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Best Buy's Failure Essay
Case Studies April 9, 2019
Best Buy's Failure in China Lea Pernet and Paulina Nunez-Candiani INTB4501/ Advanced Global Management Alvaro Cuervo-Cazurra April 25, 2012 Best Buy Co. is a "multinational retailer of consumer electronics, home office products, entertainment products and related services" 1. The group is the largest U. S consumer electronics retailer by revenue. In 2006, Best Buy made its first steps in China with the acquisition of a Jiangsu Five Star, a Chinese retailer and opened its first Chinese store under its name in Shanghai, soon followed by eight others.
With a consumer focused strategy, Best Buy was hoping to capture part of the electronics retailing market, so far dominated by the local retailers Gome and Suning. However, in 2008 the group's net earnings had decreased by 77 percent from the previous year. No later than February 2011, the multinational announced it would close all nine of its branded stores. This report analyses the reasons of Best Buy's failure in China and tries to assess recommendations for the company to approach the Chinese market. 1 SITUATION ANALYSIS Best Buy in the USA History of Best Buy
The company started in 1966 when Richard Schulze and James Wheeler opened a store called "Sound of Music" in Saint Paul, Minnesota. At the beginning, the company focused on home and car stereos. In early 80s Schulze realized that there was little potential selling audio components to a shrinking audience with little resources and began focusing on appliances and VCRs2. The company's name was given when they had a special sale event they called "Best Buy". After the success of this event, the board of directors approved the name for the company.
The design of the stores was introduced in 1989 and had spacious 44,000ft warehouse -like layout. The company overtook Circuit City as the leader in electronics retailer by revenue. In 1998 Best Buy entered e-commerce by launching a site that sold CDs and DVDs. Shortly after, the offering expanded into consumer electronics, computers, software and games. In 2002 Best Buy bought Geek Squad, a computer maintenance and repair company, and began to incorporate it into existing store locations. In more recent history Best Buy has been extremely successful in supplying demand for flat screen TVs and cell phones. Best Buy is recognized as a "big-box" store, which is defined as a physically large retail establishment being usually part of a chain. Best Buy was one of the first stores to implement the 'big box' model stocking mostly high technology/electronic items, and also home appliances sometimes. It's important to mention that in 2011 after the company reported a $1. 7 billion loss and the closing of 50 big-box stores, "the opening of 100 smaller format mobile stores, and the culling of 400 employees"4 the company started thinking if this model was the best for them of not. A price competitive strategy threatened by online retailing
From its creation, Best Buy's success relied on a price competitive strategy. However, the arrival of online retailers who do not have to bear as much overhead costs as Best Buy has significantly threatened America's largest electronics retailer's strategy. At the beginning the company's competitive advantage was primarily the price. The company has had its share of ups and downs and endured many challenges that overwhelmed some of their competitors. In the late 80's numerous competitors crowded the electronic retail space that resulted in price rivalry on popular consumer items.
Many companies took hits on profit margins by slashing prices to sell hot items such as VCRs. Best Buy's sales had nearly doubled in 1988, but their net earnings fell 64%. 5 Although battered, Best Buy survived the price wars when some of their major competitors including Highland Superstores and Dixon's Group's Silo Holdings were forced to liquidate. Throughout the 1990s, Best Buy entered yet another intense battle with its main rival, Circuit City. The rapid expansion and intense competition caused the company's stock to swing wildly in 1994.
Best Buy surpassed Circuit City in the late 1990s which eventually declared bankruptcy in 2008. 2 The company is now having problems competing with online retailers. Amazon's example speaks for itself since its brand increased by 32% in 2011 while Best Buy declined by 11%. 6 Whilst Best Buy is now the largest electronics retailer in the US, Amazon has seen its revenues grow at a much faster rate and is expected to take the number one position by 2012. Best Buy's net income is down 30% to 154 million for 2011 fiscal year. 7 The company's CEO, Brian Dunn, has recently resigned because of inappropriate personal conduct allegations.
Best Buy's stock price continues to set new 52 week lows. In order to improve its situation, the company plans to reduce store locations and sizes. 8 Moreover, Best Buy is struggling with an excess of overhead costs because it is a brick and mortar retailer and therefore it has large operational costs to run and maintain its locations. There are a lot of factors that contribute to the overhead costs. In addition to paying rent for the leased locations, Best Buy also incurs real estate taxes, insurance, and area maintenance fees, which the company has to incur to stock products on its sleeves.
These overhead costs have to be reflected in the price of the products offered, thus preventing Best Buy to compete on price alone with online retailers. Finally, another current and important disadvantage for Best Buy is tax regulations. Indeed, in most American states, the customer must pay a sales tax when purchasing an item at a store, which can often be avoided by purchasing from online retailers. These disadvantages that Best Buy has in comparison to its online competitors made the company to reevaluate its competitive advantage in the US. A consumer centric strategy
Such weaknesses amongst online retailers made Best Buy to reevaluate its competitive advantage in the US by putting the emphasis on services which competitors like Amazon cannot provide. Nowadays, Best Buy focuses its competitive advantage on a consumer -centric strategy by building a superior service to differentiate itself from online retailers. By extending its offers to warranties, in -home installation and configuration services, Best Buy hopes to position itself as a retailer who cares about its customers and provides them with the utmost services9.
Best Buy's 2006 annual report synthesizes their positioning strategy as the company that "excels based on its fun, interactive store experience; broad product assortments; name brands; knowledgeable empl oyees; and ability to offer services. " Best Buy is an ideal location for many new electronic product launches because customers can come into the stores and try out the product. The employees are typically dedicated to a specific section of the store to familiarize them with a product category, so they can best assist and educate customers.
In 2006 Best Buy decided that they had to "transform (their) company, and (their) transformation (had) moved beyond the tipping point. (They) believe (d) that the best way to boost returns (was) to invest in (their) customers and employees" (Best Buy's 2006 Annual Report. ) An obvious element of this consumer-centric strategy is a focus on employees' quality service. As Brian Dunn -Best Buy's chief executive, explains in his interview with Marc Gunther: "We are leveraging our people as a competitive advantage.
We stand on the shoulders of all the people who have worked on the floor for the past 40 years at Best Buy. " Indeed, the success of a consumer -centric strategy relies on the quality of the company's service. "Several years ago, for example, Best Buy executives decided to save money — about $10 million a year — by cutting back on employee discounts. The reaction from workers was swift and 3 negative, and the company pulled back. " 10. Such an example reveals the importance of the workers' service to customers on the company's profits and thus the appropriability of this competitive advantage to the company.
However, Best Buy's competitive advantage of customer service is serving Amazon to generate more sales by being Amazon's "showroom". Indeed, a trend has started where people visit Best Buy to try a product and then purchase it online for a cheaper price. As an incentive to follow this trend, Amazon has facilitated the price comparison process by releasing Price Check. This mobile app, "available on Android and iOS, lets the user scan a barcode and instantly find the merchandise price on Amazon"11 Best Buy in China Entering the Chinese market
With such threats on their domestic market, Best Buy decided to double its efforts in foreign markets. With a two digit growth of its middle-class, China represented a promising potential market which the company saw as an opportunity to boost its sales globally. Having operated in China in the past, Best Buy decided to enter the Chinese market in 2006 through the acquisition of Five Star -China's third largest electronics retailers. China represented a great opportunity for Best Buy to expand due to economic and social factors. China's population of 1. billion people and an annual GDP (Gross Domestic Product) growth of 10. 7%, a strong middle class emerging and which rose from 6. 5 million to 80 million whose per capita income surged from RMB 21,739 per household in 2006, representing a "robust 50% increase over 2001 in real terms"12. By way of example, in 2004, Gome -the largest chain retailer of home electrical appliances in China, reported a 189% increase in profits due to increased customer demand. Most certainly, Best Buy saw a substantial market opportunity in China. Moreover, the company already had operated in China for purchasing purposes.
In 2006 Best Buy operated three global sourcing offices in China in order to purchase products directly from Asian manufacturers. These offices improved Best Buy's product sourcing efficiency and provided them with the capability to offer private-label products, which complemented their existing product assortment, in order to achieve an increase on the total purchases and an improvement on the gross profit rate by lowering their overall product cost13. Having a first step in China most certainly made Best Buy confident they could start selling in the country.
