Why Do You Think This Strategy Became Less Viable in the 1990’s?

Chapter 12 – The Strategy of International Business Key Points of the chapter Strategy – is the actions managers take to attain the goals of the business (usually to maximize value for the shareholders/stakeholders). Value Chain – The operations of the firm compose the value chain which are the series of value creating activities that occur to create value. These actions include sales, production, IT, accounting etc. These activities are divided into support and primary activities. Primary Activities – Design, creation and delivery of the product. They are: 1. R&D 2. Production 3. Marketing 4. Sales Support Activities – Inputs that allow the primary activities to occur 1. Information Systems 2. Logistics 3. Human Resources Global Expansion Practices 1. Expand the market for your domestic products by selling internationally (Export) †¢ Requires a company to tap into their core competencies 2. Move production to the most efficient countries to realize location economies †¢ Some countries have a comparative advantage of production †¢ Transportation costs and trade barriers must not be an issue †¢ Location Economies is the value created by finding the most competitive place to produce product, therefore adding value i. Competitive can mean cheapest or best †¢ Creates a global value web as opposed to a value chain 3. Serve expanded markets from a single location, while recovering experience effects †¢ Experience curve: Systematic reductions in production costs that occur over the life of a product i. A products production costs decline each time the cumulative output doubles †¢ Learning Effects – Costs savings through learning by doing †¢ Economies of Scale – Reduce costs by creating a large volume of product, the larger your market, the more opportunity for this you receive. 4. Learn from foreign operations to increase your value Mature multinationals who already have operations in foreign markets can learn from their operations in order to create value for those specific customers. Pressures for Cost Reduction Managers can be forced to create value by reducing costs. This can be done through: †¢ Mass-produce a standard product †¢ Outsource certain functions †¢ Tends to occur in highly commoditized products (Chemicals, sugar, gas, steel) Pressures for local Responsiveness Arise because of: †¢ Difference in consumer tastes and preferences †¢ Infrastructure †¢ Accepted Business practices Distribution channels – May require a change in marketing strategy †¢ Host government demands International Expansion Strategies Global Expansion Strategy Focus †¢ Reaping cost reduction benefits through: †¢ Economies of Scale †¢ Learning effects †¢ Locations economies †¢ Low Cost on a Global Scale Method †¢ R&D, Production and Marketing activities are concentrated in a few favorable locations †¢ Try not to customize their products/marketing strategy †¢ Use aggressive pricing When to use it †¢ Strong pressures for cost reductions †¢ Minimal demand for localization Localization Strategy Focus †¢ Increase profitability by customizing goods to match tastes and preferences in international markets Method †¢ Increase the value of the product in the local market †¢ Duplication of functions †¢ Smaller production runs †¢ Still need to be as efficient as possible When to use it †¢ When cost pressures are not high †¢ When local tastes differ dramatically †¢ When you have fewer competitors Transnational Strategy Focus †¢ Multidirectional transfer of core competencies and skills †¢ Leveraging subsidy skills Try to achieve low costs through location economies, economies of scale and learning effects while differentiating their products for the local market. †¢ Very difficult to accomplish Method †¢ Redesign products to use the same components and produce them in one location †¢ Use assembly plants in key markets to assemble the more market specific final product When to use it †¢ When cu stomization and cost reduction pressures are high †¢ When managers have to balance the divergent pressures International Strategy Focus †¢ Taking products from your local country and without much customization, selling them in other markets. Method †¢ Centralize product development functions †¢ Tend to establish manufacturing and marketing functions in each major country or geographic region in which they do business. †¢ Increases costs but there are no cost pressures so that isn’t an issue †¢ May decide to do some minor customization of the marketing strategy When to use it †¢ Low cost pressures †¢ Low need for local responsiveness †¢ Selling products that serve universal needs †¢ Do not have many competitors Chapter Questions Q2: What are the risks that Wal-Mart Faces when entering other retail markets? How can the risks be mitigated? Economic Risks/Exposure Likelihood that economic mismanagement will cause drastic changes in a country’s business environment that hurt the profit and other goals of a particular business enterprise. †¢ Increase in inflation can hurt profits †¢ Recession †¢ Loss of confidence in the market and loans Legal Risks If Wal-Mart decides to enter a market where the legal system fails to provide adequate safeguards in the case of contract violations or to protect property rights they are opening themselves up to legal risks. Could affect the ability to participate in long term contracts and joint ventures Cross Cultural Literacy Risk: As experienced in this case, Wal-Mart suffered from cross cultural illiteracy, where they were ill informed about the practices of another culture which caused them to make bad decisions. Mitigation Strategy: Wal-Mart needs an adaptation strategy, which allows them to negotiate properly for the market, know the appropriate pay systems, set up the right organization, etc. They can do this by hiring local citizens, or a consultant. Transaction Exposure Risk: Extent to which foreign exchange values affect the income from individual transactions. Translation Exposure Risk: Impact of currency exchange rates on the reported financial statements. Mitigation Strategy: Lead strategy where you collect the foreign receivables early. Lag strategy, involves