Recycling

Executive summary Contents: 1. Introduction 2. 0Current design 2. 1Product Description 2. 2Applications 2. 3Value analysis 2. 4Product life cycle 2. 5Manufacturing method and materials 3. 1Re- Design 3. 2Value analysis 3. 3Design for manufacture 3. 4Design for assembly 3. 5Design for Dis-assembly 3. 6Design for sustainability 4. 1Conclusion References Appendix Executive Summary A blinder is a smooth maker which provides various services. It has different kind of functions and used in household and restaurant. The operation method is very simple.

Input Ac current from a wall socket and ingredients needed to mix a desire finish goods as output. To develop or re-design a new product that will be appealing to the consumers. This is challenges for any kind of product. We analysed this product used various tools such as value analysis. From analysis this report explained there are little room to improvement for design, manufacture and assembly. The many component of the product made from plastic and which is cheap as produce with economic of scale and recycle these parts easy. This report will explain about sustainability and how EU control the waste by the implementing low.

Introduction: The main objective of the blinder is to mix different ingredients to form of a new product, e. g. banana shake involved with mixing banana and milk. This is not always easy to bland because of different out put required different speeds to create a good mix. Because of that a blander will provide several speed settings. For smooth, well mixed products, it becomes necessary that a blinder will able to spin at a Varity of speed. The speed can be varying with the desirable output. The redesign of the product can be produce with economics of scale with maintain of environmental issue.

Weihrich & Koontz (2005) explain that, create product ideas by examining consumers needs and screening the various alternatives, after the product is designed, prepare to lay out of the facilities to be used, plan the system of production, and schedule the various tasks that must be done. 2. 0 Current design: This type of blender can be made of glass, plastic, stainless steel or porcelain. Design is a problem solving activity (Lecture notes). Designer must be developing a product or service that meets a customer wants and needs through dissatisfaction. (Appendix 1). The demanded for the blinder is defined.

The PDS shows that top of the container are a lid to prevent ingredients from escaping during operation. At the bottom is a blade assembly, sometimes removable for cleaning purposes. In cases where the blades are removable, the container should an o-ring between the body of the container and the base to seal the container and prevent the contents from leaking. The container rests upon a base that contains a motor for turning the blade assembly and has controls on its surface. Most current blenders offer a number of possible speeds. Low – powered blenders require some liquid to be added for the blender to operate correctly.

High-powered blenders are capable of milling grains and crushing ice without such assistance. 2. 1 product description: Stand Blender XB9196G -5 Speeds with pulse -Capacity: 1. 5 L -Powerful 450 W motor -Stainless steel blade -Transplant glass Jug. -Voltage: 120V/230V -Wattage: 500/450 W 2. 2 Application: First, after remove the blender from the box and plug it in to a 120V wall socket. The consumer must then assemble it by placing the lid on the pitcher, the nozzle on the bottom, and attach the pitcher to the blade turner. Second, the pitcher can only fit in to the base one way because of the grooves and the markings.

Third, the consumer would then fill the pitcher with whatever they would like to blend before adjusting the speed. There are three options: smooth, mix, and pulse. These basic descriptions for the speeds are clear and easy to understand. “Smooth” could be perceived as blending something thoroughly therefore it is the higher speed of the two locking buttons. Mix is slower and could be perceived as more stirring. Pulse can be used to intermittently blend the contents of the pitcher at a highest speed. Forth, trying to keep consumers hand on the top of the blender while pushing the buttons can lead to some difficulty.

To pour, the consumer removes the top of the blender and grasps it by the handle or the grooves. To store the blender, unplug it and clean thoroughly. Fifth, to clean, the consumer takes apart the blender by removing the pitcher from the blade holder by twisting. This is usually kept tight so that liquid does not leak out the bottom therefore it is difficult to remove. Once the base is screwed off, the blades are easy to access. The nozzle must have water passed through to clean thoroughly but it is not intuitive how to screw the nozzle apart. 2. 3 Value analysis: (VA)

Value is monetary terms of product and services relates with consumer desirability, worth and utility. ‘Value analysis is an organised programme to optimise the value of the product by eliminating unnecessary cost. (Lecture notes). The price for the final consumer can be reduced by the producing as bulk. The Fixed cost (FC) should set up as minimise level as possible and control on Variable cost (VC). When Marginal cost will be Zero, there will be possible to reduce the price than competitors. But the some of the specific components production cost is higher than other parts of the blender.

The Pareto Principle (also known as the 80-20 rule) states that 80% of the effects come from 20% of the causes. 2. 4 Product life cycle: PLC goes through many phases, required skills, knowledge and many professional disciplines. As a product blander is a mature product as voice of the customer. But according to manufacturing it may not be mature product. Because of this product still required many components. There are four things to assert for PLC: 1. Product have a limited life. 2. Product sales pass through different stages and face different challenges. 3. Profits rise and fall in different stages. . Product required combination of marketing, finance, manufacturing, purchasing, RD, HR in each life cycle stages. A blinder is in a perfect competition market. So manufacturer need to combine different marketing and production mechanism with efficiently and effectively. So, Boone and kartz (1990) explain four stages through which a successful product passes: introduction, growth, maturity, and decline. 2. 5 Manufacturing method and materials: The current product main four components: The motor, base, the pitcher and operational control. The pitcher made from glass.

The component made from glass, plastic and stainless steel. 3. 0 Re-design: Redesign of the product transforms the quality better. So what is quality? Galloway ET (2000) explains that this represents the degree to which the design of the product or service meets the requirements of the market. Re-design of the blinder is not dramatic change. There are two major changes than previous model. The jar made by glass (previous) new model made from plastic. There are two main reasons, e. g. it is very cost effective as a material used and re-cycle is more environmental friendly.

Another major change is touching Pad. There ware knob for the increase and decrease of the speed (old model). New model touch pad is implemented by numbers. Because of easy to operate in terms of level of speed required for specific output and usable friendly for all kind of consumer. (Appendix 2). This report will explain about different component of the blinder in re-assemble section. 3. 1 Value analysis: Value is interpreted in macro sense; it does not explain not only the cost of material but factor of other productions. The final product needs to face challenges of satisfactory.

Does the product value with money? The utility of new jar can be appropriate with SMART analysis. Consumers can relay on this product as any condition of mixer. But glass jar is not friendly with hot condition of mixer. This product is Hazard Free to use, easy to maintenance and the life time depends on use. But it is completely disposal product. There is little sound pollution during operating time. 3. 2 Design for manufacturer: The current product is composed of 4 major components: the pitcher, motor, base, and operator control. The pitcher is made of plastic and is made by injection molding.

The subparts of the pitcher are assembled with the use of fasteners. The parts of the pitcher are ease of assembly. There is a blade holder assembly at the base of the plastic pitcher. This piece is plastic and is used to attach the pitcher to the base of the blender. This blender blade fixture is also plastic. But it needs to be bored out with a drill through the middle forming an area for a long screw from the blade assembly. The production of the blades is from a slab of metal where slices of equivalent sizes are taken in order to produce mass amounts of blades at one time.

The blender blade setup uses two identical blades 90 degrees to each other that sit on top of one another that are kept in place with simple washers and a long screw. The second major component is the motor which is inside the base and directly under the pitcher. The motor is produce from a specialized motor company. The problem of heat transfer must be examined. The heat produced from the motor will not melt the parts nearby. The motor is made to fit under the base and is sufficiently mounted. The mounting clips are under the blender base and are made to withstand the movement associated with the vibrations from the motor.

The mounting clips are extensions on the base allowing for more strength. However, many parts of the motor attachment are attached by gluing which may result in problems with reusing or taking apart the glued components during the assembly process. The third main component is the base. It is made of plastic and is mass produced most likely by injection molding. The base is made durable enough to withstand added liquid in the pitcher as well as a running motor. The last component is the operator control that allows the user to choose different blending speeds. 3. Designs for Assembly: The blender actually consisted of over 50 components. Although we only mentioned the 4 main parts of the blender assembly, the actual manufacturing process was actually very difficult and time consuming due to the mass amount of components and attachments. The future design for the blender would most definitely need to reduce the amount of components to speed up the rate of the manufacturing process. 3. 4 Design for dis- assembly: This report will explain all component of a blinder. So readers can get the information in micro level of the operation.

Pitcher: Pitcher made from plastic and it holds liquid and it injection moulding. Cover: Cover top of the pitcher made from plastic and has two parts of moulding. Handle parts: This is for the user to hold pitcher and made from plastic. Pitcher Nozzle: It’s manufacturing process injection moulding and dispenses liquid from pitcher. It is made from plastic. Plunger stick: It is converts force of nozzle into plunger and made from plastic. Plunger Rubber: The function of this part opens up passage for liquid flow and made from rubber. Round Knob: The function of this part directs plunger stick and made from plastic.

Plunger washer: The manufacturing process of this part is stamped and function is distributes load over spring. This is made from aluminium. Spring: Spring loads the nozzle lever and made from steel. The manufacturing process is coiled. Nozzle Lever: This pat use for dispense liquid and made from plastic. Blade Subassembly: Upper blade: The main function of this part is cuts food and ice and made from steel. The manufacturing process is milling stamping bending. Lower blade: This part has similar function like upper part. It has same weight as well.

Blade shift: The function of this part is transmit rotation of blade turner to blades and made from steel. Washer: The function of this part is distributes load evenly on blade and made from hard fiver. The manufacturing process is stamping. 3Flange Nut: It is attached blade holder to shift and made from steel. Blade Holder: The main function connects blade to pitcher and made from plastic. Bearing: This part made from brass and main function is allows blade to rotate in respect to holder. Blade holder O-ring: It main function is reduces liquid drip page and made from rubber and manufacturing process is injection moulding.

Yellow clip ring: This part attaches pitcher to motor cover and made from plastic. White black ring on blade holder: It has similar function of blade holder o-ring. Blade turner: The main function is transmits rotation of motor shaft to blade shaft and made from steel or plastic. Motor sub- assembly: There are few parts e. g. damper, damper/blade washer, motor/damper washer, motor/damper bias, motor cover screw washer and another three main components e. g. Motor fan: The main function of this part is to reduces temperature of motor and maid from plastic.

Upper and lower motor bracket: This part made from either plastic or aluminium or copper. The function is holding the motor in place. Motor Assembly: The function is the magnetic field run generates an magnetic field on the motor. This part made from plastic. User interface subassembly: Base and motor cover: Both are made from plastic. One function covers the top of the motor and another cover the bottom of the motor. The other parts of the components are motor cover screws, base screws, button, spring, bottom bracket, signal transmitter. 3. 5 Design for sustainability:

Sustainable design is also called ‘Green design, ‘eco design’. It is art of designing physical objectives, the build environment comply with the economic, social and ecological sustainability. Most of the parts of blander are non-toxic and almost all components are recyclable and required little energy to process. The product has powerful 450 W motor which required 120V which require less energy. This is more household and restaurant useable product so it lasting longer. The most of the materials can be use in commercial new production afterlife.

The processing of e-waste is causes serious health and pollution problems. The technology change, low initial costs have the fasted growing problem around the world. In the 1990 some of the European countries banned the disposal the electronic waste in lands fields. All unwanted electronic goods can return to sales points with free of charge. This is the producer responsibility for dispose. The EU implemented a system in 2003, under the waste Electrical and electronic Equipment Directive (WEEE 2002/96/EC). The directives transform in national low.

