Flinder Valves and Controls Case Study

      The acquisition of FVC definitely makes strategic sense for RSE. RSE is a large industrial manufacturing company which manufactures advanced industrial components. RSE’s market cap during the time of the proposed merger was $1.4 billion, yet their founder, Tom Eliot, believes the merger with FVC will help the company to grow and diversify. In contrast, FVC’s market cap was $100 million, yet they have a lot to offer RSE. There are advantages and disadvantages to the proposed merger.

 In terms of advantages, FVC represents a significant growth opportunity for RSE based on their current success, and their exclusive government contract to develop an advanced hydraulic controls system named widening gyre. This advanced controls system has significant commercial potential in nautical, aerospace, and engineering products. Along with a strong reputation for engineering excellence, FVC brings significant R&D capability along with innovation, and a well-managed smaller manufacturing company that can produce more highly-specialized products.

RSE currently lacks innovation, as evidenced by no new products being developed for 2 years (University of Virginia, 2008). Also, leadership of both companies believes that a merger would create cost savings. Because of RSE’s size and purchasing power, economies of scale would be created. The in-process costs at FVC will be reduced by the RSE system of resource management by an estimated $1 million the first year, and $3 million in following years. RSE would also help FVC with a much larger marketing influence within industrial manufacturing.

   In terms of disadvantages, due to increasing challenges with the U.S. economy, the market view for industrial manufacturing during the time of the proposed merger is not strong. Forecasts predict that industrial manufacturers will be reducing production in both domestically and in Western Europe due to a tightening housing market and reduced spending. Internally, there is a disadvantage to the merger because of potential employee challenges adapting from two very different company cultures.

FVC is a much smaller company with an entrepreneurial culture, while RSE has a much larger corporate culture. Taking over the market of Flinder Valves (FVC) is a benefit to RSE since Flinder valve is an already established company and that has its market in United States and other big countries where the market is at its best level such as Korea and Brazil (University of Virginia, 2008). FVC deals with the heat exchangers and valves and the current market for the products is very attractive. Looking at the already established market, it is evident that RSE will benefit from the merger considering the fact that Brazil, Mexico and Korea are emerging economies in the world. At least above 30 percent of the heat exchangers and valves used in mainly Brazil and Mexico come from Flinder valves and this makes it possible for the company to even take over the market with huge levels.

The management of FVC had taken its time and done valued research which could assist the company growth and which allowed the company to be in a better position in the next 5 years. Such research is vital since it assures the company of success using the right means to reach the goals. RSE deals with products such as bolts and nuts, cables and chains and combining these two companies, there would be increased profits from one market to another (University of Virginia, 2008). Considering the financial statement for FVC since 2007 to 2012, there has been growth in the net income and this gives an assurance that the company is headed for success as the year's pass.  Most companies form mergers in order to take advantage of the already in place economies of scale. The sharing of the services and the resources of each company enable the growth and diversification of the companies. FVC is one company that has already established its existence in most cities and continents making it a practically capable company. The ready market makes it very good for RSE to reap good profits after the merger and influence the market to reach out other new markets. The risk involved when both companies are involved is reduced through innovating new techniques for the benefit of the merger.  

Mergers and acquisition in many cases lead to the loss of very talented and skilled personnel through the layoff that takes place after the merger. Skills are very important for a company and therefore very important to consider using the available skills. When RSE takes charge of the company, the workers and also those in leadership might lose their job meaning that they take away their skills which would have enabled the company growth. There might be a duplication of the services in the merger and this means that there can be an incident of cost increase with less revenue (University of Virginia, 2008). There can be cases of uncertainty during the mergers due to the high level of assurances required therefore leading to a delay of the services to be offered. Through the mergers, the companies might experience poor communication which might lead to a delay in operations and also lack of consistency with the workers. There can also be the issue of inadequate transparency in the merger since even if the management has agreed to form the merger, the workers and or the supervisors might give wrong information making it very hard to value the cost related and the benefits or losses to expect.

Reference

University of Virginia, (2008). FLINDER VALVES AND CONTROLS INC. Darden Business Publishing

International Marketing Management

Introduction

ViTrox Company is one of the major companies that are ready to venture into the new market especially the big emerging markets which will allow increasing the profits and the services of the company to greater levels. ViTrox is a type of a company that deals with the development and designing of automated systems for inspection for the semiconductors and also for the electronic packaging of products. The company also deals with the development of electronic equipment for communication. In Malaysia, the company is popularly known for its machine vision and designing of electronics. During its establishment in the year 2000, the company had its main goal of becoming the best at providing electronic and other services (Drury et al., 2014). For instance, expanding to Korea is a brilliant move since the country is known to be a market for electronic and other devices which are machine related. This available market comes with a price to pay also the competition to other companies such as Samsung.

1. Critically discuss some of the possible added difficulties and complexities your client international marketing firm might face when attempting to research the market for a product or service of your choice in one of the big emerging markets (BEMs). Explain how your client company could attempt to overcome the problems and complexities identified. Use specific examples to support the key points discussed.
2. Market complexities

Korea is one of the major countries that have its economy increase to greater levels, especially in the electronic and machine related industries. The country is known for the manufacture and designing of electronic services which are used locally and others exported to other countries. Foreign countries which might consider expanding its services into Korea has a lot of challenges to deal with before reaping the benefits but also there are more opportunities for the business industry. Korea is currently looking for ways to strengthen its economic services such as the petrochemicals, steel, and shipbuilding which have recently declined (Baack et al., 2013). Due to this reason, the country is focused on encouraging technology in every operation that will ensure that the country is at the top of the list when it comes to production and exporting of its services.

However, Korea means of increasing its operations have made it difficult for companies to enter into its market. Deregulations and liberalization of the goods imported continue to be the major challenge for businesses. Documentation of the goods imported into Korea by the customs officers makes it challenging for businesses in Malaysia and other countries (Drury et al., 2014). Malaysia continues to make it clear that the goods exported into Korea are of value and this means that the country is willing to help the business expand into Korea despite the challenges. The technical barriers of the business to trade into Korea require companies to have certain requirements. Such requirements include the due process, new standards, labeling, and transparency requirements.

1. Imports tariffs

Malaysia and Korea have implemented a particular strategy which will allow the countries to conduct business with each other on the basis of the agreement. Before the agreement which was enacted in the year 2012, the basic average tariff on goods was at 8 percent and the duty rates were very high especially on the agricultural produce. Based on the electronic services, the duty rates are very high since the country is trying to protect the current domestic industries (Drury et al., 2014). Korea maintains a tariff quota that is designed to make sure that the domestic industries are stabilized and at good stands in the domestic markets. The customs duties can be changed after every five to six months making it challenging to predict the possible future of any foreign business.

• Customs valuation

The duties are checked and assessed on a basis of cost insurance freight (CIF). The main methodology that is used in assessing and evaluating the customs is that which is known as the value method (Drury et al., 2014). Every business that enters into Korea must fulfill these requirements which are meant to ensure that the business does not come to compete with the local businesses which could see the local businesses fall while raising the profile of the foreign businesses. In this case, a value-added tax is included in every business expanding into Korea which is at 10 percent on customs value.

1. Requirements and documentation for the imports

Every business hoping to expand into Korea must accomplish the following shipping documentation to the Korean customs. First is the commercial invoice and second is the certificate of origin. Based on the commercial invoice, it must be original and must be presented with the documentation for shipping which will include a unit value, total value, marks, quantity, shipping from and to where and the products and this also applies for the certificate of origin. The company could solve these problems by the use of specific strategies (Baack et al., 2013). Such strategies would include partnering with a local business and this will allow the business to enter the market without any major hindrances. ViTrox could also use the method of inviting interested investors into the company for the benefit of the business. For example, partnering with a company that deals with the development of local electronic appliances and other industrial equipment which are almost similar to what ViTrox designs.

At the multinational step, the business is marketing its goods and services in many nations and states in the world and specifically wants to gain some benefits from the available economies of scale. All the multinational businesses with the operating subsidiaries expansion to the global platforms form challenges to the officials and managers who are in control of the marketing department (Drury et al., 2014). Every market at the national level is different from any other market and this is a consideration that managers should hold in mind. The language, distance, customs and the normal practices form some form of communication difficulties which the businesses must face and define appropriately.

• Justifythe use, importance and expense of a multinational marketing information system (MMIS) to marketing management. Explain the component parts of such a system and the type of information you would consider important to include in such a system. Use a systems diagram or figure to illustrate the points made.

Marketing information systems have its main goal of making the role and need of creating and having a well-maintained information process for the business in making the correct and desired decisions. Each development begins with having a definition of the marketing information systems structure, determining both the internal and external databases and the computer applications. The next step is solving the problem by setting up the marketing information systems in the business (Baker, 2014). Businesses need the above information in order to be aware of the environment, customer needs and the market competition involved. Understanding the supply, transaction, demand, credit, and any other alternative requirements and data will enable the business to have an increase in the transparency and thereby developing good marketing and production strategies. Such data allows the company to have a reduction in the cost and an increase in the revenue and income of the business. Within the system, there are basically four types of the system that ensure that the progress of the company is at its best level.

Such programs include the executive which are at strategic level, the management information programs, decision program support at the level of management, and transactional process which is at the level of operations (Baker, 2014 p86). Each system at each level is designed to have specialization in the major functional levels. Therefore, every system is designed to assist and help the workers perform their duties at the best level in the management of the business. The areas include the manufacturing level, marketing and sales, accounting and finance, and the human resource department.           

                                               Data

                                                                                                     Information

                                                                                       Marketing decisions and communications

At the internal reporting systems, every enterprise that has been in existence and operating for a varied period of time is considered to be very resourceful. The data in this system is underutilized since it is already computerized based on the organization. For example, production, financial, manpower, logistics and stock data is the kind of information at this stage. Such data is considered less helpful since the decision makers cannot access such data and use or to make decisions. Marketing research is very active when it comes to searching for information (Laudon & Laudon, 2016 p102). Doing such research ensures that the business is equipped with the best strategies to venture into the markets. Problem-solving using the available data assist the companies to make informed and good decision regarding the future of the company.

            Through the model of marketing information system, the business has the capacity to handle and use the information to understand the customer management strategies. The model can be used in making the problems faced during the processes eliminated through the formulation of decisions which can support the system. Decision support systems can be used in making the strategies quality, tactical and very operational in every market (Laudon & Laudon, 2016 p90). A system that is very functional in terms of the information management balances the users against the goals and the future of the business. The multinational marketing information systems can be used in understanding the relationship with any customer. This is beneficial since the managers can make informed decisions regarding the customer behavior. Internal marketing is also increased by having the system in place. Inbound and outbound distribution and logistics are allowed by the enhancement of the marketing information systems. Benchmarking and evaluation of the customer service is highly increased when the company has a reliable source of information systems.

During the venture, the prices of the products and services at ViTrox are reviewed since it is a new market and this comes with the changes in the exchange rate for the currency. Strategic plans are made through the information systems developed. The end results of the information systems provide two possible choices which are the advantages and disadvantages. Advantages include the availability, communication, and globalization of the business (Baker, 2014 p65). The instant messaging through the emails, voice, and even the video calls make it beneficial to the business. One of the major advantages of having the systems is increasing the level of unemployment and job security (Laudon & Laudon, 2016). The paperwork is now done by the machines and also the security of the system is kept at risk due to sharing of information over a network which can be prone to hacking and accessed by unknown users.

