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Key QUESTIONS FOR DISCUSSION 
-Why did Iridium fail?  (No more than 50 words)

-What were the key aspects of Iridium's strategy and tactics?
-Define Iridium's value proposition to its customers, collaborators, and stakeholders.
-Who were Iridium's competitors? Did they succeed or fail? Why?

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Write a 1,050- to 1,400-word paper that addresses the following components: •Define organizational effectiveness. •Apply theories of organizational effectiveness to the management of criminal justice personnel. •Describe methods for exerting control in an organizational setting. Format your paper consistent with APA guidelines.

 

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Create a 2-3 -slide Microsoft® PowerPoint® presentation with detailed speaker notes. Use complete sentences, with correct grammar and punctuation, to fully explain each slide as if you were giving an in-person presentation. Include the following in your presentation: • Define a bureaucratic organization. • List the characteristics of a bureaucratic organization. Format your presentation consistent with APA guidelines.

 

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The history, development, and growth of Safeway

Safeway is an American based company dealing in retail and distribution of drugs and food and other substances which has its headquarters at Pleasanton based in California. It is the second largest private company in America in distribution and retail of drugs and food after the Kroger Company (Earle et al 69). It is involved in distribution of non food substances especially in the western part of America. It became a private company in 1986 but later after clearing its debts it was a public company again in 1990. S. M. Skaggs discovered that farmers at his local home area were poorly served by the grocery stores and decided to intervene and open a store which would serve them properly (Earle et al 69). As a minister he convinced the president and was able to gain a loan which he used to open up a grocery store to help solve the problem facing the farmers. In 1915 he realized that his store was not profitable and sold it to his son. By 1926 the son had expanded the business and had made up to 428 grocery stores as his father had wished for. People loved these stores since the services provided were excellent and they offered a wide variety of products and goods. By 1928 the company had expanded in to over 2000 stores after the company collaborated with Merrill. In 1931 the business merged with Warren and over 3000 stores were created thus making the business profitable (Earle et al 69). By 1955 the business had developed under skills offered by Warren. He introduced policies that enabled success of the entire company though the chairman of the company was still Skaggs. Warren came up with the policy of consumers picking goods on their own placed on different shelves. Warrens and Skaggs skills and policies enabled the company expand and overcome challenges.

After the world war two the company was able to develop and create more new and bigger stores which replaced the old ones. Safeway Company despite the Korean War was able to expand since prices were being rationed (Earle et al 69). Consumers gained trust and were attracted to shop in Safeway since they would get everything under one roof. Safeway provided wide range of products and fresh vegetables and fruits. In 1954 the company provided its employees with medical cover services which enable it become more popular among many people. By 1955 Warren retired as the president of the company but was succeed by Milton who was a member of board and management. Later in 1957 Magowan took over the presidency of the entire company. The company’s sales had increased in huge amounts. Under leadership of Magowan the company continued increasing its sales up to over ten billion dollars (Earle et al 69). This was a great move for the company and enhanced its development and expansion. In 1959 the company under leadership of Magowan had expanded and moved in different states. In 1960s the company started expanding internationally thus becoming global (Earle et al 69). In 1962 the company opened over eleven stores in England. In 1964 the company expanded its stores to Germany. It became an international company under leadership of Magowan who retired in 1998 (Earle et al 69). Through his leadership the company became global and overcame many challenges especially the great recession. It gained more profits and attracted most customers since services provided and products were of good quality and quantity. The supermarket has remained one of the customer’s choices being the second largest retailer of food and drugs in America.

The identification of Safeway’s internal strengths and weaknesses

In order to identify the strengths and weaknesses of Safeway Company SWOT analysis is used. The analysis provides a brief description of the situation the company in terms of profitability and loses (Safeway Inc. SWOT Analysis 8). The company’s strength is that it is numbered 52 out of 1000 stores in the fortune list. It has strong market strategies and positions in its way of generating revenues and making sales. It was numbered eleven in terms of sales distribution where it enjoys many different brands in the market. It provides a wide range of products that attract consumers since they provide them at lower prices (Safeway Inc. SWOT Analysis 8). Marketing mix is a strategy used by Safeway to promote its products. The marketing mix is inclusive of various strengths which the company uses and which include:

High quality Products

These are the goods offered by the manufacturers to the consumers in exchange of money. Products as part of the mixing in the market involves a number of factors which include quality, design of the products, features, packaging of the product, the brand name and the physical appearance of the product.

Affordable Prices

This is the amount of money various products and services amount to. The price is determined by the manufacturers and is affected by a number of factors which include the list price, available discounts and allowances, the time of payment and any credit services if necessary. Safeway Company ensures that prices are favorable and affordable to its customers. This attracts new customers and help in maintenance of other regular customers (Safeway Inc. SWOT Analysis 8).

Placement

This is the method followed so as to distribute products until they reach the targeted markets. Placement as one of the market mix consists of transport, medium of distribution, exposure and the destination required. Safeway ensures that its products are distributed in the right time in order to enable consumers get fresh products in time (Why Safeway (SWY) Is Gaining Today n.d).

Promotion

This is the process of informing and persuading customers to buy the available products. It is also one way of reminding customers on already existing goods and new goods. Promotion as one way of marketing mix includes adverts required, sales marketing and promotion. This is strength since it provides profitability and customer retention in the company (Wheelen et all 250). The company ensures it has various locations based in America and Canada which promotes expansion and profits. It provides promotions to its consumers in all its stores at various locations.

Internal weaknesses of the company are those challenges which hinder the company from making more profits. They include:

Unsustainable debts

The company faces huge debts that deter it from developing and growing rapidly. The debts affect the company’s financial situation both at present and in future (Safeway Inc. SWOT Analysis 8). The debts will affect the company success and economic condition subjecting it to losses and lack of continued growth.

Inflexibility to changes

The company due to its large size is not able to adapt to new changes. Bringing a change turns out to be expensive as a result of the size of the company.

Provision of poor services

The company has many stores making it difficult for proper supervision and management. Some stores may provide low quality services to consumers and go unnoticed since stores are many. The stores hinder proper management and provision of high quality goods and services (Safeway Inc. SWOT Analysis 6).

Employees based on unions

Employees employed in Safeway are unionized such that strikes and go slows are rampant in the company (Safeway Inc. SWOT Analysis 6). This results to lose since employees are key shareholders in all companies.

The kind of corporate-level strategy that the company is pursuing

Safeway Company uses the corporate strategy in carrying out its business. The corporate strategy used is strategic planning which ensures managers are able to plan for present and future success of the company (Robertson et al 123). Managers are able to use this strategy since it promotes profits in the company. Implementation of this strategy requires qualified and skilled staff which the company employees. A corporate strategy initiates use of strategic planning which promotes future success. Developing this strategic plan is a process which should be followed if success is to be achieved. A strategic plan is important since it outlines a company mission and vision and ways of achieving the vision through following the mission. The strategic plan will aim at improving the current situation in the company. It will lead to expansion of the company to other countries in order to make more profits (Shurtleff et al 965). Corporate strategy comes up with ways of outshining the competitors in the medical industry. The corporate strategy enables the company to determine its current business condition and look for ways of improving the business. The corporate strategy is responsible for prices and good relationship with customers which ensures success. Top managers in the company are skilled people who work towards success of the company drawing their effort from their CEO. The corporate governance strategies are useful in ensuring good relationship between stockholders and the managers. Managers use their skills in ensuring success is achieved and respect is maintained among all staffs in the company (Zolkos 48). Top managers work at ensuring long term success and sustainable growth and development. Top managers are keen to observe the environmental laws as a way of following government policies.

The company embarked on using modern technology in provision of retail services and information to the people globally. Online services are provided via the internet which is a technological strategy employed by the company currently (Robertson et al 123). Provision of vital information and customer care services are provided fast through use of the internet. This has however been challenging since information can be hacked by criminals. Online services are expensive to maintain and can lead to losses if criminals interfere with them. This is a major technological development which the company is using to deliver useful information to its customers globally (Robertson et al 123). Through use of this corporate strategy managers are able to come up with strategies which ensure that the company outshines its competitors. Managers are able to know the problems facing the company and come up with solutions on how to solve the problems. The objectives and aims the company should be achieved by managers applying their management skills. Managers ensure that the plans are well implemented and that the set goals and objectives are maintained. This makes the company remain strategically fit thus ensuring success in that company. The company uses a matrix structure in its management. It uses its control systems to provide quality services to its customers. The structure of the company supports business strategies and models in the company under leadership of the top management. The company respects its employees, customers and other stakeholders. It motivates its employees as well as providing affordable services to the customers (Robertson et al 123). The company also motivates its employees as one way of promoting success. Through use of strategic planning as a corporate strategy the company is able to utilize its resources in order to ensure it remains successful.

 

 

 

 

 

 

 

 

 

 

Works Cited

"Safeway Inc. SWOT Analysis." Safeway, Inc. SWOT Analysis (2013): 1-10. Business Source Complete. Web. 6 July 2014.

"Why Safeway (SWY) Is Gaining Today." TheStreet 2014: Business Insights: Essentials. Web. 6 July 2014.

Earle, Mary D, and R L. Earle. Case Studies in Food Product Development. Boca Raton: CRC   Press, 2008. Print.69

Robertson, Duncan A, and Adrián A. Caldart. The Dynamics of Strategy: Mastering Strategic Landscapes of the Firm. Oxford: Oxford University Press, 2009. Print.

Shurtleff, William, and Akiko Aoyagi. History of Tofu and Tofu Products (965 Ce to 2013): Extensively Annotated Bibliography and Sourcebook. Lafayette, CA: Soyinfo Center, 2013. Internet resource.

Wheelen, Thomas L, and J D. Hunger. Strategic Management and Business Policy: Toward Global Sustainability. Upper Saddle River, N.J: Pearson Prentice Hall, 2012. Print.

Zolkos, Rodd. "Transforming Safeway's Safety Culture Saves Company $100 Million." Business Insurance 48.9 (2014): 0022. Business Source Complete. Web. 6 July 2014.

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Strategic Management and Sustainability

 

Introduction

            Inglot is a private international company based in the United States mainly involved in manufacture, sale and distribution of cosmetics. It was stated by Wojciech Inglot in 1980s at Poland. It has attracted customers since year 2000 where it picked as a major cosmetics retailer and producer. It enables customers choose their own color combination which has made it popular among its customers. This strategy has enabled it outdo its competitors thus it is competitively advantaged among the many cosmetics company in United States. It has successfully established itself globally in big countries such as China and Brazil. It attracts its customers through advertising its products in order to reach wide ranges of people. It has not yet beaten large companies in cosmeytics especially in Brazil and China since the cosmetics industry faces stiff competition. By venturing in to male cosmestics and anti aging lotions, Inglot Company will be competitive advantaged.

Outline firm-level (micro) factors contributing to the development of INGLOT’s competitive advantage

            Firm level or micro factors are those factors that affect the company direct and impact on its success and achievements. They are factors directly contributing to success or failure of the organization. They include customers, competitors, suppliers, shareholders, mode of advertisement, employees and investors. These factors affect the company and promotes to its sustainable growth and competitive advantage. Inglot Company focuses on the above micro factors in order to achieve its success and attract more customers.

It focuses on the 4ps as micro factors of success. The 4ps to explain the achievement and success of Inglot Company are discussed as follows. They include price, products, placements and promotion.

Products

These are the goods and services offered by the manufacturers to the consumers in exchange of cash. Products as part of the mixing in the market involves a number of factors which include quality, design of the products, features, packaging of the product, the brand name and the physical appearance of the product.

Price

This is the amount of cash various products and services amount to. The price is determined by the manufacturers and is affected by a number of factors which include the list price, available discounts and allowances, the time of payment and any credit services if necessary.

Placement

This is the method followed so as to distribute products until they reach the targeted markets. Placement as one of the market mix consists of transport, medium of distribution, exposure and the destination required.

Promotion

This is the process of informing and persuading customers to buy the available products. It is also one way of reminding customers on already existing goods and new goods. Promotion as one way of marketing mix includes adverts required, sales marketing and promotion.

Customers

Customers in Inglot Company are well catered for. Cosmetics are manufactured and suited for both genders. They manufacture female and male cosmetics and favor colors of different customers. The needs of customers are well catered for with products of customer’s likeness and preference. Inglot aims at attracting and retaining its customers through various advertisement methods. Inglot uses necessary strategies for it to retain its customers for example offering special offers and discounts regularly .Through use of segmentation, customer retention is encouraged throughout the life of a customer. Inglot ensures it retains its customers and attracts many more.

Employees

Inglot ensures its employees are qualified and skillful. Qualified staff ensures success and growth of the company. Employees should be given proper training and orientation when they join an organization which inglot ensures. Employees must be committed to their jobs. Employers should also respect rights of employees. This is done in order to avoid conflicts in the organizations as a way of promoting unity and good interaction between employees and employers. The company also motivates its employees as one way of promoting success. Motivated employees work hard in order to achieve success. It promotes its employees who in turn provide excellent services to customers.

Competitors

Inglot faces stiff competition from cosmetics companies. It ensures the competition is health through provision of quality services to its customers and ensuring prices are affordable to its targeted customers. Its main competitors include Make up Art Cosmetics and Make up For Ever (Qug & Zdenek 2014, p.8). The company has renovated and ventures in to new technologies such as production of novel lotions and other products which are more effective to the skin than former products. It produces unique products which other competitors do not producer in order to retain customers and attract many others. The company has ensured that it has an excellent packaging system which is colorful in order to attract customers thus outdoing its competitors. It has different products with all type of colors which makes it preferred by most customers unlike its competitors who produce different products with color limitations. Use of wide range of colors is a strategy which has enabled Inglot to remain successful and attractive to many people.

Suppliers

These are people who provide raw materials and other necessities to the company. If its suppliers of necessary companies fail to do so, then failure will be impacted to the company. This is a direct factor which promotes success and can lead to failure especially when there is poor relationship between the suppliers and management. Rights of suppliers should be followed which ensures that quality supplies are made in time. Suppliers can directly result to success or failure of the company. The management should maintain good relations with the suppliers and this ensures sustainable development and competitive advantage.

Outline country-level (macro) factors contributing to the development of INGLOT’s competitive advantage

Macro factors include all external factors that lead to success, sustainable development and growth of the company. They include for example distributers, competitors and other wide external factors. These wider macro factors include political or legal, social-cultural, economical, technological and economic factors. The above factors may have negative or positive impacts on the company. Inglot ensures that the macro factors bring success and sustainable development to the company.

