Porsche Cayenne

JOHN DEIGHTON JILL AVERY JEFFREY FEAR op yo Porsche: The Cayenne Launch In March 2003 the Porsche brand faced a challenge without precedent in 55 years. Since the e launch of the Porsche 356 in 1948, the brand had stood for expensive, high-performance sports cars. Its designs, varying little over the decades, formed and then came to reflect the notion of a classic n sports car. It was a connoisseur’s racing vehicle, engineered for speed and maneuverability. But it was also a rebel’s car; the car James Dean died in and that Tom Cruise ditched in the motion picture Risky Business.Always and everywhere, Porsches were sports cars. tC 2003 marked the end of this single-minded focus. In March of that year, it launched a sports utility vehicle (SUV), the Porsche Cayenne. The extension of the brand to a new product category posed many challenges. Looking ahead, the company had to think about how to position the Cayenne while protecting the Porsche parent brand. How much and in what ways would the Cayenne change Porsche’s image and brand identity? The company also had to decide what to do about the on oing consumer-to-consumer ng conversations in online Porsche brand communities.Some argued that online brand communities were an important source of consumer research. Others argued that the consumers who participated in the online conversations held views more extreme than the average consumer. Were they of any value in deciphering the market’s renegotiation of Porsche’s brand meaning? n No The Legacya Do Ferdinand Porsche was born on September 3, 1875 in Bohemia, part of the former AustroHungarian Empire. After a brief stint as Daimler-Benz’s technical director, he left the company, which did not want to build small, fast cars for the public.Unemployed at 55, Porsche started his own design firm. The staff grew to include some of the luminaries of German automotive engineering, Porsche’s son, Ferdinand Anton Ernst â€Å"Fe rry† Porsche, his son-in-law, Anton Piech, whose son became chairman of Volkswagen, and a handful of key en ineers. Ferr became head of ng ry research and development. a This section draws from Jeffrey R. Fear and Carin-Isabel Knoop, â€Å"Dr. Ing. h. c. F. Porsche AG† (A) and (B), HBS Nos. 706-018 and 706-019 (Harvard Business School Publishing, 2006). _______________________________________________________________________________________________________________ HBS Professor John Deighton, Jill Avery (Simmons School of Management), and Jeffrey Fear (University of Redlands) prepared this case. This h case was developed from published sources. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright  © 2011 President and Fellows of Harvard College.To order copies or request permission to reproduce materials, call 1-800-5 45-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to www. hbsp. harvard. edu/educators. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School. This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Porsche: The Cayenne Launch rP os t 511-068In 1934, Adolf Hitler asked Porsche to develop a family car that was both cheap and reliable—thus the â€Å"people’s car† or Volkswagen, was born. Its design was intended to evoke the German infantry helmet and honor National Socialist ideals. During wartime, Porsche focused on tank design, including the formidable â€Å"Tiger. † In June 1948, the company launched the 356, the first automobile to carry the Porsche brand mark. A Volkswagen factory manufactured the 356b, with its tubular spaceframe chassis, aluminum body, and rear-mounted four-cylinder engine, until Porsche opened its own production facility in Stuttgart-Zuffenhausen in 1950. See Exhibit 1 for company milestones. op yo In 1953, Porsche produced its first racing car, the 550. In 1964 came the iconic 911, also a racing car. Designed by Ferry’s eldest son, the rear-engine vehicle became a twentieth-century design landmark. In the 1970s, Porsche and Volkswagen collaborated on launching the 914. In 1972, Porsche became a joint stock company (Porsche AG) with the Porsche and Piech families on the board. Porsche AG was nearly derailed by the U. S. stock market crash in 1987.Sales volume collapsed from a peak of 50,000 cars in 1986 to 14,000 in 1993. 2 At the time Ferry Porsche commented: â€Å"I certainly have not given away my family name to sell off and cash out the company to the highest offer. This philosophy might hold true for Americans, but not for us. †3 tC In 1991, Porsche launched the first of several cars at price points lower than traditionally associated with the Porsche brand. The 911 RS America was a no-frills version of the long-running rear-engine 911 model; priced at $54,000, it ran about $10,000 under traditional Porsche prices.This was followed by the entry-level 968 at about $40,000, close to the $37,000 Nissan 300ZX Turbo or the $33,000 Mazda RX-7. 4 Design and production changes continued in 1992 with the introduction of a revamped, water-cooled 911, the 996. The decision to break with the past and replace the traditional air-cooled engine with a water-cooled engine was seen as a sacrilege to many Porsche purists. No Wendelin Wiedeking became Porsche’s executive director (CEO) in 1992. In the mid-1990s he steered Porsche through one of its most noteworthy turnarounds.He staved off bankruptcy by cutting costs, paring the product line to two models, bringing Japanese manufacturing processes to Porsche’s plant s, and expanding into 70 global markets—30 more than in 1993. 5 Do In 1996, Porsche launched the $40,000 Boxster, a zippy two-seater with an â€Å"entry-level† price. In departures from tradition, the Boxster shared 40% of its parts with the 9966 and was assembled by a third party contract manufacturer, Valmet Automotive, in Finland, rather than at b Porsche 356 Photograph Courtesy of Stephen Hanafin, http://www. flickr. om/photos/shanafin/432562761/, Porsche Racing Photograph Courtesy of James Emery, http://www. flickr. com/photos/emeryjl/4620731098/, Porsche 911 Photograph Courtesy of Collector Car Ads, http://www. flickr. com/photos/[email  protected]/4586382193/, Porsche 996 Photograph Courtesy of lacomj, http://www. flickr. com/photos/[email  protected]/3813925902/, Porsche Boxster Photograph Courtesy of The Car Spy, http://www. flickr. com/photos/thecarspy/2641636681/, Porsche Cayenne Photograph Courtesy of The Car Spy, http://www. flickr. com/photos/thecarsp y/47216338591. This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 511-068 rP os t Porsche: The Cayenne Launch Porsche’s legendary Zuffenhausen plant. â€Å"We had no choice,† said Wiedeking, stressing that on-site German assemblers and engineers ensured that the Boxsters assembled in Finland were â€Å"100% Porsche†7 and just as good as those made in Germany. 8 The SUV Betc op yo In 1998, Porsche announced its plans to develop an SUV.By then, the 50year old firm was back on solid financial footing and its stock price was outrunning the national DAX index by 180% (see Exhibits 2 and 3 for stock and financial information). The Porsche Cayenne SUV would be the company’s third model series, joining the 911 and Boxster sports cars, and the first developed and launched entirely under Wiedeking’s watch. He wante d the vehicle to combine traditional Porsche styling and performance with off-road driving capability and a spacious interior, placing more emphasis on â€Å"sport† than â€Å"utility. The new car had to retain the brand’s style and panache while accommodating family, outdoor, and transport activities. Wiedeking felt that SUVs were â€Å"nearer to the sports car business than sedans. We also looked at minivans, but we do not want an eighth ‘me-too’ product. It has to be a real Porsche in terms of chassis, performance, and design†Ã¢â‚¬â€Porsche’s core strengths. 9 The average Porsche customer already owned three cars: an SUV, a sedan, and a Porsche sports car. 10 Wiedeking saw an opportunity: â€Å"We know from our surveys that a lot of our customers are waiting for a Porsche SUV.Then there will be no doubt that customers can proudly park their SUV next to a Mercedes S-Class and other cars like that. †11 tC Porsche wanted to leverage its premium brand to enter a hot, new market to capture incremental growth and to diversify the business to hedge against potential declines in the sports car segment due to economic fluctuations. The company observed other car manufacturers like BMW and MercedesBenz successfully leveraging their brands across a wide range of product categories and wanted to do the same.SUV optimists argued that Porsche had creatively found a way to diversify its aging model range in an oversaturated market. They estimated a breakeven number of 10,000 units priced between DM 100,000 and DM 120,000. By building 20,000 SUVs a year, Porsche could boost its total sales by 50%. 12 The SUV Market Do No In the late 1980s, the Ford Explorer legitimized the SUV as the quintessential American family vehicle. The SUV’s popularity with U. S. drivers was attributed to the nation’s historic affinity for larger cars and trucks that could serve for both work and personal use.This new breed of vehicle was viewed as innately â€Å"American. † Its rugged and powerful appearance, and the promise to combine the carrying capacity of station wagons with the off-road capability of pick-ups, offered an alternative to old fashioned family suburban and rural utility vehicles. The sporty and aggressive design appealed even to those who would never dream of taking a car into rough terrain, namely preppy, youthful professionals, including working women and stay-at-home mothers (colloquially known as â€Å"soccer moms†) who preferred not to be associated with station wagons and minivans.After Ford’s successful launch of the Explorer, other leading manufacturers both in the U. S. and abroad (Japan, Germany) followed with their own models. By the late 1990s, the SUV market was deemed intensely competitive,13 as many manufacturers strove to offer SUVs with car-like agility, the space of a mini-van, and the utility options of a sport vehicle. Fortunately for owners of such lar ge c This section draws from Jeffrey R. Fear and Carin-Isabel Knoop, â€Å"Dr. Ing. h. c. F. Porsche AG† (A) and (B). 3 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013.Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Porsche: The Cayenne Launch rP os t 511-068 cars (SUVs weighed 4,000 to 6,000 pounds; cars 2,000 to 4,000 pounds), gasoline prices in the U. S. remained very low by global standards. In 1998, light trucks, including SUVs, captured 51% of the new U. S. vehicle market, double the share they had 20 years before, propelled by a strong economy, demand for roominess (some even had 10 cupholders) and the perception of enhanced driver visibility and safety. op yoPorsche’s SUV would join an already crowded market, estimated at about two million units in early 1998. Still, the category ranged from pick-ups, light trucks, and small jeeps to high-end entries such as the Range Rover—the only SUV with a base price over DM 100,000. 14 A successful high-end, high-performance Porsche SUV could trigger me-too followers within two to three years, thanks to the compression of development intervals within the automobile industry. Already, Mercedes Benz was considering an M-Class SUV vehicle with a 300-plus horsepower engine. BMW was also rumored to be interested in developing what would later become the X5.Other European, Japanese, and American brands were looking into developing luxury SUVs, including Lexus, Infiniti, Audi, Lincoln and Cadillac. The potential for such new entrants threatened the sustainability of Porsche’s sales forecasts of 20,000 SUVs each year. 15 By 1996, the premium SUV market was proving its success. Sales of the 1996 Mercedes off-roader M-Class demonstrated a demand for luxury SUVs (see Exhibit 4 for SUV market information). Luxury/crossover SUVs targeted the high-end market with top quality interior amenities such as stylish materials (wood and leather) and lowered suspensions.Sales of high-end SUVs—those costing between $43,000 and $49,000—were expected to reach 300,000 in 1998 (up from 75,000 in 1995)16. Exhibit 5 shows SUV sales forecasts by region. Cadillac was expected to launch an SUV in 1999, and Ford was testing a 19-foot â€Å"crew wagon† with a V10 engine. tC Competition in luxury SUVs was intensified by major Asian players. Lexus, Toyota’s luxury auto division, saw its small LX 450 SUV grow to nearly 30% of all U. S. Lexus sales in just a few years. Acura (Honda), Infiniti (Nissan), and Mitsubishi already had luxury offerings in the U. S. arket. Nissan’s Xterra SUV was planned for 2000. 17 Launching a luxury SUV was an expensive bet for Porsche. R&D alone amounted to â‚ ¬300 million, and capital expenditures for new plant and equipment tripled between 2000 and 2002. 18 No Wiedeking was confident in his SUV strategy: â€Å"Our new sport utility ve hicle will not only correspond in full with Porsche’s high technical and visual standards, but will also pave the way for future growth potential in the sales, turnover, and earnings areas† he promised. 