• Critically examine the main factors your client international marketing firm would have to take into account when planning pricing decisions within your chosen BEM.

Selling any products in the international market and especially in Korea requires the understanding of the different factors involved which can impact on how the company makes its prices count in the international market. Such factors include the cost, competitions, attitude in relation to the products, government regulations, and the brand image. Looking at the cost factor which is basically the main factor to consider, ViTrox should consider the cost of getting the raw materials which is a direct cost and the cost of distribution which comes in as an indirect cost to the business. The cost of obtaining the raw materials in Korea is very expensive considering that most of the domestic companies are involved in this industry (McDonald & Wilson, 2016 p87). One might think of importing the raw material which is also expensive and which in many cases can be rejected by the country. Many countries prefer businesses to set up operations in the country rather than import since it means that there will be an increase in a number of products in the market and a reduction in the number of people employed in the various industries.

Competition is also a factor that the company must consider since there are already established businesses in Korea and which are not ready to share the market internally and externally. It is very challenging to compete in the international markets than in the home local markets. The foreign businesses have to compete with the other foreign firms which are under different market environment and regulations (Doole & Lowe, 2008 p79). Such high levels of competition reduce the chances for success for small businesses which do not have the advantage of being in the market for long periods of time. In some cases, ViTrox might be forced to consider other strategies to enter the market and this makes it prone to international challenges. Venturing into Korea is a good move but which is full of challenging situations.

The attitude by the members of the country such as Korea might reduce the chances for success for the business. Every consumer in the international market usually develops some level of attitude that is very negative and which makes it impossible for the business to thrive. Korea has international standards and therefore if any business from a lower level country tries to venture into the country, the market can be very difficult to venture into (Doole & Lowe, 2008 p36). The prices are usually higher and this creates certain perceptions which are disadvantages to the ViTrox Company. The brand image of ViTrox makes it compete at a comfortable level but also presents certain challenges which might affect the growth of the business.  Other brand images such as Samsung have the capacity to grow and increase their operations compared to ViTrox which will need an improved strategy to be known in the Korean world. The international market is priced according to the level and this might mean that the company will be charged higher premiums to compete.

Government regulations are also factors which influence the prices of the commodities to be sold in Korea. The country responsible for the exportation of the products is supposed to be very conversant on how the prices are given and set in every market (McDonald & Wilson, 2016 p50). The prices are enacted by the government and they have to be followed every time the company does business in Korea. The government can influence the prices on the basis of the highest cost and the lowest cost for any product ViTrox sells in Korea. Duties and taxes are also determiners to the prices of the commodities. The cost and the duty paid to the Korean government should be known by the company in order to pay the required amounts. This cost is similarly reflected in the cost of pricing the products in the member country. Also, the size of the shipment usually matters to the company (Farrell, 2015 p45). Such regulations are set in order to prevent the companies which might take advantage of the small shipment to import commodities and then sell them at a higher price in the same market. The positioning strategy is also a determinant in the prices of commodities in Korea. Value and quality positioning are the main methods of positioning for the company and which will enable the relation and the competitive level of the business in the Korean market. Value positioning is considered to be the best method since it has a low cost of the units served.

• Critically discuss the possible differences and likely additional complexities in integrated marketing communications strategy when your organisation begins operations in your chosen big emerging market.

Any company can choose to either adopt a new communication strategy or use a strategy that is effective in the local market which is the home country. Different markets require different strategies when it comes to the advertisement and development of new products. The brand name of the company is very important since it allows the business to either thrive or shut down. In some countries, certain names are against the traditions and so the company has to consider the name of the company which must be in line with the traditions of the company (Andrews & Shimp, 2017 p46). If the customers are not happy due to the brand name which might be against their traditions, then there is a high chance that the product will be rejected and the company will face a lot of losses. Every company applies a company name that is very standard when it comes to advertising its products. This makes it very beneficial for the company during expansion making this a quality strategy for success.

There are strategies and quality methods of identifying a good communication and brand name in a country like Korea where ViTrox is considering expanding its operations into. One of the strategies includes having well defined goals and the possible limitations of the campaign. The marketing channel must be clearly defined in order to take care of the different open channels in Korea. The resources available for the campaign are also very important to consider in the development of the campaign. Building awareness of the products requires some level of advertising which are aggressive to make the target market very aware of the existence of the products in the local market (Armstrong et al., 2015 p41). Many people in Korea might think of changing the company they buy the electronic and industrial products and machines from and chose to use ViTrox as the main supplier. This can only be identified and reached if the company does some aggressive advertisement of the products. Using the business summits and exhibitions is beneficial to the company. Exhibitions invite the major stakeholders in the country and other potential companies and members of the public who can be potential clients to the ViTrox industries. The efforts and goals of the company have to be clearly defined by the company. Each business venture requires improved services and developed methodologies to deal with the competition in place (Farrell, 2015 p34).

In most cases, the target audience of the company products is business owners and individuals who have the interest of doing businesses such as electronic handling. Such a market can be big or small compared to the level of marketing done in the specific areas or country. Choosing a market that is both profitable and very receptive is very important for the business. Consumer insights can be used to identify where both of these proportions can be located and which is the best mode of advertising to reach such goals. Use of strategic thinking and data driven approaches, the objectives and the goals of the company can be identified to the best level in the business. The standards of operations must be objective and selective enough to influence quality business operations. Having an analysis of ViTrox is beneficial since it will help in locating the available insights to the business. The strength of a business in Malaysia can also be the strength of the business in Korea and therefore very important to think about this option for the success of the business (Armstrong et al., 2015 p27). Also the strength, weakness, threats and the opportunities available in the market can be helpful in identifying the target audience. The perspective of the consumers is very important in choosing the marketing strategy. The factors in the advertisement industry that could ruin the business must be focused and leveled to influence the success of the business.

Understanding the competition and the competitive edge is vital for the business. Competitive advantage of the business is supposed to make it possible for the business to thrive in a country like Korea. Finding a unique strategy which the current competitors in Korea lack in their marketing strategy is vital to see the business rise above the normal standards (Andrews & Shimp, 2017 p36). How one country performs its operations should be very different to the strategy of ViTrox to ensure that the market is both influenced and targeted towards the company’s products. The media can be used to the advantage of the company. Promoting certain programs can increase the level of awareness and the possibility for success. Some people try to incline themselves to the products of one particular company that showcases difference in terms of design, quality and mode of technology used.  In a country like Korea, the method which can be very advantageous in offering a wide range of audience as the target market is by use of technology. Technology through the billboards, social platforms and other platforms opens the channels for increasing acceptability of the products in the market.

• Critically examine under what circumstances might your international marketing firm consider using joint ventures to exploit business opportunities within the selected big emerging market (BEM)?

Joint venture is a particular strategy that is used by companies which want to achieve particular goals relating to the market. Joint venture is a process where at least two or many businesses come together and joining their resources and form of expertise in achieving the goals which each wants to achieve. Many businesses form ventures when they want to expand to the international market and other local markets.  Moving into a new market can also be a reason to form a joint business strategy particularly when targeting the overseas markets. ViTrox can gain from such a strategy to reduce the effects that are brought about by the issue of venturing into a new and foreign market. Joint venture is not considered to be a partnership of any kind since there is a definite end to the operations due to focusing on a particular undertaking or project. Joint venture offers certain benefits to both companies that have chosen to use this strategy which increases the product awareness and marketability.

ViTrox could be in possession of quality strategies while operating in Malaysia but there are benefits when it considers the joint venture when entering into Korea (Yan & Luo, 2016 p32). This is due to the fact that the venture could offer more resources, the technical expertise could be increased, the capacity can be increased to better levels, and the advantage of having a venture with a recognized and a grown business for the distribution of services for the company. The company name will however change in certain cases but in most cases the business name stands according to the company standards. In this joint venture, ViTrox will maintain its name but due to the venture and promotion by another company the term partnership will exist.

There are different types of ventures which are options ViTrox can consider when choosing the method. The objectives and goals of the members who choose to form the joint venture are very important and form the reasons and the type of venture to consider. One of the available options is to have an agreement on co-operation with the business in a specified and limited way. For instance, ViTrox could use the existing businesses in Korea to set up a joint venture which will allow growth and distribution of the devices and machinery manufactured by ViTrox. Both of these companies which have the agreement could have a signed contract which sets up the conditions and the terms of doing business. A separate joint venture is also an advantageous setting to consider which is flexible and more enhanced. In this case, a new company is formed to deal with the operations of the companies under agreement.

Partners in each company own the shares and this means that management is also shared between the two companies (Chang et al., 2015 p301). A business partnership is also a venture that many businesses consider as beneficial as the other types of joint ventures. Using this strategy, it means that the two businesses might be dissolved into one business. This allows the management and control of the business to be focused and at its best level. Management of this type of venture is simple since the operations are concentrated to one specific goal which is to succeed in the market. Under the economic reasons, joint venture ensures that the business stays in operations for more than the expected times. It is very expensive to start operations in a country like Korea without having a joint venture especially when the company is bound to face major competition in the Korean market (Raj & Deka, 2014 p21). The benefits of joint ventures vary from country to country but in our case, the benefits are more than the risks involved. Faster growth, productivity increase, and the generation of more profits are the main benefits of having the joint venture.

Accessing the local new market and the available distribution channels opens the opportunities for success of ViTrox industries. Sharing the risks involved at the entry level allows the business to have a reduced cost when entering into the Korean market. ViTrox is an already established company in the home market and therefore there is no possibility of the company to experience lack of funds to operate in the global market (Yan & Luo, 2016 p34). Therefore the risk of going bankrupt due to regular borrowing is minimal for ViTrox. The customer base in Malaysia increases the chances for success of the international market at ViTrox. The joint venture will ensure that the competition is minimized at all levels. Due to the venture with the home country business in Korea, the prices become more manageable at all cases.

Conclusion

ViTrox can get the best out of getting into the Korean market through the available marketing strategies. In Malaysia, the company has already established a base for the products and therefore makes it possible for the company to even get better results through venturing into the big emerging market in the world (Yan & Luo, 2016 p50). The emerging markets provide a particular reception and capability of the companies to grow to greater levels and this makes them perfect market targets to focus operations in the future. There are many benefits which a company can get from venturing into new market apart from unlimited profits. Korea is an emerging market that is growing at a high level and therefore good for growth.

References

Andrews, J. C., & Shimp, T. A. 2017. Advertising, promotion, and other aspects of integrated marketing communications. Nelson Education.

Armstrong, G., Kotler, P., Harker, M., & Brennan, R. 2015. Marketing: an introduction. Pearson Education.

Baack, D. W., Harris, E. G., & Baack, D. 2013. International marketing. Sage. 

Baker, M. J. (2014). Marketing strategy and management. Palgrave Macmillan.     

Chang, J., Bai, X., & Li, J. J. 2015, May. The influence of institutional forces on international joint ventures' foreign parents' opportunism and relationship extendedness. American Marketing Association.    

Doole, I., & Lowe, R. 2008. International marketing strategy: Analysis, development and implementation. London: Cengage Learning.

Drury, A. C., Krieckhaus, J., & Yamamoto, C. 2014. How Democracy Facilitates South Korean Interest in Free Trade Agreements. Korea Observer, 45(1), 39.     