The producer should collect their goods from customer and dispose it ecologically friendly manner. 4. 0 Conclusion: Re-design of the blinder is more cost effective and can be produce by economic of scale. It needs to satisfy the consumer demand and needs to face competition in the market. It had been redesign cost effectively and use environmentally friendly. The all components can be reusable for produce of the other new product. The production organisation has more CSR in terms of disposal. As finished goods it needs to face different stages of life.

It can be redesign with the time goes and market mechanism change. There are more R&D required for this product in terms of assembly and noise pollution. References: Galloway L and Rowbotham F & Azhashemi M (2000) Operations Management in Context. 1st edi. Oxford, BH. Weihrich H & Koontz H (2005) Management. 11th edi. London, Mc Graw hill. Boone L & Kurtz D (1990) Contemporary Business. 6th edi. London. The Dryden Press. Lecture notes http: //direct. asda. com/on/demandware. store/sites-ASDA-site http:// inventors. about. com/library/inventors/blblender. htm. Appendix :1 Design Flow chat

I have chosen two work places to compare in my health and safety investigation. First one is in my school, and my second workplace is in St James medical centre. I wrote up a questionnaire about health and safety to give to both of my workplaces. An employee in this place will fill out the questionnaire to see how much they know about their work place.

Firstly both my workplaces do know the evacuation procedures in the event of an emergency or a fire.

Waste Materials: Each workplace uses different methods of disposing of their waste materials. The workplace has special bins for unsafe waste and the school uses the sinks or black bags because it is usually not harmful waste thrown away if it is then it is disposed appropriately for the type of martial of substance. The workplace recycles all unwanted paper the same as the school has just bought in paper bins to use in each classroom.

Is the electricity is used safely: In each workplace there is different electricity safety insurgency firstly in the Post-graduates who have just finished university can also use electronic information for a variety of things as well. Firstly keep in touch with all there friends that they made from university on websites such as Facebook, MySpace and others like that as well as the chat programs e.g. MSN and others. Secondly using it to find jobs and to start to look for cars and houses school the students can use the switches and the equipment under supervision the teacher has control of the safety switches and the circuit breakers in each lab. The workplace has a rule that only qualified elections are allowed to touch the equipment.

Prevent fire: Each workplace is smoke free to insure no fires caused by that. The school has gas cut of switches if the fire was caused by gas to stop the building blowing up. No naked flames and put on near chemicals that are flammable. Each workplace has fire alarms. The medical centre insures that all equipment is switched off before leaving building at night.

Effects on environment: The medical centre knows the effect in the environment is helping people. In the school Some ways of having to use the electronic information can be:

having to buy clothes online delivered to your door, buying plane tickets for anywhere around the world, having your shopping delivered to your door by a local super market e.g. Tesco, Sainsbury and ASDA.

there is know effects to the environment because there are such few hazards chemicals and if there was then they would be so few medical centres w that it wouldn’t make any differences.

Hazard chemicals: Each work place does use chemicals the medical centre has correct training for individuals that are handling them and also monitoring of using them too. The school has fume cupboards are used in the labs ands correct storage. Each chemical is clearly labelled how bad it is also they have fire proof cabinets.

None of my work places use any biological hazards.

First aid: In the medical centre there are doctors and qualified nurses in the case of emergency first aid. In the school there is about 7 teachers qualified in first aid,

What is an Abstract in a Paper

The abstract can be described as a short informative explanation of larger scientific work. It is usually placed at the beginning of the paper before the main text, and its length typically does not exceed 300 words. There are several important roles of an abstract, and if you have experience in academic writing, you might have acknowledged its importance for the overall work.

No matter whether you deliver an article for the editor’s review or hand in a big assignment to the professor, this short description is the very first thing that the reader learns about your work. Also, this is an important communication instrument that conveys the key points of your study and briefly explains to the audience why this particular work is worth further consideration. As a freshman or sophomore, you do not need to add abstract to all the assignments, but it is an integral element of every large college research paper. Likewise, Master’s or Ph.D. level students have to develop the skill of abstract writing because they need it more often.

How to Write a Good Abstract

To write a good abstract, you need to make a couple of important choices before you start. To begin with, you should remember that there are several different types of abstracts, and each has different aims, thus specific style and components.

Generally, the abstracts can be descriptive, informative, or critical, although the latter one is used not very often. If you have difficulties deciding what type of abstract fits your paper, you can take the example of a research paper that is similar to your work and analyze its content.

After you have determined the type of abstract, you can start making a draft. At this point, keep in mind that there are several necessary details to mention in such paper description. Thus, regardless of the abstract type, you should always try to answer the following questions:

• Why is the research important?
• What problem are we trying to solve here?
• What methodology (if any) have we chosen to use for this research?
• What were the results of our study?
• Does our study contribute to the wider research? What challenges can be addressed with its help?

If your description addresses all of these questions, then it is very likely that your example of abstract is really good.

Also, abstracting the article of some other person and abstracting your own text are not the same. Very often, it is much harder to single out the key points in your text because, after so many hours of hard work, everything seems essential. There are a few useful techniques that you can implement while drafting abstracts.

If you need to describe your own work, try to use reverse outlining. It is a process during which the author writes down the main ideas of every paragraph and thus gradually forms the key points of the whole work. One more fine technique is called “cut and paste”; the writer goes through the whole paper and literally cuts and pastes the bits that one thinks are most important.

When abstracting the other person’s work, you should remember a few important details. First, try to summarize the key points of the text – the bits that will be interesting and relevant to the reader. Next, remember to rewrite those using your own words; do not plagiarize. Finally, put aside the paper and read the abstract as if you have never seen the article before. Does it give enough information? Can you grasp the main idea of the text described by this abstract? If yes, then congrats on a well-written piece.

Examples of an Abstract

The lives of modern students are easier in a way because now, they can Google things that they do not understand. If you struggle with abstracting a paper, check out a few good abstract examples that may serve you as an inspiration. If the discipline matches your subject, you can also use them as a pattern.

Social Sciences Example:

Previously, numerous researches were centered around the correlation of false memories and dysphoria in the negative mood induced and dysphoric patients correspondingly, but the specific effect of negative mood inducement in dysphoric patients on the mood-related false memories has not been studied yet.

During this study, the sampled participants were shown the list of words with different connotation: positive, neutral, and negative. Later on, they were asked to select the positive words from the mixed group. The participants were divided into three groups based on the degree of dysphoria experienced by each.

The study presumed that the patients with more intense dysphoria would be more subjected to the mood-related false memories. The results have revealed that there is a direct relation between the mood congruent faulty memories and dysphoria.

The findings of the study contribute to the development of new treatment techniques. To deepen the understanding of the impact of dysphoria on memory function, further research is needed.

Performing and Visual Arts Example:

The dance is a type of performing arts that can have very powerful implications. One of such is social advocacy that can be instilled in the performance and serve as the means of increasing social awareness. The choreographers often integrate social advocacy into the classroom practice and performances. Such elements are valuable and empowering because they enhance the performing experience and awareness of the dancers in regard to the nature of this art form. This empowerment is vital for the art students because it enables them to develop the skill of artistic ownership, that is, the ability to express the choreographic intent by means of the so-called movement vocabulary.

This research investigates the extent to which the dancer is capable of reflecting the attitude through the performance. The comparative analysis of the cognitive and physiological studies provides a broader understanding of the artist as an agent of social change.

Humanities Example:

This study will be based on the analysis of a series of memoirs of different people describing the horrific experiences of the mass violence during the Holocaust. The central focus is placed on the experience of young people and children in Europe who have survived the cruelties of Nazi Germany.

All the memoirs are written and published in English. Each text traces the individual memories of the survivors from the entrance of German conquerors to their countries and the beginning of mass antisemitic violence to the experience in the refugee camps.

The research will trace the common features of unrelated individual stories. The objective of such observation is to determine how the memory of different people reflects similar events, what particular episodes are emphasized, and what feelings and wishes motivate people to share their stories. Also, the research is aimed at defining the role of the survivor memoirs for increasing socio-political awareness and preventing similar genocides from happening in the future.

The collected materials can be of a good use not only for the scientific community and Art students, but also for the general public.

Environment and Natural Resources Example:

The problem of recycling has become extremely acute for the last generation. The drastic impact of human activity has already had a vast impact on the environment, including flora, fauna, and other natural resources that are essential for preserving live on Earth. Given that the general public becomes aware of the potential dangers, more and more people acknowledge the need to contribute to the preservation of the planet. One of the most important initiatives is recycling programs, which are supported and funded in many cities of America. However, the experience is not equally positive to all the urban areas supporting the initiative. This research will investigate the recycling realities of three big American cities, Detroit, Lansing, and Ann Arbor. Its main objective is to discover the current trends of this enterprise, determine potential challenges, and therefore suggest possible solutions. With this study, we expect to find out what social, political, and economic environment in the region is favorable for a successful implementation of the recycling programs.

Communication Arts and Sciences Example:

In the age of information technologies, people mostly rely on the Internet as a major source of health-related info. One of the frequently searched topics is the breast cancer: causes, symptoms, treatment, etc. This study will address the content of 160 most searched websites about the breast cancer. The major focus of the research is being placed on the assessment and analysis of the 15 common theoretical components of this health-related issue. The study also examines the ways in which such information is used to convince people make donation or purchase from the website.

The findings show that 10 out of 15 components were aimed at informing people about detection rather than prevention. Among the remaining 5 prevention-focused websites, three of them used to solicit cost. Such results inspire further research of the question since it is very interesting to study this correlation from different perspectives.

Australian Beverages Limited (ABL) commenced soft drink manufacturing in 1937. During the 1970s and 1980s, the company expanded its beverage portfolio by entering into other non-alcoholic beverage categories, such as fruit and milk-based drinks.

Entry into the snack food market was recently undertaken in response to declining consumption of carbonated soft drinks (CSDs), the company’s traditional area of business strength. This move also enabled ABL to leverage its strong distribution capabilities to supermarkets, convenience stores and hospitality channels by adding adding such complementary food products to non-alcoholic beverages. Nevertheless, CSDs still accounted for 90 per cent of company revenue in 2004. Tom Dwyer, the current managing director, has been with the company since 2005.

He joined the company at a time when CSD growth was stagnating and shareholder confidence in the company was waning. This had resulted in the share price declining by 15 per cent in the two years prior to his appointment. In order to restore shareholder confidence, Dwyer established a strategic planning team within the company to assess the current product portfolio and identify organic and acquisition growth opportunities. From this review the importance of operational excellence was identified and strong investment was made in world class manufacturing facilities and systems.

Process re-engineering was implemented to reduce costs of manufacture and time to market. Having finalised the integration of a snack food business acquisition just over 12 months ago, Dwyer is now aware that he needs to identify further growth options given predicted continuing decline in the CSD market. In January 2010 he asked the strategic planning team to undertake another detailed review of opportunities for future growth, specifically identifying products and markets where the company would have the capabilities for successful entry.

Bottled water was one industry that was identified, based on its complementary nature to the existing beverage portfolio. This industry had been identified as ‘of interest’ in the ABL’s first strategic review in 2005. At that time the market was deemed too small and unsophisticated. However, the Australia bottled water manufacturing industry has grown significantly since this initial review. Dwyer has requested a detailed review to determine whether entry into the domestic bottled water manufacturing industry is now a viable strategic option.

