Organizational Commitment and Millennial Retention

Organizational commitment has been shown as a very important bond that links an employee to an organization, and indicates the extent of an individual involvement in the operations of the organization.  Organizational commitment involves an emotional attachment by the employee and it has a significant relationship with the performance of a firm in terms of sales and turnover. The emotional attachment involves the employee’s consideration of the costs that a given employee associates with leaving the current employee and the perception of obligation not to leave.  This especially true for the millennial generation whose demands and expectations at the workplace are quite unique. Any organization has to reevaluate the conventional workplace and embrace the right adjustment so to retain these people.

Organizational commitment can be employee involvement and satisfaction at the workplace, where the employee has to feel concerned about the welfare the firm including its success in terms of achieving the set goals.  People who are highly involved are able to achieve top performance which also acts as booster to their self-esteem (Franco & Lyapina, 2016). The effectiveness in performing various responsibilities and being involved in decision making process enable the employee to achieve personal development in terms of career and professional. This increases the level of job satisfaction for employees and thus their desire to remain in the current workplace. The job satisfaction enhances the employees’ level of commitment and ensures that they remain in the organization.  In for an organization to engage employees and retain the best talent, it has to understand the degree to which the workers are attached to their workplace (Lee & Jamil, 2016). As the environment becomes more competitive, there is an increased need for a workforce that is highly motivated, willing and ready to take up more responsibility and achieve better performance (Gupta, 2014).

Organizational commitment among the millennials can also be related to their expectations, and establishment of team relationship through effective communication.  The preferences of this generation are significant for interaction at the workplace and constant feedback from the management. Close relationships and   more feedback through open communication even for issues that are reserved for top management are expected at the organization level. Organizational commitment among the millennial can be best achieved through teamwork since this generation teamwork as fun and are careful to avoid any risks. Strong relationship can bring about job satisfaction and this finally leads to organizational commitment among the millennial employees. The organizational openness among the employees especially in work related issues can indicate their strong attachment to the workplace and this can lead to enhanced problems solving which has an overall impact on the performance of the firm (Myers & Sadaghiani, 2010).  Millennial find great comfort and work satisfaction where there direction, decision making and insight are achieved through teamwork. Their perception is that team work members help in avoiding risks that are commonly associated with independent decisions and thinking. Therefore, organizational commitment among the millennial is not only derived from extrinsic rewards and appreciation but also on intrinsic rewards (Myers & Sadaghiani, 2010).  Increased performance in the organization will be achieved when the millennial workforce is greatly satisfied due to improved relationships and open communication. Eventually, team work will be achieved which proves very important especially in risk avoidance. Uncertainty affects the employees’ satisfaction and commitment which can results to more turnovers, and this can greatly affect the performance of the organization.

 The overall attitude of employees is determined by their level of job satisfaction and hence, organizational commitment which in affects the success of a firm in terms of revenue generation by the sales persons and profitability (Franco & Lyapina, 2016). Organizational commitment relates to various important outcomes like employees going past what is expected of them, reduction in turnover intent and even reduced degree of absenteeism.  Organizational commitment among the employees means that they are fully motivated to carry out their tasks and their productivity is high.  An organizational with highly committed employees who feel that they can achieve career development and achievement at their workplace is able to achieve its organizational goals and objectives (Franco & Lyapina, 2016). Lack of organizational commitment means that employees are disengaged from the organization and this can lead to poor performance in terms of revenues and profitability.

Recommendations

In order to enhance long-term commitment and retention, the organization has to have various strategies. Motivation will go a long way in encouraging millennial loyalty especially in relation to rewarding good work through the ability to try out higher positions. Such an opportunity will enable the employees to grow and establish conditions in which they can come up with new ideas using their past experience. The organization may also increase flexibility since millennials are keen on seeing new things and desire enough time to accomplish individual goals alongside the objectives of the organization (Ozcelik, 2015).  Training is an important way in which the employees can be retained in the organization. Training offers opportunities for career development since it enhances skills development since employees want to control their professional development.

References

Lee, B. H., & Jamil, M. (2016). An empirical study of organizational commitment: A multi-level approach. Journal of Behavioral and Applied Management, 4(3), 1074.

Gupta, A. S. B.(2014). Job involvement, organizational commitment, professional commitment, and team commitment: A study of generational diversity.

Ozcelik, G. (2015). Engagement and retention of the millennial generation in the workplace through internal branding. International Journal of Business and Management, 10(3), 99.

Franco, A., & Lyapina, L. (2016). Work-Related Factors that Affect Organizational Commitment: An Examination using Millennials in the Workforce of Thailand. International Journal, 33.

Myers, K. K., & Sadaghiani, K. (2010). Millennials in the workplace: A communication perspective on millennials’ organizational relationships and performance. Journal of Business and Psychology, 25(2), 225-238.

Topic: Workplace diversity

Patrick & Kumar (2010) explore the issue of workplace diversity and assert that people within the organization have a variety of differences in terms of personality, race, age, education, sexual orientation, socio-economic status among other ideologies.  These differences or diversity play a significant role in eradicating discrimination, promoting togetherness, enhancing performances, fostering mutual respect and increasing adaptability (Patrick  & Kumar, 2012).

  However, diversity requires good management since the culture and personality differences may bring conflicting ideas and clash of approaches.  Thus, the organization should manage diversity by valuing the differences and similarities to help employees gain self-development, increase performance and nurture creativity.  In managing diversity in the workplace, managers should understand the barriers to diversity such as prejudice, harassment, discrimination, stereotypes and more (Patrick & Kumar, 2012).  By understanding the barriers, managers will plan and implement the best strategies that will help employees build relationships, and work as a team to achieve organization goals.

             To manage diversity, the organization should create a diversity program that identifies the employees' needs and creates training and mentoring programs for the purpose of strengthening employees' behaviours (Patrick & Kumar, 2012).  In addition to creating a diversity program, the organization should create a culture that supports and increases workplace diversity.  Managers should know that there is a linkage between diversity and culture since the former does not only focus on valuing the differences but it also increases collaboration where employees share experiences regardless of sexual orientation, ethnicity, age, gender and more.  To promote diversity, the organization should create a culture of inclusion to allow employees to develop a sense of belonging and work in an environment where their differences are valued (Patrick & Kumar, 2012).  The authors affirm that in the future, diversity will increase and for this reason, organizations should take immediate actions and be ready to spend resources in order to manage diversity.

References 

Patrick, H. A., & Kumar, V. R. (2012). Managing workplace diversity: Issues and

Challenges. Sage Open, 2(2), 2158244012444615.

Retrieved from: http://diversityfirsttoolkit.org/wpcontent/uploads/2015/07/Managing_Workplace_Diversity_Issues_and_Challenges.pdf

Reflection Assignment

 Reflection 1

Q1.

            The promotion and sales internship has provided new experiences, lessons, skills and new attitudes that will help in the future. First, the internship has provided new skills in the field of sales and promotion, work-life balance, interpersonal relationship and how to present myself professionally while I am the real estate industry.  The new skills that I have gained are communication- real estate job requires good communication in order to negotiate effectively and make   honest dealings.   Through internship, I have gained experience and knowledge   and negotiation skills. Collaboration- our task as real estate agents was not only selling properties to the buyers  but we also  worked as a team  in understanding their needs,  finding suitable properties, helping buyers make decisions and giving them feedback. I have also learned how to manage work-life balance by creating boundaries between work and personal things. For example, clearly communicated my working days (Monday-Friday) and office hours (8am-4pm) to the clients to make sure that I balance the work schedule and personal time.   I also set realistic expectations   to work hard toward the goals while valuing health, family and friends. I have developed a positive attitude toward the job and organizational members to achieve my goals. I have gained a positive attitude that in   the real estate industry, I can manage time, I can communicate effectively, build and maintain relationship with clients and be successful in this field.

 Q2.

In the internship, I have experienced communication obstacles since my English ability is not good.  Sales and promotion of real estate require effective communication to persuade and convince the customers to purchase properties. However, I could not communicate plain language, I could not respond emotionally, I was not empathetic, I could not use specifics such as anecdotes, I was not genuinely curious, and I was not persistent. These challenges affected me since I did not meet my expectations and priorities and I could not complete the project professionally.  The potential clients were also confused and dissatisfied, and they could not purchase the properties.   However, I was able to overcome all these challenges by engaging in advanced language training, taking enough preparation, understanding the cultural norms in the local community and learning some words, expressing emotions and using body language and gestures.

Q3.

            I am not happy with some of the workplace culture, and I feel like there is a need for change to drive performance and higher sales of the properties. I have identified some areas that need change and these include; the financial performance is poor since the profits keep on falling simply because when conducting a comparative market analysis, the agents could not offer a reasonable value to a particular property. To solve the financial issues, the organization need to focus on the culture especially on the employee engagement.  The latter means that sales agents need to be monitored, educated and provided with a team spirit rather than working alone. I believe that if employees are empowered, connected to work and supported, they will focus on performance and collaborate to achieve common goals. Second, there is a lot of blame game or a blaming culture in the organization.  For example, managers could always  argue that  the real estate business  is not successful simply because the agents  are  unreasonable,  they  fail  to advertise  in the newspaper and such kind of blame.  In short, managers and workers do not accept or tolerate the mistakes done, and they end up blaming each other. There should be a new culture that encourages the organization members to develop a positive mindset and integrate real accountability to achieve the goals. I also feel that the workplace setting would be more comfortable if the organization hires a great team who have a positive attitude, purchase comfy chairs, improve the lighting such as installing blue-enriched light bulbs, improve communication by motiving employees, giving them positive reinforcement and involving them in the decision-making process.

Q4.

 In the sales and promotion internship, we applied theory and concepts in marketing. For example, we applied the theory of planned behavior which states that professionals should predict the behaviors, attitudes and the subjective norms of the target audience. Before we entered into the sales and promotion of real estate, we evaluated the attitude and behavior of the target audiences toward the ‘real estate,' and we were able to convince and persuade them to purchase the estates. The second theory that was applied was the relationship marketing theory that focused on creating value for customers and increasing customer retention. As sales professionals, we did not focus on sales alone to make the success, but we focused on building a continuous relationship with customers through after sales services such as fulfilling   their demand requirements, providing them with payment receipts, conducting minor non-structural alterations, and providing post-delivery services such as maintaining the project with respect to the sale agreement. We also applied the concept of the marketing mix that stated the properties (land and buildings), the place where the potential customers could find the properties, the price and the promotion (we used promotional events and live presentation of the real estates). There was no difference between theory and practice because the doctrines that we learned in the classrooms were applied in the real world. Thus, the theory corresponded with the practice or in other words we applied what we had learned in the real world.

Q5.

            The new insights that I have toward the sales and promotions of real estates as a career choice are that I have the opportunity to enter in the real world and look for a job since I have gained valuable experience. The internship has also provided a valuable insight since I have made sales and promotion my right career choice. I am now in a position to share my skills and experience with real estate owners and the potential customers as I land a new job. I will also develop a professional network and utilize the knowledge gained in portraying professional behaviors.

Q6.

 The things that I need to accomplish in the next four weeks to make this internship the best experience are; find a mentor and develop additional responsibilities. I will look for a mentor who will help in setting goals, making career decisions and solving difficulties. I would like to have a person who will share his knowledge and expertise, provide career advice, improve my skills and help me climb the career ladder. In the organization, I will also identify the office needs and request the managers to allow me to work on the projects so that I can further my education. Third, I want to stay connected and maintain the relationship with the real estate industry and other real estate agents.

Reflection 2

Q1.

 The tasks and activities that I am undertaking in the internship are purposeful as they are providing real-world insight and are building valuable business networks. For example, I have created a new connection with real estate agents and my advisor and both will provide work-related advice in future. The internship is purposeful as it has equipped me with interpersonal skills. For example, I have developed a strong sense of work, I schedule time effectively, and I have gained a lot of knowledge that helps in persuading real estate buyers. The experience has also helped in building customer-relationship management by understanding the target customer's age (37-51years), preferences (single-family home), and gender (married couples). The internship has also prepared me in entering into the real world by understanding and appreciating diversity and respecting different viewpoints without discrimination on the basis of sexual orientation, color or sex. As I continue with sales and promoting as my career choice, I will adhere to  ethical and legal  principles such as fair housing,  value the client’s interests,  provide  the  buyers with full disclosure and be  honest and respectful. I will build professional relationships since I have gained interpersonal and intrapersonal skills and solve problems.

Q2.

The internship is providing support and opportunities to interact with the mentor,  real estate agents, and  real estate buyers  through communication. In other words, internship has improved my soft skills such as problem-solving skills, communication, and positive attitude, valuing teamwork, adaptability, and collaboration. For example, through improving communication skills, I deliver the message effectively, build connections and interacts with people. Collaboration also gives an opportunity to interact with team members and customers where we develop positive attitudes, value each other views and share knowledge and experience. We also get the opportunity to make decisions together and to solve problems whereby asking questions, listening to others and thinking critically to arrive at the conclusion. In general, the soft skills gained in the internship fosters relationship and interaction.

Q3.

