Thursday, November 28, 2019

Direct business model is better than traditional business model

Background A comparison between direct business model and traditional business model depends on the selling network or the channel applied by the company in order to build a solid relationship with customers. There is close cooperation between wholesalers, retailers and firms that operate in a traditional business model when they are in the process of manufacturing and supplying finished products to the targeted market. However, clients and manufactures are usually sidelined in this process in terms of direct interaction.Advertising We will write a custom essay sample on Direct business model is better than traditional business model specifically for you for only $16.05 $11/page Learn More This is an indication that the firm that uses a direct business model heavily relies on retailers and wholesalers to develop a strong relationship with customers. If consumer’s demand for value can be met by the available intermediaries, then it makes it possibl e for the manufacturer to create a closer link with the target market. This translates into repeated purchases and increased revenue. However, if retailers and wholesalers are unable to meet the company’s’ expected value offering, then it is likely that there will be poor relationship between the firm and its customers. Therefore, it is necessary for the firm to identify the correct intermediaries who are capable of meeting the value offering of the company to the consumers (Fusco, 2010). On the other hand, a direct business model aims at creating a direct relationship between the company and its customers by making direct offers to customers in order to address their needs. In this model, it is easier for companies to develop a direct relationship with customers. Use of technology such as internet makes it easier for companies to create a website that provides information on the products and services offered by the company. The company’s website also shows tran saction options to help minimize involvement of intermediaries and consequently enable the company to concentrate on building direct relationship with the customers (Fusco, 2010). Some companies such as Dell have managed to realize significant growth as a result of using the direct business model. According to Kraemer, Dedrick and Yamashiro (2000), the outstanding performance of Dell Company can be attributed to the company’s innovative response to fundamental and competitive factors in the computer industry. Dell has also been able to improve on its product and service portfolio through its inventory method bearing in mind the direct business model bridges the gap between consumers and the producer. This has enabled the company to realize higher investment returns and a larger market share. The direct business model being used by Dell has also benefited greatly from the adoption of latest platform of technological development.Advertising Looking for essay on business e conomics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Flexibility and efficiency in the manner services are being offered have been improved in comparison to reliance on offline services and outdated technology. Therefore, this research paper explains the reasons why a direct business model is better compared to a traditional business model. In this analysis, Dell Company has been used as a typical example of a company that uses a direct business model while HP company as been used as a company that applies traditional business model. Comparison between direct business model and traditional business model The direct business model used by Dell Company offers numerous advantages to the company in relation to the traditional business model that has been adopted by HP. In terms of relationship building, Dell has successfully managed to use the direct business model to take specifications and orders from customers, forward them to assembling plant s and later on deliver the final products to customers. Both technical support services and selling to customers directly has been made much easier since the company makes use of one-on-one communication systems such as telephones. On the other hand, HP has not been in a position to adequately extend such services to customers. This is mainly because of the existence of middlemen in the distribution chain. Some of the appointed distributors may not have the necessary knowledge and skills regarding the features of the product being sold to the customer. Offering such services to the customers involve complex procedures since the distributors need to communicate with the company about the issues raised by the customers. With regard to market expansion, Dell has used the direct business model to expand into the global market allowing the company to reach a top position amongst other manufacturers of personal computers. The model also allowed Dell to serve diverse markets as a result of lower prices of goods. Dell managed to lower the prices because of elimination of extra costs which are particularly spent on intermediaries involved in the marketing of products. HP cannot manage to lower the cost of its products because of the absence of such opportunities for reducing the total production cost which allow the reduction of prices. Involvement of middlemen in product distribution is likely to increase the price of a product since all the parties involved in distribution are interested in making substantial profits (Shaw, 2003). Thus, it is likely that the retailers and wholesalers will increase the profit in order to realize more profits.Advertising We will write a custom essay sample on Direct business model is better than traditional business model specifically for you for only $16.05 $11/page Learn More The direct business model has enabled Dell to leverage its relationship with both customers and suppliers. Through such relationsh ips, the company has been virtually integrated and thereby allowing it to focus on issues that add value and growth to its establishment. This model enables customers to get the exact products that they require. Specifically, Dell uses the information gathered from the direct customers before and after making any sale in order to provide services that match the needs of customers. When the direct business model was first introduced by Dell Company, its competitors like HP were using the traditional model that involves