Distributers

It started its distribution from five stores and has grown to increase its markets and distribution with its main stores in Poland and USA. It keeps its franchise model which is a strategy that has enabled it remain unique and successful (Qug & Zdenek 2014, p.4). It considers partnering with small family owned companies since through its franchising model; the company is able to partner with profitable family owned businesses. Its channels of distribution have ensured that its expansion is possible globally. It has also partnered with long retail chains which ensure it remains successful and its products reach wide range of people. It has partnered with other known cosmetics companies which makes it sell a wide range of products to its customers. Getting a wide range of products has enabled it increase its customers globally as well as retain existing ones.

Technological influences.

Inglot, the well known seller and manufacturer of cosmetics globally employs modern and most recent technology in order to retain its customers and attract more. It is well established in most of the countries in the supply of cosmetics. The company manufactures modernized and colorful cosmetics from time to time which are backed up with modern advertisements, celebrity endorsements and by so doing they are able to attract more customers. The Company through application of latest technology has ceased from being a distributer of Poland cosmetics to being the top most leader in the specialty, distribution and promotion of the cosmetics ('Breathable' Nail Polish Creator Searched for a Healthier Cosmetic 2013, n.p). However though the international company has achieved lately, it faces many challenges and expenses in its application of modern technology.

Political factors

The government is responsible in creating economic policies and regulations which will increase the growth of the business. Inglot is a beneficiary of these policies in the United States which provide them with an opportunity to modernize and sell their demanded products. This support by the United States government, the low interest rates, the international competitiveness of the tax system and the stable currency condition has helped a lot in the formation of the foundation which may be sensitive to the growth and development of the Inglot Company. Inglot Company mostly trade in America and Poland as its main potential market.

Economic factors

These factors have various impacts on how the entire company makes its own decision and how it operates its major businesses. In the example of many other organizations and also other companies, the greatest threat in the economy would be the economic recession. The recession always have adverse and harmful effects on the growth, development and advancement of Inglot. The number of the consumers is decreasing downwards since it is well known that the United States economy if currently facing a huge downturn. As a result of the consequences the voices of the labor work and the marital are also increasing rapidly. Notably, economic recession is one of the biggest treat to growth of companies and industries.

Environmental analysis

The study of the environment is not necessarily the inclusive of the overall environment of the earth but it includes all the micro and macro environment surrounding a certain business. Inglot has proved itself responsible in all the above three cases. As far as the global environment is concerned Inglot is ISO certified from the global environment, pollution and carbon foot prints tracing point of view. Inglot is a supporter of the green environment and thus does everything necessary so as to protect the environment. Inglot is objected in fulfilling the expectations of the customers, creation of the environmental friendly atmosphere globally, motivating its employees and lastly being on the very top of the legislation. Inglot displays its positive attitude in a study towards social and environmental responsibility on various parts of the company’s globally.

Social cultural

It provides cosmetics which are well loved by its customers. The chemicals used are acceptable to customers since they do have negative impacts on the skin. People are cautious of the products they apply in case of health safety. In addition, Inglot is located in healthy environments which enable it to encourage safety of the environment. Currently, people are getting conscious of their body and health in general hence they have maintained use of body friendly beauty products in order to maintain their fitness and health status.

Develop INGLOT’s strategic plan for the next five years

A strategic plan is a document used to give outline of the organizations goals, objectives and aims to be achieved. It includes what a company plans to achieve and ways of achieving during the planning process (Clark, 2014, p.442). A strategic plan is important since it outlines a company mission and vision and ways of achieving the vision through following the mission. The strategic plan will aim at improving the current situation in the company. It will lead to expansion of the company to other countries in order to make more profits. The family owned business aims at providing its customers with quality products in line with the new technology.

Developing this strategic plan is a process which should be followed if success is to be achieved. The managers should be able to determine the current situation of the company in order to know how they will achieve their vision in the next five years (Clark, 2014, p.442). The managers should analyze both the micro and macro factors affecting the business at the moment in order to achieve success in the next five years. They should look at their competitors in order to come up with ways of outshining the competitors in order to retain customers and attract more customers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Clark, W. W. (2014). Global sustainable communities handbook: green design technologies.             http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&A N=485197.

Qug.H & Zdenek. N (2014) Inglot conquering the world

'Breathable' Nail Polish Creator Searched For A Healthier Cosmetic 2013, n.p.: National Public   Radio, Literature Resource Center, EBSCOhost, viewed 15 June 2014.

 

 

 

 

 

 

 

 

 

 

 

 

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UK Baby care products report


Baby care products report

Introduction

There are many companies in the UK providing baby care products. Examples of such companies include Beaming Baby Company, Johnston Baby Skincare, Water Wipes Pure Baby Wipes and Mum and Me Little Explorers. The skin of a child is sensitive thereby requires best and quality products. The companies provide the skin care products since the children’s skin is delicate. Healthy competition exists between these companies with Johnston being the leading company in the UK. The companies provide products useful to small infants of below the age of four. In addition they provide products for pregnant mothers which can be used before and after the pregnancy period. Examples of baby products produced by this company include food, shoes, clothing, lotions, baby bedding toys, playing games, bottles, gifts and other baby care products used to maintain good hygiene to the delicate children. Other products are produced especially for pregnant mothers which include maternal clothing, nutritious food supplements and other products related with mothers hygiene. This report will give an outline on how leaders should use the right strategies in order to enhance success of the baby care products companies.

The usefulness of achieving strategic fit

Strategic fit is the process used by a company to ensure that both capabilities and resources comply with the factors affecting the business externally. Beaming Baby Company uses resource based theory in order to ensure that both capabilities and externalities are available and utilized for success of the company. Strategic fit is used to analyze the current strategy used in the company and ensure that the right strategies are used to bring success to the company. For example Beaming Baby uses the strategic fit to analyze its products and advance the products in accordance with the current technology (Jolly, 2012, p.341). Resources utilize application of modern technology which contributes to success to the organization. One cannot measure capabilities since they are intangible. Capabilities are shown through given employees, resources and technology used in that company. Capabilities are therefore important towards success of the company and should be considered.

Organizations should ensure that resources are enough and available in order to attract investors thus generating profits. Modern technology should be used in terms of machines. Beaming Baby should use modern software thus boosting the IT department. Strategic fit entails use of the resource based theory thereby ensuring that capabilities and resources are used in a maximum way. Organizations should apply various resources in accordance with resource based theory (Jolly, 2012, p.341). Resources in given companies impact positively and in some cases negatively towards the company. Resources should therefore be utilized in an efficient manner. The Beaming Baby ensures that through the strategic fit resources impact positively to the success of the company. In addition strategic fit entails the company to develop and utilize the available raw materials by enhancing modern technology. This brings success to the baby care company which is useful in keeping hygiene of small babies and pregnant mothers (Truss et al, 2012, p.254).

Strategic fit helps the company plan long term successful plans. It helps companies get reliable supply chains where the products get to reach the customers in a good time. This advantages the baby care company since customers can access the product at different stores and supermarkets. Strategic fit ensures that the company uses modern technology and efficient communication strategies (Blundel & Lockett, 2010, p.213). It ensures that the company uses corporate strategies in its activities. The manager ensures that the employees follow the requirement of company. The manager ensures that competition is healthy thereby looking for effective methods of maintaining strategic fit in that company. Use of a corporate strategy ensures long term plans are made towsrds success of the company for future purposes. The manager ensures that the prices of products are affordable to the customers who are mainly mothers. Strategic fit ensures that the working environment is convenient for employees (Blundel & Lockett, 2010, p.213).

Employees should remain motivated in order to support the company. Managers should look for markets for the products. The Beaming Baby Company being an international company ensures that products are distributed globally (Lockwood, 2007, 312). This ensures success since globalization is possible which creates good trading interactions between different countries globally. Managers should be flexible in order to change with the changing strategies and technological changes. Managers should ensure that the company is not outdone by its major competitors. Managers should identify the problems faced by the company and come up with reliable and efficient solution to ensure success of the company (Lockwood, 2007, 312). The objectives and aims the company should be achieved by managers applying their management skills. Mangers should make sure that the plans are well implemented and that the set goals and objectives are maintained. This makes the company remain strategically fit thus ensuring success in that company.

Porter’s Five Forces framework as a tool of competitor analysis

Competitive rivalry

There are four largest baby care companies in the UK such as; Johnston Baby Skincare, Water Wipes Pure Baby Wipes, Beaming Baby Company and Mum and Me Little Explorers. These companies are operating by applying advanced approaches to please and attract customers. Baby care companies are therefore urged to remain technologically advanced in order to gain significant amounts in the large share (Osterwalder & Pigneur, 2013, p.234). Competition implies that the business is growing and thus the company should remain competitively advantaged. In order to reduce the competition, the company should lower its prices, give discounts and promotions to its customers and practice advertisement as a way of attracting customers who are mainly mothers. The company should differentiate its entire goods and service in order to survive in the competitive environment.

Threat of substitute products

High threat of substitute is prone to occur within the baby care market. Consumers hold great power to substitute to the other dominant retailers. Many baby care companies contain variety of similar and close substitute products. It causes price elasticity of demands since the market is sensitive to price and accordingly price will be increase or decrease in terms of their competitor attitude towards the product pricing (Osterwalder & Pigneur, 2013, p.234). UK baby care industry always tries to increase the product quality and services to make them less price sensitive. Beaming Baby Company provides high quality products which will attract the targeted customers.

Threats of new Entrance

A new company faces several challenges and difficulties when venturing in to the baby care industry since competition is stiff. When new markets enter, the existing ones are as well challenged. New markets enter with improved products which are advanced in technology thereby posing as a threat to existing companies. New companies in order to attract customers at first lower their prices and thus will be preferred by most people (Tilmouth & Quallington, 2012 p.236). This challenges the existing markets that will be forced to lower their prices in order to compete with the new markets. This means that new manufacturers’ faces stiff competitions from existing ones. New manufactures should be financially stable and technologically advance in order to compete in a healthy manner with the initial companies.

Bargaining Power of suppliers

The baby care industry holds low Power of suppliers since leading markets deal with different consumers. There is a little threat as large baby care companies dictate the price they pay to their suppliers. Thus, small businesses are not able to compete with big rivals, equally suppliers are left with Beaming Baby Company and they have to provide material in the right time as well as lower their prices in order to attract customers (Tilmouth & Quallington, 2012 p.236). The necessary raw materials and resources should be maintained. The suppliers decide on the prices of their products. It is not the responsibility of buyers to decide but the prices should remain affordable to the targeted buyers.

Bargaining Power of buyers and customers

To some extent there can be several producers but few buyers. This is disadvantageous to the Beaming Baby Company. The buyers can therefore dictate the price they want by bargaining in that favorable environment. This advantages the customers but poses as a threat to consumers. Buyers will go for the best and quality products thereby disadvantaging the producers. Companies are left with no choice but to reduce the prices of their products so that customers can buy their products. In this case the consumers dictate their prices and the industry are affected negatively (Tilmouth & Quallington, 2012 p.236). Power of buyers is high threat for businesses since customers dictate their prices.

The rationale for adopting a revolutionary as opposed to an evolutionary approach to Change

Managers face difficulties in their business activities. Managers should ensure that the company remains competitive advantaged. This implies that the manager should look for opportunities and markets for the products of the company (Ray, 2010, p.204). The manager should ensure that strategic changes are implemented in order for the company to remain successful even though competition exists in the industry. They should come up with skills, inventions and ideas on how to manage the company in accordance with improved strategic changes. Evolutionary approach should therefore be changed and revolutionary approach maintained. The new and reliable opportunities should be utilized in order to maintain success of the company. Managers have a big role in defining the opportunities necessary to enhance continuous growth and development of the company (Ray, 2010, p.204). Resources and capabilities should be well utilized in accordance with the plans made by the company. The set goals and objectives should be achieved through use of revolutionary approach. Raw materials and necessary resources should be maintained in order to enhance a smooth flow of activities in the company. New strategies should be implemented which will contribute to success of the business. Managers have the responsibility of promoting success of the company through utilizing their position in guiding other employees to undertake the strategic changes in the company. Managers should motivate their employees and provide quality wages to them. This ensures that they remain motivated and work hard to ensure success of the company (Ray, 2010, p.204).

 

Evolutionary approach deals with developing the already existing strategies. This approach is rather not preferred by companies. Revolutionary approach is highly preferred since it guides managers on what to do and how to utilize resources, available raw materials and new opportunities for success of the company. Managers should therefore utilize the new ideas and technology in order to enhance success of the business. Managers should be keen in making decisions since they affect the entire activities of the company. Decisions should be clear and transparent and should also involve employees (Ray, 2010, p.207). Managers should not make long lasting decisions without consulting employees as a way of showing respect and value they have for employees. Decisions should be effective and well planned strategically. The company should be led by highly qualified staff members whose aim is to contribute success to the businesses. Employees should ensure that they employ good and reliable skills in order to promote success in the company. A good revolutionary approach employed by staffs of the company should entail maximum use of the given resources. Strategic planning is a key contributor to success of the company (Ray, 2010, p.207). Aims and objectives should be clearly laid down and employees given the guidelines on how successfully achieve the set standards. The management of organization should be enhanced in a way that capabilities are utilized in order to achieve set goals and objectives. Resources should apply modern technology which contributes achievement to the organization. This is in accordance with the revolutionary approach adopted by managers in the company.

The concept of strategic drift and how it might be avoided

Strategic drift refers as a steady revolutionize that takes place delicately that they are not easy to be noticed until it is too late (Dziri, 2011, p.66). This situation arises in instances where company steadily creates strategy in a manner that does not match with the altering external environment (Melin, 2010, p.45). Strategic drift is known to have adverse effects to a firm, for example, it causes the Beaming strategies to be unproductive when tackling the strategic situation. Assuming that beaming baby Care Company is extensively known company in United Kingdom, the occurrence of strategic drift may cause adverse effects on their strategic stance. Normally, a strategic drift can result from the organizational history and culture that in turn obstruct organizational change (Dziri, 2011, p.66). It is believed that the concept of strategic drift can occur even in a company that has ever enjoyed a momentous success. This is because most of the companies tend to respond too slowly to changes that take place in the external environment and they continue using certain approach that has ever served the firm very well (Dziri, 2011, p.66).

