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The Strategic Enrollment Management Process

            Introduction

Strategic enrollment management (SEM) is referred to as an essential planning component for growth in post-secondary education.  Achieving an institution’s enrollment goals through a new or improved SEM process can create financial stability and revenue growth for colleges and universities. A successful SEM approach will also account for the complete cycle of a student’s education all way from the entry level through to the graduation point (Bontrager&Hossler, 2014).  Recent research on SEM processes focuses particularly on student success and highlights the core components that students need in order to graduate.  Recent researchalso points to the idea that a successful SEM process should be grounded not only on graduation rates but also on retention and career readiness metrics (Seidman, 2012).  Therefore, a successful SEM process should balance internal college and university enrollment goals with achieving high student retention and graduation rates and career readiness metrics.

Theoretical Implication

Design theory, or design thinking, is described as the general understanding of strategies, methods, analysis and research of the design practice (Meinel, &Leifer, 2011).  Design thinking can create a better understanding of how to construct an efficient and effective process and SEM strategy.  The theory can be used as a lens from which to view and understand the exterior and internal aspects that impact the recruitment, enrollment and retention outlook of the college or university.  In other applications design theory and design thinking have been proven to help in developing a better strategy and a guide on how processes may attain better results and avoid hindrances (Meinel&Leifer, 2011).  In the post-secondary education context design thinking can be used to develop a SEM plan, the identification of required SEM resources, the cost of acquiring SEM resources or creating new ones and the timeline to achieve stated SEM objectives. Overall, design thinking can help in aligning the needs and preferences of potential stakeholder with the objective of the organization (Meinel, &Leifer, 2011). 

To be concise design thinking is an attempt to explain or describe design activity which includes offering explanation as to what the activity is, what it entails, the rationale behind it as well as what it aims at accomplishing.  This is a procedure that is primarily concerned with the creation of systems, products, services and communications that is created to satisfy human needs, improve individuals lives or create more sustainable practices.  Design theory is also particularly adept at ensuring that designs are developed in the face of uncertainty (Meinel, &Leifer, 2011). It is also important to note that the application of the theory in the implementation of a SEM process is aimed at ensuring that fewer errors occur as the process cannot eliminate human error entirely.  In this sense design theory is aimed at planning for changes that expect to transform the existing situation and generate the desired outcomes (Meinel, &Leifer, 2011).

Design thinking is an attempt of explaining or describing design activity which includes the activity is what it entails, the rationale behind its designing and the primary objective.  Design on its own can be described as an action plan or the action’s intention.  In brief, this is a procedure that is concerned with the creation of systems, products, services and communications. This is aimed at meeting individual’s needs and improving individual’s lives with respect for the natural environment welfare.  Design thinking theory is built to ensure that designs are developed normally in the uncertainty face (Meinel, & Leifer, 2011). SEM implementation helps in ensuring that fewer errors occur in its application process. Design thinking theory is a form of planning for programs changes. The theory works by providing solutions for transforming the existing scenario and generating desirable outcomes (Meinel, & Leifer, 2011). Designing is the process of initiating changes in different fields as it help in implementing better operational and marketing strategies.

            Additionally, Design thinking, is a thinking series which seeks on developing essential conversations that may help in offering economic and social growth to institutions. The thinking series in design explores the strategic plan as the chance of generating adequate value via innovative services and products (Dorst, 2015).  The design thinking theory emphasizes on the development of design as a crucial service that is more efficient via rigorous resourcefulness, decisive inquisition as well as an ethics which are all essential in contributing towards growth (Dorst, 2015).

The actual enrollment management is perceived as both a procedure and a concept.  Organizational reporting structures leads to transparency while the efforts of integration amid  divisions and offices works in a synergistically manner  in improving services as well as permitting enrollment strategic process to take place (Bontrager, & Hossler, 2014).  Enrolment is basically refers to the procedure that begins at the point when potential students makes contact with the institution and continues to the graduation point.  In a traditional sense, systematical enrollment management generally involves recruitment, pricing, financial help, placement, development of career, student affairs management as well as market research.  However, in the modern sense, this entails divisional lines and cross-office functions.  SEM can be implemented through ensuring that retention, recruitment and the success of the students is designed as the primary base of the program (Bontrager, & Hossler, 2014).

System Enrollment Management Implementation: Ways of Ensuring Success

For effective SEM development in the university does not only require a plan but also the full commitment to overcome obstacles. The process is an assertive approach that is grounded on ensuring that there that fitness is present on all the required resources (Habley, Bloom, & Robbins, 2012).  Implementation effectiveness thus requires the utilization of appropriate marketing strategies in empowering the selection of students since it is a broad and encompassing activity (Forest, & Kinser, 2002). The implementation of a fresh SEM system can prove to be a huge task and therefore, careful considerations should be developed to ensure that a successful rollout is performed. The program should account for budgets, technology, management issues, training, business and additional related matters. 

For a successful SEM system implementation in the University, several elements should be considered.  First, the institution management should begin the program with a consideration of the end results.  Admission and the recruitment process are basically the outcomes of the programs implementation which must be accomplished with resources availability (Habley, Bloom, & Robbins, 2012).  The implementation should begin by evaluating the involved business process as well as strengths which help in developing strategic objectives. This, in other words, is the procedure of making decisions on where the institution wishes to be situated in the future. The road map should be grounded on clear aims which offer fundamental grounds of designing the system.

Secondly, the silos should be broken down. In considering the numerous departments that are engaged in admissions and recruitment process, it is important to align the department to permit consistent communication. In other words, this is a reflection of the institution’s purpose, mission as well as the general strategy (Kalsbeek, 2013).  In addition, communication within the departments should be done often and early enough.  The implementation of fresh management system is in most cases associated with installation of fear despite high technological adaptations in educational institutions.  The transition is eased by the development of a better communication which may be of much assistance towards attaining the goal of the organization (Bontrager, & Hossler, 2014).  The ability to apply a fresh enrollment management program requires much human resource as the main drive for its success.  In most cases, this is normally felt like a cultural transformation (Kalsbeek, 2013).

Moreover, for a successful enrollment management system implementation, the institution should start primarily with the basics and develop changes with time (Kalsbeek, 2013).  The implementation of a new SEM tends to be overwhelming and exciting and therefore, concentrating on several activities at the same time can limit the effectiveness capability since the program is characterized by changes.  New initiatives should be launched separately to enable the setting of the specified objectives to occur.  The last thing to be considered in the implementation is success celebration (Kalsbeek, 2013).  The success of the implementation may not be achieved at once and communication should be a constant thing which helps in maintaining focus. 

Conceptual Proposal for Student Enrollment Management Implementation

Most if not all cases, institutions are now implementing marketing plethora, retention, and recruitment strategies but a few of them are accomplishing this via the utilization of evidence-based metrics (Seidman, 2012). In consequence, the solutions to developing the outcomes of enrollment management are not performing much of the same. Factually, most of the existing approaches require abandonment so that they can permit the creation of institutional bandwidth to execute high-performance approaches and new approaches effectively.  It is important to remember that those strategies that are implemented with a well-developed plan generate desirable results. Enrollment management is described as the traditional job of setting and attaining institutional objectives through assembling the student’s body.  This involves advantageous and predetermined mix of all the students in regard to quality terms, diversity and number in all its structures (Kalsbeek, 2013).

  On the other hand, SEM is  a much broader , more vibrant job that starts with the understanding  of the surrounding  world, changes anticipation,  institutional goals and  mission probing,  necessary modification and the coordination of the wider  efforts of the campus such as  retention, tuition pricing,  recruitment, marketing,  reform of  the curriculum,  career counseling as well as financial aid.  Strategic enrollment management can be regarded as an added and a wider responsibility to the organization.  With the utilization of the institution mission, strategic plan and academic vision SEM focuses on the processes, policies and plan while simultaneously handling student’s graduation, recruitment, and retention (Kalsbeek, 2013).  SEM normally integrates strategies, planning as well as structures into enrollment management that is a formal committee in-charge of handling the institution’s operations.

In consideration of SEM approaches there is always a huge attempt of directly handling the matter tactically.  The most useful strategy is normally to establish the desired results.  Among the numerous outcomes that are present, the most famous one is the academic success of the students.  As stated by most of the recent studies, it can be regarded as an academic policy, curriculum, as well as the corresponding students, influence the persistence, tendency, and the implementation planning. The degree to which the problems are handled determines the general numbers to be enrolled as well as competitive positioning (Habley, Bloom, & Robbins, 2012).  Therefore, the focus on student’s success and academic programs normally provides a useful organizational principle for thinking primarily about the enrollment strategies. As institutions continuously engage in the complexities during their daily operations they are faced uncertainties of quantitative enrollment pressures and budget. It is thus, very easy for loss of the primary objective sight.  The primary perception point that is lost in most cases is the objective of enhancing student’s ability in meeting all their educational objectives.  Every university department makes different endeavors contributions in various ways.  Most of these functions are particularly held under the enrollment management formal structures. The roles, however, have to be directly connected and aligned with the entire mission of the institution.

The promotion of academic efficiency primarily starts during the recruitment process.  The primary objective held in conducting student’s recruitment is to establish the fitness within the institution.  This implies to the identification of the extent to which the student’s educational aims, academic readiness personal expectations and needs and career aspirations matches with what is being offered by the institution.  An effective enrollment program views the procedure of recruitment as the first phase of creating meaningful and long-term associations with the students to whom their fitness fits the high expectations of the institution (Kalsbeek, 2013).  The implementation of SEM is normally hindered by the presence of different assumption which creates inefficiency.  The  assumptions includes, faster fixing, acts as an organization’s sole  structure,  it leads to the loss of finances,  enhancement of marketing and admission operations and one of  the managing  function  that is different  from  the institution’s  mission and  academic plan (Kalsbeek, 2013).

