Detailed Outline of Projected Costs

This direction is meant for all the departments in the company and is aimed at addressing our annual budget for the next financial year.  The purpose of cost projection is to provide a financial tool for decision making in order to enable actual performance of a business (Harvard Business School, 2009). This cost projection should be a reflection of the overall focus on upholding transparency throughout the company. Remember the company’s values regarding budget which promote increased engagement, accountability and should represent our aimed path of success. The budget should therefore provide information that will show relevance to the agreed expenditures and eliminate any cost that will add unnecessary financial burden to this company and show a prioritisation for the projects that have been approved by the management. I would like to emphasize on the need for enough cooperation among all the department in the preparation of the budget so as to minimize any errors or omissions which may lead to future disruption in the operations of the company.

Every department should forecast all their major revenues and expenditures in order to give the accounting department ample information and time to prepare an overall comprehensive budget. The departments are required to prepare annual budgets that will factor in the allowance for monthly adjustment so that they become the main vehicle to plan and monitor their activities.  The departmental budget should show details from the previous year’s projections, actual records for the current year and provide reasons for any surplus or shortfall so far. They should also include the goal for having the particular size of a budget with clear explanation of the metrics for departments operation. The information should be provided in form of raw data in a spread sheet and a well laid out visual presentation by use of power point. The items to be included in the budget line should be aligned with the items for accounting lines, and every staff involved should ensure that the budget will match the structure of the company’s accounting system so as to ensure effectiveness in the comparison of the actuals and the budget by the management. Any mismatch between the accounting items and the budget items means that we create additional work for the management and risk many inconsistencies and this may undermine the purpose of the budget. The departmental budget should include the projected income cash flows and the expenditures that are going to be accrued. The cash flow projections should show any resulting shortfall or surplus so that we can know the expected profitability of the company. It will even be very important if each department shows where the funds are expected to be used.

Incomes

The departments should include every income expected from the services offered to our clients and this where we need a lot of cooperation among the staff since this is a very important aspect of the budget and yet very difficult to project. A very important factor to consider is the seasons when our services are in low or high demand. Unrealistic forecasting at this point may lead the company to plan on an income that will not be realised finally. It is important to separate income expected in form of cash and debtors. Any expected investment income whether from loans or investment income should also be included in the projection. The income will be used as a basis of allocating the expected funds in all the departments in the company so it is very crucial to avoid overestimation or underestimation. I want to emphasize on the importance of factoring in the tax obligation on these incomes so as to ensure that the company is fully compliant so remember to include all the VAT requirements.

Costs

The budget should include all the fixed costs and variable cost incurred by departments. Fixed costs are constant price charged monthly so you must carefully review total amount that of the monthly fixed bills, from the records. The variable cost should include all the cost the department expects to incur in the purchase of stocks and materials, or services to be outsourced for the purpose of smooth operation of the company. Take into account that there is a possibility of scaling up or down theses cost depending on the changes that may alter the state of the company’s operations. Such changes may require extra purchase of materials especially in the case of repairs needed, or the extension of services as required by our clients. Thus make sure to include all the expected major costs like salaries and wages, advertising, transportation, printing and all costs relating to marketing. However, full details should be provided for any extraordinary cost that will be included in the projection. Similarly, any amount of cost that is large should have a full explanation for the intended use, and if the cost involve any kind of a project it should be indicated clearly the benefits arising from it. The department managers should aim at keeping the cost as low as possible where necessary but this does not mean that necessary cost should be left out.

The department managers should factor in any one –time purchase include the expected expenditures like business retreat or seminar and those that are likely to come up unexpectedly like replacement of office assets. This will serve to protect the company from any financial burden that may cripple the laid down plans. The account department is expected to enter amount of rent for three months in advance, business rates amount on the in the months they are expected to be paid and consider the annual increment on the wages and salaries for the employees. The amount to be allocated for marketing department to cater for advertising, marketing, promotion and PR should correspond to the approved marketing plan for next year. These cost should not be underestimated as there is always a direct relationship between the product or services sold and this item. The bank charges and interest on the any loan facility or funds.

All the departments should submit their projected budgets to the account department by the end of June 2016 in order to prepare a comprehensive budget that will show the projected cost for the entire company next year. The department will the present an annual budget after summarizing the departmental monthly budgets so as to provide a general view of the expected costs against the projected income. This annual budget should then be documented with various tasks and deadlines indicated very clearly. Finally the company’s policies on budget preparation should be adhere to and the departmental cost estimates must be approved by the departmental managers.

Reference

Harvard Business School. (2009). preparing a budget: Expert solutions to everyday challenges. 8-15

Chapter six

In chapter six of ‘Fundamental Accounting Principles’, John Wild (2012) discusses the topic on inventories and cost of sales. In most cases, a company’s goods or services are sold by a consignee or a consignor. While the consignee receives the products from the company and sells them on its behalf, a consignor on the other hand is responsible for shipping goods to other parties who sell them on the company’s behalf. In both cases, the company often has to wait for a given period of time before getting cash for the goods delivered. Because of this, keeping a day’s sales in inventory is essential because it helps the company to evaluate the amount of cash it will receive after the goods in the inventory have been converted into cash and after what duration of time.

When it comes to keeping an inventory, various methods are used. The first in first out method sees to it that goods are sold in relation to the time in which they were acquired. Under this method the items that were purchased first are also the ones to be sold first. In the last in first out method, assigning cost to the inventory is done in the basis where the newest products to be purchased are the ones sold first and then charged to the cost of products that were sold. In most cases, when addressing the issue of inventories and cost sales, a company has to use the specific identification method which identifies the cost of purchase for every item and then computes it as the cost of the inventory during the assignment of the cost to inventory (Wild, 2012).

References

Wild J, (2012) “Fundamental accounting principles” McGraw Hill

Chapter eight

In chapter eight of ‘Fundamental Accounting Principles’, John Wild (2012) discusses the topic on cash and internal controls. Cash and internal controls are best explained by evaluating information of the transactions that a company engages in. information on bank reconciliations for example, help one to identify the cash balance that the company has and the cash balance that is recorded in the bank statement. A bank statement is efficient in that it shows when the depositor started and stopped transacting and the cash balance that was left and also all the changes that occurred during a specific period of time.

According to Wild (2012), cash and internal controls help to identify the amount of capital that has been used, expected income and also the balances that remain. This capital is in various forms such as cash or checks. The cash is any form of currency or deposit that is available in the company’s savings accounts or its deposits in the bank. There is also cash equivalents which comprise of short term investments or assets that the company can easily convert into cash. This may also comprise of assets whose sales will not be affected by any rate changes in the market since their maturity rates are close.

