Arena Chapel Essay Example | Topics and Well Written Essays - 1750 words

Arena Chapel - Essay Example The collection and distribution of money in order to obtain a profit, or usuring, was a very serious sin during this time period. Scorvegni thus more than likely had the chapel made in order to atone for his father's crimes. This was a way for Scorvegni to regain his family's name and thus to cleanse himself of anything his father may have done in the past. This can best be displayed by Scorvegni's dedication of the chapel in part to Santa Maria del Carita de Arena, the Virgin of Chastity, to try and remove the greedy stamp that had been applied to the family. Furthermore, within the Chapel itself, the sin of usury can be viewed in several of the chapel's frescoes. Perhaps the most powerful vision of this present in the chapel is the picture of Judas accepting money to betray Christ. Another picture displaying this image depicts Christ banishing the Temple merchants, and the addition of the usurers being hanged in Hell from their money bags. Scorvegni thus made a serious attempt to l et others know that he did recognize the sins of his family as serious ones. Scrovegni's development of the chapel was meant to be viewed as a reflection of his piety, and his atonement for the sins of his father. He was also following in the footsteps of the practice of the time, for several wealthy merchants had chapels constructed within their palaces. This seems to present us with a bit of conflict of motivation for the chapel's creations, which is also reflected in some of the chapel's pictorials: Among the factors that relate specifically to Enrico Scrovegni are a possible desire to expiate his father's usury and at the same time to make his own expenditure conspicuous; an ambition for status combined with a fear of damnation; a desire, on the one hand, to be regarded as an ascetic devoted to the cult of the Virgin, and, on the other, to secure for himself a fitting property to serve as his personal monument. (Norman 92) It appears quite possible that the Chapel was consecrated on March 25, 1305, during the Feast of the Annunciation (Norman 92). The first reference to the Arena Chapel was discovered in the poem The Documents of Love composed by Barberino. The poem alludes to Envy which "Giotto painted excellently in the Arena at Padua." Envy is just one figure of sins and vices found on the walls of the chapel. The chapel is a very interesting composition that tells a story within the cycle of its frescos. The cycle of the pictures displays the story of the Life of the Virgin as well as the Life of Christ. The presentation of the Virgin's story seems highly significant since the chapel itself is dedicated to the Virgin. Another interesting part of the chapel's dedication is the area reserved for the Virgin of the Annunciation, which also helps to contribute to the Annunciation on the Chancel Arch. The frescos here represent the end of the story of the Virgin and the beginning of the story of Christ (Cole 98). The story starts on the higher level on the south wall, with Joachim and Anna, the parents of the Virgin. The story then progresses from east to west. Viewers first see the Expulsion of Joachim from the Temple and the finale of this occurrence, when Joachim and Anna discover each other at the Golden Gate.

How can English Government Gain Trust Article Example | Topics and Well Written Essays - 1500 words

How can English Government Gain Trust - Article Example According to the report  in the view of many scholars it is the prime duty of the government to gain an adequate level of public trust because governmental bodies are fundamentally supposed to guard the interest of people. If the general public has not been able to trust government officials anymore then it simply means that government has failed in terms of representing interests of the public. However it is also important to note that ordinary people cannot decipher the level of government’s ability to fulfill public interest and therefore the duty of evaluating governmental machinery’s tendency to serve the public lies with political analysts, writers and other intellectual persons such as religious scholars.  This paper outlines that  the prevailing law and order situation in the society is considered as an effective measure of government’s power to protect public interests. Moreover the financial well-being of each and every citizen can also be taken a s a mean of determining governmental effectiveness. Additionally citizens trust those governments that provide them with state of the art medical services at an affordable price.  The governmental bodies can do that by bettering the overall law and order situation of the society and it is also expected to sponsor sporting musical and cultural events in a particular society.  The e-mechanism causes the problems of people to resolve quickly that fosters trust and respect for the government.... Additionally citizens trust those governments that provide them with state of the art medical services at an affordable price. Based on the above argument government can win public trust by offering an ample amount of job and business opportunities while it has to provide healthcare and safety services as well. According to Offe the governments should work towards providing the citizens with a fulfilling life (42). The governmental bodies can do that by bettering the overall law and order si tuation of the society and it is also expected to sponsor sporting musical and cultural events in a particular society. Levi added that the role of government in terms of releasing the citizens from a job and work stress is a significant indicator of growing social activities in the community (6). Silcock identified electronic form of government as an ideal way of providing public services because in this way the governmental issues are run with the help of computerized and automated system. The e-mechanism causes the problems of people to resolve quickly that fosters trust and respect for the government (88). According to Wang and Wart the governments that involve citizens in the decision making process will reap more trust than those that follow an authoritative style of governance (268). Thus the decentralized chain of command can really help the government in fostering trust within people. Nevertheless it is interesting to know that those governments that follow the raw public o pinion in order to devise policies tend to fail because the mere public viewpoint is a crude way of policy development. The governments are suggested to invite the opinion of experts before making critical decisions.  