selling of products through distributors. The use of direct model enables Dell to have continuous communication with its customers. The chief advantage associated with direct communication is that Dell is able to monitor the sale trends and at the same time learn about the unmet needs of the customers. In order to drive the direct model, Dell Company uses the information gathered from the customers. This information relates to the products and services needed by custom ers and the time when the customers expect to complete a transaction (Shaw, 2003). The direct selling model has made it easier for Dell Company to eliminate additional capital required in sales and marketing. On the other hand, the traditional business model used by HP does not provide an opportunity for customers to interact with directly with the manufacturing company. This is from the fact that retailers or wholesalers are interested in making sales other than consumer satisfaction. Direct selling eliminates such middlemen and allows the firm to make continuous contact with customers. According to Kraemer, Dedrick and Yamashiro (2000), the direct approach used by Dell provides the company with approximately 6% cost advantage in relation to the traditional approach used by HP. Kraemer, Dedrick and Yamashiro (2000) note that the direct sales approach provides Dell Company with detailed knowledge of its customers. One of the major setbacks at HP is that all the feedbacks obtained fr om customers are secondary in nature and also takes a lot of time before such feedback processes are accomplished. The direct business model has also enabled Dell Company to run business with low inventory making it unnecessary to have a warehouse. This is because the components of given products are gathered after placement of an order by the customer. From the fact that personal computers are not prebuilt, the company can manage to offer full product customization. This means that customers are free to choose their preferred processor, RAM level, graphic cards and other features. The result is an efficient production which is based on the customer expectations. In the case of HP, it is extremely difficult for customers to obtain their exact products since the products are already manufactured without consulting consumers. The consumers lack the freedom of defining the specifications of a given product. Instead, the customers are limited to choose from the few available options whi ch at times may not meet the expectations of most consumers (Shaw, 2003).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The direct business model makes it easier for Dell to segment customers into different groups such as international, transactional and relationship customers. Therefore, the company is always in a position to adjust its offerings as per the changing tastes and preferences of consumers. Moreover, it takes a relatively short period of time to make such changes because of segmentation. Each customer or region is provided with a sales representative tasked with the responsibility of attending to the needs of the customers. On the other hand, HP cannot manage to segment its customers because of the existence of a wide chain of distribution that complicates this process. The absence of a direct relationship with customers makes it exceedingly difficult for HP to monitor the behavior and perception of customers toward the products and service offered by the company. The direct business model has also enabled Dell Company to lower the price of its products. This is due to the elimination of middlemen thereby saving extra cost on retailers. Consequently, the savings are passed to the customers (Baumann, 2010). The direct selling model offers the Dell company firsthand intelligence on the needs and preferences of the customers. Whenever there are technical or mechanical hitches after products have been purchased, clients are allowed to contact the company promptly using the available portals. It has also facilitated easy monitoring of all the activities that takes place in the company. In case a defect is observed, the company is able to send this information to the design engineers so that they can correct that particular problem. Dell’s management believes that its ability to quickly address customer’s issues and complaints give the company a significant boost over its rivals, particularly manufacturers such as HP. Customers who observe defects after purchasing HP products are likely to wait for long before their issues can be addressed. Customers are re quired to make complaints to the appointed dealers who in turn forward these complaints to the manufacturers. This is a process that takes considerably a lot of time especially under circumstances whereby the middlemen are reluctant to forward the customers complaints to the manufacturer. Clients who are located in diverse market locations have been offered the opportunity to drive the communication system since they solely initiate conversations to the company whenever they are in need to make any inquiries. The traditional business models cannot provide this kind of opportunity. This is because it might take longer for new computer models manufactured by HP to reach the distributors. Use of technology Dell has successfully used technology to generate more revenue and reduce the company’s cost. The company launched www.dell.com in the year 1994 (Baumann, 2010). Currently, the site receives millions of visits from customers in different countries. More than half of Dellâ€⠄¢s sales are web-enabled with other technical support also occurring online. The internet strategy of the company makes use of three principles which are all aimed at creating quality customer experiences, reducing costs and convenience use. Customers are able to access the company’s site at all times. This makes it possible for customers to access any information from the company at all times. The internet is a self-service infrastructure and this helps in reducing the cost. The quality experience of the customer comes in because of the reduced cost especially when customers decide to buy Dell products online. When making any online order, customers have the option of designing their computer with features that suit their needs. After identifying the features, customers are able to see the price of the product from the web page. In case of any changes, adjustments in prices are also reflected