...what PI is trying to establish as it helps other businesses. Perceptionicity was a phrase coined, “to define and encompass all the processes used to align perceptions within organizational and/ or corporate cultures.” (Aguayo, 4). With the help of the City of Influence, this section will help explain why developing relationships are key in order to help this idea of Perceptionicity expand across the business world. These principles include but are not limited to how relationships help motivate, how to develop relationships and the advantages to developing relationships in this way. Relationships Help Motivate Most, if not all businesses have employees. Whether it is one to one hundred thousand, the idea of motivation is applicable to these businesses. As an owner or manager we need to think, “When you are not around what motivates your employees?”(Aguayo, 5). This is important, because often owners or managers are not around! Without proper motivation or any motivation; how will the employee produce positive results for the business? PI can have an impact on businesses by helping their management realize this principle. A way to help with this is to not have relationship arrogance within the company. Relationship arrogance means to “prioritize relationships based on a forecasted return on investment.” (Stewart, 50). In a blunter manner, it is to only make relationships with those whom you can get what you want or need. From City of Influence, chapter...
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...alternative institutional arrangements * Companies in low-growth, cash-flow rich industries such as tobacco and oil have been especially susceptible to the temptations of diversification * Diversification does not reduce “systematic risk” * Porter has 3 essential tests to decide if you should diversify 1. “Attractiveness Test” – the industry you enter must be attractive or capable of making attractive 2. “Cost-Of-Entry” – it must not capitalize all future profits 3. “BETTER OFF TEST” – the new unit must gain an advantage from being linked to the company (P&G & Gillete) * The attractiveness test and cost-of-entry usually cancel each other out. * An argument for diversification is “economies of scope” – This could be tangible resources such as sharing distribution networks, therefore eliminating duplication * You can also explore a brand to achieve “economies of scope” * Also management and organization capabilities = “economies of scope” * You don’t need to diversify to achieve “economies of scope”, you can license 1. ex: - Pepsi selling Starbucks Frappachino * Deciding which way to achieve “economies of scope” is a debate about market contracts (legal documents and watching partner not exploit) vs. internalization (running a diversified company) * If a resource can be licensed out close to real value, do it. * “Parenting Advantage” can help...
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...domestic cement businesses instead of licensing. CEMEX has a great system and needs to protect it from competitors. 2. What value does CEMEX bring to a host economy? Can you see any potential drawbacks of inward investment by CEMEX in an economy? 2. The value is that CEMEX has a “Midas touch” that transforms a cement business into a thriving business. This brings great stimulation to the host economy and also helps in the construction field, which in turn helps to build cities and civilization. No, CEMEX would do well to invest inwardly, yet, CEMEX is better at acquisitioning businesses. 3. CEMEX has a strong preference for acquisitions over greenfield ventures as an entry mode. Why? 3. Acquisitions are solid because the business in the host economy already knows the demographics and the market. CEMEX just has to make the business better with little research. A greenfield venture would prove risky and not cost effective. 4. Why do you think CEMEX decided to exit Indonesia after failing to gain majority control of Semen Gresik? Why is majority control so important to CEMEX? 4. A licensing is very dangerous. CEMEX only have a 25% push with Semen Gresik. It did not have full control and the methods of CEMEX would be exposed and vulnerable to be stolen. CEMEX has a great system and does not want anyone interfering. 5. Why do you think politicians in Indonesia tried to block CEMEX’s attempt to gain majority control over Semen Gresik? Do you think Indonesia’s...
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...Market entry Strategy Glitter is a local company which is currently dealing with fashion accessories, wedding planning and advertising. The company wants increasing its sales by introducing new and modified products on the market. Executives constantly look at new market entry opportunities as a way to generating rapid growth, diversifying their portfolios, and preempting competition—and, occasionally, secretly satisfying their entrepreneurial spirit. There are various ways in which a company can enter in to market. No one market strategy works for all markets. In the case of Glitter, I suggest following strategies are the main entry options open to them. Organic Growth Organic growth strategy involves strengthening your company using its own energy and resources. This is the process of business expansion due to increasing overall customer base, increased output per customer or representative, new sales, or any combination of the above, as opposed to mergers and acquisitions. This approach to company growth is slower than others, but it has relatively low up-front costs, making it an attractive option for small-business owners as Glitter who want to expand their companies but don’t have large amounts of liquid capital. Developing your company’s strengths through organic growth can make you a stronger competitor in your industry. For instance, a company that continually devotes its profits to improving its quality-control department offers increasing value to its...
