their power is limited. 2. Bargaining Power of Sellers: Low As a result of endless number of sellers in the market, the bargaining power is low as there are many alternatives which an offer buyers good value and at a low price. Unless dealing with high end items or collectibles, which may be rare, the bargaining power of suppliers is low. 3. Existing Rivalry among competitors: Medium: The online auction industry is oligopolistic in the sense that there are a few large companies who own a large proportion of the market shares (eBay, uBid). However eBay is facing competition from severa l online retailers (Amazon, Overstock). 4. Threat of Substitutes: High Many consumers still prefer to use traditional methods for purchasing and selling items such as in- ­? store purchases. Consumers prefer to use this ype of purchase for many reasons. Firstly for security purposes, there is no risk in giving cash- ­? in- ­? hand to an establishment as opposed to giving credit card details online. Also, buyers have the opportunity to check the value of the good they wish to purchase. Many retail outlets have also extended their market to an online level. 5. Threat of new entrants: Medium The threat from new entrants is medium. As a result of low barriers of entry into the market, it is not difficult for businesses to be created. Businesses find it difficult to generate regular customers, as they must build up a reputation of having a safe nd secure website. In this sense, eBay has a competitive advantage as it has created a strong, trusted environment for its customers. Risin g competition in the market will, in turn, cause improvements in product quality and innovation. Also in order to generate good profits, eBay must focus on the sector of suppliers which regulates the most profits, this being the suppliers of high end items such as collectible products. EBay can differentiate by specialising in the market for collectible goods. Question 2: PEST Analysis:  §? Political: The internet is a tax free environment. EBay is not affected by the governments’ laws on axes. However, eBay is affected by certain policies considering the sale of certain products in different countries. For example, the CNIL in France. Economical: As a result of the economic crisis, consumer behaviour is changing. Consumers have less disposable income to spend caused by problems associated with the economic downturn such as rising unemployment rates, inflation rates etc. Sociological: Consumer behaviour has changed dramatically in recent years. Consumers want a quick and co nvenient way to source their products/services; the internet provides this through online retailers and auctions. The number of internet sers has amplified (insert statistics later? ). Technological: The internet has revolutionised, its range of activities has expanded with time. Along with offering search engines to quickly find products/ services, internet now makes it possible to quickly make transactions between buyers and sellers (PayPal).  §?  §?  §? The combined aspects of political, social, economic and technological will strengthen competition in the industry. In reference to economical, the economic crisis will cause companies to differentiate and work harder to find a competitive advantage over its rivals. In relation to technological, the use of e- ­? ommerce is becoming more and more popular; it has transformed the market place. Changing demographics has meant the internet and e- ­? commerce has become a more prominent force in the lives of consumers. E- ­? commerce is appealing as a more attractive industry as opposed to traditional retail outlets. It is less expensive for companies to create a business online as they can avoid the cost of employing a sales workforce. Also, as technology progresses, there will be the opportunity for firms to globalize, therefore expanding their market reach into different countries, and increasing their consumer base. Online businesses ill be able to target a larger number of consumers worldwide. In the current economic crisis, people need to increase their cash flow. This is an advantage for online auctions such as eBay as people can sell items that they no longer use. It creates a larger market for second- ­? hand items such as worn- ­? once clothing. Question 3: Key Success Factors: Online auctions and retailers †¢ †¢ †¢ †¢ †¢ These key success factors apply to both online retailers and online auctions. However, in the case of the online auctions, a key success factor w ould be the necessity to create a community of trusted buyers and sellers. Online auctions uch as eBay emphasise the importance of good values among their users such as honesty and trustworthiness. A second key success factors for online auctions is the importance of attracting and keeping sellers as without sellers supplying the items, the market would not exist. It is essential that online auctions are made attractable to sellers. This can be done by offering suppliers the option to set a minimal price for their products, further advertisements of their products e. g. eBay will display sellers products on their homepage for a minimal fee. As shown, there are specified key success factors for online auctions. †¢ Necessity to create a community Necessity to attract suppliers Expertise in technology Brand name Generate traffic to the site: by attracting and keeping customers Overcome internet users nervousness about using the internet for e- ­? commerce Security of payment Que stion 4: Our strategic map conveys that this is an oligopolistic market. There are two main competitors who hold strong positions in the market, those being eBay and Amazon. Both businesses have a strong reputation in the market combined with a wide variety of auctions/product categories. EBay is a household name when it comes to online auctions. The map shows hat eBay holds the strongest position in the market. Amazon lacks in number/variety of auctions compared to eBay but it still managed to hold a strong position in the market through its well- ­? established brand name. In comparison with eBay, Yahoo holds a weak position in the market. It lacks in brand recognition as an online business. Yahoo also has a limited variety of auctions paralleled with the market giants eBay and Amazon. Question 5: Swot Analysis  §?  §?  §?  §? Strengths: Global brand for online auctions (Brand awareness). Quality and Quantity of products. Community spirit. Payment security (Paypal). Oppo rtunities:Acquisition of new business. Develop a market in emerging countries (India, Brazil†¦). Increase in online shopping.  §?  §?  §? Weaknesses: Model opened to fraudulent activities. System breakdowns. Increasing customer demands Threats: Substitute products (stores, online shopping web sites†¦). Success attracts competition. Interest and foreign currency exchange rates. Consumers’ fear of fraudulence  §?  §?  §?  §?  §?  §?  §? The SWOT analysis reveals that eBays strengths outweigh its weaknesses. eBays most promising strength is its globally known brand name. EBay has been established as a household name with its continued success in the - ­? commerce industry. It is still possible for eBay to expand and grow in this industry due to the increasing interest in online shopping. A notable weakness of the online commerce industry would be its systems openness to fraudulence. This has been faced by many businesses in the market including eB ay. Even though eBay was subject to controversy over this problem it has still emerged in a strong position nevertheless. Question 6: After computing the current ratio, we found that the company is able to pay its liabilities with its assets. 2005 2006 2007 Current Assets Current Liabilities 3990993 1266792 4970586 2518395 7122505 099579 Current ratio = current 3,15 1,97 2,30 assets /current liabilities It means that in 2007, the company can reimburse its liabilities with its assets 2 times. We noticed that the net income is decreasing (- ­? 70%). In fact, the gross merchandise sales are decreasing (- ­? 20%) and the auction listed too (- ­? 14%). The working capital shows us that eBay has enough cash available for the firm day to day operations. Working capital = current assets- ­? current liabilities 2005 2006 2007 2724201 2452191 4022926 The average collection period in 2007 is about 22 days. That means the company wait just 22 days before receiving the

Use of solarpanel on vehicles Research Paper Example | Topics and Well Written Essays - 1000 words

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RAW #8 Essay Example | Topics and Well Written Essays - 250 words

RAW #8 - Essay Example The principle is important because it protects both the companies and workers against exploitation and labor abuse (United Nations Global Compact). This ensures that all parties must have terms governing their contracts to avoid future disputes. The Elimination of discrimination in employment and occupation principle is about equitable treatment of workers without favoritism, prejudice or harassment. As a result, the principle means that organizations should ensure they embrace different opinions and backgrounds of their workers by observing national and local rules (United Nations Global Compact). The adherence to this principle means that they need to set rules that embrace all backgrounds, promote efforts that create a climate of tolerance and have programs supporting staff development on equal bases. This principle is essential in that it informs companies of their roles in eliminating discrimination elements (United Nations Global Compact). This starts from the recruitment to promotion of workers within an organization and across the different communities. In this regard, it is vital to embrace divergent opinions in order to attract appreciation and respect among the

Development of Concept of Operations. M3S Essay Example | Topics and Well Written Essays - 250 words

Development of Concept of Operations. M3S - Essay Example Setting goals improves the quality of any work. It can also lead to long working hours which will surely lead to poor performance (Rogers, 123). Mission state development could be the most valuable thing for any company, when done correctly it represents s a company’s purpose and it reminds the employee about the companies’ goals. Unlike business, goals, mission statements are never revised. In some instances if the mission statement is not accurate it leads to missing an opportunity in adding value to any business. Accountability problem is when, what is expected is not accomplished. The concepts of accountability are what leaders always struggle about every day. It requires discipline and commitment; more leaders avoid it and more leaks spring up in their organizations. A persuasive communication skill leads to development of various concepts of operation. It facilitates proper understanding making it easier in sharing of ideas. Communication can also be poor in that two parties are unable to understand each other, in such an instance no progress, poor communication will be cause. (Mat lack, 71). Command structure has its benefits; it is remarkably efficient in development of concepts of operation. It facilitates in a smooth running during the development. Despite being efficient, it can lead to favism of some of the employers. Effectiveness of any concept of operation can be measured after the output; failure to a concept of operation is not

The Role of the Information Technology in the Organization Research Paper

The Role of the Information Technology in the Organization - Research Paper Example Information systems are applied at all business sizes, i.e. from multinational corporations to small businesses. Some of the roles played by information technology in organizational development include productivity enhancement, improvement in profitability, cost reduction, inventory management and the establishment of a competitive advantage.   Information technology (IT) is made up of a wide array of communication and media devices that link information systems and people. Information systems encompass software programs and databases. Such technologies include voicemail, video conferencing and e-mail among others. IT consists of all forms of technicalities used to create, store, utilize and exchange information in various forms. The process entails processing, acquiring, storing and distributing information. It also includes manipulation, distribution, and processing of information. Information has formed the perfect replacement of the conventional methods of information dissemina tion at an organizational level. The innovative technological tools that have been brought in the organizational management through current technology include e-commerce and computers. Information technology is viewed as the most convenient and effective factor for performance improvement in the business world. Technology allows organizations to work more efficiently and improve their productivity. Most organizations have fully become dependent on information systems for performing their functions.   The most prominent role of information systems in an organizational setting is communication. Information devices act as a medium of verbal interaction between employees, staff, and suppliers (MacKechnie par. 1). Communication role of information technology is largely a product of the Internet whereby the organizational workforce interacts and communicates through e-mail. However, the recent advancement in information dissemination has led to the application of live chat systems and v ideo conferencing systems. Efficient communication ensures that the necessary information is shared among employees as well as external stakeholders. Marketing is also enhanced through the application of information systems whereby the geographical barrier has been eliminated. Organizational Role. Most organizations are currently undergoing the complex transformation. Many industries are changing the culture of mass production through large, vertically-integrated and hierarchically-organized production forms into flexible forms of both internal and external organization.

