Anti-money Laundering Systems in the UK

Anti-money Laundering Systems in the UK Introduction Money laundering is the term used to describe the process that disguises the (usually criminal) source of money.[1] The process of money laundering involves three recognisable stages. The first is the ‘placement’ stage when the proceeds of the crime, often in cash, are ‘placed’ into the financial system, for example, by being depositing in a bank. The second is the ‘layering’ stage whereby the proceeds are moved, usually through a series of transactions perhaps involving different entities, different assets, and different jurisdictions, in order to sever any audit trail and hence make tracing their origins harder. The third stage is ‘integration’ when the criminal resumes control of the proceeds, free from any link to their criminal source. An examination will be made of the statement that forms the subject matter of this essay. As an outline, this essay will contemplate the extent to which the United Kingdoms anti-money laundering regime seeks to address each stage of the process of money laundering. To conclude this essay will briefly reflect on the effectiveness of the UK regime. It must be emphasised that in an essay of this nature, large and complex topics will have to be reduced. The UK regime The Proceeds of Crime Act 2002 Banks and other financial institutions facilitate the three stages of money laundering and lend an air of respectability to the proceeds when they eventually reappear, therefore the financial and related sectors have always been positioned at the forefront of the drive to combat money laundering. The UK regime – which implements the EU Money Laundering Directives, FATF international standards and UN anti-terrorist financing measures, comprises three main components as far as banks are concerned. First, there is the primary legislation, the Terrorism Act 2000 (TACT) and the Proceeds of Crime Act 2002 (POCA) which creates a number of ‘money laundering’ and related offences. The so-called relegated sector[2] is subject to additional offences to encourage its co-operation in reporting suspicious activities and transactions. Part 7 of POCA created three substantive money laundering offences, concealing[3], arrangements[4] and acquisition, use and possession[5]. The three offences are wide in a number of respects. First, the three principal money laundering offences must be related to ‘criminal property’[6] which is very broadly defined as any ‘benefit’[7] from any criminal conduct in any part of the UK or ‘would constitute an offence in a part of the UK if it occurred there[8]. The meaning of criminal property has been the subject of a number of Court of Appeal decisions, most recently R v Akhtar [2011] EWCA Crim 146, a mortgage broker who had allegedly submitted dishonest claims for and on behalf of his co-defendants, was not guilty of entering into or becoming concerned in money laundering arrangements. Clarke LJ submitted that the natural an ordinary meaning of s328(1) is that the arrangement to which it refers must be one which related to property at the time when the arrangement begins to operate on it[9]. Criminal property has the same meaning in respect of all three principal money laundering offences as set out in s340: â€Å"It does not embrace proper ty which the accused intends to acquire by criminal conduct†¦ Property is not criminal property because the wrongdoer intends that it should be†[10] Akhtar followed R v Loizou [2005] EWCA Crim. 1579, where the court ruled that no offence under s327 was made as the property was not criminal at the point of transfer. To say that it extends to property which was originally legitimate but became criminal only as a result of carrying out the arrangement is to â€Å"stretch the language of the Section beyond its proper limits†[11]. [analysis] [add facts of the case and relate to stages of ML) R. v Afolabi == re. s329 mention some of the facts Then conclude with test in Geary on part 7 and then further anaylsis on the extentof the act in stages of ML. Scope http://www.criminallawandjustice.co.uk/clj-reporter/R-v-Geary-2010-EWCA-Crim-1925 Arguments that â€Å"criminal property† definition needs to be revised – Article:A suitable case for treatment: money laundering and knowledge Secondly, Liability arises if alleged money launder knows – see online book discussion between Hudson and Forston page 11 and 12 cases Thirdly, Drafted to cover every conceivable offence cases Mens rea cases Supplementary money laundering offences The ‘failure to report’ offences Tipping off As mentioned above banks and other financial institutions facilitate the three stages of money laundering, as such it is crucial to obtain the co-operation of those institutions who are essential for money laundering to occur at all. Section 330 and 331 of POCA create two new offences of failing to make a ‘required disclosure as soon as practicable’ after suspicion of money laundering is or ought to have been aroused. The term ‘required’ qualifies the disclosure in order to emphasise that the failure to report is a criminal offence. Slaughter and May – unregulated sector The Terrorism Act 2000 and related provisions The Money Laundering Regulations 2007 The Money Laundering Regulations 2007[12] require ‘relevant persons’[13] to operate their business in accordance with specified systems and procedures designed to combat money laundering and the finance of terrorism. The potential criminal liability laid out by the Supplementary money laundering offences discussed above together wit the regulatory requirements under the 2007 Regulations has caused the financial sector to introduce wide-ranging processes and procedures to ensure that its officers and employees fulfil these disclosure[14] obligations and hence that they do not fall foul of the criminal sanctions. The FSA Handbook Problems posed to banks by money laundering control Conclusion I [student number] declare that this piece of work contains # words. Bibliography Articles Shula de Jersey of Russell Jones Walker (2011). â€Å"Wide but not unbounded – the definition of criminal property† Money L.B. 2011, 186, 17-18. Money Laundering Bulletin CL J (2011) â€Å"Knowingly submitting a dishonest claim† C.L. J. 2011, 175(6), 78-79. Criminal Law Justice Weekly Kenneth Murray, (2012) A suitable case for treatment: money laundering and knowledge, Journal of Money Laundering Control, Vol. 15 Iss: 2, pp.188 197 Books Ellinger, E.P and Lomnicka, E and Hare, C.V.M Banking Law (Oxford University Press) The Law relating to financial crime in the United Kingdom / Karen Harrison and Nicholas Ryder Hudson, Law of Finance (first