The rising shifts  in the higher education access,  ethnic and gender classes  composition, the  general  number of those  attending  university as well as technological innovations changes  are  some  of the sweeping transformations  which  have  made  higher  education  to be an increasing  force   in the economic,  political  social and cultural  existence globally (Rentz, & MacKinnon, 2004).  While most of these transformations have turned out as positive, change is not an usual and easy occurrence in the enrollment management program.  Those involved normally fear and resist the transformations despite the propelling by the higher education on students generations ensuing.  An enrollment management adaptation in any university is no option and for success to be achieved change has to be implemented.

Student Enrollment Management Practices and Strategies

SEM can be implemented by an institution through the adoption of different strategies and practices.  First, the university may begin by setting realistic objectives of enrollment and not projections.  Goals setting are on average an abstract exercise (Forest, & Kinser, 2002).  Establishing those to enroll and the existing competition is crucial before setting future objectives. The goals need to be formulated and structured on justified grounds to ensure that maximum value is exploited from the program.

The second strategy of effective implementation of SEM into the university is the identification and securing of adequate resources which will help in meeting the stated objectives of enrollment (Forest, & Kinser, 2002).  This is a realistic goals setting section which serves through the identification of the needed resources in enhancing free flow and progress.  Barely, one is required to establish the cost of retaining and recruiting students, market competition and the connected price tag of the interested body of students.  Next, the implementation requires the development of an annual recruitment, marketing plan, a strategic revenue and enrollment plan for at least three up to five years. The developed goals should be visible in the action plan documents which acts as a form of reference.  The documents should be routinely and regularly referred and modified if the necessity arises (Forest, & Kinser, 2002).  Additionally, it is crucial to be a holder of a working plan chart that will offer the institution the plan of where it is currently situated and where it heads.

Moreover, an additional strategy involves the devotion of increased attention to the retention for student as one of the objectives as recruitment is being conducted (Forest, & Kinser, 2002).  The degree to which the enrollment should be raised if it is for instance 5 percent should be stated.  An additional case would involve raising the number of those enrolling by at least 2 percent while the student’s retention is increased by 3 percent.  The approach at times tends to be more effective on cost. However, it is crucial to note that retention normally necessitates more attention.  The ability to develop a system that can best identify the needs of the students is necessary (Rentz, & MacKinnon, 2004). This is more effective as it increases the number of those succeeding and graduating.

The recruitment database, as well as the inquiry pool, should be built on a specified design and not an option.  An enrollment management is best implemented by starting with a well-designed plan and a management of a database that should hold the appropriate shape and size. A specific conversion needs to be set to generate yield so that the inquiry pool can be managed more strategically (Forest, & Kinser, 2002). The marketing and the activities of recruitment should be racked continuously.  It is good to remember that something that holds accurate and reliable measurement can be accomplished at ease.  In this era, where there are limited resources for recruitment and marketing due to high competition, the institution cannot afford to place dollars as well as time into those activities that holds no measurable returns on the made investment (Habley, Bloom, & Robbins, 2012).  The procedure can be accomplished  through the identification of the metrics that requires  to be  racked,  identify ways in which the metrics  can  be tracked, offering guidance  to the  decisions that  are made  with  the utilization of  data and  also monitor the impact of efforts and offer  appropriate and justified  adjustments.  When an institution has set its solid recruitment and marketing metrics this allows easy track (Seidman, 2012). Therefore,  the tracks assists in benchmarking what is required from one year to another  and develop essential decisions on the allocation of approaches  and resources.

Precise qualification and grading of the prospective students is an additional strategy that is necessary in the implementation of SEM. The phenomenon has therefore enhanced the significance of qualification particularly since contact at the stage of application leaves the university institutions with limited time as well as space in maneuvering with the potential students (Seidman, 2012). It is currently essential more than ever to offer the chances of raising their hands to contact particularly on the webpage where the initial research begins.  The ability to change the secret shopper into a potential inquirer holds the capability of nurturing the association that can lead to enrollment. Predictive modeling is an additional strategy for shaping and qualifying the pool.  This is a statistical model that model that assesses the features of the students who have enrolled at the institutions then utilize the acquired data in the prediction of the likelihood of the potential students (Seidman, 2012).  The qualification has the possibility of increasing the recruitment strategic focus of the institution's strategic efforts in order to develop the recruitment resources allocation which increases efficiency.

A strategic communication flow should also be implemented.  With the rising communication changes and the utilization of technology, recruitment communication should always be effective (Forest, & Kinser, 2002). The form of communication is essential in developing better relations with others.  The capability of affording university education has currently emerged as the major hindrance to the access and enrollment to the institutions.  Perhaps there is no greater discourager  than setting too high fees for students.  The concern requires to be addressed accurately and immediately.  The  cost concern held  by both the students and the parents  can be  addressed through  placing  a  price calculator on the  application  web which  can calculate the  net price and worth.  The calculator has to be visible for it to be allocated easily and be custom is in reflection of the aids merit.  The provision of an estimate of price that does not involve all the eligible assistance may play pat in placing the university at a disadvantage. In addition awarding approaches are required in addressing the need as well as the willingness of payment.  Performing this effectively implies that there is a good understanding of the student’s population sensitivity on those to be recruited (Bontrager, & Hossler, 2014).  It is additionally significant to allocate students with career aids.  The recruitment of fresh students in an organization is way too expensive as compared to the cost of retaining them.  Front awarding loading holds the ability of placing students at a higher risk of dropping out. Enrollment  management is a concept  that is organizational  based  with  systematic  activities  that  are set  and designed  in order  to  give the education institutes more influence to enroll students (Rentz, & MacKinnon, 2004). One of the core concepts of SEM is the mission of the organization.  For the institution to implement the particular strategy the mission must be stated correctly to demonstrate the value of SEM (Rentz, & MacKinnon, 2004).

Conclusion

In an arguable view, the occurrence of effective management of enrollment necessitates fundamental components. These components include teamwork, leadership, comprehensive programming, competition knowledge accuracy, timing and the availability of data. It is essential to understand that the enrollment management procedure works above the reorganization of different functions.  Acquiring the actual benefits of the process implementation is mainly dependant on the integrated and strategic decisions along with the well-structured tasks integration. The enrollment management concept has currently emerged as an essential tool for institutions survival. Factually, enrollment management is a participative and a comprehensive program which holds strong connection with the academic activities. In other words, the enrollment management procedure offers an integrated and excellent framework for the decision making since it is focused and directs its activities towards the university’s mission. SEM is aimed at recruiting all the students in order to attain success by guiding them to become graduates and long-term achievers.

 

 

 

 

 

 

References

Bontrager, B., & In Hossler, D. (2014). Handbook of strategic enrollment management. John Wiley & Sons.

Forest, J. J. F., & Kinser, K. (2002). Higher education in the United States: An encyclopedia. Santa Barbara, Calif: ABC-CLIO.

Habley, W. R., Bloom, J. L., & Robbins, S. B. (2012). Increasing persistence: Research-based strategies for college student success. San Francisco, CA: Jossey-Bass.

Kalsbeek, D. H. (2013). Reframing Retention Strategy for Institutional Improvement, New Directions for Higher Education, Number 161. New York, NY: John Wiley & Sons.

Kramer, G. L., & Gardner, J. N. (2007). Fostering Student Success in the Campus Community. Hoboken: John Wiley & Sons.

Lott, J. L., & Antony, J. S. (2012). Multilevel modeling techniques and applications in institutional research. San Francisco: Jossey-Bass.

Seidman, A. (2012). College student retention: Formula for student success. Lanham, Md: Rowman & Littlefield Publishers.

Tripathi, P., & Mukerji, S. (2013). Marketing strategies for higher education institutions: Technological considerations and practices. Hershey, Pa: IGI Global (701 E. Chocolate Avenue, Hershey, Pennsylvania, 17033, USA.

Rentz, A. L., & MacKinnon, F. J. D. (2004). Rentz's student affairs practice in higher education. Springfield, Ill: C.C. Thomas.

Meinel, C., & Leifer, L. (2011). Design thinking: Understand - improve - apply. Berlin: Springer.

Dorst, K. (2015). Frame innovation: Create new thinking by design. MIT Press.

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Financial Analysis and Valuation Project – Corporate Valuation

Introduction

PepsiCo was formed through a merger of Frito-Lay and Pepsi-Cola in 1965 and has grown to be one of the largest multinational companies in the world. It is currently a global beverage and food leader and having net revenues of over $65 billion and product portfolio which comprises of 22 brands. These Brands generates over $ 1 billion each in terms of retail sales annually.  The company manufactures markets and even sells various salty, sweet and convenient snacks that are based on grains, and non-carbonated and carbonated foods and beverages. It has its operations in 200 nations outside Canada and U.S market. The vision of the company is Performance with Purpose, to deliver financial performance that is top-tier over the long-run though the integration of sustainability into its business strategy while imparting positively on the environment and the society at large (PepsiCo 2015 Annual Report, 5).  

The firm faces stiff competition from market leaders who comprises of Coca Cola, Kraft Foods and Dr. Pepper / Snapple. The financial statements for the year 2015 indicates that the company was doing fairly well as compared to competitors since free cash flow that excludes various items shows a strong  performance at $ 8.1 billion and the total over the three years ending in 2015 was over $ 24 billion . The performance was also made it possible for the company to raise its annualized dividend for 43rd year in 2015 consecutively. The firm was also able to return $ 9 billion to its shareholders by way of dividends and share purchases.  From the year 2012, the company has been able to return over $ 24 billion to shareholders in form of share purchases and dividends. However, the growth of Pepsi is at par with other main companies making soft-drink more so the Coca Cola (PepsiCo 2014 Annual Report, 5). PepsiCo has been losing its market share to Coca Cola it is still vulnerable to being exposed to carbonates that are slowly growing. The EBIT margin for the company is way below the other competitors as for the year 2015 an exception being in the North America where it draws most of its revenue.  Since the year 2013, the company has been trading at the same price earnings multiples with its main competitor Coca Cola with its revenues increasing by about 1.4 percent and EPS at 6.6 percent.  Currently, the firm has net income of $ 6,646 Million while Coca Cola net income is $ 7,214 which shows the PepsiCo has been trailing its major competitor in terms of revenue (PepsiCo 2014 Annual Report, 5).

