Outback Steakhouse Case Study Essay Example

Outback Steakhouse Case Study Essay Overview of the Outback Case Study Analysis The authors of the Outback Goes International study, (hereinafter the â€Å"Study† or â€Å"Case†) depict a restaurant company, Outback Steakhouse, (â€Å"Outback†, the â€Å"Business†, or the â€Å"Company†) that by 1995 had experienced significant growth over the prior seven years. The Case addresses how management identified international expansion and product diversification as the principle elements of a strategic plan formulated to continue rapid expansion. This report will evaluate Outback’s strategies of international expansion and restaurant diversification in light of alternative means of achieving enhanced shareholder value via growth. Several uncertainties and challenges, which management acknowledged and the Case documents, faced Outback. The methodology used by the Company to consider its strategic options will be addressed by this report as well. The analysis contained herein will evaluate issues pertaining to those challenges, relying on the comparative performance of the Company’s publicly traded stock as the ultimate measure of management’s success or failure. This report will first evaluate the fundamental elements of the companies’ strategic plans, incorporating published academic research regarding strategic decisions, risks and the basis for management’s decisions. Additionally, further evaluation of the opportunities and competitive achievements in the international arena will be conducted. Finally, this report will attend to and appraise the ultimate financial performance achieved by the Company since the establishment in 1995 of its strategic plans and subsequent preparation of the Case being analyzed herein. We will write a custom essay sample on Outback Steakhouse Case Study specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Outback Steakhouse Case Study specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Outback Steakhouse Case Study specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Comments from Outback’s legendary C. F. O. Bob Merritt, will serve to punctuate the conclusion of this analysis; Outback’s strategies of product diversification and international expansion did not pay off for shareholders. Strategic Planning Methodology In evaluating Outback’s strategic plan this report adopts the fundamental assumption that management has as its primary objective the creation of shareholder value. Presumably, strategic decisions of management are designed to support this value proposition. A number of alternatives exist for companies to create value and Outback’s challenge was to weigh potential returns of alternatives against their inherent risks. Adrian J. Slywotzky and John Drzik of Mercer who document seven classes of strategic risk in their April 2005 article Strategic Risk Management published in the Harvard Business Review, set forth that in managing strategic risks there are an, â€Å"array of external events and trends that can devastate a companys growth trajectory and shareholder value. † It is evident that Sullivan, Outback’s chief executive, was aware of risk when he stated, â€Å"†¦the world is becoming one big market, and we want to be in place so we don’t miss that opportunity. † Management can react to risk through five generic responses as addressed in A framework for integrated risk management in international business, published in 1992 by Dr. Kent Miller in the Journal of International Business Studies . Miller’s five responses are identified as avoidance, control, cooperation, imitation, and flexibility. Sullivan and his management team’s plans reflected their primary concerns over two of the strategic risks identified by Slywotzky and Drzikclear; stagnation and competition. Stagnation is characterized as flat or declining sales volumes; in the case of Outback slower growth. The risk of competition is characterized by emerging competitive threats; in the case of Outback this strategic risk was represented by restaurant competitors in their markets. These were appropriate concerns and priorities given the facts of the Case. In responding to these threats, management’s reaction reflected four of Miller’s five categories of risk responses including control, imitation, cooperative responses and organizational flexibility . Sullivan and his team sought to control uncertain variables rather than passively treat the uncertainties as constraints by continuing to gain market power via growth in units. In addition they resorted to imitation of rival organizations strategies to cope with uncertainty by pursuing a â€Å"multipronged† strategy that both encompassed new restaurant concept development and international expansion; a strategy that had been adopted by other competitors including their former employer and competitor Brinker International. Outback also intended to utilize joint venture and franchise agreements as a cooperative response by creating partnerships that produce interdependence. Finally, as Miller points out, the Company adopted organizational flexibility by embracing, â€Å"the most widely cited example of flexibility in the strategy literature†¦product or geographic market diversification. † International expansion and new restaurant concept development certainly fulfilled this documented organizational flexibility response to risk. Absent from the Case and potentially excluded from Outback’s strategic considerations was the alternative response of expansion and diversification through a merger or acquisition. While the Company did acquire an Italian concept, Carrabbas Italian Grill, for development purposes, the business was very small at the time and as a result did not generate synergies or make significant near term contributions to revenue and profits. While Outback may have evaluated acquisition or merger alternatives, the Company did not integrate this strategic alterative into its plans. In fact, in June of 1999, Ruth’s Chris Steakhouse was available for sale . This company represented several hundred million in annual revenues with obvious synergies. However, despite in-depth discussions, Outback avoided making an offer to acquire the business and Ruth Chris was sold to the private equity firm of Madison Dearbourn Partners. Ironically, Ruth Chris went public in August of 2005, raising $235 Million that represented, â€Å"the richest IPO from a restaurant firm since Dominos Pizza (DPZ) kicked off in July, 2004 with proceeds of $337 million†, according to Thomson Financial. This was an opportunity the Company missed, and reflects an error in not considering acquisitions as a prong in its â€Å"multipronged† plan. In reviewing the Case, and researching the basis for Outback’s evaluation of strategic alternatives in 1995, management’s decisions appeared prudent at the time and reflected established theories in strategic thinking, planning and risk evaluation. Expanding internationally and diversifying through new restaurant concept development represented sound direction at the time. To further support the basis for the aforementioned strategic direction of the Company, one can look at the growth trajectory of the business. At the end of 1994, Outback had 214 locations in operation. Its annual sales growth from inception in 1988 until its fiscal 2004 year end averaged 53. 