edition, 2009, Sweet Maxwell) Encyclopaedia of Banking Law (available via Lexis Library) Pagets Law of Banking (available via Lexis Library) Legalisation Proceeds of Crime Act 2002 Money Laundering Regulations 2007/2157 Other http://www.airant.it/pdf/MLB%20Sept%202011_0.pdf [Accessed 03 March 2014] http://www.criminallawandjustice.co.uk/clj-reporter/R-v-Akhtar-2011-All-ER-D-214-Jan [Accessed 03 March 2014] http://www.criminallawandjustice.co.uk/clj-reporter/R-v-Geary-2010-EWCA-Crim-1925 [Accessed 05 March 2014] http://www.emeraldinsight.com/journals.htm?issn=1368-5201volume=15issue=2articleid=17031335show=html [Accessed 05 March 2014] Cases Allen v Gold Reefs of West Africa [1900] 1 Ch. 656 [1] Ellinger, E. P. [2011] Modern Banking Law: Oxford University Press. pp92 [2] Including banks, financial entities regulated by the Financial Conduct Authority such as accountants, lawyers, estate agents, traders in high value goods, casino operators. [3] s327 POCA 2002 [4] s328 POCA 2002 [5] s329 POCA 2002 [6] POCA 2002, s.340(3) [7] See provisions extending the meaning of ‘benefit’ in s.340(5)-(8)(including pecuniary advantage’) and those as to ‘property’ (s.340(9)). [8] No restrictions are placed on the ‘predicate offence’, as long as the conduct generating the property is regarded as an offence in any part of the UK, thus it does not need to be an offence in the country in which it is committed. [9] R v Geary [2010] EWCA Crim 1925 [10] Lord Justice Elias in Amir and Akhtar [11] Lord Justice Moore-Bick in R v Geary [12] S.I. 2007/2157 (as amended by S.I. 2007/3299 and S.I. 2009/209, in force on 15 December 2007 and replacing the 2003 Regulations. [13] Reg 3 – Application of the Regulations [14] More usually called ‘reporting’.

Esprit five forces Essay

Esprit faces competitors such as H&M, Uniqlo, Zara, Mango, Giordano, and Gap. Esprit’s goal is to make its own enterprise gain advantage relative to its competitors. So when they implement their plan to achieve their goal, conflict occurs with their competitors. Competition is often manifested in the price, advertising, products, services and so on. Many â€Å"Fast Fashion† brands have different product lines. Their products are more innovative and stylish. Also those brands can meet the needs of middle-class consumers. Therefore those brands can occupy the market share and gain the market value. In 2011, Esprit lost more than 90% income from 2007. It is because Esprit lost its brand positioning, continuously slipping in popularity, less consumer demand, lack of innovation and unable to meet diverse needs of consumers. To solve these problems, Esprit decided to exit its North American retail operation. They cooperate with new competent license partner instead. However, they did not give up on North America entirely. Because exit the competition is more costly than continue to participate in the competition. There are some reason will mainly affect Esprit such as economic factors, global strategy and emotional effects. Socio-political factors include asset specificity and costs of exit. Threats of Buyer’s Growing Bargaining Power Esprit exists in fast fashion industry and there are few competitors in the industry. The products of fast fashion industry have similar style. Therefore buyers would have lots of choices. Buyers would like to get higher-quality products at an affordable price and this will affect the profitability of companies in the industry. In China market, China has a huge market size and demographic differences among provinces. However, China is a â€Å"Red Sea†. Esprit cannot get a desirable profit because there are too many competitors. This affect the buyers in China have more choices to make their own decision. Threats of Suppliers’ Growing Bargaining Power Supplier bargaining power is the ability to influence the setting of price. Suppliers lower their material’s quality and value but raise up the price of  input factors in order to influence the existing industry in profitability and competitiveness. Different supplier’s materials have certain characteristics and distinguishing features. Therefore the retailer cannot change the supplier suddenly without planning because changing the supplier may higher the cost. Also the one of the important reason is retailer hard to discover a high quality to replace the material. The strength of supplier bargaining power is mainly depends on what materials or input factors they provide to Esprit. When suppliers provide the input factors that the value occupy Esprit’s large proportion of the total cost of product and the production process is critical or seriously affect the quality of the product, the potential bargaining power of supplier is greatly enhanced. Threats of New Entrants Barriers of entry include economies of scale, product differentiation, switching costs, capital needed, sales channels, natural resources, policies, geography, and so on. Some of these barriers are hard to breakthrough by means of copying or imitation. The possibility of new enterprises to enter the industry is depends on the entrant, estimated potential impact of interest rate and the required cost of the risk to take. Competitive access to the severity of the threat depends on two factors. One is the size and the other one is expected barriers to new areas of existing businesses respond to entrants. However, the fast fashion industry entry barriers are very low. Therefore there is a lot of competitors who almost sales the same products or services in order to gain the fast fashion market share. Esprit is being tough and very hard to survival in this market which has high competition of market share of raw materials and it may lower the profitability of a company in the industry. Th reats of Substitute Products Esprit and its competitor such as H&M, Gap’s products are very similar and their products are substitute products. The competitive of substitute products will affect the competitive strategy of the company in the fast fashion industry. The existing product prices and potential of increasing the profitability are limited by the user’s acceptability of the existing substitute products. Because of invades of substitute products, the existing enterprises must improve the quality of their products, reduce the cost in  order to lower the price or make the products be more unique in order to prevent the loss and frustrated of sales. The lower price and higher quality of substitute product will produce a strong competitive pressure to the enterprises. The intensity of competition from substitute product can specifically observe by examining the sales growth, factory production capacity and profit expansion.

