CISCO IMPLEMENTING ERP

Abstract

This paper discusses the implementation of a new ERP system in Cisco Inc to replace system that failed to offer the required redundancy, maintainability and reliability. A background is provided on the various issues that necessitated the replacement of the process and the failures in the current system. It highlights the selection process for a vendor and consultant for the new system. The various issues addressed include the team composition, work structure and budgeting and scheduling as important tools .various assumptions and lessons learnt in the paper are also highlighted.

Back ground

The foundation of Cisco Inc was laid in 1984, and the firm was traded publicly in 1990. By 1993 , Cisco was supported by a software package based on UNIX in carrying out its major tasks  in processing of transaction. This package offered support for key functional areas in the firm including manufacturing, financing and Order entry. Pete Solvik joined the company at this time and after assessing the present software package based on UNIX that was in use, he found it inadequate in terms of providing the needed redundancy, reliability and maintainability level so as to be at par with the prevailing business trends (Austin, Nolan & Cotteleer, 2002). At this time, even upgrading of the present software vendor was not enough to support the changing needs of the business. The structure of management process provided that every functional unit of the organization decides on its own the future of IT systems they would use. Every department’s IT representatives were to report costs to Slovik whose management structure for the departments remained strict. Band –aiding the present system for every head of department was never going to be enough in keeping up with the rapid rate of growth in the firm. It was difficult for any person to present a costly and time consuming proposal that would replace legacy systems to the board (Austin et. al 2002).

Failure in existing system

The initial attempt would be to avoid ERP just as Solvik did, due to length time and large expenditures required for implementation project. Moreover, every department is presented as being independent of others, and this goes against organizational structure that ERP supports. This explains the plan to allow every functional unit in Cisco to decide on its own the software application they would use. The requirement was that all functional units have to utilize the same database and architecture to ensure standardization was maintained within the firm. There were limited changes in software support system at the firm in the following year since no department was able to adopt an updated package but existing systems were fixed and these somehow ensured continuous operations. There was to be a total failure in the legacy environment for Cisco and the resulting challenge could not be ignored further. The resulting shut-down of the firm led to the conclusion that autonomy in system replacement in the system was being used for every functional area was no longer successful.

Implementation of a new ERP system

At this point , the need for arresting the situation arises and which requires the adopting a single integrated system for replacing the applications at Cisco rather than  using much time attempting to integrate different projects across separate functional areas. This involves forming a team that would look into the best replacement to the existing support system of the software. There are various aspects that can determine how the new system would be implemented and these comprises of low customization, less time and high priority. There are various options for doing this; acquiring one ERP system but the purchase would be expensive , its implementation process would time consuming and would results to replacement of autonomous structure for all the departments; an upgrade on the current  system that would no longer support Cisco in its current size and form. The need for a large system that could accommodate the increasing needs of the company leads to option of sourcing for ERP as a single system for the entire firm.

Selection of vendor and consultant plan

The consultant of the project implementation is KPMG that has agreed to provide the consulting services needed in terms of business knowledge and technical skills. The role of the consultant is to provide a manager for program implementation and other team members who will provide the necessary knowledge for evaluation of the various software packages in the market. Oracle is chosen as the right vendor due to their capability in manufacturing, their close location and the potential for developing long-term functionality and their desires to bring success in Cisco project. As their first attempt in implementation of Oracle ERP and hence the vendor showed high motivation in ensuring that whole project is a success. They had to prove that their product contained the necessary improvements to support the growing needs in Cisco. The contract had to reflect the vendor’s commitment through assuring their capabilities.

 What is needed in this scenario is not just a software package but software that sows improvements in transaction process of the firm, ability to provide redundancy and enhanced manufacturing capability. Oracle’s commitment is supported by the opportunity to market this new software in the market on the platform of Cisco success in the various transactional processes. Implementation process is a very essential phase of project management since it determines how valuable this product to be adopted in the firm will function in regard to addressing the needs of the organization. As such, all parties involved in the implementation of the project have to commit to offering their best effort in its success, so that the large amount of resources allocated in the budgetary process can be justifiable (Happy, 2010). The failure of the project is likely to stem from this stage if the parties involved do not share similar enthusiasm and motivation to see the whole process attain the desired objectives or goal (Collins, 2010).

Techniques in the implementation process

Team recruitment plan

Implementation of a companywide system that would serve the growing needs requires a lot of engagement of business people in the firm and individuals from the IT section. The policy on team selection includes experts from the two departments and most competent individuals from each department in the organization that are to be included in the team for ERP implementation. Inclusion of competent and experienced people from every department is a key success factor in the implementation process. Another important aspect is the involvement of a consulting partner who can assist in the whole implementation process. Such a consultant can provide the required assistance to Cisco in selecting the appropriate vendor for ERP. The partner should agree to offer the necessary support in terms of technical skills, experience and expertise in business knowledge. The partner should also be willing to provide the needed expert resources that are required in the completion of a project of this magnitude in shortest time possible. The partnering firm is therefore expected to have a competent program implementation manager who will provide the relevant leadership to the firm. Leadership is a necessary factor in the success of project management since it provides direction and control for the various activities that are involved in planning and implementation phases of a project (Collins, 2010).

Work structure

The members of the team to be involved in the implementation process will be 90 members who will carry out the actual process of implementation. The members involve those individuals who are considered the best across the entire business community of Cisco to represent their respective departments in functional units. This involved a policy of the company which outlined that for those people working in this process, there was is need for changing their career or line of work since the project would be short-term. The structure involves splitting of team members into five smaller teams to work in specified process areas. Each of such areas relates to the main functional areas including manufacturing, financing , order entry, technology and reporting. Every group comprised of a leader from information systems of the company, IT and business consultants from the Oracle and KPMG as partners, business leader for the company and employees from the company as members of the team. The management of the various groups is done from one office that consists of consultant’s project manager and project manager from the company. An established steering committee is tasked with monitoring the entire management team and comprises of the Cisco executives and an executive from the partner. The approach of using a steering committee is aimed at relieving the team involved in development of the need to engage directly in the implementation process.

Budgeting and scheduling plan

The budgeting process as a technique involves the forecasting and quantifying the action plan to itemize the various expenses or expenditures that will be allocated in this project. The budgeting will be used as a tool that will compare the budget results as set standard or target as compared to the actual results so as to note any variances from the plan of the project. The process will go through regular intervals in the whole project with an aim of taking control measures and aligning the actual results with the laid down plan in the implementation of ERP system. The budget will be necessary for authorization of expenditures, communication of objectives of ERP system and controlling various operations while the system is being implemented. From the beginning, the aim is to get the backing if the whole company for the budget to ensure that the budgetary requirements for the implementation are met. This is a large undertaking that involves a single system that will serve the needs of the entire firm, and the decisiveness of the leaders in various departments is very necessary. This is in consideration of the management’s concern with the amount of time the project would use and cost involved. A project of this magnitude requires large amount of resources, can easily spin out of control and at the end provide substandard results to the stakeholders. The technique for utilizing the budgetary tool will involve having all the departments commit the necessary resources to this project. The approach does not involve formally providing justification for the amount of costs to be incurred. Rather it involves institutionalizing the entire business model for all departments in the company. Being among the largest project to be allocated large amount of resources, the approach would work if the approval of all involved departments is achieved.

Timeline

The selection of consultant and the vendor and the presentation of the budget for approval are to take around 20 days. The timeline for the process is informed by the fact that the ERP system is large and has to be implemented within a short period, which includes the ability for it to adapt and even grow at the same time with Cisco business. The decisiveness of what is wanted of the project helped into setting the time for the selection process to be short. The various activities in the implementation process were to take place within the stipulated time so that to avoid any variance in terms of costs, which is likely to arise from the additional, labor costs and other related expenses. To ensure that the cost does exceed the limits established in the budgetary tool, the timeline for the implantation of the entire project has to be adhered to. In addition, the team members have to be introduced to the implementation approaches within with the 20 days to the project so that can become acquainted with their tasks and how they are to accomplish them. This is an important step in the implementation process since all the team members will play a key role in the implementation of the process and hence, have to be aware of the strategies to be used. In addition, a two week period was set for the purpose of training the whole team involved in the implementation of the system.

Training requirements

The success of implantation process is will be determined by the competences of the personnel of the company who will use it in daily operations. Therefore, the training of the users will have to be done right before the implementation as specified in the training plan. This approach ensures that there is a reduction of any chance that there will be unnecessary rushing of the training. The training requires setting up of the implementation’s technical environment. The training process involves taking the team members through 2 days thorough training on the ERP and employing them to analyze the system. The training will have to include instilling risk management skills so that team members can manage any arising risks. A user-centric strategy in training is, therefore, needed for the project to be successful.

Assumptions

 The various assumptions in the implementation process is that consultant and vendor will be true to the agreement in the contract and that the whole team in Cisco will be receptive of the new system.  Moreover, it’s assumed that the entire project will be completed at the expected cost and timeline.

Lessons learnt

The success of a project especially in the implantation stage can be attributed to various factors that, when fall into place, the process is duly completed. These factors include timing and access to the required resources. It is important for the project manager to seek the support of all the individuals in the organization whose tasks will be affected by the implementation of the project (Happy, 2010). The establishment of a strong relationship between various teams and the availability of required resources together with training result to a good timing.

References

Happy, R. (2010). Project 2010 Project Management: Real World Skills for Certification and Beyond (Exam 70-178). John Wiley & Sons.

Collins, M. J. (2010). Pro project management with SharePoint 2010. Berkeley, Calif.: Apress.7-15

Austin, R. D., Nolan, R. L., & Cotteleer, M. J. (2002). Cisco Systems, Inc: Implementing ERP. Boston: Harvard Business School.

An outcome assessment of bass pro shops

The goal of Bass Pro Shops involves being a leading provider of outdoor recreational items while at the same time inspiring individuals to love and enjoy outdoor activities and embark on conservation efforts. The goal focuses on customers and the locations of Bass Pro Shops are aimed at offering a real destination experience for customers (Bass Pro Shops, n.d). The company has adopted various strategies in order to draw as many customers as possible to the online platform and therefore drive its growth and development. In addition, every location is normally customized so as to shows the character of that specific region. The firms has managed  to become an outdoor gear supplier for all those people who like golfing, hunting, fishing and even golfing. It has opened 94 retail stores across United States and Canadian markets. In fact, the location of the initial store has been able to attract more than 4 million visitors annually and is currently the top attraction of tourists in Missouri State (Forbes, 2017).

