Marketing Mistakes and Successes

ELEVENTH EDITION MARKETING MISTAKES AND SUCCESSES 30TH ANNIVERSARY Robert F. Hartley Cleveland State University JOHN WILEY & SONS, INC. VICE PRESIDENT & PUBLISHER EXECUTIVE EDITOR ASSISTANT EDITOR PRODUCTION MANAGER PRODUCTION ASSISTANT EXECUTIVE MARKETING MANAGER ASSISTANT MARKETING MANAGER MARKETING ASSISTANT DESIGN DIRECTOR SENIOR DESIGNER SENIOR MEDIA EDITOR George Hoffman Lise Johnson Carissa DoshiDorothy Sinclair Matt Winslow Amy Scholz Carly DeCandia Alana Filipovich Jeof Vita Arthur Medina Allison Morris This book was set in 10/12 New Caledonia by Aptara ®, Inc. and printed and bound by Courier/Westford. The cover was printed by Courier/Westford. This book is printed on acid-free paper. Copyright  © 2009, 2006, 2004, 2001, 1998, 1995, 1992, 1989, 1986, 1981, 1976 John Wiley & Sons, Inc. All rights reserved.No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc. 222 Rosewood Drive, Danvers, MA 01923, website www. copyright. com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc. 111 River Street, Hoboken, NJ 07030-5774, (201)748-6011, fax (201)748-6008, website http://www. wiley. com/go/permissions. To order books or for customer service please, call 1-800-CALL WILEY (225-5945). Library of Congress Cataloging in Publication Data Hartley, Robert F. , 1927Marketing mistakes and successes/Robert F. Hartley. —11th ed. p. cm. Includes index. ISBN 978-0-470-16981-0 (pbk. ) 1. Marketing—United States—Case studies. I. Title. HF5415. 1. H37 2009 658. 800973—dc22 2008040282 ISBN-13 978- 0-470-16981-0 Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 PREFACEWelcome to the 30th anniversary of Marketing Mistakes and Successes with this 11th edition. Who would have thought that interest in mistakes would be so enduring? Many of you are past users, a few even for decades. I hope you will find this new edition a worthy successor to earlier editions. I think this may even be my best book. The new Google and Starbucks cases should arouse keen student interest, and may even inspire another generation of entrepreneurs. A fair number of the older cases have faced significant changes in the last few years, for better or for worse, and these we have captured to add to learning insights.After so many years of investigating mistakes, and more recently successes also, it might seem a challenge to keep these new editions fresh and interesting. The joy of the chase has made this an intriguing endeavor through the decades. Still, it is always difficult to abandon interesti ng cases that have stimulated student discussions and provoked useful insights, but newer case possibilities are ever contesting for inclusion. Examples of good and bad handling of problems and opportunities are forever emerging. But sometimes we bring back an oldie, and with updating, gain a new perspective.For new users, I hope the book will meet your full expectations and be an effective instructional tool. Although case books abound, you and your students may find this somewhat unique and very readable, a book that can help transform dry and rather remote concepts into practical reality, and lead to lively class discussions, and even debates. In the gentle environment of the classroom, students can hone their analytical skills and also their persuasive skills—not selling products but selling their ideas—and defend them against critical scrutiny. This is great practice for the arena of business to come.NEW TO THIS EDITION In contrast to the early editions, which exa mined only notable mistakes, and based on your favorable comments about recent editions, I have again included some well-known successes. While mistakes provide valuable learning insights, we can also learn from successes and find nuggets by comparing the unsuccessful with the successful. With the addition of Google and Starbucks, we have moved Entrepreneurial Adventures up to the front of the book. We have continued Marketing Wars, which many of you recommended, and reinstated Comebacks of firms iii iv †¢ Preface ising from adversity. I have also brought back Ethical Mistakes, because I believe that organizations more than ever need to be responsive to society’s best interests. Altogether, this 11th edition brings seven new cases to replace seven that were deleted from the previous edition. Some of the cases are so current we continued updating until the manuscript left for the production process. We have tried to keep all cases as current as possible by using Postscrip ts, Later Developments, and Updates. A number of you have asked that I identify which cases would be appropriate for the traditional overage of topics as organized in typical marketing texts. With most cases it is not possible to truly compartmentalize the mistake or success to merely one topic. The patterns of success or failure tend to be more pervasive. Still, I think you will find the following classification of cases by subject matter to be helpful. I thank those of you who made this and other suggestions. Classification of Cases by Major Marketing Topics Topics Most Relevant Cases Marketing Research and Consumer Analysis Coca-Cola, Disney, McDonald’s, Google, Starbucks ProductStarbucks, Nike, Coke/Pepsi, McDonald’s, Maytag, Dell, Hewlett-Packard, Newell Rubbermaid, DaimlerChrysler, Kmart/Sears, Harley-Davidson, Boeing/Airbus, Merck, Boston Beer, Firestone/Ford, Southwest, MetLife, Borden, United Way, Vanguard, Continental, Euro Disney Distribution Nike, Coke/Peps i, Newell Rubbermaid, Harley-Davidson, Vanguard, Starbucks, Kmart/Sears, Hewlett-Packard, Dell Promotion Nike, Coke/Pepsi, Maytag, Vanguard, Merck, Boston Beer, Kmart/Sears, Harley-Davidson, Borden, MetLife, HewlettPackard, Southwest Air, Google, Starbucks PriceContinental, Southwest, Vanguard, Starbucks, Boston Beer, Dell, Euro Disney, Newell Rubbermaid, Boeing/Airbus, McDonald’s Non-product Google, United Way, Disney, Southwest, Continental International Euro Disney, Boeing/Airbus, Harley-Davidson, Maytag, DaimlerChrysler, Firestone/Ford, Dell, Hewlett-Packard, Nike, Coke/Pepsi, Starbucks, McDonald’s Customer Relations Newell Rubbermaid, Vanguard, Maytag, Harley, Merck, Firestone/Ford, Starbucks, United Way, Nike, MetLife Social and Ethical Starbucks, Merck, Firestone/Ford, United Way, MetLife Outsourcing Boeing/Airbus, Maytag, Nike, DellPreface †¢ v TARGETED COURSES As a supplemental text, this book can be used in a variety of undergraduate and graduate courses . These range from introduction to marketing/marketing principles to courses in marketing management and strategic marketing. It can also be used as a text in international marketing courses. Retailing, entrepreneurship, and ethics courses could use a number of these cases and their learning insights. It can certainly be used in training programs and even appeal to nonprofessionals who are looking for a good read about well-known firms and personalities. TEACHING AIDSAs in previous editions, you will find a plethora of teaching aids and discussion material within and at the end of each chapter. Some of these will be common to several cases, and illustrate that certain successful and unsuccessful practices are not unique. Information Boxes and Issue Boxes are included in each chapter to highlight relevant concepts and issues, or related information, and we are even testing Profile Boxes. Learning insights help students see how certain practices—both errors and successes cross company lines and are prone to be either traps for the unwary or success modes.Discussion Questions and Hands-On Exercises encourage and stimulate student involvement. A recent pedagogical feature is the Team Debate Exercise, in which formal issues and options can be debated for each case. New in some cases are Devil’s Advocate exercises in which students can argue against a proposed course of action to test its merits. A new pedagogical feature, based on a reviewer’s recommendation, appears at the end of the Analysis section: students are asked to make their own analysis, draw their own conclusions, and defend them, thereby having an opportunity to stretch themselves.In some cases where there is considerable updating, a new feature invites students to Assess the Latest Developments. Invitation to Research suggestions allow students to take the case a step further, to investigate what has happened since the case was written, both to the company and even to some of the individuals involved. In the final chapter, the various learning insights are summarized and classified into general conclusions. An Instructor’s Manual written by the author accompanies the text to provide suggestions and considerations for the pedagogical material within and at he ends of chapters. ACKNOWLEDGMENTS It seems fitting to acknowledge everyone who has provided encouragement, information, advice, and constructive criticism through the years since the first edition of these Mistakes books. I hope you all are well and successful, and I truly appreciate your contributions. I apologize if I have missed anybody, and vi †¢ Preface would be grateful to know such so we can rectify this in future editions. I welcome updates to present affiliations. Michael Pearson, Loyola University, New Orleans; Beverlee Anderson, University of Cincinnati; Y. H. Furuhashi, Notre Dame; W.Jack Duncan, University of AlabamaBirmingham; Mike Farley, Del Mar College; Joseph W. Leona rd, Miami University (OH); Abbas Nadim, University of New Haven; William O’Donnell, University of Phoenix; Howard Smith, University of New Mexico; James Wolter, University of Michigan, Flint; Vernon R. Stauble, California State Polytechnic University; Donna Giertz, Parkland College; Don Hantula, St. Joseph’s University; Milton Alexander, Auburn University; James F. Cashman, University of Alabama; Douglas Wozniak, Ferris State University; Greg Bach, Bismark State College; Glenna Dod, Wesleyan College; Anthony McGann, University of Wyoming; Robert D.Nale, Coastal Carolina University; Robert H. Votaw, Amber University; Don Fagan, Daniel Webster University; Andrew J. Deile, Mercer University; Samuel Hazen, Tarleton State University; Michael B. McCormick, Jacksonville State University; Neil K. Friedman, Queens College; Lawrence Aronhime, John Hopkins University; Joseph Marrocco, Boston University; Morgan Milner, Eastern Michigan University; Souha Ezzedeen, Pennsylvania Stat e University, Harrisburg; Regina Hughes, University of Texas; Karen Stewart, Stockton College; Francy Milner, University of Colorado; Greg M.Allenby, Ohio State University; Annette Fortia, Old Westbury; Bruce Ryan, Loyola; Jennifer Barr, Stockton College; Dale Van Cantfort, Piedmont University; Larry Goldstein, Iona University; Duane Prokop, Gannon University; Jeff Stoltman, Wayne State University; Nevena Koukova, Lehigh University; Matthew R. Hartley, University of California, Berkeley; Cindy Claycomb, Wichita State University; Pola Gupta, Wright State University; Joan Lindsey-Mullikin, Babson College. Also: Barnett Helzberg, Jr. f the Shirley and Barnett Helzberg Foundation, and my colleagues from Cleveland State University: Ram Rao, Sanford Jacobs, Andrew Gross and Benoy Joseph. From Wiley: Judith Joseph, Kimberly Mortimer, Carissa Marker. Robert F. Hartley, Professor Emeritus College of Business Administration Cleveland State University Cleveland, Ohio R. [email  protected] ED U ABOUT THE AUTHOR Bob Hartley is Professor Emeritus at Cleveland State University’s College of Business Administration. There he taught a variety of undergraduate and graduate courses in management, marketing, and ethics.Prior to that he taught at the University of Minnesota and George Washington University. His MBA and Ph. D. are from the University of Minnesota, with a BBA from Drake University. Before coming into academia, he spent thirteen years in retailing with the predecessor of Kmart (S. S. Kresge), JCPenney, and Dayton-Hudson and its Target subsidiary. He held positions in store management, central buying, and merchandise management. His first textbook, Marketing: Management and Social Change, was published in 1972. It was ahead of its time in introducing social and environmental issues to the study of marketing.Other books, Marketing Fundamentals, Retailing, Sales Management, and Marketing Research, followed. In 1976 the first Marketing Mistakes book was published and brought a new approach to case studies, making them student-friendly and more relevant to career enhancement than existing books. In 1983, Management Mistakes was published. These books are now in the eleventh and ninth editions, respectively, and have been widely translated. In 1992 Professor Hartley wrote Business Ethics: Violations of the Public Trust. Business Ethics Mistakes and Successes was published in 2005. He is listed in Who’s Who in America, and Who’s Who in the World. ii This page intentionally left blank CONTENTS Preface About the Author Chapter 1 Introduction PART I ENTREPRENEURIAL ADVENTURES Chapter 2 Chapter 3 Chapter 4 Google: An Entrepreneurial Juggernaut Starbucks: A Paragon of Growth and Employee Benefits Finds Storms Boston Beer: Is Greater Growth Possible? 29 46 PART II MARKETING WARS 61 Chapter 5 Chapter 6 Chapter 7 Cola Wars: Coca-Cola vs. Pepsi PC Wars: Hewlett-Packard vs. Dell Airliner Wars: Boeing vs. Airbus; and Recent Outsourcing Woes 63 86 PART III COMEBACKS Chapter 8 Chapter 9 Chapter 10 McDonald’s: Rebirth Through ModerationHarley-Davidson: Creating An Enduring Mystique Continental Airlines: Salvaging From the Ashes PART IV MARKETING MANAGEMENT MISTAKES Chapter 11 Chapter 12 Borden: Letting Brands Wither United Way: A Nonprofit Tries to Cope with Image Destruction DaimlerChrysler: A Merger Made in Hades Newell’s Acquisition of Rubbermaid Becomes an Albatross Euro Disney: Bungling a Successful Format Maytag: An Incredible Sales Promotion in England; and Outsourcing Kmart and Sears: A Hedge Fund Manager’s Challenge Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 iii vii 1 9 11 103 127 129 147 161 175 177 190 203 220 233 251 67 ix x †¢ Contents PART V NOTABLE MARKETING SUCCESSES 281 Chapter 18 Chapter 19 Chapter 20 Southwest Airlines: Success Is Finally Contested Nike: A Powerhouse Brand Vanguard: Is Advertising Really Needed? 