...Structure and Firm Strategy “Six months from today I have decided to start my own online service selling cookbooks. Presently, I am working full time with an annual salary of fifty thousand dollars a year. At the time of startup for selling the cookbook I will have made twenty five thousand dollars in the first six months of the year. The twenty five thousand dollars that I give up by moving on to my internet business of selling cookbooks is a nonmonetary opportunity cost. “The opportunity cost of any activity is the highest-valued alternative that must be given up to engage in that activity” (Hubbard pg. 356; 2012). This trade off of not gaining my twenty five thousand for working the second part of the year is a cost I will encounter and must be added to my total fixed cost. In other words, the twenty five thousand dollars I loose from leaving my job in order run my own business becomes an implicit fixed cost for the first year of running my business giving me a total of 41,000 total fixed costs. In regards to pricing my cookbooks the retail price for the cookbooks will be at $30.00 and the average price of the cookbook will be $20.00. The change in the difference of the retail price to the average price is my marginal price. My marginal price is ten dollars. In other words, marginal profit = selling price ($30) – total variable cost of one unit (average of $20). In order to figure my demand curve for the month and assume that I have 40,000 cookbooks in inventory I would...
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...BY Adawari Josiah Jumbo Student Number: 15622057 2010. Impact of Operations Strategy in the success of Firms: A Case study of Bunge Limited i. Impact of Operations Strategy in the success of Firms: A Case study of Bunge Limited By Adawari Josiah Jumbo Student Number: 15622057 Submitted To Laureate Online Education & University of Liverpool – Online Masters Degree In Partial fulfillment for the award of Master of Science (M.Sc.) Degree in Operations and Supply Chain Management Instructor: Dr. Armin Zehtabchi 2010 ii. DEDICATION This project is dedicated to my beloved wife and children for their understanding and support. My Instructor, Dr. Armin Zehtabchi is also to share from this for his supportive challenges and encouragement. . iii. DECLARATION I hereby declare that the work done in this project is entirely mine and has not been presented to any University for the award of any degree; that it was supervised by Instructor, Dr. Armin Zehtabchi. Adawari Josiah Jumbo iv. ACCEPTANCE Accepted by, Laureate Online Education & University of Liverpool – Online Masters Degree, in partial fulfillment of the Master of Science (M.Sc.) Degree in Operations and Supply Chain Management. Instructor: _________________________________________ Dr. Armin Zehtabchi v. ACKNOWLEDGEMENT I have the pleasure to...
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...Firms Strategies to Stay Competitive in the Market Table of Content ......................................... -2- Introduction ................................................ -3- Differentiation Strategy ................................ -4- Benefits & Challenges of Differentiation Strategy .................... -5- Apple ..................................................................................... -6- Low Cost Strategy ................................................................... -7- Benefits, Challenge &Mistakes of Low Cost Strategy ................ -8- Interview .............................................................................. -11- Conclusion............................................................................. -15- In the beginning, I would like to explain the major problem that is associated with economy in the whole world which is scarcity. We know that humans are greedy and they always want more of everything, so that is why we have the problem of not having enough resources to all people. Firms try to satisfy their customers by thinking of strategies that can make their customers satisfied and to stay competitive in the market. Looking from this perspective, I would like to introduce my topic about Firms Strategies to Stay Competitive in the marketplace. Firms can remain competitive through a lot of planned strategies. Being a competitor in the market requires constant monitoring of the...
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...Yes, I agree with the opinion-that, construction firms use operations strategies in their firms in order to gain and attain profits. Eventually, in today’s time like other industries, construction firm also have no way without implementing operation management strategy in their firms. A successful business operates by knowing what it does best, why it does what it does and what it needs to do to stay focused and gain market share. It has a clear vision of why the business exists and what measurable results are expected to keep it winning for a long time. The purpose of a business is to give the owner what he or she wants. In publicly traded companies, stockholders want three things: quarterly earnings or profits, increasing stock values and revenue growth. Operations Management: Operations Management is more about running the entire business than just the production line, and involves accounting, pay, personnel, shipping, and all aspects of a business. The point of operations management is to fully integrate all operations so the company operates as an integrated coordinated whole, rather than as separate, independent departments each doing their own thing. The operations manger need to look at ways to coordinate purchasing, accounting, planning, production, personnel, maintenance and training. If any one of these becomes disconnected from the others, then you get bottlenecks outside of the production line that slow down production. For instance, if personnel does not...