This depicts a good marketing strategy focused on customer satisfaction and experience as the major driver in growth and success of the company. The firm has been managed to engage customers by focusing on aligning to customer values and needs which has led to success of the marketing strategy. It is based on the strong belief in the company that the industry’s future is more dependent on the conservation efforts and management of natural resources.  The firm has therefore, engaged customers in protection of   wildlife and their habitat, linking families to outdoors and protecting their rights (Bass Pro Shops, n.d). This goes a long way in linking with the customers’ desires and expectations while engaging in outdoor activities. Organizations need to constantly direct their attention to the needs of the customers so as to achieve their set goals through serving the interest of customers in the market. A customer focus strategy contributes a lot to the general success of any business and involves making sure that all the actions undertake places customer satisfaction at the forefront (Arun & Meenakshi, 2011).

 Apart from aligning to environmentally sensitive customers, the firm has addressed the various needs of outdoor loving customers by providing products such as fishermen boats. To ensure constant satisfaction of customers even in future, the firm has sponsored various events every year to help children in catching fish, and this fosters a generation sensitive to outdoor stewardship. Pegging the operations of the firm with customer-focused leisure activities, the firm has been able to sustain growth in market share in tourism industry. Another strategy that has been adopted by the firm involves acquisition of Cabela, with an aim of maximizing value which has been considered the best path for customers and shareholders. This acquisition involves combining two brands that are premier in the industry of outdoor-sporting products. Bass Pro management can bet on various benefits of this acquisition, including strengthening the company’s market position in an industry that is highly fragmented. By 2016, the firm was able to report revenue of $7.5 billion which shows a strong performance and the new transaction is poised to enable the combination of scale that has the potential to lead to large savings on costs and even revenue synergies in the future (Moody's Investors Service, 2017). The outcome of such strategies indicates a continuous growth in the performance.

Reference

Arun, K., & Meenakshi, N. (2011). Marketing management. Noida: Vikas Publishing House.6-9

Marketing Plan

Executive Summary

The star Mobile Gamer Corporation develops mobile games that are associated with the contemporary trends. The company is in its first year of operation. The prime issue facing Star Mobile Gamer is based on how profits can be increased strategically while making proper use of the available resources to create consumer satisfaction. This marketing plan is an illustration of the company’s market segments and strategies that are being applied in acquiring consumers in developing a solid revenue background. The company is not just a developer of trendy mobile games given that its unique commitment to developing games with a trendy twist offers it a probable advantage over the rivals by providing consumers with a fresh outlet for enjoying technological games. This fills the existing market gap and also expands the company’s reach to those that are not interested in mobile games yet they are overwhelmed by the side-splitting strategy that the company uses. The evaluation of the corporation’s inner and outside strengths and faintness serves as the strategic foundation for the marketing analysis and plan.  This plan is focused on the corporation’s growth strategy and recommending ways through which sustainable consumer relationships can be built as well as new product and services development targeted to a particular consumer segment.

Market Analysis: Marketing Environment Analysis

Competitive Factors

The general competition in the gaming industry is particularly high both on regional as well as local grounds but weak in the national level. However, the mobile gaming sector is growing rapidly based on mobile availability and the fact that close to all the young individuals owns a mobile device that has the capability of handling mobile applications (Ferrell & Hartline, 2011). The corporation has the potential of being competitive given that it does not only focus on mobile games but those that feature trendy activities from the contemporary society which makes it a differentiated one (Ferrell & Hartline, 2011). However, with the popularity growth of mobile gaming, it is expected that competition will grow further thus creating the need for strategic positioning.

Economic factors

On the global and national ground, most corporations have lowered their general marketing expenses based on the increasing need to lower operating costs.  However, the achievement of this has mainly been facilitated by the general growth of the zero or minimal cost in relation to social media advertisement (Ferrell & Hartline, 2011). While the marketing costs are being reduced however most corporation is turning the larger portion of their budgets towards sales and specialty marketing. Based on the slow and faulty economic forces most corporations are expected to continue with the trend by focusing more on value creation.

Political factors

Based on the operation of the gaming industry political factors are unlikely to affect the operation of the corporation. However, government regulation and policies that regulate the provision of this games are more likely to affect the general adoption of gaming particularly to the youths (Lamb, Hair & McDaniel, 2013). Political crises are the prime events that have the highest potential of affecting the Star Mobile Gamers Company’s operations.

Legal factors

In the most recent years, governmental regulatory are forced on ensuring that gaming that can harm the wellness of the public and particularly the unsuspecting youth and teenagers are curb. This is on the grounds that gaming has been linked to contributing to the rise of violent and undesirable behaviors with poor social as well as academic performances (Ferrell & Hartline, 2011). However, the company is different given that it only focuses on the trending events that holds positivity and that holds a comic touch rather than being destructive (Lamb, Hair & McDaniel, 2013). Thus while some legislation policies may be placed in curbing or controlling the tide of gaming that is delivered via both computer and mobile application the fact that the company is focused on trendiness is an indication that the company will not be affected by the increased legislation regulation.

Technology forces

The prime emerging technological trend incorporates the use of mobile devices in accessing innovative application that offers some kind of entertainment. In addition, to the use of social sites by most individual’s mobile use is the most growing trend (Lamb, Hair & McDaniel, 2013). The company will acquire maximum gains from the use of the social media sites in creating awareness among the public and increasing familiarity and curiosity towards the use of the applications. Contrary to the use of media and print marketing the technological social sites have created the general capability of operating at reduced costs based on the low advertisement cost (Lamb, Hair & McDaniel, 2013). In addition, the sites have the capability of reaching even a wider group within the lowest period.

Sociocultural Factors

In today’s contemporary society individuals have limited time for leisure based on the growing academic and economic participation need. In this context, the primary products or services success aspect lies in affordability, flexibility, usage ease as well as convenience (Lee, 2016). In other words, if the products that are being offered fails to save money and time and are not easy to utilize without necessitating the application of skills or particular knowledge then they consumers are bound to ignore and switch to other products. In this context, the trendy mobile games suit the preferences of the consumers adequately on the context that they are affordable, convenient, flexible, easy to utilize and very entertaining which is of essence in relieving the daily economic and academic stresses (Lee, 2016). In addition, the products fit with different societal trends in that it is a major shift towards an entertaining society as well as the increasing dependence on technological mobile and computer based products.

Target market

The company’s ideal consumers are aged between 13 up to 35 who own mobile devices that permit downloads application and those that enjoy video gaming. The group was mainly selected based on its ability and will to try technologically based products based on curiosity as well as contemporary pressure. The market segment is highly exposed to income as well as the required devices for their participation (Lee, 2016).

Market Definition and Segmentation

The company’s main targets are two different segments which are comprised of game users as well as corporations that require the application and development knowledge for both of the segments the consumers have both mobile as well as computer understanding and enjoys innovative and trendy experiences.

Mobile Game Consumers

There are two differing consumers that describe the mobile gaming demographic which are teens which incorporate the pre-tees and youths.  For the objective of the marketing plan the segment of the youth will incorporate individuals aged 18 and beyond given that they are the most involved in technological products use based on statistics. The company offers both free and paid games. The free version offers a taste of affordability and trendy without any cost commitment while some features are disabled to advertise the running of the subscription version.  The paid version is comprised of more aspects.

Marketing Objectives

Star Mobile Gamers corporation is the business that seeks to create an amusing surrounding for the consumers by offering convenient and affordable services. Besides the need to formulate a consumer and a market oriented mission the company seeks on increasing its products sales and revenue rise by at least 15 percent each year for a period of three years so that it can acquire stability. There is a need to increase sales on the grounds that in sustaining an effective business without any operative debts there is a need to attain financial stability which can best be acquired via increased sales and maximization of profits (Lee, 2016).

SWOT Analysis

Strength

The strengths of an organization are defined as the competitive competencies that offers a corporation the advantage of meeting the needs of its consumers (Pride & Ferrell, 2014). To begin with, Star Mobile Gamers differentiation approach is generated by having a strong market oriented base, quality commitment, innovation and services and products differentiation. In addition for a corporation that has a good reputation employee’s turnover rate is usually minimal. Given that it is an innovative corporation that is focused on creativity and targets the young generation it holds a great potential of acquiring a significant consumer segment based on low competition in the trendy gaming industry.

Weaknesses

The primary weaknesses possessed by the corporation is that it holds fewer employees and limited operative funds as well as resources.  Having less individual’s results in the reduction of knowledge as well as creativity that is required in sustaining the quality experiences and innovative held by the corporation. Creativity is of essence to this corporation given that it is something that the organization depends upon. In addition, the company’s products despite the fact that they are highly differentiated they lack diversity and the dependence rate on the broader target may result in the invitation of more competition that may lower the satisfaction rate. The small sized corporation hinders both development and the creation and expansion of fresh business opportunities (Pride & Ferrell, 2014).

Opportunities

The gaming industry is readily developing and consumers are highly aware of its innovative nature and the associated benefits (Shankar & Carpenter, 2012). The gaming industry generates more than a hundred million every year and it is anticipated that the market will experience a growth rate of about 10 percent in the next year. Therefore the company has a significant potential growth within the market. In addition, gaming has not just be adopted highly on the grounds of entertainment but it has generated undoubted technological efficiency and innovation development despite the growing economic stress. Personal mobile devices have grown to be very common and the popularity has been gained by almost all the mobile devices users (Shankar & Carpenter, 2012). Moreover, business globalization generates the opportunity of establishing fresh relations with consumers and partners from the international markets which will bring about expansion, increased sales as well as revenue.

Threats

Gaming is generic products in particular that need to embrace the increasing changes in the market. The knowledge, skills, and technology that is necessitated in the production of this item and even those that are mobile based are currently low at the corporation. Thus the possible engagement of fresh competitors which is high can be accounted as a significant threat. In addition, application development is exposed to theft as well as privacy threats via the unauthorized imitation which can be challenging to control. Competition is an additional threat that cannot be ignored given that the market is saturated and more companies are focusing on differentiation thus providing more options to the consumers. This might not only affect sales but also increase the operative expenses based on the need to venture on intense advertising (Shankar & Carpenter, 2012).