Checks on the other hand are a form of capital where the person depositing the check has signed on it, indicating to the bank that the amount indicated should be paid to the person named as the designated recipient. For there to be good cash and internal control management, a company ought to have an effective internal control system. This ensures that the right policies are implemented and adhered to when dealing with accounting and other forms of operations within the company (Wild, 2012).

Reference

Wild J, (2012) “Fundamental accounting principles” McGraw Hill

Chapter nine

In chapter nine of ‘Fundamental Accounting Principles’, John Wild (2012) discusses the topic on accounting for receivables. This is the amount of capital that that is due from the customers for the credit sales. When accounting for receivables, one must take into consideration factors such as bad debts. These are accounts that belong to customers who have a tendency of not paying the amount that they had said they would. When dealing with such, companies often use the direct write off method where accounts for bad debts are recorded as losses as a result of bad debts receivables which are said to be uncollectible.

A company may give credit to some of its customers upon signing a promissory note. The note requires that the customer will have to pay a certain amount of money to the company, often after a given period of time and with interest. The interest is a charge for letting the customer uses the company’s money until the promissory notes’ due date is reached. While most customers pay the company back before or after the maturity date indicated on the promissory note, there are those who fail to do so and are therefore considered to be bad debts (Wild, 2012).

In most cases, the uncollectible accounts are materiality constraints, that is, the company can ignore them because their effect on the company’s financial statement is insignificant. Through the allowance method, the company will be able to compare the loss from the bad debts against the sales they helped to create for the company. The company can then assess its realizable value which is achieved by estimating the proceedings that are to be achieved after an asset has been converted into cash (Wild, 2012).

Reference

Wild J, (2012) “Fundamental accounting principles” McGraw Hill

Chapter ten

In chapter ten of ‘Fundamental Accounting Principles’, John Wild (2012) discusses the topic on natural resources, plant assets and intangibles. Plant assets, often referred to as fixed assets, are assets that a company will use in its various operations for more than one accounting period. Natural resources on the other hand are assets that get consumed when a company uses them in its operations. These assets could be used until depletion, which is the process a company undergoes when it allocates costs for such resources until the time in which it is consumed. Intangibles are assets that cannot be touched or seen because they lack physical properties. They however play an important role to a company’s privileges and competitiveness.

In the case of plant assets, cost will be incurred in relation to the expenditure that will be involved in getting the fixed assets in place and ready for use. Even though these assets endure various accounting periods, they eventually depreciate and the company is responsible for allocating their costs as an expense after the benefit that the company has gained throughout the accounting periods (Wild, 2012). The company can therefore determine the asset’s salvage value, that is, it value after its benefit period; useful life, that is the duration the asset was productive during the company’s operations; and when it becomes obsolete, that is, the asset is no longer useful in the company’s operations and it does not offer a competitive advantage.

 In the case of intangibles and natural resources, there are those assets that have either limited or indefinite life. Most intangibles tend to have indefinite life where their usefulness is not limited by legal, competitive or economic factors. Natural resources on the other hand tend to have limited life and their cost is allocated in relation to the duration they are estimated to be useful for the company’s operations (Wild, 2012).

Reference

Wild J, (2012) “Fundamental accounting principles” McGraw Hill

OPTION VALUATION

The Black-Scholes pricing formula for call options

Introduction

Before or in the process of venturing into the global trading options, it is wise for traders to ensure that they have a better understanding of all the factors which assists in determining the value of an option (Poitras 438). Such factors include things like the cash dividends, volatility, expiration period, intrinsic and time value, and rates of interest to be paid. This is because they are the building blocks of the call value of stock in the financial market.

Moreover, there still exist various options pricing model which makes use of the above parameters in determining the fair market value of the option. Black-Scholes pricing model is one of these models which are widely used. In many ways, these options are perceived just like any other form of investment. This due to the fact that an investor needs to first understand all that determines their respective prices so as to take advantage of the market.

Basically, in using the Black-Scholes formula to find the value of a call option on the respective stock, the outcomes are to be dependent on the two parts of the model. This is then to mean that as much as the model is used in determining the call options available, what is noted is that the first part of the model SN(d1) is assists in multiplying the price of the commodities by their respective change in the call premium in respect to the changes which underlies the price. This then implies that in computing the variables, what is obtained is the expected return or benefit whilst purchasing the underlying outright. Similarly, in calculating the call option of the stocks, the next part of the model N(d2)Ke^(-rt), it is noted that it offers the current value of paying the exercise price of the stocks upon its expiration. The reason for this is because mostly the model is only applicable to the European options which are typically exercisable only on their expiration day (Benninga et al 307). Thus, in calculating the call option of the stocks, it indicates that the result is computed through taking the difference between these two parts.

Regardless of the above considerations, the computations which involves in the above variables are somehow intimidating or complicated. This then implies that that in making such calculations, there is no need of ensuring that investors and traders have a diversified knowledge in applying the modeling in their own strategies. In the above discussion, the options which is available for traders is the accessing various online calculators although they boast robust options in pricing the values.

As much as the main drivers of an option’s price are concerned, the current stock price should be regarded as being fairly obvious. The general movement of the stock prices up and down shows that it has a direct, though not equal, effect on the option price too. With the increase in the prices of the stocks, the more likely the price of the call options is to increase although the price of the put option will decrease. In case the prices of the stock decrease, it will mean that the reverse will most probably happen to the price of the calls or the puts. This equally indicates that the intrinsic value is mainly the value which any option will have in case it was to be exercised today (M & F.S 153). This then will remain to be the amount through which the strike price of any option is contained in the money. From the entire calculations, it shows the portion of the price of the option which is not lost because of the passage of time. This the indicates that the call or put option is obtained as;

Call option intrinsic value = the current price of the underlying stock\’s – the call strike price

Put option intrinsic value = the price of the put strike – the current price of the underlying stock\’s

In the long-run, the intrinsic value which is to be obtained for any of the option will reflect the effective financial advantage which will arise from the instant exercise of that option hence making it to be an option’s minimum value (M & F.S 154). The options which trades at out of money or at the money do will not have any intrinsic value.

Nonetheless, with the computations done, we can say that there exists a profound relationship between the call option value and the changes in each variable. With time value, it is usually the amount through which the option’s price exceeds the intrinsic value. This then indicates that it will be directly related to the amount of time such an option will have until it expires and the stock’s volatility. This is obtained as;

            Time value = option price – intrinsic value

Therefore, the more the time the option will be having before it expires, the greater its chances in ending up in the money. Although this component of an option expires exponentially, its actual derivation for any option is a fairly complex equation. The general rules is that as option will end up losing 1/3 of its entire value during its first half and 2/3 in the second of its whole life.  This makes it to be a significant concept for any security investor since the closer he or she gets to the expiration, the higher the chance of moving in the underlying securities which of course impacts the price of such an option (Albanese et al 321).