Popularity of Fast Food Production Essay

Introduction The popularity of fast food production today is a direct result of busy families. In today’s society both husband and wife usually obtain full-time careers. These careers take up much of the family’s time and energy. Children of these families are usually very active in many extracurricular activities such as, Boy Scouts, football, baseball, and basketball. With all of the practice, games, and outings, these activities consume a great amount of the family’s time. In this fast paced life people find it more and more convenient to grab some food on the way home than to prepare a full meal for their family. Families find it more convenient to have someone else do the cooking and cleaning than to take more time away from each other and do it themselves. Single people find it easier to pick-up some fast food than cook a big meal for one person. It is also a result of the most obvious, people these days are just lazier than people in our past were. A person who forgot their lunch at home is more likely to choose fast food over a restaurant because of the cost difference. They could go to a fast foodrestaurant for fewer tk. than they could go to a restaurant where they would spend for one meal. Actually, it is the result of time and convenience and sometimes it is a result of the low cost. Popularity of Fast Food The growing popularity of fast food has brought about ruthless competition in the fast food industry. Fast food chains are constantly trying to please growing consumer demand by selling more food at lower prices. In order to do so, these fast food giants continuously incorporate new â€Å"efficient† business practices which provide better services to customers resulting in bigger sales and larger profit margins. In most cases, these practices are obvious. For instance, precooked hamburger patties, computer systems, and drive-throughs were each introduced to minimize production time in turn allowing for increased sales. Nevertheless, less obvious business practices have also been implemented which most consumers fail to recognize. All together, increased fast food popularity has led to the adoption ofbusiness practices involving the careless treatment of modern day farm animals. * First of all, fast food is prepared from unhealthy meat. Most animals raised as food for fast foodrestaurants come from â€Å"factory farms. † At each of these factory farms millions of animals live torturous lives. Fast food companies choose to purchase from these farms because they minimize all production costs and provide cheaply. * Fast Food Growth- Comparison * History Fast food is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with preheated or precooked ingredients, and served to the customer in a packaged form for take-out/take-away. The term â€Å"fast food† was recognized in a dictionary by Merriam–Webster in 1951. Outlets may be stands or kiosks, which may provide no shelter or seating,[1] or fast food restaurants (also known as quick service restaurants). Franchise operations which are part of restaurant chains have standardized foodstuffs shipped to each restaurant from central locations. he concept of ready-cooked food for sale is closely connected with urban development. In Ancient Rome cities had street stands that sold bread, sausages and wine. Pre-modern Europe. In the cities of Roman antiquity, much of the urban population living in insulae, multi-storey apartment blocks, depended on food vendors for much of their meals. In the mornings, bread soaked in wine was eaten as a quick snack and cooked vegetables and stews later in the day at a popina, a simple type of eating establishment. In the Middle Ages, large towns and major urban areas such as London and Paris supported numerous vendors that sold dishes such as pies, pasties, flans, waffles, wafers, pancakes and cooked meats. As in Roman cities during antiquity, many of these establishments catered to those who did not have means to cook their own food, particularly single households. Unlike richer town dwellers, many often could not afford housing with kitchen facilities and thus relied on fast food. Travellers, as well, such as pilgrims en route to a holy site, were among the customers. United Kingdom In areas which had access to coastal or tidal waters, ‘fast food’ would frequently include local shellfish or seafood, such as oysters or, as in London, eels. Often this seafood would be cooked directly on the quay or close by. The development of trawler fishing in the mid nineteenth century would lead to the development of a British favourite fish and chips, and the first shop in 1860. A blue plaque at Oldham’s Tommyfield Market marks the origin of the fish and chip shop and fast food industries in Britain. After World War II, turkey has been used more frequently in fast food. As well as its native cuisine, the UK has adopted fast food from other cultures, such as pizza, Chinese noodles, kebab, and curry. More recently healthier alternatives to conventional fast food have also emerged. United States. As automobiles became popular and more affordable following the First World War, drive-in restaurants were introduced. The American company White Castle, founded by Billy Ingram and Walter Anderson in Wichita, Kansas in 1921, is generally credited with opening the second fast food outlet and first hamburger chain, selling hamburgers for five cents each. Walter Anderson had built the first White Castle restaurant in Wichita in 1916, introducing the limited menu, high volume, low cost, high speed hamburger restaurant. Among its innovations, the company allowed customers to see the food being prepared. White Castle was successful from its inception and spawned numerous competitors. Franchising was introduced in 1921 by A&W Root Beer, which franchised its distinctive syrup. Howard Johnson’s first franchised the restaurant concept in the mid-1930s, formally standardizing menus, signage and advertising. The United States has the largest fast food industry in the world, and American fast food restaurants are located in over 100 countries. Approximately 2 million U. S. workers are employed in the areas of food preparation and food servicing including fast food in the USA. FAST FOOD INDUSTRY IN BANGLADESH Fast food culture was started in the early nineties. In Bangladesh it has mainly geared towards the younger end of the market and the employees of the corporate sector. The fast food culture in Bangladesh has taken the country by storm. The first fast food shop started its business in the Bailey road of Dhaka. After that, a number of fast food shops started to grow exponentially in different places of the Dhaka city. Local entrepreneurs are leaders in pioneering the fast food industry of Bangladesh. New brands i. e. Swiss, Helvetia etc. are to name of some Bangladeshi fast food shops formed in franchising system. In early 2000, Bangladesh experienced the entry of the first international brand of fast food franchise in the country. Pizza Hut and KFC entered into Bangladeshi market having franchise with Transom Foods Limited (TFL). Both Pizza Hut and KFC are subsidiaries of the world’s largest restaurant company Yum! Restaurants International. TFL has opened three Pizza Huts and three KFC outlets in Bangladesh in a span of five years. Pizza Hut opened its flagship restaurant in 2003 at Dhaka. Following its grand success in Dhaka, the Chittagong outlet was opened in 2005. The third Pizza Hut restaurant was launched in Dhaka in 2008. Meanwhile, Kentucky Fried Chicken (KFC) perceived as high-quality fast food in a popular array of complete meals to enrich the consumer’s everyday life. TFL successfully launched the flagship KFC in 2006 and gained attention of the people with its taste, high standard of hygiene, cleanliness, interior attractiveness, affordable pricing etc. Following its enormous success in Dhaka, the second and third outlets were opened in 2008. ————————————————- Globalization In 2006, the global fast food market grew by 4. 