283 302 319 PART VI ETHICAL MISTAKES Chapter 21 Chapte r 22 Chapter 23 Merck’s Vioxx: Catastrophe and Other Problems MetLife: Deceptive Sales Practices Ford Explorers with Firestone Tires: A Killer Scenario Ill Handled 335 351 Conclusions: What We Can Learn 380 Chapter 24 Index 333 365 400 CHAPTER ONE Introduction A t this writing, Marketing Mistakes has passed its thirtieth anniversary. Who would have thought?The first edition, back in 1976, was 147 pages and included such long-forgotten cases as Korvette, W. T. Grant, Edsel, Corfam, Gilbert, and the Midi. In this eleventh edition, seven cases from the tenth edition have been dropped, and seven added, several of these being modified from earlier editions. Other cases have been updated, and in some instances reclassified. Two exciting new entrepreneurial cases, Google and Starbucks, are introduced, and the entire Entrepreneurial Adventures moved to the front of the book as Part I. I think your students will find these cases particularly interesting and even inspiring.The popular â€Å"Marketing Wars† is again included, this time as Part II, and it follows major competitors in their furious struggles. Two new parts have been added from older editions: Part III Comebacks, and Part VI Ethical Mistakes. In response to your feedback, the section on notable successes has been continued. Some cases are as recent as today’s headlines; several still have not come to complete resolution. A few older cases have been continued or brought back. For example, Borden last appeared in the ninth edition, but some of you thought the learning insights were important enough to reintroduce the case.We continue to seek what can be learned—insights that are transferable to other firms, other times, other situations. What key factors brought monumental mistakes to some firms and resounding successes for others? Through such evaluations and studies of contrasts, we may learn to improve batting averages in the intriguing, ever-challenging art of decision making. We will encounter organizational life cycles, with an organization growing and prospering, then failing (just as humans do), but occasionally resurging. Success rarely lasts forever, but even the most serious mistakes can be (but are not always) overcome.As in previous editions, a variety of firms, industries, mistakes, and successes are presented. You will be familiar with most of the organizations, although probably not with the details of their situations. We are always on the lookout for cases that can bring out certain points or caveats in the art of marketing decision making, and that give a balanced view of the spectrum of marketing problems. The goal is to present examples that provide 1 2 †¢ Chapter 1: Introduction somewhat different learning experiences, where at least some aspect of the mistake or success is unique. Still, we see similar mistakes occurring time and again.From the prevalence of such mistakes, we have to wonder how much decision making has really progr essed over the decades. The challenge is still there to improve it, and with it marketing efficiency and career advancement. Let us then consider what learning insights we can gain, with the benefit of hindsight, from examining these examples of successful and unsuccessful marketing practices. LEARNING INSIGHTS Analyzing Mistakes In looking at sick companies, or even healthy ones that have experienced difficulties with certain parts of their operations, it is tempting to be overly critical. It is easy to criticize with the benefit of hindsight.Mistakes are inevitable, given the present state of decision making and the dynamic environment facing organizations. Mistakes can be categorized as errors of omission and of commission. Mistakes of omission are those in which no action was taken and the status quo was contentedly embraced amid a changing environment. Such errors, often characteristic of conservative or stodgy management, are not as obvious as the other category of mistakes. T hey seldom involve tumultuous upheaval; rather, the company’s competitive position slowly erodes, until management finally realizes that mistakes having monumental impact have been allowed to happen.The firm’s fortunes often never regain their former luster. Mistakes of commission are more spectacular. They involve hasty decisions often based on faulty research, poor planning, misdirected execution, and the like. Although the costs of eroding competitive position due to errors of omission are difficult to calculate precisely, the costs of errors of commission are often fully evident. For example, with Euro Disney, in 1993 alone the loss was $960 million from a poorly planned venture; it improved in 1994 with only a $366 million loss.With Maytag’s overseas Hoover Division, the costs of an incredibly bungled sales promotion were more than $300 million, and still counting. Then there was the monumental acquisition of Chrysler by Germany’s Daimler, maker of p roud Mercedes, for $36 billion in 1998. After nine tumultuous years, Daimler gave up and sold Chrysler to a private equity firm in 2007 for only $7. 4 billion. Although they may make mistakes, organizations with sharp managements follow certain patterns when confronting difficult situations: 1. Looming problems or present mistakes are quickly recognized. 2.The causes of the problem(s) are carefully determined. 3. Alternative corrective actions are evaluated in view of the company’s resources and constraints. 4. Corrective action is prompt. Sometimes this requires a ruthless axing of the product, the division, or whatever is at fault. Learning Insights †¢ 3 5. Mistakes provide learning experiences. The same mistakes are not repeated, and future operations are consequently strengthened. Slowness to recognize emerging problems leads us to think that management is incompetent or that controls have not been established to provide prompt feedback at strategic control points.Fo r example, a declining competitive position in one or a few geographical areas should be a red flag that something is amiss. To wait months before investigating or taking action may mean a permanent loss of business. Admittedly, signals sometimes get mixed, and complete information may be lacking, but procrastination is not easily defended. Just as problems should be quickly recognized, the causes of these problems— the â€Å"why† of the unexpected results—must be determined as quickly as possible. It is premature, and rash, to take action before knowing where the problems really lie.Returning to the previous example, the loss of competitive position in one or a few markets may reflect circumstances beyond the firm’s immediate control, such as an aggressive new competitor who is drastically cutting prices to â€Å"buy sales. † In this situation, all competing firms will likely lose market share, and little can be done except to stay as competitive as possible with prices and servicing. However, closer investigation may reveal that the erosion of business was due to unreliable deliveries, poor quality control, noncompetitive prices, or incompetent sales staff.With the cause(s) of the problem defined, various alternatives for dealing with it should be identified and evaluated. This may require further research, such as obtaining feedback from customers and from field personnel. Finally, the decision to correct the situation should be made as objectively as possible. If drastic action is needed, there usually is little rationale for delaying. Serious problems do not go away by themselves: They tend to fester and become worse. Finally, some learning experience should result from the misadventure. A vice president of one successful firm told me,I try to give my subordinates as much decision-making experience as possible. Perhaps I err on the side of delegating too much. In any case, I expect some mistakes to be made, some decision s that were not for the best. I don’t come down too hard usually. This is part of the learning experience. But God help them if they make the same mistake again. There has been no learning experience, and I question their competence for higher executive positions. Analyzing Successes Successes deserve as much analysis as mistakes, although admittedly the urgency is less than with an emerging problem that requires quick remedial action.Any analysis of success should seek answers to at least the following questions: Why Were Such Actions Successful? †¢ Was it because of the nature of the environment, and if so, how? †¢ Was it because of particular research, and if so, what and how? 4 †¢ Chapter 1: Introduction †¢ Was it because of particular engineering and/or production efforts, and if so, can these be adapted to other operations? †¢ Was it because of any particular element of the strategy—such as service, promotional activities, or distribution methods—and if so, how, and is it transferable to other operations? Was it because of the specific elements of the strategy meshing well together, and if so, how was this achieved? Was the Situation Unique and Unlikely to Be Encountered Again? †¢ If the situation was not unique, how can these successful techniques be used in the future and defended against competition? ORGANIZATION OF THIS BOOK In this eleventh edition we have modified the classification of cases somewhat from earlier editions. As mentioned before, Part I, Entrepreneurial Adventures, describes and analyzes well-known recent endeavors.In Part II, Marketing Wars, we examine the actions and countermoves of archrivals in hotly competitive arenas. Part III, Comebacks, studies three firms that faced adversity, and came back better than ever. In Part IV, Marketing Management Mistakes, we delve into seven firms guilty of a variety of mistakes that offer great learning insights. Part V, Notable Marketing Success es, offers paragons of successful marketing strategies and operations. Finally, in Part VI, Ethical Mistakes, we examine three firms whose mistakes had major ethical and legal consequences.Let us briefly describe the cases that follow. Entrepreneurial Adventures Google is arguably the most outstanding successful new enterprise ever. It was founded by Sergey Brin and Larry Page who dropped out of Stanford’s Ph. D program to do so. With its search engine, it raised advertising to a new level: targeted advertising. In so doing, it spawned a host of millionaires from its rising stock prices and stock options and made its two founders some of the richest Americans, just under Bill Gates and Warren Buffett. How did they do it?Starbucks is also a rapidly growing new firm—not as much as Google, but still great—and a credit to founder Howard Schultz’s vision of transforming a prosaic product, coffee, into a gourmet coffee house experience at luxury prices. Boston Beer burst on the microbrewery scene with Samuel Adams beers, higher priced even than most imports. Notwithstanding this—or maybe because of it—Boston Beer became the largest microbrewer. It proved that a small entrepreneur can compete successfully against the giants in the industry, and do this on a national scale. Marketing WarsPepsi and Coca-Cola for decades competed worldwide. Usually Coca-Cola won out, but it could never let its guard down; however, it recently did so in Europe. Now a Organization of this Book †¢ 5 trend toward noncarbonated beverages along with Pepsi’s non-drink diversifications is swinging the momentum to Pepsi. But Coca-Cola is trying hard to recover. Dell long dominated the PC market with lowest-prices, direct-to-consumer marketing. Hewlett-Packard, the world’s second biggest computer maker, chose Carly Fiorina, a charismatic visionary, to be its CEO, and she engineered a merger with Compaq.But growth in profitability did no t follow, and early in 2005, the board fired Fiorina. Mark Hurd, an operational person, replaced her, and brought the company to PC dominance. But Michael Dell is fighting back. Boeing long dominated the worldwide commercial aircraft market, with the European Airbus only a minor player. A series of Boeing blunders, however, coupled with an aggressive Airbus, brought market shares close to parity. Both firms are now introducing strikingly new planes, but are finding problems with their outsourcing key components to foreign suppliers.Comebacks McDonald’s had long dominated the fast food restaurant market. Then it began to falter, and hungry competitors made inroads into its competitive position. As it fought to regain its momentum, it explored diversifications and ever more store openings, while profitability plummeted. Recently, it found a new formula for profitable growth. In the early 1960s, Harley-Davidson dominated a static motorcycle industry. Suddenly, Honda burst on the scene and Harley’s market share dropped from 70 percent to 5 percent in only a few years.It took Harley nearly three decades to revive, but now it has created a mystique for its heavy motorcycles and gained new customers. And its Rallies are something else again. The comeback of Continental Airlines from extreme adversity and devastated employee morale to become one of the best airlines in the country is an achievement of no small moment. New CEO Gordon Bethune brought marketing and human relations skills to one of the most rapid turnarounds ever, overcoming a decade of raucous adversarial labor relations and a reputation in the pits.Marketing Management Mistakes Borden, with its enduring symbol of Elsie the Cow, was the country’s largest producer of dairy products. On an acquisitions binge in the 1980s, it became a diversified food processor and marketer—and a $7 billion company. But Borden allowed consumer acceptance of its many brands to wither through unrea listic pricing, ineffective advertising, and an unwieldy organization. United Way of America is a nonprofit organization. The man who led it to become the nation’s largest charity perceived himself as virtually beyond authority.Exorbitant spending, favoritism, conflicts of interest—these went without criticism until investigative reporters from the Washington Post publicized the scandalous conduct. With its public image plummeting, contributions nationwide drastically declined. The real concern was whether United Way could ever regain its former luster. 