Farrell, C. 2015. Global marketing: Practical insights & international analysis.

Laudon, K. C., & Laudon, J. P. 2016. Management information system. Pearson Education India.                

McDonald, M., & Wilson, H. 2016. Marketing Plans: How to prepare them, how to profit from them. John Wiley & Sons.

Raj, P., & Deka, G. C. 2014. Handbook of research on cloud infrastructures for big data analytics.

Yan, A., & Luo, Y. 2016. International joint ventures: Theory and practice. Routledge.

Sample Contracts for Outside Setting (OS) company

A contract is basically a type of an agreement that is legally valid between two parties and which can cause serious trouble in case one of the parties goes against the agreement. There are certain elements which make up a contract and which are recognized by the law. Such requirements include the legality of the relationship agreed, capacity to act for both parties which are legal, interaction between the parties to make it legally binding, and acceptance and the offer involved (Lau et al., 2012). These elements are very important to make the contract valid according to the law and for the law to protect the relationship.

In most businesses which conduct businesses with each other and which are prone to challenges have the advantage of formulating a contract to prevent the actions of one from affecting the other business. For example in our case, Outside Setting (OS) requires having a contract with the manufacturer to prevent actions of the manufacturer that might affect the business of OS. OS is a company that deals with selling of outside furniture to its customers located different parts of the country. The company has also established an online shop where interested buyers can buy goods over the internet. The company also deals with customized goods as required by their clients (Lau et al., 2012). This is a business strategy that is meant to ensure that the company has increased its sales from one level to the next and thereby increase the revenue. Such opportunities and business ventures are prone to challenges such as delays, the requirements and eventually losses to the company. Formulating business contract form is very important to ensure that actions of either the manufacturer or the customer do not cause harm to the business.

Bilateral contract

The manufacturer in many cases has been found to either ignore or not put a lot of effort in answering the emails and other information regarding the customer order and in this case OS store. Not responding to the emails and messages creates a level of untrustworthy or lack of competence and this is dangerous for any business. Confirmations need to be done to ensure that there is no breakage of communication. In this case, OS can benefit from a bilateral contract that will ensure that in the future all emails and messages sent regarding the transportation and shipping of orders by the manufacturer is taken into consideration with the urgency it deserves (Lau et al., 2012). A bilateral contract will reduce the acts of the manufacturer lack of answering emails and eventually shipping products which are not according to the order. On the issue of late and delay in shipment, the contract will prevent the manufacturer from delaying any kind of order made which will in return lead to customer delivery on time. Delaying of products affects the business in terms of customer specifications and deadlines since most people love working on deadlines. In the case that the manufacturers do not deliver on time or deliver orders which are non-conforming, then there are consequences since this will be regarded as a breach of contract which is punishable by law. There should be fewer cases of lack of consistency from the manufacturer since the goods sent are already paid for making it very unfair for the manufacturer to consider delivering goods as requested.

Punishments for breaching a contract must be signed and presented before a court of law making them legal if one party goes against the contract (Lau et al., 2012). Such a contract is vital since it increases the chances of the business at OS rising in terms of the revenues. There are serious consequences for parties which decide not to honor a contract. The manufacture after signing a contract will ensure that the liability of the goods ordered will be on the manufacturer and not the company. Delaying in delivering and responding to orders is a threat to the business. In the case where the manufacturer cannot make the delivery, the manufacturer is expected to reply the possibility of delays so that the company can find another supplier for the same products. It is very unethical and irresponsible for a manufacturer to not make deliveries on time or even communicate and therefore getting into a contract will reduce the chances of delays and lack of commitment to work.   

Sales contract

A contract has to be formulated between the customer and the company. Making of customized furniture means that the design has the probability of attracting only the individual who made the request. Therefore if a customer creates an order and wants the company to make the same design as per the preference, then there has to be a contract to be signed. OS has been facing issues with customers canceling orders immediately they are asked to make payment and the delivery to follow. This leaves the company with an added stock which would otherwise be liquid cash for the business. The manufacturer, in this case, OS should not undergo extra expenses and stocking of goods which were not collected by customers on the basis of cancellation (Lau et al., 2012). There should be a formulated document where the customer will give details of the names of the customer, what kind of furniture to be made, the price of the product, a down payment, time of payment, ownership, security interest, other conditions and the agreement. This kind of agreement will ensure that a customer honors the agreement through signing and fulfilling any requirements for the making of the furniture requested.

Having the customer even pay for a down payment for the furniture will ensure that the customer is genuine and this reduces the chances of having the goods rejected to a minimal level. No one is willing to let their money go to waste and so signing a contract will prevent the cases of cancellations. In the case that any party waives on any of the terms and conditions for the contract at any given time, the waiver will now be effective for the specific time and instance the action has occurred. Unless either party claims the upholding of the contract, the chances are that the contract will be rendered not valid. In such a case, the customer will be liable for not honoring the contract if he does not collect the goods as stated in the contract (Lau et al., 2012). Having such a contract is very advantageous to the company since this ensures that the business does not overstock and make furniture which will eventually be rejected by the customers. On the other hand, the contract is very important in ensuring that the customer is satisfied with the end product. Creating customer confidence is very important for the business since this will now create customer loyalty and eventually start gaining referrals which boost the business in huge volumes. In cases where there is a breach of contract, the party liable for the loss will be responsible for compensation to cater for any damages. This is an effective way to reduce the activities which might lead to one party taking advantage of the other party and not honoring the contract. Such actions are very effective for the business to operate without any challenges brought about by customer order cancellation.   

Sales agreement

The internet is one of the major areas where the businesses have gained a fortune through the creation and development of goods and services for customers to access and make any kind of purchase. Online shopping is the best kind of shopping since customers do not have to go from one section to the next looking for what they want. All that is required in to type the name and the products will appear. This is a simple and straightforward way of getting what one wants just by way of clicking or tapping. However, the simplicity of getting what one wants always comes with the challenge of specifications which might be similar to another product and upon delivery, the customer rejects the goods delivered. In such a case, there are chances that the business will suffer from the rejected deliveries and this is an issue for the company (Lau et al., 2012). Wrong interpretation of goods presented as being a binding offer could be a problem for the company. On the online platform, customers complain of having the outline very confusing and this makes it hard for them to get what they want.

On how to deal with the issue, the company has to clearly give details of every product and even offer a picture of the same so that no more complaints regarding the goods being confusing on the eyes of the customers. After the company has cleared the confusion on the online shop, a contract has to exist binding the buyer and the claims to the goods requested. When the customer clicks on the request for an order button, the customer has created a contract and the contract will be received by OS. In this case, if the goods are present the customer will create an order and if the goods requested are out of stock then the order will be rejected. Such a contract is very important for any activities conducted will be legally binding. The buyer in many cases can be typing in words at a very high rate and therefore confusing some words (Lau et al., 2012). It is therefore appropriate for the online shop to request the customer to confirm the number of items requested and the purchase price to eliminate errors. In the case the customer has submitted the order after confirmation, then the contract is valid and the goods are shipped whereas the customer is expected to pay the required amounts. This is the law in e-commerce which reduces the probability of being given wrong orders.

Memorandum

To: Staff

CC: Staff, Management

From: Management

Date: 7-November- 2017 

Subject: Adherence to product delivery and customer specifications

Due to the numerous cases of delays and misinterpretations of customer order, Outside Setting (OS) has decided to formulate laws and contracts that will make it possible for the company to realize its goals and this can only be made possible if rules and way of performing the business are followed. In the past, the company has been dealing with the issue of customers complaining about different deliveries from what they order and this has been a problem for the company. Also, there has been an issue with the fact that some customers are canceling orders which have already been completed and this is causing the company lots of money in expenditure. Therefore, the company has decided to make it clear for every interested customer to sign an agreement which will ensure that there are no mistaken words during delivery or collection of items ordered. A contract will be the best to ensure that both the company and the customers do not go against the requirements of each other. Breaching of contract will amount to serious court cases that will lead to more problems for the involved parties. It is therefore important for both parties in agreement to make a point of honoring the agreement. This move has been established and reached at to prevent further losses to the company and also increase the loyalty with customers. Therefore, any order made by the customers will now be required to undergo a series of processes in order to deal with lack of competence in either purchasing or delivering. Each staff member dealing with customers is now recommended to ensure that there are no cases of wrong orders and wrong deliveries. The aim of the agreement is to allow for a cohesive environment where one can do business and make the customer satisfied with the goods made.

Reference

Lau, T., Johnson, L., & Open Textbook Library,. (2012). The legal and ethical environment of     business.

Information Environment

   The information on Starbucks entry into United Kingdom’s market relates to factors influencing decisions on mode of entry for Starbucks and the best entry mode for United Kingdom market.

• The known information includes the fact that United Kingdom market is the first market in Europe that Starbucks entered. Moreover, the entry mode of Starbucks in the market opening about 500 retail stores in the market by 2003 (Starbucks, 2014).
• It is known that the firm had to endure high competition in the market from other brands providing sub-statutes product. Therefore, competition will intensify in this market due to increased substitutes which can affect the strategies employed by the firm in response it.
• It is also known that the entry into the market will be determined by various factors prevailing in these areas and which the management may need to explore. With the firm’s patents and trademarks, it would be right to conclude that the firm can use them in selection of the best entry method that will meet the expected results.
  • 2
• However, what is not known is the performance of the firm in that market and whether the expected rests will be finally achieved. Therefore, the uncertainties in the market including changes in customer preference cannot be known until such is experienced (Alderman, 2012). Other unknown information includes the specific cultural, political, economic and legal factors that are likely to affect the entry of the firm and which the management needs to explore.
  • 3
• Given the nature of the market, the assumption is that the firm can use a variety of strategies for entry, with best entry mode forming the most effective strategy.
• If the competition remains high, it would be assumed that a change of the strategy will be necessary.
  • 4
• The assumptions are important since they will assist an individual in covering for any scenario that may arise in the market.
• They represent available modes of entry into the market and preparing the firm for any risks that may be encountered in the process.

Recommendation

• The recommendation in the Starbucks study involves using the known information to develop a product that is more differentiated in order to create and maintain competitive advantage in the new market.

References

Starbucks. (2014). Starbucks Company Timeline. Dover: Starbucks Coffee Company

Alderman, L. (2012). In Europe, Starbucks Adjusts to a Cafe Culture. Retrieved October 13, 2014, from New York Times

Wal-Mart Chain Stores

Wal-Mart is an international company located in the United States that operates more than 11, 000 stores all around the world with a customer base in every city they have their businesses. The company was founded by Walton who managed the stores since 1962 and later incorporated in the year 1969. Over the years, the company has grown in terms of customer base and its functions expanded to different parts of the world for continuity of business. The company is regarded and recognized as the first in revenue, largest private type of limited company and which has employed more than 2 million people all around the world. As the company grows and diversifies from location to location, there are a number of challenges that have been affecting the company and which bring the revenue and customer loyalty down to its knees (Pope and Pope, 2015, pg8).

Under the new management, the company has undergone a number of activities including the management taking its duty in maintaining and creating possible ways of running the business. The management has discovered a number of challenges that have been affecting the company growth and diversification. One of the issues affecting the company is the issue of sustainable global supply chains. This is one of the business issues that are affecting the business and the organization in general. Another challenge is the store layout and the design and the third is the issue of prices related to competition. This is an issue that affects many stores which is an issue brought about by the store size which brings about competition.