If deemed to be a viable strategic option, Dwyer also wants a recommendation whether the ABL should enter the industry by establishing its own operations or by targeting an existing competitor for acquisition in order to gain immediate market share. B. The Australian bottled water manufacturing industry 1 Bottled water is the fastest growing category in the non-alcoholic beverage market in Australia, with sales revenue of $1. 483 billion in 2009. The major segments of the industry include bottled still and sparkling water. Within these two segments, different packaging sizes and types are offered.

Water can be purchased in a range of single or multi-serve bottles including 600 millilitre, 1 litre or 5 litre bottles from the supermarket or convenience store. Bottled water is also available in bulk packs (that is: 10 litres or greater) for water coolers for home or office use. Different types of water also exist, from naturally sourced sparkling mineral waters to purified 2 and specialty waters. Manufacturing facilities for purified water are generally located in close proximity to major water utility suppliers to minimise the transport distance from the water source to the purification plant.

In contrast, most sparkling mineral water manufacturing plants are necessarily concentrated in close proximity to high quality mineral springs where the product is bottled at source, usually in regional locations. The bulky and relatively low value of the product as well as the high costs of transport mean that the manufacturing and distribution plants need to be located where there are major population centres. The Australian bottled water manufacturing industry is currently in a growth stage.

Growth has been achieved due to the increase in per capita consumption of bottled water, albeit from a relatively low base compared with other more established beverages. As consumers become more health conscious and change their drinking habits away from CSDs to healthier beverages, bottled water would increasingly become their drink of choice. 1 2 All figures are for the year ended 31 December unless otherwise stated. Purified water is water that has been produced by distillation, deionization, reverse osmosis or other suitable processes.

Page 1 of 21 As a result, sales of bottled water are expected to increase. Of particular significance in the industry has been the large number of new products that have been launched and accepted by consumers since 2005, making bottled water a dynamic and fast growing industry. 1. Evolution of the Australian bottled water manufacturing industry 3 A relatively new industry, the Australian bottled water manufacturing industry evolved out of the soft drink manufacturing industry during the 1990s. Soft drinks are those that do not contain alcohol.

Soft drinks are distinguished from hard drinks—beverages such as distilled spirits, beer or wine—by the simple fact that they do not contain alcohol. Given bottled water is a category within the broader non-alcoholic beverage industry, trends impacting this broader industry also impact on bottled water. Total non-alcoholic beverage revenue in Australia was over $10 billion in 2009, including CSDs, bottled water, fruit juices, energy drinks, sports drinks 4, ready to drink teas and milk beverages. Table 1 shows the market share of bottled water within non-alcoholic beverages over the past 10 years and predicted market share to 2014.

However, Australia consumption of bottled water is significantly lower as compared with the total consumption of the top 10 global bottled water consuming countries. Table 2 shows Australia’s per capita consumption compared with that of the highest consumption per capita countries in the world.

When compared to similar markets, such as the United States, Italy, France and Spain, this data suggests that the Australian market has potential for a higher rate of consumption and sales growth before it reaches maturity. It needs to be noted, however, that the drivers for bottled water consumption can differ. The climate or lack of clean drinking water impacts on consumption levels in countries such as Mexico and the United Arab Emirates. However, in Italy, France and Austria, for example, consumption of bottle water is driven by fashion.

A recent report by the Global Earth Policy Institute concluded that global consumption of bottled water rose 56. 8 per cent to 164 billion litres from 2005 to 2009.  Projection figures for the industry were provided by industry experts at the recent Bottled Water Institute of Australia’s “Future Focus” conference. Beverage designed to help athletes rehydrate, as well as replenish electrolytes, sugar and other nutrients, which can be depleted after strenuous training or competition.  Historical growth in bottled water has been derived from increases in total consumption, helped along by strong customer acceptance of new products launched over the past five years.

The increase in the total Australian population together with an increase in per capita consumption of bottled water has contributed to this historical growth. (Compared with other developed markets, however, growth in the Australian market has been achieved from a relatively low base). These trends are expected to continue in the future. Bottled water will therefore continue to increase as a percentage of the non-alcoholic beverage market.

This product type is now in the mature phase of its life cycle. It has experienced low growth over the past five years as more offices and homes install water filters as a result of improvements in filter technology. To counteract the decline in bulk water sales to offices and homes, bottled water manufacturers have developed new distribution channels for bulk water products. Increasingly bulk packs are sold in petrol station forecourts and supermarkets. To date, manufacturing capacity within the industry has meant that manufacturers have been able to meet growing demand using existing manufacturing infrastructure.

Production stockpiling has not occurred which has helped manufacturers protect their profit margins. They have been able to achieve an increased weighted average price per litre as all production is generally sold in the year it is produced, reflecting the strong demand growth. The average price per litre has also been influenced by new product launches during the past five years, particularly the range of premium 5 waters and smaller, more convenient packaging sizes that achieve higher average prices.  Bottled water manufacturing

The Australia bottled water manufacturing industry has similar manufacturing and distribution processes to the non-alcoholic beverages industry from which it emanates. There are several sources of water for bottling, such as underground springs, wells and water storages. The source of water plays a key role in the quantity and quality of bottled water that is produced. About 25 per cent of all bottled water comes from water storages that is tap water) that is further treated before 5 Premium waters are generally higher priced waters which have higher levels of purity or are sourced from natural springs.

Bottling at an average price of $2. 40 per kilolitre. The other 75 per cent of water comes from groundwater at an average price of around $1. 00 per kilolitre. In some Australian states, permits are required to extract groundwater. Bottled water manufacturers often contract out the actual extraction of water to external providers. The price of water in Australia compared with other countries and with other products is very low. It has become the subject of debate due to diminishing water supplies caused by extended drought conditions in Australia.

To increase water prices would be politically contentious and many consumers would argue that because water is a basic human need it should be free. It is significant to note, however, that Australians pay a thousand times more per litre for bottled water than they do for tap water of similar quality. Once water has been sourced, the next step is to filter and purify the water to remove organic compounds such as metal ions. These compounds can contribute adversely to the taste and odour of the water and to bacteria that may cause health problems.

Some water, mainly mineral water, is naturally carbonated at the source. However, more commonly, carbonation of both spring and purified water takes place in the factory (where both the treatment process and bottling occur). For other drink types (for example sparkling wines or beer) carbonation is achieved naturally during the fermentation of sugar into alcohol. However, for sparkling water, carbonation cannot be achieved through a fermentation process, as no sugar is added. It is therefore achieved by injecting carbon dioxide, into the water under pressure.

The pressure increases the solubility of the water and allows more carbon dioxide to dissolve than would be possible under standard atmospheric pressure. When the bottle is opened the pressure is released, allowing the gas to come out of the solution, thus forming bubbles.  After the water has been treated, and in some cases carbonated, it is transferred (if carbonated, this transfer occurs under pressure) to a filling machine. Here, bottles or bulk containers are filled and then passed by conveyor belt to a sealing machine.

Once sealed, the bottles are packed in cardboard boxes for transport. There are currently 22 bottled water manufacturers in Australia certified by Food Standard Australia. Some manufacturers operate on a contract bottling basis only, providing bottling services to companies that have their own brands or to supermarkets which sell private label products . However, a number of these bottlers do have brands of their own which they sell.  Bottled water is provided to consumers in a variety of packages. These may be glass, PET plastic (polyethylene terephthalate) or polycarbonate bottles.

Water can be purchased in a range of single or multiserve bottles from various outlets and is available in bulk packs for water coolers for home or office use. The technology required to bottle water is quite basic and widely available. However, to achieve the volume of manufacturing required to be cost competitive, the level of capital investment is large. Key improvements in technology have been focused on quality control and automation to meet the need for greater manufacturing efficiencies and the strict health and regulatory standards of food standards that apply across all Australian states and territories.

Environmental concerns are rising in relation to the disposal of empty drink bottles. With the increasing amount of water being consumed, the issue of the resultant bottle waste has become significant. In Australia, of the 118000 tonnes of drink bottle plastic used every year, only 35 per cent is recycled. In South Australia, where consumers can redeem a deposit for drink containers, the bottles made up less than 10 per cent of the state’s rubbish, compared with 13. 4 per cent nationally.

Drink bottles also take up more space than other waste, comprising 38 per cent of total volume of litter. Recycling experts believe that the recycling of empty water bottles is hampered because most bottled water is consumed as a convenience beverage outside the home where recycling bins are not readily accessible. Following the success of reducing the use of plastic shopping bags it is thought that the introduction of a nationwide empty bottle deposit law would create the incentive to recycle bottles. This would also help to ease the burden on taxpayers who pay for the clean-up of litter. Private label products or services are typically those manufactured or provided by one company for offer under another company’s brand. Private label goods and services are usually positioned as lower cost alternatives. Page 4 of 21 3. Industry segmentation The Australian bottled water manufacturing industry has two clearly defined segments:  Still water – this segment accounted for 76 per cent of consumption volume in 2009.  Sparkling water – this segment accounted for 24 per cent of consumption volume in 2009. 3. 1 Still water

Still water is generally consumed for hydration and thirst satisfaction at home, in the office or while travelling. Convenience is a major factor in the growth of the still water segment. It is used:  as an alternative to other packaged beverages when consumers want to moderate their calories intake and seek an unsweetened, clean tasting and natural product. Water is the best and healthiest form of hydration as it is a fat and calorie-free thirst quencher;  when consumers are not satisfied with the aesthetic qualities (for example, taste, odour and colour) of their tap water.

Many people wish to drink something that is refreshing, clean and pure, and avoid certain chemicals used in the treatment of public water supplies, such as chlorine and fluoride;  when consumers require the convenience of bottled water for their refreshment. This is especially the case with the development of more widespread leisure activities and the expansion of travel, for both business and pleasure; and  for nutritional and performance benefits, such as near waters 7 and mineral water supplements claiming to have the nutritional components equivalent to a bowl of salad.

Sparkling water is generally consumed as a refreshment beverage mostly while dining out rather than for hydration or thirst satisfaction alone. In the last few years, supermarkets have started to stock premium sparkling water brands. 7 Near Water – also known as functional waters. These are bottled water beverages which have nutrients added, such as fruit juices, vitamins or minerals to enhance the positive health benefits associated with water. While experiencing declining growth, sparkling water is still showing some growth, albeit at much lower rates than still water. This reflects the refreshment beverage nature of sparking water which is generally consumed at restaurants and cafes rather than in the home.

The majority of the sparkling water consumed is comprised of premium imported spring waters, such as Eau de Vivre, which is the world’s premier sparkling water brand. As such, the average price per litre for sparking water is substantially higher than that of still water (see Table 6). This reflects the increased cost of manufacturing required to carbonate the water, different closure types required to retain the carbonation, the cost of imports and the premium nature of this product. The increase in average price over the projection period reflects estimates in foreign exchange movements. Foreign exchange xperts forecast that the current high levels in the value of the Australian dollar are not sustainable and project them to decline in the future. Distribution trends Bottled water is sold by manufacturers to independent wholesalers, including specialist confectionary and soft drink wholesalers as well as grocery wholesalers. Figure 1 below illustrates the current industry distribution channels.

