Merger, Acquisition, and International Strategies

Introduction

            Acquisition and mergers entails dividing, selling, buying, and joining of various business organizations that have same entities which can assist in maximizing their profits. The objective behind this entails ensuring which different business organizations has the potential of benefiting within their particular venture (Dringoli, 2016). This is to imply that they have the ability of sustaining their economic base without necessarily creating child entity or a joint venture. Similarly, an acquisition is one of the corporate actions in which a business organization opts to purchase another business entity or company (Helén et al., 2012). On this which is common which acquisition is that it is the larger company which ends up purchasing a smaller firm hence keeping its original name. The companies to be considered in this case are PepsiCo Inc. and Apple Company.

            Consequently, PepsiCo Inc. is one of the leading beverage manufacturing companies which have managed to merge with several small business organizations for decades that have passed. The company is mainly known for offering various products such as breads, dips, sauces, desserts, gourmet meals, and so on (Weygandt, 2009). The company has a history of engaging in various acquisitions and mergers as well as operating solely. This then implies that the company has the capacity of benefiting from corporate level and other business strategies which are further discussed below.

            Pepsi-Cola was founded by Caleb Bradham in 1890. Frito Company was also established by Elmer Doolin in the year 1932 before it was later merged with Pepsi-Cola to from PepsiCo and Frito-Lay in the years 1965.  In 1977, Pizza Hut Inc. was also acquired by PepsiCo in 1990 before acquiring Tropicana Products in 1998. Later on, South Beach Beverage Company was also acquired in 2000 and Quaker in the year 20111 (Weygandt, 2009).

            Currently, PepsiCo Company has managed to be one of the leading consumer beverage and foods in the whole world through producing several products as well as serving global customers. The company has also maintained trading shares on the New York Stock Exchange hence improving its economic base (Keown, 2004).

            By considering the above merger and acquisition strategies, it can be recognized that Pizza Hut Inc. is one of the most profitable company that the PepsiCo Inc. can take into consideration in case it desire to improve and maintain its economic base. The example, Pizza Hut Inc. have been recognized as being one of the largest pizza company in terms of the number of the outlets it has as well as the percentage of the market shares that it manages to hold (Stefan, 2007). Another reason that compels this company to be number one candidate is that it was recently anticipated to one of the subsidiaries of the Tricon Global Restaurants Inc which was basically formed as the result of spinning off the restaurant holdings of PepsiCo.

            Nevertheless, it should be recognized that the objective of merging and/ or acquiring Pizza Hut Inc. entailed sharpening the focus their management authority. The reason for that is because the management authority had already realized that the business had already an outstanding financial strength which was translated to a bright future. For instance, considering the distinctive dynamics of their restaurants as well as the manner in which they pack their goods, it implies that Pizza Hut Inc. will give the management authority of PepsiCo Company, the capacity of flourishing their economic base as much as their distinctive and separate corporate and management structures are concerned (Sadler, 2005).

            Another reason which makes Pizza Hut Inc. to be the best candidate is that the company already has several restaurants in several states, hence making its annual sales to be in billions. Typically, this kind of economical growth is enhanced by ensuring efficient delivering of their products at an affordable price. The management authority also had tried to ensure that they have adjusted their entrants into the existing market so as to stay ahead of their rivals (Stefan, 2007).

            The company’s growth philosophy mainly take into consideration the needs and complaints of their customers. In return, it makes their customers to be contented with the products and services they offer to them. This in return will enable the management authority to continue building a strong financial base so as to offer sufficient financial growth.

            This strategy will also enable the business to have the capacity of establishing other restaurants in any growing and emerging markets.  This will of course assist the management authority of PepsiCo to balance their appeal to millennial and their esteemed customers.  In working or collaborating with their franchises, it implies that the company will have the capacity of instilling more competitive values to their market (Sadler, 2005).  

            Apple Inc. is one of the American companies which have been regarded as being in the category of the transformative companies which have the potential of improving their economic base. For instance, the company has been having the capacity of transforming its economic base since it was founded to the modern date (Reiner & Joseph, 2014).

            Considering the fact that initialing the economic base of the company was mainly founded by Steve Jobs, the truth that the company had already established its economic base. Some of the economic strategies which was obtained was mainly revolving in the manner in which each of the individual had the capacity of maintaining their economic base (Joseph, 2013).

            On the other hand, it implies that the company had many reasons which had compelled it to encounter some extra ordinary success. This is evidence by the details which the management authority provided. On the same note, the objective behind this is to imply that the company had potential of improving its economic bases (O'Grady, 2009).  The reason for that is to increase their growth strategy. From the time the company managed to maintain its public image, it implies that it was possible to increase its sale to about $100 million. The only task the company had faced entailed restructuring the capacity of the management authority which was somehow making it bankruptcy (Joseph, 2013).

            On the other hand, any business organizations have the capacity of improving their economic base. But in order to do that, it is obvious that there are several goals to achieve. The forest one will entail dropping some of the costly projects it initially had as well as streamlining its growth focus. Currently, it should be realized that the company have been having the capacity of improving its economic base. What have been making it possible is because of the proficient management authority it recently recruited (O'Grady, 2009).

            With respect to that, it should be noted the company has the ability of pairing modern technology which is linked with other innovative business models. The establishment of Apple and iTunes application stores is one of the primary examples that the management authority had taken into consideration. This is what made it possible for them to come up with other means of generating revenue through making customers to use micro content platforms. In so doing it implies that the company has ended up becoming the main producer of iPods that are majority of the consumers largely depends on (O'Grady, 2009).

            Conversely, it should be acknowledged that one of the business strategies to be used is their financial statement. The reason for that is because financial statement is not something which can be easily comparable with the financial statements of their rivals in the industry. The reason for that is because it is the one which depicts the extent to which the company can remain to be ranked as being some of the top ten profitable companies globally (Ulijn et al., 2010).

            Another reason for that it is because majority of the money lending institutions usually generate revenue from the interest that the borrowers pay. But for the business organization like Apple Company, this is a different exercise as compared to other service and manufacturing companies. Likewise, the huge profit margin that the company has been realizing for years that has passed does not necessarily the kind of marketing success that the management authority does for other outstanding companies in the same industry (Buckley & Ghauri, 2002).

            Despite the fact that there are still other more profitable companies in the same industry globally, the truth is that the total revenues the company gets monthly or annually from its day-to-day operating activities makes it to be the outstanding distributor of such devices and services. This, therefore, suggests that the company have managed to remain one of the most quickly growing multinational companies because of the various product successes which they lounged for decades that have passed (Faulkner et al., 2017).

            Nonetheless, the management authority of the company should ensure that they have managed to stick to such an objective with vast content operations for instance Apple Store and iTunes. It is, therefore, clear that for the management authority to enable the company to continue growing, there was the need of having and sustaining impressive sales in other countries. The reason for taking such countries into consideration is because they are one of the largest and fasted growing wireless markets all over the world (Buckley & Ghauri, 2002).

References

Buckley, P. J., & Ghauri, P. N. (2002). International mergers and acquisitions: A reader. London [u.a.: Thomson Learning.

Dringoli, A. (2016). Merger and Acquisition Strategies. Edward Elgar Publishing

Faulkner, D. O., Teerikangas, S., & Joseph, R. J. (2017). The handbook of mergers and acquisitions. Oxford: Oxford University Press.

Helén, A, Virpi, H, & Fredrik N. (2012). Mergers and Acquisitions: The Critical Role of Stakeholders: Routledge Advances in Management and Business Studies. Routledge Press

Joseph, K. (2013). Critical marketing audit: The case of Apple Inc. GRIN Verlag Press

Keown, A. J. (2004). <>. Beijing: Qinghua University Press.

O'Grady, J. D. (2009). Apple Inc. Westport, Conn: Greenwood Press.

Reiner, E. J & Joseph, J. (2014). Apple Inc Patent Landscape Analysis – January 1, 1994 to December 31, 2013. IPGenix LLC Press

Sadler, R. L. (2005). Electronic media law. Thousand Oaks, Calif: Sage Publications.

Stefan, S. (2007). Case Study: Pizza Hut, Inc. GRIN Verlag Press

Ulijn, J. M., Duysters, G., & Meijer, E. (2010). Strategic alliances, mergers and acquisitions: The influence of culture on successful cooperation. Cheltenham, UK: Edward Elgar.

Weygandt, J. J. (2009). Financial accounting. Hoboken, N.J: Wiley.

Agthia Group

Executive Summary

The report involves an analysis of marketing plan and strategy adopted by Agthia Group for its unique AL AIN Vitamin D water. The product is unique in the market in that it supplements the UAE market diets and serving the needs of a 78 % of the population that research has shown to have vitamin D deficiency. The marketing strategy for the product has been based on the vision, mission and core competencies of the firm. Through the integration of the 4Ps marketing mix to these aspects, the paper highlights how the plan has fared in the market and the improvements needed.  Trust from stakeholders and product innovation have defined this marketing strategy. The use of integrated marketing communication to create a connection between the consumers and the brand can offer an improved strategy.

Company and product description

Agthia Group is food and beverage firm based in Abu Dhabi and with its operations in various countries including Oman, Turkey, UAE, and Egypt. It was founded in 2004.The company also undertakes manufacturing, distribution and even marketing of various products such as animal feed, flour, dairy, tomato pastes fruit juices and even baked goods.  The company consists of two segments that include Consumer Business Division and Agri-Business Division under which its operations are undertaken (Agthia Group, n.d).

  Product

In line with the vision of the company, the AI Ain Water was launched with a focus on uncompromising heritage and quality, a brand that could be trusted to live up to its promise. The production of AI Ain water was also done in line with the commitment of the company to offer a broad, nutritious and wholesome product for the consumer so as to promote a healthy style of living.   The new product was produced with sustainability, innovation and knowledge aspects in mind in line with the market needs arising from Vitamin deficiency among the consumers.  The introduction of the product was also in line with leadership position of ensuring that nutritious, quality and responsibility in production, that is under continuous guidance of commitment and duty.  The basis of the product was an understanding of the pressing market needs and trying to meet those using innovative means.  The AL AIN Vitamin D serves as a way in which such commitment may be achieved.  The water container may be orange colored and became the only water bottle in the entire world to have Vitamin D and no preservatives.  The production of this water followed a market research that showed a deficiency of the vitamin among more than 78 % of residents in the entire UAE region. This presented a great health risk to the consumers who have low exposure the sunlight exposure since most prefer to engage in indoor activities during hot summer periods (Agthia Group, 2018).  In addition, the poor feeding habits and sedentary lifestyles make the matter worse since it leads to various health complications. This justifies the introduction of a product that would cater for the lacking vitamin.

Marketing plan

Vision

The vision of the company has been to get recognition as The Best Food & Beverage Company across the UAE market (Agthia Group, n.d). 

Mission

The mission of Agthia Group is to offer super value to its shareholder through a number of ways: providing products that are innovative, trusted and nutritious to consumers and aligning the wellness and health needs of customers to the products; promoting the chosen growth categories and customer services that is efficient , reliable and profitable and thereby acting as the best partner; achieving excellence in the organization by embracing a corporate culture in which achievement, commitment, entrepreneurship, and teamwork are promoted and therefore, being the best employer; upholding social responsibility and being an organization that is environmentally friendly (Agthia Group, n.d) .

Core competencies in marketing plan

 The core competencies of the firm are included in the highlighted company values that define its culture. The basic value upheld by the company includes determination, inclusivity, entrepreneurship, and authenticity.  The expertise and knowledge are used in ensuring that top quality products are availed to all in the market. The determination involves being driven and committed to the creation of value through all activities and hence, being the best (Agthia Group, n.d).  The company employs expertise and knowledge to make sure that the high-quality products it produces can be available to all, making the life of the consumers enjoyable.  This is in line with the 4Ps tools for marketing mix, which describes the various types of decisions an organization has to make in the entire process of providing the product or service to the market.  The product is a major concept in this tool. In making a decision about the intended product, one should consider some pertinent issues that will help in understanding the product they wish to sell (French & Gordon, 2015). These issues include the problem to be solved by the product, the product's benefits, and features, how it will be exceptional to the market and the consumers who are likely to buy it.  These enable a firm to understand the benefit a customer may gain from the product in terms of the needs it will satisfy (French & Gordon, 2015).  The features such as appearance or color and size will determine whether the product will appeal to the targeted consumers.  The brand name, its differentiation in comparison to the substitutes in the market is important aspects that will influence the performance of the product in the market. The AL Ain Water was a product whose production was based on the available market information describing the deficiency of vitamin D in more those 78 % residents of UAE (Ahmad, 2018). The product serves the need for a product that would provide vitamin D to the public and such a product would be available to the whole population.

 The benefits considered in the manufacturing the product was how the product would offer the required vitamin to the market.  The product is aimed at being a convenient supplement to diet and lifestyle that is balanced, instead of providing a singular solution to deficiency in Vitamin D.  The content of the product is also an important aspect considered since the product provides 50 IU that is suggested daily allowance in a 500ml bottle, and 331 IU in 330ml (Ahmad, 2018).  This means that the product is able to contribute towards supplying the body with the daily required level of vitamin D in the body. In addition, the product is composed of the best mix of other important minerals for the human body. To maintain clarity of the water, it has no colors, flavors, and preservatives added to it so that to make it appealing to the consumers.  These features are aimed at providing various health benefits to the consumers which include prevention of chronic illnesses such as heart disease, osteoporosis, multiple sclerosis and some cancers and various infectious diseases like tuberculosis.  The product is unique in that it is the only manufactured water in the market that can provide such benefits to the consumers and is currently not facing any competition from substitutes in the market (Ahmad, 2018). Even though the product cannot offer all the desired vitamin D benefits to the consumers, it is a good supplement to a lifestyle that discourages limited exposure to sunlight. Its features can meet the needs of the consumers in the market since it comes in the right content and quantity while leaving out any destructive components such as preservatives common in other beverage products.