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...WAI HOE I11008687 GOH SU CHIN I11009206 Step 1 Summary of Case Study Suprema Cars is a marque that offers handmade classic English sports cars catering to people who want something different. Approximately 500 automobiles are fabricated annually in the company's plant in northern England. However, the company turned a loss in the previous biennial; which is resulted from declining sales and market share in the prior half decade. Factory workers' morale fell as they felt underpaid and treated unfairly. They objected to the management's decision to expand production, which will impair the quality of the cars, resulting in the escalation of malfunctioning automobiles in the last few months. Solutions available to curb the situation include tolerating lower profit margins, updating the plant, increasing manufacturing significantly, introducing in the United States, undertaking with a South East Asia engine manufacturer, devising green vehicles and obtaining capital plus skills from a European manufacturer. Step 2 Mind Map of Problems 1. Declining sales and profit Change in consumer preferences Insufficient advertising Low demand 1. Decreased reliability Increase in number of broken cars Substantial increase in production 2. O utdated design Change in demographics Younger generation Market wants more modern models 2. Losing mar ket share Rising competition Declining brand loyalty Uncompetitive prices 3. Insufficient mar ket Only 60 million people in United...
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...January 20, 2009 as the 44th President of the United States of America. Forming a new administration in a distraught economy was not good for a new president to take office, but Mr. Obama was already hard at heals creating policies to repair what the financial market had created. One of his policies he has fought to renew was the global financial crisis. In the aftermath President Obama’s stimulus plan has halted the recession and has slowly reversed its ill effects. Yet, after almost four years the economy is not growing as fast as it should. Hence, President Obama has introduced legislation to urge congress to expand tax cuts for existing small businesses and set aside funds for new ones. This topic is written to identify the pros and cons of the partnership as a form of ownership; the funding options for small businesses with examples of how managerial accounting can help managers with product costing; incremental analysis, and budgeting; the basic components of the marketing process; and the roles of social responsibility and technology in the marketing function. (According to the APA format, section headers needed to identify different sections of the paper.) (i.e. The Pros and Cons of Partnerships) Starting a business as a sole proprietorship by your self is extremely difficult. In most cases there are not adequate funds or resources available to establish the business or the criteria for one to qualify for a business loan. However, in a partnership business as...
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...Twenty Questions You’ll Be Asked By VCs…if you get that far By: Laurence Hayward. V Capital Chicago, IL http://www.vcapital.com Preview: The primary difference between the game "20 questions" and the venture capital interview is that you, the interviewee, don't get to answer the questions with a simple "yes" or "no." Article: Most likely you've played the game “20 questions." As the contestant, you use your best combination of questions, which can be answered with a simple "yes" or “no," in order to discover a piece of information held secret by the other player. The objective is to discover the unknown information with the fewest questions (from the 20 you're allotted), as quickly as possible. This game shares some common traits with a venture capital interview. As the interviewee, you can expect a barrage of questions. You might also feel like the interviewers are trying to box you in as they narrow the choices, in order to hone in on the "answer" as quickly as possible. Recognizing that venture capitalists (VCs) reject a far greater number of deals than they accept, the quickest way for this interviewer to finish the game is to fin d a fatal flaw, a deal-killer, a quick “no.” So, if they reach the twentieth question, you're doing fairly well. The primary difference between the game “20 questions" and the venture capital interview is that you, the interviewee, don’t get to answer the questions with a simple "yes" or "no." So, in order to help you prepare...
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...Name: Ron ID : 02912080 1. What are the advantages and disadvantages of international strategic alliances? How to select partners for cooperation? Definition A global strategic alliance in business is a business relationship between two or more businesses that enables each to achieve certain strategic objectives neither would be able to achieve on their own. The strategic partners maintain their status as independent and separate entities, share the benefits and control over the partnership, and continue to make contributions to the alliance until it is terminated. Strategic alliances are often formed in the global marketplace between businesses that are based in different regions of the world. Advantages of the Global Strategic Alliance Advantages Strategic alliances usually are only formed if they provide an advantage to all the parties in the alliance. These advantages can be broken down to four broad categories. Organizational advantages: You may wish to form a strategic alliance to learn necessary skills and obtain certain capabilities from your strategic partner. Strategic partners may also help you enhance your productive capacity, provide a distribution system, or extend your supply chain. Your strategic partner may provide a good or service that complements a good or service you provide, thereby creating a synergy. If you are relatively new or untried in a certain industry, having a strategic partner who is well-known and respected will help add legitimacy...
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...1. What might be the objective of a museum? Of a firm? Do they have the same objective? Why or why not? According to the text the function of a firm is “to purchase resources or inputs of labor services, capital, and raw materials in order to transform them into goods and services for sale” (Salvatore, 11). Ultimately, this is done to create a profit. The theory of the firm states that the objective of a firm is “to maximize the wealth or value of the firm” (Salvatore 12). A museum, on the other hand, is created to showcase historical pieces such as art of artifacts. None of it is done for the purpose of sale. However different the two organizations are, both seek to maximize the value of their respective agencies. A firm may do it to increase value for shareholders or to maximize profits. A museum may judge its value differently, perhaps in the pieces it acquires and their value as historical pieces rather than present day monetary value to sell. 5. According to Milton Friedman, “Business has only one social responsibility – to make profits (as long as it stays within the legal and moral rules of the game established by society). Few trends could so thoroughly undermine the very foundations of our society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible.” Explain why you agree or disagree with such a statement. Milton Friedman’s idea that the only social responsibility of a business’...