There is a big difference between the workplace culture in the internship and the culture that we used to have in the classroom. This is because, in the classroom we used to learn together, encouraged co-creation, we valued diversity, we had strong relationships, we learned social skills, we adhered to school rules, students received positive feedback from teachers, we worked as a team, we valued ethnic backgrounds, and  there was an ‘inclusive' curriculum.  Generally, all students in the field of business and management understood cultural differences and developed a sense of identity. We enjoyed studying in culturally responsive classrooms and being in an environment that acknowledged diversity. Cultural awareness helped us in valuing teamwork, collaboration, adhered to real rules and fostered healthy interactions, interacted with others and solved the problem together. However, the culture in the place of work has not been good since I learned that there was no communication, managers could not recognize real estate agents but rather they kept on blaming for mistakes, favoritism (managers could applaud some agents and ignore others desire hard work), a lot of cliques, resistance to change (resisting to   increase or decrease price with respect to demand and change the structure of the buildings) and lack of transparency. However, the organization has changed the lousy culture and developed a positive culture by communicating the values, vision, and behaviors, setting strategic priorities creating involvement and engagement, and rewarding good behaviors. This adjustment or the cultural change has brought benefits in the real estate industry since agents have increased performance.  The positive cultural environment has motivated real estate agents in working as a team, solving problems together, sharing experience and improving efficacy.  Agents are more committed, and the turnover is low. It was not an easy task to adjust the culture, but it has been made possible through communication- communicating where the real estate industry wants to go, evaluating the current culture, the mission, vision and values for the future and engaging agents in creating change.

Q4.

 My mentor plays a significant role in sharing professional knowledge and answering questions relevant to the field of sales and marketing of real estates. I have a genuine interest and willingness to learn more and gain professional development. My mentor is committed, and he manages his time to make my life productive and successful. At the beginning of the internship, my mentor invested more time (holding meetings two to three days a week), but currently, meeting once a week. When we meet, I ask him questions related to his life experience including challenging situations he encountered so that I can learn from the experiences. I also inform him about the workplace problems I am going through, and he provides individual skills which asset in meeting my work expectations. Since we plan for specific goals together, he creates a training session where I gain the skills and knowledge needed and improve my areas of weakness. Meeting with my mentor provides me with a valuable experience since he helps me overcome the obstacles and more importantly gaining confidence and personal growth.

Q5.

            In various cases, we applied the theory and knowledge learned in the classroom in the internship. I had the opportunity to test the things I learned such as the fundamental of marketing. In specific, I applied the concept of user-centered approaches which means that as sales and advertising agents of real estate, we focused on promoting superior and efficient properties. In addition to this, we had high-quality photos of the real estates and created Pinterest boards containing the images and benefits of the area. We also advertised the properties through social media accounts such as Facebook and Integra.  In addition, we did not only focus on promoting the property, but we also valued our potential buyers by providing them with a great experience. We evaluated the customers' needs, demands, and values and we created a strong relationship to maintain the profitable customers. I also had the opportunity to apply administration skills such as collecting customers' data with the aim of planning for communication strategy, understanding the different customers' expectations, understanding the customers' experience and building relations. We worked with the marketing representative in conducting research based on the real estate competition and making changing to boost sales. In the classroom, we learned the importance of communication such as building relationships, informing the clients about the property, ensuring sufficient operations and delivering brilliant ideas. In the real world, I had the opportunity to have face-to-face interaction with the clients and business partners.

Q6.

My core interest and goals of sales promotion job in the future is to plan for promotional campaigns, select the media to advertise, conduct market research, understand the market opportunities, create pricing strategies, interact with potential customers, offer technical advice and hire marketing staff. The internship has ‘fit' with my goals and interest since, in the real world, I have gained valuable experience through applying the knowledge and theory into practice. In other words, I have interacted with peers and marketing representatives in creating a marketing plan, planning campaigns,  advertising the properties in the social media, conducting marketing research and interacting face-to-face with the potential buyers. Through this experience, I have learned that I can communicate effectively, inform and persuade the clients to purchase the property. This has been made possible by the experience I have gained in the real world through the internship.

Consulting - best practices

 Phillips, Trotter & Phillips, (2015) introduce the application of V model in the consulting project.   The V models focus on both objectives and needs assessments in the consulting project. In other words, the Needs Assessments Tool used in the consulting project include five levels of needs and objective. The first level is Payoff needs and ROI objective. In this level, the organization evaluates the problem that needs a serious consideration. The organization may have various problems affecting the operations and strategy and it highlights all the problems and comes with a clearly identified need to solve the problems (Phillips, Trotter & Phillips, 2015).  After evaluating the payoff needs, the business enters into the return on investment objective level where it considers monetary value. The business creates a rough estimate of the projected cost and compares it with monetary benefits. The second tool or technique for needs assessment in the consulting project is the business needs.  In this level, the organization reviews the records and reports to evaluate the operating performance and determine the key issues that affect the business and connect the consulting project to these issues (Phillips, Trotter & Phillips, 2015).  The third technique is the performance needs. After evaluating the business needs, the organization finds the root cause of the problem such as inappropriate technology, ineffective systems, dysfunctional behavior and more. The organization collaborates with the consulting team to implement problem-solving techniques such as data collection through interviews and root-cause analysis to find out the root cause of the problems and offer solutions (Phillips, Trotter & Phillips, 2015). The fourth level is the learning needs where the workforce requires knowledge acquisition and formalized training to implement the new process.  The last level is the preference needs which deals with measuring different values and perceptions for project implementation (Phillips, Trotter & Phillips, 2015). The organization evaluates the differences and values the specific preferences.

In the Need Assessment Tool, the experts say that the organization should look for organization needs by employing various methods such as finding internal and external partners who would help make a quality decision, find data from different sources such as documents, focus groups, interviews and more and define the needs.  In addition, the organization should look for causal factors and actions needed to solve the problem (Kaufman, Oakley-Browne & Watkins, 2003). It should measure different solutions and activities that can be applied to achieve the desired results.  In general, the organization should use the Need Assessment Tool to look for a problem, offer the right solution, and take a proactive approach to implement change, share meaning and develop commitment. 

 I would recommend the organization to take the following measures in determining the Need Assessment Tool. First, the organization should set a strategy. This involves coming up with goals and strategic policies, decisions and choices. Second, it should create tactical procedures to define and achieve the goals and objectives. Third, it should create operational decisions that are based on project implementation, tasks and resources needed for project completion (Kaufman, Oakley-Browne & Watkins, 2003). These three types of decisions are important as they will enable the industry to determine the needs that may benefit the organization, the type of programs and projects to be implemented to help the organization and the budget, project milestone and resources. In looking for a Need Assessment Tool, I would recommend the industry to take these measures or decisions since they all work together in bringing success.

References

Kaufman, R., Oakley-Browne, H., & Watkins, R. (2003). Strategic Planning For Success. New Jersey: John

Wiley & Sons.

Phillips, J. J., Trotter, W. D., & Phillips, P. P. (2015). Maximizing the value of consulting: A guide for

internal and external consultants.

Real Estate In British Columbia, Canada

Table of Contents

Abstract 3

Acronyms: 4

Introduction. 5

Validation for the research Question and objective. 5

Research Question. 6

Research Objectives. 6

Review of Literature: Real Estate in British Columbia. 6

The Strength of the Resale Marketing Conditions. 8

Rising in Prices as a result of Constraining Supply Markets. 11

Drivers for Housing Demand. 13

PESTEL Analysis. 15

Political Factors. 15

Economic Factors. 16

Social Factors. 16

Technological Factors. 17

Environmental Factors. 17

Legal Factors. 18

Porter’s Five Forces. 18

The threat of New Entrants. 18

Bargaining Power of Buyers. 19

Bargaining Power of Suppliers. 19

Threat of Substitutes. 20

Intensity of Rivalry. 20

SWOT Analysis. 20

Strengths. 20

Weaknesses. 21

Opportunities. 22

Threats. 22

Marketing Mix. 23

Price. 23

Product 23

Promotion. 24

Placement 24

Ansoff Matrix Analysis. 24

Market Penetration. 24

Market Development 25

Product Development 25

Diversification. 25

Balanced Scorecard. 26

General Objectives. 26

Financial Objectives. 26

Consumer Knowledge Perspective. 26

Learning Perspectives. 26

Recommendations. 27

Reflections. 29

The Prospects for the Future Real Estate Market 29

Conclusion. 30

References. 31

Abstract

Real estate industry has earned a reputation for its resilience in the past few years regardless of economic downfalls. Even though the market has experienced a notable growth competition and other forces such as political, social and technological factors normally affect the stability of the industry. With favorable investment policies in Canada it is evident that the market has much potential that is yet to be exploited. Thus, this report will seek to conduct a detailed analysis of the B.C real estate market. The report will mainly focus on several market model such as PESTEL analysis, Porter’s Five Forces, SWOT analysis, Marketing Mix, Balanced Score Card and Ansoff Matrix.

Acronyms:

B.C- British Columbia

PESTEL- Political, economic, social, technological, Environmental and legal

SWOT- Strengths, Weaknesses, Opportunities, Threats

            Real Estate in British Columbia, Canada

            Introduction

            British Columbia is one of the largest provinces in Canada in terms of economic growth and population. B.C accommodates about 4.6 million persons while most of these people reside in major cities such as Victoria. With the rapid growth rate of globalization as well as supportive policies by the Canadian administration, the real estate industry has been a source of attraction for an extensive attention in the global scale by investors and consumers. The real estate sector has been unexpectedly firm even in the light of tough economic times. Over the last decades the industry has recorded a significant growth which is expected to expand in the next coming years. B.C being the home of diverse investors has demonstrated undeniable real estate potential. However, the market cannot be charged in that manner given there are challenges that are known to be affecting the overall outcome of the business within the external and internal environment. Competition has intensified in the recent as more investors are joining the industry. The study will seek to acquire answers on a specific research question that is; is the real estate a worthy investment in BC, Canada? With respect to the British Columbia, Canada real estate market, the objective of the research is to establish the feasibility of the real estate market, barriers and strategies for overcoming and succeeding in the market.

Validation for the research Question and objective

            Since the research seeks to conduct a thorough analysis on the BC real estate market, the research question will be answered by focusing on a systematic review. In that, data will be obtained from the past studies through a comparative review to gain a clear picture of the market. Thus, it is through secondary data that the objective will be achieved. By assessing the external market this will allow the researcher to determine the feasibility of the market based on several aspects such economic, financial growth and expansion potential. In other words the main is to establish whether the business is profitable and sustainable.

            The study will mainly be using secondary rather than primary data since secondary information is vast and this will help in answering the research question. In addition, through the comparative analysis of this sources, this will minimize any cases of biases since the study will adhere and evaluate past findings. The market is rather broad and given the time limit for the research it is not possible to carry out the research effectively. The targeting of the existing companies is also different and thus small samples might not adequately represent the entire market. The use of secondary data is more reliable and leads to accuracy and quality results.

Research Question

1. is the real estate a worthy investment in BC, Canada?

Research Objectives

1. To determine the feasibility of the market based on several aspects such economic, financial growth and expansion potential.
2. To establish whether a real estate business in Bristish Colombia is is profitable and sustainable

Review of Literature: Real Estate in British Columbia

Housing Market in British Columbia has for a long time remained very resilient and with an economy that is very strong. This has been coupled with relatively low-interest rates besides a high population growth (Teixeira, 2009). The low inventory of the house's sales has majorly contributed to the pressure that is evident in the upward prices. The sales of houses and housing facilities together with the services has been on an upward trend. This has created underlying positive momentum in the economy sector. Metro Vancouver was one of the highest performers in this sector in the year 2018 and a prospective good performance in the year 2019. However, in 2017, the highest market performers in British Columbia were the Okanagan market and the Vancouver Island markets.

The markets north of British Columbia, however, continue to be subdued.  There has been a diagnosis done for the Housing Outlook in the province of British Columbia for the financial year 2017 to the financial year 2019. There have been more stringent regulations, policies, and laws from the federal government (Gill, 2011). However, despite this, there has been a success in the real estate economy which means that the buyers of real estate in the region remain unperturbed by the tighter regulations. The impact of the foreign buyer Tax and insurance requirement for federal claims has been receding for a very long time. On the other hand, there has been a steady increase in the sales which border on the long-term practices. This is in conjunction with the prices for the houses (Teixeira, 2009).

The sales and related conditions seem to be very strong in the southern parts of British Columbia a fact which confirms the historical stance of the region in British Columbia. Additionally, the northern parts have also been seen to be steadily increasing in the real estate economy over time. In fact, there are good prospects for the northern parts even though it has been performing poorly in the past years.

With this upside momentum, there has been a higher revision of the provincial housing outlook. A comparative study done shows that there was a difference between the targeted outcome and the real outcome by a margin of 17 percent in 2016. However, in 2017 this margin reduced by 7 percent down to 10 percent. There was another rebounder to close to a total unit sales of 100,000. The momentum in the prices for the houses will remain on a positive trend majorly because there was a fall in the inventories of the past years. The steadiness in the economy is majorly attributed to Kelowna regions and Vancouver Islands. Metro Vancouver is expected to be among the leaders in the sales and the growth of the economy in the forthcoming years. The major trouble and one that will slow the process of gradual increase in the real estate economy of British Columbia will be the northern parts of the province which have continually proved to be poor performers in the region (Gill, 2011).

Pure price erosion will not drive the provincial resale median price to a dip of 2.2 percent. The key drivers are likely to be the luxury sales in this region, fewer homes that are detached and a shift from Metro Vancouver in the aspect of geographical composition. The influence that these factors have on the prices in the province are likely to fade in 2019 and 2018 which will lead to an increase in the gains by 3.1 and 5.5 percent respectively. The housing starts are likely to be maintained at near 39,000 units in both 2019 and 2018 due to the shortages in the inventories and the demand that is persistently strong. The only lagging had been in 2017 due to the poor performances in the northern regions.