In the past few years, retailers have been increasingly buying direct from the manufacturer to reduce the cost of goods by eliminating the wholesaler margin from their purchase price. This has been facilitated by improved information systems that now provide timely information to manufacturers for production planning, thereby enabling them to engage in direct sales to a larger numbers of customers. The increase in direct distribution has been most notable amongst major industry competitors. Major retailers want to purchase from fewer, larger companies.

Beverage wholesalers, however, still play an important role in distribution for smaller bottled water manufacturers. These smaller competitors generally have a smaller product range and are unable to meet major retailer demands for inventory management and direct to store delivery.  Revenue ($m) Comments Supermarkets use online ordering systems direct to manufacturers, bypassing wholesalers in general. Major growth in this channel reflecting convenience purchasing. Main outlet for the purchase of single-serve products. Dominated by higher priced spring and mineral waters, including imported products. Bulk packaged water is the main product through this channel. Placed in schools, sports clubs and other public places or venues. Niche value added brands only due to high transportation costs (e. g. exports) or specific to single distribution channels.

Convenience stores (including petrol stations) Hospitality Home and office delivery Vending machines Other Branding is an important differentiator in the bottled water manufacturing industry. Existing competitors that have established brand names have an advantage over new entrants who have to spend heavily on marketing for brand recognition. Sales in convenience stores have always been an important distribution channel for soft drinks. This importance is growing, not only for soft drinks but also for bottled water, driven by the trend in more frequent convenience shopping for ‘time-poor’ consumers.

Success in the convenience store channel is critical for any new product to succeed. If the brand recognition is achieved, it is often quickly followed with brand extensions, leveraging the brand to offer new flavours and packaging. Once consumer demand is established in the convenience store channel, the move into the supermarket channel generally supports maintenance of profit margins, considering that supermarket buyer power is reduced when strong product demand has been established.

Manufacturers have had to respond to significant changes in consumer buying behaviour. Product distribution, presentation and availability has had to match these changes in order to maximise sales. Increasing quantities of product are now distributed through convenience stores and petrol stations. For example, bulk water packs were once sold via direct sale to offices. However, as more offices have installed their own in-built water filters, this channel has declined and there has been a shift to bulk water sales through petrol stations and supermarkets.

A key strategy employed by non-alcoholic beverage manufacturers to lock out rivals is the placement of vending machines and refrigeration units in distribution outlets. This ensures that their products are stocked and presented for the best possible sales whilst making it difficult for competitors to get refrigeration space. The distribution outlet has to invariably agree not to stock competitor products as part of the terms of using the refrigeration equipment supplied. Vending machines are increasing in variety, size, style and sophistication, depending on where they are located.

Distributors in some locations, such as private or non-government schools, have worked with the manufacturers to introduce the use of smart card technology for payment and therefore avoid the need for cash. Similarly, in the hospitality arena, manufacturers have to tender for the supply of beverages to key entertainment and sporting venues. Once a manufacturer has secured a contract with a venue, their product has guaranteed sales for a defined period of time. Quite often, patrons are not allowed to bring in their own beverages for consumption or are limited in the amount they are allowed to bring in.

Hospitality, through restaurants and cafes, is the main distribution channel for sparkling waters and it is also common practice for venues to be locked into one particular manufacturer. Exports and imports represent about 5 per cent of industry production. These levels are not expected to change in the future due to the high cost of transporting the heavy weight and bulk of water. The Australian bottled water manufacturing industry is protected to some extent from the threat of water imports due to the high volume and low unit value of water, even though water with no additives is exempt from tariffs.

For water that has added sugar or other sweeteners, there is a 5 per cent import tariff. The main distribution channel for imported waters is cafes and restaurants that primarily serve premium sparkling waters. Bottled water is a growing part of the non-alcoholic beverages industry. While the broader non-alcoholic beverages industry is growing, bottled water is growing at a faster rate due to increasing awareness of health issues. Research shows that people want better tasting and healthier alternatives to many of the soft drinks and sports drinks currently available.

Market research surveys suggest that over 90 per cent of Australians consume too many sugary and caffeine-based drinks. As bottled water is part of this larger beverages industry, it is important to understand firstly, the trends impacting on non-alcoholic beverage consumption overall, as well as the trends specifically impacting on bottled water consumption. 5. 1 Non-alcoholic beverages Consumption of non-alcoholic beverages in Australia increased from 179. 7 litres per capita in 2005 to 228. 5 litres per capita in 2009.

Per capita consumption trends for all non-alcoholic beverages generally follows consumption patterns in the United States. On that basis, there are still significant opportunities for growth in all non-alcoholic beverages, including CSDs. Currently, Australian per capita consumption is 63 per cent of the US consumption level. Increasing awareness of the obesity problem in Australia, as well as the firmly established focus toward health and wellbeing, is ensuring strong future growth for ’healthy’ beverages. This has resulted in the introduction of sugar-free or diet CSDs.

However, many older Australians are not switching to sugar-free versions of the CSDs they used to drink. Instead, they are moving to alternative beverages. Hence the general decline in the consumption of CSDs has also been accompanied by a rise in the consumption of beverages that are perceived to be healthy, such as fresh fruit juices, flavoured milks, energy drinks, sports drinks and ready-to-drink teas. Changing lifestyle trends, health consciousness and a growing ‘cafe culture’ have also contributed to an increased demand for these alternative beverages.

For example:  Freshly squeezed fruit juices, with fresh flavour attributes being preferred by the consumer. With the emergence of juice bars and a greater focus by manufacturers in establishing juice brands, consumption of juice products has increased. In the United Kingdom and United States, juice bar sales represent about 5 per cent of total juice sales in those countries. However, in Australia, juice bars are still only an emerging distribution outlet and offer a good opportunity for new product development and growth. Ready-to-drink teas, with their antioxidant properties being promoted, have become a popular ‘health’ drink. The Australian market for this product is currently 2 million litres per annum and predicted to grow to as much as 20 million litres over the next few years, particularly as the Australian population ages. Product development includes a variety of flavoured ready-to-drink teas.  Flavoured milk is a growth beverage. Data shows that Australians are each drinking, on average, nearly 0. litres more flavoured milk per annum than a year ago. Perceived health benefits of milk have contributed to this growth, and this is expected to drive continued growth in the future. Milk sales have increased by 6. 7 per cent with low fat brands performing particularly well. Last year, each Australian, on average, drank 9. 5 litres of flavoured milk – more than the per capita figure for any other country.  Both energy 8 and sports drinks 9 are growing products in a society that is increasingly health conscious and aspiring to be more active.

Energy drinks have had double digit growth since 2006 and the sports drink market has grown 14 per cent on volume and 20 per cent on revenue compound annual growth over the last three years. Beverages that are designed to give the consumer a burst of energy by using a combination of methylxanthines (including caffeine),vitamins and herbal ingredients.  Purified water with additives similar to those of sports drinks with the aim of providing hydration during sport.

Bottled water consumption has increased significantly over the past six years, but is still significantly below consumption levels of other developed countries including Europe and the United States. This indicates further opportunities for growth in Australia, primarily at the expense of CSDs and fruit based drinks, given the rising concern surrounding the link between CSD consumption and obesity, especially in children. One possible reason for the lower per capita consumption of bottled water by Australians is the relatively good quality of tap water available.

Tap water contains fluoride ions which have a positive effect on tooth decay. The drinking of bottled water, which is distilled 10 to remove element such as fluoride, is believed to be contributing to an increase in the risk of tooth decay. However, most people continue to cook with tap water and this should provide sufficient fluoride to prevent tooth decay. Alternatively, some people wish to avoid exposure to fluoride, particularly systemic ingestion of fluoride in drinking water, and may choose such bottled water for its absence of fluoride.

Nevertheless, surveys show that there is an increasing concern about the quality of tap water in Australia and that this is driving some growth in bottled water consumption. Growth is further supported by concerns about alcohol consumption and associated drink-driving accidents which has encouraged the consumption of non-alcoholic beverages, such as bottled water, when dining out. Females consume about 58 per cent of all bottled water in Australia. Young people, in particular females aged between 18 and 35 years, are the largest consumers of bottled water.

In general, bottled water consumers are more health conscious and socially aware. Studies have found that younger generations are far more diligent in drinking their recommended daily intake of water and men are less likely to think about water consumption on a daily basis than women. In addition, for young women, image is an important factor in determining consumption behaviour.

Distillation is the process of eliminating impurities by heating a liquid until it boils, capturing and cooling the resultant hot vapours, and collecting the condensed vapours. Due to the increase in health consciousness, water has also become a fashion accessory. Some consumers now carry a bottle of water with their mobile phone and iPod. Packaging is therefore critical. Small plastic bottles are preferable for many consumers as they are re-sealable, perceived to be more contemporary and can fit in car-cup holders. The convenience factor means that the most popular pack size is around 600 ml, as shown in Table 8 below.

This is an important consideration for convenience when travelling for business or leisure. In fact, it is the convenience aspect that has to some extent, driven the growth in bottled water. Increased future consumption of bottled water in the home is likely to result from continued growth in household disposable income in Australia.

This disposable income growth will also sustain growth of takeaway foods and restaurant meals, both of which tend to increase consumption of bottled water and fruit juice. However, while currently experiencing positive growth, total household expenditure on consumable goods is expected to slow in the future. This will adversely affect growth in discretionary spending on all beverages. However, a factor which contributes positively to growth in the sales of bottled water is the climate. The gradual warming of Australia’s climate is expected to support further growth in water consumption.

Bottled water is well positioned to benefit from the shift in consumer preferences towards healthier and natural drinks. Spring water is particularly popular in Australia because it is perceived to have come from a natural, pristine environment. This is reinforced by marketing that emphasises the pure and natural image of water. As well as purchasing more bottled water, consumers are also prepared to pay more; with 69 per cent of consumers recently surveyed believing quality is more important than price. New product development activities are targeting changing consumer lifestyle needs and the trend towards purchase convenience.

There are now numerous bottled water brands available in Australia, from international beverage brands to boutique ‘rain farms’. The huge variety of waters and sources means that the bottled water market has a broad demographic reach. According to a recent consumer survey, at least 99 per cent of all Australians have tried or purchased bottled water in the last 12 months. The Australian bottled water manufacturing industry has pursued sales growth by developing products for niche markets. Smaller producers can supply relatively small segments with specialist or premium products.

Given the continuing concern about the use of artificial colourings, flavourings and preservatives, the industry is expected to develop a range of premium products better suited to the demands of the health conscious consumer. For example, pet owners can now buy ‘vitamin-fortified’ water specifically formulated for their canine companion. 6. Costs and gross margins Bottled water has the highest profit margins of all non-alcoholic ready-to-drink beverages. This is due in part to the strong growth that the industry has achieved.

Manufacturers are also able to sell all production in a year. Industry rivalry is relatively low, particularly as the major competitors are focused on supplying through different distribution channels. A percentage breakdown of costs in 2009 is as follows:  55. 2 per cent for purchases of supplies;  26. 8 per cent for marketing, distribution and selling costs;  12. 1 per cent for wages;  4. 1 per cent depreciation and administration costs; and  1. 8 per cent for utilities and rent. A net margin of 16. 3 per cent was achieved by the industry in 2009. Page 10 of 21

Purchases include water supplies, labels and other packaging materials such as glass and plastic resin bottles and closures which are generally purchased on 5 year contracts. One of the key costs is polyester (PET) resin for bottles; however, there is no forward market 11 for PET resin. As a commodity, PET resin has been subject to price rises over recent years, as the price of oil has increased. This is reflected in the minor decline in gross and net margins experienced by manufacturers in 2009, as shown in Table 9 below. Overall, however, the cost to create bottled water is relatively inexpensive.