19 An SUV would give Porsche â€Å"a new dimension in both profit and revenues. 20 Fred Schwab, President of Porsche Cars North America explained, â€Å"What is going to distinguish us from them [Porsche’s competitors] is that they are making practical vehicles that are good off-road, but are essentially there to get your groceries and take a ride on Sundays. Porsche is in the business of making fun cars. The Cayenne will go faster, handle better and you will be more comfortable in it. It won’t swing and sway†¦ It will go from zero-to-sixty in 5. 4 seconds. This SUV will be fun to drive. It will be an SUV sports-car lovers will love. †21 Do By 2002, SUVs were under attack in the U.S. by cultural critics. Starting in 1997, Keith Bradsher, a prom inent reporter for the New York Times, spent four years writing scathing critiques of SUVs that culminated in a book launched in 2002 entitled â€Å"High and Mighty: The Dangerous Rise of the SUV. † In his articles and book, Bradsher debunked the widely held notion that SUVs were safer than cars and held up SUVs as a prime example of how American consumerism was contributing to global warming. Some began to question the long-term attractiveness of the SUV segment, predicting a move towards smaller, more fuel-efficient cars. 2 4 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 511-068 rP os t Porsche: The Cayenne Launch Bradsher also painted an unflattering portrait of SUV buyers, â€Å"Who has been buying SUVs since automakers turned them into family vehicles? They tend to be people who are insecure and vain. They are frequently nervous about their marriages and uncomfortable about parenthood. They often lack confidence in their driving skills.Above all, they are apt to be self-centered and self-absorbed, with little interest in their neighbors or communities. †23 Bradsher criticized SUV owners for buying SUVs with functionality that they didn’t need, citing auto-industry surveys that showed that less than one in 100 SUV owners took their SUVs off-road. Bradsher connected the SUV to â€Å"soccer moms† who were rejecting minivans and opting into SUVs as their vehicle of choice. Exhibit 6 shows consumers’ perceptions of SUV drivers and Porsche drivers. Listening to Consumers in Online Communities The Rennlist Community op o Web communities provided an opportunity to observe how Porsche owners reacted to the announcements and actions of the company in the months leading up to and following the Cayenne launch. The launch lit up the numerous and diverse online brand communities devoted to Porsche, as enthusiasts around the world came together to talk about this cataclysmic event in the life of their brand in chat rooms, web discussion forums, and blogs. One such community was Rennlist. tC Rennlist, www. Rennlist. com, was an international online community of Porsche enthusiasts founded in 1998.At the time of the Cayenne launch it had 36,000 active posters of comments and a lurker population of 200,000, a silent audience who read but did not participate in the discussions. Rennlist provided a virtual communal gathering place for Porsche enthusiasts, as highlighted in the site’s mission statement: â€Å"[Our members] look to Rennlist as their community, their international club—and their ‘daily dose’ of what we are all bonded by—an uncommon sense of loyalty to the Porsche marque as well as to other Rennlist members throughout the world. Rennlist was independently owned and run by Porsche enthusiasts and was not affiliated with Por sche, although some local Porsche dealerships enjoyed commercial sponsorship through advertising banners on the site. No One of the most used features of Rennlist was its web forums, online discussion boards where members engaged in ongoing dialogues with each other by first initiating topics of conversation with a seed post, and then listening and responding to others’ comments in asynchronous conversations. All posts were public and were archived on the website for posterity.In the words of a Rennlist member, the web forums simulated a virtual fraternity: â€Å"I haven’t had as much fun talking about cars in many years, than I’ve had on these forums. Many times it’s like sitting around a big roundtable with everyone having beers and telling war stories & giving each other help. It’s fraternity; and I appreciate it. † While anyone who joined could post to Rennlist’s discussion forums, the majority of posters claimed to own at least o ne Porsche vehicle. Most posters used a virtual signature which contained a list of their Porsche cars.The Porsche Brand as an Identity Marker Do Rennlist posts painted a picture of Porsche as an ego-expressive brand. While postings seldom addressed the issue directly, a sense of Porsche as a masculine identity marker was palpable in the kinds of topics discussed: the focus on performance metrics, engineering standards, and admiration for Porsche’s manufacturing and racing prowess. Occasionally, however, posts like this appeared: There’s super hot women everywhere, ignoring us†¦tons of hotties, no love (and in some cases a bit of attitude and contempt) from any of them†¦ ntil we walk outside and head to my 996. When it is apparent as to which car we are going to, I hear, ‘Mr. bald guy’ (I have 5 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Porsche: The Cayenne Launch rP os t 511-068 no hair) ‘Where are you going? Come back’ from a group of about 10 absolutely drop dead beautiful, tightly clothed, amazingly sexy women on the patio. (Rennlist post)Porsche as a socio-economic status marker was seldom expressed directly, and often expressly denied: I’d like people to see me in my Porsches and think ‘there goes a person who really appreciates his sports cars,’ not ‘there goes another yuppie with more money than brains. ’ (Rennlist post) Initial Response of Porsche Enthusiasts to the Prospect of the Cayenne Launch op yo Hostility to the launch of the SUV was intense. A scan of Rennlist showed conversations about the Cayenne reaching a fever pitch as the launch approached.Exhibit 7 shows the number and valence of posts over time. In the New York Times, the founder of Porsche Pete’s Boxster Board (another Porsche online brand comm unity), claimed â€Å"No other Porsche – past, present, or future – comes close to generating the kind of [on-line conversation] response that the Cayenne has. †24 Some posts suggested that a source of pride was about to become a source of shame. It makes me embarrassed of owning a Porsche†¦kinda like that relative you don’t want to admit sharing the same bloodline.Ugh! (Rennlist post) I am actually ashamed of Porsche stopping to be a pure sports car company†¦A SUV (SlowUgly-Vehicle)!! The ANTI-SPORT CAR, a heavy, slow, clumsy, and roll-over happy SUV will share the same emblem on its hood than our sportscars. Sad times for Porsche. (Rennlist post) tC Some Porsche owners posted that they were leaving the brand for rivals Ferrari, Aston Martin, or Maserati, after claiming that Porsche had â€Å"sold out. † Others collectively mourned the loss of the brand they knew and loved.As key design, engineering, manufacturing, and marketing decision s were released by Porsche, consumers used Rennlist as a place to vent displeasure. There just aint nothing Porsche in a SUV. (Rennlist post) No I have been exposed to Porsches since the age of 10. I have seen all the models come and go, but the Cayenne is the first non-sports car to come up and I really don’t like this direction at all. Porsche has always been synonymous with ‘sports car’ and now somebody can say ‘I have a Porsche†¦Ã¢â‚¬â„¢ and mean a Cayenne! I could not imagine a Ferrari SUV for example! (Rennlist post)Do Just as they had done with earlier models, enthusiasts criticized design and engineering attributes of the SUV. The Cayenne’s front-mounted, water-cooled engine offended â€Å"real Porsche† purists. Early photographs of the Cayenne were met with ridicule in the online community, and sparked many conversations about how ugly the Cayenne was and how it resembled the Hyundai Santa Fe. Some argued that the Cayenne’ s design was feminine and lacked the manly stance of competitors like the Hummer and the Jeep. Porsche enthusiasts were also dismayed that the Cayenne included unnecessary† amenities such as cupholders and a tiptronic automatic transmission, which suggested that the Cayenne was designed for drivers who valued luxury over driving performance. These features confirmed that the Cayenne was not designed as a driver’s car, but rather, that it was designed to appeal to what Porsche owners called â€Å"suburban, yuppie, soccer moms. † In online conversations, Porsche owners repeatedly called the Cayenne a car for â€Å"poseurs,† people who did not understand the history, 6 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013.Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 511-068 rP os t Porsche: The Cayenne Launch heritage, and performance of a Porsche, but who bought the brand merely for its status or imageappeal. 20 years ago, when you said you had a Porsche, people looked at you with envy. 10 years ago, when you said you had a Porsche, people looked at you with envy. Today, when you say you have a Porsche, people will reply: oh, those trucks? I got one of those too. (Rennlist post) I just felt really sad.Now ‘soccer moms’ can drive their kids around in a Porsche. Pretty sad. Look at the level that Porsche has been brought down to. BIG MISTAKE (Rennlist post) op yo And the people who will use it!!! Suzy-Housewife, as well as Dorky Dick who’s been beaten up through high school finally bought his first – ahem, PORSCHE got the A-OK from the wife – ‘so long it’s practical dear’!!!!!!!! (Rennlist post) The Cayenne will be bought as a car for the poser wife to take the kids to school, the only time it will go off road will be when it goes up on the curb.Come on how many real rear engined Porsche e nthusiasts will buy one. (Rennlist post) Product Development and Manufacturing Criticism No tC Porsche’s product development and manufacturing decisions figured prominently in the â€Å"real Porsche† debate and became fodder for arguments against the Cayenne. By spring 1998, Porsche was negotiating with Volkswagen to jointly develop and manufacture SUVs. Under the proposed arrangement, Porsche would undertake the research and development of the SUV and Volkswagen would invest about $657 million in the project. 5 The new SUVs would share close to 65% of their parts and modules—the same chassis and some technologies—but showcase different exterior styling, engines, and chassis tuning. Porsche would develop the two models as well as the common platform. VW would be responsible for major aspects of production, with final Cayenne assembly to be conducted by Porsche. 26 Partnering with VW was â€Å"an ingenious coup,† an observer noted: â€Å"Half of Po rsche’s profits come from the Cayenne. That model was developed in collaboration with VW and was built in VW plants. The car is 90 percent VW and 10 percent Porsche. 27 Skeptics worried about paying Porsche prices for a VW, but were assured that the R&D of the new model was purely Porsche’s domain, while its partner would oversee only the production of some major components, excluding the engine. 