Does Nail Polish Stop Chigger Bites from Itching

If youve ever experienced the torture that is chigger bite itch, youve probably tried anything and everything to make it stop. Desperate times call for desperate Google searches, which may have led you to try putting nail polish on the bite to banish the awful itch. This folklore remedy has been around for ages but is nail polish really an effective treatment for chigger bites? The short answer is no. The science behind chigger bites explains why. What Are Chiggers? Chiggers, also known as harvest bugs or red bugs, are the tiny, red, six-legged larvae of chigger mites in the Trombicula genus. Theyre found in tall grassy areas around the world, and their bites plague people, pets, and other assorted animals in the spring, summer, and fall seasons when were outside in backyards or rural areas. Like ticks, chiggers are opportunistic parasites that grab onto any host that happens to wander by. Unlike ticks, chiggers dont embed themselves in the skin. Instead, they target areas where clothing is tight and then grab hold of a hair follicle or skin pore. Chiggers arent adept at penetrating the skin, so they tend to prefer areas of the body where the skin is soft and supple, which explains why youre most likely to find chigger bites on your ankles, behind your knees, along your waistline, or in your armpits. Chigger Bite Chemistry Once the chigger has secured itself to a hair follicle, it pierces the skin and releases saliva which is loaded with digestive enzymes. These enzymes effectively liquefy skin tissue, making it easier for the chigger to feed. A healthy human immune system will quickly detect the invasion and take defensive measures, forming a red raised bump, called a papule, at the site of each chigger bite. Chiggers use the wall of this round welt (called a stylostome) like a drinking straw, slurping up a smoothie of skin cells. To get a good meal, chiggers need to feed for three to four days. They make out much better on hosts with fur which allows them to get a good grip and feed at a leisurely pace. Chiggers rarely have the chance to hang around very long on a human host. The slightest touch can dislodge them so if they havent been brushed away when you remove your clothing, theyll likely get washed down the drain the next time you shower. Why Nail Polish Wont Take the Itch out of Chigger Bites A bit of basic chigger biology explains why remedies like nail polish or Vaseline wont work to alleviate the misery of chigger bites. Theres a misconception that bright red spot in the center of the bite is the chigger itself. Its not. Thats the stylostome which only starts itching like mad four to six hours after the chigger bites. Although applying nail polish or Vaseline might temporarily soothe itching, you arent suffocating anything by coating the bite, nor are you killing anything by applying alcohol or any other chemical substance. The red, raised bump youre scratching is nothing more than your own skin trying to heal itself. While chigger bites can itch for up to 10 days as your body battles the foreign substances injected by the chigger, the varmints themselves are long gone. Avoid Infection Although bites from Trombicula chiggers are annoying and painful, fortunately, they arent associated with the transmission of disease. The primary danger posed by chigger bites is the potential for infection—especially if you keep scratching them. The best treatment for a chigger bite is the same treatment youd use for any small cut or rash. Keep the bite region clean. Wash the area with soap and warm water, and try not to scratch the bumps. Applying antiseptic to any welts, followed by an over-the-counter anti-itch product or antihistamine creams, hydrocortisone, or calamine lotion can aid in the healing process. Home Remedies for Itching A wide variety of home remedies can be applied to the welts to help alleviate itching: A saline solution mixed with aloe vera can take away some of the itch. Mix up a batch, put it in a spray bottle, and use as needed.Applying a paste of baking soda and water has been known to keep itching at bay.Combine mentholated rub and salt to form a paste and apply it during a pre-bedtime shower. It might sting on application but stopping the itch overnight should balance out any minor discomfort. Of course, you may find that the chiggers have bitten certain tender areas where topical treatments are not appropriate. If youve been bitten below the belt, cold compresses and oral antihistamines are your best bet for itch relief. Prevention Topical repellents such as permethrin (sold under the brand name Nix) and dimethyl phthalate have been proven an effective defense against bites but the best way to avoid chigger bite itch is to avoid chigger bites in the first place. If you think your yard may be infested, take steps to get rid of chiggers. If possible, avoid chigger habitats such as scrub vegetation and tall grass in rural areas. If you have to be where chiggers are likely to dwell, dress appropriately. Long pants and long-sleeved shirts are best to fend off a variety of biting insects. When you get back from being outdoors, take a long soapy shower and launder your clothing. Sources Banks, S. D., et al. Insecticide-Treated Clothes for the Control of Vector-Borne Diseases: A Review on Effectiveness and Safety. Medical and Veterinary Entomology 28.S1 (2014): 14-25. Print.Juckett, Gregory. Arthropod Bites. American Family Physician 88.12 (2013): 841-7. Print.Kitchen, Lynn W., Kendra L. Lawrence, and Russell E. Coleman. The Role of the United States Military in the Development of Vector Control Products, Including Insect Repellents, Insecticides, and Bed Nets. Journal of Vector Ecology 34.1 (2009): 50-61. Print.Pest Myths, College of Agriculture, Forestry and Life Sciences, Clemson University, accessed March 9, 2018Itchy Chiggers, University of Nebraska-Lincoln Extension, accessed March 9, 2018Chiggers - an itchy issue, University of Illinois Extension, accessed March 9, 2018As chiggers get thicker its no time to snicker, entomologist says, Purdue University, accessed March 9, 2018Chigger Myths Hurt More than Help, Kansas State University, accessed October 17, 2012C higgers, Entomology Department, Iowa State University, accessed March 9, 2018

1984 versusThe Giver - 806 Words

1984 by George Orwell and The giver by Lois Lowry have a similar themes that either the books itself shows or the characters show them. The main character, in this case Jonas and Winston, find themselves in a â€Å"perfect world† until they hit a stopping point and turn back to see reality. They see that information and knowledge has been kept from the people of the community, and how it affects the community. It keeps them from progressing altogether as a society. The freedom of expression has been taken way as well. The government or form of leadership is completely in charge and control the lives of the citizens. Human nature has been altered by the control of society, and the citizens end up being controlled by a power over them, and believe it is all for the greater good. That is something that the government themselves have lead on so the people believe and trust in them. The society in which Winston and Jonas live in have it made it almost impossible to express onese lf (Brown 1). It has made decision making turn into something that is a privilege that only authorities hold, and people themselves are not capable of anymore. â€Å"In the end we shall make thoughtcrime literally impossible, because there will be no words in which to express it† (Orwell 52). Their actions and words are monitored closely, keeping them where the government wants them. It seems that their stableness keeps anyone, including the government, from ever changing for the better. It keeps them in a