1. Supply chain global sustainability

Many businesses are affected by the issue of supply chain sustainability which is an issue to do with the process and the technologies in terms of the environment, legal, economic, and social issue. The supply chain sustainability is basically based on the issue of making sure that the environment is at its best for the survivability of people which is also good for the building of strong brand image to the customers (Waller et al., 2015, pg306). In the case that the principle is not observed with the keenness it deserves, there could be a problem with the management and the continuity of the business. The new management has taken up its duty in the company and looked into this issue with the aim of reestablishing the brand name with the customer. The issue came up when the company discovered that the rate of customer buying from the stores had decreased over the years and something had to be done to prevent further damage to the company (Pope and Pope, 2015, pg4). A number of customers had initially complained about the issue of untidiness and lack of quality products or being sold products which had already reached their expiry dates.

In the stores and warehouses, the company discovered that the rate off restocking was at its poorest level in many stores and once the products are almost going bad, the staff stocks them for customers to buy. This is not ethical and this could even cause a lot of harm not only to the business but also the customers who consume products which have already gone bad. Products or stock which has not been sold and yet has gone bad is always returned to the main warehouse in the city where it is disposed. The kind of environment where the expired products are dumped has become hazardous to the people living in that area and also the environment due to pollution (Majumdar, 2015, pg321). Most of the products which have expired pose a challenge to the environment due to the chemicals and the packaging which is pollution to the environment. Waste products when kept in one place rot and sometimes produce a smell that is very harmful to any living organism. The products at some of the stores have overstayed their expiry dates and this is an issue that the company has vowed to address in making sure that ethical business standards are observed. In many stores, the management has reported finding an environment that is not good for business and which affects the business since customers love a place where they can be comfortable associating with.

Wal-Mart management has had a number of ways which are meant at dealing with this issue once and make it ethical and less expensive for the company. Such ways include having the involved parties do a thorough cleaning of the stock or get them dismissed from their jobs. There is no need of making an order for products and yet the current stock is still far from being exhausted at the stores (Pope and Pope, 2015, pg6). The ordering of new stock will cause losses and overstock of new and current stock and since not many people would prefer using the old while there is new, the customers will be attracted to buy the new stock. Also, the store needs to be rearranged so that the previous and incomplete current stock is given priority to reducing wastage and products going bad. This will eventually lead to low stock being expired and finally lack of dumping and therefore saving the environment from being polluted.

Such a move by the company has been welcomed by the stakeholders and the media has commended the step. According to many stakeholders, less wastage increases the selling capacity which ensures that the company gains from the current stock. There is no business which can continue its operations when there are challenges such as wastage since it will bring down the business and cause a shutdown of its door leaving an open forum for the competitors to take over the market (Achua and Lussier, 2015, pg80). The media has also commended the move terming it as a good way to reduce environmental pollution which is very unwelcoming for the guests in the areas and more-so people living in that location. Thus there will be an increase in customers and confidence will be restored to the Wal-Mart stores which will increase customer loyalty and this will have a positive impact on the business through an increase in revenue and customer satisfaction as the main objective.

2. Design and store layout

The design and the layout of the store are not in line with the best standards to allow for customer convenience while shopping for goods at the stores. How a store is designed has a lot of influence when it comes to customer specifications. Customers tend to be attracted to the stores where there is a large enough space for them to feel free and have a wider view of a variety of items they can select for their personal use. At Wal-Mart stores, the design and the layout structure is very poor and this reduces the chances of a customer shopping at the store twice. This is one of the ways that the store has been losing its customers to the competitors in the line of supplying quality goods and services. It is a factor that affects businesses which posses the idea of not wasting any space or using similar colors in its design. Such decisions affect the customers since many are attracted to how good a store looks and not the kind of services offered inside (Majumdar, 2015, pg310). In many cases, consumers look for a store where they can connect with and which has made a mixture of colors to bring out the beautiful sceneries or beautiful surroundings. This should be the aim of every business structure which has the objective of being the best at what it gives to the customers.

Wal-Mart has made a serious change to the stores which are viewed to be performing very poorly due to the stores being in a bad shape and an unattractive design. The brand image of the company has been upheld through changing some store designs to reflect either the environment or the specific items being retailed. For example, one of the stores in Spearfish has been changed from the norm to reflect the environment the store is located. Having the store match the location scenery is a bold move that the company has taken to ensure that the brand name and image remains strong and dedicated to offering quality services for the customers (Ghazzawi et al., 2014, pg9). Normally, Wal-Mart stores are known for its blue color as its tradition but the current store has been furnished to resemble the green scenery of the surrounding. The change in color helps in building a very strong brand image and customer loyalty through the provision of utilitarian advantages. The store now uses an attractive grid layout which has parallel aisles and products on each side of the aisle. Notifications and signs are displayed above the aisles at the grocery section to ensure that the customer is not confused on what products are located in one place and where to find the customer requirements. On the same store, since it is located in the center it has comprised of other services such as the optical center, bank, salon, lube department, and a pharmacy. Such layout indicates the possibility of accomplishing more than a single need under the same location therefore very convenient for the customers. 

Stakeholders and the media, in general, are happy with the move by the management. More stakeholders are viewing this as a good way of inviting customers to the stores and almost every store will now benefit from this program. There are numerous advantages with regards to having a good design and layout since now there are fewer staffs that will be required to make the transaction and direction for the customers thereby lowering the cost of operations (Achua and Lussier, 2015, p87). Also, more staff increases the probability of being very idle at the work and more congestion in the same area. The job which more than two staffs were performing can now be performed by one or even by a single paper.  The layouts have also been designed in such a way that those who live with disabilities are not left out. At every point of entrance, the company has designed a way where the disabled can park while doing shopping at the stores. Inside the stores, the disabled persons are provided with the motorized machines to help them move around the store while looking for what they can buy. This is the same case with every aisle which has been made big enough to allow a motorized machine pass through without any difficulties (Ghazzawi et al., 2014, pg9). Media and the stakeholders have commended the move since it shows the commitment to make everyone comfortable at the store. Such a bold move does not only increase the sales volume for the company but also increase the probability of customers flooding the store and this creates a good brand name.

3. Prices compared to competitors

Prices of products are very important to consider especially when the business is highly competitive. The key idea to success in any type of business is to lower the prices to a competitive level. Wal-Mart has been facing a number of challenges considering the fact that the prices are higher than those of the competitors for similar products (Majumdar, 2015, pg300). The retail type of business is very competitive on the part of Wal-Mart stores. Every type of business is competing for the same customers, store locations, employees and services and products stocked both in the United States and within the global standards. Wal-Mart competes with the retailers who are offering their products at a discounted price, drug stores, supermarkets, departments and other major players in the retail business. This creates some level of competition that in many cases could see the business being shut down. Currently, many customers have been complaining about the prices being extra exaggerated than other stores which offer similar products. Customer complaints are very discouraging for a business especially if the business is new in the industry since this could mean the end of operations for that business. However, Wal-Mart has the advantage of being recognized as a chain store that has been in operations for many decades and therefore some level of customer loyalty is earned (Majumdar, 2015, pg297). This advantage might soon come to an end if the major competitors decide to close in right into the territory of Wal-Mart stores.

Management has decided to take action and lower the prices of commodities considering the location of the store to ensure that there is a competitive advantage on the part of Wal-Mart. The company has the ability to offer quality services and value for money spent at the store by the customers. These abilities include the having rollbacks, everyday low prices, and stores within stores and the store for the community. Such strategies are very effective especially due to the large size of the stores. The company has the capability of having their prices half or quarter what the competitors have and this gives the company the control of the market for effective competition. However, customers tend to not be attracted by low prices and rather want to have the best customer service from any store. Therefore, training of the employees and increasing their wages has been its strategy to take over a large market. Employee training is a strategy that is aimed at increasing customer experience for the benefit of creating loyalty with the customers (Achua and Lussier, 2015, pg85). Investing in employees will invite the customers to the stores since they will be attracted to how good they are treated and the relationship with the store will ultimately win the day.

Offering higher wages to the employees is also very important to make sure that the employees do not be rude or show lack of interest to the customers. Increasing wages and the salaries act as a goodwill to what the company aims at therefore ample support is required. Even if the competitors lower their prices in half, it will only lead to loses for the competitors since only a few will gain interest in making any serious purchase. Most people will prefer shopping from a store they have had an experience with for many years and which does not disappoint its customers. Competitor’s move of offering low priced items is not a long-lived strategy since the next time they offer such prices will be after making other progress in the business. On the part of Wal-Mart, offering quality services and lowering their products only at certain times is a good strategy for success.   

Discounting on the prices to increase the sales is a good strategy to reduce competition. Stakeholders recommend this idea since not many stores have the capacity of offering quality services and of value to the customers for many years. Having the capacity to offer the products at a differentiated price in every community is advantageous since this will help keep up with the competition. In some locations, the members of the public cannot afford to buy expensive products so hiking the prices will only lead to loss of customers in that location. Similarly, some locations hub very senior people and who do not consider cheap items as their kind of products to deal with and so stocking their class of products is a very good move by the company. Eliminating competition is very important and the best strategies should be implemented to ensure that the customers are kept in the right position with regards to the economic trends. In areas where the economy is perceived to be straggling, the purchase rate for the customers is also very low and straggling making it perfect to consider going by the trends but keeping the prices at a beneficial level for both the customers and the chain store. 

Conclusion

Wal-mart stores are identified as the company which practically deals with the development and innovation of strategies which can influence the demand and supply of products to be of its benefit. Innovation is what has kept the company moving its sales to many parts especially in the United States. Supply chain sustainability should not be an issue that is affecting such a big company. The management in the chain store should be very open on how the stock is being handled and ensure that goods and services are according to the customer specifications (Achua and Lussier, 2015, pg81). The delivery of the goods to various stores has to be increased as well as ensuring that each particular store has already completed the current stock. Wal-Mart is a big store that has the advantage of buying in bulk and this means that there are numerous benefits to the company. Such advantages should be used to provide the best services for the customers and the general public including the employees. Wastage should be reduced to zero if possible through a number of ways such as being keen on the products being stocked on the shelves.

Goods which have been in the warehouse for long periods and which are good for human use should always be stocked first to reduce on the expiration while still in the stores. The designs and the layouts of the stores should not always be about how the stores but should be about how attractive and represented they are to the target market. Customers are the most important parts of a business and everything possible should be done to retain the customer loyalty. This includes if the customers prefer having a rhyming color to the products, this is required. In many cases, retailer takes into considerations their view of how well they think they are doing but the correct answer is always provided by the general users (Achua and Lussier, 2015, pg81). Stores should arrange their products in a way that is simple and very effective for the customers to locate. Competition is also reduced when a store is kept according to the best standards. Competitive advantage at all times should be of advantage to the retailer and Wal-Mart has established that for their benefit. The customers are satisfied with the kind of management and the staff working at the various stores in the chain stores. Listening to the customers and the general public is also vital for a large store in order to get the benefits out of every comment made by the public.