The mission of the firm involves making its products available and accessible to all people in the market who are in need. The pricing of the AL AIN Vitamin is in line with the 4Ps tool.  The price of a product is determined by the value that buyers can derive from it, the established price points for such products in the market and the sensitivity of customer to price.  This involves considering whether a small change in price can result in the desired market share and profit margin or will lead to a decline of these.  This involves considering how the pricing of the product compares with other substitutes in the market (French & Gordon, 2015).  A firm has to consider that entails the price of a given product including distribution location, distribution, and the markup price for retailers and the payments plans.  The pricing of AL AIN Vitamin D at Dh2 for the 500ml bottle means that it can be afforded by many people in the UAE market who need it for replenishing Vitamin D in their bodies. A pricing above this would make the product unaffordable in the market, which is likely to attract substitutes that are lowly priced while a lower price below Dh2 means that the firm would not make desired return for the product.  The pricing of a product has to be reasonable and align with economic patterns in terms of demand and the characteristics of the product itself.  Understanding the consumer desires and the market conditions will enable a firm to set a price that a buyer is willing to part with while trying to satisfy his or her unmet needs (French & Gordon, 2015). This is the ultimate way in which a firm will achieve success in pricing strategy for its products.

The need for authenticity is a major competence for the organization and which forms the basis of AL AIN Vitamin D promotion, one of the aspects of 4PS tool. Promotion involves getting the message about a product to the entire target market by use of various methods such as online, press, radio, TV, billboards advertising (French & Gordon, 2015). The promotion of the AL AIN Water by the company is based on being genuine and honest by passing the right message to the consumer in regard to the product. The promotion message about the product is conveyed through various media billboards, TV and online advertising. The online advertising is a major component of the promotion and has focused on the content of the products and the benefits that consumers are bound to reap from it (Agthia Group, n.d). The environmental issues form an important aspect that is emphasized in the business model of the company and on which the firm places great focus.  Aligned to the commitment of the company to UAE community and the firm have created various initiatives aimed at raising the profile of the major environmental issue.  Key to this has been the reduction in usage of cups and bottles and improved bottle recycling so as to ensure that the AL AIN Vitamin D product captures the environmentally cautious public (Agthia Group, n.d). This is also in line with the firm's commitment to being honest and genuine in its dealings in a business environment that is becoming increasingly cautious on environment conservation and sustenance. As aforementioned, sustainability is a major value that is upheld and observed in the company's culture.

As a major manufacturing firm in UAE, Agthia Group has been able to establish a strong distribution network that has ensured that its products are accessible to everyone in the market, in line with its mission statement (Agthia Group, n.d). This relates to place, the last part of 4Ps tool.  Placement involves deciding on the product should be sold, so that it is available to online merchants and retailers. Figuring out whether the product is suited to the selected place is quite important since consumers high-quality products but that are also available.  It also involves the ease with which distribution channels can be accessed and how this relates to channels adopted by competitors (French & Gordon, 2015). An integral core competence of the firm is inclusivity which involves being open-minded to allow sharing and experiencing with various stakeholders including suppliers and elimination of any barrier. This is important in ensuring that a relationship is established with suppliers and right distribution channels that ensure that AL AI Vitamin D product taken to the appropriate marketplace.  The firm has an established distribution channel, where over 4500 employees are engaged in the daily process of distributing the product (Agthia Group, n.d). The wide network in the local market ensures that product is distributed to all the key retail chains including supermarkets in UAE.  The mission of the firm that involves daily consistency in the provision of quality and nutritious products for all people relies on the ability of the distribution process to deliver the product to the right place and at the appropriate prices and time. This ensures that the firm maintains its focus and direction in being the best provider of drinking products.

Situation analysis

The marketing strategy of Agthia Group has been based on innovation as the major driver of economic change, and which involves the creation of innovative solutions to emerging opportunities in the market. Marketing strategy involves having the right product at the right place and time and offering it at the right price. The strategy for Agthia Group in marketing the AL AIN Vitamin D water a marketing mix that is based on innovation in manufacturing a high-quality product, providing it in the appropriate marketplace , through sustainable promotion and price. The strategy has involved producing a product with the recommended mineral level to supplement the diet of UAE residents. Research and development have been a core aspect in the marketing strategy, which has revealed the need for such a product in the market considering the fact that over 78 percent of the population have vitamin D deficiency (Ahmad, 2018).

 Based on knowledge and innovation, the firm has produced a product that is unique in the market and which attracts little competition at the moment.  The strategy also involves a well-established distribution channel that ensures that its products are placed rightly in the market. Key to the distribution is a good relationship with suppliers and the efforts of a committed workforce that is involved in every operation of the organization. The pricing of the product is also convenient to the consumers and the firm, which makes the product accessible to the public and at the same time ensuring that the firm can maximize profits.  The promotion of the products by the firm is done in various forms including billboards, TVs, and online advertisement so that to convey to the client a message on the health benefits of its products.

Evaluation and interpretation of the situation

The success of a marketing plan can be measured using various metrics including the response by customers, partners, expansion in terms of market reach or market share and return on investment.  The launch of the AL AIN Vitamin D waters seems to have started on the right note, give the kind of response it elicited from key players such as the government minister.  The vision of providing a product that meets the vitamin D needs of consumers in UAE market attracted applauds from the relevant authorities especially the Minister of State for Food and Security (Agthia Group, 2018). The marketing plan was able to achieve the first objective of gaining the trust of relevant partners including the government who are able to influence the bearing of the product's performance in the market. However, having just been launched, it is interesting to know the performance of the product in the market and the kind of response it will receive from consumers. The product is claimed to appear pure natural with no added flavors and color which is likely to appeal to the larger market in the UAE and beyond.

The initial response to the online market of the product is promising and with such a trend the product can attract a huge base of customers in need of nutritious water.  The market response in the market in the little time the product has been on the market indicates positive outcomes but more needs to be done. The marketing strategy should focus more on the individual customer through personalized marketing. In case of a slow acceptance of the product by the consumers, it is important that the marketing plan embrace relationship marketing through integrated marketing communication.  Relationship marketing is aimed at the creation of a connection between the brand and the consumer; the connection should be strong and emotional.  The goal in this is to have a continuous passage of information to buyers after understanding their needs and relating their needs to the product being offered. Integrated marketing communication emphasizes on connecting the collected information about the customer and established needs to the product (Shimp & Andrews, 2013).   The AL AIN Vitamin D product should fully be marketed through communication and creation of a relationship between the need for vitamin D and the benefits provided to cure the deficiencies. This will ensure that consumers are sensitized on the need for buying the product.

Summary

Agthia Group launched AL AIN Vitamin D water with a focus on uncompromising heritage and quality, a brand that could be trusted to live up to its promise of providing the solution for vitamin D deficiency. The marketing plan for the company is based on its vision and mission of providing the trusted and best quality products to the market. The core competencies in the firm are contained in cultural values which include determination, inclusivity, entrepreneurship, and authenticity. The marketing plan of the firm is based on high-quality products and effective distribution network to ensure everyone has access to these.  The inventive and commercial spirit forms the basis of innovation in the company so innovative answers are provided for new opportunities. The marketing strategy of Agthia Group has been based on innovation as the major driver of economic change, and which involves the creation of innovative solutions to emerging opportunities in the market. The launch of the AL AIN Vitamin D waters seems to have started on the right note, given the initial positive response from partners and consumers. More customer-focused marketing strategy through integrated market communication is needed to create a brand –consumer relationship and drive up sales.

Conclusion

The marketing plan adopted by Agthia Group firm for the new AL AIN Vitamin D water has been based on the core competencies, vision, and mission of the firm. High quality, trust, innovation and customer needs have been the cornerstone of the marketing strategy. For improved performance of the product in the market, aggressive marketing through integrated marketing communication is necessary to sensitize the customer on the need for the product.

References

Agthia Group,( n.d). Everything we do at Agthia is wholehearted. Retrieved from: http://agthia.com/en-us/About-Agthia

Agthia Group,( 2018).Agthia Launches the World’s Only Vitamin D Water . Retrieved from: http://agthia.com/MediaCenterInner/id/1078

Ahmad, A., (2018).World’s first bottled vitamin D water launched in UAE. Retrieved from: http://gulfnews.com/news/uae/environment/world-s-first-bottled-vitamin-d-water-launched-in-uae-1.2158899

Percy, L. (2014). Strategic integrated marketing communications. Routledge. 6-11

Muhairi, S. J., Mehairi, A. E., Khouri, A. A., Naqbi, M. M., Maskari, F. A., Al Kaabi, J., ... & Shah, S. M. (2013). Vitamin D deficiency among healthy adolescents in al ain, united arab emirates. BMC Public Health, 13(1), 33.

French, J., & Gordon, R. (2015). Strategic social marketing. 87-89

Appendices

AL AIN Vitamin D water

Compare and Contrast the Experts Non Opinion

Introduction

The contemporary workplace is evolving rather rapidly. As organizations are seeking for innovative solutions to overcome the challenges within the business world, most corporations are attempting to apply diverse approaches in the quest of increasing the production level, increasing employee’s commitment and encouraging overall development (Schroeder & Lombardo, 2013). The conventional leadership approach from the top management to the lowest working level in organizations is changing rather gradually into a more cooperative style that empowers workers and shadows the boundaries amid managers and workers (Schroeder & Lombardo, 2013). One of the popular notions seems to indicate that an effective leader is an individual that has the full ability to understand all the worker’s needs and capabilities but also seek to motivate and empower change that in turn leads to better performance, satisfaction, and productivity. Management, supervision and leadership terms are utilized interchangeably, but they hold different characteristics in their functioning in running an organization. While the success of every firm is dependent on the workers, those that are accountable for the efficiency are the supervisors and managers (Harvey, 2002). The two positions are fundamental to every organization as they offer guidance to the involved employee’s teams in pursuing collective goals. Managers are involved in controlling and administering the organization while on the other hand, a supervisor is responsible for monitoring performance and work of the employees. In other words, the roles of managers and supervisors are interconnected and yet different but they are responsible for the success of the company.

According to Schroeder & Lombardo, (2013) leadership can best be described as an act of leading individuals group. Every leader differs from the other due to their personalities and choices to lead. Effective leadership is one with an authoritative character that demonstrates, morality, reliability, and honesty. Effective leaders have the ability to develop and achieve complex goals, taking a swift and active deciding even in challenging situations while accounting for the risks and benefits. Management can best be described as a problem-oriented procedure that is involved in the coordination of different operations of employees to sustain high performance and achievable goals. Leadership and management are related but not the same because one cannot be effective in one without the other (Kourdi, 2015). Any operation that seeks to create a separation amid the two will in most instances lead to the evolvement of more issues. In this context, the manager is responsible for planning, organizing and coordinating operations while leadership is all about inspiring and motivating individuals.

Based on Gayle & Bergsteiner, (2011) the contemporary techniques of management, leadership, and supervision differs from the traditional ones. Most likely, there was an era when managers would not be differentiated from leaders as their objective was to achieve efficiency, but things have changed. In this modern economy, value is mainly generated from the growing knowledge and based on the expectations of these people their roles cannot be differentiated. Employees currently look up to the organization's managers not only to be assigned duties but also to offer a description of the set goals and objectives. On the other hand, managers are also expected to play part in the organization of employees not only with the objective of increasing efficiency but also in the development of skills and achieving desirable results (Schroeder & Lombardo, 2013). Effective management is not all about organizing operations and administering operations rather it is about leading employees on everything that they are required to achieve while maintaining a balance amid productivity and efficiency. An effective manager is definitely a performing leader but the difference is that leaders have followers while managers are involved in monitoring those following (Gayle & Bergsteiner, 2011). An effective business operator is required to have strong leadership and management skills so that they are fully able to encourage their employees to work for the success of the organization. Leadership is mainly grounded on ensuring that people comprehend and believe in the created vision for the goals to be achieved while management mainly deals with monitoring and coordinating daily operations and measuring performance.

Management deals with a more broad focus than supervision which is only responsible for a limited unit (Schroeder & Lombardo, 2013). However, despite their differences, they also have some defining similarities regarding their functions. The effectiveness of a manager within the organization is dependent on the role played by the supervisors. In that, both of them are among the primary stakeholders of an organization as they play part in leading. In addition, they are responsible for encouraging and leading employees for achieving set goals. They also act in the assigning of different tasks to the involved subordinates which help in ensuring that the plans are practical as all the staffs look up to them. The leadership approach of a supervisor is an internal one since they deal with the staffs that operate directly under their supervision while the manager takes an extensive approach since they are responsible to internal and outward operations such as the needs of other stakeholders. A supervisor is in charge of the employees and allocation of tasks while the manager controls resources and coordinates operations with the aim of achieving efficiency (Gayle & Bergsteiner, 2011). In other words, supervision and management roles are part of a company’s accomplishment or failure. Their functions are connected in some ways but differ in terms of duties fulfillment, approaches, power, and personalities.

According to Harvey (2002), there are several leadership approaches. Every leader has their sole personality and leading style that determines the effectiveness of their employee’s management roles. However, for one to be considered as an effective leader consideration regarding the situation, those involved and the needs of the organization must be accounted when selecting how leadership is to be approached. The notion that using the easiest approach will lead to high productivity is incorrect. Leadership approaches are not a matter of choice rather the selection is based on the need of the workers which in turn equips them with motivation, thus leading to high productivity (Gayle & Bergsteiner, 2011). In that, depending on the situation one can change the approaches from autocratic to democratic leadership and so on. This means the personalities of those that are involved are also be too accounted for. this is achieved by evaluating their expertise and competence which means that if the workforce is properly trained, inspired and knowledgeable, then it means that the selected leadership should be the one that offers them liberty and independence. However, if the employees have not demonstrated much in regard to being performers or motivated then the leader is expected to opt for a more authoritative and supervisory leadership approach (Schroeder & Lombardo, 2013). Leadership is never easy and thus opting for simple strategies only implies that the leader is willing to fail.

