BUSINESS PLAN: COUNTY PARK LOUNGE

Business Overview

County Park Lounge will be a night club that will focus on attracting different customers from Davenport, Lowa, particularly students from Kaplan University.  It is factual that the population of the students has been growing rapidly in the area reaching up to more than 10% annually. There are approximately 10 night clubs located in Davenport which have been thriving and performing well for the past decade. These night clubs include Connections Nightclub, 1 Hundred West, Carriage Haus, Shenanigan’s Irish Pub and Joes Club among others. County Park Lounge will offer a unique experience to the target customers by presenting an elevated energy dance-theme setting that will cater the needs of the college students while in the club. This will be strategically placed in the central location of the club and reinforced with unique décor and wide selection of disco lights to increase the competitive advantage of the club.

Additionally, the club will focus on unique energy themes, wine, liquor, beer and mixed drinks which will enhance the uniqueness of the club. Other products that will be offered in the club will include nonalcoholic beverages, casual foods such as appetizers and soft drinks. The operational hours of the club in the first fiscal year will be 5:30 P.M to 3:00 A.M in four nights weekly. However, regardless of the fact that the club will be established primarily to attract the college students, County Park Lounge will offer accommodation services for the visitors and guests from outside Davenport or even out of the state. Citing from the target market of County Park, the major market segments will include college women and men where the greatest concern shift to the side of the college women who appear to be get more entertained in night clubs than college men. This is intended to enhance the uniqueness of the club since none of the local nightclubs seem to create a supportive environment for this specific target group. Thus, this will help the club attract more customers within the target market.

Target market segmentation

The projected sales in the first three years of operation are projected to increase with not less than 6% which will also be reflected in the net profit. The sales are represented as below;

The startup cost of the club is approximated to be $35,000 where assets take approximately $14,0000, expenses add up to $16,000 and the remaining $5,000 is for any other expenditure. The capital will be obtained from personal savings and a business loan of $25,000.

Mission

To enhance customer relations by promoting uniqueness in products and services offered in a supportive environment

Vision

To become the dominating nightclub in Davenport and the surrounding in offering unique and quality services to college students from different universities in the area

As Verreynne and Meyer (2010) assert, the competitive advantage of small firms is enhanced by identifying some of the factors that affect the success of the firm. Therefore, the mission and vision of County Park Lounge are based on understanding the core market segment. This means that understanding the demands of the college students with regard to entertainment products and services will be the major determinant of the club’s success.

Keys to Success  

1. Offer unique products and services that fit the demands of the customers
2. Quality and consistent entertainment for the customers
3. Effective management of internal and external flow of finances
4. Maintenance of foods and drinks costs below 20% of their revenue

The Management Structure

The management structure of County Park Lounge will start with the club manager, who will be followed by at least five bartenders, three cooks, DJ, cleaning and serving staff. As aforementioned, one of the keys to success for this club is management of internal and external finances flow. As a result, the club will employ an accountant to make sure that cash flow is effectively and appropriately recorded in the financial statements. In this case, I will be the club manager as the owner of the business in order to supervise the daily operation of the club and engage in the hiring process. I want to be on the full control of the business with regard to the hiring and training of the staff, deciding the appropriate business strategy to implement, and making sure that the business is complying with applicable laws and regulations. As Verreynne and Meyer (2010) states, I want to be in a participative strategy-making. The significance of this type of strategy-making is that it is effective in implementing emergent strategies since it does not demand for a formal process such as dialogue or consultation. Additionally, as a manager, I will pay more attention on the finances flow to make sure that every penny is accounted for appropriately. Generally, I will be able to supervise and follow the progress of the business and note any fault that might materialize. This means that the club will run effectively as the management will be at my hands and according to my wish with regard to the objective that I projected while starting up the club.    

DISCUSSION: BUSINESS STRATEGY

According to Verreynne and Meyer (2010), it is factual that if small firms engage outsiders in their planning process, they enhance their performance. Thus, one of the critical errors that Clean-Air Carpet Cleaning Company made in their planning phase is failure to involve outsiders; particularly who have experience in the market. This yielded to the mistake of offering their services at 20% lower price from that of their competitors. They did not assess whether the business will perform effectively with that price discount under the partnership of three members. The other fault is that as the business continued to encroach in the market, Clean-Air Carpet Cleaning Company failed to increase the number of employees in order to cater for the market demand and changes. According to Uggla and Filipsson (2009), the objective of a business strategy is to deliver a solution that will correspond to the demands of the target market segment. Thus, it can be asserted that Clean-Air Carpet Cleaning Company employed business strategy partially.

Some of the economic factors that Clean-Air Carpet Cleaning Company could have included in their plans include increasing production (number of employees), integration, and new market venture. Citing from the increase of market demand, increasing number of employees would have helped the organization serve the market effectively. Additionally, integration with other related business would have made sure that the company serves it potential customers maximally.  Lastly, making a new venture such as retailing would create more opportunities for the business in order to circumvent dissolution of the business after one fiscal year.

Some of the operational improvements that I would suggest for the company include integration, increasing the number of employees, specifying the operational days (5 days in a week) and advancing and extending their service and product line.

The contributing factors of failure for Clean-Air Carpet Cleaning Company include poor planning, failure to increase their production output regardless of market changes, lack of formal management and improvement strategies, poor organizational structure, and poor financial accounting.    

CLASSMATE DISCUSSION

Response to Staci

It is factual that one of the critical errors that Clean-Air Carpet Cleaning Company made was to lower their prices below their breakeven level. This made had for them to invest in more manpower when the business was experiencing high demands in the market. On the other hand, regarding the economic factors that the company should have considered, targeting retail business together with commercial spaces was recommendable. Therefore, the company could have focused on business and commercial property in order to improve their operation to serve the potential customers. This derives the factors that contributed to the failure of the company such as failure to expand the product line, poor planning and ineffective business strategy.

Response to John

It is true that some of the errors that Clean-Air Carpet Cleaning Company made include poor budgeting, poor marketing plan and weak startup. This includes offering their prices at 20% below the price of their competitors which was far below their breakeven level. Thus, one of the economic factors that the organization could have considered include purchasing additional equipments as an approach of increasing their output to sustain the demands in the market. Lastly, the contributing factors of failure of this company can be poor budgeting, ineffective organizational structure, and poor planning.      