91%. Since 1992 the company had more than doubled revenues, growing from $189. 2 Million in 1992 to $415. 9 Million in 1994. As the Study notes, Chairman Sullivan described this growth, expressing that, â€Å"we can do 500 to 600 restaurants (domestically)†¦ over the next five years. † In the year 1995 had Outback maintained its averaged unit growth rate of 53. 91% over the prior three years the Company would have reached U. S. market penetration of 600 locations in a matter of a few years. In fact the Case notes, although somewhat more conservatively, â€Å"At the rate the Company was growing (70 units annually), Outback would near the market’s saturation within 4 to 5 years. † Therefore Sullivan had to explore alternative methods of growth to continue to create value. The business had, according to the Study, a â€Å"multipronged strategy† that included the expansion of its Italian chain â€Å"Carrabbas Italian Grill† and the development of new dining themes. Interestingly, by 1994 Brinker International, a key competitor of Outback, had already achieved a degree of international expansion and planned to continue its pursuit of this strategy. According to Brinker International’s 10K filing with the SEC dated September 27, 1994, â€Å"During the past two years, the Company entered into several international franchise agreements, which will bring Chilis to Australia, France, Puerto Rico, and the United Kingdom in the next 12 months. In fiscal 1994, the first Chilis restaurants outside North America opened in Singapore and Malaysia on February 4, 1994 and June 15, 1994, respectively. The third, fourth and fifth overseas Chilis locations opened in Egypt, Australia and Puerto Rico on July 19, 1994, August 28, 1994 and September 6, 1994, respectively. The Company intends to continue pursuing international expansion and is currently contemplating development in other countries. † In addition to Brinker’s international expansion, it also had amassed 458 locations that included six different restaurant concept brands. It is apparent that Brinker International had already pursued the plan that Outback ultimately adopted, further confirming Outback’s adoption of Miller’s imitation response to risk referenced previously. Restaurant competitors of Outback that served the casual, full-service dining segment generally had not expanded internationally like fast food restaurants. This is confirmed by the Case, which lists T. G. I. Friday’s and Applebee’s, the only direct competitors of Outback on the list, as having only 39 international locations as of 1994. The Case failed to include Brinker International in its data, but given the documented expansion, the number of casual dining chains engaged in international expansion was relatively limited in 1994 at the time Outback was considering its plans. Obviously an opportunity existed for international growth; but would this growth add value to shareholders? Recall that this report addresses the strategic decisions of the Company in the context of appreciation in shareholder value, which represents the ultimate measuring stick of performance. A June 2005 report in the Outlook Journal titled Getting a Truer Picture of Shareholder Value, concluded that, â€Å"there is a limited and diminishing correlation between those measures (net income and earnings per share) and share prices. A company’s income statement usually accounts for only about 4 percent of market value for a stock with a typical price/earnings ratio of 25, while the balance sheet covers about 25 percent. The remaining 70 percent of market value consists of intangible assets and expectations of future growth. † Pushing continued expansion to support or further promote publicly traded share prices is common. However, as Motley Fool’s Brian Green attests in a February 2000 article commenting on then popular P. F. Chang’s, a recent star in the domestic casual dining segment, stock, â€Å"Its at this point in the script when the customer lines are stretching out the door and the national expansion plan is gearing up that so many hot restaurant operators of yesteryear have screwed up everything. † In fact, the notion that international expansion is an intelligent strategic option for a business in the service sector, such as Outback, is questionable. While it is generally understood that a firm’s financial performance improves with a greater multinational presence, empirical studies have rejected this notion. Instead, becoming an international business has been shown to have, â€Å"Both a U-shaped relationship (which suggests an initially negative effect of international expansion on performance, before the positive returns of international expansion are realized) and an inverted-U-shaped relationship (which suggests that international expansion beyond an optimal level is again detrimental to performance, and results in a negative slope). Meaningful analysis of expansion in the international marketplace by restaurant companies and the related financial performance of such companies is not readily identifiable. However, the Case does address many issues that created great challenges for international expansion, including location, distribution, local appeal, and other factors. Undoubtedly, if a proven financial model exists for a restaurant brand domestically, this does not mean that the same formula is applicable in foreign markets. Regardless, over the past decade Outback has expanded to 123 units internationally and developed six new restaurant concepts including Carrabbas Italian Grill, Lee Roy Selmons, Cheeseburger in Paradise, Bonefish Grill, Paul Lee’s Chinese Kitchen, and Flemings Prime Steakhouse Wine Bar. The Company also has a joint venture development relationship with Roy Yamaguchi, the chef and creator of Roys Restaurants located in Hawaii, the U. S. , and Japan. These accomplishments are in line with the strategies management outlined over ten years ago. However, despite achieving their goals, the ultimate judge of the strategic plan should be defined by the financial performance of the Company and finally the enhancement of shareholder value. Outback Financial Performance – The Results As mentioned in the introduction, increasing shareholder value is a primary objective of management. The results of a businesses’ profitability, growth prospects and returns contribute to investors’ valuation and ultimately judge management performance over the long haul. Share prices of public companies are objective reflections of market value and serve to compare Outback’s performance during the past ten years to a number of its main competitors. It should be noted that each of the competitor companies included in the comparison are large chains, with significant revenues, market capitalization of several billion dollars, managing multiple concepts and