Smart furniture that can be used in an energy efficient home

            A home is a place that we would want to stay and spent more time when we are off from work or if we want to relax. There is need to come up with the best ideas that will increase the general outlook of the house. Furniture are very necessary in a home and thus there design if important to meet the needs of the home and its style.

            Use of undercounter tables that can be pulled and pushed back. This can be used anywhere in a home, they can be in a living room or even in the kitchen. They save a lot of pace and reduce congestion which can thus allow natural light during the day and promote air circulation and thus can save energy. The tables can be used as workspace for placing laptops which are currently part of our lives. They can be also used as eating place.

            Use of bunk beds are also most appropriate in reduction of spacing and also facilitating free movements in the house. Bunk beds utilizes the vertical space and promotes good distribution of light in the room. The walls of the rum can also be made of furniture which reduces the amount of heat that can be loosed to the environment.

Some of the techniques that can be applied is use of colors, this is because the intensity of darkness and lightness greatly affects reflection and absorption of heat and light (Kishore and Singh 18). It is thus important to paint colors. Colors that can reflect heat from ceiling and other thermal masse are pink and beige. On the other hand, colors that can be used in rooms that are cool are red and yellow they can make you feel warm. This technique saves energy by reduces the amount of heat lose and increase the heat lose depending on the condition of the room temperature and thus saving the use of electricity to control the room temperature.

            Another technique that can be applied in energy saving home is use of insulation to maintain heat in the house. It is therefore, important to choose the right type of insulation to reduce the amount of heat loss to the environment (Kishore and Singh 24). Insulation saves energy in that it maintains the warmed for a very long time and thus reduce the frequency of heating it again.

            Use of cool roofs can be also good in saving of energy. The cool roofs are made in such a way that it can reflect sunlight. The roofs are usually made of shiny materials such as tiles and the whole process facilitates air conditioning by making it faster and at long run, saving energy. It reduces the amount of heat in the house by reducing the heat from the sunlight.

Also during the early stages of building, house framing can be considered. It is a modern technique where a home is build using few amount of lumber and waste. It employs use of more f insulation materials and less of wood. This technique not only minimizes heat loss from the house and heat to the house, it also lowers the cost of labor and building materials.

            The home office or the work area should be designed to accommodate at least two individuals. This is very necessary to reduces the amount of energy that can be used by single individuals and thus create a place where two individuals can work from and share the lighting and thus save on the cost the electricity and even the materials required.

            The house also can be installed with materials such as carpets which are able to trap heat. This is taking care of the mechanical heat transmission of energy. Presence of this carpet during the winter or the cold season is very helpful as heat loss from the house to the outside environment is very low. This thus is cost effective because it can be bought only once and also its ability to trap the heat will reduce the amount of electricity which will be used to keep the room warm all the time.

            Furthermore, use of smart thermostats is can also reduce the amount of electricity that can be used. This is because it monitors the room temperature by switching off when temperature reaches the intended temperature and switches on when temperature runs below the required temperature (Giusti and Almoosawi 539).. This type of electronic device can also be programmed to use less energy for example when one is away from the house or even when they are asleep. This will save electricity because it can adjust and use energy when it is just needed.

            Air tightening of the home is also key to minimize heat lost to the environment, this will thus maintain the room temperature for a very long time since it reduces air circulation in the room. This will result to reduction of the frequency of heating the room again and thus reduce the amount of electricity used by the equipment to maintain the temperature of the house. behanbuilders.ie

            Electronic appliances also consume energy even when they are not being used as long as it is plugged in the socket. It is therefore suitable to unplug this materials and only plug in when they are being required. Through practice of this, the amount of electricity consumed will be low and it is also cost effective as because they are only applied when needed.

            Before purchasing of other electrical appliances to be used at home. It will be necessary to check energy star ratings for the equipment. This will enable the consumer make decisions to buy the energy efficient equipment. The energy rating will be directly proportional to the amount of money saved (Toyinbo et al. 116). Good rating level means that the amount of electricity that the equipment can consume is very low and thus the electricity bill will therefore be low and thus there is at least of saving.

            Installation of other sources of energy is also a good step. Use of renewable solar energy will aid in reducing the quantity of using electricity which will then reduce the cost of the bills (Giusti and Almoosawi 536). Solar energy can be used in various ways including lighting, powering of electronics such as television and other appliances that does not use large quantities of energy. It will also save the environment because it has no emissions (Yasin, Aysar and Palestine-Aysar Nablus 23).

            Use of fans which are installed on the ceiling and that have built-in lighting are the best in controlling the room temperature. Its use will prolong the turning on the air conditioner and thus cutting the cost. Fans are mostly affordable and thus they are cost effective and they can reduce the cost of electricity by reducing the quantity that could have used to control the room temperature.       

Work cited

Giusti, L., and M. Almoosawi. "Impact of building characteristics and occupants’ behaviour on the electricity consumption of households in Abu Dhabi (UAE)." Energy and Buildings 151 (2017): 534-547.

Kishore, V. V. N., and R. Singh. "Introduction to Energy-Efficient Building Development and Sustainability." Sustainability through Energy-Efficient Buildings. CRC Press, 2018. 1-31.

Komurlu, Ruveyda, David Arditi, and Asli Pelin Gurgun. "Energy and atmosphere standards for sustainable design and construction in different countries." Energy and Buildings 90 (2015): 156-165.

Toyinbo, Oluyemi, et al. "Building characteristics, indoor environmental quality, and mathematics achievement in Finnish elementary schools." Building and Environment 104 (2016): 114-121.

Yasin, Aysar, and Palestine-Aysar Nablus. "Environmental Impact Assessmemt of a Collective Solar Water Heater System in West Bank." Proceeding of. 2017.

                                    Business Entities & Corporations

Drew wants to buy Tasty Subs, a national franchise.

1. In bullet point form, list the information that Tasty Subs is legally required to provide Drew if he decides to buy the franchise (do not rely on the list in the textbook; go to the link provided on the Overview page).

• The first thing that he need to understand is the fact that franchises always have the ability of offering independence to small business organization with the main objective of supporting some of the benefits that larger business organizations have
• It is important to keep in mind that it is not important to have business experiences in order to be in the position of running a franchise. The reason for that is because the majority of the franchisers always thrive through offering various trainings that are required for the purpose of operating the models of their business (International 141).
• As compared to start-up business organizations, the truth is that franchise business has been noted to have higher rates of returns to its owners.
• It is possible to secure finances for franchises. The reason for that is because they always require little amount of money to purchase them as compared to freshly started business organizations.

2. If you were Drew, what three items would you find most valuable in determining whether to buy a Tasty Subs franchise? Why? (Note: there isn't a right or wrong answer for part 2 but you needto use your critical thinking skills.)

• Neutral arena
• The presence of flexible law that have the ability of favoring business management
• The presence of efficient court ruling chancery

Question #2 (5 points):

Accord Inc. is a small company run by Ashley and Warner. They and eight of their friends are the shareholders. Accord has run into difficulties with its creditors and is considering bankruptcy. The creditors sue before the bankruptcy can be filed.

1. What will the creditors ask the court to do in order to hold the shareholders personally liable (i.e. the specific legal term)?

• The name and address of each individual
• Their place of residence
• The percentage of their contributions

2. Identify and explain each the four areas that could lead to the shareholders being personally liable for the debts.

• The importance of piercing the corporate veil for the entity that provided goods or services to you.
• The corporate liability for the organization when it comes to the need of separating business distinction from others who are not eligible for debts
• Determining the directors or the members of the main organization who can qualify for debts.
• The general effects of piercing the shareholders of the company so as to be in the position or liable for paying the debts their organization might have received (McKnew et al 54).

Note that the legal concept for this question is pertinent to both corporations and LLCs. As such, it is discussed in both Ch. 20 and Ch. 21. Use the material in Ch. 20 to answer this question. Also, note that this question is not about bankruptcy law.

Question #3 (5 points):

Mel recently received a promotion to Chief Marketing Officer for Old Fashioned Watches, Inc. Sales have been suffering, so off the bat, he approves an edgy multi-million dollar marketing campaign that appeals to the Millennial demographic, which is not Old Fashioned's historic target consumer group. With this in mind, explain:

1. The business judgment rule – the significance of this rule is to ensure that it has protected its members from various frivolous allegations concerning the manner in which business organizations have to be conducted. It, therefore, implies that some of the judgments that a business will have can also be exempted for the purpose of ensuring that the entity is operated legally. On the other hand, in case the business is perceived to be incapable of meeting legal requirements, its members could have ultimately violated the main business ethics.
2. Its two duties;

• Complying with legal requirement
• Meeting the safety and ethical standards of the business
• Meeting the legal or modern approved business marketing campagns
• Ensuring that each individual is fully responsible for the mandates of the business

3. The four ways (from the textbook) that the rule is applied, and

• Ensuring that the business and its associated members are fully eligible for any mistakes that might made by the business
• Ensuring that is members is legally proven to run the business
• Ensuring that the business is legally registered
• Ensuring that the business is meant to benefit all members (Klarfeld 228).