References    

Uggla, H., & Filipsson, D. (2009). Business and brand strategy: A framework for integration. ICFAI Journal of Business Strategy, 6(2), 27-42.
Verreynne, M., & Meyer, D. (2010). Small business strategy and the industry life cycle. Small Business Economics, 35(4), 399-416.
http://extmedia.kaplan.edu/business/MT499/Unit_1/index.html

Case study "Orbitz"

An effective customer care system is one that identify and anticipate the customer’s needs and recognize that customers do just buy services or products but they buy solutions to their problems. The better the services solve the problems, the more customers become appreciative due to that good experience of dealing with the business (Moynihan & Titley, 2001).  This shown in the presence of various aspects in the Orbitz travel website which include a tab that was easy to read that connoted the customer service link which really impressed Scot Paton. The website also realised that the customer would need to contact the customer care desk and thus included various means of doing so which include the e-mail link, FAQ database and a number that is tall free with which the customer would seek for help.  Moreover, customers can access the customer service department throughout the week for, at any time of the day. Paton considered this to be very impressive when one is travelling. The navigation system for voice may was another aspect that gave Paton a good experience because it was easy, quick and divided calls according to the kind of customer’s inquiry. The speed of answering calls, the politeness of the woman answering it, and the manner she addressed Paton’s problem were also aspects that gave a favourable customer service experience.

Organisation should thus adopt a good customer service since consumers will always demand continually higher level of service. This will keep the interested with the products or services offered by the organisation. Customers should be made to understand the system by avoiding any complication, or confusion that would make them angry and impatient. The customer service system should thus be easily understood by the customers which will give them a good experience. The customer service staff should be kind and must take time to listen to the customer complaints, while identifying their needs by asking questions. The response should be positive by seeking ways to help the customers without allowing any compromise in the organisation’s products or service delivery (Moynihan & Titley, 2001).

Reference

Moynihan, D., & Titley, B. (2001). Advanced business. Oxford [u.a.: Oxford Univ. Press.308

International Business Issues and Ethics

Exxon Mobil Corp. is a multinational gas and oil company whose headquarters are in Texas United states (Tillerson, 2012). Royal Dutch Shell plc. Incorporation was done in U.K but headquartered in Netherlands and is an Anglo-Dutch multinational gas and oil company (Shell Global, 2012). These two companies share similar challenges that relate to both legal and ethical issues. The large economic contribution that these companies have to a lot of national economies make the continuity of future operations very essential in the global economy. Despite their instrumental role that they play in mobility and economic transformation the companies face very profound challenges that relate to political, social, ethical   and legal environment. However, due to their varying magnitude of operations, and geographical locations the companies face some different challenges which are determined by the local laws, the surrounding communities that are affected by their operations and the ethical standards expectation in different social culture environments. These challenges are normally in terms of gaining trust for the governments and the overall community (Sarbu, 2014).

The political environment plays a huge role in the operations of these companies. The increased competition for available national resources has made these companies to engage in exploration and production in very remote, harsh and hostile places where even the most logical task may be very costly and difficult.  These companies thus face the political risks that refers to the stability of the government systems that grant them the long-term leases to operate in their oil fields (EY, 2015). The discovery of gas and oil in many countries end up being a curse or a blessing for the people, the strength of institutions and the stability of these countries. Most of the world countries where these companies operate, and where most oil and gas is found in large quantities are featured in the geopolitical risk index of Fraser’s Institute. In countries like Nigeria where Shell Company has its operations, the threat of political unrest due to militia terrorist groups makes the government unable to retain national stability. This makes the host governments less empowered in the regulation of gas and oil industry which result to higher production revenue and export taxes and a lot of strict employment and operating laws (EY, 2015). Revenue obtain from oil and gas production contribute to development of a few powerful elites and corruption in institutions that siphon the funds from public projects that would have helped in promoting well-being and political stability of these countries. This lead to decreased trust between the community and these state institution that include the judiciary , police and elected officials, which contributes towards the political instability (Sarbu, 2014).

These companies earn profit from sovereign gas and oil resources which brings about the possibilities of causing resentment among the local community. This goes hand in hand with the ethical codes that these firms are expected to observe while carrying out their drilling and production activities. The challenge arises where the firms and their managers fail to provide effective communication with their workers who may feel the wages and salaries they is not sufficient which may result to further unrest. Given that social factors refers to the companies association with the surrounding people in the community, any constraint on them and other personal factors can lead to further resentment. People’s decisions can be made out of influence of prejudice and revenge or the sense of greed among the business institutions. These can serve as catalysts for social and political unrest especially where the oil companies fail to show an ethical attitude in their operations (Sarbu, 2014). The issue of environment pollution and lack of social responsibility may present a huge challenge to these companies. The presence of these companies in many countries across the globe means that they are faced with many challenges that related to environmental degradation through oil spillage and emission of carbon gases. This put the companies in a situation where they can face a lot of legal pressure aimed at forcing the company to provide compensation for environmental degradation. This also has the possible effect of making the social environment to be unconducive due to resistance form the public. The community can be drawn protests and separatist movements due to their longing to have a say in something. A good example is the eruption of unrest in Nigeria, promoted by the Movement for the Emancipation of Niger Delta (MEND) that has targeted gas and oil facilities belonging to western companies. The represented a big challenge to Shell Company that has its operations in that country. People are thus an important factor in the social challenges that face these companies and their reaction can have a big effect on the companies’ business operations (EY, 2015).

These companies however face different level of political, social and ethical challenges. Shell Company in Nigeria has thus faced a lot of resentment from the community due to effects of its operations on the environment due to the above mentioned oil spills. This has seen the company experience a lot of vandalism, theft and attack on its oil infrastructure resulting to big losses Shell (Shell Global, 2012). While ExxonMobil in Chad has little challenges on environment issues, it faces challenges various legal requirements put in place by the government that is aimed at ensuring the larger share of the oil profits goes to the infrastructural development in the country (Hicks, 2015).  The bigger challenge then is to conform to environmental social challenge standard, and ethical transparency in ensuring that revenues from oil are channelled to public projects (Tillerson, 2012). While Shell in Nigeria faces huge political turmoil in the Niger Delta, the Exxon Mobil firm experiences fair political stability after the country managed to quell rebel uprising. The above mentioned challenges thus affect the two countries in different measure in accordance to the community in which their operations are based and the political and legal structures established by the host governments. Ethical challenges arise when the management and employees of these companies disregard the policies and rules that are in place in respective countries, which puts them at loggerhead with the communities and the governments. These challenges have made the companies to result to predefined risk and challenge frameworks to help them develop plans for their investment and decision making. The frame works include geopolitics that confirm that the challenges are huge consideration for the companies in decision making (EY, 2015).