having significant international operations. These restaurant chains are identified as the â€Å"four big players† , in the restaurant industry. For additional evaluative purposes, the broad S 500 index is also included. (THIS SPACE LEFT BLANK FOR FORMATING PURPOSES ONLY) Graphic of Competitive Stock Price Appreciation From 8/26/95 through 8/26/05 Graph 1 Outback Steakhouse = OSI, EAT = Brinker International, APPB= Applebee’s, DRI = Darden Foods sp500=S 500 Of the four companies depicted in Graph 1, Outback has generated the poorest appreciation in stock price during the past decade. Darden Foods experienced the greatest appreciation, rising nearly 400%, Brinker International appreciated nearly 250%, Applebee’s nearly 150%, and Outback, below the performance of the S 500, appreciated 100% over the past decade. These are disappointing results and would not reflect the optimism demonstrated in the Case performed on Outback regarding its plans in 1995. What is the cause of this poor performance in shareholder value appreciation? Regrettably, financial disclosure documents submitted by Outback and its competitors described in this report do not provide adequate evaluation and disclosure of international operations to ascertain the relative financial performance of its international business. While Outback has successfully opened 123 units internationally since its strategic decision a decade ago, the specific financial contributions from these ventures are indeterminable. However, the appreciation of the Company’s stock is irrefutable. An interesting development pertaining to the financial performance of Outback is the recent surprise retirement of its CFO, Bob Merritt. Highly regarded and referenced extensively in the Case, it would be interesting to learn of Merritt’s perspective. Perhaps these observations would provide clues as to Outback’s performance issues. Thankfully, in a June 2005 interview with Chain Leader Magazine written by David Farkas entitled, Parting Shots, Merritt is rather candid. The article first substantiates Merritt’s stature as described in the Case. â€Å"Bob’s legacy will be as the pre-eminent CFO in our industry over the past two decades,† says investor and former Brinker International CFO Jim Parish. SG Cowen’s Paul Westra, who has followed Outback since 1994, considers Merritt to be â€Å"the granddaddy† of CFOs. While Merritt cites frustrating changes in financial accounting standards as a motivation for his abrupt departure from the Company, his thoughts are not limited to this point and he provides some keen insights to what has gone on in the halls of his former employer. When asked about his perspective on the casual dining segment, Merritt opined, â€Å"It’s going through a fundamental change. You now have four big players†, these are the companies included in this report’s stock price comparison, â€Å"and they are all net generators of cash. He added, â€Å"It’s also the most competitive environment and the worst cost environment. † Merritt makes an interesting point that goes to the heart of the issue of growth in the industry when he says, â€Å"There is an inflection point in the development of any restaurant concept. The cost to build the incremental restaurant escalates faster than the ability to raise prices. The consumer doesn’t care that the cost to open a restaurant in 2005 is 50 percent higher than the cost of the one five miles away that was built in 1995. They are not going to pay proportionately more to eat in the new unit. As a result, returns go down. At some point the incremental return doesn’t justify the incremental investment. † Finally Merritt points out, â€Å"Will they (management) do what they have historically done and continue to mindlessly expand these concepts well past this inflection point and destroy capital, or will they change and become more concerned about generating real shareholder value and how to grow it? A number of companies in this industry are destroying capital by continuing to grow even though incremental returns don’t exceed their risk-adjusted capital cost. † Was Merritt referring to Outback’s expansion strategy, given its relatively dismal performance during the past decade? It certainly sounds like it based on the review of share price appreciation of his former employer, Outback Steakhouse. Conclusions Outback’s plans as described in the Case and reviewed in this analysis seemed quite prudent at the time. However, if the objective of management is to maximize shareholder value, given Mr. Merritt’s commentary, is this best accomplished by expansion that might not fundamentally provide adequate financial returns? Judging by the results and Mr. Merritt’s thoughts, Outback’s expansion plans have not been successful. Outback’s results as compared to its competition fail to reflect a business that achieved what it had hoped to. While adding many units, it is clear that the incremental benefit from its expansion did not enhance value in a manner that compares to its competitors. Perhaps the results of the strategy had more to do with poor execution.

George Armstrong Custer essays

George Armstrong Custer essays George Armstrong Custer was born in New Rumley, Harrison County, Ohio, on 5th December, 1839. His father, Emanuel Henry Custer (born December 10, 1806-died November 17,1892), was a blacksmith and Georges mother was Maria Ward Kirkpatrick Custer (born May 31, 1807-died January 13, 1882). He spent much of his childhood with a half-sister in Monroe, Michigan. The family was poor and when he was ten Custer was forced to live with his aunt in Monroe. While at school he met his future wife, Elizabeth Bacon, the daughter of a judge. Custer did odd jobs for her family, but was never allowed into the house. Custer wanted to become a lawyer but his family could not afford the training so he decided to become a soldier instead. Immediately after high school he enrolled in the United States Military Academy at West Point, New York. He attended the Military Academy in July 1, 1857 but he was a poor student and he utterly failed to distinguish himself in any positive way. When he finally graduated in June 24, 1861 and was placed 34th out of a class of 34 (called "The Immortals") as the 1966th academy graduate. He had not adjusted well to the rigid discipline and was almost expelled for too many demerits. Several days after graduating last in his class, he failed in his duty as officer of the guard to stop a fight between two cadets. He was court-martialed and saved from punishment only by the huge need for officers with the outbreak of the Civil War. Three days after his graduation from West Point, he was assigned to the Union army as a second lieutenant in the old 2nd Cavalry and arrived at the front during the First Battle of Bull Run. Custer fought in almost every important battle of the Army of the Potomac from Bull Run to Appomattox. Promoted to 1st Lieutenant, 5th Cavalry, to rank from July 17, 1862. While he made many enemies by his contempt for army regulations and sometimes reckless actions, he was also admired for his ...