on the page. Payment can be made using different payment options provided by the c ompany. For instance, customers are free to pay online or pay directly to the company. Customers are also in a position to monitor the state of their computers in different states and production stages. In addition, the customers are provided with full sales support which is done through the internet .Detailed instructions are available in the pages which customers can use to resolve minor issues and question (Viardot, 2004). It is evident that Dell has used the internet strategy as a major tool for out-competing its competitors like HP. Online transactions involve lesser costs compared to the traditional business model used by HP. Baumann (2010) is quite categorical that technology has enabled Dell to minimize costs while increasing revenue. This allows for profit optimization and also reduces the time spent by consumers in purchasing the product. Dell Company has also used a considerable large amount of capital on technology to control inventory. The additional capital has mostly been used by the company especially in its effort to engage in advanced intermediaries like marketing blogs and blog service providers that are all sponsored by the company. The major advantage of such services is provision of comments, reviews and tips regarding the products and services of the company. There are various links for the company on the internet that have been sponsored that enable clients to obtain additional information on various products that are being offered by the company. Such information also includes specifications of each products and the price list. any available discounts are also stated through these links. in addition, Dell has managed to set up an interaction platform that makes it possible for its current and prospective clients to interact with the support department of the company. The blogs also provide a conversational and relaxed atmosphere to Dell’s customers and at the same time enable customers to read the company’s advertisements . The company has also used additional capital to widen up its network partnership. Dell Company has realized that there is need to maintain constant communication with its customers especially when the latter is need to make inquiries or clarifications. This practice has tremendously boosted its relationship with clients. The use of technology offered Dell Company an excellent opportunity of developing a more cost-effective version of direct selling. Leeman (2010) observes that Dell Company was the first manufacturer of personal computers that made use of new technology like the internet in reducing the company’s cost. After opening its business through website, Dell managed to realize increased sales and the sales continued to increase at a rate of twenty percent per month. According to Leeman, more than eighty percent of internet orders were built, customized and distributed to different customers under a remarkably short duration of time. The company only spent more time on testing its products and loading different software compared to the time spent in assembling these components. On the other hand, companies like HP which rely on the traditional sales model had to wait for more than thirty five days before receiving payments from its primary dealers. Dell has used so much money on technology especially in developing premier pages. Moreover, it is now possible for clients from different target markets to have direct access to the most valuable information of the company through its premier online portal. This strategy offers numerous benefits to customers. These include providing customers with prices of these products and placing online orders that are electronically forwarded to the top-level managers for approval. Customers can also use the premier pages to sort invoices and transaction history. These improvements have reduced the volume of paperwork that Dell used to make use of in the past. In addition, less time is being spent when carrying out accounting and ordering processes. This strategy has not just helped to control costs. It has also helped the company to control its inventory. Through technology, Dell is able to know the different products sold in different countries together with the software installed and warranty records for its products. Technology has therefore boosted the productivity of its sales representatives based in different countries and consequently outwitted its competitors in delivering services to customers. Conclusion To sum it up, this essay has explored the direct and traditional business models with cross reference to Dell and HP companies. It is vital to reiterate that the context of a company largely determines the type of business model to put in place. This is an indication that the direct business model has enabled Dell to benefit significantly compared to the benefits enjoyed by HP. The latter uses the traditional business model. However, as Dell Company continues to expand, there i s need for the company to apply the traditional business model to its current mode. This will help Dell reach a wider market especially at this time when computer assemblers and manufacturers are facing intensive competition. Dell can also work towards applying the merits of the two types of business models since it will enable it boost its marketing and production capacity. This approach will consequently lead to higher revenues. References Baumann, C. (2010). Analysis of the website www.dell.com: Corporate Web Communication. New York: GRIN Verlag. Fusco, M. (2010).An Analysis of the Competing Business Models of Online Journalism. New York: lulu.com Kraemer, K.L, Dedrick, J, Yamashiro, S. (2000). Refining and Extending the Business Model with Information Technology: Dell Computer Corporation. Web. Leeman, J. (2010). Supply Chain Management: Fast, flexible supply chains in manufacturing and retailing. Düsseldorf: Institute for Business Process Management. Shaw, M. (2003).E-busi ness management: Integration of Web technologies with business models. Boston: Kluwer Academic. Viardot, E. (2004).Successful marketing strategy for high-tech firms. Boston: Artech House. München: GRIN Verlag GmbH. This essay on Direct business model is better than traditional business model was written and submitted by user Natural Sna1l to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Monday, November 25, 2019