Proposals for any topic in banking managment Essay

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Business Strategy Assessment Essay Example | Topics and Well Written Essays - 1500 words

Business Strategy Assessment - Essay Example (Clark P. 2007) b) Ryan Air decided to buy aircrafts of the model Boeing 731 only. This reduced the company's inventory volume as less stock of spare parts was required to store. The pressure on crew training was also less and the maintenance staff could easily repair the aircrafts resulting into quick service. c) In order to reduce the landing costs, the company used airports like, Alghero (Sardinia) and Dinard (Brittany), which are not at all popular airports. These airports were looking forward to grow their business and thus offered competitive landing charges to Ryan Air. d) The company reduced the cost of outsourcing its services to third parties like travel agents for booking their flights. This helped the company to reduce cost by 10%-15%. So far the company facilitates only its official website and its own call center service for booking of the flights. e) Advertising is a vital part of growing business. Ryan Air reduced this cost as well by writing its low airfare captions on the aircraft body and relied more on the word-of-mouth advertising of the customers. 2. According to Michael Porter there are two basic kinds of competitive advantage- Cost advantage, where a firm delivers the same benefits as that of its competitors but at a lower cost, and differentiation advantage, where the competitive advantage of a firm lies in providing benefits that exceed those of the competitors. Among the positional advantages Ryan Air focused on cost advantage for reaping higher profits. Ryan Air's rival firms were British Airways and Ager Lingus and both airlines possessed higher financial position than Ryan Air. Moreover the company went into a rapid loss that called for its restructuring during 1991. Hence, focusing on differentiation advantage for increasing the firm's profit would have been a major mistake by Ryan Air. The company used its capability of rigorous cost minimization and introduced the surprisingly low airfares in the market. Thus the various measures of cost minimization by the company formed its distinctive competencies and helped the firm make a better place for itself in the industry. (Competitive Advantage, n.d.) Part 2 1. The decision tree above shows expected long-run profits of Lynne taking into account its decisions (square boxes) and the uncertainties (circles) in the economy. Lynee has two options before it: Staying in the present location Relocating to cheaper premises Hence both the decisions have a probability of .5. In both the situation it is faced with three different conditions of the economy and they have their respective probabilities of occurrence. In the aforementioned case, there are 6 distinct situations Lynne can face, Situation 1. Lynne stays in its present location and there is a downturn in the economy. Situation 2. Lynne stays in its present location and there is an upturn in the economy. Situation 3. Lynne stays in her present location and the economy remains the same. Situation 4. Lynne moves into a cheaper premise and there is

Frank Lloyd Wright Essay Example for Free

Frank Lloyd Wright Essay Frank Lloyd Wright was an architect, interior designer, writer, and educator. He designed more than 1,000 projects and over 500 of them were completed. He promoted organic architecture in his time which is quite popular now. (Baruffii, 2008) He also designed officer, churches, schools, sky scrapers, and museums. He authored more than twenty books and many articles. He was a popular lecturer in both Europe and the United States (Toronto Star, 1987). This paper will discuss Frank Lloyd Wright’s history and compare it to the reasons why he is still popular today and will remain popular in the future. Frank Lloyd Wright was born in Richland Center Wisconsin into a farming family who struggled to make a living. His parents separated when he was 14. Frank then became responsible for his mother and sister as he never saw his father again. There is no record of him graduating from high school but he was accepted as a special student at University of Wisconsin in 1886. He married in 1889 and built his own home at that time. Frank Wright then went to work for another architect but lost his job when that architect found that he was designing for some on his own. He then established a business of his own out of his home. He renovated and added on to the house several times. He moved his office downtown and then moved it several other times (Huxtadey, 2009). Frank Lloyd Wright left his wife with six children to spend time in Europe while writing his first book, with the wife of a friend. He then came home and built Taliesin on 200 acres inherited by his mother. His then wife and her two children were murdered in this home. The home became his winter home and is now the Frank Lloyd Wright School of Architecture. This home is located in Scottsdale Arizona and could not be more â€Å"green† than if it had been built as part of that movement today. Wright then met and moved into to Taliesin again with a divorcee though he was still married to his first wife. He, at the same time began to the design of the Imperial Hotel in Tokyo. He lived in Tokyo during the construction of the building. Keeping his innovative style, he designed the Imperial Hotel using both Japanese and Western architecture. He wanted to show that Japan was becoming a modern nation and that they had ties to the West. The Imperial Hotel was demolished in 1968 but some of the entrance was retained in a museum. It is studied to this day for design tones for today and tomorrows buildings. During the depression, like everyone else work was difficult to find. Wright began lecturing and writing at this time and had finally received a divorce from his first wife and married a second. He finished several books by now and was contributing to architecture magazine. Shortly thereafter, he opened his school at Talesman. The tuition was $1,100 and he shortly had a waiting list. In 1934 Wright designed and built Fallingwater which has become one of the most famous pieces of architecture in the world. The house was built for Edgar Kaufmann in Bear Run Pennsylvania. It was built on a waterfall. During this time Wright was also beginning to design his modest housing. The first was his Usonian house in Madison Wisconsin. He believed that everyone should have an architect and not a cookie cutter house. (wright. htm) Wrights Fallingwater house is one of those designs that speak to our thesis. It is a design of his day, a design of today and is believed to be a design for tomorrow. There are things about mans human nature that we tend to forget. We are a part of nature. When Wright designed this home he liked the powerful sound of the waterfall and the strength and beauty of the forest around it. There were dramatic rock ledges and beautiful colors in the granite all around. He wanted the design to flow as part of nature and it did and does and