Positioning/Competitive Position Strategy

Star Mobile Gamers will position itself as an affordable, quality and consumer needs oriented corporation that operates on an innovative and efficient system that seeks to meet the needs of consumers. This posting will seek to acquire a competitive positioning. In addition to the use of a cost leading approach, the corporation will also seek to pursue differentiation in creating unique products and user experiences to the consumers. in that rather than focusing on gaming the corporation is mainly focused on the provision of trendy events gaming that might incorporate latest news trends, political, fashion and current events. This will create easiness in penetrating the market at ease as compared to the competitors.

Currently, there are numerous game developers thus the rivalry cannot be ignored and thus the company focuses on being different by offering innovative, quality as well as affordable products that meet the needs of the consumers (Shankar & Carpenter, 2012). Despite the many gaming corporations, there are however few are real in terms of acquiring maximum revenue and sustaining operations in the market in the long run. Most of these games are developed by individuals with low practicality in regards to how the games can be integrated with the changing needs and preferences in achieving organizational success (Stasch, 2010). The corporation’s shift to the trendy gaming is of significant advantage given that the competitors will not be able to switch to this operation easily as their changing might be highly expense which might affect its operations. In addition, the company will not be forced to spend more time trying to create and generate ideas for basing the games given that every day’s events and trendy news will offer a folder for a venture. In addition, the fact that the corporation is grounded on developing applications based on real events will trigger individual’s curiosity to using the products. 

Marketing Mix

Products

Star Mobile Gamers marketing incorporates the mobile games products as well as its competitors in the development of innovative, convenient and flexible games to its consumers. In the market, consumers are not just seeking for quality and innovation but also affordability is a primary impacting feature which will be accounted as well. The intangible attributes possessed by Star Mobile are its general capability to meet the required and surpass the general expectations by consumers in a consistent nature. In addition, the company’s speed, flexibility to respond to the demands made by consumers as well as the expectation to grow its market by adding more consumer’s fresh needs is an addition intangible capability. The intangible capabilities are usually challenging for the rivals to imitate thus offering Star Mobile Games a more enhanced competitive advantage (Stasch, 2010).

Price

Star mobile offers a higher quality gaming products as well as development services based on the preferences as well as needs of the consumer’s. The general products and development services value is reflected its customized affordable prices that are particularly lower as compared to what is being offered by rivals. The company is however sensitive in regard to the elasticity of prices and the changing consumer demands that might affect its sales and revenue generation thus focusing on low operating expenses. In addition, the affordable prices have been developed due to the need of attracting a larger consumer base that will facilitate even higher development. The consumers are highly sensitive to both qualities as well as prices thus raising the need for affordable pricing (Stasch, 2010).

Place

Star Mobile Gamers Corporation utilizes a rather direct marketing approach. This is because their services and products are lightweight, not fragile, compacted and nontangible. This does not, therefore, involve any form of shipping rather the consumers can access the products directly from the respective mobile applications servers such as the Play Store and Apple Store. In addition to the consulting companies, these services or the necessary products can be bought directly from the corporation which will be transferred to the servers directly and also installed for the immediate uses.

Promotion

The corporation will be utilizing several marketing approaches which will incorporate advertising, sales promotion, as well as public relation. These strategies are mainly objected at creating awareness of the company’s production and what it offers and the benefits of utilizing its products rather than those being offered by the competitors. The advertisement is the primary marketing strategy that the corporation will utilize. This will incorporate both media as well as social media marketing to lower the involved cost. In that, through the utilization of social media promotion, there will be minimal or even zero cost that is utilized and posts can be posted on regular basis to ensure that the consumers understand the general uses and products being offered (Valentin, 2014). For the corporation, the most important marketing aspect is market positioning. In that, the company needs to acquire a leading position in reference to acquiring the largest market segment in the sector.

The sales promotion will mainly be grounded on the paid games where those that acquire the products will have the opportunity of acquiring, even more, gaming features. The corporation is primarily targeting young individuals and therefore promotions are necessary for triggering their will to purchase and utilize the products. In addition, regular consumers will earn points that will be utilized in securing additional features that are more entertaining. Public relation mainly focuses on awareness creation, creating a desirable reputation, as well as familiarity with the products, use to create convenience as well as ease of use (Viardot, 2004).

Conclusion

Star Mobile Gamer is a young corporation with very objective aspirations. Based on its young nature in the market there is a need to creating awareness through effective marketing approaches so that the consumers can understand the affordability, convenience, innovation, entertainment and uniqueness of the company’s products. In order to attain a competitive edge in the highly competitive market differentiation in cost and product development is of essence in creating uniqueness. On the other hand, the corporation will seek on conducting its marketing promotion mainly through advertisements that will reach more individuals at lower costs. The company has the potential of performing well on the ground that it is innovative and highly differentiated from all gaming corporations. The increasing adoption of mobile devices offers the opportunity of acquiring success and consistent growth.

References

Ferrell, O. C., & Hartline, M. D. (2011). Marketing strategy. Australia: South-Western Cengage Learning.

Lamb, C. W., Hair, J. F., & McDaniel, C. (2013). Marketing. Mason, OH: South-Western/Cengage Learning.

Lee, I. (2016). Encyclopedia of e-commerce development, implementation, and management. Hershey: Business Science Reference.

Pride, W. M., & Ferrell, O. C. (2014). Marketing. Australia: South-Western Cengage Learning.

Shankar, V., & Carpenter, G. S. (2012). Handbook of marketing strategy. Cheltenham, UK: Edward Elgar Pub.

Stasch, S. F. (2010). Creating a successful marketing strategy for your small new business. Santa Barbara, Calif: Praeger.

Valentin, E. K. (2014). Business planning and market strategy. Sage Publication.

Viardot, E. (2004). Successful Marketing Strategies for High-Tech Firms. Norwood: Artech House.

Strategic management

Business -level strategy refers to various actions and commitment that are coordinated and integrated and which gives competitive advantage to an organization through exploitation of core competences in the markets of a particular product. It involves the choices made by the organization which are mostly difficult and can be very upsetting (Hitt, Ireland & Hoskisson, 2017).

There are various kinds of business-level strategies and include: Cost leadership strategy – this refers to various actions that a firm takes in production of goods and services while considering features that customers will accept at least possible cost in relation to those offered by competitors (Hitt, Ireland & Hoskisson, 2017).

Differentiation strategy – involves the incorporated actions set that a organization takes in providing products that can be seen by the customer as being exceptional in way that they need. It involves targeting those customers who view value in the product or service as intended for them in way in which they are unique from others provided by competitors (Hitt, Ireland & Hoskisson, 2017).

Focused strategies – refers to the business approaches undertaken by firm where it intends to utilize their core competencies in serving the needs of a specific niche or segment of an industry while excluding others. Such specific markets may include a given buyer group, product line segment or geographical market. The strategy is thus incorporated actions that a firm takes to produce products to satisfy the needs of a given competitive market. They include Focused Cost Leadership Strategy and Focused Differentiation strategy (Hitt, Ireland & Hoskisson, 2017).

Focused Cost leadership Strategy offering various products to a specific target segment, at low price since they are produced a low costs. Focused Differentiation Strategy is an approach where a firm differentiates products in various ways (Hitt, Ireland & Hoskisson, 2017).

Integrated Cost leadership or Differentiation Strategy refers to actions taken by the firm that allows them to carry out basic and support activities in such a way that they can achieve differentiation and low cost at the same time. This allows the firm to serve customers who desire to buy differentiated but low priced products (Hitt, Ireland & Hoskisson, 2017).

 Having a focus strategy means undertaking various actions with an aim of producing goods or services that will satisfy the needs of a specific competitive segment in the market. it involves serving the needs of that segment of the market or industry in way that the competitors will not and hence gaining an advantage (Hitt, Ireland & Hoskisson, 2017).

TQM – Total Quality Management refers to where an organization commits fully to serving its customers and continuously advancing every process using approaches meant for problem solving and that are data driven an whose foundation is employee team’s empowerment. The TQM systems are aimed at improved customer satisfaction, cost reduction, minimum time required in presenting innovative goods and services to the market. It involves exceeding the expectations of customers in regard to quality through differentiation and elimination of any inefficiency in the process thereby reducing cost and providing quality in the market (Hitt, Ireland & Hoskisson, 2017).

Multi-market competition- refers to where organizations are rivals in some geographic markets or products. An example of firms in a multi-market competition includes Delta and United Airlines (Hitt, Ireland & Hoskisson, 2017).

Competitive behavior is driven by awareness, motivation and ability and such influence is indicated by various actions and responses taken in the competitive rivalry.

Awareness – means the degree to which competing firms identify the extent of mutual interdependence which stems from resource similarity and commonality of the market. It is more visible where companies have same amounts and types of resources which they use in the midst of competition in various markets (Hitt, Ireland & Hoskisson, 2017).

Motivation – involves the incentive of a given organization to act or respond to the attack initiated by its rival, the likely gains and losses out of this competition. As such a business may lack motivation to compete with rivals if management thinks that such competition will not improve the firm’s position or change its position in the market (Hitt, Ireland & Hoskisson, 2017).

Ability refers to the resources of a firm and flexibility that stems from them. Lack of resources means that a firm cannot respond to various actions taken by a competitor or initiate an attack against the competitor (Hitt, Ireland & Hoskisson, 2017).

 A first mover refers to the business that initiates an action so that it gains or defends its competitive edge or enhances its place in the market.  Second mover refers to an business that reacts to competitive action taken by first mover basically through imitation .The first mover uses its resource to initiate an action while the second mover respond after observing customers reaction and  exploiting the mistakes made by first mover. The later mover refers to the firm whose response to the competitive action comes long after the action by first mover and reaction by second mover (Hitt, Ireland & Hoskisson, 2017).

Slow-cycle market is a market where the competitive edge of a firm cannot be imitated for a long term and where cost of imitation is high. Fast –cycle market is one where firm’s competitive edge can be imitated and such imitation is cheap and rapid (Hitt, Ireland & Hoskisson, 2017).

Synergy refers to advantage or value gained by using assets together than when their use is done separately (Hitt, Ireland & Hoskisson, 2017).

Economies of scope refers to costs created by a firm when capabilities and resources are used together or when core competence at corporate level  and which were built in of its business affiliate to another business affiliate (Hitt, Ireland & Hoskisson, 2017) .

Reference

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). Strategic management: Competitiveness & globalization: concepts and cases. Boston, MA: Cengage Learning.