The Strength of the Resale Marketing Conditions

Contrary to the reality, there has been a media focus on the decline in the sales year-after-year. Metro Vancouver has been in the spotlight for a long time which suggests a collapse in the housing market (Gill, 2011). When a historical average is done, the trends have shown that there has been a rise in not only the sales but also the prices in the region. The conditions in the regions that are outside the northern regions of British Columbia has indicated that there is a steady increase in the sales of housing facilities. The contributions of these regions to the general real estate market have been on above-average sales and economic contribution.

High growth in the economy and continued low-interest rates have been one of the significant drivers towards the never-ending demand for housed in British Columbia. The other factors include the desire to own a home, changes in the demographical aspects of the region and high population growth in British Columbia. These factors have even reduced the effects of the mortgage insurance policy and regulations that have been tightened in the region. These changes in the policy are majorly related to the portfolio insurance. The exchange rates of the Canadian Dollar has been low, and several purchases at the international level have done a lot to improve the status. However, there has been a force working to curtail this process. This is the foreign buyer tax which was established in Metro Vancouver with the sole purpose of curtailing the whole process of foreign buying and encouraging local ownership. This has also been coupled with CRA rules that have become more stringent and tougher (Gill, 2011).

There is a preference for an arms-length transfer of titles when used as a measure of resale transactions. However, a photo scan across the province will portray a picture of the current conditions that do exist in the region. The scan will portray the real conditions which are that there are housing hotspots in the region of the Southern Interior parts of the province and the Vancouver Islands (Patterson, 2008). This began from the ages of early 2017 and often go unnoticed. The real estate sales in the regions of Vancouver Islands, particularly in Victoria Capital area have been continually on the rise even though there had been an economic decline from the years of 2016 onwards.

The period which occurred between 2007 and 2004 was the very phenomenon in the real estate sales of the province being that there was an unprecedented high demand (Patterson, 2008). The demand was majorly contributed to by an increase in population growth, the tight and growing labor market, and low-interest rates that are persistent. Okanagan regions and specifically the Kelowna regions did show what can be best described as a cyclic high rise in prices at about the mid-years in 2000. That is at around 2005. The other regions that did register a similar level of increase in the mid-2000s are the Kamloops region in the province of British Columbia. It was at this time that many of the regions that now show a lethargy in the level of sales for real estate and the general economy did very well in these very sectors.

Spillover effects have been attributed to be the major contributor to the 2016 increase in sales activities concerning real estate in British Columbia.  However, due to the interference with the sales in 2016, there has been a general decline in the level of economic activity in British Columbia and the neighboring provinces especially in the lower mainland regions (Patterson, 2008). There has been a trend of various individuals cashing out from the regions known as the lower mainland and looking for newer areas in a bid to escape the higher prices that have been brought about by, the higher prices that are as a result of the taxes and other foreign buying restrictions. The majorly affected members who have been forced to respond in such a manner are the younger households in the province.

It is no news that the real estate economy has been on a continuous downward spiral, with the more significant effect being on the regions of Metro Vancouver among other areas such as, the lower mainland regions (Bulan, 2009). The housing sales in these regions have been worrying and have generally affected the real estate economy in the whole province, eventually overcoming the profits that have been gained in the northern parts of British Columbia. The only thing that could be understood in the sector was the fact that despite the decline in the sales with close to a margin of 10 percent to 30 percent there was no evident crash on the economy as many commentators had anticipated. The only year that could have contributed to the regaining of normalcy in the economic sector was the outstanding performance at the onset of the financial year 2016 which recorded a powerful performance (Bulan, 2009). The sales were lifted to above 20 percent of the regular sales [rice highs. This saw the economic activity regaining a steady stance. It gradually came to reasonable and manageable levels.

The strong sales have often been connected with individual factors such as an improper implementation of the foreign buyer tax levy, the shock that did happen during the decline in the sales, the decreased levels of listings and erosion of affordability. The reduced level of listings was particular to the lower regions of the mainland. In as much as the improper implementation of the policy and regulations about the foreign buyer tax contributed to the increase in sales, it did it only to a limited level. In most scenarios, it only had a temporary if not a slight effect on the outcome in the market. The luxury and the detached market have continuously shown a weaker trend (Bulan, 2009). Specifically for the sales in 2017 about an average of a decade was close to being achieved except for the fact that the population did show a trend which could lead to the conclusion that it was slightly below the population average in the decade.

Similarly, in 2017 there is a pointer towards the fact that the level of the sales was quickly reducing and was coupled with an increasing trend of houses and housing services becoming more affordable. This was primarily contributed to by the fact that there was a shift which was primarily informed by the tightening of the mortgage insurance policies and regulations (Bulan, 2009). The northern parts of British Columbia have a higher concentration of the underperforming markets in the economy. This is a visible pointer towards the stagnation in the market, weakness in the aspect of investment of capital and the challenges in the commodities markets. This weakness, however, has been particularly evident in the recent years (Duranton, 2015).

These challenges are not only limited to Northern parts of British Columbia but have also been observed in Kootenay. The trends, however, have had a lesser impact in the economy of the stated regions majorly because there has been an improvement in some sectors such as tourism and coal mining sector which have primarily contributed to the economy in the recent past as opposed to real estate (Duranton, 2015).

Rising in Prices as a result of Constraining Supply Markets.

Constrained supply has been forced to meet the strong sale cycles that have been experienced in the British Columbia region for some time now. There has been evidence of the collapse of inventories in the regions that have a characteristic large (Duranton, 2015) market.  This is not to say that the collapse is only limited to such regions since as a matter of fact, the collapse in the inventories has also been experienced in regions with medium-sized markets. In more than a decade, the number of active listings has declined to close to the bare minimum in the regions which include the southern interior, Vancouver Island and Lower Mainland regions. Hitherto, there has been no sign that there will be an improvement in the new listings that have been initiated. They have maintained a low listing level for several years now. This contrasts with the fact that there has been an increase in the prices and sales which could be a reason for the increase in the number of sales (Duranton, 2015).

Another particular aspect to note is the fact that there has been a decrease in the number of inventories for the new homes which is a characteristic of the general trend. Despite the increase in prices this type of inventory has also been on a general trend of reduction and is close to its minimum levels.

There are nothing more puzzling than the fact that there has been limited listings (Mian, 2015). It is a matter of the fact that low inventory in the perverse cycle is mostly contributed to by an initial low inventory (Mian, 2015). Prices of housing in Metro Vancouver have become firm after falling slightly in 2016 during the last quarter. This was majorly due to the declining levels of both confidence and momentum in sales levels. There was a record of decline year-after-year. The declines which were majorly reflected at 10 percent, however, did not accurately reflect the market conditions. The detached market, on the other hand, did show some level of affordability on the specific markets. The impact was more significant on the question of foreign buyer tax. There was a decline in the overall price level which made a reflection on several compositional factors (Mian, 2015).

There has been an overall decline in the level of detached homes in the market share to about 35 percent. This is a reduction from close to half of the market share in the recent years. There is a metrics of price which is always maintained at a constant quality. Several benchmarks that have been done in the recent past have shown that there is a rise in the recent months and the revel has returned to the initial level that was initially in place. High local demands have maintained the prices for the hometown and apartments, and they have been in a continuous rise (Mian, 2015). There are low-interest rates, and there are tight market conditions which have been underpinned by relative affordability. These have continuously led to the increase in prices of the houses and residential areas.

Drivers for Housing Demand

Housing outlook has been substantially revised to a higher rate since winter, and this has ensured a good population and economic growth in early 2017. It is coupled with tighter conditions in the market. This literary reflects on the economy of British Columbia since essentially there is a general bid to maintain the moderate pace of expansion in the year 2017 after there was a blockbuster in the same year (Mian, 2015). There is a prospect of maintaining the gross domestic product as a result of real estate. The maintenance will be done from about moderate to about 2.6 percent. This is a reduction of 3.8% that was experienced in 2016. The factors underpinning this is the growth of the sectors that are export-oriented, the rising investment and expenditure by the government and strong consumer demand.

The level of growth is estimated at 3 percent in both 2019 and 2018. The indicating factor is the increase in the rate of employment which has been quite evident in the year 2017. This level of increase in employment was even evident in the other regions which were outside the jurisdiction of the British Columbia. This did happen in the regions which were outside Vancouver. Many factors were pointing towards broad economic growth and gains. In last year alone there was an employment gain of about 3.2 percent which was something that could not be repeated. The growth has been said to be modest and near 2 percent in the period in which the forecasting was done. This consequently led to the lowering of the rate of employment by close to five percent and eventually contributing to the wage momentum (Mian, 2015).

One factor that will continue to increase the profits of the housing sector is population growth which owes its continued growth to the continuous migration that is experienced in the regions of British Columbia. There have also been increased in international gains. Gains in Alberta have been facilitated by the challenges that were faced in Alberta, and to a certain extent, they are similar to the challenges in British Columbia. The strength in the economy alone has led to the attraction of several immigrants who have since moved to British Columbia. The provincial growth is set to converge as the trend will gradually reduce (Newman, 2015). All in all, the provincial growth will remain positive. The segment of retirees will also tend to flow in a westward manner. That is too large urban markets and mid-sized markets.

The other favorable factors include trends in the demographic sector. On the other hand, there are definitions which innately vary with the years that have finally constituted to the millennium. There was a large group that became very interested in home ownership (Newman, 2015). They are those who entered the job market in the recent past. The housing markets that they were used to were those who were initially used by their parents. This is one of the best sources of demand for the real estate sector. However, despite this fact, the population growth of this group of the age 25 to 34 has tremendously reduced between the ages 2010 and 2007. This has been majorly contributed to the fact that there is low international migration. The positive gains in the area have only been due to the steady migration to other areas such as Victoria and Kelowna (Newman, 2015). These two areas have a very high rate of migration and have even overshadowed the fact that international immigration has been at a languid pace. Almost close to none. The rates that are levied on a mortgage will act as a weaker aspect of the housing activities. On the other hand, the posted rates will have broader bond yields. Lower rate discounts will be issued by lenders who will make the effective rates climb quickly to the top. There has been an increase in the cost of funds which has been as a result of the changes in the mortgage insurance policy which has occurred in the recent past. The change that has occurred has been in the insurance portfolio of availability (Newman, 2015).

Borrowers, on the other hand, have had a tight mortgage insurance criteria which were introduced in British Columbia in early 2016. This increased rate of qualification for eligibility for mortgage insurance has had quite less than anticipated effect on the market which has led to the continued increase in prices and demand for urban areas. Smaller market areas are more affordable than the broader market urban areas. These, therefore, are some of the factors that have significantly influenced the nature of the real estate market in British Columbia among several other areas in Canada (Newman, 2015).

Analysis of the Real Estate Industry in BC, Canada

This section provides a detailed analysis of the real estate market in British Columbia (B.C), Canada. This incorporates an overview and review of the existing data concerning the real estate market in the state. The objectives are achieved through the application of various marketing theories to establish the actual state of the industry. The report focuses on several methods which include PESTEL analysis, Porter’s Five Forces, SWOT analysis, Marketing Mix, Balanced Score Card and Ansoff Matrix. The primary aim of this report is to establish the viability of the market based on its current situation by highlighting its strengths, faults, and potentials.

PESTEL Analysis

Political Factors

Political factors serve a significant responsibility in the determination of the forces that generally affect real estate investment as well as profitability in BC. The real estate industry has always been so strategic, but it has also evolved in the recent into a well-organized sector. The Canadian government has developed a real estate regulatory intervention authority for the coordination of regulatory efforts at the federal and state levels respectively. Real estate investments have increased in the recent as the industry is ranked among the top leading industries regarding economic influence. The regulation is aimed at collecting taxes from the industry while creating a balance with the country’s economic vision and directions. The political state in BC is not only stable but is one that generally supports investments from local and foreign corporations (Wisemean, 2011). With the presence of favorable policy and the active government participation in supporting investment, the industry has achieved remarkable growth.

Economic Factors

Technology development and modernization have given rise to intense construction in the urban and rural areas. BC is characterized by a state financial state. Due to the stability of the economy, the income rates have grown significantly in the last decade. There is a notable level of increase for middle-class individuals requiring more modernized housing. Thus, it is the rising income earning as well as the rampant urbanization that is responsible for the present real estate success. In fact, it is accounted that in BC real estate account for more than 10 percent of the state’s annual revenue is one of the industries with the fastest development rate (Wisemean, 2011). However, the increasing inflation rates within the sector are gradually affecting the prices which have led to a decreased growth rate between 2010 and 2015. Besides, the stability of the economy additionally facilitates easy financing options which in turn encourages more investments.

Social Factors

Canada is highly reputed for its possession of educated and well-skilled personnel. The aspect is reflected in BC. The diversity level is also high as the aspect that has been fueled by globalization the reason behind the rising demand for modern housing and real estate services. BC does not expect any scarcity of the expert workforce soon based on the increased populace inflow. BC is guided by the individualistic culture which mainly emphasizes on competition and prosperity. From education to the business sectors individuals are governed by the need to prosper since the culture is not restrictive. The government has reserved more funds for rural housing as part of social stabilization (Gill & Williams, 2011).

Technological Factors

Technology is responsible for the increased disruption that is taking place in various industries and the real estate one is not an exception. Real estate is currently more rampant in the urbanized setting but also slowly getting into other environments. In catering for the modern technological needs several technologies such as mold gathering and cement blowing machines are being utilized for efficiency, speedy construction, quality as well cost saving. Also, technology is being used in the industry as a strategic alternative to the development of competitive advantages (Blazek, 2013). In that, the use of electronic platforms in keeping records and information has been useful in tracking stock and maintaining constant communication with suppliers to avoid delays. Also, the success of the industry’s marketing and awareness incentives has been promoted by technology which helps in attracting consumers.