Additionally, although volatility is difficult to quantify, the effect it has is that it is a subjective. This is to imply that it will assist in determining the possible extent of the future moves which underlies the stock. Statistically, 2/3 of the entire occurrences of the price of stock would happen within plus or minus one of the standard deviation of the movement of stock over the set time. As a result, volatility looks back in time for the purpose of showing the extent at which the market has been volatile. In return, this will assist the options investors in determining the exercise price which is more appropriate to select for a certain strategy that might have in mind. Moreover, it will assist in setting the current price of the existing option as well as helping the option players in assessing the potential of the option trade. This is to say that the relationship of this parameter has is that it measures all the options the traders will be expecting in the future hence the implied volatility (Zhang 401). Seemingly, it is the indicator of the present sentiment of the stock or financial market. This will reflected in the option’s price thus aiding traders in assessing the future volatility of both the stock and option based on the existing option prices. Conversely the table below indicates the effects of these relationships that come as a result of computing the results of the stocks (Albanese et al 322). What is to be noted is that the user ought to input the entire five variable i.e. stock prices, time, volatility as well as the risk free interest rate to be met at the end.

To sum up, any stock investors who will be interested in making use of the options so as to capture the potential move in the stock ought to have a better knowledge of how the options are priced. In addition to the principal price of the stock, the main determinants of the option’s price are mainly its intrinsic value- that is the amount at which the strike price of any option arrived at will be in-the-money as well as its corresponding time value.  Furthermore, time value will be related to the amount of time which will be remaining for such an option to expire and the option’s volatility. In addition to that, volatility is of a particular rate of interest to a stock in the sense that it wishes to use options so as to gain an added advantage (Janakiramanan 401). Acknowledging the existing and current volatility which is contained in the price of any particular option is important for any potential investor who desires to take the advantage of the stock price movement.

Work cited

Benninga, Simon, and Benjamin Czaczkes. Financial Modeling. Cambridge, Mass: MIT Press, 2000. Internet resource

Monetary and Financial Statistics: Compilation Guide. Washington. D.C: International Monetary Fund, 2008. Internet resource.

Albanese, Claudio, and Guiseppe Campolieti. Advanced Derivatives Pricing and Risk Management: Theory, Tools and Hands-on Programming Application. Asterdam: Elsevier, 2006. Print.

Janakiramanan, Sundaram. Derivatives and Risk Management. Chennai: Pearson/Dorling Kindersley, 2011. Internet resource.

Zhang, Peter G. Exotic Options: A Guide to the Second Generation Options. Singapore [u.a.: World Scientific, 1998. Print.

Poitras, Geoffrey. Risk Management, Speculation, and Derivative Securities. Amsterdam: Academic Press, 2002. Internet resource.

Creating value at Walmart

Maximizing share holder wealth and ethical treatment of employees in Walmart

            To maximize shareholder wealth big American companies firstly focus on maximizing profits. With an aim to maximize these profits, companies are paying lower wages to their employees in order to reduce on their overall costs. Companies are also scrimping on capital investment. Such initiatives help maximize profits as well as shareholder wealth but they are hurting to the economy (Massengill, 2013). The shareholder wealth maximization goal for Walmart Company states that the company should be run in a way that maximizes the wealth for shareholders. The progression of this goal in Walmart can be determined by looking at the stock price. It contains information that used by investors to understand the current profitability and the future profits and opportunities of the firm. In its maximization of shareholder wealth, Walmart violates the rights of the employees and majority of its associates face wages below the poverty line. This practice by the company is ethically inappropriate though the company’s business models are successful (Massengill, 2013). Walmart workers are in a state of poverty and receive no help from the company whereas its owners have a higher percentage of combined wealth. Walmart is recently working to make change through a coalition with all its associates to repair their state of economy.

Being a good corporate citizen in the different countries where Walmart does business.

             Walmart has tried to play various roles as a good corporate citizen. It offers goods needed by consumers at a lower price hence satisfying the wants and needs of those consumers. Among other companies, it is selected as one of the companies with good stores selling socially responsible commodities for its citizens (Spotts, 2005). It has made some improvements in its image and operations to ensure that it meets the corporate social responsibility. Shareholders have also started emphasizing for social responsibility in the company. The company is successful in selling a wide range of commodities from groceries to luxurious commodities like televisions. The company has also invested its finances in charity drives, lobbying campaigns and working in popular causes for example carbon and childhood emissions to build support in congress (Spotts, 2005). Walmart is doing all these to protect its image among the citizens. However, all these have not helped it as such. The company has been criticized of destroying neighborhoods, discriminating against female employees and over exploiting its workers with low wages and salaries hence opposing its efforts to be a good corporate citizen.

Moving from a privately held company to a publically owned company and the issue that come along with that change

            Walmart evolved from Sam Walton who strongly believed in leadership through service and hence inspired it and basing on this principle, Walmart was built. It was started by Sam Walton as a privately owned business enterprise in 1962 (Fishman, 2006). Later on in 1970, the company went public where the earnings financed the expansion of the business at a steady rate (Fishman, 2006). This was to get support from the government in order to finance and support its activities which resulted into reduced costs hence raising enough proceeds for expansion. This later called for further expansion of the business to other countries.

References

Fishman, C. (2006). The Wal-Mart effect: How the worldś most powerful company really works - and how itś transforming the American economy. New York, NY: Penguin Press.

Massengill, R. P. (2013). Wal-Mart wars: Moral populism in the twenty-first century.

Spotts, G. (2005). Wal-Mart: The high cost of low price. New York: Disinformation.

            Reading Responses

            1) Body Image and Identity

            Key Themes and Topics Discussed

            Fat never fails to elicit powerful emotions in the contemporary society because it relates to appearance and the health of the body.  Providing focus on the experiential and physical dimensions of the fat issue results in a relationship between the material world and culture.  Fat materiality and culture is a volume that is valuable that portrays fresh ways to think about the presented matter in avoiding obesity. Fat generation is evoked by the way that individuals treat their bodies thus avoiding conserving the fats. Fat and weight should be lost based on a variety of reasons and especially on the health ground.  The global changing trend of food globally and labor conversations turns to the extensions of food. The talk about food is fully concerned in regard to the fat talks. Eating disorders is the major theme of the section as it results to unfavorable body shapes and unhealthy living (Popenoe, 8).