4. How it will positively impact Mel in this and other business decisions as CMO (i.e. how it will have a positive influence Mel's decision making).

Conversely, it is important to understand that franchise business has a well established image and reputation, continued and easy access to advertising, proven business management, and ongoing support.

                                                            Work cited

International, Business P. U. Peru Investment and Business Guide: Strategic and Practical Information. Place of publication not identified: Intl Business Pubns Usa, 2015. Print.

McKnew, Natalma M, and David A. Beyer. Annual Franchise and Distribution Law Developments, 2008. Chicago, Ill: ABA Forum on Franchising, 2008. Print.

Klarfeld, Peter J. Covenants against Competition in Franchise Agreements. Chicago, Ill.: Forum on Franchising, American Bar Association, 2002. Print.

 Initially a magazine based in Detroit and solely owned by Steinlauf family, Edmund.com is the easiest cite to navigate while researching on cars. It gives holistic reviews to the user and leaves all the information at the disposal of the consumer (Edmund.com). Due to its ability to give out information on cars, it grew into a reputable digital resource for car shopping.

Compared to other platforms that offer the same services, Edmund.com does not only capitalize on its opinion but also includes perspectives from different car lovers. For example, it clearly states the car features that make the model cheap and other underlying factors that result into the price the user sees (Edmund.com). Therefore, a car shopper grasps all the aspects of the car even before making an actual purchase.

Unlike other car dealers like car guru, that only inform on car features and ignores the opinion of the average buyer, Edmund does not try too hard to please a car shopper, instead it associates car features with prices hence the buyer clearly knows upfront what he or she is getting into (Edmund.com). Displaying fancy models without informing the buyer on the nitty gritty details takes away the ability of the buyer to make an informed decision.

For example, lets log into the Edmund website and choose a model, in this case, Subaru Forester. Edmund brings all the model’s features, reasonable quoted prices and the gives consumer reviews (Edmund.com). At the end of the day, a car shopper gets the full unbiased picture of the car, its market price, and comfort level of the car just from one website. Hence, no need to jump from one car dealer to the next.

Works cited

Edmund.com https://www.edmunds.com/subaru/forester/?placement=235328669car%20comparisons 2019

Segment one: Walmart Revolutionary authority

In the beginning, Walmart was able to record 256 billion dollars (Frontline 1).

2

 An estimated 100 Americans stream into Walmart on a weekly basis (Frontline 1).

3

 The Telxon unit collects consumer information after reading barcodes of various items sold at Walmart. It then assists each store come up with a list of products on demand thus capitalizing on the obtained information to customize services and follow trends. Simply put, Walmart has the right product mix in each stores (Frontline 1).

4

 Push strategy entails manufacturers having total control of items produced then convincing retailers to buy the products. On the other hand, in the pull strategy, retailers use information from their stores to dictate products manufacturers should make for the retailers (Frontline 1).

5

Vendorville is an assortment of manufacturers cable sales workplaces at Benton Arkansas (Frontline 1).

6

Walmart utilizes one sided negotiation skills. In fact, the negotiations are minimal (Frontline 1).

 Segment 2

1

After Walmart expanded into America, it had a close relationship with Rubbermaid because Rubbermaid supplied quality items to the giant retailer. When Walmart experiences a slowdown, Rubbermaid increases its resin prices to all retailers. Walmart stood its ground and did not pay the extra money and even went further and dropped other Rubbermaid items from their stores Frontline 1).

2

Walmart dissociation with Rubbermaid affected Rubbermaid greatly. Hence, it resulted into a partnership (Frontline 1).

3

 An estimated one thousand people lost their job due to the closure of the manufacturer (Frontline 1).

Section 3

1

 Refers to the lowest prices displayed during special offers (Frontline 1).

2

 They capture the attention of the shoppers therefore luring in more shoppers and potential buyers (Frontline 1).

3

In my perspective, it is not ethical as it baits the consumers into believing a lie (Frontline 1).

4

 They imported cheaper items from china (Frontline 1).

 Segment 4

1

At Hayco the figure was $100 each month which translated to 50 after 60 minutes (Frontline 1).

2

80% of the total supplies (Frontline 1).

3

 By clearly stating prices, Walmart will pay for the suppliers items. If the supplier finds the price dissastfying, they can look for another retailer (Frontline 1).

Segment 5

1

They requested Chinese firms were importing low quality in the American market (Frontline 1).

2

 Walmart supported the Chinese manufacturers (Frontline 1).

3

 Walmart won on the fact that local manufacturers need to find an equal footing (Frontline 1)

4

Yes, Walmart is a necessary evil as it is home to many employees (Frontline 1).

References

Frontline. (2004). SEASON 23: EPISODE 4. https://www.pbs.org/wgbh/frontline/film/showswalmart/

 Procurement for Toyota

The supply chain used by Toyota is one that places a lot of emphasis on reducing the cost of production. As part of its procurement processes, the company works with its suppliers not just in a functional capacity but also includes them in some of its operations. To begin with, the company ensures that the suppliers are in close proximity to its base of operation to speed up delivery of raw materials and collection of finished products ready for distribution. The company also guarantees its suppliers some form of security by giving them order guarantees which encourage the suppliers to produce high quality goods at relatively low cost. Since the company believes in growing with its suppliers, it is able to build lasting relationships that make it more convenient to purchase raw materials and supply its products.

            Although efficient, there is a need to improve the procurement supply chain at Toyota because its focus on reducing costs takes away from other important factors such as customer satisfaction[1]. The approach did not factor in the importance of other factors such as customer opinion and preference and this can have serious negative effects on sales even when the best quality products are offered by a company[2]. Even if the company managed to present the best quality products to the most appropriate stores, customer satisfaction and preference is something the supply chain should have taken into account as it greatly determines demand for the products.

            In order to achieve a global supply chain strategy trade off, the company can implement the use of the in-house procurement approach combined with the multiple sourcing approaches. The in-house approach is one where a company relies on its employees to fulfill specific tasks aimed at assisting the company meet its objectives[3]. It also gives access to external providers who get to use the facilities within an organization to not only help meet company objectives; but also save on cost of production. The in house approach is appropriate as creates more streamlined projects, improves communication and makes processes more standard.

Combining the in-house approach and multiple sourcing will ensure that the company not only saves on cost but also gets the best quality of products and services as it has a variety to choose from. If one supplier stops offering a service or product, the company is flexible as it has the option of choosing from other suppliers[4]. This further increases competition between suppliers as they seek favor from Toyota which translates to better prices, delivery times and quality of products.

Once established, the company can rely on the transaction cost internationalization approach to enter into new markets. The company may decide to have subsidiaries in the new markets it wants to venture into so as to better control operations[5]. The transaction cost method will give the company more control not just of the market but also over its subsidiaries. In the case of new market ventures, the company can rely on the popularity and experience of its subsidiaries and its suppliers to gain more customers and build better customer relationships and in so doing, improve the procurement approaches implemented by Toyota when making products available to its customers. The in-house approach will ensure that members of staff are selected from within the organization to take care of procurement[6]. The mixed sourcing will result to the production of better quality products which will go a long way in boosting customer satisfaction.

References

Ayears C, (2018) “Outsourcing vs insourcing: Getting procurement right for your business” Bis   Henderson Recruitment,  retrievced from, https://www.bis-hendersonrecruitment.com/outsourcing-vs-insourcing-getting-procurement-right-for-your-    business/

Dudovskiy J, (2012) “Supply chain management in Toyota Motor Corporation” retrieved from,             https://research-methodology.net/supply-chain-management-toyota-motor-corporation/

Marquis A, (2019) “The difference between outsourcing and insourcing” retrieved from,             https://smallbusiness.chron.com/difference-between-outsourcing-insourcing-32400.html

Toyota, (2019) “Toyota company profile” retrieved from,    https://www.supplychain247.com/company/toyota

Whitelock J, (2002) “Theories of internalization and their impact on market entry” International Marketing Review, retrieved from,           https://www.emeraldinsight.com/doi/abs/10.1108/02651330210435654?journalCode=imr

[1] Ayears C, (2018) “Outsourcing vs insourcing: Getting procurement right for your business” Bis Henderson Recruitment

[2] Marquis A, (2019) “The difference between outsourcing and insourcing”

[3] Whitelock J, (2002) “Theories of internalization and their impact on market entry” International Marketing Review

[4] ibid

[5] Toyota, (2019) “Toyota company profile”

[6] Dudovskiy J, (2012) “Supply chain management in Toyota Motor Corporation”

Good Managers Do Not Always Make Good Decisions

Introduction

A manager is someone who is in charge of running a whole business organization by delegating and assigning different duties and tasks to people.  A leader, on the other hand, is someone who motivates people or workers and colleagues towards achieving an outlined goal using strategic methods. Therefore, a leader is driven by being original and having the interest of both workers and the company targets by effectively communicating and inspiring the colleagues.

