Tuesday, October 29, 2019
It is about culture(Anthropology) Essay Example | Topics and Well Written Essays - 500 words
It is about culture(Anthropology) - Essay Example The end of First World War did not get any relief to the peasants. First the Socialists took over, and then the Fascists took over from the socialists. But it seemed that the condition of the peasants remained the same. They were first oppressed by the landlords, then by the Socialists, then by the Fascists and the Landlords. The food was always in short supply, meat was a rarity. Ironically during times of war the peasants in the villages fared a lot better than those living in the cities, as they could live of the wild. And many people in the cities use to go to the rural area to get some food of there. The Barter system was also very prevalent. People worked for food and traded various items to sustain themselves. The degradation of Women is also covered very thoroughly in this chapter. They were encouraged not to work. They were also not encouraged to educate themselves. They were generally encouraged to stay at home. The Fascists further painted women who did not marry or bear c hildren or selfish or unattractive. While Women were expected to be virgin till marriage, men were expected to show of their virility before that. This created a situation where prostitution thrived. This had a psychological impact on women in Italy long after the war was over. There is a brief coverage of the family structure as well. While the male was the titular head of the household, his wife generally ran the family. Sharing of food with less fortunate neighbors even though the quantity was low was common. The fascists and the socialists are also given their due coverage and it is not a flattering picture. While the socialistââ¬â¢s looted shops and farms, apparently to redistribute the wealth, but in reality it was to benefit a few. While the fascists did not make an attempt to cover up their intentions and joined hands with landlords and other wealthy people to wreak havoc on the peasants.
Sunday, October 27, 2019
Marketing Strategy for Low Income Consumers
Marketing Strategy for Low Income Consumers After evaluating the Case Study Unilever in Brazil(1997-2007): Marketing Strategies for low-income consumers the following points are credible. After the long recession period Brazils economy is growing and that is reflected on consumers purchasing power(Increased by 27% for the poorest 10%) and market is also growing with 17% annual rate. After analysing various options, I think it would be beneficial for Unilever to choose a strategy for Market development by introducing existing brand from its Latin American portfolio like Ala. New Marketing Mix should consist Good Quality, Low Price, Attractive packaging, Specialized Distribution system and Promotion. Changes in a new marketing strategy is urgently required for Unilever as PG is very aggressively reactive (By acquisition, re-imagining and re-positioning of brands.) Ala should be priced $1.55/Kg (Approx) and should be launched in both box and sachet packing. Sachet packing will be offered with free extra quantity due to cheap packaing cost. We can introduce 2kg 3kg bags with attractive price. Unilever should introduce a new distribution management system that includes both Generalist Wholesaler and Specialized Distributors. Unilever need to build direct relationship with 75,000 small shops by giving credit and incentive. Unilever also be having an option to start production of Ala in NE region, as government is providing lot of tax Incentives that will help Unilever to produce at low cost. Consumer Behaviour Like any other country Brazilian consumers also have their own beliefs, values and lifestyle. Washing is one of the major activity for women in NE and various sentiments and emotions like pride, care, pleasure and satisfaction are attached to it. Washing is a medium of socializing for women in NE, because only 28% household own a washing machine and mostly they wash their clothes in a public laundry, river or pond. Women in NE wash clothes using laundry soap and around 73% thinks that for cleaning clothes bleach is necessary. Current usage of detergent powder is just for giving good smell to clothes. Decision making process for buying a detergent powder in NE is based on several criteria as shown in Table 1. (Solomon et al, 2009 p.155) Table 1: Evaluation Criteria [Source: Exhibit 5 : Unilever in Brazil Case Study] 30% (51.06 Million) of Brazils population earn less than $125 a month. More specifically 25.4miliion in NE and 25.62 Million in the SE.NE consumers are very price sensitive. Diagram 1 Around 40% of Northeast population is illiterate and they generally buy products on the recommendation of local shopkeepers, word of mouth, television advertisements, visual identity and graphics. (Solomon et al, 2009 p.158) In spite of low Income, NE consumers are very self esteemed and sensitive about their social status and cleanliness, so they wash clothes more frequently 5 times a week compare to 3.9 times a week in SE. Washing can be considered as Ego need (Higher-Level Need) for NE consumers according to Maslows Hierarchy of Needs. Abraham Maslow (1970) in his study of Consumer behavior proposed a Hierarchy of Needs and related Products. And refereed Self esteem as Ego based need. (Solomon et al, 2009 p.161) Physiological Need (Water, Food, Sleep) Safety Need (Security, Shelter) Belongingness (Love, Friendship, relationships) Ego Needs (Prestige, status, self esteem) Self Actualization Higher -Level Needs Lower-Level Needs NE Customers needs with respect to washing is more Ego based (Pride, Self Esteem Status) Diagram 2: Maslows Hierarchy of Needs and related Products (Maslow, 1970) [Adapted and modified from Solomon et al (2009), Marketing Real People,Real Decisions,Page 161.] Market Analysis Major Brands in Market Unilever is a Market leader in Brazils detergent powder market with 81% Market share followed by PG with 15% market Other local brands(4%). In Northeast region Unilever is having 75% market share followed by PG 17.5% and others with 7.5% market share. NE Detergent powder market is growing with 17% annual growth. Table 2: Main Players in NE Detergent Market [Source: Exhibit 7 : Unilever in Brazil Case Study] But unlike NE Detergent powder market, Laundry market ($102 Million, 81,250 tons) is totally different and growing with 6% annual growth, Unilever is a market leader in Laundry soap market as well with one brand Minerva (19% market share) and major competitor for Unilever is ASA with a brand Bem-te-vi (11% market share). Table 3: Main Players in NE Laundry Soap Market [Source: Exhibit 7 : Unilever in Brazil Case Study] Strategic Competitive Analysis Unilever has segmented market by geo-demographic segmentation based on Income(High Income Low Income) and geographic locations (SE NE) and currently targeting the high income consumers in SE.(Solomon et al, 2009 p.215-220) Unilever has positioned their products in market with respect to various key features of products like Omo with remove stain with low quantity, Minerva with Emotional appeal and Pleasant smell and Campeiro with Low cost. Whereas PG has started reacting very aggressively after taking in consideration of growing Brazils economy by acquiring Quanto, Odd Faces and Pop from Bomrill. And after making some manufacturing changes, launched Quanto as Ace, Odd Faces as Bold and kept Pop (the low price brand) unchanged. PG positioned their products like Ace with Whiteness, Bold with Softness and Pop with low cost. Table 4: Current Strategies of Various Brands ASA (Local Brazillian Comoany), also segmented market by geo-demographic and currently targeting Low income consumers in NE. ASA positioned its brand (Invicto) in market by focusing the low income consumers. Invicto is one of the key competitor of Campeiro in low income consumer segment. After analysing the complete market situation, I found that currently PG is the most active player of the market though PGs market share is not much high (As they acquired all the three brands this year.). So I think PG will give very tough competition to Unilever in a long run. SWOT Analysis The SWOT analysis is the method of understanding Internal and External Environment of an organization (Kotler 2000, Page 46 and Solomon et al, 2009 p.66). SWOT analysis of Unilever provides a summary of Strengths, weaknesses, opportunities and threats. Strengths Threats Opportunities WeaknessesInternal Environments External Environments Diagram 1: SWOT Analysis Internal Environment Strengths Good Market reputation with 75% market share. High quality products Differentiated Products Brand Awareness Weaknesses Demographic market Segmentation Weak distribution system Lack of Expertise in Customer relationship Management Week RD and marketing expertise External Environment Opportunities NE is a very high potential market (48 million). NE detergent powder Market is growing by 17% annual growth. Unilever can capture NE low income market to enter first in it. Increase in purchasing power of poorest 10% consumers. Brazilian government providing tax incentives for encouraging investment in NE. NE women wash clothes more frequent then SE, so it leads to higher consumption. Threats Economic downturn might affect the growth and sales. PGs RD and Marketing Expertise Cannibalization Local NE detergent manufacturers. Marketing Strategy Segmentation Diagram 2: Distribution of Social Classes Northeast Southeast Unilever had segmented the complete Brazilian market into two segments based on location and Income (demographic Segmentation). (Solomon et al, 2009 p.215-220) But I think Unilever need to create a new segment that will focus consumer in Social class E- E+, because we have 53% (25.44 million) in NE and 21% (25.62 million) in SE. Both the region is having equal number of low income consumers (as per percentage of total population in region). So this new segmentation will target not only NE low income consumer but SEs low income consumers as well (30% (50.70 Million) of Overall Brazil population). Table 5: Distribution of population as per social classes [Source: Exhibit 2 : Unilever in Brazil Case Study] Targeting Market Till now Unilever is a Market leader by targeting High Income Consumer segment (SE). For entering into Low income consumer market, Unilever need to prepare and implement a new targeting strategy because its a very huge market segment (53% NE and 21% SE). So what will be the Unilevers possible targeting strategy? Igor Ansoff (1957) in his study on Strategies of Diversification suggested a marketing tool (Market growth Matrix) and as per Ansoffs market growth matrix, Unilever is having two potential options out of four: Unilever is targeting new market segment, so option 12 automatically neglected. (Ansoff, 1957 p.113) Existing Product New Product Market Penetration Diversification Market Development Product Development Unilever can launch a Completely New Product in NE after RD and according to NE customers need. Unilever can Re-position existing brands or launch brand from existing international portfolio. Market. Diagram 3: Ansoffs Market Growth Matrix [Adapted and modified from Ansoff ,(1965), Corporate Strategy ,Page 109.] Existing Product in Existing Market (Market Penetration) Unilever is already having 87% (National Average is 81%) market share in SE with three brands. New Product in Existing Market (Product Development) Unilever is a market leader in SE higher Income segment, so no need to launch Ala. Existing Product in New Market (Market Development) Market Development can be the best strategy for Unilever in current scenario because Unilever is already having a good brand image in NE. Unilevers main challenge is to develop a market and try to change the washing habit of Low Income consumers by shifting them to detergent powder from laundry soap. New Product in New Market (Diversification) Diversification is the most risky option compared to the others because we are moving into the market with a New Product in which company is having very little or no experience. Market Penetration Product Development Market Development Diversification Low Risk High Risk Diagram 4: Risk associated with Market strategies In the current situation Unilever should choose the 3rd Option (Market Development), because Unilevers existing market (SE) is already developed with 87% Market Share (Option 12) and currently Unilever is looking for expand his business in NE and to capture low income consumer in SE as well. What all options are currently available to Unilever in Market development? Positioning the Product (Marketing Mix) Positioning Positioning New Brand in NE market by fulfilling customers need Distribution Specialized Distribution High availability Price Low Price (affordable) Product Fulfill NE Consumers need Good Smell Low Price High Quality Promotion TV Advertisements Sponsoring local Events Sample distribution Diagram 5: Marketing Mix [Adapted and modified from Ansoff , Lars Perner, 2010 http://www.consumerpsychologist.com/cb_Segmentation.html.] Product Strategies Unilever is having four options to position Product in NE market. Brand Extension of Omo (A cheaper version of Omo): It is a very risky option and will lead to high cannibalization. (Solomon et al, 2009 p.290) Re-positioning Minerva: It can be an option but Minerva is a bit costly product ($2.40 WP) for Low income consumers and reducing price and compromising in Quality can damage a brand image and lead to cannibalization. Re-positioning/Brand Extension Campeiro: Camperio is available in the market since 1984 and having just 6% market share. It is currently positioned as a Cheap Low Quality product in NE consumers, so Re-positioning of Campeiro is very time taking and a costly affair. (Solomon et al, 2009 p.228) Introduce a brand from the international portfolio: Without taking risk with existing brands, this can be a potential option for Unilever to introduce a new brand from its international portfolio like Nevex, Ala or Marsella (Latin America). I think It can be Ala (Means WING in Portuguese), only brand that is having a meaningful name. Ala can be positions between Minerva and Campeiro in terms of quality and below Campeiro in terms of price by effective marketing planning. Since NE consumers like Omo very much and currently use detergent powder just for good smell, so the fragrance of the Ala should be same as Omo and if possible Unilever should launch Ala in 2 or 3 different fragrances. Alas