8% and reached a value of 102. 4 billion and a volume of 80. 3 billion transactions. In India alone the fast food industry is growing by 41% a year. McDonald’s is located in 126 countries and on 6 continents and operates over 31,000 restaurants worldwide. [20] On January 31, 1990 McDonald’s opened a restaurant in Moscow, and broke opening day records for customers served. The Moscow restaurant is the busiest in the world. The largest McDonald’s in the world is located in Orlando, Florida,USA[21] There are numerous other fast food restaurants located all over the world. Burger King has more than 11,100 restaurants in more than 65 countries. [22] KFC is located in 25 countries. [23] Subway is one of the fastest growing franchises in the world with approximately 39,129 restaurants in 90 countries as of May 2009,[24] the first non-US location opening in December 1984 in Bahrain. [25] Pizza Hut is located in 97 countries, with 100 locations in China. [26] Taco Bell has 278 restaurants located in 14 countries besides the United States. [27] Current Market Size Economists at the National Restaurant Association estimated total foodservice sales for 2011 at ? 313 billion, representing a 5 percent increase over 2010. That means consumers spent an average of ? 855 million per day on food away from home. According to the National Restaurant Association’s Foodservice Industry Forecast, fast food comprised the largest segment of this market, capturing 47. 8 percent of the Takas spent. The report attributes this success to â€Å"fast food’s ability to meet consumers’ desire for value and convenience. † It was further estimated that at least 64 percent of all fast food purchases were consumed off-premises. According to Technomic, Inc. , a food industry consulting firm, almost half of consumer food Takas are spent on meals prepared away from home. In addition, food expenditures rise significantly as income increases according to the Bureau of Labor Statistics’ Consumer Expenditure Survey Data. Industry Trends This significant trend of consumers purchasing prepared meals is so pervasive that the foodservice industry has coined a new term to describe it: â€Å"home-meal replacement. † Many businesses are shifting their focus to meet the growing demands of consumers: * Most supermarkets now include a deli, bakery, and a prepared-foods section. Also, many offer fast-food service. * Boston Market has continued to expand its product lines and market share. * Famous chefs, such as Wolfgang Puck, are offering high-end prepared meals in upscale supermarkets. * Fast-food chains such as KFC, Pizza Hut and Taco Bell have formed alliances to offer multiple product lines under one roof. There are also several economic and cultural trends that have contributed to this growing demand: * Increasing number of women in the workforce * Increasing number of woman-owned businesses * Growing number of higher-income households * Americans working longer hours * Decreasing amount of leisure time * Premium placed on convenience * Trend toward purchasing personal services (i.e. , personal-trainers, house-cleaning services, home shopping services). According to Foodservice Solutions, a hospitality consulting firm: â€Å"Home-meal replacement is not a luxury today – it’s a necessity. People don’t want to take the time to cook; they have too many other things to do. People want high-quality prepackaged foods†¦ to make life easier. â€Å"| Entrepreneur Magazine selected â€Å"Personal Chef Services† as one of the top service businesses to start today: â€Å"Convenience-craving consumers are always looking for a way to do things better, faster and cheaper. Often, that means turning to a specialty-services entrepreneur who knows how to get the job done right. Those with culinary competence can likely find a hungry clientele among the ranks of America’s busy working families. â€Å"| Growth Potential of the Market Based on the National Restaurant Association’s Foodservice Industry Forecast, the percentage of food Takas spent away from home has grown from 25 percent in 1955 to 50 percent today. More importantly, the proportion of the food budget spent on meals away from home increases significantly as income increases. Households with incomes of ? 70,000 spent 81 percent more per capita (? 1,278 per person) on food away from home than the average income-reporting household (? 705 per person) according to the Consumer Expenditure Survey conducted by the Bureau of Labor Statistics. Also contributing to the potential growth in the market is the rise in affluent households documented by the Current Population Survey from the Bureau of the Census. From 1990 to 1994 the number of households earning ? 50,000 to ? 74,999 increased by 16. 4 percent; households earning ? 75,000 to ? 99,999 increased 36. 1 percent; and households earning ? 100,000 or more increased by 61. 1 percent in the same period. Affluent Households Gaining Ground Change in Number of Households| | Household Income| Increase (Decrease) in Number of Households| Percent Change| Less than ? 35,000| (1,638,000)| -3. 0%| ?35,000 to ? 49,999| (331,000)| -2. 0%| ?50,000 to ? 74,999| 2,310,000| +16. 4%| ?75,000 to ? 99,000| 1,841,000| +36. 1%| ?100,000 or more| 2,496,000| +61. 1%| Total| 4,479,000| +5. 0%| Source: Bureau of the Census A personal chef service is uniquely positioned to take advantage of the increasing demand for fast food, growing health concerns, and the rise in high-income households. Affluent working couples want â€Å"fast food,† but they want it upscale, healthy, and convenient. The founders of Truly Unique Personal Chef Service report that their business has grown 10 to 15 percent every year since opening in 1992. Many of their clients said they were getting bored with going out to restaurants and wanted something different. Customer Profile Creative Cuisine’s’ target customer will be families with two working, professional parents who are too busy to cook every night but are fed up with takeout and restaurant food. Their specific demographics are as follows: Household Income: Over ? 