Environmental Factors

The success and benefits of the real estate industry in BC is being enjoyed by many. However, it is worth noting that environmental degradation accompanies the progress by cutting trees, hills excavation, building materials exploitation such as such leading to erosion and agricultural decrease (Marchak, 2011). Thus, the government is focusing on the general minimization of such effects by encouraging the proper use of resources and guarding natural ones such as trees and agriculture which play a critical role in cleaning the air and feeding people respectively St-(Hilaire, Ragan, & Leonard, 2007). The aspect possesses a threat to the industry since the constructions might be halted in the future.

Legal Factors

Every building necessitates registration and approval from the agencies. The process is always an extensive one since it requires clearance from the landowners and assessment from the government to establish the real practicality of such constructions. The companies must adhere to the set laws and practices. Also, the taxation rate has been rising in the recent which affects investment and the profitability of the involved companies. Such factors are the primary determinant of the move that the industry is supposed to utilize.

Porter’s Five Forces

The threat of New Entrants

The actual capital and resources that are needed in setting up a real estate firm are unusually high given that the inventories have to be organized and prepared by the construction developers before beginning. Also, in the industry there is no advance pays from the consumers thus the firm is supposed to fund everything. In this context, new firms in the industry usually experience intense difficulties in their attempt to grab projects particularly the large one since track records are also used in the assessment. In this context, it is only the well-established firms with more resources and a desirable reputation that can take such initiatives in general. In addition, based on the last financial crisis BC is still in the recovery process, and the rise of the real estate constructing and developing firms in the market has further lowered the profitability of the industry (Wisemean, 2011). The industry is mainly focused on the reduction of cost so that their profitability can rise in return. However, the cost of living has affected even the prices of materials thus necessitating the firms to focus on outsourcing most of the inventory which has played a part in cost reduction (Ebner, 2018). Also, the companies also plan on reducing the operating prices about their management offices as well as minimizing the scope of operating which is associated with extraordinary operating expenses. Thus, this is a form of a challenge and impossibility for the new firms as well as the established ones. However, new firms are the ones that face the most difficulties which then implies that entrant threat is minimal.

Bargaining Power of Buyers

The products in the industry such as the construction spaces are average. The switching expenses for the buyers within this industry is particularly very utmost. In that, the consumers in the industry are mainly involved in settling for the consumers with the best record such as the brand image. In this context, since those that offer the least prices are not very skilled or have no favorable reputation in construction the buyers bargaining authority is minimal. Property rates went down during the last financial crisis which created affordability for the buyers and gave then bargaining power an aspect that has changed in the course of the previous few years. Most individuals in the state are not able to afford these properties even though the development companies are unwilling to lower them considering that their operation expense is high and thus the move would lead to losses which will push most of them out of the industry (Hilaire, Ragan, & Leonard, 2007). As the industry is becoming very competitive, the sellers are attempting to entice the buyers through the provision of discounted deals thus the buyer's power is average.

Bargaining Power of Suppliers

In the market that is mainly dominated by well-established company’s supplier's bargaining authority is low. There is minimal to zero switching expense for the companies while acquiring raw materials needed for the development such as cement, paint and so on. Forward integration, therefore, presents minimal threats which offer the involved companies with better switching opportunities. In this context, the suppliers have less authority in influencing the responses of the firms (Mitham, 2017).

Threat of Substitutes

In the real-estate sector, there is no substitute for development and construction since the housing sector depends on it ranging from personal to commercial buildings. With no alternatives, this generally implies that there is no threat.

Intensity of Rivalry

Competition in the industry is intense due to a large number of established and new companies that are currently in operation. All these companies are providing the same products and services which are not differentiable unless several advancements in designs and materials are used which in turn makes the operating expenses higher. With the high number of competitors, profitability has decreased considerably in addition to the current economic state. Thus, it is only the firms that hold top funds and resources reserves that are likely to survive in the instance that this situation is continuous. In this case, it is rather apparent that the rivalry is intense with every company owning a piece in the market that is not very profitable as most would anticipate.

SWOT Analysis

Strengths

The real estate industry in BC is associated with the highest growth rate when compared to other companies. The booming of the industry is mainly influenced by technological growth, globalization which has facilitated the increased inflow of people and modernization. The use of technology, a positive reputation and resources are leading industry’s strength. In that, the industry is characterized by adequate resources in general that sustains its projects over time. The investment that is required in the sector is high, and it is only dominated by the firms that are well equipped regarding funds and resources ranging from the skilled workforce, reliable supplies, and effective management. Technology growth has provided the industry with good infrastructure that in turn supports the development of the industry in general (Blazek, 2013). With the ongoing evolutions, the industry can utilize such strengths in building a more profitable enterprise. Also, the ability to adapt to market and economic changes is an additional strength of the industry. The consistency of the industry well illustrates the aspect in the last few years where despite the financial crisis the sector has not withheld its operations. With the ability to mitigate changes then the productivity of the industry is not affected which is essential in preserving its relevance and profitability.

Weaknesses

Even though the real estate industry represents the fastest growing and important industry today, it is facing some challenges that threaten its wellness and growth. First, the focus of the developers is too narrow as they only focus on housing construction and development. In this, context the market is thin, and the situation even becomes worse due to the presence of a high competitors number in general (Proctor, 2016). The industry needs to be broad and target another different project that will seek to transform the state, in general, leading to developments. In addition, there is low awareness of the value of this industry to the target consumers. Due to the intensifying demand for real estate services the operating companies are driven by the assumption that the sector is well known in the market. However, the norm is inaccurate given that most individuals tend to distance themselves from the services on the ground that the products are expensive and they would not afford. Thus, it is clear that the industry has not invested adequately in creating awareness as well as familiarity with the real estate value and the benefits that the consumers are likely to achieve. Resources scarcity also represent a significant weakness of the industry given that most of the firms are pushed out of business due to the lack of adequate financing.

Opportunities

The ability to diversify into related fields is a significant opportunity. In that, the involved firms have the opportunity to expand into other different areas and explore them to acquire a substantial share. The market in BC is a developing one which means that it has not been exploited fully and it has some viable opportunities that will strategically position the industry. In addition, technology offers a possible chance of the industry’s development in general. Amidst the growing techniques that are likely to be used in the quest for increasing the productivity rate (Proctor, 2016). In that, the utilization of technology offers individuals the opportunity to identify viable markets and new trends that will, in turn, result in development (Blazek, 2013). In addition, these are essential in improving the marketing abilities of the industry in general. In addition, product development is an additional opportunity where the companies are needed to focus on the use of innovation to come up with innovated and well-developed products that will generally appeal to the consumers and meet the modernization needs. In other words, this is a form of differentiation of the product that will enable the industry to develop a strategic and sustainable competitive edge.

Threats

Competition is one of the leading danger towards the development of the real estate sector at the moment. The industry is saturated by companies that incorporate new and established firms. Given that BC does not offer an extensive market when compared to other areas the domination of these companies has resulted in reduced profitability as well as market share for those that are involved. The low market share, therefore, means that the industry might not be able to attain any substantial growth in the recent which has thus resulted in the loss of revenue. In addition, the low level of regulation is a significant threat to the industry given that it is accountable for financial damages as well as the loss of professionalism in doing business. There is lack some standardized protocols in the industry and as the market is expanding these threats the future wellness of the sector which might lead to productivity loss (Proctor, 2016). The economic crisis also presents risks to the industry since when the financial gains are not in balanced state individuals tend to prioritize on other things rather than housing. With the increasing cost, the consumers might neglect such needs due to the necessity to save more and invest in businesses. In that, the market might grow into a price-sensitive sector thus forcing the companies to lower their prices. In addition, the entry of some established or accepted brands in the market is likely to lead to increased switching where the customers will be seeking for their services. Such companies have the potential or eroding the industry have they own not only more resources but also the general ability to be innovative which will lure the customers to their side.

Marketing Mix

The real estate industry in BC is more organized than before. The target consumers hold differentiated need thus unique strategies are necessary for success in the sector. Thus with a compelling marketing mix, the industry’s objectives must be achieved

Price

It is essential for constructions or housing developments to be priced appropriately. In the market, today buyers have been subjected to extensive options, and if the rates are unfavorable, this means that the consumers will be lost. Due to the moderate buyers bargaining authority and the lack of substitutes somewhat high prices guide the industry. The switching cost is high, and this forces the customers to acquire the rates based on the firm’s reputation. The norm might appear as favorable, but it is likely to discourage the consumers in the near future by developing prices sensitivity which will, in turn, encourage the domination of other players.

Product

The product in this context refers to the real estate services. While the success of the firms in the industry mainly relies on the ability to cater to the most consumers, the sector should be ready to create a balance. The industry is primarily involved in the provision is retail and collective services depending on the size of the facilities that are to be provided. The convenience of the services and quality has been useful in retaining a significant market share for the consumers in general.

Promotion

The use of useful marketing options has driven the success of the real estate sector in BC. In that, the industry has been focusing on organized housing as well as promotions on online platforms, advertising, and discounted sales. Online marketing is the preferred marketing option on the ground that it is cost effective and can reach more consumers within the shortest time. Online websites and social media have been an excellent platform where the consumers can directly interact with their preferred firms and inquire about their services.

Placement

In attracting the highest number of consumers to the real estate sector, the industry has been focusing on the right placement of its advertisements and services. In that, most companies have selected some of the most useful sites that hold more users to post their publications such as Facebook. Besides the agencies are set within short distances where the customers are located which allows them to get the services and connect with the companies while reviewing their operations.

Ansoff Matrix Analysis

Market Penetration

Market penetration generally entails the trail to increasing market share in a given market either by increased sales or attracting a new set of customers (Wippel, 2013). The real estate industry is dominated by a single product that has no substitute thus the involved firms are involved in the competition to ensure that they get a substantial share. The real estate competition is intense which has forced companies to forge approaches to address the issues for revenue maximization. In penetrating in the market, the involved firms mainly rely on cost differentiation as the entry approach. However, since cost leadership is likely to lead t losses in economic crisis period diversification is an alternative as it requires similar resources and guides to saving.

Market Development

The aspect of market development involves establishing a new set of buyers for the products (Wippel, 2013). In that, the industry has been targeting middle and upper-class individuals since they have adequate income that enables them to afford the services. However, through market development, the sector should develop customized products targeting the low-income individuals. It is estimated that this populace comprises about 40 percent of the BC populace which will provide a viable market.

Product Development

Product development to the situation where a company that is well established in the market in terms of market share and resources introduces fresh products (Wippel, 2013). The product should be customer centered by adding more value to outdo the contenders. In that, since it is not possible to differentiate products in real estate, it is only through innovation that the companies can upgrade their competitiveness. In that, this is achieved through improved designs and providing other services and discounts.

Diversification

The approach incorporates the development of a new set of products that generally offers complementation to the existing products. As consumers are becoming more sensitive with regard to technology, there is a necessity to innovate the product to fulfill their demands (Blazek, 2013). Even though such products demand higher prices, there is a target set for such products.

Balanced Scorecard

General Objectives

The real estate industry in BC aims at being the most stable industry in dealing with constructions and developments. To achieve the objective it intends to maximize its revenue by owning the most comprehensive market share in general. Thus, through the adoption of technological advances, this will be useful in attracting a new set of consumers. However, with the consistent changes in the market, the adaptability is proving to be a challenge as competition has also intensified.

Financial Objectives

The industry through the existing companies aims at achieving sustainability in terms of financial stability through research and development. The approach will bring about sustainability and standardization in the market. It is anticipated that with an economic crisis the sales will reduce by about 20 percent in the next two years (Tencer, 2018). Thus the industry is focused on stabilizing it's earning in standardizing everything that is likely to be lost.

Consumer Knowledge Perspective

The consumers of the real estate sector are diverse in terms of income and preferences. Thus, the industry is seeking to focus more on innovation which will, in turn, increase its strategic success. The consumer-focused operation is essential for inducing a large market share which will be used for competitive positioning.

Learning Perspectives

Learning perspective is an essential aspect that ensured that all the goals are satisfied. The real estate suffers from the lack of a large skilled workforce with most companies relying on manual labor from cheap laborers. There is a necessity to provide adequate training to the staffs which will ensure that they offer the best towards the projects. The approach leads to quality and effectiveness in general.

Recommendations

It is without a doubt that the real estate industry is one of the well-established sectors across the globe an aspect that is well reflected in BC. It is apparent that the success of the sector is mainly linked to technological advancement, globalization, modernization, political, economic stability and income increase. It is proposed that for the industry to retain its competitiveness and success in the long term, then it should thus focus on the use of technology. Technology has proven its potential, and ability to catalyze development across different industries and the real estate has not been exempted. In this context, the use of technology is useful in increasing efficiency in general. In that technology can best be utilized in reporting as well as keeping records. Technology provides the opportunities for individuals to advance and acquire new skills that seek to guard the profitability of the company. It is through the use of technology that innovation can be embraced leading to efficiency and productivity.

In addition, there is a need for the industry to invest in research and development. R&D has proven to be a practical approach for the stability of different sectors across the globe. Thus the industry should spend as the means of establishing the needs of the consumers as well as seeking to develop different strategies to meet the demands. The market is generally associated with general changes that affect the adaptability of the involved firms. Due to modernization and technology advancement, the needs of the consumers are changing so often that the companies are required to keep up with the changes. With the need for more resources, the ability of any firm to survive in the market is generally determined by its ability to cope with changes. In that, a company can never be successful in the market if it is unable to meet the needs of the consumers. The satisfaction of the consumers leads to the development of a positive reputation which consequently attracts a new set of customers while retaining the existing ones. Therefore R&D will be useful in enabling the company to provide more quality services to the customers. In addition, this will increase the adaptability of the company.