Conclusion and recommendations

Shell Company and Exxon Mobil face similar challenges, but these challenges are differentiated by their magnitude and effects they have in respective host countries.  They approach those challenges in different ways depending on the possible risks they present to their decision making and operations. Given that these challenges have elements that are either predictable or unpredictable, the companies should adopt sophisticated but flexible strategies and prepare to change quickly any course they take when faced with uncertain future occurrences.

References

Sarbu, B. (2014).Ownership and Control of Oil: Explaining Policy Choices across Producing Countries. 68-73.

EY, (2015).Navigating geopolitics in oil and gas Business solutions for a complex world.5-20. Retrieved from. http://www.ey.com/Publication/vwLUAssets/EY-navigating-geopolitics-in-oil-andp-gas/$FILE/EY-navigating-geopolitics-in-oil-andp-gas.pdf

Shell Global, (2012).Global legal challenges facing the petro-chemical industry. Retrieved from: http://www.shell.com/media/speeches-and-articles/2012/global-legal-challenges.html

Hicks, C. (2015).Is Chad managing to beat the 'oil curse'? .retrieved from: https://www.theguardian.com/global-development/2015/apr/14/chad-oil-curse-africa-challenge-negative-impact

Tillerson, R. (2012). Our greatest strength is developing the technology and techniques that maximize value while increasing safety, efficiency, and environmental performance.” EXXON MOBIL CORPORATION. 10-44.Retrieved from: http://cdn.exxonmobil.com/~/media/Global/Files/Corporate-Citizenship-Report/news_pub_ccr2011.pdf

BUSINESS ANALYSIS

SECTION ONE

Bureau of Economic Analysis

1) How does our current real GDP reflect the current state of the macroeconomy? 

The current real GDP has a greater implication on the existing state of the micro-economy. What this means is that the real GDP will act as an example of the distinction which exists between the nominal vs. the real values in economics. Since the nominal gross is regarded as the market value of the commodities produced within the region, such a value will thus depend on the amount of goods and services produced as well as the their respective prices. On the other hand the real GDP majorly will be accounting for the changes in prices which might occur due to inflation. Thus for adjustment purposes, the real GDP will have to be computed by using the prices from specified year or the base year. It is this which will enable the real GDP to be measuring the current changes in output which is distinguishable from changes in price.

2) The linkages between spending and income in the economy (is there an increase in personal income that coincides with the change in GDP). 

The linkage which exists between spending and income in the economy is that consumer spending will assist in projecting the trends as well as overseeing the extent at which consumers will be affecting not only the US national but also the world economics. The reason for this is because consumers end up dividing their income amongst savings and consumption. Even though income for household will decline to zero consumption rate will not. They draw their future income or savings as a means of supporting household whenever income will be insufficient

3) According to the latest data and your own evaluation of the economy, where would you say we are in the Business Cycle?  Explain in detail.

Expansion cycle. The performance of the US keeps on varying depending on the business cycle in which the economy is in. Basically it means that small stocks will have the capacity of growing faster thus enabling one to gain additional income through the use of high yield bonds.  Moreover, the up-and-coming marketing will have the opportunity of growing faster in their premature stages of an upturn. Although they will be risky, the risk will be worth it as the global economy will be growing.

SECTION TWO
The Bureau of Labor Statistics

How do you expect income changed with these changes in price level?  Explain in detail, including the difference between nominal and real income.

Changes in income have profound impact on the price level. First with increases in income it means that the prices of goods and services will increase because consumers will be having much to spend. On the other hand, decrease in income will result to the decline in the levels of income because of the low expenditure. In the long-run the two will adjust itself until the equilibrium price is obtained.

Amer Eagle Outfit (AEO)

The business model of Amer Eagle Outfit (AEO) using the six components from QuickMBA

1. Value proposition is a component that describes the customer problem, the product that can address the customer problem and how the product is being valued by the customer. American Eagle Outfit is a U.S Company based in clothing and accessories. The company was at first a purveyor of outdoor things but on realizing the problem and the need of the consumers, it now supplies jeans and polos in order to address the customer desires. The company operates over 950 American Eagle stores and over 100 aerie outside stores (Investor's Business, 2015). There are over 100 stores in more than 15 countries operated by third party. Its products are sold to over 80 countries around the world through online.
2. Market segment is a component of business model that tells the targeted group of customers, recognizing the different needs of various segments. American Eagle Outfitters targets the young men and women of age between 15 and 25, with its casual apparel which include jeans, t-shirts, panties and bras (Investor's Business, 2015). It carries out most of its operations in the US, Canada, China, Hong Kong, Puerto Rico, UK and Mexico. It mainly targets teenage girls with its aerie brand.
3. Value chain structure is a component that shows the firm’s activities and position in the value chain. American Eagle Outfit has over 85% of its sales in the US, with over 100 stores in Canada and this is its largest market (Investor's Business, 2015). Additionally, there are international stores in over 15 countries. The company’s products are typically transported from vendors to their distribution centers.
4. Revenue generation and margins is a component that describes how revenue is generated, the cost structure plus the target profit margins. American Eagle Outfitters put efforts to promote their sales in order to generate more incomes for the company. They have incredible marketing strategies and skills for instance daily emailing of customers informing them of the discounts, trend and the existing new products (Investor's Business, 2015). Amer Eagle outfitters also carry out expansion strategy by expanding its stores domestically and internationally. These expansions enlarge the income capacity to generate income.
5. Position in value network is a component of business model that helps a business firm to identify competitors, complementors and other network effects used to deliver more customer value. American Eagle Outfit Company performs its retail activities similar to its competitors Aereopostale, Abercrombie & Fitch. American Eagle makes itself affordable than its competitors and this makes teenagers run for it (Investor's Business, 2015). Additionally, its stores are more retail stores compared to those of its competitors making it more accessible to the customers.
6. Competitive strategy is a component in business model that helps the company on how to come up with a sustainable competitive advantage. To maintain its competitive advantage, Amer Eagle Outfit is aiming at improving the quality of its clothing (Investor's Business, 2015). The company needs to maintain its target market and advertise its products favorably.