100,000 Age: 35 to 55 Education: College degree and/or advanced degree Marital Status: Married couples or high income single Job: Professional status (one or both partners) Children: Preferably ages 7 to 18 Homeowners: Preferably Location: Live in neighborhoods with high concentration of affluent families Customer Benefits Here are just a few of the benefits to customers if they hire Creative Cuisine: * 6 hours per week more free time (1 hour per day cooking/acquiring meal plus 1 hour per week grocery shopping) * Very convenient. * Meals customized to personal tastes * More variety * Health and nutrition benefits * Less stress * Client feels pampered * It makes life easier * Don’t have to cook * Less grocery shopping * Minimal kitchen clean-up * Peace of mind The Competition There are a handful of other personal chef services in the metropolitan area; however, since this is still a new business concept, there remains a large untapped market. Most competition for home-meal replacement exists from neighborhood restaurants, upscale fast-food outlets and supermarket prepared meals. Following is a competitive analysis of the various meal replacement alternatives: Fast Food Industry in 2012 at a Glance It is no secret: Americans love fast food. And its not just us! The Golden Arches have spread across the globe, and emerging markets are one of the fastest growing areas in the industry. But the fast food industry is not without its challenges, especially in the United States. From rising food costs, economic recession and changing perceptions about health, many fast food franchises have been feeling some heat. But rather than flee from this challenge, the fast food industry has been adopting new practices and offering new products. Modern society is on the go, and there is plenty of demand for a quick bite at all times of the day. Fast food franchising opportunities exist in the â€Å"traditional† spaces like burgers and pizza, but are also sprouting up in healthy and unique ways as well. The Industry The fast food industry, also known as Quick Service Restaurants (QSR), has been serving up tasty morsels for as long as people have lived in cities. The modern system of fast food franchising is believed to have started in the mid 1930’s when Howard Johnson franchised his second location to a friend as a means to expand operations during the Great Depression. And oh how it has grown! As cars became commonplace, the drive-thru concept brought explosive growth to the idea of food-on-the go. â€Å"Fast Food† was added to the Merrion-Webster dictionary in 1951 and U. S. fast food companies are now franchised in over 100 countries. In the U. S. alone there are over 200,000 restaurant locations! Revenue has grown from $6 billion in 1970 to $160 billion last year, an 8. 6% annualized rate. Fast food franchises focus on high volume, low cost and high speed product. Frequently food is preheated or precooked and served to-go, though many locations also offer seating for on-site consumption. For stands, kiosks or sit-down locations, food is standardized and shipped from central locations. Consumers enjoy being able to get a familiar meal in each location, and menus and marketing are the same in every location. What’s Been Going Wrong? There have been challenges for the fast food industry in recent years that have been pressuring profit margins. The industry as a whole has proven robust enough to withstand these challenges, though some players have done better than others. Over the last decade there has been increased focus on the quality of food served in fast food restaurants. Typically highly processed and industrial in preparation, much of the food is high in fat and has been shown to increase body mass index (BMI) and cause weight gain. Popular books such as Fast Food Nation and documentaries like Super Size Me have increased public awareness of the negative health consequences of fast food. Fast food companies have responded by adopting healthier choices and have had some measure of success, but the shadow of bad press still hangs over the industry. Rising commodity prices have also significantly crunched many fast food franchises. With food and beverage inputs making up approximately 33% of costs, higher prices for livestock, corn, wheat and more have seriously shrunk margins over the past decade. In such a fiercely competitive space it is impossible to force a price increase on customers, so profit margins are often south of 10%. The recent economic recession did lower commodity prices, but the recession brought on its own complications, and now prices for commodity inputs are on the rise again. Fast food had been thought to be largely recession proof, and indeed the industry did not suffer nearly as much as other discretionary spending sectors. In fact, there was some increase in consumer visits as people choose cheaper fast food options over fast casual or traditional restaurant choices. But overall, the recession hurt spending, and consumers overall purchased less with each trip. Fast food franchises fared reasonably well but still felt some pain. Market saturation is also a relevant issue in the fast food industry today, at least in the U. S. There is a McDonald franchise is in almost every town, and it usually sits in a row with several competitors. With so many competitors which offer similar products there are fewer customers per location. Increasingly fast food restaurants are also losing market share to fast casual, a relative newcomer in the restaurant space. Where do we Go from Here? Busy citizens still need quick meal options, and fast food restaurants are fighting these challenges with gusto. Now offering healthy choices to battle the stigma of unhealthy food, some quick service restaurants now focus on fresh or organic products. From franchises focused solely on salads or healthy wraps to the lower calorie options offered at traditional burger franchises such as Wendy’s or McDonald’s, consumers are able to make better choices†¦if they want! Fast food franchises are also focusing on expanding into new product lines, such as the coffee initiative in the McCafe. Intended to offer competition to Startbucks, McDonalds is luring customers back into their stores, hoping they will purchase food as well. Many franchises have been exploring other meal times such as breakfast and the mid-afternoon snack for growth opportunities and to increase real estate utilization. The industry is most effectively battling saturation within the United States by creating a much more diverse range of offerings. Sure, there is a McDonalds in every town, but there are very few crepe franchises†¦yet! From new cultural cuisines to fresh takes on a traditional story, there are many moretypes of quick service restaurants than ever before. The fast food industry is still a large and diverse industry with plenty of opportunity. As one would hope, challenge is being answered with innovation, and fast food franchises are responding with new offerings, pricing and strategies to lure consumers back in. Non-traditional fast food franchises are springing up and gaining traction, and more creativity will always be welcome! Consumers are now on the look-out for new ways to eat fast and healthy. And as the industry continues to evolve and the economy strengthens, fast food franchise profitability will continue to grow. Porter’s five forces industry analysis for