6 †¢ Chapter 1: Introduction The merger of Chrysler with Daimler, the huge German firm that makes Mercedes, was supposed to be a merger of equals. But Chrysler’s management quickly found otherwise, and the top Chrysler executives were soon replaced by executives from Germany.Assimilation and coordination problems plagued the merger for years. Nine years later, Daimler sold Chrysler to a private equity firm f or tens of billions of dollars less than it paid. Newell, a consumer-products firm, successfully geared its operations to meet the demands of giant retailers, particularly Wal-Mart, whereas Rubbermaid had in recent years been unable to meet those stringent requirements. In 1999, Newell acquired Rubbermaid, confident of turning its operation around, only to find that Rubbermaid’s problems were not easily corrected and that they negatively impacted Newell’s fortunes as well.What do you do now? In April 1992, just outside Paris, Disney opened its first theme part in Europe. It had high expectations and supreme self-confidence (critics later called it arrogance). The earlier Disney parks in California, Florida, and more recently Japan were all spectacular successes. But rosy expectations became a delusion as marketing miscues finally showed Disney that Europeans, and particularly the French, were not carbon copies of visitors elsewhere. The problems of Maytag’s Hoov er subsidiary in the United Kingdom almost defy reason.The subsidiary planned a promotional campaign so generous that the company was overwhelmed with takers; it could neither supply the products nor grant the prizes. In a miscue of multimillion-dollar consequences, Maytag had to foot the bill while trying to appease irate customers. What can we learn from Maytag’s travails? Two faltering retail chains, Kmart and Sears, merged under the auspices of a hedge fund manager, Edward Lampert. Whether two weaklings could become one strong operation to compete with the likes of Wal-Mart and Target was uncertain, though investors bid both stocks up to extravagant levels in anticipation.The rosy expectations collapsed as we moved into a recession in 2007 and 2008. Notable Marketing Successes Southwest Airlines found a strategic window of opportunity as the lowest cost and lowest price carrier between certain cities. And how it milked this opportunity! Now it threatened major airlines in many of their domestic routes. However, by 2008, competitors were beginning to counter Southwest’s price advantage. Nike and Reebok were major competitors in the athletic footwear and apparel market. Nike was overtaken by Reebok in the late 1980s, but then Nike surged far ahead, never to be threatened again.What is the secret of Nike’s increasing dominance? Vanguard has become the largest mutual fund company, charging past Fidelity. Vanguard’s strategy is to downplay marketing, shunning the heavy advertising and overhead of its competitors. It provides investors with better returns through far lower expense ratios and relies mostly on word of mouth and unpaid publicity to General Wrap-Up †¢ 7 gain new customers, while old customers continue to pour in money. Is Vanguard vulnerable to aggressive new competitors? Ethical MistakesMerck, the pharmaceutical giant, learned that its blockbuster arthritis drug, Vioxx, doubled the risk of a heart attack or stroke. Over five years and $500 million in advertising, it had 20 million users in the United States at the time it recalled the drug September 30, 2004. Critics and tort lawyers assailed the company for waiting so long to recall this drug, since some research studies as early as five years before had raised questions about the safety of Vioxx. What can we learn from Merck’s handling of its great profit-making drug now discredited?The huge insurance firm MetLife, whether through loose controls or tacit approval, permitted an agent to use deceptive selling tactics on a grand scale, in the process enriching himself and the company. Investigations by several state attorneys general brought a crisis situation to the firm that it was slow to react to. Eventually, fines and lawsuits totaled almost $2 billion. Product safety lapses that result in injuries and even loss of life are among the worst abuses any company can confront. Worse, however, is when such risks are allowed to continue fo r years.Ford Explorers equipped with Firestone tires were involved in more than 200 deaths from tire failures and vehicle rollovers. After news of the accidents began surfacing, Ford and Firestone each blamed the other for the deaths. Eventually, inept crisis management brought a host of lawsuits resulting in massive recalls and billions in damages. GENERAL WRAP-UP Where possible, the text depicts major personalities involved in these cases. Imagine yourself in their positions, confronting the problems and facing choices at their points of crisis or just-recognized opportunities.What would you have done differently, and why? We invite you to participate in the discussion questions, the handson exercises, the debates appearing at the ends of chapters, and the occasional devil’s advocate invitation (a devil’s advocate is one who argues an opposing viewpoint for the sake of testing the decision). There are also discussion questions for the various boxes within chapters. W hile doing these activities, you may feel the excitement and challenge of decision making under conditions of uncertainty. Perhaps you may even become a fast-track executive and make better decisions.QUESTIONS 1. Do you agree that it is impossible for a firm to avoid mistakes? Why or why not? 2. How can a firm speed up its awareness of emerging problems so that it can take corrective action? Be as specific as you can. 8 †¢ Chapter 1: Introduction 3. Large firms tend to err on the side of conservatism and are slower to take corrective action than smaller ones. Why do you suppose this is? 4. Which is likely to be more costly to a firm, errors of omission or errors of commission? Why? 5. So often we see the successful firm eventually losing its pattern of success.Why is success not more enduring? PART ONE E N T REPREN E U R I A L A D V EN T UR E S This page intentionally left blank CHAPTER TWO Google—An Entrepreneurial Juggernaut I n 1998 Sergey Brin and Larry Page dropped out of the Ph. D program at Stanford to start Google in a friend’s garage. Along the way, they discovered a powerful marketing tool that would revolutionize advertising. Six years later, on August 19, 2004, they took this Internet search and advertising firm public at a price of $85 a share. One year after the initial public offering (IPO), Google stock closed at $280.By 2007, the stock had gone over $700, and lots of people had become very rich. But this was to cause some serious concerns for the firm. Brain Drain Craig Silverstein, a fellow Stanford Ph. D student, was the first hire of Page and Brin. He helped them move their equipment out of Page’s dorm room and into a place with more space and, more importantly, a garage. In early 1999, five months later, the enterprise had grown enough to move into offices on University Avenue in downtown Palo Alto. The firm’s fortunes continued to improve, and Craig became director of technology in charge of product develo pment.Before many years, Craig realized he had become very rich indeed. From the beginning, Google gave its employees stock options in lieu of competitive salaries that in those days it could ill afford. These options gave employees the right to purchase a given number of shares of stock at a certain price, called a vested price, some years in the future. Even before going public in 2004, it had granted two big batches of such options. A 2002 grant that was priced at 30 cents a share vested in 2006. Another, priced at $4 a share in 2003, also vested in 2006.In May 2008, another round of options would be exercisable at $35, far more costly than the 30 cent option, but the way the stock was going up since the IPO, this higher price was of little consequence. By 2007, Craig was worth well over $100 million in Google stock and was becoming richer with every passing day. He knew that some 700 of his associates were worth at least $5 million, and he knew that many of them were talking abo ut quitting, with some wanting to start their own businesses. He knew that Bismarck Lepe, for example, who began working 11 12 †¢ Chapter 2: Google—An Entrepreneurial Juggernaut or Google in 2003, had left the firm immediately after his four-year options vested in 2007. He now had a few million dollars that would help him start his own firm—2 million in only four years, wow! Craig couldn’t help pondering whether he should do the same. After all, how many hundreds of millions does one man need? But he did not really see himself as an entrepreneur. At his young age, about the same age as Sergey and Larry, he was not ready to retire to some South Sea island and count coconuts. So he stayed, caught up in the challenge of solving tough problems with other smart Googlers. Making the brain drain all the more tempting for many of these employees was Google’s hiring of the brightest young people, the very ones most likely to become entrepreneurs, if given the chance. Their ambitions fed on the great example of Google, as well as a plethora of smaller enterprises in this hotbed of innovation that was Silicone Valley with its great research universities such as Stanford. SERGEY BRIN AND LARRY PAGE AND THE START OF GOOGLE In 1998 when the venture that was to be Google was only an idea, Sergey and Larry were both 25 years old and were doctoral students at Stanford.Sergey was a math whiz, having completed his undergraduate degree at 19, and aced all ten of the required doctoral exams on his first try, and teamed easily with professors doing research. His parents’ backgrounds were rich in science and technology. His mother was a scientist at NASA’s Goddard Space Flight Center. His father, Michael, taught math at the University of Maryland. Sergey was born in Moscow, but he and his family left the Soviet Union when he was six, fleeing anti-Semitism and seeking greater opportunity for themselves and their children.Larry Page grew up in Michigan, also the son of a professor whose Ph. D was computer science, and who taught at Michigan State University where Larry’s mother also taught computer programming. He followed in the footsteps of his father and brother by going to the University of Michigan where he studied computer engineering, receiving his undergraduate degree in 1995. At first he had felt uneasy about being one of the select few to be admitted to Stanford’s elite Ph. D program. In those early days, these sons of esteemed professors were focused on pursuing their Ph. Ds, not on getting rich. In their families, nothing trumped the value of a great education. Neither of them had the slightest idea just how soon their heartfelt commitment to academia would be tested. †2 The Beginning In the mid-1990s, the Internet was just emerging. Millions of people were logging on and communicating through email. But researchers grew frustrated with the clutter of Web sites. Searching it for relev ant information often resulted in an abundance of completely meaningless data. Search engines began to organize the Internet, and thus Yahoo and AltaVista among others were born. But they still left a lot to be 1 2Examples can be found in Quentin Hardy, â€Å"Close to the Vest,† Forbes, July 2, 2007, pp. 40–42. David A. Vise, The Google Story, New York: Delacorte, 2005, p. 31. Sergey Brin and Larry Page and the Start of Google †¢ 13 desired. The answer to more relevant research seemed to be a better use of links, such as a highlighted word or phrase. In 1996, Page and Brin teamed up to work on downloading and analyzing Web links. In the process they developed a ranking system for searching the Internet that yielded prioritized results based on relevance to the object of the search, and useful answers could be found swiftly.In 1997, they made the search engine available to students, faculty, and administrators on the Stanford campus, and popularity grew by word of mouth. As the database and number of users burgeoned, more computers were needed. In these early days, Brin and Page were able to scrounge around for unused computers and string together inexpensive PCs. By July 1998, they had an index of 24 million pages, with more coming. But their growth was stymied by lack of capital. They decided to take a leave of absence from the Ph. D program and start their own firm.This way they could develop a business of their own that would fit their search engine. If it was as good as they thought, and with Internet use growing so rapidly, growth could be virtually unlimited. Rather than selling out to some existing firm, wouldn’t they be better off keeping control? Still, by August they had run out of cash and badly needed an â€Å"angel. † One of their professors suggested they meet his friend, Andy Bechtolsheim, a legendary investor in a string of successful start-ups. After listening to their presentation, he said, â€Å"This is the single best idea I’ve heard in years.I want to be part of this,† and he left them a check for $100,000 made out to Google Inc. 3 It took them two weeks before they could formally incorporate the company, Google Inc. , and then open their first bank account. The check sustained the two entrepreneurs at first, and in fall 1998 they moved their computers from a dorm room into a garage and several rooms of a house. They also hired a friend, Craig Silverstein (mentioned earlier), as their first employee. After five months they outgrew the garage and moved into offices in downtown Palo Alto, barely a mile from the Stanford campus.By now, their search engine was handling 100,000 queries a day, all this through word of mouth, emails, and instant messages. But they were again running out of money, despite the now $1 million in funding that they had collected from Bechtolsheim and other early investors, and through borrowing on their credit cards. But it was clear that with upwar d of 500,000 searches per day toward the end of the year, they needed much more money. In the boomtown climate of Silicon Valley in early 1999, a public stock offering was one option, even though Google had no profits.But Brin and Page resisted this option, not wanting to reveal their trade secrets and lose some control. Efforts to license their search technology to other firms wishing to use it for research, found few takers. Eventually they went the venture capital route. But Brin and Page insisted on keeping control of Google’s destiny and remain majority owners, or it was no deal. On June 7, 1999, less than one year after they left Stanford, they issued a press release announcing that two venture capital firms, Kleiner Perkins and Sequoia Capital, were investing $25 million in Google.On the Stanford campus and around Palo Alto, amazement reigned at the enormity of the sum seemingly without the two giving anything up in return. â€Å"The announcement included details of t he funding as well as additional information about Google, its impressive list of investors, and its growth 3 Vise, p. 48. 