How to Identify Types of Trees in North America

How to Identify Types of Trees in North America The easiest way to identify North American trees is by looking at their branches. Do you see leaves or needles? Does the foliage last all year or is it shed annually? These clues will help you identify just about any hardwood or softwood tree you see in North America.  Think you know your North American trees? Hardwood Trees Hardwoods are  also known as angiosperms, broadleaf, or deciduous trees. They are  abundant in the eastern forests of North America, though they can be found throughout the continent. Broadleaf trees, as the name suggests, bear leaves that vary in size, shape, and thickness. Most hardwoods shed their leaves annually; American holly and evergreen magnolias are two exceptions. Deciduous trees reproduce by bearing fruit that contains a seed or seeds. Common types of hardwood fruit include  acorns, nuts, berries, pomes (fleshy fruit like apples), drupes (stone fruit like peaches), samaras (winged pods), and capsules (flowers).  Some deciduous trees, such as oak or hickory, are very hard indeed. Others, like birch, are fairly soft.   Hardwoods have either simple or compound leaves. Simple leaves are just that: a single leaf attached to a stem. Compound leaves have multiple leaves attached to a single stem. Simple leaves can be further divided into lobed and unlobed. Unlobed leaves may have a smooth edge like a magnolia or a serrated edge like an elm. Lobed leaves have complex shapes that radiate either from a single point along the midrib  like maple or from multiple points like white oak. When it comes to the  most common North American trees, the red alder is number one. Also known as Alnus rubra, its Latin name, this deciduous tree can be identified by oval-shaped leaves with serrated edges and a defined tip, as well as rust-red bark. Mature red alders range from about 65 feet to 100 feet in height, and they are generally found in the western U.S. and Canada. Softwood Trees Softwoods  are  also known as  gymnosperms, conifers or evergreen trees. They are  abundant throughout  North America. Evergreens retain their needle- or scale-like foliage year-round; two exceptions are the bald cypress and tamarack. Softwood trees bear their fruit in the form of cones. Common needle-bearing conifers include spruce, pine, larch, and fir. If the tree has scale-like leaves, then it is probably a cedar or juniper, which are also coniferous trees. If the tree has bunches or clusters of needles, it is pine or larch. If its needles are arrayed neatly along a branch, its  fir or spruce. The trees cone can provide clues, too. Firs have upright cones that are often cylindrical. Spruce cones, by contrast, point downward. Junipers dont have cones; they have small clusters of blue-black berries. The most common softwood tree in North America is the  bald cypress. This tree is atypical  in that it drops its needles annually, hence the bald in its name. Also known as  Taxodium distichum, the bald cypress is found along the coastal wetlands and low-lying areas of the Southeast and Gulf Coast region. Mature bald cypress grows to a height of 100 to 120 feet. It has flat-bladed leaves about 1 cm in length that fans out along twigs. Its bark is gray-brown to red-brown and fibrous.

Sickle Cell Trait Research Paper Example | Topics and Well Written Essays - 750 words

Sickle Cell Trait - Research Paper Example Clark has been declared unfit for the game because of a blood disorder called sickle cell trait. Sickle cell trait is a sub-type of sickle cell anemia in which the person has one normal gene and the other abnormal sickle cell gene. Thus, although he does not manifest with the serious blood disorder symptoms but his previous medical history points out that he is at risk of developing serious organ complications. The coach Mike Tomlin explained that Clark had experienced spleen and gall bladder problems in the 2007 game and eventually had to end his game. He had suffered from a serious sickle cell crisis because of the hypoxic conditions caused by the demanding game. Thus they have decided in light of the data to limit him from the upcoming game (Moisse 2012). Dr. Jasmine Zain describing the condition stated that sickle cell trait individuals live a normal life and are sometimes not even aware of their hematological pathology. However, under circumstances of severe hypoxia like high-al titude or strenuous exercises, the hemoglobin forms crystals in the red blood cells and they lose their functional and structural capacity. This leads to sluggish blood flow and blockage of blood vessels. The final outcome is loss of function of organs, stroke, intense joint pain or even cardiac problems. For professional athletes oxygen demand is crucial during the exercise. On the other hand, people with full-blown sickle cell anemia, both the genes are abnormal and they do not have normal hemoglobin at all. This type is associated with serious symptoms and complications and is sometimes also fatal. With new advancements in therapeutic strategies, the life expectancy of sickle cell disease has increased up to 40, 50 and even 60. With these treatment methods, the concentrations of abnormal hemoglobin levels in the blood can be reduced to manage the blood disorder. The permanent cure for sickle cell disease is only bone marrow transplant from preferably a healthy sibling (Moisse 201 2). Clark has stated in the article that sitting back in the benches during the game is indeed discouraging and he hopes that things would get better so that he gets a chance to be a part of the team again (Moisse 2012). Sickle cell trait is a blood disorder which might be neglected or ignored because of its less obvious clinical presentation. But, sickle cell trait individuals have to take certain precautionary measures in order to avoid the associated complications as mentioned earlier. They have to avoid extreme exercise regimens or visiting high altitude areas as this would ultimately increase their blood’s oxygen demand. Although, they are safe from the major signs and symptoms which are associated with sickle cell disease, sickle cell trait individuals still have to face some restrictions and limitations in their everyday life. If we reflect in our everyday life and sickle cell trait implications, outdoor sports and exercise are significantly affected. Children, who are interested in sports which require strenuous physical activity like cricket, soccer, rugby, basketball, tennis and other such games, will have to restrict themselves because of their condition. Some children might show more severe symptoms in reaction to hypoxia as compared to others. However, every sickle cell trait individual is at risk of organ-failure complications and sickle cell crisis in response

Supply chain management Essay Example | Topics and Well Written Essays - 250 words - 1

Supply chain management - Essay Example Many companies have suffered huge losses and some of them have stopped the production for quite sometime. The disaster has caused a rise of imports and a decline in exports of the country, owing to many factors such as physical damage and loss of capital. This in turn has a great affect on the global supply chain management because until Japan completely recovers from this havoc and gets back to the production on a normal basis, all the firms globally that have depended on Japan for their supplies would have to search for other sources which may result in the compromise of quality. This would show the worst affects on firms that have adapted â€Å"Just in Time† strategy for inventory management as they plan to keep just enough sources with no excess inventory. â€Å"The coming days and weeks are going to be intense for supply management professionals†. ( â€Å"The Impact of the Japanese Tsunami on the Supply Chain† ). For my organization, I would make sure I main tain enough inventory and not completely rely on JIT strategy. I would make sure that my supplies come from different manufacturers (at least two) so that when one fails, the other can be of help. I would prepare my strategies for any unexpected disasters that can curb my production potential.