Therefore, water is a more profitable product than other nonalcoholic beverage categories.Current levels of profitability are expected to continue. However, it is noted that as sales through the supermarket distribution channel increase, so too will the buyer power of these large retailers and this may have a negative impact on profitability levels.

At a recent presentation, ABL’s managing director, Tom Dwyer, commented: ‘The increasing power of major retailers will squeeze the small competitors in both the food and beverage businesses. Without modern technology, smart systems and economies of scale, it will be very difficult for small manufacturers to generate an acceptable return on capital employed and maintain current levels of profitability. ’  Industry key success factors and future predictions Industry experts summarise the following areas as critical to future success in the Australian bottled water manufacturing industry:  Distribution and lacement: Control of distribution channels through an established and comprehensive network of distribution outlets to gain access to end consumers is essential to ensure timely delivery, low costs and maximised product reach through effective placement. If not operating in a niche market, manufacturers must become a major competitor in the wider market. In general, a major competitor needs to have at least 20 per cent share of at least one distribution channel. Effective market orientation, product promotion, and advertising: Market research, product development and speed-to-market are important capabilities.

Successful competitors need to be able to clearly segment the market and develop products that reflect the requirements of different customer groups. The ability to effectively promote their brand and provide label and packaging design is also important. First movers with effective distribution have an advantage in that new competitors need to spend heavily on marketing to catch up. The effectiveness of strong advertising, a sophisticated distribution chain and a focused strategy is critical in influencing consumer choice.

Strong brand names contribute to the appeal of bottled water as an accessory as well as building a product’s reputation for quality. Having these attributes allows manufacturers to win market share within particular consumer segments and charge premium prices. Economies of scope: Breadth of product range enables efficiencies in distribution, marketing and administration. Such efficiencies are gained when a competitor uses its manufacturing process to produce a wide range of beverage brands (and possibly also complementary products) which are provided as part of a total solution to the various distribution channel customers.

Being a total beverage provider to major customers is becoming more important as these major customers are increasing in concentration and prefer to deal with fewer larger manufacturers. Economies of scale: Economies of scale are very important for a low value product since high volumes must be produced and sold to maintain profitability. Manufacturers must have effective cost controls and access to the most efficient manufacturing and distribution processes, tracking technology and techniques to monitor sales and respond accordingly.

Economies of scale are particularly important for competitors who have undifferentiated products. Since unit manufacturing costs are an important element of profitability, it follows that economies of scale, based upon critical mass, are also important. Some manufacturers have commenced contract bottling for smaller industry participants in order to secure manufacturing volumes.  A forward market enables producers to lock in prices for a defined period of time, thereby providing certainty of costs.

At the recent annual Australian Beverage Congress, Alan Vaughan, an independent industry expert of 30 years’ experience, presented an extensive insight into the bottled water market and its future direction. Vaughan concluded his presentation with this comment: ‘The Australian and global beverage industries are in a period of growth and major transformation. In general, there has been a switch away from carbonated drinks to beverages with less sugar and additional functional benefits. To the younger customer, the older brands are looking a little staid, with bottled water and energy drinks viewed as more cool and exciting.

This is reflected in marketing and advertising campaigns. People these days are working harder and have greater commitments. Bottled water and energy drinks are replacing other traditional beverages because they provide refreshment as well as a functional benefit, such as re-invigoration, replenishing hydration and energy levels, improving mental alertness and enhancing concentration. These beverages appeal to everyone from partygoers to office workers, through to truck drivers. ’ C. Industry competition 1. Basis of competition The basis of competition for non-alcoholic drinks are primarily price, convenience and taste.

The main basis of competition by which bottled water competes against other beverages, such as CSDs, fruit drinks, sports drinks and energy drinks, is health appeal. Given zero or very low sugar content, both still water and near waters have successfully developed an image of being healthier than other drinks and this has driven growth in the industry. To a degree, home filters also serve as a source of competition, although mainly against the bulk water segment. Tap water is also an external competitor, with a clear advantage in price. Beverage marketing and display are beginning to undergo dramatic change.

There will always be the major conventional media promotions, but the consumer market is becoming much more time sensitive and there is a high level of competition from substitute products, mainly other non-alcoholic beverages. The major ways for industry participants to differentiate and compete successfully include:  Branding, image and breadth of product range: Recent growth in bottled water is related to the successful positioning of a number of brands as fashion accessories. Both media support behind the brand and the design of the bottle including the label contribute to the appeal of a product.

Breadth of product range is also important as concentration of major customers continues. Large retail buyers (both in the supermarket and convenience store channels) prefer to deal with large manufacturers or suppliers that can provide a large product range. Packaging: Convenience is a key benefit of bottled water. Hence bottle size, shape and functionality form a basis of competition. Bottles are designed with particular uses in mind, for instance some water bottles have a pop-top cap for ease of use when playing sport or training.

Distribution coverage: An ability to satisfy the needs of retailers, and obtain favourable terms such as promotional programs and stock positioning is important. Market share dominance of distribution channels is important as it allows manufacturers to diffuse the power of large buyers and maintain strong profitability levels. The ability to secure shelf space in convenience stores is also important, given that success in the convenience store channel is a precursor to getting new products into supermarkets. Taste: Especially at the premium end of the market, taste can be a basis of competition for both still and sparkling waters.

Use of market data: Access to and use of market data is also important. The larger the competitor the more likely they are able to afford retail check-out scanning data to understand what its customers are buying. In this way, manufacturers can ensure retailers replenish their stock as required. This provides larger manufacturers with an advantage of responsiveness and flexibility as they make use of this information and respond quickly. The Australian bottled water manufacturing industry is dominated by large beverage manufacturers.

Two of the major competitors are subsidiaries of global food and beverage conglomerates that are also major competitors in the non-alcoholic beverage market. Table 10 summarises the market share of the industry competitors in 2009. It should be noted that Australian Beverages Limited (ABL) is not currently in the Australian bottled water manufacturing industry, despite being a major competitor in the Australian non-alcoholic beverage market.  The industry has grown significantly to date. To keep industry profitability levels relatively high, the industry’s major competitors have tended to dominate one or two distribution channels only, rather than all channels. In this way, they hope to avoid strong head-to-head competition. This has assisted in keeping the overall level of industry rivalry relatively low to date.

However, this is expected to change in the future as consumption growth begins to slow. Several new competitors have entered the market over the last five years. Moreover, industry consolidation has occurred. Major industry competitors have acquired smaller competitors to increase economies of scale, scope, market share and profitability. In 2009, the four largest competitors accounted for approximately 82 per cent of industry revenue. No major change is expected to this trend in the future as further consolidation will be difficult due to the relatively high market shares held by the four major companies.

Regulatory concerns about restriction of competition will also affect further consolidation. Two of the competitors, Butlers Corporation and International Beverages, are owned by global food and beverage conglomerates that use Australia as the base for their non-alcoholic beverages operations in Asia. Industry experts believe that acquisition of either of these companies, to be used as a mode of entry into the industry and gain significant market share, is not possible. The parent companies will be unwilling to sell their Australian operations. The major industry competitors are summarised below.

A wholly owned subsidiary of a large multi-national listed company, Butlers Corporation commenced operations in the United Kingdom in the 1800s as the official chocolatier to the King. Operations were expanded throughout the 20th century to include other types of confectionary, biscuits, snack foods and non-alcoholic beverages. Geographic expansion was also undertaken. Butlers Corporation is now a global giant in its chosen products. Butlers established its operation in Australia during the 1950s. It has held the majority market share in the Australian confectionary, non-alcoholic beverage and snack food industries for the past 20 years.

The company entered the Australian bottled water manufacturing industry during the 1980s through the acquisition and consolidation of several state-based water manufacturers. This helped Butlers to become the first bottled water manufacturer to have national distribution. Page 13 of 21 Butlers has strong distribution capabilities given its broad product range. It is the largest supplier to convenience stores and the second largest to the hospitality distribution channels. Growth in its market share of the supermarket channel has also been strong over recent years, in particular through its well known still water brand ‘Olympus’.

The company also holds significant market share in the sparkling water segment, having obtained the Australian license for Eau de Vivre, the worlds leading sparkling water brand. One of the areas of focus for Butlers is innovation for all its beverages. This includes a large of number of soft drinks such as flavoured mineral waters, flavoured milks and fruit juices. Its broad product offering that includes complementary snack products, has been leveraged to achieve strong sales in convenience stores and through vending machines.

Hydrate Water is a privately owned company that originated in 1993 in Queensland. The company has access to natural springs in Queensland, New South Wales and Victoria, and a long term agreement with key water utilities in these states to access water when required. It distributes nationally from ISO 9002 quality accredited manufacturing facilities in Queensland, New South Wales, Victoria and Western Australia. The company has products in the sparkling and still water segments. The products include energy drinks, fruit juices and a limited range of high quality carbonated soft drinks.

It is also the manufacturer of the leading brand of still water, H2O, that is sold through the supermarket distribution channel. Hydrate is seeking a stronger presence in convenience channels. Its business model focuses on using its funds to support retailers so that the retailers can offer promotions, rather than spending on direct consumer advertising. The company has recently begun investigating the use of scanned retail data to monitor sales trends and adjust production volumes accordingly.

This investigation into scanning data is due to having run out of inventory at the end of last financial year when the manufacturing plant was closed for annual cleaning and maintenance. As a result, the company had lost some market share. A number of the company’s water products are targeted to the sporting and energy drink consumer. One of its best known brands, ‘Viva! ’, has a 72 per cent market share in sports water products. Hydrate Water has been able to leverage the high brand recognition of ‘Viva! ’ to successfully introduce flavoured water.

Similarly, Hydrate Water sells the leading brand in sparkling mineral water and has again leveraged this brand by introducing a number of flavoured mineral waters, including diet drinks. Both these initiatives have resulted in above average market growth for the company. The company is particularly well known in the industry for its packaging innovation and engineering design capability. Hydrate Water developed ‘Pop Tops’ – small plastic bottles that were very successful with young children as they fit perfectly into lunch boxes and have the advantage of being re-sealable.

The ‘Pop Top’ range increased its bottling turnover by 50 per cent. This product won the coveted Australian dietician award for ‘Best New Product’ when launched. It also received the Australian Health Foundation endorsement for its diet drinks. In addition, the company has been commended by dieticians for promoting products that address the increasing concerns of childhood obesity linked to CSDs. Hydrate Water was also the first company to introduce stackable bulk water packs for sale through supermarkets.

The management team at Hydrate Water have extensive industry experience, having a collective 80 years in the industry between them. Operations manager, Simon Miles, is well regarded in the industry and is currently the chairman of the Bottled Water Institute of Australia. Current owner, Jack Wells, has indicated he wishes to retire in the next five years, and has been grooming Simon Miles as his successor. An offer for acquisition was received from International Beverages last year, but Wells turned down the offer as he did not want to sell the Australian business he established to an international company.