14 †¢ Chapter 2: Google—An Entrepreneurial Juggernaut rate of 50 percent per month. All this put the company in the global limelight, giving it the opportunity to grow further through free media publicity. †4 But Google still had not earned any appreciable revenue to upport its heady growth, and no plan for this was revealed in the press release. THE EARLY GROWTH YEARS By the end of 1999, Google was averaging 7 million searches per day, but its revenue from licensing remained small. If the business could not be reasonably profitable, they could hardly maintain their vision of vast information available to users without charge. With licensing its search technology to businesses proving to be such a limited revenue source, they finally were forced to consider allowing advertisers access to their multitude of users.Brin and Page could see a relati onship between their search engine and the television networks: those offered entertainment and news for free, while charging millions for the advertising. But the two shuddered at the flashy banner ads that littered the Internet. Still, they belatedly recognized that advertising was where vast sums were being spent, not in licensing, Creating a Different Advertising Model They wanted to avoid the clutter of almost out-of-control, irrelevant ads, and they developed strict standards for size and type of ads.They separated the free search results from the ads, which they would label â€Å"Sponsored Links. † These â€Å"Links,† because of their relevance to the search, would be clicked on more often than if they were labeled simply â€Å"Ads. † They decided to display the links in a clearly marked box above the free search results. The ads would be brief and look identical, with just a headline, a short description, and a link to a web page. But these would be targ eted ads, offering a major advantage for advertisers confronted with the huge wastage of advertising reaching uninterested audiences.At first Google sold this advertising to large businesses that could afford expensive ad campaigns, but it soon found substantial market potential in letting smaller advertisers easily sign up online with a credit card, and their ads could then be running within minutes. This gave Google an edge over similar providers unable to offer such fast service, and also minimized its own costs of selling advertising. Shortly after turning to its advertising model, Brin and Page had another innovative idea—they would rank ads based on relevance.And relevance would be determined by how often ads were clicked on by computer users. This would provide valuable feedback to advertisers and influence the selling and pricing of ads. CHARGING AHEAD When the Internet stock price bubble burst in 2000, it ravaged the former highflying entrepreneurial firms of Silicon e Valley with major layoffs and bankruptcies. But Google stood poised at the nadir of its great growth to come and was one of 4 Vise, p. 69. Charging Ahead †¢ 15 the few firms able to hire outstanding software engineers and mathematicians, many holding worthless stock options.This pool of talent stimulated Google’s growth as it moved to a large headquarters in Mountain View, named the Googleplex, forty minutes south of San Francisco. There Brin and Page developed a work environment practically unprecedented. See the following Information Box for some examples of this culture that was designed to cultivate strong loyalty and job satisfaction and to foster a creative, playful environment where Google’s employees, mostly young and single, would be willing to spend their waking hours. By early 2001, Google was recording 100 million searches per day.It was also entering the dictionary as a verb, as for example, to â€Å"google each other before dates. † Now larg e firms, such as Wal-Mart, the world’s biggest retailer, and Acura, a major automobile manufacturer, joined the entourage of firms advertising their wares on Google. What was the secret behind the rapid growth of Google’s advertising program? As we saw before, Google came up with an unique approach to advertising, an INFORMATION BOX WORK CLIMATE AT GOOGLE Employees worked long hours but were treated like family. There was even a gourmet chef, with free meals, healthy drinks and snacks.The chef took pride in providing better meals than found in area restaurants. Given the international mix of employees, the menu was varied to cater to all tastes: Southwestern, classic Italian, French, African, Asian, Indian, etc. The Wall Street Journal sent a reporter out to investigate. â€Å"Where else but the Plex can you zip around on a bicycle and choose from multicultural comfort food, American regional food, small plates, entrees made with five ingredients or less, and dishes b ased on raw materials supplied from within 150 miles of Mountain View?Many employees eat three meals a day at the Plex’s 17 food venues, open any time day or night. . . . We were told that Messrs. Brin and Page chow down with the troops. † (Raymond Sokolov, â€Å"Googling Lunch,† Wall Street Journal, December 1–2, 2007, pp. W1 and W5. ) Also furnished were such conveniences as on-site laundry, hair styling, dental and medical care, a car wash, day care, fitness facilities with personal trainers, and a professional masseuse. Brightly colored medicine balls, lava lamps, assorted gadgets and sports equipment gave the appearance of a college campus.Chartered buses had internet access so that commuters to San Francisco could use their laptops. Social events and entertainment were Friday afternoon and evening features. As a spur for creativity, a policy was set that software engineers spend at least 20 percent of their time, or one day a week, working on whateve r projects interested them. Do you see any downside to these workplace amenities? Would these influence your choosing to work for Google despite less money? Would some of these be appropriate to other firms? If so, what kind of firms? 16 †¢ Chapter 2: Google—An Entrepreneurial Juggernaut pproach that most advertisers previously could only dream of: i. e. , Targeted Text Ads. The unobtrusive ads are seen only by potential customers who are searching for information on that specific topic. In one swell swoop this advertising virtually eliminates the great waste of most mass media advertising that is viewed by a vast audience who have no interest whatever in the product being advertised despite millions and hundreds of millions of dollars being spent. For an example of the waste of such untargeted ads, consider an airline spending $1 million or more on a TV ad campaign that gains only 100 new first-class customers as a result. Furthermore, in Google-placed ads no intrusive banners compete for attention. The text ads (links) and websites are read carefully by users or potential users, and these often find the ads as valuable as the actual search results. A New CEO In early January 2001, at the urging of its venture capitalists, Larry and Sergey reluctantly consented to hire a chief executive officer to run operations. Eric Schmidt was highly recommended by one of the venture capitalists. He not only had entrepreneurial experience as founder of Sun Microsystems, and CEO of Novell, but also academic credentials—a Ph.D in computer science from the University of California at Berkeley, and a degree in electrical engineering from Princeton. Then there was research experience at Xerox Palo Alto Research Center and Bell Labs. At 46, he was a seasoned tech executive and brought a needed mature balance to this organization of young people. Besides, he was willing to invest $1 million of his own money to buy preferred stock in Google, this at a time when the company was running short of cash again. (It would soon never again run short of cash. ) Google entered into pacts with Yahoo, AOL, EarthLink, and Ask Jeeves.This gave it relationships with most of the biggest Internet properties. By the end of 2002, Google and its venture capitalists could see that the search engine was going to be a huge financial success. For the year, it had recorded $440 million in sales and an amazing $100 million in profits. Virtually all of these profits came from people clicking on the text ads that were on the right side of search results pages at Google. com and the pages of its partners and affiliates. But the world did not realize the extent of this profitability since Google was still a private company.This silence about the profitability of the online search and advertising business model undoubtedly kept other firms, especially Microsoft and Yahoo, from investing in or developing search engines of their own—until Google had an almost insur mountable head start. The advertising industry was being transformed as well, as billions of dollars of advertising was being shifted from television, radio, newspapers, and magazines to the Internet. But the time was nearing for Google to go public, and with this full disclosure would shock the investment community and make Google stock the darling of investors and employees alike. Example cited in Seth Godin, â€Å"Your Product, Your Customer,† Forbes, May 7, 2007, p. 52. Going Public †¢ 17 GOING PUBLIC Finally in early 2004, Larry and Sergey reluctantly started the process of taking Google public. In truth, their decision was practically dictated by federal rules that required public disclosure of financial results by companies with a substantial amount of assets and shareholders, and Google had exceeded these limits with many of the company employees having been given stock in the then-private firm. This move would enable them to convert their holdings to cash.The ve nture capitalists who had supplied the early crucial funds would also benefit from the liquidity that going public would provide. For most entrepreneurs, taking their new firm public was the ultimate goal since the IPO (initial public offering) would often make them instant millionaires. But for Brin and Page, the reality of being billionaires was not all that appealing. They both lived relatively modestly, loved the privacy, and cared little for the accumulation of wealth and the accoutrements of wealth—such as grand homes, planes, and yachts to attest to their success.The company was debt free, self-funded, had plenty of cash, and had no need to sell stock to the public to raise money. They were not sure they wanted the immense publicity and what it would entail and affect the freedoms they had enjoyed, and that of their families. For example, would they need bodyguards? How about the paparazzi? And their employees who would become instant millionaires, how would this affec t their intensity and focus? And would they even stay with Google, or go out on their own? (We know that many left to start their own enterprises. In early 2004, the employees were quietly told that the company was going to file a public offering. And thousands of Google employees, spouses, and interested others began an eight-month guessing game of how much the company and themselves would be worth. The eight months proved to be a stressful time for almost all concerned, but probably most of all for Brin and Page. Their reluctance to disclose much before the public auction did not endear them to the media. Then an ill-advised Playboy interview did not go well and even triggered a SEC investigation.To make matters worse, the stock market was tanking as world oil prices spiked, and many analysts were warning of a global recession. Also, the Athens Olympics were starting amid great fears of terrorism. Google and its bankers realized that the initial price range of $108–$135 wou ld probably not be acceptable to the market at this time, and on August 19, Google finally went public at $85 a share. By the end of the first day, the stock had reached nearly $100. By the next day it was $108. It reached $200 in November and kept climbing from there.Forbes, in its listing of the 400 Richest Americans cited Brin and Page’s wealth at $4 billion each at the end of 2004, due to the success of the IPO. Then in 2006, â€Å"The Google Guys crack the top 10 of the Forbes 400, each now worth $18. 5 billion. † This placed them as the fifth richest Americans, in the company of Bill Gates and Warren Buffett, ahead of Michael Dell of Dell Computer, and way ahead of Donald Trump. And they were both only 34. 6 6 Forbes, Forbes 400 The Richest People in America, October 8, 2007, p. 78. 18 †¢ Chapter 2: Google—An Entrepreneurial Juggernaut AFTER THE IPOAfter the IPO, the pace of innovation at Google got into high gear. New products and innovations were be ing spawned and made available to millions of customers around the world. Google became the darling of the media; no other firm or individual got the press coverage of Google. The fact that it was now a public company with its financial performance readily available—and as such now well covered by financial analysts who did not cover private firms—made its promising results and potential very visible. It expanded the lead in its core search and advertising business in the United States and much of the world.And with its new cash horde, it eagerly branched out into new areas, even such far out visions as a Green renewable-energy program to find ways to generate electricity more cheaply than by burning coal. 7 Not surprising, the growth of Google was being compared with that of Microsoft two decades earlier. Google was also becoming a major competitor of Microsoft, not in PCs, but in a later phase of technology that was surpassing the earlier technology, this time by the power of the Internet revolution. But perhaps the real competition was in recruiting and retaining the brightest technology minds in the world.But more about this later. For now, let us compare this early growth of Google with Microsoft in the Information Box beginning on page 19. Google’s Poaching of Talent As the business burgeoned in the spring and summer of 2005, Google added more than 700 employees in just three months. The total headcount now was 4,183, nearly double the total the previous year. Google was hiring Ph. Ds from the top universities across the country, and even trespassing on Microsoft’s own neighborhood, at the University of Washington.It opened a facility in a Seattle suburb just down the road from Microsoft’s Redmond plant, and now it was easy for their engineers and scientists to move over to Google. They didn’t even have to move to a new city or change their commute. In these days, Microsoft was viewed as a mature business. It no longer had the sex appeal that Google had grasped. Microsoft was struggling to keep its best people, even offering more money and perks. But the amazing growth and potential of Google brought the lure of great riches as stock options became valuable.As mentioned before, not the least of the perks that Google offered were the free restaurants and other amenities at its Googleplex headquarters in the Silicone Valley 40 minutes south of San Francisco. The increasing poaching of talent climaxed with Dr. Kai-Fu Lee, a highly regarded scientist, who wanted to leave Microsoft to become president of Google China. Microsoft began an all-out legal assault alleging that Google improperly sought to induce Lee to violate the terms of his employment contract with Microsoft. A temporary triumph over Google raised the specter of litigation for any senior Microsoft employee who left for Google.The wide publicity served to illustrate how seriously Microsoft regarded the threat posed by its smaller ri val. 8 7 Rebecca Smith and Kevin J. Delaney, â€Å"Google’s Electricity Initiative,† Wall Street Journal, November 28, 2007, p. A16. 8 Vise, p. 274. Analysis †¢ 19 ANALYSIS Here we have seen perhaps the greatest growth ever of a new enterprise. In the exuberance of this growth, investors bid up its stock market price to make the company more valuable than such long-established firms as Coca-Cola, Hewlett-Packard, Time Warner, AT&T, Boeing, Disney, McDonald’s, and General Motors and Ford.INFORMATION BOX COMPARISON OF MICROSOFT AND GOOGLE Table 2. 1 Comparison of Microsoft and Google Growth in Revenues from Their Beginnings Microsoft Beginning Went Public Years from Beginning 1975 1986 11 years Revenues (millions) 1986 1987 1988 1989 1990 1991 1992 Google Y/Y Growth $ 1996 2004 8 years 40. 7% 75. 1 70. 1 36. 0 47. 3 55. 8 49. 7 197 346 591 831 1,183 1,843 2,759 1996 28,365 32,187 36,835 39,735 44,282 Y/Y Growth $ 409% 233. 9 117. 5 92. 5 72. 8 9. 400 2002 200 3 2004 2005 2006 Revenues (millions) 13. 5 14. 4 7. 9 11. 4 439 1,466 3,189 6,138 10,605Source: Calculated from company annual reports. Commentary: The much faster start of Google is mind-boggling. The experts thought Microsoft was the model of the most successful entrepreneurial start ever. Bill Gates did not rush to take his venture public, waiting 11 years to do so, at which time revenues were almost $200 million. Google on the other hand delayed only six years before going public, but its revenues were already over $3 billion. As we can see, the year-to-year growth rate also strongly favored Google, with around a hundred percent growth since 2004. The two years before going public showed growth over 400 percent and 200 percent each year. ) The comparison between a young growth company and a mature Microsoft is clearly evident. (continues) 20 †¢ Chapter 2: Google—An Entrepreneurial Juggernaut COMPARISON OF MICROSOFT AND GOOGLE (continued) Table 2. 2 Comparison of Micr osoft and Google Net Income from Their B