Surging poverty in a key to crime Essay Example | Topics and Well Written Essays - 1250 words

Surging poverty in a key to crime - Essay Example You will not be permitted or approved to walk that street, you are not even allowed to sit or sleep and it is strictly prohibited for you to roam around like a normal citizen of the society. This forces me to ask a simple question that is being poor a crime itself or is being poor a doorway to crime? If questioned, City officials come up with a self-satisfactory answer that the State’s laws are constituted in a way, not to discriminate. They have their own way of explaining it. If someone is lying down on some random sidewalk, whether that someone is wealthy or a homeless, he has violated the ordinance. Another way these officials put up the law and equality is by saying that it actually forbids both, the rich and the poor to sleep under bridges. This arouses a thought: why would the wealthy even consider of sleeping under a bridge when he knows he has a better, luxurious and comforting place to spend his night. Moreover, the recent study indicates that poverty has intensified as recession has continued to eliminate jobs, thus generating higher poverty ratio. Deriving information from the study highlighting poverty and homelessness, conducted by the National Law Center shows that the statistics of poor public have continuously increased since the year 2006. As a result, a higher ticketing ratio and an increased number of arrests have been observed. People have been ‘taken in’ for more neutral violations such as littering, holding an open bottle of alcohol or jaywalking (Ehrenreich 2009). Therefore, the connection between the two, poverty and crime has been a controversial debate. However, it can be said that in our country there is an obvious relationship between them.  Poor in our society make up the overflowing majority (Williams 2007). It is well said that an improved society can be evaluated by how it administers the poor. In the light of this saying, the Americans are a hopeless failure. Current situation indicates that on a nationwid e scale, up to 20% of children reside in poverty. In Los Angeles, almost 30% of children suffer from poverty (Holmes 2002). The brutality of the official’s temperament towards the poor, indigent and homeless in our society can at times be breathtaking. ‘Food Not Bombs’ was the name of a group that started to function a few years back. The group’s motive was to feed the poor in the society and therefore, launched free vegetarian food in public parks, with a hope to serve hungry people nationwide. Not long after, when this activity was initiated, many cities including Las Vegas approved an ordinance that forbade food sharing with the hungry and poor in public places. As an outcome, most members of this public service group were taken into custody. This is yet another cause that further spoils our social situation. Such acts play an important part towards criminalizing people (Ehrenreich 2009). Furthermore, criminal justice professors and sociologists have fo und mutuality between poverty and crime.  Logically people who are victims of poverty are much likely to be connected and involved in criminal acts such as street crimes, larceny, burglary and shoplifting. As per the evaluations, city of Detroit is one of the poorest regions in America and  Michigan’s economy is estimated to have the worst economic conditions as compared

Cultural Relativism Essay Example | Topics and Well Written Essays - 500 words - 2

Cultural Relativism - Essay Example the word itself in layman’s dialect means all cultures are equal and no culture is above another, and we should tolerate the differences that make up our cultures. Today’s cultures are engaging in closer interactions that results in ethnocentrism, which is the negative attitude towards a different culture and cultural relativism, which is attributed to bringing about positive association with different cultures. As a way of acclimatizing to the rapidly changing societal world, cultural relativism has proved to be the rather a proficient doctrine. However, it was brought to the public limelight as a solution to the Nazi holocaust aftermath where therapy proved unreliable. Nazism took form as another cultural practice and the victims had to practice cultural relativism (Nkeonye, 1994). That approach among many others has proved that cultural relativism fails in moral theory scrutiny. Cultural practices like slavery and genocide have no moral theory grounds to be accepted among the ideals and ideas of cultural relativism. The major problems of cultural relativism are between two cultures; modern and western culture. The modern cultures, be it in religion or government, is abusing the notions of cultural relativism to use social unrest for their benefit simply because it will be understood as a cultural practice when it is clearly immorality. This is a problem of cultural relativism in many ways according to whichever perspective you may prefer. Societal moral standards are being violated and are excused under the notion of cultural relativism. Nkeonye (1994) points out clearly cases such as the media, using the cultural acceptance notion to make pornography acceptable to our children. For instance, today every production obviously violates moral standards. This is a problem simply for the reason that the western cultures are misusing cultural relativism notions to advance the beneficial agenda of a few; thus utterly violating everything. Research indicates

Culture icon Essay Example | Topics and Well Written Essays - 250 words

Culture icon - Essay Example This is especially true with John and Paul who wrote some of the most widely-known songs ever. John, on his own, can be best remembered in his song entitled ‘Imagine’ with its very familiar lyrics and melody. His influence was not limited to the world of music. He also became very outspoken about many aspects of his beliefs. These things are reflected in his songs. John Lennon was an advocate of peace and he was against the Vietnam War where soldiers get killed every day. The Hippies who were popular in the 1960s considered him as being one of them and this acceptable to him. He became, by choice or not, a political figure. Then, his abrupt death when he was assassinated only added to the idealism that was regarded on his life. â€Å"If nothing else, John Lennon’s death clearly marked a shift from the imagery of stardom to that of heroism† (Mà ¤kelà ¤ 211). His songs and words remained to be very influential. His beliefs on love and the importance of peace remained to be relevant even to this day. These are the things that make John Lennon a cultural

Rene Descartes six meditations Distinction of Self from the Body Essay Example for Free