Krispy Kreme Saturday, January 29th, 2011 at 9:00 am. What is Porter’s Five Forces? Well I doubt there is any need to explain one of the most famous strategic tools around but just in case, it is a tool to analyse the external industry to find the root causes of profitability. Again seeing an example is useful and below is a five forces analysis of Krispy Kreme. Rivalry among existing competitors (High +++) * High concentration of rivals e. g. Starbucks and local chains * Static market growth * High fixed costs * Perishable products (food and drink) A large number of competitors in the industry are all competing for the same customers. Coffee chains (e. g. Costa, Starbucks) are all competing to be number one in the market and have similar corporate goals. While product differentiation is limited, there is fierce differentiation by product range, brand and store ambience (e. g. seating). There are zero switching costs for customers, which promotes price wars. Market growth is static, which promotes fierce fighting for market share, and there is saturation of competition due to the limited number of prime locations available for outlets. Smaller chains have to pay a premium for prime sites or settle for less desirable locations. Threat of new entrants (Medium +) * Large capital requirements required to build chain of stores * Favourable locations are already occupied * Economies of scale in distribution and raw ingredients (lower per unit costs due to the experience curve) * Product and brand differentiation Capital requirements for individual stores are low, however new entrants wishing to compete on a like basis with national store networks, distribution channels, brand equity development and advertising, face large capital requirements to gain market share. This is reflected in the large number of individual outlets compared with the small number of large, proven top specialty eateries. The UK commercial property market is landlord-driven and controlled; premium locations in the UK are scarce and command high prices with most of the favourable locations within town centres, airports and train stations already being occupied by existing competitors. Threat of substitutes (Medium +) * Large choice of alternatives with similar products e. g. energy drinks, cakes, biscuits, ice-cream, chocolate * No switching costs. Although a consumer can choose from multiple substitutes (e. g. desserts, pastries or drinks), speciality eateries compete based on convenience and opportunity. Most people buy from speciality eateries when travelling, shopping or meeting people. This is evidenced by the location of the eateries, which is concentrated around high footfall locations such as train stations, business districts and shopping centres. For a consumer this becomes a competitive choice rather than a substitute choice (e. g. do I buy a coffee from Starbucks or Costa). Other substitutes come from full menu eateries such as restaurants and fast-food outlets with a smaller threat from supermarkets. Bargaining power of suppliers (Low) * Vertically integrated businesses with only commoditised raw ingredients * Large number of suppliers to choose from and low switching costs Bargaining power of buyers (Low) * Buyers are fragmented and numerous * Although there are no switching costs for the buyer the food and drink market is part of the fabric of society Conclusions and Recommendations. Fast food consumers of Bangladesh, especially the university students, considered brand reputation as the most important factor when choosing fast foods followed by nearness and accessibility, similarity in taste, cost and quality relationship, discount and taste, clean and hygiene, salesmanship and decoration, fat and cholesterol, and self-service. The recent upset in the fast food industry of Bangladesh was created by the discovery of unethical practices conducted by several fast food businesses resulted in consumers putting their trusts on renowned fast food brands only. Thereby it is seen that the fast food houses with reputed brand name and recognition i. e. KFC, BFC, Pizza Hut, Coopers etc. are carrying out their businesses in a usual manner even in the toughest time of the industry. The majority of the fast food brands that passed with flying colors during the mobile courts inspection for quality maintenance were able to either establish or revitalize their brand reputation. Eventually as suggested by the research findings, the university students will select such fast food brands that have brand reputation. Besides the brand reputation, the other important factors were nearness and accessibility, similar taste of fast food, cost and quality relationship, discount and taste. In case of nearness or proximity and accessibility factor, consumers prefer to go to the fast food outlets that are close from their own home or study institutions. It is seen that the fast food shops in Bangladesh has already considering the factors by establishing their outlets near big corporate houses and private universities. Especially, in Dhaka city this practice is seen in Bailey road where majority of fast food shops are located. Near Bailey road, there are 3 girls’ school and collages, and 3 boys’ school and 2 collages in walking distance. Almost similar situation prevails in Gulshan, Banani area of the city where KFC and Pizza Hut outlets are situated near 3 private universities. It is understandable from the situation that the students studying at these institutions consider these nearby fast food outlets whenever they decide to consume fast foods. There is an opportunity here however, for new fast food shops to compete with the existing fast food outlets. Since establishing a new outlet in an already competitive business space is expensive and difficult, the new fast food businesses can introduce mobile fast food outlets. Through mobile fast food outlets, new fast food businesses can deliver their fast foods that are already cooked fresh in their shops, but kept hot and delivered to the students instantly with their own choice of accompanying taste enhancers i. e. tomato sauce, cheese etc. These mobile fast food outlets could be on top of a mini-truck, van etc. The similar taste of the fast food factor refers to the fact that no matter which fast food outlet a particular fast food item is bought from, the taste should be similar. For example, if a chicken burger is bought from an outlet of KFC, the taste would be similar to any other chicken burger bought from any other KFC outlet. The taste could differ from other fast food shops as the different business use taste as differentiating factor in case of food items. But the businesses have to keep in mind that too much difference in taste of similar fast food items makes the consumers confused. The cost and quality relationship is also an important factor considered by the consumers of fast food. If the cost of a fast food item is high, it is usually considered to be carrying high quality and vice versa. So, the businesses of fast food products have to be careful in setting the prices of the fast food items. The pricing should be such as it offers the right amount to value to the