will. It takes ones imagination to a place many of want to go but find difficulty in getting to. Many thousands of people view this home every year and are in awe of its beauty and design (Steffenson, 2009). Wright then returned to Arizona where he got involved in many projects in the Phoenix and Scottsdale area. He designed the Opera House at the University of Arizona which was originally designed to be built in the Mid-East but was built here instead. He had a short period in his history when he suddenly likes what can only be called retro-sci-fi modernism. At that time, he designed what was to be the Southwest Christian Seminary. Many say the design was straight out of Flash Gordon. The design was never built. Benjamin Adelmans House was designed and built in Scottsdale in 1951. The Norman Lykes house was the final house in the area as it was designed just before Wright died in 1959. It was a 2,800 sq. ft. home that was circular in design and was actually built in 1967. He had much influence in architecture in the area as he was this areas most famous snow bird. He came here every winter and consistently had another idea for the desert. That was one of the beautiful things about Wright is that he could see beauty everywhere and was able to use the landscape as part of the design. Is that not what we are looking for today and probably tomorrow? Last but not least there is the Guggenheim Museum. It turns 50 this year (Lubow, 2009). Wright had yearning to elevate human society through its architecture. He felt that how we lived was how we learned. The beauty of where we lived should be mainted and nature should be a part of all design. The Guggenheim Museum is a part of the dream and the vision that Wright had throughout his life. This would be the last building he designed. It opened in New York City October 21, 1959 (Lubow, 2009). Frank Lloyd Wright died 6 months before it opened. He had many problems in making it happen. There were budget issues, building code issues, and even issues with the artists that would eventually display in the building. He spent essentially 16 years of his life designing and overseeing this building. There are some of those issues that the artists were concerned about. It is difficult to hang paintings in the museum because of the slanting of walls among other things. However, it is one of the most beautiful buildings in the world and it is said that it is prophetic in its way of meeting the needs of today and the world of art (Lubow, 2009). Wright seemed to see today’s world and how we would envision art when he designed the building. This writer would wonder if the next 100 years they will feel the same. One of the many things that Wright believed shows in his design of the spaces at the Guggenheim. He felt that though we all crave being alone sometimes, we are only truly well developed humans when we are all socially developed. The Guggenheim is built to accommodate that. It is huge and seems bigger than life but as one ambles through, it feels as if one is alone with the art and at the same time a part of those around them. Only the design can make one feel this way. Again, is this not a design for the future? There are so many beautiful spaces built by Frank Lloyd Wright. We can only begin to know what he was truly thinking. In his biography he talks about his beliefs about human nature and the spaces they live in. His Prairie houses were built for the average homeowner and yet they are like no house that any of us can own though many of us would like to. The Prairie houses were low horizontal designs with open interior spaces. You see their influence in homes all over the United States. In conclusion, it is obvious that the influence of Frank Lloyd Wright has not gone away. His original designs are some of the most beautiful designs in the world and he is appreciated as the most famous architect of his time. He continues to be popular today as we try to move toward designs that are more natural and more part of the nature around us. In all of the designs that have been developed to take in the affects of the landscape around them we find Wright elements. These are the things that support the fact that Frank Lloyd Wright was a visionary of his time, our time and the future. Resources Baruffi, K. , (2008). 10 great places to behold Frank Lloyd Wright’s vision. USA Today. Available at http://www. ebscohost. com http://architect. architecture. sk/frank-lloyd-wright-architect/frank-lloyd-wright-architect. php Huxtadey, A. , (2009). The hand and eye of genius. Wall Street Journal. 25(24) pg. 7. Lubow, A. , (2009). The triumph of Frank Lloyd Wright. Smithsonian; 40 (3) pg 52-61. Prairie Styles, Frank Lloyd Wright (1997). http://www. prairiestyles. com/wright. htm Steffensen, I. , (2009). Frank Lloyd Wright and the gift of genius. The Journal of American Culture, 32:3. pg. 257-268. Toronto Star. (1987). Frank Lloyd Wright: his influence lives on in home furnishings; AP news features. Pg 6.

Protective Effects Of Fluoride Toothpastes Health And Social Care Essay

Protective Effects Of Fluoride Toothpastes Health And Social Care Essay The main aim of this report is to discuss the evidence for the protective effects of fluoride toothpastes and varnishes. In addition, I will discuss their application and mode of action. To begin with, I will give a brief history of fluoride and how it fits into the reversal of tooth decay. I will discuss fluoride varnishes namely Duraphat, Fluor Protector and Duraflor and their effect on the DMF Index and their roles in school based prevention programmes. There are other varnishes such as Lawefluor and Bifluorid but these are less commonly used and therefore, I will not be discussing them. After discussing fluoride varnishes, I will consider fluoride toothpastes. I will give a description on the composition of a typical toothpaste and the effect of fluoride toothpastes on the DMF Index. In addition, I will discuss the effects of high fluoride concentration toothpastes. Finally, I will compare both toothpastes and varnishes. Contents Pages Summary Contents Introduction Deposition of fluoride in enamel What is tooth decay? Fluoride: Mode of Action Who is at risk of decay? Optimum fluoride concentration required for remineralisation DMF Index Main Section What are fluoride varnishes? Effect on DMFT/S The effect of fluoride varnishes according to different caries risk School based prevention programmes The use of fluoride varnish in inhibiting secondary carious lesions What are fluoride toothpastes? Use of fluoride toothpastes in clinical trials High Fluoride toothpastes The use of fluoride toothpastes in advanced enamel lesions Comparison of Toothpastes and Varnishes Conclusion Acknowledgements Word Count References Introduction I have decided to carry out this report on fluoride as I realise the importance of its role in the prevention of tooth decay (dental caries). Fluoride is a negative ion of the element fluorine and is found naturally in water, foods, soil, and minerals such as fluorite (calcium fluoride) and fluorapatite. Fluoride can also be synthesised in laboratories where it