Telecommunications in Business essays

Telecommunications in Business essays Communication sets up relationships and makes organizing possible. Every message has a purpose or objective. The transmitter specifies whether consciously or unconsciously to accomplish something by communicating. In organizational circumstances, messages typically have a definite objective: to motivate, to inform, to teach, to persuade, to entertain, or to inspire. This purpose is, in fact one of the principle differences between casual conversation and managerial communication. Communication can be accidental (having no intent), expressive (resulting from the emotional state of the person), or rhetorical (resulting from specific goals of the communicator). Whatever the reasoning, grapevine communication occurs on several levels, Itrapersonal communication level, Interpersonal communication level, group communication level, organizational communication level, and the meta-communication level. In the article, Care and Feeling of the Organizational Grapevine, Patricia Karatha nos and Anthony Auriemmo, define ways in which all of these levels of communication, in a properly managed organizational grapevine, can be an effective means of communication and promote overall health of an organization. The first level, intrapersonal communication, takes place within the person. It includes such activities as thoughts processing, personal decision making, and persistence of self-concept. All communication takes place in the individuals mind when he/she is talking to self expressing either supportive and constructive or unfavorable and destructive ideas. Our ego-talks sometimes influence our communication with others because of our mind-sets. According to the article, a persons mind-set can have a lot to do with the misunderstanding and flowing of the messages throughout the grapevine. Depending on a persons mental state these, messages may either be bogie rumors or &q...

Thursday, November 21, 2019

Medical errors Research Paper Example | Topics and Well Written Essays - 10000 words

Medical errors - Research Paper Example Due to development in science and related ethical considerations in the western part of the world, patients and those related to them have more opportunities to be aware of mistakes and errors committed by their medical practitioners which further allows them to follow an appropriate course of action depending on the nature of MEs. Another significant factor that leads to formation of processes involved in disclosure of medical errors is Judeo-Christian traditions prevailing in western part of the world. Although these traditions are not universally applicable however secular western societies recognize them well. Some of the major Judeo-Christian expectations include confession, repentance and forgiveness. According to Berlinger and Wu (2003), When one misses the mark in terms of another person, Jewish and Christian traditions prescribe a series of concrete, reciprocal practices: confession, which includes disclosure and apology; repentance, which includes the actions that the person who has harmed another undertakes to compensate for the error; and forgiveness, through which the person who has been harmed signals that he or she has been adequately compensated. These practices may serve as a lifelong reference point for ethical conduct (106)i.† In order to devise a concrete mechanism of disclosure and apology by medical institutions to those directly affected by these medical errors, it is important to identify and understand expectations on part of patients and those related to them. Where apologies are the ultimate expectation of these parties, admitting fault and confessing them are the first step to resolutions of such situations. It is important to note that admitting fault may be sufficient enough to raise liability of medical practitioners and institutions in case patients and their relatives decide to enter into law suits. Another important element of accepting and disclosing medical errors is repentance on part of medical authorities involved

Wednesday, November 20, 2019

Applied Economics Essay Example | Topics and Well Written Essays - 250 words

Applied Economics - Essay Example Concerning the four countries in question it is evident that the rate of growth of the Gross domestic product varies from one country to another (The world bank, 2014). Based on the comparison among the four countries it is apparent that a high volume of Money at LCU corresponds with a low gross domestic product and a low volume of money at LCU corresponds with a high gross domestic product. Money at LCU is one of the significant economic indicators since it refers to the money that is in circulation (Econstats, 2014). In this case, financial transaction tax will have a direct impact on the money at LCU. In this case, financial transaction tax will lead to a decrease for money at LCU. Based on the relationship between money at LCU and GDP a reduction in the money at LCU will raise the rate of GDP for a given country. Consequently, this will have a reduction in money at LCU will lead to reduction in inflation since it will reduce the spending habits of residents in a country. On the o ther hand, an increased local currency unit volume will increase money supply, which may lead to inflation (Eisenstein, C. 2011, 295). In conclusion, an analysis of the four data variables Inflation, money at its local currency unit (LCU), and revenue collected form tax and the gross domestic product outlines that financial transaction tax can have an impact on the economy of a country. Because financial transaction tax can regulate the money supply of a country, it can have an effect on the economic activities of a country. As a result, financial transaction tax can be used to stabilize economic conditions of a