delaying payables if the currency is expected to appreciate. Political Risks Depending on where Wal-Mart is choosing to expand to, political forces that ould cause a drastic change in the country’s business environment could adversely affect the profit and other goals of a business enterprise. †¢ Strikes †¢ Demonstrations †¢ Terrorism †¢ Violent Conflict †¢ Enactment of unfavorable business laws CT 5 – Reread the management focus on the evolution of strategy at Procter and Gamble, then answer these questions: a) What strategy was P&G pursuing when it first entered foreign markets in the period up until the early 1990s? b) Why do you think this strategy became less viable in 1990s. In the pre-1990’s era P&G found their international expansion through the use of a localization strategy. They did develop many of their products in Cincinnati, but they relied on their semi-autonomous subsidiaries to manufacture, market and customize many of their products for the local markets their served. This model started to show signs of strain when many of the trade barriers that existed, specifically between European countries were lifted. This created an increase in competition, and for P&G exposed their now unnecessary duplication of assets and processes. Also the creation of the â€Å"big box† retailers (such as Wal-Mart and Tesco) were causing the competitive factors driven by purchasing power to put pressures on lowering P&G’s prices even further. Due to the increase in competition and the changing market conditions P&G closed some of their local plants and asked their subsidiaries to exploit as much economies of scale as possible in their production lines. They also asked their local centers to create and use global brands whenever possible to try and reduce marketing costs. While these cost avings were effective, they were still not enough and P&G then reorganized the company to be a pure Transnational Strategy, with more control occurring in the regional centers than ever before and using as little local responsiveness as possible to reach their customers so they could compete on price as much as possible. The benefits of the transnational strategy include: †¢ Cost reduction †¢ Reducing duplication of ass ets †¢ Creating global brands †¢ Manufacturing in places that have a comparative advantage in the production of that product †¢ Increase market share by beating your competitors prices Risks †¢ Very difficult to implement & manage †¢ Organizational Structures have to be very complex and it can lead to o Performance ambiguity o Confusion over corporate goals o Culture issues †¢ High coordination needs that are both formal and informal Chapter 13 – The Organization of International Business Key Points of the Chapter Organizational Architecture: the totality of a firm’s organization, organizational culture and people. These three areas must be addressed for a company to be successful in the global market place. The architecture must match the strategy of the firm. Organizational structure: Formal division of the organization, the location of the decision making (centralize vs. decentralized) and the establishment of intergrating mechanisms to coordinate the activities of subunits. Control Systems are metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits. Incentives are the divides used to reward appropriate managerial behavior. Incentrives are very closely tied to performance metrics. Processes are the manner in which decisions are made and work is performed within the organization. Organizational Culture refers to the norms and values systems that the employees of an organization share. Organizations are societies of individuals who come together to perform collective tasks. [pic] Organizational Structure 1) Vertical Differentiation – location of decision making a) Centralized – When the decisions are made by upper management Pros: †¢ Can facilitate coordination †¢ Ensure decisions are consistent with organizational objectives †¢ Give top level manager the means to bring about changes (authority) †¢ Avoid duplication of activities ) Decentralized – Local managers make the decisions †¢ Top management can become overburdened when decision making authority is centralized, which can result in poor decisions. †¢ Motivational research favors decentralization, people are more likely to give more to their jobs when they have a greater degree of individual freedom and control over their work. †¢ More rapid response †¢ Can result in better decisions because the people with the best information are the ones making the decisions. †¢ Can increase control, making the management more autonomous and therefore accountable. Frequently it makes sense to centralize some decisions and to decentralize others, depending on the type of decisions and the firm’s strategy. 2) Horizontal Differentiation – formal organization structure Decision is made on functions, type of business or geographical area. †¢ International Division – When a single division runs all the international activities. Facilitates the international strategy. †¢ Worldwide area structure – World is divided into geographic areas, each division has its own value creation activities. Facilitates local responsiveness. Difficult to transfer core competencies. Worldwide product divisional structure – Each division has its own value creation activities organized around the products they produce. Headquarters retain responsibility for the overall strategic development and financial control. Gives opportunities to consolidate the value chain creation of different subunits. Can require a lack of local respon siveness. †¢ Global Matrix Structure – Tries to solve the issue Bartlett and Ghoshal have argued where a company needs to be price competitive and locally responsive by creating a matrix where decisions are made by both product and regional managers. It is very difficult to pull off a global matrix structure as it creates conflict for the employees having two bosses with two different goals. In light of these problems many firms that pursue a transnational strategy have tried to build flexible matrix structures based on enterprisewide management knowledge networks and a shared dual culture. 