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...THIS PARTNERSHIP AGREEMENT is made this __________ day of ___________, 20__, by and between the following individuals: | |Address: __________________________ | |___________________________ |City/State/ZIP:______________________ | | |Address: __________________________ | |___________________________ |City/State/ZIP:______________________ | 1. Nature of Business. The partners listed above hereby agree that they shall be considered partners in business for the following purpose: ______________________________________________________________________________ ______________________________________________________________________________ 2. Name. The partnership shall be conducted under the name of ________________ and shall maintain offices at [STREET ADDRESS], [CITY, STATE, ZIP]. 3. Day-To-Day Operation. The partners shall provide their full-time services and best efforts on behalf of the partnership. No partner shall receive a salary for services rendered to the partnership. Each partner shall have equal rights to manage and control the partnership and its business. Should there be differences between the partners concerning ordinary business matters, a decision shall be made by unanimous...
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...------------------------------------------------- Firm Analysis – E&J Gallo Winery Prepared for: Gianluigi Giustiziero Prepared by: Salem Najjar Date: 8 December 2011 ------------------------------------------------- Performance E.&J. Gallo is the world’s largest family owned wine maker, the largest U.S. wine maker by volume, and the largest U.S. exporter of wine. Gallo cultivates more than 3,000 acres in the Napa and Sanoma valleys in California. With over 60 brands including table, sparkling and dessert wines, malt beverages, and distilled products; production and distribution facilities throughout the world; and a strong international presence; E.&.J Gallo is third largest wine firm in the world, with a 3.8% market share (Global Wine Manufacturing, 32-36). Refer to chart below. Gallo is the largest wine supplier in the U.S., commanding 22.7% of the market. Also, in comparison with the financial metrics of other firms in the industry, Gallo’s profit over revenue stands at 17.09%, whereas the industry average is 7.6%. Gallo’s sales grew 7% in 2010 as a result of acquisitions and the ongoing success of its Millennial-targeted Barefoot Cellars (up 33.3%) and Twin Valley (10.3%) brands. Twin Valley is described as a “step above” boxed wine (Mintel, Wine-US). With its strong brand and competitive strategy, E.&J. Gallo Winery has been able to weather the economic recession fairly well, capturing over $3.2 billion in revenues last year (Global Wine...
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...Every action has a reaction and every reaction has a counter action – “The Pattern”. We all follow –“The Pattern” no matter when but have you ever pondered how this conforms in context of international students at FS. Take my experience, the action was initiated when I wrote the FSAT, the reaction was the selection and counter action would be to overcome all the exciting complexities associated with the Frankfurt School journey ahead, more specifically, to travel along the trajectories of Frankfurt School Curve, which ultimately will leads to titanic productivity. In order to achieve the productivity by our counter actions we as international students need to sail across below mentioned “5 variable paths” of Frankfurt School curve. Interestingly, to make it more relevant with our business focused curriculum, I further fuse these paths lucidly with complexities International organization faces while playing Game of Globalization (or Thrones)! The intention of writing is to make you aware about the complexities the International students and organizations face on the same paths concurrently, although overcoming them with slight intelligentsia would lead to immense productivity. PATHS OF FRANKFURT SCHOOL CURVE: ASSUMPTION: Distance to travel on paths of curve signifies complexity level. The paths are the synonym of opportunities which we have to grab by overcoming complexities they offer while travelling Frankfurt School Curve, high distance travel along a path states harshness...
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...Strategies a Firm May Use to Overcome the Challenges in China For successful interactions in the world’s oldest civilization expatriates in China need to be aware of the uniqueness of the culture by treating their counterparts with respect and adding value to their lives rather than just value enhancements on the firm level on way up the “value chain” ladder. This can be done by building up relationships to strengthen the “guanxi”. It is evident that difficulties occur in a communist country where there is government interference, misallocation of resources and low freedom of doing business resulting in a high rate of corruption of 3.5 points in 2010 (Worldbank). There is not much to do about it but to be aware of it. It might seem like a paradox but Chinese consumers show increasing quality awareness. According to a report from Roland Berger Strategy Consultant (2010), the price of goods is no longer a “determining factor in a purchasing decision, [but it] is now just one of several factors alongside brand, quality and personal style.” Through offering an acceptable level of quality with perceived value a firm come overcome the challenges existent in the market. With respect to quality of labour force there is much more to take into account. As already mentioned, there is a small proportion of dedicated employees. Nevertheless, this number is decreasing from 17% to 10% as employee’s age increases. It is about to motivate the young generation by offering them...