A PEST analysis for Amer Eagle Outfit

PEST analysis refers to the analysis of Political, economic, social and technological factors that affect the performance of the company. The company recently hired Chad Kessler as the chief merchandising. Therefore Kessler can leverage experience and expertise in boosting the merchandising capacity. Several initiatives have been introduced to reduce the rate of energy consumption in the distribution centers and in stores. Water is an important resource in the manufacturing process when washing and dyeing garments (International directory of company histories, 1988). However its usage has a negative impact to the environment such as shortage of fresh water which affects the social life of people.

A five forces model for Amer Eagle Outfit

Supplier power

The bargaining power for supplier is low just because there are many suppliers of raw materials such as cotton and lycra in the clothing industry (American Eagle Outfitters, 2015). Therefore a company is ready to abandon any supplier who raises the costs of raw materials.

Customer bargaining power

There is a high bargaining power for buyers due to the fact that America has relatively high-end clothing. As it is not taken as an essential product, it makes it price elastic (American Eagle Outfitters, 2015). Additionally, it is simple to switch companies and this makes customers selective.

Competitive rivalry

There is high competition in the market due to a variety of clothing brands such as urban outfitters, Aereopostale, etc (American Eagle Outfitters, 2015). There are many companies competing with Amer Eagle Outfit and this calls for constant innovation in order to get new customers.

Threat of new entrants

This is relatively low because the company has a stronger form of brand loyalty that cannot be threatened by new entrants (American Eagle Outfitters, 2015).

Threat of substitutes

 There are no substitutes for clothes and therefore there is no threat of substitution in the industry. However customers can switch between high-end and low-end brands (American Eagle Outfitters, 2015).

The company’s chief competitors

The company’s chief competitors include Abercrombie &Fitch and Aereopostale. Abercrombie & Fitch is an American clothing company headquartered in New Albany focusing on upscale casual wear for young consumers (American Eagle Outfitters, 2015). Aereopostale is a US shopping mall focused on casual apparel targeting men and women of age between 14 and 17 years through Aereopostale stores and those between the age of 4 to 12 through its P.S. According to customer’s point of view, Amer Eagle Outfit gives affordable products compared to the rest of the competitors making it look different (Hoover's handbook of American business, 2007). However, Abercrombie &Fitch and Aereopostale produce variety unique brands for children hence a threat to the company.

References

Hoover's handbook of American business 2008. (2007). Austin, Tex: Hoovers, Inc.

International directory of company histories. (1988). Chicago, Ill: St. James Press.

American Eagle Outfitters, Inc. SWOT Analysis. (2015). American Eagle Outfitters, Inc. SWOT Analysis, 1-8

Investor's Business, D. (2015, December 3). American Eagle Outfitters. Investors Business Daily. p. A02.

Self-assessment

Working in an organization that requires an individual to perform in the designated area is not an easy performance. Dealing with finances in my line of work has helped me not only achieved my career goals but it has also given me self-satisfaction. Serving as a clerk in the finance department gave me a chance to learn how to go about my daily work. As most of the work is repetitive in nature there was some situation that required some expertise and experience. The finance manager in the department had left to pursue other bigger dreams. There was a position left and one of us had to fill in the gap. In order to qualify for this position, we were required to prepare a complete report of the current individually. During this time I did a self-assessment in order to see if I was ready for the task ahead (Hildebrand, 2005). Some areas such as the financial analysis were a bit challenge as I never handle such responsibilities in my work.

The financial analysis involves reviewing and analyzing the financial statement of a company in order to make better economic decisions (Rodgers, 2008). In order to be efficient in this area, one has to have proper knowledge in financial accounting and financial analysis. I had knowledge in the income and the balance sheet statement but lacked exquisite knowledge in the statement of changes in equity and cash flows (Rodgers, 2008). After I assessed myself I found out that I was not so fit for the position which denied me to serve as a leader. This gave me a push to learn more in order to facilitate myself with all the knowledge of financial analysis techniques.

Reference

Hildebrand, D. (2005). Economic analyses of vertical agreements - a self-assessment. The Hague            [u.a.: Kluwer Law Internat.

Rodgers, P., & Chartered Institute of Management Accountants. (2008). Financial analysis.         Oxford: CIMA.

Consumer Behavior

1. Identify and describe the functional theory of attitudes.

                Consumer attitudes can either be an obstacle as well as a benefit to a marketer. Attitude can therefore be termed as the basic evaluation of a product over time and it is this attitude that influences the consumers shopping and purchase behaviors. Functional theory of attitudes established by Daniel Katz explains the functional intentions of the consumer (Narula 2006). There are four functions of attitudes that is, knowledge attitude whose aim is to provide knowledge to the consumers about a product or service. Whereas ego-defensive attitude protects consumers self -esteem. While utilitarian functions are attitudes developed by consumers basing on whether things are pleasurable or painful. While value expressive functions are attitudes developed by consumers basing on the value of the product and how it will relate to his self-esteem.

2. Most researchers agree that an attitude has three components. List and briefly describe those components. Hint: this has been described as the ABC model of attitudes.

                Attitude has three constituents that are referred to as the ABC which represents the Affect, Behavior and Cognition. Affect states the way a consumer feels about the attitude of a service or product. Behavior denotes the consumers’ actions basing on the attitude of an item. Cognition denotes the beliefs or knowledge that a consumer has about an item (Nelson et al 2011).

3. Why should marketers be aware of consumers’ cognitive consistency and dissonance? How can dissonance be reduced?

                A marketer should be able to identify the consumers’ cognitive consistency and dissonance so as to understand the rationale behind dissonance and be able to help the consumers to reduce this inconsistency that causes contradiction of beliefs, ideas as well as values to the consumer. In reducing this dissonance, the marketer will be able to sell his/her goods and services without fear of the consumers’ uncomfortable state and discomfort. Reduction of cognitive dissonance may occur through change of change of cognition, addition of new cognitions so as to justify the cognition, change of conflicting cognition and ignorance of any new information that may conflict with the existing cognition (Dahlén et al 2008).

4. Why have multi-attribute attitude models become so popular among marketing researchers? What three elements are specified in such models?