Reflection on the History & Systems of Psychology Essay Example for Free

Reflection on the History Systems of Psychology Essay Pre-modern, modern and postmodern frames of reference have all helped shape important, contemporary psychological theories and issues. In this paper I will attempt, in a reflective manner, to walk through and revisit the areas we covered in course, the end aim being to gain a measure of insight into where the field of psychology stands today, particularly with regard to oppressive forms of ethnocentric monoculturalism. In terms of pre-modern perspectives, in the course we first discussed historical issues concerning the mind-body problem. I stated the nature of the relationship between body and mind and whether they are one and the same or two distinct substances, which is the center of the debate between monists and dualist. Descartes, the most well known dualist, argued for a separation of mind from soul and body. Also an interactionist, Descartes held the mind influenced the body as much as the body impacted the mind (Goodwin, 2009). Plato, his predecessor from antiquity, was also a dualist and an interactionist arguably, and believed the body and soul/mind were temporarily at one during life; each came from a completely different place, the body from the material world and the soul from the world of ideas. At the moment of death, the body withered away in time and space, the soul or mind returning to the world of forms and there realizing universal truths (Wozniak, 1992). Delving deeper into pre-modern views of the mind-body problem I touched upon Spinoza. Spinoza, a contemporary of Descartes, dismissed Descartes two-substance view in favor of what is called double-aspect theory (Wozniak, 1992). Double-aspect theories hold the view that the mental and the physical realms are varying aspects of the same substance. For Spinoza, that single substance is God, perceived as the universal essence or nature of everything in existence. In Spinoza’s view, there is no partition of mind and body, therefore. Instead they are of a single substance, in a pre-established coordination, reflecting the divine essence. In reflection, I continue to side with Spinoza and double-aspect theory in terms of pre-modern perspectives. I do believe that there is a pre-established coordination between mind and body that is reflective of the divine creation. I am therefore I think is my continued response to Descartes. In terms of modern perspectives in the course we examined the origins of psychology as a subject discipline. During the course I stated that psychology first appeared as a subject discipline in 1879 when Wilhelm Wundt started a psychology lab in Germany at the University of Leipzig. The laboratory devoted itself to the analysis of conscious thought in its basic elements and structures, which was uncovered through a process of introspection (Gross, 1996). What differentiated this ‘new psychology’ at the time from philosophy was its use of measurement and control as well as its emphasis on the scientific method to study mental processes relevant to human consciousness. Due to his influence on Edward B. Titchener, Wundt’s frame of reference arguably helped give birth to structuralism. Indeed Wundt’s disciple, Titchener, is credited with developing and labeling structuralism in an 1898 paper called â€Å"The Postulates of a Structural Psychology (Goodwin, 2009). In the paper he compared and contrasted structuralism with functionalism, which he claimed infested most US universities, save Cornell where he was cultivating what would come to be  called the â€Å"the Cornell school of psychology.† Notwithstanding, Goodwin (2009) has stated that Titchener and the Cornell view of psychology was extremely narrow largely because of its insistence on introspection and due to Titchener’s attitude that his way was the only way, a position that often does not bode well in academia. In this vein and perhaps arrogantly so, Titchener, likened structuralism to anatomy, its purpose being analysis he surmised whereas functionalism he likened to physiology, stating that functionalists examine how the mind is able to adapt one to his or her said environment, wh ich to Titchener was a waste of time without a deep understanding of structure. As one needs to know the ins and outs of human anatomy before being able to fully delve into physiology, so thus was the  functionalist at a loss, in his view, without the ability to outline the structures of human consciousness via a highly difficult process of systematic, experimental introspection as stipulated by him in almost cult like exclusivity, which spawned criticism. Accordingly, his movement never gained the momentum it needed to win American hearts and minds, falling into the dustbin of history in favor of functionalism. Nevertheless, in spite of Titchener’s unpopularity in the US, his enduring contribution is that he helped create a place for the lab and experimental psychology in all colleges and universities with programs in psychology. While functionalists were also interested in looking at mental processes such as consciousness in so far as assessing human behavior in terms of how it aided people in adapting to ever-changing environments, they did not, unlike followers of Titchener, emphasize introspection (Goodwin, 2009). Psychologist James R. Angell, a follower of John Dewey, the founder of functionalism in America, became its most outspoken spokesperson, criticizing Titchener and drawing a sharp contrast to him in a 1907 popular paper called â€Å"The Province of Functional Psychology.† It was a damning response to Titchener’s 1898 paper. For Angell, the structuralist was  interested in the â€Å"what?† of conscious thought, whereas the functionalist psychologist wished to know the â€Å"how?† and â€Å"why?