Packaging should be Proper, Attractive and cost effective packaging. Ala should be available in the market in a pack of 1kg, 500gm in both cardboard pack and plastic pack (Save detergent from moisture) and 250 gm 100gm in plastic sachets. Plastic sachet cost just 30% of Cardboard pack, so Unilever can offer consumers an additional quantity in plastic bags in same price. Ala will be priced between $1.5 and $1.6 per Kg, so we can easily offer an extra 20% to 25% quantity in plastic bags as Cardboard box cost $0.35 and Plastic Pack $0.10. (Solomon et al, 2009 p. 307 and Kotler, 2009 p.195) Table 6: Product Packing Matrix *Extra Quantity on plastic bag because of low cost of packaging Consumers always get attracted by special offers and additional quantity of product and since Unilever is the pioneer in the market, it will help Unilever to achieve good market share. While launching Ala, we can give some introductory offers like buy 1kg and get 500gm and 2kg and get 1kg free. Pricing Strategies Currently Unilever has priced (Whole Sale) product Omo with 22.45%, Minerva with 11.63% and Campeiro with 9.68% profit. Ala will also be priced with 9.15% (Approx) profit to wholesalers at $1.55 (Approx) that will be the lowest priced detergent powder available in the market as per the data available in case study. Best quality product in the lowest cost will be the USP for this Ala. (Solomon et al, 2009 p.370-374) Table 7: Cost Profit Calculation Matrix [Source: Exhibit 10 : Unilever in Brazil Case Study] Plastic Sachet packing reduces total cost of production by 25%, but NE consumers are having special attachment with boxes and Plastic Sachet Packed Product is assumed as low quality product. So we will introduce Ala in both box and plastic sachet packing where on the latter we give 25% extra quantity. Table 8: Profit difference in Box Sachet Packing *will offer 25% extra quantity Promotion Strategies Currently Unilevers promotion strategy is 70% above-the-line and 30% below-the-line. But for Ala it need to be changed to 40% above-the-line and 60% below-the- line, as low income consumers more attracted and relies on word of mouth publicity, small shop displays, holdings, sample distribution, free gifts etc. But moving towards below-the-line promotion not only Unilever can achieve better results in a low income consumer market but can also save money on promotions. (Solomon et al, 2009 p.37, 398-406) Ala should be promoted with the key messages like best quality, good smell, Care, Pride and self esteem. Ala will Packed in colorful box and sachet with the indication of quality and good fragrance by showing flowers etc. Point of purchase also need to be modified accordingly because several time consumer make decision changes by viewing point of purchase promotion and shopkeepers advice. (Solomon et al, 2009 p.167) Shopkeepers also need to be taken in confidence by providing credit and incentive. Target Audience (Women between 20 -50 years) Budget and Promotion Objective ($0.20/kg and Emotional appeal (Like Care, Pride and Good Smell) Designing Advertisement Media Type (TV, Outdoor Advertising, Public Relations and Sales Promotion by sample distribution, shop displays etc). Evaluation of Promotion Diagram 6: Promotional Strategy development [Adapted and modified from Solomon et al ,(2009), Marketing Real People Real Decesion ,Page 109.] Distribution Strategies The most important thing to make any product successful and to increase revenue, sales and market share is a good distribution system. You cant sell, what isnt there7 (Solomon et al, 2009, Page 494) With the Ala, Unilever is targeting to gain business in a low income consumer market that will be possible only when the product will be available on traditional retail shops (Main point of purchase for Low income consumers). For targeting the high income consumers in the big supermarket Unilevers current distribution system is well sufficient but to target low income consumers Unilever should take help from specialized distributors as well. (Solomon et al, 2009 p.498-500) Unilever need to make some changes in the distribution system by creating the proper mix of Generalist Specialized distributors, so the product will be available at as many as locations possible. New distribution mix can be applied in SE as well because there are also 21% of low income consumers. New distribution system will not only captures more ground area but also reduce the cost of distribution.
Friday, October 25, 2019
Where the Girls Are: Growing Up Female with the Mass Media by Susan Dou
Where the Girls Are: Growing Up Female with the Mass Media by Susan Douglas In "Where the girls are: Growing Up Female With the Mass Media," Susan Douglas analyses the effects of mass media on women of the nineteen fifties, and more importantly on the teenage girls of the baby boom era. Douglas explains why women have been torn in conflicting directions and are still struggling today to identify themselves and their roles. Douglas recounts and dissects the ambiguous messages imprinted on the feminine psyche via the media. Douglas maintains that feminism is a direct result of the realization that mass media is a deliberate and calculated aggression against women. While the media seemingly begins to acknowledge the power of women, it purposely sets out to redefine women and the qualities by which they should define themselves. The contradictory messages received by women leave women not only in a love/hate relationship with the media, but also in a love/hate relationship with themselves. As early as the nineteen fifties women were identified and targeted as a market. In a consumer culture the most important things are consumers. Advertisers convinced homemakers that in order to be a ââ¬Å"goodâ⬠wife and mother you must have their products and appliances to keep a clean and perfect home. The irony of this ploy is that consumers must have money to buy, and so trying to improve their quality as homemakers, off into the workforce women went. This paradox left women ...
Thursday, October 24, 2019
Human Resources Management in the Asia Pacific Essay
Nowadays China becomes one of the hottest market places all over the world. From the viewpoint of the investors, China seems to be the most potential market with the huge market and attractive economic situation. The apparent result is the increase in number of foreign investments put into China. Gentran Machinery (GM) is one of the foreign investors of China. It has a joint venture (JV) in Hangzhou. Although GM has been quite successful in its operations showing an average annual growth of 12 percent in sales volume, net profits and its stock value during the past 20 years, it is noted that the joint venture in China is struggling along and is already way behind schedule. In order to address the possible problems in the JV and find solutions, some issues are to be discussed. Global assignment of managers has been a traditional method of operating international companies. The importance of transferring knowledge, upskilling remote or local managers and instilling best practice throughout a multinational organization has long been recognized as a source of competitive advantage for those firms able to expand successfully. The failure of rate of global assignments, and indeed international expansion, has throughout history been nothing less than fantastic. Although it is obvious that the expatriate managers donââ¬â¢t know the local labour markets and local education system, have the communication, culture, and language problems, they are familiar with the corporate culture, have advanced management skills, and also have stronger informal linkages with decision makers in the parent company. Many companies send their home country employees to foreign subsidiaries (Hutchings 2002). In the GM case, it is indicated that there isnââ¬â¢t a modern management system in the JV and the JV managers are at only the Chinese traditional stage of management development and they havenââ¬â¢t effective and efficiency management knowledge and skills. As a result, it is impossible to reduce the number of expatriate managers. Contrarily, the number of expatriate managers should be increased, because they can input the modern concepts and skills of management, help to build an effective and efficiency management system, and train the Chinese managers so that they are competent for their positions in JV. However, the selection of expatriate managers is important. According toà Hutchings (2002, p. 32), ââ¬ËMaximising the performance of expatriate managers can be defined as sending an employee to a host country operation capable of achieving the best results for the expatriate, the organisation and the host country in terms of adaptability and political, business, culture and social sensitivity. To achieving such adaptability and sensitivity, the company should pay significant attention to careful selection of expatriate for the host culture in which they will be employed, and provide on-going support (Hutchings 2002). There are a number of factors which an organisation needs to be taken into consideration to predict expatriate success. These factors include technical competence on the job; personality traits; environment variables; and family situations (Hutchings 2002). The expatriates should exhibit tolerance toward differences in race, creed, culture, customs and values. They should also have high motivations. Another criterion is that of behaviour, being defined as non-judgemental, showing tolerance for ambiguity and displays of respect (Hutchings 2002). Moreover, the expatriateââ¬â¢s spouse and family should be analysed. These include: the spouseââ¬â¢s inability to adjust; the employeeââ¬â¢s inability to adjust; the employeeââ¬â¢s personal or emotional immaturity; and other family problems (Hutchings 2002). Obviously, Richard Hamel (the controller of JV), who is not the type of manager necessary to facilitate the success and changes needed in the JV because he is not aggressive, innovative, and creative, should certainly be replaced. However, because of the lacks of Chinese managers and the situations discussed above, Hamel should be replaced by another suitable expatriate manager. After successfully selecting the suitable expatriate manager, on-going support is important for them. In the GM case, it is noted that although the physical accommodations are acceptable, the expatriate managers suffer from extreme emotional pressure particularly in the form of loneliness. These managers have only one emotional outlet ââ¬â work. They cannot speak Chinese and have no alternative forms of entertainment that involve interactions with people. Their lifestyle can best be described as one of ââ¬Ëprison inmateââ¬â¢. This situation indicates that the expatriate managers have not been supported well. The parent company should solve this problem. Firstly, effective training programmes can help the expatriates adjust to living andà working conditions in the new host country. Appropriate intercultural training and support can help expatriates cope with a workforce and management colleagues with drastically different cultural inclinations and reduce the stress of being alone in a foreign land. Such training should provide a clear picture of the challenges they are about to face, both in their professional and private life. The training should include general country information on the Chinese culture and tradition in written, verbal or audio / visual form as a helpful orientation for the beginning of living and working in the host country; cross-cultural seminars where the trainees can apply and deepen their knowledge of the Chinese culture and mentality; Chinese language courses to introduce expatriates and their accompanying partners some basic language skills; field trip to obtain the first impression of the country, working and living conditions; meetings with experienced expatriates who can give practical tips or useful suggestions directly related to the job or private life in China. Secondly, medical and psychological assistance and counselling should be provided. Thirdly, the on-going support to spouse and the family is important. The importance of providing information housing, health, and schooling has been acknowledged (Hutchings 2002). Fourthly, a local contact person with western culture exposure can help expatriates with their first orientation in the new living and working environment. Finally, the good relationship between the expatriate and local employees can also help to improve the living condition. After successfully selecting and supporting the expatriate managers, another important issue for JV is change the traditional management system in JV and how to train the Chinese managers. Traditionally, for a long time the promotion system in Chinese state-owned enterprises has been based on seniority of workers and staff rather than on performance. For example, a cadre can be promoted to senior ranks but cannot be demoted regardless of his capability or performance. This has resulted in a phenomenon where there are too many high-ranking officials with too few rank-and-file staff, and there is over-staffing with too few staff actually performing work (Chen 1989). Thus, a new incentive system based on performance should be established for the Chinese managers and works. The ââ¬Ëperformance-related payââ¬â¢ is the key component of the total rewards program ââ¬â and offersà employees the opportunity to share in the success of the company which is a direct result of the collective performance of each of its employees. When excellent performance is acknowledged and rewarded, people are more motivated and work smarter (Bartol, et al, 1998). Moreover, employees want to work in an environment that is productive, respectful, provides a feeling of inclusiveness, and offers friendly setting (Ramlall, 2004). The good relationships between managers and employees, as well as between employees provide the belongingness and love in the company. In addition, employees prefer to function in environments that provide a challenge, offer new learning opportunities, significantly contributes to the organizationââ¬â¢s success, offers opportunities for advancement and personal development based on success and demonstrated interest in a particular area (Ramlall, 2004). The employeeââ¬â¢s self-actualization need is fulfilled by open-door policies and ââ¬Å"letââ¬â¢s tryâ⬠approaches. Competition should be encouraged. These approaches will largely motivate the employees. The