                Multi-attribute attitude models are widely held by marketing researchers since consumers’ attitudes towards goods and services are quite complex. Therefore these researchers use these models so as to measure the overall attitudes of consumers.  There are three components in these models that are the attributes, beliefs and the importance weights.  Attribute element refers to the characteristics of a product, belief assesses the extent of the consumers perception on attribute and important weight element refers to the relative precedence of an attribute to a consumer.

5. How do researchers explain the “sleeper effect”?

                According to researchers, Sleeper effect relates to the way a message has persuasion effect on the consumers. It is therefore a delayed proliferation of the effect of a message that goes along with a discounting cue.

6. List the five stages of the consumer decision making process. Define each of the major stages. Provide an example that demonstrates how a consumer might progress through the model.

                The first stage of the consumer decision making process is the need/problem recognition where the customer identifies his/ her needs. The second stage that follows is information search as it involves searching for the solution of the problem identified in the first step or searching of the products to satisfy ones needs. The third stage is the evaluation alternative stage that is involved with the evaluation of the different alternatives so as to choose the best. Purchase decision is the fourth stage that involves the final decision and selection of the product that best suits his/her needs. Post purchase behavior is the fifth stage that involves the evaluation of the product after purchase to see whether it has meet his/her needs (Tyagi et al 2004).

7. Compare limited versus extended problem solving.

                Limited problem solving deals with low risk participation while extended problem solving deals with high risk as well as high participation. Limited problem solving also involves minimal searching and processing of information is passive while that of extended problem solving deals with extensive search while information is multiple sources.

8. Shopping is an activity that can be performed for either utilitarian or hedonic motives. Describe hedonic shipping motives.

                Hedonic shopping motive is on inducing consumers to shop impulsively and also encourages shoppers to take a longer time in stores and as a result of this the consumers’ ends up purchasing more.

9. Reference groups influence consumers in three ways. Name them and describe the nature of the influence upon the consumer.

                Reference groups impact consumers in an informational, utilitarian and value- expressive way. An informational way occurs when individuals change their characters so as to meet the expectations of a specific group. Utilitarian occurs when individuals find it difficult to assess the characteristics of a product from their own observations. Value-expressive occurs when the need for association with a certain group leads to acceptance of the attitude of the product.

10. What characteristics of opinion leaders make them valuable sources for product information?

                Opinion leaders are well informed and it is through this characteristic that they are able to offer guidance to consumers while making buying decisions and this makes them valuable.

11. Explain the concept called age cohort. Briefly identify how marketers might use this concept to segment markets.

                Age cohort refers to a group of people who share a certain event during a specific time span. This concept is basically used in demographic market segmentation so as to retain their customers from their birth to death.

12. Explain the difference between sacred and profane consumption.

                Sacred consumption is determined by the different religions while profane consumption holds values, ideas and products that are concerned with the day to day attitude of ordinariness, usefulness and familiarity.

13. Discuss Maslow’s Hierarchy of Needs and provide examples – where might you fall within this pyramid? Also explain the LOV scale.

                Maslow hierarchy of needs argues out that people are inspired to achieve certain needs. There are five major hierarchies of Maslow’s theory that is the physiological needs that involves maintaining the consumers’ body for instance, food, air, water and sleep. Safety and security needs that involve protection of consumers from harm, for instance, health security. Social needs that involve needs that make the consumer feel a sense of belonging, love, and affection. Esteem needs that involve development of a consumer’s self-worth and self-esteem for example status. Finally, self-actualization needs which are the highest in the hierarchy deal with an individual’s realization of full potential for example personal growth (Huitt 2004).

14. Consider source credibility, provide two examples with one being positive and one being negative, and discuss the implications/impact of this marketing consideration.

                Source credibility is important in positively or negatively influencing the consumers’ acceptance of the message. For instance, information from officials is perceived more credible than that from non-elite sources and this changes the consumers’ judgment either positively or negatively. The source titles such as celebrities and the manner of dressing play a larger role in influencing consumers to change perceptions and purchase those products. Therefore if the source of information is from non-experienced and non-experts then this become a negative effect that negatively influences the buying of goods from customers.

15. Consider archetypes, specifically how the agency Young & Rubicam brands have delineated “Brand asset Valuator archetypes” and how these Jungian based archetypes might impact marketing efforts.

                Differentiation, relevance, esteem and knowledge are the common archetypes that the young and rubicam advertising agency have used in the brand asset model as it applies all these archetypes so as to measure the value of the brand. Differentiation involves the capacity of a product to outstand among other competing products. This ensures that the brand is maintained and due to its differentiating nature, consumers are able to value these products. Relevance involves the actual recognized significance of the brand to a larger customer market. Esteem involves the identified quality and consumer views about the growing or declining product. Knowledge involves the extent to which consumers are aware of the brand and how far they are able to understand the brands identity. This enhances the building and the development of the brand thus giving the brand power over other competitors in the market.

References

Dahlén, M., & Lange, F. (2008). Marketing communications. Hoboken, N.J: Wiley.

Huitt, W. (2004). Maslow's hierarchy of needs. Educational psychology interactive.

Narula, U. (2006). Dynamics of mass communication: Theory and practice. New Delhi: Atlantic    Publishers.

Nelson, D. L., & Quick, J. C. (2011). ORGB. Mason, OH: South-Western Cengage Learning.

Tyagi, C. L., & Kumar, A. (2004). Consumer behaviour. New Delhi: Atlantic.

Organizational Analysis

Subway is an American restaurant that has a primary objective of selling submarines sandwiches and salads. This organization has adopted a strategy of franchising in order to have many outlets in the world with similar products. The fast food organization has had its fair share of success and challenges in the market (Harwell, 2015). Financial challenges and competition from companies such as MC Donald and other organizations that are in the fast food genre have threatened the success of subway. As one of the fastest growing franchises around the world Subway has commissioned its operation in more than one hundred and eleven countries. This has made it be the largest single brand fast food restaurant and operator in the world.

The strength of the financial position of the organization has been attributed by its many outlets. These outlets are considered as assets of the organization making the financial position strong. With the many outlets in many countries, the level of revenue has grown up (Harwell, 2015). The revenue has increased not only in the American market but also in other countries. This is because it has been able to strategize its self in different countries. For example, in India subways, restaurants do not serve pork or beef in their sandwiches. It has respected its citizen’s culture serving them only vegetable sandwiches (Harwell, 2015). By honoring the culture of different communities across the world has led to many outlets being opened in the countries increasing the margin of sales resulting to higher returns. As it has its operation in different countries it has been able to separate its market ensuring that it has gained the most in each country despite currency differences strengthening its financial position (Randall & Randall, 2011).

