Assignment 2 Operations Decision
ECO 555 Managerial Economics
Strayer University
August, 2014
Despite outstanding technological advancements in the industry, the quality of manufactured food products has become a major concern of the time when seen from the health and wellness perspective. In the 21st century higher income, urbanization, other demographic shifts, improved transportation, and consumer perceptions regarding quality and safety are changing the global food consumption patterns. Even though the consumption of such food products is ever increasing due to the rising population growth in the world, thanks to the advancement of information technology people has now become more and more concerned about their
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Moreover investigations on employment as well as inflation trends must be considered as well. Having a price strategy which is customer friendly is also another big matter which must be looked at. (Perloff, 2004)
2.The most vital factors which caused change in market structure are the changes in customer tastes and customer income. These two factors are solely related with the demand and needs. When the customers start earning more, they will have a tendency to purchase more and expensive products. Their buying ability is increased in such a situation. On the other hand, when the income of the customers is not that high, they will not have that much interest on purchasing the expensive products or purchasing products in large amounts. That means the size of sales revenue for a particular company is totally dependent on the customers purchasing abilities. The other factor, the customer taste, is something that should be considered as well. If the customers like a particular product, they are more likely to purchase that particular product even if that product is a bit expensive. On the other hand they will not be interested to purchase something which they don’t like even if that product is quite cheap. The first factor can’t be controlled by the company. The second one can slightly be controlled. The company should design the products and make its pricing strategy by considering these two factors if they want to make a customer
“The primary concern is that a world of over six billion people striving materialistic satisfaction is drawing ever more heavily from finite supplies of natural resources to fuel an economic growth model destined to lead to an ecological disaster and global poverty without precedence” (Harder and Harder 1). As Harder and Harder explain, we must find an economic way of life that is economically stable. There are many different perspectives that view economic growth in different aspects. Advocates of economic growth have a very optimistic viewpoint about the future of economic growth. “Their operational logic reflects their sense of duty to develop latent resources into their actualized state for the benefit of a global
Given the rapid growth of the American population, food resources have increasingly become scarce prompting the country to import to meet the market needs of its citizens. For this reason, United States travels far and wide in search of agricultural products for its domestic market. The distance covered by most of the imported products demonstrates the different worlds existing between the producers and the ultimate consumers. It has become increasingly difficult to know how the foodstuffs were produced, processed and transported to our doorsteps (Ke, 2011). If any of the preparation stages are not undertaken as required, or do not meet the quality standards, it is difficult to know and this remains a mystery.
Economic growth, put simply, is “an increase in the amount of goods and services produced per head of the population over a period of time”; development is inextricably linked with this economic growth. By utilising theories of economic growth and development we can see how the Chinese and Sub-Saharan African economies have emerged, but, more notably, we can use these to look at patterns from past and present to show their experience and the implications of this growth for the future.
c. Theory of economic growth: who present it? What are the main assumptions, strength, and weaknesses?
The food industry proves to be more challenging than the other conventional industries because of its tricky supply chain, right from getting vegetables/fruits from the farmers to the factory, add value to them (cooking, processing and packaging) and delivering it to the customers fresh with some products having at least 2-3 days shelf life to spare. Even with use of preservatives that are commonly used this proves to be immensely challenging due to several factors revolving around this supply chain- wastage of food during processing, slow labor production which in turn reduces the shelf life on the consumer end, food
Leatherhad Food International (June 2004). Emerging Concepts in the Global Food & Drink Industry. Retrieved on March 21, 2005 from: http://www.lfra.co.uk/lfi/pdf/press820.pdf
“A comparative analysis of the key differences between the linear stages- of- growth development theory and the neoclassical development theory”
“The big issue is food processing – or, to be more precise, the nature, extent, and purpose of processing, and what happens to food and us as a result of processing” (Nestle1). All food and drinks are processed to some extent and are categorized in a basic three types depending on their nature, extent, and purpose according to Carlos Monterio, a professor at the University of Sao Paulo. The first type is unprocessed or very slightly processed foods that do not change the nutritional values of the food. The second type is processed culinary ingredients like sweeteners and sugars, and oils; these hold little calories and no nutrition. The third type is the ultra-processed foods; this includes a combination of type one and two. “The purpose of type three ultra-processing is to create: durable, accessible, convenient, attractive, ready-to-eat or ready-to-heat products. Such ultra-processed products are formulated to reduce microbial deterioration (‘long shelf life’), to be transportable for long distances, to be extremely palatable (‘high organoleptic quality’) and
Most Americans spend a large amount of money in processed foods, however, they do not think about the additives that are loaded in them. When foods are processed, not only are valuable nutrients lost and fibers removed, but the textures, natural variations, and flavors are also lost. Above all, what is left behind is a bland flavor which most people would not want to eat (Dr. Joseph Mercola 5). It is clear that no one desires to eat something unappealing. The food manufacturers priority is to make produce high quality taste, however they do not take into consideration what goes into their products as long as they make profit
Parallel to the rise of processed foods, “the interest of a minority group of critical consumers… has been rapidly growing,” and leading various food movements (Vega & Ubbink, 2008). As a result of the negative consequences of the industrial food system, consumers are starting to push back in favor of healthier foods. Economically, companies must also change how they produce food to keep up. Recent food “evolution[s] encompasse[d] both the use of ingredients and devices found within the context of mass food production” (Vega & Ubbink, 2008). As a result, MG was hailed as a “turning point in the history of cooking… that has been widely misunderstood” (Vega & Ubbink, 2008).
Without dismissing earlier attempts, the foundations upon which modern economic growth theory rests on the foundations put by US
The survey will be created by college students majoring in Food Science, to gain experience in quality control. The students will also conduct the surveys and analyze the data. These volunteer college students will be from various regions, races, and economic backgrounds. This will give different perspectives on the product. This information gathered will be introduced to focus groups as our second research method. The focus group will consist of teams from marketing, production, and quality assurance To make the data visually easier to decipher, the presentation of data will be in various graph forms. We will use bar graphs to present the overall numbers for each category, but we will use pie graphs to present the percentages of the data.
This section focuses on the consumers’ perspective and the industry standards regarding food quality. It addresses the requirement for food quality methods, the definitions of food quality and its characteristics and discusses the limitations within the methods used and the challenges that are faced in the food industry.
A food protection plan is essential in todays fast pace world, where globalization and international trade and improved means of transport has served to distribute food around the globe, even to remote regions in the shortest possible time. The significance of this trend is that food prepared by a few can pose a threat to many people, if it is not prepared under proper sanitary conditions and hygienic practices. It is imperative that food manufacturers, processors, distributors, and all food related stakeholders develop a food protection plan to safe guard themselves from lawsuits and to be able to show that their food products are safe for human consumption. It is the duty of the state to develop their own food safety plans and work together with all food related stakeholders to ensure compliance. Key words: food protection plan, food safety, health and safety.
Nowadays there are serious problems exist in the Food Marketing Environment. Food industries only aim on their own profits, but not care about people’s healthy condition. We can see diabetes and heart disease occurs more frequently on teenagers because diets of high in junk food and beverage.