28 But as one financial analyst opined, the Cayenne would â€Å"push Porsche’s brand credibility to the absolute limit. †29 Porsche’s partnership with Volkswagen caused consternation among Porsche enthusiasts. Earlier Porsche cars produced with Volkswagen, such as the 914 and 924, had been criticized by enthusiasts as â€Å"faux† Porsche vehicles. Many claimed that the Cayenne was a â€Å"Porsche-ized VW† built with too muchVolkswagen content. When Porsche launched a V6 model of the Cayenne which contained a Volkswagen engine, instead of the Porsche engines featured in the V8 and Turbo models initially launched, Porsche consumers cried heresy. When some independent testers chose the Volkswagen Touareg over the Porsche Cayenne in performance tests, consumers cemented their skepticism and claimed that, suddenly, â€Å"there was a substitute† for a Porsche, and it was a Volkswagen Touareg. Do Porsche and VW do not seem to be in bed on this project, they are in bed on this project. They are both exactly the same basic vehicle.VW gave Porsche the chassis and said go and design a SUV if you want to be our partner on this†¦So the VW Toureg and Porsche Cayenne are both Porsche designed on a VW chassis and when they are pulled off the line to go up to Leipzig you will not be able to tell the difference. Only when the Cayenne leaves Leipzig will it look any different. When it has been Porscherised with engine and cosmetics. (Rennlist post) 7 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY unti l August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Porsche: The Cayenne Launch P os t 511-068 Sorry, the Cayenne is a Porsche†¦ While some of the design is shared with VW and some components built @ VW factories, Quality Control was still supervised by Porsche†¦ A good analogy to your argument would be having Emeril Lagasse prepare you a dish at his restaurant and then prepare the same dish at your home. Still the same dish, just produced elsewhere†¦ (Rennlist post) Enthusiasts were distressed to find that the Cayenne had a Japanese transmission. They saw this as a further decline in build quality that came when Porsche switched to Japanese manufacturing processes and away from its handcrafted heritage.In their online conversations, enthusiasts yearned for the days when their Porsche cars were Porsche designed, constructed from German-made parts, and manually assembled in Germany by racing engineers. op yo I was reading in Panorama last night that the Cayenne has a 6 speed tip tranny which is produced in Japan. Is this true? Seems like Porsche is just outsourcing as much as possible to keep profits high. Both my cars have Japanese parts (A/C), but nothing so substantial as a transmission. What's next, engines from the Far East? I'm less and less impressed every day I read more. Rennlist post) IMHO a German car with German Ing should have German parts, especially for something as major as the tranny. Isn't that part of the identity of the brand? oops.. forgot, Porsche doesn't value the brand identity that was built over the last 50 years anymore. The old professor [Ferry Porsche] dies and look what happens†¦ an SUV. (Rennlist post) No tC Personally the thought of purchasing a Porsche with some of its major components outsourced to the Far East is analogous to buying what you think is a fine Swiss time piece that turns out to have a cheap(er) Japanese movement inside.To me t hat would be unacceptable. Yes, both work, and work well, but the reason you bought the Swiss one in the first place was to get the hand crafted Swiss quality and workmanship that dates back hundreds of years†¦I certainly hope this will not be the future for Porsche cars. Those who know the real definition of build quality know exactly what I am talking about. Most Japanese stuff isn't even worth rebuilding, because it is designed to be replaced when it is done. The old German design and build philosophy was much different than the modern Japanese design (if there is such a thing) and build philosophy.Porsche cars used to be about hand crafted high quality performance, but all that seems to have gone out the window these days just to make more profits. (Rennlist post) Wiedeking defended his design and manufacturing decisions, claiming that Porsche focused on its core competencies: engine manufacturing, R;D, body shell work, assembly, quality control, and â€Å"highly professio nal† distribution, while relying on â€Å"extended work benches† at Valmet, VW, and its network of suppliers. It reduced its in-house production depth to one of the lowest in the industry, shared some components with VW such as electronics, and split R;D costs with VW. 0 Do Finally, Porsche’s decision to build the Cayenne in Leipzig, in the former East Germany, put into question whether the Cayenne could be a â€Å"real Porsche. † Rennlist members who visited the Leipzig plant brought back bad news. The Leipzig plant was little more than a final assembler, with most of the assembly work being done by automated machines. To enthusiasts, the Cayenne’s assembly in Leipzig put into question its â€Å"Made in Germany† moniker. Leipzig did not carry the German manufacturing heritage of Zuffenhausen; its location in East Germany was associated with the Communist era.Nice try, but aren't our Cs actually built out in some Skoda plant in Eastern Europe and then final assembled in Leipzig? This may explain some of the initial build quality problems. 8 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 511-068 rP os t Porsche: The Cayenne Launch I've read that the Eastern European manufacturing workforce has some of the attitudinal and work ethic habits of 1970s era Detroit car builders. God forbid. (Rennlist post)Here is a firsthand report of someone who visited the Leipzig factory on March 19, 2004: What amazed me most was how small it was. They really were just integrators and assemblers there. Much of the car (the upper shell and interior) comes in from Bratislava, and the power plant from Zuffenhausen. The tranny from Asia and it is all put together and â€Å"married† with 18 BOLTS! That’s it! Funny. After it is put together, they test drive EACH ONE on the track. I fou nd that to be very interesting quality control, and also a testament to the difference between a VW and a Porsche. Clearly, the Cayenne is not built in Leipzig.Leipzig is where the final assembly and final QC are done. I'm sure that the quality control of Porsche is much better than that of VW. But it is not a car manufacturing plant. (Rennlist post) op yo Having toured the factory in Leipzig two weeks ago, I can assure you that the Cayenne final assembly is mostly by machine, NOT by hand. The level of automation is amazing. It takes 170 production workers per day to produce 130 Cayennes per day. It takes 80 production workers per day to produce 2 Carrera GT's per day! (Rennlist post) And on their website they are boasting about how it's Made in Germany and what that means.Maybe the thing should say kinda-put-together in Germany. (Rennlist post) tC Wiedeking defended his decision to assemble in East Germany: â€Å"The Leipzig location brings our firm advantages, otherwise we would have never built the plant there. But we also create jobs in an economically weak region. †31 However, a Porsche spokesperson confirmed the importance of manufacturing location to Porsche enthusiasts, â€Å"[Location] is not an uncritical issue. People think that as a car comes off the line at Zuffenhausen, Ferdinand Porsche comes by and caresses the car with his hand, and that makes it an official Porsche.Of course, Ferdinand Porsche hasn’t been doing that for some time. †32 Hostility Toward Cayenne Buyers In December 2002, European dealers began to sell the Cayenne, and in March 2003 it was on sale in the United States. Postings by some Porsche owners took on a threatening tone. Try owning a Cayenne and see how you’re treated by other Porsche owners. (Rennlist post) No Oh and just so you guys know†¦you are the laughing stock of all other Porsche owners. (Rennlist post) One thing is for sure: the SUV is NOT my brother! I always accepted the other mod els in the family – the 928s, 924s, Boxsters, etc.They were all sports cars. But the SUV: never! (Rennlist post) Others echoed the earlier concern that the new car would shame them. Do People will buy these Porsche S. U. V. ’s because they’re a fad, and they’ll embarrass the real Porsche crowd. They’re not going to know how to drive and they’ll do stupid things. It’s scary to think about. (Rennlist post) There was a wish to purify the community by exclusion or ostracism. On the road, Porsche owners refused to extend their fraternal greeting to Cayenne owners, limiting it to sports car owners only.They tried to block Cayenne owners from joining local Porsche clubs and refused to allow them to race alongside sports cars in club-sponsored racing event. 9 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Porsche: The Cayenne Launch rP os t 511-068 So how about the Cayenne? Seems kinda funny flashing lights at an SUV even if it has a Porsche badge†¦Don’t think I can†¦ (Rennlist post) I’m with you guys on the Cayennes. I don’t wave to drivers of re-badged VW Touregs either. Rennlist post) Please don’t flash your lights or honk your horns at me. You will only see my longest finger back at you. (Rennlist post) My point it that all SUV owners should take their toys and play in their playground. NOT in mine. Find other SUV’s go to the track and have fun together. (Rennlist post) op yo There’s still one problem: A Cayenne, driven by the owner of other Porsche cars may be able to perform miracles that would embarrass all competitors in an autocross situation but the scary thought is that PCNA [Porsche Cars North America] are betting that many Cayenne owners will not be previous Porsche drivers.Having these people who could be un accustomed to a vehicle of such power, may very well overstep their abilities in trying to keep up (or prove themselves) to the rest of us and cause some real damage. Yes, I’m biased against the Cayenne. Yes, I think the whole idea of a Porsche SUV is a mistake. (Rennlist post) The newcomers would not understand the values of the community they sought to join. They have little of no feeling of belonging, no understanding of the lineage of Porsches and where their cars were derived from. They don’t care about that, most are probably just poseurs. Rennlist post) tC It’ll be piloted by folks who woulda bought the Mercedes Benz/Range Rover if there weren’t five of them in the subdivision already, who wouldn’t consider a Lexus because it’s ‘jap crap’ and who think BMW/VW is beneath them. They’re not enthusiasts, they’re consumers. They won’t know or care that old time P-snobs will shun them. (Rennlist post) Cayen ne Buyers Respond Some Cayenne buyers sought to broaden the Porsche community to include themselves as members of good standing, or at least to appeal to the better natures of the old guard.No This sense of kinship is getting lost due to lines being drawn between one group to another. (Rennlist post) I thought being a Porsche owner was like joining some sort of fraternity of something†¦ but it’s more like [Boxster, Cayenne] owners are the red-headed step child of some dysfunctional Porsche family. Did all entry level Porsche owner’s get this much crap when they bought their new Porsches? (Rennlist post) Do So am I to understand that you are allowed to rail against and hurl invective and others are not? Look. You like your car, I like mine.I’m not going to bash yours, and I go out of my way to salute yours. Why do you continue to bash my choices? (Rennlist post) Please start being nicer to each other. This is not the correct time to start having a go at each others throats. (Rennlist post from a site moderator) Sadly, the ranks of Porsche owners seems to be populated by those into model specific devisiveness and comparison pissing matches. Where once a camaraderie of enthusiasm existed, now lies a state of SUV owners looking for the next status symbol and those remaining 10This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 511-068 rP os t Porsche: The Cayenne Launch few who love the maker of their dream cars fight with one another over which model is best and how effeminate or inadequate another model is compared to theirs. (Rennlist post) Spillover into the Offline World While the â€Å"real Porsche† debates raged on Rennlist, Porsche enthusiasts began to take their criticisms into the offline world.Consumer-generated-advertising spoofing the Cayenne made its way around the Internet ( see www. flickr. com/photos/alecmcint/447172 for a sample). Consumers circulated bumper stickers, license plate frames, and t-shirts for the Cayenne with slogans like â€Å"My other car is a REAL Porsche. † Cayenne’s advertising featuring headlines such as â€Å"Only one sport utility vehicle has bloodlines like these† and â€Å"Another twisted branch on the family tree† set off online rants. An article in Internet magazine Autoextremist captured the mood: op yoPorsche’s advertising campaign for the new Porsche Cayenne is the latest attempt to link its ungainly SUV to its greatest sports car and traditions, and in doing so it achieves a new low for the once-bulletproof brand by at once dismissing its own legacy and insulting the intelligence of every auto enthusiast—Porsche, or otherwise—in the process†¦A stretch that only delusional Porsche marketers could possibly attempt—and a flat-out insult to every great Porsche spor ts car that has come before it†¦To link it [the Cayenne] in any way to some of motordom’s most historic and legendary machines is an outrage. 