Different research that were carried out due to this concept of strategic drift asserts that most of the causes of the strategic drift are appreciative to lack of ownership of the policy by staffs of a certain firm (Melin, 2010, p.45). This means that the members of the organization assume strategic drift as they thought that it is caused by the failure of the people who are accountable for change organization. This is because it is too gradual to an extent they cannot be able to recognize it. It is clearly known that strategic drift can arise when an organization strategy fails to comply or to fit the operating systems as it was earlier planned (Melin, 2010, p.45). Various ways that can be used to help baby care industries to evade the idea of strategic drift includes:

Growth

Beaming baby care companies must develop a fit defined growth strategy that may be in a position to address all need for future growth. An informed strategic growth can help this company to invent a guideline that works as a road map for Beaming Company to attain their objectives (Melin, 2010, p.45). When companies tends to have a reliable strategies, it can be in a position to achieve its’ objectives in quicker management of the entire employees. This in advance may help them to avoid the emergent need for altering their officially designed strategies and therefore, evade strategic drift.

Leadership

It is believed that a nice designed leadership strategy is essential to a firm. This is because it functions as an important element that assists in determining the feasibility of any firm operations (Dziri, 2011, p.66). In addition, high-quality leadership is accountable for development of the entire organization whereas unplanned leadership is accountable for drift in an organization. Therefore, a well planned leadership can help an organization to avoid strategic drift.   There is a certain procedure used to plan the style of leaders. This assists to determine the pathetic positions of the entire leaders and therefore, avoiding strategic drift.      This means that when Baby care industries will develop well defined rules, they will be in a position to notice the drift and thus, they will fix it easily.

New technology

When the technology is first introduced in any organization, there is a need for the entire company to have an appropriate planning technique that will facilitate its employee to adjust the changes. On the other hand, lack of appropriate scheduling will consequence to a drift that can be rigid to recuperate. This means that it is essential for these companies to recognize some strategies that can be pursued          thus, lessening occurrence of a drift (Dziri, 2011, p.66).

Human resource

The fact that human resource has become one of the most vital aspects in running a business, it is essential for companies to have a competent work force. This helps them to create a competitive advantage which other companies may get hard to copy in the market. For a company to have a competent and motivated work force, they should have well planned and skilled personnel (Dziri, 2011, p.66). This will reduce the incidence of strategic drift.

The involvement of administrative management to implementing strategy in accordance with strategic change

Administrative execution is of importance in ensuring success of the company. Information is delivered throughout the company from the administration department. Communication strategies are implemented from the administrative management downwards to the employees. The decisions of managers contribute great effect to the running of the whole company. A mistake committed by the manager impacts negatively to the running of activities in the organization (Henry, 2011, p.94). All employees should be included in the decision making and implementing scheme and process. Involving employees creates good employee-employer relationship. Managers should not make long lasting decisions without consulting employees as a way of showing respect and value they have for employees (Keating & Moorcroft, 2006, p.211). Managers should make decisions which will contribute success to the business. Decisions should be effective and well planned strategically thereby contributing to positive results in the company. Administrative managers should have the necessary skills to ensure smooth flow of information from one department to the other. Employees should be highly trained as a way of improving their skills and knowledge. The manager should ensure that plans are planned strategically in order to achieve the set goals of the company. Managers have a role of identifying problems within the organization and outside the organization since the problems affect the organization directly or indirectly. Managers should ensure that both external and internal factors affecting the business are catered for in the best way. Through use of SWOT analysis and the BCG matrix of the company administrative managers should ensure that marketing strategies are well implemented (Keating & Moorcroft, 2006, p.211). The managers should work out on the weaknesses of the company and transfer them in to strengths thereby making the company successful. The price of products should remain affordable in order to outdo competitors and remaining advantaged.

Conclusion

From the above discussion it is clearly evidenced that baby care industry is highly competitive. Through implementation of the porters five tool, the industry can be successful. Prices of products should remain affordable to mothers. Through use of modern technology and online marketing strategies, the Beaming Baby Company will increase its sales thereby remaining successful. Managers have the responsibility of promoting success of the company through utilizing their position in guiding other employees to undertake the strategic changes in the company. This ensures managers to come up with new and modern strategies in order to promote success to the business. It is thus evidenced that Beaming Baby Company produce products for babies and their mothers which is an effective business plan. Managers and employees should work hard to ensure that the set goals and objectives are achieved. This makes the company successful and more advantaged.

 

 

 

 

 

References

Blundel, R., & Lockett, N. (2010). Exploring entrepreneurship. Oxford, Oxford University Press.

Dziri, R. 2011. Avoiding strategic drifts in a hypercompetitive market Analysis of Nokia's position in the mobile phone industry and suggestions. München, GRIN Verlag GmbH.     

Henry, A. 2011. Understanding strategic management. Oxford, Oxford University Press.

Jolly, A. (2012). The growing business handbook: inspiration and advice from successful entrepreneurs and fast growing UK companies. London, Kogan Page.

Keating, I., & Moorcroft, R. (2006). Managing the business of schools. London, Paul Chapman.             http://site.ebrary.com/id/10218294.

Lockwood, G. (2007). Fertility & infertility for dummies. Chichester, John Wiley.             http://www.contentreserve.com/TitleInfo.asp?ID={087EF6EB-018C-4876-B819-            A40C04731CD7}&Format=410

Melin, M. H. 2010. High-performance managed futures the new way to diversify your portfolio.Hoboken, N.J., John Wiley & Sons.        http://public.eblib.com/EBLPublic/PublicView.do?ptiID=588946.

Osterwalder, A., & Pigneur, Y. (2013). Business model generation a handbook for visionaries, game changers, and challengers. Hoboken, N.J., Wiley. http://rbdigital.oneclickdigital.com.

Ray, C. I. (2010). Extreme risk management: revolutionary approaches to evaluating and measuring risk. New York, McGraw-Hill.

Tilmouth, T., & Quallington, J. (2012). Level 5 diploma in leadership for health and social care and children and young people's services. London, Hodder Education. 239

Truss, C., Mankin, D., & Kelliher, C. 2012. Strategic human resource management. Oxford, Oxford University Press

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Marketing Management

Introduction

Modern technologies are being used presently in marketing and will also be used in future. Zara Company is known as one of the biggest fashion company in United Kingdom. The company is perceived to employ different technologies in their operations. For instance, Zara Company uses social media, CRM systems and Smartphones. Using social media will enable Zara Company gain markets and attract customers through sites found on the internet. Examples of social media sites used by marketers include Twitter, Skype, Facebook, MySpace, Instagram, use of Foursquare, use of LinkedIn, use of Yelp as well as using YouTube. All these are sites used by this prominent company to target potential customers. It therefore means that Zara Company will remain flexible to changes in technology by adapting to any new technology in order to attract customers and retain existing ones. This research paper picks on major technological development that has improved and will improve in future the market structure of Zara Company which is widely known in UK.

Use of social media as a marketing strategy in the present and in future

Social media is recognized as a comfort zone where users are at liberty to share any kind of information with ease. Popular social media platforms include Facebook, Twitter, Skype and WhatsApp. These platforms allow users to exchange information and relate effective even though in different locations. The key objective of social media developer was creating a platform that will allow and ensure relationship among different people. According to(Ferrell, 2014, p.320) social media has become an effective instrument in studying and obtaining marketing studies which enable Zara Company remain successful even in the present and in future. Many people in the social media world share their information freely (Ferrell, 2014, p.321). In social media platform, users have the chance to discuss their challenges and mention emerging events, thus sharing important data. For instance, users might discuss new products in the market. Managers in Zara Company use these sites for advertisement purposes and convince customers to buy their products. This promotes globalization which is one way of supporting marketing globally. According to (Ferrell, 2014, p.320), social media has been proved to be an effective mean of ensuring reach of products to intended customers. Essentially, Zara Company has taken advantage of the social media tools to ensure a wider geographical coverage and reach of targeted clients. According to (Ferrell, 2014, p.321), many organizations are making use of social media to ensure contact with targeted customers and make their products reach a wide range of people. Reaching wide numbers of people ensures success in the marketing industry especially in Zara Company which reaches a wide range of people since clothes are important. Some high developed sites provide platforms that can maintain instant chats with customers and the producers themselves. These ensure effective communication through instant provision of good customer care services.

Smartphone application Usage

Smart phones are the new wave in information technology, the number of people who own and use smart phones confirms this. This trend is clearly revealed among the teenagers where about 70 percent of them in the United Kingdom own smart phones. Smart phone due to its fast speed and mass storage capacity have the ability to house applications, which can perform a number of tasks. Smart phones are able to support applications based on education, industrialization, politics, music, health, fashionable clothes and weather. However, teenagers who are the majority users of these devices, utilize Smartphone majorly for entertainment and social networking (Goldenberg, 2008, p.116). Given the urgency of marketing information, developers have been designing applications that can easily provide required marketing data to users. Most of these applications are incorporated in smart phones including the Ipad. Essentially, the marketing field is making use of smart phone applications to explore diverse issues and concerns revolving around the field. The Ipad in this regard has been proved to be fundamental ensuring digital files for the customers and producers in Zara Company. In order to attract users, developers of Smartphone applications have ensured development of relevant applications that can be used in diverse fields (Goldenberg, 2008, p.116). Presence of numerous applications in smart phones enables the users to conduct diverse activities using the phone. For instance, the user is a position to know the new and fashionable clothes in the market and is able to communicate with manufactures and purchase given clothes and other accessories. This maintains good relationship between the producer and the consumer where the consumer is able to get accurate information about products in the market. Technological advancement in regard to development of smart phones has brought out the issue of good marketing strategies and much time is saved which encourages profits in Zara Company.

CRM systems application

These customer relationship management (CRM) systems utilize technology and are able to ensure that business activities are made possible. The CRMs enables manufactures target prospective customers and look for markets for their products. Marketing capabilities ensure that emails, social media and Smartphones are used in order to attract customers. Information technology has made life for many people easier and less time consuming through simpler ways of accomplishing difficult tasks such as in business, entertainment, health, and education sectors (Pride & Ferrell, 2012, p.221). Customers in Zara Company are able to get marketing information from social media sites. Customers communicate to the well known company by use of emails and phones. Through use of CRMs Zara Company is able to get the customers feedback, complains, and are able to attend them in the right time. All information from the consumers is of importance for producers to take in to consideration. CRMs enables Zara Company learn the customers’ behavior, weaknesses and strengths and are able to tell the customers preferences. Use of these CRMs ensures that modern technology is applied which is most preferred by customers. Through use of CRMs Zara Company is able to know the current and future trends in marketing which enables them have plans that will ensure success in future. Zara Company is concerned with ensuring information technology contributes towards increasing accessibility to marketing information to targeted consumers (Richardson, et al, 2010, p.134). In addition, technology has enhanced work efficiency and efficient customer care. In this case, Zara Company is able to inform customers in time about the new clothes in the market. CRMs are therefore essential to maintain good interaction and communication between the producers and the customers.

Using social media sites in promotion of marketing

Major technological interventions in regard to medical field have had essential effects in research and service delivery. Introduction of diverse social media platforms have ensured interaction and sharing of information. These social media platforms give the users the opportunity to discuss marketing policies, trends in the marketing field and ensure consultation in matters pertaining different markets (Pal, 2012, p.108). The results indicates that various development have been made in the recent past and has greatly influenced the field positively. They include use of various search engines, applications and social media for retrieval of marketing information which ensure profitability and sharing of that information. The social media sites are discussed below which are useful in Zara Company.

Twitter

Use of Twitter ensures that Zara Company promotes the product on individual basis. Information about the products is portrayed in some messages which users are able to follow. The messages are able to link to Facebook as well as videos (Thomases, 2010, p. 60). The links are able to ensure that customers get to know products in the right time and make right decisions on whether to purchases the product or not. The links ensures that customers interact well with the given needed products. Twitter as one form of social media ensures that advertising is made possible and interaction between consumers and producers made at an individual level. The information is accurate to be used both in present and in future.

Face book

Face book is more detailed and wide compared to use of Twitter. Videos, pictures and wide descriptions are allowed when marketing through Face book. Face book application ensures that there is good communication and interaction between managers in Zara Company and their customers. It ensures that Zara Company is able to get the feedback and complaints from customers on time (Pal, 2012, p.108). Advertising is made possible through use of Facebook commonly an application found in many Smartphones thereby reaching wide range of people.

Foursquare

It is a social networking website where users check location of products in their Smartphones. It enables Zara Company create new pages where information is made accessible to clients. This aims at ensuring customer attraction as well as retention. In this, customers are given discounts, rewards and promotions in order to retain them (Pal, 2012, p.108). This application enables users to get necessary information on business and marketing and ways of solving emerging issues. It ensures goods and products are at right destinations and locations where customers can easily access them when necessary.

LinkedIn

LinkedIn is a specialized marketing networking spot which allows organizations to develop profiles for those companies as well as networking with other organizations. This ensures Zara Company creates Twitter and blogs in order to promote their products (Pal, 2012, p.108). LinkedIn is capable of providing accounts that lead to creation of sales thereby promoting investors as well as other partners in the business. This will promote future positive trends in the Zara Company.

Technological advancement has greatly changed the face of marketing (Clarke & Flaherty, 2005). This is because today’s Zara Company’s managers are totally different from those of a decade ago. For instance, they have quite different expectations that differ from the managers from those of a decade ago. The marketing operations in Zara Company have also changed due to the increased technology. It has come to our attention that marketing is growing at a rapid rate. It is essential for today’s marketers to stay on the top of the technology and trends. This is because marketing is changing with technological advancement. A decade ago, many marketers were not introduced to online advertising. However, as the field of marketing is developing there are now capable of advertising their goods online where information about the goods can reach everyone in the globe. Today’s marketers should be in a position to know how social media, video, conversation and other analytical work in the marketing mix (Krafft, & Mantrala, 2010, p.35). There is increased use of social networking site in Zara Company in advertising their goods and services. Thus, social media can be used as a marketing strategy in the present and in future. There are fundamental skills that all future marketing managers needs to have. This is because marketing planning requires one to be ahead of technology. Thus, marketers should be in a position to develop their skills as some of the fundamental skills continue to fall out of demand as technology advances. Future developments in the field of marketing require managers to develop critical thinking. Critical thinking lead to creative thinking that in turns initiates to problem solving (Clarke & Flaherty, 2005). Successful managers should have analytical minds. This is a situation where a marketing manager can be in a position to look beyond of the data that reveals the consumer’s behavior. They should view the trend and patterns of the trade and become more innovative. This in advance will lead to better and successful marketing efforts (Clarke & Flaherty, 2005). Due to the fact that technology will continue to advance and can influence the way marketing is accomplished in Zara Company, it is essential for marketing managers to be tech know-how (Clarke & Flaherty, 2005).