Employment outlook accounting major in the next five years

Memo of Transmittal

Following thorough research, this project highlights aspects related to accounting employment outlook. The employment outlook for accounting has been projected to remain positive over the next five years driven by improving economy. This report highlighted the increasing need for accounting services in organizations and how accounting is affected by different factors

Due to constant change in market needs for accounting services, it’s recommended that accountants should constantly train and be ready to embrace new technological innovations applicable in this field.  

Executive summary

The employment outlook for accounting is positive for the next five years, since employment opportunities are expected to increase. The accounting role is perceived to be an important part of decision making process of any organization since budgeting, costing and financial reporting determines the performance. The various factors affecting accounting outlook includes; clients need for connectivity, accounting softwares development, automation in data and the general change in technological innovations. With expected growth in economy especially the U.S economy, there is the likelihood of growth in the overall job market for accounting over the next five years. Accounting has various strengths that include potential for growth and demand for accountants and some weaknesses that include constant need for training and monotony in work. The role of this project is to discuss accounting employment outlook in the next five years amidst changing job markets. The need for constant knowledge on technological advancement and how it affects accounting and changing workplace needs are issue in the project. Accountant should constantly train to improve their knowhow and get certification.

Introduction

The emerging trends in economy, business, science and technology and politics are changing the professional accountants’ landscape, with some of the trends having the whole profession and others certain specialist roles and areas. The degree of this impact and the anticipated results vary in various ways. As the global economy experiences these changes, and with growing optimism on economic recovery, the accounting profession has experiencing such changes and which comes in terms opportunities and the development of this profession. A keen look into the various developments in the industry implies that it is critical to adapt to the current market, and be ready to embrace the opportunities that arise.  This can be seen in the technological changes that have played a major role in changing accounting professional outlook. The various emerging drivers have had an impact on what is expected of accountancy, the value of existing and new interpersonal and technical competences in all the areas which comprises of corporate reporting, audit and assurance, financial management, tax, strategic performance and planning and the areas touching on governance, ethics and risks. This mean that accountants have to advance on their technical and interpersonal competences in order to meet the changing needs of the local and global markets and which must be addressed through accounting profession.

Work treatment of accounting

 The role and how it is perceived at the workplace depends in different factors and the how it influences the overall performance of an organization. A mark that distinguishes accountancy profession is how it accepts to performance responsibilities in the interest of the public. The professional accountant is not only expected to fulfill the employer’s work needs or that of a client but work in accordance with some laid down work ethics. The core responsibility placed on accountants is to prepare financial and economic information in a way that it is useful to management for planning and controlling the operations of the organization to achieve the desired standard (Acton, 2012). Hence, accounting is treated as an integral part of the overall decision making process in the organization and actualizing these decisions. Without accounting, it would be hard for businesses to determine it is faring in terms of profitability. It’s therefore viewed as a way in which an organization keeps its own score in the market.

Factors affect accounting outlook

In recent years, new technologies have emerged and changed all aspects of businesses and in this regard the accounting profession. Various factors have affected availability if job opportunities in the market and how various how accounting is viewed by the industry.  There are, therefore, various trends that have driven the changes in the industry and include; clients need for connectivity so that just like any other processes, accountants are expected to be able to connect with clients and other teams; automation in data entry is a major driving aspect in bookkeeping and accounting so that disappearance of manual data is requiring development of technical knowhow for the accountants; another factor influencing the outlook includes the growth of development of accounting softwares and  moving of accounting to online platforms which is requiring a high level of knowledge (Turner, Weickgenannt, & Copeland, 2017). The need for specialization is a major factor determining the outlook of the accountancy and so that businesses are only keen on paying those bookkeeping and accounting services that they need. These factors are determining the development of accounting field and even the requirement for accountants to gain knowledge so that they are absorbed in the market.

Employment outlook in accounting for the current years

Outlook for accounts and auditors

 With expected growth in economy especially the U.S economy, there is the likelihood of growth in the overall job market. The outlook of accounting professional jobs is major determined by technology that is enhancing productivity and automation, which the major factors are affecting the need for accounting skills. It is expected that an increase in job marketing for accountants including bookkeepers and auditing clerks will be experienced. In fact, by 2020 accounting occupations are expected to a high of about 2,150,000 jobs when compared to about 1,898,000 jobs that were available in 2010 (U.S. Bureau of Labor Statistics, n.d). This means that the outlook for accounting job is to be good for those individuals aspiring to be accountants and more so, those possessing industry-wide certification may be preferred to those who are not certified accountants. Accounting job opportunities will continue opening up over the next 10 years as per the data presented by US Bureau of Labour Statistics, and this will be because of increasing nature of concerns for corporate finance. The projections holds that employment opportunities for accountants including auditors is expected to increase by around 13 % for the 2012-2022 period, a growth which as fast as average for the other jobs in the market (U.S. Bureau of Labor Statistics, n.d).

The forecasts also indicate that the employment growth for these professionals is expected to be linked to the status of the economy since as the economy is expanding, accountants will be needed for preparation and examination of financial reports. Moreover, a lot of focus is being placed on accounting roles in reaction to various corporate scandals and financial crises in recent times. It is expected that stricter regulations and laws will be put in place, especially across the financial sectors and due to this demand for services provided by accountants and auditors as firms try to conform to such new standards.  Lending standards that are more stringent can be expected to increase and the importance of auditing services will be high, since this is a major way for firms to show their creditworthiness. Those accountants with professional certification especially CPAs (   Professional public Accountants) may have the best prospects of being absorbed into these jobs (Randstad Professionals 2016).

Many organizations will continue to employ those individuals who are highly qualified in accounting knowledge and have wide experience and those who are certified for the purpose of overseeing fiscal services. In addition, hiring accountants is being done increasingly on fixed term or temporary contracts, a trend that can also be observed in other occupations in the entire business sector. Businesses are taking stiff measures aimed at reducing staffing cost and employing people on the basis of fixed terms to help out in specific projects or temporary increment in workloads (NATIONAL ASSOCIATION OF COLLEGES AND EMPLOYER, 2015). The emphasis here is the need for accountants to maintain professional networks that are strong so that they to position themselves to embrace new emerging opportunities. The various sectors have show good signs for growth including the technology, finance, construction, property and banking after the economy experienced economic hardship in 2007-2008 period.

 The demand for accountants in these sectors has increased considerably and this trend is expected to continue in the near future as long as the sectors maintain this growth. However, as some sectors are experiencing growth, others are expected to stagnate and this may fail to offer great prospects for accountants and auditors in such sectors. Such cases can be seen in gas and oil extraction industry, where employers have been reporting lowest growth and outlook for those college graduates of 2016. Some firms in the industry have also experienced reduced growth with nearly 60 % and therefore, a decline in the level of employment for college graduates (Randstad Professionals 2016). This is not surprising given that lower gas and oil prices affect this industry directly. This shows that prospects for employment in these sectors are not expected to be high in the foreseeable future and accountants may not look to the industry as providing good employment opportunities. The data above data serves to indicate the positive impact of a strong economy on the future of accounting profession and how it is expected to provide opportunities for the accountancy professionals. As long as the economic outlook is bright in future, the accountants will continue to encounter employment opportunities in their field. However, the projections are not guarantee of how the future of accountancy will be but a reflection or description of what is to be expected under various circumstances and assumptions.  In case the assumptions in the market are not fully realized, it is expected that actual values will be different from employment projections. A major assumption is the equilibrium in the labor market, so that supply of labor will meet the needs in the same market apart from some frictional unemployment level (Randstad Professionals 2016).

Accounting’s strength and weakness

Accounting as a profession has its major strengths and various weaknesses that those who choose to pursue it as a career might encounter. To begin with, pursing accountancy as a career may be among the best ways of investing in one’s education. There is a potential for such a person to experience personal growth and development since the this field allows one to choose careers in various industries both in private and public sectors or even being self-employed. The various areas in the accountancy include auditing, bookkeeping and financial consultations in different sectors of the economy. Ones a person becomes a Certified Public Accountant, many opportunities open up for them and from there they can kick-start their career progression. There are many opportunities a job in accountancy with every firm needing the services of an accountant (Florida National University, 2015). Accountants play a vital role in ensuring that businesses are within set budget and no deviation from set cost limits.

 While it is not guaranteed that a person will find employment after graduation, demand for accounting and related services ranks quite high. Accounting is all about resource management, handling organization’s finances which make demand for such services to be high. Due to such demand, the accounting career path is quite clear which makes it a good choice for those interested. This is a major strength for accounting since one should pursue a profession that provides opportunities for growth and personal development both in employment self-employment. With a foundation of accounting skills and continuous education, a person has the options of practicing as an auditor, budget analyst, Tax accountant, CPA and even a payroll clerk (Florida National University, 2015). There are also opportunities for a person to advance towards managerial positions especially as financial planner and analysts in an organization.

Moreover, the range of payment for accountants is quite high due to the nature of this profession right from the beginning. In addition, anybody can do so well in this profession including women who may feel left out in other important professionals and actually, this profession is regarded as among the major professions where women can grow and earn well. Strength is that, in this profession, one can choose not to be employed but pursue their business interests.  As a professional, one may become an entrepreneur after obtaining enough experience and establishing a large network across various businesses in the market. It’s one of those professions that can be on its own, and whether one decides to provide specialized or consultation services, options are many relating to financial affairs.

However, there some weakness or cons that can be associated with accounting as a profession. Accounting can be said to be a dull and is considered among the less glamorous field that requires ongoing education, due to the nature of daily work that involves math and investigating. The nature of accounting is that one is not given much time to explore on their knowledge meaning that there is little room for innovation, which can explain why it is hard to hear of a prominent accountant. In addition, the work may be seasonal with much work being on the specific times of the year with deadlines. The responsibilities taken by an accountant have huge impact on the firm and this may come with stressful work environment (Ferguson, 2008). For any person, the monotony in accounting career would make the most weakness of this profession.

Accounting qualification

The qualifications required for an accountant includes education, training and certifications. It is required that an accountant possess the right academic knowledge on accounting, bookkeeping and auditing which helps in understanding of the basic principles. Technological knowledge especially on computer and accounting software is also important although such skills may be provided by the employer during work training (U.S. Bureau of Labor Statistics, n.d).one is required to have a Bachelor’s Degree in accounting or any other related area is  for many of accounting positions. Having a bachelor’s degree in related subjects provides a quick route to obtaining the right qualification with professional accounting body. This kind of qualification makes it possible for a person acquire chartered status that will show the employers that they have skills and training to carry out related tasks. It is also necessary for graduates to gain work experience through internship programs that will prepare them for the real work place in organizations. Such qualifications will be necessary in imparting the necessary knowledge to potential accountants and thereby fulfilling the education and training requirements for the profession.