            Questions Arising From Key Themes and Topics Discussed

            Is fat associated with beauty? Beauty is more than that that meets the eyes. Beauty is regarded differently from the distinct societies. How does fat connect to gender and social classes? On the basis of gender, beauty is regarded differently as those women with large body sections such as buttocks are regarded to be more beautiful.  However, the men with a high level of fat association are not connected to beauty because of their body sizes which are not attractive.  Smaller body sizes are referred to be more attractive.  Additionally, those individuals that are fat are mostly viewed to be from the high-class society and of the prominent races. Mostly those from the black races are associated with fat because of health maintenance unawareness and ignorance.

            Ethnographic Observations

            Fat activism is efficient as it aims at transforming the general thinking of individuals based on the bias of anti-fat that is incorporated in social attitudes.  Fat activism is the only answer to obesity with the increasing occurrence of fat fear this is because individuals are not fully into the concept o living unhealthy. However, several individuals view the perception that anti-fat movement will not be beneficial in regard to their health.  Anti-fat is viewed as unhealthy because those with low fat in North America are associated with a low-class society which is a wrong assumption.

            2) Cultural (Mis) Representation

            Key Themes and Topics Discussed

            Anthropologists play a crucial role in creating knowledge which is crucial in developing cultural representation. Rosado has contributed greatly on cultural representation through research activities which help in generation of information about the culture. Research helps in understanding how culture contributes to the low understanding of grief and sadness.  The development of knowledge is thus crucial in facilitating cultural development and emotional changes adaptation capability. Anthropology is not prescriptive because it is triggered by the issues frequencies in the society. This helps in increasing the ability of individuals to handle emotional changes through the developed knowledge in regard to history and culture (Phillips, 4).

            Questions Arising From Key Themes and Topics Discussed

            The rage that is born from grief means that a man has to kill another. This is because the man needs surrounding that will facilitate him to carry out his anger. This act, therefore, generates hopes as the individual is fully able to drop and throw all the anger that he held initially.  How can fury be born from sorrow and how was sorrow restricted through headhunting? Rage, grief as well as head haunting work together in a self-evident manner.  Head haunting was that assumed to be influenced mainly by sadness which builds inside a man. Headhunting is also believed to be effective in generating a social balance between individuals.    Such circumstances help in understanding the origination of grief since one is characterized by anger (Rosaldo, 4).

            Ethnographic Observations

            Societies fail in understating the origin of grief because they ignore the fact that sadness is a major trigger.  Sadness causes a man to grief which then triggers the desire to haunt another being in the search for a favorite surrounding that helps in relieving the accumulative anger.  In order to understand the basis of grief, one must pass through sadness.  The alternative to grieves is head haunting as this helps in releasing sadness. Grief cannot be understood without getting involved in suffering situations that generate anger. Grief is mainly caused by suffering or emotional changes in regard to loss.

            3) Arts, Culture, and Representation

            Key Themes and Topics Discussed

            Arts expressions are generated from distinct practices in serving different functions in the society.  Fine arts are created typically for the purpose of developing functional value in skills development and aesthetic beauty. Arts can be utilized as a catalyst for change as well as history root. This helps in connecting individuals of a particular culture to the prior events thus suggesting fresh ideas as well as fresh insights. For example, modern dancers in both the 21st century and the 20th century shifted from the traditional movement which was structured in fresh ways of body movements (Rosaldo, 21).

            Questions Arising From Key Themes and Topics Discussed

            What is the importance of arts in regard to culture representation? It is of less importance that arts can be utilized to define the general definition of arts as it is of crucial significance.  Arts are therefore more useful as anthropologists utilize the impacts and the whole meaning of specific form in regard to cultural expression.

            Arts are crucial in representing the culture as it is utilized in making life even better. These forms of arts include photographs, sculpture, and paintings. Performing arts are also essential in defining and representing the culture. These arts include dance, theater and music.  Artistic expression has developed in the world today in the provision of outlets that are in regard to traditions, beliefs, thoughts as well as feelings. Arts additionally develop cultural advancement due to the knowledge providence of knowledge about beliefs development.

            Ethnographic Observations

            Culture provides more chances for development to arts. This is because it provides the basis where the fresh ideas can be incorporated. This helps in adapting to changes easily as the type of changes that are developed helps in improving different societal changes.  Arts help in representing the culture in that individuals are able to develop feelings as well as the traditional beliefs. Arts  presents different interpretations ranges as a particular story in regard to culture do not have to be retold  as intriguing and beautiful as arts depicts everything.

            4) Anthropology and Development: Critiques of Modernity

            Key Themes and Topics Discussed

            Anthropology development utilizes international aid and international development as the major objects of its development.  The major theme of anthropology development is triggering social actions from the different agents in the attempt of making economic, political and technical modification in a particular location. Achieving economic stability requires the development of innovative ideas that are not tied to history (Robbins, 21). Development cannot be achieved through history as modernization is characterized with advancement which requires fresh thoughts and solutions to the existing societal development issues. Market integration helps in ensuring that stability is achieved through eradicating poverty as it is the major influence of development failure.

            Questions Arising From Key Themes and Topics Discussed

            Why are those individuals that are involved in development willing to get rid of history and the involved lessons that it might offer? In order to achieve modernization, the developers are willing to get rid of history because it hinders advancement. History prevents individuals from becoming innovative because of the cultural ties that are related.  Eradicating history helps in the development of fresh and modernized ideas that offers solutions to the issues of development. What influences failure of planned development? Failure to effectively eradicate poverty influenced planned development failure.  In achieving development the particular areas are supposed to be characterized by stability which is not achieved often.  Poverty eradication can be achieved through technological transfers, marker integration as well as investments. This helps in modernization development as stability and independence are achieved. What makes development be driven externally rather than based on internal basis? Development is driven from the external sources because of lack of internal capability to maintain development.  The internal basis is mostly characterized by poverty which hinders the internal capability of influencing development.

            Ethnographic Observations

            Modernity from the perspective of anthropology appears as a theoretical ad straightforward elusive.  Modernization is a processed product which helps in defining modernization based on different time period.  This concept involves rationality and capitalism development. Modernity is not a tangible concept and this, therefore, makes it difficult to define cultural and social constructions. Traditional resistance prevents modernity from being achieved fully as innovativeness cannot be achieved. Integration of political, social and economic concepts helps in achieving development as the concepts provide the basis for improvement.