Indeed, their 2006 annual report indicates that Best Buy had six priorities for fiscal year 2007, the sixth being the pursuing of an international growth strategy for which they had plans to embark on a controlled growth strategy in China opening their first store in Shanghai. In 2006, Best Buy entered into an acquisition of 75% of China's third-largest retailer of appliances and consumer electronics, "Jiangsu Five Star Appliances". This acquisition provided Best Buy with a strong management team that was familiar with local customers and business models.
Moreover, it was an opportunity for the American retailer to increase its knowledge of Chinese customers. Best Buy obtained 4 immediate retail presence in China and enhanced its expansion by opening its first Best Buy-branded store in Shanghai in December 28, 2006 (See Exhibit 1). By 2007 Best Buy and Five Star in China occupied 4. 3 million retail square feet in China, the equivalent of about 10% of the total retail square footage (See Exhibit 2), operating "135 Five Star stores in seven of China's 34 provinces and one China Best Buy store in Shanghai"14.
By March 2008 the company operated 160 Five Star stores in China and one Best Buy store which represented 5. 9 million retail square feet. In 2009, Best Buy acquired the remaining 25% of Five Star and converted the Chinese retailer into a "wholly-owned foreign enterprise", 100% owned by Best Buy. In 2009 the company expanded their Best Buy stores, they operated 169 total stores in China, 164 Five Star stores and 5 Best Buy China stores all located all in Shanghai (See Exhibit 3), and by the end of 2011 the company had a total of 8 Best Buy stores (See Exhibit 4).
From Five Star to Best Buy Management and operations of Best Buy in China were very similar to the ones in the U. S and Canada. In its 2007 annual report, Best Buy explains that its first store in China "employ(ed) an operating model similar to (their) U. S. Best Buy and Canada Best Buy stores. (Their) China Best Buy store (was) staffed with a general manager; assistant managers for operations, merchandising, inventory and sal es; and approximately 340 sales associates, including full-time and part-time sales associates.
Advertising, merchandise purchasing and pricing, and inventory policies for (their) China Best Buy store (were) centrally controlled by corporate management. Meetings involving store management and corporate management (were) held on a regular basis to review operating results and establish future objectives. " Therefore, in terms of organization, Best Buy in China was managed in a similar way that their American or Canadian stores. One of the biggest challenges for the company when opening a Best Buy-branded store, was their lack of brand equity.
On the one hand, Five Star was the third biggest electronics retailer in China. But on the other hand, Best Buy had very little brand recognition in China while Gome and Suning -China's number one and number two electronics retailers, were widely known of Chinese consumers. "One of the biggest contributing factors has been establishing brand identity amongst Chinese consumers. Whilst Best Buy is a global retail brand and a particularly formidable force in its domestic US market, it was relatively unheard of in China prior to its acquisition of Jiangsu Five Star.
In contrast, both Gome and Suning are household names in China. " 15Consequently, Best Buy had to invest significantly in marketing in order to build brand recognition. As part of its brand strategy, Best Buy decided not to change its name in China but to convert it to its phonetic equivalent: Baisimai. However, the choice of name might have been a bad move as China Briefing Magazine explains: "Many consumers even commented that the Chinese name of Best Buy – Baisimai – as a bad one for marketing. Baisimai literally means 'to buy after thinking 100 times16'. " Best Buy's business strategy in China
Boosted by their consumer-centric strategy in the US, Best Buy decided stay consistent and offer an utmost services range to its Chinese consumers in order to differentiate itself from domestic competition. The strategy mainly relied on qualified and objective salesperson, not biased by commission like most Chinese retailers' are. 5 Contrary to its strategy in North America where stores are located in the suburbs with the convenience of parking lots, Best Buy opened its eight stores in urban environments of Shanghai, most of them in Pudong which is the historical center of Shanghai.
Perhaps they did so because this is where most Chinese retailers settle too since the number of cars per household in China is relatively low. However, most locations were not conveniently located. For instance, one of the Best Buy -branded store was situated in between two metro stops which customers complained about a lot on forums. In fact Best Buy decided to focus on building "large flagship stores, like in the U. S. , rather than smaller, conveniently located retail outlets.
China may have one of the highest car adoption rates in the world, but its perennial traffic congestions and lack of parking means consumers often prefer to shop closer to their homes. "17 Best Buy's store in China offered merchandise in three product groups, consumer electronics, home office and appliances. But the differentiation strategy of Best Buy did not rely on its product offer but on its services. With the objective of transferring its competitive advantage in China, Best Buy developed a consumer-centric strategy. Best Buy chose to take an alternative approach to the China market: it focused on a service-based business model. It sold the same installation, repair work and guarantees offered to customers at U. S. Best Buy stores and staffed its outlets with knowledgeable employees who did not push for sales. To prepare for its entrance into China, Best Buy handpicked customer service representatives from China and trained them at company headquarters in Minnesota to provide a higher level of service not typically found in China, much less in China's bargain electronic retailers.
Best Buy would provide what they thought the China market needed: service with a smile. " 18 Salaries of salespersons in the Chinese stores did not include commissions on sales since Best Buy wanted its sales force to work in total impartiality. "The U. S. -based appliance retailer is banking on a strategy adopted by its North American operations, under which its salespeople will work on a noncommission basis to guarantee unbiased advice, the company's China chief said. Based on our understanding of Chinese consumers, we have an advantage of our model in China. It's such a growing marketplace and retail chains only command a small part of the market,' Best Buy China chairman Weimin Lu said in an interview. 'The biggest thing for us is to learn about the Chinese consumer and the consumer electronics retail market in general. ' Sales staff in Chinese retail chains such as market leader GOME Electrical Appliances Holding Ltd. and Number 2 Suning Appliance Co. Ltd. , generally work on commission for various brands. "19 .
Unlike its Chinese competitors whose salespersons were encouraged to sell particular brands in order to obtain their commissions, Best Buy would offer a more ethical environment with reliable, objective and unbiased salespersons. An unprofitable expansion Nevertheless, Best Buy's strategy in China proved to be unprofitable. In 2008 Best Buy's international segment's gross profit rate "decreased by 0. 9% of revenue to 20. 7% of revenue. Therefore, the company lowered its costs and by 2008, its international segment's Selling, General & Administrative Expense (SG&A) rate "decreased by 1. % of revenue to 18. 3% of revenue. (Their) China operations, which carr(ied) a significantly lower SG&A rate than (their) Canada operations, reduced (their) International segment's SG&A rate by approximately 0. 5% of revenue in fiscal 2008" (Best Buy's 2008 Annual Report). 6 Although Best Buy cut significantly cut its expenses in China, results were still not satisfying. "(Their) China operations, which operate(d) at a significantly lower gross profit rate than (their) Canada operations, reduced (their) International segment's gross profit rate by approximately 0. 7% of revenue in fiscal 2008.
The remainder of the decrease in (their) International segment's gross profit rate was due primarily to the increased sales of lower-margin products in both (their) Canada and China operations, which was partially offset by rate improvements in certain product categories as well as l ower financing costs in Canada"20 In 2010, the company's international segment operating income "resulted primarily from higher operating income in Europe and China"21. However, during 2010 the company faced a decrease of revenue of 0. 3% in China caused primarily by "cost-cutting measures to reduce overhead, payroll and arketing expenses"22 Despite these results, the company continued to expand its brand in China, and by the e nd of 2011 the company had a total of 8 Best Buy stores (See Exhibit 4). However, in the fourth quarter of fiscal year 2011, Best Buy announced plans to "restructure the Best Buy branded stores in China during fiscal 2012. Restructuring activities in China include closing all eight Best Buy branded stores. (They) also intend(ed) to explore other more profitable growth options for the Best Buy brand in China, including the option to reopen two of the closed stores at a later date" 23.