Traditional Healing System

A PROPOSED APPLICATION OF ETHNOMEDICAL MODELS TO TRADITIONAL HEALING SYSTEMS Stanley Kipper Ethnomedicine has become a topic of intensive study in recent years due, in part, to the work of the World Health Organization and other groups attempting to facilitate cooperation between indigenous practitioners and those trained in Western allopathic biomedicine.This chapter describes two ethnomedical systems (the North American Navajo tradition and the South American Peruvian Pachakuti curanderismo) in terms of two different models, one designed by Siegler and Osmond (1974), and one designed by a task force of the National Institute of Mental Health (NIMH). Each of these indigenous systems are found to be comprehensive, covering each facet of the models, and pointing the way for possible collaboration between allopathic biomedicine and various indigenous systems of healing, a project that has accelerated due to public demand (Iljas, 2006, p. 90). The term â€Å"ethnomedicine† refers to the comparative study of indigenous (or traditional) medical systems. Typical ethnomedical topics include causes of sickness, medical practitioners and their roles, and specific treatments utilized. The explosion of ethnomedical literature has been stimulated by an increased awareness of the consequences of the forced displacement and/or acculturation of indigenous peoples, the recognition of indigenous health concepts as a means of maintaining ethnic identities, and the search for new medical treatments and technologies.In addition, Kleinman (1995) finds ethnographic studies an â€Å"appropriate means of representing pluralism†¦ and of drawing upon those aspects of health and suffering to resist the positivism, the reductionism, and the naturalism that biomedicine and, regrettably, the wider society privilege†(p. 195). In his exhaustive study of cross-cultural practices, Torrey (1986) concluded that effective treatment inevitably contains one or more of four fundame ntal principles: 1. A shared world view that makes the diagnosis or naming process possible; 2.Certain personal qualities of the practitioner that appear to facilitate the patient's recovery; 3. Positive patient expectations that assist recovery; 4. A sense of mastery that empowers the patient. If a traditional medical system yields treatment outcomes that its society deems effective, it is worthy of consideration by allopathic biomedical investigators, especially those who are aware of the fact that less than 20 percent of the world’s population are serviced by allopathic biomedicine (Mahler, 1977; Freeman, 2004; O’Connor, 1995).However, what is considered to be â€Å"effective† varies from society to society (Krippner, 2002). Allopathic biomedicine places its emphasis upon â€Å"curing† (removing the symptoms of an ailment and restoring a patient to health), while traditional medicine focuses upon â€Å"healing† (attaining wholeness of body, mind , emotions, and/or spirit). Some patients might be incapable of being â€Å"cured† because their sickness is terminal. Yet those same patients could be â€Å"healed† mentally, emotionally, and/or spiritually as a result of the practitioner’s encouragement to review their life, to find meaning in it, and to become reconciled to death.Those who have been â€Å"cured,† on the other hand, may be taught procedures that will prevent a relapse or recurrence of their symptoms. An emphasis upon prevention is a standard aspect of traditional medicine, and is becoming an important part of biomedicine as well (Freeman, 2004; Krippner & Welch, 1992). A differentiation can also be made between â€Å"disease† and â€Å"illness. † From either the biomedical or the ethnomedical point of view, one can conceptualize â€Å"disease† as a mechanical difficulty of the body resulting from injury or infection, or from an organism’s imbalance with its e nvironment. Illness,† however, is a broader term implying dysfunctional behavior, mood disorders, or inappropriate thoughts and feelings. These behaviors, moods, thoughts, and feelings can accompany an injury, infection, or imbalance—or can exist without them. Thus, one may refer to a â€Å"diseased brain† rather than an â€Å"ill brain,† but use the phrase of â€Å"mental illness† rather than of â€Å"mental disease. † Cassell (1979) goes so far as to claim that allopathic biomedicine treats disease but not illness; â€Å"physicians are trained to practice a technological medicine in which disease is their sole concern and in which technology is their only weapon† (p. 8). Healing models The Siegler-Osmond Model Comparisons between biomedicine and ethnomedicine can be made utilizing hypothetical structures such as the 12-faceted model proposed by Siegler and Osmond (1974). In the social and behavioral sciences, a â€Å"model† is an explicit or implicit explanatory structure that underlies a set of organized group behaviors. Their use in science attempts to improve understanding of the process they represent. Models have been constructed to describe human conflict, competition, and cooperation.Models have been proposed to explain mental illness, personality dynamics, and family interactions. I have modified the Siegler-Osmond model, making it applicable to both â€Å"physical† and â€Å"mental† disorders, although traditional practitioners usually do not differentiate between the two. The utility of the Siegler-Osmond model can be demonstrated by comparing a shamanic medical model, an eclectic folk healing model, and the allopathic biomedical model on 12 dimensions: 1. Diagnosis 2. Etiology 3. Patient’s behaviour 4. Treatment 5. Prognosis . Death and suicide 7. Function of the institution 8. Personnel 9. Rights and duties of the patient 10. Rights and duties of the family 11. Rights and duties of the society 12. Goal of the model. The Navaho Indian healing model The Navaho healing system serves as an example of the application of the Siegler and Osmond model. The term â€Å"Navaho† (or â€Å"Navajo†) is used by anthropologists to refer to the largest Native American tribe in the United States; the Navaho reservation in the south west part of the country comprises 16 million acres.The word â€Å"Navaho† is derived from the Spanish term for â€Å"people with big fields,† but in their own language, they call themselves the Dineh people. They are members of the southern Athapaskan linguistic group and occupy plateau areas of north eastern Arizona, overlapping into New Mexico and Utah. Geertz (1973) points out that the entire lifestyle of a culture is built upon its mythic view of â€Å"reality. † The Navaho ethic values â€Å"calm deliberativeness, untiring persistence, and dignified caution† and the Navahos view nature as â⠂¬Å"tremendously powerful, mechanically regular, and highly dangerous† (p. 30). While the dominant U. S. culture attempts to â€Å"tame nature,† the Navaho worldview seeks to live in respectful harmony with it. Theories of sickness and methods of healing make up a large part of this great counterpoint focused on harmony: The stricken patient is given a vocabulary in terms of which to grasp the nature of his or her distress and relate it to the wider world (Geertz, 1973), providing an explanation, and converting energy into a form that can heal.Sandner (1979) has identified the most important values in Navaho mythology as the acquisition of supernatural power (notably for the maintenance of health), the preservation of harmony in family relationships, and the achievement of adult status. However, this status operates in tandem with cooperation with and respect for other family, clan, and community members. The diagnosis is made by the Navaho diagnostician in consultation with the patient and the patient's family, all of whom work together in determining the cause of sickness.The role of the medicine man in diagnosis is usually limited, as he later carries out instructions given by the diviner (Sandner, 1979). Navahos have constructed three major diagnostic categories of mental illness. â€Å"Moth craziness† is characterized by fits of uncontrolled behavior (e. g. , jumping into the fire like a moth), rage, violence, and convulsions; it is attributed to incestual activities. â€Å"Crazy violence† has some of the same external manifestations as â€Å"moth craziness† but is due to alcoholism. â€Å"Ghost sickness,† ascribed to sorcery, manifests in nightmares, loss of appetite, dizziness, confusion, panic, and extreme anxiety.When someone knowingly or accidentally breaches taboos or offends dangerous powers, the natural order of the universe is ruptured and â€Å"contamination† or â€Å"infection† occurs that must be redressed. Etiology is seen as the intrusion of a harmful agent that destroys the natural harmony between individuals and their surroundings, especially in circumstances of exposure to lightning, whirlwinds, or such animals as bear, deer, coyotes, porcupines, snakes, and eagles that are inappropriately trapped, killed, or eaten.Sometimes these harmful agents appear in frightening, ominous dreams. Contact with spirits of the dead is especially hazardous, as is sorcery. The diviner, the medicine man, the patient, and the patient’s family work together in determining the cause of sickness (Sander, 1979). The patient's behavior determines what type of â€Å"Chant Way† will be utilized in his or her treatment. A person who is unable to resolve grief, who harbors fears of accidents, and who speaks of chest pains usually will be told to have an â€Å"Evil Way† ceremony.The patient's dreams are important as a diagnostic aid; the most ominous dreams are those of being burned, falling off a cliff, and drowning; dreams of dead relatives are especially portentous. During treatment, the Navaho hataalii (or â€Å"singing† shaman) utilizes a number of therapeutic procedures, most notably one or more of the 10 basic â€Å"Chant Ways† and their accompanying sand paintings. These are complex rituals that center on cultural myths in which heroes or heroines once journeyed to spiritual realms to acquire special knowledge. The symptoms for which a given chant is prescribed are based on connections with the specific chant myth.For example, the â€Å"Hail Way† is prescribed for muscular tiredness and soreness because the hero, Rain Boy, suffered from these symptoms when he was attacked by his enemies; the â€Å"Big Star Way† protects the patient against the powerful influences of the stars and the dangers of the night. The â€Å"Night Way† is said to be useful for blindness, deafness, and mental illness because the â₠¬Å"Night Way† hero confronted each of these dangers. The â€Å"Beauty Way† is used for rheumatism, sore throats, digestive and urinary problems, and skin diseases—difficulties faced by the chant hero.Ritual chanting takes a multi-modal approach that contributes to its effectiveness. The repetitive nature and mythic content is easily deciphered and often repeated at appropriate times by those patients well-versed in tribal mythology. According to Sandner (1979): â€Å"The visual images of the sand paintings and the body painting, the audible recitation of prayers and songs, the touch of the prayer sticks and the hands of the medicine man, the taste of the ceremonial musk and herbal medicines, and the smell of the chant incense—all combine to convey the power of the chant to the patient† (p. 15). The hataalii, among the Navahos a male practitioner, usually displays a highly developed dramatic sense in carrying out the chant but generally avoids the cl ever sleight of hand effects used by many other cultural healing practitioners to demonstrate their abilities to the community. The chant is considered by Sandner to facilitate suggestibility. It shifts attention through repetitive singing and the use of culture-specific mythic themes.These activities prepare participants for a lengthy healing ceremony that may involve mythic images and narratives enacted in purification rites or executed in â€Å"sand paintings† composed of sand, seeds, charcoal, and flowers. Some paintings, such as those used in a â€Å"Blessing Way,† are crafted from such ingredients as corn meal, flower petals, and charcoal. From a psychological perspective, the patients â€Å"translate† these â€Å"symbols† and â€Å"metaphors† as they sit on the painting, but from their own perspective, they are interacting with some of the basic forces and energies of nature.Six steps comprise the typical â€Å"Chant Way† ritual: prep aration (in which the patient is â€Å"purified†), presentation of the patient to the healing spirits, evocation of these spirits to the place of the ceremony, identification of the patients with a positive mythic theme, transformation of the patients into a condition where ordinary and mythic time and space merge, and release from the mythic world and return to the everyday world where past transgressions are confessed, where new learnings are assimilated, and where life changes are brought to fruition.The hataalii’s performance empowers the patient by creating an alternative domain of consciousness—a â€Å"mythic reality†Ã¢â‚¬â€through the use of chants, dances, and songs (often accompanied by drums and rattles), masked dancers, purifications (e. g. , sweat baths, emetics, fumigants, lotions, herbal medicines, ritual bathing, sexual abstinence), and sand paintings. Within the context of this â€Å"mythic reality,† especially as made visible in t he designs constructed in sand by the hataalii, the patient is taken into â€Å"sacred time† and is