How Managers and Leaders Complement Each Other and Decision Makers

In many areas, leaders and managers depend on each other to see the targets set achieved however different approaches they may use. Managers and leaders both have the same end goal, to make the profit and help in the growth of a business. Leaders always develop original innovations by challenging the status quo trough asking the questions how and why do the right thing for the business organization and colleagues. Managers, on the other hand, take upon visions set by the leaders asking themselves how and when the set goals are to be achieved by controlling how workers should fit into the system and structure.

Leaders come up with the work plan and the steps on how to achieve the set goals while leaders follow the outlined steps making leaders decision makers as they lay out the approach to be developed to attain the set goals.

In The Modern World

Leadership and management still go hand in hand and co-work to motivate workers and achieve the goals at a much faster rate (Huxtable-Thomas, 2018).Though knowing and understanding the strength of the colleagues, leaders can master the best potential and maximize the growth of the organization

It is not feasible to separate management and leadership for they highly depend on each other. A leader who cannot manage is bound to undone due to lack of technical knowledge and incompetence. On the other hand, managers who cannot lead are bound to lose the confidence of the co-workers and subordinates.

Decision-Making Model and Challenge

Decision-making model is the criteria used to arrive at a notable and good resolution for the business. The first step is to experience the situation as much as possible to from people directly affected about the decision that needs to be solved. The second step is analyzing the condition that the change might bring. The third step is implementing the decision which needs to happen on time for it to start taking effect. This model was used due to the effectiveness and the deep consultations it requires.

Several challenges come along with making a new decision. One is non-acceptance by the subordinates, especially where they will strongly be affected by the decision. The second challenge I faced was incorrect timing where the time was not right, and the changes came too soon without expectation of the subordinates. 

These helped in shaping of the organisation and future decisions by having the knowledge that for an effective decision to work on both the workers and the business, consultations and time considerations must be given a priority.

Huxtable-Thomas, L., & Hannon, P. (2018). The Role of Entrepreneurial Leadership in City Region Economies: A Case of Developing Small Firm Leaders. In Entrepreneurial Learning City Regions (pp. 155-179). Springer, Cham.

Business plan

Week 1 case study 1

 Case Study #1: Can GameStop Survive with Its Brick-and-Mortal Stores?

 Perform a five forces analysis of the online gaming industry. What are the implications of the five forces analysis for GameStop?

Competitive rivalry- the rivalry in the gaming industry is high since there are so many competitors who come up with new ideas and different products (Roy, 2009). This means that the company's margins and profitability will be affected. However, the company can increase product differentiation and expand the market to overcome the intense rivalry.

Supplier power- there are many suppliers in the gaming industry and this means that the supplier power is high and they have a dominant position in the market (Roy, 2009). This means that gaming industries can deal with various suppliers. This is a disadvantage to the GameStop since its profitability will be affected. However, it can increase profitability by selecting the most efficient and dedicated supplier.

 Buyer power- in the gaming industry, buyers have high bargaining power and consider prices, discounts and offers when purchasing goods and services. This will also affect the GameStop's profitability but the industry can tackle this challenge by innovating new products and provide discounts and incentives in order to increase the customer base.

 The threat of substitution-the gaming industry power and profitability is weakened by the substituted goods from other companies. This indicates that the GameStop's profitability will be affected but it can address the challenge by focusing on quality services, identify the customer need and meet the needs and provide them with switching cost.

 The threat of new entry- there is a high force of new entrants in the online gaming industry.  However, the high rate of new entrants is an indication that the GameStop will benefit from innovation (Roy, 2009).  New entrants bring challenges such as more competition but GameStop will manage these challenges by reducing cost, innovate new products, develop economies of scales and build capacity.

What role have information systems played in the five forces you identified?

 Industries use five forces to create a competitive advantage through factors such as cost and quality. The information system has played a significant role in that it has enabled the industry to employ the competitive strategy or rather the five forces (Rainer & Cegielski, 2011).  With information technology, the industry can now create a strategic goal and increase productivity. 

How has GameStop used information systems to compete more effectively?

The information system has helped GameStop become an information-based industry and the company has used the information system to view the internet and learn the digitized information such as the internet applications, and business activities related to operations, distribution, marketing among other business strategies (Rainer & Cegielski, 2011).

What other strategic actions will GameStop need to take to protect its business?

In addition to the use of the information system to create a business strategy, the company should focus on quality services to increase choices and convenience. It should also focus on relationship building, peer exchange and increase its online presence by developing video games competition with other players and teams.

Week 1 case study 2

Case Study #2: The battle for Net Neutrality

 What are the strategic interests of carriers? What are the strategic interest of websites?

The strategic interest of carriers is to promote network infrastructure and provide internet users with the best services. The strategic interest of websites is to connect customers with business and build and maintain communication between organizations and customers (Roberts, 2019). 

How do the interest of carriers differ from interest of websites? What are the implications for websites from a value chain perspective?

  The interests of carriers differ from the interest of websites in that the former focus on expanding its financial markets through providing internet services while the former focus on marketing communications where friends, families, customers, and firms can exchange information regarding goods and services. From a value chain perspective, websites add value by providing customers with business information regarding the pricing, products, advertisement, real-time feedback, promoting, and customer self-service and real-time services (Roberts, 2019).

What is the basis for Verizon’s lawsuit against the Federal Communication Commissions? Why did it claim a violation of free speech?

Federal Communication Commissions (government agency) passed net neutrality regulations and approved that the internet service providers should not charge the internet users, and added that all people should access internet without discrimination.  Verizon, an internet service provider, filed a lawsuit against FCC for violating free speech arguing that the agency does not have the regulatory power (Roberts, 2019). Verizon argued that the internet service providers have the right to properties and right to charge the users.

What are the relevant considerations on the role of government could play to resolve differences between carriers and websites?

  To resolve the case, the U.S court should consider the role of government in protecting the internet subscribers and user privacy and the role in creating transparency rule and regulating commerce.

Week 2 case study 1

Case Study #1: Mobile Payment and the Digital Wallet

 What are the potential benefits of this technology for consumers? What are the potential benefits for retailers?

 Potential benefits of mobile payment to customers include, managing finances, convenience and security as people do not carry cash and the ability to check balances and buy tickets such as airline tickets.  Retailers also enjoy the benefits of the mobile payments since they can provide real-time demand and meets the customers' need at any time (Taniar, 2009).  Retailers also generate revenue since the consumers will pay instantly in point-of-sale terminals and they will and returning customers since the process of purchase will be easier.  Retailers will also reduce the cost that could be incurred using a credit card terminal.

What are the risks for consumers and retailers? What are some ways that these risks could be overcome?

Retailers may suffer from the risk of fraud since the increasing opportunity will create a room for criminals to engage in cyber threats. Retailers are also expected to comply with federal regulations and failure to comply may lead to penalties (Taniar, 2009).  Customer may suffer from theft of the physical device, malware infection, and loss of personal data especially when criminals access financial network. Since security is the main threat to both consumers and retailers, some ways to overcome the security risks include the use of the virtual private network, use multi-factor authentication and biometric methods to unlock the device (Taniar, 2009). Retailers should also ensure safety to the payment solution by implementing security technology to track the behaviors of the customers.

How could this technology affect the telecommunications and consumer banking industries?

 The mobile payment has undermined the effectiveness of telecommunications and banks since many people have adopted the new payment method. The bank and telecommunication are suffering from lack of profitability due to a reduction of return on investment.  Since the mobile payment has brought convenience and security than traditional methods, banks are losing their customers due to inability to meet customers' expectations and demand (Taniar, 2009).  Banks are also spending a large amount of the discretionary budget in order to adjust to the changes.  Telecommunications Company are also forced to increase customer base, and they are unable to adapt to these changes and to compete with the new service providers.

Do you believe this technology would work in the United States? Why or why not?

  The mobile payment will not work in the U.S since Americans use credit cards and as they compare credit cards with mobile payment, they prefer to use a credit card since it offers security against fraud and users receive incentives and benefits.  Americans do not see the value of switching to the new method due to security and privacy issues (Taniar, 2009).  Mobile payment is not offering added value and special offers and its services are inconsistent since it is a new method in the financial market.

Week 2 case study 2

Case Study #2: Linkedln: The Social Network and E-Marketplace for Professionals

  Linkedln does not rely heavily on targeted advertising but generates revenue from other services. Identify other sources of revenue that Linkedln uses and explain how each contributes revenue.