3 tC What was said and done on Rennlist traveled beyond the online community. Compelling posts were often copied and pasted to other online communities and to personal and professional blogs. Press reporters used online brand communities like Rennlist to find consumers who were willing to talk about the brand in the press. Porsche owners quoted in news stories about the launch were longstanding, active online brand community members. The mainstream press began to reflect the online zeitgeist of the Porsche enthusiasts.Autoextremist warned that â€Å"[The SUV] threatens to destroy the very soul of the company,†34 while the Los Angeles Times announced that â€Å"Snowballs are rolling uphill in Hades. Porsche—shudder—will build an SUV. † 35 Porsche probably has the purest DNA of any sportscar maker. I donâ €™t care how good an allwheel-drive wagon is, it’s not a sportscar. If you add a car that does not fit with your brand’s image, you must reduce the power of that image. (Porsche consumer quoted in Herald-Sun)36 No Everything about the Cayenne is completely the opposite of what Porsche is and does.It will be the death of a tradition. (Porsche consumer quoted in the New York Times)37 It’s blasphemy†¦I’m not hot on the idea at all. I’ve lived with Porsches all my life and the marquee has always been Porsche sports cars. To bring out an SUV doesn’t sit well with me. (Porsche consumer quoted in the Los Angeles Times)38 Any truck made by Porsche deserves to be a failure. It’s a disgrace to the Porsche name. (Porsche consumer quoted in Autoweek)39 Do Cayenne Owners Become Assertive Cayenne owners began to speak in support of their vehicles.They deflected soccer mom, yuppie, and poseur stereotypes, claiming to be fellow Porsche enthu siasts. They told stories about how they would take their SUVs off-road, or use them to tow their Porsche race cars or boats, or to access adventure sports like skiing, hiking, hunting, and fishing. They bragged about the performance of their Cayennes and wrote of beating other sports cars, including the Porsche Boxster, off of the line at traffic lights. They described positive reactions they received from others. They referred to their 11This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Porsche: The Cayenne Launch rP os t 511-068 SUVs as â€Å"sports cars† and circulated a revisionist history of Porsche in which the Cayenne is a logical descendant of Porsche classics. They reminded readers that Ferry Porsche was the driving force behind the Cayenne: By now, I gotta say the C [Cayenne] is a winner. It’s not really even an S UV in the traditional sense.It’s primary focus, like all porsches is performance, and with a straight face, I can tell you it’s pretty much a sports car with some suv traits. (Rennlist post) op yo You may not need a vehicle that can carry kids, go to the snow, haul a few things and is fun to drive, but that doesn’t mean no one does. The Cayenne may not match the 996 (almost nothing else does) but if it outhandles and outbrakes 90% of the vehicles out there, has great power, is fun to drive, offeres good utility, and has room for more of your stuff (including the dog) if that is required, why on earth wouldn’t you want one if you were ooking for that type of vehicle. Why wouldn’t ANYONE want one who can afford the price of admission? (Rennlist post) The Sports Car Owners Respond Not all sports car owners were hostile to the Cayenne. Indeed 18% of the first wave of buyers owned Porsche sports cars. As time passed, postings began to appear on Rennlist embracing the Cayenne. The posters noted that, unlike many SUVs built for the road, it handled like a sports car with sports car acceleration and nimbleness, yet had the ability to perform like a true off-roader and had impressive towing capacity. C All this over an SUV :rolleyes: And all this talk about how the newer porsches aren’t true to their sportscar heritage, seems to me all new cars are going this way, in the end a car company has to worry about selling new cars a lot more than selling old cars and new car buyers for the most part want all those luxuries†¦If Porsche thinks it needs a SUV to remain strong in the marketplace let them build it. Mercedes has an SUV for chrissakes are they any less of a luxury car company because of it? (Rennlist post) NoIf you’re really a Porsche enthusiast, you recognize that they’re first and foremost the world’s best automotive engineering firm, and the Cayenne looks to be more proof of that. Conceptually, I don’t see it as being that far away from the 928. I can’t imagine a reason in the world why anybody would care that it has four doors. (Rennlist post) Pity you feel that way. Do you wave to 914 owners? How about 924 owners? Who decides which Porsche are worthy and which are not? I know plenty of enthusiasts that have Cayennes as second vehicles. While the Cayenne is not my cup of tea I've driven a few and they are pretty impressive for an SUV.Do you really want to be one of those drivers that wave to some Porsche's and not others? No flame intended†¦Ã¢â‚¬ ¦ just something to consider. After all there are some out there that don't think a 986 or a 928 are real Porsche's either! (Rennlist post) Do I have to say that negative opinions (regarding what is and is not a real Porsche) DO, in fact, piss me off. Who the hell is ANYONE, other than Porsche, to say what is and is not? I, personally, would NEVER buy a 924. I don't like them. I don't like how they look. I think they are underpowered and somewhat boring. Is it a real Porsche? Of course it is!!!! You know why?Because PORSCHE built it and SAYS it is!!! Some shmuck who owns a 911 decides that a 944 isn't real. Show me how he is qualified to make that assesment. Does it have a Porsche badge placed there, at the factory, by PORSCHE Then it is!!!!! (Rennlist post) 12 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 511-068 rP os t Porsche: The Cayenne Launch However, the majority of the community continued to attack the Cayenne, relegating it to the bottom rung of the group’s status hierarchy.Feeling the pressure, Cayenne owners posted their feelings. So SICK OF THIS, like the Cayenne, and plan to buy one. I come to this forum to get updated info, whats new. What I find is the same people making post after post of the same thing, Its ugly, I d on’t like the name, why isn’t Porsche racing Bla Bla Bla. Do these same people go to the 914 forum and tell them their cars have VW motors, or the 924 forum and harp about Audi truck motors? (Rennlist post) op yo I have the V8 Porsche [Cayenne] and guess I get a little defensive when people call it a VW and I paid close to 69K for a quote un-quote VW.I know deep down in my heart that I have a Porsche (Rennlist post) †¦well, maybe the ‘bashing’ was mild this time†¦but its being going on day in day out for the past year†¦Yeah, I shouldn’t let it bother me†¦but after a while anything starts to wear thin†¦trust me. (Rennlist post) Any of you guy’s ever hear the expression ‘if you don’t have anything good to say don’t say it. ’ Almost every time someone is excited about purchasing this vehicle some of you guys have to post something negative. Please next time post what you drive so I can use ever y opportunity to tell you what junk you drive. Rennlist post) Looking Ahead No tC Porsche’s senior management shrugged off the negative buzz from consumers. Despite the withering criticism from consumers, shareholders, and the press, Wiedeking claimed he was not concerned, though he admitted that the decision to build the Cayenne â€Å"was certainly not selfevident. † He said that Porsche was â€Å"richly scolded† for moving away from its â€Å"brand core† so it knew that it had to be a success. Wiedeking argued that launching the Cayenne took the same courage that Porsche’s founder had demonstrated when he founded Porsche in 1931 during the Great Depression. 0 Schwab, Porsche’s North American President, labeled consumers’ response naive, â€Å"Those in the Porsche Clubs of America will castigate us for the SUV decision, but they just don’t know business. For them to keep having their beloved 911s, we have to find a niche else where. That is modern business. †41 Do Wiedeking and Schwab were already looking ahead to their next big launch, the Porsche Panamera, the company’s first ever four-door sedan. Envisioned as a rival to Maserati, BMW, Audi, and Jaguar sedans, Panamera would further diversify Porsche’s product portfolio and customer base. The Panamera is a perfect fit for Porsche,† Wiedeking professed, â€Å"It has all the typical DNA characteristics of a genuine sports car. In terms of performance, design, and driving dynamics, it meets Porsche’s high standards in every respect. †42 13 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Porsche: The Cayenne Launch Exhibit 1 Porsche Milestones rP os t 511-068 Ferdinand Porsche born Sept. 3 in Maffersdorf, Austria-Hungary. 1909 Ferdinand Anton Ernst (â€Å"Ferryâ€Å") Porsche born Sept. 9, in Wiener Neustadt, Austria. 1950 Porsche begins 356 production in Stuttgart-Zuffenhausen. 1951 The senior Ferdinand Porsche dies at age 70. 1953 Porsche introduces the 550, its first racing-specific car, which meets immediate success. 1964 Porsche introduces the 911. The company had produced 78,000 Type 356s in 14 years. 1972 Porsche KG becomes a joint stock company (AG). Ferry Porsche, chairman of the supervisory board, precludes all family members, including himself, from direct management roles. 1978 Launch of the front-engined 928 touring car. 1982 Launch of the 944 sports car. 1984A third of Porsche AG’s capital is offered to the public in the form of nonvoting preference shares on April 25. On Sept. 19, his 75th birthday, Porsche receives the honorary title of â€Å"Professor. † 1990 Butzi Porsche (Ferdinand A. ) succeeds Ferry Porsche as chairman of Porsche AG’s supervisory board. Butzi began his own firm, Porsche Design, in 1972. 1992 Wendelin Wiedeking becomes CEO of Porsche. 1996 Launch of the Boxster two-seater sports car. 1997 Porsche introduces its all-new, water-cooled 911 (the 996) at the Frankfurt Motor Show. 1998 The company prepares to celebrate 50 years of building sports cars with the Porsche name.Ferry Porsche, honorary president of the Porsche AG supervisory board since 1990, dies March 27 at the age of 88. 2001 Porsche releases its plans to build an SUV. 2002 European launch of the Cayenne in December. 2003 U. S. launch of the Cayenne in March. No tC op yo 1875 Do Source: â€Å"Porsche Timeline,† AutoWeek, April 6, 1998, and casewriters. 14 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Exhibit 2 511-068 Porsche Relative Stock Price Performance 600 500 rP s t Porsche: The Cayenne Launch January 1998 US$168 300 200 100 January 1997 US$87 Ja nM 90 ay -9 Se 0 p9 Ja 0 nM 91 ay -9 Se 1 p9 Ja 1 nM 92 ay Se 9 2 p9 Ja 2 nM 93 ay Se 9 3 p9 Ja 3 nM 94 ay Se 9 4 p9 Ja 4 n9 M5 ay -9 Se 5 p9 Ja 5 nM 96 ay -9 Se 6 p9 Ja 6 nM 97 ay -9 Se 7 p9 Ja 7 n98 0 op yo 400 DAX 30 tC PORSCHE DATASTREAM GERMAN AUTOMOBILE INDEX Do No Source: Thomson Financial Datastream, accessed February 13, 1998. 15 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 83. 7860. Porsche: The Cayenne Launch Exhibit 3 Porsche Group Highlights 1995–2002 rP os t 511-068 1995–1996 1996–1997 1997–1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 â‚ ¬ million â‚ ¬ million â‚ ¬ million 1,437. 7 527. 7 910. 0 2,093. 3 671. 9 1,421. 4 2,519. 4 735. 5 1,783. 9 3,161. 30 955. 6 2,205. 70 3,647. 70 893. 2 2,754. 50 4,441. 50 1,001. 30 3,440. 20 4,857. 30 1,121. 00 3,736. 30 5,582. 00 1,482. 50 4,099. 50 Vehicle Sales Domestic Porsche Export Porsche Other Models Vehicle Sales Porsche 911 928 944/968 Boxster Cayenne Units Units Units Units Units Units Units Units Units Units 19,262 ,873 13,346 43 19,219 19,096 104 — 19 — 32,383 9,670 22,713 — 32,383 16,507 — — 15,876 — 36,686 9,174 27,512 — 36,686 17,869 — — 18,817 — 43,982 10,607 33,375 — 43,982 23,090 — — 20,892 — 48,797 11,754 37,043 54,586 12,401 42,185 54,234 12,825 41,409 66,803 13,896 52,907 48,797 23,050 54,586 26,721 54,234 32,337 66,803 27,789 25,747 27,865 21,897 18,411 20,603 Production Porsche total 911 Carrera GT 928 944/968 Boxster Cayenne Other Models Units Units Units Units Units Units Units Units Units 20,242 20,242 20,132 — 28 — 82 — — 32,390 32,390 16,488 — — — 15,902 — — 38,007 38,007 19,120 — — — 18,887 — — 5,119 45, 119 23,056 — — — 22,063 — — 48,815 48,815 22,950 55,782 55,782 27,325 55,050 55,050 33,061 73,284 73,284 29,564 7 25,865 28,457 21,989 18,788 24,925 Employees Personnel expenses At year-end â‚ ¬ million 7,107 392. 1 7,959 464. 4 8,151 528. 2 8,712 574. 9 9,320 631. 3 9,752 709. 9 10,143 799. 4 10,699 849. 5 Balance Sheet Total Assets Shareholders’ Equity Fixed Assets Capital Expenditures Depreciation Extended Cash Flow Net income before taxes Net income after taxes Dividends â‚ ¬ million â‚ ¬ million â‚ ¬ million â‚ ¬ million â‚ ¬ million â‚ ¬ million â‚ ¬ million â‚ ¬ million â‚ ¬ million 951. 4 239. 1 482. 5 213. 6 67. 7 ,249. 7 298. 1 565. 3 234. 8 107. 6 27. 9 24. 6 1. 8 84. 5 71. 3 13. 0 1,490. 9 415. 8 579. 6 175. 8 157. 1 413. 1 165. 9 141. 6 21. 9 1,916. 10 587. 4 525. 6 155 183. 7 592. 5 357 190. 9 21. 9 2,205. 40 782 577. 7 243. 7 196. 6 506. 5 433. 8 210 26. 4 2,891. 60 1,053. 30 731. 8 293. 8 132. 7 764. 4 592. 4 270. 5 45 5,408. 70 1466. 80 2,207. 70 1,119. 50 278. 80 1,067. 30 828. 90 462. 00 297. 00 6,315 1,754. 50 2,663. 30 1,295. 20 392. 20 1,389. 60 933. 00 565. 00 59. 00 Do No tC op yo Sales Domestic Export Source: Casewriters, compiled from data listed in Porsche Annual Reports, 1995-2002, http://www. orsche-se. com/pho/en/ investorrelations/mandatorypublications/, accessed December 2005. Note: HGB and IFRS denote accounting standards. In 2003 Porsche adopted IFRS, or International Financial Reporting Standards. 16 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 511-068 rP os t Porsche: The Cayenne Launch Premium SUV Market Information (1996–1998 forecast) (in units) Exhibit 4 400,000 350,000 300,000 op yo 250,000 200,000 150,000 100,000 0,000 0 1996 tC Luxury 1997 Upper middle class 1998 Middle class Do No Source: C asewriters, compiled from data contained in IHS Global Insight Report, â€Å"World Light Truck Industry Forecast†, 1999. 17 This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. This document is authorized for use only by Uma Jaidev at VIT UNIVERSITY until August 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. – –