able to bring a total attentiveness to the healing ritual.The patient follows a specific regimen for the next four days to protect members of the community from his or her newly acquired powers. The role of the community is important in another way; the chants are attended by large numbers of people, many of whom might be asked to participate. This type of participation appears to increase the patients’ sense of personal power, magnify their imagination as they attend to the chants, providing social reinforcement and increased motivation. The mentation of the practitioner, the patient, and the community may all be affected by the ceremony.The hataalii is dusted with the decorated sand, and his patients claim to feel the power emanating from the painting. This procedure resembles the enhancement of imagination common to several hypnotic procedures, and is probably further augmented by the repetitive chanting. In addition to the â€Å"Chant Way,† there are other rituals used by the hataalii, one of which is a prayer session. For example, sacred corn pollen may be sacrificed during a time of prayer in an attempt to please the spirits needed to heal the patient: This ritual must be performed perfectly and behind locked doors, often at the patient’s home.The setting for treatment usually is the Hogan, a specially constructed octagon with log walls, sealed with mud adobe. The door opens to the East, and a hole in the center of the domed ceiling lets the smoke out. Men sit on the North, women and children on the South; the sand painting occupies most of the floor, and the patient sits in the center with family and friends nearby. The door to the darkened Hogan is fastened to prevent the prayer from escaping. Sharpened flints are used to expel the evil from both the patient and the Hogan.These procedures reduce the patient's symptoms at the s ame time as they stabilize the social and emotional condition of the community. For example, the hataalii instructs the family to make elaborate preparations for their forthcoming â€Å"house call. † Upon arriving, the patients are told that the prognosis is excellent, thus fostering positive expectations (Torrey, 1986). The most important people in the patient's life often join in the prayers, reaffirming the belief that the patient will recover.Prognosis, to a large degree, depends upon the attitude of the patient. A Navaho practitioner told Sandner (1979): â€Å"If the patient really has confidence in me, then he gets cured†¦. If a person gets bitten by a snake, for example, certain prayers and songs can be used, but if the patient doesn’t have enough confidence, then the cure won't work† (pp. 17 – 18). Premature death and suicide are attributed to sorcery, the return of the dead, or to the presence of outsiders.Kluckhohn (Kluckhohn & Leighton, 19 62) noted that funeral rituals are designed to prevent or discourage dead persons from returning to threaten their relatives. The fear of spirit possession is connected with the fear of ghosts, spirits, and the dead. High suicide rates are associated with Navaho communities marked by loss of tribal identity. When a sick person's family has determined that a practitioner is necessary, a hataalii is called in, frequently accompanied by an herbalist and/or a diagnostician (both of whom are of lower status).There are some 200 plants in the Navaho pharmacopoeia and the herbalists gather these plants and make medicines, some of which are used directly, and some of which are used ceremonially by the hataalii. The diagnosticians, or â€Å"diviners,† are usually women who â€Å"listen† to the spirits and typically provide a statement of the problem. This procedure may be accompanied by such diagnostic procedures as hand trembling, star gazing, candle gazing, and crystal gazingà ¢â‚¬â€all of which involve the inward focusing of the practitioner's attention, with the purpose of facilitating insight as to the nature of the problem.Every hataalii must go through a long and arduous period of training and apprenticeship; they must earn the approval of their teachers and their community by demonstrating that they can perform successfully (Sandner, 1979). The â€Å"singing shaman’s† memory must be impeccable; the effort required to learn one major chant has been compared to that of obtaining a university degree (Sandner, 1979). A patient with a break or fracture is usually sent to an allopathic practitioner, although Sandner observed a Navaho specialist set broken bones â€Å"in a true scientific manner† (p. 8). In the Navaho system, the patients' first priority is that of treatment, and they assume the role of cooperating with the practitioner by taking an active part in their diagnosis and treatment. The major priority of the patient's fami ly is to seek diagnosis and treatment for its indisposed family members, seeking qualified personnel. It is the family’s role to determine payment, an important responsibility because some Chant Ways last for several days and the fee may exceed several months’ salary.The major priority of the patient's community is to support the sick patient. This is done by attending the Chant Way and facilitating his or her treatment. The community plays the role of preserving traditions and training new practitioners. This latter task is difficult, given the high cost of apprenticeships, especially for the hataalii. The goal of this healing model is integration within the framework of cosmic harmony, and the rejection of the effects of sorcery which are seen as alien to this harmony (Sandner, 1979).According to Kluckhohn (1962), the Navahos are â€Å"generations ahead† of U. S. physicians in treating the whole person. The goal of Navaho healing is to restore the patient's ha rmony with his or her family, clan and universe. The U. S. office of alternative medicine model In April 1995, the Office of Alternative Medicine (OAM) of the United States National Institutes of Health (NIH) held a conference on research methodology (O'Connor, Calabrese, Cardena, Eisenberg, Fincher, Hufford, Jonas, Kaptchuck, Martin, Scott, & Zhang, 1997).The charge of this conference was to evaluate research needs in the field of complementary and alternative medicine (CAM), and several working groups were created to produce consensus statements on a variety of essential topics. The panel on definition and description accepted a dual charge: to establish a definition of the field of complementary and alternative medicine for purposes of identification and research; to identify factors critical to a thorough and unbiased description of CAM systems, one that would be applicable to both quantitative and qualitative research.The panel defined CAM as follows: Complementary and alternat ive medicine (CAM) is a broad domain of healing resources that encompasses all health systems, modalities, and practices and their accompanying theories and beliefs, other than those intrinsic to the politically dominant health system of a particular society or culture in a given historical period. CAM includes all such practices and ideas self-defined by their users as preventing or treating illness or promoting health and well being. Boundaries within CAM and between the CAM domain and the domain of the dominant system are not always sharp or fixed. O'Connor et al. , 1997) The second charge of the panel was to establish a list of parameters for obtaining thorough descriptions of CAM systems. The list was constructed on 14 categories first conceptualized by Hufford (1995, p. 54ff): 1. Lexicon. What are the specialized terms in the system? 2. Taxonomy. What classes of health and sickness does the system recognize and address? 3. Epistemology. How was the body of knowledge derived? 4 . Theories. What are the key mechanisms understood to be? 5. Goals for Interventions. What are the primary goals of the system? 6.Outcome Measures. What constitutes a successful intervention? 7. Social Organization. Who uses and who practices the system? 8. Specific Activities. What do the practitioners do? What do they use? 9. Responsibilities. What are the responsibilities of the practitioners, patients, families, and community members? 10. Scope. How extensive are the system’s applications? 11. Analysis of Benefits and Barriers. What are the risks and costs of the system? 12. Views of Suffering and Death. How does the system view suffering and death? 13. Comparison and Interaction with Dominant System.What does this system provide that the dominant system does not provide? How does this system interact with the dominant system? The 14th category regards research methods and it not appropriate for this essay, one which focuses on descriptions. Peruvian Curanderismo The OAM categories can be illustrated with an Andean ethnomedical system, namely Pachakuti (i. e. , â€Å"world reversal† or â€Å"transformation†) Mesa Curanderismo, a tradition deeply rooted in the Huachuma and Paqokuna traditions and blended with aspects of Paqokuna Curanderismo. They have been adapted to become accessible to the industrialized world by OscarMiro-Quesada of the Pachakuti Mesa tradition. I have discussed this system with two of its leading English-speaking practitioners, Oscar Miro-Quesada (2002) and his student Matthew Magee (2002). In addition, I have observed Magee perform two ritualistic Mesa ceremonies. Because of its complexity and sophistication, this system can be described in terms of the OAM categories (O'Connor et al. , 1997): 1. Lexicon. Specialized terms come from Spanish, Aymara (an Andean language), and two forms of assimilated Quechua language, the â€Å"rural† form (i. e. , Runasimi) and the â€Å"high† form (i. . , Khapaqsimi) —the latter spoken by royalty or people in positions of power. In describing the ethnomedical and social communitary function of Peruvian Curanderismo, however, it is important to note that several terms have changed over time. For example, the contemporary terms used to describe the shaman and the sorcerer are maestro and brujo, respectively. However, if one traces the lineage of the Pachakuti Mesa tradition, one would find the terms curandero and malero (post-Conquest), hampiq and layqa (Inca pre-Conquest), and kamasqa and sonqoyog (pre-Inca) as well.There are also variations between charismatic and non-charismatic healers and, most recently, between Pachakuti Mesa practitioners and neo-shamanic practitioners. 2. Taxonomy. The Pachakuti Mesa tradition recognizes and addresses a wide variety of physical, mental, emotional, and spiritual classes of health and sickness (Magee, 2002). Within this system, there are several types of ailments, and Spanish words are used to describ e them: enfermedad de dano (a sickness caused by human intention), enfermedad de Dios (a God-given sickness), contagio (contagious sickness), and encantos (sickness caused by enchantment).Examples of the most common, enfermedad de dano, include harmful intention directed toward the ears (por oreja), through the mouth (por boca), through the air (por aire), or by loss of one's â€Å"etheric body† or soul (sombra). The latter is typically brought about by susto or espanto (i. e. , magical shock or fright). More extreme is shucaque, or fright by trauma. In addition, there are sicknesses caused by envy and the â€Å"evil eye† (por mal de ojo) and by an â€Å"evil wind† (mal aire). The ritual encounter between the patient and the practitioner can be viewed as a dialogue about dano in which the shaman (i. . , curandero or curandera) uses a persuasive rhetoric (in speech and in song) in conjunction with ritualized activities to transform the patient's self-understandin g, hence his or her well-being. Most physical ailments fall into the category, enfermedad de Dios. In many traditions, practitioners do not deal with these conditions, but Pachakuti Mesa shamans are an exception. The visual symptoms of a God-given sickness are similar to the vista en virtud (â€Å"sight in virtue and power†) that practitioners manifest after ingesting the San Pedro cactus, a mind-altering substance.As a result these symptoms rarely show up in the campo medio, the â€Å"middle field† of the practitioner's healing altar, when he or she is performing a diagnostic rastero (i. e. , divination or â€Å"tracking†). 3. Epistemology. When tracing the origins of the Pachakuti Mesa tradition back through its oral lineage within Peruvian shamanism, one must go back to the Sechin culture, as well as the later Chavin, Tiahuanacu, Paracas, Nasca, Moche, Lambayeque, Chimu, Wari, Inca (or Inka), Aymara, Runa (or Quechua), and Mestiso traditions.Although archeolo gical discoveries in the 1980s suggest that Peru’s central highlands were inhabited from 8,000 BCE and the origins of Peru’s shamanic technology can be traced back at least to 2,000 BCE, many practitioners believe that Mesa-related healing practices were utilized far earlier. 4. Theories. When working with a Mesa, a practitioner's healing altar, the key mechanisms are believed to be his or her ability to control and direct unseen forces and entities.This is accomplished through proper utilization of the â€Å"field of the magician† (campo ganadero) as well as the â€Å"field of the mystic† (campo justiciero). Mastery of these two skills allows the practitioner to surrender his or her personal will or agenda, becoming an open, transparent vessel for Spirit to flow through, unhindered. The mastery of these â€Å"fields† is symbolized on either side of the Mesa, while the practitioner, as Master Healer or maestro, resides in the middle (campo medio). The healer also works with a supernatural hierarchy through a process of co-creation with Spirit.This hierarchy is believed to be a unified, interdependent system that provides practitioners with limitless sources of guidance and power. These sources include the Apukuna (Sacred Mountains), Huaringas (Sacred Highland Lagoons), Pachamama (Mother Earth), Mama Killa (Grandmother Moon), Inti Tayta (Father Sun), Auquis (Nature Spirits), Tirakuna (the â€Å"Watchers†Ã¢â‚¬ ), Mallquis (Tree Spirits), Machukuna (Ancestors), Machula Aulanchis (Benevolent â€Å"Old Ones†), tutelary animal allies, the elements of nature (e. g. , unu, wayra, nina, allpa), and various Roman Catholic saints (e. . , San Cipriano of Antioch, Brother Martin de Porres). Working with these sources requires a delicate balance, not only through the practitioner's negotiation of control and surrender, but through living a lifestyle that reflects this balance (ayni or â€Å"sacred reciprocity†). Train ing involves a culturally sanctioned â€Å"calling† into the tradition. When a maestro passes on his or her knowledge or bequeaths one's practice to an initiate, there is an initiatory phenomenon (karpays) and a â€Å"magical contract† (pacto magico). . Goals for Interventions. Healing is a spiritual phenomenon. Sickness is considered to have its origin in, and gain its meaning from, the Spirit world. The purpose of life itself is to be initiated into the visionary regions of Spirit and to maintain oneself in concert with all creation (Achterberg, 1985). Hence, the goal for intervention in Pachakuti Mesa Curanderismo is a successful florecimiento (â€Å"flowering of fortune† healing ritual) that is used to strengthen a person's physical and spiritual systems.Strengthening a patient's runa kurku k'anchay (â€Å"luminous body†), as opposed to suppressing the symptom, empowers the patient to remove the sickness-causing intrusion with his or her own innate he aling capacities. Once the patient's personal power has been augmented, there is often a need to go further. This is especially true if the problem is extreme, as in â€Å"soul loss,† â€Å"possession,† â€Å"enchantments,† and potent acts of dano (e. g. , curses, certain types of contagion).In these cases, there is often a need to intervene on behalf of a patient with specific techniques for removal in the form of extraction (chupa), or counteracting the attack through ritual battle (volteando, volteada, or botando in which the curse is thrown back to its sender). Successful interventions of this kind usually completely disperse the patient's negative condition and symptoms, and generate sickness in the person who initiated the curse. Depending on the original severity of the curse, death of the sorcerer has been known to occur. 