            Work Cited

            Phillips, Ruth B. Unpacking Culture: Art and Commodity in Colonial and Postcolonial Worlds. Berkeley [u.a.: Univ. of California Press, 1999. Print.

            Rebecca Popenoe. Feeding Desire. Fatness, Beauty, And Sexuality Among a Saharan People. 2004. Copyright.

            Renato Rosaldo. Ilongot Headhunting 1883-1974. A Study In Society And History. 1980. Copyright.

            Robbins, Richard. "Culture and Meaning." Cultural Anthropology: A Problem-Based Approach 4^th Ed. Belmont, CA: Thomson/Wadsworth, 2006. 1-38. Print.

            Porsche Strategic Management

            Question 1

            The moral of the fable is that in achieving development one must hold a strategic plan. It is inappropriate for the individuals to be involved in quick decisions which are not based on plans. Having a strategic plan means that all the decisions must be laid down and evaluated strategically while analyzing the associated benefits as well as risks.  Taking decisions that do not incorporate an additional plan in case of the occurrence of risk means that the business may fall into a loss. In generating income a business should additionally hold long term objectives and approaches which the couple did not have as they only thought of the present. This resulted in ignoring the capable risks which led to their fall.  Poor organization strategies are ineffective as they result to poor decision development due to lack of clearly stated objectives (Rothaermal, 454).

            Porsche is killing its golden goose because it is at the end of adopting a broad differentiation approach.  This is because the corporation is aiming for objectives that are too high for its capabilities.  The strategy, therefore, fails in assessing the associated risks as it is more based on maximization of revenue from the increased sales (Rothaermal, 455).

            Question 2

            The broad differentiation may result in the reduced market segment for the corporation. This is because the strategy requires much innovativeness which is associated with high production costs. This may, therefore, generate quality issues which may damage the reputation of the company as increased production may not priorities quality.  The corporation will therefore not be successful in achieving a fresh competitive position as the broad differentiation strategy will increase its responsibility thus damaging its market segment.  This is because the focused differentiation strategy works at ensuring that the customers are fully satisfied while broad differentiation approach is targeted at increasing sales and profit (Rothaermal, 454).

            Question 3

            The geographical diversification strategy that is being utilized by Porsche is successful. This is because the strategy helps in creating a wider market range for the corporation.  This is achieved through market integration where the corporation is able to obtain new trends in the diversified market (Rothaermal, 254). This is effective in developing quality products which are aimed at meeting the general needs of the consumers.  The major source of success for Porsche in the geographic diversification strategy is the fact that it is customer centric. This element helps in growing its market base as it produces products that with high capability of meeting the diverse needs of the customers in the diverse markets. Products differentiations based on the different geographies helps in maintaining a competitive advantage for the organization.

            Question 4

            Volkswagen is pursuing a brand differentiation strategy.  The strategy is advantages as it helps in generating a high level of satisfaction to the corporation’s consumers because it encompasses innovation (Rothaermal, 454).  This strategy ensures that the products are of high quality and are more developed in terms of technology that those from the competing companies. This helps in sustaining the competitive advantage.  However, the strategy is a disadvantage because it requires more research on innovation as well as technology adoption.  This implies that the strategy requires a lot of capital to sustain thus resulting in high-cost products. The products, therefore, fail in incorporating the diverse consumers that failing to obtain a larger market segment.

            Question 5

            In attempting to be a leading company leader Volkswagen should prioritize quality with the incorporation of appropriate marketing strategies.  This will help in ensuring that the market segment continuous to increase thus maintain and growing its reputation. Volkswagen may avoid quality issues as well as capital issues by adopting a customer centric production and marketing.  This strategy ensures that the consumers provide feedback which is essential in drawing solutions (Rothaermal, 454). The company should additionally focus on diversified products in terms of cost to avoid producing the given products at very high prices. This will help in ensuring that production is not rushed and the generated products are of high quality to grow its market. This will additionally help in attaining customers’ loyalty thus maintaining the competitive advantage.

            Work cited

Rothaermal Frank. Strategic management: Concepts. 2016.

Case study

This case study relates directly to ethical issues that George Wilson faces as the operation manager in ComCo Company where he is in charge.  The company was faced with stiff competition from Abco Company which is offering competitive prices in ComCo market area and George has to make a decision regarding the use of contaminated corns. George is aware of what he is supposed to do but every decision he makes there are going to be consequences. He is faced with the dilemma of whether to act as required by his supervisor or if he does not do so some layoff are going to begin in the plant hence unemployment (Ferrell, Fraedrich & Ferrell, 2013)..

George the operation manager in ComCo has a task of making decisions that are of ethical nature. Abco is a new entrant in the market who has begun marketing at very competitive prices posing a threat to comco company profitability. This means that George has to make sure that the production cost has reduced and sales increased. George supervisor Jake asked him to find a way of cutting cost. George secures a source of cheap com but they were contaminated (Ferrell, Fraedrich & Ferrell, 2013). They had aflatoxin in them which induces liver cancer. According to American law, any product that is contaminated with aflatoxin is not be consumed or sold in America. The ethical issue arises because George is aware that if he does not use the contaminated corn which is against the law employees will lose their jobs. Secondly, if anything arises George was to be held responsible for authorizing the contaminated corns to be used since his signature was the one to be on the railcars (Ferrell, Fraedrich & Ferrell, 2013). George is aware that the company plans to mix contaminated corns with non-contaminated ones so that aflatoxin cannot be detected. To George, this is morally wrong.

According to Underwood personal ethical model George can consider various things to do. With an absolute defense, George can be able can be able to end a litigation in his favor if it occurs. He can be able to prove the factual circumstances when acting as a manager. According to the law, George has powers to act accordingly (Ferrell, Fraedrich & Ferrell, 2013). The aflatoxin products have no place in the American market. Therefore, George has an obligation not to produce the products even though it is not prohibited to ship such products. Morally the action of producing this product is wrong. As much as the product is accepted in other countries they are not fit for human consumption. This is because they pose more harm than good to human health. He should also not demand any discount percentage from the suppliers of contaminated corns as this encourages the suppliers to supply corns that are contaminated. This also portrays a bad picture of the organization as their aim is to make huge profits at the expense of human health.

George has the option of making a right decision. According to Jake the contaminated corn chips can be sold in Mexico since there are no laws prohibiting products that are contaminated with aflatoxin. He further adds that the more corn chips produced the greater the profit which in return will mean higher bonus for George. This puts George into temptation and makes it even harder for him to make a decision. The most ethical decision George can make is turning down the offer of the cheap contaminated corns (Ferrell, Fraedrich & Ferrell, 2013). He can seek another source for corns which are not contaminated even though they will not be as cheap. He can also put into consideration laying out employees who are not efficient in their work to reduce operation cost. This put him in a better position as a manager who works towards the objectivity of the organization and is ethically upright.