Other sources of LinkedIn revenue include: Talent Solution line- LinkedIn connects recruiters with network users and with the connection, companies are able to select and recruit talented professionals. Linkedln's marketing solutions- LinkedIn connects companies with customers and with the connection, the companies are able to advertise goods and services and users can understand the company's goal. Premium Subscriptions- customers pay a certain amount of money in order to purchase the company's goods and services according to personal interest (Meyerson, 2010).

What are some of the advantages for college students to use Linkedln?

  LinkedIn provides students with professional development by helping them find job opportunities, stay connected and gain business skills. 

 What are some of the advantages and benefits to Microsoft in the acquisition of Linkedln?

Microsoft benefits from the purchase of LinkedIn since many people use LinkedIn and this means that they will get access to Microsoft Office products.  Users will boost the growth of Microsoft business due to the connection between Microsoft and Linkedln.

Describe how Microsoft could integrate its products with Linkedln to provide great value to Linkedln customers?

Microsoft and LinkedIn will connect people in a single platform through the use of Microsoft Cortana. Users in both platforms will communicate, access information, collaborate and more importantly build a solid relationship thereby providing users with a great advantage.

WEEK 3 Case study 1

Case Study # 1: Telepresence Robots Support Remote Collaboration

What are the benefits of telepresence robots for a company?

 Telepresence provides faster connections, improves workers collaboration and face-to-face interaction by connecting workers in the office and those who are outside the office (Lopez, 2014).  It also improves everyday activities by eliminating travel costs.

What are the limitations of telepresence robots?

 Telepresence robot has limitations in that it not does perform physical labor, it needs corporate security systems, and it also requires special skills and good office condition in order to operate the robot (Lopez, 2014).  Furthermore, it does not offer quality social interaction due to lack of body cues.

  How does the use of telepresence robots compare with traditional video conferencing?

There is a big difference between telepresence robots and video conferencing since the latter is more advanced and contains clear pictures, quality sound, quality HD video, clear audio, and directional cues. It allows end-user opinion and it does not require hand-held devices.  On the other hand, video conferencing has poor connectivity, poor video, and audio.  Users cannot interact effectively due to unclear pictures and inability to perceive body language (Lopez, 2014).  It is also difficult to operate video conferencing due to its complex structure.

In what other settings might telepresence robots be applicable?

Telepresence can be used in other settings such as health care system where physicians can interact with patients. Education institutions are also using telepresence to connect school children with teachers where they ask questions and participate in learning (Lopez, 2014).  Hotels managers are using this technology to communicate with tourists.

References

 Roberts, K. (2019). Net neutrality. Greenhaven Publishing

Lopez, P. A. (2014). The robotics divide. London: Springer.

Meyerson, M. (2010). Success secrets of the social media marketing superstars. Irvine, Calif.:

Entrepreneur Press.

Rainer, R. K., & Cegielski, C. G. (2011). Introduction to information systems. Hoboken, N.J:

John Wiley & Sons.

Roy, D. (2009). Strategic foresight and Porter's five forces: Towards a synthesis. München:

GRIN.

Taniar, D. (2009). Mobile computing: Concepts, methodologies, tools, and applications.

Hershey, Pa: IGI Global.

 As a new business enterprise, entering into the market is not an easy task and building a solid reputation with loyal consumers at a firm’s disposal remains an uphill task. Therefore, Green clean decision to sell EPI’s firm is a wise and strategic move that would see it push up its sells easily from the moment it opens its doors for business.

Business is a journey and it takes the wits and smarts of a businessman to run a new business successfully from the ground up (Hawkins, & Mothersbaugh, 2010). In terms of Green Clean selling EPI’s products in its business, space means that they are liable for anything that might transpire during business. For instance, if the products are faulty, they might share the blame among themselves and this may affect branding capabilities of the business. In the end, the market will associate their name with that of the EPI merchandize and mechanisms of doing business.

The internet offers a wide stage for selling products and free market tools in various social media platforms such Facebook and twitter (Morgan, Katsikeas, & Vorhies, 2012). Effective selling involves covering a wide range of location and making outreach convenient and the internet is the only platform that can offer such as vast outreach into ‘unmarked market territories’.

 Even though Green Clean sells EPI products, it should take time and explore other market options on how they can curve a loyal customer base on various levels of the company (Morgan, Katsikeas, & Vorhies, 2012). It is critical for Green Clean to have branding that is free from EPI’s influence and association. Product liability relies heavily on EPI and Green Clean can shoulder the blame to some extent but this does not outweigh the full benefits of selling their products.

References

Hawkins, D. I., & Mothersbaugh, D. L. (2010). Consumer behavior: Building marketing strategy. Boston: McGraw-Hill Irwin.

Morgan, N. A., Katsikeas, C. S., & Vorhies, D. W. (2012). Export marketing strategy implementation, export marketing capabilities, and export venture performance. Journal of the Academy of Marketing Science, 40(2), 271-289.

                                     Motorcycle shop business plan  

Q1. Demand and Supply Essay Question:

1. Please consider those factors which could influence the demand for your product. Consider actual changes and projected changes.  You should investigate and consider relevant factors, at the following levels:

International level - The demand of a product is what is perceived as being the driver of economic growth. In order to improve profits, always business struggles to increase demand its products. Economically, the factors that affect the demand of a product are always the subject of investigation in the strategic and marketing management as well as in micro-economics. As a result of that, the amount of money that potential investors have and willing to spend on the company’s product and international suctions are the one which influences both the international demand as well as the business opportunities (Ball & Seidman, 2012). The growing standards of living, rising economies, and the increasing westernized lifestyle also have the capacity of driving the demand of the company’s products.

National level - As far as the demand for the company’s products is concerned, it implies that an increase in consumers’ income is the one which will impact the amount of goods demanded. Ideally, when the income of the consumers decreases, a fall in demand of the products will be encountered. Likewise, change in preferences also results to the changes in demand.

State level - At the state level, it implies that the size of the market the company will have is the one which will negatively or positively impact demand. For instance, in case the size of the population increases, it means that the number of people demanding such products will increase and vice versa (Cai et al., 2017).

Regional/local level - At this level, the general decrease in the price of the existing initially manufactured product has the potential of negatively impacting its demand and vice versa. This will also affect its demand curve as the price the product will be sold at will depend on the price at which it will be sold after manaufacturing.

1. Please consider those factors which could influence the supply for your product. Consider actual changes and projected changes.  You should investigate and consider relevant factors, at the following levels:

International level- When the price of a product changes, basically, the quantity of that product to be supplied will also change. Ideally, this is the movement along the product’s supply curve. At the international level, the price and the quality of the products manufactured by other international market will negatively impact the amount of products to be supplied by the domestic producer. For instance, in case price and quality of the products manufactured by the domestic producer is high and of low quality, less of it will be demanded hence reducing its supply and vice versa (Ball & Seidman, 2012). The supply will also be affected by technological advancements and other international suctions or restrictions imposed.

National level- at the national level, the size of the population, substitutes, and the number of competitors in the industry is the one which will affect supply. For instance, with the increase in population implies that there will be an increase in the number of consumers demanding that product and vice versa. 

State level – Economically, the goals of business organizations entails profit maximization. This is to imply that when the production cost of the company’s product increases, it will hinder supply because of the low profits to be generated. Wage rate, the price of inputs, state regulations and taxes, and so on impacts production cost hence impacting supply either negatively or positively (Cai et al., 2017).

  Regional/local level - the number of suppliers of such a product impacts the quantity of the product to be supplied by the company.

1. Although it can be difficult to anticipate the magnitude of potential impacts on the future Supply and/or Demand for your product, please provide a summary view of the combined impacts on the demand and supply for your product.

The law of demand and supply suggests that when the demand of a product increases, its supply also increases and vice versa. Economically, the future price of the product is the one which will impact its equilibrium price. In case the management authority desires to hike the price of the product in the near future, it means that only few buyers will have the potential of purchasing it. Other than the existence of other sellers in the market, if the company anticipates supplying more units, it is important to consider understanding the choices and preferences of the customers. Moreover, other than altering its price, it is important to increase the price until the equilibrium price have been obtained (Mark, 2013). The idea here entails balancing its consumer demand with product supply.

Q2. Elasticity of Demand Essay Question:

While determining the exact elasticity of demand facing your product or service is not possible without specific pricing and sales data, it is also not essential for utilizing the general concept of elasticity of demand.

1. Utilize your understanding of the determinants of Elasticity of Demand to state whether you believe the demand for your product or service is elastic, or whether it is inelastic.

A product that has several substitutes has the potential of having a higher elasticity. Therefore, since the product seems to have a higher percentage of consumers spending their income to purchase it, it means that it will have a higher elasticity. Considering that this is a durable product, longer price changes will hold hence maintaining its elasticity. Other factors affecting its elasticity include the nature of the commodity, number of uses, range of prices, and joint demand (Graham, 2013). Since currently these factors have the potential of drastically changing the quantity demanded as it prices decreases or increase, it means that its demand is elastic.