In years to come, customers will be the drive of business outcomes even more than what is happening today. This means that it is essential for Zara Company to meet the needs of their entire customers. However, they cannot be in a position to meet the needs of the customers they will disappear to other marketers. In the future, customers will create product price, as they will drive the business outcomes. Thus, it is essential Zara’s managers to get prepared for future changes in the field of marketing. Internet is believed to be the most powerful tool of marketing. Thus, there is need for marketing managers to prepare for the internet. Additionally, marketers will remain flexible to changes in technology by adapting to any new technology in order to attract customers and retain existing ones. In future to come, pricing will be more essential in Zara Company. Additionally, pricing will be more closely tied to customer’s perceived value. In relation, supply will keep on exceeding the demand. This in advance will help in keeping the prices and inflation low. It is essential for Zara Company to plan for future marketing, as global selling will continue to rise.

It is vital for marketing managers in Zara Company to be able to adapt to technology challenges. This is because; they do not always make marketing easier. Sometimes they tend to be more challenging and thus, it is important for business to be able to cope with these challenges. For instance, technology can sometimes provide false hope, as they are no one who knows which technologies will take off or which one will decline. Thus, it is essential to become more adaptable to any change that can take place in marketing. The fact that new marketing strategies will continue to develop, it is essential for marketing managers especially in Zara Company to be capable of moving with the changing world. Marketing managers should have technological knowledge, as it will help them to judge their performance at review time (Sweeney, 2009, p.307). Additionally, investing in technologies helps to increase Zara’s efficiency and performance.

Online marketing future trends

The advancement in technology has greatly changed the face of marketing. It has led to online marketing. For instance, blogging is extremely popular across the world. It will also continue to grow in its success in the coming future (Taag, Stevenson & Vescovi, 2013, p.23). It provides the public a voice that tends not to be overwhelmed with too many limitations. It is essential for small business to make use of efficient online marketing tool, as it will increase their market production. Additionally, it will help in increasing market share. In the coming future, video marketing will extremely grow in the field of marketing. Different studies have proved that adding a video a certain website helps to increase sustainability. Video marketing will increase the relationship and interaction between managers and customers. This in advance will help to solve customers’ queries very quick as they are interacting with managers. Additionally, there will be introduction of widgets in the filed marketing. The main purpose of widgets is that they ensure that the targeted market is drawn back to a certain website where he or she spends more time with the particular brand on a dairy basis (Taag, Stevenson & Vescovi, 2013.p 23). Widgets that will be developed in future will have a positive impact, as it will save the user’s time (Taag, Stevenson & Vescovi, 2013, p.23). Additionally, it will help consumers to get all detailed information concerning the products.

One of the potential improvements in field of marketing particularly through technology is market channels technology and potential drivers of modernization or innovation. The offerings of technology modernism improve the interactions and relations between every one of the members of advertising channels and individuals with the ending consumers. The investigation focuses on market channels aim at providing theoretical outline for future analysis and insights which can be carried out to incarcerate the effect and extent of the alterations in the skill. The technological insightful of modernism is examined by captivating into a financial credit and every categories of channel at trade distribution intensity (Tietze, 2012, p.7). This insightful can be divided into a region of innovation in relations with ultimate demands and vertical relations among channels members. The major fronts of modernization in vertical relationships among firms are combined management of supplying activities, logistics and those cooperative activities through elevated level of assimilation between co-workers such as trader managed group management. As regard to relations with last demands, major modernism fields are personality service technologies, online selling, and mobile payments and check out skill (Brownlie, p. 42, 2014).

On the other hand, marketing channel might be seen as upright incorporated, uni-linear structure relating the vendor with the maker through a succession of liaison wholesalers. Frequently, power affairs among channels parts have been basically distorted by the activities of the manufacturers and large sellers in extending throughout vertical incorporation. Market channel has also been referred as vertical advertising system in the place where coordinated leaders appears. Vertical market schemes are informally or formally harmonized allocations channels where their self-determining members effort mutually to attain economies of scale and greater effectiveness. Vertical market systems eliminate the channel conflict which arises from different individual objectives. There are three main categories of vertical market system and every one of it utilizes a different way for setting up influence in the system and leadership (Deffner, 2014, p.14). One of the categories is management where headship is alleged by one overriding member that is influential and large sufficient to organize the performance of the former members with no an ownership risk. Second is contractual where divergence management and coordination are accomplished through contractual agreement among the associates of the system. The third one is communal where divergence management and coordination are achieved by ordinary ownership. In current years, the situation of globalization in which marketplace channels schemes and structure are enlarging is conveying to a more multipart perception of selling channels with reinter intervention, new tasks specializations and multichannel are rising as innovative issues(Deffner, 2014, p.15).

Moreover, increasing search for speed and efficiency in vertical relationship is leading to a convergence of perspectives for those channel related activities such as logistics, purchasing and supply chain management. In addition, innovation in marketing channels become a complex multidisciplinary activities which require interaction and collaboration across various entities within supply chain network with a resulting outcomes which occur at the seller-buyer interface level and substantial portion of the innovation process. This work aims to analyze innovation in marketing channels focusing on the technological issues that can affect its organization and flows (Wu, 2013, p. 34).

Conclusion

The investigation aims to make available a conceptual outline on the base of which potential insight and analysis can be accomplished to incarcerate the level and sound effects of the alterations that arise because of technology improvement. Referring to market channels, the conception of modernism can be out looked in the perspective of double level throughout expressing itself. Conception of innovation can exist as strategic doings for equally distributions and industrial firms. However, it might be also seen as varying development of the financial purpose of the allocations systems. Moreover, innovation approaches from preferences of the firm along the channel that increasingly involve its partners, downstream and upstream of the system they fit in. These originate innovation progressively resolute on the vertical network more than in the firms of individuals. In current years, the innovation development in advertising channels has raised with high speed and intensity, particularly following the alterations stimulated by technology that endorsed the approval of more well-organized organizational solution.

 

 

 

 

References

Brownlie, D 2009, 'Tales of prospects past: on strategic fallacies and uncertainty in Technology Forecasting', Journal Of Marketing Management, 25, 5/6, pp. 401-429.

Clarke, I., & Flaherty, T. 2005. Advances in electronic marketing. Hershey PA, Idea Group Pub.

Deffner, A, Metaxas, T, & Arvanitidis, P 2013, 'Developing place marketing pilot plans: the cases of Rostock and Kainuu', Anatolia, 24, 2, pp. 241-263.

Ferrell, O. C. 2014. Marketing. Australia ; Mason, OH, South Western Cengage Learning. Goldenberg, B. J. 2008. CRM in real time: empowering customer relationships. Medford, N.J., CyberAge Books

Krafft, M., & Mantrala, M. K. 2010. Retailing in the 21st century: current and future trends. Heidelberg, Springer.

Pal, M. 2012. Microsoft Dynamics CRM 2011 Application Design. Birmingham, Packt Pub.          

Pride, W. M., & Ferrell, O. C. 2012. Marketing. Australia, South-Western Cengage Learning

Richardson, N., Gosnay, R., & Carroll, A. 2010. A quick start guide to social media marketing: high impact, low-cost marketing that works. London, Kogan Page.

Sweeney, S. 2009. 101 internet businesses you can start from home: how to choose and build your own successful e-business. Gulf Breeze, FL, Maximum Press.

Taag. S, Stevenson. A & Vescovi. T. 2013. New Developments in Online Marketing. Routledge.

Thomases, H. 2010. Twitter marketing an hour a day. Indianapolis, Ind, Wiley Pub.

Tietze, f. 2012. Technology Market Transactions Auctions, Intermediaries and Innovation. Cheltenham, EdwardElgarPub.

Wu, Y, Lin, B, Shih, C, & Chen, C 2013, 'Communicating and prioritizing science and technology policy using AHP', Innovation: Management, Policy & Practice, 15, 4, pp. 437-451, Business Source Complete, EBSCOhost, viewed 1 May 2014.

 

 

 

 

 

 

 

 

 

 

 

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Baby care products report

Introduction

There are many companies in the UK providing baby care products. Examples of such companies include Johnston Baby Skincare, Water Wipes Pure Baby Wipes and Mum and Me Little Explorers. The skin of a child is sensitive thereby requires best and quality products. The companies provide the skin care products since the children’s skin is delicate. Healthy competition exists between these companies with Johnston being the leading company in the UK. The companies provide products useful to small infants of below the age of four. In addition they provide products for pregnant mothers which can be used before and after the pregnancy period. Examples of baby products produced by this company include food, shoes, clothing, lotions, baby bedding toys, playing games, bottles, gifts and other baby care products used to maintain good hygiene to the delicate children. Other products are produced especially for pregnant mothers which include maternal clothing, nutritious food supplements and other products related with mothers hygiene. This report will give an outline on how managers should implement given strategies in order to make the companies successful.

The importance of achieving strategic fit

Strategic fit is the process used by a company to ensure that both capabilities and resources comply with the factors affecting the business externally. The company uses resource based theory in order to ensure that both capabilities and externalities are available and utilized for success of the company. Strategic fit is used to analyze the current strategy used in the company and ensure that the right strategies are used to bring success to the company. For example Johnston Company uses the strategic fit to analyze its products and improve the products in accordance to the current technology (Jolly, 2012, p.341). Resources utilize use of modern technology which contributes success to the organization. Capabilities in an organization are intangible in nature and thus cannot be measurable. Organizations show their capability in the number of employees, given resources and type of technology used.

Organizations should ensure that they have necessary resources as away of encouraging investment and profits. Modern technology should be used in terms of machines. Organizations should use modern software thus boosting the IT department. Strategic fit entails use of the resource based theory thereby ensuring that capabilities and resources are used in a maximum way. Organizations should venture in to different resources according to the resource based theory (Jolly, 2012, p.341). Resources are mainly the collections in an organization that impact positively or negatively. Resources should therefore be utilized in an efficient manner. The baby care company ensures that through the strategic fit resources impact positively to the success of the company. In addition strategic fit entails the company to develop and utilize the available raw materials by enhancing modern technology. This brings success to the baby care company which is useful in keeping hygiene of small babies and pregnant mothers (Truss et al, 2012, p.254).

Strategic fit helps the company plan long term successful plans. It helps companies get reliable supply chains where the products get to reach the customers in a good time. This advantages the baby care company since customers can access the product at different stores and supermarkets. Strategic fit ensures that the company uses modern technology and efficient communication strategies (Blundel & Lockett, 2010, p.213). It ensures that the company uses corporate strategies in its activities. The manager ensures that the employees follow the requirement of company. The manager ensures that competition is healthy thereby looking for effective methods of maintaining strategic fit in that company. A corporate strategy entails developing plans which are long and reliable for the company’s present and future success. The manager ensures that the prices of products are affordable to the customers who are mainly mothers. Strategic fit ensures that the working environment is convenient for employees (Blundel & Lockett, 2010, p.213).

Employees should remain motivated in order to support the company. Managers should look for markets for the products. The baby care company being an international company ensures that products are distributed globally (Lockwood, 2007, 312). This maintains success since globalization is taking place thus improving international trade markets. Managers should be flexible in order to change with the changing strategies and technological changes. Managers should ensure that the company is not outshone by the competitors. Managers should identify the problems faced by the company and come up with reliable and efficient solution to ensure success of the company (Lockwood, 2007, 312). The objectives and aims the company should be achieved by managers applying their management skills. Mangers should make sure that the plans are well implemented and that the set goals and objectives are maintained. This makes the company remain strategically fit.

Porter’s Five Forces framework as a tool of competitor analysis

Competitive rivalry

There are three largest baby care companies in the UK such as; Johnston Baby Skincare, Water Wipes Pure Baby Wipes and Mum and Me Little Explorers. These companies are operating by applying diverse approaches to appeal customers. Thus, they all are operating in a same industry, where everyone’s battling to win customers interest and share. This means that the baby care companies have had to be advanced and exclusive in order to gain large amount of market share (Osterwalder & Pigneur, 2013, p.234). Competition implies that the business is growing and thus the company should remain competitively advantaged. In order to reduce the competition, the company should lower its prices, give discounts and promotions to its customers and practice advertisement as a way of attracting customers who are mainly mothers. The company should differentiate its entire goods and service in order to survive in the competitive environment.

Threat of substitute products

There is a high threat of substitute within the baby care industry. Consumers hold great power to substitute to the other dominant retailers. Many baby care companies contain variety of similar and close substitute products. It causes price elasticity of demands since the market is sensitive to price and accordingly price will be increase or decrease in terms of their competitor attitude towards the product pricing (Osterwalder & Pigneur, 2013, p.234). UK baby care industry always tries to increase the product quality and services to make them less price sensitive. Companies provide high quality products which will attract the targeted customers.

Threats of new Entrance

A new company faces several challenges and difficulties when venturing in to the baby care industry since competition is stiff. When new markets enter, the existing ones are as well challenged. New markets enter with improved products which are advanced in technology thereby posing as a threat to existing companies. New companies in order to attract customers at first lower their prices and thus will be preferred by most people (Tilmouth & Quallington, 2012 p.236). This challenges the existing markets that will be forced to lower their prices in order to compete with the new markets. This means that industry stances sturdy barriers for new entrants to enter, as new entrants have to have high financial back up to cover all the costs of the business, in order to compete with their rivals.

Bargaining Power of suppliers

The baby care industry holds low Power of suppliers as dominant markets are dealing with various customers. There is a little threat as large baby care companies dictate the price they pay to their suppliers. Thus, small businesses are not able to compete with big rivals, equally suppliers are left with big baby care companies and they have to provide material on time and increase their output capacity while decreasing the prices (Tilmouth & Quallington, 2012 p.236). The necessary raw materials and resources should be maintained. The suppliers decide on the prices of their products. It is not the responsibility of buyers to decide but the prices should remain affordable to the targeted buyers.

Bargaining Power of buyers and customers

To some extent there can be several producers but few buyers. This is disadvantageous to the baby care company. The buyers can therefore dictate the price they want by bargaining in that favorable environment. This advantages the customers but poses as a threat to consumers. Buyers will go for the best and quality products thereby disadvantaging the producers. Companies are left with no choice but to reduce the prices of their products so that customers can buy their products. In this case the consumers dictate their prices and the industry are affected negatively (Tilmouth & Quallington, 2012 p.236). Power of buyers is high threat for businesses as Customers hold great power, they force markets to reduce their prices since they have other alternatives, if one market is charging high price then they are likely to switch from one baby care company to another.