3) Integrating Mechanism – mechanisms for coordinating subunits †¢ The need for integrating mechanisms changes with the strategy, the company is using: Lowest – Localization strategy Highest – Global and Transnational †¢ Very important in firms trying to transfer core competencies between units †¢ Very important in firms trying to recover economies of scale and learning experience with a web like value â€Å"chain† Questions CT2 – Discuss the statement â€Å"An understanding of the causes and consequences of performance ambiguity is central to issue of organizational design in multinational firms. † Performance Ambiguity exists when the causes of a subunit’s poor performance are not clear. This is not uncommon when a subunit’s performance is partly dependent on the performance of other subunits; when there is high interdependence between different subunits. In firms not pursuing a localization strategy, certain degrees of performance ambiguity are going to exist. In an international strategy, integration is required to facilitate the transfer of core competencies and skills. The success of a foreign operation is partly dependent on the quality of the competencies transferred from the home country, therefore these firms must design an organizational strategy with enough integrating mechanisms to achieve this. In firms pursuing a global standardization strategy they need to recover location and experience curve economies, making many of the firms processes interdependent. This will require even greater controls and integrating mechanisms and make the decisions more complex and the decision tradeoffs more substantial (i. e. save money on this product or spend money to make it easy to sell the product). Firms with the highest level of performance ambiguity are transnational firms. The multidirectional transfer of competencies requires significant interdependence and lots of join decision making, making the performance ambiguity very high. This means the control costs are going to be highest in transnational firms and that many of the costs recovered by the transnational strategy are lost to creating the expensive control systems that must exist to facilitate the strategy. Another byproduct of this strategy is that global and transnational firms need to do more than use only output controls of objective performance metrics such as profits, productivity and market share in order to control their subsidiaries. These firms must look into cultural controls, encouraging managers to want to assume he norms and value systems and use those values to solve problems between the interdependent units and avoid finger pointing based on the output results. CT5 – If a firm is changing its strategy from an international to a transnational strategy what are the most important challenges it is likely to face in implementing this change? How can the firm overcome these challenges? While becoming a multinational firm does not require a strategy change, in order to compete in the global economy and be the best at what you do, organizational change may become a requirement. First the company must decide their strategy and then they must develop an appropriate organizational structure to complement those goals. A transnational strategy focuses on the simultaneous attainment of location and experience curve economies, local responsiveness and global learning. This firm may want to look into a matrix structure where managers from regional and product areas come together to make decisions that will benefit both points of view. They need to implement control systems that will allow them to work with their globally dispersed value chain and to transfer core competencies and therefore will likely be more culturally driven then output driven. Decisions should be made at both a centralized and decentralized level depending on what the company needs to transfer between units and what specifically about the product needs to be locally responsive (e. . branding/marketing). There needs to be a mix of informal and formal integrating mechanisms which can be found in the decision matrix and via informal networking tools (e. g. Twitter). Finally there needs to be strong culture cultivation to keep all the units on the same page which can be accomplished by a strong leadership with good vision and a willingness to participate in the dissemination of that vision. According to the text the three basic principals for performing organizational change include: 1) Unfreeze the corporation through shock therapy Incremental changes are not necessarily enough †¢ People can easily reject or avoid incremental change †¢ In this case the announcement of a dramatically different structural organization to facilitate the new goals †¢ Senior managers must lead the way in the changes and the unfreezing process 2) Move the org to a new state through proactive change in the architecture †¢ Reassigning the responsibilities in the new organization †¢ Changing the control systems to be less output based and more culturally based †¢ Letting people go who are unwilling to change †¢ The changes must be done quickly Involving the employees from the beginning will get their buy in and will makes the changes better received. 3) Refreeze the org in its new state †¢ This step can take longer †¢ It requires culture es tablishment while the old one is dismantled †¢ Re-socialization of employee behaviors †¢ Hiring policies must change †¢ Control systems must be tested and be consistent with the new culture and ignore the old one †¢ The upper management must be diligent and not allow the old pressure to creep up Chapter 14 – Entry Strategy and Strategic Alliances Key Chapter Points Two Major Ideas: 1) The decision of which foreign markets to enter, when to enter them and on what scale 2) The choice of entry mode Which Market (Recap of chapter 2) The attractiveness of a country as a potential market depends on balancing the benefits, costs and risks associated with doing business in that country †¢ Long Run economic benefits of a function of size of the market, present wealth, likelihood of future wealth †¢ Future economic growth, which is a function of a free market system and the country’s