Rene Descartes six meditations Distinction of Self from the Body Essay Rene Descartes was a French Mathematician and a modern Philosopher who developed an original philosophy based on sciences aimed at being stable and likely to last. His method was based upon premises of senses, reason, doubt and belief. Like most philosophers his quest was for Truth and knowledge. However the nature of Truth and knowledge remains debatable among philosophers to this day. It is worth noting that a contemporary modern philosopher said at the beginning of the 21st century, the beginning of ‘ Information Age ‘ , â€Å" Study of philosophy is now reduced to the study of language. We are distinct from our bodies ! Since the advent of human civilization many men have preoccupied themselves with philosophical thoughts of the distinction of self from the body. These metaphysical ideas , sometimes ontological, lie on the borderline of religious theology and philosophy. With discoveries in the field of physical sciences like Einstein’s ‘ Relativity ‘ the human conception of space, matter, time and forces has become clearer. This has further fuelled interest in the field of philosophical investigation of the relationships between mind, matter and the supernatural. This activity is a commonplace past time of the educated and curious. The scientific and methodological study of any branch of knowledge involves the formulation of – Thesis, Hypothesis and Anti – Thesis. Every Thesis has an Anti–Thesis. Is the self distinct from the body ? The senses are deceptive! What we see is spurious. Our memory deceives us. Hence a Truth that can be established is that nothing is certain. Hence it can be assumed for the time being that our senses and bodies are not true. We are probably distinct from our bodies. Rationality is questionable ! Man is known as a ‘ rational animal’. But the idea of rationality and the distinction between a man and an animal are debatable. Man certainly has to face an obvious ‘ identity crisis’ if material knowledge is to be trusted. The idea of a soul distinguishes self from the body ! All phenomena can’t be explained by sense-perception, thinking and physical bodies. They have to be attributed to a super-natural phenomena , ‘ the soul’. If the self is to be distinct from the body it could be in the form of the soul. The power of self-movement, sensation and thought as according to the judgment of Rene Descartes are foreign to the nature of body. These conclusions are based on Descartes philosophical experiments with himself using the faculty of his mind. He uses his mind to probe the co-relation between subjectivity, objectivity and their distinctness from body. This method has been Descartes most powerful tool and which makes him unique in the family of modern philosophers. The awakening during sleep is an experiment. Descartes argues that when asleep he has perceived through senses many things he can’t perceive through senses while awake. These are once again Descartes experiments with himself. Descartes is careful nough to recollect his thoughts and experiences for the object of philosophical study. ‘Thinking’ is separate from ‘being’. Descartes uses his imagination to conclude that he might exist separate from his body as a source of ‘thinking’. In his legendary famous statement he once declared , â€Å" I think therefore I am. â€Å" Human mind and judgment are prone to error . Hence the truth has to be away from the Human mind and body. Descartes reached a conclusion that there does exist a God. God is perfect in his judgment because his mind is infinite. This is obviously not true with human beings. Hence their judgment is subject to errors and faults. There is also a philosophical method of reaching the Truth by elimination of errors. Considering the belief that their does exist a Universal Truth away from the limitations of the human body it is reasonable concluding that we are distinct from our bodies. The existence of God is an irrefutable evidence ! Thesis that there does exist a God strengthens the concept of distinction of self from the body. It would be contradictory associating God to a body; God, Descartes assumed is infinite. Also, the idea of life after death in the form of soul which is the belief of literally every religious heology strengthens the belief that we are distinct from our body. Rene Descartes experimented with the mind ! Descartes claims in ‘ The Fourth Meditation’ that he has trained his mind to separate from his senses and dwell only in the intellect. The result were observations and conclusions that he was totally separate from matter. Descartes uses his ability at philosophical meditations, the popular method of study and research by a philosopher. The Human Will Descartes concludes extends beyond the bodies. With the human will, many philosophers believe it is possible to meditate and separate the consciousness rom the body. Modern Science refutes distinction of body from mind thesis. Descartes himself was once a scientist before he took to philosophical pursuits. A scientist, for example a Doctor would immediately rubbish the claims of the separation of self from the body citing encyclopedias of scientific evidence. Carl Jung’s Experiment nulls the idea of a soul. This famous Psychologist conducted an experiment and concluded that there is no soul ! The distinction between self and body is not recognized by modern psychology books. Philosophical methods might be fallacious. Philosophers employ methods based n speculations and subjectivity. These might be inaccurate and also subject to a difference of opinion even amongst philosophers. Whereas science is based on empirical experiments which no one can challenge once accepted and established. There is a self concept in the science of Psychology. The self concept has an aura of mysticism associated with it. No one can see, feel or touch the self concept. It is reduced to ‘I’ and ‘me ‘ from the common sense point of view by nearly all domains of knowledge. Popularly the psychologists associate the self concept , the I – Self, with the ndividual and his states of mind – Conscious, subconscious and the unconscious. Body- Ego concept can be an evidence of self and body singularity. The genesis of mental structure advocated by Hartmann, Kris and Loewenstein advocate an ego state known as the Body Ego. They suggest with impressive arguments that the ego and the id should be conceived the result of an undifferentiated state. Conclusion : The embodied self concept generates a tension. The stream of consciousness can be believed to be located within the boundaries of a creature. The self ( its memories, eliefs and traits ) might not located within the boundaries of the creature. Our intuition equates ourselves with our consciousness. A point to be noted is that there is a dualism not only between mind and body but also between consciousness and mind ! The ancient scholarly philosophical debate ‘ Self is distinct from the body ’ is a challenging interdisciplinary study. However, the philosophy student is best equipped to handle it. The debate seems to have no end. That is what makes a debate an interesting academic field of study. Philosophers and philosophy students have to be cautious that in their xuberance they do not unwittingly clash with scientific evidence or infringe with cherished religious and theological beliefs. The society punished Galileo because he was ahead in time than the people. The times have changed remarkably. These days society is more tolerant to new ideas. Even blasphemy against Jesus doesn’t shock the West anymore. Recent headlines of a popular newspaper says that the church has forgiven Beatles for claiming they were more popular than Jesus. Philosophers and philosophy students can play a timely role in all ages. The clear message is that they need not ostracize themselves from the society.