All of the eight branded stores were closed by the end of 2011. The Electronics Retail Market in China The rise of a cost-effective business model The Chinese appliances and electronics retail market has witnessed a determinant restructuring during the late 1990s. By building a strong logistics strategy, retailers have significantly lowered their overhead costs. "From 1993 to 2000 (before the rise of chain-store retailers), the average sales cost ratio (sales costs/revenue) of China's major household appliance manufacturers rose from 2. 9% to 10. %. "24. But by restructuring their whole business model, Gome and Suning rapidly took over the appliance and electronics retail market in China. The Chinese electronics retailers' strategy and organization significantly differs from the typical American Big Box model. Indeed, Chinese retailer usually owns a large store and rent part of it to different brands. For instance, Gome, one of China's biggest electronics retailers, owns retailing stores in which representatives of electronics brands such as Nokia or LG rent their selling area.
Therefore, the Chinese retailers' revenue includes the rents from the brands as well as a commission on every brand's profits (Ni, V. ) Therefore, Chinese retailers are extremely price competitive by passing costs directly to manufacturers. "Gome's 2008 Annual Report revealed that its income from suppliers consisted mostly of such fees charged to suppliers for promotional activities, management services, and display space leasing. The total was RMB 2. 5 billion, which was nearly one billion more than the earnings before tax of the entire company.
Suning's related income in 2008 was RMB 1. 4 billion, which contributed 48% of its earnings before tax. "25 7 As a consequence to this Chinese business model, the sales strategy for Chinese electronics retailers relies highly on commissions "as a result sales personnel are keener to sell and meet their quotas in order to increase their personal incomes. This has resulted in higher sales per employee for domestic retailers. " 26 As opposed to Chinese retailers, Best Buy's non-commission strategy aimed at building impartiality as a differentiating aspect.
Such differences implied costs on Best Buy's side which its Chinese competitors did not have to bear and thus prevented the multinational from being price competitive. An oligopolistic market On the one hand, the Chinese household appliances and electronics market is largely dominated by two retailers -Gome Electrical Appliance (Gome) and Suning who have been fighting for the first place. In 2006, Gome was China's largest retailer in the industry with approximate sales of $10 billion, it ran 420 stores and employed about 300,000 people and Suning was very close behind Gome. 7 As a response to the arrival of foreign competition, both retailers initiated aggressive expansion strategies and started entering into acquisition with smaller retailers. As a result, in 2011, Suning ran 1,300 stores in China and took away the first place of Chinese electronics and appliances re tailer, leaving Gome with the second position with 700 outlets in China. On the other hand, independent convenience stores are still very present in the electronics retail market in China.
They have significant advantages over bigger retailers like Suning and Gome in terms of customer relationship "Independent local players, which account for more than 50 percent of the rural market, have advantages including being able to use their familiarity with local spending behavior to adjust their offerings and provide customized product advice to their customers. "28 However, through their recent numerous acquisitions with small retailers, Suning and Gome have countered this disadvantage and widen their local, convenient presence and thus built a strong advantage on multinationals.
Indeed Chinese top retailers' strong and fast supply chain management enables them to keep a large selection adapted to local needs throughout its fleet of stores. "Consider televisions. Rural consumers tend to prefer big screen TVs, which confer greater status in their villages while urban shoppers are more focused on quality and brand, according to Zhu. While national operators like Suning and GOME will struggle to compete with local chains, their wide selection of fast -selling electronics products may give them an edge over foreign players such as Wal-Mart and Carrefour.
When asked recently about flat-screen televisions, a salesman in the small electronics department of a newly opened Carrefour in the second-tier factory town of Dongguan suggested the reporter look elsewhere. 'You can probably get a wider choice of products in the Suning just down the street,' he said. "29 The perceived value of Best Buy's offer in China Many of Best Buy's products were considered too expensive compared to the local market. Paradoxically, Best Buy's prices were similar to its main competitors' – Gome and Suning. However, Chinese consumers positioned Best Buy at a higher perceived price range. 0 8 Part of this misinterpretation might be due to the fact that the Best Buy was recognized as a multinational, considered to charge at a higher price. But the main reason why Best Buy's prices were considered higher relies on the business model itself. Indeed, Best Buy's non-commission strategy was accompanied by a fixed-price policy. Therefore, salespersons had no possibility to bargain products whereas Chinese retailers have a more adjustable and aggressive bargaining strategy by which they "lower prices within pre-defined limits if it ensures a sale.
This flexible approach allows retailers to price discriminate and maximize revenue from different income groups. Whilst consumer attitudes towards flexible pricing may be negative in North America or Western Europe, it is firmly embedded in the shopping experience in many Asia Pacific markets, especially China. "31 Finally, the surplus in Best Buys' perceived price was not accompanied by a higher value in their services and product range offer. Although American consumers might be willing to pay for a supplement in price for the services Best Buy offers, Chinese consumers' buying behavior differs.
Chinese electronics retailers rarely provide warranty and installation services, mainly because repair services are available at a cheaper price at local convenience store. Typically, Chinese consumers would spend a lot of time comparing price and wait for the best deal on products, but services are rarely part of their buying decision process. "Best Buy's service -oriented model seemed like a reasonable strategy given that China's maturing consumer class is increasingly looking for product value. Though a better shopping experience would appear to be in line with those expectations, the price factor cannot be underestimated.
Chinese consumers are looking to upgrade their purchases, but the electronics market in China is known for being extremely price sensitive. "32 Therefore, although Chinese consumers value and need the services, the price they are willing to pay for they were below Best Buy's perceived price. Moreover, Best Buy's higher perceived price was not followed by a different product range offer than what was already available on the Chinese market. "Customers could easily get the same product literally down the street. 33 Consequently, there was little incentive for Chinese consumers to purchase at Best Buy since the product offer was similar: "Why buy a Sony DVD player or Nokia phone at Best Buy when you can pay less for the exact same product at a local store? Consumers will only be willing to pay more, like at th e Apple stores, if they are buying something they cannot get elsewhere. "34 While Best Buy did not differ from domestic competitors in its product catalogue, its differentiation strategy relied on its elevated services which Chinese consumers could find at a cheaper price at convenience stores.
Therefore Best Buy was left with only one differentiation point: the possibility for consumer to test products in the store but this advantage was quickly copied by competitors as Liu Buchen, an independent electronics retail analyst explains: "The company's service style, whereby customers can test products, was quickly copied by others, and left them with no unique competitive strength"35 To conclude, the competitive advantage Best Buy was enjoying in the USA was not a source of advantage in China, its consumer-centric strategy offered services that were available elsewhere at a cheaper price.
Chinese retailers had competitive advantages among Best Buy: their convenient locations, low price and knowledge of the local market. Best Buy could not be competitive in terms of prices specifically because of its business model which was much less profitable than the Chinese rental system. "Ironically, its 9 business model, just as its Chinese name, tries too hard to educate co nsumers about high-end service value when lower price is typically the only value that motivates them to make quick decisions. "36Best Buy in China quickly became a convenient window to more price competitive Chinese retailers.
Chinese consumers "had little incentive to buy immediately and were more inclined to wait for the right – and ostensibly cheaper – deal. The perceived price hike was a severe impediment to Best Buy's success, and the additional service was not an attractive enough incentive to entice customers to buy exclusively at Best Buy. "Best Buy represented the shopping, not purchasing, stage of consumption," sums up consumer researcher Mary Bergstrom. "37 10 RECOMMENDATIONS The aforementioned situation analysis reveals a lack of understanding of the Chinese consumers for Best Buy in its attempt to mimic the American model in China.
The elements previously discussed raise two questions; was China a good location for Best Buy to offshore in the first place? And if so, what alternative strategy could have prevented the company from its obvious failure? While considering the possibility to offshore its activity to another country, it is important for companies to follow a thorough and systematic decision process. Indeed the expected profits assimilat ed with an offshoring strategy need to be weighed against significant costs and risks for the company. Farrell (2005) drew a helpful framework for companies to decide where to offshore.
We slightly reviewed this framework and added additional steps in order to optimize the decision process (See Exhibit 5). In this section, we assume a "back-to-the-future" scenario and use the aforementioned reviewed framework in order draw two possible recommendations for the company's internationalization strategy. Option 1: Stay Out As clearly mentioned in its 2006 annual report, Best Buy's objective in offshoring was to pursue an international growth strategy. Struggling in its domestic market, Best Buy's main goal of offshoring was without a doubt trying to generate profit in foreign markets.