International Beverages is the wholly owned subsidiary of a large multinational company and sells fruit juices, energy and sports drinks, water and soft drinks. Its initial entry into the Australian market was through fruit drinks. During the industry consolidation in the 1990s, the company entered the bottle water manufacturing industry through acquisition. Through its parent company, International Beverages has the licence to sell the world’s leading brand of bottled still water Aqua Grande, in Australia and New Zealand.

The company also sells the imported sparkling water brand San Vitale one of the most popular mineral waters bottled at the source. This product, in particular, has given the company a strong share of the hospitality channel. Company growth has been driven by new product development and product extensions which have leveraged existing capabilities and focussed on specific consumer requirements. The company’s latest successful product launch is calcium enriched water targeted at aged care facilities and nursing homes for women at risk of osteoporosis, a bone degeneration disease. 2. Fountain Springs Pty Limited Fountain Springs is a Sydney based company that has access to a naturally rising spring located in the Snowy Mountains in southern New South Wales. To date, the company has been unable to secure distribution and shelf space in major Australian retail outlets. This is because its product range is limited to only two pack sizes, 600ml and 2 litres. An export strategy was therefore developed with the assistance of the Australian Trade Commission (Austrade). Fountain Springs is now Australia’s largest exporter of spring water and better known overseas than in Australia.

In the past two years, the company’s bottled water exports have grown sales revenue significantly, having secured a contract with the major UK supermarket chain Besco. Growth is also expected through its expansion into UK convenience stores and petrol station channels which is planned for later this year. The UK was the first export market for Fountain Springs where it was able to leverage the perception of Australia as ‘clean and natural’. Since developing this UK market, the company has also been successful in developing business in the Middle East, South East Asia and the United States.

Given the cost of transport to these export markets, Fountain Springs has a niche strategy and sells only premium grade water in the 600ml and 2 litre pack size at a higher price. However, market research shows that there is still very low consumer awareness of its products and brand in Australia. To raise awareness, a cause-related marketing strategy has been adopted. Under this program, the company donates a percentage of its profits to partner charities in its chosen markets.

This has been central to the growing market awareness of the company in its selected markets. It leverages the networks and relationships of its partners to develop new business and sales. As a result of the company’s success in overseas markets their brand ‘Aqua Caliente’ is now being stocked in selected school canteens in Australia as a natural alternative to sugar laden CSDs and fruit juices. Given Fountain Springs did not have the capability to distribute directly to schools, it entered a distribution arrangement with a school food provider.

The company also altered its cause-related marketing strategy whereby it would donate a proportion of all bottled water sales in each canteen to the school. The money was to be used by the schools to purchase new equipment or facilities for the school. Despite the success of its export strategy, the company has had mixed financial results over the past few years. This has been largely due to set up costs associated with its export business and distribution arrangements in the UK. It is rumoured that the company is in financial difficulty.

Rumours abound that bankers have been requesting monthly audits of the cash position so that the company can maintain its line of credit. In addition, it is believed that its major UK supermarket customer, Besco, is demanding price reductions therefore squeezing margins for the company. Poor hedging of foreign exchange transactions with the company’s UK debtors has also contributed to its declining financial position.

The antecedent company was established by a group of enterprising pharmacists who had previously made carbonated soft drinks in their pharmacies which were then offered for sale in sealed bottles. The first manufacturing plant opened in Sydney in 1938. Business began slowly, but the arrival of American soldiers in Australia in 1942 had a significant impact on both sales and market acceptance of carbonated soft drinks. Australian Soft Drinks initiated its move into non-carbonated soft drink beverages in 1984 when it began manufacturing fruit drinks. This followed the acquisition of a fruit juice manufacturer in Victoria.

The fruit drinks’ business expanded nationally over the next 10 years. In 1990, Australia Soft Drinks entered the milk drink market with the purchase of manufacturing facilities from a dairy co-operative. The company officially changed its name to Australian Beverages Limited upon listing on the Australian Stock Exchange (ASX) in 1996, to reflect the broader beverage base of the business. In the years since its ASX listing, ABL has adopted a multi-beverage strategy wherein its product range has been expanded to cover all categories of the non-alcoholic beverage market.

However, bottled water remains outside this product range. The company has also moved into the manufacture and distribution of snack food products through its acquisition of several small businesses in 2004. It aims to strengthen distribution relationships with convenience stores and hospitality channels. These developments have resulted in ABL’s revenue composition to change from 90 per cent CSD-based in 2000 to 68 per cent CSD-based in 2009. The aim is to further reduce dependence on CSDs by 2015.

ABL intends to increase its market share of non-CSD beverage products so that CSDs will represent less than 50 per cent of company revenue as part of its multi-beverage strategy. Business strategy ABL’s vision is ‘To satisfy Australia’s thirst by being a manufacturer of non-alcoholic beverages for every occasion in every location’.

It is hoped that ABL’s position in the snack food market, which it recently entered via acquisition, would be made stronger by another potential acquisition in line with the general consolidation already taking place in the food and beverage supply industry in Australia. Such an acquisition would add further breadth to the company’s total product offering to its customers in all major distribution channels. Of all the competitors, ABL would provide the greatest share of beverage and snack foods.

By offering a broader product range, ABL expects to leverage its market power in soft drinks to sales of related products. It also aims to control product supply, apply discounts, introduce loyalty rebates or promotions, and secure conditions of use on supplied refrigeration equipment. As more Australians now drink different beverages at different times of the day, Dwyer highlighted his belief that a modern beverage company needs to be highly flexible in manufacturing, distribution and marketing as well as be able to operate in all product areas.

Introduction

The transportation industry is an of import factor in the economic sciences of the states ; more than 80 % of transportation goods are by sea. Nowadays, there are different types and size of vass to cover the demand of markets, from little 1s that marketed in rivers and inland, until superstructure that can incorporate over than one hundred thousand dozenss of stuffs. However, all of these ships have lifep and they must complete their lives in safety conditions to the people and friendly manner with the environment.

To accomplish the above, ship recycling industry has developed patterns to have vass from everyplace recycling stuffs that could be utile in others Fieldss and obtaining of import net incomes. In fact, ship breakage concern has been dining in recent period and concern is set to increase ; nevertheless, in most instances, ships are sold to developing states because they have cheaper labour but, on the other manus, they have lowest degrees of quality. The local environment and the safety of ship paces workers in these topographic points are in argument today because the industry has had significant losingss too bad. For illustration, in Bangladesh during the last 10 old ages, 100s of work forces in the 70 breakage paces have died or been maimed or poisoned, about all people affected from the hapless communities in the state. ( Vidal 2012 )

The ship recycling industry involves a figure of stakeholders with different concerns, the job have been discus from some old ages but today seems to be more present in forums of international maritime community and duly in International Maritime Organization ( OMI ) . Furthermore, in 2009 IMO adopted the Hong Kong Convention for the Safe and Environment Sound Recycling of Ships, the convention lays the footing for ships to be dismantled in conditions of safety for workers and the environment.

This research will first explicate what a Ship recycling is, and so look at the place of stakeholders. Second, the essay will give aˆ¦aˆ¦ . Finally, the Hon Kong Convention will be considered

Background ( where – by whom – state of affairs in developing states )

Justification ( importance )

Organization

Thesis statement

Current state of affairs of ship recycling industry

After 2008 fiscal crisis the market collapsed and evidently affected the transportation industry. Banks do non desire to finance transportation, hence, the industry has forced to believe in new scheme such as sale some vass to transport recycling industry because it is non utilizing and ship proprietor were passing many resources in care. Ship interrupting activities have taken topographic point chiefly in developing states because offer less limitation to the activity, every bit good as lower costs. The major states that receive vass to recycle are India, Bangladesh, China, Turkey and Pakistan. However, India, Bangladesh and Pakistan were chosen as illustrations to be analyzed in this research paper because China and Turkey have improved installations in this field.

In India, the reaching of the Blue Lady ( ex-Norway ) causes a serious treatment because it has onboard a considerable sum of asbestos and other risky stuffs. The Supreme Court has decided demand major issues and ordinances for administration of the ship recycling industry. In this state, the ship recycling activities are chiefly carried out at Alang which is situated on the West seashore and there are 175 active paces. The chief advantage of this topographic point is the tide which vary month to month to utilize the beach. Merely in Alang, the industry recycles about 600 vass per twelvemonth and there are more than 20 licencing organic structures that regulate the industry. At least 100 paces are certified with ISO 14001/9001 and OHSAS 18001 and at least 50 paces have ISO 30000. Furthermore, Indian governments refuse to let ships to be scrapped on its shores unless they have been certified as gas free, in other words, the vas must be checked for any potentially explosive pockets of gas. This step was positive because helped to drop Numberss of detonation accident but unluckily, they besides lost a batch of concern.

The Bangladesh ship recycling industry has an environmental judicial proceeding by Bangladesh Environmental Law Association ( BELA ) , giving a power signal that the environmental jobs are of import issue for the state. The supreme tribunal of Bangladesh banned the working of the recycling industry for 10 months in 2011 and directed the Shipping Ministry and Ministry of Environment to border “ Ship Recycling guidelines ” within six months. In this state the activity is a important economic activity and provides employment for over 500,000 people, every bit good as contributes of 1000000s of dollars in footings of direct and indirect revenue enhancements. Today, the vass that arrive there besides require being gas free certification for hot plants. In the seashore of Bangladesh there are about 55 ship recycling paces and any ship approaching inwards for recycling is required to obtain a “ No Objection Certificate ” . The ordinances here are non plenty rigorous as India ; nevertheless, of the 55 breakage paces, at least 25 have ISO 14001/9001 and OHSAS 18001, including ISO 30000. There is an of import measure sing the degrees of Bangladesh some old ages ago.

The instance of Pakistan is unluckily worst, the paces there have really low criterions sing to human conditions and industrial rights. There are about 25 ships recycling paces but the inwards formalities are small and vass are beached without any greater demands. In other words, any proprietor with money may happen disponibility in Pakistan beaches. In add-on, none of the paces have ISO-certified, likely because there are a assortment of factors like possible terrorist act, unstable authorities among others, that non allowed better industry competencies and still worst, it could be continue utilizing old patterns and methods.

European Union has proposed Torahs saying that ships registered in Europe should be broken up merely in accredited paces run intoing rigorous new environmental guidelines ( Vidal, 2012 ) , so selling ships to developing states for destruction or at least paces that do non hold these types of exigencies could be violate European jurisprudence and understandings.

Workers conditions and environment

Some

Environment ( Places used )

Probably the worst portion in environment sense is the topographic point that normally uses this activity in mentioned states that they have non basic criterions for working like the instance of beaches and coast side.

Interrupting ship on beaches creates an unacceptable environmental jeopardy.

Worker status ( risky- personal equipment )

In fact, McCarthy explain that after 10 months out of the market, Bangladesh tribunal announced that the state will open once more for concern if it better some points and achieve criterions for yard workers.

workers put on the lining their lives for little more than one euro a twenty-four hours.

Ships are scrapped in petroleum working conditions

statistis shows that on norm, one worker dies in the paces a hebdomad and every twenty-four hours a worker is injured.

Workers are easy replaceable to the paces proprietors: if one is lost they know another 10 are waiting to replace him.