As the organization grows in size there have been challenges affecting its financial position. Management of some outlets has not performed to the expected levels resulting to financial losses. This has threatened the financial position of the organization (Randall & Randall, 2011). Due to currency differences, the exchange rates have been fluctuating from time to time. During the financial year of the organization, the exchange rates may be unfavorable due to the devaluation of a currency affecting the stability of its financial position.

The financial condition of the organization has been sound for some time as it has had a purchasing power of its outlet. An initial investment in a subway depends on of factors such as the outlet size, location among others. The fees and the royalties paid to the subway have increased its market share. The advertising strategy of the organization takes a huge amount of cash. Through advertising, people have been aware of its existence and have led to its popularity (Randall & Randall, 2011). By having a management that is unison in all outlets in various countries will be helpful to improve the financial condition of the organization. This will also make sure that the management team performs to the required standards. Adopting same and consistent financial measures in the organization will leave create no room for cash embezzlement. This can also be achieved through internal and external audits of all outlets (Randall & Randall, 2011). In order to improve the organization success has to drop the strategy of opening more stores that cannibalize each other 9 Harwell, 2015). Subway has to appeal to its consumers by evolving into something different by having better concepts and various better products to ensure that their customers are not lost to their competitors.

Reference

Harwell D (2015). The rise and fall of subway: How the world’s biggest food chain lost its           “fresh” appeal. Retrieved from http://business.financialpost.com/news/retail-           marketing/the-rise-and-fall-of-subway-how-the-worlds-biggest-food-chain-lost-its-fresh-   appeal

Randall, D., & Randall, S. (2011). So you want to own a Subway franchise?: A decade in the       restaurant business / c by Dylan Randall and Shayne Randall. Durham, CT: Strategic             Book Group.

Detailed information on how we established our relationship.

                I am the petitioner, Natalie Enriquez and my alien Fiancé beneficiary, Lorenzo Lira we met in Cd.Juarez, Chihuahua at Transportes R &A office in 2014. I had visited a friend who got married in Mexico State and she wanted to purchase some office equipment in Transportes R&A office in Juarez so I accompanied her. In the process of her paying for the goods I walked out to wait for her in the car but along the way I dropped my purse. Later after few steps that when Lorenzo came running to hand me the purse. I was touched by his action that I offered him some cash as a form of appreciation. He refused to take my cash but instead he just asked my number and left in a rush but promised to call. After a week, he tried reaching me and we started being friends and he would invite me for coffee often.  With time we developed a close relationship and a month before I left to go back to my native home he proposed to have a serious relationship with me. We therefore started dating and vising places together and we took too many photos that acted as physical evidences to these wonderful moments. By the end of my four months visit, the bond between us had grown stronger. Even after i left, Mexico we kept communicating with each other, we could even email each other and we even Skype at least once in a week.

                While in Mexico he had invited me for dinner with his family and he introduced me as his girlfriend. Once in a month I would receive letters and post cards of support from his family. While I on the other side introduced him while using Skype to my family and they also communicated to him once in a while. Six months later, I invited him for my sister’s wedding and he managed to come for a month. During this month we spent most of our time together and we visited so many places and every place we visited we ensured that there was a photo to remind us of our memorable moment in that place. We exchanged gifts and we made plans for the future. After one month he went back home but we still got in touch. One year later, in his business travel to US, he proposed to me and wedding arrangements started. There we printed some wedding cards which we invited all our friends and some were sent to Mexico to invite his friends in Mexico. We however planned to meet in Christmas where I would get a chance to meet all his relatives and have fun in that festive season with them. My Christmas visit was the best as I got to know all his relatives and we took so many photos. During that time we travelled together to Africa for the vacation where we stayed together for the two months’ vacation in Africa as we had hotel reservations for a couple. It is after this trip that we went back to finalize on the wedding arrangements as the wedding will be in two months’ time. All the photographs that we have undertaken since we met up to date are all updated in our social media pages.

Career management

            I am a Chinese international student who has always been determined to excel in my education as well as in my career. I have been able to acquire knowledge from the lessons in the university and practical experience from the internship programs that I have been attending. The fact that my father is the chairman of Mao Ye Food Company I was lucky to be allowed to be an intern in the industry. I was determined to do my best as this was just a beginning to my great career.

            In one of the long vacations in the year 2014 I was able to attend the internship program as an intern assistant in the company. I was tasked with the responsibility of collecting all forms of relevant information in the company that would help the chairman to make final decision for the better of the company. I was also responsible for drafting of relevant documents that the chairman required, organizing of documents, reports and files. I was also held responsible for auditing where I ensured that examined the organization’s funds so as to determine any signs of misallocation and mismanagement of funds within the organization. In doing this I was able to learn that ethics was important in this career, as well as assertiveness with a minimal level of skepticism that enhanced me carry out my research. I therefore looked forward into improving processes with an intention of reducing as well as avoiding waste and fraud. This greatly assisted the chairman in assessing the finances and it he involved me in the business negotiations. I ensured that the chairman got information at the right time while I also ensured that the other employees also got information at an appropriate time as directed by the chairman.

            Later after going back to the university I was able to learn more and in the vacation after that academic year, I applied again in Mia Ye Company. However this time the management did allocate me another department where I would work from. I was in the position of an intern general manager. This position had its complex role as the responsibilities were more complex than those in the previous intern program. I was responsible for establishing and maintaining of personal files of the business.  These files were to be carefully assorted and organized in an updated way. I was also tasked with the responsibility of handling and renewing of labor contracts. So many contracts at that time needed to be renewed so I had to read all these contracts and understand the renewal process so as to be able to renew these contracts. After renewing these contracts I was expected to register all those contracts in the computer and enter them in the company’s database.  I acted as the supervisor at that time as I had to ensure that I supervised and inspected that all the employees did all their tasks well and just as required and completed their tasks on time. I was also expected to orient new employees in understanding how the industry operated and trained them on how they were expected to work. I w3as also in charge of organizing training programs for all the employees so as to add on to their knowledge and this enhanced them to collaborate and cohesively work together as a team hence allowing personal development.  