As a consequence, following the reviewed Farrell framework, we decided to establish decision criteria for Best Buy to consider while weighing different countries to offshore in. Firstly, the presence of a growing market with interest in electronics is crucial for Best Buy to generate substantial profit. The second criterion would be the presence of a weak competition or at least a competition on which Best Buy has a clear advantage on. Indeed, the decrease in profits Best Buy was experimenting in its domestic market did not allow it much breathing space for risks.
Considering these two criteria, China would have rank high as an offshoring location for the electronics retail market. Firstly, with 60. 5 million in 2006, China was a potentially profitable location for Best Buy. Moreover, the market was so far dominated by Gome and Suning, which did not provide such services as Best Buy offers, thus opening a clear differentiation strategy for Best Buy. Best Buy seems to have considered this promising data as a sufficient green light to expand its operations in China.
However, China did present some significant risks for the electronics retail market. While the sales revenue of foreign-retailers in China has been generally positive, it has not been so for the electronics and appliances retailers who have not seen any significant increase since 2005 (See Exhibit 6). In view of this threat, China was perhaps not the best location for Best Buy to offshore. Indeed, although the company had developed a differentiation strategy based on consumer service and reliable advice from its sales force, the risks perhaps outweighed the possible profits.
Indeed, as discussed earlier, Chinese consumers are known to be extremely price sensitive and might not have been ready to pay more for such services. Moreover, according to the global brand study of Douglas B. Holt, John A. Quelch and Earl L. Taylor, China has an interesting mix of global citizens and antiglobals. On the one hand, global citizens bu y global brands mainly because of it quality signal, that is to say, the assumption that global brands have better quality than local brands due to more funds. In this logic, if local brands had better quality, they would expand. 11
This type of customer would be ideal for a global brand. However Best Buy is a retailer and not a manufacturer, the quality of its products does not depend on the company but on its suppliers, most of which are already present in China. Therefore, China's global citizens do not h ave any particular advantage in going to Best Buy. On the other hand, antiglobals are more skeptical on this quality signal and are not sensible to the global myth by which consumers buy global brands to feel part of a global community. On the contrary, antiglobal do not buy global brands because they "dislike brands that preach American values".
Such customers were a significant threat to Best Buy's implementation in China. Along with this idea of ant globalism, Best Buy had significant disadvantages of foreignness because of a strong consumer ethnocentrism. In addition, the retailing industry is difficult for multinationals to entry since its is long and requires and as Dawar, N. and Frost, T. 's positioning for emerging market companies framework suggest s, local companies took a defender approach and continued to provide low price and corner store position which the local market preferred. Best Buy also made the mistake of focusing on building large flagship stores, like in the U. S. , rather than smaller, conveniently located retail outlets. China may have one of the highest car adoption rates in the world, but its perennial traffic congestions and lack of parking mean consumers often prefer to shop closer to their homes. " 38 Best Buy could probably have acknowledged this strength of local competition before launching their over-sized stores in China. In view of these risks, our first possible recommendation for Best Buy in 2006 would be to stay out of China.
The company could have pursued the acquisition of Five Star and increase its presence in China. However, implementing Best Buy branded-stores might have been too risky an investment. Option 2: Stay in China and Define a New Positioning Strategy Despite the threats the Chinese market presents, we would like to consider an alternative strategy for Best Buy to implement its stores in China. Copy the Chinese business model First of all, Best Buy's American business model is a weakness in China.
The rental system Gome and Suning have developed is much more cost effective and enabled them to be more price competitive than Best Buy. We strongly believe Best Buy should have copied the Chinese business model in order to stay price competitive. On the one hand, this business model is unheard of in the US in the electronics and appliances industry. "The presence of a manufacturer's store within a retailer's store could suggest the weakness of the retailer or the dominance of the manufacturer, as the manufacturer has autonomy in the space owned by the retailer. "39
On the other hand, in China studies show an opposite interpretation, where "the presence of stores-withina-store often indicates the strength of retailers, rather than manufacturers", according to a detailed study titled "Store-Within-a-Store", written by Kinshuk Jerath of the Tepper School of Business at Carnegie Mellon University, and Wharton marketing professor Z. John Zhang. Their analysis shows that "the storewithin-a-store arrangement can; in fact, be a sign of the retailer's strength … one would expect to see the store-within-a-store arrangement only in the stores of power retailers, as is commonly the case. 40 Therefore, copying the Chinese business model would not only be a way for Best Buy to stay price competitive in a highly price sensitive market, but also to build credibility in the Chinese retail industry. 12 Reassess the competitive advantage in China Secondly, the company needed some point of differentiation from Gome and Suning. The main reason why electronics retailers have and keep failing in China might as simple as the fact that they do not bring anything new or more valuable to the consumers. Gome and Suning have a thorough knowledge of the Chinese market and already offer a wide variety of products.
While Best Buy could not differentiate with its product range, it decided to use its consumer-centric strategy in China. In the US, the services provided by Best Buy constitute a competitive advantage for the company, it is: – Valuable to the customer, such service is of great significance for electronic appliances which tend to become obsolete fast and which are often difficult to set up. – Rare, as Marc Gunther put it: "Just try getting help from Amazon or Wal-Mart if you can't figure out why your TV or computer isn't doing what you want it to. – Not difficult to Imitate, competitors could easily decide to provide extended services to their customers, though it might take some time to implement. – Difficult to Substitute, installation service can hardly be done in another way than by employees. However competitors could find a way to outsource the services. – Appropriable to Best Buy, "According to one analyst, such services, which can be highly profitable, could bring in 5 percent of the company's $47 billion in sales in the fiscal year ending February 2010. (NewYork Times) But was this even a competitive advantage in China? While the warranties and installation services are valuable to Chinese consumers, it is far from being rare nor difficult to substitute. Indeed, as discussed in the situation analysis, Chinese consumers can easily find these services in their local convenience stores where they can get their electronics items repaired at a cheaper price. Therefore Best Buy needed to modify its competitive advantage in China, the company was neither price competitive, or had a product or service offer that the Chinese consumers were ready to pay extra money for. Find a gap in the Chinese electronics retail market While both Gome and Suning are extremely price-focused and offer an extremely wide selection of products, there is still place for Best Buy to effectively differentiate. Indeed, there is not any competitor in China which has positioned itself as a high-end retailer which has narrowed down the product offers to only what is best on the electronics market (See Exhibit 7).
This is specifically where we would recommend Best Buy to position itself in China because it would provide them the consistent and logical differentiation strategy. Best Buy cannot possibly offer a wider range of products than its Chinese competitors Gome and Suning. However, it can narrow down the options for the consumer and become the electronics retailer for the upper-middle class Chinese consumers who do not trust the biased salespersons in traditional retailers and who are tired of being lost amongst too many different products, making it hard for them to choose the best products on the market.
Best Buy would provide a higher environment, with a product selection narrowed down to the best options in the market. By copying the Chinese electronics retail business model, Best Buy would stay price competitive but simply serve a segment of the market that had not been by a particula r retailer served so far. 13 In addition, it is important to note that this target is actually the fastest growing segment in Chinese middle-class. Indeed, "when looking under the bonnet at China's economic engine, it's clear that a growing middle class with rising disposable income and consumption is missing.
Instead, there's an economy that is still dominated by state owned firms and state-led investment, as well as by rapidly rising inequality. Instead of an enlarging urban middle class, China is increasingly splitting into a small upper class that spends freely on luxury goods, and a remaining population whose earnings and savings are eroded by inflation and state confiscation. "41 Moreover, the spending power of this Chinese upper-middle class is expected to grow at a extremely fast rate in the future going from 9. 4% of the overall Chinese population in 2005 to 59. 4% in 2025 (See Exhibit 8).
Stores' locations One of Best Buy's most questionable strategies in China was the location of its stores which wa s not considered convenient enough for middle class consumers who do not always own a car. However, targeting the upper-middle class opens wider location possibilities for Best Buy. Since the majority of upper-middle class households in China own a car, Best Buy could settle its high-end stores close to neighborhoods with upper-middle class standard of living. In Shanghai, Pudong New Area and Changning District downtown gather most of the upper-middle class.