managers of JV should also share as much as information with employees, encourage autonomy and participation. Furthermore, to keep equity, the reward system should be managed by expatriate managers until the Chinese manager change their traditional attitude. Finally, the award system can be managed by all level of managers; each level of managers should responsible for their subordinations. The performance based reward system should base on the responsibility system. It is obvious that the distribution of responsibility including management responsibility and employeesââ¬â¢ responsibility in JV is not adequate. Company should specify all position, prescribes job descriptions, procedures, routines, and rules. However, the description of procedures and routines is not detail. There are only some suggestions and references. Companyââ¬â¢s ââ¬Ëletââ¬â¢s tryââ¬â¢ and ââ¬Ëaccepts failureââ¬â¢ approaches encourage employees to try any ways to accomplish their job. Employees are largely motivated to look for the most suitable way to finish their works. The suggestions and references of the work procedures and routines protect the employees from excessive autonomy so that they would not fell lonely and without support (Bolman, &a Deal, 2003). The authorization system should be established. In this system, each level of managers has their corresponding authority and responsibility whichà is clearly identified. The training of Chinese managers is also important. There are external training and internal training. In case of internal training, it should be decided what to teach and how to maximise the learning effect of the participants. The teaching programmes and materials should contain knowledge and skills necessary for effective management performance. Appropriate teaching methods (for example, practical or theoretical learning or the combination of the two methods) in order to achieve the training goals should be chosen. Moreover, the trainees should be able to make use of the technical know-how or management skills after the training: this can be reached through a job empowerment, a transfer to a corresponding workplace or a promotion. In these training, the Chinese managers should also learn the modern concepts of the management. The external training can include the MBA program, exchanging manager to international branch of company, etc. The main purpose of the training is to change the tradition management attitude and to learn modern management skills. In the GM case, the communication of directives, ideas, concepts, and action items, from the American management to the Chinese management and vice versa is a major problem within the JV. Misunderstanding and ineffectiveness of communication are caused usually by faults of both sides: one side expressing its intention vaguely and the other side not listening very attentively. As the case studies show, expatriates may feel unsatisfied with refusal of responsibilities by local employees, while Chinese managers complain about the lack of trust of their foreign bosses. The problem is accentuated by language difficulties. The language issue is the most significant individual obstacle facing the partners in the JV. Although there are currently three translators on the payroll, only one is really a capable translator. The language barrier can be overcome by replacing the unsuitable translators, increasing the number of translators. Also, the Chinese employees can be required to learn English. On the other hand, in the expatriate managers training which is introduced above, the Chinese language course is included to teach the basic language skills to the expatriates. In addition, the culture barrier is another important problem in JV. According to Hofstede (cited in Pan, & Zhang 2004, p. 83), culture is a kind of ââ¬Ëcollective programming of the mind, which distinguishes the members of one category of people from anotherââ¬â¢. It is obvious that the Chinese culture is different from the West Culture. Because it has been widely accepted that cultural difference greatly affects human thinking and behaviour, the significant differences between USA and China seem to affect some aspects of their management practice (Pan, & Zhang 2004). To overcome this barrier, one of possible solutions is to encourage a cultural adaptation or learning process which may increase the congruence between culturally different partners and ultimately improve the effectiveness of international business relationship (Lin 2004). According to Gudykunst and Kim (cited in Lin 2004, p. 36), adaptation is a ââ¬Ëprocess wherein parts of a system move in a direction that i ncreases the congruence or fitââ¬â¢. In the cultural different environment, cultural adaptation occurs when individuals acquire an increasing level of fitness or compatibility in the new cultural environment. Cultural adaptation is expressed in different forms and at different levels. There are three levels of cultural adaptation including understanding, adjusting, and learning (Lin 2004). Cultural adaptation could involve many essentials including language (verbal and non-verbal), economics, religion, politics, social institutions, values, attitudes, manners, customs, material items, aesthetics and education. In juxtaposition, smooth transition and successful integration of managers going abroad on business would require the individualââ¬â¢s cultural orientations to be determined. From an international business standpoint it is crucial for the long-term success of a company to establish and manage good relationships across cultures (Lin 2004). Another ways to overcome the communication barrier is relationship. The expatriate managers need to build good relationship with their Chine colleagues. Relationship, the term ââ¬ËGuan xiââ¬â¢ is used in China, are very important in getting on in Chinese society. In China, four culture factors are grouped into relationship (or Guanxi): group orientation (the need to live in his/her community, all his/her identity was related to his/herà group); Renqing (if you do me a favour, it means I owe you something. I will pay back someday, as well as you are also expecting me to payback the favour one day.); Ganqing (friendship which implies an expectations and obligation of getting /granting favourable responses from/to ones friends); and Face (the concept of saving face or losing face indicating a personââ¬â¢s social status. Having face means that one has good connection within the community, which makes everything done smoothly. But losing face means one get trouble or feels embarrassed in certain circumstance. (Luk et al. 1996) In China, Guanxi is crucial for employees to gain a sense of being together and a sense of communicating with on anther. Researchers also indicate that the job satisfaction and job involvement may well be related to the quality of oneââ¬â¢s Guanxi network (Hong, & Engestrom 2004). As a result, in Chinese JV, Guanxi is unavoidable. Actually, the Guanxi has positive and negative potential consequences (Hong, & Engestrom 2004). On the one hand, even if technocratic qualifications have become more necessary, but at the same time Guanxi is another major factor in determining who should be promoted. Workers and staff who have special ââ¬ËGuan xiââ¬â¢ with the superiors in power, either through family connections or forming special clues, normally get promoted over others lacking the relationship (Nyaw 1995). On the other hand, Guanxi can enhance the trust between the managers and employees or within the group of employees. Chinese workers regard good Guanxi with them as one of the most important qualifications of being a good leader (Hong, & Engestrom 2004). This is not conflict with the modern management approaches. In the American-lead JV, the expatriate managers can enhance the trust with Chinese employees through developing the Guanxi with them so that the resistance of changes can be reduced and the performance can be more effective and efficiency. However, the weakness of Guanxi should be avoided by establish a completed set of rules and regulars. According to Bolman and Deal (2003), there are several methods to coordinate individuals and units through a variety of horizontal and vertical linkages. The vertical linkages including authority, rules and policies, and planning and control system enable higher levels coordinate and control the work of subordinates. Firstly, the authority is the most basic and ubiquitous way of integration. Secondly, it is noted that the rules, policies, standards, andà standard procedure limit discretion and help ensure predictability and uniformity (Bolman, & Deal. 2003). The company should allow all employees to discuss the rules and standards and encourages them to make suggestions. Through discussion, the rules and standards become clearer for employees and prevent the lack of creativity. The clear and suitable rules and standards are the base for successful planning and control. There are two major approaches to control and planning including performance control and action planning (Mintzber g, as cited in Bolman, & Deal, 2003). The ââ¬Ëperformance-related payââ¬â¢ bases on the performance control. Because the rules and standards are clear and suitable, the target are measurable, the performance control measures and motivates. The forms of vertical coordination are typically more formalized. But it is not always effective. Lateral techniques such as formal and informal meetings, task forces, coordinating roles, and network are more flexible and may be used to fill the void (Bolman, & Deal, 2003). Formal meetings are undertaken regularly. Moreover, the task forces or project teams can be always assembled in JV to coordinate development of new products or services. The organizational intranet should also be developed in the JV. The network enhances the decentralization and democracy in the company because the bias of organizational intranet toward decentralization, teaming, and cross-functional, and cross geographical work makes it well attuned to complexity and change (Steward, as cited in Bolman, & Deal, 2003). But the networks are difficult to control. It becomes a challenge for managers. As a conclusion, there are many aspects that affect the way international business is conducted. Differences in social, culture, economic, legal and political conditions can greatly affect the way globalised businesses are managed. Doing business abroad presents enormous challenges simply because countries and societies are so incredibly different. There is a need to appreciate not only that these differences exist, but also to appreciate how these differences impact doing business abroad. Doing business abroad requires flexibility to conform to the value systems and norms of that country. Adaptation can embrace all aspects of an international businessââ¬â¢s operations in a foreign country, from the way deals are negotiated, to the appropriate incentive pay systems, to the organization structure, productà names, and relations between management and labour. What works in one country most likely will not work in another. It is also noted that clearly maximising the cultural adaptability skills of expatriates and the avoidance of expatriate failure in host country subsidiaries is of major concern to organisations. Maximising the cross-culture performance of expatriate managers in JV must be an integral element of the strategic human resource management planning of organisations in the 21st century as the pace of globalisation necessitates that an increasing number of organisations must think globally and ensure that their expatriates are prepared and supported to do the same. (Hutchings 2002)
Wednesday, October 23, 2019
My Life Plan Essay
My dream is to serve members of the community in the medical field as a Radiology Technician with care, compassion, and knowledge. I have had many influences from medicine, from past jobs as well as past experiences. I have worked in pharmacy as well as general medicine, internal medicine and orthopedics. My most significant influence to strive for a career in the medical field was by personal experience. My daughter was diagnosed with cancer at age 1. There were many, many doctors, nurses, radiologists, radiology technicians and medical personnel that assisted us in our long journey towards good health. Each of these had a huge impact on my life, now it is my turn to give back. In order to achieve my goal, my first challenge was to enroll in school. I have been out of college for over twenty years now; this was a huge decision, not just for me but for my whole family. My husband is also in medicine, he is a pharmacy technician and systems analyst at the hospital in the pharmacy department. Our girls, ages 17 and 9 are very active in school activities as well as sports and music; this meant they would have to take on more responsibilities at home. I am now in my first semester back in school. Just taking the first steps have been personally motivating as well as fulfilling. I know that any goals I set for myself are now within reach, regardless of whether they are long term or short term goals. I have set the bar high for myself, wanting to get Aââ¬â¢s in all of my classes. Once my pre-requisites are complete, my next goal is to get into the Radiology Technician Program. Once I am there, I want to graduate with my Associates Degree as a Radiology Technician. I have my heart set on a career as a Radiology Technician. I want to help people as I have been helped by others. I want to be able to excel at my career, but also to provide the art of healing with compassion and care. I want to be able to help each patient with understanding, empathy, respect, kindness and thoughtfulness. I know that I can do this. I have confidence in myself that if I want this bad enough, I can complete all of the tasks in front of me to get there. I believe in myself and my family believes in me. I have support from friends that have gone back to college later in life that are now successful in their own careers. They are now a model to follow. Having my short term and long terms goals mapped out makes me aware of how important it is to achieve each goal. No matter how small or insignificant each goal is, each is a stepping stone to the next. If I miss a step, I can go back, but it will take me longer to get to my next goal. This ââ¬Å"road mapâ⬠will help me in all aspects of my life, school, family and career. I can keep adding goals to my list, keeping certain to achieve and master what lies ahead.