Good boy

Good boy, Beau. Stay, Anna Quindlen is very descriptive in her essay. As I read the story I could visualize her dog and also sympathize with her feelings. Having had lost a dog of old age, this story really hit home. The way she describes beau's milky white eyes, the loss of his hearing, and the way his walk looks like his back legs are prosthetics. With these descriptions, the knowledge that Beau's a black lab, and the fact that he stinks, all present enough information for me to get a clear picture the dog. The descriptions Anna uses are all the same symptoms my dog, a Chihuahua, had had at 17.Anna also painted a picture in clear detail of the senses the dog lost or was losing, but also pointed out Beau's uncanny sense of smell. â€Å"The eyes are gone, but the nose is eternal. † . There were many more details in the story, but I feel as though the ones I already pointed out were enough for me to get a clear picture. The way Anna organized her story seemed to me like it was in chronological order. Anna starts her story in the present time, sheds light on the past, and then comes back to the present again. As a new writer, I'm not sure if that exactly qualifies as chronological, but I hink it is.The point I believe Anna is trying to make is to live for the day, don't dwell on the past. Anna clearly says â€Å"to measure myself not in terms of the past or future but of the present. â€Å". This statement is one of the statements that lead me to my conclusion. The sensory details that stood out to me was the sense of smell and the loss of sight. There were two things Anna said about Beau's sense of smell that stood out to me. The first was when she talked about the dogs eyes and ears going but he can still get excited over the smell of a pork roast. The second was whenAnna talked about the smell of the Oriental rug and beau. Anna was not very descriptive about the odor, but I have firsthand knowledge of that smell, I could definitely smell the odor. The other sensory detail that stood out for me was the way Anna described Beau's bad eyes. Anna really described the effects of going blind well. She talked of Beau's eyes being a milky white. â€Å"His eyes seem to gaze mysteriously inward†. Anna also said â€Å"his eyes and ears are gone.

Reagan Revolution through President Obama Research Paper

Reagan Revolution through President Obama - Research Paper Example Regan’s deregulation movement saw privatization of transport and industrial sectors which benefit Americans to date. On current matters, the nation's decision to go to war with Afghanistan and Iraq after the 9/11 attacks was based on allegations by the Bush administration which did not receive support from the international community. Reagan Revolution through President Obama In his farewell speech, Ronald Regan talked of his experience as the United States president and how revolutionary those years were; hence the term Regan Revolution. His revolution has been on numerous debates with conservatives seeing him as a hero while liberals still complain about what he ruined and what he changed. Nonetheless, his legacy shaped and is still shaping American politics, culture, economics and diplomacy. All US presidents after Regan have looked up to his model of presidential leadership. During one of his democratic campaigns in Nevada in 2008, current president, Barrack Obama recogniz ed the achievements of the Regan revolution. This is a clear indication that Obama contemplated on following Regan’s footsteps in bringing change to America (Troy, 2004). This paper discusses how president Obama brought about the Regan revolution. ... Fourthly, giving examples, the paper explains how the deregulation movement of the Reagan era affects Americans today. Lastly, it discusses the reasons behind the nation's decision to go to war with Afghanistan and Iraq, after the 9/11 attacks, as well as the response from the international community. Discussion There were significant historical turning points that occurred during the Regan regime. One is the privatization of companies and groups to provide services previously offered by the government. This was advantageous in that it reduced the governments’ size and direct influence in society. This also reduced expenses and bureaucracy in these aspects since private firms provide services at lower operational costs and increased efficiency than government agencies. The other historic turning point was the rebuilding of the weak military. Rebuilding of the military provided security for its people and made US a reliable ally and a superpower that can neutralize the Soviet a ggression and expansion (Troy, 2004). The AIDS epidemic was detected in the US in 1981 (Troy, 2004). Politicians did not respond to it and further associated it with homosexuals who they felt could be ignored. In 1981 Center for Disease Control published the first official document of the disease, but the government chose to ignore it and offered no support to the public. Medical breakthroughs occurred between 1986 and 1987, but people were frustrated over the length of time it took to improve access. Even with the availability of the drugs they were still not affordable. Signing of the HIV/AIDS Treatment Extension Act of October 2009 brought an improvement in the quality and availability of care, especially to the

Critically evaluate the tests for certainty of objects in the law of Essay

Critically evaluate the tests for certainty of objects in the law of trusts and assess whether developments in the last half century have had a positive or negative impact on the law - Essay Example The assessment of certainty of objects is complex because the test varies between mere powers, fixed trusts and discretionary trusts. The reason for identifying the objects of trust is to ensure that there is a person who can enforce trust against the trustee. Additionally, there must be someone who can bring an action in court in case the responsibilities of the trustee are not achieved. The trust must also have the ability of being executed in that when there is no human persons to benefit from the trust then the concept of trust becomes pointless2. Therefore, when a beneficiary is explicitly named in the trust deed there is no confusion when it comes to the certainty of objects. In cases where a person is not explicitly named in the trust deed, but the trust document provides a description of an individual that should profit from the trust property. Additionally, in case the description is clear and precise that it is a particular person then this prerequisite is satisfied. In a certainty of objects where the trust is made for a set of people for example, ‘my children’ this clause will succeed where it has been established that there is adequate certainty to identify each member of the group/class of people3. When a group of people are not clearly described, defined, or stated in vague terms their meaning can be interpreted using the conceptual uncertainty. Two tests that have been created to establish whether all persons within the group can be clearly recognized. They include the class ascertainability test, which comes into play where trustees make a complete list of each individual that comes within the class of people to benefit from trust. Although the courts do not need to know the entire class in order to decide whether the trustees are selecting within the group, in case the trustees do not do so then it must be said that the trustees are not exercising their duties in case they have

Law To Eliminate Poverty Essay Example | Topics and Well Written Essays - 3000 words