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...Title of the article selected is “Entrepreneurial Orientation, Strategy, and Marketing Capabilities in the Performance of Born Global Firms” which published in International Business Research Teaching and Practice- The Journal of the AIB-SE Volume 2 Number 1 in year 2008, from page 12 to page 38. Samantha Hartsfield, Douglas Johansen and Gary Knight are the authors of this article. The primary objective of the article is to investigate the antecedents that affect the international performance of born global firms, companies that export 25% or more within the first three to six year of their foundation. From the framework of the study, it reveals that organizational culture, business strategy and business tactics are the three main factors contributing to the international performance of those born global firms. By looking in depth at these three main factors, it actually is a process on how a born global firm can gain competitive position in this intense business environment and thus succeed in the market. In the article, the authors do argue that born global internationalized rapidly as compared to traditional companies due to its smaller size, flexibility, proactive, innovative and risk taking characteristic. Besides, it has better development and management of knowledge in the early stage compared to traditional firm. As for traditional company, it needs to unlearn the routine and operation and learn new process for the new market. It is costly and time consuming and...
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...Testing a winning strategy: 1) Goodness of fit test: How well does strategy fit the firm’s situation? 2) Competitive advantage test: does strategy lead to sustainable competitive advantage? 3) Performance test: does strategy boost firm performance?Testing a winning strategy: 1) Goodness of fit test: How well does strategy fit the firm’s situation? 2) Competitive advantage test: does strategy lead to sustainable competitive advantage? 3) Performance test: does strategy boost firm performance?Testing a winning strategy: 1) Goodness of fit test: How well does strategy fit the firm’s situation? 2) Competitive advantage test: does strategy lead to sustainable competitive advantage? 3) Performance test: does strategy boost firm performance?Testing a winning strategy: 1) Goodness of fit test: How well does strategy fit the firm’s situation? 2) Competitive advantage test: does strategy lead to sustainable competitive advantage? 3) Performance test: does strategy boost firm performance?Testing a winning strategy: 1) Goodness of fit test: How well does strategy fit the firm’s situation? 2) Competitive advantage test: does strategy lead to sustainable competitive advantage? 3) Performance test: does strategy boost firm performance?Testing a winning strategy: 1) Goodness of fit test: How well does strategy fit the firm’s situation? 2) Competitive advantage test: does strategy lead to sustainable competitive advantage? 3) Performance test: does strategy boost firm performance?Testing...
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...TermPaperWarehouse.com - Free Term Papers, Essays and Research Documents The Research Paper Factory JoinSearchBrowseSaved Papers Home Page » Business and Management Evaluate the Opportunities and Threats Faced by Companies Marketing to Children. in Your Answer Provide Examples of How Firms Are Responding to These Challenges and Opportunities in Their Marketing Strategies. In: Business and Management Evaluate the Opportunities and Threats Faced by Companies Marketing to Children. in Your Answer Provide Examples of How Firms Are Responding to These Challenges and Opportunities in Their Marketing Strategies. Introduction Children form a significant consumer group in their own right and, in addition, influence the purchasing choices of their families and friends. They represent a huge market offering significant financial returns to companies. Children are also the adults of the future so building a strong bond with a child could lead to significant customer lifetime value to a company. However there are inherent risks in marketing to children bound up in the fact that many feel that it is intrinsically unethical to market to children. As a result of this, companies that market to children and get it wrong face a moralistic and significantly stronger backlash. Applying a PESTLE analysis highlights the external factors companies that market to children face; Political - Changes in government and legislation affect ways in which companies can approach marketing...