capacity for wealth. †¢ Riskier in politically and economical ly unstable countries †¢ What kind of value the firm can create for consumers in that market Timing of Entry Early entry – when a firm enters a foreign market before others do First movers advantage †¢ Pre-empt rivals †¢ Gain market share †¢ Establish a strong brand Creating switching costs to tie your buyers to you †¢ Set the price so you can cut prices when competitors arrive First movers disadvantage †¢ Pioneering costs, from the foreign business system being so different that time and expense must be sacrificed to learn the ropes †¢ Business failure if the firm makes mistakes based on bad knowledge †¢ Promotion of a new product or idea Late Entry – When a firm enters a foreign market after other firms do †¢ Can watch what your competitors do, and learn from their mistakes †¢ Can ride the coattails of their marketing and promotion †¢ Don’t need to educate your customers Scale of entry †¢ Large scale Requires significant resource commitment which can lead to strategy commitments, where you can’t get out of the deal without suffering significant consequences o It does create a presence and instills belief that you are committed to your product and customers †¢ Small Scale o Allows a firm to learn the market without exposing the firm to risks o Way to gather information o Lack of commitment may make it harder to attract customers Entry Modes Exporting Advantages †¢ Avoids substantial costs of establish manufacturing operations in another country †¢ May help the firm achieve experience curve, location economies and economies of scale Disadvantages It may be cheaper to produce abroad †¢ High transportation costs on shipping could make it uneconomical to export †¢ Tariff barriers may prohibit your exporting, making it uneconomical, and the threat of tariff barriers can make it risky †¢ Delegates of the company that perform the sales, marketing, se rvice may work for other competitors and therefore will not have your best interests in mind Turnkey Projects – The contractor agrees to handle every detail of the project for a foreign clients, including the training of operational personnel. At the end the client is handed the â€Å"key† to a fully functional plant. Typically in complex production businesses. Advantages The know how is a valuable asset and you can earn returns on that knowledge †¢ Useful when FDI is limited †¢ Can be less risky than traditional FDI Disadvantages †¢ No long term interest in that country †¢ May create a competitor out of the creator of your factory †¢ Could be selling your comparative advantage Licensing – The licensor grants the rights to intangible property to another entity for a specified period, and in return, he licensor receives a royalty fee from the licensee. Advantages †¢ Licensee puts up most of the capital †¢ Good for firms lacking capital †¢ Prohibited from direct investment in a foreign market Disadvantages (3 serious ones) Does not give tight control over manufacturing, marketing, strategy, etc. that si required for realizing the experience curve and location economies. †¢ Limits a firms ability to share wealth amongst various divisions, and therefore limits a coordinated international strategy †¢ Giving away your comparative advantage Franchising – a specialized form of licensing in which the franchiser sells the IP, but also the franchisee needs to follow those specific rules the franchisor sets out. Advantages †¢ Firm is relieved of many of the costs and risks †¢ Good for firms lacking capital †¢ Good when you are prohibited from FDI in that country †¢ Allows you to build a global presence quickly Disadvantage Great for services, but perhaps not manufacturing †¢ Limits a firms ability to share wealth amongst various divisions, and therefore limits a coordina ted international strategy †¢ There are different definitions of quality, safety, etc. in different places making it difficult to maintain your image across other countries Joint Ventures – Establishing a firm that is jointly owned by two or more otherwise independent firms, it’s popular mode of entry into foreign markets. Advantages †¢ Get to benefit from the local firm’s knowledge of the host country culture, norms, language, political situation, etc. †¢ Provide the local knowhow to a new country †¢ Share the risks with another company Sometime political factors make it impossible not to partner with a local firm Disadvantages †¢ Risking giving away your comparative advantage to a potential competitor †¢ The firm doesn’t have tight control over local operations, making it difficult for companies needing to transfer a culture †¢ Shared ownership can lead to conflicts between the two corporations, which can be exacerbate d by the fact that the two firms are from different nations. Wholly Owned Subsidiary – The firm owns 100% of the stock in the project. Can be done through a Greenfield venture, where you build a factory from scratch or via acquisition of an existing enterprise. Advantages †¢ Protect your knowledge Tight control †¢ Required to gain experience and locations economies †¢ Can engage in global strategic behaviors Disadvantages †¢ High costs and risks †¢ Culture transfer can be difficult, especially in terms of an acquisition Chapter Questions Tesco Q2 – How does Tesco create value in its international operations? Tesco creates value by offering something that the market is lacking: a well run competitive grocery store. They enter emerging markets with growth potential and few competitors. They then acquire or partner with current enterprises in that country in order to ensure that the value they are creating will work for that particular consumer. Tesco researches their potential partners carefully, and they pick a solid chain with some stores and they build off of that known base. They bring to the table their core competencies, but they don’t remove the local managers who have the knowledge of the customer. Finally they have the capital and the retailing know-how to bring their moderately successful firms into a globally back force. This value is created out of successfully leveraging the joint venture strategy, where both firms bring something useful