The rationale for adopting a revolutionary as opposed to an evolutionary approach to Change

Managers face difficulties in their business activities. Managers should ensure that the company remains competitive advantaged. This implies that the manager should look for opportunities and markets for the products of the company (Ray, 2010, p.204). The manager should ensure that strategic changes are implemented in order for the company to remain successful even though competition exists in the industry. They should come up with skills, inventions and ideas on how to manage the company in accordance with improved strategic changes. Evolutionary approach should therefore be changed and revolutionary approach maintained. The new and reliable opportunities should be utilized in order to maintain success of the company. Managers have a big role in defining the opportunities necessary to enhance continuous growth and development of the company (Ray, 2010, p.204). Resources and capabilities should be well utilized in accordance with the plans made by the company. The set goals and objectives should be achieved through use of revolutionary approach. Raw materials and necessary resources should be maintained in order to enhance a smooth flow of activities in the company. New strategies should be implemented which will contribute to success of the business. Managers have the responsibility of promoting success of the company through utilizing their position in guiding other employees to undertake the strategic changes in the company. Managers should motivate their employees and provide quality wages to them. This ensures that they remain motivated and work hard to ensure success of the company (Ray, 2010, p.204).

 

Evolutionary approach deals with developing the already existing strategies. This approach is rather not preferred by companies. Revolutionary approach is highly preferred since it guides managers on what to do and how to utilize resources, available raw materials and new opportunities for success of the company. Managers should therefore utilize the new ideas and technology in order to enhance success of the business. Managers should be keen in making decisions since they affect the entire activities of the company. Decisions should be clear and transparent and should also involve employees (Ray, 2010, p.207). Managers should not make long lasting decisions without consulting employees as a way of showing respect and value they have for employees. Decisions should be effective and well planned strategically. The company should be led by highly qualified staff members whose aim is to contribute success to the businesses. Employees should ensure that they employ good and reliable skills in order to promote success in the company. A good revolutionary approach employed by staffs of the company should entail maximum use of the given resources. Strategic planning is a key contributor to success of the company (Ray, 2010, p.207). Aims and objectives should be clearly laid down and employees given the guidelines on how successfully achieve the set standards. The management of organization should be strategic such that both resources and capabilities are utilized in the best way possible. Resources utilize use of modern technology which contributes success to the organization. This is in accordance with the revolutionary approach adopted by managers in the company.

The concept of strategic drift and how it might be avoided

Strategic drift can be referred as a gradual change that takes place so delicately that it is not recognized until it is too late (Friedman, 1987, p.99). This situation normally arises in instances when company steadily develops strategy in a manner that does not correspond with the changing external environment (Gottschalk, 2007, p.189). Strategic drift can have adverse effects to an organization, for instance, it causes the entire organization’s strategies to be unsuccessful when addressing the strategic position of an organization. Bearing in mind that Johnston baby Care Company is widely known company in United Kingdom, the occurrence of strategic drift can have adverse impacts on their strategic positions. Normally, a strategic drift can result from the organizational history and culture that in turn obstruct organizational change (Gottschalk, 2007, p.189). It is believed that a strategic drift can be experienced even in a company that has enjoyed a significant success. This is because most of the companies tend to respond too slowly to changes that take place in the external environment and they continue using the strategy that has ever served the entire company very well(Gottschalk, 2006, p.62).

Different research that were carried out due to this concept of strategic drift asserts that most of the causes of the strategic drift are obliged their continuation due to a lack of possession of the strategy by staffs of the entire organization (Gottschalk, 2006, p.62). This means that the members of the organization most often assume strategic drift as they thought that it is the failure of the people who are mandated for change management. It is essential for all baby care industries to be in a position to know ways in which they can avoid this issue of strategic drift. This is because it is too gradual to an extent they cannot be able to recognize it. It is clearly known that strategic drift can arise when an organization strategy fails to comply or to fit the operating systems as it was earlier planned (Gottschalk, 2006, p.62). Various ways that can be used to help baby care industries to avoid the concept of strategic drift may include the following:

Growth

Johnston baby care companies should come up with a well defined growth strategy that will be in a position to address all need for future growth. A well defined strategic growth will help these industries to formulate a well defined guideline that will operate as a road map for the companies to attain their goals (Gottschalk, 2006, p.62). When companies tends to have a well planned strategies, it can be in a position to attain its’ goals through an easier management of the entire employees. This in advance will help them to avoid the emergent need for changing their formally planned strategies and thus, avoid strategic drift.

Leadership

It is believed that a well planned leadership strategy is essential to an organization. This is because it acts as an important factor that helps to determine the viability of any organization operations (Gottschalk, 2006, p.62). In addition, good leadership is accountable for growth of the entire organization whereas unplanned leadership is accountable for drift in an organization. Therefore, a well planned leadership can help an organization to avoid strategic drift.   There is a certain procedure used to plan the mode of leaders. This helps to determine the weak points of the entire leaders and thus, avoiding strategic drift. This means that when Baby care industries will develop well defined rules, they will be in a position to notice the drift and thus, they will fix it easily.

New technology

When the technology is first introduced in any organization, there is a need for the entire company to have a proper planning method that will enable its employee to adapt the changes. On the other hand, lack of proper planning will result to a drift that may be hard to recuperate. This means that it is essential for these companies to identify a number of strategies that can be followed thus, lessening the occurrence of a drift.

Human resource

The fact that human resource has become one of the most vital aspects in running a business, it is essential for companies to have a competent work force. This helps them to create a competitive advantage which other companies may get hard to copy in the market. For a company to have a competent and motivated work force, they should have well planned and skilled personnel (Gottschalk, 2007, p.189). This will reduce the occurrence of drift.

The contribution of administrative management to implementing strategy in accordance with strategic change

Administrative management is of importance in ensuring success of the company. Information is delivered throughout the company from the administration department. Communication strategies are implemented from the administrative management downwards to the employees. The decisions of managers contribute great effect to the running of the whole company. A mistake committed by the manager impacts negatively to the running of activities in the organization (Henry, 2011, p.94). All employees should be included in the decision making and implementing scheme and process. Involving employees creates good employee-employer relationship. Managers should not make long lasting decisions without consulting employees as a way of showing respect and value they have for employees (Keating & Moorcroft, 2006, p.211). Managers should make decisions which will contribute success to the business. Decisions should be effective and well planned strategically thereby contributing to positive results in the company. Administrative managers should have the necessary skills to ensure smooth flow of information from one department to the other. Employees should be highly trained as a way of improving their skills and knowledge. The manager should ensure that plans are planned strategically in order to achieve the set goals of the company. Managers have a role of identifying problems within the organization and outside the organization since the problems affect the organization directly or indirectly. Managers should ensure that both external and internal factors affecting the business are catered for in the best way. Through use of SWOT analysis and the BCG matrix of the company administrative managers should ensure that marketing strategies are well implemented (Keating & Moorcroft, 2006, p.211). The managers should work out on the weaknesses of the company and transfer them in to strengths thereby making the company successful. The price of products should remain affordable in order to outdo competitors and remaining advantaged.

Conclusion

From the above discussion it is clearly evidenced that baby care industry is highly competitive. Through implementation of the porters five tool, the industry can be successful. Prices of products should remain affordable to mothers. Through use of modern technology and online marketing strategies, the company will increase its sales thereby remaining successful. Managers have the responsibility of promoting success of the company through utilizing their position in guiding other employees to undertake the strategic changes in the company. This ensures managers to come up with new and modern strategies in order to promote success to the business. It is thus evidenced that baby care companies produce products for babies and their mothers which is an effective business plan. Managers and employees should work hard to ensure that the set goals and objectives are achieved. This makes the company successful and more advantaged.

 

 

 

References

Blundel, R., & Lockett, N. (2010). Exploring entrepreneurship. Oxford, Oxford University Press.

Friedman, S. D. 1987. Leadership succession. New Brunswick [N.J.], U.S.A., Transaction Books.

Gottschalk, P. 2006. E-business strategy, sourcing, and governance. Hershey, PA, Idea Group Pub.

Gottschalk, P. 2007. Business dynamics in information technology. Hershey, Idea Group Pub.             http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&A N=173 396.

Henry, A. 2011. Understanding strategic management. Oxford, Oxford University Press.

Jolly, A. (2012). The growing business handbook: inspiration and advice from successful entrepreneurs and fast growing UK companies. London, Kogan Page.

Keating, I., & Moorcroft, R. (2006). Managing the business of schools. London, Paul Chapman.             http://site.ebrary.com/id/10218294.

Lockwood, G. (2007). Fertility & infertility for dummies. Chichester, John Wiley.             http://www.contentreserve.com/TitleInfo.asp?ID={087EF6EB-018C-4876-B819-            A40C04731CD7}&Format=410

Osterwalder, A., & Pigneur, Y. (2013). Business model generation a handbook for visionaries, game changers, and challengers. Hoboken, N.J., Wiley.     http://rbdigital.oneclickdigital.com.

Ray, C. I. (2010). Extreme risk management: revolutionary approaches to evaluating and measuring risk. New York, McGraw-Hill.

Tilmouth, T., & Quallington, J. (2012). Level 5 diploma in leadership for health and social care and children and young people's services. London, Hodder Education. 239

Truss, C., Mankin, D., & Kelliher, C. 2012. Strategic human resource management. Oxford, Oxford University Press

 

 

 

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 International Human resource management

Part 1

Introduction

Human resource management is vital in every country because it has ability to identify both strength and weaknesses of the state and offers guidance on the best way to address the noted threats. The county chosen in this assignment is china; the paper will seek to investigate how internal and external factors influence Human resource management approaches and functions. Evidently, China is a sovereign country located in Far East Asia. Approximately, the country covers about 9.6 million square kilometers and it is characterized of having a large population. In the modern society, China is believed to be among the fast growing economies in the world hence this is a good incentive to support and facilitate business activities. China has a strong economy which is drastically growing to meet the demand of the people. The history of china dates back since the period of civilization which led to emerge of agricultural activities near river Yellow. The country has stable political arrangement based on heritable monarchies.

Human resource management has greatly evolved in the modern society in response to the numerous changes occurring influencing organizations productivity and effectiveness (Paauwe, 2004, p.39). China like other countries has experienced a lot of changes such as transformational of its economy from the traditional mode to the current fast growing economy hence this cites the need to have an effective HRM. China has a stable economy and political approach which facilitates the evidenced fast growth of economy.  Basically, HRM functions initiates analyzing and staffing, implementation of reward and motivation systems for all employees, organization and utilization of labour force, assessment and appraisal of work force performance, professional development of workers, and maintenance of work force (Ehnert, 2009, p.107). The idea of choosing this country is suitable in order to address and provide an effective analytical frame work capable of boosting all HRM activities in the entire country. In relation to the discussed background information of china, this paper will describe how political, economic and cultural values play great roles in shaping HRM functions in China. In addition, issues such as effective planning and labour management will receive more attention in relation to Human resource management of Chinese firms.

Part 2

Identifying and describing internal factors or contexts those are important China

Human resource management mostly, differ from one country to another. Notably, many internal and external factors affect the function of human resource management practices. The internal factors significantly influence the human resource approaches of the Chinese country. The main examples of internal factors include social, cultural, political systems, trade and labour unions among others (Paauwe, Guest & Wright, 2013, p.45). These internal environments have the capacity to influence Human resource activities in China. As a state, the country has a huge population of people approximated to be about 1,400,000,000 according to a report released in the year 2010. These huge percentages of people come from a different cultural background. It does not necessarily imply that an individual has to be born and raised in China in order to be considered as a Chinese citizen (Dessler, 2010, p.18). Different cultures practice difference religions. The basic concept of religion in relation to human resource management activities is defined from the characteristics of Chinese religious thought in general. According to Alon (2003), the fact that china has five different religions impacts greatly on the culture of its citizen.

Generally, culture has a lot of impacts on the human resource management functions in respect to the beliefs of people. Cultural differences have huge implications on the managerial values which are key functions of the HRM. Differences in culture impacts how individuals behave in relation to working conditions (Pieper, 1990, p.27). Therefore, there is a direct relationship between cultural values and peoples behaviors which include accepted norms, behaviors and leadership styles. In instances where misunderstanding arises between different cultures is becomes difficult to reach a neutral consensus.

As a matter of fact the current Chinese HRM practices are deep rooted in the cultural background of the country. According to Hofstede (2001), the Chinese human resource management approach has shifted from the traditional model to the international concepts such as globalization and effective strategies. The conflicts resulting from the religion and ethnicity in China has huge implication on HRM functions. According to Geert Hofstede, a Dutch scholar, there are five dimensions useful when explaining the culture of people (Hofstede, 2001, p.66). These dimensions determine how people interact and associate with each other. Ultimately, it is difficult to bring together people from different ethnicity and cultural background to work together as a team. In case a miss-understanding arise, it largely impacts the performance of HRM practices in areas such as performance evaluation, staffing and training among others.

Geert Hofstede argues that the five dimensions largely affect the roles of human resource management. The dimension of power and politics   influences the roles of HR particularly in indentifying the shareholders. China has huge powers hence there is chances of inequality between different cultures. This dimension affects the HR activities in such a way that people from different cultures reacts to the management differently (Dowling, Festing & Engle, 2008, p.67). Individualism is another aspect of culture which tends to make people live on their own. Good practices on Human resource require people to unite and work together for the common benefit of the whole country. There is been for the citizen to embrace a collective action compared to individualism (Budhwar, 2000a, p.142).

The differences between the masculinity and femininity have huge implications on the Human resource activities. This cultural dimension is closely related to performance, competitiveness and success where Masculine values are believed to have an upper hand compared to feminine values which are more focused towards quality of life and personal relationships. Differences in masculine and feminine values range across different cultures thus these might affect the managerial roles which are major functions of HRM approach. The element of uncertainty avoidance refers to the ability of citizens adapts to the changes occurring in their community (Hofstede, 1998, p.48). In stable cultures, people are flexible in such that they can easily adapt any changes occuring. Lastly, long-term orientation is another cultural dimension which refers to how people are able to embrace activities essential to support future growth of the country. Essentially, it is vital for international human resource managers to identify and recognize these cultural factors in order to establish good approaches to fix them.

Part 3

How HRM function in china has been shaped by external factors

The human resource functions affecting china include economic, political, legal, ethical, environmental and social cultural factors. All these factors contribute to China’s success in the economic standards and thus improving its GDP by a great margin thus maintaining its success as a country.