The Boston Beer Company Essay Example for Free

The Boston Beer Company Essay Jim Koch began selling Sam Adams beer from bar to bar out of a brief case in April 1985. He sold unlabeled bottles kept cold with chill packs from his briefcase. His sales tactic was the following simply 10-second pitch: â€Å"Try this new beer. It’s handcrafted in small batches. You’ll like the taste. † (Hyatt, 2010) At the time, the craft beer industry in America was virtually non-existent. By 1989, sales of Sam Adams had grown to 63,000 barrels. In 1996, Sam Adams sales had reached 1. 2 million barrels. (Wikipedia, 2012). The success of the brand served as the catalyst for what many call the microbrew revolution. By 1995, there were approximately 600 small, local and regional breweries throughout the United States. Today, the Boston Beer Company (producer of Sam Adams) employs over 800 workers and brews over 2 million barrels of Sam Adams beer annually. It is the largest of the craft breweries in the United States. (Boston Beer Company) The craft brew industry accounts for about 1 percent of the domestic beer market, which is dominated by giants MillerCoors and Anheuser-Busch InBev. This is has required a remarkable level of growth since the early 1990s. In 2011, the industry grew 13 percent by volume (barrels) and 15 percent by retail dollars. Domestic craft beer sales reached 11,468,152 barrels in 2011, up from 10,133,571 in 2010. This growth has occurred despite the overall $96 billion domestic beer market contracting in the past few years (down 1 percent in 2011 to 199,937,239 barrels). (Brewers Association, 2012) The craft brew industry is comprised of several types of breweries which range in annual production from a few barrels up to 6 million barrels. The Brewers Association recently revised the upper limit from a previous point of 2 million barrels in 2011. (Nason, 2011). The industry classifications are the following: * Nanobreweries: Breweries which produce less than 30 barrels per year. * Microbreweries: Breweries classified by their annual production volume, which is up to 15,000 barrels per year. In addition, 75 percent of the beer produced is sold outside of the brewery. There are no set guidelines on the inputs or techniques used to produce the beer in order to be classified as a microbrewery. (Kleban Nickerson, 2011) While the term is often used interchangeably with the term ‘craft beer,’ they are actually not synonyms. A craft beer must contain at least 50 percent traditional malt. (Brown, 2012) * Brewpubs: Restaurant-based breweries in which more than 25 percent of the beer produced is sold onsite, often directly from the brewery’s storage tanks. A majority of these are located in the northeast. * Contract brewing company: Breweries which outsource their production to other breweries subject to exact brewing specifications. The contract brewing company handles all marketing, distribution, and selling responsibilities. (Brewers Association, 2012) Boston Beer Company used to be classified as a contract brewing company. However, from 2007 to 2009 the company’s production at company-owned breweries increased from approximately 35 percent to over 95 percent. (Datamonitor, 2011) * Regional craft brewery: Brewers which produce from 15,000 to 6 million barrels of beer per year. Less than 25 percent of the brewery is owned or controlled by a non-craft alcoholic beverage industry member. In addition, at least 50 percent of its production volume must be in all-malt beers. (Brewers Association, 2012) The Boston Beer Company is now a regional craft brewery. The total number of U. S.craft breweries passed 2,000 in 2012, with significant growth since 2009: Breweries (#)| 2009| 2010| 2011| Regional Craft Bwr. | 71| 81| 88| Microbreweries| 505| 615| 789| Brew Pubs| 1,020| 1,053| 1,063| Total| 1,596| 1,749| 1,938| (Brewers Association, 2012) The industry is based on a three-tiered system of distribution in which the producers partner with wholesale distributors who provide transportation and refrigerated storage to retailers. There are hundreds of distributors in the industry, and over 630,000 retailers. There are over 220 million potential customers (over the age of 21 yrs.) domestically. (Beaudette, 2011). States control the regulation of the industry, and typically collect taxes through the distributors, rather than attempting to work with hundreds of thousands of retail outlets. (Beer Distributors of Oklahoma, 2010) Company’s Dominant Features The Sam Adams brand was named for the Boston revolutionary who was also a brewer. Samuel Adams Boston Lager made its debut in April 1985, when it was served in approximately 25 Boston bars and restaurants. At this point, the company had two employees: Jim Koch (founder) and his partner Rhonda Kallman. Sales reached 500 barrels by the end of the year, and the company expanded rapidly from there. (Samuel Adams, 2012) The company went public as the Boston Beer Company in 1995, selling shares of Class A common stock on the New York Stock Exchange using the ticker symbol SAM. Jim Koch owns 100 percent of the company’s class B stock, which grants him control over all decision-making responsibilities of Boston Beer Company. They have three breweries located in Cincinnati, Boston and Breinigsville (Pennsylvania), and produce over 30 styles of beer. (Boston Beer Company) This includes its seasonal brands: Alpine Spring (January-March), Summer Ale (April-August), Octoberfest (August-October), and Winter Lager (November-January). (Wikipedia, 2012) The company currently produces over 2 million barrels of beer annually, and is the largest craft brewery in the industry. It is the second largest American brewery by sales volume (to D. G. Yuengling and Son). The company has been a pioneer within a growing differentiated niche market within the alcohol beverage industry. The Boston Beer company builds its competitive advantage by focusing on innovation and quality (freshness). The company (and craft beer industry as a whole) cannot compete with Anheuser-Busch InBev and MillerCoors based on price due to lack of scale (though Sam Adams is more widely distributed than any of its craft industry members). The company began freshness dating back in 1987. It soon followed this with an amnesty program for its wholesalers which allowed beer that was three months past its expiration date to be returned for a partial refund. In more recent years, the company has enacted its Freshest Beer in Town initiative. This is a just-in-time