6. Outcome Measures.A successful intervention is gauged primarily by the quality of the florecimiento, which brings about the energeti c restoration or supplementation of a person's potentials. This â€Å"flowering† of dormant potentialities brings forth qualities in the person necessary to maintain a sustainable livelihood. 7. Social Organization. Depending on the level of shamanic mastery attained, practitioners will be assigned various civic units of geographical space in which to work, ranging from the ayllu (extended family or community), to the llaqta (village or town), and finally the suyu (region).A curandero (or curandera) performs shamanic functions in this system. They include working with sicknesses brought about by sorcery, imbalance, envy, etc. , providing insight into conditions of the harvest, resolving interpersonal conflicts, influencing the weather, finding lost items (as well as lost persons or souls), and attending to a variety of spiritual, mental, emotional, and physical conditions. These healing sessions are primarily conducted on Tuesdays and Fridays.The curandero (or curandera) also performs specific ceremonial services for the community, such as providing ritual feedings (offrendas, despachos, or haywarikuys) for Pachamama (Mother Earth), the Apukuna (Sacred Mountains), and various supernatural beings (such as the â€Å"Watchers,† Nature Spirits, Tree Spirits, the Ancestors, the Benevolent â€Å"Old Ones†). A despacho or haywarikuy is a ritual offering used to promote a reciprocal exchange of thanks between human communities and the natural world.In the Paqokuna tradition, the pampa misayoq (ritual specialist) may learn to create and perform several hundred different types of despacho or haywarikuy ceremonial rituals. The performances are quite diverse and comprise 24 basic elements (recados) in the form of plant, animal, mineral, and human made products. All of these elements are reverently arranged on a square sheet of paper and either burned or buried as a way to promote the lifestyle of ayna (sacred reciprocity). There are offerings for birt hs, deaths, marriages, good luck, prosperity, longevity, and harvests, to name a few.It is also common for practitioners to use despachos to bless certain spaces, such as living quarters, work places, and sacred sites. There are various types of curanderos and curanderas, e. g. , the alto misayoq (herbalists), the pampa misayoq (ritual specialists), and the kuraq akulleq (literally, â€Å"master chewers of coca†). The latter is considered to have attained the highest level of mastery and rank within the shamanic hierarchy. Both males (curanderos) and females (curanderas) are employed as healing practitioners in this tradition.The services of a brujo (or sorcerer) can be purchased to adversely affect the health of a rival, or to assure success in business, love, and other aspects of personal gain. The person who has â€Å"hired† a brujo may reveal this fact to an ally, who will subsequently pass the news along a network that eventually leads to the intended target. Simi larly, the curandero’s or curandera's analysis of the source of a patient’s suffering is often a topic of subsequent conversation between social intimates of the patient; this is also true of the countermeasures (e. g. , the volteada or ritual in which sorcery is reversed) often used by the shaman.Potential patients for both the curandero and brujo include most of the members of the community, but when seeking medical assistance from the curandero, patients also commonly see both a curandero and an allopathic physician, often not openly discussing their visit to the former. This reluctance to reveal utilization of the indigenous healing system applies to any member of the social system, from the wealthy business executive to the poor farmer. Patients of curanderos and brujos include owners of businesses, political office holders, educators, military officers, and even a few medical professionals.These persons are willing to spend significant amounts of money and subjec t themselves to physically exhausting ritual treatments because they have shared with curanderos the belief that sorcery can be the cause of sickness. The majority of patients for both the curandero and brujo are women. This may be due to the inferior role of the female as a subordinate within the public transcript of male privileged society (e. g. , the values of machismo which support gender-based hierarchies, and the subsequent psychological and social conflicts that arise as a result).Through the sorcerer, women can gain access to powers that guarantee spousal fidelity (e. g. , â€Å"love magic†), thus eliminating the competition (e. g. , dano). Even the apprehension that a woman might pursue this alternative can act as an effective sanction. The curandero, on the other hand, provides women with the means to redress wrongs and to hold men accountable for their actions. 8. Specific Activities. a. Diagnosis: Diagnosis can be carried out through a variety of activities, for example, a rastreo (divining and tracking), coca leaf divination, reading the entrails of a guinea pig, or casting shells, etc.However, the source of diagnosis most commonly utilized in healing situations by Huachuma curanderos is the San Pedro cactus. The entheogenic San Pedro imbues the healer with vista en virtud (virtue, vision, and insight), which enables him or her to diagnose not only the illness, aliment, or disease of a patient, but often the source of said illness, aliment, or disease and specific ways to cure it. The curandero’s mesa (personal healing altar) also plays a vital role in the divinatory process of diagnosis, e. g. , by speaking to the curandero through the cuenta (the history, story, narrative, or â€Å"account†) of a specific piece or pieces.There are also practitioners who will â€Å"read† the energy of a person’s poq’po or wayrari (so-called â€Å"electromagnetic energy field†) to detect imbalances or deficiencies within that energy field and as a means for diagnosis. Ultimately, the above forms of diagnosis are highly effective and are commonly referred to by anthropologists because of the mystical flavor of shamanic healing arts. However, one must not overlook the curandero’s keen ability to observe with his or her senses (e. g. , simply observing how a person looks, smells, feels, interacts with the world).Curanderos will also often check a person’s tongue, nose, eyes, ears, glands, etc. , as a means for diagnosis. The combination of practical and mystical forms of diagnosis have availed the curandero with a high degree of accuracy regarding diagnosis. b. Treatment: The various modes of treatment employed by the curandero are as diverse as the conditions requiring treatment. However, nearly all treatments involve the use of a mesa (healing altar). A mesa is the sacred healing altar of a curandero, one that works in mediation with spiritual and cosmic forces for ritual healing .It is a microcosmic embodiment of a macrocosmic reality. This shamanic altar contains ritually empowered objects, which are aesthetically arranged on a sacred textile (unkhunas) to reflect the system of medicine employed by its carrier, e. g. , his or her lineage, cosmological background, animal allies, spirit guides, personal apukuna and huaringas (sacred mountains and lagoons). There are four kinds of objects primarily incorporated into a Pachakuti Mesa: khuyas (sacred stones), sepkas (power objects), estrellas (gifts from the spirits of the mountains), and enqas (totem fetishes).Among these, it is also common to find batas, palos, and espadas (staffs, sticks, and swords used for protection), florecimientos, (extractions, infusions, ritual battle), pututus (conch shells used to â€Å"call in† spiritual assistance and loosen blocks in an person’s body), seguros (good luck charms, protection pieces), rumikuna or khuyas (stones used for healing), condor feathers (used for directing energy and cleansing a person’s poq’po or energy field), huacos (objects and artifacts from Colonial and pre-Columbian times used to anchor specific energies into the medicine ground, often that of the ancestors), agua de Florida or agua de Kananga (colognes and perfumes, which are spayed through the mouth for cleansing and purification), rattles and whistles (to balance or bring in energy, commonly used when singing tarjos or medicine songs).It is also common to find candles, crosses, images of Roman Catholic saints, meteorites, ceremonially woven belts (chunpis), crystals, holy water, water from the melting ice of glaciers, San Pedro cactus, tobacco, coca leaves, singha (a combination of coca, tobacco, cane alcohol, and such perfumes as agua de florida, taboo, and siete poderes (which is imbibed through the nose), and incenses such as palo santo or copal. An herbal pharmacopoeia can occasionally be found as well. These objects (as well as the items spec ific to the individual mesa carrier) are arranged in a spatial configuration on the sacred textiles (unkhunas) and worked with to assist in the attainment of physical, emotional, spiritual, and mental integration and balance for the patient in the healing session.When a Pachakuti Mesa is used in ritual healing the distinction between the symbol and that which the symbol represents is dissolved. The objects arranged upon the mesa become the mountains, the rivers, the puma, or the empowered representation of the curandero’s own healing. Within this state of non-ordinary consciousness the line that delineates subject and object blurs, and the curandero is able to work with the mesa to bring about healing for the patient on an energetic level, which working at the source of the condition rather than through medicating the symptoms. Treatment also commonly involves incorporating the family members of the patient in the healing ceremony.This helps ensure that the patient will not o nly return to his or her community transformed, but he or she will return to a transformed community as well. Curanderos often find themselves acting simultaneously as apologists for, and avengers of, social injustices. 9. Responsibilities. a. Practitioner responsibilities: To attain a competent level of mastery through apprenticeship and experiential training, the aspiring practitioner must complete a series of rites of passage (karpays) governed by his or her teacher, elders and peers in the tradition, and the spiritual hierarchy. An example of the latter would be a demonstration of using coca leaves for diagnostic purposes.Once an apprentice is deemed qualified by his or her community, he or she may begin seeing patients on a small scale, but must build a solid reputation as a competent healer. This requires that the curandero consistently provide accurate diagnosis and effective treatment for the patients in need of healing. The curandero is also responsible to recommend alterna tive means for healing if he or she is not capable or does not specialize in the condition presented by the patient. In addition to being a qualified and capable healer, the curandero must also live a lifestyle of ayni, which reflects not the qualities of the tradition, but the living example of balance mirrored by nature and the living cosmos.This requires one to exist in uninterrupted communion with the spiritual hierarchy, to live as a perpetual student of life, and to continually deepen one’s relationship with the phenomenal world, with one’s internal world, and with the living universe around one. b. Patient responsibility: To be open and willing to participate in the healing being offered, as well as to be willing to implement the advice or prescription suggested by the curandero. The patient is also responsible to provide some form of reciprocal exchange for the healing service provided, either monetarily or through some form of barter or trade. c. Family respon sibility: To be present for the healing ceremony if possible, and to provide support with the information gained from the healing session to ensure the patient is able to recover in an environment that supports this new, transformed paradigm.The family is also responsible for communicating this information to pertinent community members who can further reinforce the transformed living environment for the patient. The family is often responsible to help compensate the curandero, either through monetary means or through trade if the patient is unable to do so. d. Community responsibility: To be a supplemental presence of support for the patient and to reinforce the transformed living environment for the person in transition. 10. Scope. This type of Peruvian shamanism has been practiced over the millennium in remote, northern areas of Peru. This isolation has helped Pachakuti practitioners preserve their independence and their prerogatives.The apparent success of the Pachakuti system i n its place of origin is an additional reason for its longevity. The scope of this healing system is comprehensive, as it is used for physical, mental, emotional, and spiritual problems. However, there are allopathic treatments and technologies that would bolster traditional medicine, and well-meaning curanderos and curanderas often endeavor to make referrals to a clinic or hospital (typically, at a distance) if that would help their patient. 