1. How strongly elastic (or inelastic) do you believe the demand for your good or service is? Please support your answer. 

As the law of elasticity suggests, a product is perceived to be elastic in case the amount of that commodity demanded changes drastically as its price decreases or increases. As the current market condition indicates, the potential consumers of this product will opt to purchase it in case its price is low. The reason for that is because this is not a necessary product that consumers will crave for. As a result of that, in case its price is anticipated to increase in the near future, there will a decrease in the quantity demanded (Taylor & Houthakker, 2010). Likewise, in case the price of the company decides to decrease its price, there will be a decrease in the quantity demanded.

1. Discuss which specific determinants of elasticity of demand were the basis of your answer to part one, and how they apply to your good or service.

Consumer income – consumers’ income have the potential of affecting the elasticity of demand of a commodity. For individuals with high income, it means that it will keep on making its demand to be elastic. The reason for that is because the decrease or increase in its price will not induce a drastic on the quantity demanded of such a product. Likewise, for those individuals with low income, its demand will still be elastic because the rise and fall in its price will also have a significant impact on the quantity to be demanded by such buyers (Graham, 2013). That suggests that when the price increases the demand decreases and vice versa.

The proportion of income spent – the amount of consumers’ income usually affects the elasticity of demand of a product. Therefore, this implies that in case the product will be consuming a large percent of the consumers’ budget, it will make it to have a higher elasticity. Such a higher cost for the product will ultimately make consumers to pay a close attention to that product and opt seeking for substitutes (Taylor & Houthakker, 2010). On the contrary, the demand for the product will remain to be elastic in case it represents a considerable amount of the consumers’ budget.

1. How could the elasticity of demand you determined in part one impact your pricing decisions? Hint: This addresses the relationship between elasticity of demand and total revenue.

As the law of elasticity of demand suggests, when the price of a commodity increases, potential consumers will end up buying less of it. When the price of the same commodity decreases, consumers will utilize that opportunity in buying more of it. Because of that, in case the management authority acknowledges that its demand is price elastic, then it implies that the fall in its price is the one will result to an increase in total consumer spending hence increasing producer revenue too (McEachern, 2017).

1. Is there any potential for you to influence the elasticity of demand for your good or service? Why might you want to? Please explain.

The price elasticity assists in measuring the changes in demand of a product in reaction to the changes in its price. Therefore, the rationale here entails first understanding what other producers charge for the same product in the market. The reason for that is because it is the one which assist in determining to what percentage the price of the product will be reduced to so as to enable consumers purchase more of it  (Graham, 2013). In so doing, there is the potential of its elasticity of demand which in return translates to the increase in the total revenues to be generated from it.

Q3. Market Structure Essay Question:

There are four types of market structures which we addressed in ECO 251 - Principles of Microeconomics: Pure competition, monopolistic competition, oligopoly, and pure monopoly. 

1. Which type of market structure does your good or service most closely align with? Please support your answer by addressing those characteristics which distinguish these market structures, and how they apply (or don’t apply) to your good or service.

Pure competition – in our market structure, all producers sell homogenous commodity. They are also price takers implying that each producer does not have the potential of influencing their product’s market price. The market share does not influence the price of the product. Potential buyers have perfect information about the commodity as well as the price charged by each company (Kolmar & Hoffmann, 2018). Economic resources, for instance, labor and raw materials are perfectly mobile. Likewise, the can either opt to enter or exit their industry without incurring any cost.

1. How does your awareness of the market structure you’re operating within impact your pricing strategies and your decisions regarding advertising?

In pure competition, the high profit a firm makes is only possible in a short period of time. Despite that, the market dynamics are the ones which will assist in canceling out the impacts of negative or positive profits. Therefore, in order to enhance the marketing strategies of this product in this market structure, it is important to take into account the forces of demand and supply so as to achieve its equilibrium price. Due to the fact that this market does not have information asymmetry, it is important to rump up the company’s level of production. To boost its advertising strategies, it is important to come up with non-competitive means of ensuring that the product’s information has reached the potential market (William & Alan, 2015).

1. Would you prefer to be in a different market structure? If so, which one, and why?  Are there any realistic steps you could take to move towards a more advantageous market structure?  Please explain.

No. the reason for that is because in the long run, adjustment in demand and supply of the commodity assist in ensuring that losses or profits made will tend towards zero. For instance, there will be the need of taking advantage of the absence of the economies of scale in the market. The limitation to zero profit margins implies that other firms will not be able to expand their manufacturing capabilities because of little cash to invest. Equally, it is important to take the opportunity of those firms that exit the market and expand the firm so as to enjoy more economies of scale (Norman, 1979).

1. What role, if any, could economies of scale play in your business operation?

The economies of scale occur when larger outputs are linked with low costs per unit of product manufactured. The internal economies that firm will be enjoying will mainly enable the firm increase its scale of production. External economies will enable the firm to make independent decisions regardless of the actions other companies will take (Norman, 1979).

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                                                References

Ball, M. K., & Seidman, D. (2012). Supply and demand. New York: Rosen Pub.

Cai, J., Leung, P. S., & Food and Agriculture Organization of the United Nations,. (2017). Short-term projection of global fish demand and supply gaps. Rome : Food and Agriculture Organization of the United Nations

Graham, R. C. (2013). Managerial economics for dummies. Hoboken, N.J: Wiley Press

Kolmar, M., & Hoffmann, M. (2018). Workbook for principles of microeconomics. Springer Press

Mark, A. M. (2013). Demand and Supply Integration: The Key to World-Class Demand Forecasting. FT Press

McEachern, W. A. (2017). Microeconomics: A contemporary introduction. Cengage Learning Press

Norman, G. (1979). Economies of Scale, Transport Costs and Location. Dordrecht: Springer Netherlands.

Taylor, L. D., & Houthakker, H. S. (2010). Consumer demand in the United States: Prices, income, and consumption behavior. New York: Springer Press

William, J. B & Alan, S. B. (2015). Microeconomics: Principles and Policy. Cengage Learning press

1

The value proposition of Quartz to the plumbers

            May 2001, Aqualisa manufactured the Quartz shower, an efficient product that had a potential to meet the needs of the market (Tim, 1). The company was sure of the ability of the Quartz shower to perform better than products in the same category.

 In terms of its design and simple installation methodology, the product proved modern and helpful. More so, the Quartz shower had its own pressure systems, customizable features and a variety of settings to suit and meet plumbing standards with ease (Tim, 4). Therefore, plumbers can make more profits when they install and refer the Quartz shower to consumers, other factors such as pressure and temperature come with the shower, and it is not up to the plumber to make amends.

Economic value to the user

Aqualisa took almost three years and an estimated 5.8 million developing the Quartz shower. Yes, the shower was worth the investment due to its incorporation of technology and friendly design. Examinations revealed that users found the shower useful and meaningful in their lives (Tim, 6). Currently, users do not have enough information and insight about the product hence making it hard to utilize it fully and realize their money’s worth. From my standpoint, the product was worth the time and money and through good marketing strategies and awareness, potential clients can test the product and ascertain the worth and later create demand after experiencing the efficiency of the product.

 Features of the shower remodeled and rebranded to meet specific market demands and enhance performance. The targeted consumers were in three groups hence the branding had to take three forms in order to persuade the potential clients (Tim, 10). Therefore, this is the reason the Aqualisa rebranded so that its target audience can so its value and buy the product.

2

Reasons for Quartz shower sells are low

 The reasons for low sales vary but to begin with, the shower supply depends on plumbers for marketing and referrals rather than use conventional means of marketing the product directly to their consumers (Tim, 4). Most of the times, the plumbers are reluctant to accept and push new products into the market.

 Secondly, the sales networks and promotion tasks were little. Based on the organization’s records, the company spent 2.7 million on marketing hence; the advertising was not effective enough to bring out results (Tim, 11). In fact, the company displayed the products in show rooms alone rather than going an extra mile and spreading the product far and wide in relevant places. Apart from show rooms, the company used trade shops and sheds, not any different from showrooms. In summary, product failed to have a wide outreach on relevant platform.

Things Rawlinson need to rectify to improve sales

Altering the market strategy would give room to new ideas, which would facilitate construction of better marketing strategies pushing the sales up. More so, Rawlinson can use the three brands of the company to penetrate different markets rather than just coming up with a new strategy.

Target

 In terms of target, he should focus with consumers directly. DIY are ineffective when it comes to creating an edge above other competitors but targeting consumers gives a company the ability to market their product as they see fit(Tim, 7). In addition, Rawlinson should not lower the price rather let users experience speak for itself. Lowering the price would indicate lack of confidence in the worth of the product.