to the table and both are given the opportunity to be successful with their knowledge. Grocery stores are part service and part goods firms. Tesco’s strengths exist in both, but they are leveraging their service and management know-how transfer through the use of the joint venture. We know that value creation is measured by the difference between the converted inputs that create the cost of a product and how much the consumer is willing to pay for that product. More specifically in this case it is the amount consumers are willing to pay for the goods inside of the Tesco subsidiary. Porter states that it is important for the firm to decide where it wants to be strategically positioned in terms of cost effectiveness, and differentiation. Tesco wants to be a low cost provider of all the goods a consumer would purchase at a grocery store. They compete through their value chain by gaining purchasing power through expansion, and by leveraging their values skills in foreign markets. CT 5 – A small Canadian firm that has developed some valuable new medical products using its unique biotechnology know-how is trying to decide how best to serve the EU. Establishing a manufacturing firm outside of Canada is not outside of the firm’s reach, but it will be a stretch. Which of the following options would you recommend and why? a) Manufacture the product at home and let foreign sales agents handle the marketing. b) Manufacture the product at home and set up wholly own subsidiaries in Europe to handle marketing c) Enter into an alliance with a large European pharmaceutical firm. The product would be manuf in Europe y the 50/50 joint venture and marketed by the European firm. As stated in the text, if the firm’s core competency is the based on control over proprietary technological know-how, it should avoid licensing and joint-venture arrangements if possible to minimize the risks of losing control over that technology (option C). While the strategic alliance will allow for entry into the foreign market, I don’t feel that the EU is such a different type of market that it would be impossible to find someone in the US who they could hire to help them understand that market. The partnership can give competitors low cost access to the new technology and markets. Wholly owned subsidiaries for marketing would allow for the marketing to be owned by the firm and therefore reduce the risks associated with using the local sales agents that may serve their own interests in lieu of the firm’s. However, I suggest that the core competency of the firm is not their marketing skills, but rather their technological know-how. This means that they would be choosing to take on major risks and expenses in order to transfer a non core competency and therefore find themselves at risk of failure. Going back to the Lincoln electric case, we saw how selecting a mode of entry strategy on something other than your comparative can lead to significant issues. Exporting (option a) allows for the firm to realize location economies, experience curve economies while suffering from high transport costs, trade barriers and problems with local marketing agents. In this instance, the cost of shipping medical instruments is typically quite low, and the trade barriers between Canada and EU are nonexistent. However, they may find the local sales agents to be at odds with other competitors making it difficult to distribute the product. Despite this drawback however, I feel that the financial risks associated with option b and the dangers of losing their core competency in option c I would use the less risky option a. Chapter 15 – Exporting, Importing and Counter Trade Key Chapter Points Chapter Questions CT3 – An alternative to using letter of credit is export credit insurance. What are the advantages and disadvantages of using the credit insurance rather than a letter of credit for exporting: a) A luxury yacht from California to Canada b) Machine tools from New York to the Ukraine A letter of credit, abbreviated as L/C is: †¢ Issued by the bank at the request of the importer †¢ States the bank will pay a specified sum of money to a beneficiary, normally the exporter, on presentation of particular, specified documents †¢ Charge a percentage to the importer as a fee for the service †¢ May require the importer to do some type of deposit †¢ It is a financial contract †¢ Allows for the banks to determine the creditworthiness of your trade partner, so no relationship must exist for the trade to take place Export Credit Insurance: Sometimes exporters who require a letter of credit from an importer will lose their business to another exporter who doesn’t require all the additional work †¢ Thus when the importer is in a str ong bargaining position and able to play competing suppliers against each other, an exporter may have to forgo a letter of credit. †¢ This exposes the exporter to risk †¢ The exporter can protect themselves against that risk through the us of exporter insurance †¢ The FCIA provides coverage against commercial and political risks. Losses due to commercial risk result from the buyers insolvency or payment default. a) Because the competition for selling this product is somewhat high I would expect the buyer to have more power than the seller and therefore I could see them asking the seller to forgo the letter of credit. If that is the case export credit insurance will be the likely route to manage the trade. However, if the seller can get the buyer to comply the letter of credit between the reputable Canadian bank and the US bank will be a good asset to leverage if possible. b) Because of the nature of the transaction, the letter of credit may be the best solution. This way the seller can insure that the buyer is credit worthy and the bank will take care of the relationship needs so the buyer and seller do not have to create a relationship. My only concern would be that of the Ukrainian bank and whether you can trust their banking system. It may be more prudent to use the exporter insurance again to guard against the ever present political and economic risks in that country. ———————– Structure Incentives & controls Processes Culture People

DSTV Consumer Behaviour