Monday, November 18, 2019

Compare internship chosen with own professional goals Personal Statement

Compare internship chosen with own professional goals - Personal Statement Example I expect that this period will be a great learning experience for me, and will lay the foundation for the future that I see for myself as finance professional. I think that finance is the core sector of any business, because how finances are managed will be the key to whether a business makes a profit and prospers, or makes losses and dwindles. To begin with I shall need to learn the basics of how to use accounting tools, balance budgets and make accurate forecasts, taking into account future trends in markets and economies. The management of variances in actual and budgeted expenses and revenues, will be a challenge that I shall look forward to. I would like to gain an in depth understanding of how budgeting is done for various products, as well as how strategic goals are shaped and executed, and growth is driven through disciplined and efficient operations. Above all, I shall look forward to learning how processes and policies are put in place in order to drive growth, and improve the financial health of the company. In today’s world of global competition, I shall be particularly interested in learning how finance wizards work with fluctuating currencies, and the techniques they use to manage risks. The meeting and interaction with eminent Chief Financial Officers of various companies will be the icing on the cake. The seminars that I expect to attend as part of my internship will also help me hone my problem solving and communication skills. Interactions with people from varied walks of life, will give me insights into different ways of analyzing and addressing problems, and give me the confidence to put forward my own views and ideas. I hope also that meeting people will enhance my interactive and people skills. All in all I am expecting that this period of internship will be a big step forward for me in the direction of my ultimate goal. On my part I shall