However, the firm has internal strategic factors that serve as its main strengths which includes a product mix that is broad, strong brand image, extensive worldwide production and distributions networks.  Being among the successful global brand, the firm is able to attract customers to its products. The extensive product mix indicates the company’s increasing ability to reach a number of markets or segments through products such as Quaker and Frito-Lay brands. The global distribution and production networks help the firm to attain international growth through its expansion strategies.  The firms have various weaknesses which prevent its full international growth. The factors that hinders this growth includes low penetration in markets outside America’s, a business portfolio that is limited and  challenges in carbonated products to consumers who are health-conscious. By deriving around 70 percent of the revenue from North America and South America markets, it is an indication that the firm has yet to maximize potential revenues in other markets outside the Americans. However, there are various opportunities for the company to continue growing in terms of business diversification, forming alliance with complementary firms globally (PepsiCo 2014 Annual Report, 5).  Creation of such alliances will help the firm in increasing its presence in the global market and be able to penetrate the emerging markets so as to increase revenue generation. The firm experiences various threats especially from aggressive marketing, environmentalism and trends on healthy lifestyles.

Historical data analysis

PepsiCo shares traded range- bound for 2015, after improving steadily for the previous 3 years.  The sideways performance of the firm’s stock appears to have coincided with earnings underperformance for the same time. The company’s earnings from 2015 third quarter dropped to $ 533 million from the second quarter earnings of $1.98 billion, which represents a decline of over 70 percent.  At the time, it seemed unlikely that 2015 earnings would match the $6.51 billion in 2014 in the annual 2015 financial statements (Morningstar.1). The firm’s Price-earnings ratio for 2012 was at 17.11, 18.81 for 2013 and 21.59 for 2014. As for the year 2015, the prevailing figure stood at 28.27, according to earnings information for the period ending on September, 2015. This ratio seems to have been an overvaluation as compared to the price-earnings ratio of 21.59 for year ending 2014, at a time when the firm’s earnings were higher (Morningstar.1). This means that a failure for a rebound in 2016 to the level in 2014 may reduce the price-earnings ratio to about 20.

The operating margins for PepsiCo were between the ranges of 13.91 – 14. 61, for the last 5 years ending in 2015(Morningstar.1). The operating margin for the firm remained steady over that period, even though it trailed the competitors and the average in the industry. For the period ending September 2015, the margin dropped out of 12.64 percent, the previous range, in comparison with 17.11 percent for the entire industry. For 2016, the margin remained within the previous range with the company having no strong growth in sales, similar to the ones in preceding 3 years.  PepsiCo generated more sales from the lesser asset base due to diversity in its offerings of complementary products. In comparison, Coca Cola which is major competitor is over 30 percent bigger than PepsiCo in regard to total assets as for the year ended 2014, although its sales were around 70 percent of PepsiCo in 2014, as per the availed financial results. Even though the operating margin for the company was reducing and total earnings were smaller, PepsiCo was still able to achieve better returns on assets in 2014.  The returns on assets for 2015 stood at 45 percent which is an increase from 37 percent attained in 2014. The operating margin for 2015 at the same time stood at 14 percent which a decline from 13 percent in 2014. The profit margin for 2015 was 9 percent, slight drop from 2014 which was 10 percent.  This illustrates the company continued to experience a decline in the earnings ratios and profitability ratios which does not indicate a good prospective for future performance in relation to the performance in the entire market.

 

Forecast future CFs

PepsiCo market share is expected to increase to 14.0 percent from about 12.7 percent by the end of 5 years, driven by the efforts to increase diversification in products targeting the health conscious segment of the market. This is in line with increasing with expanding global beverage market especially in the emerging economies.  The company’s revenue is expected to surpass 16.03bn, earned in the 3rd quarter of 2016.

The end of 2016 trading period saw PepsiCo share price end at $ 104.63 with shareholders returns being about 8 percent (Morningstar.1). The company’s performance was fair in comparison with the industry performance and in fact, it outperformed its main competitor Coca Cola. This is in part due to the diversification of its snack food products that its rivals do not have. With a lower dividend yield than its rivals, the company’s performance seems not satisfactory to shareholders.  The shares seem to have doubled off in line with its component rival – Coca Cola – at Dow.  This would be a call for the firm to break apart the snack foods and beverage section of its business but PepsiCo continue to do better in terms of financial and growth aspects while it remains diversified.

On the basis of the past performance, the company can be expected to grow it earnings at 7.41 percent annual average rate. For the year 2017, the increase in forecast earnings can be 5.0.1 percent above last year’s earnings and expected earnings growth of about 7.7 percent over earnings for casted for 2017. The quarterly reports for 2016 showed good performance in midst of various challenges in the macroeconomic environment that result from increased volatility in emerging economies and an increasingly sluggish demand for consumer products in the developed economies. The expected growth can be attributed to the company’s strengthening presence in emerging economies like Asia, Africa and Middle East whose growth is very promising.  Moreover, the prediction aligns to the ICEF Monitor, whose forecasts are three times than that of developed economies, so that cumulative economic growth globally is at 65 percent by 20120

Estimated discount rate

WACC = rD(1-TC)[Weight for Debt] + rP[Weight for Preferred Stock] + rE[Weight for Common Stock]

The risk free rate is placed at 3.01%

As per the financial statement, the capital structures includes:  30.28% - common stock, 0.10% - preferred stock and 69.63 % as debt. The preference stock looks quite negligible. Weighted-average interest rate (cost of capital) =69.63 %( 1‐26.08%) +30.28%*3.0475%

WACC = 52.39%

Equity at fair value = 1,434,183,120 × $104.03 = $149,198,069,973.60

Weighted-average interest rate (cost of capital) = 100 × 1,050/ 33,284 = 3.16%

Expected rate of return = 7.94 percent

Average effective income tax rate= 25.38%

 

 

Estimated firm’s value and stock price

 

5yrs

10 yrs

Revenue growth

2.9

9.50

EBITDA

o.8

5.5

EBIT

1.8

5.8

EPS

0.1

4.0

CF growth

11.2

8.5

 

Works cited

Pepsico, Inc. (PEP). Available at: https://finance.yahoo.com/quote/PEP?ltr=1

Morningstar. PepsiCo Inc. Available at: http://financials.morningstar.com/cash-flow/cf.html?t=PEP

PepsiCo Annual Report. 2015 Performance Highlights.

PepsiCo Annual Report.2014

 

 

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Case Study: Daimler/BMW

Q1

In the changing world, people have changed the view they have about owning a car as a status symbol. In the current day, it is more about convenience with is associated with it rather than a symbol of being rich. With this convenience, development car sharing has allowed individuals to share cars without spending a huge amount on it. Convenience comes with flexibility which is rented as per the needs and wants of the user (Lamb, Hair & McDaniel, 2013). A significant amount is saved in relation to maintenance cost which would result in inconvenience. Social and cultural factors have also brought a change as the basic need of the people has continued to change. Mobility is a clear indication that there are progress and development thus creating a new market. These factors have changed the way people approach a car thus creating a new market segment (Lamb, Hair & McDaniel, 2013).

Q2

The car sharing program has brought values to drivers as they form the larger group in the car market. They are well educated, energetic and well off are particularly concerned with pollution as well as sustainability in which the car sharing target market is. Major cities in the world have become crowded as there is a high reliance on private vehicles. As a result parking lots and congestions are a nightmare in these cities which in return cause massive air pollution (Lamb, Hair & McDaniel, 2013).

Q3 

Automakers have developed components that cater to the consumer’s lifestyle through the car sharing programs such as flexibility which is a driving force in the car market segment. Users can travel at their own time conveniently at affordable prices. The start-stop technology has been widely used by the automakers as it has increased the suitability of urban driving (Lamb, Hair & McDaniel, 2013).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reference

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

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Reflection on my internship

    Internships with the practicum are quite essential in one’s career as it gives one an opportunity to learn more through practice. However, during this period challenges are not an exception as they are part of the internship period and they are not entirely there to make us fail but to make us, even more, stronger and especially in our profession.

    I personally encountered some challenges during my practicum period. At the onset of the practicum all seemed to be so different and the anxiety that I had made me find the roles and the responsibilities bestowed upon me an overwhelming. Hence I regretted every single day of the first month on the reasons as to why I pursued health care and life sciences. It was quite challenging as we used to be called in for either very early shifts or rather night shifts. Managing time, therefore, was a problem since I had to work part time so as to be able to raise some cash for my maintenance. Other days I would get so sleepy at work following the sleepless nights. I knew that this would affect my overall performance and thus I had to strike a balance between all sectors of my life. As time went on I started becoming familiar with the organization's operations and work schedule and close relationship with my supervisor started to build up. This changed my attitude towards my profession and instead of taking it as a heavy task, it becomes an interesting environment for learning.

    As a fresh graduate from the institution, my perception of the profession was so limited but with the practicum opportunity, I got a chance to broaden my perception through the diverse experiences. Through the passion that has developed over time in the internship duration I was able to synthesize the learning from class setting into proficiency career practice and thus enabling me to resolve the numerous public health issues in our health care services.

    The extent to which I was able to practice my theoretical studies into practicality was extremely large hence allowing me to implement the skills in the various consequential issues and structures facing the public. This, therefore, called for additional effort in the internship role and responsibilities hence allowing for expansion of leadership qualities and excellence.

    The institution required me to be enrolled in a clinical institution which is similar to the apprentice mechanism. Teamwork was paramount where we all shared a mutual goal and understanding. Great support and mentorship were given by my supervisor. I studied common crises that faced the public through my engagement in simulation training. Hence I acquired crisis management skills and public relation skills as I engaged in public health education.

    The practicum experience is one of a lifetime and it has really played a bigger role in impacting my life positively as it has enhanced me to improve on my personal philosophies and value addition. There is a huge difference between the person I was when I enrolled in the program and the person that I came out as from the internship program.