Related accounting jobs

Accounting jobs are not only related to working alone in large organizations’ offices. There is a diverse range of jobs that are well paying and which are within the accounting filed. Other than tasks related to bookkeeping, majority of accountants can carry out tasks that are more complex like payroll reporting and auditing of fraud. They are also involved in preparing financial information and reporting on the same for business shareholders and the government institutions. Simply the work of accountants is to allow individuals and businesses in understanding and evaluation of financial expenditures and even profitability. The accounting profession is therefore tasked with ledge management and compilation of the accounts of a company. It simply involves the preparation of all books of an organization while making update on accounting records through daily computations. An accountant compiles the financial data, and prepares reports on such information in a manner that can be understood by the users including regulators. The accountant also prepares tax reports and assist owners in submitting their tax dues (U.S. Bureau of Labor Statistics, n.d).

Accountant certification

As aforementioned, certification is very vital for accountants in their career growth and development. It is an essential aspect that assists a person in differentiating himself at the market place and serves as an indicator to the employer that one has necessary skills required in performance of accounting tasks.  Some specific credentials have become quite desirable in the market and comprises of Certified Public Accountant, Certified Internal Auditor, Certified Management Accountant, Certified Information Systems Auditor and Chartered Accountant (Half, n.d). In coming years, firms are likely to place high value on certification as a way of differentiating high performing candidates. The overall impact will be advantageous to accountants since they will be provided with an opportunity to earn more and embrace many opportunities that may arise. This is because employers value such certifications and are in search of those individuals whose knowledge can be demonstrated in niche areas when they combine work experience, formal education and training acquired in the process of certification (Half, n.d).

 Conclusion                                                                                                                           

Accounting profession has undergone various changes that have been brought about by emerging trends in economy, business, science and technology and politics, which is transforming the practicing platform. These changes have changed what is expected of the accountants in the work place especially because of the constantly evolving needs of organizations and businesses. Accounting tasks and responsibilities are treated as very essential since through them, performance of the organizations is evaluated. It is projected that accounting employment opportunities will continue to increase in future and the certified professions are the likely to benefit more.

Recommendation

The changing market needs for accountancy including the technological advancement calls for constant training for any professionals. Those starting out on this profession should take time to research on what is required , what is needed to remain relevant during employment and undertaking certification courses to be competitive in the job market.

References

Turner, L., Weickgenannt, A., & Copeland, M. K. (2017). Accounting information systems: Controls and processes. 36-41

Randstad Professionals (2016) . Finance & accounting workplace trends guide. Retrieved from: http://experts.randstadusa.com/hubfs/Staffing/Talent/WPT_2016/PDFs/FA_C_WPT_Guide_2016.pdf?t=1498787552818

Bureau of Labor Statistics, U.S. Department of Labor, (n.d).Occupational employment projections to 2020. Retrieved from: https://www.bls.gov/opub/mlr/2012/01/art5full.pdf

Florida National University, (2015).Benefits of Becoming an Accountant. Retrieved from: http://www.fnu.edu/6-benefits-accountant/

NATIONAL ASSOCIATION OF COLLEGES AND EMPLOYER, (2015).Job Outlook 2016. Retrieved from: https://www.mccormick.northwestern.edu/career-development/documents/getting-started/job-search/NACE%20Job%20Outlook%202016.pdf

Half, R., (n.d).Guide to Certifications for Accounting, Finance and Operations Management. Retrieved from: https://www.accountingweb.com/sites/default/files/guide_to_certifications_robert_half.pdf

U.S. Bureau of Labor Statistics,(n.d).How to Become a Bookkeeping, Accounting, or Auditing Clerk. Retrieved from: https://www.bls.gov/ooh/office-and-administrative-support/bookkeeping-accounting-and-auditing-clerks.htm#tab-4

 Comparing Mercedes and McLaren engines

The main purpose of this report is to provide a detailed overview of the Mercedes type of an engine and the McLaren engines.  The McLaren engine can be considered as one of the oldest types of an engine in formula 1. Mercedes is also currently in the formula 1 chassis type of model. Both of these types of engines are highly regarded when it comes to engines with high power compatibility.

Introduction

1. Background
2. Historical overview

Mercedes is an international company of car manufacturing and a close division of a Germany group by the name Daimler AG. The brand is popularly known for its coaches, buses, trucks and mostly luxury vehicles and has its headquarters in Stuttgart. Mercedes had formerly competed in the racing known as the Grand Prix motor racing in the late 1930s and in this case silver arrows won the race with the formula 1 engine (Mercedes, 2016). McLaren is typically one of the oldest teams that are still active in F1 and has remained in the competition since the year 1966 up to date. This team was formed by Bruce McLaren, New Zealand racer, who died while doing a test of the Can-Am cares which gave the model the name McLaren in 1970 at Goodwood (McLaren Honda, 2016). Four years down the line, the team emerged the winners of the first world championship and the second time in 1976.

In the 1980s, the team lost to Ron Dennis but became the dominant force in after 1984 to the 1990s. McLaren split with Honda and joined forces with Mercedes in the 90s and this merge assisted them to win the 1998 and the 1999 championships. Later in 2014, McLaren split with Mercedes to join with Honda again since the split in 1992.

1. Statistics

Mercedes F1 AMG high-performance powertrains are one of the most successful types of F1 engines in the car racing which is designed and manufactured according to the direction of Aldo Costa, Paddy Lowe, and the Geoff Wills in order to compete for the 2015 F1 season. Mercedes performance over the years has been progressive especially due to its investments in research and development strategies. McLaren has also been progressive when it comes to its performance. McLaren has won several races while under the original McLaren engines before using the Mercedes model of engine.

Comparison

1. Engine
2. Capacity and weight

The minimum weight of Mercedes F1 is 145kgs, has a power unit perimeter which is composed of a control phase, Motor generator unit (kinetic), Turbocharger (TC), Motor generator unit (heat), Energy storage (ES) (Mercedes, 2016). McLaren M838T type of engine has a 90degree twin turbocharged engine which is a flat plane V8 3.8litre engine compared to the Mercedes which also has a 90 degree turbocharged but has 1.6liter capacity with 6 cylinders. According to this statistics, the McLaren is more powerful than the Mercedes engine. This similarly indicates that the models of the vehicles are totally different. The length of McLaren is at least 428cm and a width of 182cm, the height of 114cm and wheel base of 272cm, can accommodate only 2 people and has a curb weight of 1140kgs

1. Energy recovery system

Mercedes powertrains which were previously identified as IImor engines is a British Formula 1 manufacturer which is owned by the Mercedes-Benz. The company has been on the front line with the supply of Sauber in 1994, McLaren since 1995 to the year 2014, Force India from 2009, Mercedes factory from 2010, Lotus from 2015, Williams from 2015, manor from 2016 and Brawn from 2009.  In the recent years, Mercedes has been the supplier of engines to McLaren but enhanced by Honda as a way of making the vehicles more powerful. The number of valves is equal in both McLaren and Mercedes causing the engines to almost have the same performing power range (Jenkins et al., 2016).

The figure above shows the F1 engine of Mercedes

The figure above shows F1 engine of McLaren

1. Fuel consumption
2. Internal engine combustion

Making a 900hp with a 3litre engine for the McLaren and a 1000+ hp with a 1.6litre engine for Mercedes relates to the fuel flow which is vast accordingly. The maximum rpm exhaust turbine of the Mercedes is around 125000 while that of the McLaren is above 200 000. Both of these indicate the ability of the engines to burn fuel at a very high level and this attributes to the high power of the engines. The displacement is at least 6064cc, the engine of V12 Mid engine RWD, horsepower of 627 HP, transmission of 6-speed manual gear, a maximum speed of 386km/h and a 0-60mph of 3.2sec (Whitby, 2016). On the engine specifications, Murray needed an engine that was naturally aspirated and which allowed it to be reliable and very easy to manipulate occasionally.

1. Power unit

The team again settled for a BMW design with a 6litre V12 engine which had a total weight of 266kgs and still had the capacity of generating a horsepower of 627. This engine is so powerful and has the capability of causing damage to the carbon fiber parts and so the compartment is planted with a gold foil for easier insulation. The most crucial part when it comes to performance is to have a vehicle that is both low in weight and with a high power and McLaren F1 has achieved the target. McLaren is the first type of a car to use the monocoque chassis which was made out of the carbon fiber. All the other components of the car such as the interior, body, and any other part are made from lightweight materials like carbon fiber and titanium (McLaren Honda, 2016).

Both of these vehicles cannot be compared based on their weight since they can perform almost similar tasks but McLaren has a greater chance of performance. The engine capacity is 592hp or 441 kW and a 466 ft lbf which is way higher than that of Mercedes which is 161kp or 120kW. Comparing the two models, McLaren is more powerful and can produce immense energy when it comes to pick off (Whitby, 2016). The on-start accelerating forces generated of McLaren at 0-60 mph are at least 3 seconds compared to Mercedes which is at least 10 seconds. Comparing McLaren F1 engine to that of Mercedes F1 brings series of consideration in the idea that the F1 for McLaren is highly invested in terms of developing the engines.

Conclusion

McLaren is a company that has been known of not manufacturing their own types of engines but always depends on other companies such as Honda, BMW and Mercedes including others to manufacture engines for them. The company has heavily invested in getting the best engines with a high performance for the benefit of remaining among the best brands of vehicles in the world (Jenkins et al., 2016). Today a normal McLaren F1 engine car is close to $100 million. Mercedes on the other hand has been involved in making the best luxury and influential cars in the world and which have the best price and performance in capacity (Mercedes, 2016). Efficiency is highly observed at Mercedes and this creates the opportunity for the car to sell itself worldwide.