† of it, asking what is consciousness for? (Goodwin, 2009). This way of viewing psychology in terms of its practical applications, became an important influence in modern times, because it led to the study of topics such as developmental and abnormal psychology, in addition to examining the individual differences of mind, (which Titchener and the Cornell school remarkably had no interest in). When asking how psychology can be used to solve everyday problems in a practical way, we are taking from the functionalists and their movement. Perhaps the most prominent movement in the field of modern 20th century psychology was behaviorism. Behaviorism began essentially due to the work of Ivan Pavlov. Pavlov who did not consider himself a psychologist, but, rather a physiologist interested in the process of digestion in dogs, was awarded the Nobel Prize in 1904 (the year B. F. Skinner was born) in Physiology and Medicine. In the course of his research, Pavlov observed that the dogs would often start salivating before any food being given to them, when they would see the food or the food’s container, or when they heard the footsteps of the lab assistant who was on his way to feed them. His observations led to the study to what we now call classical conditioning (Gross, 1996). The first attempt to apply Pavlov’s findings on conditioning to humans was made by John B. Watson in a dubious and arguably unethical experiment on a small boy named Albert, showing that the fear of rats can be deliberately induced (Watson and Rayer, 1920). The experiment served to popularize a new behavioral approach to psychology that would within a decade become the dominant force in America, Watson its founder, propagator and publicist (Goodwin, 2008). To the modernist Watson (1913), psychology is an objective natural science,  its theoretical goal the prediction and control of behavior. Wundt and Titchener’s view on introspection has no place in its methods, nor is consciousness addressed or studied. There is no marked borderline between people and animals. Due to Watson’s input and influence cats, dogs, rats, and pigeons became the major source of psychological data. As ‘psychological’ now meant ‘behavior’ rather than ‘consciousness,’ animals that were easier to study and whose environments could be more readily controlled could replace people as experimental subjects (Gross, 1966). B. F. Skinner, also a behaviorist and modernist, went steps further than Pavlov and Watson, casting behavior in a more interactive light. He made a distinction between respondent and operant behavior and argued that most animal and human behavior is not brought about in the way Pavlov and Watson indicated and surmised. Skinner, like Edward Thorndike before him, was interested in how animals operate on their environment and how this operant behavior brings about particular consequences that can determine the likelihood of that behavior being repeated. In experiments he used a variation of Thordike’s puzzle-box, a Skinner box, which was made for a rat or a pigeon to do things in, rather than escape from. Fundamentally, Skinner saw the learner as much more actively involved than did Pavlov or Watson, for whom behavior was due to stimuli, unconditioned stimuli before learning and conditioned stimuli after learning. In addition to behaviorism, modern views of psychology took twists and turns. As a reaction to both Titchener’s structuralism and Watson’s behaviorism, the Gestalt psychologists of the 1920s and 1930s in Germany and Austria were primarily concerned with perception and held that perceptions could not be deconstructed in the way that Wundt and Titchener wanted to do with thought, and that behaviorists had sought for with behavior. Their belief could be  succinctly stated as follows: ‘the whole is greater than the sum of its parts’ (Gross, 1996, p.3). The whole is essentially destroyed when you break down perception and behavior into parts, the Gestalt psychologists held. There are organizing principles of perceptual organization which were voiced by Gestalt’s founder Max Wertheimer. These principles are frequently highlighted in units on perception in general psychology textbooks and are as follows: the principle of proximity, the principle of similarity, the principle of continuation. All of the organizing principles have in common what is called the law of simplicity or what Gestaltists term Prà ¤gnanz. This refers to the tendency for perceptions to mirror reality as closely as possible (Goodwin, 2009). In the course I gave an example of gestalt thinking, which in reflection I would like to return to as it clearly remains in mind. I used the example of a bus stopping at a bus stop in one’s neighborhood. On a given day the bus stops at the same corner the person is accustomed to, and is recognized to be that bus. The person gets on, but has made a mistake. She did not realize that there was a route change that morning and the bus she took was numbered differently. What gives? Is it only a matter of not paying attention? In Gestalt inspired, top-down conceptually driven processing, we begin with one’s prior knowledge, motivations, expectations and beliefs. In the bus example, the inability to see and decipher or register a different number on the bus and get on it, means it was recognized it to be the customary bus due to top-down processing (Danner, 2009). If one were to notice the different bus number, however, that would entail bottom-up processing, because such processing is data driven. The different number is perceived in terms of information in the sensory input, in conjunction with top-down processing, revealing to the person that it is not the customary bus. Perhaps after realizing her mistake, the person in  the example will be more careful next time, thereby exercising more bottom-up processing. If Austria was home to some of Gestalt’s most prominent members and adherents, it was also home to Sigmund Freud, the father of psychoanalysis. Freudian psychoanalytic theory was the first to state the significance of innate drives and define abnormal and normal behavior in relationship to the role of the unconscious mind. Its importance is that the theory of personality popularized contextualizing human behavior in terms of the id, ego, and superego, notating development in five psychosexual stages. Each stage was marked by shifts in what Freud believed were the underlying modes of gratification: oral, anal, phallic, latency and genital (Glassman, 2000). In reflection, I continue to find merit in Freuds concept of stages for sure. I would still prefer to call them development stages, however, and not necessarily put a sexual meaning on them, as Freud and his supporters