DUST aims to give â€Å"So Much More† to their clients and they do this with the creation of an effective racketing strategy. They target people who demand a high level of entertainment with a variety of program offerings such as Movies, Music, News, Comedy, Documentaries etc, for the entertainment of their clients thus creating and delivering value to the customer. The customer may choose what they want to watch whenever they want to watch It, whether at home or on the move with various Innovations such as the decoder at home and the Walk which may be used on the move.With all the innovations they have come up with and made money off, DUST still aims to better he environment they work in whether it is improving the lives of people through charity organizations or CSS. DUST has created employment for people of Africa and opportunities for Africans such as the Face of Africa competition, New Directions Initiative and the creation of Channel O which focuses on the musical talent s of some of Africans best musicians.DUST has also created multiple initiatives focused on improving the lives of people living in South Africa such as giving access to water to people without and making green houses for the people of South Africa. DUST rated and Installed the playful system In multiple schools throughout South Africa. This system combines the energy of children who would play on a Roundabout Playful which would produce water as they play, this water Is then used by the children for drinking purposes and it is used to water the food gardens areas to create a green environment.DUST has already provided over 5000 trees for low income households and community areas in the country. (Anon B) Market Analysis Customers User's Demographic core LSI: 8 – 10 Gender: 50% Male 50% Female Age: 6 – 18 Years Selector's Demographics ore LSI: 8- 10 Age: 20 – 35 years Payer's Demographics Age: 25-arrears Organizations Capabilities Strengths DUST offers over 90 Cha nnels and 78 Audio Channels Innovative – They have introduced Mobile TV I. E.Drifts, Drifts USB, Walk, Drifts (Lisle's Notes) DUST is Technologically Advanced – â€Å"South Africans Leading Satellite Pay Television Brand† (Lisle's Notes) Weaknesses DUST offers too many options in its Premium Bouquet DUST Premium is expensive and the cheaper DUST compact offers little entertainment Dusts is difficult to navigate and troubleshooting problems such as loss of signal uh to mechanical failure are difficult to fix Opportunities A growing Mobile Entertainment market The online media streaming trends Technological advancement e. . HAD Television, Smartened APS that allow you to stream media, AD TV. Threats People going back to traditional entertainment e. G. Children choosing to play outside instead of watching TV Piracy e. G. Illegal movies being sold at traffic lights being substituted for DUST Box Office Competitors e. G. Estimates which has over 7 million Current Com petitors Cinema e. G. Steer-Senior, Memento etc. TOP Walking on Water On Digital MediaE-sat Talked Media Future Competitors Nettling Provider of on demand online streaming media Numb Television They aim to offer 150 Channels HAD Channels Catch-up/On Demand Service Youth Stream videos online TV's being able to connect to internet meaning consumers can stream videos online The Environment Economic Forces Petrol price increase means some items will become more expensive which may force some to cut back on luxuries e. G.Changing from DUST Premium to Compact in order to save money Technological Forces Introduction of Smartest which may connect to the internet Smartness becoming trend in South Africa, DUST Mobile customers may increase. Legal Forces Laws that allow/disallow the broadcasting of certain events e. G. Oscar Posteriors Trial may increase DUST viewers Environmental Forces Weather patterns changing, more rain means DUST signal will be affected, which affects the performance of t he network. Segmentation DUST operates in the Satellite TV Market. They have chosen to focus on mainly the entertainment and education segments of that market (Anon C).This market is one that provides consumers with amusement in the form of Game Shows, Sport, Music, Movies etc, as well as insight and knowledge in the form of Documentaries, News and Learning Programs. The best way to segment the DUST market would be to place a group of individuals who share a similar set of needs and want together and provide them with programming that would best satisfy those needs. (Moray Roberts L. ) This segment would be targeted at children below the age of 10 years. These children are part of the core LSI (LSI 6 – 8).There's no cultural, racial limitation to the group and the programs featured in this Segment would include channels such s Cartoon Network, Disney and Nickelodeon for Entertainment purposes as well as channels such as the Learning Channel for Educational purposes. I choose to segment in this manner because this would allow DUST to effectively target children more and provide higher quality services to the parents and the children watching the shows which would best fit Dusts slogan â€Å"So Much More. † DUST premium This segment is targeted at adult Males and Females between the ages of 40 – 50 years.This individual is at the prime of their life and needs a high level of service and value for money. This individual is part of LSI 8- 10 and has a high ranking position in their workplace. This individual gets to enjoy all of Dusts offerings exclusively at any time of day. These individuals may watch DUST on their own or with their family/friends. DUST compact This segment is targeted at young adult males and females between the ages of 20 – 25 years. These young individuals are students and cannot afford to pay Premium prices but would like to enjoy some of Dusts offerings.This segment focuses purely on entertainment e. G. Reality s hows, game shows, music and series. They get to watch their favorite shows in their apartments/flats or on their smartness. These individuals are part of LSI 7 – 9 and are generally into speaking about celebrities and the latest gossip. DUST Cinema This segment is targeted at adult Males and Females between the ages of 30 – 40 