Another advantage for targeting this segment class is that foreign expatriates tend to live in areas where upper-middle class is settled. Opening its stores in the area they leave will enable Best Buy to reach its target market while attracting expatriates who are already familiar with the chain. The product and service mix The presence of antiglobal consumers in China might have been underestimated by Best Buy in China. "With regard to product mix, Chinese consumers are increasingly turning to Chinese brands.
This is in part due to a resurgence of national identity, the increasing quality of Chinese products and the fact that Chinese brands are often priced considerably lower than foreign brands. This is particularly true of consumer appliances and Best Buy China has been accused of not stocking enou gh Chinese SKUs. "42 Therefore, and along with the aforementioned differentiation strategy, we strongly believe that Best Buy should narrow down its product range to the most up-to-date products with all brands, but highlight the Chinese brands in its stores.
In terms of services, Best Buy should keep its extended warranties as optional services but it is not what the company should rely on to differentiate itself. Instead, Best Buy should provide an enhanced and more pleasant shopping experience for the upper-middle class. Delivery services, easy parking spots, luxurious retail space, restaurant options… Everything at Best Buy should facilitate the consumers' visit in a way that is consistent with Best Buy's consumer-centric vision, but in a high-end positioning. 4 China's fast growing middle class is without a doubt a tremendous opportunity for Best buy to generate profits abroad, especially in times where it struggles in its domestic market. However, China has proven to be a very hostile environment for foreign electronics retailers in the past, and Best Buy was no exception, the closure of its eight branded-stores in China in 2011 is a striking symbol of the failure of the American electronics retailer's strategy in this particularly complex country.
While Best Buy defined an effective competitive advantage in the US, its American business model was not a source of profitable advantage in China. Perhaps the company should have stuck to its acquisition of Five Star and simply expanded its stores. However, if Best buy did decide to play a significant role in China, we strongly believe it should have copied the Chinese rental system in order to stay price competitive. Moreover, by observing the demographic trends in China, it appears that the upper -middle class is the most promising segment of Chinese population.
Therefore, Best Buy could have opted for a very different positioning strategy and approach this upper-middle class with a higher-end retail experience. Thanks to this strategy, Best Buy would have stayed consistent with its consumer-centric vision while effectively differentiating itself from the two giant retailers in China -Gome and Suning. Best Buy operations nowadays in China are based on "stand-alone" stores, described as "small stores located in strip and similar retail locations", because as mentioned above in China "the presence of stores within-a-store often indicates the strength of retailers, rather than manufacturers"43.
This indicate that Best Buy is following the Chinese model instead of focusing on their competitive advantage before implemented wasn't the best idea to enter China. 15 APPENDIX Exhibit 1: Best Buy – Financial Hilights – 2007 Source: Best Buy's 2007 Annual Report. 16 Exhibit 2: 2007 Best Buy China Total retail square footage Source: Best Buy's 2007 Annual Report. 17 Exhibit 3: Total stores 2009 International segment Source: Best Buy's 2009 Annual Report. Exhibit 4: Total stores at the end of fiscal 2011 Source: Best Buy's 2011 Annual Report. 18 Exhibit 5: Updated Farrell Framework/ Where to Offshore? 1. Define the goal of offshoring (in comparison to existing locations) –2. Establish the decision criteria and the weights that matter most to your company –3. Draw up a long list of possible locations –4. Collect data for each potential location, and forecast labor and other factors –5. Rank locations in order of their attractiveness to your company –6. Gather qualitative data (from experts, consultants, bankers, visits) on a short list and revisit the quantitative analysis (add factors, change weights) –7. Select the location (city and where in the city) Source: Farrell, 2005
Exhibit 6: Sales revenue generated by foreign-owned retailers Source: Euromonitor International, Retailing. 2010. 19 Exhibit 7: Determinant gap map of the Chinese electronics and appliances retail market 20 Exhibit 8: China's Spending Power Forecast Source: The McKinsey Quarterly 21 Exhibit 9: Map of Urban Districts in Shanghai Source: Housing Choice in Affluent Shanghai 22 END NOTES / SOURCES 1. Best Buy Co Inc (BBY). Reuters. Retrieved from: www. reuters. com 2. Best Buy Co. , Inc. Funding Universe. Retrieved from: www. fundinguniverse. com 3. Best Buy Co. , Inc. Funding Universe.
Retrieved from: www. fundinguniverse. com 4. Beth C. March 29, 2012. Best Buy, The Big-Box Model, And The Trouble With Real Estate. Wired. Retrieved from: www. wired. com 5. Best Buy Co. , Inc. Funding Universe. Retrieved from: www. fundinguniverse. com 6. Patton, L. 2012. Amazon Gained Brand Value at Best Buy's Loss, Interbrand Says. Bloomberg. Retrieved from: www. bloomberg. com 7. Patton, L. 2012. Amazon Gained Brand Value at Best Buy's Loss, Interbrand Says. Bloomberg. Retrieved from: www. bloomberg. com 8. Best Buy Announces Locations for Store Closings. March 29, 2012. USA Today.
Retrieved from: www. usatoday. com 9. Best Buy Co Inc (BBY). Forbes. Retrieved from: www. forbes. com 10. Gunther, M. April 11, 2011. Best Buy CEO: Sustainability is all about people. Retrieved from: www. marcgunther. com. 11. Caulfield, B. March 30, 2012. How Amazon Turned The World Into Its Showroom. Forbes Magazine. Retrieved from: www. forbes. com 12. Hodgson July 25,2007. China's Middle Class Reaches 80 Million. Retrieved from: http://blog. euromonitor. com/2007/07/chinas-middle-class-reaches-80-million. html 13. Best Buy. 2006. Annual Report. Best Buy. Retrieved from www. library. corporate-ir. et 14. Best Buy. 2007. Annual Report. Best Buy. Retrieved from www. library. corporate-ir. net 15. Hodgson July 25,2007. China's Middle Class Reaches 80 Million. Retrieved from: http://blog. euromonitor. com/2007/07/chinas-middle-class-reaches-80-million. html 16. Ni, V. March 2, 2011. Best Buy's Withdrawal: American Morals Fail to Transcend Chinese Consumer Market. Retrieved from: www. china-briefing. com 17. Rein, S. March 7, 2011. Why Nest Buy Failed in China. CNBC. Retrieved from: www. CNBC. com 23 18. Young, E. April 2011. Cracking the Chinese Retail Market. Insight. Retrieved from: www. mchamshanghai. org 19. Hellstrom, J. December 27, 2006. Best Buy Opens First China Store. The Toronto Star. Retrieved from: www. thestar. com 20. Best Buy. 2008. Annual Report. Best Buy. Retrieved from www. library. corporate-ir. net 21. Best Buy. 2010. Annual Report. Best Buy. Retrieved from www. library. corporate-ir. net 22. Best Buy. 2010. Annual Report. Best Buy. Retrieved from www. library. corporate-ir. net 23. Best Buy. 2011. Annual Report. Best Buy. Retrieved from www. library. corporate-ir. net 24. Changes Are in Store for China's Electronics Retailers: Which Model Will Win?
May 13, 2009. Knowledge Wharton. Retrieved from: www. knowledgewharton. com. cn 25. Changes Are in Store for China's Electronics Retailers: Which Model Will Win? May 13, 2009. Knowledge Wharton. Retrieved from: www. knowledgewharton. com. cn 26. Best Buy China to Dump Main Brand in Favour of Jiangsu Five Star. March 15, 2011. Euromonitor International. Retrieved from: www. portal. euromonitor. com 27. Hays, J. February 2012. Retail Businesses in China. Facts and Detail. Retrieved from: www. factsanddetail. com 28. Kwok, D. March 2, 2010. China Rural Spending Inspires Retailers' Hopes. Reuters.