Do Teenagers Need a Part Time Job Free Essays

Do you believe that teenagers should have a part-time job before they graduate from high school? The purpose of this essay is the explain the reasons why teenagers should have a part-time job before they graduate from high school. First of all, this would allow teenagers to be prepared for the real world. Often some teenagers will go out on their own unprepared and dependent on family or friends for money. We will write a custom essay sample on Do Teenagers Need a Part Time Job or any similar topic only for you Order Now Secondly, this could help teenagers become more responsible. Furthermore, having a part-time job would allow teenagers to have spending money. By having a part-time job this allows teenagers to be prepared for the real world. Teenagers can expand their knowledge skills and gain experience for future full-time jobs. Often teenagers may not be aware of the knowledge needed in their employment. Having the experience from part-time jobs would allow them to be more prepared. Teenagers would also learn financial skills for when they go away from home to college or university. Another thing is that by having a part-time job while still in high school that teaches teenagers responsibility by saving their earnings. Responsibility is key to being successful and by having a part-time job, teenagers improve in their accountability. Due to the fact that some students are irresponsible, they may be more efficient to become punctual and reliable. Teenagers would better understand what it is like to hold a part-time job while keeping up in school and homework. Therefore realizing what their parents do on a daily basis. For example, holding a full-time job and meeting the family responsibilities. Teenagers could also think about saving their earnings for buying the things they would like. Money is something almost every teenager wants. If teenagers had a part-time job, this would allow them to have spending money they earned by themselves. With the check they’ve received or money saved from working, they can go out to the movies, go bowling, buy clothes or just buy anything they want. Teenagers would have to spend their earnings very wisely, so they are not asking their parents for money. In conclusion, I strongly believe that it is important for teenagers to have a part time job before they graduate from high school. Although, having a part time job could take time away from yourself such as working on homework or spending time with friends, teenagers can put time aside for a night they aren’t working to go to a movie or just do something they enjoy. Part time jobs have many benefits so I don’t see why some teenagers stay at home doing nothing or spending too much time with friends, when they can be working and getting prepared for the future. Teenagers need to learn life skills early in life. So they are not living at home, with no jobs after high school if they are not going to pursue there education. This is why teenagers should have part-time jobs. How to cite Do Teenagers Need a Part Time Job, Essay examples

Fundamentals of Financial Management A Report

Question: Mr. Smith is a busy entrepreneur. A financial advisor decides where to invest Mr. Smiths stock portfolio worth several million dollars. After a few years, Mr. Smith hires two consultants to independently evaluate the performance of his stock portfolio. These consultants were given daily data on the total dollar value of portfolio, as well as the data on the episodic infusions of cash from Mr. Smith. I cant trust these guys, says Mr. Smith. It is true they found the same return, but the riskà ¢Ã¢â€š ¬Ã‚ adjustment calculations dont match. Consultant 1 report that Mr. Smiths stock portfolio had an annual Sharpe Ratio of 0.43, and while a broad stock market index had an annual Sharpe Ratio of 0.39. He also found an annual CAPM alpha of 1.54% per year. In contrast, Consultant 2 report annual Sharpe Ratios of 0.41 and 0.40 for Mr. Smiths portfolio and for a market index, respectively, and an annual CAPM alpha of 0.12%. Can both consultants have correct calculations? Explain in detail. Answer: The following report is about scrutinizing about the reports given to Mr. Smith by his two consultants. Sharp ratio is calculated by subtracting risk free return from market return and then dividing by portfolio standard deviation. Higher the value of sharp ratio, more return the investor can expect to earn for extra volatility they are exposed to. Same risky investment should be compensated with same return. For one portfolio there can be only one value of sharp ratio. Two consultants gave two contrasting figures which are not acceptable as the same data and formula should be used to arrive at the figures. The two consultants figures match when they gave their return as they didnt considered the risk factor which is somewhat an inappropriate method to measure portfolio performance. Consultant 1 gave an annual sharp ratio of 0.43 while consultant 2 gave an annual sharp ratio of 0.41 which is contradictory. Since both portfolios gave same value of return, their value of risk should also be same. There also gave conflicting results on broad stock market index (Brigham Houston, 2004). Co nsultant 1 gave an annual sharp ratio of 0.39 while consultant b gave an annual sharp ratio of 0.40.though the differences in less but the value should be equal either of the result would be absolutely correct and hence either of them would be perfectly correct. Alpha is a method of portfolio measurement on a risk adjusted basis. Taking the volatility of a mutual fund into consideration alpha compares its risk adjusted performance to a benchmark index. Alpha is among five technical risk ratios. The other ratio are standard deviation, beta, Sharpe ratio which has explained earlier and r-squared. They are used in modern portfolio theory and are statistical measurement. They are all used to decide risk reward profile of mutual fund. In simplified terms alpha represents the value that a portfolio manager adds or subtracts from a funds return (Paramasivan Subramanian, 2009).they are all risk adjusted way of evaluating a portfolio. Both consultants cannot have the correct calculation. Annual CAPM alpha of less than 0 implies the portfolio has earned too little for its risk while than of more than one implies the investment has earned more than its risk .annual capm value equal to zero implies that they the port folio has earned equal to their value of risk 3. Consultant 1 gave an annual CAPM alpha of 1.54 % while consultant 2 gave an estimate of 0.12%. The two consultants have given two quiet different figures for the alpha and hence either of the two can be correct (Shim Siegel, 2000). They should give the same figure as they have used the same data for calculating the risk. Thus it can be concluded that Mr. Smith should consider choosing either consultant 1 or consultant 2 opinions as it is not possible that both of them are correct. He should arrive at his judgment after seeing how these figures are calculated and after proper scanning as he might be mislead by different results. References Brigham, E., Houston, J. (2004).Fundamentals of financial management. Mason, Ohio: Thomson/South-Western. Paramasivan, C., Subramanian, T. (2009).Financial management. New Delhi: New Age International (P) Ltd., Publishers. Shim, J., Siegel, J. (2000).Financial management. Hauppauge, N.Y.: Barron's.