Many workers do non hold entree to basic personal protective equipment such as difficult chapeaus, baseball mitts and Googles for steel film editing activities. Many have been killed and 1000s injured working in unsafe conditions. it is necessary range the end of nice working status for all.

Injury and toxic condition ( Dangerous stuffs such as asbestos, lead pigment, heavy metals, PCB ‘s )

Guaranting armored combat vehicles and holds are free of toxic gases before cutting hull home bases

High cost of take these stuffs.

Suppliers from developing states are still bring forthing equipment and building parts with asbestos

Harmonizing to Lloyd ‘s list ( .. ) although asbestos usage technically holding been banned since 2009, merely five of the six types of asbestos are covered by jurisprudence.

There is a hazard of paying out big amounts of money in the signifier of compensation to crew members and mend yard workers unaware they are being exposed to risky stuffs.

Old ship contain more toxic stuffs

the removal stuff is soiled and unsafe work, it should go on under rigorous safety criterions

1.3m metric tons of toxic stuffs on board terminal of life vass are sent each twelvemonth to Chittagong and other shipbreaking paces in South Asia from EU entirely, with incalculable hazards to workers

“ Explosions of remnant gas and exhausts in the armored combat vehicles are the premier cause of accidents in the paces. Other accidents are caused by falls because the work forces are non given safety harnesses or workers being crushed by falling beams or home bases, or electrocuted ” .

“ The paces re-use ropes and ironss recovered from the broken ships without proving their strength. Fires, gas detonations, falling steel home bases, exposure to toxicants from sand trap oil, lubricators, pigments and lading swills have left 1000s with repiratory diseases ” says Shahin.

Hull cut

When the hull of a ship is cut unfastened, pollutants such as heavy metals and oils are released. These toxic substances seep into the sand and contaminate land H2O that it is impossible to clean up.

Coordinated international attempts ( stakeholders )

Hong Kong Convention

In 2009, the IMO adopted the Hong Kong Convention for the Safe and Environment Sound Recycling of Ships was adopted in May of 2009 ; nevertheless, merely five states have signed. There are who say that in 2020 could be into force, nevertheless it is hard to back up because there are many states, members of the International Maritime Organization, that have they ain ordinances and they are non realy interested in this subject because it is non affect them. In adition, merely one state of the denominated shipbreaking states, has ratificated the convention. Harmonizing to McCarthy ( aˆ¦aˆ¦ . ) in the Tradewinds Ship Recycling Forum, 150 shipbreakers harmonizing base on balls from 60 % of European Union flagged ships that were sold to India, Bangladesh and Pakistan ; to 0 % .

Attempts to increase consciousness in marine equipment to workers, every bit good as rise quality enfranchisement of the absence of risky stuffs such as asbestos

Many organisations have expressed concerns about

ship recycling paces will be required to supply a “ ship recycling Plan ” to stipulate the mode in which each ship will be recycled.

International Maritime Organization ( IMO ) . ( green passport and gas free enfranchisement )

IMO has introduced a Green Passport ; which involves maintaining and stock list of risky stuffs throughout a ship ‘s life. Then, ship surfs will cognize what they are covering with when they come to undertake the vas. This guidelines is voluntary and applies merely to new ships.

They promote safer and more environmentally friendly direction of ship recycling industry.

IMO Guidelines on ship recycling “ Gas free for hot plants ” enfranchisement which urges recycling provinces to present compulsory processs.

Ship surfs association

The ship surfs association is concerned about the effects of Hong Kong convention on their net incomes and sustainability. They receive force per unit area from public sentiment and environmental groups because there is a high degree of accidents and musk hogs conditions in ship recycling paces. For this ground, they are disquieted about the resources and they are seeking to drop the accidents.

Ship proprietors

The ship proprietors considers appropriated count with incentive plan in order to implement green recycling and are concerned about steps on the economic facets for the transportation industry. They are besides wants to be co-ops with the safe and the environment but aˆ¦

International Labor Organization ( ILO )

The workers conditions are unstable, the occupational wellness and safety of workers in ship paces should be improved including the proviso of safety equipment and handiness of medical attention for workers. They give guidelines advise on the usage of protective equipment when covering with risky stuffs, nevertheless, every bit good as IMO guidelines are volunteers.

For ILO, the Hong Kong convention is an of import understanding to do ship interrupting nice work.

Non-government organisations ( NGO ‘s )

The Non-government organisations are likely the most utmost in requires that the beaching method to be banned and all ships sold for trashing should be cleaned of toxic stuffs before arrive to shipyards. Further, this demand complements the Convention on the control of transboundary motions of risky wastes and their disposal.

There are lay waste toing effects of ship recycling on the environment and on the rights of workers. They consider that Hong Kong convention is in the right way, but non strong plenty to be really effectual. They want see rapid and drastic steps and consequents alterations.

Table ( illustrate and explain impact of Hong Kong Convention )

Analysiss – Measures

is possible that the International Maritime community do non hold an truly involvement in this subject because it is non a planetary job and merely impact a few developing states. Furthermore, India, Bangladesh and Chinas are independent states and they have their ain ordinances

This could be a power ground why the Hong Kong convention is non ratified for many states and worst, it will be non at least in the close hereafter.

It will be enter into force 24 months after the day of the month on which 15 provinces, stand foring 40 per cent of universe merchandiser transportation by gross tunnage

there is besides a mix of responsabilities because this activities are done in land and involve most job about workers ( ILO ) , wellness ( ) and environment ( ) than safety of life at sea and oceanclaning.

but non ever is bad, in adition in 2003, representatives of authorities, employers and workers organisations from heavyweight ship interrupting states Bangladesh, China, India, Pakista and Turkey adopted ILO Guidelines on Safety and Health in ship breakage.

Why a state in peculiar could be sign a convention if it do non hold relation or job in this sense. It must appeal to the societal duty.

Human rights

Net incomes and sustainability of the industry

Useful stuff is sold for recycling

Employment

Improve criterions ( recommendations )

Demand to see immediate alterations in ship recycling activities toward better worker safety.

There are many steps that could be considered ; nevertheless, it is non plenty give recommendations or compose in any jurisprudence and ordinances. The truly of import is heve the capacity to enforcement. Some of the most basic steps are personal protective equipment due many workers do non hold entree to basic safety equipment such as difficult chapeaus, baseball mitts and goggles for steel film editing activities. There are 1000s of workers injured yearly and some of them have been killed for this ground. Another basic step is risky stuffs should be removed before trashing. In other words, take toxic stuffs from new and chiefly old ships that contain asbestos and others substances such as lead pigment, heavy metals and PBC ‘s. The following 1 is complete the execution of the gas free certification, it is necessary because look intoing vass and their close infinite can lend to avoid explosive gas and attendant bead in the Numberss of detonation accidents. Finally, the last point necessary to follow in short term is improve handiness of medical attention for workers because the existent attempts to shipbreakers association unluckily are non sufficient to the sum of workers that daily suffer accidents and lesions.

Ship recycling industry instantly stops ship interrupting on beaches. Ship proprietors for recycling their ships merely at green installations that do non interrupt ship on unfastened beaches.

there specific step from the states involve to better criterions

Medical attention

Decision

Develop the activity in friendly manner and better criterions to the workers and the environment.

Seem betterments are easy coming about

Necessitate a via media of all stakeholders

While some provinces have ratified the Hong Kong convention and are working in order to hold green recycling installations, others are unsated or do non interested with the footings of convention.

Pressure on the transportation community to dispose of its terminal of life ships in a safe and environmentally friendly manner

taking into history the peculiar state of affairs of

Find countries of common involvement and understanding

The regulations and ordinances could be much easier to implement.

contribute to the development of an effectual solution to the issue of ship recycling, which will minimise, in the most effectual, efficient and sustainable manner, the environmental, occupational wellness and safety hazards related to the industry.

Environmental Policy of TCS

Commitment to the environment stems from the Tata Group’s abiding concern for the environment and society, which is embodied in the Tata Code of Conduct. The Tata Group considers climate change to be the greatest threat affecting economic stability, vulnerable communities, and the society at large. The Tata Group’s Climate Change Policy mandates that all group companies assume leadership roles in climate change mitigation in the pursuit of business aspirations and enhancement of shareholder value.

In the business of providing IT services, business solutions, and outsourcing. Our environmental impacts result from our business operations globally and through the services and solutions that we provide our customers with. True to the Tata spirit, TCS regards climate change mitigation and environmental improvement as essential features of its sustainable business philosophy.

We are committed to continuously benchmarking and enhancing our own environmental performance through the reduction of our carbon and ecological footprints with the involvement of our business associates and partners, thereby striving to be leaders in our industry sector. Through our services and solutions, we endeavor to help customers improve their environmental performance toward their sustainability objectives.

Aim to fulfill our environmental commitments through the following broad-level actions:

• Integrate energy and environmental considerations in the design of new infrastructural facilities
• Improve resource efficiency in operations, especially for key resources such as energy and water
• Adopt the “3-R” (reduce, reuse and recycle) philosophy for all types of wastes toward prevention of pollution and dispose of “inevitable” wastes, especially electronic waste, in line with regulatory requirements or industry best practices
• Promote “green procurement” to the maximum extent possible
• Consider stakeholder expectations on our environmental performance in the design of infrastructure, operations, processes and solutions to the extent feasible
• Set, monitor, and review objectives and targets on an ongoing basis toward achieving continuous improvement in environmental performance and the overall environmental management system
• Remain committed to complying with all the applicable environmental and related legal and other requirements and, wherever feasible, enhance the prescribed standards in all the countries that we perate out of
• Continue public reporting of our environmental performance and our contribution to climate change-related issues through relevant national and international forums and to other stakeholders through appropriate communication channels
• Communicate the environmental policy to all employees, business associates and other stakeholders and ensure that the policy is available to the public
• Review the environmental policy and allied management systems periodically to ensure their continuing applicability and relevance to our operations and evolving stakeholder expectations

Strive to support various voluntary national and international protocols, conventions and agreements on environment protection and proactively engage with governmental and other agencies in driving future environmental policy and regulation At TCS, concern for the environment is integral to our business strategy toward sustainability, and we shall strive to fulfill all our environmental obligations and commitments toward being responsible global corporate citizens.

TCS embodies the Tata group’s philosophy of building strong sustainable businesses that are firmly rooted in the community and demonstrate care for the environment. The elements that make for strong corporate sustainability at TCS include the following:

• A fair, transparent and value-driven corporate governance
• A strong strategy for longer-term business growth
• Best-in-class HR processes
• Initiatives for community betterment
• Our stewardship of the environment Green Procurement Policy

As a part of the ongoing commitment to improving the environment, this policy seeks to reduce the environmental impacts of our operations and promote sustainable development by the integration of environmental performance considerations in the procurement process. committed to the integration of environmental performance considerations in the procurement process including planning, acquisition, use and disposal. TCS is committed to considering the environmental aspects, potential impacts and costs, associated with the life cycle assessment of goods and services being acquired. This calls for conscious efforts across TCS in the following areas:

1. Reduce, Reuse and Recycle: TCS is committed to reducing resource consumption and minimizing waste while considering the life-cycle costs of products. We seek to implement the hierarchy of preference to reduce, reuse and recycle resources throughout the procurement activity.
2. Buy Recycled: We are committed to buying recycled/part-recycled products to optimize consumption and stimulate demand for recycled products, promoting the collection and reprocessing of waste, and working toward zero discharge to the landfill.
3. “Green” the Supply Chain: We hope to maximize the benefits by encouraging our suppliers/vendors to adopt TCS’s environment practices.