Tuesday, October 22, 2019
Machiavelli essays
Machiavelli essays The Prince, written by Niccol Machiavelli in 1513, was a book about political power and how to keep it. Machiavellis general message was that in order to hold power, one must not only lie to his enemies, but lie to his own people as well if he must. A ruler must always seem to be honest, benign, and trustworthy even if, in reality, they are not. In addition, if a ruler could choose to be loved rather than feared, or feared rather than loved, then it is much safer to be feared rather than loved, since most people will be too afraid to anger a prince that would not hesitate to punish them. Machiavelli also emphasizes that many people will see what you seem to be and only a few will discover what you really are. It is extremely important to always have those positive characteristics around these people. Machiavelli spoke of flatterers as well, saying that the best way to deal with flatterers is to have a council of wise men who the flatterers would speak to. The flatterers would be urged to speak the truth on whatever things are asked. The prince should take advise, but only when he wants it. A 20th century ruler that I think would agree with Machiavelli is Adolf Hitler. Adolf Hitler seemed to be a very power-hungry ruler as he invaded neighboring European countries. It would seem likely that such a ruler would do whatever possible to gain absolute power of not only his own country, but his enemies as well, no matter what the costs. Another ruler that I think would have agreed with Machiavelli is Joseph Stalin. Once he took over the Soviet government, the people were constantly lied to. As conditions started to become worse and poverty began enveloping the country, Stalin would always say in his speeches that conditions were better than they were before the Bolshevik Revolution. Machiavelli suggested that the people be lied to if it is not to the rulers benefit which I think Stalin would definitely agre...
Monday, October 21, 2019
Introducing How to Write a KILLER Linkedin Profile - 4th Edition!
Introducing How to Write a KILLER Linkedin Profile - 4th Edition! As you may have noticed, LinkedIn has undergone a quite a few changes in the past few months. The look of the profile has changed; endorsements have become all the rage, and Skills Expertise has overtaken the Specialties section as a place to search for people with certain capabilities. The status update section has moved, the Events application is on its way out, and the guidelines for a ââ¬Å"100% completeâ⬠profile have shifted. Iââ¬â¢m happy to announce that after many revisions and a lot of help from my Virtual Assistant Jeanne Goodman and publisher Brian Schwartz, the 4th edition of How to Write a KILLER LinkedIn Profile is completely updated to reflect these recent changes. It also contains special coupon codes for e-book readers, new tips on how to create a modern, punchy look with graphics, and new bonus tips for both companies and job seekers. In the spirit of this holiday season, I am VERY thankful to Jeanne and Brian for making this edition possible, and full of gratitude to have this puppy out the door: Get the pdf 4th Edition of How to Write a KILLER LinkedIn Profile! Remember, if you purchase the PDF version of the e-book, you also receive FREE lifetime updates. Get the Kindle version 4th Edition of How to Write a KILLER LinkedIn Profile! The 4thedition of your e-book is great! So much better than editions 12!â⬠Patrick Gallagher, Author of LinkedIn Secrets Revealed If you already own a copy of my e-book and would like to express *your* thanks for how it has helped you create a KILLER profile, please take a moment to provide your feedback! Posting a review on Amazon is a powerful way to tell the world what you thought of the information received, what value it had for you and how it changed your profile. And while youre there, you can check out what others are saying! Post a review here! As a special incentive, if you email us with a link to your Amazon review, your name will be entered in a monthly drawing to win Mary Elizabeth Bradfords Job Search Success System (winner of a 2011 CDI Career Innovator Award and a $97 value!). Check it out here. I also have a Facebook page dedicated solely to How to Write a KILLER LinkedIn Profile and LinkedIn appreciators around the world. If you found a way to improve your online presence with any of the tips from my e-book, please drop by and my KILLER LinkedIn Facebook page. Thank you! Category:Archived ArticlesBy Brenda BernsteinNovember 19, 2012
Sunday, October 20, 2019
3 Reasons Trucking is on the Rise
3 Reasons Trucking is on the Rise Have you ever seen those commercials on TV for tractor-trailer training schools? They always make professional truck driving look fun and fulfilling: keep on trucking through this great land of ours, and make a living doing it. Sounds pretty appealing, right? Well, it turns out that it just may be the career (or career change) for you and here are 3 reasons why. 1. Itââ¬â¢s BoomingAccording to Federal Travel Regulation (FTR) research, the professional truck driving industry is on a serious upswing right now. The FTR tracks growth and aggregates positive (or negative) characteristics like pay, demand, and growth in an industry. For 2014 (and 2015 so far), trucking has grown greatly in all of those areas. Especially in demand, which means that new drivers would be entering the field at a great time.2. Itââ¬â¢s ProfitableAs demand for professional drivers goes up, so does the rate of pay and number of jobs available for drivers. Most carriers are able to get rising rates for their drivers, building on a strong 2014. The FTRââ¬â¢s high rating of the trucking field shows that pay, benefits, and stability are likely to continue on that positive path for the time being.3. Itââ¬â¢s Getting Better All the TimeWith customer-driven commerce growing all the time, the trucking industry needs to keep up with the demand for drivers and offer a good amount of benefits and stability to get those drivers on the road. That the trucking industry has experienced so much growth in the past two years makes it a good entry point for new drivers. The FTR expects this trend to continue, on pace with 2014ââ¬â¢s numbers.So what do you think? Are you ready to hop in the cab and hit the road?Read More at www.roadmaster.com
Saturday, October 19, 2019
Reaction essay of The Art of Lying By Gerald Torto
Reaction of The Art of Lying By Gerald Torto - Essay Example Effective lying may be hampered by an emotional relationship between the liar and those he/she knows because they can easily detect behavioral changes when one is lying. Psychopath lairs such as politicians show no guilt when lying and are thus able to convince others that they are telling the truth. There is also a co-relation between the symmetry of the face and the art of lying with psychologists citing that attractive people are easily trusted as opposed to unattractive people. Children who lie and get away with it develop a knack for lying thus becoming pathological liars. People with low self esteem also become habitual liars as they exaggerate facts to appear better than they actually are. It is often almost impossible to detect liars without the help of polygraph or brain printing machines, but common indicators include long pauses while talking, omission of details such as names and places, intensive facial expressions when
Friday, October 18, 2019
ANALYZNG THE RECRUITMENT PROCESS Coursework Example | Topics and Well Written Essays - 500 words
ANALYZNG THE RECRUITMENT PROCESS - Coursework Example Vodafone is a telecom company and is headquartered at London, UK. The reason behind choosing Vodafone is that the recruitment process is very simple as compared with other multinational companies. The recruitment process of Vodafone is presented below. The company recruits on the basis of experience as well as academic background of the candidate. However in some of the vacant positions the company only hires on the basis of prior experience. The company is hugely focused towards the recruitment of diverse work force. It is a rule in the company that the recruitment of the candidates should ensure diversity. This can be cited as one of the business strategies of the company. The company strategically recruits diverse workforce keeping in mind about the diversity in their customer base. The company also pays competitive pay packages to its employees in order to make sure that the attrition rate remains minimal. However the company also uses several other techniques in order to retain their present employee strength. In this context the company carries out various employee retention programs. Also the company pays on the basis of performance. 2. Pension Scheme: - The company also thinks about the employees after their retirement from the company. In this context the company offers pension to them. Also the company has been awarded with the ââ¬ËPensions Quality Mark Plusââ¬â¢ in the United Kingdom. 3. Holidays: - The company offers 28 holidays in a year apart from the regular and national holidays. The company also has the policy that states that if an employee gets older in the system he/she is entitled to get more
Business Analysis Research Paper Example | Topics and Well Written Essays - 500 words - 5
Business Analysis - Research Paper Example The disposable income is used to purchase the services and products offered by the business. The Living Room Bar targets youthful professionals and students. This is because it provides entertainment which is favored by the youths in the American society; for instance, sports entertainment, hip hop music and pop music, and indoor games like pool tables, cards and darts. The Upstairs Drink Boutique is tailored to suit the needs of the mature professionals who form part of the middle income group in the American society. The entertainment provided at the bar appeals to individuals who are mature in their personal and public life. The most popular attraction is the live jazz music entertainment that is provided all days of the week, starting evening. The Trace restaurant is appropriate for the middle income groups of the society. This is because of the fast foods products and evening dinners. Fast foods are mostly consumed during working hours by the professionals. The evening dinners are favored by mostly dating individuals and young married couples. The customers are also allowed to request for entertainment of their choice during their dinner time. The marketing strategies of the business clearly illustrate the target market. The four strategies used by the business are favorable to the middle income individuals in the society. These strategies are; niche marketing, mass marketing, concentrated marketing, and differentiated marketing (Kurtz, 2010). The two bars apply differentiated marketing. This is because they provide different entertainment to satisfy the needs two classes of customers; the students or young professionals, and the mature customers. Direct marketing is done by advertisements in social media pages of professionals. The business also does mass marketing through creating publicity in printed media outlets like magazines and newspapers. Concentrated marketing is done through posting entertainment information in the social media
A Comparison Of Clinique Marketing Strategy Case Study
A Comparison Of Clinique Marketing Strategy - Case Study Example These three items were said to be the only products necessary for healthy skin. The parent company, Este Lauder, had already established itself as an icon in beauty and fragrance (Xenias), and over the years Clinique developed a positive brand image as well. In addition to the simplicity of their image, the company's Web site was equally simple-illustrations of products with very little or no text. But with businesses expansion taking place in order to reach global markets, the simplicity of Clinique's marketing strategy might not have the same effect in countries other than UK and USA. Purpose of Study China is the market of the future, and successful companies expanding their bases throughout the world see China as a necessary market. What are the differences in the way Clinique reaches domestic customers and customers in other cultures Will the 1-2-3 plan work in China What barriers must be faced Two recent articles included Clinique in a list of cosmetic companies accused of using harmful chemicals in their products in China (China Monitoring 2006; Overseas Companies 2006). At present the international Clinique Web site doesn't seem to offer a simple doorway into other countries, at least for researchers. Clinique does, as a way to reach Chinese customers, discuss a product called Clinique Derma White which focuses on Asian markets. Derma White is an update on Clinique's Active White line, developed by Korean dermatologists to address pigmentation in the skin. Derma White uses blackout yeast to break up pigment into smaller fragments and exfoliants help remove them from the skin (Clinique 2006). The Asian culture considers white skin to be beautiful, while Western countries and cultures seem to prefer tanning products. The emphasis on darker skin... The importance is in drawing customers to a specific site. With Clinique, marketing strengths include introducing new, innovative products directed at specific customers and the use of language in the product names which immediately describe their attributes, i.e. Superdefense Triple Action Moisturiser and Lifting Face Serum as well as Dramatically Different Moisturising Lotion, a standard of the company since its inception. A weakness, however, could be the company's apparent belief in a customer knowing who they are, what they do and how they do it. They are taking for granted that their products will sell themselves. Clinique has not even begun to tap the opportunities to sell their products through the Internet. Much of the research information on skin care is filtered through the Està ©e Lauder advertising and press releases. It is also important for them to be aware of negative commentary online which might affect their market share if they don't meet the challenge of offsetti ng negativity. At present one of the major efforts by Clinique is to increase the male customer base, and much of their advertising focus on that market. In the meantime, the female market might be discouraged when trying to get information on the products they want, especially in China, where women are not considered worth cultivating but are beginning to see themselves in a more attractive light. Another important market for Clinique is the aging population looking for anti-ageing products such as "Stop Signs" said to "make time stand still".