Harvey, (2002) asserts that situational leadership is challenging as it forces an individual to consistently assess the existing situation that incorporates performance, skills, and motivation among employees. In addition, every individual has an approach that they feel is more applicable and in most cases, the appropriate approach is not the same as the one that the leader is personally at ease with. Even though situational leadership is challenging it is more appropriate for use within the contemporary setting. In addition, leadership in itself is challenging and therefore, requires a rather complex approach that seeks to address the underlying issues. Given that one of the major requirement of an effective leader is to be dedicated, practicing such a style will lead to the rise of desirable results. Delegation involves presenting and evaluating the existing issue while allowing the members to play part in developing the most suitable action. This is more of a democratic form of leadership where the leader is involved in sharing his control and power with the workers (Schroeder & Lombardo, 2013). This helps in ensuring that the employees are fully motivated to work to the fulfillment of the set goals by creating a sense of value. Once the employees are involved in decision making this creates more inspiration which in turn improves the relationships leading to high performance and efficiency.

Harvey (2002) notes that delegation should always be followed by supervision. Supervision is mainly focused on monitoring and evaluation that is performed by the leader over the assigned tasks. Any leader that fails to supervise the allocated duties and operation demonstrates an aspect of abandonment of their leadership responsibilities. A proper balance is to be created amid the assigning performance by every employee. Situational leadership is the most suitable style because it acknowledges that the most applicable leading approach might differ based on the existing situation and those that are involved. This approach is not only flexible but inclusive as it seeks to ensure that the needs of the employees and those of the organization are met collectively (Kourdi, 2015).

There are a number of descriptions and definitions of what an effective leader entails but there are some major principles that result in leadership efficiency that can never be ignored. To begin with, leadership is a habit rather than a managerial status (Gayle & Bergsteiner, 2011). This means that leaders should be accountable for decisions and create change within the organization. Leaders serve in encouraging followers to establish and utilize their potentials for growth. In addition, the best way through which a leader that influence the crowd is by acting as the example of the needed change. This means that rather than focusing on telling employees what should be done they should show how things should be accomplished. In other words, leadership implies creating changes which are not just the operation of developing goals but seeking to achieve the set objectives. Communication should remain constant, which is useful in eliminating confusion and encouraging growth since every employee is aware of what is needed from them and how it should be achieved (Mikkelson, York & Arritola, 2015). Also, a leader should have a well-developed vision that is not only feasible but justifiable. With the absence of a vision, all the activities being developed are characterized as useless. Every individual will certainly be committed to their duties but the main thing is to ensure that all efforts are objected at the attainment of the vision. To be precise, Vision is the thing that motivates individuals to act which in turn makes coordination easy. On the ground that leadership revolves around individuals, simply communicates that a leader should focus on improving their relationships with others by engaging employees, motivating them and being the best example (Mikkelson, York & Arritola, 2015). It is worth noting that being an effective leader does not blur one from mistakes, and these should be used as the experience of moving forward. These mistakes demonstrate that the leader is working as needed and efficiency can be achieved with commitment.

With respect to leadership, the traits of a manager and supervisor are different and similar on different grounds. To begin with, an effective manager or supervisor should be equipped with shared communication abilities (Schroeder & Lombardo, 2013). Without the capability of making the set desires apparent, the employees will not understand how the delegated tasks should be accomplished. Another aspect that is of equal significance is the ability to comprehend and account for the employee's responses. In that, an effective manager has the highest ability to communicate the company’s vision to the staffs and describing the best mode through which the goals can be achieved without fail. On the other hand, a supervisor has the responsibility of making direct report to the manager which requires good communication (Mikkelson, York & Arritola, 2015). An effect supervisor relates well to the workers while sustaining open and yet achievable communication grounds that helps in elimination communication issues and encourage progress (Gayle & Bergsteiner, 2011). If the communication is consistent, this means that there is no confusion and the understanding within the workplace is a desirable one. With this, efficiency is the resulting outcome with high productivity and revenue gains.

Leadership is not focused on monetary value rather, it is a practice that involves chasing a created vision. Managers same as supervisors should be guided by the capability to delegate. This is because while the supervisor delegates tasks to the subordinates the manager does the same to the supervisors who are responsible for running different units within the organization. An effective supervisor is the one that succeeds in allocating duties to the workers that are equipped fully to handling the selected duties (Kourdi, 2015). The manager, on the other hand, follows the company’s vision to create responsibility and set goals. With proper supervisory delegation then projects become more objective as efficiency and earnings are maximized. This means that being a leader does not comprise of chasing revenue but efficiency which with it comes performance and efficiency which are associated with the revenue increase. On the other hand, with poor delegation and supervision of activities then performance is affected as the set goals will not be achieved thus affecting the general productivity of the company. In other words, the delegation ability by both the supervisors and managers are related as they are the main determinant of failure or achievement. Both of them should also demonstrate confidence and flexibility. This is because different situations are bound to come up this requiring the use of different strategies. Even during a difficult situation, as leaders, they should demonstrate confidence so that the can serve as an inspiration to others (Schroeder & Lombardo, 2013). In that with insecurity, a negative surrounding will be developed as the employees will tend to perceive that the leader is not certain which leads to production decrease.

On the other hand with confidence, comes guarantee and positivity thus leading to better performance. Since supervision is all about interacting with the employee’s humility and patience is necessary because the different personality and diversity create complexity within the environment (Gayle & Bergsteiner, 2011). An effective leader should be principled and trustworthy. In that, as a manager and supervisor one should strive to ensure that the set goals are achieved. An effective leader is an individual that remains on the right track which ensures that he is trusted by the staffs to make decisions even in the most challenging situations. In other words, a good manager or supervisor is the individual who seeks to provide leading skills and act to bring the employees together. This is the individual that possess effective communication abilities, demonstrates no form of favor, dependable, confident, and supple and can efficiently delegate (Mikkelson, York & Arritola, 2015). A leader should also not be overconfident but should be ready to learn while ensuring that the subordinates are treated well. In the contemporary business world, teamwork is vital and thus, good leaders are those that have the ability to establish exceptional strategies of ensuring that the created teams remained intact while directing the members towards the achievement of a collective objective.

In regard to decision making, effective decisions are made within a stipulated plan. Effective leaders are not only focused on making decisions that benefit the company but also strive to create a positive working surrounding where the decisions can be made (Kourdi, 2015). This decision should be made based on the situational approach which involves conducting rather a thorough investigation of the existing situation and coming up with the most suitable alternatives to solve the issues. Once the options have been evaluated and the best option selected the decision should be communicated to the employees to allow them to familiarize with the idea and give their options which are followed by taking an action. Employee’s performance and motivation is the primary priority of supervisors as these aspects determine the general productivity of the employees. This means that for the set goals to be achieved, the commitment of the employees should be gathered first. Motivation is in most cases gained by focusing on the creation of rather close relationships with the staffs which help in understanding both their needs and concerns. In addition, through a democratic leadership, the employees have the opportunity of raising their ideas which makes them feel more valued and motivates them to commit to the organization. The performance of every individual is evaluated by the supervisors but remains the concern of the manager as well as these operations determine the stability of the organization.

In summing up, it is evident that supervising and management roles are closely related to leadership despite the fact that they seek to fulfill different objectives. In order for an individual to be considered to be on the effective leadership, the ability to lead employees effectively is needed. There are a lot of responsibilities that are derived from management and supervisory leadership and team leadership is a necessity. Communication, delegation and supervisory skills are a major necessity in leadership but this does not necessarily imply that the role is an easy one. Situational leadership style is the most preferred approach in the contemporary setting based on its ability to consider the environment, situation, organization, and individuals. In other words, leadership characteristics are uniform across different positions and their application determines the failure or wellness of the organization.

References

Gayle C. Avery & Bergsteiner, H. (2011). Sustainable Leadership: Honeybee and Locust Approaches. Routledge.

Harvey, A., (2002). The Call to Lead: How Ordinary People Become Extraordinary Leaders.  Cypress Publishing.

Kourdi, J. (2015). Business strategy: A guide to effective decision-making. London: Profile Books.

Mikkelson, A. C., York, J. A., & Arritola, J. (2015). Communication competence, leadership behaviors, and employee outcomes in supervisor-employee relationships. Business and Professional Communication Quarterly, 78(3), 336-354.

Schroeder, D. & Lombardo, F. (2013).  Management and Supervision of Law Enforcement Personnel. (5th Ed.)  Charlottesville, VA: LexisNexis-Gould Publications.  ISBN: 9781422491515.

            Case Analysis: Mountain Man Brewing: Bringing the Brand to Light

Mountain Man Brewing company (MMBC) has enjoyed undeniable success in regard to sales and profitability throughout its operational period due to its strong brand, quality, and unique products taste (Abelli, 2007). However, in the recent, the company has begun experiencing sales decline despite its authoritative brand and heritage in the region. There are a number of factors which are accountable for this change beginning with beer consumer’s preferences change. Most individuals have been in the recent been opting for light and quality beers which have led to the sales deterioration of finest beers such as the Mountain Man Lager. To be precise over the past couple of years the general sales of light beers has increased while the general rate of beer consumption has decreased due to increased competition from wines and spirits products as well as taxation rise (Abelli, 2007). This does not end there as the increasing awareness in regard to health-based worries of beer consumption has played part in the decline.

MMBC lager brand has remained successful in the past years based on its adherence to quality which has, in turn, gained consumer’s loyalty. Although the company operates as a regional brewer, it has created a recognizable and accepted image as it is accounted for the most popular beer in West Virginia (Abelli, 2007). Also, the company holds an authoritative brand positioning in the market which favors its differentiated taste with the use of special and local ingredients. In addition, the company owns some of the most skilled sales staffs which help in getting the products directly to the consumers. To retaliate, the company’s legacy remains to be the primary differentiating characteristics from all the other competitors (Abelli, 2007). All its consumers have remained loyal to the products on the ground that they are made from natural ingredients while following a home recipe to incorporate the consumption needs in the region.

For close to 50 years, MMBC has held the highest market share in West Virginia. The company has for the longest period targeted the working class persons. In addition to its rather improved branding initiatives, MM lager pricing was very competitive as even though it is categorized as a premium brand the prices remained favorable (Abelli, 2007). However, its sales decrease has been caused by the fact that the company has not been able to change its business model for the longest time. With the increasing competition, beer consumption decline and preferences change the company is necessitated to introduce the light beer to boost is target market. MMBC’s promotional efforts include the engagement of salespersons who are well trained while using increased marketing and promotional programs that seek to create awareness and familiarity in regard to the product (Abelli, 2007). These strategies are effective as they reach the targeted market directly while addressing their quality and premium needs.

I believe that the introduction of the light beer will solve the sales decline issue. In that, this approach will seek to expand the company’s market by reaching a new target that includes younger persons thus increasing its sales. In addition, based on the current situation in the market where preferences changes and competition are norm business diversification is a reasonable approach that will seek to increase its sales in the future. Currently, the light beer drinkers are between 25 and 44 years a sum that is expected to increase by about 4 percent thus making the move feasible (Abelli, 2007). The company can take advantage of its positioning in the market which will still secure its MM lager brand.

Reference

Abelli, H. (2007). Case: Mountain Man Brewing: Bringing the Brand to Light. Case Briefs, Harvard Business School.

Employment Relationships

 Employment relationship is the relationship between employee and employer where the employee is expected to perform task while adhering to the rules and regulations provided by the employee (Venkataratnam, 2004). Employment relationship is important as it allows the employee understand his or her rights and obligations. I agree that   the employer usually has the authority in  the employment relationships because  in the organization, employers  has the authority to make decisions and an employee should be under  the employer authority  and  follow the guidelines in  performing  the assigned tasks. Note that the employer usually has the authority in that he or she should develop a control system such as compensation systems which align with organizational goals (Venkataratnam, 2004). Other point is that the employment relationship is regulated or in other words an employer should create ‘set of rules’   which   the employee should follow. In the contract of employment, employees are viewed as subordinates and an employer has an obligation and authority to ensure that the employee adheres to the rules. When the employee violates the employment contract, the employer has the authority to take courses of action such as legal action (Venkataratnam, 2004).

The employee possibly will have a maximum power over the employer especially when the organization requires an employee with special skills to perform a particular task. In this scenario, an employee has a maximize power for the organization to achieve the goals in the internal labour market. The scenario creates a market relationship where the employee has the   ‘responsible autonomy’ in managing the work and enjoying a maximum power over the employer (Ruysseveldt, Huiskamp & Hoof, 1995).  At this point, employer and employee may agree on compensation amount and an employee has the authority to express his or her concern.  Since the employee has special skills on a particular task, he or she controls the performance.

References

Ruysseveldt, J. ., Huiskamp, R., & Hoof, J. J. B. M. (1995). Comparative industrial & employment relations.

London: SAGE Publications.