References

Boretti, A., & Scalzo, J. (2015). Design of 65 degree V4 Moto GP engines with pneumatic poppet valves or rotary valves (No. 2015-26-0176). SAE Technical Paper. Retrieved from: https://scholar.google.com/scholar?q=Boretti%2C+A.%2C+%26+Scalzo%2C+J.+%282015%29.+Design+of+65+degree+V4+Moto+GP+engines+with+pneumatic+poppet+valves+or+rotary+valves+%28No.+2015-26-0176%29.+SAE+Technical+Paper.&btnG=&hl=en&as_sdt=0%2C5

Jenkins, M., Pasternak, K., & West, R. (2016). Performance at the Limit: Business Lessons from Formula 1® Motor Racing. Cambridge University Press. Retrieved from: https://scholar.google.com/scholar?q=Jenkins%2C+M.%2C+Pasternak%2C+K.%2C+%26+West%2C+R.+%282016%29.+Performance+at+the+Limit%3A+Business+Lessons+from+Formula+1%C2%AE+Motor+Racing.+Cambridge+University+Press.&btnG=&hl=en&as_sdt=0%2C5

McLaren Honda. (2016). History of the F1 engines. Retrieved from: http://www.mclaren.com/formula1/car/history-of-the-f1-engine/

Mercedes. (2016) Formula 1 engine facts. Retrieved from: http://www.mercedes-amg-hpp.com/formula-1-engine-facts/#

Petronas (2016). PU106C Hybrid. Retrieved from: https://www.mercedesamgf1.com/en/mercedes-amg-f1/pu106c-hybrid/

The supercars. (2011). McLaren F1. Retrieved from: http://www.thesupercars.org/mclaren/mclaren-f1/

Whitby, R. D. (2016). The challenge of low-viscosity engine oils. Tribology & Lubrication Technology, 72(5), 96. Retrieved from: https://scholar.google.com/scholar?hl=en&q=Whitby%2C+R.+D.+%282016%29.+The+challenge+of+low-viscosity+engine+oils.+Tribology+%26+Lubrication+Technology%2C+72%285%29%2C+96.&btnG=&as_sdt=1%2C5&as_sdtp=

Ford Motor Company

Introduction

Motor vehicle business had become very competitive due to the emergence of different types of vehicle which are better and cheaper. Ford faces competition from a lot of rivals, and this includes: Hyundai, Toyota, GMC and Honda. These companies do not only produce high end cars, but they also produce cheap cars, which can be afforded by many. On the other hand, a company such as Toyota is flexible, and it moves with the changes in the motor vehicle market. Ford has remained in the same position, whereby its models of vehicles and designs seem similar, and they can easily be predicted. This is a move which has resulted in the diminishing customer base of Ford vehicles.

Ford has been successful in the US, which is its largest market in the whole world. However, the company has focused more on the sales of F-series trucks, which are on high demand in the US. More improvements have been made in the truck, due to its high demand in the US, thus making the company to invest heavily in the truck (ELLEN, 2011). The company has also focused on the production of hybrid electric cars, which can be charged. Ford opted to producing environmental friendly cars due to high demand of environmental friendly cars in the market. In addition, most countries have also imposed strict laws regarding environmental pollution. China is currently dealing with the issues of environmental pollution, thus eco-friendly cars should be on high demand in the country (Emmons, 2015).

In as much as Ford is focusing on environmental friendly cars, the youths are shifting away from the company (Cameron & Quinn, 2011). Most youths have opted to buying cars from other company’s other than from Ford, the main reason behind this case is the production of cars whose designs are not unique at all. Each and every year, Ford releases new models of its high selling cars, in order to compete with its rivals. On the contrary, Ford’s new models are improvements of their previous models. The company does consequently come up with new and unique models, to compete with other cars (Hughes, 2011). According to owners of Ford vehicles, Ford’s improves the mistakes it made on the previous model, in the new model. The body shape, and the interior improvements are only meant to better than that of the previous model, thus attracting more customers.

Ford cannot beat its competitors, due to its sluggishness in changing the models of its cars. Ford’s models have always resembled each other, and it makes it easier for one to predict the future of a certain brand of a car (Emmons, 2015). This is a move which is not tolerated by the younger generation, since young people are attracted to unique and sleek cars, which seem attractive before the eye. Toyota, for instance is a company which produces cars which are very unique, in order to win over markets in different parts of the world, regardless of which motor vehicle brand is dominant in the market. This efforts have Toyota beating most dominant companies in most countries, hence becoming the most dominant motor vehicle company in the world. The only strategy which Toyota employees, is the flexibility of its models (ELLEN, 2011).

Production of fuel economy cars is significant however, the company should also focus on other strategies (Cameron & Quinn, 2011). Ford produces fuel friendly vehicles, thus saving the costs of fuel. Due to the increase in fuel prices, most people often consider purchasing cars which are fuel economy, in order to save more cash. Ford has however depended upon this strategy so much, that it has forgotten to come up with other strategies of attracting new customers (Hughes, 2011). Production of hybrid cars has seen Ford being able to attract more customers, since the company’s cars have been very cost effective, thus enabling its users to enjoy using their cars. More companies have also adopted the production of fuel economy and hybrid cars, thus making them to be more effective.

Ford has not been consistent in improving and coming up with new designs for its new models of cars. For instance, the 2007 model Mustang, is similar to 2017’s model, with few improvements on the side aerodynamics, headlamps and bumpers. The cars however look similar, and a person can easily predict the 2018’s model (ELLEN, 2011). Ford does not invest in improving the design of its cars, making them to maintain the old look, with a few improvements which makes them to look stylish. However, when it comes to the engine, the company has done a lot, since it has heavily invested in the production of hybrid and fuel economy cars, hence allowing its customers to enjoy their ride, due to the fuel economy and hybrid engines (Emmons, 2015).

Ford Mustang, is considered as a sport car, with rivals such as Lamborghini, Ferrari and Porsche.  These companies have changed the models of their cars from time to time, making hard for one to predict the new model (Hughes, 2011). This changes have impacted the companies’ positively, since most people have attracted to the new models of cars which are unique and stylish each and every year. The younger generation is also attracted to cars such as Lamborghini, Ferrari and Porsche due to their unique and stylish interior and exterior outlook (Cameron & Quinn, 2011).

Technological changes in the world have forced most people to change their preferences, particularly the younger generation. Ford should change its design in order to attract the attention of the youths, thus making them to become potential buyers (ELLEN, 2011). Ford’s main market is composed of the old, living in North USA, who have either retired from works, or who work in the fields, hence requiring a SUV car. If the company maintains its current design, then it is likely to run of market, due to the lack of market from the younger generation in the coming years (Emmons, 2015).

Ford should only pay attention to the preference of the younger generation, since the older generation constitutes a smaller percentage of the world’s population (Cameron & Quinn, 2011). The youths dominate the whole world, and they tend to affect the designs of most cars, whose companies’ change the designs in order to look appealing to the young generation, hence attracting the, to buy the cars. Ford seems to have a problem with its designers, who tend to cling on the past looks of the cars, thus making the cars to remain the same, even when new models of the same car are made ten years later (Emmons, 2015). Ford as a company needs to embrace uniqueness, and avoid familiarity, which makes the cars look similar thus making the youths to dislike them, due to the old age designs which the cars bear.

The quality of Ford vehicles is also diminishing, according to surveys conducted, most people considered Fords product value being low when compared to that of other cars. This has been majorly attributed to the company’s reliance on a similar design, which makes it hard for it to look for other designs in order to change the appearance of the cars (ELLEN, 2011). Moreover, Ford concentrates so much in the production of fuel economy cars, which are environmental friendly, hence reducing the prices of their cars. Producing cheap cars come with different challenges which include production of low quality cars (Cameron & Quinn, 2011). The company has not therefore been able to focus on improving the quality of its cars.

Ford is supposed to change the design of its cars, and focus on producing unique models which cannot be predicted by anyone (Emmons, 2015). This will benefit the company, since it will attract more customers, hence increasing the sales of its cars all over the world. After improving the engine system of the company’s cars, it will be of importance to improve the design of the cars, hence attracting more customer. In addition, Ford has been in the market for a very long period of time, making most people to recognize the company, and the quality of vehicles which the company produces. The company can be able to dominate again, only if it changes its design, and adopts new and unique designs.

The electrification strategy employed by the company will be very effective, only if the company changes its design. Through the production of hybrid cars, and through changing the design of the cars, ford will be able to beat its competitors (ELLEN, 2011). Most people detest Ford’s vehicles due to their designs which are perceived as being old age designs. On the other hand, Ford motors is highly respected by most people, who believe that it is one of the best vehicle manufacturing companies in the world, but it is only affected by its designs which seem outdated (Cameron & Quinn, 2011).

Introducing new designs will come with a lot of challenges, which include increased cost of production (Emmons, 2015). The young generation is not interest in cars, but on flashy things, which are not very expensive. Most youths nowadays tend to invest in electronics, and consequently show off on the social media. However, when it comes to cars, they are concerned with a flashy car which will not land them into debt (Hughes, 2011). The new generation is basically associated with faking, whereby most people tend to take photos in front of expensive cars and pretend it is their own. The new generation operates under the principles of faking, which makes most people not to rush into buying expensive things, but rather faking to own things which they do not own.

The new generation focuses on what they can afford, and what is important in their lives. They are not concerned with acquiring huge debts from banks, only to end up being auctioned by the banks (Emmons, 2015). Stable youths will consequently go for a cheap, classy automobile, and improve the specification of the vehicle. In other words, while Ford is changing its car designs, it should be very carefully not to make the cars very expensive, since young people opt for cheaper things, rather than for expensive things which may affect them (ELLEN, 2011).

Ford should produce a wide variety of cheap cars, which will allow the company to be able to attract the youths (Emmons, 2015). In addition, these cars should be very different from other models, thus making it easier for the youths to be able to purchase uniquely designed vehicles at very cheap prices. This is a move which will consequently attract more youths to the company. Similarly, the company should hire young designers, who will be able to provide unique designs for the company, which will easily attract the youths. Ford should then incorporate the strategy of electric cars into these cars, thus enabling the youths to spend less while using the cars, due to the less consumption of fuel. Finally, Ford should also use celebrity endorsements as a means of attracting the youth, thus making them to purchase cars from the company. This is a move which will see the company being able to regain its dominance (ELLEN, 2011).

Conclusion

Ford has not been able to attract youths, due to the design of cars which it produces. The company is termed as conservative when it comes to designing, hence its cars look similar, even if the models are different. The company has not put so much effort in changing the design of its models, a move which has made it hard for the youths to be attracted to such models of cars. In addition, the company has heavily invested in its bestselling truck, thus paying little attention to other models. However, Ford can be able to attract young customers, only if it reconsiders its designs. This will allow the company to target the youths, through designing the cars in a way which looks appealing to them.