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...Introduction Children form a significant consumer group in their own right and, in addition, influence the purchasing choices of their families and friends. They represent a huge market offering significant financial returns to companies. Children are also the adults of the future so building a strong bond with a child could lead to significant customer lifetime value to a company. However there are inherent risks in marketing to children bound up in the fact that many feel that it is intrinsically unethical to market to children. As a result of this, companies that market to children and get it wrong face a moralistic and significantly stronger backlash. Applying a PESTLE analysis highlights the external factors companies that market to children face; Political - Changes in government and legislation affect ways in which companies can approach marketing for children and young people. In December 2003, the British Secretary of State for Culture, Media and Sport, Tessa Jowell MP, asked the British Office of Communications (OFCOM) to consider proposals for strengthening the rules on television advertising of food aimed at children, with new restrictions put in place in 2007. Economic - In the US, companies are estimated to spend $17billion a year marketing to children, (1) an increase from the $100 million spent in 1983. (2) A de facto recognition of the great economic value children represent. Social – Marketing to children and young people has become a topic for...
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...When we think of entrepreneurship, we often think of small, start-up firms. Describe how a large corporation in an established industry can be “entrepreneurial” and discuss how Peng’s entrepreneurial strategies apply in this situation. Entrepreneurship as a scholarly field seeks to understand how opportunities to bring into existence future goods and services are discovered created and exploited, by whom and with what consequence (Venkataraman,1997). Entrepreneurship is nothing but the identification of those resources which were previously unexplored. Entrepreneurial opportunities do not only take the form of new products and services, they can also take the form of new methods of production, new raw materials, new ways of organising and new markets. For large corporations in an established industry, entrepreneurship is a big challenge. The companies must innovate and develop new ideas in order to motivate their leaders for entrepreneurship. Two steps must be followed to achieve this goal. Firstly, companies must periodically evaluate its product performance and need to have complete information about the environment in which it is operating. Secondly, in order to achieve success, the companies must experiment with their existing products. They should have their one face focused on the old strategy and the other seeking out the new one. When an existing company starts new venture, it face lot of barriers because it is a risky proposition. They must consider industry’s condition...
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...STRATEGIES 5.3 Strategies In the previous section you have learnt the objectives for an organization and its key elements. However for an organization to achieve its objectives, the organization must craft or formulate strategies. The strategies are crafted for the purpose of achieving the objectives. In this way the organization will be able to achieve its mission and move closer to its vision. As you have learnt in the first module there are three levels of strategy. In this module we will further discuss the three levels of strategy. 5.3.1 Corporate strategy The following corporate strategy is discussed based on David (2007). For an overview of the different types of corporate strategy you can refer to Table 5.2. Table 5.2: Overview on Different Types of Corporate Strategy |Strategy |Definition | |Forward integration |Gaining ownership or increased control over distributors or retailers | |Backward integration |Seeking ownership or increased control of a firm’s suppliers | |Horizontal integration |Seeking ownership or increased control over competitors | |Market penetration |Seeking increased market share for present products or services in present markets...
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...Definitions and illustrations of the concepts of Pareo and Nash equilibria. PARETO OPTIMUM/EQUILIBIRUM/EFFICIENT The idea of pareto optimum runs through all aspects of economics, for example, comparing different tax rules, and not just in game theory. It gained currency as a test to be applied in selecting economic policy as a result of a contradiction in the theory of the market deriving from the philosophy of utilitarianism. Utilitarianism could be construed as a justification for the oppression of the individual in the name of the greater good of society. This approach sits uncomfortably with the libertarian ideals of market economics, which put the individual above church and the (feudal) state, and by implication above the monarch in direct challenge to feudal rule. (see, eg, http://www.google.co.uk/#hl=en&source=hp&biw=1126&bih=425&q=Shanti+Chakravarty+neoliberal&btnG=Google+Search&aq=f&aqi=&aql=&oq=Shanti+Chakravarty+neoliberal&fp=45f26fda8f9185dd). To get around the difficulty posed by classical utilitarianism, market efficiency theorems came to rely on the idea of ordinal utility which does not allow for inter-personal comparison of utility. The paretian criterion explicitly rejects inter-personal comparison in arriving at economic policy. The paretian criterion is focused entirely on the individual. A pareto optimum is a state of affairs whereby NO ONE, no individual, can be made better off without making someone worse off. Since no one is above anyone in the...
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