    My future prospects have been transformed as I know believe in perfecting my skills through furthering my studies as I am confident that I can make a difference in the field of healthcare and life sciences. My next big step is to enroll for a master’s level and later a doctorate level in health care.

 

 

 

573 Words  2 Pages

Personal statement

The continued growth of data available is changing the way professionals in the business filed such as accountants, marketers and managers are working. The transformation is also impacting on how investors are carrying out business operations in market that is becoming more international due to globalization. As the Chinese businesses access more data arising from international business operation, there is a need for increased expertise in business analytics so that the Chinese companies operating in the international market are able to obtain actionable insights from such information. The Chinese companies have a strong grip in the exportation of products into the international market while at the same time; it is a top imports destination for products such as electronic equipment, raw materials and oil.  While e-commerce and advertising are areas where big data has been used intensely, the Chinese firms are expanding their usage. Chinese international companies are using more data in their online transaction and shopping which determines the competitiveness of the firms in the global market.

M.S. in Business Analytics offers a strong foundation in the field of data analytics by incorporating a broad knowledge on risk management, information system, operations research, applied statistics and even decision theory. This offers an opportunity for business decision making that is data driven in both private and public sectors.  In the short-term , the course offers a good basis for acquiring necessary knowledge and skills  on ways of integrating business data into analysis , business planning and making decisions ,aspects which are important for maintaining competitive advantage of a firm. While training as a manager is important, there is a growing demand for managers to become data analysis masters, as demand for data roles continue grow in management. The diverse knowledge on business analytics and its mastery will be very helpful in propelling my professional forward in a changing job market whose liquidity is increasing rapidly. In the long-run, the program will offer wide range of knowledge which will direct my professional towards constant growth in line with a business environment that is technologically changing constantly.  As technology is changing constantly, the way business activities are carried out also change, as a need grows for businesses to keep up with collected data as fast as it is obtain. This program will offer an intensive experience while developing business analysts well versed with technological environment. As a business analyst, the program will arm me with various skills needed in the understanding, managing and making use of large amount of data in the business environment.  The program will also impart me with knowledge on how to turn abstract data into information that can be deemed meaningful in the prediction of consumer behavior, forecasting of revenue or expenses for almost all business models and across all the industries.

The program will further define my career objectives, since it will equip me with the right skills and knowledge to inform my managerial roles in small and large organizations.  Such knowledge is essential in determining the appropriate course of action to be taken in achieving the financial, strategic and operational goals set and maintain competitiveness. For further growth in my professions, I will need to acquire the methodical tactics and intellectual capital while dealing with the application of big data with a unique perspective and keen understanding. This will make it possible to position myself in a career path that is progressive and one where development is possible.  The program will also bring me closer to other professionals who are highly qualified and such individuals can assist in the process of growth. Coming into contacts with individuals with great understanding of computer programming and statistics will also widen my experience in the field of business statistics.

 

621 Words  2 Pages

Mutual funds

Introduction

The paper includes a discussion on mutual funds and their characteristics, the various types of bond and stock mutual funds and the features of money market funds. A discussion on mutual funds performance in the stock market is also explored.

There many types of mutual funds and every mutual fund have different rewards and risks. Basically for the mutual funds the greater the potential return, the greater the risk or loss. Some funds have less risk than others, they have some risk and it is not possible for one to diversify all risk. Every fund has an investment projective that is predetermined and which describes the assets of the funds, investment area and strategies for investment. Basically, there are three kinds of mutual funds which include equity funds, money markets and fixed-income funds (Madura, 2016). All these funds are aimed at different investment areas and objectives.

Money market funds comprises of debt instruments that are short-term and especially treasury bills, government bonds, certificates of deposit and commercial paper. They don’t provide high returns but the investor does not have to worry about losing their principal (U.S. Securities And Exchange Commission, n.d).  

Fixed income / bond income funds: they buy investments that have fixed return rates such as government bonds, corporate bonds that have high yields and corporate bonds. They aim of investment is to have the fund receiving money regularly and especially through interest earned. Corporate bond funds have greater risk than investment-grade and government bonds (Laopodis , 2012).

Equity funds invest in various stocks with an aim of growing faster than fixed income and money market funds and hence there is a higher risk of losing money. One can choose from various kinds of equity funds and these include those that specialize on income funds, growth stocks, and small-cap, mid- cap and large-cap stocks or a combination of all of them (Laopodis , 2012).

Balanced funds invest in various equities and securities with fixed income. They aim at balancing the objective of higher returns achievement against the risk of money loss and many of them follow a formula in splitting money among various investment types. They are more risky than funds with fixed income and are less risky than equity funds(Laopodis , 2012).

Index funds aim at tracking a specific index performance and the mutual fund value will increase or decrease as the index increases or decreases. They are normally less costly than mutual funds that are actively managed since the portfolio manager need not do much research or come up with as many decisions of investment. An investor in this fund perceives that many of the managers cannot neat the market (Laopodis, 2012). The index fund resembles the returns in the market and offers benefits to the investors as low fees.

Specialty funds aim at specialized mandates like real estate, investments that are socially responsible or commodities. They comprise of fund which are known to be popular but not necessarily belonging to other described categories. They forego wide diversification to focus on a specific sector of the economy. Sector funds are aimed at a particular economic sector such as technology, health or financial sectors and they are normally very risky. There is a high likelihood of greater gains even if the sector the funds are volatile. Regional funds focus on a certain area of the world and have an advantage in making it easier to purchase stock in markets abroad, which is normally difficult to do (Laopodis , 2012).

Characteristics of money market funds

These funds have high level of liquidity given that they are fixed-income securities having short-term maturity of one year or less. Their degree of safety is relatively high because of high credit ratings of the issuers who include the government and corporations. In addition, these funds have discount pricing, in that their issuance is done at a discount to face value (U.S. Securities And Exchange Commission, n.d).

The best performing mutual fund is JM Smucker Co with a YTD return of 0.56 percent with net asset value of 366.73 million as per January 2017. The range of five year return for the fund is 70.50-157.31. The ranking on this funds changes frequently due to change in investor’s portfolio.                   V.              There are various constraints that can be imposed in the process of selecting. These constraints includes the length of the funds, whether long-term or short-term, the issuer of the funds and the ranking of the past performance of the funds. The tenure of the fund manager is another constraint that can determine the selection of the fund.  The ratings of the funds in terms of the rates of return and risk are also a constraint that can be considered while selecting the funds. In addition, the year-to-date yield and the kind of funds to be used and the liquidity of the investor determine the selection of funds (Madura, 2016).  The liquidity of the investor determines the initial level of investment to be undertaken by the investor. The time constraint depends on the goals of the investor whether they desire long-term or short-term investments. It also impacts on the variety of assets in which one should invest in given that the less time scope, the less risk or volatility that can be tolerated by the investor in their portfolio (Madura, 2016).  In addition, liquidity constraint can also impact on the asset to dispose of in order to buy a new investment.                 VI.             

The MVC’s price and its trend does not compare with  S&P stock index movement which is shown by the decrease in the price for MVC while the price movements at S&P tends to have an upward movement. While the MVC’s prices have been decreasing since June, 2014 the stock index movement at S&P shows a relative increment during the same period.

Interest rate 1.9

Return of MVC (Q308) =   18-59 -15.95 /15.59 = 0.17 percent

Change of interest (Q308) = 4.04- 1.67/1.67 = 1.42 percent

 

There is a negative relationship between the return for the MVC stock and the movement on the interest rates. In case of treasury bonds, they have coupon rates that are close to the interest rates prevailing in the market. They normally have an inverse relationship, because when the rate of interest goes up, the return on such investment goes down. As the rates changes, a coupon rate that is fixed   attracts fewer investors who are ready to pay more or less for the same.  These investors generally compare the returns they could have received from current investments and what they could receive from investing somewhere else in the market (Laopodis , 2012). This shows that the rate if interest rates prevailing in the market influences the returns an investor will receive from investing in such bonds.

 Conclusion

There are different types of mutual funds and depend on the kind of selection made by the investor. Every mutual fund has different risks and returns and the higher the risk potential the higher return potential. Interest rates are inversely related to rates of returns in stock market.

References

Madura, Jeff. (2016).Financial Markets and Institutions. Cengage Learning.

Laopodis , N.(2012).Understanding Investments: Theories and Strategies. Routledge

U.S. SECURITIES AND EXCHANGE COMMISSION(n.d). Mutual Funds and Exchange-

Traded Funds (ETFs). Retrieved from: https://www.sec.gov/investor/pubs/sec-guide-to-mutual-funds.pdf

 

 

 

1229 Words  4 Pages

Global Market Environments

The National Waste Policy indicates a need for waste management approach in Australia that efficient coherent and environmentally responsible. It sets a direction for resource recovery and waste management. The policy on Human Rights and Anti-discrimination provides that the Australian government has an obligation Under the International Law to protect, respect and fulfill all human rights.

E-commerce or electronic commerce refers to a business model that involves carrying out transactions over the electronic network and typically the internet. It involves buying and selling of products electronically aided by certain software (Sun & Finnie, 2004). 

 

B2B refers to the kind of ecommerce that involves business transaction between business organizations as manufactures to distributers or wholesalers to their retailers. B2C involves a business selling its products or services electronically to the general public and can use a catalog which utilizes shopping cart software (Sun & Finnie, 2004). C2B involves a consumer posting a project online with a given budget and firms review the requirements of the project and bid on it and after reviewing the bids ,  the consumer select the firm to complete this project. C2C involves a consumer places products on a site which offers free classifies , forums and auctions to other consumers .B2G involves a transaction where a business offers products or services to the government(Sun & Finnie, 2004) .

Brick and mortar involves a business having a physical presence in terms of stores which are made from physical materials like bricks and mortars and customers have to go to that place to so as to see, assess and buy a product. Click and Mortar on the other hand involves a business model which consist of both offline and online operations which normally (Sun & Finnie, 2004). In this model there is both a physical sore and a website.