Law To Eliminate Poverty - Essay Example The measures adopted by the governmental and the social welfare organizational level to improve the quality of life of the poor people and the downtrodden in fact amounts to serve towards poverty reduction. In the Christianity where nun volunteers herself to poverty to satisfy her religious belief, cannot be considered as circumstantial poverty (Kerbo, 2006). At this time and age, continued economic development is constrained by lack of economic liberty. Economic liberalization should have the property rights of the poor and the needy. Financial services are accessible to them by way of technology such as mobile banking (Kenworthy, 1999). Inefficient and corrupt institutions are the major contributors to discourage investment and to frustrate the economy of a country. Foreign aid, NGOs, public and private sectors can be instrumental in uplifting health, education and poverty reduction (Kerbo, 2006). To improve the living standard of masses that are living below the poverty line, it i s necessary to curb this menace. Green Revolution is the best example of it. Some of the donation givers bind donation receivers to buy their expensive products from their countries, which sometimes frustrate the efforts to meet the poverty reduction target (Barr, 2004). Poverty Law The poverty law definition is "the legal statutes, regulations, and cases concerning day-to-day life of economically suppressed class" (Lehman, 1992). The mentioned law somehow or the other deals with the legal issues and social justice i.e. public benefits law, health care law, housing law, education law, elder law, family law, juvenile law, employment law, welfare law, and Social Security law. In the broader term, it includes consumer law, immigration law, insurance law, domestic violence, childcare, electoral reforms, political science, economics, sociology, social policy, social work, and financial literacy of low-income people (Lehman, 1992). Poverty Elimination Act of Canada Poverty alleviation bil l C-545, passed by the House of Commons of Canada, directs the federal government to develop poverty elimination strategy by creating independent poverty commissioner to effectively monitor the progress of the strategy evolved to eradicate poverty. The mentioned incumbent shall provide guidance to the National Council of Poverty and Social Inclusion to address the poverty-related issues (Pasma, 2010). The poverty elimination strategy should be based on three major segments: income, housing, and social justice. The bill stressed upon the need of gender analysis, certain urban and rural responses, and a vital human rights framework. The poverty elimination strategy is the most effective tool in eliminating poverty from Canada (Pasma, 2010). There is a dire need to address this issue immediately since demonstration is on the rise against poverty and income insecurity due to the current recession. Further, this number has been soaring if one takes into account the last year analysis acc ording to which around 900,000 people are badly suffered at the hands of the recession (Pasma, 2010).

Juvenile crime issues in the criminal justice system Essay

Juvenile crime issues in the criminal justice system - Essay Example The explanation of delinquency and state offences, i.e. of two terms that are quite common in juvenile justice, would help to understand that the differences between the adult court and the juvenile courts are more than estimated. Also, the review of the variables related to juvenile crimes would help to realize that juvenile court serves an important social need: the need for fighting crime in its initial appearance, i.e. among teenagers. From this point of view, juvenile court should keep its independence towards the adult court. One of the key differences between the juvenile court and the adult court is that the former does not allow to the offender to appeal, at least when the case has reached the level of the final order (Siegel & Welsh 2010, p.354). Neubauer & Fradella (2010) focus on another characteristic of juvenile court, as differentiated from the adult court: in juvenile court ‘most of the proceedings are informal’ (Neubauer & Fradella 2010, p.521), a practice that would not be accepted in the adult court. Furthermore, in the juvenile court proceedings are not published, as in the case of the adult court, aiming to protect the personal life of the offender, who is young and should not be stigmatized for the rest of his life (Neubauer & Fradella 2010, p.521). In addition, in juvenile court the option of jury is not available; indeed, it is prohibited to juvenile courts to use jury trials (Neubauer & Fradella 2010, p.521). This practice has been possibly introduced for protecting the pe rsonal life of young offender. On the other hand, Del Carmen & Trulson (2005) note that the differences between the juvenile and the adult courts are gradually decreased; it is suggested that in the future an integrated system should be used, for both the adult and the juvenile offenders, so that their treatment, in terms of the hearing and the evaluation of their case, is fairer. In order to understand the

100% Maritime Container Cargo Scanning Essay Example | Topics and Well Written Essays - 3500 words

100% Maritime Container Cargo Scanning - Essay Example Ports of entry were not left behind. Policies were formulated that ensured that any passenger or cargo that is getting into the American soil has to be thoroughly screened before release. To this end, congress introduced legislations that called for the screening of all cargo that is bound for American ports. Customs and Border Protection (hereby referred to as CBP) was mandated to introduce measures that will ensure that any shipment likely to conceal weapons will be screened before been loaded to a ship bound for any American port. Thus, the screening was to be done at the port of origin. This was enshrined in the American statutes on August 3rd, 2007. The then American president, George W. Bush, was the one that signed it. This paper is going to discuss the 100% Maritime Container Cargo Screening issue. Covered will be the background of this issue, the benefits of this procedure and mot importantly, the challenges that are facing this procedure. The writer will try to provide possible solutions to the challenges that will be identified. After the 9/11 debacle, a commission was set up by president Bush to look into the that attack and come up with recommendations that will ensure that such an attack never happens again in American soil. The commission came up with a raft of recommendations, as their terms of reference called for. These recommendations were signed into law by the head of state on August 3rd, 2007 (Mainbrace 1). The act of these recommendations came to be referred to as â€Å"Implementing Recommendations of the 9/11 Commission Act† (Mainbrace 1). It was also referred to as the â€Å"9/11 Commission Act† (Mainbrace 1). The act provided that 100% of cargo bound for American ports have to be scanned (Mainbrace 1). This was just one of the recommendations of the commission as far as American security is concerned. The deadline for full compliance with this law was stipulated to be July of 2012 (Mainbrace 1). Thus, it is expected that

Concert report Assignment Example | Topics and Well Written Essays - 750 words

Concert report - Assignment Example Truly speaking, I was not aware that we were not required to take notes. I was really surprised to learn that some of my colleagues were aware of the fact that they were not required to take notes. Still, I must say that the provision of not taking the notes really heightened my capacity to appreciate and enjoy the concert. Since I did not take notes, I was in a better position to get lost in the compositions being played and to enjoy the music played with all of my senses focused on it. Had I been busy taking notes, I would have approached the concert with a mainly theoretical perspective and my responses to the music would have been measured, planned and I must say a little bit plastic. The conversation I had with my colleagues before the concert tilted more towards the technicalities of music. However, once we started listening to the concert, many of my colleagues did acknowledge that it was an amazing experience. Some of my colleagues were really moved by the pieces being played . At a personal level I could qualify my overall experience to be moving, stimulating and encouraging. I was really lucky to get exposure to such a high quality musical experience. It not only enhanced my capacity to appreciate music, but also further stimulated me to learn more about Western music and to attend more such concerts in the future. It was an experience that touched my soul and calmed my senses and mind. Though all the pieces played in the concert were great and marvelous, yet, the piece that really grabbed my attention and emotions was Old Hungarian Dances. This is because this piece had a unique appeal to it. If on the one side the actual rendering of this piece was really sophisticated and professional, on the other side it had a rustic tilt to it that gave way to a sense of joy and elation in me. I must say that I would like to

English Formal Report Essay Example | Topics and Well Written Essays - 1750 words

English Formal Report - Essay Example Secondly, all the information regarding requirements, characteristics for successful promotion, pluses and minuses of future work must be collected and analyzed thoroughly. Thirdly, reasonable comparison of the first two factors and making logical conclusions is the step toward future career (Brown, 2002). It is proved that when people make conscious choice of their profession rather than catch the first option they are much more satisfied with their lives later. Getting all possible information about perspective occupation thus is especially important step. Among numerous possible professions I dwelled on the careers of psychologist and human resources manager as perspective, interesting, and potentially profitable occupations. Both professions presuppose close interaction with people and constant communication. Receiving basic education in one of the spheres is also a compulsory condition of starting a career. Studying psychology professionally presupposes wide range of professions according to a degree received. This science specializes in human behavior and brain work connection research. It also aims to distinguish correlation between social environment and human behavior (APA Guide, 1995). It is important that this sphere is abundant with employment opportunities. In the most recent research regarding growth probability for different occupations the occupation of psychologist was on the 6th place in the rating. This is a clear evidence of favorable conditions of career development. It was estimated that around 93% of all graduates in psychology were employed or accepted to graduate programs. This occupation usually has options in clinical /counseling psychology, concentration on scientific studies, and applied psychology. Those professionals, who choose scientific direction conduct experiments, do teaching in colleges or consult patients. Clinical