Friday, November 15, 2019

Assessing Key Strategic Levels Of Electrolux Commerce Essay

Assessing Key Strategic Levels Of Electrolux Commerce Essay There are usually three levels under which a strategy can be implemented and formulated in a company or an organization. They include the corporate level, business unit level and the departmental or the functional level. The corporate level is mostly concerned with the identification of the potential competitors in the market which must be considered in the daily operations of a business. At this level of strategy, the business is concerned with the reach, competitive contacts and business interrelationships coupled with managing activities of the business. The utilization and consideration of the managing practices which the business engages into is paramount of consideration at this level. Secondly is the business unit level of strategy in an organization which deals mostly with a single unit in a business tasked with specific assignment like cost, revenue or profits. Their responsibility is to devise a strategy that will propel the businesses to conquer and acquire large market ar ea size bigger than its competitors while maintaining a competitive advantage in the market. Lastly, the functional level is fundamental since it determines the level of business operations within the independent units of a business (Thompson Strickland 1995, p. 23). Their collective activities form the overall business operations. Electrolux identified three levels of their market practices that they needed to capture, improve and rectify in order to effectively compete in the international market. First in the corporate level is the globalization aspect. Since the global competition is strong and stiff, the company devised production procedures that are cost effective providing the clients with variety of products at lower prices. In identification of corporate behaviors in the manufacturing industry, the company concentrated with quality development of products, extensive efforts to build their brand name as well as thorough efforts to capture wider market area size internationally. Secondly, the business level unit of business strategy involved the study of the market polarization and its dynamisms. The change of consumer preferences were taken into consideration before implementation of any production process to only deal with the products t hat are preferred by the customers. Market polarization was due to strong international competition, changes in consumer preferences and the rapid growth of the retail chains in the international market (Thompson Strickland 2001, p. 16). Therefore a thorough scrutiny of the consumer trends in the market is basic for companies to venture in those fields that are profitable. Lastly, in the departmental level of business strategy, Electrolux identified the steps to consolidate their retailer outlets for fostering the market segments to capture an extensive market area size. Therefore, Electrolux has introduced large scale purchases of raw materials in the production department not only to save on costs but also benefit from large scale economies. This coupled with a wider geographical coverage it strives to capture will propel the profitability of the business to higher levels. With proper consideration of retailers across the global market especially in developed economies, Electrolux has been in a position to supply wide variety of household appliances at reduced prices a fact that has created wider market for its appliances. The adaptation of supply to large scale out lets has also been incorporated under this level of strategy to capture a large international geographical area (Hill, Jones, Galvin Haidar 2007, p. 97). Porters Five forces model This is a business framework used by industrial stakeholders both manufacturing and service industries in their analysis and business strategy development. This concept utilizes industrial organization economies in addition to development strategies to identify and utilize the five market forces to increase companys attractiveness in the market in terms of profitability. The unattractive market situation according to porter occurs when the combination of these forces reduces the profitability of a business. Among the five forces in porters model, three acts from the external perspective of the business. Factors beyond business control greatly influences the market practices. They are well studied when divided into two components; horizontal competition involving the threat of established competitors, threat of substitute products and the threat of new entrants into the market. On the other hand, the vertical competition involves the bargaining power of suppliers as well as the bargai ning power of consumers (Porter 1980, p. 34). The existence of substitute products ion the market encourages customers to switch to alternatives if the prime company does not satisfy their needs and preferences. However the substitute element is dependent on a number of factors like; he customers cost of switching, their propensity to substitute products and commodities, the ease at which substitution is possible and the quality of depreciation to which the substituted product infer. When the market provides good and favorable conditions for businesses coupled with profitability, the entrant of new competitors in the same field is inevitable. This trend results to reduced profitability and the market approaches perfect competition scenario. However, this may be prevented by introduction of barriers to entry, high cost of switching, improving brand name and quality, increasing capital requirements and introduction of government regulations. The threat of competitive rivalry in the market is very evident in many business set ups. A business can therefore prevent this by adopting appropriate competitive advantage through market innovations and creativities (Porter 1980, p. 39). Other factors that determine the extent to which entry of potential competitors affects the business may include the advertising costs, strength of the competitive strategy, and the capital base of businesses. Bargaining power of customers which represents the market output of the firm or a business is paramount to existence of a business. The concentration of buyers and that of business should be proportionate to sustain the businesses; the buyers volumes should be substantial, the market information should be available to all participants and buyers should always be sensitive to price adjustments. Lastly the bargaining power of suppliers represents the market inputs for businesses. When the business has a good supply of raw materials, labor, components and services, its in a position to have a market command. For this force to work properly, the suppliers degree of product differentiation should be distinct, market should have input substitutes to be used in cases of shortage of pr ime inputs and the existence of supplier competition. Household appliances have also experienced several forces in the market not only for individual country but also in the international market (Porter 1980, p. 44). The bargaining power force identified is the growth of domestic market demand for Electroluxs products which witnessed the firm expands its operations to cover dishwashers and washing machines to satisfy the growing market. The threat of existing firms is evident when they introduced production plants in countries where the cost of production was low. This competitive force existing between dominant firms forces firms to venture to product development, brand building as well as improving marketing strategies. Household industry is also experience the threat of new entrants in the market especially from Asia producers of LG and Samsung the Unite States household appliance market. There has also been entry of new supplier of other household appliances which have forced Electrolux to venture also in the production and distribution of other appliances like dish washers and washing machines to remain competitively. There has also been supply of raw materials at lower costs in other countr ies like Mexico where existing competitors and new entrants have ventured forcing Electrolux to establish a manufacturing firm in Mexico as well (Porter 1980, p. 48). Household appliances industry over the recent decade proved to be a very attractive industry in provision of household items. The bargaining power of customers has been increasing over time resulting to mare and effective demand. The bargaining power of suppliers has as well tremendously increased which has witnessed the profitability of household appliances industry to increase tremendously. This increased profitability has rendered the household industry to be most attractive industry not only in the country but also in the international market. Strategic capabilities of Electrolux Strategic capabilities are the methods that a business implements allowing it to have an advantage in the market. They are the business strengths that a firm enjoys over its competitors in the market. The composition of the executive leadership of a business has also substantial effects to the future progress of a business in the industry especially when the competition is stiff. Their leadership and managerial skills towards addressing market issues forms a substantial component of the business and determines the existence of the business in the market. Therefore the skill for identification and restructuring