Reference

Tim Pestell. Aqualisa Quartz: Simply a Better Shower. Havard Busines School, 2001

Advanced Strategic Management

Question A: Industry Evolution and Strategic Change

Apple Inc. is popular for its consistent investment in innovation when compared to its well-established competitors. Without a doubt, Apple Inc. is the most successful company in the Technology industry which commands more than third the profit across the entire industry. Apple’s success is credited to its first mover advantage. In other words, Apple represents the world’s leader in terms of innovation and profitability. In other words, it is not challenging for the company to dominate the market it invented on its own. The firm has for decades showed its efficiency and dominance in embracing technology and developing high-end innovative products which aligns with the needs of the modern society. Since the establishment of the corporation, it is evident that technology serves as a strategic plan for enhancing and maintaining its competitive advantage. With the development of the iPhone and its highly customized Applications store, the company has created a challenging smartphone network for the competitors which is difficult to imitate. The invention of its products such as iPhone transformed the manner in which tech companies and consumers thought with respect to innovation and perspective of smartphones, and the company held one huge advantage when launching the innovative product because it was the first of its kind.

According to Dustin, Bharat and Jitendra (2014 p.1) the tech industry has become intensely competitive over the last couple of years due to the domination of established companies such as Apple, Samsung, and Sony and so on. Thus technological innovations are the strategic plan that is being used across the industry to gain as well as sustain competitive advantage. With the rising changes, in consumer preferences, technological advancement, and globalization Apple has embraced innovation as its survival tactic an aspect that its competitors are following closely in the recent. The company boasts of being the first mover in the industry as it has disrupted not only the industry but also developed a new perspective of what innovation entails. Apple relies on socio-environmental trends as well as technology changes to enhance its general ability to implement disruptive technologies particularly innovation. First mover advantage with respect to Apple refers to the commitment made by the firm to make some rather crucial decisions with regard to product development and operational strategies in the early industrial development stages. Actually, Apple as the first mover of innovative gadgets has established a fresh foundation throughout the industry where others are following (Babkin, Lipatnikov and Muraveva, 2015 p.40). The company is normally the first to recognize emerging trends in relation to portable gadgets and develop satisfactory products that meet the needs and technological preferences of the consumers prior to all its competitors.

According to Kenney and Pon, (2011 p.240) Apple is successful in achieving the first-mover advantage in the tech industry mainly with regard to electronics and personal computing products. Some of the dominant characteristics of its products include unique design, innovative and customized software and operating system as well as innovative features such as high pixel cameras. The company was the first to develop a modernized MP3 player that overweighed all the other bulky and less innovative products that offer the same services. In addition, with the revolutionary trends in the industry at the beginning of the century, it became the leader in the integration of cellular devices with the internet connection. This has thus created an utmost level of uniqueness and prestige for the firm as more and more customers are demanding for technological and yet convenient and user-friendly products thus the competition is driven by quality and prices (Purkayastha and Sharma,  2016 p.139). Even though the company produces high-end products, its market share has significantly expanded globally over the last couple of years due to its consistency when it comes to innovation. Innovation and sustainability have thus played a crucial role in ensuring that the company retains its competitiveness as the innovation leader.

The successful adaptation of technological change has been useful for the company in promoting invention as its competitive advantage foundation. Based on the Resource-based View (RBV) model, it is evident that resources availability is the source of Apple’s superior performance and ability to remain innovative (Grant and Jordan, 2012 p.12). Apple has numerous intangible resources that contribute superiority of its strategic technique. In that, its consistent success over the years has enhanced its brand image across the globe not just as an innovative firm but also a leader when it comes to quality and embracing socio-environmental trends. This has also boosted its reputation since it has gained loyalty from its customers who normally use the products. It is worth noting that today, the success of any given firm regardless of its size is dependent on the ability to meet the growing needs and technological preferences of the consumers. Through, the consistency in addressing the needs of the market Apple benefits from customer loyalty since it is highly trusted in the development of reliable products as a whole. The brand image that it has developed over the years serves as one of its most valuable assets to the company thus aligning with its focus of incorporating technology in all its developments (West, Ford and Ibrahim, 2015 p.32). In addition, unlike its competitors, it takes time to innovate a product, and thus it has not experienced issues related to the development of defects products.

Figure 1: Resource Based Competencies

The of the company's most essential aspect lies in the recruitment and retaining of capable staffs with the quest of sustaining innovation given that skilled and innovative staffs are highly required in guarding its competitiveness in the market. In addition, this helps in encouraging consistent workflow which ensures that its operating expenses are rather lower to accommodate the needs of the ever-evolving technology. The company maximizes these resources as its strength to overcome the intensifying Competition in the market (Coccia, 2018 p.41). The company mainly demonstrated this strategic approach during the leadership of Steve Jobs whose main focus was to disrupt the market for the advantage of the company. In that, the company acknowledges that the development of a different software remains to be its leading strength. This is because the differentiation of its products and competencies have created a unique image to the company which has, in turn, emerged to be a source of its competitiveness in the market today. In this context, it is evident that the differentiated capabilities are the aspects that make the firm when aligned and equipped in fighting competition (Kull, Mena and Korschun, 2016 p.5554). Thus, when compared to all the other products in the market that are produced by its competitors iPhone has emerged as highly successful based on its uniqueness, innovation and ability to meet the growing needs of the users.

The smartphone industry is in the maturity life cycle since the demands for the products such as iPhone has gradually decreased over the years. This is reflected by the prevalent controversial debate that Apple has hit the rock when it comes to innovation since the exit of Steve Jobs. There has been less focus on innovation which is indicated by the rising competition and dominance of other firms. As illustrated by the graph below that the demand for the iPhone operating system, when compared to Android, has decreased drastically.

In that, the company has not disrupted the industry since given that its technology remains the same. This can best be illustrated by Porter’s five model. In that, with the increase of more affordable and yet innovative products the bargaining power of the consumers has increased rather drastically. In addition, the threat of new entrants is medium which implies that affordable products are dominating the market more. The domination of well-established firms has also contributed to the intensity of competition throughout the market. The company, therefore, lacks the needed innovation to retain its competitiveness as an aspect that is likely to affect its stability in the future as imitation is increasing rather drastically which has also fueled the existing competition.

Question B: Global Strategy

Coca-Cola is the world’s leading company in terms of market share, profit generation, and competitiveness. In the business landscape today, competition is rather high, and it is therefore essential for any given brand to poses more than a single source for its competitive advantage. It is rather surprising that Coca-Cola has been able to maintain its competitiveness over the years despite the rapidly changing preferences and demands in the beverage sector. However, its dominance over competitors such as PepsiCo has illustrated that durable and maintainable competitive advantage is only achievable with the existence of a few competencies. The fact that Coca-Cola is an American based corporation has not equipped the company with a competitive advantage, but its strategic focus has been rather beneficial. Each brand in the business industry today is struggling to attain a leading position and the ability to develop and maintain a competitive advantage is more crucial than any other operation (Menon and Yao, 2017 p.1954). In this case, Coca-Cola is the global leader when it comes to the production of non-alcoholic drinks. However, its popularity is grounded on a number of vital competencies rather than its American origin since PepsiCo would have benefitted from the same.

Coca-Cola boosts of its high presence in the global sector which has also been a major competence over the years. Its brand name and global presence are therefore the keys to its competitiveness. The company has established itself in more than two hundred countries with the aim of increasing its presence and recognition. This has made its name very recognizable beyond the American borders. It is worth noting that in all the countries where it is present it does not market itself as an American firm but strategizes on meeting the growing needs of the consumers based on their preferences and differences (Gillespie and Riddle, 2015 p.14). Its brand name is also an essential competence that has facilitated increased dominance and competitiveness throughout the market. Its image is highly linked to the young people given that it depicts youthfulness as well as energy. This is a vital capability which demonstrates that the brand is highly appreciated by youths across the globe. However, the products are enjoyed by individuals of all ages as it ensures that it offers different flavors to meet the needs of each segment in the market. In this context, the company has built a reputable image that is highly trusted and enjoyed by most individuals. Its high presence across the globe implies that it enjoys higher revenues than any other firm in the industry which supports its domination.

An additional competence rather than the American origin is the extensive supply and distribution system. Based on its vast resources the company has an established supply and distribution system which ensures that the products are delivered in a timely manner to all the consumers throughout the market. Its strategic approach mainly involves the development of bottling partners, and this also helps in the distribution of the products. The company understands that with the intensifying competition, increased, substitution and buyers high bargaining authority there is a necessity to work closely with its customers (Mcgrath, & Gourlay, 2012 p.54). Thus, it relies on vendors who interact directly with the consumers. In addition, the company is focused on creating as well as guarding more enhanced and long-run relationships with the respective suppliers. In achieving this, the company has created strategic initiatives to assist suppliers as well as farmers in addition to empowering communities.  Investment in human resource and marketing competencies have also been key in its competitiveness. The company is popular for its skilled and unique marketing abilities globally which allow consumers to connect best with all that it offers in general. In addition, the company believes that employees are very valuable to its success and works to retaining and recruiting the best to guard its competitiveness.