Political and legal factors

Political factors are the most important in a given country. The government of china faces challenges because of the swift economic growth and development taking place in china. The Chinese government has come up with different acts of parliament to enhance and maintain good relationship between employees, their employers and different trade unions in china (Burke at al, 2012, 50). The Chinese government advocates for good relationship between trade unions and employers. The national policies and acts of parliaments amended by the government are in favor of good economic growth and promote good employee- employer relationship. The income gap in china is expanding as a matter of the swift economic growth experienced currently. Political support is necessary for markets to develop where china is encouraging privatization as a way of improving its economy. Marketisation is also a major political development taking place in china based on the liability of the well being of the public (Burke at al, 2012, 50). Political factors are a great influence to the human resource management as shown in the case of the Chinese government.

Economic factors

The economy is affected by government policies which include economic and monetary national policies. International policies also affect the economy of China since favorable policies will lead to economic growth while non favorable ones will lead to failure of the economy. The organizations and businesses in China face competition from both international and regional competitors which is leading to a good business and trade environment (Yuan, 2013, 210). Competition is changing since many markets are becoming privatized thereby creating monopolistic markets globally and especially in the case of China. Globalization is a key concept in improving the international trade which China has utilized through its use of modern technology. Globalization is seen as an economic and political factor since it affects both local and international policies. China’s development is attributed to current technology since China has ventured into globalization thereby improving its growth economically (Yuan, 2013, 210). Competition in China has increase between the years 1970 to 2005 where the labor market has been affected by cases of unemployment which causes a decline in the human resource department.

Technological development and factors

Developments in technology have affected the activities of human management department. The new technology which is well used in China promotes economic and political development. Modern technology gives a chance for globalization which is a modern trend in the market industry. The use of video calling and conferences has led to China’s economic growth since much time is saved as well as resources when video calls are used (Chen & Wang, 2005, 547). Human resource managers in China are encouraged to use modern technology in their businesses as a way of promoting economic growth. The management should be well trained and apply current skills and knowledge as a way of promoting technology use in China. The research shows that some businesses in China are still using traditional marketing strategies which make a low change on China’s economy. The modern technology used globally has made China use modern technology in terms of internet, intranet, webs, e-commerce and the use of human resource database as a way of improving the China’s human resource management department. In the past ten years china has increased its human resource database which encourages the management and staff to employ the new market trend (Chen & Wang, 2005, 547). This increases economic growth of organizations which will reflect a positive rise in the country’s economy.

Environmental factors

The issue of sustainable development is the key agenda when discussing environmental factors. The manufactures and consumers must promote sustainable development and investment by respecting the environmental policies in China. China is an industrial country where the managers must follow and respect environmental regulations and laws. Managers and staffs promote consumption of products which do not cause environmental degradation and damage (Sparrow, 2009, 348). The managers should promote environmental growth by promoting manufacturing of environmental friendly goods and products. For example in China the management is promoting strategic environmental regulations where reports suggest that 83%of companies in China were promoting green economy policies. These green economy policies promote use of products that are environmental friendly. The employees in China have a responsibility of educating the citizens on the importance of living green as a way of encouraging green business in Chinese government (Sparrow, 2009, 348). This culture promotes environmental awareness and improvement in China which leads to economic growth and development.

Social cultural factors

Population is a key agenda in the discussion of cultural factors. Most of the managers in Chinese government believe that good social relationships are the key to good human resource management skills. The human resource function is affected by a number of social trends in the world today (Bratton & Gold, 2012, 345). Many people are opting on self employed businesses in China instead of formal employment which has an impact in the management department. The population of China is high which makes the number of unemployed people high thus resulting to self employed businesses. The social trends for example consumption of alcohol and a rise in the number of street children causes a negative impact in the social strategy of Chinese government (Bratton & Gold, 2012, 345). The organization managers are affected by such trends mostly from the high rate of poverty and unemployment cases in China. These are factors that contribute to a negative development in the workforce industry and especially in the fields of human resource.

Part 4

Conclusion

Education is the key factor to good management strategies. The national government is the key control of the future of human resource management strategies. The employees in China have a responsibility of educating the citizens on the importance of living green as a way of encouraging green business in Chinese government. This culture promotes environmental awareness and improvement in china which leads to economic growth and development. Internal factors from the above discussion are seen to be a major factor affecting the economy of china and also the human resource management policies. Human Organizations follow a given hierarchy so as to promote good communication strategies and skills. Different organizations are affected by different factors including technological factors. Improve in technology leads to improved human resource management skills which in turn promote economic growth (Noe, 2013, 212).

Employees and employers should maintain good working environment whereby employers are urged to give employees proper wages and good working environments. Employees should use their skills and knowledge to promote the success of the organizations. Managers should promote sustainable development by utilizing the national resources in a responsible manner. The managers should promote environmental growth by promoting manufacturing of environmental friendly goods and products. Environmental rules and regulations should be well followed under the well management of responsible managers.

Managers should ensure that their organizations respect the environmental policies which are well shown in China’s human resource management function. Chinas development is attributed to globalization since China has ventured into globalization thereby improving its growth economically. Globalization which is an economic trend is well enhanced in China where the Chinese government has good trade ties with other countries globally (University Of Michigan, 1955, 192). From the above point of view it is true to conclude that the human resource management is a key factor in Chinese business organization. It is one way of promoting economic development and growth in the business models. The Chinese government should therefore promote good human resource management strategies for success to be achieved.

 

 

 

 

 

 

References

Alon, I. 2003. Chinese culture, organizational behavior, and international business  management. Westport, CT, Quorum Books

Bratton, J., & Gold, J. 2012. Human resource management: theory and practice. Basingstoke, Palgrave Macmillan.

Budhwar, P. 2000. Strategic Integration and Devolvement of Human Resource Management in the British Manufacturing Sector. British Journal of Management, 11: 285–302.

Burke, R. J., Noblet, A., & Cooper, C. L. 2012. Human resource management in the public  sector. Cheltenham, Edward Elgar.50

Chen, J., & Wang. 2005. Technology innovation and HRM. Bradford, England, Emerald Group Pub. http://site.ebrary.com/id/10103430.

Dessler, G.2010. Human Resource Management. New Jersey: Pearson Printice Hall

Dowling, P., Festing, M., & Engle, A. D. 2008. International human resource management: managing people in a multinational context. London, Thomson Learning.

Ehnert, I. 2009. Sustainable human resource management a conceptual and exploratory analysis from a paradox perspective. Heidelberg, Physica-Verlag.    

Hofstede, G. 1998. Masculinity and femininity: the taboo dimension of national cultures. Thousand Oaks [u.a.], Sage.

Hofstede, G. 2001. Culture's consequences: comparing values, behaviors, institutions and organizations across nations. Thousand Oaks, Calif. [u.a.], Sage Publ.

Noe, R. A. 2013. Fundamentals of human resource management. New York, NY, McGraw-Hill/Irwin.

Paauwe, J., Guest, D., & Wright, P. M. 2013. HRM and performance: achievements and challenges. Chichester, West Sussex, Wiley.

Pieper, R. 1990. Human resource management: an international comparison. Berlin, W. de Gruyter.

Sparrow, P. 2009. Handbook of International Human Resource Management Integrating People, Process, and Context. Chichester, John Wiley & Sons. http://www.books24x7.com/marc.asp?bookid=29466.

University Of Michigan. 1955. Personnel management abstracts. Washington, D.C., Personnel  Management Abstracts.

Yuan, L. 2013. Traditional Chinese thinking on HRM practices: heritage and transformation in China. http://www.palgraveconnect.com/doifinder/10.1057/9781137304124.

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  1. Many entrepreneurial SME’s do not follow a planned, strategic approach to the issue of internationalization. Most do so by means of an evolutionary strategy based on a combination of methods and options. Using relevant illustrative example for each University of Derby Online Learning approach, review the various options that can be used, the advantages and disadvantages these options and how the probability of success can be maximized.

 

Entrepreneurial SME’S

These are small and medium sized enterprises where the numbers of people involved is very minimal and limited as according to the size of the company. As compared to the large companies the small companies employ such wide ranges of people and in many cases always outdo the large enterprises in a big margin (Karami, 2007 p.132). They employ employees of less than two hundred and fifty in numbers and use evolutionary strategy in their skills of entrepreneurship. The small enterprises which are categorized in to three groups namely micro, medium and small firms which contribute much in economic development and provision of employment opportunities to many people. For example in United Kingdom the small and medium sized entrepreneurs comprise the highest percentage of the countries GDP and hire most of the people there. The enterprises venture in to high risks business which large countries cannot venture into. Their failure is often linked with their failure to use competent strategic planning in their entrepreneurial activities. Their failure is linked with the fact that they do not plan on long term basis and thus do short term planning which often affects them unlike the large companies where strategic planning is the main key to success (Carayannis, 2013 p.152). Many small businesses are contented to remain small and are not affected by the success of the large companies who emphasize on use of strategic planning. Entrepreneurial SME’S are known to take risks and grow continually for a period of up to three years where the process of making decisions in these firms is very different from that in the large firms.

It is claimed that most of the entrepreneurial of the Small and Medium Enterprises (SME’s) across the globe do not follow a planned, strategic approach to the issue of internationalization. They often do so by a mean of an evolutionary strategy that is based on a combination of methods and options. However, it is essential for them to use a strategic planning as it enhances their performance. It becomes more essential for these organizations to have a proper succession planning at all level. The fact that they do not use or follow a planned, strategic approach to the issue of internationalization, they do not survive the succession from one generation to another. Normally, the entrepreneurs do not use this approach due to the fear of family conflicts on the ownership or stake holding issue (Organization for Economic Co-Operation and Development, 2010, p.42). This means that the decision makers in the Small and Medium Enterprises (SME’s) have a perspective that real entrepreneurs do not plan instead, they assume that it is more effective to use their limited time resources more effectively for operational or sales activities (Peng, 2009,p.140).

In addition, the entrepreneurial of the Small and Medium Enterprises (SME’s) normally regard formal planning as limited to only large enterprises. Therefore, they claim that it is not transferable to the requirement of the quick moving and stretchy structured Small and Medium Enterprises. From an entrepreneur’s perception, there are a number of objections that are expressed against use of a well-planned strategic process in these small and medium enterprises. The first objection of the reason why the many entrepreneurial Small and medium enterprise do not use or follow a planned, strategic approach to the issue of internationalization is that they have a perception that all the strategic instruments limit the elasticity and the capability of their improvisation. This means that they perceive the strategic tools as a preventer for their improvement and succession regarding to the issue of internationalization. In addition, these small and medium enterprises always prefer to use limited time resources for their operational and sales activities instead of strategy development approach (Peng, 2009, p.140). The other objection is that they perceive the strategic management as too inflexible. Due to their lack of using a planned and strategic approach they tend to offer a more limited range of products. This means that they will not be in a position to succeed in the international market as they compete with large companies that offers diverse products. They also have a poor level of resources as well as lesser access to human and financial capital (Lloyd-Reason & Sear, 2007, p.45).

Growth planning approach as an evolutionary approach used by small businesses

The small enterprises growth is attributed and affected by characteristics of the firm and the decisions of the firm owner. The owners are the only decision makers and have control over their businesses in terms of the vision and action of that business. The growth and development of small businesses depend on the opportunity and requirements of the small firm. The owner is the key determiner where they enhance on the use of limited time resources efficiently for operational and appropriate sales methods. This option is enhanced since the owner is in control of the resources allocated to the businesses since strategic planning is not done to determine such fixed allocation of resources (Lloyd-Reason & Sear, 2007, p.45). Growth panning emphasizes on the owner to plan for the future requirement of the business which will contribute to good success of the business. The failure to involve formal strategic planning makes them successful at times since strategic planning is expensive even in large companies. Growth panning is influenced by three factors which include the background of the owner as a way to determine capital required the characteristics of the business and the decisions and plans made by the owner (Lloyd-Reason & Sear, 2007, p.45).

Advantages of using the growth planning approach

The resources and capital required is minimal and very low as compared to the large companies. The owners of the small businesses use less capital thus can start many more companies and employ many more people thus leading to creation of employment opportunities which contribute to economic growth of the owners and the country at large.

The small firms have good relationship between them and their customers. Their setting is informal such that they employ face to face communication to their customers and know the needs and appreciations and the feed back of the customers and thus they are capable of correcting the failure in good time (Portland International Conference on Management of Engineering and Technology et al, 201, p.98).

The small scale enterprises are advantaged in terms of economies of scale where they are flexible and can strike the market very first as compared to the large companies where strategic decisions are clearly made and thus flexibility of change in decision is vey minimal, difficult and also expensive to apply.

Disadvantages of using this approach

The growth is not on a high rate since the capital used is small and the number of employees employed is also small thus making the profits unequal to the large companies. The growth does not involve strategic planning and is so informal which makes the owner change the decisions from time to time which some times affect the growth of the company(Portland International Conference on Management of Engineering and Technology et al, 201, p.98)..

International Entrepreneurship strategic approach as an evolutionary approach

This is an approach which involves combination of risk factors and how to solve them and innovative measures regarding the small businesses. They enhance use of modern technology in manufacture and sale of their products which they apply very fast as away of improving their sales. They apply new and modern technology in developing new ideas which will bring positive results to the business. For example Ford Motor Company uses this approach in the sale of their products which are mostly used by various industries (International Conference on Industrial Engineering and Engineering Management, et al, 2013, p.110). This approach is used as a way of improving technology and sales of the small business firm. There are two types of environment involved in businesses which include external and internal business environment. External business environment includes those factors that affect the business externally for example customers, competition and taxation from the government which affect the business indirectly. The internal factors include the decisions made by the personal owner of that business and ways in which the factors affect the business positively or negatively (International Conference on Industrial Engineering and Engineering Management, et al, 2013, p.110). The combination of both external and internal factors affects the growth and development of the business where the small businesses must be in good relation with the external factors since they are inclusive of the government policies which must be followed accordingly.

Advantages of using this approach

The factors affecting growth of various small firms varies from one country to another. Good government policies favor development of small firms thus improving the economic conditions of the countries. Employees motivation is key factor in small enterprises and thus since the numbers of people employed is few the employees are easily motivated which encourages them to keep supporting the businesses. The small scale businesses are able to link with other huge companies and also link with other small entrepreneurs which easily motivate them and support that success (International Conference on Industrial Engineering and Engineering Management, et al, 2013, p.110).

The owners of the businesses are the sole business decision makers and thus directors are not involved in running the businesses. The owners will always make decisions that will contribute positive results to the businesses unlike in large companies where directors are the key decision makers and in most cases are not the owners of the businesses. Small businesses are advantaged since the owner will always do things that contribute to the success of the business. They can easily find funds and donors through involving family members for funds and the government as their donors where they easily transform the vision and mission of the entrepreneur in to action.