can be added to oral hygiene products and to water. Fluoride utilisation has occurred in two phases: before water fluoridation in the 1950s and after the widespread use of fluoridated dentifrices in the 1980s (Cury, Tenuta 2008) when less than 10% of toothpastes contained fluoride compared with 96% at present. Fluoride is most effective post-eruptively (Oganessian, Lencova Broukal 2007) where the effects are generally topical and therefore, it is important for a constant fluoride concentration to be maintained in the oral environment. Topically applied fluoride provides high concentrations of fluoride to surfaces of the denti tion. This provides a local protective effect and prevents ingestion of large amounts of fluoride. (Marinho et al. 2004) Deposition of fluoride in enamel During apatite crystal formation, low concentrations of fluoride are incorporated into the tooth structure. This leads to supersaturation with respect to fluoridated hydroxyapatite: {{66 ten Cate,J.M. 2008) Ca10(PO4)6(OH)2+ F-= Ca10(PO4)6(F)2 + 2OH- (Fluorapatite) After calcification is complete and prior to eruption, additional fluoride is taken up by the surface enamel. After eruption, the enamel continues to take up fluoride from its oral environment leading to its profound topical effects (Kidd 2005). What is tooth decay? It is important to consider the causes of tooth decay and how fluoride can be used to reverse the carious process. Dental Caries is a multifactorial disease caused by the action of acidogenic and aciduric bacteria (Streptococcus Mutans and Lactobacilli ({{32 Featherstone,J.D. 2008}}) on fermentable carbohydrates such as sucrose. Salivary glycoproteins form a pellicle on the tooth to which these bacteria attach to forming a pathogenic biofilm and over time, acid demineralisation and proteolytic destruction of the organic component of the enamel and dentine takes place (Young, Kutsch Whitehouse 2009). Dental Caries can be classified in several ways According to location-Caries may be restricted to pits and fissures but may also progress to expose the pulp. Restorative status of the tooth- Primary caries occurs on previously unrestored teeth whereas secondary caries occurs at margins of restorations {{52 Kidd,Edwina A.M. 2005}}. Secondary caries is caused by local factors that are involved in the formation of cariogenic plaque. Most secondary carious lesions develop at the gingival margins of restorations primarily in areas of stagnation areas (Mjà ¶r, 1998). Large gaps between the restoration and the wall of the cavity preparation can create an environment that favours secondary caries formation (Mjà ¶r, 1998). Secondary caries is also known as recurrent caries. Caries can be arrested whereby a lesion which was previously active has now stopped progressing. Fluoride: Mode of Action Fig 1: Demineralisation Process and the role of fluoride (Cury, Tenuta 2008) Figure one shows how sugars such as sucrose, glucose and fructose are converted to acids in the plaque biofilm. When the pH decreases below 5.5 (critical pH of enamel), the saliva is no longer supersaturated with calcium and phosphate. Therefore, demineralisation occurs. However, in the presence of fluoride and if the pH is higher than 4.5, hydroxyapatite is converted to fluorapatite which has a lower solubility. As a result, net demineralization is reduced and the dental hard tissues are more acid resistant. Tenuta and colleagues calculated that fluorapatite would not dissolve until the pH dropped below approximately 4.4. However, researchers have found that the effect of fluoride is not only due to the decreased solubility but also due to the effect of fluoride on the rates of demineralisation and remineralisation (Stoodley et al. 2008). In order to enter bacteria, fluoride must be combined with a hydrogen ion forming hydrogen fluoride (HF), which readily diffuses into the cell. Once inside the bacterial cell, the HF dissociates into fluoride and hydrogen ions. The fluoride inhibits intracellular bacterial enzymes such as enolase. As a result, less phosphoenolpyruvate and lactate are formed. The reduced lactate formation limits the ability of bacteria to cause caries. Similarly, the uptake of glucose is also reduced by fluoride {{63 Featherstone,J.D. September 2004}}. The fluoride concentration in saliva increases after brushing with a fluoride toothpaste. After three minutes, the concentration is 100 times greater than the baseline value (normally 0.03ppm or 1.6umol/l) {{65 Murray, J.J 1991}}. Two hours later, the concentration returns to normal. It is important to avoid rinsing out the mouth as the most profound effects of fluoride are within two hours of brushing. Fluoride is spread throughout the oral cavity and is stored in compartments on the tooth surface and the remaining pellicle (Cury, Tenuta 2008). Calcium Fluoride globules are formed and are reservoirs of fluoride, releasing it as the pH falls, thereby, reducing time spent in the demineralisation phase. The main effects of fluoride can be attributed to the maintenance of constant fluoride levels in the biofilm. Overall, fluoride has multiple ways of reducing caries. It is believed that the most important of these methods is the remineralisation concept {{40 Oganessian,E. 2007}}, which requires a constant flow of fluoride. Bacterial enzyme inhibition plays a supplementary role when the concentration of fluoride is high which is achieved by topical fluoride applications and toothpastes (Murray, Rugg-Gunn Jenkins 1991). Who is at risk of decay? There are certain groups in the population who are at risk of decay and therefore, would benefit from the use of fluoridated dentifrices. These include patients with: Xerostomia, which may have resulted from the radiotherapy to the head or neck leading to salivary gland exposure. This leads to a decrease in both the resting and stimulated salivary flow rates. Xerostomia is defined as the complete absence of saliva or hyposalivation. Hyposalivation leads to decreased levels of calcium, phosphate and hydrogen bicarbonate ions. As a result, there is a longer demineralisation phase Sjà ¶grens syndrome- this is clinically defined as at least two of kerataoconjuctivitis sicca, Xerostomia(dry mouth) and rheumatoid arthritis or another connective tissue disease {{62 Newbrun,E. 1996}} A high incidence of caries in their primary dentition Hypersensitivity Root caries Removable orthodontic appliances and partial dentures A poor diet and those who regularly snack on fermentable carbohydrates {{37 Evans,R.W. 2008}}. However, this risk has decreased due to better plaque control and increased fluoride exposure. Multiple restorations suggesting a high prevalence of caries Optimum fluoride concentration required for remineralisation Bjarnason and Finnbogason (1991) found that fluoride levels in dentifrices had no effect on the progression of enamel lesions detected radiographically. However, a higher fluoride concentration (1000ppm F-) led to reduction in caries initiation compared to a dentifrice with a lower fluoride concentration (250ppm F-) {{69 Bjarnason, S. 1991}}. It is ultimately difficult to decide the