Analysis of The Age of Innocence by Edith Wharton

Analysis of The Age of Innocence by Edith Wharton Context By the time the bloody chaos of the First World War finally came to an end on November 11, 1918, the American novelist Edith Wharton had already been living as an expatriate in Paris for five years. During that time, she had essentially ceased to write fiction and had turned her energies instead to the Allied effort by providing war relief for soldiers and refugees. Her devotion and enthusiasm for her work was, in fact, enough to win her the French Legion of Honor. By the end of the war, however, Wharton found herself disturbed by what she saw as the profound social disruptions that had been brought on by the war. In the months after the armistice, she again picked up her pen to write what many critics consider to be her war novel. One would be hard pressed, however, to find any elements within The Age of Innocence that even remotely address the disruption and the bloodshed of the First World War. Set in 1870s New York, Whartons novel depicts a society that is in many ways the antithesis of war-devastated Europe. Old New York, Whartons term to describe this wealthy and elite class at the top of the developing citys social hierarchy, was a society utterly intent on maintaining its own rigid stability. To Wharton, Old New York imposed on its members set rules and expectations for practically everything: manners, fashions, behaviors, and even conversations. Those who breached the social code were punished, with exquisite politeness, by the other members. The differences between the fractured society following the First World War and the Old New York of The Age of Innocence are without a doubt dramatic. However, there is more of a connection between them than may first appear. Edith Wharton herself was born into the claustrophobic world of Old New York. When she began, at the age of fifty-seven, to write what would become her Pulitzer-prize winning novel, she had already witnessed an astounding amount of social change. Both horrified and fascinated by the chaos and the freedom of the new century as it headed towards modernism and war, Wharton was prompted to compare this new age with that of her own past. The Age of Innocence, then, stands as both a personal recollection of the culture of Whartons youth and an historical study of an old-fashioned world on the brink of profound and permanent change. It is believed that the expression keeping up with the Joneses once specifically referred to Edith Jones Whartons parents, who were known throughout New York for their lavish social gatherings. Born into such an atmosphere of opulence, Wharton had access to all the privileges of an upper- class upbringing: education, travel, and the assurance of a good marriage. Yet for all the luxury of her youth, Wharton felt her individuality continually stifled by the rigid expectations and narrow perspectives of her class. Not surprisingly, these sentiments become central themes in The Age of Innocence. Unhappily married at an early age to a man thirteen years her senior, Wharton faced, like Ellen Olenska, the temptations of adultery and the censure of divorce. As a writer, too, Wharton faced the criticisms of her class, who disdained and feared what they called the bohemian life of artists and writers. Post-war Paris was a far cry from this stifling environment, and Wharton was interested in tracing the differences between her past and present not only on a personal level, but also a historico-anthropological level. By the end of the War, rigid Old New York appeared as a lost world, a defunct civilization that bore little similarity to the present era. Like many authors of her time, Wharton was interested in evolutionary theories and the newly developing field of anthropology. To a great extent, it is this interest in the sociology of Old New York that gives the novel its keen sense of detached irony. While post-Civil War New York saw itself as the pinnacle of civilization, Wharton undercuts this picture by comparing its unbending societal customs to those of the most primitive tribes. Plot Overview Newland Archer couldnt be more pleased with his recent engagement to the beautiful debutante May Welland. However, his world is thrown upside down by the sensational arrival of Mays cousin, Countess Ellen Olenska. Recently returned to America after separating from her husband, a philandering Polish count, Countess Olenska shocks the staid New York aristocracy with her revealing clothes, carefree manners, and rumors of adultery. Because the Countesss family, headed by the powerful Mrs. Manson Mingott, have chosen to reintroduce her into good society, Archer and May feel it necessary to befriend her. As Archer comes to better know the Countess, he begins to appreciate her unconventional views on New York society. Meanwhile, Archer becomes increasingly disillusioned with his new fianceà ©, May. He begins to see her as the manufactured product of her class: polite, innocent, and utterly devoid of personal opinion and sense of self. The Countess Olenska soon announces her intention of divorcing her husband. While Archer supports her desire for freedom, he feels compelled to act on behalf of the Mingott family and persuade Ellen to remain married. At a friends cottage near Hudson, Archer realizes that he is in love with Ellen. He abruptly leaves the next day for Florida, where he is reunited with May and her parents, who are there on vacation. There, he presses May to shorten their engagement. May becomes suspicious and asks him if his hurry to get married is prompted by the fear that he is marrying the wrong person. Archer reassures May that he is in love with her. Back in New York, Archer calls on Ellen, and Archer admits that he is in love with her. Just then, a telegram arrives from May, announcing that her parents have pushed forward the wedding date. After their wedding and honeymoon in Europe, Archer and May settle down to married life in New York. Over time, Archers memory of Ellen fades to a wistful image. But on vacation in Newport, he is reunited with her, and Ellen promises not to return to Europe as long as she and Newland do not act upon their love for each other. Back in New York, Archer learns that Count Olenski wants his wife to return to him and that Ellen has refused. After the stroke of her grandmother, Ellen returns to New York to care for her. She and Archer agree to consummate their affair. But suddenly, Ellen announces her intention to return to Europe. May throws a farewell party for Ellen, and after the guests leave, May announces to Archer that she is pregnant and that she told Ellen her news two weeks earlier. Twenty-five years pass. In that time, the Archers have had three children and May has died from pneumonia. Now Archers son convinces him to travel to France. There, they arrange to visit the Countess Olenska at her Paris apartment. However, at the last minute Archer sends his son alone to visit her, content instead to live with his memories of the past. Character List Newland Archer The novels protagonist. Archer is a wealthy young lawyer married to the beautiful debutante May Welland. He is in love, however, with Mays cousin Countess Ellen Olenska, who represents to him the freedom missing from the suffocating environment of the New York aristocracy. Archer is torn between his duty to May and to his family, and his passion for Ellen. In the end, he remains faithful to his wife and comes to be known in society as a philanthropist and civic figure. Countess Ellen Olenska Mays cousin and Mrs. Manson Mingotts granddaughter. Ellen was educated and raised in Europe. There, she married a Polish count, who cheated on her and prompted her to leave him. Upon her return to New York family, she hopes to be reintegrated to American life, but she finds only judgmentality and stifling mores. Her behavior is deemed too unorthodox for her to fit in to Old New York. To Archer, however, she is free and truly alive, her own person. May Welland The dewy-eyed and artless young thing who marries Archer. May appears to be unassailably innocent. Over time, Archer comes to see her as the living embodiment of New York society: incapable of thinking on her own, conditioned to act as she is expected. Despite her apparent innocence, May is not as naà ¯ve as Newland thinks. However, she remains a loyal wife even after she suspects that Newland is having an affair with Countess Olenska. Mrs. Manson Mingott Grandmother to May and Ellen, Mrs. Mingott is a fat and fiery old aristocratic lady who wields great influence over the New York clan. While her moral standards are irreproachable, she has some unorthodox social views. She insists on family solidarity and remains confident in Ellen, supporting her financially when she leaves New York to return to Europe. Henry and Louisa van der Luyden The descendants of pre-Revolutionary Dutch aristocracy, this elderly couple is the last word in social authority. They are last in a long line of powerful social leaders. Very quiet and non-adventurous people, they are rarely seen in public and only rarely invite guests to their solemn Madison Avenue mansion. Julius Beaufort Little is known about this British bankers past, but it is widely rumored that he left Europe after some shady business deals. With his elaborate annual balls, Beaufort is one of the most important and lavish hosts of New York entertainment. Following a scandalous business failure, he is swiftly exiled from good society. Mrs. Archer and Janey Archer Mother and sister of Archer, these two women act almost like sisters. Somewhat socially timid, they love to gossip, grow ferns, and make lace. While they are devoted to Archer, they are nonetheless frequently shocked by his social views. Lawrence Lefferts Widely considered to be the arbiter of good taste and moral values, Lefferts is also a huge gossip and an unfaithful husband. There are suspicions that he courted Countess Olenska soon after her arrival and was soundly rejected. Sillerton Jackson An elderly gentleman and good friend of the Archer family. Jackson is the unofficial archivist of all New York gossip and family history. Medora Manson The eccentric old aunt of Ellens, Medora raised her after the deaths of Ellens parents. A penniless itinerant, she is repeatedly widowed, and is tolerated by society only because of her family connections. Ned Winsett The bohemian journalist friend of Archer. Ned Winsett is one of the few people with whom Archer can really converse. He sees him as both an emblem of social freedom and its immense costs. Mrs. Lemuel Struthers Although as heir to a shoe polish fortune Mrs. Struthers is considered common, she becomes a popular hostess known for her artistic gatherings. Summary The novel opens in the new opera house, where all of New Yorks high society has assembled in its expensive box seats to see and to be seen. Newland Archer, the protagonist, has just arrived fashionably late and joins his friends in time for the climax of the opera. As he glances across the filled theater, he spots May Welland, his new fianceà ©, seated in the box of her aristocratic old grandmother, Mrs. Manson Mingott. Archer, struck anew by her pure and innocent beauty, dreams of blissful married life with May. His reverie is abruptly interrupted by his acquaintance Larry Lefferts, who notices a stranger entering the Mingott box. A slim young woman wearing a theatrical and low-cut dress takes a seat in the box, seemingly unconscious of all the attention she attracts. With shock, Archer realizes that this woman is no other than the Countess Ellen Olenska, cousin to May Welland, who has returned to New York after having lived abroad for many years. Lefferts, considered to be the authority on form, or style and fashion, and Sillerton Jackson, the unofficial archivist of all family histories and scandals within the upper class, are both shocked that the Countess would appear in good society with the rest of her family. We learn through their gossip that it is rumored that she had left her unfaithful husband, a Polish count. Newland admires the fiery and somewhat unorthodox determination of Mrs. Manson Mingott to support this black sheep of her family by not only hosting her indefinitely in her home, but also by allowing her to appear publicly in the family box at the Opera. Yet at the same time he is bothered that all of New York society will see such a scandalous figure sitting next to his innocent young fiancee. As the men continue to gossip, Archer feel compelled to take decisive action. As the fiancà © of May Welland, he decides that he has the responsibility to defend the Mingott clan. During intermission, he hurries over to the Mingott box. Although no words are exchanged between May and himself as to the reason for his sudden appearance, she shows her understanding of the situation and her gratitude to Archer with her smile. Both she and Archer are aware that by appearing in the Mingott box with the Countess Olenska, Archer is demonstrating his connection to that family and his support of their decision to include the Countess in their social activities. Archer is introduced to Olenska, who was one of his childhood playmates. He is struck by her flippant, friendly manners and finds her descriptions of New York society rather disrespectful. After the opera, many of the wealthy New York families attend the annual ball at the Beaufort residence. Julius Beaufort, we learn, is a handsome, charming, and disreputable Englishman with a shady financial history and a strong tendency toward infidelity; his wife Regina is a pretty but dull woman of reputable family background. Although many consider the Beauforts to be common, no one would ever pass their elaborate and ostentatious balls, which provide a cornerstone for New York social activities. At the ball, Archer and May officially announce their engagement. In a moment alone together in the conservatory, they express their happiness. May suddenly asks Archer to announce their engagement to her cousin Ellen Olenska. Ellen, to the relief of her family, did not attend the Beauforts ball. Analysis In the opening chapter of The Age of Innocence, Wharton immediately evokes a specific time, a place, and a society. Her panoramic description of the opera is highly effective as an introductory setting, for it not only acclimates the reader to the fashions and entertainment preferences of Old New York, but it also presents the members of this society as if they were an assembly, a closely-knit collection of individuals and families. The fact that everyone in good society attends the opera demonstrates immediately their similar tastes in art and entertainment. Yet the opera does not serve merely as a bonding activity for the very rich. Indeed, the members of the audience scrutinize each other far more than the opera itself, singling out in particular the fashions and manners of their peers. One goes to the opera to see and to be seen, to judge and to be judged. This may explain why Wharton is quick to introduce two characters who are otherwise minor to the plot. She singles Larry Lefferts out of the crowd as the foremost authority on form. Form, or a code that indicates the acceptable tastes in fashion and manners, is extremely important to this society, which is so concerned with appearances. And an unusual dress or a flippant attitude may, in fact, signify more than just a lack of taste but also a lack of proper moral values. Such a potential wantonness threatens to destabilize the delicate existing code and is therefore judged harshly. In addition to Lefferts, Wharton pauses over the character of Sillerton Jackson, the unofficial archivist of family histories. Not only does Jackson know every blood and marital relationship within the tight clan of Old