Reference

ELLEN, H. (2011). Ford Motor Company's Global Electrification Strategy. Business Economics, (3), 167. doi:10.1057/be.2011.10
Hughes-Cromwick, E. (2011). Ford Motor Company's global electrification strategy. Business Economics, (3), 167.
Emmons, C. (2015). Regaining Organizational Health and Vitality: Ford Motor Company's positive adaption to the challenges of the automotive industry crisis. People & Strategy, (1). 46.

Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and changing organizational culture: Based on the competing values framework. San Francisco, CA: Jossey-Bass.

Hoffman, B. G. (2012). American icon: Alan Mulally and the fight to save Ford Motor Company. New York: Crown Business.

Quality management

How will you handle this situation?

The first step to ensuring that there is an observation of quality with the staff is by making a commitment. Being committed creates a chance for one to learn the weakness and the strength of an organization. Through learning the strength and weakness, one can be able to formulate a plan that will ensure that both sides are balanced to have a clear genuine and desirable outcome. Tracking the mistakes is also a strategy to identify the possible solutions (Kinicki & Kreitner, 2012). Looking at the records of each particular staff will give a clear indication on who leads who and what leads to the behavior being experienced in the school. Having a right attitude is also important to discover the ways to set straight the concerns of the school. In the case the staff is reluctant to go to the classrooms due to lack of proper schedule, then this can be formulated and put in place correctly.

What plan will you put in place for the staff?

The staff must learn on how to be accountable at all times. The actions of each person count in the performance and the best performer are always very accountable for his or her actions (Cummings & Worley, 2014). Classes that perform best are due to the commitment and the involved parties being accountable of their precise actions. Doing a follow up is very important to ensure that the staff is acting according to time and schedule. Having lazy people reduces the productivity of the school and finally the drop in records.

What plan will you put in place for the assistant principals?

The assistant principals will now have to adapt to a schedule of ensuring that the staff works accordingly. Most of the schools where there are lazy assistant principals then the staff and the teachers are most likely copying the behaviors of the assistant principals thus getting a bad example (Kinicki & Kreitner, 2012). Managing the workforce is important but micromanaging will make the situation worse. The assistant principals need to manage the school functions and the teachers as well as show concern for the performance of the school. Assistant principals should seek to get the targets for each teacher and the general staff to make sure that they perform their duties clearly and ensure success is the end results.

What information will you give the principal after you critique the assistant principals?

The assistant principals have been lazy and reluctant in their work due to the fact that they have other duties outside the school job (Cummings & Worley, 2014). At times they lead a bad example through not engaging with the teachers for quality results. This can be reduced by rewarding each person and the staff who perform better in the class. Staff members who do a good job should not be left empty handed by some tokens should be given to the best performer. First, an assistant principal should always be in the front line in ensuring quality and time management at all times. Developing a good curriculum is important to assist in the running of the school. The curriculum helps staff and the teachers observe time and keep in mind that the mission is result oriented and most specifically success (Kinicki & Kreitner, 2012).

Take me step by step how you will handle your responsibilities at Prominence High School.

The learning environment at all times should be conducive and friendly enough to ensure no student, teacher of staff complaints in performing their duties. Evaluating the kind of work being done by each person within the school is paramount in making sure that there is no time wastage and the level of achievement rises accordingly. Understanding the practices of each particular individual is important to know how to deal with the person in case there are quality performance issues involved.

References

Cummings, T. G., & Worley, C. G. (2014). Organization development and change. Cengage learning. 

Kinicki, A., & Kreitner, R. (2012). Organizational behavior: Key concepts, skills & best practices. McGraw-Hill Irwin.

APPLE INC. CREATIVE LEADERSHIP

The success of Apple as the best startup company in the world can be attributed to a leadership that is based on a creative structure and culture. The leadership practices have changed since the death of Steve Job one of the co-founder of the firm.   Under the current leadership of Tim Cook, the company has created a value in the market that the rival companies have been unable to copy or sustain (Lashinsky, 2015). The leadership has made the company to be a leader in innovation and creativity of that are not easily matched by other substitute products in the smartphone industry which has driven the company to be the best in terms of capitalization. Creative leadership involves embracing leadership competences that are unique to a leader and knowing that leadership is a state of mind. It involves continuously leading in a way that appreciates the inner worth and value and helping other people to realize the same. Creative leadership involves moving from a reactive mindset to having a creative mind since such a mind is prepared to lead others and manage any change that may arise (Anderson & Adams, 2016).

After taking over as the CEO, Cook discovered that one cannot be fully prepared for the kind of scrutiny that follows the successor of a previous legend in Steve Jobs. It required a prepared mind that can withstand a trial by fire at a moment the firm was undergoing triumphant moment (Lashinsky, 2015). The leader embarked on taking up skills when faced with challenging situations or change and steering the firm to an even greater success than one experienced under the previous leader. Indeed the market value for Apple is now higher and even more than twice that of its closer rivals like Microsoft. The leader has managed to hold together a management team that is long-tenured while augmenting it with major players and even owning up to various blunders he makes in the hiring process. Moreover, the leadership has directed attention towards relevant and important issues that relate to the company but not merely enduring the spotlight. Instilling a creative leadership mind in others can be evidence in the way the leadership has embraced the role of coaching rather than controlling , trusting the  teamwork players to be creative in critical areas including marketing ,  product design and development which have been a key pillar for success (Summerfield, 2014).  Through this the management has been able to the criteria for mastering leadership.

The organization structure and culture for the company has ensured that Apple meets the criteria for mastering leadership. The employees of the company have been effectively developed, involved and integrated into a culture that facilitates creativity and hence, rapid innovation in the product developed marketing and distribution of products. The strength in creativity can be observed in various products which have been performing optimally in the market, such as Apple Watch, iPhone and strategies that have ensured constant improvement. In fact, the employees are selected for their creative abilities, skills and knowledge. Hence the industry leadership is supported by the company’s creativity and top-notch excellence that has driven innovation and this has been enabled by a supportive organizational culture (Lashinsky, 2015). The firm has also been adjusting its culture so that it can properly match the changes in internal environment and external environment in the market. In addition, the leadership has enabled the firm to achieve success in retail operations around the world and better than its competitors. The strategy of the company has majorly been focused in the domestic market and western markets that are fully developed.

 There are various opportunities available for the company to change in its strategic leadership and enhanced by a collaborative culture. The opportunity for distribution network expansion relates directly to the various weaknesses that a company may experience in its network. With a larger retail presence the firm will be able to strengthen its ecosystem and improving on its sales.  There are good chances that firm can succeed in the offshore market that it has not yet exploited especially in the Asian economies. A wide retail presence is important for many products especially for the icon iPhone product. This would however, require a culture that will facilitate and enhance creative leadership in introducing changes inside the company’s management. The change should involve a collaborative strategy for both hardware and software teams so that products that suit the new market can be created and distributed. This requires a leadership mind that is more deliberate in engaging people and laying down structures that enhance independent thinking and collective decision making. Rather than having a leadership culture where one person calls the shots, a collaborative approach will bring together different minds with different ideas and while working in team, develop strategies for exploiting the aforementioned opportunities. A leadership that is centered on one person faces bottlenecks since everything has to flow through him or her (Phadtare, 2011). Creative leadership indulges the input of all of all individuals, and avoiding focusing on one thing while ignoring other aspects of the company (Anderson & Adams, 2016). Collaborative approach helps in creation of an organizational culture where various sections come up with strategic decisions quickly. It is an important change that the organization can use to overcome challenges arising from introduced changes through being creative.

A creative structure is one that is inside out and sets the mindset of leaders to control aspects that are likely to enhance teamwork and hence performance. Organizational culture and structure affects the adaptability of strategic changes in the organization and determines the extent to which people will grasp the strategic change. Moreover, organizations comprises of people with different personalities, goals and talent and therefore a unique culture. Some aspects of this culture change when structures or people change and the culture will influence the success or failure potential for the organization and its leaders (Phadtare, 2011). The opportunity for expansion of distribution network into Asian economies will be affected by the culture of Apple and how it prepares people to embrace change. Moreover, the ability of leaders and their organizations to embrace change and enhance creativity affects the effectiveness of the set goals and mission.

Conclusion

The success for Apple as the best startup company in the world can be attributed to a leadership that is based on a creative structure and culture of the organization.  The analysis for Apple creativity indicates that mastering leadership requires a mindset that is capable of moving from reaction to creativity. Creative leadership like in the case of Tom Cook is measured by ability to impart positive mindset in others and direct their efforts towards strategic change and improved performance.

Reference

Summerfield, M. R. (2014). Leadership: A simple definition. American Journal of Health-System Pharmacy, 71(3), 251-253.

Anderson, R. J., & Adams, W. A. (2016). Mastering leadership: An integrated framework for breakthrough performance and extraordinary business results. 205-

Lashinsky , A.,(2015). Apple’s Tim Cook leads different. Retrieved from: http://fortune.com/2015/03/26/tim-cook/

Phadtare, M. T. (2011). Strategic management: Concepts and cases. New Delhi, India: PHI Learning. 170-171

Brand Name and Mission Statement

Brand Name

The name of the nonalcoholic beverage brand for this company will be AF (Always Fresh) which is a name that is developed to consider the advantage of having the drink fresh at all times. The name of the brand is very important since it creates an opportunity for the growth of the company. Customer recognition will be identified through the brand name and this will assist in increasing the level of output for the company (Wilkins, 2014). With time since the brand is still very new, the customers will have adapted to it since it is simple and clear to understand the name.

Since the products are already known in the market its introduction will be very cheap and straight forward, therefore, creating a chance for the company to venture into any new market fast and easy. Through having a good brand name, customer loyalty will be created which is an advantage to the company since the more the people get to identify with the products the more the chances for the company to grow significantly, therefore, boosting the sales of the company with a large margin. Many people are always attracted to products that they share some value with and this is a great way of getting referrals to the products (West, 2016). The competition will be created in the market since a variety of products are up for sale but with the customer loyalty in place, profits for the company will be huge and significant. The company will experience an increase in purchases over time which is physically enhanced by the increase in sales through customer loyalty and the having the brand name simple to associate with.    