Marco Polo Essays - Marco Polo, Niccol And Maffeo Polo, Kublai Khan

Marco Polo Marco Polo is one of the most well-known heroic travelers and traders around the world. In my paper I will discuss with you Marco Polo's life, his travels, and his visit to China to see the great Khan. Marco Polo was born in c.1254 in Venice. He was a Venetian explorer and merchant whose account of his travels in Asia was the primary source for the European image of the Far East until the late 19th century. Marco's father, Niccol?, and his uncle Maffeo had traveled to China (1260-69) as merchants. When they left (1271) Venice to return to China, they were accompanied by 17-year-old Marco and two priests. Early Life Despite his enduring fame, very little was known about the personal life of Marco Polo. It is known that he was born into a leading Venetian family of merchants. He also lived during a propitious time in world history, when the height of Venice's influence as a city-state coincided with the greatest extent of Mongol conquest of Asia(Li Man Kin 9). Ruled by Kublai Khan, the Mongol Empire stretched all the way from China to Russia and the Levant. The Mongol hordes also threatened other parts of Europe, particularly Poland and Hungary, inspiring fear everywhere by their bloodthirsty advances. Yet the ruthless methods brought a measure of stability to the lands they controlled, opening up trade routes such as the famous Silk Road. Eventually,the Mongols discovered that it was more profitable to collect tribute from people than to kill them outright, and this policy too stimulated trade(Hull 23). Into this favorable atmosphere a number of European traders ventured, including the family of Marco Polo. The Polos had long-established ties in the Levant and around the Black Sea: for example, they owned property in onstantinople, and Marco's uncle, for whom he was named, had a home in Sudak in the Crimea(Rugoff 8). From Sudak, around 1260, another uncle, Maffeo, and Marco's father, Niccol?, made a trading visit into Mongol territory, the land of the Golden Horde(Russia), ruled by Berke Khan. While they were there, a war broke out between Berke and the Cowan of Levant, blocking their return home. Thus Niccol? and Maffeo traveled deeper into mongol territory, moving southeast to Bukhara, which was ruled by a third Cowan. While waiting there, they met an emissary traveling farther eastward who invited them to accompany him to the court of the great Cowan, Kublai, in Cathay(modern China). In Cathay, Kublai Khan gave the Polos a friendly reception, appointed them his emissaries to the pope, and ensured their safe travel back to Europe(Steffof 10). They were to return to Cathay with one hundred learned men who could instruct the Mongols in the Christian religion and the liberal arts. In 1269, Niccol and Maffeo Polo arrived back in Venice, where Niccol found out his wife had died while he was gone (Rugoff 5). Their son, Marco, who was only about fifteen years old, had been only six or younger when his father left home:thus; Marco was reared primarily by his mother and the extended Polo family-and the streets of Venice. After his mother's death, Marco had probably begun to think of himself as something of a orphan(Rugoff 6). Then his father and uncle suddenly reappeared, as if from the dead, after nine years of traveling in far-off, romantic lands. These experiences were the formative influences on young Marco, and one can see their effects mirrored in his character: a combination of sensitivity and toughness, independence and loyalty, motivated by an eagerness for adventure, a love of stories, and a desire to please or impress(Li Man Kin 10). Life's Work In 1268, Pope Clement IV died, and a two- or three-year delay while another pope was being elected gave young Marco time to mature and to absorb the tales of his father and uncle. Marco was seventeen years old when he, his father and uncle finally set out for the court of Kublai Khan(Stefoff 13). They were accompanied not by one hundred wise men but by two Dominican friars, and the two good friars turned back at the first sign of adversity, another local war in the Levant. Aside from the pope's messages,

Are the Effects of the Digital World and Internet on Our Modern Life Style Negative or Positive

Are the Effects of the Digital World and Internet on Our Modern Life Style Negative or Positive How do you feel when your laptop requires repairing, your Internet connection is broken, and your iPhone is left at home? Such perspectives seem to be too dangerous for you? If it is so, you are a representative of a modern digital nation which lives in our digital world.Advertising We will write a custom assessment sample on Are the Effects of the Digital World and Internet on Our Modern Life Style Negative or Positive? specifically for you for only $16.05 $11/page Learn More What are the main peculiarities of this world? Why do the representatives of the digital nation differ from the people of, for instance, the 1970th 1980th period? The information is the main concept of the digital world, and the value of the information technologies is the main peculiar feature of the digital nation. Today it is impossible to imagine our society without the Internet, mobile phones, and other technologies which give us the opportunity to access to the great amounts of the information at any place and at any time. New conditions of life which depend on the development of the information technologies create a new pattern of the public’s life style. It is possible to say that the effects of the digital world on our modern life style can be considered as predominantly negative because the progress of the information technologies involves the changes in the typical life style of many people, influences their activities, their consciousness, and relations with the other persons. The debates on the influence of the Internet on the young people’s minds develop since the time when the Internet became such an ordinary part of our