Coca-Cola is globally celebrated as the leader and manager of diverse global brands but on its differentiation strategy (Sharp, 2016 p.19). Besides marketing the company is able to strike a balance between global integration and national differentiation. Due to its entrance in different countries where the culture and language aspects differ from that of the American society, Coca-Cola mainly relies upon producing products that meet the demands of a specific population. Consumers are likely to different posse preferences, demands, and experience with a product based on their location and cultural assertions. Thus, the company normally amends its strategic focus to ensure that it taps the market regardless of their differences which is also illustrated in their differentiated marketing and branding. The effectiveness of the company in the integration and regional products differentiation is without a doubt supported by the existence of an authoritative competitive advantage as well as extensive market share in the markets as a whole.

International corporations are always challenged by the need to maintain originality and lawfulness in different national borders. Thus it is a common strategic approach for the organizations to amend their business approaches when expanding their operations to the international market in responding to the diverse preferences and demands as guided by cultural and regulatory expectations (Sharp, 2016 p.19). The natural culture consists of underlying beliefs, perceptions, and values of a given society that influence an individual’s behavior and expectations. Thus, the existing differences in any given national culture normally determine the level of adaptation that is needed by the firm to facilitate effective business. In addition, the company works to ensure that it guards the assured quality, convenience and affordability of the product as a means of upholding its brand image.

The ability of the firm to balance global integration and national differentiation can best be explained using Porter's five forces model. In that, the company faces competition from the local and international beverage firms in the respective market which thus forces them to strategize on how to overcome competition. Thus, the company operates by assuring its customers of providing tasty, convenient and affordable products, unlike its competitors. This is also supported by the fact that it has a large finance source and supply system which works to ensure that the needs and preferences of the consumers are met in a timely manner (Mcgrath, & Gourlay, 2012 p.54). Its strategic approach also makes it rather difficult for new entrants to survive in the market because the company on its own offers large supplies that are based on socio-cultural aspects and trends. For instance, in the recent, the company has developed a sugar-free beverage with the intention of satisfying the needs of the consumers who are conscious about weight and unhealthy products. This also shows that the power that is held by its respective consumers plays a part in shaping its strategy.

Figure 2: Porter’s five forces – Coca-Cola Company.

Coca-Cola is a customer-centered corporation that focuses on meeting the needs of the consumers, and therefore it customizes the products based on what they are demanding which entails the differentiation system. Diversity is also key since it ensures that the needs of all its consumers are addressed without fail (Sharp, 2016 p.20). Diversification is essential due to the growing availability of substitute products which appears to be taking a significant share of the market. Most of the substitutes are cheap which has continuously required the company to design its prices based on the economic status of each nation. Therefore, in the developing nations, the prices are a bit lower than those of the developed ones who seek to attract more buyers while maintaining loyalty. These aspects contribute mainly to the development of its competitive advantage, sustainability, differentiation, and global integration.

Question C: The Future

Apple Inc. remains to be the global leader in the technology industry. However, since the industry has reached maturity where sales reduction and market share are common characteristics the company needs to integrate other strategy actions in securing its competitiveness. Brand imitation has been quite high, and the company is no longer capable of guarding product’s design unique and innovative. Most established companies in the industry such as Samsung are currently producing goods of the same level, and the corporation might not, therefore, retain the competitive advantage for long. Post the exit of Jobs it appears as though the use of innovation to disrupt the market weakened and the competitors are slowly expanding their presence in the market. It is without any possible doubt that rather than being an innovative leader the ability to achieve sustainability by dominating the market is essential in the running of the multinational company. With reference to Porter's five forces model, it is clear that competition is intensifying in the beverage due to the low threat of entrants for new companies and the availability of substitution. Thus, it is suggested that the company should adapt product diversity as one of the strategic action in preserving competitiveness.

Figure 3: Porter Five Model – Apple Inc.

For the longest time, Apple has been producing a few models per year which are credited to its focus on innovation. However, while the lifecycle of its products is long, the competitors are launching a variety of products annually which further threatens the stability of Apple in the market. By investing in diversity, this, therefore, means that the company should not only produce more products within a short time but also to produce diverse products that meet the needs of the low class and high-class individuals (Kenney and Pon, 2011 p.342). In this context, the company is mainly involved in the production of high-end products which is reflected by the small market share that the company occupies when compared to the competitors. It is rather clear that those within the high-class group is smaller and  thus integrating the group with the middle and low lass segment would be useful in expanding the market share of the company. Due to the increasing demand for innovative and affordable products, more companies are offering products that meet the needs of these people. Thus, the longtime cycle for developing the product is also driving more and more consumers to buy products from the competitors. Consumers are becoming quick adopters to technology and Apple is not able to meet this demand. In addition, it is worth noting that the companies are providing the product of related designs and innovative as well.

Thus, the company should integrate diversity and differentiation. Most companies in the tech industry are using cost leadership as the strategic approaches in overcoming the intensifying competition. However, since Apple spends so much on innovating products and thus the approach would mean that the company would suffer major losses that would also affect the competitiveness of the company. In addition, this is essential in preserving the ability of the company to sustain its competitiveness as well as meeting the increasing demands and ever-changing preferences. It is not very correct to assert that the company is likely to retain its competitiveness over the years since its competitors are becoming highly innovative as they imitate the disruption that the firm created. Based on statistics it is evident that companies such as Samsung are slowly taking over the market due to their consistency in innovating products quickly. Thus, it is justified to say that in addition to innovation the company should ensure that they integrate diversity to tap a larger market share.

References

Babkin, A.V., Lipatnikov, V.S. and Muraveva, S.V., 2015. Assessing the impact of innovation strategies and R&D costs on the performance of IT companies. Procedia-Social and Behavioral Sciences, 207, pp.749-758.

Coccia, M., 2018. Disruptive firms and technological change.

Dustin, G., Bharat, M. and Jitendra, M., 2014. Competitive advantage and motivating innovation. Advances in Management, 7(1), p.1.

Gillespie, K. and Riddle, L., 2015. Global marketing. Routledge.

Grant, R., Jordan, J., 2012. Foundations of strategy. Sussex: John Wiley & Sons

Kenney, M. and Pon, B., 2011. Structuring the smartphone industry: is the mobile internet OS platform the key? Journal of Industry, Competition and Trade, 11(3), pp.239-261.

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 Decision to outsource for UK firms

Outsourcing has been a portion of the main diet of business actions in UK for a very long time. UK has started to outsource a considerably superior section of service actions and products than they did two years ago (Oulton, 2001).Every corporation today sees outsourcing as the strategy of increasing their revenues as well as growth. China has a strategy that they use to encourage outsourcing, that they call ‘dumping’. This is whereby they capture they capture the market and destroy competition of particular products by providing products that are of much cheaper prices. As a Neomercantilist state, China greatly discourages imports and it does this by controlling capital movements and centralizing currency decisions in central government’s hands. It is this aspect of cheaper products that have continued to appeal more firms in the UK to get their products made in China.

Outsourcing creates flexibility for firms, ensuring that they gain supreme application of the accessible assets within the business. It also offers these firms the cost benefits and thus helping to free up their administration assets. Ross, (2011) supports outsourcing for UK companies illustrating that it helps these firms to be more focused because time management is one of the most important resources for a firm, when a procedure has become effectively contracted out, the administration gets more actual time to endeavour and search other areas of the business and this helps advance the operation of the business.

This is further supported by Griffith (2003) who indicates that in traditional settings, 80% of the time was sent managing details while the other 20% was spent on planning and customer relations but these ratios have been reversed with outsourcing hence improving productivity for the firms. Outsourcing creates the room for the firms to be able to explore new technologies that can be useful for their businesses.  Rubin (2009) supports this illustrating that, China is greatly known for its advanced technology which has greatly helped to improve their services to the international companies that seek their services. Outsourcing greatly helps the UK firms to gain 24hrs development cycle with the workers in China working round the clock. This helps the firms to get more production at cheaper rates and this helps in increased revenues for the firms (Griffith, 2003). Manufacture of products in UK is more expensive as compared to China. A good case example is that of a branded T-shirt that retails of 25 Euros, the cost of manufacture for this T-shirt in China is 4.24 Euros which is inclusive of everything. The same T-shirt made in UK costs around 8.85 Euros which almost double the cost in China (Hills, 2017). Outsourcing as explained by Dolgui et al., (2013) lowers costs and encourages competitiveness. The cost of reductions that stems from this process leads to lowered cost prices and hence the increase for demand. This process can hence be used for employee benefit in the sense that workers can produce more per 60 minutes hence driving up actual pays. Oulton (2001) supports this point indicating that two thirds of the monetary welfares from contracting out fall back to UK. The economic benefit is mainly experienced with the low prices in goods and services which lead to expanded markets for the UK goods and hence increasing the profit for the UK firms.