Retrieved from: www. reuters. com 29. Kwok, D. March 2, 2010. China Rural Spending Inspires Retailers' Hopes. Reuters. Retrieved from: www. reuters. com 30. Young, E. April 2011. Cracking the Chinese Retail Market. Insight. Retrieved from: www. amchamshanghai. org 31. Hodgson July 25,2007. China's Middle Class Reaches 80 Million. Retrieved from: http://blog. euromonitor. com/2007/07/chinas-middle-class-reaches-80-million. html 32. Young, E. April 2011. Cracking the Chinese Retail Market. Insight. Retrieved from: www. amchamshanghai. org 33. Young, E. April 2011. Cracking the Chinese Retail Market.
Insight. Retrieved from: www. amchamshanghai. org 24 34. Rein, S. March 7, 2011. Why Nest Buy Failed in China. CNBC. Retrieved from: www. CNBC. com 35. MacLeod, C. February 23, 2011. Best Buy, Home Depot Find China Market a Tough Sell; Big-Box Retailers Retrench After Facing Consumer Resistance. USA Today. Retrieved from: www. usatoday. com 36. Ni, V. March 2, 2011. Best Buy's Withdrawal: American Morals Fail to Transcend Chinese Consumer Market. Retrieved from: www. china-briefing. com 37. Young, E. April 2011. Cracking the Chinese Retail Market. Insight. Retrieved from: www. mchamshanghai. org 38. Rein, S. March 7, 2011. Why Nest Buy Failed in China. CNBC. Retrieved from: www. CNBC. com 39. Changes Are in Store for China's Electronics Retailers: Which Model Will Win? May 13, 2009. Knowledge Wharton. Retrieved from: www. knowledgewharton. com. cn 40. Changes Are in Store for China's Electronics Retailers: Which Model Will Win? May 13, 2009. Knowledge Wharton. Retrieved from: www. knowledgewharton. com. cn 41. Shih, V. 2010. China's Highly Unequal Economy. The Diplomat. Retrieved from: www. thediplomat. com 42. Best Buy China to Dump Main Brand in Favour of
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— Understanding arbitration clauses
Understanding arbitration clauses
On Behalf of Payton & Associates, LLC | Feb 7, 2022 | Business Litigation |
In a previous blog, we discussed clickwrap agreements and the features that these documents provided to businesses and business owners. One of the many provisions frequently found in these agreements are clauses that require disputes among the parties to be handled in arbitration.
But what exactly does it mean when a matter is headed to arbitration? Arbitration is an alternative dispute resolution method that keeps people out of the courtroom. The rules of the arbitration are often drafted in a favorable manner for the business or business owner, so it is important that you and your company understand the critical nature of these provisions.
The difference between arbitration and litigation
In an ordinary breach-of-contract case where there is no arbitration provision, the parties generally will be looking at taking the case to court. The parties may try to resolve their agreements before filing a lawsuit, but there can still be claims that find their way inside the courtroom.
When a matter is litigated, there is extreme uncertainty over several factors that can have a significant impact on a case. When a company is selling goods nationwide, a lawsuit can potentially be brought in any location where the goods are purchased. This can be in consumer-friendly forums, which could put pressure on a company to resolve a matter before a lawsuit becomes necessary.
Additionally, it is possible that a lawsuit may be filed and additional parties may join in the suit. A company can find itself forced to defend a class action lawsuit which can be very expensive and time-consuming, both which will have an effect upon the financial future of a company.
You never know which way a judge or jury will decide a matter being heard. Even if all the facts and law are on your side, you still must convince the ultimate fact-finder that you did nothing wrong, and sometimes this can be very challenging.
In arbitration, many of these uncertainties can be removed, or at least controlled, to an extent. You can specify the forum where a dispute will be heard. You can potentially limit the amount of compensation you may have to pay if the decision goes against you, and you can control the costs more easily that you can in litigation.
One major difference between arbitration and civil litigation is a party can appeal a trial verdict. There is no appeal from an arbitration award unless there is fraud affecting the proceeding or other wrongdoing.

redpajama_set_name: RedPajamaCommonCrawl


Today some of our friends came over for a Labor Day lunch. Andrew's friend Ben Parsons (5 months old) came over to play.
I just could not resist this pictures of Ben. You can not look at it without smiling! So cute!
Sooo cute!!! Andrew really is growing by leaps and bounds! NO more fear of Benjamin rolling on him and squishing him! :) I think that pouty picture is adorable!
I love the pouty picture! Isn't it amazing to see how much they've both grown in 2 months?! It goes by way to fast, although, I'm sure there are days that seem endless!
Love the pouty face!!! Too cute.


Computex 2014 - We were at the Computex 2014 GIGABYTE Press Conference earlier today, where the company showed off some impressive hardware. There were copious amounts of overclocking being done, with LN2 going everywhere, but there was a very special Hellboy case that caught our eye.
As you can see, there has been some delicate work done to the chassis. Inside and out, it was a beauty to see in person.


If you haven't gotten it from the previous chapter, the Wamifūko had lost a war a few centuries back. Actually, they lost to the Kosòbyo who gathered up an army, marched across the desert, and throughly trashed them and their mountain fortress. They decimated the Wamifūko, made a few promises to kill every one of them if they ever traveled more than a chain (66.5 feet) from the bottom of the mountain, and then headed back over to their side of the desert.
The Wamifūko didn't take it well but they did try to take over the desert and lost horribly. Over the centuries that followed, they rebuilt their home as a commerce center instead of a war fortress. Well, they didn't have much choice since they lost the top two thirds of their mountain fortress when they lost.
From Sand and Blood, readers might have gotten the impression that the Shimusògo's idea of the rite is uniquely brutal (abandon them in the middle of the desert to get magic or die), but it isn't.
"We moved them to the council hall. Ópi is currently drawing on the sacred scrolls, but I'd rather they were protected then draw them into this. Snakes can't crawl through stone, but we can't leave them there for long. They aren't ready for it."
One of my favorite things is looking at magical powers (the ability to phase through stone in this case) and then see how the culture would grow around it. Wamifūko, for example, have spent centuries honing their abilities to go through stone and were previously a violent clan. They would consider defenses paramount. That means ritual spaces are well protected… by hundreds of feet of solid stone that they can easily pass through.
This ties into their rite of passage. They don't abandon their teenagers in the desert, they can't go far enough to get them really lost, they abandoned them inside the earth. Specifically, in a coffin-sized hole a hundred feet from the nearest surface. They either have to learn how to walk through stone or suffocate to death; remember the more extreme the stress, the more powerful the manifestation.
The other aspect is the spirit's choice. In Raging Alone, there were actually three spirits who were "competing" for Desòchu: Shimusògo, the bird spirit; Hadoramìno, the bull; and Nimimokíro, the vulture. In Sand and Blood, Tsubàyo had two competing for him with him eventually becoming one of the Pabinkúe.
Giving the spirits a choice doesn't really work if they are buried in the ground. Wamifūko allow that choice by waiting longer than most clans before they start the passage. For the clans who allow choice, the rites usually happen in the early to late teens. For the stone clan, however, they wait until their early twenties before performing the rites.
It was suggested to me that my posts are overwhelming, not only in length but information. When I first started doing these, I was thinking about writing about the underlying details of the story, what I was going through when I wrote it, or generally just more information for those who want behind-the-scenes for my novels.
I'm a strong believer in "one person is an opinion, three people make a trend, and if everyone says it is wrong then fix it." So, I have a question for those who read this, do you think there is too much information in these posts?
Determined to perform his duties, Rutejìmo has to leave the besieged city to burn the boy of his wife's mother. This could be very dangerous for a pacifistic priest but Gichyòbi is willing to reveal another one of his clan's secrets.
Read the chapter at https://fedran.com/sand-and-bone/chapter-25/. If you like it, please become a patron or review one of my previous books. Subscribers get access to all my novels, including the first book of my next series and my high-society romance novel.


You may be of the opinion that men have limited options in jewellery. But with our extensive men's collection in pendants, your perception is sure to change. From geometric patterns and abstract designs to religious motifs, there is a constellation of stunning pendants to separate men from the boys. Already our pendants are a huge hit amongst men. But an extra bling of our men's jewellery collection will not only elevate their dashing personality but also help them rediscover their individual style.