optimum fluoride concentration required for remineralisation as different areas of the mouth are more at risk of caries due to unique ecological factors. However, it was thought that lesion progression in enamel was slowed down only in patients with low caries activity whereas patients with high caries activity still experienced rapid progression (Hellwig, Lussi 2001). DMF Index The DMF index is a measure of caries activity in a population and changes in the DMF index can be used to highlight the protective effects of the fluoride toothpastes and varnishes (Kidd 2005). D: decayed teeth with untreated carious lesions M: missing teeth (extracted teeth) F: filled teeth DMFT denotes decayed, missing and filled teeth DMFS denotes decayed, missing and filled surfaces in permanent teeth and therefore, the number of surfaces attacked on each tooth are accounted for. There are similar indices for deciduous tooth, which are the defs and deft scores. The e represents extracted teeth to differentiate(Johansen et al. 1987) between natural loss of teeth through exfoliation. Burt in 1998 suggested that greater emphasis has to be placed on the assessment and early diagnosis of caries {{77 Burt, B.A. 1998}}. This has been backed up by cohort studies {{83 Johansen, E. 1987}} (Axelsson, Lindhe Nystrom 1991), which found that the use of preventive strategies (fluoride application) resulted in a substantial reduction in lesion development and progression. Fluoride varnishes What is fluoride varnish? Fluoride varnish was first developed in New York in 1968 by Heuser and Schmidt in the form of sodium fluoride and was marketed under the name Duraphat. The Duraphat varnish contains 22,600 parts per million of fluoride (ppm Fˆ°) as shown in figure 2. In the 1970s, there was a switch from sodium fluoride to difluorsilane which was marketed under the name Fluor Protector (7000ppm Fˆ°) in Germany {{42 Azarpazhooh,A. 2008}}. Fluoride Varnish Type of fluoride Fluoride Concentration(ppm) Fluoride Concentration(%) Duraphat Sodium Fluoride 22,600 2.26 Duraflor Sodium Fluoride 22,600 2.26 Fluor protector Difluorsilane 7,000 0.70 Fig 2: The table above shows the fluoride varnishes that are most commonly used. Other types of fluoride varnishes include: Fluoride Varnish Type of fluoride Fluoride Concentration(ppm) Fluoride Concentration (%) Lawefluor Sodium Fluoride 22,600 2.2 Bifluorid Sodium and Calcium Fluoride 56,300 5.6 Fig 3: The table above shows other fluoride varnishes which are available but are less commonly used {{24 Davies,G.M. 2008}}. Most fluoride varnishes contain fluoride in an alcoholic solution of natural tree resin. The main advantage of the varnish is that the resin base is very adherent to the tooth prolonging contact time between the fluoride and enamel {{26 Miller,E.K. et al 2008}}. Varnishes are easy to apply and relatively safe regardless of the high fluoride concentration as the amount of varnish applied to one child is only 0.5 ml on average (Ripa 1990; Petersson 1993). Varnishes are slow-releasing reservoirs of fluoride preventing immediate release of fluoride after application (Ogaard 1994). As a result, they are most effective at protecting against primary caries. The food and drug administration centre in America has not yet accepted fluoride varnish as an anti-caries agent but considered it as a liner/desensitising agent (Mason 2005). There is some debate as to the amount of fluoride taken up by the tooth surfaces. It was found that approximately half of the fluoride taken up by sound surfaces from Fluor Protector varnish was lost after 6 months suggesting that the large amount of fluoride taken up after one week does not bind permanently to enamel and that the effects of fluoride are more short term. There has also been a debate over whether fluoride varnish should be applied to wet or dry surfaces. Koch et al found that the fluoride uptake was much greater when the varnish was applied to dry tooth surfaces (Koch, Hakeberg Petersson 1988). Fluoride varnishes can be applied professionally up to two to four times a year. Marinho et al in 2002 investigated the effectiveness of fluoride varnish in preventing dental caries in children compared to a placebo or no treatment. Over 2700 systemically healthy children aged 16 or less received fluoride varnish containing 22,600ppm sodium fluoride. There was a large caries inhibiting effect on both permanent and deciduous dentition. However, the confidence intervals were relatively wide and the variation among the results was substantial. The success of the treatment may have been over estimated, as the results of the few trials may not have been representative. As a result, it is important to carry out more trials before a definite statement can be made of the effects of the fluoride varnish (Marinho 2002). In addition, more information is required on the scale of the fluoride effect and the adverse effects of fluoride. Effect on the DMFT/dmft Primary Dentition There was a 33% decrease in the decayed, missing and filled surfaces (Marinho 2002). A two year randomised clinical trial carried out on children with a mean age of 1.8 years, found that the application of fluoride varnish once, twice and three times a year reduced the mean dmfs by 53%, 58% and 93% respectively {{67 Davies,G.M. 2009}}. This highlights the importance of frequent varnish application. (Petersson, Twetman Pakhomov 1998)Petersson et al. in 1998 found a 19% and 25% reduction in the increment of approximal caries in children with a moderate or high caries risk respectively. This shows that children with a high caries risk benefit the most from the application of fluoride varnishes (Zimmer 2001). Ages 0-3 Weintraub and colleagues carried out a two year randomised controlled trial on 376 children aged between 6-44 months (Weintraub et al. 2006). The children were split into three groups: Those who received counselling Those who received counselling and the annual application of Duraphat Those who received counselling and the twice yearly application at six monthly intervals The number of lesions only increased in children who received counselling alone highlighting the protective effects of the varnish. Those children who received no varnish application were twice as likely of developing decay as those who received the annual application of fluoride. As the frequency of fluoride varnish application increased, the number of carious lesions decreased. One drawback of this trial was that simultaneous counselling and varnish application led to some ambiguity as to whether the effects were due to varnish application or counselling although fluoride application was seen to play a key role. Ages 3-6 According to the Cochrane Review, there was an overall 38% reduction in the DMFS/dmfs (Marinho 2002). A two year randomised study of 1,275 children in Canada aged between 6 months and 5 years found that twice-yearly application of Durafluor led to an 18.3% reduction in the dmfs increment (Lawrence et al. 2006). Mixed dentition There was on average a 46% decrease in dmfs. The fluoride varnish was an effective preventive measure for partially erupted permanent