years. These individuals love watching the latest movies and with the price of cinema tickets increasing they would benefit greatly from an affordable movie ticket in the comfort of their own home or while on the move.These individual are social and can e found in restaurants with their family or friends but would prefer to watch movies at home where there are less people and more comfort. Conclusion DUST has been able to grow its market over the years by creating effective marketing strategies that satisfy the consumer's needs. This has increased the amount of loyal customers they have and through thorough understanding of their customer's behav ior they may continue to make the right decisions when it comes to what their customers want and need as well as what they offer. References Bridal Paramus S. Roberts-Lombard M, 2012, Consumer Behavior, 2nd Edition, Marketing, 12th edition, Pearson Education Inc, 10 February 2014 Anon A, http:// unbranded . Co. AZ/news/broadcasting/81013-dust- more-subscribers- more- money. HTML, 15 February 2014 Anon B, http://www. Melancholic. Co. AZ/Melancholic/ view/Melancholic/en/page 24238, 17 February 201 5 Anon C, http:// www. Superabundant. Com/AZ/index. PH? 17 February 2014 Anon D, HTTPS:// www. BC. Dude/?Joneses/overhead. HTML, 23 February 2014 Gill Model, 2013, http:// grubstake. Co. AZ/2013/05/09/did-top-TV-ever-stand-a-chaw once-Ana lays is-of-dusts- strengths-weaknesses', 24 February 2014

Widget Airlines

Imagine Widgets Airlines, Inc. operates 18-seat commercial flights between New York City and Washington, DC. After 10 seats have been sold on each aircraft, the company has reached the break-even point. Should Widgets consider offering a discounted fare for seats 11 through 18? Yes. Widgets Airlines, Inc. should offer a discount on the remaining seats. What are the advantages and disadvantages of not offering a discount on seats 11 through 18? The advantages of selling at a discounted price are that they would sell their seats faster depending on the price they are selling at.This could be a beneficial by gaining more customers who travel for business on a weekly basis especially on Thursdays. The disadvantage of not offering discounts is that the flight will have empty seats because the price is too high. Even though the company will lose profit initially, the airline will develope a good reputation for low fares and fair treatment; as a result, they will continue to get business. W hat are the advantages and disadvantages of offering a discount on seats 11 through 18?The disadvantages of offering a discount include: unhappy customers (who feel that the discount wasn't good enough, aka insignificant). Another disadvantage is that the company will lose revenue . The advantages include: happy customers (who are glad to have been able to save money and to not have to mess with rebates), selling the seats more quickly, boosting the company's reputation with the promotion, and possibly securing the loyalty of frequent fliers. How would you decide how much of a discount, if any, could be offered? What effect would the discount have on the financial statements of Widgets Airlines, Inc.?We will decide how much of a discount would be offered by comparing the other competitors. For example if the other competitors sell more tickets base on a %20 discounted rates for specific days, the company will adjust its discount rates at %25 on those days. Widgets would not lose any revenue because it is all profit at this point. This would only bring in more customers especially the ones who fly on a weekly basis. The financial statement will stay the same because all companies offer discounts at some point and this would show on the income statement.

KFC In India Essay Example | Topics and Well Written Essays - 3000 words

KFC In India - Essay Example Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. (Website: http://www.globalization101.org/What_is_Globalization.html Globalization makes use of modern technological advancements and also focuses on the quick transfer of technology, to keep with the changing world. Therefore, Globalization is a phenomenon that charges towards progress and engulfs the whole world, in this process. The development in technology has led to the process of Cloning and other artificial forms of life. Today, we have hybrid varieties of fruits and vegetables being imported from various parts of the world; which truly symbolises globalization. The widespread Globalization has led to the free movement and transfer of goods, capital, technology and people, from one hemisphere to the other. Therefore, there is an influx of numerous commodities across the globe. One of the entrants in the last decade, into the Indian market, is the KFC chain. The entry has been welcomed with both, expectations and controversy. Kentucky Fried Chicken, popularly known as KFC made its entry into India in 1995, by setting up an outlet in Bangalore. This was the time when the Indian market w as opening up to the international one, with MNCs and other international organizations coming into play. This was also the time when KFC was in the expansion mode and found the Indian market ideal to target. While the operations flagged off with success, KFC has come under the hammer for a few reasons. Firstly, it was the high level of monosodium glutamate content present in the food served. The high levels of the MSG content, in fact, were about three times higher than the prescribed limit. Next, the PETA or the People For Ethical Treatment of Animals organisation had problems with the manner in which the KFC processed its food and used animal livestock. In addition to this, farmers from the Karnataka Rajya Ryota Sangha (KRRS) landed at the doorstep of the first Bangalore outlet, to protest against the expansion of the fast-food joint into India. This paper attempts to analyse the entry of KFC into India, the problems that have been leveled against it and the various protests and the ethical implications associated. REASONS FOR PROTESTS The KFC chain has been subject to protests from a number of quarters. On the very first day, farmers marched onto the restaurant opening and protested