The global ecommerce companies with presence in Australia include eBay, Amazon and Gumtree

Three ecommerce technologies that provide a platform for global online enterprises includes Shopify, Bigcommerce and FastSpring

3.       

 

 

Australian Consumer Law (ACL), 2011

While working with customers, selling goods or providing services, a business has to consider the obligations it has on other parties.

Privacy Act 1988

This act regulates how a business should handle personal information about its customers or clients by setting out standards

The Work Health and Safety Regulation 2011

 

This acts provide an obligation for a firm o ensure health and safety of employees carrying out marketing activities, customers, suppliers and visitors

The Environmental Protection and Biodiversity Conservation Act

It covers the evaluation and approval concerns both cultural and environment that arises from marketing activities of a firm.

Workplace Relations Act 1996

It influences on the manner in which industrial dispute should be settled through employees minimum entitlements and negotiations of employees 

Fair Work Act 2009 (Cth)

The employees working in the marketing department should not be subjected to any harassment, discrimination or bullying. 

Disability Discrimination Act 1992

 

A person seeking to be involved in marketing activities should not be denied an equal opportunity on the basis of their disability.

The Pacific Agreement on Closer Economic Relations (PACER) Plus

Offers opportunities for marketers to exploit opportunities arising from better regional economic and trade integration

The Singapore-Australia Free Trade Agreement (SAFTA)

It eliminates tariffs and thereby increase the market access for services exporters in Australia

The China-Australia Free Trade Agreement (ChAFTA)

It basically offers improved protection and access for Australian businesses in the Chinese market

4.       

The function of OECD is to promote various policies aimed at improving the economic well-being of the populations in the world. The organization publishes economic reports, analyses and then forecasts the economic development and growth in the entire world economies. The organization makes various recommendations on policies that are designed to enhance growth while considering the environmental issues. It also restores confidence in the world markets and those institutions that keep them functioning.  It fosters global corporation between countries while supporting new sources of economic growth through development strategies and innovation. The member states promote democracy in order to enhance free market economies (OECD, 2016).

Task 1.1

Establishment of global value chains is a major trade pattern involving trade flows or intermediary goods trading. This may affect the A& A Coffee in terms of the competition it will have to counter against multinationals that position their products in the Asia – Pacific markets. There is domination of trade by relatively few nations who are mostly the emerging Asian economies and the developed countries. A& A has to bear with the various trading agreements between the developed countries and Asia Pacific region since they may impact on the manner in which it carries out trade in the region. A shift of trade from major flows between Europe and US, to major flows between Asia and US has informed another trade pattern.  This has lead to emergence of trade blocks which outlines how business is to be carried out among these countries.  Policies that spell out removal of tariffs can impact greatly on the A&A Coffee. Other patterns which can impact on the business expansions for this firm include increased online trading and marketing and an increase in mergers and acquisition between major international and local firms.

The role of governments in  Asia pacific regions in determining or facilitating the essential requirements for ecommerce development like availing ICT infrastructure can affect the way  A& A  Coffee carries out its online operations or online transactions.

Task 1.2

Accessibility – since internet is a main source of information, an e-commerce site can be an important tool where A&A can easily communicate with customers about the firm’s products, their usability and the manner of delivery.

Security, fraud and hacking of information can be a major hindrance to the success of a business (Sun & Finnie, 2004).  . For A&A to succeed, it has to consider information security against fraudulent behavior which is a major concern for e-commerce users.

A growing use of cashless transaction such as debt cards and other online payments methods should inform business to adopt such changes. A & A has to embrace such payment methods in order to ease transactions and payment procedures for Asia –pacific clients.

Growth in global mobile use and hence mobile commerce is another factor that is driving online market through mobile internet. In the Asia –Pacific region, A&A has to tap into such technology to remain competitive.

Task 1.3

 South Korea

Japan

China

 

The South Korea presents the easiest entry among these markets due to the fact that it is a developed democracy which means that there are fewer risks in the business environment. Moreover, the country is more dynamic as compared to Japan, is more entrepreneurial and its corporate culture is very aggressive. Japan marker consist of very demanding customers and due to its big economy , a firm willing to expand to Japan has to have substantial investments. China is the hardest market for entry given the different make-up and nature of markets in the country and this calls for careful selection of business location.

 

Task 1.4

International trade agreements and policies provide firms with an opportunity to market a wide variety of goods and services which can stretch across all sectors of a given economy. Another opportunity provided is an outlet to sell the additional production after the flooding of the local markets with their goods. In addition, such agreements and policies for companies to invest further research and development so that improve existing products or introduce new products into the new created markets. Therefore, A&A Coffee Company can access wider market for goods and services and sell any of the excess products to new markets. 

Task 1.5

Despite China having a protectionist policy on its markets, it is the best country in Asia-Pacific region to invest in. this is because China’s economy is growing at high rate which is driven by the sheer size of the market due to high population. The political environment in the country is stable as compared to other regional countries. The population is increasingly being made up of middle class who have a high purchasing power. The government is providing opportunities for private ventures and the trade agreements and policies it has adopted acts as a commitment to offering such business opportunities to A&A Coffee for expansion.

Task 2.1

Economic factors: these involve the consumer purchase intention and behavior which determines the context of marketing and advertising in a given country and a firm has to adapt the right approach in a region it aims at penetrating. Another aspect is competitiveness of marketing price which may impact a certain region depending on consumer’s sensitivity to price (Dlabay & scott, 2010).

Cultural factors: these consist of demographics, tradition and cultural practices that influence the communication and negotiation styles adopted across different countries. The cultural sensitivity is important to international firms since it influences marketing tactics to be adopted in a given culture. A barrier to communication due to different languages affects the marketing and advertising techniques and a firm will have to adapt different strategies in different countries depending on their culture. The sensitivity of various cultures may determine the level of negotiation for businesses since cultural analysis of products benefits between regions can determine how the negotiation will take place (Dlabay & scott, 2010).

Social factors : these involves the  manner of interactions between customers in a given region and businesses and this can result to further marketing tactics and messages that can be developed by international firm in new business environment. If customers fail to identify with the perceived benefits of product, it is possible that they will not buy it (Dlabay & scott, 2010).

Political factors: these include the policies and laws instituted by the governments in the region which affect the desire of a firm to expand operations in given country. Policies on tax and interest rates and regulations on marketing campaigns determine the decisions made by management and how they are implemented in a given country (Dlabay & scott, 2010).

Task 2.2

Market trends

Demographic trends – there has been increased attention paid to ensure various offers meets the demands of a certain demographic segments and considers the aging population and diverse population for countries such as China. Changing lifestyle issues has led to consumers becoming more demanding so that they are seeking convenience products solutions such as foods and which represent an advance on traditional foods that are processed. There is also rising demand for quality products and health issues. The retail trends are becoming more powerful and diverse where convenience stores are making headway and growing stronger in areas such as rail stations and airports (Dlabay & scott, 2010).

 

Task 2.3

Emerging Businesses and e-commerce markets

Among the emerging businesses includes offering foods services that are purely made of plants and with as less sugar as possible. This is due to increased health concern being raised on animal based foods. Another opportunity is the increased health candy sales, which are based on natural ingredients, healthy favors and the inclusion of natural vitamins.  This is being driven by the need to keep children from eating junk food.  The sale of vegetarian foods presents an opportunity for A&A Coffee to expand into the foreign market while differentiating it products from other unhealthy products. The firm can also turn to the health candy growing market to increase revenues in such foreign markets. The firm can expand into UAE and India which are emerging e-commerce strongholds (Marceux, 2015). 

Task 3.1

Risk factors

Political risk- this concerns the political stability in China, and this involves the country’s unbalanced nature of instituted reforms and governments unsure approach towards liberalization of economy and free market operations. This risk also involve the restrictions on economy and labor mobility, systems for public and tax expenditure and lack of transparency in setting up policy making process, accounting standards and independence for business operations (Prasad, 2016).

The financial risks which can be attributed to China involve liberalization of capital account, possible surge in capital outflows that can destabilize the country’s financial system and overall economy. The other aspect includes banking system stability, stock market swings and a big shadow system of banking. Another concern is the country’s debt burden that can be an impending crisis (Prasad, 2016).  

The legal risks – involve considerations of whether the market is open to an investor and the required licenses for a firm to export products on various markets such as the EU. This also involves various technical regulations and standards, some of which are known not to align with international standards that have been established (Prasad, 2016)..

The Chinese ICT and telecommunication infrastructure determines the manner in which marketing and advertising activities can be carried out in China and related regulations.  It also involves the availability of ICT infrastructure that can allow carrying out business transactions online and accessing the online market place that best suits a firm’s products and services in China (Prasad, 2016)..

Legal and regulatory requirements involve various laws that have been instituted and which must be adhered to by firms expanding into these markets. These factors relates to the tax policies , economic regulations , labour laws or general laws that direct the operations of business activities in the country(Fogel, 2010).

Cultural factors: China has the largest population in the world and this comes with many ethnic and language groups with diverse way of live. A firm intending to expand its operations into this country must be sensitive to the cultural values and ways of lives and respect the various systems which protect this diversity (Fogel, 2010).

Trade barriers: the risk of trade barriers between China and Australia has been greatly eliminated following the ChAFTA which allowed for duty-free entry or preferential rates to the Australian exporters. This has opened up the market for exporters especially for the food products industry, who can easily extend their operations into this huge and diverse market (Fogel, 2010).