distribution model in which wholesale partners will keep only one week of inventory (down from 3-4 weeks’ worth before), and the Boston Beer Co. will replenish supply based on consumer demand. The company also has begun the Draft Quality Audit Program, in which trained employees make in-market visits to test the freshness of the company’s product on tap at various retailers. Over 20,000 such audits are now conducted on an annual basis. The company also plans to continue pursuit of joint collaborations with other breweries and expansion of its own operations. It currently has an agreement with Moosehead Brewery for distribution of Sam Adams products in Canada. It has also teamed with Germany’s Weihenstephan Brewery to create Infinium, the first new beer style created under the Reinheitsgebot principle of beer purity (only four allowed ingredients: water, malt, hops and yeast). The Weihenstephan Brewery has a credible claim as being the world’s oldest brewery, and enjoys a strong reputation among beer enthusiasts. (Zegler, 2012) Regarding potential future growth, founder Jim Koch is excited for both his company and the craft beer industry. In 2011, he stated the following: I do believe that craft beer has a solid foundation for continued growth. Because in 2011, craft beer has become the new wine and the 20-somethings are adopting craft beer in the same way that their boomer parents adopted wine. When that happened in the 80s it led to decades of steady, healthy growth, and I’m optimistic that craft beer can have many years of steady, health growth†¦. I also believe that we (Boston Beer Co. ) have a really bright future. We’re also very small. Sam Adams can double. We can maybe even triple [in size] in the next 20 years. (Zegler, 2012). Places where it competes As stated above, the Boston Beer Company operates three breweries in Cincinnati, Boston and Lehigh Valley of Pennsylvania. Over 95 percent of the company’s products are now produced in its own breweries. It is distributed throughout the United States, in parts of Europe including Germany, and now in Canada through an agreement with the Canadian brewery Moosehead. Standing in the Industry (Rivals) Boston Beer Co. has been the craft brewing industry leader since its beginning. It was the number one craft brewer in 2011 based on beer sales volume. It was followed by Sierra Nevada Brewing Co.and New Belgium Brewing Co. In the overall industry, Boston Beer Co. is number five in beer sales volume, behind Anheuser-Busch InBev, MillerCoors, Pabst Brewing Co. and D. G. Yuengling and Son Inc. The craft beer segment accounts for approximately one percent of the overall alcoholic beverage category (includes wine and spirits, imported beer, craft and large breweries). (Brewers Association, 2012) Anheuser-Busch InBev and MillerCoors dominate the industry, though business dipped last year. Interestingly, there seems to be a great amount of cooperation and collaboration amongst the members of the craft brewing segment. Building the segment is a common concern with many of the regional craft breweries. For example, in 2008 Boston Beer Co. responded to an industry-wide hops shortage by sharing 20,000 pounds of its own hops at cost with 108 selected craft breweries. (Samuel Adams, 2008) There are many other notable craft breweries that have emerged as industry leaders in the past decade, including the following: * Sierra Nevada Brewing Co. : The nation’s second largest craft brewer, they are based Chico, California. The company was founded by Ken Grossman and Paul Camusi in 1980. Production is approaching 1 million barrels annually. The most popular product is the Sierra Nevada Pale Ale. * New Belgium Brewing Co. : Headquartered in Ft. Collins, Colorado and founded in 1991 by Jeff Lebesch. The company’s flagship beer is the popular Fat Tire. It is the nation’s third largest craft brewery. The company’s distribution network had reached 19 states by 2009, and is growing. * Deschutes Brewery: Based in Bend, Oregon. The company’s products include its Black Butte Porter, Mirror Pond Pale Ale and the award-winning The Abyss (11% alcohol by volume; released in 2007). * Harpoon Brewery: Headquartered in Boston, Mass. Products include its India Pale Ale, Munich Dark, 1636 Brew and four seasonal varieties. * Boulevard Brewing Co. : Located in Kansas City, Missouri. The company’s products are available in over twenty states in the Midwest region. (CNBC, 2012) * Dogfish Heah Craft Brewery: Founded by Sam Calagione and based out of Delaware. Calagione is known for pushing the boundaries of brewing varieties, and actually collaborating with Jim Koch in creating 2009’s SAVOR Flowers brew (it was a one-time experiment). Competitive Capabilities Boston Beer is the craft beer industry leader by production and sales volume. Its focus is on freshness and innovation (variety). The company started early with its freshness dating, followed by its amnesty program for its distributors, and now the Freshest Beer in Town and Draft Quality Audit Program. Regarding his company’s emphasis on beer freshness, Koch stated the following: If my beer isn’t fresh, I want the consumer to buy something else. And I want to make it as easy as possible for them to know because if they have a bad experience with my beer, they may not buy it again. To me, it’s not about trying to get consumers that are trying one beer after another and they never buy again. I’m very focused on giving consumers a great taste in every bottle so I can build brand loyalty based on a reliably rewarding experience. (Zegler, 2012) Boston Beer innovation is manifest in its wide variety of seasonal and specialty brews, as well as its recent notable collaborations. It teamed with Weihenstephan Brewery to create Infinium, which sold out domestically within a few weeks, and apparently had similar success in Germany. The company added Noble Pils in 2010 (winner of its 2009 Beer Lover’s Choice election; brewed with all five Noble hops). Latitude 48 is an India pale ale with hops from producers along the 48-degree latitude sources. The company also released its Samuel Adams Revolutionary Rye Ale in 2011 (winner of 2010 Beer Lover’s Choice election). The company also intends to expand its Barrel Room collection of beers, which until recently were only distributed in Denver and Boston. The Barrel Room beers are aged in the Boston Beer Company’s brewery supply of barrels, and include American Kriek, New World Tripel, and Stony Brook Red varieties. Jim Koch stated the following concerning his company’s push for new varieties: We’re not the new kid on the block. We’re not the newest beer out there. We’re not the most local. We don’t have the best marketing or a cute brand name. People have tried Sam Adams, it’s not a new experience†¦ the reason that we’ve become the leading craft brewery is because we have always given the consumer the best possible experience and they have rewarded us with their loyalty. That’s why we keep pushing on those things. . (Zegler, 2012) Forces Driving Industry Change. Aside from the continued expansion efforts of many industry’s regional craft breweries, there has also been a current lobbying push on behalf of the craft beer industry for the passage of Congressional bills H. R. 1236 and S. 534, which would reduce federal excise taxes applicable to the craft breweries. Specifically, if passed the bill would reduce the small brewer rate on the first 60,000 barrels by 50 percent, from $7. 