molars. Equally, patients who are insufficiently co-operative benefit from fluoride varnish application (Marinho 2002). Permanent dentition A randomised clinical trial used to examine the impact of fluoride varnish on the incidence of approximal caries, detected radiographically in 13 year olds over a three year period, found that the varnish applied monthly and twice a year reduced caries by 76% and 57% respectively again highlighting the importance of frequent fluoride application{{67 Davies,G.M. 2009}}. The caries reduction in permanent teeth shown in the Cochrane review of trials was similar to that achieved in a metaanalysis carried out by Helfenstein in 1994 when Duraphat was applied 2 times a year in children aged 9-15 years (Helfenstein, Steiner 1994). There was a 38% reduction in the caries. It is likely that most of the participants benefited from the use of a fluoridated dentifrice as the majority of the studies were carried out in Scandinavian countries between 1973 and 1987. However, as both the Cochrane review and the Helfenstien study were carried out involving a different selection criteria, it is debatab le as to whether the results from both these trials can be compared. In conclusion, application of fluoride varnish two to four times a year on both permanent and deciduous teeth is associated with a reduction in the caries increment (Marinho 2002). The effect of fluoride varnish according to different caries risks Mà ¶berg Skold carried out a trial which involved the application of fluoride varnish to approximal caries in adolescents living in different caries risk areas. The trial involved 758 students aged between 13 to16 years old. The large sample size meant that the results of this study were representative. This is because as the sample size increases, the variability of the results decreases. This means that the results have a greater statistical power and smaller confidence intervals. Fig 4: (Azarpazhooh, Main 2008) The figure above shows the groups which were chosen according to their caries risk and whether they had any fluoride in their tap water. Duraphat was applied to the approximal surfaces from the distal surface of the canines to the mesial surface of the second molars. Each group had different intervals of application shown in the figure below: Group No. of participants Frequency of Duraphat application One 190 Twice yearly in six-monthly intervals ( 6 times in 3 years) Two 186 Three times a year with a one week period each year(9 times in 3 years) Three 201 Eight times a year during school terms with one month intervals ( 24 times in 3 years) Four(Control) 181 No application Fig 5: (Azarpazhooh, Main 2008) The frequency of Duraphat application The results from this trial show that the biggest difference was between group one and the control group in high caries risk area (Gà ¶teborg). However, there was no significant difference between the groups regarding filled approximal lesions and approximal enamel lesions. There was a greater incidence of caries in the control group in comparison to the fluoride varnish groups in all risk areas highlighting the protective effects of the fluoride varnish (Mà ¶berg Skold et al. 2005). Overall, it was found that the school based monthly application of fluoride varnish is the best method of preventing approximal caries in areas of medium and high caries risk (Mà ¶berg Skold et al. 2005). School based prevention programmes A cluster randomised trial was carried out by M.C Hardman and colleagues involving 2,091 school children living in a non-fluoridated area. One group of students (1,025 students) received the twice-yearly application of Colgate Duraphat varnish whilst the other group (1,066 students) served as a control. This study found that the twice-yearly application of fluoride varnish did not lead to a reduction in caries in children living in the community {{43 Hardman,M.C. 2007}}. This is contrary to what was found by Marinho and colleagues. They found that the biannual application of Duraphat in a school-based programme provided a caries inhibition of 38% in children aged 9-15 years (Marinho 2002). The study carried out by M.C Hardman and colleagues did not prove to be conclusive as the level of consent in the community was low. Approximately 110 students were lost during the study. The control group had lower caries levels than anticipated and therefore, it was difficult to tell the true eff ect of fluoride. In addition, the application of varnish was carried out under sub-optimal conditions (teeth could not be cleaned prior to application and the consumption of food and drink after application could not be controlled), which could have resulted in less profound effects. In conclusion, it was found that this type of fluoride varnish intervention is not effective in the prevention of caries in the public {{43 Hardman,M.C. 2007}}. A similar study was carried in a small town located in the American Southwest on children attending a head start nursery using Duraflor as the varnish of choice. The trial began in the head start class of 2002. Duraflor was applied during well child visits every 9, 12, 15, 18, 24 and 30 months. The class of 2003 had no fluoride application and therefore, served as the control. The mean age was 4.40 years and approximately 168 males and 189 females took part. The results showed that children who received no treatment had a mean dmfs of 23.6 with a 95% confidence interval. Those children who received 1-3 treatments had a similar dmfs to those with no treatment. Only those children who had 4 to 5 treatments showed a reduction in dmfs again suggesting the importance of frequent application. However, this study was an observational study not a randomised study and therefore, the reliability of the results can be questioned. In addition, no attempt was made to determine whether the childre n who received four or more applications of fluoride varnish differed from the other children in terms of diet and oral hygiene history {{58 Holve,S. 2008}}.. The use of fluoride varnish in inhibiting secondary carious lesions As mentioned earlier, secondary caries forms at the margins of restorations. Larger amounts of fluoride varnish may be trapped in the gap formed between the restoration and the cavity wall. This may serve as a slow releasing reservoir of fluoride, which could also provide a physical barrier against wall dissolution. In a study carried out by M. Fontana in 1996, two experiments were carried out. Experiment one involved the application of Duraflor. Experiment two involved the application of Duraphat a year after the application of Duraflor. The effects of fluoride varnish on secondary caries remineralisation and lesion progression were measured. The varnish was applied to dry tooth surfaces and rinsing after fluoride application was prevented to enhance the remineralisation potential. The varnish was applied for 24 hours to prolong the contact time between the varnish and the tooth surface. The results from these two experiments showed that fluoride application slowed down lesion progression around both amalgam and composite