References

Achua, C.F. and Lussier, R.N., 2015. Small-Town Merchants are Not Using the Recommended Strategies to Compete Against Nationial Discount Chains: A Prescriptive Vs. Descriptive Study. Journal of Small Business Strategy, 13(1), pp.80-87.

Ghazzawi, I.A., Palladini, M. and Martinelli-Lee, T., 2014. The Wal-Mart stores, Inc.: An American dream that touched the world. Journal of the International Academy for Case Studies, 20(1), p.9.

Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.            

Kim, Y.H. and Davis, G.F., 2016. Challenges for global supply chain sustainability: Evidence from conflict minerals reports. Academy of Management Journal, 59(6), pp.1896-1916.

 Majumdar, S.K., 2015. Competitor entry impact on jobs and wages in incumbent firms: retrospective evidence from a natural experiment. Business and Politics, 17(2), pp.291-326.

Pope, D.G. and Pope, J.C., 2015. When Walmart comes to town: Always low housing prices? Always?. Journal of Urban Economics, 87, pp.1-13.

Waller, M.A., Fawcett, S.E. and Johnson, J.L., 2015. The Luxury Paradox: How Systems Thinking and Supply Chain Collaboration Can Bring Sustainability Into Mainstream Practice. Journal of Business Logistics, 36(4), pp.303-305.

The Role of HR

            According to CEO Grossman, it is the role of the human resource to always engage with employees. For instance, on the first day of work, employees have to attend an orientation as organized by the human resource manager and this is one way of engaging with employees. Still on engaging with employees, the human resource can eat together with the employees; this helps so much to read the character of an employee (Mindy, 2014). It is also important for the human resource personnel, to assess employees earlier so as to avoid casting blame on each other later. After assessing the employees, the HR is able to identify the toxic employees and get rid of them instantaneously because it is always dangerous to work with such employees; they are the ones who lead to the downfall of the company. It is also the role of the HR to ensure, there is proper customer service regardless of what will cost the company. This helps the company to always focus on the needs of the customers and how those needs can effectively be met (Mindy, 2014). Therefore, any HR should always listen to the customers and devise ways to meet the exact needs of the customers (Mindy, 2014). The HR must always be flexible, for instance, he or she should be always prepared to adjust quickly if one management strategy has failed. In this case, the HR must always be familiar with the various management strategies and provide the suitable one for the company at that particular time. The other role of the HR is to provide clarity to the employees. After setting goals, it is always important to give directions on how to achieve given set goals.

References

Starbucks Relationships

Starbuck has become a well-known name as an established company in the global context. Since its opening in the year 1971, the company has achieved immeasurable success with more and more outlets opening (Nguyenja, 2010). In addition, the company is boasting with a revenue that is over 3.3$ dollars (Nguyenja, 2010). However, the company’s success is dependent on one specific product the coffee seed. The quality of this seeds should be at the highest in order to support the company’s value that is centered on quality. In order to sustain its competitive advantage, the firm is focused on building stronger relationships with its coffee farmers from the local and foreign markets. In order to maintain this relationship, the company understands that the needs of the farmers such as pricing should be fulfilled for their survival (Nguyenja, 2010). The company pays higher coffee prices to be fair and inspire the farmers to sustain their relationships.

One of the primary international marketing aspects that is present in the video is maintaining relationships. For any business such as Starbucks to maintain its competitive advantage, it is required to create and also maintain positive relationships with its consumers and coffee growers. This is because the company does not own any coffee farm and therefore its supply depends on the farmers. Without good relationships amid the two, this means that coffee supply might not be steady and the company would become unreliable thus destroying its reputation in the global market. This has been essential in building its image as a responsible firm that is not only objected to increasing its earning but also addressing the needs of its consumers and coffee suppliers.

The concepts of building positive relationships in order to support international marketing and build a positive reputation can be utilized by other companies in ensuring steady supply, reliability, and quality. Without the suppliers and consumers, the business can never be effective and thus building stronger relationships is a requirement in sustaining competitiveness. With positive relationships, the brand of the company grows even further in the global context as the values of the firm are upheld in general.

McDonald's: Segmentation, Targeting, and Positioning

In order to ensure that the company’s products are relevant to the consumers, target marketing is utilized by marketers. This involves the identification of the most suitable population for the products and then strategically positioning them to attract the specific segment (Blythe, 2017). For McDonald segmentation is the primary marketing approach but the burger giant approaches the marketing rather differently from most companies. In that rather than targeting its consumers based on brands the company mainly focuses on segmentation branding as directed by segment managers. This helps in focusing the specific needs of every segment such as women, young adults, and children and so on (Blythe, 2017). This does not only lead to increased satisfaction but mainly focuses on maximizing its targeting efforts and marketing value in general. Through the segmentation, the behavior of the consumers and their needs are acquired for modification and making its marketing even better. This is a research strategy that is aimed at consistent products development in general. The insights acquired from the consumers are particularly focused on needs, values as well as a lifestyle which are the primary factors that determine purchases. It is the insights that the company utilizes in addressing products needs and creating relevant marketing advertisements to the public (Blythe, 2017).

Consumer targeting is the primary international aspect of marketing that is present in the video. This is accomplished through targeting, segmenting as well as creating effective positioning. The company focuses on identifying its potential consumers then positioning the products in a relevant manner that directly appeals to the segment. Product development and research are also accounted as essential aspects of stabilizing the business. This helps in gaining insights in regard to the consumer's concerns and then creating relevant marketing approaches to attract the targeted segments.

Companies can utilize this market targeting approach in ensuring that their marketing approaches are valuable and target the right consumers. in that rather than conducting marketing, in general, the needs of every segment, their values and lifestyle should be established fast to ensure that the marketing is appropriate in gathering their attention in general. This approach is essential in gaining maximized value for every product through marketing.

Starbucks: Serving More than Coffee

Starbucks to most is a firm that is committed to providing more quality coffee to its consumers in general. However, based on the recent development the company is offering more than just mere coffee in some of its outlets across the globe (KOMO-communities, 2010). The company had the intention of focusing on diversity and aspect that it has been able to achieve through the newly developed outlets. For a number of months, the company has been engaged in continuous research trying to acquire responses from its consumers on what they would wish that the company would offer different (KOMO-communities, 2010). This led to the establishment of broader setting that not only offers coffee but also has wine and beer joints and more space that enables those that are interested in holding meetings to do so with ease. This new design has not only attracted a separate segment but has also helped in the positive marketing of the company as a diverse firm in the global context. The company acted on the needs of the consumers as well as its need to exploit a more diverse market due to the increasing competition in the market and the need to differentiate products (KOMO-communities, 2010).

From the video the primary international marketing aspect that is present revolves around targeting, and relationships building. Starbucks recognized that without the consumers then its marketing efforts would not generate any form of fruits and thus it was able to achieve even greater by creating a different focus for a different consumer segment. The company has achieved this through research in the quest of developing what it offers in general. In that research helps in establishing the needs of the consumers and the best approach to fulfilling them.

This information can be utilized by other companies that are in need of diversifying their products to suit into the values of the consumers. Through research, the companies can gain insight into the wants and lifestyle of the consumers and therefore, adjust their services on that basis. In other words, this strategy can be utilized to focus the general marketing approaches to a system that is characterized by higher value leading to consumer’s satisfaction.

Creating a Global Brand

Creating global brand is essential to the business success (Frampton, 2015). A global brand acts as a reflection that the company has been able to create something that is relevant and useful in the global context. In other words, this must be something that individuals can easily connect with. In order for a company to create a global brand, they should keep human contact as the primary channels. In that, they should focus on connecting with the individuals regardless of their culture, background, and origin (Frampton, 2015). This must be a thing that has some benefits in their everyday lives. This is similar to social responsibility which means giving back to the community but a global brand is built after better relationships are created. Maintaining these relationships and connects is essential not only in building trust but also helps in understanding the needs of the consumer much better. This is because the global market is comprised of segments with rather different needs and concerns and each of them is essential (Frampton, 2015).

The primary aspect that is related to international marketing from the video is building connection and relationships with the consumers. Relationships are not build to boast of large segments but they are created in order for the firm to be able to understand the needs of the consumers in general. For the brand to be accepted in the global context it should work beyond, regional and cultural backgrounds and focus on the values and lifestyle of the consumers. Connecting with the consumers will impact their lives positively and this helps in boosting the acceptance of the brand.

This information can be utilized by companies that are in need of building more authoritative brands in general but in the global context. It is good to connect with individuals directly by transforming their lives to earn their will. In that, any brand should mainly be focused on the needs rather than the existing diversity. It is not about complexity but the potential to work beyond the set boundaries in general in ensuring that success has been achieved. This is a form of marketing that focuses on building positive relationships with the consumers.

Kraft: Marketing Globally

At 95 years old Kraft Oreo is the most popular cookies in the globe that is enjoyed in more than a hundred countries (Zareitnow, 2017). The products are highly global and are consistent throughout the market except for a number of exception in a different market that is aimed at fitting the needs of the consumers. The products are appealing based on their unique flavors. Products adjustment, packaging as well as marketing are some of the necessary modifications from a market to another in the quest of matching with the consumer’s values, expectation, and preferences (Zareitnow, 2017). For instance, in China, the company provides products that are less in sugar composition something that is particularly appealing to the consumers. Packaging and sizes vary from market to market. In that in the United States, the sizes are bigger since the consumers have the tendency to shop in large quantities while in others they shop in smaller portions. However, despite the achievements, one of the greatest burdens in global marketing is the ability to create suitable marketing. In that, it is necessary for the markets to fully understand the values and the needs of the consumers so that the marketing options can be relevant (Zareitnow, 2017).

Products localizations and development is the primary aspect of global marketing that is present in the video. In that in order for success to be attained in the global context, the promotion used should align with the market’s values. In that several aspects such as products and packaging changes consistently based on the existing needs in the market and thus the company should be willing to adjust. This means that in a different market the needs and values are different and packaging should be based on the expectations and preferences.

This information can be utilized by any company that is in need of developing its marketing efforts in the global context. In that, the companies should first focus on understanding the values and preferences of the consumers and then redesign the products to suit those needs. The marketing should be relevant to the targeted consumers. This means that the background and expectations should be considered so that an appropriate approach can be developed.

Dole: Buying From Vendors around the Globe

Dole is the global largest producer of vegetables and fruits (Zareitnow, 2017). The company is well known for its provision of quality and yet fresh products on its daily operations for years now. However, in order to retain this success the company is required to identify its products farmers a build lasting relationships with them in general. This process of establishing and maintaining such relationships is known as business to business process of buying (Zareitnow, 2017). This is a rather long process that incorporates the producer’s up to the last selling process.  The company is mainly focused on ensuring that it sustains its brand by observing its quality. In achieving this the company ensures that the producers and vendors adheres to the set regulations. In that because the products are highly perishable there are specification that should be followed. In that the company recognizes and assesses those that are qualified to sell its products. The company is also engaged in the supervision of the quality of the products ranging from the ingredients and the packaging that the vendors utilize that might disqualify some of them. This is because the company is committed to the values of quality and accessibilities and it should directly adhere to them in order to retain its global position (Zareitnow, 2017).

From this video, maintaining the relationship is one of the primary aspects that is related to international marketing that is present. In that, the company can never be successful if it has not created good associations with the consumers and the suppliers in general. In order for this to be achieved the relationships must be positive to promote the ability of all the parties to survive. In that in satisfying the consumers the values of quality and packaging should be relevant.