00 to $3. 50 per barrel. The rate on production between 60,000 and 2 million barrels would also be reduced from $18. 00 to $16. 00 per barrel. The two bills were introduced in March 2011. (Brewers Association, 2012) (Buchman Law Firm, LLP) Sources of Competitive Advantage Arenas Boston Beer Company operates in the craft brewing industry, which accounts for approximately 1 percent of the overall beer industry, which is dominated by Anheuser-Busch InBev and MillerCoors. Sam Adams and the company’s other products are distributed throughout the United States and Canada (via the recent agreement with Moosehead Brewery of Canada). The company’s target customer is one who is willing to pay a premium price for a quality beer, and will display brand loyalty. The company’s standing as a catalyst for the microbrew revolution has given it considerable brand recognition among beer enthusiasts. Vehicles The company has grown considerably in twenty years, employing over 800 employees with three breweries which now produce 95 percent of the company’s products. Jim Koch plans to continue company expansion, with visions of tripling in size in the next twenty years. Based on the company’s history, expansion will most likely occur through internal development rather than via any mergers or acquisitions. Each beer style must registered by requests for certificates of label approval (COLA). State registration usually requires a state application coupled with the federal COLA for a given label. (Buchman Law Firm, LLP) Excise taxes are typically collected through a company’s wholesalers. Boston Beer Co. has embarked on some notable recent joint ventures, including its creation of Infinium in collaboration with the Weihenstephan Brewery and its Canadian distribution agreement with Moosehead Brewery. On the supply side, the company must continually replenish its inventory of barley and hops. Monthly barley prices from February 2007 to January 2012 had a standard deviation of $37. 76 per metric ton. This low amount of variation has led many breweries to simply purchase the crop on an annual basis. Conversely, many breweries will contract to acquire hops years into the future. The Boston Beer Company has over $33 million in hops contract commitments through 2015. (Craft Beer Analytics, 2011) Differentiators Boston Beer Company has significant brand equity within the craft beer industry due to its significant role in creating it. They attempt to further differentiate their products based on freshness and product innovation. Its Freshest Beer in Town initiative is a just-in-time supply arrangement with the company’s wholesalers (it was intended to include 50 percent of Boston Beer’s distributors by the end of 2011). (Craft Beer Restaurant Times, 2011) The program reduced suppliers’ inventories of Sam Adams down from an average of 3-4 weeks to just one week (which is to be kept chilled). Boston Beer ships more based on what the distributors have sold as opposed to advance orders. According to Koch: â€Å"Refrigeration of the beer virtually eliminates all of the product degradation that happens through the supply chain. The temperature control also makes it as if the retail account is getting its beer straight from the brewery. † The Draft Quality Audit Program is one in which company salespeople have been trained to taste the defects and track the cause of low quality Sam Adams on tap at various retailers. Boston Beer Co. now conducts approximately 20,000 audits each year, which has resulted in a drop in the incidence of low quality company beer from 15 to just 3 percent, according to Koch. (Zegler, 2012) The company has also continued to expand its beer varieties. From its seasonal brews and collaborations with breweries such as Dogfish Head and Weihenstephan, to its Barrel Room collection and updates such as Noble Pils, Latitude 48 and Revolutionary Rye Ale, the company is always looking to test the boundaries of craft brewing. Corporate Strategies Boston Beer Company has successfully built on Sam Adams’ strong brand equity, differentiating its products based on quality, variety, and freshness. The company has continued to expand its operations with no plans to discontinue such efforts. It has also hedged against future increases in hops prices with over $33 million in hops contracts already signed covering the company through December of 2015. Economic Logic The craft beer industry is based on the idea that consumers will pay a premium price for a quality beer which is different from the industry norms offered by companies such as Anheuser-Busch InBev and MillerCoors. Sam Adams also benefits from considerable brand equity. Staging and Pacing. Jim Koch has stated that he believes that the craft beer industry will continue to trend upward in sales relative the rest of the alcoholic beverage industry, and that the Boston Beer Company could triple in size within the next 20 years. His opinion on this matter is important, because Koch owns all of the company’s Class B common stock and with it, retains all decision-making authority for the company. Financial Analysis Current Financial Standing The 2011 fiscal year provided the Boston Beer Company with multiple opportunities to raise their glasses. Undoubtedly, the major achievement of 2011 was officially obtaining just over 1% of the United States beer market. This increased market share enabled the company to release some very impressive numbers in their recent 10-K. Earnings Snapshot| Revenue| $558. 282M| Net income| $66. 059M| Return on assets| 24. 