Mission statement

The mission of the company is to produce the best brand, quality, fulfilling and always fresh through the use of best technology for availability to our customers. The nonalcoholic beverage is one of the best brands that make it possible for the company to grow to greater levels. The mission statement is important since it shows the direction of the company from its commencement to where it is headed. Quality products always win the market and therefore the brand developed by Always Fresh is of great quality and have no side effects in terms of making a person lose focus or control (Klink & Wu, 2017). A good brand sells itself and the mission statement assists in making sure that the diverse market will get interested in the products through the mission statement of the company. The company has just implemented a new system that will enable the processing of the commodities faster and in a better way to make it available in the market.

The mission statement will help serve the customers better since its clear meaning increases the curiosity of the brand being advertised. In many cases, the mission statement has won the day for most companies that display the essence of quality. For the case of this company, the beverages have already been tested by the local community and made the brand name known to many and by far (West, 2016). This ideology means that reaching for the bigger market will be easy through the brand name.  Technology has allowed the company to also develop improved products that reduce the chances of causing harm to the consumers. Consumers are the most important people in this company and therefore the need to consider their well-being.

References

Klink, R. R., & Wu, L. (2017). Creating ethical brands: the role of brand name on consumer perceived ethicality. Marketing Letters, 1-12.

West, J. D. (2016). The Effects of Mission Statement Design on Behavioral Intention (Doctoral dissertation, University of South Florida).

Wilkins, M. (2014). When and why brand names in food and drink?. Adding Value: brands and marketing in food and drink, 15-40.

Acquisition Project 

Business plan for Amazon

The mission and the vision of Amazon involves being the firm that is most customer centric and building a place where customers can find anything that they need to buy through online platform. Through a good customer service is aimed at ensuring continuous high performance of the firm and this should be achieved through personal reviews of products needed, where the customers submit their experience to help other interested customers in making informed decisions before buying the products. By acquisition of Whole Food Company, the company will have ensured the fulfillment of its vision of providing just anything that a customer needs online. Through this the company will be able to extend to the organic food market that has great potential and one that has not been fully exploited. With a growing presence in this market around the world the firm will position itself as a leader globally.

The target market for the company includes people who are 22 years or above and are health conscious, care much about the sustainability of the environment, and their preference includes all- natural food products. The market includes mostly educated people and especially middle and upper-class and who have enough knowledge about the importance of whole food products to their health, their families and the environment. Most of these customers have families and children to whom their share their experience and belief. The target for health-conscious individuals in the middle-class and upper-class is informed by the fact that natural foods are rather more expensive but to target the lower market in the society, the firm aims at providing healthier food options at affordable prices. The lower market to be targeted comprises mainly of students with means providing these products even though more expensive is beneficial to them as well.

 The various resources that will advance this acquisition and ensure the success in the market include financial resources, advance technology and large presence in the web, skilled workforce and even strong logistics. The financial resources enable the building of appropriate application that can be useful for customers of natural food products and the establishment of online structure that supports marketing and standardization of customer service online. This will enable Amazon to use technology in gain competitive advantage in the natural food market, acquire large customer base and ensure profitability through the achievement of its mission. As the world market sees the spreading of organic age, the skilled human resource will ensure the company taps into such developments.

Acquisition plan

The main objective of this acquisition includes maximizing of the company’s growth through enhancement of operations in the world market. The specific objectives of the acquisition include building more strength, customer base expansion and venturing into new product segment in the market. The maximization of Amazon’s growth involves increasing revenue by venturing into organic food market with ultimate goal being higher earnings through acquiring of a Whole Food, as a firm that is healthy and has positive holdings. Expansion of customer base involve targeting the market for organic foods with a firm that already has established customers and then through marketing efforts , improved services and affordability increase the market share. By focusing on these objectives the firm will be following on its expansion plans for different product segments and thereby ensure that there is achievement of the main goal which is to provide anything needed by customers. Using technological innovation and infrastructure, the firm will gain a competitive advantage in any market and thence its growth and development strategy.

Consolidated income statement

Considering the EBITDA for the Whole Foods is current total revenue and net income the purchase price may be provided as follows; the expected WACC in two years is estimated to be 15 percent, minimum price is 58,027,500 and maximum price is 61,320,430. The potential sources of value for this merger include possible cost savings due to sharing of overheads and extensive distribution channels. The possible destroyers of value include increase in wage, poor quality of products and customer service. The initial offer price for the firm is 58 billion dollars combination of debt and stock which is affordable for Amazon while it can ensure expansion of Whole Food.

Financing plan  

Investing in Whole Food by the Amazon is not likely to damage the credit worthiness of the firm since the amount of available cash and assets can cover the loans taken by the company for purchase. In addition, use of equity to finance the buying out ensures that the risk is shared and hence, Amazon does not run into liquidity problems. The debt will be used in purchasing shares which allowed Amazon to maintain control until the whole amount is completely paid.

Risks

The acquisition may be exposed to various risks which include failure for adhering to the strategic mission of the firm when future and immediate effects for the process are ignored. There is also the risk of ignoring the current business and paying much consideration to the new firm.  Moreover, the firm may fail to achieve adequate cash flow. This is because synergies may fail in generation of real cash flow (Cooper & Finkelstein, 2015). Another risk involves encountering risks in the distribution channels of the firm.

References

Cooper, C. L., & Finkelstein, S. (2015). Advances in mergers and acquisitions: Vol. 14. Bradford: Emerald Group Publishing Limited.

Business Entity

A sole proprietorship is one of the best and cheapest forms of business entity a person can engage in today. Many businesses around the world today are operated as a sole proprietorship. The business is operated and managed independently and also the business transactions are done by the sole proprietor. The owner becomes also responsible for the liabilities and debts of the business. The owner makes the decisions of the business, he can decide who to give the business to and who and when to sell (Bryman & Bell, 2015).  Advantages of the sole proprietor business are the fact the owner has the total control of the business including the decision making step of the business, the transfer can be done in any particular instance and that there is no corporate tax paid. A sole proprietor can be held accountable for the business in terms of the debts.

The partnership is a business entity that involves more than two people who come up with a common business idea which can be productive. Partnership type of business allows the partners to share the profits according to the contribution of each partner. Advantages of the partnership business are that the partners are included in the decision-making process, therefore, making it easier to come up with a productive business idea. The responsibility of the business is shared amongst the members and this allows the business to be more flexible as one can engage in other areas without affecting the continuity of the business (Bryman & Bell, 2015).  Disagreements are one of the disadvantages of the partnership business since every member has a different idea and wants it implemented accordingly. Taxation is also a disadvantage for the partners as each partner is required to make individual tax returns. Profit sharing according to the contribution of each member is inconsistency as some members can opt to remain out of the business management but still earning like the rest of the members (Ross, 2016).

A limited liability partnership is the type of business structure where the partners have protected accordingly against the carelessness of the other partners in the business. An advantage of the limited liability partnership is the capability of protecting each person from the mismanagement of all other members (Hertz et al., 2015). This allows the partnership to be strict and also beneficial to the partners as they will act according to the rules of the partnership agreement. In the case of lawsuits, the responsible person is dealt with by the law instead of the business. Tax advantage since each person is responsible for filing the returns according to the expectations of the internal revenue services. The disadvantage of the limited liability partnership is the essence that some of the tax authorities in certain countries regard the business as personal and therefore charge according to individual tax returns (Hertz et al., 2015). Limited liability partnership types of businesses are not recognized as being legal and therefore difficult to establish except for the lawyers and doctors who are given the advantage of being capable of handling such a business entity.

Limited Liability Company is a company that has some legal protections which are guarded against the liability of a person but the issue of double taxation does not apply in this case. Members of the type of business are taxed independently just like the sole proprietors and this means that the business output is taxed the personal income tax before it reaches the owner (Bryman & Bell, 2015). The policy of this kind of business is that each person or member should act according to the failure of the law to which the family and your business will be exposed and therefore very important to have a lawyer during the formation and specific location of the business. The advantage of the limited liability company is the idea of having limited liability. For this case, if the business is sued on any terms the members are safe as the personal accounts, estates, and the personal assets are very protected by the law. Corporations are liable to some of the taxes even when they have a separate business meaning they will be taxed twice but the Limited Liability Company is a single entity and therefore treated as personal income and this allows the federal taxes not to apply in this case (Hertz et al., 2015).

A corporation is a form of a business entity that is registered as being a public kind of company and therefore recognized as a separate entity from the owners of the business. The advantages of the corporation are the idea that the liability of the owners in relation to the creditors is always limited in terms of their investment in the company. This case means that the properties and the contributions of the owners are not to cover the cost of paying the creditors’ if the company is liquidated at any one point (Bryman & Bell, 2015). The company can get added capital for business continuity from the stock market. Ownership of this kind of business is determined by how many certificates a person has and this ensures that the transfer of the company is cheap and easier. Disadvantages of the corporations are the establishment of the business entity which is a tedious and complex process which requires the registration according to the central regulatory authority. Double taxation is experienced in this kind of business entity. The first tax is charged as income tax while the rest is charged after giving dividends to members.

The first type of business entity is a sole proprietorship where the owner controls the income and the time to open the business including the advantage of not sharing the profits of the business. Brett and Jamal starting a partnership type of business will enhance their profit earning capability as they will share equally according to how each has contributed to the business (Ross, 2016). The benefits acquired will be used to their advantage since there are no legal challenges which face the business according to the laws. Rebecca’s idea to start a partnership is productive since the members will earn according to being a member and also she will earn according to how many members join the business idea. With the partnership type of business, the members will be charged tax according to personal earning. The liability of the business is according to the individual mismanagement, therefore, making it a burden to other members in the partnership. Samantha wants to start a sole proprietor type which is cheap to start and run (Bryman & Bell, 2015). Taxation is individual and also the liability is to her since she controls all the processes of the business. Daniel’s idea to start a corporation is expensive and difficult to establish the process of registering such a company is expensive.  Double taxation must apply and the liability is to the business and not to the properties of the owner.  

The best type of business to start is the sole proprietor type by Melanie. It is easy to establish and requires no complex formalities to start or run. The benefits and profits acquired are not shared and also not double taxed at any instance. The business can be inherited and also sold at the will of Melanie therefore cheap to run and control.

References

Bryman, A., & Bell, E. (2015). Business research methods. Oxford University Press, USA.

Hertz, G. T., Beasley, F., & White, R. J. (2015). Selecting a legal structure: revisiting the strategic issues and views of small and micro business owners. Journal of Small Business Strategy, 20(1), 81-102.    

Ross, D. F. (2016). Introduction to e-supply chain management: engaging technology to build market-winning business partnerships. CRC Press.