            The internship program has thus been so effective in shaping me to being the person I am today and it has really enhanced me to develop as an individual. I have been able to create good relationships with people as well as be able to work with them. Throughout this period I have learnt to be determined and focused and to be self- driven. I have learnt to work under minimal supervision and to motivate myself in any kind of career.

As a result of the experiences that I have gathered from the industry and the knowledge from class I totally believe that I am competent and can work through any kind of environment without fear of challenges for I can be able to face them and overcome them.  My passion for accounting will surely lead me to improve more and more in this career so as to be competent and marketable.

Development plan

            My core career interest is in accounting in a business company. In this career line, my main long term objective is to become the general manager in the accounting department in the industry. This will only be enhanced through step by step promotion that will ultimately lead me to acquiring this position. To start with I want to be promoted from being a clerk to being an assistant manager and finally to being a manager.

            However before attaining these long term goal, there are challenges that I have to overcome so as to attain them. One of my short term goals is to attain advanced computer skills that will enable me to be faster and more advanced as technology is advancing and globalizing daily. The barrier to achieving this goal is in time constraints since I lack mechanical engineering knowledge thus additional time is needed so as to add on my basic training on computer. I will be able to overcome this barrier by sparing some time for training and finding more efficient ways to complete my work.

            So as to achieve both the long term and short term goals, I will identify and develop a good relationship with my role model who will nurture me through my career path. I will also engage in more training so as to advance my education.

 I will take more job assignments so as to be able to gain more experience that will help me in improving my skills and this will end up leading me into attaining all my goals.

            Some of my applicable career paths are managerial accounting, accounting information system auditing and audit accounting. Telecommunications is one of the networking channels mainly the telephones and emails are some of the channels that I can use to communicate with my customers and my fellow colleagues. This will help the information to flow well from the source to me or from me to the other person thus making me effective in my tasks. The current trends in accounting are the increment of interest on client service and this will focus on use of technology to automate the processes and provision of improved customer services. The integration and adoption of the new technology, is another trend that will digitally mobilize the accounting services. Some of the skills that will enhance me to be successful in this career are high value ethics, communication skills, assertiveness, honesty and auditing skills.

Effects of Climate change on Companies

            Many companies have greater ways of focusing on the climate changes and how they are influencing the businesses. In that situation, the retailer will have the best idea on what price they will be charged for the power and this will make them insulate the international and regional energy price spears.  Responding to climate can change the way in which a business operations.  The formal businesses are forms are known to be endangered in the markets where the renewable energy accounts for a greater part of the current generation.  On the positive way, the greener products are developing in a number of companies. The development and the infrastructure sectors are establishing new products and services that are found in the cleaner cities.  These services include electric vehicle charging organization, renewables addition, smart metering and high progress building techniques.  Thus in the business sectors mainly the selling and the customer products, innovative sectors are making inroads as people are making it real that they have the wish to pay for the greener products (Hoffman & Woody,2008).

             For instance, groceries are developing fast in America while the organic food business has also developed more in the past decades. This proofs the development of a main unit of customers in which the environmental awareness is a factor in which and what they trade for.  Climate change can also develop the demand of specific products and services including water management services and tools and the clothes that are used in chilly weather conditions.  Thus renewing of the generation of energy will be enticing businesses which are looking forward in developing their security in energy.  These climate changes can also make the farmers from the Northern to change into farming of other crops that they are not currently growing.  In some of these areas, they will have the benefit of an extensive farming season and this will increase the food products in the food markets (Hoffman & Woody, 2008). 

            Tourist business also develops due to the climatic change mostly during the warmer summer.  This brings to the extension of the tourist season which makes the tourists sites more gorgeous. The yards leisure facilities will also have more demand; this means that even an increase in rainfall will make the investing of the yard equipment more essential for a more alternate range of tourist activities.  This will ensure that business in the vacation and tourism sector will benefit from these chances.  The construction business will also benefit as people and their businesses will have the wish to alternate their locations to adapt the change in climate. This will lead to the increased demand of new and transformed sites and give chances for renovation, upkeep and clean-up contracts.  This will also give the opportunities of the establishment of new products and services in construction (Hoffman & Woody, 2008). 

             Businesses adapt these climatic changes by the acceptance of a sustainability approach whereby new products are made to lessen the waste and are broken down for the recycling process.  They should also outline company plans to support business benefits with the climate change vindication and alteration. For instance, Siemens Company has developed an environmental collection of the carbon effective products while the Saint Gobain which is a construction and packaging company has put efficient housing techniques at the core of its invention development plan.  Businesses that ignore climate change consequences are more likely to feel the risks. Those that recognize these risks put appropriate strategies in which they manage the climate change based risks. Thus these businesses will not only put themselves in a position that will drive away the challenge, but will overcome it (Great Britain, 2010).    

Reference

Hoffman, A. J., & Woody, J. G. (2008). Climate change: What's your business strategy? Boston, Mass: Harvard Business School Press.

Great Britain. & Great Britain. (2010). Adapting to climate change: EU agriculture and forestry: 8th report of session 2009-10. London: Stationery Office.           

CASE 1 Mary Corey

Section 1

The decision by an employer to terminate the employment of an individual comes with a possible risk of legal challenge. This is true for the involuntary termination which normally results from the dissatisfaction of the employer with the performance of an employee especially where the productivity of the employee fails to deliver the list expected results due to mental disability. The Americans with disabilities act prohibits from discrimination against an employee who is qualified but with disability in regard to hiring and discharging them of the employment. The termination of Mary’s employment contract could make the organization that Helen works on its behalf to run into legal issues regarding the discrimination of an employee on the basis of their disability. The ADA act defines mental impairment as a disability that leads to a substantial limitation on an individual’s main life activities including any psychological or mental disorder like mental or emotional illness (California Department of Fair Employment & Housing, n.d). The Act provides that an organisation should provide reasonable accommodation to someone who is qualified but gas mental disability, where they ask a time off because they are stressed or depressed. The employee need to, however, have communicated such a request for the time off for change at workplace for the same reason involving a medical condition.  Such a statement is enough to put any manager on notice that the concerned employee is giving a request for a reasonable accommodation. Where the need for the employee to be accommodated is not obvious, the manager can ask for sensible documentation shows the functional limitations or the disability of the employee. The reasonable accommodation should apply unless such an application will lead to undue hardship. This accommodation may involve work schedules modification or redesigning the job (Dessler, 2015).