24%| Return on equity| 35. 76%| Profit margin| 11. 83%| Current ratio| 1. 88| Quick ratio| 1. 37| Quite possibly the most staggering ratios from the 2011 filing are the company’s return on assets (investment) and return on equity. These tools measure how profitable a firm is relative to their total assets and total equity, respectively. In 2011, the Boston Beer Company reported a return on assets of 24. 24% and a return on equity of 35. 76%. Both of these ratios have a high level of volatility depending on the industry. These measures are remarkable within the alcoholic beverage industry, as well as the general beverage industry. In comparison, Coca-Cola (KO) posted a return on assets of 10. 72% and a return on equity of 27. 10% in 2011, while the winemaking company Constellation Brands (STZ) posted a return on assets of 6. 25% and a return on equity of 16. 75%. Furthermore, the company performed well regarding profit margin. Differing from other measures, profit margin should rarely be used to compare different firms. The reasoning behind this is that firms have varying levels of setups, so comparing profit margins could lead to confusion and misdiagnosis. The best way to use profit margin is against prior years. When weighed against its prior years, the company has seen a constant uptick over the past several years, signifying it is doing a good job of controlling costs and setting pricing at a reasonable level. The Boston Beer Company excelled in their liquidity and leverage ratios as well, not just in the three major profitability ratios: return on assets, return on equity, and profit margin. The most common ratios for measuring liquidity are the current ratio, quick ratio, and cash ratio. The current ratio (liquidity ratio) is an easy way to measure whether a firm is able to pay its short-term debts. A ratio of 1. 0 or above is likely and expected, and the Boston Beer Company’s 2011 current ratio of 1. 88 leaves it with plenty of leeway to pay all of its short-term obligations. Much like the current ratio, the quick ratio is a slightly more conservative measure that takes into account current levels of inventory, which can be difficult to liquidate. The company’s quick ratio is 1. 37, after taking out inventories. This still leaves plenty of room for the company to repay its short-term obligations. The last liquidity ratio is the cash ratio, which is the least commonly used of the three measures mentioned previously. The cash ratio is the ultimate ratio of liquidity because it only compares cash and marketable securities to current liabilities. An extremely high cash ratio could signify that a firm is stockpiling cash and not investing its assets wisely. The company’s cash ratio of 0. 74 is less than 1. 0 but still reasonable considering the other amounts of short-term assets. While the company does not have the ability to pay its short-term obligations with cash, it is still operating within a secure level of liquidity. The last group of ratios is the leverage ratios. These ratios measure how much debt a company is carrying. The total debt ratio divides total liabilities by total assets, giving an estimation of how leveraged a company is at a given time. In 2011, the Boston Beer Company’s total debt ratio was 0. 32, which would signify a generally low level of risk to potential investors. Much like the total debt ratio, the debt to equity ratio is a leverage ratio that has total debt in the numerator. The difference is the debt to equity ratio divides the total debt by stockholders equity. This ratio shows how a company finances its activities, whether through debt or equity. The Boston Beer Company’s debt to equity ratio of 0. 47 indicates it has very little debt compared to its equity. This shows how the company has been conservative in using debt to finance its operations. The last leverage ratio is interest coverage, a tool used to see how easily a company can pay its interest expenses. Since the company has interest income instead of interest expense, the interest coverage ratio is not valuable when evaluating the company’s 2011 financials. Recent Financial Trends During the past three years, the Boston Beer Company has seen steady gains from almost all of their major financial indicators. The company, undoubtedly, has improved on their prior year results across the board since 2009. When the financial crisis struck the United States and the world in late 2008, most firms encountered decreased earnings and in many instances, losses. Many of these companies are just now returning to their pre-recession profitability. The majority of the damage was incurred to these companies in the fourth quarter of 2008 and well into 2009. As seen by their year-over-year net income growth of 284. 74% in 2009, the recession did little to hurt the company’s financial situation. One potential explanation for its recession success comes from the â€Å"relationship between economic recession and [increased] consumption of alcohol and that heavy drinking behavior is unambiguously associated with unhappy feelings or dissatisfaction† (Anderson Moro, 2008). The widespread theory is that a sudden decrease in income has little affect or possibly a negative correlation with beer consumption. Quite possibly, this could explain why most vice companies trade with a beta less than 1. 0, indicating a negative relationship with the market. The Boston Beer Company is currently trading with a beta of 0. 85. In their most recent 10K, the company posted a year-over-year net income growth of 31. 74%. While this number appears very positive on the surface, it does not fully take into account a settlement the company received from its glass bottle supplier when the company had to issue a recall after routine inspections found glass particles in certain bottles. The recall affected approximately 25% of the company’s bottles and was completed by the fourth quarter. Nevertheless, the end result was the company â€Å"received a cash payment of $20. 5 million, which was recorded as an offset to operating expenses, and all parties have released each other of any claims as they relate to this matter† (The Boston Beer Company, Inc. , 2011). Comparison with Market Leaders While the Boston Beer Company has been experienced significant gains the past few years, it is still a minor player in the beer industry compared to the two leaders: Anheuser-Busch InBev and MillerCoors. These two companies combine for a total market share of just over 35%. The Boston Beer Company’s 2011 revenue of $558. 