 

tragic

Critical

Marginal

negligible

Rare

severe

Severe

High

High

Unlikely

Severe

High

High

Moderate

Possible

severe

High

Moderate

Low

Likely  

Severe

Moderate

Low

Low

certain

Severe

Moderate

Low

Low

 

 

Tragic

critical

Marginal

negligible

Rare

 

 

Trade barriers:

 

Unlikely

 

 

 

 

Possible

 

financial risks

legal risks

ICT and telecommunication infrastructure

 

Likely

 

Political risk

 

 

Certain

 

Cultural factors

Legal and regulatory requirements

 

 

 

Chinese developments are not insulated from the global economic shocks that affect other countries. The recent financial crises have affected the growth of Chinese economy greatly, due to a sharp decline in the foreign investments and exports.  Such crisis leaves China requiring big fiscal stimulus for it sustain the required rate of growth and economic development, so as to absorb labour force in the midst of international weakness in global economy. However, where the global financial systems are strong, the Chinese economy would respond positively due to increased exports and foreign investments by firms in the local and foreign markets (CPDS, 2016).

 

Task 4.1

Offering  vegetarian based foods products

Major   marketing opportunity for A&A, where it can sensitize on need to consume its natural food products for health assurance.

health candy sales

The firm can also turn to the health candy growing market to increase revenues in such foreign markets

Online sales – ecommerce

A & A has to embrace such payment methods in order to ease transactions and payment procedures for Asia –pacific clients

 

Task 4.2

Offering  vegetarian based foods products

This opportunity would provide an opportunity to serve a variety of customers and hence increase revenue

health candy sales

This can increase the customer base of the firm that wishes to abstain from unhealthy lifestyles

Online sales – ecommerce

The use of online marketing opportunity can help to capture the attention of a wide customer base

 

 

                                                                                                                                

 

Task 4.3

Projected cost in-Million AUD $

 

Opportunity

Optimistic cost estimate

Most likely

Pessimistic cost estimate

Estimated percentage revenue

Revenue estimate- based on most likely cost 

Offering  vegetarian based foods products

35

40

50

15

46

health candy sales

100

1 20

130

15

138

Online sales – ecommerce

220

250

270

15

310.5

 

 

 

 

 

 

 

In this analysis, the most likely cost may fail to be the value in the estimate. Thus, any results derived from the risks may not result from estimated cost base.

 

 

 ROI

Offering  vegetarian based foods products

15 %

health candy sales

15 %

Online sales – ecommerce

15%

 

 

 

Competitor analysis

Dehong Hogood Coffee Co. Ltd offer coffee powder and exports it globally and has the largest production of the product. It offers different types of instant coffee and would present a stiff competition for A&A Coffee.

Hainan Fuwang Industrial Co., Ltd. – the company offers various selection of products part of which includes  low sugar coffee which can present stiff competition for A&A Coffee healthy product s.

 

Conclusion

The marketing of food products based on plants is an opportunity that can is a huge opportunity which can exploited by A&A company in a market which is increasingly becoming health conscious. This may face little political or economic risk given the government efforts to promote healthy lifestyles. the sale of healthy candy’s is one unexploited opportunity , and which can provide less risks in marketing the need for people more so children to consume health products instead of junk food. Of more importance is the need for A&A Company to consider embracing e-commerce in selling its products in order to minimize risks and expand on its revenue.

References

Sun, Z., & Finnie, G. R. (2004). Intelligent techniques in e-commerce: A case based reasoning perspective. Berlin [u.a.: Springer.

Dlabay, L. R., & Scott, J. C. (2010). International business. Mason, Ohio: South-Western.

Gartner,(2016).The Gartner CRM Vendor Guide. Retrieved from: http://mindgate.in/wp-content/uploads/pdf/The_Gartner_CRM_Vendor_and%20_Digital_Commerce_Vendor_Guide_2016.pdf

OECD,(2016).The Organisation for Economic Co-operation and Development (OECD) mission: http://www.oecd.org/about/

 

Fogel, G. (2010).Business Environment in China:  Economic, Political, and Cultural Factors. Retrieved: https://www.usi.edu/media/3654697/Business-Environment-China.pdf

 

Marceux,P.(2015).Top 5 Emerging E-Commerce Markets in 2015. Retrieved from: http://blog.euromonitor.com/2015/07/top-5-emerging-e-commerce-markets-in-2015.html Tice,C.(2015).Why Entrepreneurs Are Betting On These 10 Emerging Food Trends. Retrieved from: http://www.forbes.com/sites/caroltice/2015/01/30/why-entrepreneurs-are-betting-on-these-10-emerging-food-trends/#149a5fa657bf Prasad, E.(2016).China’s economy and financial markets: Reforms and risks. Retrieved from: https://www.brookings.edu/testimonies/chinas-economy-and-financial-markets-reforms-and-risks/

Depart of Foreign Affairs and Trade(n.d).Free Trade Agreement. http://dfat.gov.au/trade/agreements/chafta/pages/australia-china-fta.aspx

 

CPDS, (2016). China’s Development: Assessing the Implications. Retrieved from: http://cpds.apana.org.au/Teams/Articles/china_as_economic_engine.htm

Dehong Hogood Coffee Co., Ltd. Retrieved from: https://www.linkedin.com/company/dehong-hogood-coffee-co-ltd-

 

Hainan Fuwang Industrial Co., Ltd. Retrieved from: http://www.sinofuwang.com/Contact/index.asp

 

 

 

kkna's Development: Assessing the Implications

 

 

 

 

 

 

3090 Words  11 Pages

Cultural Considerations in Business

In order for a business to be able to pick up in a certain geographical region, the stake holders need to understand the cultural dictates of that area. This consequently helps in making sure that the business is able to comply with the cultural dictates of the area and thus attracting customers to buy such products (James, n.p). For instance, in a Muslim dominated area, the business should be able to work according to the dictates of the Islamic laws, thus making the Muslims to feel at ease and thus attracting them into purchasing the product.

On the other hand, failure to understand and observe the cultural dictates by a business often leads to poor performance of the business (James, n.p). This is consequently because most people will feel out of place when purchasing from such a business simply because the business does not comply with the dictates of their culture. Since the culture affects the normal thinking of human beings, it is therefore required for a business to observe cultural dictates of a certain people and in so doing making the business to attract more customers.

The society consequently affects the behaviours of people, since it shapes the way a person conducts his or her day to day activities. For instance, a child born in a society which does not allow ladies to undertake education grows up knowing that education is meant for men (William, n.p). This therefore corrupts his or her behaviour and thus making it hard for the girl to be able to understand the significance of education to the girl child.

The society can therefore determine the success or failure of an organization according to the way certain people are viewed by it. Those who are seen to be feminine as compared to others, cannot be able to perform better simply because of the feeling that they are feminine (William, n.p). This therefore limits them from striving since they know they cannot be able to make it. On the other hand, those who are perceived to be masculine by the society can be able to make it because of the feeling of strength that they have.

Work Cited

James. M. Jones. Cultural Psychology of African Americans: Annenberg Learner. http://www.learner.org/series/discoveringpsychology/26/e26expand.html. 2011 Print.

William, Peters. A Class Divided: Frontline. http://www.pbs.org/wgbh/frontline/film/class-divided/. 1985 Print.

 

 

 

397 Words  1 Pages

Full Performance Strategy Analysis

Performance Management Process Analysis

The presence of an analysis of performance  in the part of any  business  serves  as a qualitative  and  also a quantitative  scale that  evaluates the general  performance of  the  employees within the particular organization as well as  leadership when comparing  to the corporation’s general  aims (Armstrong, & Armstrong, 2009).  There are different appraisal strategies and administration tactics that a corporation can utilize in evaluating their employees within numerous features, attributes as well as the general skills because this directly relates to the efficiency of the corporation.  In the general nature  the  overall purpose  of conducting the procedure  of performance management is to ensure that  all the employees in the different  stages  are held thus ensuring that the  accountability  of  the  corporations  success and weaknesses of the corporation are considered directly (Armstrong, & Armstrong, 2009).  In addition this   gives  an  assessment  of  effects and  performance in regard to how the  corporation’s  employees and standards  operate  for or against one another.  Wal-Mart is considered  as a leading  retailing multinational company situated in America and thus in order to maintain  its  competitiveness in the industry, it is essential  that  performance  strategy  management is conducted  in a constant nature.

Performance Management Process

The system of performance management permits a business to generally decrease it general efficiency via the summary of all the section.  These involves  controlling the conduct of workers,  decreasing the  efforts  of workers as well as minimizing the downtown that can be regarded as unproductive which is the central objective  of performance management (Axson, 2013).  In fact  the  procedure  of  performance management can be termed  as a  complete  factors complexity  which influences, influences and maintains  task performance productivity.  Ensuring that all the workers are accomplishing their tasks is no longer a successful strategy of conducting performance management.  Performance management in general assists in understanding the existing performance state of the employees, the desired results as well as monitoring the activities and measures involved.  This is the management of the available human capital in an organization (Axson, 2013). Wal-Mart holds a strategy that is comparable to its general services, which are increasing consumers and workers satisfaction, enhancing customer service and growing the general revenue with the following three years.  In addition this means that the performance system of management should be concise, simple and efficient to its tasks.  The corporation should thus communicate this plan to all the workers as well as ensure there is a complete understanding. 

Performance management can be described as a shared acknowledgement in regard to the contributions of individuals towards the objectives of the corporation (Axson, 2013).  A successful process of performance management as well as appraisal is mainly objected on the alignment of the workforce, through the building of competencies growth, developing the general performance of employees, development and a positive influence of the findings. The process of performance management is crucial in the generation of a corporation that holds high standards of performance as well the support of the development of workers (Axson, 2013).

 

 

 

Performance Management Process Flowchart

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Strategy and Analysis

The functioning of the process of performance strategy tends to be successful only if the entire plan directly correlates with the major objectives of Wal-Mart.  It is crucial to understand  that despite the fact  that Wal-Mart remains  competitive  and  well appreciated  in the  retailing market,  the  corporations  objectives should  directly be  a reflection of that as well as the general  need  of meeting all its high  standard objectives (Brewster, & Mayrhofer, 2012).  These objectives in  general  involves  the rise  of  revenue development  by  at least ten percentage within the following three years, expand its  stores alternatives,  implement a more inclusive  benefit plan  for all the employees as well as create unique shopping experience for the consumers (Brewster, & Mayrhofer, 2012).  the  particular milestones  incorporation  with  the general  development  of workers performance  can be regarded  as the  major emphasis of  the strategy. It is highly predictable that any business should develop Patronizing objectives, high performance standards for the employees and the corporation the objectives should also be accurate, realistic, achievable and most significantly they should be measurable.  All of the rules for the Wal-Mart Corporation were developed in response to two different needs. These are the present revenue state as well as the corporation’s future based on how it views itself. Wal-Mart  desires to retain its  leading position in  the supply of retailing  services  but also to grow  its  general brand’s presence  in  different ways  such as in multinational  fresh ventures to attract  more  consumers.