Impacts on the employment and labour in both China and UK

• UK

The biggest concern in regard to outsourcing within UK has been about job losses. Bhagwat et al., (2004) illustrates that the gains from the increased trade especially when it comes to outsourcing are scattered across the entire populace of UK but the damages are concentrated on a moderately small fraction of the population. There are employees that produce services which now firms bring in cheaper from China and this means that they get displaced, meaning that they end up becoming jobless. These employees that lose their occupations due to competition are forced to retrain and even relocate trying to find another job which is not always easy and it greatly affects the economy (Bhagwat et al., 2004).

Outsourcing of services and products from China has led to great job losses in UK because when the firms outsource services, they get cheaper labour and they hence do not need the human resource from the people in UK Kraciuk, (2017). In the years between 2001 and 2004, many high tech firms in UK shed off about 500,000 jobs which led many people to become jobless (Lewis, 2018). The saddening part of job loss due to outsourcing is that it is permanent with the fact that outsourcing is continuing to increase. Wages have also been greatly affected, back in the year 2002; the wage was around 450 Euros as compared to the 350 euros which is the average UK wage (Lewis, 2018).  The wage has greatly decreased with the increased outsourcing by the firms that do not see the need to pay high wages when they can get the same products and services from China at a cheaper price.  The few people that are left employed in the business service sectors are hence forced to struggle with reduced wages as an effect of outsourcing. The UK workers are forced to compete and settle for lowered wages instead of risking their jobs to Chinese workers through outsourcing

• China

China has approximately 1.3 billion people and this makes China the most populated country in the whole world. Having so many people means that there is a large supply of workers and this leads to low wages to help accommodate all the workers in the job market. The majority of the Chinese are rural and lower middle class and they are always willing to do more than one shift for low wages just as long as they have job (Belgman, 2017). It is this supply of workers that makes China on of the greatest destination for outsourcing for firms from the developed nations such as UK.

Graph showing the compensations rates for workers in China (Belgman, 2017)

China does not really have any strict laws when it comes to matters of human resource or even matters of low wages or even child labour as compared to the West where such matters are greatly observed. This has greatly contributed to the increased employment of children in the factories because they are willing to take lower wages as compared to the adults (Kraciuk, 2017). The costs of compliance to health and safety regulations and also environmental regulations in China are less as compared to the UK. The Chinese government imposes very few health and safety regulations, workman’s compensation and insurance are not provided. In China when a worker gets hurt on the job, he or she is not compensated even if it is to the point of one getting disabled which is really inhumane (Belgman, 2017).

Chinese companies constantly short change the workers’ wages; they withhold their health benefits and expose the workers to harmful chemicals like mercury and lead. The Chinese workers in most companies especially in Hong Kong often break and lose their fingers as they are working using dangerous machineries without any form of protection. It was estimated that over 40,000 fingers are broken and others lost by Chinese workers on the job every single year (Barboza, 2008). The workers have to live in dormitories that mostly include six people with shared bathrooms, and they have to work 12 hours a day and six days a week meaning that they only get one off day to visit their families and rest.  In the year 2007, many factories in China that supply corporations such as Disney, Wal-Mart and Dell among others were accused of un fair labour practices and this included child labour, low wages and over work on the employees without extra pay (Kraciuk, 2017). The western companies greatly contribute to these poor working conditions because they constantly press the Chinese suppliers for low prices without considering the cost of production and this force the Chinese suppliers to look for ways to manage the production with the low costs and it negatively impacts on the workers.

The problem of Chinese workers getting treated inhumanly is serious especially with the fact that the effort to try and improve labour conditions for the workers is hampered. The human rights defenders are often persecuted and the freedom of expression in China is gurgled with censorship, unfair trials and anguish (Belgman, 2017). There are more than five human rights activists that have been detained and others go missing while investigating matters of unfair labour in Chinese factories that produce products for firms in developed nations like UK.

Overall impact of outsourcing on welfare

Outsourcing has a negative impact on poverty, happiness, crime, alcohol and substance use and family life among others related to standards of living. The lowered wages have a great effect on the standards of living for both the UK and the Chinese residents. Amiti & Wei, (2004) supports this illustrating that, with lower wages, they are not capable of affording the recommended life standards which hence forces them to cut their consumption hence a lowered standard of living. Lack of enough wages to acquire basic needs leads to increased crime rates in both China and UK as people to try to get more money to make up for low income (Ndubisi et al., 2018).

The people in China though offered jobs, are forced to work under inhumane conditions without any protection from the government. UK outsourcing to China impacts negatively on the Chinese society (Ndubisi et al., 2018). A society that is constantly forced to work extra hours without pay just so that they can meet the large demands of the West Companies that do not bother about the conditions that their products are manufactured in.

Environmental effects of outsourcing for China

Greenhouse emissions in the 21^st century have greatly increased most especially in the developing nations as compared to other decades and this is attributed to be a result of outsourcing. Since the year 2000, China has seen increased carbon dioxide emissions which are a result of production of export goods for countries like UK (Barboza, (2008).

Graph comparing CO₂ emission in China and the rest of the world (Stoft, 2015)

Although there are some environmental protection agency that creates the policies to deal with environment protection, the laws created are generally ignored and never enforced most especially at the local levels which has greatly contributed to China being one of the countries that is most polluted. Chinese companies have the advantage of not dealing with their waste products and they just dump any products into the air and the water ways without considering the effects that these wastes have on the environment and the society at large. Barboza, (2008) illustrates that over 750,000 people die every year in China as a result of pollution as indicated by World Health Organization.

The developed countries such as UK are partially responsible for the environmental degradation in China with their choice to outsource from there without considering the effects hat their outsourcing has on this host country. These firms in UK choose China because of the reduced cost of production that come as a result of China not having rigid policies that ensure that productions within the country are done effectively and do not adversely affect the environment and the people.  As a client in China, the UK firms have the rights to understand the process that is taken to deliver completed products from China to UK and this means understanding the working conditions of the workers as well as where materials to make the products are acquired and the manner in which waste is managed (Hills, 2017). Developed countries such as UK need to understand the implication that outsourcing is having on the Chinese workers and look for ways to ensure that these workers are fairly remunerated and that they are working in good conditions in order to enhance quality of the products produced.

Ethical implications of UK outsourcing to China

Although outsourcing is a good venture for businesses, there are some ethical implications that are associated with it especially when it comes to matters of safety and healthy work environments for the workers as well as the quality of goods and services provided. The reason why UK opts to outsource from China is because the country has lower living standards which mean that laws on safety, wage and health are not as strict as those of UK (Rubin, 2009). These low living standards and the non-strict laws attract UK firms because it allows them to cut costs and save billions without violation of Health and Safety Executives (HSE’s).

‘Sweatshops’ is a terminology that has often been associated with China, where the country has been accused for providing unsafe and unhealthy work environment for their workers (Ndubisi et al., 2018). Sweatshops is a term that defines the outsourcing manufacturing facilities in the developed countries where the employees receive low and unfair wages and are forced to work in poor conditions. (Greene, 2012) supports this illustrating that, there are three attributes that are associated with sweatshops and they include; long working hours, below minimum wages, risky and unhealthy working place conditions. Many firms within UK have strict and very specific policies on anti-sweatshop practices, outsourced China suppliers still operate these facilities and they are at times savvy in regard to hiding these illegal practices even to their corporates clients (Dolgui et al., 2013).

Workers working under unhealthy conditions in China can lead to poor health and in worse case scenarios to deaths of the workers. A good case scenario that happened in China was in the year 2011 where Foxcon’s factory that is located in China as accused of providing high stress environments for its workers which led to most of their employees committing suicides (Greene, 2012). 18 workers from Foxcon committed suicide in the year 2010 by throwing themselves from the top buildings as a result of poor working conditions and low wages which helps to establish the effects that poor working conditions in China has on the workers. The company was also accused of hiring underage workers most of them students that are not protected under the employment law. China employment and labour law of 2016 illustrates that all employees are protected under the labour law except retirees and for the university students that are yet to graduate (Rubin, 2009). This then gives the outsourcing suppliers a chance to manipulate students by giving them lower wages because they are then not liable for their welfare as employer.

As Belgman, (2017) illustrates, by UK firms outsourcing from China, they allow for the exploitation of the employees there while they celebrate as they acquire more profits from the cheap labour that they get. Employees are the most important resource for a business and if they are not well taken care off in regard to good remuneration and safe working environment, then their output is not as good (Ross, 2011).

References

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Belgman, K. (2017, June 08). What You Need to Know About Labor Conditions in China.

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