have done and continue to do. There is no need to detail the well-known limitations and criticisms of Freudian theory, which according to Glassman (2000) are its falsifiability, the great deal of emphasis put on case studies, and its cultural bias towards women. Regardless of such naysaying, his supporters would passionately argue for and be adamant about such a sexual narrative of the human person, which if not fodder, certainly has entertainment value. In fact, Freudian theory is fascinating to me largely due to the dramatic (almost cinematic) conflicts and challenges that mark each psychosexual stage. Perhaps the most well-known of these is the Oedipal conflict (which occurs in the so-called phallic stage). It was interesting to read that some analysts called the fe male variant, the Electra conflict, but Freud himself did not use the term (see Freud 1924). Perhaps the most attractive modern theory of personality, in my view, would belong to Carl Rogers. In Carl Roger’s theory, a person is the source of his  or her basic needs such as food and water. He or she is also the source of a growth motive which he called an actualizing tendency, which is an innate drive that is reflective of the desire to grow, to develop and to develop one’s capabilities (Glassman, 2000). It is the actualizing tendency that stimulates creativity, causing a person to seek out new challenges and skills that motivate healthy growth in one’s lifetime (Gross, 1996). According to Rogers (1961, but originally proposed in 1947): Whether one calls it a growth tendency, a drive towards self-actualization, or a forward moving direction tendency, it is the mainspring in life†¦ It is the urge which is evident in all organic and human life – to expand, extend, become autonomous, mature and develop. In reflection, I continue to feel that Roger’s influence and continuing popularity in the psychotherapeutic community give his theories merit. APA members have been asked which psychotherapist they believe to me the most influential figure in the field (Smith, 1982). In 2006, this survey repeated in the Psychotherapy Networker. In both surveys, Carl Rogers was the â€Å"landslide† choice. While this does not prove Rogers to be correct, certainly it gives his theory of motivation more credence than not, increasing its believability. Certainly, I feel influenced by Rogers as I move forward in my career. While Rogers theory of an actualizing tendency and the overall nature of the client-centered approach may be controversial due to its allowance to let the client call the shots and as stated by Goodwin (2009) for its overemphasis on the the self at the expense of the importance of the community, in addition to being clearer what it was against than what it was for, it is nevertheless, a credible postulation in terms of its application in therapy and remains my preference over Freud. Accordingly, I continue to feel that all clients  innately wish to be successful in life and to be praised as contributors to their own selfactualization. They wish to expand their knowledge and achieve  higher levels of success beneath all the guises that seem otherwise. When clients are not performing to their fullest potential, praise and support can help ignite the actualizing tendency in a manner that would otherwise have remained dormant. When exploring postmodern views of psychology we have to inherently speak about cultural narratives and meta-narratives. What is psychology today and who defines it? What is psychology’s story, who told that story historically, and who gets to tell it today? When we look at psychology as a practice, historically and today, is important to bring to the fore the ethnocentric monocultural aspects that were oppressive to women and continue to be to minority groups in reinforcing white male Euro-American culture as the normative and desirable culture. Indeed, therapists and helping professionals should try to help deconstruct and unveil monoculturalism whenever it rears its despicable head. When oppressive forms such as heterosexism, ageism, gender and sexism come to the fore in therapy, for example, therapists should not reinforce them but try to encourage reflection on such prejudices with the aim being for the client to indentify for what it is – and to grow accordingly. The field of psychology itself is not immune but remains at risk to the debacle of monoculturalism. According to Yutrzenka, Todd-Bazemore and Caraway (1999) even though the data forecast that by 2050, ethnic minorities will make up over 50% of the US population, this quickly changing demographic has minimal effect on the number of ethnic minority psychologists. This is particularly true for Native Americans, who are far more underrepresented than any other ethnic body. Though the APA as stated by Goodwin (2009), is vigorously addressing this entire issue at present, with such efforts to be praised, still the legacy of ethnocentric monoculturalism is a stain on the profession, and will remain so until  significant numbers of minority psychologists abound. In spite of the barriers confronting them, women and minorities have made many notable, valuable and vital contributions to the field of psychology. During the course I discussed Eleanor Gibson who received the National Medal of Science in 1992 for a lifetime of research on topics dealing with the development of depth perception to the fundamentals involved in reading, faced discrimination while at Yale from psychologist Robert Yerkes who wanted no females in his lab (Goodwin, 2009). While she was able to get her PhD there under the guidance of the neobehaviorist Clark Hull, she unfortunately went on to experience difficulties at Cornell (where her husband had gained a position) forced into an unpaid research associate position in spite of winning competitive and prestigious research grants. As a result of these grants, however, she was able to carry out pioneering studies on depth perception with Richard Walk. When Cornell, home to Titchener’s legacy, removed its nepotism rules in 1966, only then did she become a full professor. Furthermore, as discussed in the course, African-Americans have also made outstanding contributions to psychology. Kenneth and Mamie Phipps Clark again come to mind in