This information can be utilized by a company that is in search of building and maintain strong relationships with the consumers and products suppliers. For steady products, flow and sustainability positive relationships should be created in general so that they can fit the needs of the targeted population in general. Global marketing is all about building and maintaining positive and valuable relationships.

New Balance: Managing Supply from US and Overseas

Supply chain management refers to the general coordination of suppliers, manufacturers, warehouses, storage as well as distribution so that merchandises can be produced in the right quality (Zareitnow, 2017). However, the effectiveness of the chain of supply is primarily dependent on the general potential of any given company. Most individuals recognize that New Balance is particularly associated with quality, satisfying shoes. However, what is not known is that the company is able to sustain its production and quality values because it is committed to the development of an organized and efficient chain of supply. In that, the company highly values integrity teamwork and full consumer satisfaction (Zareitnow, 2017). This is achieved through building as well as sustaining authoritative relationships with the consumers and vendors in general. The company appreciates that it is through relating well to the consumers that their needs can be established to suit their products. This is however not possible without relating well with the vendors since they connect directly with the consumers. The company manages the supply chain from the point of manufacturing up to sale. The company is also unique since it manufacturers the products both in the United States and overseas which helps in easy supply to the outlets. After the manufacturing, the distribution company’s takes over which is done at a rather rapid rate to ensure steady refilling of stock (Zareitnow, 2017).

Relationship maintenance is the most important marketing aspect for the global context that has been established from the video. In that, it is not possible for the company to attain success if it does not connect well with the suppliers and consumers. The company is focused on creating an efficient supply chain to ensure that all its values are achieved. The concerns of the consumers are best addressed by following up on sales and responses from the vendors in general.

This information can be utilized by companies that are in need of building positive relationships with the consumers and suppliers. In that, these companies are required to ensure that the supply chain is effective prior to engaging in any other sought of focus. It is the effectiveness of the SCM that determines whether quality, convenience, and steady products flow are achieved. Without adequate consideration then the business might fail to achieve the set goals.

Mini-Us Promotions

Mini-us promotions are mainly focused on demonstrating the effectiveness of teamwork and building positive relationships. In the business world, it is rather apparent that combined efforts from all the parties are required for any business to achieve success. Particularly in the global market for any company to create an acceptable brand, in general, it should particularly focus on building wellness. Success can never be achieved in the absence of positive relationships which helps in the general building of goals. In that, after a company has created beneficial relationships then it can focus on how the set goals can be achieved. Building an effective global brand in the market today works mainly beyond any set standards because the consumer’s expectations and preferences should be met adequately (Zareitnow, 2017).

The primary aspect in regard to global marketing in this context is relationship building and targeting. In that relationships are created after establishing the market that is to be targeted in general. Success can never be obtained prior to focusing on needs of the consumers. Building such relationships should be with the suppliers and sellers in order to ensure that the supply chain is efficient and reliable. In the market today, consumers are more interested in the ability of the firm to fulfill its values such as quality rather than its size.

This information can be utilized by the companies that are in need of building a well-developed presence in the global setting. In addition, this information is useful for creating an accepted brand in the local setting as well as abroad. The most accepted brand is the one that works beyond regional and cultural boundaries and mainly focuses on values and preferences. This product should also have a positive impact on the consumers for them to be able to recall and retain their purchasing rate.

References

Blythe, R. (2017). McDonald's Segmentation, Targeting and Positioning. Retrieved from https://www.youtube.com/watch?v=rFueEzZL3so

Frampton, Jez (2015). Creating a Global Brand. Interbrand London. Retrieved from https://www.youtube.com/watch?v=Ukd3xp78S3M

KOMO-communities. (2010). Starbucks Serves Up More than Coffee. Retrieved from https://www.youtube.com/watch?v=cGlrYb09CTg

Nguyenja. (2010). Starbuck’s: Building Relationships with Coffee Growers. Retrieved from https://www.youtube.com/watch?v=zln9dzIwdf4

Zareitnow, T. (2017). Dole: Buying from Vendors around the Globe. Retrieved from https://www.youtube.com/watch?v=e8jAeqm2ics

Zareitnow, T. (2017). Kraft: Marketing Globally. Retrieved from https://www.youtube.com/watch?v=dwGfnNeiVGU

Zareitnow, T. (2017). New Balance: Managing Supply From US and Overseas. Retrieved from https://www.youtube.com/watch?v=YJiPp7RdZck

Shipping Global Business

 Executive Summary

The shipping company is an industry which caters for both the online and physical representation of the customers. The shipping company will be identified as best low priced, on point customer service provider and environmentally friendly company in the global business. The shipping company has already identified practically three key identifiers of success which will be very vital for the success of the business (Hill et al., 2013). The first and most important is to offer the market required services that will be accomplished through reasonable market prices for shipping services. Second is to make sure that the services offered by the company are very convenient to develop and retain customer loyalty. Convenience is very important to ensure that the key players in the industry who are the customers become regular customers which can only be obtained through customer services.  The third and most crucial for continuity of the business is to implicate strict financial control standards. A business that respects the rules and regulations hereby set by the company with regards to the country policy is headed for success.

The shipping company will be targeting at least three categories of customers who are basically the new eBay customers and the already users of eBay. Each category of the group will have as many reasons as possible as to why they should use Kingsway auction and shipping company. Identifying that the two are very different groups is important since the target will be very different as well (Poulsen & Johnson, 2016). The so-called new users of eBay have more than 12,000 users who are very potential who have a growth rate of about 16 percent while the already users of eBay range above 8,000 and a potential growth rate of above 10 percent. The third group of potential customers is the other group which has a growth rate of above 6 percent and a general potential figure of over 20,000 people.

Competition is one of the many advantages and disadvantages a shipping company experiences. The first type of competition involves the companies that offer shipping services as an extra service to the customers. In many cases, customers would prefer to use the same company which the business was transacted to ship the products thereby leading to loss of an opportunity. Many of these types of companies offer shipping services as an auxiliary type of service (Yang et al., 2016). Second is the major type of competition which involves the franchise operations which focus on the shipping and packaging of customer goods and services. This type of service providers faces and convinces a customer on why they should use their services as long as one is willing to pay for the cost of service.

The shipping company has engaged in one of the best business people who are entrepreneurs and who have an experience in this field. The individual will be very successful in making sure that the business is successful through laying down the best strategies in place to deal with the issue of competition and other market-related challenges. The educational standards of the individuals will be responsible for steering the company to earn an income of more than 300,000 dollars in a period of 1 year.

Mission statement

The shipping company mission is to be the best in terms of shipping and quality customer service in the industry. This can only be achieved through being the best in maintaining a customer satisfaction of above 100 percent, prices are reasonable and the service is done through the fastest ways possible.

Company name, product or service description

The company will be known as Kingsway auction and shipping company. The services offered are very identical to the Mailboxes, but company services are practically geared towards the auction based transactions. The containers and materials to be used will generally be recycled. This type of service is very crucial since it will allow the company to save in terms of the cost used in shipping and auctioning of the products. By use of recycled materials, the company is saving on the environmental hazards which would cause pollution. While shipping into South Africa, there are several issues that a company must consider to fulfill and which has allowed Kingsway auction and shipping company to operate in this country. Some of the legal issues include having a bill of lading, commercial invoice, insurance certificate, and at least three copies of packaging list (Poulsen & Johnson, 2016). Not at one time does this country accept the importation of goods such as the illegal substances like heroin where a violation of such laws could cause the termination of services and jail time of the involved party. The country expects the company management to uphold the ethical standards which include following rules and regulations and the maximum amount of cargo any inland service vehicle should carry. Market entry into the country is somehow very challenging but the set laws can help in making the business a success. Some of the policies include the fact that there are many business organizations which have basically concentrated their efforts on the major metropolitan regions making it difficult (Roy, 2015). Price is very sensitive on its part so the prices on our side must be regulated at all costs. Consumer protection laws are vastly present in place ready to act on any violators. Basically, these are the risk analysis that the company will have to consider in its operations in South Africa.

Company structure 

Chain of command for the shipping company will be simple but very clear for the staff and any interested party. It will involve the board of directors who will oversee the running of the business, a managing director in the specific country. The director will be tasked with ensuring that the finance, production, packaging, marketing, and the personnel including the customer care services are operating in the best way possible (Yang et al., 2016). The type of company structure is a limited liability company. In this case, any member of the company will not be held accountable for the goods or the debts the company incurs. This structure is one of the best in such a company since the type of goods carried could be perishable making it very risky while in transit. With this ideology in mind, the company will be able to undergo its operations not fearing that the goods could cause a loss to the company.       

Foreign Corrupt Practices Act       

The Foreign Corrupt Practices Act is a type of regulation law that was developed in the late 70s in order to make it illegal for persons and the entities who want to make payments to the officials of foreign governments for the purposes of retaining the business or obtaining a business. This is specific in the anti-bribery situations where the involved parties will make some payments to the foreign officials and make it possible for the officials to allow the continuation of services under the illegal means of operations (Lee at al., 2014). Corrupt services are strictly prohibited in many countries according to this act and any kind of corrupt services could render a company out of services and freezing of assets. This applies to the foreign international businesses which have unclear motives in their activities. All the activities conducted must be lawful and according to the set rules and regulations.

Market analysis

Kingsway auction and shipping company will be targeting two market segments for the continuity of the business both the new users and the already present or users of eBay. The eBay has created a substantial number of customers with the capacity of holding millions of information and customer order including the transactions done. This is a very open kind of a market where an investor can make money using the right media (Yang et al., 2016).

Kingsway auction and shipping company will be honored to serve the three kinds of customers. The company is by huge levels very convenient when it comes to offering the services which will be very fast an environmentally friendly kind of services. Shipping market is huge and therefore the best opportunity for the business to survive. Almost more than 90 percent of the services offered by the online transactions are fully sorted out by the actions of shipping companies. According to the market research, the incoming number of people to the services of the eBay is rising at a high level and therefore convenient to offer the services for the industry.

Looking at the above figure, it is evident that the market is growing to huge levels and it is the high chance for the company to take advantage of the future of this business.

According to the company market segmentation, there are many open opportunities for the company which would make it perfect in competition. New users of the services offered by eBay are generally new to the industry making them a good market target. These people might have been purchasers but in this case, they might be valuable in terms of selling to the auctions. Offering services that will be very helpful in terms of packaging and shipping are very important for the industry. On the already users, it is a market segment that has very active sellers on the eBay market (Poulsen & Johnson, 2016). Offering the services which will be flexible in terms of price and shipping is very important to secure a large market. On the other users or those interested in the eBay services, the gap exists between the buyer and the seller for shipping making it an open market for the company to operate. Considering the strength of the market, sustainability is one of the strengths of the business including having a strong brand name in terms of functionality. Impairments getting lost or damaged is a weakness of the company but as much as there are weaknesses, there are many opportunities for the company. Opportunities include acquisitions and partnering with major inland transport companies to transport the goods and services at a reduced cost. Threats include having the trade policies of protectionism increased in some countries.

Estimated annual sales have increased the probability of the company succeeding.

Considering the above figure, it is evident that the market will keep increasing to higher levels as time goes. The annual sales will continue to increase for the benefit of the company. The advantage of the company distribution channels is the fact that there are no middlemen in this business. In many cases, middlemen affect the prices of the commodity in transit without adding value to the products.