consumers in a competitive price that at the same time ensures adequate profit margins for the fast food businesses. Finally in terms of discount and taste factor, the consumers consider the availability of discounts in fast food outlets. Usually these discounts are offered as group discounts i. e. arranging a party or social gathering at a reduced price package etc. Consumers consider this option when choosing fast food products. They might not immediately use this factor but it puts the fast food shop in their consideration set for later use. This study recommends that the fast food producers or distributors at Dhaka city should focus more on the brand reputation, nearness or proximity and accessibility, cost, quality, discount, and similarity in taste factors. If they are able to fulfill these needs, university students of Bangladesh will be induced to buy and consume fast food whenever they are out of their houses. However, there is an ample scope to conduct further study on the preference factors used by the office-goers, housewives, and visitors in buying fast food to determine if there are any more common or unique factors prevailing among these different groups that might be important in making decisions regarding the choice of fast food items in Bangladesh. Abstract. Fast food industry is a high growing sector of Bangladesh. It is concerned with the tastes and habits of the people. The food-taking habit especially in fast food segment has been changing very fast over last decade among the people of Dhaka – the capital city of Bangladesh. The reasons could be attributed by the increase of awareness, growth of education, development of information technology, and expansion of television channels and print media in Bangladesh. Hence, this paper aims at identifying the preference factors of fast food consumers living in Dhaka city. This study was conducted among the university students who usually eat fast food at their leisure time. To conduct the study, a total of 250 respondents were interviewed with a structured questionnaire. Both descriptive and inferential statistics were used in analyzing the data. Multivariate analysis technique like factor analysis was performed to identify the preference factors of the fast food student-consumers of Bangladesh. Multiple regressions were run to identify the relationship between the factors identified and the overall preference of the consumers. Results show that the consumers give most importance on brand reputation of the food item followed by nearness to receive and accessibility, similarity of taste with previous experience, cost and quality of the food, discount and taste, cleanliness and hygiene, salesmanship and decoration, fat and cholesterol level, and self-service factors. This study suggests that the brand reputation, nearness and accessibility, similarity in taste, and cost and quality relationship should be emphasized to improve the attraction of the university students towards the fast food items in Bangladesh.

The Evolution of Graphical Styles in Video Games - Free Essay Example

Sample details Pages: 6 Words: 1715 Downloads: 3 Date added: 2019/05/07 Category Entertainment Essay Level High school Tags: Video Games Essay Did you like this example? One of the most vital things in game development is graphical style. Overall, the visual style of a game is often the significant factor in creating a fun and interesting experience for gamers. Various methods of experimentation are used to visualize game content (Lee, Gee, Dolah). Don’t waste time! Our writers will create an original "The Evolution of Graphical Styles in Video Games" essay for you Create order By applying diverse design techniques, artists as well as game developers are able to achieve different results in the presentation of video games. In the context of visual design, graphic style is a term used to describe illustrations in games, and it is also the presentational facet of the surroundings in gaming that is seen by the players (Lee, Gee, Dolah). Game scholars have discovered three specific categories of graphical styles used in the game industry. These styles are abstract, stylized and realistic. These graphical stylescan be compared and explained to show successful gaming graphics and experiences. Abstract Graphical Style Abstractionism is one of the graphical style categories. It uses geometric shapes and forms instead of clearly detailed characters, objects, or recognizable places (J? ¤rvinen 124). In art, abstractionism it employs lines, colors, various geometrical forms, and their relationships to one another (Abstract). Abstractionism is nonrepresentational and does not derive directly from life. At the very least, games do replicate some sort of an environment. Different abstract puzzle games emphasize forms and shapes, however, these forms are generally more stylized instead of being abstract (J? ¤rvinen 123). The 1970s showcased the beginning of arcade and home video games, reaching mainstream popularity. Many of the games from the 70s were minimalistic and abstract when relating to graphic design. Due to the technology and hardware limitations at the time, the creation of characters, objects, and environments were simplified to the bare minimum of recognition. The majority of the games were stylized graphics with geometric shapes that served as abstract style (J? ¤rvinen 123). There were many successful abstract games, especially during this time period. Pong is a go od example of this (see figure 1). It launched the video game industry in the 1970s. Pong was like a virtual version of a table tennis game where the white ?blocks were expressed as racquets and the small square as the ball. Pong was considered one of the most successful games created because of its simple nature and entertaining gameplay. The 1980s was the golden decade for the development of video games. A memorable event was the Great North American Video Game Crash between 1983 and 1985. This created a recession in the game industry due to an oversaturated market of undistinguished video games and systems (The Great Video Game Crash). In 1985, with the success of the Nintendo Entertainment System (NES), the game industry finally got itself back up. The 80s showed more variety in graphical styles as game developers started to exercise with new technology, thus creating games that were more complex. For example, more details were created by a higher amount of pixels (Wolf, 58). By the end of the 1980s, technology had greatly improved which led to games to become graphically more complex and detailed. Therefore, instead of abstract style being a default style, it began to evolve to be more of an artistic choice (Wolf 58.). In present day, seeing video games with abstract styles is less common. This is mainly due to the increasing popularity of storytelling and how abstract games are more difficult to market. It is also unlikely for big budget titles to be purely abstract, however, the style has been making a comeback in the world of mobile gaming (Egenfeldt-Nielsen et al. 144). The 2000s have been a vital era in video gaming. During this decade, Sony, Nintendo and Microsoft have