 Venkataratnam. (2004). Personnel Management and Human Resources. Tata McGraw-Hill Education,

Week 2- Statement of Core Problem

 Reg Jones Welch had raised the bars of General Electrical so high such that GE shareholders wondered whether his forerunners, will be in a position to sustain the company leadership, change, and growth. More specific the worry was the generation of shareholder returns which amounted to 23% during the Welch era (Bartlett & Wozny, 2005). The core problem presented in the case study of General Electrical involved getting a leader who would sustain the pace of change and growth experienced under Welch leadership. Poor business management results in business failure. While good business management practices result in business success. In the case of General Electric, Welch addressed the issue of business management until it reached a point where the firm became a world example of perfect leadership and management. Welch addressed management problem by coming up with initiatives such as company restructuring by changing the business standard to #1 or #2 that is fix, sell, or close, best practices and work-out initiative dabbed as software initiative and boundary-less behavior among others (Bartlett & Wozny, 2005).

The old structure and culture of the firm were was so ingrained that it took Welch two decade to rectify the problem and given another decade he could have done extra work on the management. The problem can be termed severe since there was still room for greater improvements. Poor business structure and culture have their implications that need rectifying in order to achieve proper employee management, realization of desired profits, reducing internal conflict in a firm, improved competitive advantage and enhanced expansion ability.

The problem of poor structuring and organizational culture is mostly felt by the leadership and key stakeholders of the company. In our case leadership may encounter conflicts as different manager try to pursue different courses to achieve success. In a well-managed company, leaders speak a common language and conflicts are rarely witnessed. Key stakeholders are affected in the sense that the business does not realize its goals, therefore, realize low profits or no profits and in other cases incur losses.

References

Bartlett, C. A., & Wozny, M. (2005). GE's two-decade transformation: Jack Welch's leadership. European Case Clearing House.

            Strategic Management Issues a Case Study of Carrefour Company

            Case Description

An international business operation is a subject of business ability to survive. The retailing sector has in the past decade emerged to be among the most profitable businesses that not only drive the economy but also play part in industrial growth. However, despite the retailing success, highly leveraged companies are centered on restructuring their strategic operations for higher gains as they are faced with unending market challenges. Strategic management can best be described as the process of objectives and policies development while allocating the existing resources to better meet the set plans (Rothaermel, 2015). In UAE similar to other areas, rapid industrial changes are forcing most businesses to evaluate their strategic investments to enhance their performance in the local and international sector (Bourke, 2015). For the last couple of years, Carrefour has been expanding globally and performing quite desirably in reference to profit generation, growth as well as sustainability. The company is boasting of its consistent growth and competitive positioning that has placed it on top of most established retailers. However, in responding to the issues of competition and the need to attain sustainability the company is focused on market expansion.

Carrefour which was established in 1959 in France is considered to be the second leading retailer globally in terms of revenue and market share and the leading retailer in the European region. With its presence in more than 32 countries (Yoder, Visich and Rustambekov, 2016). In the last few years, UAE has experienced a number of differing retailing trends that incorporates the rising and demand of small and convenient market stores. Carrefour occupies 24 percent market share in UAE which has mainly been derived from its aggressive expansion of creating more branches aiming at 10 at the end of the year from the existing three. Based on its dominance on the global sector the company has acquired such a positioning based on its ability to provide products variety to the UAE market. In addition, its resources and having a reliable supply system plays part in its efficiency in general and the fact that it has positioned itself as a reliable and convenient brand. The business world is today experiencing major changes like increased competition, technology advancement, and globalization. These trends have in turn offered market opportunities to different business companies and thus fueled them to expand internationally (Gollnhofer and Turkina, 2015). In the last year’s most companies have shifted their focus from the local to the international ventures while utilizing ranging techniques to get reach of the market fully.

Within the Middle Eastern region, Carrefour has more than 175 stores in about 15 countries while serving more than two hundred thousand customers daily (Yoder, Visich and Rustambekov, 2016). Carrefour mainly operates distinct hypermarket and supermarket retailing stores in the quest of meeting the increasing needs from its diversified consumer market. The company mainly targets different consumers from low to upper-class settings. In 2011 the company acquired a financial revenue of more than 22 billion within the first year quarter (Yoder, Visich and Rustambekov, 2016). Along with its determination to the guarding its brand by offering the largest range of products quality and monetary value, the company also provides unmatched options with over 100,000 products incorporating of foods, households and other products. The company is also committed to compensating its consumers by offering unique and differentiated retailing experience based on its focus on quality and safety.

Carrefour is guided by money value concept boasting of having the most extensive product range base. The company being an international retailer has created a wide presence in different regions which is linked with immense success and thus it gathers and attracts consumers within UAE because its brand is strongly linked with middle-earning consumers from the Asian and Middle Eastern regions. Currently, Carrefour is focusing on is a multi-branded strategy which seeks to expand its operations to convenience and supermarket stores. Of all the company’s revenue, 90 percent is accounted to the greater presence of hypermarkets in the shopping facilities such as malls (Gollnhofer and Turkina, 2015). The company’s global operations also facilitate the company in accessing an extensive supplier network thus offering its products at favorable prices.

Unlike the leading retailers in the industry such as Walmart whose operating generic strategy is the cost leadership one, Carrefour is dependent on differentiation. The primary objective in regard to differentiation is creating the impression that the offered products are different from what all other competitors provide (Mahfooz, 2014). The primary advantage based on this move is that the company has been able to overcome competition challenges as presented by the cost leaders based on the notion that they are not able to match the differentiation. The major aspect that has assisted the company in supporting its strategy is the fact that it has an extensive range of resources. Carrefour is focused on differentiation on the ground that it is able to provide quality, safe, convenient and diverse products to its consumers at all times (Mahfooz, 2014). Such values are not met by the competitors thus placing the corporation at the advantage.

Figure 1: Global retailers with respect to revenue generation

In UAE the major retailing competitors for Carrefour are Lulu, and Choithrams Lulu enjoys the largest market share of about 32% followed by Carrefour with 24%. This dominance of Lulu is mainly attributed to the fact that it is a local corporation and thus loyalty to the consumers play a part. Carrefour is objected at becoming the retailing leader in UAE and globally by ensuring that it consistently expand its presence while meeting the changing consumer needs. In that its strategic objectives include growth, reducing cost, increasing profit, expansion, increasing value for its online business. This comes with the need to maximize its stakeholder’s earning, transform shopping experience for all its retailers and upgrade its market base for high sales and revenue gains. Due to the increasing competition in the industry the company is focused on gaining sustainability which can best be achieved by constant expansion while adhering to the differentiation strategy (Gollnhofer and Turkina, 2015).

Figure 2: Market share in UAE retailing market

            While Lulu is the retailing leader in UAE and Walmart is ranked top on the global scale, Carrefour is quickly responding to the increasing market needs so that it can compete strategically. The company is focused on taking advantage of the already established industry by the leading giants in developing its own abilities and becoming the retailing leader on the global scale.

Strategic Management Question

1. With respect to strategic positioning, how has Carrefour developed a competitive advantage within the retailing industry?
2. Is market expansion the most suitable choice for Carrefour in achieving its strategic expansion objectives which are maximizing revenue gain, expanding its market share and sustainability and what factors should the company consider?

Teaching Notes

Question 1: With respect to strategic positioning, how has Carrefour developed a competitive advantage within the retailing industry?

With the stability of the retailing industry, both the market share and market expansion have decreased in the modern business setting. This is mainly because as the retailing business has been categorized as highly successful in terms of revenue generation more and more firms have ventured into the industry (Mahfooz, 2014). Thus, the retailing industry is recommending differentiated and discounted approaches in the quest of attracting more buyers into the industry to expand the market gains. It is rather apparent that the retailing industry is associated with the highest market share based on the fact that retail shopping is inevitable. However, with the saturation of the industry and the domination by some of the leading and well-established firms in the globe, companies are being pressured to adopt strategic moves in order to secure their positions and attain sustainability. Survival is the essential aspect of the international business which cannot be achieved without commitment. In 2016, the retailing industry experienced an economic drop based on the persisting financial challenges in UAE (Yoder, Visich and Rustambekov, 2016). Consumers retailing confidence remained uncertain based on the fact that shoppers grew less enthusiastic in regard to their financial spending. The retailing revenue in 2016 was 56.6 billion dollars with expected rise up to 71 billion dollars in the next four years which accounts to a 4.9% increase.

Figure 3: Retailing industry gains in UAE

It is evident that Carrefour’s main competitive strategies are grounded on differentiation and cost leadership. In that, the company has a reliable supply system which implies that its ability to provide products at the least prices is well supported. The company benefits from low-cost strategy from the scales economies, production efficiency, and low operating expenses. The company is able to maintain the strategy based on its ability to center its approaches on cost control. For the corporation operating under minimal expenses is its leading priority which helps in competing fully against all the other companies (Mahfooz, 2014). Despite the general application of these strategies, the company has not been able to emerge as the leader in the UAE as it suffers from a low market share.

Mahfooz, (2014) argues that differentiating a company’s products from those provided by the competitors is essential because competing on the ground of cost leadership is not enough. However, companies should try to generate profit and take advantage of the existing market changes and utilize them as investment opportunities thus reducing their operating threats. The Resource-Based View strategy (RBV) is essential in guarding the company’s competitive advantage. RBV is a management tool that is applied in the assessment of the existing strategic assets for the company (Kozlenkova, Samaha and Palmatier, 2014). Fundamentally, RBV is grounded on the notion that effective and efficient use of resources can assist a firm in determining its most appropriate competitive advantage. By creating more strategic ventures the company can gain full control of its operations that would not only seek to generate high value but lower the operating expenses thus generating a competitive advantage.

A company’s resources are the foundation of strategic management success. In that, the capability of the company is mainly determined by resources availability that leads to high-profit gains. In addition, sustainability and productivity are challenging to maintain without the availability of resources. In this context, companies are required to implement strategies that offer productivity, sustainability and differentiation benefits over the competitors. Carrefour has an extensive availability of resources which can be used in strategically positioning the company for higher gains.

Porter’s Generic strategy can be applied in exploring Carrefour’s strategic and competitive position in the retailing market. The most suitable approach based on the three generic methods being focus, cost leadership and differentiation is the differentiation strategy (Rothaermel, 2015). This is because Carrefour offers a wide variety of unique and accepted products within the broad segmentation. Carrefour’s operations as per the current can best be ranked within the differentiation leadership category which is within the broad segmentation. This approach best illustrates a corporation whose focus is on high-quality products ranging from food to households items that are charged at favorable prices. While using the differentiation focus approach the motive is to become differentiated within the retailing sector in the quest of offering goods that differ fully from those of the competitors (Nataraja et al, 2015). The important aspect in regard to the adoption of this strategy is the fact that consumers actually hold different wants and needs. This means that there is a valid basis for products and servicing differentiation on the needs that are not being met by competitors. Carrefour has not only differentiated its operations but its focus on low-cost charges and operations along with quality and safety adherence has resulted in unmatched levels which have for the longest period played part in sustaining the competitive positioning.

Figure 4: Expansion Strategies for Carrefour.

A number of strategies can best be applied in achieving differentiation. Superior quality, branding, and constant promotion can help in promoting market dominance. In that for the well-established companies that have dominated the market on the basis of their appealing brands such as Carrefour they benefit from scales economies thus there is no need to depend on cost leadership approach in competition (Rothaermel, 2015). This is because the businesses on their own and the associated brands are created on convincing consumers to becoming a loyal brand thus even with higher prices their sales and sustainability in the market is not affected in any way. In other words, Carrefour has attained its competitive advantage through its adherence to differentiation that is fully supported by the availability of resources. So that sustainability can be achieved there is a need to control the company’s operating expenses while seeking to fully differentiate both its goods and services from the competitors.

Question 2: Is market expansion the most suitable choice for Carrefour in achieving its strategic expansion objectives which are maximizing revenue gain, expanding its market share and sustainability and what factors should the company consider?

Based on the analysis above, it is obvious that Carrefour is one of the most established retailing companies in the UAE and the globe. However, despite the fact that the company has attained success in regard to attaining a substantial market share with significant revenue gains one of the major strategic management issues that have remained dominant is related to sustainability and strategic positioning (Maceda, 2018). The company is focused on expansion for the next five years in the quest of attaining a larger market share and its revenue gain. In achieving the market expansion objective for maximizing the company’s gains (Nataraja et al, 2015). It is suggested that VRIO framework and Pestle analysis are the essential tools for analyzing both the internal and external environment of the firm.

Kozlenkova, Samaha, and Palmatier, (2014) suggest that VRIO is a framework that is mainly utilized to access a company’s resources and competitive abilities. In that, it basis it analysis on value, rarity imitability, and organization. The value of the company’s resources is achieved at the point which it is fully able to deal with external forces. In that, the competitive benefits are best achieved at the point where quality adherence and innovative approaches are linked for strategic efficiency (Maceda, 2018). Value refers to the capability of the company to fully make use of the existing opportunities with the existing resources while on the other than the capabilities should be rare and not imitable for maximum gains. Market expansion is the most beneficial strategic approach that Carrefour can utilize currently in gaining her competitive gains. Market expansion rather than product development is the most appropriate strategy for the case given that the company is currently seeking to enhance its brand and consumer loyalty in UAE over Lulu supermarket which will facilitate its objective in regard to gaining an essential market share while utilizing the existing resources (Lulu, 2016). Carrefour has have reported on its intention of situating more stores and expanding within the Middle East more while differentiating fully.

This intention is supported by the company’s supply system which is not only reliable but also focused on offering diverse goods. The retailing market is one that is characterized by similar commodities and therefore the most suitable differentiation that can be applied lies on products quality and operations. However, the risk that is involved in implementing the strategy is high given that differentiation can hinder the company from fully controlling the associated operating expenses while meeting consumer’s demands (Lulu, 2016). The company has shown its commitment in research as well as products developed on the ground that this strategy will be useful in understanding market trends and making moves that are not only challenging for the competitors to imitate but those that add value to the firm. The risks presented by increased competition can never be ignored in relation to cost and losing a significant consumer base. It is, therefore, essential that the company invests inadequately in market research that seeks to acquire a detailed information with reference to consumer demands and market needs to provide products that best meet the increasing demands and lower the threats that are associated with preference changes. In order to establish the suitability of market expansion with UAE and the Middle East region, several macro factors must be considered using Pestle analysis (Bouyamourn and Scott, 2014).