If you thought diamonds are just women's best friend, not true. Secretly men too have a crush on this dazzling rock. But with brawny designs on offer, now they do not shy away from confessing their love for diamonds. A diamond-studded men's pendant set in gold appeal to them as much. They are also crazy about metal pendants in yellow and rose gold.
But men will be men. No matter how passionate they are about sparkle and shine, going out to shop for latest men's jewellery on a regular basis is not their cup of tea. But yes, if made available to them at their doorstep, they'll surely go for it. Because they too like to keep their fashion game on point. This is why we constantly keep upgrading our men's jewellery collection with latest designs in men's pendant.


Join a naturalist for a 45-60 minute turn on our ski trail and then come back inside to warm up with a hot beverage. Must have own skis and program is weather and condition dependent. Meet at the ski trailhead by the Nature Center amphitheater.
Minimum of 2 people needed by the Monday before. Maximum of 25 people.


Kid or adult, everyone has a role model in his/her life. Some of them are celebrities, some are our relatives and for some, they are people around them.
However, adults don't get influenced on a larger scale, kids do. Kids tend to replicate behavior and nuisance from their idols.
A good role model will have great benefits for your kid. A bad one will leave trails of disappointments on its path.
Kids can choose role models and companies on their own without knowing. As an adult and a parent, it's your responsibility to help them choose the better one.
Kids look up to their parents primarily as their role models and idols. A kid will copy almost everything from its parents. Habits, behavior and even tone of talking would seldom be copied. Try to be a better version of yourself every day for the sake of your kid.
A negative surrounding will never have a positive effect, not on adults and not on kids. Improve and enhance their surroundings and vibe around them.
Whenever you are not there for your kids to look up to, who takes the charge? Television and digital content. Make sure the content and channel they watch are friendly and polite. Characters in cartoon shows can be violent and rude, filter the content for them.
A kid might not know the difference between good and bad, you do. You can help them differentiate between both. Help them decide what habits to pick and from who. Make sure to notice the side they are leaning towards.
Introduce them to a well-behaved company for them. Not only looking up to adults, but kids learn from following their friends too. A few ice ones won't hurt the apple of your eye for sure.
A kid has an individuality and firmness of his own character which should never be questioned. But, a heavier influence on his mind by a role model can't be denied as well.
Influences have occurred when a kid notices and behaves like his role model. More or less, he tries to become a copy of his idol. As a parent, you must showcase positive as well as noble role models to help your child grow more maturely.


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Visa Invest $40 Million in Crypto Startup, is Mainstream Acceptance Here?
Electronic payments giant, Visa, along with VC firm, Blockchain Capital, have raised $40 million for a Series B funding round at digital asset custodians, Anchorage. The little-known startup seeks to advance institutional participation in cryptocurrencies. And this latest round of funding brings a total of $57 million invested since 2017.
While Anchorage is a relative newcomer to the space, both Visa and Anchorage are participating companies in Facebook's Libra project. And despite the criticisms that beset Libra, that hasn't stopped them, as well as a host of others, from wanting to get in on the crypto game.
Anchorage Provides Custodial Services With A Difference
The goal of Anchorage is straightforward. They intend to bring institutional investors to the space by providing secure custodial solutions. Co-founders, Diogo M?nica and Nathan McCauley wrote:
"Weve started with solving the biggest problem facing our industry: making it safe for institutions to hold and use crypto. Since starting down this path in 2017, weve built the most secure digital asset custody solution on the market, and on-boarded some of the leading institutional investors in the space as clients, including Blockchain Capital, Polychain, Paradigm, and a16z crypto."
Custodial services are nothing new. But Anchorage differentiates itself on a number of fronts, including participation features such as offering returns for staking and inflation, as well as support for on-chain governance.
But perhaps the most pertinent difference lies in their next generation cold storage solution. It relies on biometric software, as well as multiple approval systems, including human review, to secure the digital assets of clients. According to M?nica, this is particularly advantageous because:
"…investors gain greater access to and control over their holdings, enabling them to freely and actively participate in cryptocurrency networks."
In this respect, the co-founders draw parallels with Visa, in that, Visa also provides "financial plumbing." To which SVP and Head of Fintech at Visa, Terry Angelos, said:
"This investment is consistent with Visas global strategy to partner with and invest in emerging fintech companies…Were pleased to add Anchorage to our growing investment portfolio.
Visa's Investment Indicates Growing Mainstream Acceptance
Not so long ago, legacy US financial organizations, including Citibank, JPMorgan, and Bank of America, moved to ban crypto related transactions. This had a trickle-down effect of smearing cryptocurrency in the minds of no-coiners.
Yesterday in Congress Rep. Sherman called for a bill to ban all #cryptocurrencies, due to concerns about illegal activities. This doesn't surprise us, as his top campaign donations are coming from banks and credit card companies. #crypto
— Weiss Ratings (@WeissRatings) May 10, 2019
And while Visa had concerns over KYC and AML, they remained somewhat openminded when it came to cryptocurrency. Speaking to CNBC in October 2018, Visa CEO, Al Kelly talked about the threat of cryptocurrency to Visa's business:
"Certainly not in the short to medium term in any way. And I think if we actually think that crypto starts moving from being more of a commodity to actually really being a payment instrument. If it goes in that direction, we will move in that direction. We want to be in the middle, Jim, of every payment flow in the world regardless of how it happens or what the currency is behind it. So if we have to go there, we will go there. But right now, its more of a commodity than a payment vehicle.
Indeed, with Visa's continual investment in crypto companies, it would seem as though that moment has happened. But more than that, Visa's interest in cryptocurrency is an indication of growing mainstream acceptance. Which is a term that has often been banded about in the past.
But now, in the present, there is no denying the evidence that exists throughout the space. And while a number of significant hurdles still exist, most notably in a balanced global regulatory framework. It feels as though the worst is behind us.
The post Visa Invest $40 Million in Crypto Startup, is Mainstream Acceptance Here? appeared first on NewsBTC.
In the Daily: Amun Funding Round,
In this edition of The Daily we cover a funding round by a Swiss startup that lists crypto instruments on the SIX exchange, an expansion of the
Blockchain Startup, Libra, Earns $15
Image courtesy of Twitter (@LibraT3ch)New York-based blockchain startup, Libra, has raised $15 million from its recently concluded Series B funding
Crypto Tax and Accounting Software
Traditional venture capital investors seem to think that the field of crypto reporting apps is appealing. Cryptocurrency tax and accounting software
Blockchain Startup Raises $24.8 Million
Libra, a provider of financial reporting services for the crypto assets ecosystem, has closed a $15 million Series B funding round, bringing the
Libra Credit Raises over $16 Million
Libra Credit Receives Over $16 Million Dollars to Democratize Lending and Bring Liquidity to the Crypto Marketplace Libra Credit, co-founded by
Telecom Giant Comcast Leads $3 Mln Seed
The telecommunications conglomerate Comcast has just led a VC seed round for Blockchain startup Blockdaemon, raising a total of over $3 mln. New


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redpajama_set_name: RedPajamaGithub


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Home / Editorial / Ukrainian Military's Violations Of The Ceasefire Regime
Ukrainian Military's Violations Of The Ceasefire Regime
The Levant Sep 20, 2015	Editorial, News Leave a comment
The Levant – – Ukraine's military over the past 24 hours violated the ceasefire regime for six times in the self-proclaimed Lugansk People's Republic (LPR), the people's militia said on Sunday.
"No victims have been reported," the representative said. "Six violations were registered between 6a.m. on September 18 and 6a.m. on September 19."
On September 12, in Berlin, foreign ministers of the Normandy Four (Russia, Germany, France, Ukraine) discussed settlement of the conflict in Ukraine. Despite of no evident progress, the parties were positive about the talks. Russia's Foreign Minister Sergei Lavrov said he had a positive impression from the talks. "There have been certain arguments concerning the order of steps regarding the constitutional reform, the necessary actions from Kiev's authorities in providing a permanent special status for Donbass, but the arguments we had, I believe, have been heard."