Thursday, October 17, 2019
Ethics and Safety Assignment Example | Topics and Well Written Essays - 750 words
Ethics and Safety - Assignment Example If Garcia takes the Miltechââ¬â¢s case to the union, the management will be liable for negligence and greed. The management would be accused of defiance to guide their subordinate employees when undertaking their duties, providing them with appropriate facilities, and improving the working conditions of their employees. The union will also challenge the management for its poor decision to accept the project beyond its capability and the risking for losing the contract would be high. Furthermore, the management would be challenged for violation of the Miltechââ¬â¢s corporate ethics because of neglecting their leadership qualities and making decision without consulting all the parties involved. On the other hand, If Garcia takes the matter to OSHA; the management team would be in trouble because it will have a case to answer. A legal action would be taken against the management because of risking the lives of their employees to achieve their personal objectives. Secondly, the team would make the company to be charged for its failure to adhere to the health and safety acts set by OSHA. Additionally, the case will damage the reputation of Miltech Company and the chances of retaining the awarded contract and winning similar contracts in the future would be slim. To make the matters worse all the members in support of such kind of a risk against health and safety of their employees would be sacked because they lack the characteristics of good leaders and are guided by greed. Before taking any action, Garcia should talk to the boss about the ongoing the circulating rumors for the newly awarded contract. Then he should act according to the decision made by the boss. If the boss decides to resolve the matter internally, it could be fine because the idea would prevent Miltech from losing its reputation. The management team and Garcia should meet and discuss the way forward in handling the contract and employees too should be represented. At their meeting, the
School Safety Paper [w4r] Essay Example | Topics and Well Written Essays - 1000 words
School Safety Paper [w4r] - Essay Example But, unfortunately a student injured recently as one of the window panes slipped over him. The boy had severe internal injuries due to which he lost speech and left hand. All those students who were present around him during the incident were in great shock. The boy was and studying in the eighth standard. He was the only child to his parents. The parents were in utter grief when a group of students went to see him in the hospital. Everyone in the school had many sleepless nights and is panic stricken to go near the new department. It took almost half a year the boy to recover his health but question arises who is to be blamed for the situation? Who will get back his lost speech and hand? Is it the school authority? Or the negligent builder? The principal had put a committee headed by three staff members to look into the matter more seriously. They have presented a final report saying that the builder had used a cheap quality window panes and cement in the construction. The school secretary lodged a case in the court of law against the builder and supervisor for their negligence and teaching. They were convicted with a penalty of $5000 each and reconstruction of the building all over again. But, still who will get back the happy days of innocent boy. The principal decided to help the boy financially towards his further studies in the school of disabled. But, the student was unhappy with this decision. The student wanted to continue in our school as he was confidant in continuing further as usual. Fortunately h e is left with good eye sight, understanding capability and more over his right hand to write and legs to move around. He was one of the brilliant students of our school and everyone was sure that he excels in his academics same as he did before. But, he was still detained due to which he was psychologically upset. He started cursing his fate and helplessness. He
Wednesday, October 16, 2019
Ethics and Safety Assignment Example | Topics and Well Written Essays - 750 words
Ethics and Safety - Assignment Example If Garcia takes the Miltechââ¬â¢s case to the union, the management will be liable for negligence and greed. The management would be accused of defiance to guide their subordinate employees when undertaking their duties, providing them with appropriate facilities, and improving the working conditions of their employees. The union will also challenge the management for its poor decision to accept the project beyond its capability and the risking for losing the contract would be high. Furthermore, the management would be challenged for violation of the Miltechââ¬â¢s corporate ethics because of neglecting their leadership qualities and making decision without consulting all the parties involved. On the other hand, If Garcia takes the matter to OSHA; the management team would be in trouble because it will have a case to answer. A legal action would be taken against the management because of risking the lives of their employees to achieve their personal objectives. Secondly, the team would make the company to be charged for its failure to adhere to the health and safety acts set by OSHA. Additionally, the case will damage the reputation of Miltech Company and the chances of retaining the awarded contract and winning similar contracts in the future would be slim. To make the matters worse all the members in support of such kind of a risk against health and safety of their employees would be sacked because they lack the characteristics of good leaders and are guided by greed. Before taking any action, Garcia should talk to the boss about the ongoing the circulating rumors for the newly awarded contract. Then he should act according to the decision made by the boss. If the boss decides to resolve the matter internally, it could be fine because the idea would prevent Miltech from losing its reputation. The management team and Garcia should meet and discuss the way forward in handling the contract and employees too should be represented. At their meeting, the
Tuesday, October 15, 2019
Industrial Relations Essay Example | Topics and Well Written Essays - 2500 words
Industrial Relations - Essay Example On the example of relevant studies and researches, a special attention is paid to the influence of globalization in LDCsââ¬â¢ manufacturing sector. 1. Introduction The modern phenomenon of globalization is a wide-spread issue for the discussion in numerous researches and studies. It cannot be denied that various dynamic phenomena are correlated with this background. The limits of different nations are blurred and it is appropriate to focus on specific criteria for development of different employment patterns, which differ from the ones, which existed previously. Actually, there are many different aspects of globalization and we will further focus on economic globalization. With respect to it, we found it necessary to define the phenomenon of economic globalization: ââ¬Å"Economic globalization refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital and wide and ra pid spread of technologies. It reflects the continuing expansion and mutual integration of market frontiers, and is an irreversible trend for the economic development in the whole world at the turn of the millennium1 â⬠It can be surely claimed that the development of technologies and flow of international capital across different countries enable foreign markets to create a great number of new jobs. Employment goes at a full pace, but very often this process evokes numerous different reactions of the society. On the one hand, globalization has been gradually increasing in the world of economy and different changes happened to foster the processes of globalization. 2. Economic Globalization: Pros and Cons in the Manufacturing Industry of LDCs Let us focus on the economic globalization and its impact on less developed countries (LDCs). In this case we will see the following picture: tariff barriers for international trade became much lower and there is a coming process of a high -speed market development in the world. The world trade, goods and products are on the way of their constant expansion and development. As a result, the cost of transportation and communication around the world are expanding the laws of international regulations. Consequently, conditions of employment for the employees in different fields should be correlated with the options of investments and a free financial flaw. It was found out by Lee (1996) that ââ¬Å"thereà isà aà significantà currentà ofà apprehension overà theà implicationsà ofà globalizationà forà employmentà andà incomeà inequality.Onà theà faceà ofà ità thisà isà difficultà toà reconcileà wihà theà voluntaryà shiftà towardsà a moreà openà worldà economyà inà democraticà societies,à whichà areà alsoà theà only countriesà whereà theà apprehensionà isà voicedâ⬠2. Moreover, LDCs have many opportunities to follow credit process line of the government and the global society to improve their production. Less developed firms are encouraged and supported internationally. There are many winners in employment nowadays, but there are many losers as well. Globalization often leads to job losses, but at the same time it can create a number of interesting and prospective jobs. There are different patterns of global trade and employment generation is on the prospective edge of having many opportunities for development. Economicà globalizationà has always intensified changes of employment patterns. This resulted
Monday, October 14, 2019
UK Wrist Watch Industry | Marketing Strategy
UK Wrist Watch Industry | Marketing Strategy During late 2008 and 2009 confidence of consumer fell and people became more aware about their spending in watches and jewellery has not been immune to the economic climate. During 2005 jewellery and watches market grew by 10 % were it reaches to à £4.8 billion in 2010 and over next five year Mintel forecasts is 11%growth in watches and jewellery market. Hence 2011 is also going to be the year to invest in mens jewellery. Stephen Webster presented a strong case for mens jewellery at IJL in September 2010, and assuming male customer only want watches and the odd signet or chain could lead to missing out on a potential wealth of customer. Its not that male customers dont want it: they just dont know they want it. Men dont have thinking about what to wear as women do, explain Webster. But once a man is bejewelled, theres no looking back. They also dont wait for special occasions like woman do, and they can go from zero to jewellery enthusiast in no time. Market research company Mintels September 2010 report Watches and Jewellery Retailing UK found that 20% of male respondent said they like receiving jewellery as a gift, and 12% said that they had purchased all of their own jewellery. So the market is clearly there to be exploited. http://www.retail-jeweller.com/trends/in-with-the-new-2011-trends/5020089.article Rapid increase in gold prices and recession change many consumers mind to buy silver instead of gold, this trend is rising to nearly three in ten women with almost one in five people wearing silver jewellery than gold; particularly young people aged 15-24. Now days Consumers are willing to experiment and try new looks with little minimising their bank balances which means many costume jewellery items are affordable and easy disposable without denting their bank balance. Young aged under-35 is more open to pay large amounts for watches these are consumers who do not wear jewellery to express their individuality or to show their consumer spending power. As the research has should that 86% of consumers wear a watch, were 40% only buy a new watch when their old watch is broken. The new reason for purchase a watch could be watchs main function with health benefits as a new way of helping the consumer. http://oxygen.mintel.com/sinatra/oxygen/display/id=479809 Executive Summary: https://www.keynote.co.uk/market-intelligence/view/product/10331/chapter/0 Why buy me. Can be better explain by to fend off the competition by constant innovation, reinvigorate, recalibrate, update. Many brands and companies are continuously renovating their business and holding positioning themselves for growth. Positioning able offerings for brands and availability of product in the market. Several key target groups and users meet their needs as it reaches a certain mode of consumers and delivers benefits to them. Consumer and user are attributed by benefits and product as they are depended on how actual approach of a company or brands position communicates in the market place. As a result positioning or product of a company find one to keep further distance itself from competitors which is based on list of items, but very importantly in six key :, Distribution, Quality, Attributes, Product, Price and Usage Occasions. As compared to earlier times consumerism has undergone a sea change where the consumers are informed about the products. Hence, the market has become customer centric. Understanding the importance of customer is become the structure of business; in effects companies have started in regular basis i.e. repositioning exercise. In the recent times Titian Industries Ltd had a major brand repositioning exercise was planned more in order to provide more to its customers. Now the company holds new position. This study will help to understand the revived positioning strategies of Titan watches. An analysis of repositioning strategies of Titan also forms of the study. Firstly it is important to understand the overall wrist watch industry in UK. Secondly to study the brand positioning and re-positioning strategy of Titan wrist watches and to find out about the loyal customers of Titan watches as they are aware of the new positioning strategies of the company and how they used them. To study primary and secondary data have been used. Analysis UK wrist watch industry and brand repositioning strategies of TITAN Company has been analysed and completed on the basis of secondary data. Internet, journals, books and magazines have been used for this purpose. Project comprises conducting a questionnaire survey. (function() { var scribd = document.createElement("script"); scribd.type = "text/javascript"; scribd.async = true; scribd.src = "https://www.scribd.com/javascripts/embed_code/inject.js"; var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(scribd, s); })() Introduction: 1.1 Theory and concepts: According to Peter Drucker A business has two and only two basic functions: marketing and innovation To maintain business relevance and market position, it is important to continuously innovate and invent brand image in the market to pace with change and intense competitive pressure in the marketplace. In this context, now days brand positioning and revitalization strategies have become a business vital part for battling brand erosion. Further heightened for brand repositioning is because of rising cost and high risk connected with launching a new brand in market. Increase in the cost and high risk related with launching a new brand that is a part of brand reposition. Brand reposition has received very importance in the marketing literature and treated as a difference of brand positioning. Reposition can be required as the market changes and new opportunities occur. In order to reach the customer which was never targeted at first can also be targeted with brand reposition. In order to change its image in the market it is important to focus towards brand repositioning, although it is one of the toughest and harder actions for repositioning of familiar brand in market. As per Solomon, essential part in the marketing efforts is position strategy because companies have to use the elements in the marketing mix to influence the customers understanding the position. There has to be several choices to be, so to as to be in more attractive and relevant position. It is important for the person who is reposition for the reposition to know and understand why reposition is necessary and its need, and if the offer is the one that will change or just the brand name. While repositioning it is important to undertake and understand all the risk factors that is likely to affect it in the market. A company risks its credibility and reliability more while repositioning its brand in the market and the need for a thorough strategy is very important to avoid any occurrence. Some analyst argues that to successfully reposition a established brand name is almost impossible because repositioning of a brand can make the most loyal customer to switch brand. If the brand is eroded then brand reposition becomes important. Numerous attempts to reposition brand in the market may fail which is testified by many company for example while soft drink has successfully been able to connect with the youth though they exist for 40 years in the market but at the same Levis, jeans has been losing its market share to newcomers such as The Gap despite numerous campaigns designed to reposition the brand trend. 