With respect to the political factor, the environment is a stable one particularly considering that there are few firms that have established themselves as hypermarkets. The operation can thus be accounted as one that is associated with minimal competitive risks as most of the competitors are not able to match the diversity strategy. Taxation is also low with little to zero taxation for food products in UAE and thus the openness of the industry permits the company to set competitive strategies (Bouyamourn and Scott, 2014). On the other hand, the economy is favorable given that the company is creating increased growth based on the opening of more branches that seek to capture a large share of the retailing consumers. The middle-income segment is one that is growing rather rapidly in UAE because of economic stability as experienced in the recent years. The broader target within this segment is, therefore, a suitable one that is associated with high purchasing power. Socially, the company provides products for diverse ages which makes it even more favorable as its target demographic is wide. In addition, with a range of choices on every product, pricing is more strategic since the price differences accommodate consumers from different platforms. Its reliable and efficient supply has for the longest period supported the company’s strategic approaches mainly by providing technological and updates items prior to the competitors thus making it more favorable.

Global business necessitates operating within the legal provisions. Carrefour is well established in UAE due to its favorable legal settings that mainly encourage business investments both from the local and foreign investors (Bouyamourn and Scott, 2014). The company has proven to be environmentally responsible as time and again it has given back to the communities in which it operates and adhered to all the environmental measures (Maceda, 2018). More so, environmental conservation awareness and familiarity is on almost every market with investors being required to be at the forefront of guarding such programs. In other words, given that Carrefour is operating in a rather competitive industry that is characterized with increased change and demand differentiation and market expansion are the most effective approaches that it can apply in attaining sustainability and increasing productivity. Market expansion will not only seek to increase its market share but also play part in cost reduction, brand recognition, increased revenue gains and better online and physical retailing operations. The expansion is associated with more exploitation opportunities given that some markets have not been exploited fully which makes them favorable.

References

AAC. 2017. Business Environment - United Arab Emirates. Retrieved from http://www.agr.gc.ca/eng/industry-markets-and-trade/international-agri-food-market-intelligence/middle-east-and-africa/market-intelligence/business-environment-united-arab-emirates/?id=1420830919919

Al-azzam, Z.F, Irtaimeh H.J, and Al-Quraan A.B. 2016. Impact of Intellectual Capital on Carrefour Internal Growth Strategies. Retrieved from https://www.omicsonline.org/open-access/impact-of-intellectual-capital-on-carrefour-internal-growth-strategiesansoffs-model-in-irbid-2223-5833-1000206.php?aid=71286

Bourke, S. 2015. International market selection of Carrefour. Retrieved from https://run.unl.pt/bitstream/10362/15769/1/Bourke_2015.pdf

Bouyamourn, A. and Scott, A. 2014. Bigger is better for UAE supermarket shoppers. Retrieved from https://www.thenational.ae/business/bigger-is-better-for-uae-supermarket-shoppers-1.658906

Gollnhofer, J.F. and Turkina, E., 2015. Cultural distance and entry modes: implications for global expansion strategy. Cross cultural management, 22(1), pp.21-41.

Kozlenkova, I.V., Samaha, S.A. and Palmatier, R.W., 2014. Resource-based theory in marketing. Journal of the Academy of Marketing Science, 42(1), pp.1-21.

Lulu Ltd. 2016. Hypermarkets tighten grip in Gulf. Retrieved from http://www.lulugroupinternational.com/recent-news-detail.html?id=31

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            Knowledge Management and Decision Making

            Introduction

In today’s turbulent and ever-changing business market, knowledge management is of undeniable significance in decision making. Contrary to the past where companies hired consulting experts to offer assistance in settling for the most profitable decision, the firms have replaced this trend by hiring knowledge managers to support decision making. Knowledge management (KM) can best be described as the approaches and practices that are utilized by the contemporary organizations in capturing, storing as well as distributing knowledge for the growth of the organization uniformly. As stated by Dalkir and Beaulieu (2017) KM has fundamental effects on organizational decision making. Knowledge management specialists, therefore, play a crucial role in guiding decision makers in regard to the situation where they are supposed to make complex choices in the business sector that is not only characterized by operating risks but also doubts and conflicts. The whole decision-making move is grounded in the forecasting outcome which is derived knowledge management operations. Thus, KM is an essential aspect of strategic decision making. According to Moon et al (2015), knowledge management is not the primary problem that is faced by organizations today but the primary challenge lies in the absence of the needed expertise to managing the existing knowledge in guaranteeing real decisions. This report presents, a description of the selection criteria regarding the expertise of candidates with respect to KM and uses a multi-criteria decision analysis (MCDA) method to provide a selection model.

Knowledge management is challenging since specialists are required to acquire knowledge that is related to data, information and skills gathering from other people in order to transform the acquired insights into knowledge that would, in turn, play part in improving the decision making process in general (Huynh et al, 2015 p.16). Information technology offers undeniable assistance in regard to the decision making, by enabling by creating a wide platform where knowledge can be acquired. However, technology on its own is inadequate as people are categorized to be the primary determinant of the success of the process. This as a speedy and accurate process offers a more improved ground for the selection of the best choices since decision makers are able to make informed judgments. In KM specialist selection stage decision making should mainly be grounded in skills and experience. Knowledge management role necessitates specific skills needs time in order to be obtained. Proficiency in gathering and distributing information and its application in decision making is the base of an effective KM specialist (Karna, Supriana & Maulidevi, 2016). Skills and abilities are highly required for an incorporation of adequate knowledge that is needed for the position. This can also incorporate more conceptual skills which are challenging to assess based on their status such as strategic planning, relational and communication skills. However, several aspects such as price, flexibility, and speed must be accounted for in selecting the most suitable KM expert for the company.

Job selection represents one of the most important decisions that holds direct impact on the organization, employees, and stakeholders. There are some criteria that should be considered in job selection and the complexity of these decisions leads to a Multi-criteria decision making (MCDM) issue. Based on García-Peñalvo and Conde, (2014) KM is all about communication in the acquisition and distribution of knowledge in general which is done orally or in written formats for all the needed reports. In addition, adequate managerial competence in the inclusion of the capacity to come up with actionable strategies and create priorities within the existing resources that best encourages work consistency and efficiency are required. This means that the expert should be possessing authoritative organizational abilities that incorporates flexibility of individualized operations. It cannot be denied that organizations are fully dependent on reliability particularly when it comes to making decision based on the fact that this act determines the failure or success of the firm (Dalkir and Beaulieu, 2017). Knowledge is acquired from the learned skills and exposure to actual operation. Knowledge can best be described as the accommodation of understanding that is achieved via education and learning exposure in regard to the specific role. This means that the best candidate for the position is not only the individual with adequate experience but one that has the highest ability to apply the acquired skills in enhancing wellness. The KM job is highly specialized and therefore, it necessitates detailed and comprehensive knowledge within the narrowed scope of gathering and distributing information (Karna, Supriana & Maulidevi, 2016).

According to Riaz and Khalili, (2014) a KM expert acts as the consultant within the organization to whom the decision makers seek information from in order to make informed choices. These selection criteria that necessitates the presence of skills and knowledge is guided by the notion that, the candidates that hold less familiarity in regard to their role are incapable of doing and fulfilling the requirements of their positions. There is, however, an existing uncertainty and conflict in regard to choosing a knowledgeable and skilled expert over an experienced one. In that, all these aspects are necessary for developing a more productive expert given that decision making and management processes are very crucial in operations (Tayali and Timor, 2017). Work-related skills and competence are required for an individual to fully commit and succeed in this position. In this context, a Multi-criteria decision is required in addressing the selection problem and enhancing productivity through solid and reliable decision making (Tayali and Timor, 2017). Return on investment is the classic decision criteria that best applies to the case in consideration of a number of aspects such as cost, flexibility and risk level. In that, the company needs to consider the needs of its stakeholders as the prime priority. The objective of its operations is to increase the general earnings of the stakeholders based on their investment. In this context, if the KM role is one that will lead to increased expenses with reduced gains then it means that the risk regarding costs is high. The implementation of the approach is one that is flexible and ease on the ground that the roles can be changed based on the needs of the organization. High investment gains align directly with low costs thus, the selection should best consider the price of the expert and made direct comparison of the expected gains while weighing the anticipated risks such as cost (Riaz and Khalili, 2014).

Siemens (2014) asserts that MCDA is a challenging decision-making instrument in today’s business world. Due to the complexity of global business setting, some MCDA strategies and models have been recommended for organizations that seek to settle on the most probable decisions that strategically position their operations. MCDA methods are used extensively as the most accurate and feasible decision methodologies across different industries ranging from manufacturing, trade, energy and so on (Brigui-Chtioui & Saad, 2011). These techniques lead to the improved decision excellence by generating the development of competent, clear and coherent organizations. Some of the most used methods include multiple attribute value theory (MAUT), Evaluation Matrix (Evamix) and Analytic Hierarchy Process (AHP) (Cinelli, Coles and Kirwan, 2014).

To begin with, MAUT method, as indicated by the term the approach is dependent on distinct utility operations which directly permits the assessment of the involved risks outcomes (Brigui-Chtioui & Saad, 2011). The risk is expected to arise from two different modes that are the expected outcome or value. MAUT is therefore beneficial in weighing risks that are related to a given decision. It involves undeviating inquiring of the decision makers based on their choices by allowing them to assess the values over the risks. Shareholders engagement in decision making is not only a necessity but also essential. MAUT offers a transparent path in reference to the risks and benefits indicators based on its capacity to handle different problems at the same time (Tayali and Timor, 2017). The challenge is, however, derived on the ground that the method generates much information thus creating complexity in the evaluation. The methods allow the assessment of risks and doubts directly on the ground of the developed utility theory. In other words, MAUT is involved in the evaluation of risky options and makes comparison with the decision maker’s preferences to the satisfaction of the company. In making different choices information is needed and for this method the utility benefits create the foundation for these decisions (Tayali and Timor, 2017). Based on the operation of the method, it is rather evident that MAUT is not suitable for assessing external issues on the ground that much time would be needed to generate the needed choices and justification for every choice (Brigui-Chtioui & Saad, 2011). The macro environment is particularly complex which makes the approach unsuitable.

On the other hand, the AHP method is concerned with the creation of appropriate hierarchies, determining key priorities and evaluating logical consistency within the decision making setting (Ginevičius, Kalkaska’s & Kazokaitis, 2011). In regard to hierarchy’s construction, this involves gathering information during knowledge elaboration and ensuring that the human mind acknowledges the relations. Since humans are incapable of processing information simultaneously the approach helps in simplifying data which is part of the logical concepts. Therefore, hierarchies are valuable in assisting individuals in settling for the most constructive decisions. These hierarchies do not necessarily refer to levels but the breakdown of information (Marttunen, Lienert and Belton, 2017 p.15). AHP pairs different elements for comparison and creating priorities based on their importance. This arrangement is based on the consistency, values and the associated risks. The AHP can also consider the reliance amid different evaluation approaches by the mode of constructing the most fitting hierarchies. If the choices are limited they are placed on locations based on their needs while connecting them to the highest hierarchy. On the other hand, if the preferences regarding the selection criteria are unlimited the hierarchy is then placed within the decision-making issue (Madžar, 2015). All the identified elements represent an opportunity for comparative evaluations of the existing pairs which help in highlighting the significance of an element over the other. This is then finalized through alternatives evaluations.

AHP supports stakeholder’s engagement in decision making. Different social participants are also encouraged to play part by offering their opinions. This leads to the comparison of different preferences judgment which in turn expresses the observation point for all the stakeholders and helps in gathering their preferences and ideas (Madžar, 2015). It becomes possible also to promote consistent communication amongst the players. This is because they are all required to work collaboratively in the quest of settling for a more beneficial assessment criteria and aims while highlighting the significance. This approach is flexible and easy to modify given that it can be applied in extensive decision-making issues at all levels of operations. In different settings, the use of comparative pairs is achievable between different criteria’s on the ground that ranking and categorization is grounded on importance (Khondoker et al, 2014). In this context, different strategies combination with AHP is achievable. AHP permits the utilization of direct and secondary information which has been useful in making sound and fast choices without having to compare.

Evamix mainly involves the assessment and evaluation of the existing alternatives (Ginevičius, Kalkaska’s & Kazokaitis, 2011). The highest ranked alternative acquires the position on the basis of dominance and performance. In that, different criteria’s are evaluated within the matrix based on their performance which is achieved when the associated gains are higher than the expected risks. The decision-making process is thus, focused on assessing the applicability and use of all the systems. This implies that the preferences of the decision makers are evaluated uniformly which leads to the transformation of knowledge into more extensive basis. Ordinary and cardinal weights are assigned to the alternatives after the evaluations (Madžar, 2015). If the alternative is feasible and effective with regard to fulfilling the needs of the organizations it is categorized under the cardinal rank. The evaluation matrix fully facilitates stakeholder’s participation by permitting contributions from different social players in weighing the options which are combined by applied in demonstrating distinct viewpoints ranging from economic to social concerns as raised by the stakeholders. It, therefore become easier to promote communication between the involved players on the ground that they are all required to work collaboratively in the development of goals and action plans the method is mainly used to deal with different decision issues at a range of geographical positioning (Brigui-Chtioui & Saad, 2011). The approach is mainly applied in regional as well as urban development which acts based on alternatives scale standardization to establish the most suitable strategy for a given role.