Job Analysis

The performance of job analysis  permits  a corporation in  understanding clearly  a certain  position as well as the required  qualities  that  the workers  must  own in order  to operate  in the particular  position (Brewster, & Mayrhofer, 2012).  Job analysis in  that manner  can be defined  ad a systematic  procedure  for the gathering of  information to assist completely  in understanding and defining responsibilities and tasks of a particular working level with the  inclusion  of skills, knowledge and the  capabilities that the job necessitates.  The objective of the procedure is to complete the image of the particular position, surmising all the necessary skills sets in fulfilling positions (Brewster, & Mayrhofer, 2012).  Holding an accurate and a clear picture of the necessary skills is the beginning of correlating the strategy of Wal-Mart with performance management.

Skills Gap Analysis and Performance Evaluation

Skills gap examination basically involves the definition of knowledge and the skills that are necessary in completing the duty which is followed by a comparison of an individual’s current stage to the stated requirement.  After the identification of the existing gap amid the two this is then followed by professional work training with an individual to generate a remedy plan for the current scenario (Crawley, Swailes, & Walsh, 2011). Defining management as well as supervisory clearly in order to gain an obligatory to hold a complete  understanding of how the retailing industry performs in order for persons  to identify  the aspects of performance  management  as well as  how they can be  aligned adequately  with  the strategy of the organization (Brewster, & Mayrhofer, 2012).  The strategies of employee’s skills measurement as well as skills gap addressing which holds the capability of measuring the qualities during a hire can assist in training as well as support allocation.  In addition the understanding of handling any pre-existing skills gap post training can be essential for further development of the employees as well as the general maximization of human efforts.  One of the major procedures of measuring workers skills is the tactic of skills benchmarking against a formula that is numerical in order to transform skills into a system that is measurable.

Measuring Employee’s Performance

Employee performance can be conducted in different ways because it is highly required for corporations to consistently assess and monitor the performance of the employees. One of the major ways to conduct management of performance is punctuality (Crawley, Swailes, & Walsh, 2011).  Those employees that come to work past the stated time or misses’ work often are not likely to meet the aims of the corporation.  Quality work is another way, which can be evaluated through projects timely completion to the required standards (Crawley, Swailes, & Walsh, 2011).   Checking of attitudes as well as observation of individual conducts and the check of attitudes helps in assessing performance. Carrying frequent and unexpected checks as well as the review of the workers presentation is useful for assessing their performance and their general competencies.

 

 

 

 

 

 

 

            References

Armstrong, M., & Armstrong, M. (2009). Armstrong's handbook of performance management: An evidence-based guide to delivering high performance. London: Kogan Page.

Axson, D. A. J. (2013). Best practices in planning and performance management: Radically rethinking management for a volatile world. Hoboken, N.J: Wiley.

Brewster, C., & Mayrhofer, W. (2012). Handbook of research on comparative human resource management. Cheltenham, UK: Edward Elgar.

Crawley, E., Swailes, S., & Walsh, D. (2011). Introduction to international human resource management. Oxford: Oxford University Press.

 

 

 

 

1329 Words  4 Pages

International Business

Introduction

A multinational company is one that extends beyond the borders of an individual country and carries out business operations with branches and affiliates in two or more countries .Many companies have been evolving from local firms to large multinational corporation so that they are present in many parts of the world either physically or though the internet. These companies make a substantial investment in foreign markets and actively take part in the management of resources in these countries. In growing global business environment, many firms cannot afford to assume that their local market will be sufficient for continuous growth and profitability. Therefore, firms want to become multinationals in order to have ownership and localization advantage and internalizing benefits.  The overall aim is for the firms to increase on their sales, reduce costs and hence increase profitability.

 Fundamentally, the major motivation for companies to carry out foreign direct investment relates to the need for seeking resources, market, efficiency and strategic seeking of assets.  This can be linked to various advantages a firm expects to achieve by expanding into the international markets which will place it at a competitive position in the global market. Expansion of a market means attainment of economies of scale in terms of reduced cost and expenses and increased sales and hence the achievement of the profitability goal set by the management (McDonald, 2016). Every organization wants to have as low costs and expenses as possible and a global arena is important in helping a firm to attain this goal. A company will carry out an examination of the resources it needs and identify places where they can be obtained at the lowest price. The search will involve outside the borders on a hope to locate more economical solutions to the manufacturing and production problems being experienced due to limited resources (Sönmez, 2013). This boils down to the idea of localization of advantage where the multinationals choose to serve their customer from their own location.

Localization of advantage means that a firm will choose adopting a strategy that will ensure low cost of manufacturing and labor and hence move the manufacturing plants to places closer to natural resources, efficient technology and favorable tax structures. For instance, a firm located in Canada and gets the large part of resources from China can consider moving its operations closer to China or find a new source of required resources. The process of outsourcing may not be very favorable for business to cost and regulatory procedures involved in contracting the resources from another country. For maximum advantage, multinationals normally try to build facilities that will produce and sell the products in areas close to their customers. An example is where Coca Cola chooses to open up bottling plant in locations where customers are so as to reduce cost of transportation or to assist the firm in fitting in better with needs and tastes of the customers. The Polish Coca cola affiliate has bottling plant in Beskidy Mountains in Poland where mineral water for making various beverages is in plenty. In the retail industry, various factors can make firms to seek the multinational status (Federal Reserve Bank, 2015). These factors include imminent saturation in the local market, the need to spread risk and consolidate buying power. Others include the constraints from public policy, economic conditions that can result to increased interest rates and taxes and hence cost.

In addition, various factors can motivate the retail companies to become multinationals including the access to cheaper capital sources, surplus capital, management with ambitious entrepreneurial vision, being induced by suppliers to expand into new markets and removal of trade barriers through lowering of tariffs and hence easing the entry process. Other motivating factors include the availability of exploited markets in the foreign countries and the pre-emption of competing retail companies.  This implies that there is a huge segment of consumer market which has not been exploited in such countries and this present an expansion opportunity into this market (Sönmez, 2013). The retail companies may also want to exploit the gain access and take advantage of a qualified and cheap work force or to access new management in other countries. Moreover, following internalization by a manufacturer can make a retail company to consider moving to international market so as not to lose the already established corporation. In regard to risk, geographical proximity and cultural proximity enhance the expansion into new markets because there is a great reduction of uncertainty. For instance, many firms seem to first consider expansion into the same markets.  Wal-mart expanded into Canada in 1994, after entering into Mexico. Tesco first expanded into central Europe market, and later into the East Asia market (Twarowska, 2013).

 Saturation of the home market saw the European companies such as Sainsbury, Carrefour and Ahold become multinationals before the American companies, a fact confirmed by Wal-mart being among the few American companies to build a large foreign store network.  A reaction to competitor’s moves can be explained by Carrefour case, where company opted to move into Brazil and Poland, emerging markets, where there was no competition from the stores similar to those in western countries. The move enabled the company to get exceptionally huge returns ranging from 25 to 30 percent on the invested capital (Twarowska, 2013)..  The opportunities presented by emerging markets as prime locations, more so the big ones are quite limited and a retail company can build up trust or scale that the late-movers may find very difficult to overcome. This is what motivates Carrefour to expand and it was able to enjoy the advantage of being the first company to move and caught the trust of the expanding middle and its effect. The acquisition of ASDA by Walmart in 1999 may have motivated Tesco’s expansion into the international market since Tesco’s expectation was that competition could become more intense (Twarowska, 2013).  Hence, the decision for a company to be turned into a multinational can be determined by the availability of a fitting acquisition targets and the prevailing condition of the sellers who are willing to sell, as happen on the attractiveness of a given market. In the retail sector, the accessibility of skilled labour and management who are also culturally ware can also be a significant factor.  The prevailing economic condition may also play a role in the expansion efforts or the motivation by government institutions through policies or incentives purposely instituted to attract foreign investments. For instance, the 1997 Asian crisis can explain the economic factor, as it seemed to facilitate the expansion by offering opportunities for companies to acquire resources or assets more cheaply (Sönmez, 2013). This can be said of any economy whose conditions offer such an opportunity.

The other motivation for firms to become multinationals is the ownership advantage, where they normally develop and claim the ownership of proprietary technology or brands that are widely recognized that their competitors cannot apply in production (Sönmez, 2013). For instance, the Coca Cola has patented its formula and kept it as a great secret and to always safeguard this, the firm became a multinational instead of leasing out the patent to other companies in foreign market as this would not protect it well from the competitors. Ferrari as a highly recognized has to be safeguarded by the producer who prefers setting up the production facilities into foreign markets instead of franchising or contracting the production of the product to other firms in the international market which is highly competitive. Multinational companies are usually leaders in the technology field and embark on heavy investment in the development of new products, brands and processes, while at the same time maintaining their confidentiality and protecting them through intellectual property rights. The maintenance of stronger protection for these elements assists the companies in enjoying higher profits from their own innovations (Twarowska, 2013).  The ownership advantages are therefore, firm assets which they use to obtain power in the market which link the company to specific advantages and the major competences or corporate strategy school that is resource based.  The advantages can be transaction-based or even asset based. Various products that are unique like the fashion label “George” for Asda or quality reputation attributed to Waitrose are examples that are asset- based.  The transaction-based advantages result from the way companies carry out business operations or activities. Definitely, these advantages are hard to indentify but could be what the in-store picking method that was utilized by Tesco.com. Tesco chain management that is based on lean supply and use of data from loyalty card are some of these advantages which allowed the firm to enter into the South- Korean market (Twarowska, 2013).  In essence, ownership advantages are beliefs of a firm on being fit, in regard to assets or skill or a combination of both which a firm uses to compete and even survive in a foreign market.  