Reference

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2013). Business ethics: Ethical decision making and     cases. Mason, OH: South-Western/Cengage Learning.

Purchasing management in Singapore Airlines

Introduction

This paper aims at analysing the supplies management at Singapore Airlines. It includes the criteria for supplier selection, the operations of purchasing and the overall supplier selection.  It describes the needs and the goals that a selected organisation should have and the various issues that should be considered in the selection criteria of this organisation. It also gives the recommendations for the ICT that should be applied in order to improve the operations of purchasing process in the organisation. It highlights the appropriate tools that should be included in analysing the various prices of the intended purchases in the market.

Singapore Airlines selected Moog Singapore Pte. Ltd. a firm that designs, manufacture, integrates solutions and products for precise motion control for a 12-year contract to offer support services for equipment for flight control that had been installed by Elma, maker for control equipment had installed (The Buffalo News, 2016).Moog Singapore has systems that achieve high performance in the control of commercial and military planes, space vehicles and satellite broadcasting, missiles, wind energy, industrial machines, medical equipment and marine applications. Its products align with proportionate valves and servo, servo drives and motors, servo actuators, systems for motion, software and controllers, data slip rings and power transmissions. The interest for the company arose from a combination of different capabilities ranging from designing and manufacturing components for critical motion control and the capability to develop and ensure assimilation of the whole system. The company’s solutions were found to work well even in environments that are very sextreme and uses the newest technology. The company’s market include consumers who need their in-house resources to be improved and development of projsects. The firm has its market located mostly in the South East-Asia and Singapore and it extends to various long term customers across different industries. The company face stiff competition from the various multinationals that offer similar products and services in the Singapore market. The organisational goal include providing full system capability and motion solutions that are of high performance. (Moog Singapore Pte. Ltd, 2016)

Supplier Selection Criteria and issues

Supplier selection denotes the process where suppliers are identified, evaluated and contracted (Monczka, et. al 2012). The company aims at give respectable treatment to its suppliers which includes fairness in any of the relationship with them. Business operations, products and services offered by suppliers to Singapore Airlines limited should comply fully with laws or regulations of the countries in which the goods and services to be supplied are based. The business and financial records should be accurately maintained by the supplier according the laws and regulations and the generally accounting principles. In the process of supply selection, there is the need to observe fair competition according to the provision of the locals, such those activity that restricts competition must be eliminated. Any commercial decisions including sales terms, prices, market divisions and customer allocation should be made independent of agreements or understandings with competitors. The company also upholds the need for ethics in selection process, such that dealings of business negotiation are handled with transparency, integrity and honesty. This ensures that there is no any kind of fraud, bribery, corruption, exhortation or such behaviours that involve inappropriate benefits should be tolerated. If there arises a situation that perceived, potential or actual conflict of interest, it should be disclosed fully to the organisation. Any kind of relationship with a distributor , supplier, travel agency or supplier with entities  with who have a relationship with Singapore Airline and that is related to business matters, should not be allowed to interfere with supply of products or services to the organisation. The suppliers must have in place safety and health protection policies, and have management systems that will ensure provision of a working environment that is secure. This should provide safety of every product or service offered to the organisation through the right policies, implementation and monitoring. The supplier must meet the organisational need to abide with environmental laws, and practices that pertain to waste disposal, emission and pollution of air compliance and try to minimise the effects of the business processes on the environment. The management of the environment is a key factor that is considered by Singapore Airline while selecting suppliers. The suppliers must also adhere to the standards of labour, in regard to non-discrimination, equal opportunity, minimum age, wage standard and working ours.

For any organization, effectiveness in evaluating a supplier and the purchasing process is a very vital. Due to the fast rate of globalization, unpredictable price in the market, rapid technological changes and increasing concern for health and safety measures, there is an increase in the number of factors to be considered. Singapore should aim at looking into such factors in setting up a criteria for supplier selection (Beil, D. (2009).

Quality: this refer to conforming to fitness or requirements to use. This should be in terms of absence of defects or design of the product to the degree that it will satisfy the airlines specification. Delivery: this refers to quality specifications and ability to meet deadlines, a criteria that will apply to suppliers before being considered for selection. Repair service. This refers to whether the supplier will manage to provide repair service on time for the products delivered to the airline. Technical capability: connotes the current and future technological capability design and speed of production. Management and organisation: refers to the structure of the supply firm and its adherence laws (Monczka, et. al 2012).

ICT for Purchasing Operations

Information technology is increasingly becoming very important in the process of purchase and supply management, which means that there is high need for an organisation to acquire it the any procurement process (Gray and Zappalà, 2012). Thus, Singapore Airline needs to adopt information technology in the process of supply management, including standards and policies to cover the various risks and procedures that come with this process. This adoption also needs to a reference to other available guidance that that may be considered. When the organization adopts the e-procurement system, it must ensure that an additional procedures that are put in place meet the organisational or legal obligations that guide the purchasing process. The need for this ICT will guide the transparency and accuracy of the whole process to ensure that there is elimination of any undesired elements. ICT will ensure that there is electronic invoicing, a process of transmitting and storing of invoices by electronic means to eliminate the delivery of hardcopy documents. E-invoicing include the invoice content , a means to show that the invoice is was for supply that is genuine , audit trail maintenance involving arrangement that will ensure auditor’s access to information, credit notes content  , a means that will make sure that the invoice is original and upholds integrity ,deciding on whether self-billing will be done and how it may be controlled , electronic invoices storage means and whether application of digital signatures can be acceptable for e-invoice authentication and the necessary audit trails and controls.

The airline also needs in formation technology for classification of commodities which involves assigning a coding system that is structured for the products or services the organisation intends to buy. This coding will ensure easy identification of products and services. ICT is also necessary for managing electronic records to enable effectiveness in information sharing and exchange of knowledge. Online security and authentication controls are also important facet that will be provided by a good e-procurement system. The system will require high level of confidentiality in order to ensure online data security is attained. This will require the verification of user by user identification that is unique, validation through digital certificate or passwords, controlling the access or verifying the user privileges. Also important is an audit trail that will contain a record of the various actions of the parties involved in different procurement process.