With respect to the selection of a KM specialist for the organization, the most suitable MCDA method for decision making is AHP (Wątróbski and Jankowski, 2015). This is because for the selection complexity AHP is the most effective decision-making instrument. The intention of AHP is to assist individuals or decision makers within an organization in settling for the right choices even in demanding situations. A feasible decision can be established through the use of prescribed evaluations based on outwardly concrete decision options. This method works on the placement of value to the suitable criteria with the objective of settling for the best choices and development of solutions. In other words, AHP is a statistical and psychological method which challenges the decision makers to evaluate their choices based on the choices importance and value. The methods permit the participation of stakeholders based on its capability to balance views and evaluations outcomes from different grounds. AHP offers understandings in regards to the rationale behind several decisions (Ginevičius, Kalkaska’s & Kazokaitis, 2011). With more people involved in the selection process, this means that making decision in regard to the best choice is difficult given that people are entitled to distinct views.

AHP can, therefore, be applied in creating transparency throughout the process which helps in settling for the best options. In turn, these aspects offer more support to the end decision. With abstract choices in regard to KM specialist selection, AHP is more applicable and feasible given that it creates grounds for comparison. In addition, unlike all the other MCDA methods which only seek to offer rational choices, AHP is objective in nature (Stefanović et al, 2016 p.152). The criteria are one that is grounded on specific, achievable, relevant and feasible solutions. In that the method mainly challenges the decision makers to weigh the existing options not only on the basis of value but also while considering their achievable nature. In this context, every member is fully informed of the position’s requirements and its feasibility when making decision. By weighing the risks and values the actors will thus settle for sound choices (Brigui-Chtioui & Saad, 2011).

In conclusion, it is evident that expert’s selections represent one of the most fundamental aspects of carrying out a business in the contemporary world. In this context, there is a need to incorporate MCDA in solving decision making complexity and uncertainties. In that where a number of individuals are involved there is without a doubt a possibility of generating more issues which in turn affects efficiency. Knowledge management is one of the most beneficial business aspect given that it influences the decision made. Decision making using AHP for the KM expert selection is the most valuable since it provides insights as to why certain criteria are rational over another while encouraging stakeholder’s participation.

References

Brigui-Chtioui, I, & Saad, I 2011, 'A Multiagent Approach for Collective Decision Making in Knowledge Management', Group Decision & Negotiation, 20, 1, pp. 19-37, Business Source Complete, EBSCOhost.

Cinelli, M., Coles, S.R. and Kirwan, K., 2014. Analysis of the potentials of multi criteria decision analysis methods to conduct sustainability assessment. Ecological Indicators, 46, pp.138-148.

Dalkir, K. and Beaulieu, M., 2017. Knowledge management in theory and practice. MIT press.

García-Peñalvo, F.J. and Conde, M.Á., 2014. Using informal learning for business decision making and knowledge management. Journal of Business Research, 67(5), pp.686-691.

Ginevičius, T, Kaklauskas, A, & Kazokaitis, P 2011, 'Knowledge Model For Integrated Construction Project Management', Business: Theory & Practice, 12, 2, pp. 162-174, Business Source Complete, EBSCOhost, viewed 27 January 2018.

Huynh, V.N., Inuiguchi, M., Le, B., Le, N.B. and Denoeux, T., 2015. Integrated Uncertainty in Knowledge Modelling and Decision Making. In 4th International Symposium, IUKM (pp. 15-17).

Karna, N, Supriana, I, & Maulidevi, N 2016, 'Knowledge Sharing between Similar Domain Knowledge Management Systems', AIP Conference Proceedings, 1746, 1, pp. 1-8, Academic Search Premier, EBSCOhost.

Khondoker, R., Zaalouk, A., Marx, R. and Bayarou, K., 2014, January. Feature-based comparison and selection of Software Defined Networking (SDN) controllers. In Computer Applications and Information Systems (WCCAIS), 2014 World Congress on (pp. 1-7). IEEE.

Madžar, D 2015, 'Contribution of Knowledge Management to the Development of Enterprises', Tourism in Southern & Eastern Europe, vol. 3, pp. 175-182.

Marttunen, M., Lienert, J. and Belton, V., 2017. Structuring problems for Multi-Criteria Decision Analysis in practice: A literature review of method combinations. European Journal of Operational Research, 263(1), pp.1-17.

Moon, B.M., Baxter, H.C. and Klein, G., 2015. Expertise management: challenges for adopting naturalistic decision making as a knowledge management paradigm.

Riaz, M.N. and Khalili, M.T., 2014. Transformational, transactional leadership and rational decision making in services providing organizations: Moderating role of knowledge management processes. Pakistan Journal of Commerce & Social Sciences, 8(2), pp.355-364.

Siemens, G., 2014. Connectivism: A learning theory for the digital age.

Stefanović, G, Milutinović, B, Vučićević, B, Denčić-Mihajlov, K, & Turanjanin, V 2016, 'A comparison of the Analytic Hierarchy Process and the Analysis and Synthesis of Parameters under Information Deficiency method for assessing the sustainability of waste management scenarios', Journal Of Cleaner Production, 130, pp. 155-165, Business Source Complete, EBSCOhost.

Tayali, H.A. and Timor, M., 2017. Ranking with statistical variance procedure based analytic hierarchy process.

Wątróbski, J. and Jankowski, J., 2015, September. Knowledge management in MCDA domain. In Computer Science and Information Systems (FedCSIS), 2015 Federated Conference on (pp. 1445-1450). IEEE.

Critical Assessment

Table of Contents

1. Introduction. 2
2. Specific evaluation of the plan. 3
3. a) Corporate connection. 3
4. b) Marketing audit 3
5. External marketing analysis. 3
6. Internal marketing analysis. 4
7. c) Market objective. 6
8. d) Marketing strategies. 7
9. e) Tactical marketing decision and action plan. 8
10. f) Organization and implementation. 9
11. g) Marketing control 10
12. Holistic evaluation of the plan. 10
13. Recommendation. 11

References. 15

Critical assessment

            Introduction

    At the onset of business expansion, changes in the market are expected to increase and thus coming up with a market plan is quite an important process as it enables the business to be able to undergo a total brand transformation. The library is located in the southwest part of the United States, specifically in Nueva Vista hence resulting to the library being named after the city Vista. Vista region has contributed greatly to the establishment and even the expansion of the Vista library. This is due to the immense increase in the region’s population over the years due to the construction of a recycling industry within the area that has attracted new businesses within the area and ultimately resulting to the construction of residential buildings. Social amenities such as schools have also been established within the area so as to cater for the educational needs of the Vista’s population. An increased demand for library services is thus experienced within Vista region. However, the community population that uses these services is quite low. Therefore, in an effort to increase the utilization of the library, the library management has come up with a market plan that is fully detailed and has strategies on how to increase consumer population. The library, therefore, targets the Vista community at large that is, all the learners of all ages, for instance, the scholars and primary and secondary school students. The library is determined to increase its participation in the social programs and in offering an inspiring program to improve the sense of Neuva Vista community. The library is well staffed and has enough space to accommodate the ever-increasing population of Vista. For it to fully meet the needs of their target market, the library has a number of separate areas for all people across all ages that are an area for teens and study areas. The library also holds events such as classes for kids all the way to seniors. The library is open on all days and this ensures that all those who are interested are able to access the library services. Most of the people are low-income earners and thus the library since it is a public library it targets to deliver their services to these low-income earners who are interested in acquiring library services. This is a great opportunity for the library to make a difference to the entire society through their diverse service provision to the less disadvantaged. This paper will, therefore, seek to clearly evaluate Vista public library market plan.

1. Specific evaluation of the plan

1. Corporate connection

            The mission and vision statements are quite appropriate and focused towards achieving their goals. This market plan is efficient as it clearly presents the mission and vision statement of the library. This is essential for any business as it enables the business to succeed and attain a long-lasting sustainability. The mission and vision statement are quite vital as they act as a compass that directs any successful business and lightens the path that leads the business to safety as it fosters direction to the business.

1. Marketing audit
2. External marketing analysis

            PESTLE analysis is vital to any business success. This is a market tool that is used to track the whole environment to which the business is operating. It assesses the political, economic, social, Technological, legal as well as environmental (MAY 2010, 17).

The market plan failed to consider either the political or legal factors that would put their business at risk or even offer the business an opportunity. However, it is important to note that while analyzing the market it is quite hard to ignore and rule out these factors as they play a big role in ensuring that the business succeeds in its strategic plans. Considering these factors is essential as failure to do so may affect other factors such as the economic environment of the business to a greater extent.

            Economical factors: the plan failed to mention about the economic aspect that might influence their business. This is quite an important factor and thus ought to be considered. With the diminishing profits following the low use of the library services by the community, the plan out to have considered the economical aspect so as to be able to reorganize their sales and marketing campaigns.

            Ecological factors: the plan did not consider any ecological element such as climate change, environmental offsets, and geographical location. Though these factors do not directly influence the business, they are still important to be considered so as to enhance the plan’s success.

            Technological factors: the market plan offered by Vista public library is likely to affect the operations of the business in unfavorable a way. This is due to the lack of technological advancement as a result of inadequate resources for hiring technologists and purchasing of technological devices.

            Social factors: the plan does not consider social factors that may influence their business. However, it clearly states that the business lacks community relationships and this is a threat to the business and may affect their operations negatively.

1. Internal marketing analysis

            Internal analysis is an important element of the strategic market plan. In order to have an effective internal analysis, SWOT analysis is used. SWOT analysis (Strength, Weakness, Opportunities, and Threats), combines both the external and internal analysis to review the business’ strengths, weakness, opportunities, and threats. The external factor of the SWOT analysis deals with opportunities and threats while the internal factors take care of strengths and weaknesses of the business (MAY 2010, 35). The plan clearly outlines its internal analysis.

            Strengths: the market plan has a set of core competencies that present the library with an advantage in meeting the needs of their target markets. The library has an enthusiastic team of employees who are friendly and flexible thus enabling them to actively meet the needs of their customers and also offer unique services to their target markets.

            Weaknesses: the market plan also indicates some of the limitations that the library faces in developing and implementing their strategic plan. This detracts the business from the value that it offers and places the library at a competitive disadvantage. Having the plan identify with what the library business lacks enables the business to establish a strong strategic plan that focuses on improving their business so as to achieve the business objective. Inadequate resources within the business are the major reason contributing to the library’s weaknesses.

            Opportunities: opportunities are regarded as external factors. The plan outlines various opportunities that play out well with the strengths of the library business. Once the business leverages these opportunities well, a good reward will be produced.

            Threats: the market plan presents some of the barriers that hinder the library business from reaching their desired goal. Most of the threats presented are beyond the library’s control but can be mitigated. Some of these threats are discussed below.

• “Community perspectives’ including that Vista is traditionally a conservative community, Vista Public Library had past conservative management, and the diverse population has differing needs” (Beck et al 2010, 8).

Although it has an external factor and is outlined as one of the threats faced by Vista public library, it might be a sign of a weakness. This is because the library has to branch out its products and divisions so as to meet the diversified needs of the diverse population.

• “The previous reputation as a quiet place for intellectuals and bookworms” (Beck et al 2010, 9).

This is an unfavorable customer perspective that may hinder the library from achieving its market goal. People think that the library is set apart for only a group of people.

• “Larger space with increased shelving capacity, but the collection is still limited and needs to grow” (Beck et al 2010, 9).

Though this is an external factor, it also has an element of weakness. This weakness seriously threatens the business as it competitively disadvantages the organization.

1. Market objective

            The plan outlined four main objectives and sub-objectives under each objective to be accomplished:

• Complete re-branding process
• Community Analysis
• New Logo
• New Graphics Standards
• Revitalize general marketing and promotion
• Utilize social media tools
• Build partnerships with local businesses and organizations
• Market segmentation
• Redesign the library website
• Update OPACs
• Add more content to home page
• Internal marketing strategies: empowering the staff
• Train staff
• Keep staff informed

            However, these objectives meet the basic strategic or general plan criteria but lack to mention the timeframe for implementing these strategies. However, it is important to note that the plan has tactical and specific short-term objectives, which will make it easier for the strategies as well as action plans to be fully evaluated in the presence of clearly outlined objectives.

1. Marketing strategies

            The product

            The market plan incorporates a good market strategy that seeks to effectively elaborate appropriate action plans to achieve the market objectives of the business as outlined above. The plan utilizes the 5Ps of marketing in developing the business techniques that will enable it to accomplish their market objectives.

            Product

            The plan offers an actual differentiation strategy that focuses on differentiating its products from its competitors. This differentiation based on quality services and equipment, features and technology.

            Promotion

            The plan seeks to organize community outreach programs that would enhance more of the target market to realize the existence and operations of the library. The plan also mentions of marketing tactics that are also utilized so as to attract people to the business. The plan seeks to use promotional fliers and to establish a market firm that would help in building the brand for the library.

            Price

            The plan form of pricing is customer value-based pricing which is based on conveying value to consumers and this will give the business a better chance to achieve their objective.

            Place

            The plan indicates that the library will offer direct services and products to:

• Their newly renovated community library
• The local high school
• The community through the community outreach program

1. Tactical marketing decision and action plan

            The plan gives a more detailed sequence of steps that the library business must take so as to accomplish their strategy (Luther 2001, 13). It offers three phases that the business intends to use so as to attain their objectives. These phases are as follows:

            Phase 1

            Community Analysis & Rebranding

            Phase 2

            Web Redesign

            Phase 3

            Continuing Community Publicity

            The action plan is complete as it outlines all the activities to be carried out in all the important parts of the community. The plan is also clear as it visibly indicates who is responsible for doing which task and gives a time frame for accomplishing these activities. The plan reflects on the current work, hence allowing the anticipation of the emerging opportunities in the business. These action plans are in line with the vision and mission of the business. The action plan also indicates or rather budgets for what resources are needed for these action plans to be fully achieved.