1.2 Literature Review: The reposition strategy is defined into three stages that is: Introductory Elaboration Fortification This involves the introduction of a new or a repositioned brand, seeking underline the brands value over others, and to broaden the brand position. It is truly hard to change the customers perceived attitude towards a brand, and therefore the risk is great that the attempt to repositioning might fail. After rolling out the strategy, it is time to modify the proposition through update of the personality and through repositioning. There pros and cons with both of this segments and it is great significance that they are truly calculate when deciding the next step in the process. To understand it more deeply http://htmlimg4.scribdassets.com/55f3acalz4nfgla/images/10-81b5e3fa9c/000.jpg Figure 1: Stages in brand strategy development. When a company modifies or change something that is already there in the market established in the mind of the customer that is called as repositioning. Different profession and individuals have different meaning and understanding towards Repositioning. There are few different definitions and greater understanding about this concept: Repositioning is a change, principally about triggering the vision, mission and value in a new direction that is more suited f or the brand in the future- Brand manager consultant. Principally, reposition concerns changing the consumers perception of the brand PR consultant. Repositioning is built upon the change of unique and differentiated associations with the brand in some kind of direction; it is about having a balance between the category party and differentiation when using reposition strategies (Leading Brand strategies) From these definitions, it is obvious that reposition is about moving something to more attractive and relevant position. Reposition direction is often decided as to what a company wants to achieve. There is also a visible relation between price and quantity aspects. When a company perceives the market as a demand curve, the purpose is to down stretch or upward curve. When moving up and there is a need for reaching the premium segment and expand up wards. Figure: The principle of reposition. When striving towards a new position in the market, it is important to understand those consumers are limited. Peoples minds select what to remember and it is important to convince the consumers with greater arguments. The market always strive for change which is rapid and therefore repositioning can be necessary to meet these demands, newer and stronger arguments have to be established to convinced them to stay as loyal customers. As repositioning is a very complicated matter and therefore there are no detailed theories or models. Aim for repositioning is different for different person, and the only connection between all the different theories is that repositioning is moving something from somewhere towards a greater position at the market. Corstjens and Doyle (1989) identified three types of repositioning strategies: Zero repositioning, which is not a repositioning at all since the firm maintains its initial strategy in the face of a changing environment. Gradual repositioning, where the firm performs incremental, continuous adjustments to its positioning strategy to reflect the evolution of its environment; and Radical repositioning that corresponds to a discontinuous shift towards a new target market and /or a new competitive advantage. After learning the repositioning of several brands from the UK market, the following 8 types of repositioning have been identified. These are: Increasing relevance to the consumer Increasing occasions for use Making the brand serious Falling sales Bringing in new customers Making the rand contemporary Differentiate from other brands Changed market conditions A four phased brand repositioning approach can be followed to achieve the intended benfits- Phase I. Determining the current status of the brand Phase II. What does the brand stand for today? Phase III. Developing the brand positioning platforms Phase IV. Refining the brand Positioning and Management Presentation The advantages that can be derived from brand repositioning exercises can be summarized as: Value over others Updated personality Relevant position The risks associated with such strategies are: Loss of focus Neglecting original customers Losing credibility for the brand Confusing the brand Therefore, in order UNLEARN the brand positioning one must help the customer to know brand repositioning in more difficult than initially positioning. This can be done by: Carefully crafted communication New products, packaging Associations with other brands ( co- branding, co- marketing, ingredient branding, strategic alliances, etc) that reinforce the new brand positioning. This exercise is so critical to an organizations success that the organizations and leader in marketing/brand management should develop skill preferably with the help and facilitation of an outside brand positioning expert. Research Methodology: 2.1 Objectives To study the current scenario of UK wrist watch industry. To review the brand positioning strategies of different sub-brands of watches. To analyze the brand repositioning strategies of watches. To study consumer awareness and perception about the brand repositioning strategies of watches. This study will help to understand the gap in its communication strategy regarding brand repositioning exercises and the further measures to be taken for effective marketing communications. 2.2 Limitations: The study is confined to London area only There is possibility of sampling errors in the study The responses of the consumers may not be genuine Questionnaire may not be comprehensive 2.3 Sources of Data Collection: The relevant data was collected from both primary sources and secondary sources. The starting point of my information gathering has been the secondary sources such as internet, books, and journals and so on. Firstly, brand positioning and repositioning strategies of Titan, secondary sources such as internet, insurance magazines, and journals and so on. Then I conducted a consumer awareness survey on brand repositioning strategies undertaken by Titan watches in recent times. 2.4 Sampling: To conduct sampling of 50 loyal consumers of Titan and in the age group of 20 30 years for this study. Since Titan has taken up brand repositioning strategies since January 2011, consumers who have seen the previous and new campaigns have been targeted. 2.5 Primary data: Data was collected through an interview schedule, consisting of both open ended and closed ended questions. It consisted of the parameters like reasons consumers brand preference, recollection of earlier tagline and advertisement, brand ambassador of Titan awareness of new tagline and campaign featuring sportsmen and actors from International body and so on. The data was collected through e-mails, telephone contacts and one to one personal interviews. Industry Overview UK Watch industry: In 2004 and 2008 market report examines the jewellery and watches market in UK were fluctuated and fell by 2.8% and finish at à £4.33 billion in the review report. Large declined in 2008 contribute to the global economic downturn and UK recession which adversely effected nearly all UK industries. The only unaffected by the downturn was the luxury end of the market end, but by the 2008 and 2009 it begun to take effect on it. In recent year the jewellery and watches become increasingly competitive. Although this market have wide range of suppliers and retailers also online retailing have contributed highly for transparent for information on pricing and availability of products. This was a positive trend for small brands that was previously unable to deal with consumer directly. Some larger retailers and few independents have developed their transactional sites to deal with their consumer demand. The product which have high rate of consumer penetration with around a third of the UK population owning piece jewellery and watches. In 2009 downturn in UK economy shows that it will affect all areas of consumer spending and unlikely to show reversal in near future. It seems the concepts of a wrist watch have become that of a status symbol rather than a practical chronometer. According to a survey that suggest one in seven people in the UK has no need for watch, apart from as a fashion accessory. Gadgets such as iPods, laptops and mobile phone, represent threat to the watch industry, survey conducted by Mintel. Even in the age of iPhones, people spend huge amount of money on a quality time piece, with high-end brands such as Rolex and Tag Heuer adorning blinged up wrist of rappers, bankers and fashionistas alike. http://www.wharf.co.uk/2010/11/why-wrist-watches-are-dialling.html SWOT ANALYSIS OF THE UK WATCH INDUSTRY: Strengths: Watch industry is growing industry which faster rate As the population is rising, the watch market is also expanding Customers are not very price sensitive as far as quality watch is concerned Weakness: There is not much advertising done by watch industry No innovation in products There are few number of exclusive showrooms that reduces the consumers accessibility to the product There are few marketers, who are concentrated only upon a particular niche segment (Tag Heuer ) Opportunities: There is more need of fashionable luxury watch and fine luxury watch brands that can be targeted in UK, as customers are more like trendsetter and fashionable. UK especially London is a metropolitan city which makes it more attractive for the new company. Youth are more brand conscious than their predecessors. That leads to the expansion of the market for branded watches. Threats: There are many foreign players entering in the race Too many players will dilute the market and the profit margin. Mobile phones acting as substitutes of the watches. The Indian watch industry began in the year 1961 with the commissioning of the watch division of Titan. The first watch model manufactured by HMT was the Janata model in the year 1962. HMT was the leader in the watch market till the Tatas formed Titan watches in association with Tamil Nadu Industrial Development Corporation in the year 1987. They took a major strategy decision, which later changed the face of the Indian watch market to manufacture only quartz watches. Liberalisation in 1992 and removal of quantitative restrictions due to WTO has opened the doors for many the Indian market viz. Tissot, Swatch, Omega, Rado, TAGHeuer. The import duties on watches are falling which makes the Indian market look attractive for the global majors like Casio, Swatch and Citizen. Company Profile: Overview Titan is one of the largest watch producer in India and sixth largest in the world. Titan manufactures over 7 million watches per annum and have 65 million customer. In 1984 titan was established as a joint venture between the Tata Group and Tamil Nadu Industrial Development Corporation. Manufacturing in a state- of -the art at Hosur, Tamil Nadu the company brought the large change in Indian market, by offering quartz technology with international styling. By understanding the different segments in the market, the company launched its second brand Sonata watch, as value brand for those who like styled watches with affordable prices. In last two decade the company has build an very good impression in watch business to become Indias largest manufacturer and world largest sixth manufacturer of watches. This was mainly because good formidable distribution network. Being one of largest retail chain of exclusive retail showroom for watches called The world of Titan spread over 100 towns. Titan have branches over 30 countries, its also have multi brand outlets named Time Zone, service centres and dealer outlets. The company has watch plant at Dehradun (UP) and Baddi (Himachal Pradesh) and electronic circuit boards in Goa. The promoters held majority stake of the company, with Tidco having 28% of the shares and Tata Group companies owing 25% of the shares and the public sharing holding around 28% in the company. The rest of the stake held by the foreign institution, non resident Indian, mutual fund and other institution. It also acquiring a license for global brands such as Tommy Hilfiger and Hugo Boss, while. It has also in its portfolio its first Swiss Made watch brand Xylys. In 1995 the company capitalize to brand Tanishq as diversified into jewellery in fragmented market operating no brand in urban city. Also in 2005 the company launched its second Jewellery brand, GoldPlus, as using its opportunity for capitalizing in small town and rural India. Its also diversified into fashion Eyewear by launching Fastrack Eye Gear sunglasses as well as prescription eyewear. TITAN WATCHES: BRAND POSITIONING STRATEGIES Overall strategies: Since from the beginning Titan has been positioned as a premium brand, because its high quality products for its customer. Titan is struggling to have a strong brand image in UK market due to its numerous sub-brands that caters to different segments in India. It follows different positioning strategies; these strategies can also be analyzed as given below: Attribute Positioning: The company launched first quartz watches to Indian market as its product. The company successfully penetrate the market by this launch, under this strategy came Raga, Classique and Regalia. Classique positioned as style corporate wear that leaves a quiet definite impression and qualities of function. Regalia ranger represent the elegant-wear. Raga is an exclusive watch as positioned. The Raga and silver Raga collection of style, delicate and feminine with each piece unique truly. User Positioning: Titan provides to several user groups children (the Dash), sportspersons and adventurers. The fastrack range is seen as being modern and related to present time, reliable and sturdy. The advertising, packaging and merchandising of this range is young, cool and vibrant. Benefit Positioning: Titan offer many deals to differentiate its offering on the basis of superior style and attractiveness which is offered by Digital range fastrack. Competitors Positioning: Titan had to encounter the threat with the entry of several foreign watchmakers into the market; most the entrants are catering to the upper end of the market Omega, Cartier etc. Quality or Price Positioning: In the overseas market, especially in Europe where it is competing with Swiss and Japanese watches, it is position itself as value-for-money (less than Swiss watches and higher than Japanese), by giving attractively styled and of good quality. TITAN WATCHES: BRAND RE-POSITIONING STRATEGIES FOR GLOBALISATION Titan has managed to get fair market in Middle East and Africa but its failure in Europe was a downturn for the Company as the