of a business activity in the market greatly determines the capabilities of a business in a certain industry. Electrolux have diverse and strong capabilities that enable it to work properly and preserve the strong competition in the market. It is the largest company for the manufacture of professional and domestic appliances in the world market (Johnson, Scholes, Whittington 2 005, p. 24). Despite its wide market coverage, Electrolux manufactures a wide range of products from cookers, fridges, vacuum cleaners, chain saws to law movers. This diversification element presents it with an advantage over other businesses during tough economic periods. The wide market coverage also plays a vital role in the market diversification to secure from unprofitable regions which are compensated by other profitable ventures. This element allows the company to continuously remain in business. Its capital base is also strong a fact that makes it preserve strong economic conditions. Another notable capability that the company enjoyed is the able leadership of its presidents and Chief Executive Officers. Since early 1920s, the president of the company; Alex Wenner-Gren spreaheaded the growth strategy and created a wide pool of capabilities that the company relied on in its execution of duties (Johnson, Scholes, Whittington 2005 p. 86). The diversification plans the company explored to start production centers outside Sweden offered a proper opportunity for the company to stand a better chance to capture the market. Its establishment in UK, France, USA, German and Australia created a wide and large capital base for expansion and dealing with large scale economies of scale. The diversification strategy adopted by the company provided better grounds for expansion and capturing of new markets as well as sustaining the existing ones. The continued and able leadership the company enjoyed has provided a good platform for expansion both national and in the international markets. The company had also strong financial resources that allowed it to continue with numerous acquisitions not only in Sweden but also in other major trading blocks in America, Europe and Asia which further added to their strength of retaining a large market area size. These acquisitions were accompanied by disposal of non profitable ventures and subsi diaries of Electrolux in the international market. This step allowed the company to concentrate with the profitable branches and maximization of profit in other branches that were profitably. Lastly the company was in a position to heavily invest in marketing as well as building on the brand name which gave it a command in the international market (Johnson, Scholes, Whittington, 2005 p. 89). Strategies to strengthen competitive position Household appliances since 1930s were a competitive venture in the internal market. Demand for household appliance increased effectively especially after the send world war, therefore, many companies invested heavily to this profitable business threatening the existing companies in the market. However, for the existing companies to remain in the widely and strong competitive market, they had to devise a strategy of operation. One such company was the Electrolux which adopted several strategies to competitively remain in the market as a leader. First, the company resolved to continually pursue plans of cost cutting in all its branches and further reduce all the procedurals in the operations to avoid complexities. This would propel the company to manufacture household appliances at lower cost hence provide finished goods in the market at a reduced price than its competitors. Therefore, Electrolux will increase sales and expand its market area size as compared to the other investors and businesses in the same field. Secondly, Electrolux resolved to rely on consumer insights and information to continually increase its product renewal rates (Thompson Strickland 2001 p. 25). This strategy will not only increase sales for its products but will also be in line with changes in consumer preferences and tastes which will make Electrolux products relevant in the market maintaining its competitive position in the international market. Manufacture of customer specific products and commodities not only increases sales but also assists the company to implement innovative ways in the production process. Lastly, to maintain its market leader position in a highly competitive market, Electrolux decided to be undertaking frequent market investment plans to have first hand information concerning its position in the market. These investments were also aimed at building its brand name in the market regardless of other competitors action which will consequently increase the companys sale volume in the international market. The marketing investment will also assist the company to identify the under performing business units, identify low production units and destinations, i dentification of more efficient purchasing ventures as well as information containing activities of other competitors (Thompson Strickland 2001 p. 35). Corporate governance of Electrolux Corporate governance involves a whole set of customs, policies, institutions, laws and processes which directly or indirectly affects how an organization or a company is controlled, directed and administered. It also includes the relationship between and among all the stakeholders in an organization or a company. The major stakeholders involved in a company to be included in the corporate governance include; management, board of directors and the shareholders. Other stakeholders included in the corporate governance are the customers, suppliers, employees, creditors and the wider community. The principal objective of corporate governance is to eliminate and prevent any form of malpractices in business operations while promoting transparency and accountability. While corporate governance is executed properly, it enhances economic efficiency of the company as well as improving on the shareholders and other stakeholders welfare. Due to the accountability and transparency achieved by corp orate governance, the collapse of a company is not likely since there are checks and balances that occur among all the involved stakeholders (Hill, Jones, Galvin Haidar 2007 p. 101). Electrolux is governed under the statutes contained in the Swedish corporate governance, Swedish companies act, regulatory system of NASDAQ OMX Stockholm as well any other corporate Swedish and foreign law relevant to its operations. The companys governing structure is composed of more than 160 companies operating in over 50 countries globally. The parent company is the AB Electrolux situated in Sweden among the listed companies in the country. The major stakeholders are the external auditors who are nominated by shareholders in the Annual General Meeting, internal auditors appointed by the board of directors who oversee their operations as well as those of external auditors in addition of remunerating them accordingly. The company is headed by a Chief executive Office besides a management board. Under them, there are several boards dealing with specific departments like risk management, pension, treasury, audit and tax boards in charge of administration in their respective departmen ts (Hill, Jones, Galvin Haidar 2007 p. 104). Changing management in acquisition strategies Companies undergo acquisitions and mergers to expand and avoid bankruptcy. Most of these mergers and acquisitions do not meet their objectives and the deal fails due to lack of proper consideration of the change management necessary in such exercises. These changes include; cultural cohesion that should identify the cultural back core of the involved companies. The cultural components of acquisition process of companies include the conditions, disciplines, and beliefs that form the internal component of a company reflected in the external traits of the company. Secondly is the persuasion of missiology processes which involves the convincing of another company to join with another. The persuaded company abandons its values, beliefs and practices to join those of the other performing the acquisition. Meritocracy acquisition forms the other forms of acquisition changes that are necessary for the company to consider before engaging into acquisition of mergers (Thompson Strickland 2001 p . 24). Under this processes, retention of any stakeholder in the new entity after acquisition is dependent on the contribution to the company as opposed to longevity of employment. Lastly, acquisition changes may be effected by consideration of mettle. This involves the strength, spirit, character and courage that exist within a certain group of people within a certain organization. When an acquisition occurs, the mettle components of the acquired company must be adjusted to fit to those of the parent company. Therefore, Electrolux should adopt the cultural cohesiveness in the process of acquisition of other companies (Thompson Strickland 2001 p. 28). While acquisition has already taken place, several adjustments are necessary to the management in order to include all the stakeholders interests. In the leadership and management field, changes are virtually important to foster and reflect the interest of all the stakeholders as well as those of the company. Secondly, the operations field in another context under which changes is paramount to harmonize the operations of the acquired company with the parent company.