Taking advantage of the growth in the internet industry in technology is vital for the success of the company. Use of web is important to allow access for potential clients to get services from the company. Increasing the awareness through communication and submission of the company details for customer service is important (Lee at al., 2014). The development of a website is very simple and straight since the company information is readily available. Prices for the services will vary from country to country since each country has a different currency and the exchange rate can be different.

 Foreign exchange market

Currencies in every market and especially the foreign market are determined by the demand and supply of the commodities and government interventions. Players in this field are the banks and other brokers in the currency industry. Most of the transactions will be determined against the dollar both in the country and outside the country according to the involved state of transit. Dealing with foreign exchange types of risks is paramount for the company (Gabaix & Maggiori, 2015). Many investors face this type of risk in the market and it is the company to identify ways of coping with this risk. Translation of the financial statement is very risky in a foreign state. This, in turn, causes a difference in the company stock prices. Internet services are basically the best but in many cases, they are affected by the issue of being hacked and data sent to the wrong people. Some of the risks involve having the information falling into the wrong hands making the company vulnerable to cyber attacks.

Potential international sources of financing

Debt and equity is a source of international funding. In many cases, international companies invite people to buy shares in order to continue the business stock capacity. Shares increase the source of earning for the company thereby making the company successful through various means of earning capital or revenue.

 Exit strategy and feasibility of the business

Acquisition and merger is a mode of exiting a business and which would be very efficient for the business. Several companies are in this business of shipping and it would be preferable to merge with one company to allow the continuity of the business and customer services. In many cases, shutting down operations is considered as a way of exiting the market but it has diverse challenges such as the lack of trust from the customers (Gabaix & Maggiori, 2015). The company has the possibility of increasing the operations. The business is prone to success and so venturing into it will mean that it will be a success. The continuity of the business is based on the kind of management the business possesses. In many cases, business does not shut down for petty reasons but when there is a failure in the management.

References

Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L.      (2014). International business. Pearson Australia.

Gabaix, X., & Maggiori, M. (2015). International liquidity and exchange rate dynamics. The Quarterly Journal of Economics, 130(3), 1369-1420.

Hill, C. W., Cronk, T., & Wickramasekera, R. (2013). Global business today. McGraw-Hill Education (Australia).

Lee, C. B., Wan, J., Shi, W., & Li, K. (2014). A cross-country study of competitiveness of the shipping industry. Transport Policy, 35, 366-376.

Mallam, S. C., Lundh, M., & MacKinnon, S. N. (2016, September). Supporting Participatory Practices in Ship Design and Construction–Challenges and Opportunities. In Proceedings of the Human Factors and Ergonomics Society Annual Meeting (Vol. 60, No. 1, pp. 1004-1008). Sage CA: Los Angeles, CA: SAGE Publications.

Poulsen, R. T., & Johnson, H. (2016). The logic of business vs. the logic of energy management practice: understanding the choices and effects of energy consumption monitoring systems in shipping companies. Journal of Cleaner Production, 112, 3785-3797.

Roy, M. (2015). Maritime Security in South West Asia. Institute for.

Sornarajah, M. (2017). The international law on foreign investment. Cambridge university press.

Yang, C. S., Lu, C. S., Haider, J. J., & Marlow, P. B. (2013). The effect of green supply chain management on green performance and firm competitiveness in the context of container shipping in Taiwan. Transportation Research Part E: Logistics and Transportation Review, 55, 55-73.

The End of the Boss: Companies are doing away with middle managers- but workers shouldn’t jump for joy just yet.

In the article titled ‘’The End of the Boss’’ authored by Aoron Hutchins (2015) discourses the sensations of dismissing middle level managers. The article’s author, Hutchins has won various rewards in his journalism specialty in researching partisan, investment and public policy related issues. Hutchins undoubtedly describes the primary reasons as to why the occupations of the middle level managers are endangered in the current work market both in the government and private sectors. For the upcoming graduates, who will soon connect with the workforce the study is a suitable one as it offers realistic insights on the fact that the reduction of mangers in the current market does not lower the working responsibility. Although the article strategically points on the fact that dismissing the middle managers on average employs but fails to acknowledge the general effect of this conduct on the unemployment level.

Cording to Hutchins (2015) dismissing middle managers affects the hierarchical structure of the organization by increasing workload for the upper employees and affects the employment rate of those dismissed. The article ignites the matter by highlighting the existing tension amid workers and managers prior to the provision of a number of truths in regard to the recent occurrences of not incorporating the middle managers. Most of the leading companies such as Walmart has initiated the trends. The article particularly focuses on justifying the rationale behind dismissing the roles of middle managers. In that Hutchins (2015) asserts that it is a strategy that is aimed at lowering the involved expenses since most businesses are in search of minimal operating costs in order to accommodate the value of affordability which has the potential to attract the highest number of consumers. In addition, this trend is fueled by the need to allow fresh generations to participate and advance technology use for efficiency. This reasons are based on the need for elasticity and independence in business.

Hutchins (2015) appeared to be highly concerned with the impact of dismissing middle managers on the entire workforce since the absence creates low monitoring force and supervision leading to higher workload based on altering the hierarchical chain. Based on the fact that the author mainly writes addressing the policy makers, it would be anticipated by most that he would also address the general effect of the growing trend on the rate of employment. The article fails to offer ranging statistics to prove the threatening effects of the matter but does not also provide solution to the issue. More so, the author should have proposed on whether the affected middle managers would focus on high training and learning high management roles. However, the article’s significant and useful can never be doubted since it highlights some of the most recent changes within the corporate work and how it is affecting performances but does not offer any practical or realistic measures in regard to those that are affected by the transition.

In conclusion, it is apparent that the disappearing position of the middle managers has affected the hierarchical structures in organizations but also the future employment positions. Employees within the average positions should mainly concentrate on higher trainings in order to avoid the outcomes of unemployment. Although the article strategically points on the fact that dismissing the middle managers on average employs but fails to acknowledge the general effect of this conduct on the unemployment level.

Reference

Hutchins, A. (2015). The End Of The Boss: Companies Are Doing Away With Middle Managers- But Workers Shouldn’t Jump For Joy Just Yet. Maclean’s 128(19-20) pp. 36-37).

The production Group

Production is vitally an involved segment in a customer-focused institution because it determines the general performance and attainment of organizational goals. The production group includes the mandate to guarantee quality while maintaining and enhancing organizational efficiency to meeting market obligations. The team entails the responsibility to ensure product value by customer needs and efficient manufacture for the sustainability of corporate offering in the market (Daft, 2012).

While managerial performance objectives in organizations revolve on the factors for employee performance management including goal setting, monitoring employee performance, evaluation of performance and recognition of achievement (Mone, & London, 2014); it is, however, important to note that organizations and groups are also superior components of the whole performance management. Organizational performance details regular activities of creating corporate goals and monitoring the efforts to the achievement of goals. More so, it unfolds the concept of the viability of endorsing operational adjustments to enhance the performance of an organization. Through this, it is deducible that production is a recurring activity because it plays a very vital role in organizational performance (Sobotta & Peetz, 2015).

The production group exemplifies a mutual reporting system from which every participant has the freedom to expressing his or her contribution to organizational performance.  The principal stakeholders of the production group encompass the manager of the production segment and the comprehensive team of employees both skilled and unskilled workers. The common relationship structure clarifies that members of the production group possess equal opportunities to participate. Importantly, the group leads through a two-way reporting system. For instance, hierarchical communication is highly discouraged within the group considering that employees are allowed to offer their understanding of production to the manager while adhering to the managerial obligations (Dreikorn, 2004). 

Data collection

I believe that regular assessments on current performance are of importance to the betterment of the entire organization. However, it is logical that the validity of obtained data is reliant on the viability of the assessment model. Therefore, it is reasonable to employ an orderly and explicit assessment model to guarantee the feasibility of obtained data. To attain a reasoned assessment, I intend to use questionnaires as the assessment tool. Surveys will efficiently gather motivated data from all members of the production owing to its characteristic of confidentiality. Confidentiality is a crucial aspect to consider when collecting information from a group considering that participants have the freedom to express their concerns (Walsh & Wigens, 2003).

Data for Organizational Improvement

Capacity assessment is vitally important to the development of a plan for organizational improvement (Glisson, Dulmus, & Sowers, 2012). Therefore, the capacity grid will be used to measure the operational capacity by identifying the strengths including the potentiality of employees towards the achievement of organizational goals within the production segment. Nevertheless, data on the appropriateness of the current operational structure will be necessitated to evaluate the key areas that need to be adjusted for adequate improvement. Therefore, systematically, questionnaires will be provided to the skilled employees with different questions including on the effectiveness of, for instance, current implementations, management and employee compliance to performance. Moreover, the manager of the production segment will be tasked to answer questions on the appropriateness of operational systems and employee compliance towards the common goal.

Diagnosis

The diagnosis of the obtained data will be focused to accomplish the objective of influencing improvement by recitation organizational understanding. The data will be interpreted by the nature of practices that should be taking place within the production segment in response to the objective of enhancing corporate performance. The diagnosis will as well be focused to highlight the order through which practices should be conducted. Besides, the interpretation will be objected to identifying the issues to be addressed in the efforts for organizational change while evaluating the appropriateness of the efforts to inducing positive change. For instance, the diagnosis will be a basis for setting performance standards concerning employee positions, group and operational processes.

Developmental activities

The principal objective of the diagnosis is to determine the viable ways of improving customer satisfaction and employees in production to enforce organizational improvement. Encouraging a culture of innovation within the production segment is a crucial activity to ensuring corporate development. The idea of changes will be purposively used to eliminate a culture of fear among the employees and other stakeholders while installing a background of continuous improvement. Experimentation is likely to be enhanced through innovation hence facilitating speedy and newly modified products, generation of efficient processes and models of production (Landström & Lohrke, 2010). On the other hand, the diagnosis provides the critical issues that should be when developing a plan for organizational improvement. It unfolds the essence of continuous improvement and corporate respect for its people. Therefore, it will be necessary to involve the production workforce in the planning processes to strategic development.

Communication of Progress

The group progress will be communicated in varying methods depending on the target audience. Therefore, meetings will be used as effective methods of delivering the growth of the group to the employees (Marrelli, 2010). A conference call is a viable means of communicating the performance of the production group to the project manager since it is time efficient and minimizes traveling expenses. Importantly, newsletters or emails will be used to communicate the progress of production to the organization. On the other hand, customers are core to organizational improvement hence the development will be delivered to the customers through the organization's website.

References

Blog: Leading In a Changing Global Environment

Leadership in an ever-changing global business setting is associated with several impacts. To begin with leading in such an environment means that the leader has been accountable to the companies setting and operations principles (Rainey, 2013). The way that the leaders normally handle any rising issue within the business surrounding is usually exposed to examination, for example, the structuring of workers’ salaries, their strategies in regard to culture, diversity, social responsibility, and environmental conservation. Leading in such a setting implies that all the ethical and operational standards have to be adhered to without fail in order to protect the image of the company (Rainey, 2013). In addition, one is required to be familiar with the changing trends within the market in order to ensure that the company operates and meets the needs of the consumers. The general cultural and religious settings that might affect operation should also be assessed and strategies to mitigate created (Rainey, 2013).