The ICT tool that will best apply for Singapore Airlines is an Electronic Catalogue, which contains a list of various supplier products or services and which can be accessible through internet. Management of an electronic catalogue can be done in three different ways: managed and hosted in-house, third party outsourcing, or can be managed and hosted by the supplier.   This tool gives a list of products being offered by the supplier. Another tool is the use of a procurement software such as Coupa Procurement that will enable the organisation to use less time for purchase orders and less money. Such a tool will can span the whole process of purchasing from requisitions, approval, invoicing and the; management of the inventory (Gray and Zappalà, 2012).

Purchasing Cost Analysis

Any purchase of goods and services in an organisation require some kind of cost analysis part of which involves pricing verification. Cost analysis refers to examination and breakdown of costs after obtaining the relevant information. The best way to obtain the information on cost is to ask about the prices of goods and services through provision of a secrecy or non-disclosure arrangement which will facilitate swap over information. The organisation is bound by ethics to keep the information confidential. Singapore Airline needs to attain the best value for each good or service that it intends to purchase through conducting a competition via bids, quotes or proposal. Even where completion is absent, there is the need to make sure that the price the organisation pays is reasonable and fair. The purchasing team should obtain various quotation for each purchasing and use the quotation as a base of evaluating every supplier. The most important items to consider from the supplier quotation are the cost, terms and conditions for individual supplier, such as terms of payments and modification of machines and similar products (Krishnan, 1995).

For the purpose of cost analysis, it is important to compare the competitive bids. By requesting for various prices from the suppliers, the reasonable price is determined though this does not preclude totally analysing the cost.  The product with the lowest cost may come with additional early replacement cost, modifying and test cost necessary for the product to be applicable (Gupta, 2009). This means that products sold at the lowest price are not always giving the best option. A comparing prior quotations may be effective when one is determining whether the current quotation for the same product or service is viable. This comparison will aid the organisation when the procurement time is critical and asking for competitive bids means that procuring process will be late. Another technique that the organisation should apply is comparing a price list that is already available. This is necessary for the products or services that are similar to the items that are availed to the public. This should be done while considering the normal prices in the industry for the goods or services.  The airline may also apply the comparison of similar items especially when they are unique with a statement outlining why the item will not attain the specification set by the company. Another technique is the use of a benchmark for comparisons of items, done on the basis of measurable similarities like price for individual pound, price for individual test sample (Woods Hole Oceanographic Institution, 2007). By applying these tools or concepts, the appropriate cost will be obtained at two ideal times; when a new supplier is being taken through the qualification process and at the time of contract evaluation or renewal more so if there was a failure in the past.

Conclusion

This report has outlined the analysis of the purchasing needs of the Singapore Airlines and has focused on the entire purchasing process to identifying such needs with the overall purchasing goal. In the process of supplier selection, the organisation needs to achieve fairness in the treatment of all its suppliers and the criteria for the selection requires that the interested suppliers should comply with the code of conduct outlined by the organisation that also involve compliancy with laws and regulation of the state. The criteria considers the quality of the products and services provided by the supplier and the delivery time, repair services, technological capability and how its management adheres to the law. To cover the various risks and procedures that are involved in the purchasing management, there is a need for the organisation to adopt information technology. ICT will ensure that transparency and accuracy of the purchasing process, and help in eliminating any undesired results in the entire process. This will be achieved if the right ICT tools are used for the procurement process to ensure maximum benefits at minimum cost of the good or service provided. For these benefits to be achieved, a thorough analysis of the cost of products and services offered by the suppliers must be done.

References

 Monczka, R., Handfield, R., Giunipero, L., Patterson, J. (2012).Purchasing and Supply Chain Management.249

Weele, A. J. (2006). Purchasing & supply chain management: Analysis, strategy, planning and practice. London: Thomson Learning.314-315

 Gray, C. , Zappalà, S. (2012).Impact of e-Commerce on Consumers and Small Firms. Ashgate Publishing, Ltd.104-110

Krishnan, P. G. (1995). Purchasing and materials management. New Delhi: McGraw-Hill.60-64

Gupta, K. R. (2009). Cost management: Measuring, monitoring & motivating performance. Delhi, India: Global India Pub. 77-82

Woods Hole Oceanographic Institution (2007). Price Analysis Techniques. Retrieved from: http://www.whoi.edu/procurement/price-analysis-techniques

Beil, D. (2009) .Supplier Selection. Ross School of Business. Retrieved from: http://www-personal.umich.edu/~dbeil/Supplier_Selection_Beil-EORMS.pdf

The Buffalo News (2016). Moog wins Singapore Airlines support contract. Retrieved from: http://www.buffalonews.com/business/moog-wins-singapore-airlines-support-contract-20160219

Moog Singapore Pte. Ltd, (2016).About Moog Singapore. Retrieved from:

 http://www.moog.com.sg/

New Singapore Airlines Suppliers’ Code of Conduct Singapore Airlines Suppliers’ Code of Conduct Singapore Airlines Suppliers’ Code of Conduct Singapore Airlines Suppliers’ Code of Conduct. Retrieved from: https://www.singaporeair.com/saar5/pdf/corporate-info/supplierscodeofconduct.pdf

MARKETING MANAGEMENT

            Introduction

            Marketing management relates to the organizational focus on practical application of marketing techniques and methods within the enterprise. This involves managing of the firm marketing resources and activities. Marketing has gone beyond borders due to the globalization of firms. This makes the firm's international and hence international marketing strategy. To market an organization there are managers who are in charge. They are responsible for influencing the level, timing and the composition of marketing due to customers demand (Chandrasekar, 2010). Their roles vary from one organization to another significantly depending on what the business is based upon, corporate culture and business size. A firm needs to possess a detailed objective to give a clear understanding of the business and the market it operates in to create an effective, cost-efficient strategy of marketing. Marketing management and strategic marketing form a strong foundation of an organization.

            In the fashion industry, marketing management plays an important role. With marketing management, there is the necessity of investing in research. This enables the collection of data that is required to enhance proper and accurate marketing analysis. This involves market and marketing research to obtain relevant information (Kazmi, 2007). This includes the application of marketing techniques to conduct a successful research. Some of these techniques include quantitative marketing, experimental technique, and observational technique. This facilitates in know the fashion trends and what the consumers are looking for with different age and different time span. He marketing managers the surrounding environmental situation to come up with fashion trends that are suitable for the period (Hutt, M. D., & Speh, 2013).

            Competitive intelligence in marketing management helps in identification of trends and provides an information foundation to the organization in market analysis. A brand audit is examined throughout the process of the brand. This makes a comparison with the competitors easy together with its effectiveness. To launch a new product several question arises such as how well is the current fashion is trending, what is are the organization strengths and weakness the opportunities and the threats existing or likely to come up with a new product, how competitive the product will be in relation to price and production cost, the current position of the organization to that of competitors and the strategic issues facing the business (Hutt, M. D & Speh, 2013).