taken control of the gaming world with its stylized and realistic graphical styles. However, that only lasted until the popularity of smartphones bloomed in the late 2000s, which resulted in the high demand of mobile gaming as well as the comeback of abstract games (Number of Apps). The abstract style is also easier to work with on different mobile hardware since abstract games are usually not as demanding graphically, as compared to some stylized ones, for example. One of the most popular mobile games utilizing the abstract st yle is Geometry Dash (see figure 2). Even though mobile gaming existed before the time of smartphones, the choices and the quality of these games are not the best. Stylized Graphical Style Stylized graphics involves on depicting a person or an object by exaggerating its most prominent features (Egenfeldt-Nielsen et al. 173). Stylized graphics are carried out in a wide range of different artistic interpretations. One form is caricaturism (Egenfeldt-Nielsen et al. 123). A caricature refers to the representation of character or an object that is simplified to its most characteristic features (J? ¤rvinen 122). In terms of computer graphics, this style can also be attributed as non-photorealistic rendering or NPR. In other words, NPR focuses on visualizing the content with particular digital art styles (Winkenbach and Salesin). As opposed to photorealism, where the idea is to accurately recreate detailed representation of life-like images, NPR takes incentive from paintings, drawings and cartoons. From the 1990s until now, stylized graphics continued to be used in numerous two-dimensional video games. The 90s was a time to be considered as one of the most innovative eras in gaming (acyentertainment). During that time, video game graphics started to make its transition from pixels and sprites, which were icons in computer games that can be moved around the screen by a controller (Sprite), into fully rendered 3D graphics. Due to this, stylized graphics were able to co-exist with 3D graphics. The exaggerated cartoon art graphics made the most impact compared to the other amounts of realistic games. Additionally, stylized graphics were very adaptable and could be completed in different techniques. When 3D computer graphics were becoming more dominant, the first 3D games that had cartoon graphics accurately parallel with their 2D versions from a design perspective. A couple iconic examples of stylized games are Spyro the Dragon and Super Mario 64 (see figure 3). In more ways than e ver, Nintendos Super Mario 64 was considered the most significant and revolutionary three-dimensional games. It had set a standard for the character and camera movement in third-person and it was also the first Mario game created that was in 3D (Stanton 2015). Since the 90s until today, comic/cartoon styled graphics continued to grow towards a more realistic approach when it came towards big budget titles. Current cartoon games often prioritize the aesthetic and atmosphere or a unique style of its universe. Some examples of the cartoon styles seen in todays games are Overwatch, Team Fortress, and Splatoon (see figure 4). Square Enix, a Japanese video game company, targets more on character design. Therefore, they are well-known for their cartoon art style. To explain Square Enixs unique style, they are famous for incorporating both western and eastern art styles (Plunkett). Two noted examples of their look are the Final Fantasy series and Kingdom Hearts series (see figure 5). The tr ade look of these games, designed by Tetsuya Nomura, has created a style that most fans would associate and recognize when seen. The style usually features exaggerated hair styles, oversized weapons, and clothing details (Plunkett). Stylized graphics are a popular style across all common gaming platforms. Due to the visual, versatile nature of stylized graphics, the style is cohesive with any game genre and can also be changed or tweaked to accommodate nearly every gamers needs, whether it be an adult or a child. Realistic Graphical Style In art and literature, realism means the treatment of forms, colors, and space, in a manner as to emphasize their correspondence to actuality or to ordinary visual experience (Realism). Photorealism is a subgenre of realism that takes the style in a different direction. In art, photorealism creates the image as accurately realistic as possible, often when the artist studies the photo and tries to remake it in a different medium (Photorealism). One more subgenre of realism is semi-realism. It is a style that is has a majority of realistic aspects but also has exaggerated, simplified and stylized characteristics. Photorealism is a graphical style that tries to replicate a detailed representation as obtained in a photograph through a non-photographic medium, such as, computer graphics (J? ¤rvinen). A few examples of photorealistic games are Gears of War, the Assassins Creed series, and The Last of Us (see figure 6). Current three-dimensional video games are usually rendered using rasterization. This technique is an algorithm that converts an image into points on a grid (Scharr). Then, the lighting and shadows are made separately by pin pointing from a stated light source. Stylized realism is basically a combined style of stylized and photorealistic graphics. The style is characterized with exaggerated appearances that are found in cartoon and artistic styles. At the same time, it also carry strong photorealistic aspects. In three-dimensional video games, graphics designers would first create the artistic and emphasized 3D models and animations, then render these models with photorealistic textures, shaders and lighting settings (Anhut). The main components that would make a game be considered as stylized realism are: the game must already be stylized, whether it would be characters, spaces or objects and the graphic details must apply realistic materials, textures and accurate lighting in the 3D environment (Anhut). A few examples of stylized realistic games include, Mortal Kombat X, Bioshock Infinite, and the Tekken series (see figure 7). The graphical style in the Tekken franchise demonstrates stylized realism very well. The games design usually depicts photorealistic and innovative environments while still having the stylized aspect as well as the exaggerated features in the character design. Most of the unrealistic parts in the character design are the face and body proportions, intense, oversized weapons, and costume design. Due to the nature of stylized graphics in general, the games were not usually as demanding as pure photorealistic games were. Additionally, by idealizing and exaggerating the character design, the developers managed to avoid the had-to-conquer phenomenon uncanny valley. Because of these reasons, games made in stylized realism managed to age well compared to photorealistic games. Overall, photorealism has become the common graphical style in todays video games. It is also assumed that the style will remain as the popular option for awhile. Even though photorealism has been the most favored style in past years, it is hard to imagine what will come next.