Germany's Foreign Minister Frank-Walter Steinmeier said "as before, it was not easy, however, I can say with relief that there has been less confrontation than before. We have been able to move forward on some issues," he said. The talks also showed "how difficult every step forward was. What we have achieved today was a result of hard work and must be implemented by the Contact Group." "There is hope that today's meeting will contribute to defusing tensions in eastern Ukraine and also that it was part of preparations for the "Four's" summit due on October 2," the German foreign minister said.
Source: Tass
Tags Donbass Frank Walter lugansk Russia Ukraine Ukraine's Military Victims violations
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Maple - Cappuccino 3/8" x 5"
The Merion Collection is a 3/8-inch-thick engineered product that is available in hickory, maple and oak. Manufactured in the United States and offered in random lengths up to 4 feet, Merion offers a classic hardwood flooring look with the ease of locking installation. Available Dimensions: 5"
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Hickory - Winchester 3/8" x 5"


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Millions set to take part in Veganuary
January 10, 2022 // by Sub Editor// Leave a Comment
Image courtesy of pixabay
Veganuary is a non-profit organisation that encourages people to adopt a vegan diet during January with many in the UK expected to participate.
The campaign includes sharing information about veganism and plant-based products through social media.
Veganuary shared on their website that "the current way we produce food is highly inefficient, unsustainable and won't allow us to feed a growing global population.
"That is why we advocate a change towards more plant-based alternatives and ultimately, a vegan world," it reads.
Ronak Farhadi, a caseworker at nationwide, has been vegan since 2016 and has felt the health benefits.
"A standard vegan diet in my opinion is far better than other diets, however this is purely personal and just because I thrive off of a vegan diet doesn't mean that everyone else is," she said.
"It's just good to be mindful about where you get all the nutrients you need from foods, the same way I'd encourage a non-vegan person to do the same".
Veganuary aims to educate people about a plant-based lifestyle without the pressure of permanent change.
"It is a great way to introduce a plant-based diet in the life of a person who eats otherwise," says Farhadi.
Veganism has grown rapidly in the last few years, with most UK supermarkets and brands introducing extensive vegan ranges.
Farhadi lists a few options available such as Tesco's 'Plant Chef', Sainsbury's' 'Plant Pioneers', Asda's 'Plant Based' ranges.
There are endless amounts of options ranging from ready-made meals to desserts and even confectionary.
Veganism isn't always accessible to everyone due to socioeconomics.
Miss Farhadi said that "if it is in the best interest and within the affordability of a person to live on a non-vegan diet (therefore likely buying less fresh produce) then so be it!
"There should never be an expectation, pressure, or guilt placed upon anyone if they cannot afford a particular lifestyle even if they wish to.
"My personal advice is to scope it out and to try it if a person wants to for any reason that they may resonate, but don't feel pressured or guilty if unable to stick with it," she says.
Mark Lewis, the owner of Sunrise Organics, a whole-food shop on St. Micheal's road, which was the first all vegan store in Bournemouth.
Image courtesy of Sunrise Organics Bournemouth.
"We do promote and support Veganuary but we don't get as many inquires about it anymore as it's so much more mainstream. There's a lot more information available than there used to be," he says.
Lewis believes that Bournemouth does "extremely well" in terms of plant based options.
"Considering the size of the town we are really well represented for vegan options- having a large student population especially helps."
Veganuary expect that by the end of January 2022, the movement will exceed two million participants.
For more information on Veganuary visit https://veganuary.com
About Sub Editor
View all posts by Sub Editor
Category: News TopTag: health, lifestyle, vegan
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Biting Less Than They Can Chew
Posted on June 26, 2014 by Kenneth Warren
The National Environmental Policy Act (NEPA) requires federal agencies to evaluate the environmental effects of their proposed actions. When a proposed action may cause significant environmental impacts, NEPA requires the agency to prepare an environmental impact statement that evaluates alternatives including measures to avoid or mitigate impacts. The agency may not divide a single project into separate bites and find that each in isolation would not have a significant environmental impact. Instead, regulations issued by the Council on Environmental Quality require the agency's environmental review to encompass connected actions and similar actions.
In Delaware Riverkeeper Network v. FERC, Texas Eastern Pipeline Company sought certificates of public convenience from the Federal Energy Regulatory Commission (FERC) authorizing construction and operation of the Northeast Upgrade Project, one of four projects to improve the Eastern Leg of a natural gas pipeline known as the 300 Line. FERC evaluated the Northeast Upgrade project separately from the others on the ground that each project was designed to provide natural gas to different customers pursuant to different contracts within different time frames. FERC concluded that the potential environmental impacts were not significant and terminated its evaluation by issuing a finding of no significant impact. Environmental organizations petitioned for review of the FERC action on the ground that the four pipeline projects were interrelated and cumulatively would, in their view, clear hundreds of forest acres, fragment habitat and adversely impact wetlands and groundwater in significant ways.
On review, the Court of Appeals for the District of Columbia held that FERC's segmented environmental review failed to meet NEPA's requirements. The Court reasoned that all four projects involved the construction of a single, physically interdependent pipeline, were undertaken in a close time frame and were financially interdependent. No customer was a customer of a single pipeline segment and no logical justification existed for the choice of where one project ended and the next began. Accordingly, the Court remanded the case to FERC to review the pipeline project as a whole, including its cumulative impacts.
FERC now faces the daunting task of determining how to implement the Court's holding in other situations. To be sure, in many cases FERC will be able to readily ascertain whether projects involving a single pipeline are physically, financially and temporally interdependent. But in some areas of the country, transmission pipelines are being installed contemporaneously with natural gas wells, gathering lines physically connecting these wells to the transmission pipelines, and supporting roads, impoundments and other infrastructure. Whether these arguably related projects are sufficiently connected or similar to trigger joint NEPA review may turn on whether they involve different ownership, distinct functions, separate financing and customers and clear physical divisions. Resolving these questions may be no easy task, and even then does not necessarily determine whether a full environmental impact statement must be prepared. When performing an environmental assessment of multiple projects together, FERC may still conclude that the environmental effects are insignificant. With so many steps in the analysis that may be controversial, a new wave of NEPA challenges is likely on the horizon.
One postscript for practitioners before the D.C. Circuit. In a punchy concurring opinion, Judge Silberman expressed his dismay at the submission of a brief "laden with obscure acronyms." For those of us in the environmental bar for whom use of acronyms has become second nature, beware.
Tags: natural gas, pipelines, NEPA, citizen suit
Energy | NEPA
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Light Bulb Baking in the News
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Ottawa Citizen writer, Bruce Deachman, talks with Light Bulb Baking author, Todd Coopee, about his evolution from toy collector to author and discusses why the Easy-Bake Oven has captured the imaginations of children for generations.
Bake Your Cake and Eat it Too! Light Bulb Baking: featured on the front page of The Toronto Star's Life section
The article provides an excerpt from the book that focused on the history of toymaker Kenner's ubiquitous oven and its place in North American toy culture.
Todd Coopee chats with Radio Host Mike Bullard about the appeal of the Easy-Bake
Author Todd Coopee will be talking with Mike Bullard on his show, Beyond the Mic, about Light Bulb Baking: A History of the Easy-Bake Oven.
Todd Coopee talks to Don Landry on News Talk 1290 CJBK about Light Bulb Baking
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Light Bulb Baking: A History of the Easy-Bake Oven Book Review and Interview
Read Pop Rewind for a great interview and review of Light Bulb Baking!
Book Signing in Chicago
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Patty Wetli of DNAinfo Chicago chats with Todd Coopee in advance of Chicago book signing at Angel Food Bakery.
The Globe and Mail: Why the Easy-Bake Oven Continues to Fascinate Us
In the The Globe and Mail article Why the Easy-Bake Oven Continues to Fascinate Us, the author ponders the staying power and lasting appeal of the Easy-Bake Oven. While reflecting on his own childhood memories of the perennially popular toy, the article takes a look at the history and borrows from Light Bulb Baking: A History of the Easy-Bake Oven.
Light Bulb Baking: Photo Booth Fun
We set up a photo booth at the Light Bulb Baking book launch and signing—it was a big hit!
Follow Light Bulb Baking
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