 The launching of fashion products such as clothes and shoes have to be properly determined by the economic trends. This is because the brand determines the business market share to be increasing, decreasing or if it is stable. Every organization aim is to maximize profit and reduce production cost and at the same time increase the market share for the organization (Chandrasekar, 2010). Additionally, marketing management determines the economic value the product is likely to generate for the organization. This will in return increase the financial strength of the organization and increase its borrowing powers. This makes the organization to be in a better position to produce and go global. This portrays a bigger picture of a committed organization and with a great reputation with customers. Furthermore, a brand audit in marketing management determines whether the organization has the strength and the resource elements to enhance competitiveness. This makes the fashion organization to have a competitive advantage over other rival organization. The marketing management team should maintain distinctive competencies to allow the establishment of a successful brand as a result of research for the organization present and future performance (Kazmi, 2007). 

            It is quite essential to understand marketing and some of the strategies that are used. Marketing plays a significant task in ensuring that the business is able to face the challenges that the company or the product may face in the unfavorable economic surrounding. Demand is the key to all the operations that occurs in the organization whether it’s the financial operations, accounting and human resource operations. Thus the success of the business greatly relies on the success of the marketing strategy (Kotler & keller 2012). The marketing capability determines the demand of the product. Hence it is important to have an enabling marketing strategy.  Well done research on the market is one of the strategies that the organization uses so as to understand the marketing plan to be implemented. Before imposing any marketing plan it is important for a research to be carried out so as to enhance the organization to be aware of the marketing gaps that exist in the market, the customers’ wants and needs and the competitors in the line of market.  With the results from the research then the company’s administration is able to sit and strategies on the kind of product that they find more attractive and the one that would meet the needs of the people and they are able to choose on the marketing strategies that would enhance them meet their goals (Hutt, M. D & Speh, 2013). With the current evolution in the current world we are living in, fashion is part of the lifestyle for every citizen and especially the young generation. Hence there is need for the innovation of the fashion products such as the clothes and shoes. Thus the company ought to be involved in continuous research so as to know what’s trending in fashion so as to be able to innovate new designs into their clothe and shoes designs so as to meet the demand of their customers. 

            Advertising is one of the strategies that have a great influence on the demand of the product. This helps to create awareness to the public and with more and more awareness, this result to a high demand of the product due to the awareness of the product created. The company may have a wide selection of advertising their products since it has proven that the higher the product advertisement the higher the company’s tendency to cope and also to respond to the customers’ needs and wants (Kotler & keller 2012).

            Internet form of advertisement is one of the modern and most influencing media for creation of awareness to the fashion oriented customers. As the world is technologically evolving, majority of the people are found using the internet. Hence adopting the internet advertisement is the most effective advertising platform for fashion related products.  This is because the largest targeted population for these products is the youths who happen to be online most of their time (Kotler & keller 2012). This not only helps the company to promote its fashion products to only one geographical area but it promotes the sale globally as the internet is used globally. Creation of a website for the advertisement of the product is quite essential as it allows the customers to be able to understand the history, goals and any other interesting information on the company selling these products. This enables the company to gain popularity especially when their fashion designs are of unique features and of better quality and hence enables the company to be authentic and reliable. This attracts more and more of the customers into the business. The website may also enable e-commerce activity where the customers are able to purchase the products online at the comfort of their place with deliveries made to them and this greatly increases demand of the goods (Kotler & keller 2012).           

            An effective and reliable marketing information system is quite relevant for the success of the business. This enables the organization to be able to continuous access to market potential as well as the anticipated demand hence allowing the business to closely monitor the marketing environment. It is this surrounding that affects the success of the business. Hence it is important for the SWOT analysis. So as to thrive and expand in the sales of fashion products, it is important that the business understands well their environment so as to be able to cope with the market and excel. Human resource for instance forms the internal factors hence the employees should be well informed of the fashion products so that they are able to offer better services (Kotler & keller 2012). Other factors such as the competitors, social, economic, competitors and technological factors affect the sale of the business and hence their profit margin. Hence it is important to realize those factors that pose a threat so as to be able to solve them before they negatively affect the business.  It is as well important to identify the opportunities so that the organization may seize it and hence end up maximizing their profit from these opportunities. It is also important for the business to identify some of their weaknesses so as to be able to convert them into strengths.  

            It is important for the business to be able to develop a close and long-term relationship with their customers. This occurs after the business is able to understand the customers market where the business is able to realize the kind of designs that the customers need and their willingness to pay hence enabling the business to make decisions that attracts customers and maintains them as regular customers in the business (Kotler & keller 2012). The sales personnel therefore ought to be trained by the company on how well to present the product to the customers for profit gain.

Therefore the business may decide to divide the market into segments where they examine each of them and targets those whom they find as the best customers who can be effectively be pleased with the companies fashion product.

            The company should be able to understand some of the strengths and weaknesses posed by the fashion product bands that they produce. Hence they should be able to offer better and unique designs that ensure that the business is competent enough to be able to succeed in the market (Hutt, M. D & Speh, 2013). Thus the business should focus on understanding how their competitors operate so as to be able to react well, decisively and effectively towards any action they take in the market so as to reduce the risk of losing the business customers to their competitors (Kotler & keller 2012). The success of the sale of the fashion products heavily lies on how the products are delivered to the customers. In this line of business, the sale employees should ensure that they offer the best packaging and services to their customers. The supply chain of the company should ensure that the products are easily accessible to the customers while their distributors should have better knowledge of these products.

            Conclusion

            Marketing management has proven to be so effective in any business. As the creation of marketing plans, communication, customer relation and distribution value functions effective management is highly recommended. Thus it is important that any business should ensure that they have all the information concerning the market so as to be able to make the most appropriate decisions on the marketing management for the success of the business.

When a fashion product is chosen, the targeted customers are chosen and it is from this that the company looks forward to maintain their customers, expand the business and advancing their activities such as value creation in delivering their products. Communication is paramount in the success of the business since the creation of awareness is done through the use of these communication Medias such as the internet.

References

Chandrasekar, K. S. (2010). Marketing management: Text and cases. New Delhi: Tata McGraw- Hill.

Hutt, M. D., & Speh, T. W. (2013). Business marketing management: B2B. Australia: South-       Western,             Cengage Learning.

Kazmi, S. H. H. (2007). Marketing management: Text and cases. New Delhi, India: Excel            Books.

Kotler P., & Keller k. (2012). Marketing management. Pearson education, Inc