terms of their best known research titled Racial identification and preference in Negro children (Goodwin, 2009). In this research it was shown that black children showed a preference for white dolls over black ones when asked which they would like to play with and looked more like. The Clarks concluded, according to Goodwin (2009) that one insidious effect of racial segregation was its negative influence on African-American self-esteem. As a result of this research, in part, the Supreme Court was compelled to do the right thing and reverse the racist separate but equal doctrine in Brown v. Board of Education. The Clarks’ contribution to psychology and the contributions of other AfricanAmericans preceding them were not without struggle. Their mentor at Howard University, Francis Sumner faced huge obstacles when attempting to get a graduate degree and gain employment in academia. African-Americans have often had their basic intellectual abilities questioned (Goodwin, 2009). The legacy of white racism and of the field of psychology’s complicity by not taking a firmer stand until only recently is without question a significant reason why African-Americans remain heavily underrepresented in the profession, in spite of the gains made for women. 60 percent of doctorates in psychology are awarded to women today, while Native Americans as we discussed and African-Americans continue to be awarded a paltry percentage in turn. Such dismal figures have nothing to do with intelligence. We know that early intelligence tests were normed on just Caucasian, middle-class populations and only recently has such bias been addressed and perhaps abated. This also was the case for the MMPI personality tests as well. In the case of the MMPI, many of the original items became dated and according to Kassin (2008), to bring the test up to the 21st century and more postmodern views, new items were written in, and a more diverse cross-section of the US was sampled. The result of that updating is the newer 567-item version called the MMPI-2. In reflection, my guess is that similar advances have been made or are being considered in IQ testing as well; otherwise we would have to call into question whether biased IQ tests are valid for minority groups. Accordingly, great care should be taken when formulating test questions as well as interpreting the results of test-takers from different cultural groups and urban tribes. Fundamentally, it is crucial that test makers be made aware of cultural differences when putting together IQ test questions, as recommended for the MMPI (Church 2001). Exercising caution does not mean  minority groups are treated with kid gloves, but rather that a lens of understanding is in place and that can come about as a result of the test makers and assessors informing themselves. Otherwise an IQ tests validity for minority groups is at issue. Pre-modern, modern and postmodern frames of reference have all helped shape important, contemporary psychological theories and issues. Accordingly, I have attempted in a reflective manner to revisit the areas of psychology’s history we covered in course. If psychology as a profession is to continue to grow and develop, it will occur through a similar process of reflection, followed by action. It is important for psychology to know its origins, its history and respective story. However, in realization of the depth of ethnocentric monoculturalism, its leadership, particularly in the APA, must act on the call to bring about the inclusion of more minorities. Otherwise, the oppressive stain of monoculturalism shall abound and continue to blemish the profession we hold dear. References Angell, J.R. (1904). Psychology. New York: Holt. Church, A.T. (2001). Personality measurement in cross-cultural perspective. Journal of Personality, 69, 979-1006. Danner, N. (2011). Psychology: ORG5001 survey of psychology I. Boston: Pearson Learning Solutions. Freud, S. (1924) A General Introduction to Psychoanalysis. New York: Washington Square Press (reprinted 1952). Glassman, W (Ed.). (2000) Approaches to psychology. Philadelphia: Open University Press. Goodwin, C.J. (2009) A history of modern psychology (3rd ed.). Hoboken, NJ: Wiley. Gross, R. (Ed.). (1996) Psychology, the study of mind and behavior. London: Hodder Stoughton. Kassin, S., (2008). Psychology in Modules: ORG 5002 Survey of psychology II. New York: Pearson Custom Publishing. Rogers, C.R. (1961) On becoming a person. Boston: Houghton Mifflin. Smith, D. (1982) Trends in counseling and psychology. American Psychologist, 37, 802–809. Watson, J.B. (1913) Psychology as the behaviorist views it. Psychological Review, 20, 15877. Watson, J.B. Rayneer, R. (1920) Conditioned emotional reactions. Journal of Experimental Psychology, 3, 1-14. Wozniak,R. (1992) Mind and body: Renà © Descartes to William James. Retrieved from http://www.qcc.cuny.edu/socialsciences/ppecorino/INTRO_TEXT/Chapter%206%20MindBody/DUALISM.htm. Yutrzenka, B.A., Todd-Bazemore, E., Caraway, S.J. (1999). Four winds: The evolution of culturally inclusive clinical psychology training for Native Americans. International Review of Psychiatry, 11, 129- 135. ProQuest: 43479524.

Business Proposal for a Retail Shop Selling Sports Clothing and Equipme

Business Proposal for a Retail Shop Selling Sports Clothing and Equipment - Introduction - In this coursework I have chosen to plan a proposal for a new business. The type of business I have chosen is a retail shop selling sports clothing and equipment. The shop will be called "Sporting Glory" and will be situated in the High Street of Sutton in Surrey. The aim of the business is to provide quality sports clothing and equipment to it's customers at affordable prices. Through this coursework I will decide how the business will be set up, what stock the business will have to sell (i.e. How much and over what range), how the business will advertise itself, how the business will overcome it's competition (if possible at all) and how the business' cash will be managed (who invests into the business, how much staff get paid etc.). The location of the business will also be decided as Sutton High Street has the capacity of many shops and a shopping mall/centre therefore it has to be decided exactly where the business will ...