everyday life as the television. Nevertheless, it was rather difficult to predict such an expansion of the Internet round the world and determining Web as the giant database or a library which can function as cinema, theatre, and museums at once. According to Adam Gopnik, â€Å"the Internet is just a loud and unlimi ted library in which we now live – as if one went to sleep every night in the college stacks, surrounded by pamphlets and polemics and possibilities† (Gopnik). It is only several years ago researchers began to speak openly about such issues as the negative effects of the Internet on the public’s minds and to develop the necessary investigations. The results of their researches accentuate the fact that every time when we use the Internet connection in order to find the necessary information or to participate in the virtual reality we experience the great impact which is provided by the information from the Internet. This impact is considered as negative because our brains begin to function atypically in order to cope with a lot of the information of different kinds. This controversial information along with the discussion of many other provocative aspects is presented in the project created by Rachel Dretzin and Douglas Rushkoff which and known as Digital Nation ( â€Å"Digital Nation†).Advertising Looking for assessment on communications media? Let's see if we can help you! Get your first paper with 15% OFF Learn More However, those processes which can be observed in our brains when we are involved in the virtual reality are still not examined properly, but those findings which are available to the public provide rather pessimistic perspectives on the question of the influence of the Internet on our minds, intelligence, and consciousness. In his article â€Å"The Information†, Adam Gopnik also focuses on the fact that â€Å"the Internet breaks down our capacity for reflective thought† (Gopnik). Thus, a lot of the information which is offered in the Internet is given as the facts which do not stimulate the public’s critical thinking. Moreover, people are always at risks to perceive the information which is not reliable without analyzing its main points and credibility. The other aspect of t he influence of the Internet on the public’s minds is the special physical and moral state which is often the result of the everyday involvement in the virtual life. Thus, Adam Gopnik emphasizes the fact that many people when they describe their state while using the Internet are inclined to depict it in such words as â€Å"disassociation and fragmentation† and moreover, he states that â€Å"life was once whole, continuous, stable; now it is fragmented, multi-part, shimmering around us, unstable and impossible to fix† (Gopnik). Paying attention to those effects which the Internet has on the people’s minds and consciousness, it is not surprising to accentuate the numerous facts of the public’s addiction from the Internet. Today many young people choose to spend all their spare time in the virtual reality which provides them with virtual friends, a lot of emotions and feelings. The level of the social activity of those persons who spend their days in front of their laptops is low because almost all their interactions take place in the space of the Internet. Are their any dangerous effects in such a behavior or we should not worry? Ben Turner concentrates on the psychologists’ investigations and concludes that there is â€Å"a link between the disinterest in public participation in local and national affairs and the increase of instances of Internet addiction† (Turner). The Internet addiction hides a lot of risks for young people which are connected with the character of their social interactions, real communication, and being aware of themselves as the part of the real society, bit not the virtual reality. The Internet addiction can be considered as the abstract notion which will not be associated with us, but with somebody else. Nevertheless, according to the data from Digital Nation, today many young people in such a developed country as South Korea have to get rid of the Internet addiction (â€Å"Digital Natio n†). The Internet addiction is interdependent with the feeling of the catastrophic loneliness which is typical for those people who made the Internet the major part of their life. In spite of the fact they spend much time communicating online with the help of chats and social networks, the feeling of loneliness which is the result of the real communication’s lack is too painful for them. Many young people are inclined to check their e-mails and Facebook instead of communicating with the members of their family.Advertising We will write a custom assessment sample on Are the Effects of the Digital World and Internet on Our Modern Life Style Negative or Positive? specifically for you for only $16.05 $11/page Learn More When they reject the real interactions with real emotions they create their own illusion of communication in the Internet. The Internet communication is effective for solving business matters, but it is rather unsuccessful for perso nal relations. Sharing interests in music and movie with our virtual friends, we become more and more distant from our relatives and real friends. In the most dangerous cases this situation can lead to the public’s isolation. To conclude, it is necessary to state that the rapid development of the digital world provides a lot of issues for our modern digital nation. To overcome all the provocative and controversial aspects of this process, it is significant to pay attention to the negative effects of the situation. It is impossible to imagine our life without the Internet, but it is possible to avoid the extremes in involving it in our life style. â€Å"Digital Nation: Life on the Virtual Frontier†. PBS Frontline. 2 Feb. 2010. Video. Web. Gopnik, Adam. â€Å"The Information†. The New Yorker. 14 Feb. 2011. Web. Turner, Ben. The Internet’s Effect on Relationships: Detrimental or Beneficial? 18 Mar. 2010. Web.