Wednesday, November 13, 2019

Bioterrorism Essays -- essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  You wake up early for work and kiss your family goodbye. On your daily transit you see a man drop a glass vial in the subway, but you think nothing of it. Moments later you become a statistic. A statistic of Bioterrorism. The threat of Bioterrorism, long ignored and denied has heightened over the past years and needs to be publicly addressed. There are three possible solutions to this threat that are within grasp. The first of which would be a nation wide vaccination against all agents that could be used against the American public. Second, we could educate people to more efficiently spot the symptoms of such an act, or to protect themselves from an act that has already taken place. The last solution would be to prevent the act from occurring, detect it as soon as it occurs, and destroy the destructive pathogen used. Even with all of these solutions, an act of Bioterrorism is a major threat to the United States that could occur undetected and must be dealt with im mediately in order to save lives. Biological warfare has been used from the cadavers poisoning water supplies, to modern technology allowing munitions, and advanced deployment of biological weapons. Both nations, and dissident groups exist that have some of the most dangerous, and deadly pathogens, along with the ability to deploy them. Bioterrorism presents a threat to all people of the world, and will always remain a threat for three main reasons. One, it is very easy for anyone to obtain samples of harmful agents, such as anthrax or small pox. Two, an act of this terrorism could occur at any time, any place, and there would be no reaction for days or weeks. And third, many of the agents that can be used in such acts have no treatments, let alone cures. If a group, or nation had funding and a moderate laboratory they could produce, and deploy some of the worlds deadliest pathogens undetected. For example, in 1995, the Japanese cult, Aum Shinrikyo, released the nerve gas Sarnin in the Tokyo subway. The cult also had other plans set up. In its arsenal police found large quantities of nutrient media, Botulium culture, anthrax cultures, and drone aircraft equipped with spray tanks. Members of this group have even traveled to Zaire in 1992 to obtain samples of the Ebola virus. Terrorist groups exist today that have a large quantity of diseases, chemicals, and viruses to ch... ...e need to establish a local, regional, and national disease control system. The local system would be responsible to identify the specific virus, and determine the quarantine area. Once this has been done, the regional team would come in and enforce the quarantine area, and also start a standard treatment for those patients. Once this has been done, the national team would start to determine a more specific treatment, and attempt to develop a cure. If no cure can be found, then the area shall be destroyed by any means necessary to eliminate the harmful agent, and maintain safety. If an outbreak did occur, then we shall do whatever it takes to minimize human life, without the cost of many. Bioterrorism represents a clear and present danger to the United States. Out of All the solutions I gave, if nothing is done, then it is not if an act will occur, but when it will occur. Bioterrorism has already happened, and will continue to until we do something about it. In order to do about it we must instigate a plan of nation wide vaccination, education, or prevent detect destroy. If nothing is done, then one day on your way to work you could become a statistic, a statistic of Bioterrorism.