Social media marketing has proven to be one of the most effective strategies for promoting operations in the modern society. Due to the development of technology and internet access millions of people are currently using social media. Thus, this is a potential platform where companies can market their businesses (Blazek, 2013). It is worth noting that unlike the use of online advertisement marketing is cheap and support the aim of the industry to minimize the operating expenses. In this context, it is rather evident that online marketing will allow the companies to reach more consumers within the shortest time. In addition, the companies have the opportunities to interact with their consumers at ease which will enhance customer relationship. The platforms are beneficial since the companies will get to learn about the needs of the customers through their feedbacks. It is also through the responses that the companies can focus on addressing their weaknesses.

More so, awareness and familiarity campaigns interventions are also recommended. Based on the market analysis above, it was determined that most of the consumers in the market are not aware of the value that the real estate industry offers. Most of the consumers hold the assumption that the firms price their products highly which discourages them from buying. Thus through the programs, such assumptions will be eliminated which will enable the consumers to seek to the development services. The industry should diversify its product by targeting a new set of consumers. In that, currently, the industry only focuses on the upper and middle-class individuals. Thus by customizing the services, the low-income earners will join the market as they provide the greatest share as per the current. The combination of this strategies will competitively position the industry thus increasing its earning.

Reflections

Based on the analysis above, it is evident that the real estate investment is feasible since the market is growing rather rapidly. In that, while the market is dominated by while established firms it has not been exploited fully. Most of the existing firms tend to focus on the urban towns while the inner areas are forgotten. In addition, the fact that real estate is perceived as an option for the upper and middle class best illustrates that there is a need to create awareness in the market. In my opinion, I believe that investing in the sector is a potential business. However, new companies must strategically differentiate themselves from the rest to achieve competitiveness such as by providing quality and yet low cost services to the consumers.

The Prospects for the Future Real Estate Market

Prospects for the real estate industry in BC Canada is very captivating. The future of the industry is excellent given that the highest growth characterizes the industry. Due to the stability of the economy, more and more individuals have begun to recognize the worth of the sector. Modernization is consistently allowing individuals to enjoy the significant benefits that result from real estate services (King, 2018). Thus as technology continues to advance, it has been established that the future of the real estate sector will be more promising. In that, the involved firms will be able to manage the movement of stock, maintain constant communication with the suppliers and consumers as products enhancement. In general, it is rather evident that technology leads to the advancement of the industry (Mitham, 2017). As the consumers are getting adequate awareness of the market in general then they can get to understand the operation of the market then the market will continue to expand.

The market has not be exploited fully, and the future will be more profitable as the companies get to understand the aspects of the thriving market. It is without a doubt that as the market continues to expand so will other investors get into the market thus intensifying the competition on the market. The higher the level of competition the lower the revenue that the firms will be getting from the market (King, 2018). However, a balance will be created on the ground that the companies will be able to expand and explore other markets that have more potential. Also, with the rising cost of the acquisition of resources, it is rather clear that new companies will not survive in the market which will lower the competition rate. The market is only more promising for the companies with adequate sources and funds to support their operations. With the investment in research and development, the companies will be developing.

Conclusion

To sum up, BC represents one of the most preferred locations for residential and business focus in Canada today. This is how the region has managed to become the favorite investment destination for most individuals. As the population in this region continues to increase so is the demand for modernized housing. The real estate sector will continue to harvest more resources in this market. In addition, the economic stability of the region is a source of hope for the future of the industry. As individuals continue to achieve financial balance so makes their demand for suitable housing. Due to the political and economic stability, it is anticipated that the industry is likely to produce a growth rate of about 20 percent in the next three years. The growth offers more opportunities for the operating companies in general.

References

Blazek, M. (2013). The Impact of Technology on real estate. Greater Chattanooga Association of Realtors. Retrieved from: http://www.gcar.net/news/entry/the-impact-of-technology-on-real-estate

Bulan, L., Mayer, C., & Somerville, C. T. (2009). Irreversible investment, real options, and competition: Evidence from real estate development. Journal of Urban Economics, 65(3), 237-251.

Duranton, G., Henderson, V., & Strange, W. (Eds.). (2015). Handbook of regional and urban economics. Elsevier.

Ebner, D. (2018). B.C.'s new measures aim to temper rising real estate prices. The globe and Mail Inc. Retrieved from: https://www.theglobeandmail.com/news/british-columbia/bc-budget-treading-new-ground-in-hopes-of-cooling-housing-prices/article38045867/

Gill, A. M., & Williams, P. W. (2011). Rethinking resort growth: Understanding evolving governance strategies in Whistler, British Columbia. Journal of Sustainable Tourism, 19(4-5), 629-648.

Gill, A. M., & Williams, P. W. (2011). Rethinking resort growth: Understanding evolving governance strategies in Whistler, British Columbia. Journal of Sustainable Tourism, 19(4-5), 629-648.

King, R. (2018). Canadian real estate market outlook 2018. Retrieved From: http://www.moneysense.ca/spend/real-estate/canadian-real-estate-market-outlook-2018/

Laanela, M. (2016). Is Vancouver's real estate market really in free fall? CBS News. Retrieved from: http://www.cbc.ca/news/canada/british-columbia/vancouver-real-estate-1.3746472

Marchak, P. (2011). Green Gold: The Forest Industry in British Columbia. UBC Press.

Mian, A., Sufi, A., & Trebbi, F. (2015). Foreclosures, house prices, and the real economy. The Journal of Finance, 70(6), 2587-2634.

Mitham, P. (2017). Tight real estate supply discouraging upward market movement. BIV. Retrieved from: https://biv.com/article/2017/08/tight-real-estate-supply-discouraging-upward-marke

Newman, L., Powell, L. J., & Wittman, H. (2015). Landscapes of food production in agriburbia: Farmland protection and local food movements in British Columbia. Journal of Rural Studies, 39, 99-110.

Patterson, M., Somers, J., McIntosh, K., Shiell, A., & Frankish, C. J. (2008). Housing and support for adults with severe addictions and/or mental illness in British Columbia.

Proctor, J. (2016). Is it time for a crackdown on B.C.'s real estate industry? CBC News. Retrieved From: http://www.cbc.ca/news/canada/british-columbia/real-estate-final-report-vancouver-1.3646493

St-Hilaire, F., Ragan, C. T. S., Leonard, J., & Institute for Research on Public Policy. (2007). A Canadian priorities agenda: Policy choices to improve economic and social well-being. Montreal: Institute for Research on Public Policy

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Tencer, D. (2018). Canadian Housing Forecast Revised Down After Sales Hit 5-Year Low. Huffington Post. Retrieved from: https://www.huffingtonpost.ca/2018/03/15/canada-housing-forecast-crea_a_23386637/

Wippel, S. (2013). Regionalizing Oman: Political, economic and social dynamics. Dordrecht: Springer Science+Business Media.

Wisemean, N. (2011). In Search of Canadian Political Culture. UBC Press.

Strategy Implementation and Strategic Controls SLP 4

Introduction

            In every organization, managers hold the obligation for making informed strategic choices that seek to maximize the gains of the firm. After taking over the position from Thomas Joe, it is thus my responsibility to carefully strategize and develop cognitive changes concerning pricing and funds allocation about product R&D which is dependent on the existing situation and performance of each product. The products that the firm develops, the involved technology and position in the respective markets represents one of the most critical operations that necessitate thorough analysis on often basis so that awareness and familiarity can be sourced for informed choices along strategies adjustment. According to Hill & Jones (2010) such decisions are hazardous since they might lead to the downfall of the organization and in this case, much strategic participation is needed to establish the most suitable approach of meeting the demands in the market and for product development.

Strategic Choices Review

            The overall utilization of CVP analysis is essential given that it improves the general capability to establish the number of units that a corporation necessitates selling for profit to be obtained. It is a crucial strategic instrument that permits managers to know the precisely fixed expense that is needed to acquire the expected profit. The price of W2 was increased up to 450 dollars with the R&D investment at 40 percent for the year 2013 which led to higher revenue gain when equated to the past year. Since the product was characterized with high demand given that the consumers worried less of the price and needed a high performing product, it means that a little R&D investment would lead to high sales with the inclusion of high performing features to gain more consumers. Related strategies that seek to gain equal outcome might incorporate higher investment in marketing which is to increase the sales.

            Wonder Company is focused on gaining highly from the cumulative revenue of all the three tablets for the following four years. Even with the rapid changes that are taking place in the electronic market, Joe remained dormant, and he did not alter the prices. Even with more changes in preferences, taste, and sensitivity no change was made. The R&D was 33, 34 and 33 percent for the three products respectively over the years. The situation can be described as the absence of strategic choices. In that, the company needed to establish the expected profit first and establish the needed alternative by adjusting its prices and budgeting. The products demand mainly determines the pricing decision. With high demand, this illustrates that an improvement on the product is likely to attract more sales with high profit even with minimal development investment. 

Strategy Implementation 2013

            The pricing for the three tablets for 2013 will be as illustrated. W1 will be sold at $2170 while the R&D allocation will be increased to 40 percent which will seek to create more features for better performance. W2 will be sold at 4440 with R&D at 40 percent while W3 will be 170 which will be lower than the previous price with an R&D of 37 percent. The strategic choice will create more sales opportunity by attracting more buyers. The decision additionally aims to increase the company’s profitability gain past 26 percent from the 16 percent that was acquired in 2013. The overall profit score for 2013 accounts to 352, 243,200. However, since W3 is new in the market and much marketing is needed to drive its sales the company will need to make the higher investment in 352, 243,200 so that the demand for the product can increase simultaneously with its profit rates. It is evident that W1 has acquired a significant share in the market given that it is already in the growth phase. However, since the product will lose the demand over the years, there is a necessity to create more efficient features which will, in turn, make it more attractive.

Implementation Strategy 2014

            In the financial year 2014, the pricing rates for the products will not be subjected to changes since this might affect their establishments and sales in the market. W1 will be sold at the price of 270, W2 440 and W3 170. However, the R&D investment will be changed. In that, for this year W1 R&D allocation will be lowered slightly up to 30 percent to reduce the operating expenses and to create more opportunities for developing the other products to increase traffic. The price for W2 will be retained given that the demand for the product is high and thus with the need for an excellent product concerning performance much development needs to take place to retain the current consumers and attract new ones. That of W3 will be increased up to 40 percent even though the product has higher pricing when equated to the competing products in the market. In this context, the product needs to be highly developed so that it becomes highly competitive and acquire a significant share in the market as it approaches the growth state as W2 continues to experience excellent performance in the respective market. In this context, it is likely that the profitability will increase to approximately 30 percent when equated to the previous year. The year 2014 makes a significant transition for the company, and thus such pricing and investment allocation strategies are necessary for aggressive growth.

            Once the R&D allocation for W1 is decreased from 40 to 30 percent of the fixed cost for its manufacturing also decreases thus leading to an increase in its general profitability. Besides, the rise of the R&D investment for W3 shows that developing the product’s features will be useful in increasing its demand while rising the profits rates in general.

Strategy Implementation 2015

            For the year 2015, I will have to focus on some specific strategy changes. The price for W1 will be reduced further by 5 dollars up to 265. Making significant pricing decrease for all the needed products is essential in increasing the particular demand for this products thus raising the sales volume (Kaplan & Atkinson, 2015). However, given that W2 has demonstrated notable growth the price will be retained at 440 while that of W3 will be lowered further to $160. For product, the W3 price reduction will stir its general demand in the market as a whole. The R&D expenses for these products need to be changed as well to guard the profitability while ensuring that the firm operates under the least expenses. In that as W1 approaches the maturity stage it is without a doubt that its demand and profitability will be lower when equated to other products. In this context, the R&D will be decreased up to 20 percent to decrease its fixed expense. The R&D for W2 and W3 will be 30 percent and 42 percent respectively. It is noted that the consumers pay similar prices for Wonder company products to those offered by the competing firms. For 2015 the profit score accounts to 1,281,927,788 as noted by the simulation while it is evident that the profit will not move so far from the 30 percent margin given that it accounts to approximately 31 percent. Besides, the decrease in R&D for W1 as it approaches the shakeout period will lead to lower operating expenses. In this context, there is no need to discontinue the sales of the product for this year given that even though its revenue continues to decrease this does not necessarily mean that the product has lost the demand in the market. With a low concentration on the product, however, this will create more opportunities for the other products as a whole which will lead to stability and increased demand for the same as a whole without fail. The intention is to increase sales volume and revenue gain and therefore this strategic change is a necessity.

Strategy Implementation 2016

            During 2016 fiscal year pricing and investment allocation changes will be a necessity. W1 prices will be reduced to $260 while the allocation for R&D might be decreased further to zero given that the product has no profit. In that even with its sales, the revenue is rather low thus will low investment the product can be sold at the least price without experiencing any losses. It is worth noting that the higher the expense, the lower the profit (Warren, 2008). In that, the company cannot continue to invest in a product that is slowly losing its stability in the market. The price for W2 as it reaches the growth phase will be reduced by 10 dollars up to 430 with its R&D allocation being 20 percent. In that, as the price decreases, the allocation also reduces to create more opportunities for sales. The reduction will create opportunities for the investment of W3 in general which will mainly account for up to 40 percent. For this period the objective is to minimize the overall investment for all the affected products to maximize the profit rate as a whole.