Case Nestle

In 1905, the company merged with the Anglo-Swiss Condensed Milk, thereby broadening the company’s product line to include both condensed milk and infant formulas. Forced by Switzerland’s small size to look outside’ its borders for growth opportunities, Nestle established condensed milk and infant food processing plants in the United States and Britain in the late 19th century and in Australia, South America, Africa, and Asia in the first three decades of the 20th century. In 1929, Nestle moved into the chocolate business when it acquired a Swiss chocolate maker. This was followed in 1938 by the development of Nestle’s most revolutionary product, Nescafe, the world’s first soluble coffee drink. After World War 11, Nestle continued to expand into other areas of the food business, primarily through a series of acquisitions that included Maggi (1947), Cross Blackwell (1960), Findus (1962), Libby’s (1970), Stouffer’s (1973), Carnation (1985), Rowntree (1988), and Perrier (1992). By the late 1990s, Nestle had 500 factories in 76 countries and sold its products in a staggering 193 nations-almost every country in the world. In 1998, the company generated sales of close to SWF 72 billion ($51 billion), only 1 percent of which occurred in its home country. Similarly, only 3 percent of its- 210,000 employees were located in Switzerland. Nestle was the world’s biggest maker of infant formula, powdered milk, chocolates, instant coffee, soups, and mineral waters. It was number two in ice cream, breakfast cereals, and pet food. Roughly 38 percent of its food sales were made in Europe, 32 percent in the Americas, and 20 percent in Africa and Asia. Management Structure Nestle is a decentralized organization. Responsibility for operating decisions is pushed down to local units, which typically enjoy a high degree f autonomy with regard to decisions involving pricing, distribution, marketing, human resources, and so on. At the same time, the company is organized into seven worldwide strategic business units (SBUs) that have responsibility for high-level strategic decisions and business development. For example, a strategic business unit focuses on coffee and beverages. Another one focuses on confectionery and ice cream. These SBUs engage in overall strategy development, including acquisitions and market entry strategy. In recent years, two-thirds of Nestle’s growth has come from acquisitions, so this is a critical function. Running in parallel to this structure is a regional organization that divides the world into five major geographical zones, such as Europe, North America and Asia. The regional organizations assist in the overall strategy development process and are responsible for developing regional strategies (an example would be Nestle’s strategy in the Middle East, which was discussed earlier). Neither the SBU nor regional managers, however, get involved in local operating or strategic decisions on anything other than an exceptional basis. Although Nestle makes intensive use of local managers to knit its diverse worldwide operations together, the company relies on its â€Å"expatriate army. †Ã‚   This consists of about 700 managers who spend the bulk of their careers on foreign assignments, moving from one country to the next. Selected primarily on the basis of their ability, drive and willingness to live a quasi-nomadic lifestyle, these individuals often work in half-a-dozen natiosn during their careers. Nestle also uses management development programs as a strategic tool for creating an  esprit de corps  among managers. At Rive-Reine, the company’s international training center in Switzerland, the company brings together, managers from around the world, at different stages in their careers, for specially targetted development programs of two to three weeks’ duration. The objective of these programs is to give the managers a better understanding of Nestle’s culture and strategy, and to give them access to the company’s top management. The research and development operation has a special place within Nestle, which is not surprising for a company that was established to commercialize innovative foodstuffs. The RD function comprises 18 different groups that operate in 11 countries throughout the world. Nestle spends approximately 1 percent of its annual sales revenue on RD and has 3,100 employees dedicated to the function. Around 70 percent of the RD budget is spent on development initiatives. These initiatives focus on developing products and processes that fulfill market needs, as identified by the SBUs, in concert with regional and local managers. For example, Nestle instant noodle products were originally developed by the RD group in response to the perceived needs of local operating companies through the Asian region. The company also has longer-term development projects that focus on developing new technological platforms, such as non-animal protein sources or agricultural biotechnology products. A Growth Strategy for the 21st  Century Despite its undisputed success, Nestle realized by the early 1990s, that it faced significant challenges in maintaining its growth rate. The large Western European and North American markets were mature. In several countries, population growth had stagnated and in some, there had been a small decline in food consumption. The retail environment in many Western nations had become increasingly challenging and the balance of power was shifting away from the large-scale manufacturers of branded foods and beverages, and toward nationwide supermarket and discount chains. Increasingly, retailers found themselves in the unfamiliar position of playing off against each other – manufacturers of branded foods, thus bargaining down prices. Particularly in Europe, this trend was enhanced by the successful introduction of private-label brands by several of Europe’s leading supermarket chains. The results included increased price competition in several key segments of the food and beverage market, such as cereals, coffee and soft drinks. At Nestle, one response has been to look toward emerging markets in Eastern Europe, Asia and Latin America for growth possibilities. The logic is simple and obvious – a combination of economic and population growth, when coupled with the widespread adoption of market-oriented economic policies by the governments of many developing nations, makes for attractive business opportunities. Many of these countries are still relatively poor, but their economies are growing rapidly. For example, if current economic growth forecasts occur, by 2010, there will be 700 million people in China and India that have income levels approaching those of Spain in the mid-1990s. As income levels rise, it is increasingly likely that consumers in these nations will start to substitute branded food products for basic foodstuffs, creating a large market opportunity for companies such as Nestle. In general, the company’s strategy had been to enter emerging markets early – before competitors – and build a substantial position by selling basic food items that appeal to the local population base, such as infant formula, condensed milk, noodles and tofu. By narrowing its initial market focus to just a handful of strategic brands, Nestle claims it can simplify life, reduce risk, and concentrate its marketing resources and managerial effort on a limited number of key niches. The goal is to build a commanding market position in each of these niches. By pursuing such a strategy, Nestle has taken as much as 85 percent of the market for instant coffee in Mexico, 66 percent of the market for powdered milk in the Philippines, and 70 percent of the markets for soups in Chile. As income levels rise, the company progressively moves out from these niches, introducing more upscale items, such as mineral water, chocolate, cookies, and prepared foodstuffs. Although the company is known worldwide for several key brands, such as Nescafe, it uses local brands in many markets. The company owns 8,500 brands, but only 750 of them are registered in more than one country, and only 80 are registered in more than 10 countries. While the company will use the same