We endeavor to undertake procurement activities with suppliers who share TCS’ values. We will actively promote the green procurement policy throughout our supply chain to ensure selection that has minimum environmental impact. Green Procurement Green procurement or environmentally preferable purchasing (EPP) is the practice of procuring products and services that are less harmful to the environment (land, air and water) and all species including humans that depend on environment for survival. Green products are those that are made with less harmful materials or which when produced or used/consumed would have a minimal impact on the environment.

Listed below are a few ways through which we aim to integrate the green procurement policy with the TCS environment policy.

1. TCS shall encourage and prefer eco-friendly products, which are more power efficient.
2. TCS shall prefer to purchase from a source that is less polluting or uses clean technology.
3. TCS shall encourage and prefer vendors who use recycled packaging material. The possibilities of further reuse and/or recycling shall be explored with the user or the administration department.
4. For software products, as far as possible and to the extent feasible, the preferred mode of delivery shall be through the electronic method (download). A server is proposed to be deployed that would host the most commonly required software. Instead of burning CDs, secured access would be made available to the respective project team to download the product from this common server.
5. The IPD shall make efforts to recycle material from old sites to the practically possible extent.

Focus Areas

• Promoting procurement from Energy Star Partners
• Procurement of low-energy consumption desktop configuration
• Procurement of laser printers with GREEN functionality
• Procurement of servers with low voltage CPUs and low-wattage storage
• Procurement of server racks with efficient cooling systems
• Eco-friendly procurement considerations for infrastructure and development
• Eco-friendly procurement considerations for consumables

Waste reduction policy

At TCS, they are committed to reducing the environmental impact of our operations through appropriate ongoing material management. This calls for a conscious effort across TCS in the following areas: Reduction of waste at source: All delivery centers and offices must manage operations to reduce the quantity or toxicity of waste produced. Such measures include, but are not limited to the following:

• Printing reports and documents, whenever possible, on both sides of the paper
• Updating mailing and distribution lists periodically to avoid overrun; use of e-mail whenever appropriate
• Giving preferential purchasing consideration to products that are reusable, refillable, repairable, more durable, less toxic, recyclable and which avoid excess packaging.
• Reuse of material wherever possible: All products and materials must be reused wherever possible.
• Recycling: It is the responsibility of every associate to separate identified recyclable materials and place them in appropriate recycling containers. Office paper, corrugated cardboard, and aluminum beverage cans must always be recycled in the appropriately marked container. Other materials are to be recycled whenever feasible and wherever containers are provided. Reuse is preferable to recycling.
• Purchasing products with recycled content: All offices across TCS must purchase and use products manufactured from recycled materials whenever feasible. In particular, recycled paper products must be used.

It is important that all recycled purchases be reported to the Admin/Purchase Department across TCS for record-keeping and reporting purposes In addition to the specific efforts mentioned above, all delivery centers and offices are encouraged to designate one associate as a Recycling Monitor who will serve as liaison to Head – Health Safety Environment. TCS E-Waste Management Policy Tata Consultancy Services, being an IT-centric organization, contributes majorly to global electronic waste. Reaffirming our commitment to environmental protection, and in accordance with the stringent standards we set ourselves, the Waste Management Policy reflects our objectives and practices toward this end.

A product development life cycle typically consists of idea generation, concept development, manufacturing along with various stages of testing, the final deployment of product in the market along with providing service support to safe environmental disposal. As a product moves along the development lifecycle, work done in the preceding stages assume importance and begin to have an effect on the subsequent stages of the product development.

A product developer should therefore consider how the design phase has ramifications on all the other stages of development because each stage is affected by the previous stage and in turn affects the subsequent stage of development. A good designer should take into consideration not only the product functionality, but also evaluate it vis-a-vis ease of manufacturability, sustainability and recyclability of various components of the product. To optimise all the stages of development, the design of a product must consider every aspect of the lifecycle in a holistic sense and not view each of them in an isolated manner.

Explanation The conception of an idea begins with an understanding of the consumer’s needs. By defining a generic process flow, the product developer gets an idea of the steps for creating the product. The conception of design is essentially an intellectual process where the needs of customers are transformed into the developer’s vision for how the product should be like. Every part of the product cycle consists of various phases. These include but are not limited to development of concept, design at system level, specific design, testing and evaluation and implementation.

Each and every phase of different aspects of a product design is a concurrent activity and the corresponding phase in the design part subsequently affects the same phases in manufacturing and marketing part of the product lifecycle. Through the dependencies between each phase, the importance of design on other parts of product lifecycle can easily be observed. The analysis activity which precedes the product design takes into account the customer’s needs and identifies the market segment for it. Target markets are identified and alternative product designs are evaluated at this stage.

A comparative analysis and the economic justification of the product development project are undertaken for the same. The rough design consists of breaking the larger system into smaller sub-systems for ease of analysis and further design. The final assembly of these sub-systems to form the complete product is often decided upon in this phase. The result of this phase is a process flow for the creation of different sub-systems of the product. The detailed design phase takes into the specific details of each subsystem listing the exact components required for the making of each sub-system.

A functional understanding of each component is understood here. Before implementing the design, the testing and modification phase review all other phases by creating a prototype of the product. These are then tested for functionality and satisfying customer’s needs. The implementation phase begins then where all the plans are put into action and the actual manufacturing of products starts. Before releasing the product, it goes through stringent tests and quality checks which were decided upon during design phase. Another prototype is released first to a select market to identify any flaw before it is launched in the market.

Next is the stage of maintenance where support to the launched product is provided. Feedback from the customers about the product are then taken into consideration and used to improve upon the design in the future with better products. Product Life Cycle Depleting resources and rising environmental pollution has caused strict rules to be formulated for the recycling of products and waste disposal. A product design should not only satisfy the functional utility and meet the business constraints but it should also be environment friendly.

The “producer responsibility” principle that is employed on these rule makes it incumbent on the product manufacturers to take responsibility for the waste disposal and minimise the environmental hazard. This places a constraint on the selection of raw materials for the product design so as to increase recyclability of waste components and hence reduce the effects of any waste on the environment. Like a biological life cycle, a product goes through the decay process and it is thus the responsibility of manufacturers to effectively dispose the wastes resulting from their products.

Hazardous materials such as metallic coatings, emission causing non-biodegradable substances have been banned by many countries to eliminate the harmful effects on the environment. While these regulations limit the availability of materials for selection, the effect of finding reusability has improved the profitability of manufacturers. The reuse of components used in the products reduces wastes and it also economises the value derived from the components used.

Products and the components used in them have an operating life after which they begin to degrade in performance. An important concept with respect to recycling, servicing or disposal is the product’s take-back time so that it is possible to recycle or reuse the components by servicing them instead of disposing them when they have become completely defunct. A product designer thus needs to consider the component reusability and effective waste disposal not only to meet these regulations but also to maximise resource utilization from the wastes.

Incorporating in the design the components that needs to be re-used, recycled or disposed is thus an activity that a product developer must consider for effective resource utilization. The table on the previous page shows how each phase of the design of product lifecycle affects the subsequent phases in manufacturing process and the marketing of the product development lifecycle. The concurrent activities in the different stages of product lifecycle derive from the design stage and hence the developer must consider all the stages of product life cycle.

The phases of activity shown for each stage of the product life cycle above is just a symbolic representation for analysis purpose and there may be additional phases involved or one or more of these may be missing in actual life cycle of a given product. Although the relationship between the concurrent activities in only design, manufacturing and marketing have been listed above for the sake of simplicity of analysis, other stages of life cycle specific to a given product and their interacting dynamics should also be taken into consideration.

Furthermore, the order of activity may be different depending upon whether a product is pushed on to the market to create a niche segment or whether a product is being designed to address an already existing segment with several competitors. The planning and development of concept phases may then be shifted in order depending upon the case as it may be. In the planning phase, while evaluating the opportunity for products and identifying the target consumers, the design part of the product life cycle involves assessing different product structures.

Now this directly affects the manufacturing part in terms of constraints each structure produces on the manufacturability. When industrial designs are being formulated in the design part, concurrently one needs to consider it’s feasibility in terms of manufacturing. At the system level design again, the design of subsystems creates a dynamic relation in terms of identifying manufacturers for the parts of these different sub-systems. This affects the marketing part in terms of evaluating the approximate target price.

When detailed design is taken, each subsystem is defined in detail, complete industrial design and control procedures formulated. Concurrently, production of each part, raw materials procurement and evaluation of control strategies at manufacturing part of the life cycle are evaluated. When testing techniques are being taken into consideration at the design part, simultaneously their implementation at the manufacturing level should also be evaluated. The need for product upgrades or the decision of providing support and maintenance to the product is also based on the determination of the operating life cycle of the components used.

The factors that need to be considered here are whether the component needs to be serviced, replaced and recycled or replaced and disposed off. Here, a trade off between the cost, quality, product durability and environmental impact needs to be considered. A timely maintenance or servicing schedule not only enhances the product performance but it also reduces wastage of components malfunction. The timing of these schedules is dependent on the design phase which determines the components that will be present in the products.

These considerations in the design phase reduce the risks of early failure rate of products and hence product withdrawal. A product life cycle is essentially a closed loop activity and the stringent regulations to minimise wastes and effective resource utilisation has forced the product developers to incorporate product take-back planning in the product design procedure. Models are thus developed in the design stage to evaluate reuse, recyclability and an environment friendly disposal of the components of the products.

A decision model that takes into consideration the aspects of component reuse, remanufacture and disposal is thus required at the design phase because these impact the not only the cost, durability and reliability of the product but also pose issues of environmental hazards. Conclusion The different stages of product development are essentially holistic and depend upon one another. A developer must take into consideration how the changes in design propagate to manufacturing and other parts of the product lifecycle.

So many product designs often fail because these interactions were ignored and the design phase carried out in isolation without considering its implications on the other stages. From idea generation and concept development to different parts of the product life cycle, several changes need to be introduced because some aspect of one or other stages of the life cycle was not considered during the design phase. While a complete determination of effects on other stages is not possible during the design phase, yet keeping in mind the dynamics of different stages is a practise to be encouraged.

A design that takes into account these interacting dynamics between the different stages of product development lifecycle has lesser probability of encountering a roadblock and being subjected to redesign. It is thus clear that each phase of the different stages of a product lifecycle has some or the other concurrent activities that are affected by the design phase. A systems approach to the design of product thus should consider all these stages in a holistic sense and a product developer must integrate the different stages of the product life cycle. References Baxter, Mike.

, Product design: a practical guide to systematic methods of new product development. CRC Press, 1995. pp 213-214. Ulrich, Karl T. , Eppinger, Steven D. , Product Design and Development. McGraw-Hill, 1995. pp 9-41. Roozenburg, N. F. M. , Eekels, J. , Product design: fundamentals and methods. Wiley Publications, 1995. pp 9-19. Mangun, Donna. , Thurston, Deborah L. , “Incorporating Component Reuse, Remanufacture, and Recycle Into Product Portfolio Design. ” IEEE Transactions on Engineering Management , Vol. 49, No. 4, November 2002. Product design for the environment, http://www. productdesignenvironment. info/concepts3. htm