11. Analysis of benefits and barriers. What are the risks and costs of the system? Due to the recent advances in allopathic medical technology, competition between biomedical organizations and indigenous systems is becoming more common.The boundaries that delineate these two systems, and the conditions they address, are often blurred. Poor people often turn to indigenous healers because biomedical treatments are too expensive. However, curanderos are not part of a recognized profession and therefore operate in legal and social marginality. Many curanderos experience harassment from local police, who use rarely enforced legal restrictions on non-licensed medical practitioners to extort protection payments. Church and civic officials have also been party to repressive measures against curanderos. Curanderos certainly recognize the tenuous position that they occupy in the Peruvian medical system.Some prefer to maintain a very low profile to avoid the notice of local officials, for example, by performing their ritual sessions in remote agricultural fields. Other curanderos bank on the support of well-connected patients to keep them out of trouble. 12. Views of suffering and death. This system holds that there is a basic continuity between life and death. When the physical body dies, life and death are not seen as separate, for life cannot exist without death. When the physical body dies it goes into the Earth and feeds it, giving life to the plants and trees. The plants feed the animals, who feed the Earth, ad infinitum, in a self-regulating interdependent relationship seen as the great web of life.All things are born from Pachamama (Mother Earth) and all things shall return to her. Views of the afterlife vary from practitioner to practitioner but most believe in life after the physical body dies. All in all, death is seen as a natural process, inseparable from life. Anthropologists have long noted that life’s transitions (i. e. , birth, death) are commonly marked by elaborate rituals, the purpose of which is to smooth the disruption to the social order that such status changes can cause. The body of the person undergoing the transition is often the target of symbolic manipulations: special decorations (e. g. , burial costumes) and purification (e. g. , cleansing).A particularly frequent symbolic message conveyed by these rituals is death and rebirth; the person is dying from the social status previously held and being born into a new identity. Indigenous rituals are reminiscent of hospital patie nts who put on the standardized garb required by the institution, as well as the strict fasting enforced before surgery, the cleansing processes requested of the patient as well as surgical staff, the process by which the patient’s vital signs and consciousness are taken to a death-like state, and the patient's frequently cited post-surgery sense of being reborn. The fact that all these features have medical justifications and explanations does not diminish their potential symbolic impact. Much of the suffering experienced by Peruvians is attributed to acts of dano, or sorcery.This is especially potent in a society like that of Peru where personal relationships are critical to economic survival and where the powers of the sorcerer and the curandero are assumed to have empirically verifiable effects. Dano, as a threat or as an accepted diagnosis, can have serious social repercussions no matter how outsiders to the tradition might view the forces that the sorcerers claim to con trol. Peruvian society’s rigid social hierarchies make people increasingly dependent upon personal networks in order to survive. The resulting burden of economic self-interest loaded onto personal relationships has contributed to a social world in which mistrust inevitably accompanies interdependence.It should not be surprising, therefore, that social relations would be the assumed source of misfortune and suffering for rural Peruvians. This stands in contrast with traditional Andean attributions of sickness to natural forces and supernatural transgressions. 12. Comparison and Interaction with Dominant System. What does this system provide that the dominant system does not provide and how does this system interact with the dominant system? On the one hand, Miro-Quesada (2002) believes that global shamanism is an emerging phenomenon of the 21st century. The Pachakuti teachings are intended to empower all interested persons, allowing them to work with unseen forces in order to promote healing and balance through spiritual mediation.But on the other hand, the dominant role being played by allopathic biomedicine often rules out people’s interest and participation in an indigenous healing system (e. g. , Levi-Strauss, 1955). Conclusion On July 14, 2003, Matthew Magee performed a ritualistic ceremony on the top of Mount Tamalpais in Marin County, California, in the spirit of Kamasqa Curanderismo, one of the components of the Pachakuti Mesa tradition. This ceremony waves together several themes that expressed the participants' reverence for the Earth as teacher and mother. Together, the group created a consecrated Earth offering (despacho) to foster a lifestyle of sacred reciprocity (ayni) and an awareness of life's interdependence, calling upon participants to live harmoniously with oneself, with others, and with the planet as a whole.There are ecopsychologists who believe that healing the planet is basically a shamanic journey; if so, traditional medi cal systems can play a vital role in this endeavor. However, while herbal medicines, indigenous treatments, and shamanism are becoming faddish in the West, indigenous systems in their original contexts are becoming increasingly endangered. It is crucial to support indigenous cultures and learn what shamanism and related systems of healing have to offer the postmodern world before archival research in libraries replaces field research as the best available method for investigating these healing systems. Their longevity indicates that they have served many groups of eople quite well over the millennia. The question remains as to what they can offer a world where allopathic biomedicine is not only revered but also powerful, a world in which reality is constricted to measurable physical dimensions and alternative perspectives are dismissed as â€Å"folk psychology† (Kelly, Kelly, Crabtree, Gauld, Grosso, & Gordon, 2007, p. 54). This discussion of Pachakuti and Navaho healing mode ls has demonstrated the adaptability of many traditional healing systems to conditions in the contemporary world. The eclectic nature of the system bodes well not only for its survival but its compatibility with collegial practitioners of allopathic medicine.Finally, the ecological emphasis of the two systems provide inspiration for ecologists and their colleagues who agree with indigenous practitioners that the Earth is at risk, and that collaborative efforts are needed to redress the natural balance. References Achterberg, J. (1985). Imagery in healing: Shamanism and modern medicine. Boston: Shambhala. Cassell, E. J. (1979). The healer’s art. Middlesex, England: Penguin. Freeman, L. W. (2004). Mosby’s complementary & alternative medicine: A research- based approach. St. Louis, MO: Mosby. Geertz, C. (1973). The interpretation of cultures. New York: Basic Books. Hufford, D. (1995). Cultural and social perspectives on alternative medicine: Background and assumptions.Alt ernative Therapies in Health and Medicine, 1(1), 53-61. Iljas, J. (2006). Introduction to psychology: Inner reality, outer reality in diversity. Dubuque, IA: Kendall/ Hunt. Kelly, E. F. , Kelly, E. W. , Crabtree, A. , Gauld, A. , Grosso, M. , & Greyson, B. (2007). Irreducible mind: Toward a psychology for the 21st century. Plymouth, UK: Rowman & Littlefield. Kleinman, A. (1995). Writing at the margin: Discourse between anthropology and medicine. Berkeley: University of California Press. Kluckhohn, C. , & Leighton, D. (1962). The Navajo (rev. ed. ). Garden City, NJ: Natural History Library. Krippner, S. (2002). Spirituality and healing. In D. Moss, A. McGrady, T. C. Davis, & I.Wickramasekera (Eds. ), Handbook of mind-body medicine for primary care (pp. 191-201). London: Sage. Krippner, S. , & Welch, P. (1992). Spiritual dimensions of healing: From tribal shamanism to contemporary health care. New York: Irvington. Levi-Strauss, C. (1955). The structural study of myth. Journal of Ameri can Folklore, 78, 428-444. Magee, M. (2002). Peruvian shamanism: The Pachakuti mesa. Chelsford, MA: Middle Field. Mahler, H. (1977, November). The staff of Aesculapius. World Health, p. 3. Miro-Quesada, O. (2002). Foreword. In M. Magee, Peruvian shamanism: The Pachakuti mesa (pp. vii-viii). Chelsford, MA: Middle Field. O’Connor, B. B. (1995).Healing traditions: Alternative medicine and the health professions. Philadelphia: University of Pennsylvania Press. O’Connor, B. B. , Calabrese, C. , Cardena, E. , Eisenberg, D. , Fincher, J. , Hufford, D. J. , Jonas, W. B. , Kaptchuck, T. , Martin, S. C. , Scott, A. W. , & Zhang, X. (1997). Defining and describing complementary and alternative medicine. Alternative Therapies in Health and Medicine, 3 (2), 49-57. Sandner, D. (1979). Navajo symbols of healing. New York: Harcourt, Brace, Jovanovich. Siegler, M. , & Osmond, H. (1974). Models of madness, models of medicine. New York: Macmillan. Torrey, E. F. (1986). Witchdoctors and p sychiatrists. New York: Harper & Row.

How was the plot to kill president Garfield created and carried out Essay

How was the plot to kill president Garfield created and carried out Please use specific examples from book - Essay Example He had a very high means of opining about himself. He felt that he deserved to get a very powerful job in United States, and James Garfield was in the best position to offer him that job (Millard 2012). However, the president did not offer him his wish; so he plotted to assassinate him. Charles Guiteau was a republican like James Garfield and Ulysses Grant. Prior to the elections of 1880, James Garfield and Ulysses Grant were running for the presidency and James Garfield won the Republican nomination to face Democrat Winfield S. Hancock in the general elections. Guiteau had engaged in several ventures before joining politics. He then supported the Republican presidential candidate James Garfield after his favourite Stalwart candidate Ulysses Grant lost in the nomination. Stalwart was a Republican faction allied to the former president Ulysses Grant. The other faction was Half-Breeds led by President Garfield. The vice president Arthur who later took over as president after the assassination of President Grant was a Stalwart. Guiteau wrote a speech called Grant vs. Hancock which he later changed to Garfield vs. Hancock in support of Garfield (Millard 2012). He later said that his intention was to unite the two factions of the Republican Party; and one of the reasons why he murdered the president is because he thought it was the best way to resolve the divisions in the Republican Party which, according to him, were caused by President Garfield. With these political sacrifices he made, Charles Guiteau hoped that the Republican government would offer him a good job. He aimed at a diplomatic post in Vienna, and later asked for the same position in Paris. During the 1880 campaign he was all over the Republican headquarters in New York City seeking rewards for his efforts which he believed to have caused the narrow win of Garfield over Hancock. Later after the inauguration of Garfield in March 5, 1881, he went to the White House in Washington and

The Development in Saudi Arabia Essay Example | Topics and Well Written Essays - 1500 words

The Development in Saudi Arabia - Essay Example It also experience major government controls over various economical activities. The growth rate of the country since 2000 has been varying with the highest being in 2004. The country is ranked as the largest exporter of petroleum in the world and has a very important role to play in Organization of Petroleum Exporting Countries (OPEC). Currently, the country is focusing on encouraging the private sector to invest in the country in order to create more employment opportunities for the local citizens in order to reduce the unemployment rate in the country that currently stands at 10.9%. Some of the effort by the government to attract more investors in the country is through improving service provision in telecommunication sector, natural gas exploration and other power generation measures. These measures are aimed at provision of a serene enviroment for transacting busineses. One of the challenging issues that affects Saudi economy is a high population of people who are illeterate. Th is has given way for the foreignors who retrieve countrys wealth and send back to their country. The government is therefore, aiming at improving education levels in the country through setting up various education institutions in the country.(Trading economics 2012) Population The population in Saudi Arabia stands at 26.1 million people as per July 2011 statistics. 20.5% of this population is Saudis while 5.6million of the total population are composed of foreign nationals. Annual growth rate in the country stands at 1.536% as per 2011. Major ethnic groups in the country comprise of Arabs 90% (of native population), afro- Asian (10% of native population). The main official language is Arabic while the literacy levels stands at approximately 78.8% with male comprising of 84.7 and female 70.8%. The workforce in the country comprise of 7.3 million with 80% of this number being foreigners. Industries hold 21.4 % of the population with services which include government holding 71.9% and agriculture on the other hand supporting 6.7% of the population (US department of state, 2012). Wealth indicators in Saudi Arabia Middle East countries are one of the driest countries in the world. As a result the country spends much of its revenues in importing food from other agricultural viable countries. In measuring the level of wealth, the main wealth indicator is food security. Food security in Saudi Arabia is measured using three key indicators. They include food aid as a proportion of overall domestic consumption, imports as a proportion of total consumption and lastly the income levels of the population in the country (Wilson & Bruins 2008, p.52). On the household levels, the mostly used indicators include: land ownership, vehicle ownership, type of the house, ability of the citizens to save their money and average earning per household. This gives the government a data that is used to gauge the public wealth status an aspect that is used in resource distribution (Wilson & Bruins 2008). Most significant industries in Saudi Arabia Saudi Arabia is the world leading oil exporting countries. As a result the country’s main industries are oil related. These industries include crude oil production industries, petroleum refining industries and petrochemical industries. The three industries are the major contributors to Saudi Arabia economic growth. In addition, the country is one of the leading dates exporters making the sector play an