return was not as good as investment made for the expansion. Titan has decided to revamp its flagship watch brand in Europe mainly in UK. Titan wants to reposition it more youthful and relevant to the changing times. Titan has entered the International markets in 1989 through the export of watch movements. Titans first global footprint was placed in the UAE the largest market in the Middle East then it moved towards Egypt, Oman, Saudi Arabia and few markets in Africa. Though it faced strong competition, it reached the sales of 100,000 watches within a year of its launch. It started to move globally and moves towards Sri Lanka, Bangladesh, Maldives and Nepal. After its extensive survey, it concluded that it needs good reason to stock the brand. Titan needs to re-position its brand image in the UK market. And so Titan decided to against soft option of driving its globalization through private label exports. It would launch its product under its own brand with market positioning Therefore Titan found a massive advertising campaign to create brand awareness. It also participated in the fair which showcases the worlds biggest watch brand in the world. http://www.moodiereport.com/images/luxury_watch_tables_jan10_04.jpg http://www.moodiereport.com/images/luxury_watch_tables_jan10_05.jpg CONCLUSION: The suggestions to improve consumer awareness about brand repositioning strategy of Titan are as follows: To increase its visibility, Titan Company can sponsor events similar to fashion shows which all latest designs launched are displayed. This is important as it has a great effect on different segments of the customers in different ways. It is important to have Tie up with radio channels and television to broadcast and telecast its advertisement about various sales promotion from time to time. RD needs more investment as customer expectations are changing rapidly. It should focus more on introducing more varieties and luxury items in the market at regular interval. Introduce exclusive collection for working women which is more contemporary and complements any fashion styles. Tie up with international watch brands to make the product stronger in the market. To use internet to spread awareness among consumer about the brand. (function() { var scribd = document.createElement("script"); scribd.type = "text/javascript"; scribd.async = true; scribd.src = "https://www.scribd.com/javascripts/embed_code/inject.js"; var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(scribd, s); })() Terry Hills framework: Corporate objectives Terry Hills framework: Corporate objectives Friction materials is enjoying a new lease of life as seen by their ability to make substantial profit partly due to the renaissance of the motorbike (scooter) as a source of transportation by the middle aged. Thus the corporate objectives are: Gain market share in the OE market through manufacture and supply of DBP in 2 years. Entering the Far East market as a Long Term Strategy to increase profitability and to wrestle for International Market Share in 3 years Superior Product Performer thereby securing the contract on a Long term Basis Improve Research and Development for the OEM for incremental business. Increase ROCE to 30% 3 years. Increase Profit Margin to 30% in 3 years. Increase ROI to 40% in 3 years. Order Winners and Qualifiers Criteria Discussion of the Criteria and the Implication for Operations BRAND IMAGE This is true for the motorcycle manufacturing company as demonstrated by their attention to detail and their strong Quality Policy and culture. It is therefore pertinent for Friction materials to maintain their already lofty heights of Quality to be able to tap into the sea of opportunities of OEM. For the AM, it is a guide to the potential customers of the qualities attached to the brand. With a Quality rating in the industry, the brand image does help win some of the customers over to the product range. For the SM, Brand Image could play a role in the choice of the DBP because the customers may want the best quality DBP for their automobiles which would help in marketing (word of mouth). This is a strong basis for our core competency being retained rather than outsource. COST For the OEM, Cost is the major order winner here as the company has to be highly competitive on cost to ward off potential competitors from the market. But with the prospect of Research and Development for new ways of making DBP, Friction Materials would be able to charge pre For the AM, Cost is highly competitive as well. The company must be able to get DBP to the market at affordable prices as the company has to be highly competitive on cost to ward off potential competitors from the market. For the SM. Cost is not competitive and almost not relevant. The cost of the DBP should be reasonable enough and not charge ridiculous amounts though the customer is willing to pay for the value of the DBP. Q QQ QQ: Performance quality flexibility in design dependability and volume are sensitive order qualifiers such that a drop in one of the characteristic specification could cost them the order. These criteria are key to their winning over the OE market thus we have a QQ which denotes (order loser). On the long run (3 years on) some of the values would change because Friction would have acquired a certain volume of market share and the direction of the market would tend to shift. For instance with a breakthrough in RD, the value of design flexibility and cost would change. This signifies that For design flexibility, it would be a new order winner, a display of our competency and thus they would be able to charge premium price, or at least increase the price of supply. Cost would be a dominant order winner as competitors would seek to drive down cost hence stiff competition. On the other hand, Q is not as sensitive as QQ. You would not lose the order if you cannot meet the demand. For Instance the durability of the DBP is a qualifier because it must be able to perform for a period of time but not too long to be considered absurd. 2 years is good but no one would want to design DBP for 10 years so if the life span of 2 years is attained then it is fine. For instance delivery speed is not required as you would have agreed to sign the deal to deliver at an agreed period failing which you would be fined. MARKETING STRATEGY SWOT Analysis Strengths Credible supplier network Modern managerial input Good debtor to creditor days Good current Ratio; indicates cash flow Ability to expand current location Centralized location to market and to ports for export Fully depreciated machine cost, hence they machine cost à £0 Skilled Labour force as can be seen in Specialist Manufacture Brand Image recognition for quality Close relationship with the tool specialist fabricators. Weakness Inventory levels Friction between top management (cronton and whitson) Long changeover period on press machine Poor personnel management Poor use of work packages leading to unused raw materials Underutilization of MRPII systems Inability to do online payment Poor space utilization Over reliance on entry into OE market Opportunity Potential global leader in OEM Local sourcing of materials (when they gain social status) DBP direct supplier to industry manufacturers thus increasing market share Expansion of production range Threat Competitive Labour Market Stiff competition from the Far East Potential Environmental threat on noise and waste disposal MARKETING STRATEGY Expansion of Market channeled to an increase in both local and global supplies of DBP. Revolutionize the OEM to a Quality competitive market based on cost management. Improve Research and Development capabilities After sales customer feedback as a way of getting closer to the customer and improving on quality and performance. MANUFACTURING STRATEGY VERTICAL INTEGRATION This is the level of incorporation in a supply chain for the various stages of the supply process. It could be forward or backward integration. A vertical integration could be to bolster the technological front based on competition or for to emerging markets. Make / Buy: The make or buy analysis is a strategic analysis that helps top management to decide what they want to produce, what they want to stop producing or what they want to outsource to a third party. In practice, core competence is not outsourced because that is the uniqueness of the product; if you let it go, you could just be setting up future competition for your company. The various decisions taken and the reason are as follows; For the supply of raw materials; a single supplier was preferred. This would prevent re-testing for the quality of the supplied materials as the testing phase takes a couple of weeks to get the right mix for the required braking performance. This would increase lead time and consequently reduce the ability to deliver on time. It also helps reduce the variation in quality that could arise from multiple sourcing For the mixing operation, that is the core competence and could be detrimental to the growth and the corporate objectives of the company. For the Press Operation, the Press tool manufacture is done by a local specialist firm. This could lead to delays in taking up the tool fabrication hence building up lead times for the OEM. When the design team finishes the design, they would have to wait for the Press fabricators to be available to work. Communication gap is also a threat to the smooth running of the design of the tool for the OEM. The specialist firm is also prone to take over by large BP manufacturers who are direct competitors and once competitive advantage is lost to them, it affects the market share of the OE and consequently the ability for Friction Materials to compete. Thus the decision is to Vertically Integrate the Local Specialist; this helps build competitive advantage in the OE market. For the baking operation, it would be kept in house. Outsourcing baking increases the time the operation takes; from 3 hours to a potential 5-6 hours. The cost of transport, labor and the payment of the operation together with the time trade-off make it very complicated and unsuitable for outsourcing. The chemical properties of the brakes at high temperatures could be altered during transportation and thus could lead to a failure in testing which results in the company losing the order. It is therefore a critical operation in-house and not outside. For the machining operation, the decision is to be kept in house. This is because an automated 100% dimensional check is required after machining. If you machine in house, there is a greater chance of achieving that accuracy than to outsource to a specialist that could be overlook little details that could lead to test failure. Since the machines are running at full capacity, an extra machine is required for the OEM manufacture. The machine would be second hand quality as accustomed to the company. The fully depreciated machines make extra budget available for this purchase and would in no time be fully depreciated as well. Thus we practically are paying less to do more. For the painting, the operation would be carried out in house. The reason is to be in control of the goods produced. Also the painting operation is a low skilled task hence a contract staff could be employed for the sole aim of painting. This helps specialization on the long run and reduces costs due to transportation and material handling. It also reduces labor cost as the company is only bound by the contractual agreement without benefits. For the packaging, the short term objective would be to continue in-house but re-brand the lot size so as to accommodate more DBP. This reduces the burden of having to pack several hundred of DBP at any time. The lot sizes could be increased and standardized as there is no obligation to supply with the current range of boxes but simplifies the current packaging operation. This helps reduce the number of boxes supplied for packaging and hence the time and cost of transportation and material handling. However the long term plan would be to source for a packing company that would agree to package as close to our production site as possible. This helps free up space for increased production and other value added work. FACILITIES The design of the operation would take into consideration the item to be produced, vary the different possible ways to produce it and come up with the best and most efficient way of producing it. The characteristic of the operation is determined by the 4 Vs VOLUME HIGH LOW HIGH LOW VARIETY LOW HIGH VARIATION LOW HIGH VISIBILITY The OE market involves long production runs with product specification and low variety, there is need to implement a high volume low variety manufacturing process which is the category of the OE market. Volume: This is the production capacity within a particular time frame. The volume is set prior to production in order to plan for capacity. The current forecast of 150,000 in the first year is a high volume compared to the normal few hundreds that are currently produced. Therefore it is a high volume process operation and adequate capacity should be provided as required. Variety: this can be described as the different combinations of products that a production process can accommodate. There is limited variation in the demand of DBP for the OEM due to the standardized requirements. Basic changes can be made in the design but it is practically the same spine and technology that is used. This depicts a low variety production. Variation in Demand: This is the ability of the production process to change with little notice to the forces of demand and supply or product design and specification. Orders are requested a year prior to production thus a stable demand profile which makes effective capacity utilization probable. Therefore it is a low variation demand production. Visibility or Customer Interaction: this could be described as the level of participation of the customer in the production process. The ultimate goal of any production of the process is to satisfy the customer. Since the customer is not expected to be at the factory every time, we settle for a low visibility production process. This has no bearing on the type or quality of DBP produced as the company would be ratified fit for the production of the OEM before proper production can commence. Location The current location of Lutterworth is perceived as a central location both to the potential and to the international market. The town has a rich history of manufacturing work and is in a central location for transportation of finished goods and raw materials and assess to the factory very easy. It is also close to a large motorcycle manufacturer who is the potential customer. This is an ideal location for a growing company and the rate of development could become attractive for immigrants due to the emerging facilities. TECHNOLOGY Product Profiling The product profiling approach is an analysis understands the requirements for production and the characteristics available for each process to meet production specification. A comparative analysis helps in process choice the layout structure to adopt. Original Equipment Manufacture would be done through the batch production process. The process type helps utilize the standardized production format due to low variety. It also helps improve the efficiency of production and spreads the overhead costs over more units. The Specialist Manufacture is a jobbing type process while the Aftermarket production is Batch Production therefore if we go for a flow line production process; it would impede our production process. Thus if for OEM, a flow line is chosen then Specialist Manufacture must be outsourced to compensate for the complexity of the production process. However the Specialist manufacture is the core competence of Friction Materials and to let go of it would be synonymous to throwing your market share away. If a competitor comes by and vertically integrates that section of your company, then there is a potential buy-out of Friction