â€Å"global brands† in multiple developed markets, in the developing world it focuses on trying to optimize ingredients and processing technology to local conditions and then using a brand name that resonates locally. Customization rather than globalization is the key to the company’s strategy in emerging markets. Executing the Strategy Successful execution of the strategy for developing markets requires a degree of flexibility, an ability to adapt in often unforeseen ways to local conditions, and a long-term perspective that puts building a sustainable business before short-term profitability. In Nigeria, for example, a crumbling road system, aging trucks, and the danger of violence forced the company to re-think its traditional distribution methods. Instead of operating a central warehouse, as is its preference in most nations, the country. For safety reasons, trucks carrying Nestle goods are allowed to travel only during the day and frequently under-armed guard. Marketing also poses challenges in Nigeria. With little opportunity for typical Western-style advertising on television of billboards, the company hired local singers to go to towns and villages offering a mix of entertainment and product demonstrations. China provides another interesting example of local adaptation and long-term focus. After 13 years of talks, Nestle was formally invited into China in 1987, by the Government of Heilongjiang province. Nestle opened a plant to produce powdered milk and infant formula there in 1990, but quickly realized that the local rail and road infrastructure was inadequate and inhibited the collection of milk and delivery of finished products. Rather than make do with the local infrastructure, Nestle embarked on an ambitious plan to establish its own distribution network, known as milk roads, between 27 villages in the region and factory collection points, called chilling centres. Farmers brought their milk – often on bicycles or carts – to the centres where it was weighed and analysed. Unlike the government, Nestle paid the farmers promptly. Suddenly the farmers had an incentive to produce milk and many bought a second cow, increasing the cow population in the district by 3,000 to 9,000 in 18 months. Area managers then organized a delivery system that used dedicated vans to deliver the milk to Nestle’s factory. Although at first glance this might seem to be a very costly solution, Nestle calculated that the long-term benefits would be substantial. Nestle’s strategy is similar to that undertaken by many European and American companies during the first waves of industrialization in those countries. Companies often had to invest in infrastructure that we now take for granted to get production off the ground. Once the infrastructure was in place, in China, Nestle’s production took off. In 1990, 316 tons of powdered milk and infant formula were produced. By 1994, output exceeded 10,000 tons and the company decided to triple capacity. Based on this experience, Nestle decided to build another two powdered milk factories in China and was aiming to generate sales of $700 million by 2000. Nestle is pursuing a similar long-term bet in the Middle East, an area in which most multinational food companies have little presence. Collectively, the Middle East accounts for only about 2 percent of Nestle’s worldwide sales and the individual markets are very small. However, Nestle’s long-term strategy is based on the assumption that regional conflicts will subside and intra-regional trade ill expand as trade barriers between countries in the region come down. Once that happens, Nestle’s factories in the Middle East should be able to sell throughout the region, thereby realizing scale economies. In anticipation of this development, Nestle has established a network of factories in five countries, in the hope that each will, someday, supply the entire region with different products. The company, currently makes ice-cream in Dubai, soups and cereals in Saudi Arabia, yogurt and bouillon in Egypt, chocolate in Turkey, and ketchup and instant noodles in Syria. For the present, Nestle can survive in these markets by using local materials and focusing on local demand. The Syrian factory, for example, relies on products that use tomatoes, a major local agricultural product. Syria also produces wheat, which is the main ingredient in instant noodles. Even if trade barriers don’t come down soon, Nestle has indicated it will remain committed to the region. By using local inputs and focussing on local consumer needs, it has earned a good rate of return in the region, even though the individual markets are small. Despite its successes in places such as China and parts of the Middle East, not all of Nestle’s moves have worked out so well. Like several other Western companies, Nestle has had its problems in Japan, where a failure to adapt its coffee brand to local conditions meant the loss of a significant market opportunity to another Western company, Coca Cola. For years, Nestle’s instant coffee brand was the dominant coffee product in Japan. In the 1960s, cold canned coffee (which can be purchased from soda vending machines) started to gain a following in Japan. Nestle dismissed the product as just a coffee-flavoured drink rather than the real thing and declined to enter the market. Nestle’s local partner at the time, Kirin Beer, was so incensed at Nestle’s refusal to enter the canned coffee market that it broke off its relationship with the company. In contrast, Coca Cola entered the market with Georgia, a product developed specifically for this segment of the Japanese market. By leveraging its existing distribution channel, Coca Cola captured a 40 percent share of the $4 billion a year, market for canned coffee in Japan. Nestle, which failed to enter the market until the 1980s, has only a 4 percent share. While Nestle has built businesses from the ground up, in many emerging markets, such as Nigeria and China, in others it will purchase local companies if suitable candidates can be found. The company pursued such a strategy in Poland, which it entered in 1994, by purchasing Goplana, the country’s second largest chocolate manufacturer. With the collapse of communism and the opening of the Polish market, income levels in Poland have started to rise and so has chocolate consumption. Once a scarce item, the market grew by 8 percent a year, throughout the 1990s. To take advantage of this opportunity, Nestle has pursued a strategy of evolution, rather than revolution. It has kept the top management of the company staffed with locals – as it does in most of its operations around the world – and carefully adjusted Goplana’s product line to better match local opportunities. At the same time, it has pumped money into Goplana’s marketing, which has enabled the unit to gain share from several other chocolate makers in the country. Still, competition in the market is intense. Eight companies, including several foreign-owned enterprises, such as the market leader, Wedel, which is owned by PepsiCo, are vying for market share, and this has depressed prices and profit margins, despite the healthy volume growth. Discussions: 1. Does it make sense for Nestle to focus its growth efforts on emerging markets? Why? 2. What is the company’s strategy with regard to business development in emerging markets? Does this strategy make sense? From an organizational perspective, what is required for this strategy to work effectively? 3. Through your own research on NESTLE, identify appropriate performance indicators. Once you have gathered relevant data on these, undertake a performance analysis of the company over the last five years. What does the analysis tell you about the success or otherwise of the strategy adopted by the company? 4. How would you describe Nestle’s strategic posture at the corporate level; is it pursuing a global strategy, a multidomestic strategy an international strategy or a transnational strategy? 