282 million is 1. 43% and 10. 80% of Anheuser-Busch InBev’s $39. 046 billion and SABMiller’s $5. 170 billion, respectively. While it cannot compete on revenue, the company can compete on productivity. The productivity ratio is computed as employees divided by revenue. The company’s productivity ratio of $664,620 per employee tops Anheuser-Busch InBev’s $336,600 per employee and MillerCoors’ $277,260 per employee. The company has repeatedly stated that its goal has never been to be on the same level as the market leaders. Instead, its goal is to be the leader in the better beer category, which includes Yuengling, Corona, and Heineken. In 2011, D. G. Yuengling and Son passed the company as the largest American beer-maker in sales, a title long held by Anheuser-Busch. The Boston Beer Company’s objective is to regain that title and grow with the better beer category. Stock Trends The Boston Beer Company has a very unique setup for their common stock. The company has 8,714,931 shares of Class A Common Stock outstanding and 4,107,355 shares of Class B Common Stock outstanding. Where the setup gets unique is that the Class A Common Stock only have voting power to approve certain mergers and elect a minority to the board of directors. The Class B Common Stock is held entirely by C. James Koch, Chairman of the Board of Directors, who has control over the majority of the board of directors and most other matters regarding shareholder approval. This gives Mr. Koch substantial control over his company and takes a large amount of power from the remaining shareholders. After reaching its lowest point in close to a decade at $19. 02 in May 2009, the Boston Beer Company (SAM) has rebounded to new levels. In fact, the stock reached its all time high of $119. 84 on June 19, 2012. Except for a decline of close to 25% of the stock’s value in early 2011, the increase has been steady and balanced since the low in 2009. One interesting note is the volume of shares traded in late 2007. Traders saw the stock rising quickly from $30 to $50 and felt it had a lot of volatility. This led to a sharp increase in trading activity that pushed the volume over 1. 5 million shares. Stock Performance Outlook As of late, stock analysts have conveyed mixed feelings about the company’s future stock outlook. According to Morningstar’s survey of four analysts, one rates the stock a buy, one rates it underperform, and two rate it a hold. This shows exactly how divided analysts are on the future of the stock. Since 2008, earnings per share has increased from $0. 56 to $4. 81, although the $4. 81 does take into account the settlement. Excluding the settlement, earnings per share in 2011 was $3. 73, still a 5. 97% increase over 2010. For 2012, analysts are â€Å"looking for full-year earnings of $4. 14, a projected 10% increase from last year. The next-year estimate is pegged at $4. 80, a solid 16% earnings growth projection† (Vodicka, 2012). If the company meets or exceeds these earnings projections, there is little doubt that it could continue climbing. Traders who are bullish on the stock believe it should continue growing with the craft brewery sector. They point toward the company’s recent run of hitting estimates, its healthy price to earnings ratio of 22. 57, and its recent investment in their brewing facilities to keep up with increased demand. On the other hand, bearish traders point toward the company’s high valuation premiums that are incorporated into the prices. If the company were to miss their upcoming quarterly earnings, it could ignite some traders to short the stock, potentially sending it spiraling. Key Success Factors. For firms to be successful over a long period of time, they must be aware of the key success factors that drive profitability in their industries. Key success factors are a set of issues that all companies operating in the industry must pay attention to in order to be successful. Quite simply, key success factors are something each company must have to accomplish long-term success. In his 2004 journal article, Richard A. Caralli explains that â€Å"every organization inherits a particular set of operating conditions and challenges that are inherent to the industry (or a segment of the industry) in which it chooses to do business. This results in a unique set of [key success factors] that organizations in a particular industry must achieve to maintain or increase their competitive positions, achieve their goals, and accomplish their missions† (Caralli, 2004). The beer industry in particular has three main key success factors. First, firms must have an advertising campaign that effectively reaches their target audience. For years, Anheuser-Busch has been the market leader by segmenting the way it advertises its different brands. Budweiser is marketed as the â€Å"King of Beers† and is known for its signature Clydesdale horses and vintage bottle design. On the other hand, Bud Light is marketed as â€Å"The Sure Sign of a Good Time. † Its commercials are designed for a much younger audience and are regularly voted as some of the most humorous on television. The other major beer makers seem to follow the same strategy of marketing their core brand as legendary and historic, while marketing the light varieties in a more humorous tone. A second key success factor in the beer industry is obtaining and maintaining a network of wholesale distributors. These distributors act as middlemen to transport the beer from brewers and importers to stores, bars, and restaurants. The approximately 3,300 distributors in the United States allow companies to focus more on brewing and marketing and less on delivery to the end user. The beer wholesaler industry is a very large industry in itself. The largest distributor, Reyes Beverage Group, delivers 93 million cases per year and has revenues of $1. 9 billion. Firms must keep in constant contact with these distributors to ensure timely and cost-effective delivery. The last major key success factor affecting the beer industry is knowledge of the consumer. To be able to effectively advertise for their brands, firms must have deep knowledge of their target audience. The beer industry is segmented into a variety of different divisions. Marketing a specific product incorrectly could be extremely costly. Miller is effectively targeting their target audiences with Miller 64 and Miller High Life. Miller 64, with only 64 calories, is intended for males and females age 35 and under, while Miller High Life is intende.