Nuclear Medicine Research Paper Example | Topics and Well Written Essays - 750 words - 1

Nuclear Medicine - Research Paper Example r radionuclide, which is in a bond with a supplementary molecules (such as, peptide, protein, or drug) or particles, that cumulates in the required tissue or organ after introducing it in the patient’s body through inhalation, swallowing, or injection (National Research Council, 2007). Depending on the characteristics, different radiopharmaceuticals are used for different diagnosis and treatment processes. Radiopharmaceuticals generally discharge beta or alpha radiation. As beta and alpha radiations are more effective than the gamma radiation that is used in diagnosis process, they are widely exploited in the most nuclear medicine procedures (National Research Council, 2007). The preparation of patients for nuclear medicine processes varies according to the type of examination or test. However, there are certain standard guidelines which are required to follow while preparing the patient to ensure the accuracy of tests. There is no need of special preparations for the scans associated with the inflammatory, bones, pulmonary, brain, lymphatic and renal systems (Patient Care, 2014). However, specific drug allergies are required to be noted by means of Diamox for brain scanning. For the scans associated with the gastrointestinal system, patients are required to fast for at least 4-5 hours (Patient Care, 2014). Some such scanning tests need pre-medicating as a part of a preparation. Further, cardiac tests consist of fasting of at least 4-5 hours prior to the test and persantine stress test need no consumption of caffeine for at least 24-30 hours before the test (Patient Care, 2014). Thyroid scanning needs pause on the consumption of specific medications befo re the scanning. Also, patients are required to inform their physician about the own medical history and present medications before going through the nuclear medicine procedures (Patient Care, 2014). Nuclear medicine is a painless, affordable, and safe mode of collecting medical data that would be otherwise

Achieving Community Awareness and Commitment Coursework

Achieving Community Awareness and Commitment - Coursework Example In this regard, the leaders are required to increase efficiency along with quality of different sustainable community activities (Bagin et al., 2012). Based on the current policy statements and communication formats, the proposed coursework tends to focus on discussing about the operationalized practices of the educational system of Rome City School District (RCSD), New York based on two major parts. The first part of the discussion incorporates the provisions of providing report card information of the school to a heterogeneous group of community members. In this regard, the discussion analyses the report card information by considering major areas of the school and possible questions that might be occurred relating to the current report cards and communication formats of the institution. The second part of the proposed coursework identifies and evaluates activities to be performed in the assessment that can help RCSD to accomplish its marketing and promotional goals of different academic courses successfully. According to the communication formats of the current educational system in the US, there are a number of guiding principles and policies duly accepted by the regulatory departments in order to increase efficiency of the reporting functions. In this regard, the report card information format of RCSD includes a clear structure of presenting the current educational procedures of the schools with adequate standards, which can be interpreted easily by a heterogeneous group of the community members (Bagin et al., 2012). In order to assess critically the key areas in the current report card information format of the institution, the following three key areas are considered that can differentiate the roles and significance of the RCSD to communicate to the existing community members efficiently. According to an in-depth understanding of the current report card format, compliance with the standards can be considered as a major key aspect that enable RCSD to

Train Wreck and Cholorine spill Case Study Example | Topics and Well Written Essays - 1250 words

Train Wreck and Cholorine spill - Case Study Example The tragic accident caused the death of nine people and displaced more than 5,000 from their residences, thus permanently altering the community. Although the eventual death toll was surprisingly low, the study shows that locals’ response to the emergency situation had significant gaps and it also emphasizes on the need to transform major organizations’ practices especially in handling hazardous materials. This case study, therefore, seeks to evaluate decision making processes in regard to no-notice evacuation during emergency situations, as well as, determining long-term effects of the chlorine disaster on organizations dealing with transportation. Overall, the case study attempts to highlight the necessity for improvement of evacuation procedures and recovery of transportation (Dunning & Oswalt, 2009). There are several specific issues emerging from the chlorine spill case study. For instance, operation concepts of rail transportation emerged, like the importance of keen train control, as well as, installation of automated warning technologies. The other outstanding issue in the study was the local community’s lack of information about emergency procedures to adopt in case of a chlorine spill, despite the fact that the hazardous material was transported across the town each day. The public’s need for transportation to their jobs following the evacuation was also a principal concern and so was provision of documents about transportation infrastructure, in order to foster recovery. Overall, evacuation concerns were the most outstanding in this case. For instance, locals did not know whether to seek shelter or completely leave the town, they also had no information about the safest routes to follow, or the best way to behave and collaborate with emergency workers, in or der to avoid being affected by the hazardous material. The