5. Does this overall strategic posture make sense given the markets and countries that Nestle participates in? Why? 6. Is Nestle’s management structure and philosophy aligned with its overall strategic posture? Case Nestle In 1905, the company merged with the Anglo-Swiss Condensed Milk, thereby broadening the company’s product line to include both condensed milk and infant formulas. Forced by Switzerland’s small size to look outside’ its borders for growth opportunities, Nestle established condensed milk and infant food processing plants in the United States and Britain in the late 19th century and in Australia, South America, Africa, and Asia in the first three decades of the 20th century. In 1929, Nestle moved into the chocolate business when it acquired a Swiss chocolate maker. This was followed in 1938 by the development of Nestle’s most revolutionary product, Nescafe, the world’s first soluble coffee drink. After World War 11, Nestle continued to expand into other areas of the food business, primarily through a series of acquisitions that included Maggi (1947), Cross Blackwell (1960), Findus (1962), Libby’s (1970), Stouffer’s (1973), Carnation (1985), Rowntree (1988), and Perrier (1992). By the late 1990s, Nestle had 500 factories in 76 countries and sold its products in a staggering 193 nations-almost every country in the world. In 1998, the company generated sales of close to SWF 72 billion ($51 billion), only 1 percent of which occurred in its home country. Similarly, only 3 percent of its- 210,000 employees were located in Switzerland. Nestle was the world’s biggest maker of infant formula, powdered milk, chocolates, instant coffee, soups, and mineral waters. It was number two in ice cream, breakfast cereals, and pet food. Roughly 38 percent of its food sales were made in Europe, 32 percent in the Americas, and 20 percent in Africa and Asia. Management Structure Nestle is a decentralized organization. Responsibility for operating decisions is pushed down to local units, which typically enjoy a high degree f autonomy with regard to decisions involving pricing, distribution, marketing, human resources, and so on. At the same time, the company is organized into seven worldwide strategic business units (SBUs) that have responsibility for high-level strategic decisions and business development. For example, a strategic business unit focuses on coffee and beverages. Another one focuses on confectionery and ice cream. These SBUs engage in overall strategy development, including acquisitions and market entry strategy. In recent years, two-thirds of Nestle’s growth has come from acquisitions, so this is a critical function. Running in parallel to this structure is a regional organization that divides the world into five major geographical zones, such as Europe, North America and Asia. The regional organizations assist in the overall strategy development process and are responsible for developing regional strategies (an example would be Nestle’s strategy in the Middle East, which was discussed earlier). Neither the SBU nor regional managers, however, get involved in local operating or strategic decisions on anything other than an exceptional basis. Although Nestle makes intensive use of local managers to knit its diverse worldwide operations together, the company relies on its â€Å"expatriate army. †Ã‚   This consists of about 700 managers who spend the bulk of their careers on foreign assignments, moving from one country to the next. Selected primarily on the basis of their ability, drive and willingness to live a quasi-nomadic lifestyle, these individuals often work in half-a-dozen natiosn during their careers. Nestle also uses management development programs as a strategic tool for creating an  esprit de corps  among managers. At Rive-Reine, the company’s international training center in Switzerland, the company brings together, managers from around the world, at different stages in their careers, for specially targetted development programs of two to three weeks’ duration. The objective of these programs is to give the managers a better understanding of Nestle’s culture and strategy, and to give them access to the company’s top management. The research and development operation has a special place within Nestle, which is not surprising for a company that was established to commercialize innovative foodstuffs. The RD function comprises 18 different groups that operate in 11 countries throughout the world. Nestle spends approximately 1 percent of its annual sales revenue on RD and has 3,100 employees dedicated to the function. Around 70 percent of the RD budget is spent on development initiatives. These initiatives focus on developing products and processes that fulfill market needs, as identified by the SBUs, in concert with regional and local managers. For example, Nestle instant noodle products were originally developed by the RD group in response to the perceived needs of local operating companies through the Asian region. The company also has longer-term development projects that focus on developing new technological platforms, such as non-animal protein sources or agricultural biotechnology products. A Growth Strategy for the 21st  Century Despite its undisputed success, Nestle realized by the early 1990s, that it faced significant challenges in maintaining its growth rate. The large Western European and North American markets were mature. In several countries, population growth had stagnated and in some, there had been a small decline in food consumption. The retail environment in many Western nations had become increasingly challenging and the balance of power was shifting away from the large-scale manufacturers of branded foods and beverages, and toward nationwide supermarket and discount chains. Increasingly, retailers found themselves in the unfamiliar position of playing off against each other – manufacturers of branded foods, thus bargaining down prices. Particularly in Europe, this trend was enhanced by the successful introduction of private-label brands by several of Europe’s leading supermarket chains. The results included increased price competition in several key segments of the food and beverage market, such as cereals, coffee and soft drinks. At Nestle, one response has been to look toward emerging markets in Eastern Europe, Asia and Latin America for growth possibilities. The logic is simple and obvious – a combination of economic and population growth, when coupled with the widespread adoption of market-oriented economic policies by the governments of many developing nations, makes for attractive business opportunities. Many of these countries are still relatively poor, but their economies are growing rapidly. For example, if current economic growth forecasts occur, by 2010, there will be 700 million people in China and India that have income levels approaching those of Spain in the mid-1990s. As income levels rise, it is increasingly likely that consumers in these nations will start to substitute branded food products for basic foodstuffs, creating a large market opportunity for companies such as Nestle. In general, the company’s strategy had been to enter emerging markets early – before competitors – and build a substantial position by selling basic food items that appeal to the local population base, such as infant formula, condensed milk, noodles and tofu. By narrowing its initial market focus to just a handful of strategic brands, Nestle claims it can simplify life, reduce risk, and concentrate its marketing resources and managerial effort on a limited number of key niches. The goal is to build a commanding market position in each of these niches. By pursuing such a strategy, Nestle has taken as much as 85 percent of the market for instant coffee in Mexico, 66 percent of the market for powdered milk in the Philippines, and 70 percent of the markets for soups in Chile. As income levels rise, the company progressively moves out from these niches, introducing more upscale items, such as mineral water, chocolate, cookies, and prepared foodstuffs. Although the company is known worldwide for several key brands, such as Nescafe, it uses local brands in many markets. The company owns 8,500 brands, but only 750 of them are registered in more than one country, and only 80 are registered in more than 10 countries. While the company will use the same