The case of Mary represent a scenario where Helen as a her supervisor would run into legal issues regarding the termination of the contract given that it can be alleged in a court of law that the employee was experiencing mental incapacitation that led   to her being unable to perform in her work. Given that Mary had asked for various sick leaves and even notified Helen that she was undergoing mental hardship, this would be ground for legal tussle, since the assumption will be that the employee had adequately informed the employer of their medical condition. Furthermore, Mary had informed Helen that she would have preferred to be transferred to another department , a step that she saw as necessary for her to fell regain her individual work performance since in such a department the pressure will not be so great. However, Mary would have to have given the manager a request that is not vague, and the request to have been in written form , and which states clearly that she had a mental disability that prevent them from thinking or acting normally. If there was no proof of such a notification , Helen would have a very weak case to answer since the issue would be whether the organisation knew , and whether the information was enough to let the management know that they might be dealing with an ADA case. The Act further provides that in order to determine the right reasonable accommodation, the employer may be required to have a process that interactive but informal with the said employee who needs to be accommodated so as to identify the limitations for the individual  and the kind of the accommodation to deal with the limitations(Dessler, 2015). By doing this, Helen and her manager Betty would avoid any legal problems that would result from discharging Mary.

Section 2

In order to help in improving the performance of Mary, Helen should invoke the implementation of the Employee Assistance System. The system provides advisory and counselling services and the use of such a program as a popular system of addressing individual problems of an employees has become very popular, especially for looking into the counselling for mental health. In fact, the mental health of an individual is the most common issue that is addressed by such a program and family problems come in second. This is because issues related to family matters and conditions such as stress or depression are the main factors that account for the sick days that are normally taken by the employees (Dessler, 2015). Such a programme would go a long way in providing assistance to Mary so that to reduce significantly the number of sick leaves taken and to achieve an overall improvement in her work performance. Helen should also involve the use of the system to deal with any family issues or problems that are causing the change in organisational behaviour of Mary. In this manner, the organisational conflicts that arises out of the change in Mary’s behaviour will be eliminate and a good working relationship restored with fellow colleagues. To achieve this, Helen will have to communicate with the employee regarding the availability of the system and why it is important to be proactive in its use.

 For such a system to work , the employees in a firm should be encourage to have an attitude that anyone can be in need of the services provided by it at a point. From the perspective of an employer, implementation of the system sends out the message to the staff that their wellbeing is also very important. Through effective communication, the employees will note that the system will offers them self-help tools which they should use. However, the employers and managers should have several issues in mind concerning the implementation of the system. The most important of the issues is that all those involved in the program, whether the Employee Assistance System’s staff or the supervisors should have much respect for confidentiality. This involves keeping all the files locked, reducing the identifying information and limiting the access of the information of a person using the system. The legal issues involved in the utilization of the program should also be considered. The managers and supervisors should ensure that the purpose of the program is defined, eligibility of the employee outlined, responsibilities and roles of the system, employer personnel and provide the procedures that are used in this plan (Dessler, 2015). When all these have been fulfilled, employees like Mary will gain the confidence of trusting the system to resolve their pressing personal and family issues and where the issues cannot be managed by it, necessary referrals for further attention will be provided. Thus, Helen should communicate to Mary the need to use the system to address her issues so as to restore and improve her work performance, to strike work-life balance and to have good relation with her fellow colleagues and employer (Dessler, 2015).

Section 3

Helen should have noticed and addressed the issues immediately the consistent drop in Mary’s work performance and change in behaviour more so while relating with fellow colleagues started showing. This follows the principle that the human resource has a strategic role of striking the balance between the employee’s needs and the interests of the organisation. But Helen followed the assumption that the management should take a softer approach while dealing with the needs of the employees while allowing the interests of the organisation to prevail over those of the people within the organisation (Hammonds, 2005). Thus, she ought to have communicated with Mary to get to the root of the unusual behaviour and take keen interest in the dropping performance. Through this communication, the issues underlying would have been recognized so that they are arrested before the situation got out of control.

Job withdrawal was also evidenced in this poor performance and the deteriorating relationship between Mary and her colleagues. Job withdrawal refers to a situation where actions are taken whose intention is to place a psychological or physical divide between the employees and the work environment. The lateness and absence of Mary are actions or situations that represent job withdrawal. Withdrawal by an employee is a reflection of their decreasing engagement, so that they become less connected and committed to having their job completed. This aspect can clearly be noticed in performance appraisal which refers to the evaluation of an individual’s present and past performance and relating it to their performance standard. This appraisal allows both the subordinates and the manager to come up with a plan that is appropriate for improving on any deficiencies and reinforcing the strength of the subordinates (Dessler, 2015). Through evaluation of Mary’s past and present job performance over a given time, Helen should have noted the extent of her withdrawal and then take then interacted with her personally to understand the lying problem. Whether the issues were personal or family related, it was easier to handle them sooner than later. The overall results would be the balancing of the needs of the employee and that of the organisation. This through creation of the right environment that will allow the employee to share their problems with their managers or supervisors who will initiate a process of addressing issues. This would work well in a good performance management that makes sense out of the employee’s performance in regard to overall goals of the company (Dessler, 2015).

Section 4

Government Code sections 12940, 12945, 12945.2 relates to the above mentioned case. These sections relates to any discrimination of an employee due to their mental disability and also touches on reasonable accommodation. It refers to a qualified person with disability as one who can carry out the essential job functions whether with reasonable accommodation or not. It recognizes a person with mental impairment as one with such an impairment that lead to substantial limitation on their major activities of life. Working is also regarded as a main life activity and to be limited in it, one need only to limited in carrying out what is required of that particular job. The case of Mary can be regarded in terms of discrimination on the basis of limitation. It, however, provides that for one to be limited considerably in a main working activity, they must be restricted substantially in their capability to carry out a range or class of jobs in different classes in comparison with an average person possessing comparable abilities (California Department of Fair Employment & Housing, n.d).

References

 Dessler, G (2015). Human Resource Management: Pearson Education. 14th ed.26-416

Hammonds, K. (2005). Teaching Guide for “Why We Hate HR”. Fast Company.4-10

California Department of Fair Employment & Housing (n.d). Disability under the Fair

Employment & Housing Act. Retrieved from:

 http://www.dfeh.ca.gov/res/docs/publications/dfeh-208dh.pdf