restorations {{48 Fontana, M. 2002}}. The placebo varnish slowed down lesion progression to a lesser extent than the fluoride varnish suggesting that the effects may not only be attributed to the fluoride in the varnish. These results matched those in a previous study carried out by Hellwig et al. in 1993. They examined the effect of Duraphat varnish on artificially created primary carious lesions and found that fluoride varnish led to remineralisation in the outer layers of enamel {{78 Hellwig, E.K. 1993}}. This slowed down lesion progression. Seppa suggested in 1988 that the benefits of fluoride varnish were attributed to their ability to enhance remineralisation of primary caries rather than their ability to increase the fluoride content of the tooth surface. This is contrary to what was previously thought that the effects of topical fluoride were due to their ability to maintain high levels of fluoride on the surface of the tooth. Seppa also found that the efficacy of the fluoride varnishes was dependent on the number of applications rather than the concentration of fluoride {{79 Seppà ¤, L. 1988}}. This backs up the results found by Marinho et al that showed that the more frequent the applicati on, the lower the incidence of new caries or the greater the decrease in mean dmfs/DMFS. Fluoride toothpaste What is fluoride toothpaste? Fluoride toothpaste is the most widely used method of fluoride application in the population due to its ease of use. Fluoride toothpastes can be incorporated into community and school based prevention programmes. Most oral health care workers recommend brushing twice a day, once just before going to bed, as this is when saliva flow is at its lowest and once at another time of day{{68 Davies,R.M. 2003}}. They recommend spitting out the toothpaste after use rather than rinsing as this dilutes the fluoride concentration in the oral cavity as previously mentioned. The widespread use of fluoride toothpastes had made it more difficult to distinguish whether a reduction in caries is due to mechanical plaque removal or due to the incorporation of fluoride. Before the widespread use of fluoride toothpastes, the importance of fluoride was illustrated in a three-year study. This study involved two groups of children aged 9 to 11 years who had benefited from supervised brushing either with or without fluoride toothpaste. Both groups showed a reduction in plaque and gingivitis but a significant reduction in caries was only seen in the group which used fluoridated toothpastes (Davies et al. 2003). A typical toothpaste contains abrasives such as calcium carbonates, which help to remove surface debris, and stains on the tooth surface. Most toothpastes contain fluoride (added to toothpastes in the 1970s) to make the tooth more resistant to acid attack and is one of the most recognised agents in toothpastes. Stannous fluoride (also known as tin fluoride) was the first fluoride to be used due to its compatibility with the abrasive, calcium phosphate. Sodium fluoride could not be used at first as the calcium in the abrasive renders it ineffective and therefore, is not compatible. Sodium Monofluorophosphate was next used as it was compatible with the abrasives used with it. Sodium Fluoride could only be used when hydrated silica and sodium bicarbonate became the abrasive of choice. Studies have shown that the sodium bicarbonate-sodium fluoride combination lead to a caries reduction of one surface per child over two years (Murray, Rugg-Gunn Jenkins 1991). Fluorides have been shown to work better in combination with detergents such as sodium lauryl sulphates, which aid the remineralisation process and create foaming whilst brushing. Toothpastes contain humectants such as glycerol, which prevent the loss of water in the toothpaste. To provide taste, saccharin and other sweeteners are added. To stabilise the toothpaste, thickening agents such as seaweed colloids are included to ensure that the toothpaste stays on the toothbrush when it is applied. The use of fluoride toothpastes in clinical trials The Cochrane review of trials found that children who used fluoridated toothpaste had fewer decayed,missing and filled permanent teeth after three years. Brushing twice a day helps to increase the benefit of fluoride (Marinho et al. 2003 England). Researchers believe that the effects of fluoridated toothpastes are underestimated in two to three year trials due to the life long used of fluoride. They also found that the use of fluoride toothpastes in areas of fluoridated water increased the protective effects. The normal concentration of fluoride in toothpastes is between 1000 and 1100 parts per million (ppm Fˆ°). Toothpastes with higher fluoride concentrations (1500ppm) and lower fluoride concentrations (500ppm) are available in many countries. Toothpastes containing higher fluoride concentrations offer greater protection against caries (Stephen 1988; OMullane 1997). Since the 1940s, more than a 100 clinical trials have been carried out and by the late 1970s, the protective effects of fluoride toothpastes were greatly accepted. As a result, many clinical trials could not have a control, as the removal of fluoride toothpaste for the trial was considered unethical. Therefore, the effectiveness of different concentrations of fluoride toothpastes have not been investigated extensively in placebo-controlled trails. The guidelines of caries trials have since been changed in order to combat this problem, by increasing the sample size so that the measurement error could be reduced (Marinho et al. 2003 England). Children or adolescents aged sixteen or less were chosen to take part in the study carried out by Marinho et al. To assess the effect of the fluoride toothpaste, the caries increment was measured as a change in the value of the DMFS Index, in all permanent teeth erupted at the start and erupting over the course of the study. Evidence from this study suggested that the use of fluoride toothpastes leads to a 24% decrease in dmfs. The confidence intervals for this reduction were 21-28%. This means that 1.6 children need to brush with fluoride toothpaste to prevent one decayed, missing or filled tooth surface in a population where the caries increment is 2.6 DMFS per year. Where the caries increment was lower (1.1 DMFS per year), 3.7 children needed to use a fluoride toothpaste in order to avoid one decayed, missing or filled tooth surface(Marinho et al. 2003 England). There was also a substantial reduction in caries increment (37%) of deciduous teeth in a trial carried out on 2008 children aged 6 to 9 years. Another aim of the Cochrane review (Marinho et al. 2003 England) was to establish whether there was any relationship between the caries-preventive effects of fluoride toothpaste and the initial level of caries, previous exposure to fluoride and the frequency of fluoride toothpaste use on the prevented fraction. The prevented fraction (PF) is the proportion of disease occurrence in a population averted due to a protective risk factor or public health intervention (Gargiullo, Rothenberg Wilson 1995). The prevented fraction was measured as the diffe