The entrepreneurial behavior always depends on the motivation of the owner of that organization which is affected by the internal and external factors of the business (Nwankwo & Gbadamosi, 2011, p.380). It is advantageous since the owners link their resources with other resources so as to add value to their firms. Intentionality is highly used in small firms since the firms use it as a way of achieving the set goals of the firms. The set goals in small firms highly depend on the owner and amount of resources the owner is willing to provide as a way of contributing success to the whole business.

Disadvantages of using this approach

The number of employees employed in the small firms is few as compared to the large firms which is disadvantageous to the success of the firms. The owners can make negative decisions regarding the firms and cause failures since they are the only decision makers. They should include some other people in key decision making since errors are prone to occur when one person makes decision where many other employees are affected by the decision (Nwankwo & Gbadamosi, 2011, p.380). This can lead to a negative effect on the growth and success of the business resulting to failure.

The internal and external factors can lead to failure of the business. The government policies some times affect the running of the business since they are not considered favorable to the well being of the business. The change in behavior of the customers affects the business negatively since increase in prices results to decrease in the demand of the goods. Increase in taxation contributes to negative results to the business since the higher the taxation the lower the quantity demanded by the consumers who are the key success factors to given businesses whether small or large.

  1. The OECD suggested that SME’s have a tendency to move to market that are geographically or psychologically close to them.
  2. What are the advantages of this approach?

Various studies were conducted by the OECD project with an aim of finding why the Small and medium sized enterprise do not move to market that are geographically or psychologically distant to them. By the end of their study they concluded that SME’s have a tendency to move to market that are geographically or psychologically close to them due to their perception of barriers to access to high-growth markets (Nwankwo & Gbadamosi, 2011, p.380). Normally, the small and medium sized enterprises are faced with different constrains that hinders their ability to move to market that are geographically or psychologically distant to them. One of the major advantage of not operating to market that is far much distant is that these small and medium sized enterprises are able to face lesser competitions. This is due to the fact that firms that market only within its national boundaries only has to consider local competition (Nwankwo & Gbadamosi, 2011, p.380). This means that if they could be operating in market that is geographically or psychologically distant to them, they would face a stiff competition. Therefore, their way of operating in a market that is geographically or psychologically close to them helps them to gain a competitive advantage as they are not facing global competition. Additionally, they will only focus on the entire competition that exists between its home markets. The fact that small and medium sized enterprises deals with market that is close to them, this becomes beneficial to them as they essentially deal with only one set of customers. This means that they will not face difficulties as they try to focus on many sets of customers (Nwankwo & Gbadamosi, 2011, p.380).

Another advantage of operating in market that it closer is that these enterprises are able to have an increased market share as they do not confront an increasing competition from emerged and developed economics (Nwankwo & Gbadamosi, 2011, p.380). This means that these enterprises always get an increased profit as they do not compete with large number of marketers. Additionally, due to the fact that these small and medium sized enterprises operate within the market, they are able to study the customer’s preferences. This is due to the fact that they cannot be able to conduct a research for identifying the customers’ taste towards certain goods. This is because they are not operating in larger areas. Firms that operate domestically can be in a position to operate many segments of products. This means that they can be able to deal with various businesses as they are easier to monitor and manage. Therefore, Small and medium sized enterprises have the advantage of operating in many sectors as they are close to its entire market.

 

  1. What are challenges that are presented by moving to market that are geographically or psychologically distant and are these more of an issue for the service or manufacturing sector?

There are many challenges that are presented to enterprises that tend to move to the entire market that are geographically or psychologically distant to them. The first challenge is that the entire enterprises always face a stiff competition. This leads them to incur losses to their market share as they are competing with large number of companies. While moving to market that are geographically or psychologically distant, the entire company can face some risks. For instance, the government can impose different charges that can consequently affect their profit. Enterprises can also loss many customers as they are dealing with long distance customers that they are not able to monitor their taste and preference towards good and service they are provided with. They can also meet different rules that can affect their operations which can lower their entire wages. These issues normally arise to manufacturing sector. This shows that it is essential for companies to move to market that are close to them as they will face less completion. This in advance will raise their market share.

 

 

 

 

 

 

 

 

References

Carayannis, E. G. 2013. Creating a sustainable ecology using technology-driven solutions. Hershey, PA, Information Science Reference.

International Conference On Industrial Engineering And Engineering Management, Qi, E., Shen, J., & Dou, R. 2013. The 19th International Conference on Industrial Engineering and Engineering Management assistive technology of industrial engineering. Berlin, Springer.

Karami, A. 2007. Strategy formulation in entrepreneurial firms. Aldershot, England, Ashgate. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=438750.132

Lloyd-Reason, L., & Sear, L. 2007. Trading places--SMEs in the global economy a critical research handbook. Cheltenham, UK, Edward Elgar.

Nwankwo, S., & Gbadamosi, A. 2011. Entrepreneurship marketing: principles and practice of SME marketing. Abingdon, Oxon, Routledge.

Organisation For Economic Co-Operation And Development. 2010. SMEs and entrepreneurship Poland 2010 key issues and policies. Paris, OECD.

Peng, M. W. 2009. Global strategy. Mason, Ohio, South-Western/Cengage Learning.

Portland International Conference On Management Of Engineering And Technology, Kocaoglu, D. F., & Anderson, T. R. 2001. PICMET '01: Portland International Conference on Management of Engineering and Technology : proceedings. Piscataway, NJ, IEEE.

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The limits of consumer’s choice

The article discusses the motivation various producers use in order to boot the choice of the customers. With the improvements in technology the consumers have various choices to make regarding the technology, quality, quantity and price of goods and services provided (Lehrer 11). Many services for example air travel services have reduced their prices as a result of competition. Prices are the key factor to determine consumers’ choice for example in the case of natural gas where customers will look at the price.

Using economic knowledge to analysis of the article

Using the knowledge that all goods must have their value the customers are left with no choice but to choose the ones with good values leaving the bad ones behind. For example in the comparison of oranges and apples what matters most to the consumer is the price and how much the customer wants the product that is the value of the product to the consumer (Lehrer 11). The consumers make sure that the value is maximized so as to achieve the marginal utility since the decisions on whether to buy either oranges or apples depend on value and price. Consumers must compare the price with the marginal utility and make sure that the marginal utility is more as per the given dollar.

It is evidently seen that customers will go for the product where they spend less dollar as per the given consumer optimal rule where utility must be maximized since it is seen that consumers will buy little of the products they are used to buying if the prices are increased (Lehrer 11). Consumers will go for the good quality and quantity products which they can easily afford as regarding their opinions. A fall in price means the product will be demanded more thus making the producers profitable.

 

 

 

 

 

 

Works Cited

Lehrer Eli. ‘The Limits of Consumers Choice’, March 14, 2014

 

 

 

 

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Wal-Mart Retail Company

Introduction

The article ‘Forbes 400 Complete’ discusses Wal-Mart as an international private owned company which comprises of retail shops and warehouses. The company is controlled by the Walton family and is the biggest retail shop globally. The Walton family owns over 50% of the most precious company in the world. The founder of the company is one of the family members of the well known Walton family named Sam Walton in October 31, 1969 and made its headquarters at Bentonville (Li, 2010 p.234). It is the largest grocery retail shop in United States. It is the owner of Sam’s club located in North America which is one of the biggest grocery retails. From the report it is said that Wal-Mart rose from being a regional to an international retail company later to an international one thus making it among the most successful and profitable company globally (Li, 2010 p.234). It is seen to dominate the retail business in United States where it has the most income and profits and also generates revenue in large amounts. Wal-Mart is seen to face criticism from a large number of people including its customers, religious leaders, environmental associations and several people who criticize it on a base that it practices racial discrimination and segregation in its policies and management. It is also seen to practice gender inequalities which contribute to its discrimination by many people (Li, 2010 p.234). The working conditions for employees is not the best and even the suppliers complain since the family owned business is governed by poor policies from the family members who are in the list of directors of the company. Wal-Mart defends itself suggesting that it does everything right which is false from the results carried out.

Tata group

Tata group is an international company with its headquarters at Mumbai located in India. The article describes Tata as a company with seven other small companies which are managed by the family. It is still a family owned business with most of its small companies remaining independent. The company though based in India receives most of its income and revenue from outside the country since it is a well known global company (Witzel, 2010 p.54). The members of Tata family are the key shareholders with exception from its chairperson by the name Cyrus Mystry who is the second person outside the Tata family. The company is well established in India with its brand being well valued and loved by the customers and thus generating huge incomes for the economy of India and the Tata family at large. Some of its projects are opposed by the environmental groups since they are not environmental friendly in nature (Ndia Metals Report' 2014 p.4). The company portrays an example of how families can put their company’s management under people outside their families which is different in the Wal-Mart Company (Witzel, 2010 p.54). The former chairperson for the company who is Mr. Ratan Tata did not chose his children to be his successors though he is a bachelor which should encourage other companies to trust other people for their wealth and skills.

Analysis and critique

Wal-Mart Retail Company

The company experienced trouble based on succession position which is portrayed in other private owned companies like Tata group where succession becomes a main issue as family members differ on who to take control of their businesses (LI, 2010 p.234). This is a research well done and analyzed under the Boston consulting group analysis. Wal-Mart is seen to outdo public businesses as a result of the long term running of the businesses. Wal-Mart is said to interfere with other peoples business for example in the sale of solar rings which were the idea of solar sun Rings Company. Wal-Mart declined to discuss anything with that company until it reached the courts where it was accused of interfering with other people’s ideas. It is seen to copy the idea of solar pad from the other company as a research has shown but the family owned business declined this as a factor to damage their well built image (LI, 2010 p.234). Wal-Mart believes in respecting other peoples businesses where it came out clearly to show the differences between its products and those of the Solar Rings Company. Wal-Mart is seen to be criticized by many organizations and groups which term it as a successful company as a result of its low prices. It is loved by shoppers who want to spend less money on the products they require. It is criticized since reports show that it relies so much on Chinese products thereby damaging the economy of the United States. It is seen as the biggest important of electronics in the united states mainly from china and sells its products at very low prices making it preferred by many people at the expense of the local companies who deal in manufacturing of products such as electronics (The Forbes 400 Complete List' 2013 p.12). It has always been sued by its competitors because of its unacceptable low prices paralyzing other local businesses. It also faces criticism of handling its staffs unfairly by exposing them to poor working conditions and low salaries which it should avoid incase it want s to remain successful.

Tata group

Tata group is mainly dominated by the Tata family which takes control of everything in the company. The management of Tata is mainly comprised of Indians who are key controllers and who only believe in Tata’s products. It faces competition from a number of companies especially the motor vehicle industry. It is governed by nepotism but has dealt with the problem by choosing a successor of Ratan Tata who is not actually from the family (Witzel, 2010 p.54). Tata unlike the Wal-Mart company treats its employees with dignity and good salaries such that they are proud of the company. Its main exports are Britain and are also part of the New York stork exchange thus making it successful. Tata was managed under the best leadership under Ratan Tata who introduced a lot of changes in the company and contributed to its success. It is well known to engage in family conflicts and politics which sometimes contribute to the damage of its image and reputation. Tata group helps its employees and caters for the needs of the employees thus contributing positively to the growth of the company and of the economy. It faces various criticisms suggesting that it has grabbed a 3000 acre farm which is a case at the court mainly touching the Tata tea farms located at Munnar (Damodaran, 2011 p.122). Some villagers complained of a steel wall which was being constructed by Tata which caused death to many people where the company suggested that it would still construct the wall even against peoples wish. Tata motors face criticism since they are reported to transport various military weapons which are criticized by human rights and country activists in India. Tata Nano plant is researched to have caused displacements to people who are highly criticized by political leaders and other local leaders (Damodaran, 2011 p.122).

Recommendations

From the above discussion it is clear to site both Tata group and Wal-Mart as successful companies which are a great influence in the economy (The Forbes 400 Complete List' 2013 p.12). The families should not hinder them from success as portrayed by the Tata group who has a chairperson who is not a family member. The companies should employ staff and management who are qualified according to the education and skills they show but not according to the race or family name. It is clearly learnt from the Tata group that good management is the key to success and thus should be maintained always for the family owned businesses to prosper. The families should not conflict on whom to manage the wealth and they should instead focus on the success of their businesses (The Forbes 400 Complete List' 2013 p.12). By avoiding conflicts, the business can also protect their company image, strengthen the power of family-ownership and remain successful the business and the economy at large. The Wal-Mart company should not let family conflict interfere with its management since conflicts and disagreements results to failure and breakdown of such huge companies. Family members in both Tata and Wal-Mart companies should be educated on management skills of the business, ways of promoting and protecting the businesses and always methods of attracting more customers and maintaining the good image of the companies which will result to huge profits and success of the businesses (The Forbes 400 Complete List' 2013 p.12). Wal-Mart should treat its employees with dignity; pay them deserving and good wages which will motivate them more. They should respect the employees by giving them good and proper working environments regardless of their families and race thus promoting success since employees will be comfortable to work under good conditions. Tata Company treats its employees with dignity and good salaries such that they are proud of the company and this encourages them to be more diligent and work hard for the success of the company (The Forbes 400 Complete List' 2013 p.12). Wal-Mart should do this in order to motivate its staffs and gain more profits.

Lessons learnt from Tata group and Wal-Mart companies

It is true to conclude that for a company to remain successful it should have good management skills, qualified staffs and good relationship between the owners who in this case are family members. The company should also respect environmental laws and follow them since the environment is very important to everybody (The Forbes 400 Complete List' 2013 p.12). The companies should also follow government policies and respect them since they are supposed to be followed by all people. The companies should respect given contracts and agreements for the businesses to run smooth and should also train family members on ways of protecting the businesses. Private companies are seen to be successful if the management involved is the best and follow all the rules of business. Family members should avoid conflict like in the case of Tata where a family member was not appointed as the chairperson. The families should not conflict on whom to manage the wealth and they should instead focus on the success of their businesses (The Forbes 400 Complete List' 2013 p.12). The family companies should respect the employees by giving them good and proper working environments regardless of their families and race thus promoting success since employees will be comfortable to work under good conditions. This will bring success not only to the businesses but also to the country and the world at large.

 

 

 

 

 

References

Damodaran, A. (2011). Applied corporate finance. Hoboken, NJ, John Wiley & Sons.

            LI, C. (2010). Open Leadership How Social Technology Can Transform the Way You             Lead.Hoboken,JohnWiley&Sons.      