New York, he also knows each familys scandals, whether real or rumored. Thanks to Jackson, ones private history does not remain a secret for long. Here and throughout the novel, Wharton employs certain imagery by which to portray Old New York society. She describes the evening at the opera as an extremely predictable event: one arrives there fashionably late, every family has a carriage waiting for them at the entrance, and even the ball at Beauforts that follows is an annual tradition. On a basic level, Whartons language indicates how boring such a world can be; no one acts differently from anyone else and there is no variation in the course of events from year to year. In the following chapters, Archer will become more and more frustrated with the monotony of this stultifying environment. On a more symbolic level, Wharton ironically compares the traditional behaviors and codes of cultured Old New York with those of primitive or ancient cultures. Both are obsessed with ritual events and behaviors, she indicates, and Archers concern with acceptable behavior is no different from the totem terrors that had ruled the destinies of his forefathers thousands of years ago. It is, of course, the arrival of Countess Ellen Olenska that brings tension to this perfectly ordered scene. Thanks to the good memory and loose tongue of Sillerton Jackson, Ellens appearance is preceded by her reputation. It is important to note Jacksons exclamation upon seeing Ellen in her familys opera box: I didnt think the Mingotts would have tried it on. With this statement is the implication that the actions of an individual reflect upon the family. Jackson is shocked not only because a woman of somewhat ill repute is seen amongst good society, but also because her family is choosing to support such a black sheep. Newland Archer is aware of the crucial importance of the Mingott familys sense of solidarity. When he sees how his friends negatively respond to the appearance of Ellen, he rushes over to the Mingott family box. Since May is a member of this family and Archer soon will be, it is his duty to defend their decision to include Ellen. Simply by appearing in the Mingott box, Archer is sending a clear non-verbal signal to the rest of the New York clan. This gesture, just like Mays grateful glance at Archer, is a subtle but unequivocal form of communication. Throughout the novel, Wharton must interpret these actions for her readers, for often the spoken words of her characters do not contain as much meaning as (and in some cases relate the opposite meaning of) the gesture. In the third chapter, the character of Julius Beaufort provides a clear example of the discrepancy of appearance versus reality. His personal history is spotty at best, and he is notorious for his womanizing. But because of his immaculate dress and public display of manners and hospitality, he is accepted by the New York clan. As long as Beaufort-or anyone, for that matter-can hide the unpleasantness of his past, he will be welcomed into good society. Chapters 4-6 Summary As is expected of all newly engaged couples, Archer and May begin a series of betrothal visits to their friends and relatives. The first is to Mrs. Manson Mingott, who lives by herself in a grand and unorthodox mansion near Central Park. Because of her tremendous obesity, she is confined to her house; but because of her social influence, she is not isolated from the rest of society. Mrs. Mingott happily receives the couple and instructs May on wedding preparations. As they are about to take their leave, Ellen Olenska returns home from shopping with Julius Beaufort. Archer notices that Mrs. Mingott greets them both cordially; she does not seem to consider it improper, as he does, that a married man should be seen in daylight with a recently-separated woman. As Archer leaves, he speaks briefly to the Countess about his engagement to May. She is very pleased and asks Archer to call on her soon. As Archer leaves, he inwardly remarks that the Countesss behavior with Beaufort is most likely acceptable in Europe. All the same, he is glad he is marrying a member of his own New York clan. The next evening Sillerton Jackson dines with Archer and Archers mother and sister at their home. Jackson and the two women are eager to gossip about the arrival of the Countess Olenska. When the conversation inevitably drifts to discussing her appearance in public with Beaufort, Archer shocks his family by claiming that she has the right to go where she chooses and that he hopes the Countess will get a divorce from her brutish husband, even if such things are seldom done. He remarks that he is tired of a double standard for the affairs of men and women and that it is time for women to be as free as men. Alone in his study after dinner, Archer contemplates his approaching marriage to May. Regarding her picture, he wonders to what extent she is the product of her society. Recalling his assertion at dinner that women should have the same freedoms as men, he now concludes that the nice women of his class were brought up to never desire freedom. Archer suddenly realizes that although he wants his future wife to be free and to form her own thoughts, she has been carefully trained by her family not to possess such traits. To him, May is innocent because she is ignorant. While he remains unwavering in his decision to marry her, he begins to feel that his marriage will not be entirely what he had previously expected. A few days later, the Mingott family is in great distress. After having sent out invitations for a formal dinner to be held in honor of the Countess Olenska, they have received refusals from practically all of the invites. It is clear that New York has decided to scorn the Count ess Olenska by not attending her welcoming dinner. In protest, Archer appeals to his mother to talk with Henry and Louisa van der Luyden. The van der Luydens, a frail old couple who are seldom seen in public and receive only their most intimate friends at home, are regarded as the most powerful and most elite figures in New York society. Archer hopes that their influence can atone for the slight that has been dealt to the Countess and her family. Analysis Chapter 4 opens with one of the most humorous character sketches in the novel. The immensely large Mrs. Manson Mingott is an intriguing character to Archer because of her slightly unorthodox living arrangement and her candid way of speaking. Because of her impeccable moral character and high societal status, her free style of conversation does not scandalize others or disrupt the given social standards. As such, she can easily get away with making some perceptive and occasionally critical insights into the society of Old New York. When Beaufort arrives with Countess Olenska at Mrs. Mingotts home, she asks him if he will be inviting Mrs. Lemuel Struthers and remarks that New York is in need of new blood and new money. While Old New York is intensely close-knit and hostile to nouveau-riche outsiders, it is also in risk of isolating itself completely from the rest of the world, to the detriment of its own health. The character of Newland Archer also takes on several nuances in these cha pters. In the opening Opera scene, Archer appears to be as preoccupied with correct appearances as his friends. At Mrs. Mingotts house, Wharton demonstrates how Archers thoughts on form depart from the norm. He admires Mrs. Mingotts strong personality and the slight sense of impropriety in the arrangement of her house. Yet Archer is relieved when he discovers that Ellen is out for the day, for he fears the controversy associated with her. His acceptance of unconventionality, then, is limited. Mrs. Mingotts harmless banter is not nearly as destabilizing as Ellens behavior in walking in public with Beaufort, which threatens the social code to which Archer is accustomed. In chapters five and six, we also get a glimpse into Archers thoughts on women. At dinner with his family and Sillerton Jackson, Archer attempts to defend Ellens right to have an affair following the infidelities of her husbands by proclaiming that women should be as free as men when it came to their personal relations hips. Yet Archers attempts at gender equality are belied by many of his other comments. Later that evening, he remarks to Jackson that he is sick of the hypocrisy that would bury alive a woman of her age if her husband prefers to live with harlots. While he does here defend Ellens right to manage her own affairs, he labels other women who have made similar choices as harlots. Archer also shows his unequal treatment of women in regards to his own past. In the novels elliptical allusions to his former mistress, Archer is always inclined to judge her actions harshly. Archer is also led to wonder about the usefulness of asserting such rights for women. Although he loves and admires May, he sees that she has been brought up to be a nice woman, one who would never request the right to have an affair. With this revelation, Archer begins to realize just how circumscribed the lives of May and other women in New York society really are. They have been brought up never to question inequalities or double standards. In fact, it is as if they are not even aware that such inequalities exist. They exist in a state of perpetual innocence, untroubled by what they do not know. With this revelation, Archer becomes further disillusioned with the strict codes of Old New York. Chapters 7-9 Summary At the van der Luydens formal and ostentatious Madison Avenue home, Archer and his mother relate the slight given to the Countess Olenska. The van der Luydens decide to stand by the Countess on principle: if her family has already decided to support her admittance into society, the rest of society must support their decision. To make amends, the van der Luydens decide to include the Countess at their reception for the Duke of St. Austrey. In the course of the next week, before attending the reception for the Duke, Archer learns much about the past of the Countess Olenska. After the early deaths of her itinerant parents, Ellen was left under the guardianship of her aunt Medora Manson, an eccentric and frequently widowed woman. After the death of Medoras most recent husband, she packed up and left with Ellen in tow. For years nothing was heard of them, until news reached New York that Ellen had married the extremely wealthy Polish Count Olenski. A few years later, the marriage ended in disaster, and Ellen decided to return to her New York family to recuperate. After learning of Ellens history, Archer is curious to see how-if at all-she will adapt to New York society. At the Dukes reception, the Countess raises eyebrows by appearing late and somewhat disheveled. After dinner, she leaves the side of the Duke (with whom she is expected to converse) in order to talk with Archer. They discuss, primarily, his engagement to May. The Countess reveals her ignorance of New York social customs by asking Archer if the marriage was arranged. When Archer corrects her, she embarrassedly admits that she often forgets that what is bad in European culture is good, by contrast, in American culture. As the conversation is interrupted by the other guests, Countess Olenska bids Archer to call on her at her new home the next day. Archer arrives late at the Countesss shabby, slightly bohemian flat that following day, only to find her away. He decides to wait in her living room until she returns. While he waits, he examines the room, which is artfully decorated with European bric-a-brac and exotic works of art. To Archer, who is used to the standardized Italian art appreciated by those in his class, the Countesss furnishings are novel and intriguing. Suddenly, from the window he sees the Countess descend from Beauforts cab. Inside the flat, Archer is interested by the Countesss novel, if slightly shocking, opinions on the fashions and the families of Old New York. She, in turn, looks to Archer for advice about fitting in to the New York clan. When he explains how misleading appearances are in New York, Ellen responds by bursting into tears. She remarks to Archer that the most lonely aspect of living in New York is that she is required to live around well-meaning people who insist that she pretend to be someone she is not in order to spare them any unpleasantness. Their conversation is interrupted by the entrance of the Duke and Mrs. Lemuel Struthers. Archer leaves, somewhat relieved to be spared any more upsetting emotion. As he stops by the florist to send May her daily bouquet of lilies-of- the-valley, he decides impulsively to send a bouquet of yellow roses to Countess Olenska. Analysis Wharton commences Chapter 7 with a detailed account of the nature of the power structure and chain of command within the tight-knit high society of New York. As the sole descendants of one of the most wealthy and aristocratic families in the city, Henry and Louisa van der Luyden serve as legislatures, executives, and judges in regards to certain social problems. It is they who determine the laws of family solidarity. Because Ellens family supports her, everyone outside the family must honor their decision and treat her as one of them. It is also they who judge the severity of the offense against Ellen Olenska; Wharton describes them as the Court of last appeals. And finally, it is they who decide that action must be taken to amend for the insult. By inviting the Countess to their formal reception for the Duke, the van der Luydens send an unmistakable message to those who have previously slighted Ellen. Wharton makes her depiction of the van der Luydens ironic by several different means. First of all, she shows the inconsistencies between the van der Luydens as individuals and as leaders. For all the stuffy splendor of their house and the formal quality of their interview with the Archers, Henry and Louisa are shy and retiring people who dont much like to entertain. They seldom leave their home, due both to health problems and a genuine fear of venturing out in public. Secondly, Wharton describes them in anthropological terms. The van der Luydens are mouth pieces of some remote ancestral authority which fate compelled them to wield. Wharton subtly hints that there is something primitive about the van der Luydens influence over society and that their power is due more to wealth and bloodline than to their capability and temperament. For a society that prides itself on its high culture, such a hierarchy of power seems rather crude and primeval. And finally, Whartons physical description of this harmless old couple involves a large amount of death imagery. Louisa looks like she was rather gruesomely preserved in the airless atmosphere of a perfectly irreproachable existence. This is not unlike the way Wharton sees Mrs. Mingott as a doomed city trapped under her own weight in Chapter 4. In both these cases, Whartons juxtaposition of authority figures with death imagery indicates the ineffectual nature of their power. Ruled by such archaic individuals, Old New York potentially faces a waning of power itself, or even extinction. In Chapters 8 and 9, we begin to get a better grasp of Ellens personality. Up until this point, we have seen Ellen primarily through the eyes of others: through the gossip at the opera and through Archers opinions based on their brief encounters. Now the picture of Ellen becomes more complete through the recounting of her personal history, the descriptions of her exotically furnished apartment, and through her own conversations with Archer. The very nature of their discussion proves to Archer Ellens foreignness and her lack of traditional manners. Unlike May and the rest of New York who communicate indirectly through glances and euphemistic speech, Ellen is quite candid in her opinions. She directly criticizes