1. Organization and implementation

            The plan clearly indicates on the organization of the business and on the implementation process of the strategic plan of the business. It elaborates on the issue of monthly progress review and budget review so as to determine the effectiveness of the strategic plan implementation process. It also clearly states on who is responsible for undertaking the implementation and following up on the progress.

1. Marketing control

            The plan effectively outlines marketing control techniques that seek to measure the performance of the current market strategy implemented and identifies the unseen and areas that need to be adjusted and sets new action plans with the changes added.

2. Holistic evaluation of the plan

            The average quality of this plan is good since it has tried to capture most of what a good market plan should have. To be precise, the plan would be awarded a 70% mark. However, the plan has some of its flows which include:

• The plan lacks a clear strategic plan: The strategic plan refers to the business general objectives and it must have a time frame of three years.
• Lack of positioning: Positioning is formed a very vital component of any business achievement. The major aim of flourishing positioning is to influence consumer perception of a product in relation to the perception of competing brands. It focuses on occupying the minds of consumers in a unique and clear manner hence enabling the business to have an advantageous positioning.
• Poor customer-oriented marketing plan: The plan fails to thoroughly research the marketplace and the target market and this result to their failure in creating awareness about the products and services that they offer. This has resulted in the low acceptance rate by the community members who are the target audience. This has also contributed greatly to the poor positioning of the business hence they are unable to meet the needs and preferences of their consumers.
• Lack of resources: This has resulted in poor services and inadequate provision of a collection in the business. The fact that the business lacks adequate resources for their business only means that it needs to improve on this in order to fully provide the customers with a wide collection of books. Lack of resources in the library has resulted in the minimal hiring of staff, inadequate equipment and technological devices hence leading to an unsuccessful outcome of the business. Inadequate staff will result in poor services as the few who are employed are overloaded with the work hence are unable to fully cater to the needs of the customers.

• Lack of technological advancement: It has also contributed greatly to the lack of utilization of the big data. The world is globalizing and everything is changing towards a digital era. It thus calls for businesses to be at the forefront of adapting to these changes and accepting the technological advancement. However, with the budget and resource constraints in the business, the business is unable to position itself hence resulting to a decreased number of customers as they fail to consider it as a distinct advantage to them.

3. Recommendation

• Implementing a customer’s oriented marketing plan: The world that we are living in is a competitive one. It is therefore very essential to make the business market-oriented. This can only be enhanced through researching the marketplace as well as the target market so as to be able to modify the business and all of its products and services hence shaping the business to match the needs and preferences of their consumers. The business should be market-oriented and pay attention to customers’ needs (DALGIC & YENICERI 2013, 12). It is quite clear that the library ought to prioritize in making their customers satisfied and all their resources are geared towards their target market. The target market, therefore, needs to be enlightened that the library offers services to all kind of people and in doing so the threat of losing customers would be diverted into becoming an opportunity.
• Utilizing technology: The plan should offer adequate technological advancement as this will be a great opportunity for the expansion of their business as the world is moving towards a technological age. The plan should states that they have updated their technology and websites which will enable the business to create awareness about the library to the community and other members who are interested in library services in Vista. The business should look for sources of funding for their resources hence allowing the business to purchase the necessary devices that are needed for technological development. For technology and innovations to fully diffuse to the majority of the people, it is important that the business speeds up their process by making their innovators and early adopters empower the innovations. This form of indirect marketing can be enhanced through a word of mouth where consumers after consuming the goods or after receiving a service, they spread the news to others hence attracting more of the target audience. This will ultimately increase the customer base with time and therefore will increase the business returns.
• Increased social interactivity: For the plan to be sufficient, it should consider the issue of social media platform that will foster interaction between the customers and the business. The plan should seek to utilize some of the tactics to create awareness of the features and benefits that the library offers so as to entice the target market to check out what they offer. The plan should also seek to use digital media in creating awareness through reinventing on online media via renaissance of the library’s website. The use of the social media platform to interact with consumers in an integrated manner will be a great contributing factor to the success of the business. Being a public library, the plan may be considered as interactive with customers through the social activities and through the business website hence resulting in a bigger interaction. It is recommended that the library should use the social media platform so as to launch and advertise on an event such as a contest or lunch classes that will involve most of the target audience. In doing so, the area coverage will be large and hence allow people to have knowledge about the library and are aware that it still exists. Through these social activities, the business will be able to realize and identify the important customer preferences hence allowing them to have an opportunity in meeting these demands to their customers. Continuous and consistent organization of social events and even posting on social media will create a lasting effect on the minds of the target audience hence enabling the business to position itself in the minds of the customers.
• A clear strategic plan: Each strategic plan should have an allocated time within which all the activities outlined under this plan must be accomplished. For instance, the strategic plan, in this case, ought to have a planning period. This is essential as it helps in planning for the future medium and long-term goals that often take place between 3-5 years (MAY 2010, 45).
• Perfect positioning: The library may position itself as a community-friendly library that serves the community, in addition to its participation in social activities. This positioning will create a positive image and branding of the library services and products into the minds of the people hence increasing their popularity and profit base (Dahlén & Lange 2008, 125).
• Undertaking an ethnographic research: The business should carry out a thorough research so as to further discover the consumers’ preferences and needs. This will help the business to implement an appropriate and successful market-oriented plan since surveys are inadequate. This is because people at times tend not to express their preferences openly. Therefore, it is important to implement the use of ethnographic research. This kind of research will also be intrinsic in defining segmentation which the library should focus on and how it will position itself (Schensul et al 2013, 188).

Effects of Cloud-Based Computing on Organizations in terms of Costs and Management

Introduction

The last couple of users have been marked by an exponential in regard to the adoption and utilization of cloud-computing system in resource planning (Marston et al., 2011). Cloud computing is a contemporary trend that is evolving rather rapidly that before with organizations of all sizes and structures adapting the new technology which is believed to increase further in the coming years. Cloud computing remains to be among the most debated and capable IT innovations in the technology world today. It is highly appealing to most organizations based on its ability to generate a number of potentials like cost saving and management and operations efficiency. This is made up of an essential shift in the manner in which different organizations are provided with computing resources. Most organizations globally particularly large and medium companies have extensively appreciated the responsibility of IT in being a business primary driver and enhancer in the contemporary society hence resulting in the increased adoption levels of cloud computing systems (Marston et al., 201, p. 177). It cannot be denied that IT is a fundamental and a necessary aspect of running any business effectively in the contemporary society. As a result of cloud computing adaptation, there are a number of benefits in relating to efficiency and cost saving that is generated. However, there are several risks as well that comes with cloud technology, thus affecting management strategies towards the involved risks. There is a growing need to operate business effectively with fewer expenses and high efficiency for improved profit and increased ability for competitive advantage.

Research Objectives

This research will seek to establish the impact of cloud-computing with respect to cost and organizational management. The primary objective is to highlight the associated benefits with the adoption of this technology and how the associated management risks can be mitigated.

Preliminary Literature Review

Cloud Computing Benefits

According to, Subashini and Kavitha (2011) it is widely acknowledged that technology particularly computers remains to be one of the essential parts of the contemporary business. From the point that computers evolved into the business world across the globe, organizations have not only benefited from competitive advantage but the ability to utilize data to run operations with ease. With globalization, organizations are required to run multiple activities all at ones and this has been made more effective by cloud computing. However, it should be noted that with this technology a number of challenges in regard to computing integration with organizational structures evolved along with the need for consistent information flow from a location to another without limitation. The expenses of maintaining IT systems increased with the need to purchase more advanced servers and hire IT personnel’s which furthered the cost of business. Khajeh-Hosseini et al., (2010) notes that the challenges created a market and technology push for the development of cloud computing which has brought a number of potentials like efficiency, simplicity and cost saving but some risks to the management which thus implies that the primary worry lies on its application rather than infrastructure.

Cloud Computing Cost benefits

Based on Sultan (2011) Cloud computing can best be described as a number of internet connected computing facilities. In other words, it is both a site and an application. In that, it provides a platform where data can be stored and can be accessed easily via the internet. Cloud computing has transformed the manner in which different organizations utilize computers, stored information, and the internet. The systems provide its users with more access of data, presentations, and files with the use of internet and this means that the users are no longer restricted to utilizing computers as the collaboration can be acquired from differentiated locations. Brender and Markov (2013) assert that Organizations in the contemporary society are guided by the need to reduce the operating expense. Most of them begin accomplishing the objective by integrating their Information Technology activities and implementation of virtualization technology that involves the optimization of the server’s ability to develop and store data. Through the use of cloud computing, most organizations are able to get rid of additional expenses by ensuring that they enhance utilization, decreasing infrastructure and operational expenses. This aspect provides organizations with increased availability of resource groups (Ercan, 2010).

Cloud computing is so far the most cost-friendly technology development to utilize, maintain and renovate. While compared to traditional computing whose implementation of software’s accrued a lot with respect to finances the approach is more efficient in saving funds. The cost saving aspect is mainly derived from the fact that the system creates efficiency in general which implies that companies can operate at ease and speedily (Ramgovind, Eloff and Smith, 2010). Traditional computing add up a high licensing expense when it comes to multiple computing users which can, in turn, be costly to be established fully. On the other hand, Cloud computing is easily adopted at lower rates which implies that the company will spend less in regard to IT expenses as illustrated by Transaction Cost theory (Ma, 2016). Also, there are a number of payment options which creates cost efficiency for the involved companies. Cloud computing has close to boundless data storage with tailback and recovery options. With the unrestricted storage, organizations need not worry in regard to increase their storage space which is associated with more cost. More so, since data is mainly stored within clouded systems this implies that storing it is easier and less costly (Chang, Walters & Wills, 2015).

Based on Carroll, Merwe, and Kotze, (2011) in addition, easy and rapid implementation also helps in cost saving. In the business world today which is characterized by extreme competition it is essential for organizations to expand their capacities to respond to market changes. Cloud computing supports and improves organizations responsiveness to changes. The easy implementation is achieved by the fact that the systems permit organizations to preserve the same business procedures without having to deal with past challenges of application. The systems are manageable at ease as long as the company has exposed to internet which makes the development of clouding infrastructure simple and fast (Pearson and Benameur, 2010). Accessibility is an additional benefit since data can be accessed from any location without the limitation of time. With a well-developed infrastructure, this means that the enterprise productivity and efficiency are improved which ensure that the features are easily accessed which thus facilitates information sharing and collaborations. This technology is also associated with flexibility because with no hardware’s required companies can easily add their resources that best suits the needs of the company.

Cloud Computing Risks With Respect To Management

Marinescu, (2013) holds that, despite, the associated benefits with the use of cloud computing, there are a number of risks that companies should understand prior to the implementation. In that having the knowledge of the risks enables the management to develop strategies for mitigating risks hence enhancing their capabilities and data availability (Hurson, 2013). To begin with, the major risk is associated with data security and confidentiality loss. Technology is bound to fail now and then, thus the management is expected to maintain constant regulation of the servers to secure data. In that, for management operations to be accounted as effective it means that the systems should run full time without any interruptions. However, with cloud computing issues raised by internet failure, hardware issues, and natural disasters are bound to affect the functionality of the systems (Miles, 2012). There are also threats that are related to interference by non-users where they get access to the system thus affecting information confidentiality. In other words, technical problems will easily affect the functioning of information systems (Marinescu, 2013). Although it is factual that data and information from cloud systems can be accessed in need with dysfunctions this is not achievable.

Cloud computing information storing makes the organization highly vulnerable to external hacking and threats since not everything from the internet is guaranteed on security and thus there is always the loss of data sensitivity. According to Heiser and Nicolett, (2008) Security issues means that the company is forced to submit all its sensitive information to personnel’s which creates attacks vulnerability. It is thus evident that while cloud computing has the ability to enhance the performance of the organization by supporting cost saving and increased consistency, it is also associated with a number of disadvantages particularly to the management that is forced to adopt differentiated strategies in order to mitigate risks related to security. The management is therefore required to employ the right personnel’s that seek to ensure that the systems are not only secure but also to guarantee that sensitive information that might be utilized for the disadvantage of the organization are not leaked (Bond, 2015). This can best be achieved through the application of strategic as well as functional measures which are customized to ensure that security and functionality needs are meet. This is because while the systems need to operate consistently, they are also required to be secure for use.

Research Questions

1. Do cloud computing adoption and implementation lead to cost saving benefit and how?
2. What are the risks with respect to organizational management that results from the application of cloud-based resource programs?

Proposed Research Methods

Introduction

This chapter will offer a detailed methodology for the dissertation. This study will acquire data from secondary sources retrieved from different scholarly websites, books, and journals on the internet. In this chapter, the researcher highlights the research strategy, method, approach, data collection instruments, data analysis and research ethical issues.

Research Design and Data collection

Cloud computing is a broad subject that is characterized by a wide source of information but this research will focus on a limited scope of investigation on the systems effects in regard to cost saving and management challenges. Therefore, a descriptive design that follows a secondary research approach will be utilized. The methods were selected based on their flexibility, ability to generate maximum information within the shortest period as well as convenience. In addition, the use of secondary sources has a number of benefits. To begin with, it is associated with accessibility because secondary resources such as books and journals are easily accessible on the internet. In this case, there are more sources that provide information in regard to cloud computing benefits and the associated threats (Vogt, Gardner and Haeffele, 2012). In addition, the approach is cost friendly as when compared to primary research it is cheaper and mainly necessitates less time in obtaining adequate information. In addition, the approach is more insightful based on the fact that secondary research officers the investigator with different and more reliable perspective. With more information, the research grounds the focus of research based on facts rather than assumptions since primary research necessitates more time for verifications (Collins, 2017). The primary disadvantage is the fact that it requires the researcher to buy most journals to be utilized based on their reliability and genuineness.