Performance Analysis

            At the end of the four years plan, it is more likely that the company will acquire more revenue when compared to the period under Joe’s leadership. The fact that the strategy seeks to make pricing and R&D allocation changes by focusing on cost leadership best illustrate that the approach can increase sales in general. In this context even with the discontinuity of W1 shortly, the demand for the other two products will increase. The profit will reduce for the third and fourth year, but that does not imply that the products are not competitively located in the market.

Conclusion

            In summing up, it is evident that the three products have available opportunities in the market. With the rapid changes in the market about price and preferences, the company will be required to adjust the pricing and investment strategies as a whole. In that cost, leadership is the best approach for W1 and W3 across the period while differentiation in performance works well for W2 where the consumers are less price sensitive. Thus the adoption of these approaches will lead to competitive positioning.

References

Hill, C. W. L., & Jones, G. R. (2010). Strategic management theory: An integrated approach.

            Boston, MA: Houghton Mifflin.

Kaplan, R. S., & Atkinson, A. A. (2015). Advanced management accounting. PHI Learning.

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Warren, K. (2008). Strategic management dynamics. Chichester, West Sussex, England: J. Wiley & Sons.

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Case 3 Strategic Choices for PepsiCo

Executive Summary

This report offers a detailed analysis of PepsiCo’s company. PepsiCo is one of the leading beverage and food manufacturing today across the globe with more than 63 billion net value as per the fiscal year 2017. The company’s products are sold in more than 200 nations globally. The company started back in 1965 through a merger amid Pepsi and Cola as well as Frito-Lay. The company offers a global collection of reputable and various brands. While the company’s competitive positioning in the market is authoritative, it is prone to different forces in the industry which are subjected to economic, cultural and social changes. The beverage and food industry is characterized by rapid changes ranging from consumer preferences, taste, health awareness and globalization. Most of the companies have already taken strategic measures to guard their competitiveness.  This report, therefore, establishes the main business approaches that are applied by PepsiCo and offer an in-depth written analysis of its strategy concerning the associated strengths, weaknesses, opportunities, and threats.

Introduction

            PepsiCo is one of the largest and favorite foods and Beverage Corporation. PepsiCo produces over 22 brands such as Pepsi, Tropicana, Miranda, and Naked and so on which are then distributed across the globe in all the two hundred countries that it has penetrated (PepsiCo, 2017). Courtesy of the global distribution network that people across the globe consume over one million of the company’s products on a daily basis. The success of the company can mainly be linked to the fact that the products are mainly sold by retailers which makes it easy for the consumers to gain access conveniently. Segmentation is a crucial marketing strategy that has assisted the brand indirectly targeting the most potential customers with their differentiated products. The company was ranked 41 in 2017 under the most prominent 500 companies across the globe by fortune (PepsiCo, 2017). Thus, despite the success, it is evident that the company needs to be strategically positioned in the market to achieve sustainable competitive positioning in the market that is dominated by well-established and resourceful firms.

PepsiCo’s Porter Strategy

            Based on PepsiCo’s products variety, the company utilizes different generic approaches. However, the primary strategies that have played a part in its competitive positioning in the market are cost leadership and broad differentiation (Ferguson, 2017). In that, the company mainly utilizes cost leadership as its leading generic approach which has been an essential tool for its global expansion. In other words, the company provides low-cost products when equated to the competitors an aspect that attracts most of the consumers. The approach also focuses on the reduction of cost as the means of enhancing the company’s financial performance and general competitiveness. For instance, in its competition against Coca-Cola beverages, the company provides products that are affordable with the least pricing that is mainly guided by its low operating expenses (Ferguson, 2017). To sustain its strategy, the company has to account for its expenses which ensure that the operating expenses are minimized while avoiding any form of losses. The firm additionally has unique promotional services with discounted offers. The aspect in most cases attract the consumers who are cautious of the prices more than the associated quality. Besides PepsiCo relies on broad differentiation as its back up generic approach for competition. In that to survive in the highly competitive industry differentiating the products is a necessity. The approach allows the firm to drive traffic through the provision of products with unique compositions. For example, its Lay chips are promoted as healthy smack based on its low levels of fats. The aspect, therefore, attracts a different segment which is health conscious in everything they take (Ferguson, 2017). The objective of focusing on the differentiation approach is to assert on the company’s innovativeness through addressing the consumers concerns for health defects among fast foods and beverages.

PepsiCo’s strengths

            Brand recognition, diversification, and reliable distribution network are the main strengths of PepsiCo. The company own one of the most popular products across the globe and is ranked 29 for being one of the most known and valuable brands globally with a net of sixty-three billion (PepsiCo, 2017). Over the decades of its operations, the company has changed its products designs slightly which has enabled it to retain its recognition. The company also owns one of the biggest distribution network globally with over 700 manufacturing facilities worldwide.

            Concerning its marketing promotions, the company has adopted different strategies such as packaging and awareness campaigns with the intention of fostering its brand recognition and increasing convenience to all the consumers. The goal is to offer, quality affordability and convenience as the additional values. The company is ranked among the best in marketing through advertisements. The objectives are mainly accomplished via the creation and implementation of distinct advertising approaches in diverse regions (Ferguson, 2017). Most of its awareness campaigns are made when launching new products such as the healthy products which have proved to be very successful in increasing sales over time.

The company has a positive alignment concerning its generic strategy along the identified strengths. In that, the company has successfully used its marketing strengths in the creation of a positive attitude in the public’s mind and the related products usually generate a unique encounter that helps in market development. The perception has, in turn, offered its products higher value when equated to those of the competitors. The fact that it offers more products variety offers it a competitive strength.

PepsiCo’s Weaknesses

            PepsiCo’s weaknesses are over-diversification and low marketing, especially when compared to its main competitor Coca-Cola. The weaknesses have resulted in its rather weak revenue gain over the years. The company is well known for its diverse products which are beyond those of the competitors (Rao, Rao & Sivaramakrishna, 2008). This aspect is, however, its weakness since it hinders its strategic focus since all its resources are distributed across the variety. The company is not therefore able to concentrate and market its products. There is a necessity to lower its diversification. The company has invested less in marketing an aspect that affects sales given that the consumers are less aware of all that the company provides. With its limited resources it is, therefore, unable to meet the strategic objectives for competitiveness.

Even though the company has attempted to address this issues through innovation by focusing on the healthy products, this is not enough. In other words, the company has not responded adequately in aligning its generic strategy with the respective weaknesses. The company’s sales seem to be decreasing for the absence of attractive designs (Ferguson, 2017). In that focusing on healthier products is not enough about the necessity to address the existing needs in the market. The portfolio is too broad for the company, and it is therefore recommended that the company invest more in marketing to increase its brand recognition and competitive position.

PepsiCo’s Opportunities

            The company has several opportunities such as expansion to the emerging markets as well as capitalizing on the manufacturing of healthy products. There is an increasing demand for the healthy products and the consumers current prefer to consume products with less sugar that fits the natural category (Rao, Rao & Sivaramakrishna, 2008). By capturing the segment then the company will be able to overcome the existing challenges in the market. The company has over the years tried to capture the opportunities by establishing itself in more countries while producing healthier options. The company is recognized as one of the leading healthier brands within the beverage market.

            Thus, the company has a positive alignment with its generic approach along the opportunities. The company has recognized its ability to dominate in the healthier products market as a whole and utilized its distribution network to grow the option. The company has efficiently provided unique and healthier options to all its consumers which demonstrates its general ability to capitalize on the expanding market.

PepsiCo’s Threats

The main threats are competition, need to differentiate more and changing preferences from the consumers. The company is currently facing a significant threat to the increasing obsession to adopt the healthy options. In the past, the company was able to offer the products diversely based on taste, but the diversification appears to be threatening its stability. In that even though the healthier focus is a good strategy for competitiveness, it is without a doubt that the company has abandoned its focus on healthy and creative products. There is still a large market that is in need of the healthy options something that the company might neglect. The industry is also dominated by the most extensive and reputable companies such as Coca-Cola which have a significant market share in the industry (Ferguson, 2017). With the intensification of competition, the stability of the company is determined by its ability to adapt to the changes.

The diversification of the company shows that it has a proper alignment with its generic strategy. In that, over the years the company has been taking important measure in ensuring that it guards itself against the competitive threat. However, it is recommended that the company should create a balance as it seems to be leaning more on the production of the healthier products and this might lead to neglecting all the other consumers.

Pepsico Leverages Its Strengths and Shores up Its Weaknesses

            PepsiCo is a socially responsible company that seeks to enhance the socio-economic wellness in all the communities that it works with. The company, for instance, has taken measures with reference to bottling in the quest of lowering the rate of environmental destruction that is caused from its intense use of water and disposals (Rao, Rao & Sivaramakrishna, 2008). In that, the company plays a significant role in helping in the treatment of water, and its wastes are disposed of attractively. The approach is useful for the company in the development of reliable connections with its consumers while taking care of the surrounding as a means of valuing the people. The company has been successful in addressing the issue of obesity given that its primary focus lies in the production of the healthy alternatives. While it can be argued that the market for those that need healthy products is increasing it is apparent that the production of other products is also valuable since the market is as big.

How Pepsico’s Vision and Mission Has Changed/ Reconfirmed

            The mission of the company is to grow into the leader of convenient beverages and foods while generating financial gains for the investors and offering development opportunities for the respective staffs. The vision is to continue in its responsibility through creating a better future. The strategic analysis has thus reconfirmed the statements for the company (Hill & Jones, 2008). In that, through its diversification and expansion, it has managed to become a convenient and reputable brand. Through the measures it has taken to conserve the environment it is evident that it attempts to create a better future in this context. I would not recommend any changes in the company’s vision and mission instead the company should aim at taking a strategic focus.

Conclusion

            In summing up, it is evident that PepsiCo has been able to guard its strategic focus over the years despite the intensity of the existing competition in the industry. The differentiation and low-cost approach are effective strategies in attracting more consumers while retaining the existing ones. In that consumers are becoming highly sensitive to prices and there is a need to offer products at the least prices. In the industry, the company can only survive through differentiating its products by offering unique products an aspect that the company has managed to achieve success over the years.

References

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Ferguson, E. (2017). PepsiCo’s Generic and Intensive Growth Strategies. Panmore Institute.        Retrieved from: http://panmore.com/pepsico-generic-strategy-intensive-growth-strategies

Hill, C. W. L., & Jones, G. R. (2008). Strategic management: An integrated approach. Boston: Houghton Mifflin.

PepsiCo. (2017). About PepsiCo. Retrieved from: http://www.pepsico.com/About

Rao, C. A., Rao, B. P., & Sivaramakrishna, K. (2008). Strategic management and business policy: Texts and cases. New Delhi, India: Excel.

Case 4 Strategy Implementation and Strategic Controls

Executive Summary

This report presents a detailed analysis of PepsiCo’s strategic implementation and controls with regard to their fitness with the company’s generic approach. The report mainly starts with providing an in-depth assessment of the complementary mechanisms by evaluating the company’s organization design as well as the structural components and control systems such as budgeting and variance inquiry. This is then followed by a significant explanation of the cultural forces as well as human resources distresses. Further the implication of the company’s strategy of the discussed components and how the components are aligned with the existing vision and mission statements followed by ethical principles and how they are encompassed by its strategy. 

Introduction

            The implementation of the most effective strategies is essential for the success of every organization. Strategies are mainly implemented via the utilization of the existing organizational structure, human resources, control networks, and culture. In that, a successful strategy is one that incorporates all these elements for better performance. Regardless of how well a particular strategy is created if the people within the respective organization fail to be involved and the culture is unsupportive, and their systems are unable to conduct the several measures then the system will ultimately fail. It is widely known that human resource is one of the most expensive assets that any organization can own. People are the ones that determine the performance of the organization, and thus the culture must be one that encourages individuals to focus on the strategic growth of the company. The ability for any company to succeed in the market there must be a good strategy that not only markets the company but also promotes the products among the target consumers.

Complementary Components

            With respect to the company’s organizational structure, the culture is based on diversity since it mainly employs thousands of individuals from different nations around the world. The aspect is a potential source of skills and expertise (Schermerhorn, 2010). One of the leading approaches of assessing a business approach is to examine its organizational design while incorporating cultural forces and human resources issues to gain an in-depth comprehension of values that drive the success of the business on a daily basis (Bachmeier, 2013). Each and every structured organization is created through the development of varying units, and thus the organizational design refers to a manner in which departments are arranged. The two leading organizational designs are departmentalization and functional. The functional design entails where departments are arranged based on their functions such as marketing and account while the divisional design is just grounded in classifications.

            PepsiCo has a decentralized organizational structure. The company has a mixed design that incorporates the divisional and functional classification given that it has several departments that are focused on specified functions (Bachmeier, 2013). The divisional design exists because numerous subsidiaries across the globe have a reduced level of independence. The decentralized structure such as the one that the company holds is needed to incorporate extensive business operations in a smooth manner since it is just a single division that is entitled to making decisions for the growth of the market. Every division is thus entitled to carrying out specific roles which lead to efficiency and the success of the organization. The roles are therefore not centralized based on the extensiveness of the business to acquire high control of its multinational approach.

            With regard to the strategic control, several instruments are necessary for budgeting and evaluation of variance (Hill & Jones, 2010). The instruments are necessary for the bid to ensure that the selected strategies are applied in the right manner, and they are additionally utilized as significant signs for the evaluation of the needed measures for strategic positioning. The budget serves as a tool for forecasting the operational expenses while on the other hand, the variance findings offer details on the needed corrections for the achievements of the set goals by the organization.