Leading in the ever-transforming international environment might be perceived by most individuals as a rather challenging position for an organization but the existing opportunities and benefits exceed the complexity (Rainey, 2013). The global environment, unlike the local one, is characterized by a more diverse populace and different market with their different needs and preferences and in order for a company to achieve success, all the aspects should be met adequately. It is essential for companies to operate in the environment since they are bound to enjoy an extensive market, high sales, and obviously high revenues when equated with those that operate in the local market (Rainey, 2013). However, leading in this market requires the general adoption of more strategic approaches.

An additional effect of leading in the global context is associated with the management threats. In that, the management in such a setting should be highly effective because of the involved issues and the fact that the company is expected to achieve a certain level of efficiency to appeal to its consumers (Thomas, 2015). The rise of fresh issues might generally affect the operation of the company particularly if such matters were not expected. The absence of practical knowledge in regard to how issues should be handled normally pressures leaders and if they are not well equipped then they are pushed to a disadvantage which might, in turn, affect the productivity of the organization. However, some of the leading organizations in the global market have operated effectively based on their use of creativity and innovativeness (Thomas, 2015). In this context in order to sustain the global leading companies must be willing to set standards and working surroundings that encourage the workers to be highly productive.

Team Leader Model provides guidelines on how teams should operate and how success can be achieved. In other words, it helps in the identification of issues and directions that can be adapted for success in regard to high performance and motivation (Thomas, 2015). Team leadership approach has positively impacted business operations since the company highly adheres to the teamwork value. The model is related to the current business practices because it offers the leaders and the members of the designed working team with a more strategic guideline that is useful in establishing any existing issues within the team as well as offers suggestions on the best options that can be adopted for efficiency to be obtained (Thomas, 2015). The model is centered on achieving effectiveness something that the firm is seeking to acquire so that its performance and productivity can increase gradually. If any existence of conflict the model is utilized in setting guidelines as well as clarifying goals in general. Based on its use it plays a crucial role in determining the general success and disappointment of any teams which in turn affects that of the company (Rainey, 2013).

Diversity in business both in the national and global environment is very essential. In that, it does not only help in the building of a positive image for the company but it helps in the development of skills and knowledge (Northouse, 2013). Diversity, in this case, refers to the general inclusion of a mixed workforce that accommodates all genders, culture, ages, and teamwork. In the business setting today it is not possible to achieve success without focusing on developing teams. In that teams helps in creating a more favorable environment and motivates the workers to strive to achieve greater (Northouse, 2013). High performance can be achieved through this aspects because they encourage the sharing of knowledge and the development of skills (Thomas, 2015). More so this leads to the reduction of confusion and boredom in the workplace since workers have the opportunity to interact. This positions the company at a more strategic position that is dominated by improved performance and efficiency.

To sum up, leadership is vital to the general success of any firm. Thus, organizational leaders both in the local and global setting are necessitated to act as the influential guide in the development of the production and general performance of the company through the utilization of inclusive preparation, organization, and control. This inspiration can be acquired from the most established companies that are successful in the global setting. Maintaining the lead requires the adoption of more strategic approaches. Diversity and teamwork are highly required in the work environment today in improving performance.

References

Rainey, D. L. (2013). The pursuit of sustainable leadership: Becoming a successful strategic leader through principles, perspectives, and professional development. Charlotte, NC: Information Age Pub.

Thomas, K. D. (2015). Handbook of research on sustainable development and economics. IGI Global.

Northouse, P. G. (2013). Leadership: Theory and practice. Los Angeles: SAGE.

FoxMeyer Company

FoxMeyer was recognized as among the best five largest drug wholesalers with an annual sale of close to 5 billion US$ and a daily shipment of more than half a million items in the United States. The company mainly focused on health care services such as distributing a line of pharmaceuticals and health products including beauty related products to chain stores, hospitals, healthcare facilities and also the independent drug stores. The company also dealt with providing managed care and the information based care services to the healthcare centers, physicians, and pharmacies (Scott & Iris, p75).

Finally, the company dealt with conducting businesses such as franchising variety stores, the operation of the stores, and distribution in wholesale to the stores. In the United States, the company had at least 25 distribution centers located all around the country (Mertic, p1). The business was operated in mainly using two operational units such as the Ben Franklin Retail stores and FoxMeyer Corporation. Both of these companies had the obligation of franchising and wholesaling to the stores including offering information-based services and managed care services.

The business strategy for this company was having a mix of differentiation and cost leadership strategies. Differentiation strategy included providing services such as the computer services, focus on quality, maintaining the national and local responsive coverage and complementing the distribution activities with the current market programs (Scott & Iris, p75). Cost leadership strategies included automating the warehouse, manning the information management systems and managing the inventory through cost-cutting. Pharmaceuticals is basically one of the most influential and dynamic type of an industry in the United States which contributes to the economy in a huge way. This is due to the reason that the United States has become a medically advanced country, therefore, the prescribed drugs bring in a huge profit for the country. Over the last twenty years, the industry has continued to grow to greater levels through mergers and acquisition in the industry (Conteh & Jalil, p122). FoxMeyer was one of the best companies which had distribution center all across the United States, therefore, taking in a huge profit. However, FoxMeyer faced fierce competition from other players in the industry of manufacturers and distributors as well as from the mail order and other self-warehousing chains.

With the main goal of having technology in order to have the efficiency improved, the company began a Delta III project in the year 1993. FoxMeyer did a research and made an SAP R/3 purchase in December of 1993. The company also made a purchase of the warehouse automation called pinnacle from a vendor and gave a consulting firm by the name Andersen to integrate both of these systems. The implementation process took a period of two years. The failure according to the chief officers was not as a result of automation but was a management issue. A trustee from FoxMeyer sued SAP who was the ERP vendor for at least $500 million including the consulting firms due to not honoring their deal of implementing the projects successfully (Samara, p123). There are many reasons as to why enterprise resource planning (ERP) at FoxMeyer failed to range from the management issue to the high level of expectations of the company.

Project risks included scope and requirements, customer mandate, environment and the execution process. Customer specifications usually rely on the dedication from both the executive and the user of the program (Alami, p7). The administration at FoxMeyer was on point but the users were not dedicated to the program since it presented itself as a way of rendering them jobless. The scope of the project was also a challenge since the integrated system could process at least over 420 000 transactions compared to the newly implemented system in the university health center where only 10 000 transactions could take place. The execution process was also a challenge since it required the trained personnel’s to deal with the program which was scarce at FoxMeyer. FoxMeyer did not have the capacity to handle the project and so contracting another company was the solution which was very expensive (Samara, p101). The integration of the ERP and automated services offered by pinnacle was very challenging and could only be done by at least 50 other consultants at FoxMeyer which also added to the cost while generating no returns. Project management at FoxMeyer was very little and at times it was reduced to zero making the environment very challenging for the system integration.

FoxMeyer had initially thought of the project being in big trouble but due to the consulting firms and the vendor’s lack of transparency, the control of the project went into unexpected difficult situations preventing it from being a success (Conteh & Jalil, p120). The main players for the project to fail in this case are the users and the implementation team which never gave clear directions with regards to the success of the system. For the case of users, each project undertaken by the company for the benefit of increasing the market capacity and reducing delays sent a wrong message to the users. Each user who felt the need to make the project a success could have done it but feared for their job position being overtaken by the system.

The issue at FoxMeyer could have been de-escalated by having the objectives and goals very clear before undertaking on the implementation process. However, the goals at FoxMeyer were clear but lacked the back up from a knowledgeable source on how to deal with the upcoming issues. Before the commencement of the projects, FoxMeyer should have also anticipated the challenges such as user illiteracy and how well will the project be accepted by the users (Mähring et al., p462). A prior employee training could have made the project very successful since it would have eliminated lack of trust and rejection after costing billions of dollars for purchase and implementation. Also, FoxMeyer could have avoided going bankrupt after the project being unsuccessful for the many times. There were a number of unsuccessful processes which lead to the company hiring more than 50 consulting firms who only brought in extra costs rather than offer a solution to the menace.

The Chief Executive officer could have avoided the company from going down at such a high level through handling the project with caution and testing it for errors such as the failure during the implementation stage. Every person including the users of the system was part of the program that could have brought a success to FoxMeyer but the CEO did not put that idea into consideration. Stakeholders in an implementation process include the end users and it was important for the management to consider such while undertaking on the project (Scott & Iris, p78). For a big company such as FoxMeyer to run a project which was not even tested and which was to cost such huge amounts of money was a reckless move that could have been avoided.

In relation to the week 1 and 2 discussions, project management is very crucial for any organization that wants to the role in a process. In many cases, project managers are supposed to offer technical support for the success of the project. Considering the case of FoxMeyer, it is evident to indicate that the project lacked the management and therefore making it be a total failure within a period of fewer than two years. With relevance from the discussion, project managers should always look out for ways in which any project will be successful without increasing the cost of service (New York University, p15). There are various contributing factors to the success of a project which include but not limited to scope optimization, skilled resources, focusing on execution and having the tools and infrastructure ready for use. Requirement traceability is very important for an Information technology related project. The specific requirements for initiation and planning must be present to make the project a success. Updating of the requirements at each stage is vital since it lays the foundation on which the project will be executed successfully.

Updates such as cost and the risks involved need to be determined and also the key stakeholders of the project must also be identified (New York University, p9). Work breakdown in every stage is also important to ensure that all processes are done with the required energy and right specifications. This breakdown must happen at every stage of project plan development in an organization. The development of every project starts from the initiation stage until the close or final stage of completion. Planning, execution, controlling and monitoring are vital processes which FoxMeyer lacked. The company ignored all the processes and trusted the consulting firms with the task of managing its business which leads to the bankruptcy of FoxMeyer.

Works cited

Alami, Adam. "Why do Projects Fail?." PM World Journal 5 (2016): 1-9.

Conteh, Nabie Y., and M. Jalil Akhtar. "Implementation challenges of an enterprise system and its advantages over legacy systems." International Journal on Computer Science and Engineering 7.11 (2015): 120.

Ganesh, L., and Arpita Mehta. "Understanding Cloud Based ERP Implementation in Light of Conventional ERP Implementation at Indian SMEs: A Case Study." (2016).

Mähring, Magnus, et al. "Making IT project de-escalation happen: An exploration into key roles." Journal of the Association for Information Systems 9.8 (2008): 462.

Mertic, John. On FoxMeyer, and why forcing a “big bang solution” can kill your business. (2013). Retrieved from: https://www.sugarcrm.com/blog/2013/03/28/on-foxmeyer-and-why-forcing-a-big-bang-solution-can-kill-your-business/

New York University, Applying Project Management Principles in IT. (2017). Week 1 and 2.  

Samara, Tarek. ERP and Information Systems: Integration Or Disintegration. John Wiley & Sons, 2015.

Scott, J. E. The FoxMeyer Drugs’ Bankruptcy: Was it a Failure of ERP?. (2009). Retrieved from: https://www.slideshare.net/jmramireza/the-foxmeyer-drugs-bankruptcy-was-it-a-failure-of-erp-2332065

Scott, Judy E., and Iris Vessey. "Managing risks in enterprise systems implementations." Communications of the ACM 45.4 (2002): 74-81.