Sources of Data

The research will utilize data from secondary sources which means that the data has already been gathered and thus the researcher will be required to filter sources from the scholarly sources such as Google Scholar and Ebsco Host. These sources were selected based on the fact that they are reliable for research and the data on this site is readily available and accessible on the internet. For academic research, the sources permit the research to utilize the journals and books.

Data Analysis

Content analysis will be utilized in analyzing data acquired from secondary sources. This is an analysis in which data is basically categorized based on themes which enables comparison to be done. The primary benefit of this analysis is that it enables the researcher to minimize and simplify the acquired concepts while generating data that can be measured and conclusions developed at ease. More so, content analysis offers the researchers the capability to structure secondary data in a manner that fulfills the objectives of the study. In this context, human error is less involved as data has already been collected thus lowering the risks of misinterpretation and generalizations.

Ethical Issues

The current research is exposed to a number of ethical issues. In that, given that the research information will be obtained from secondary sources the study will acknowledge all the utilized sources through citing and referencing the sources appropriately. This means that plagiarism will not be accommodated or information used illegally without adhering to research standards. The researcher will also seek permission from the research department from the university which will ensure that the research is a recognized one. The acquired information and results of the study will not be utilized for any other purpose such as commercial but only for academic reasons.

Proposed Timeline

The table below shows the time line to be followed when carrying out the entire research.

References

Bond, J, 2015. The Enterprise Cloud: Best Practices For Transforming Legacy It.             Http://Search.Ebscohost.Com/Login.Aspx?Direct=True&Scope=Site&Db=Nlebk&Db=N            labk&An=994159.

Brender, N. and Markov, I., 2013. Risk perception and risk management in cloud computing: Results from a case study of Swiss companies. International journal of information management, 33(5), pp.726-733.

Carroll, M., Van Der Merwe, A. and Kotze, P., 2011, August. Secure cloud computing: Benefits, risks and controls. In Information Security South Africa (ISSA), 2011 (pp. 1-9). IEEE.

Chang, V., Walters, R. J., & Wills, G, 2015. Delivery and adoption of cloud computing services in contemporary organizations. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=986104. Top of Form

Collins, H, 2017. Creative research: the theory and practice of research for the creative industries. London, Fairchild Books, Bloomsbury Publishing Plc.

Ercan, T., 2010. Effective use of cloud computing in educational institutions. Procedia-Social and Behavioral Sciences, 2(2), pp.938-942.

Heiser, J. and Nicolett, M., 2008. Assessing the security risks of cloud computing. Gartner report, 2(8), pp.2-6.

Hurson, A. R, 2013. Advances in Computers. Connected Computing Environment Volume 90 Volume 90.

Khajeh-Hosseini, A., Greenwood, D. and Sommerville, I., 2010, July. Cloud migration: A case study of migrating an enterprise it system to iaas. In Cloud Computing (CLOUD), 2010 IEEE 3rd International Conference on (pp. 450-457). IEEE.

Khajeh-Hosseini, A., Sommerville, I. and Sriram, I., 2010. Research challenges for enterprise cloud computing. arXiv preprint arXiv:1001.3257.

Ma, Z, 2016. Managing Big Data in Cloud Computing Environments. Igi Global.

Marinescu, D. C, 2013. Cloud Computing: Theory and Practice. Elsevier Science & Technology. Http://Public.Eblib.Com/Choice/Publicfullrecord.Aspx?P=1213925.

Marston, S., Li, Z., Bandyopadhyay, S., Zhang, J. and Ghalsasi, A., 2011. Cloud computing—The business perspective. Decision support systems, 51(1), pp.176-189.

Miles, J. A, 2012. Management and Organization Theory: A Jossey-Bass Reader. Hoboken, John Wiley & Sons. http://public.eblib.com/choice/publicfullrecord.aspx?p=817720.

Pearson, S. and Benameur, A., 2010, November. Privacy, security and trust issues arising from cloud computing. In Cloud Computing Technology and Science (CloudCom), 2010 IEEE Second International Conference on (pp. 693-702). IEEE.Top of Form

Ramgovind, S., Eloff, M.M. and Smith, E., 2010, August. The management of security in cloud computing. In Information Security for South Africa (ISSA), 2010 (pp. 1-7). IEEE.

Subashini, S. and Kavitha, V., 2011. A survey on security issues in service delivery models of cloud computing. Journal of network and computer applications, 34(1), pp.1-11.

Sultan, N.A., 2011. Reaching for the “cloud”: How SMEs can manage. International journal of information management, 31(3), pp.272-278.

Vogt, W. P., Gardner, D. C., & Haeffele, L. M, 2012. When to use what research design. New York: Guilford Press.Bottom of Form

 Major facts

CJ industries has the chance to supply Great Lakes with vital engine parts for their luxurious boats. They got this contract through their progressive and capable buyer-supplier relation that they have with Great lakes. It is a five year contract that is worth $10 million per year. This contract gives them a chance and opportunity to prolong the contract if they comply with the needs of Great lakes.

The contract is important to Cj industries as it gives them a chance at a successful business future and its main aim should be to meet the terms of the business contract. Although they carry out most of their manufacture internally, they have been out sourcing bilge pumps to supplement their stock on a casual non contractual base from heavy pumps .Heavy pumps is a modest local business entity that has specialized in producing pumps .Heavy pumps was manufacturing the bilge pumps and transporting them to CJI’s warehouse at a cost of $1500 per part. The cost of delivery was $500 for each pump’s consignment. The delivery was made after every four or six months.

Major problems

From the CJI’s perspective the issues that need to be discussed by Mr. Ashby was the contract it made with Great lakes. Although CJI had enough and surplus capacity to improve and speed up on the manufacture and production of the different components that were supposed to be delivered to Great lakes according to the agreement signed; they were not confident that they would deliver their part of the contract in spite of already signing it. The challenge was that Cj industries had already signed the contract with Great lakes without informing them that they were not able to meet all of their requirement within the duration that had been stipulated in the contract.

  The other issue on the side of C J industries is that they had been in partnership with Heavy pumps. Heavy pumps has always supplemented Cj industries with bilge pumps. In terms of the contract, CJ industries was not sure if heavy pumps could increase their rate of manufacture and production to meet the threshold required by Great lakes contract. The new demand that was stipulated in the contract required fifty bilge pumps every month and the number had the potential to increase depending on great lake’s needs. Therefore the bottom-line issue with heavy pumps is that no one confirmed the ability of heavy pumps to meet the demand of pumps required (Part two supplies issues).

Nick Gram is the purchasing administrator of Cj industries. He was also the man who made the contract between great lakes and CJ industries happen. He was confident of the potential of cj industries to manufacture and deliver the pumps but it needed an additional finances. The finances would cater for labor and space required to manufacture the pumps. The issue was that he made the contract without taking necessary steps. For the above reasons Mr. Ashby should look into all the cj industries and heavy pump before he can be able to manage the project appropriately (Part two supplies issues).

One of the alternatives that nik gram considered was to  either seek other supplies who reside within the geographical region or put up infrastructure that would facilitate the production of bilge pumps and its parts (Part two supplies issues)

Possible solutions

A combination of this alternatives is a better option for CJI.

CJI should continue its partnership with heavy pumps. One of the advantage of continuing doing business with a long time partner is that the partner is more reliable and predictable .CJI already know the work ethic of heavy pumps and they can deliver their specifications to them when they are called upon to do so. Heavy pumps are also in close proximity to CJI and it will be more cost effective to work with them. Quality work is assured from heavy pumps due to their past relationship with CJI (Part two supplies issues).

            The disadvantage of using heavy pumps is that Cj industries is not sure whether they are  able to supply more than 50 bilge pumps per month as per the contract terms. The terms of the contract are supposed to be adhered to consistently on a monthly basis (Part two supplies issues).

The advantage that comes with   manufacturing and producing bilge pumps in -house is that it will comfortably meet the requirements and it will be more cost effective as transportation will to be considered as part of the expenses. The disadvantage of using in- house is that and an initial capital expenditure of US $500,000 as quoted by CJI’s production manager is needed. This is an expensive investment and  Cj industries has no experience in handling the demand required by Great Lakes Company therefore they will be indulging in an area they have never handled before in their business (Part two supplies issues).

The advantage that comes with using other suppliers is that it will easen the burden off CJI and heavy pumps and spread it to other firms. Also using the expertise of other suppliers will give heavy pumps and cj industries a chance to prepare themselves so that they can maximize on production of the pumps to add on whatever number the suppliers have produced.

Disadvantage that comes with using other suppliers is selecting and narrowing down to the right supplier will be challenging and will be time consuming. An unknown supplier may fail to meet the requirement specified or their quality may be lower than what is required. This may make CJI to incur more cost. So, other suppliers would be expose CJI to more risk due to the uncertainty. (Part two supplies issues).

Choice and rationale and implementation of the choice

The best way to solve this issue is to bring in Heavy pumps to help in carrying out in house activities in order for CJI to become more familiar with what it entails to manufacture bilge pumps and to gain more exposure on what needs to be rectified on their part. (Part two supplies issues).

 CJI can assure a consistent and continued contract agreement and other additional potential contracts in the future from great lake by cementing a good functional work relationship with CJI staff and other associates. A good relationship will entail openness on the terms and conditions of the contracts and how the conditions can be met comfortably without stressing one side. Also informing great lakes on the progress made in the production of bilge pumps and at the same time focusing on how the agreed target can be met will increase the trust of great lakes and trust will award them more contracts. The first step that can be taken to implement the choice above is by drafting a service delivery plan. This exercise will ensure that the whole contract is properly managed by enabling actual terms are adhered to. By bringing in heavy pumps will enable CJ industries to produce more bilge components. This will be a collaborative effort that will require less labor and utilizing the skills of both companies

References

Part two supplies issues: CJ Industries and Heavy pumps.

Vicap program

When murderers or rapists commit crimes in various locations or communities or even different countries, it is normally not easy to accurately identify and arrest them. This is because information on crimes is stocked separately in books of various security agencies. But in the last twenty five years the FBI’s VICAP has been utilized by law enforcers to identify and stop serial killers and other types of dangerous crimes. This program facilitates creating a connection between crimes that seemed unrelated. (CRJ3024 W4 reading).

VICAP deals with heinous crimes specifically those that have to do with murders, rape and cases of missing individuals .The data base of VICAP program is not available to the public and the media, its access is limited to the FBI and other high ranking security officials.

VICAP program’s main objective was to assist drawing the outline of a perpetrator by using collected information. This was inspired after the case of Ted Bundy, a serial killer who went on a wild killing activity. (CRJ3024 W4 reading).

It is a very difficult task, in a serial killer case to identify various victims and link them to one serial murderer. When Ted Bundy was in his prime and his series of murders had caught the attention of the public, the FBI came up with VICAP program to help them build his criminal profile and prevent such murders in the future. (CRJ3024 W4 reading).

The VICAP programs is an effective information system as it contains electronic entered data in the VICAP program website. The information is properly structured and detailed to ensure that no vital aspects are left out. One can use the specific details to relate it with any crime that has been carried out. The specific details enable one to connect the crime using type of ammunition used at the crime scene, automobile description or the method used to commit the crime. This allows investigators to establish any pattern or connection between crimes. Therefore VICAP can be used to arrest a killer who is serial in nature. (CRJ3024 W4 reading).

Combined DNA Index System (CODIS)

In an attempt to improve and assist to resolve multiple cold cases in various states in US, in the year 2003,president Bush came up with the a DNA initiative .DNA   science can be used to assist in the investigation of  murders. It gives direction to investigation and ensures absolute accuracy when there is any biological clues. DNA can also identify decomposed human corpses. It is good to note that DNA evidence cannot be found at the scene of every crime. (CRJ3024 W4 reading).

CODIS is used to generate analytical leads in crime cases where biological clues are found at the scene of the crime. It is an operating system that functions and serves different states .it participates in solving crimes using its database that contains information of the DNA outlines of various guilty perpetrators, not yet solved case clues and missing individuals .The system of CODIS facilitates law enforcers to conduct proper investigating in laboratories by comparing and contrasting DNA profiles using computers. (CRJ3024 W4 reading).

If an unsolved case contained biological evidence, the evidence can be entered into the CODIS system and there is a high possibility that it can match a particular profile in the CODIS systems. CODIS a very effective and efficient resource. It contains all the profiles. The profiles are usually keyed in in a timely manner. This has expanded the amount of data it contains. The data can then be harmonized with computer technology to solve crime cases. (CRJ3024 W4 reading).

During Ted Bundy’s case there were no VICAP nor CODIS programs. Investigators could only identify blood in terms of groups that is, AB or O un like currently where the DNA from a blood sample can be traced back to the individual. The effects of the murders committed by Ted Bundy put a lot of pressure on law enforcers to establish ways that could identify DNA therefore CODIS was formed. (CRJ3024 W4 reading).

Reasons why it is challenging for law enforcing agencies to work in unison when they are trying to catch a serial killer

This I because a serial murder investigation usually contains complex arguments. It is very difficult to coordinate a serial murder investigation by using more than two agencies due to different reasoning and ideologies. The findings and various perspectives of multiple agencies who have different experiences can shift and direct opinion to a direction that does not point towards solving the case but rather divert it. Local enforcers can use the data base of the FBI to assist in carrying out the investigation. The FBI can be involved but they must remain the third party and should not assume the man role. A sheriff  is more acquainted with the case than any other enforcer and he might feel more obligated to continue with the case.

Reference

CRJ3024 W4 reading