            With regard to the cultural values on which the organization is involved in as a global company, the firm must at all times face diversity and cultural differences a component that is seen in the way that it presents itself to the public. The culture of the company is one that is inclusive with regard to cultural diversities which has continuously supported the innovative aspect.  Some other benefits that usually boosts the functionality of the company include its quality products and focus on continuous growth (Lynch, 2018). The strategy is vital in addressing human resources related issues given that it promotes fairness as well as the necessity to employ individuals with technical skills to guard the performance and positioning of the firm. The company mainly seeks to become the leader in the market by transforming the world and creating a more reliable environment. For the achievement of the goal, the company is mainly dependent on its employees. Thus, it creates a favorable environment for all of them by encouraging them to be committed and offering adequate compensations (Lynch, 2018). The company has been capable since it uses a standardized system that follows a centralized approach that offers skills to the workers while adhering to ethics.

The Implication of Complementary Components on the Company’s Strategy

            The direct effect of the company’s design that is divisional and functional following the decentralized structure is that it makes the firm flexible as it enables it to efficiently mitigate through challenges and adopt adequate approaches in the market. The approach is comprehensive and consumer-centered given that different markets hold different needs. In that, in a particular region, the products provided in the United States might not be demanded (Hill & Jones, 2010). The existing structure additionally allows for the ability to hold a rapid strategy in the case that issues erupt without being forced to await centralized feedback. The approach makes it possible to receive responses conveniently leading to efficiency.

            Strategic controls in the competitive surrounding are vital tools that seek to ensure that the form achieves the set objectives and limits. As for PepsiCo, these instruments are needed to sustain adequate control within all the divisions while also offering the potential for the goals to be obtained with the existing resources. In other words, it is evident that variance assessment and budgeting have a direct implication on business strategy because they are the determinant of the performance to be achieved and the much that the firm needs to invest in every operation.

            About the cultural forces, they are well incorporated in the company since it offers directions that individuals should adhere to for the success of the company. In that even when the business is extensively grounded across the globe, the people involved clearly understand their role with regard to business. Most of the cultural forces originate from the outside surrounding, and this can, therefore, impact the manner in which business is conducted on the global scale. In that with the rising need for healthier commodities among the public the company has made the decision of producing healthier commodities so as to avoid undesirable attitudes. The worker's issues also affect the company’s approach (Hill & Jones, 2010). The company must at all times use a strategy that favors its employees in order to support good performance. It is thus essential for the company to guard an intelligible adherence to the company’s value in the avoidance of any negative publicity and ensure that the workplace favors every individual.

            In this context, it is evident that the structural elements of the company like budgeting are well aligned with the firm’s strategy since they depict the foundation on which the strategy has been developed upon. In the case that the needed resources are not adequate for the achievement of the set objectives, there is a necessity to transform the approach with regard to the resources that the firm possesses (Hoskisson & Hoskisson, 2013). In this context, the budget is needed for the success of the approach for the objectives to be achieved. The cultural setting is well connected with the firm’s mission and vision because this leads to the achievement of the set objectives. The brand approach is centered explicitly on inclusion and diversity which have been the primary stirring tool for the achievement of success.

Business Ethics

            PepsiCo can be viewed as an ethical company. The business does not necessarily incorporate unethical operations since the corporation is socially responsible. The company mainly focuses on ensuring that it guards the social, economic and environmental wellness of all the communities that the operations take place (Hoskisson & Hoskisson, 2013). The company has been on the forefront of ensuring that it guards its wastes and the use of resources such as water. The company is particular with regard to its values, and its adherence to safety and quality are evident. The company has set up measures that seek to ensure that it becomes transparent by complying with the legal guidelines in all the markets. The fact that it asserts on fairness when treating its employees is also essential in showing its business ethics obligations.

Proposed Changes

            Some of the proposed changes might include sustainability and marketing. In that, the company must not only focus on the cultural aspect of the business. The aspect would result in an adequate change which would lead to the success of the company. Transparency is a necessity in the modern business world that is needed in overcoming competition. Its marketing needs to be more explicit by informing the consumers of all the health-related problems with the consumption of the products. As more and more consumers move to the healthier options, the public needs to be aware of the health effects of beverages consumption.

Conclusion

            Based on the analysis above, it is evident that the company follows a decentralized strategy because its business is costly. PepsiCo has been able to achieve success following a mixture of the divisional and functional approach where the functions are divided based on individual’s expertise. In the third context, the company has been able to align the strategy with its general structure and components. Thus for success to be achieved for the long run the company needs to focus on the achievement of transparency in the market to allow the consumers to fully understand the health issues that are related to their beverage consumption.

References

Bachmeier, K. (2013). Analysis of marketing strategies used by pepsico based on ansoff's theory. Place of publication not identified: Grin Verlag.

Hill, C. W. L., & Jones, G. R. (2010). Strategic management theory: An integrated approach. Boston, MA: Houghton Mifflin.

Hoskisson, R. E., & Hoskisson, R. E. (2013). Competing for advantage. Mason, OH: South-Western/Cengage Learning.

Lynch, R. L. (2018). Strategic management. Harlow, England: Pearson.

Schermerhorn, J. R. (2010). Management. Hoboken, N.J: Wiley.

Typologies of Organized Crime

The organization that Hill joined was known as The Lucchese Family. The organization was one of the five crime families that emerged in the 1920s and led by Gaetano Reina. It operated in New York under the organization known as Italian-American Mafia (Mannion, 2003). The ethnic makeup of the group was the Italian-American since it comprised American Mafia and Italian Organized crime groups. The Lucchese Family was known for drug trafficking, kidnappings, bribery, fraud, bookmaking, smuggling, extortion, labor rackets and more. The Lucchese family had a hierarchical structure that comprised the boss-the leader who made a decision and distributed duties to the family members.  Street boss-he passed orders from the boss and run the group in case of arrest or death of the boss. Underboss- he had the authority to report matters to the boss (Mannion, 2003). Consigliere- he reported issues, made decision and carried out important duties. Soldieries- they were involved in criminal tasks such as robbery, kidnapping and more.

From the class material, types of the organized crime include activities that are related with the provision of illicit services such as sex, provision of illicit goods such as illegal drugs and infiltration of legitimate business where the criminals use illegitimate sources of income to run a business (Mannion, 2003). The activities of The Lucchese Family fit into the described types of crime in that they are involved in labor racketeering such as bribery and money laundering.  The criminals are also involved in the provision of illicit services and illicit goods such as gambling, prostitution, loan shaking, sales of illicit drugs and sales of stolen properties.  The criminals cause economic harm and threats by using legal businesses for exploitation.

 Hill's ethnicity affected his career with this group in that he was born in New York by an Italian-American mother and Irish-American father.  He was a half-Italian or in other words, he had an Italian American ethnicity, and the Italian-American Mafia was the well-known organized crime that comprised Italian-American gangsters (Mannion, 2003).. Thus, his ethnicity, that is; Italian American ethnicity motivated him in becoming a close associate of Jimmy the Gent and Paul Vario and becoming a member of the Lucchese crime family.

There are various reasons that made Henry idolize and join the lobster. First, Hill grew in a poorer areas known as Brownville and at the age of 11, he could look for afterschool jobs, and this affected his studies since rather than participating in productive work, he engaged himself in substance abuse and other poorer choices.  Since Hill desired to become a gangster, he ended up quitting his studies and started working for Paul Sorvino and Paul Vario.  As he began to work for these leaders, he joined the New York Mafia group and engaged in a serious crime such as truck hijacking and drug dealing (Albanese, 2014).  In the 1970s, Hill was incarcerated due to extortion offense, but after being incarcerated, he continued with his criminal lifestyles such as theft and drug-trafficking. He relied on drug smuggling operations to support his family and more importantly, he wanted to continue with the criminal activities to meet the needs of his drug customers.  Henry Hill could not get out of the organized crime business earlier because he was a hustler or in other words, he viewed the organized crime as a job.  Hill benefited from the organized crime as he could earn $5.8 million from theft (Albanese, 2014).  He had different jobs and an active youngster in the criminal activities.  He was running various business including guns, book-making,   drug sales, hijackings and money laundering. Since some of his criminal associates were killed and imprisoned, he continued to keep up his celebrity.

References

Mannion, J. (2003). The everything mafia book. Avon, MA: Adams Media Corp.

Albanese S. Jay. (2014). Organized Crime in Our Times. Routledge

Discussions Arguments

Discussion questions 1:

 Hofstede model and GLOBAL model are used to understand the cultural differences in international business.  Hofstede came up with five cultural dimensions whereas the GLOBAL study added new dimensions to the work of Hofstede and came up with nine cultural dimensions. The similarities between the models are that both have a similar cultural dimension that is; power distance and avoidance (McFarlin Dean & Sweeney, 2014).  In other words, the GLOBAL study was influenced by the work of Hofstede, and both provide an empirical base where researchers can understand the cultural differences models.  However,  the studies differ in that Hofstede focus on the concepts of culture whereas the GLOBAL  model focus on practices and values, face validity, personality dynamics and psychological sense. Another difference is seen in the number of dimensions where GLOBAL study added dimensions which are not included in the Hofstede work

 The GLOBAL model has limitations in that it is centric as its dimensions lack parsimony.  The study did not use objective features, but it used cross-cultural researchers and focused on the unfounded stereotype. The work of Hofstede also has limitations in that he focused on emerging economic powers to describe his cultural dimensions and underrepresented some regions (McFarlin Dean & Sweeney, 2014).  He also ignored subcultures within a region and concluded using wide generalizations.

Discussion questions 2:

 International managers may use the information about the cultural dimensions in understanding the different cultures in the international business market.  For example, they may use the power distance to understand the large power distance and small power distance in different societies. The information might be helpful as managers may understand that large power distance is characterized by autocracy leadership, centralized authority, power differences, and inequality (McFarlin Dean & Sweeney, 2014). They may also expect a participative management style and decentralized authority in societies with small power distance.  Since the cultural differences impact the international business, it is important for the managers to understand the cultural dimensions in order to address the problems.  By understanding the culture, the manager will build strong relationship with people, understand the motivational orientation and positive attitude.

Discussion questions 3:

 The universal work-related goals are the sustainable development goals which share a common vision of human well-being. In other words, the work-related goals reflect the moral principles and common responsibility.  Example of these goals includes achieving the economic development and equality.  In international business, countries should offer equal economic rights to both men and women and bring economic development by meeting social needs such as job opportunities, environmental protection, healthy and education (McFarlin Dean & Sweeney, 2014). However,   work-related goals vary across countries, and these include equality and in specific gender equality and equality in the distribution of resources.  Cultural values impact the work-related goals in that the cultural dimensions vary and it is important to understand the differences to meet the specific needs of the community. The Hofstede and GLOBE models show that countries have similar and different cultural values and the similarity and difference have an impact on the work-related goals.

References

McFarlin Dean & Sweeney D. Paul. (2014). International Management: Strategic Opportunities &

Cultural Challenges. Routlegde

Walmart’s Report in the United States and China

Company Overview

Walmart Inc. is a multinational retailing company that is involved in both retail and wholesale operations. Since its initiation in 1962 in the Arkansas United States, Walmart Corporation has retained the leadership position in the retailing industry. The company is today ranked as the global retail leader on the ground of its market share, profitability, resources and global presence. Currently, the company owns 11,700 stores in 28 nations (Hazzawi, Palladini & Martinelli-Lee, 2014). The company attributes its success to the use of strategic approaches and effective marketing strategies. Walmart provides an extensive range of products ranging from grocery, household items, finance, and pharmacy and so on. The company is guided by the cost leadership approach which has helped in gaining a competitive position in the industry.

Purpose of the Report

This report aims to offer an in-depth analysis of the macroeconomic environment of Walmart Corporation in the United States and China. The analysis will focus on how the macro environment setting impacts the firm’s economic operations and performance.

An Analysis of the Market Structure in the United States and China

United States

The United States retailing sector is the largest of the globe which is more than 50 percent higher than that of China despite its high population (Reuters, 2018). The retailing sector is very competitive as it is mainly dominated by some of the most established and global firms such as Amazon. The retailing industry is best categorized as very competitive. In that, there are many retailing firms which are mainly domestic and have acquired a notable and admirable reputation in the market. As per 2017, it was estimated that Walmart had acquired a market share of 21.5 percent within the retailing industry with 44 percent on the online platform (Chekwa, Martin & Wells, 2015). In other words, this makes the corporation the leader in the market over its close competitor Amazon (Deagon, 2018). The retailing sector has been a source of controversial debates in the recent based on its ability to expand and explore opportunities mainly in the potential and emerging markets. Competition in the retailing landscape is rising rapidly with the increased presence of small and international enterprises. The growth of convenience and online stores have become an additional source of purchase for the retailing consumers with a relevant market share which appears to be significant competition for the retailer.

The competitors in the market have created a reputation of offering similar but differentiated items. For instance, Amazon has dominated the online market as it offers the most convenient online purchases that are well supported by innovation and technology (Hazzawi, Palladini & Martinelli-Lee, 2014). However, Walmart has built an affordable, convenient and quality oriented brand that seeks to increase the consumer’s satisfaction and experience (Blackwell & Eppler, 2014). The barriers to entry in the market are rather minimal, but the growth of the market is lower considering that extensive resources are needed for efficiency. Also the leading players in the market boast of intense brand loyalty (Zaczkiewicz, 2017). They are well established regarding resources which generally supports their marketing ventures and expansion into the global market at ease.