NDIA METALS REPORT' 2014, India Metals Report, 6, 1, pp. 1-71, Business Source Complete, EBSCOhost, viewed 18 March 2014.

The Forbes 400 Complete List' 2013, Forbes, 192, 5, p. 138, Business Source Complete, EBSCOhost, viewed 18 March 2014.

WITZEL, M. (2010). Tata: the evolution of a corporate brand. New Delhi, Penguin Portfolio.

 

 

 

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Market Planning Management and Control

Introduction

Nike is a multinational company based in the United States that was established in 1964 by Bill Bower man and Phil Knight and it started as Blue Ribbon Sports, its headquarters are located at Oregon. The company deals with manufacturing, designing and selling of different types of sportswear, equipment and offers a variety of services. Nike’s earliest retail store started as a BRS retail store which was essentially located in Santa Monica about 1966. In the beginning of 1970's Blue Ribbon Sports went further and expanded beyond the shoe distribution production to huge shoe manufacturers. Around 1978, the company formally became Nike, Inc., a name that is credited to the imagination of the company's first employee, Jeff Johnson (Katz, 2004, p.43). Nike Company manufactures and sells products under its own registered brand all over the world. The company maintains high levels on innovativeness to perfect its operations in order to remain on the competitive edge ahead of other competitors. At the moment the company is well known to be among the largest suppliers of athletic wares and other relevant products worldwide.

On the current world the sports industry is highly growing and this has attributed many investors to establish and invest on this sector thus this has increased competition in sportswear market. As a result, battle of the brands has started with companies competing with each other. For instance, in the United Kingdom, market research conducted by Mintel company estimates that the total worth of British sportswear is approximated to be £2.5billion. Companies specializing in this sector want to have a share of this market by creating innovative brands which exceeds customers’ expectations. This research paper will illustrate on how Nike UK can effectively develop new product ideas so that it can remain on the competitive edge ahead of 2014 football World Cup, which will be held in Brazil and it will portray on different strategies that can be put in place to widen its market (Katz, 2004, p. 126).

Changes that have occurred in sportswear market in the last 10 years or more

In the last decade, sportswear market has enormously grown leading to a worldwide make and at the same time attracting more investors who have established several companies which deal with sportswear. For instance, companies like Nike.INC and Adidas are best known as the leaders in the sportswear market all over the world thus it is largely believed that sportswear market is so volatile as compared to other markers (Carbasho, 2010, p.193). On the same note, several changes are adversely taking place in the sports company and if they are not addressed effectively they largely affect sportswear market. The changes in sportswear market are attributed to be as a result of growth of global sporting industry. Nike promotes its products by venturing into sponsorship agreements with celebrity athletes, professional teams and also the athletic teams. Nike pays the performing athletes in most sport functions in order to utilize their goods and thus support and publicize their technology and skills (Crossan, et, al, 2010, p.145). The current growing trend as evidenced among the teenagers wearing sporting apparel is a good incentive to the growth of sportswear market. This motivated the companies specializing on sports apparel to brand and manufacture products which suit the need of their customers. In addition, the need for sportswear and demand in the world right now has as well attributed and motivated those companies dealing with sportswear to grow enormously thus building a global market. For instance, Nike has sponsored many successful track and field athletes over the years. It is well known for sponsoring many football players and also football clubs in different states for example Manchester united and Arsenal with recent negations with Manchester united in January 2014 over a given number of kits.

PESTLE factors that may have affected changes in the market for sportswear

Pestle analysis is one of the tools that are useful in analyzing landscape in an organization, the features which impact on the organizations performance and operations so as to make the decisions and plans of the organization regardless of the futures uncertainties (PITTS, et al, 2013, p.182). Each letter in the pestle analysis stands for an element of the organizations external operating environment. This analysis generally tackles Political factors, Technological, Economic, Social, Legal and Environmental factors. Pestle analysis of Nike UK will help greatly as it guides the management of this company on key areas where more effort should be added in order to achieve established goals and objectives (Ranchhod, 2012 p.223).For an organization to gain a bigger picture view of the environment, one need to analyze the external and the internal framework. The pestle analysis provides the external perspective thus leading to an assessment of the opportunities and threats. The internal perspective can be determined by a review of both the strengths and weaknesses. (SWOT Analysis' 2013, p.149) The grouping of an external center together with internal perception enable one to access the opportunities and threats from outside the organization and the strengths and weaknesses from inside the organization which is generally known as SWOT analysis (strengths, weaknesses, opportunities and threats).

Political factors

The government is responsible in creating economic policies and regulations which will increase the growth of the business. Nike is a beneficiary of these policies in the United States which provide them with an opportunity to modernize and sell their demanded products. This support by the United States government, the low interest rates, the international competitiveness of the tax system and the stable currency condition has helped a lot in the formation of the foundation which may be sensitive to the growth and development of the Nike Company (Ranchhod, 2012, P.248). Nike company mostly trade in America and United Kingdom as its main potential market.

Economic factors

These factors have various impacts on how the entire company makes its own decision and how it operates its major businesses. In the example of many other organizations and also other companies, the greatest threat in the economy would be the economic recession. The recession always have adverse and harmful effects on the growth, development and advancement of Nike. The number of the consumers is decreasing downwards since it is well known that the United States economy if currently facing a huge downturn. Asia too faces the economic downfall thus contributing negatively to the Nikes sales since most of its products are being manufactured in Asia as well. As a result of the consequences the voices of the labor work and the marital are also increasing rapidly. Notably, economic recession is one of the biggest treat to growth of companies and industries.

Environmental analysis

The study of the environment is not necessarily the inclusive of the overall environment of the earth but it includes all the micro and macro environment surrounding a certain business. Nike has proved itself responsible in all the above three cases. As far as the global environment is concerned Nike is ISO certified from the global environment, pollution and carbon foot prints tracing point of view. Nike is a supporter of the green environment and thus does everything necessary so as to protect the environment. Nike is objected in fulfilling the expectations of the customers, creation of the environmental friendly atmosphere globally, motivating its employees and lastly being on the very top of the legislation. Nike displays its positive attitude in a study towards social and environmental responsibility on various parts of the company’s globally. The company is ISO certified for its ability to conserve the environment Nike has proved that it is a responsible organization.

Society analysis

Since many people in the world are opting to keep fit in order to live longer, Nikes products such as shoes and clothing are in demand in order for people to join the fitness clubs. . Nike has been the most choice of people in purchasing sporting related product. Nike is yet to address the problem for example that of the situation of labor factory at various different locations of the products in India. (Carbasho, 2010, p.229). This has contributed to the negative effects as Nikes sales decreases. In addition, Nike is located in healthy environments which enable it to encourage safety of the environment. Currently, people are getting conscious of their body and health in general hence they have joined various fitness clubs in order to maintain their fitness and health status.

Legal factors

Nike is a multinational which has always maintained the business ethics. Nike has always remained friendly to the environment in accordance with the stated environmental laws in the United States and other countries. It has handled legal issues in accordance with the surrounding the legal issues have been operating in. Nike on entering a new country to increase its manufacture does so in accordance to the existing laws, regulation and practices of that particular company. Nike does anything in order to avoid the unnecessary problems thus whenever they have entered a new country they do so long after they have checked the local laws in detail. (HITT, et al 2013, p.231) In any case the laws are in extreme cases and are not in accordance with what Nike can offer Nike always stays out of trouble by respecting such regional laws. For example, the government policies with regard to foreign investment and permit business are different both in the developed and the under developed world. Nike has always paid attention to this concern. In case the government is too pleasant or strict with them, they always prefer to take one step at a time. Nike Company is involved in much corporate social responsibility in different countries (Wetherly & Otter, 2011, p.487).

Boston Consulting Group’s Product Portfolio Analysis

Boston Consulting Group’s Product Portfolio Analysis In order for Nike to be a successful company it is supposed to produce a collection of products with different growth rates and market shares. The portfolio analysis is a function of the balance between different cash flows (Carbasho, 2010, p.193). High growing products require growing cash inputs. Low growth products should thus generate excess and extra cash. There exist four rules in order to determine the cash flow of the products which Nike as a company should use. These laws include: margins and cash generated are a function of the market share, thus high margin and high market share go together and vice versa. This is well explained by the experience curve effect which is commonly observed. Another law is that growth requires cash inputs in order to finance the added assets. The added cash is required to hold share in the function of the growth rates. In addition, big market share must be earned or even bought which requires a supplementary increase in the investment. The company has impartial collection has cash flow that supply funds for the upcoming development and also has got stars whose large share and development has assurance of the future. Lastly is that there should be no product market to grow indefinitely and it has developed good strategies which address issues related to creating stronger Brand, financial turnarounds, producing diverse products, globalization, developing better marketing strategies competition, organization change, hiring people with right skills, public affairs, adapting latest technology and strategic planning (Lussier, Kimball & Lussier, 2009,p.100).

Ansoff’s Growth Matrix

The Ansoffs growth matrix is very crucial to Nike as the matrix helps the managers reflect on how their businesses can grow through the use of existing or new products or in existing new markets. Through the use of matrix the managers are able to evaluate the opposed degree of the risks being associated with moving their organization in a forward way. Ansoffs matrix provides several alternatives and marketing strategies which give an overview about the products and markets are new or existing and this attributes to enhancing new strategies that are made from the series of analysis that is done every time. However n every strategy there is an opposing level of risk that is being attributed and the Nike Company depicts the four strategies and this includes the following; Market penetration which is involves increasing market share within the already existing market segments (Baker, 2011, P.156). Through the selling more products and services to the established customers and also through finding new customers within the already existing markets they achieve their obligation. Thus the Nike Company is advised to entail on that in order to increase its sales all over the world since it’s the best strategy that should be entailed on. Product development which involves the advancement and development of new products for already existing markets. This involves thinking on how the new products can meet customer needs more closely and thus out do the products of the competitors. Market development involves the finding of new markets for the existing products. Market research and also segmentation of the markets helps to identify the new group of the customers. Nike should use this strategy if it will still remain a diversified and multinational company. Lastly, diversification is another important element and this entails on moving the new products into new markets at the same time in order to widen the diversity. Uncertainties are created more by a company if the company moves away from what it has done in the past. Diversification helps a lot in the spread of risk if the existing activities in the company are threatened. In general, Nike Company can use Ansoff matrix as a planning tool to develop and increase its growth strategies by mainly capitalizing on developing strong market, product development and diversification of its operations needs (Bachmeier, 2009, P.23).

Advantages offered by a geo-demographic segmentation in approach to Nike Company

Market segmentation is important in making sure that a company has a good and inventive market strategy. . The segmentation done can be based on the company’s marketing mix. For one to target a group with the intentions of it remaining a population, one must use the market segmentation. Market segmentation has a number of advantages which are much elaborated below.

Increase in profits

Segmentation contributes to increase in customer retention, brand recall, brand equity, competition, communications and increase in the profits obtainable. There are no negotiations in Nikes showrooms thus they target segments which have no need or for bargaining and negotiations. By doing these bikes profits are always so high. The profits increase yearly as a result of this strategy of not providing any room for bargaining.

Company focus

Segmentation is a successful method to increase the focus of a company on the market segments. Enhanced returns together with the better focus. Nike should thus change its focus for better returns thus for it to increase its focus and profitability, it should base its strategy totally on a new segment. This will increase its sales and improve its image since it is well known as a multinational company.

Market expansion

Expansion is immediately possible with geographic segmentation. The Nike company can simply expand to a nearby territory if it basis its market strategy on the basis of geography. (Dawes, 2009, p.243) If the targeted customers are based on their demography then comparable goods can be extended and thus segmentation plays an important role in expansion. In order for Nike to expand in a territory it has to know the segment of the customers it will be meeting and the various strategies of attracting more customers. Advertising can greatly improve the sales of Nike as a great company.

Better communication

The company’s communication strategy needs to be spot on for its target market thus segmentation goes hand in hand with the target market. Communication is possible with knowing the target market. Good communication strategies should be encouraged in order to attract more customers.

Increase in competitiveness

Market segment greatly increases with an increase in the number of competitors. If Nike is focusing on youngsters then its brand and equity with the youngsters will be high. The market might increase and the chances of the new competitor entering will be low. Thus market segmentation will increase the competitiveness of the Nike Company from a holistic view. Thus competition is highly important if the market is to be maintained in a positive direction.

Retention of customers

Nike should use necessary strategies for it to retain its customers for example offering special offers and discounts regularly .Through use of segmentation, customer retention is encouraged throughout the life of a customer. Nike should make sure it retains its customers.

Conclusion

From the above it is clearly seen that Nike is a growing multinational company with its products being preferred the most by a large number of people. It is important to conclude that Nike is one of the largest suppliers of athletic shoes and clothing in the world and also a main manufacturer of sports equipment. Nike promotes its products by venturing into sponsorship agreements with celebrity athletes, professional teams and also the athletic teams. Nike pays the performing athletes in most sport functions in order to utilize their goods and thus support and publicize their technology and skills. Nikes good communication strategy and the fact that it doesn’t accept bargains contribute greatly to its success. For Nike to maintain its dominancy in the sports industry it is required to continue with its various strategies inclusive of good communication methods and saying no to bargaining. This will increase its sales which in return contribute to huge and super profits.

 

 

 

 

 

 

 

References

Bachmeier, K. (2009). Analysis of marketing strategies used by PepsiCo based on Ansoff's theory. München, GRIN Verlag GmbH.

Baker, R 2011, 'Adidas hopes Olympics will see it overtake Nike in UK', Marketing Week  (01419285), 34, 22, p. 6, Business Source Complete, EBSCOhost, viewed 23 February 2014.

Carbasho, T. (2010). Nike. Santa Barbara, Calif, Greenwood.

CROSSAN, M. M., GANDZ, J., SEIJTS, G. H., & STEPHENSON, C. (2010). Cross-enterprise leadership business leadership for the twenty-first century. Mississauga, Ont, Jossey-    Bass.

Davis, J. (2010). Competitive success: how branding adds value. Chichester, West Sussex, U.K., John Wiley.

Dawes, J 2009, 'Brand loyalty in the UK sportswear market', International Journal Of Market Research, 51, 4, pp. 449-463, Business Source Complete, EBSCOhost, viewed 23 February 2014

Gessinger, G. H. (2009). Materials and innovative product development using common sense. Burlington, MA, Butterworth-Heinemann.

Hawkins, D. I., Best, R. J., & Coney, K. A. (2009). Consumer behavior: implications for marketing strategy. Chicago, Irwin.

Katz, D. R. (2004). Just do it: the Nike spirit in the corporate world. Holbrook, Mass, Adams Pub.

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