Materials. Therefore it was sensible to use a flexible Bach production process currently which could move into a flow production process with enough investment to justify the resources required to change it. Process Choice Project SPECIALIST PARTS AFTER MARKET Jobbing ORIGINAL EQUIPMENT Batch Line Continuous High Volume Low Alex and Terry Hill 2009 Volume High Low Low High Low Variety Fixed Position Process Cell Feasible Flow Product High High Low Regular Flow Dr Watt 2010 However, for a long-term capacity planning, investment decision and availability of funds could make OEM be more flow line suited. This occurs when there is a huge volume to justify the investment and good forecast of an emerging market hence a growing demand and a comfortable market share to control. The OEM batch process tends towards the flow line production section. Process Choice SPECIALIST PARTS Project AFTER MARKET Jobbing ORIGINAL EQUIPMENT Batch OEM Line Continuous High Volume Low Alex and Terry Hill 2009 CAPACITY A capacity strategy is a review of how the personnel would work effectively with the resources and machinery available. For the OEM, there is a predictable demand known a year prior to production, hence a level capacity strategy typifies the production. There is no lead or lag in production and demand hence the make to order plan. LEVEL CAPACITY PRODUCTION The capacity is set at 3000DBP per week at standard working week of 40hours. This helps both capacity and personnel utilization and a tight budget schedule. If there is a change in capacity planning, shift hour or overtime can be used to compensate for such. However this plan is for the current production target of 150000. INFRASTRUCTURE HUMAN RESOURCES These are specialists in the area of recruiting people for various job functions. From a manufacturing point of view, an IE is the right person for this task. This is because he has been trained to understand the right work contents the workforce required to achieve maximum capacity utilization and the performance measurement attached to each job function. However the HR specialist understands how to tie the salary structure and the benefit (both money and material) attached to him. Therefore the strategy would be to employ the unskilled workforce and train them to a basic minimum skill level required to do the basic non skilled operations like printing, packaging and painting and machining while we use a higher wage structure to lure the skilled workers; should we need them. The unskilled workers could be temporary workers or permanent workers depending on the requirements while the skilled workers would be made permanent to increase core competency. Periodic training like safety and their specific job functions would be necessary to update the level of skill and technology across board. PERFORMANCE MEASUREMENT THE BALANCED SCORE CARD It is a framework that converts the vision of the company into performance measures that can be interpreted and monitored. The mission statement should thus be seen as the action plan that drives the company on the journey to the destination it hopes to achieve in future. LEARNING AND GROWTH FINANCIAL PERFORMANCE CUSTOMERS PERCEPTION AND EXPECTATION INTERNAL STRUCTURE AND INFRASTRUCTURE STRATEGIC OBJECTIVES Fig : The balanced Score Card Slack, chambers Johnston 2007 Strategic Objectives Strategic Measurements Core outcomes Performance Drivers 1 Financial Increase Profitability Increase Revenue Project Cost Reduced Cost Compete Based on Cost Operational Efficiency 2 Customer Increased market share Share of segment % presence in the OE sector Customer satisfaction Customer feed back % satisfaction, positive feedback 3 Internal Revenue mix Research and Development collaboration Prototype designs success rate Increase ROCE High ROCE Higher utilization of resources 4 Learning and growth Employee capability Staff productivity Reduced scrap rate Upgrade of facilities Systems Audit Improved cycle times Adapted Balanced Scorecard, Kaplan and Norton 1996 Financial perspective Growth: The dream of every business is growth; and so is Friction Material. The growth of the company is the gate way to expansion in other markets and could be a factor in increasing the Market share which has been set as at 2 years. Increased Profitability: The profitability of a company is its ability to satisfy the demand of production; output, overheads and cost of production and still make a margin. Most businesses are set-up with an aim to make money; either primary or secondary. Friction Materials made profit this year and the OEM is a lee-way to guarantee constant volumes of production and with a high efficiency system, the OEM would be the source of revenue for the company. This is because the OEM has a huge potential to turn the fortunes of the company around from a small company to a Large company with huge revenue and large market share. In an emerging market like the OEM, the first to enter the market usually dominates a great percentage of the market share. Therefore it is pertinent for Friction Materials to be in the market as one of the pioneer members. The OEM would generate huge revenue as they have a huge volume of production thus reducing the cost accrued to the production costs and overheads and consequently drives d own the cost of production and hence increases profitability Profitability of the OEM is vital to the existence of the company as it helps to generate a funds through production that could be ploughed back to the operation of the other product range and with good decision making and investment policies; the company will be transformed into a World Leader in the manufacture of DBP. Profitability of the company also helps it satisfy its personnel commitment; paying of salaries and bonuses to the workers for increased motivation. If a business is not profitable, the management of the company could struggle to pay wage and this would ultimately impact on the shop floor reducing the productivity of the workers; as most workers would lack the motivation to continue work without pay. Ultimately the customers; the motorcycle manufacturers would get affected as Friction Materials could end up not meeting the demand target and are imposed heavy fines. Gradually the company would lose its competitiveness and could end up being bankrupt if it continues to fail to meet the target. The contract would be cancelled and the production would be hampered. The end result could be the administration of the company, since it cannot meet its basic obligation. Cost Reduction Sustaining growth is all about meeting the expectation of the shareholders, those responsible for the investing money and time to the success of the company. In Sustaining the growth of the company, good asset utilization and cost reduction policies like getting depreciated machines to work effectively, helps to reduce the overheads and unwanted cost attached to the daily running expenses of the company. The OEM is a cost-competitive market and imploring a strategy to drive down cost is worthwhile. Trade-offs associated with low cost production should be properly weighed before decisions are made else it could eventually cost more; both for the cost of rework and the excess and unnecessary man-hours used. For instance, if the cost of a standard back plate is $10 and you get a supplier for $6, it is possible that the manufacturer might not be able to meet production target. So if you hire him for your supplies and he fails to deliver, in panic, you might need to get another supplier w ho would end up charging you more than it would cost and you might have to run extra man-hours to cover up for production time lost. All these could cost more compared to the stable $10 who is guaranteed to deliver when needed. Customer Perspective Increased market share The market share is a portion of a business sector where you dominate. In reality, big companies like McDonalds have almost all the market share between them leaving the remaining for smaller companies. The idea is that every company sells a particular volume of the product in the market. Companies with dominant shares sell high volumes of stock periodically. Friction Materials has market share as one of its targets because it aims to be a profitable business. If they can churn out large volumes of DBP and exhaust their production capacity in terms of sales; then they would be able to get the overhead cost driven low. This helps put the Cost reduction strategy in check and increases the viability for profit making. A large market share increases the brand image of the company and opens doors for wider reach to the Far Eastern and Global markets on a whole. It also helps increase the possibility of dominating the Local market. Based on the operational capabilities of the company and the entry into the OEM market, Friction Materials could boast of a sizeable market share so far as other factors are favorable. With percentage market share dominance, plans like marketing drive sales promos and exhibition events like auto fares can be used to boost their brand image and ultimately sell the product to the market. The market share volume determines the amount of profit and volume of DBP that could be sold over a period of time. Customer satisfaction Customer is king, should be at the back of the mind of every employee of Friction Materials. This is because the customer makes it possible for the employee to be paid; if the DBPs are not quality ones or the customers are not satisfied, they could easily turn to a competitor and this affects the market share of the company. Since we regard the customer as king, and production is based on customer needs; it is imperative that Friction Materials delights its customer base by going the extra mile to meet with them, to have a personal experience with them. This helps the company reach out to potential customers and at the same time get a good understanding of the performance of the DBP in the market and ways to improve the current production specifications and designs without altering the standard specification requirement for manufacture. It also helps identify potential areas of strengths and weaknesses as emerging opportunity that abound but have not been fully utilized. For the OEM to succeed, the customer must be delighted exceptionally and satisfied with the unique qualities of the DBP else Friction Materials would lose ground to their competitors and could lose their competitive advantage to poor human relationship. Therefore the company should make the customer the aim of the production process and in pleasing a customer that could be a potential chain of new customers. It is widely said that it costs a lot to get a new customer compared to retaining one of them. Thus it is more profitable to secure already existing customer base by delighting them exceptionally while looking for incremental business than to look for more business and neglect current customer base. Internal Process Perspective Research and development For Friction Materials to remain relevant in the OEM, the RD team would be expected to design and develop new lines for production. The ability to meet this requirement is one of the basic tasks of Friction Materials as an OEM. Therefore it is an important aspect of the company that needs to be restructured. Currently, there is no department for RD and since it is a major requirement by the contractor, a new R and D department be formed. The design engineer as well as the local specialist firm that was integrated needs to be incorporated in this department to work together for the progress of the company. A good R D enables breakthroughs which can yield huge revenue. Similar to this is the Astra Zeneca R D who charge premium price for discoveries in their RD that are able to sail through to the production stage. RD also increases skill level of the company and takes the competitiveness to a higher level. Thus it gets to a point where they could re-define the characteristic qualities of performance of DBP as seen by the 5 seconds telephone response employed by Zenith bank to attend to customer enquiries. High ROCE: A high ROCE for Friction Materials signifies a good balance of employee strength. The ROCE is a financial tool used to understand the extent of effective utilization of resources. If the employees are trained well and given the right resources to work with and appropriate incentives and benchmarks to go with, then they would be well motivated to achieving company targets. When the targets are met, they can be used as benchmarks to be built upon. With a steady growth rate in ROCE, investment on raw materials, machines and personnel would be justified. Productivity, efficiency and proper scheduling of the production process are the hallmark to achieving a high ROCE. An Acid test ratio can be used to measure the liquidity of the company, the more liquid a company is; the stronger it is. Thus using a benchmark as a source of strength makes the top management of the company a focused one. Growth Employee capability reskilling people Upgrade of facilities buying new machines ORGANIZATION The organizational structure of Friction Materials should change from a process based leadership to a functional matrix organizational structure where the operations personnel have easier access to top management for decision making and policy formulation. For a small company like Friction Materials, the Organizational hierarchy is very visible. Too many management port-folios or positions; as is seen here, creates a communication problem such that escalating issues or problems as seen on the shop floor could take a while before it gets to the appropriate table and this makes flexibility very low. If friction arises between the managers, it could trickle down to the shop floor. Besides there is unclear definition of roles and responsibilities and this is a potential disaster because of the ownership of responsibility for failure or damage. Thus instead of creating an operations unit, they are building a potential silo. This hampers effective communication between the operations crew. The dual role for the sales manager could also be detrimental to the progress of the company as there might be sub-optimization of the sales department and biased decision making; should he be in contest with another manager. There should be a common focus of top-management on the direction, aims and objectives and the vision should be shared collectively. Time out on team building and holiday trips could be scheduled to help foster relationships of employees of Friction Materials. Having grudges against people is a reality of life, but when it affects the productivity of the company, it becomes questionable. Job roles and functions should be well defined and the performance; measured. This helps make the workers responsible for the daily activities and could improve productivity. A good reward and compensation scheme (bonus) could be employed but it must be properly structured to avoid sub-optimization of departments or resources. PRODUCTION AND PLANNING CONTROL The planning and control system of Friction Materials Ltd is the MRPII but is underutilized at the moment as there is no skilled clerical worker that can handle the software. The clerical workers need to proceed on a flexible training schedule to learn the latest version and application of the MRP II system. There should also be an online order and portal system where purchase orders and payments can be made and reduce the over reliance on the telephone order or fax as there could be ambiguity in communication. The capacity planning features of the MRP II system was not in use and the WIP records for an on-going production process is not recorded which makes it almost impossible to be able to plan for adequate capacity and schedule for raw materials hence the high inventory levels. A kanban pull system can be implemented for the production of the OE market to meet production targets until a full scale imp
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