Internalizing benefits involve companies wanting to own a particular technology, expertise, brand or patent which they find unprofitable or too risky to license to other companies. Enforcement of international contracts can sometimes be very ineffective or costly in countries where the rule of law is not strong or where there are long court procedures that can be also inefficient. In such instances, a firm may also risk losing the ownership advantage it possesses whose creation was done at a considerable amount of cost (McDonald, 2016).  Where the internalization advantages are more than the benefits of using the market, a firm will make use of foreign direct investment method rather than contracting.  A company with great ownership of assets will deem it very necessary for it to protect the assets through the maintenance of control over its great secrets (McDonald, 2016). Many firms establish Research and Development facilities in the foreign countries in order to take advantage of extra scientific resources, and this can lead to acquisition of useful knowledge in the entire process. For instance, Avon made use of know-how acquired from the marketing experience in Latin America in assisting selling to the market in US Hispanic countries. Another motive for companies to go international involves shortening the product life-cycle. As the product life cycle of a product become shorter, enough returns for the research and development that has been done for a product could only be obtained by the introduction of product to many larger markets. Moreover, companies are always aiming at introducing a product in as many markets as possible simultaneously to tap into maximum returns before other competing companies start the production of substitutes. 

Economies of scale is a major factor which makes companies to become multinationals since exporting is a good way for business expansion using the products that have a high level of acceptability around the  global markets.  For many manufacturing industries, moving into international markets can assist the firms in achieving high scales of economy more so for those in domestic markets that are smaller. In other scenarios, an organization may want to exploit a differentiating advantage through a brand or service model (McDonald, 2016). The emphasis is mostly similar with only slight changes to the local markets, where the scale economies would be undermined. Moreover, a firm may aim at increasing its innovation through the extension of customer base in the international market which can assist in financing the development of new products. Furthermore, a firm management may also have exclusive knowledge about a market in relation to foreign customers or prospects, market situations or places that may not be known to the others. Long-term security is a goal for domestic companies, especially in the developed countries with big but mature markets where competition is very intense due to many local and foreign competing firms (McDonald, 2016). Where the domestic capacity is in excess, the trade on international business is a necessity if a firm need to be at par in a global market place that is expanding and hence enjoy cost savings potential. Technology has been a big driver for firms becoming multinational, given that it has reduced the time needed for sending information or receiving it. The telephone and the internet have served to bring electronic commerce and the integrated money market. Therefore, the knowledge that it is easier for firms to go global on a friendly platform has enhanced the internationalization of business activities (Sönmez, 2013). This is because transactions around the world can now be conducted seamlessly and instantly.

Conclusion

The changing character, extent and geography of multinationals business activities over the decades is an indication of various path-breaking economic, political and technological events and circumstances. The economic factor has been the main driver, nonetheless, which has seen many domestic firms tend to go international, and the aspect is majorly influenced by the other factors. However, the internationalization has never been a “one size fits all approach”. It involves different firms having different motives to become multinationals and to be done in a way which will best suit business model adopted by each company. These models determine the reasons for a firm becoming a multinational and whatever methods adopted to do so is based on this understanding. The basic aspect is that a firm will go multinational to sustain its growth through market expansion ,  gain competitive advantage and thus improve profitability. 

 

Reference

Sönmez, A. (2013). Multinational Companies, Knowledge and Technology Transfer: Turkey's Automotive Industry in Focus. Cham: Imprint: Springer.

McDonald, C. (2016). Why go global?. Risk Management, (4). 45.

Federal Reserve Bank, (2015).Why would a Firm Want to Become a Multinational? Retrieved from: https://www.stlouisfed.org/on-the-economy/2015/april/why-would-a-firm-want-to-become-a-multinational

Twarowska, K. (2013).International business strategy reasons and forms of expansion into foreign markets. Retrieved from: http://www.toknowpress.net/ISBN/978-961-6914-02-4/papers/ML13-349.pdf

 

 

 

2278 Words  8 Pages

Global Operations Management

Samsung, an electronic company started as a distribution company which was responsible for the supply of groceries in Daegu South Korea, in the year 1974 under Lee who was its managing director (Johnston & Davis, 2015). Lee was a very innovative man, and he later started a Woollen mill in the outskirts of Daegu. In the year 1960, the company entered into the electronic industry. It started by manufacturing a white and black television sets, and also started focusing on the production of semiconductors, hardware and telecommunication components (Michell, 2010). In the year 1980, the company started producing fax machines, telephones and switchboards. After venturing into the production of telephones and fax machines, the company was able to go beyond boarders thus becoming an international company.

The company mainly achieved its success due to the philosophy of its founder Lee which was large scale expansion and development. This consequently motivated the company to be able to invest in researching on how to improve and expand the quality of services that Samsung offered to its clients. The company therefore started setting up manufacturing plants in different places in the world such as Portugal, London and New York and Texas in the USA (Michell, 2010). Moreover, the company also ventured into the construction company, and it boasts constructing the tallest building in the world, Burj Khalifa in the United Arab Emirates and also Petronas Towers in Malaysia. The company therefore focussed on construction, chemicals and electronics as its main priorities (Tymes, 2015).

Moreover, the company was also focused on being the best producer of electronics in the whole world. This move consequently saw the company manufacturing the first Liquid Crystal Display (LCD) in the year 1995, which made the company to realize very huge profits, due to the royalties that other companies hard to pay it in order to use its technology in manufacturing LCD televisions. Due to the quality products that the company was manufacturing, it was able to overtake Nokia, in the year 2001, hence becoming the leading producer of mobile phones in the whole world (Johnston & Davis, 2015). This move saw the company making history since no other mobile phone manufacturing had dominated the world like Nokia. Good customers’ reviews, due to the quality of products that the company was producing really impacted the company positively, thus making it easily outsmart its main competitors Nokia. Furthermore, Samsung’s employees are taught how to conduct their work, before they are allowed to interact with the customers. This move has also seen the company being able to ensure all their employees provide the best services to the company (Michell, 2010).

Samsung was a company which was mainly focused in large scale expansion and development, and this therefore made the company to comply with the legal systems of the country in order to be able to sale its products at ease (Johnston & Davis, 2015). Moreover, the company was not in any way involved in any political biasness, thus making it to attract more customers. In addition, Samsung complied by the culture of each and every region that it opened its manufacturing plants. This consequently saw the company winning the hearts of many customers, simply because the company produced products which suited them. On the other hand, the economy was also their main concern, thus the company focused on producing products which economically friendly, thus allowing people from different classes to be able to access their products (Michell, 2010).

Reference

Johnston, C. J., & Hart-Davis, G. (2015). My Samsung Galaxy Note 4.

Michell, T. (2010). Samsung Electronics and the struggle for leadership of the electronics industry. Singapore: Wiley.

Tymes, E. (2015). My Samsung Galaxy S5 for seniors.

 

618 Words  2 Pages

Organization Fundamentals

An important aspect to that will inform my understanding of organization fundamentals is that organizations function as social systems that are created in order to fulfill a specific goal and have formal structure. The purpose of the structure is to enhance internal coordination and to offer the right response to external environment. An organization is set up to fulfill a certain vision or goal, which can be either to make profit or to achieve a social impact rather than profit (Daft, Murphy & Willmott, 2010).  Through the facilitation of innovation and more efficiency production of goods and services, an organization is able to achieve these goals.

People form part of an organization and the key to its success is the communication between them. Organizational structure consist of the formal reporting  and hierarchy relationships between the organizational managers and the firm’s subordinates and are normally divided into  smaller functional  units depending on its level of maturity and size (Daft, Murphy & Willmott, 2010). Processes in the organization consist of policies and rules human resource development process that offer help in management of the firm. System comprises of people or resources that set goals for acquired resources, and structure and produce a product as an output to be used in the environment. Culture results from the interactions between people, goals and resources whose structure is managed through various processes which assist in the entire management (Daft, Murphy & Willmott, 2010). An organization is normally under the influence of external environment. Introduction to organizational fundamentals will be of little use going forward, especially on historical and evolution aspect of the various forms of organization. Though such information is necessary for background understanding it may be of little usage in learning the current and future of an organization.

References

Daft, R. L., Murphy, J., & Willmott, H. (2010). Organization theory and design. Andover: South-Western Cengage Learning.90-97

315 Words  1 Pages

Presentation

A PowerPoint presentation entitled ‘Innovative solutions’ is a precise discussion concerning the creation and enforcement of new policies in substance abuse. It was designed and presented to address the alarming issues of air pollution, chemical and substance abuse and generally the degradation of cleanliness in the fracturing process. The presentation was however designed skillfully with an aim of reaching the target audience effectively.

Some of the considerations that were made included use of limited number of words and use of key phrases and the most essential information only (Reynolds, 2011). The presentation also is created in a simple but consistent design template. Bulleting has been very useful in presenting the work in point form while different font size and boldness have been used to distinguish title from the rest of the text (Reynolds, 2011).

The presentation would have been more attractive and presentable if a number of editing would be made. First, it should have been designed using contrasting colors for both the background and the text as long as readability is not altered (Reynolds, 2011). The presentation would also look more attractive if some images were in place. Fewer words in the wordy slides would also enhance the readability of the presentation.

The presentation is more formal because the targeted audience is gathered in a formal setup. However, the presentation can be adjusted to meet a less formal context through more use of common words and used in social setups (Reynolds, 2011). The content can also be accompanied by some idioms and little use of phrasal verbs. The sentences could also be made short without necessarily the use of perfect grammar (Reynolds, 2011).

References

Reynolds, G., (2011). Presentation Zen: Simple Ideas on Presentation Design and Delivery. New Riders. 0132901536, 9780132901536

292 Words  1 Pages
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