â€Å"global brands† in multiple developed markets, in the developing world it focuses on trying to optimize ingredients and processing technology to local conditions and then using a brand name that resonates locally. Customization rather than globalization is the key to the company’s strategy in emerging markets. Executing the Strategy Successful execution of the strategy for developing markets requires a degree of flexibility, an ability to adapt in often unforeseen ways to local conditions, and a long-term perspective that puts building a sustainable business before short-term profitability. In Nigeria, for example, a crumbling road system, aging trucks, and the danger of violence forced the company to re-think its traditional distribution methods. Instead of operating a central warehouse, as is its preference in most nations, the country. For safety reasons, trucks carrying Nestle goods are allowed to travel only during the day and frequently under-armed guard. Marketing also poses challenges in Nigeria. With little opportunity for typical Western-style advertising on television of billboards, the company hired local singers to go to towns and villages offering a mix of entertainment and product demonstrations. China provides another interesting example of local adaptation and long-term focus. After 13 years of talks, Nestle was formally invited into China in 1987, by the Government of Heilongjiang province. Nestle opened a plant to produce powdered milk and infant formula there in 1990, but quickly realized that the local rail and road infrastructure was inadequate and inhibited the collection of milk and delivery of finished products. Rather than make do with the local infrastructure, Nestle embarked on an ambitious plan to establish its own distribution network, known as milk roads, between 27 villages in the region and factory collection points, called chilling centres. Farmers brought their milk – often on bicycles or carts – to the centres where it was weighed and analysed. Unlike the government, Nestle paid the farmers promptly. Suddenly the farmers had an incentive to produce milk and many bought a second cow, increasing the cow population in the district by 3,000 to 9,000 in 18 months. Area managers then organized a delivery system that used dedicated vans to deliver the milk to Nestle’s factory. Although at first glance this might seem to be a very costly solution, Nestle calculated that the long-term benefits would be substantial. Nestle’s strategy is similar to that undertaken by many European and American companies during the first waves of industrialization in those countries. Companies often had to invest in infrastructure that we now take for granted to get production off the ground. Once the infrastructure was in place, in China, Nestle’s production took off. In 1990, 316 tons of powdered milk and infant formula were produced. By 1994, output exceeded 10,000 tons and the company decided to triple capacity. Based on this experience, Nestle decided to build another two powdered milk factories in China and was aiming to generate sales of $700 million by 2000. Nestle is pursuing a similar long-term bet in the Middle East, an area in which most multinational food companies have little presence. Collectively, the Middle East accounts for only about 2 percent of Nestle’s worldwide sales and the individual markets are very small. However, Nestle’s long-term strategy is based on the assumption that regional conflicts will subside and intra-regional trade ill expand as trade barriers between countries in the region come down. Once that happens, Nestle’s factories in the Middle East should be able to sell throughout the region, thereby realizing scale economies. In anticipation of this development, Nestle has established a network of factories in five countries, in the hope that each will, someday, supply the entire region with different products. The company, currently makes ice-cream in Dubai, soups and cereals in Saudi Arabia, yogurt and bouillon in Egypt, chocolate in Turkey, and ketchup and instant noodles in Syria. For the present, Nestle can survive in these markets by using local materials and focusing on local demand. The Syrian factory, for example, relies on products that use tomatoes, a major local agricultural product. Syria also produces wheat, which is the main ingredient in instant noodles. Even if trade barriers don’t come down soon, Nestle has indicated it will remain committed to the region. By using local inputs and focussing on local consumer needs, it has earned a good rate of return in the region, even though the individual markets are small. Despite its successes in places such as China and parts of the Middle East, not all of Nestle’s moves have worked out so well. Like several other Western companies, Nestle has had its problems in Japan, where a failure to adapt its coffee brand to local conditions meant the loss of a significant market opportunity to another Western company, Coca Cola. For years, Nestle’s instant coffee brand was the dominant coffee product in Japan. In the 1960s, cold canned coffee (which can be purchased from soda vending machines) started to gain a following in Japan. Nestle dismissed the product as just a coffee-flavoured drink rather than the real thing and declined to enter the market. Nestle’s local partner at the time, Kirin Beer, was so incensed at Nestle’s refusal to enter the canned coffee market that it broke off its relationship with the company. In contrast, Coca Cola entered the market with Georgia, a product developed specifically for this segment of the Japanese market. By leveraging its existing distribution channel, Coca Cola captured a 40 percent share of the $4 billion a year, market for canned coffee in Japan. Nestle, which failed to enter the market until the 1980s, has only a 4 percent share. While Nestle has built businesses from the ground up, in many emerging markets, such as Nigeria and China, in others it will purchase local companies if suitable candidates can be found. The company pursued such a strategy in Poland, which it entered in 1994, by purchasing Goplana, the country’s second largest chocolate manufacturer. With the collapse of communism and the opening of the Polish market, income levels in Poland have started to rise and so has chocolate consumption. Once a scarce item, the market grew by 8 percent a year, throughout the 1990s. To take advantage of this opportunity, Nestle has pursued a strategy of evolution, rather than revolution. It has kept the top management of the company staffed with locals – as it does in most of its operations around the world – and carefully adjusted Goplana’s product line to better match local opportunities. At the same time, it has pumped money into Goplana’s marketing, which has enabled the unit to gain share from several other chocolate makers in the country. Still, competition in the market is intense. Eight companies, including several foreign-owned enterprises, such as the market leader, Wedel, which is owned by PepsiCo, are vying for market share, and this has depressed prices and profit margins, despite the healthy volume growth. Discussions: 1. Does it make sense for Nestle to focus its growth efforts on emerging markets? Why? 2. What is the company’s strategy with regard to business development in emerging markets? Does this strategy make sense? From an organizational perspective, what is required for this strategy to work effectively? 3. Through your own research on NESTLE, identify appropriate performance indicators. Once you have gathered relevant data on these, undertake a performance analysis of the company over the last five years. What does the analysis tell you about the success or otherwise of the strategy adopted by the company? 4. How would you describe Nestle’s strategic posture at the corporate level; is it pursuing a global strategy, a multidomestic strategy an international strategy or a transnational strategy? 5. Does this overall strategic posture make sense given the markets and countries that Nestle participates in? Why? 6. Is Nestle’s management structure and philosophy aligned with its overall strategic posture?