China

While the retailing sector has recorded a significant growth globally over the last few years, China has been a significant contributor to this expansion. China is the leader regarding population and therefore it provides a potential retailing market. However, it is indicated that the retailing industry is lower. China falls under the emerging retailing markets with an estimated growth of about 10 percent yearly when equated to the global range of 2 to 5 percent (Peltier, 2015).  Based on research, the Chinese retailing market is dominated by domestic firms which have occupied more than 80 percent of the entire market with a lower portion for foreign firms. Over the last few years, it has been attributed that the market has expanded rather significantly which has changed the situation of most firms as a whole but multinational firms such as Walmart seems to be struggling.

The retail market can be categorized as a monopolistic competition due to the increased risk of new firms. Additionally, there are very many retailers in the market which is evident by the level of the competitors’ products differentiation to appeal to the general public where China’s society is collective (Lamb, Hair & McDaniel, 2012). The market is one that discourages the entry of foreign companies due to the high operation tariffs, great advertising and promotion expenses and intense loyalty to the domestic firms as a whole. Based on 2017 reports, it was established that the total of retail sales reached $5,781.43 billion and it is expected that the sales will expand by about 7 percent in the next year (Peltier, 2015).  

Based on the graph above it is evident that the United States experienced a notable GDP decline as from 2006 and 2009 during the last global financial crisis. The GDP level began to rise positively in 2010 which demonstrated an additional slow down for years. However, the situation was different in China since the crisis held minimal impact on its economic stability. In that as from 2005 and 2015 the GDP in China was about 9.7 which was higher than that of the United States in its peak period (Statistics Times, 2015). The decline in 2008 was driven by the low level of exports from the global setting.

Walmart experienced an intense sales decline in the United States during the crisis period which is attributed to decreased number of customers flow to the stores due to the spending fear among the consumers. As an affordable store, the company experienced losses that threated closure of some of its stores in the nation. The stability of the economy in 2010 resulted in jobs creation along with higher spending which resulted in higher sales and revenue. However, the stability of the business in China was more desirable since the spending was higher and the company reported a positive performance. The trend created more opportunities for growth due to the rising urban population and increased earning among the consumers (Donnan, 2018). 

            Due to the high population that is present in China, the per capita income difference amid both nations is rather high. In that the general population of China is like four times higher that of the United States. With respect to nominal concepts the GDP per capital of China account to 7,572 dollars which takes then eightieth position globally. On the other hand the United States takes position 9 among the wealthiest nations that holds a per capita income amounting to 54,678 dollars (Donnan, 2018). The United States takes the lead among the two with reference to per capita. With the exception of the global crisis it is rather evident that the changes that the demand for the company’s products is higher in the United States which is fueled by a higher spending habit. 

            In comparison to the United States, which demonstrated a rather stable inflation rate when equated to China which appeared to be unpredictable (Bloomberg, 2017). With respect to Walmart, the inflation rates in china are likely to affect its intentions for expansion as well as investment in general based on the fact that intense inflation is likely to result in the erosion of the corporation revenue due to prices variances that surrounds several aspects such as resources. With regard to the United States, the respective steadiness of the inflation will lead to an established and functioning economy which are likely to contribute to increased control expenses and rising productivity due to the capability for better management of anticipations that surrounds inflation. 

            Based on the graph the unemployment rate in China has been rather consistent between 2007 and 2011. In that the unemployment ranges from 4 percent to 4.2 as indicated. This is different from that of the United States which has experiences drastic changes. From 2007 and 2009 unemployment rate was low but later escalated during 2009 to 2010 and the situation only began to stabilize in 2010 to less than 2 percent. Evidently during the period Walmart benefitted more in the United States where the spending was higher when equated to China. In that individuals spend more when the income is consistent which then triggers their spending habits.

            The United States demonstrated a budget excess amid 2008 and 2009. The situation is normally characterized by intense taxes and lo spending tendencies which holds undesirable implication on products demand by creating demand for the basic commodities. Where there is a possibility that Walmart was not affected as much given that it provides affordable products it is evident that the customer traffic was rather low (Solomon, 2018). An assessment of the company’s performance demonstrate that its growth was minimal. From 2010 and 2017 the country experienced a budget stability and this has generally assisted the company in stabilization since the income gain has been stable. In the exception of 2011 and 2012 it is evident that the Chinese economy suffered from a budget short fall. This was well aligned with the needs of the government to standardize the business surrounding which has further been boasted by the rising middle class population.

            The United States balance of payment demonstrate a transaction record which creates a desirable amount for the nation between 2010 and 2016 with undesirable amount amid 20008 and 2009. The movement of BOPs in the United States is constant since the nation highly relies on imports as well as economic exchanges with the result being that there is an intense flow of finances to the international markets (Mclntyne, 2018). On the other hand in China the nation is highly dependent on export which has the capability to foster higher growth within the economy as the economy generates high capital. The state is likely to lead to the creation of more working opportunities which will enable the company to expand globally.

An Analysis of the Monetary and Fiscal Policy in the United States and China

            It is without a doubt that China was highly affected by the 2001 bubble. The company responded by developing a policy that tightened its economy through the increased interest rates. However, during the 2008 crisis the country responded by dropping the interest rates which favored economic development (Fernald, Spiegel & Swanson, 2013). In turn this led to a rather fast economic development and GDP. This is often contributed by the fact that the government is involved in controlling the financial industry. The structural reform has been helpful in controlling the rate of unemployment as a whole within the domestic landscape. In some cases this has incorporated tax reduction and exemptions. Due to the reduction of the interest rates this has created the opportunities for investment for the involved companies that has resulted in the ability to overcome from the low growth rate (Tan, 2018). Currently the country, boasts of being among the leading nations in terms of economic growth and investment opportunities.

Walmart is a retailing firm which implies that the ability to increase its sales as a whole is reliant on disposable income and government based policies that encourages more investment and spending. The company is one of the leading revenue contributors in the United States. While its operations had been affected back in China because of the policies that favors domestic market it benefited more on higher spending between 2008 and 2012 (XiangDong & Wang, 2011). With the increased individuals spending in support of the economy, Walmart is likely to benefit from increased revenue for its quality and affordable goods despite the fact that both governments are lowering their spending to avoid deficits that will affect the structural balance. The united government similar to that of China holds that the private industry is a major driver of economic wealth.

            An Analysis of the Foreign Trade Policy Instruments

            Over the most recent years, there has been a notable growth in trade liberalization in China. This resulted in the country exceeding America in 2013 and became the leading trade country. The development has been fueled by the general implementation of policy choices and price controls. It is worth noting that for 17 years now China has been a committed member of WTO which has facilitated the desire of the country in participating in global trade as one of the benefit. Based on a review conducted by WTO, the United States is engaged in the local and multidimensional incentives that have resulted in open trade (Willige, 2016).

            Most countries are involved in the implementation of policies in order to ensure that their economic growth is stabilized. The country has implemented policies that seeks to enhance trade accessibility beyond the United States and additional multinational markets to promote developments with reference to trade (Bradsher, 2018). China has a weak value when equated to the United States. The tendency of China is objected at encouraging Walmart’s exchanges. In other words the operation of Walmart in China is more likely to experience revenue depreciation. In that its investment and stability in the future is to be negatively affected which further discourages market development. Similar to other companies that are involved in multinational operations Walmart’s performance would be impacted by exchanges prices in the chance that the value is low (Scott & Sam, 2016). Since the exchange value in the United States is higher, it means that as an affordable center corporation it is able to gain the utmost value from its operations there than in China. With the stability of the company other industries particularly those that supply products and the manufacturers will ultimately gain the benefits. 

References

Blackwell, R., & Eppler, D. (2014). An Approach to Strategic Situation Analysis: Using Models as Analytical Tools. Journal of Global Business Management, 10(1), 80.

Bloomberg. (2017). China’s per capita GDP set for ongoing rise as the economy shifts from manufacturing to services. Japan Times. Retrieved from: https://www.japantimes.co.jp/news/2017/06/26/business/chinas-per-capita-gdp-set-ongoing-rise-economy-shifts-manufacturing-services/#.Wy6EMWN9jIU

Bradsher, K. (2018). China’s Economy Grows, and Its Trade Gap with the U.S. Widens. New York Times. Retrieved from: https://www.nytimes.com/2018/04/16/business/china-economy-trade-gap-united-states-grows.html

Chekwa, E., Martin, J., & Wells, K. (2015). Riding On the Waves of Sustained Competitive Advantage: Consumers' Perspectives on Walmart Corporation. International Journal of the Academic Business World, 9(1), 61-73.

Deagon, B. (2018). Amazon vs. Walmart: Locking Horns in A Battle For Retail's Future. Investor’s Business Daily. Retrieved from: https://www.investors.com/news/technology/walmart-vs-amazon-retail-stores-e-commerce/

Donnan, S. (2018. US-China trade tensions hitting global growth, says WTO. Retrieved From: https://www.ft.com/content/67d3f55e-3e20-11e8-b9f9-de94fa33a81e

Douglas A. Mclntyne. (2018). As China GDP Surges, a Threat to US Position as Top Economy. Retrieved from: https://247wallst.com/economy/2018/01/18/as-china-gdp-surges-a-threat-to-us-position-as-top-economy/

Fernald J., Mark M. Spiegel & Swanson, E. (2013). Monetary and Fiscal Policy Effectiveness in China: Evidence from a FAVAR Model. Federal Reserve Bank of San Francisco.

Grieves, J. (2010). Organizational change: Themes & issues. New York: Oxford University         Press.

Hazzawi, I. A., Palladini, M., & Martinelli-Lee, T. (2014). The Wal-Mart Stores, Inc.: An American Dream That Touched the World. Journal of the International Academy for Case Studies, 20(2), 13-33.

Kaul, A. (2011). The Economy – it’s here and the jobs are where? The Global Forum. Retrieved from: https://theglobalforum.wordpress.com/2011/06/18/the-economy-%E2%80%93-it%E2%80%99s-here-and-the-jobs-are-where/

Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2012). Essentials of marketing. Mason, Ohio:         South-Western. Cengage Learning.

Peltier, C. (2015). China’s external accounts in transition. Retrieved From: http://economic-research.bnpparibas.com/html/en-US/China-external-accounts-transition-7/23/2015,25853

Reuters, S. (2018). Walmart opens first small high-tech supermarket in China. Retrieved from: https://www.reuters.com/article/us-walmart-china/walmart-opens-first-high-tech-small-sized-supermarket-in-china-idUSKCN1H90S4

Scott, M. & Sam, C. (2016). Here’s How Fast China’s Economy Is Catching Up to the U.S. Bloomberg. Retrieved from: https://www.bloomberg.com/graphics/2016-us-vs-china-economy/

Solomon, D. (2018). What impact would a trade war between the U.S. and China have on their economies? Focus Economics. Retrieved from: https://www.focus-economics.com/blog/impact-of-trade-war-between-us-and-china-on-their-economies

Statistics, Times. (2015). United States vs China GDP. Retrieved From: http://statisticstimes.com/economy/united-states-vs-china-gdp.php

Tan, H. (2018). China's economy grew 6.9% in 2017, topping both the official target and 2016's growth. CNBC. Retrieved From: https://www.cnbc.com/2018/01/17/chinese-q4-gdp-china-reports-fourth-quarter-gross-domestic-product.html

Willige, A. (2016). The world’s top economy: the US vs China in five charts. Retrieved from:  https://www.weforum.org/agenda/2016/12/the-world-s-top-economy-the-us-vs-china-in-five-charts/

XiangDong, L. & Wang, Y. (2011). Influence of the Chinese monetary policy on the current macro-economy — Analysis with the FAVAR model. International Conference on E-Business and E-Government (ICEE)

Zaczkiewicz, A. (2017). Wal-Mart Maintains Top U.S. Retail Sales Pole Position, Amazon Gains. Retrieved from: http://wwd.com/business-news/financial/telsey-advisory-report-walmart-10838088/

Leadership

 It is important to maintain a work-life balance to improve the personal health, efficiency, and work performance. In addition, work-life is important as it helps one stay away from the stress of work, pay full attention to family and friends while at home and on the tasks while at work thereby achieve both personal and career goals (Rolfe Amber, N.D). As my radiology careers mature, I will create a work-life balance to focus on both work and life issues such as family, hobbies and more.

 To maintain a balance between my work commitment and my personal life, I will create boundaries between work and personal things. For example, I may set eight hours for working and avoid any disruption in order to achieve my career goals.  After creating a clear working day and performing the task successfully, I will have time to enjoy personal life such as spending time with family and friends.  Second, I will achieve a work-life balance by setting achievable goals for both tasks and personal events.  To success in work, I will concentrate on important things, and at home, I will focus on doing productive things. By so doing, I will succeed in work and in personal life (Rolfe Amber, N.D). Third, I will balance task and own life by time in which I will spend with families and friends to improve my well-being and engage in constructive things such as doing exercise, visiting the sick and helping the community.  Since radiologist has essential role in healthcare,   I will avoid overworking and overstressing by making sure that I use the required time and energy to perform tasks.

 I will also practice mindfulness to decrease psychological distress and improve mental health.  For example, I may eat mindfully, walk mindful, listen wholeheartedly and be aware of my thoughts and emotions (Link, 2017).  All these exercises mean putting all the attention on what I am doing at a particular time.  I will also evaluate the important activities and spend time on them to develop a sense of accomplishment.

References

 Rolfe Amber (N.D).  How to: Achieve a work-life balance.  Retrieved from:  https://www.reed.co.uk/career-advice/how-to-achieve-a-worklife-balance/

 Link Lisa (2017).  MUST KNOW STRTAGEIES FOR ACHIVEING WORK-LIFE BALANCE.  Cornerstone University.  Retrieved from:  https://www.cornerstone.edu/blogs/lifelong-learning-matters/post/must-know-strategies-for-achieving-work-life-balance