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...seek professional advice or guidance. Those who acquire, or agree to acquire, ownership (in case of goods), or benefit or usage (in case of services), in exchange for money or other consideration under a contract of sale are buyers or purchasers (Business Dictionary Definitions, 2011). However businesses view themselves as having customers, clients, buyers, or purchasers, it is important for them to recognize who they are and what it takes to keep them. Years ago the idea was that satisfied customers had a huge impact on the success or performance of the company. Most researchers defined customer satisfaction in terms of how well the company’s goods or services does compared to the expectations of the customer. Some even view customer satisfaction as a characteristic of a total quality culture in an organization. Studies have found that companies who have a higher percentage rate of keeping their customers are more profitable than those with a lesser percentage rate. Identification of Best Practices Per Evans & Lindsey (2009) in Managing Quality, “To create satisfied customers, the organization needs to identify customers’ needs, design the production and service systems to meet those needs, and measure the results as the basis for improvement” (pg. 190). Likewise, if a company wants to engage customers, then they need to build customer loyalty. A loyal customer will do whatever it takes to do business with the company of their choice regardless of the price of the...
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...Successful Family Business 2 Family businesses are vital in every country and have an important role in our global economy. In many countries, family businesses control significant parts of the economy as well as the economic structure. Family businesses are icons of countries that show their hopes, dreams and entrepreneurial spirit; moreover they aim for self-sufficiency and wealth. Family businesses’ importance and significance were recognized recently but they are considered to be the most prevalent and pervasive form of business. Family businesses are businesses owned and controlled by families that also have at least one of the following characteristics: the business should have three or more active members, family control of 2 or more generations and the current generation intends to pass the business to the next generation of the family. Family businesses having three or more active members is one of the characteristics used to differentiate them from non-family businesses. Family members are more active in the involvement of the enterprise’s everyday activities whether it is the formal or informal employment of family members. Some use the terms “employment”, “involvement” and “activity” of family members or relatives to be considered as a family business. In addition, active family members are needed since family business is built upon a community of people that includes owners, managers, and are family members, and others who are not. Their roles and interests...
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...the expected financials and operations over the next three years. Travel Agency, Inc. (“the Company”) is a New York based corporation that will provide arrangements for travel to customers in its targeted market. The Company was founded by John Doe. 1.1 Products and Services The Company also intends to create, market, and operate a full service travel agency that caters to the travel needs of both individuals and companies. Mr. Doe intends to develop ongoing relationships with a number of local businesses and corporations that have frequent travel needs among their employees, and the business will cater extensively to this segment of the market. The business will receive its revenues from the direct sale of accommodations as well as incentive fees from hotels, airlines, car rental agencies, and other businesses that cater to the needs of travelers. The third section of the business plan will further describe the services offered by Travel Agency, Inc. 1.2 The Financing Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. 1.3 Mission Statement The Travel Agency’s mission is to become the recognized leader in its targeted market for travel arrangement services. 1.4 Management Team The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the travel industry...
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...Case: Netflix’s Business Model and Strategy in Renting Movies and TV Episodes (case 6 in text) 1. How strong are the competitive forces in the movie rental marketplace? Do complete five-force analysis to support your answer. The five force model of competition contains 5 sections of competitive forces which include: suppliers, buyers, potential new entrants, firms in the industry offering substitute products and rivalry among competing sellers. * Suppliers- my analysis shows that this is the strongest force in the industry. They are the one that set market prices and control the distribution of their product. The amount of movies produced all depends on them. If suppliers decide to vertically integrate forward, businesses like Netflix and blockbuster will definitely be wiped out of business. * Buyers- these are the people that accept the market prices. They have no say although the market works to satisfying their needs. They have limited choice in terms of finding other entertainment sources except visual entertainment and therefore accept whatever restrictions the market sets for them. This is not a strong force in this industry. * Potential new entrants- considering that competition is high in this industry and many businesses have set up their market status it is hard for new businesses to enter this market. Netflix is a dominant business in the market and has almost managed to wipe put blockbuster and movie gallery into bankruptcy. Therefore this force...
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...system has worsened as well. High inventory levels are attributed to low credit growth and an increase in banks’ bad debts. Many commercial banks have reduced their interest rates after the State Bank of Vietnam (SBV) decided to cut lending rates in more than three years to help local businesses iron out snags in their current economic difficulties. By far, 15 of Vietnam’s 39 commercial banks have reduced their annual short-term loan interest rates to 7.5%, while 14 others have cut their rates for non-term loans to less than 2% per year. However, only those banks with ample liquidity are able to lend to good customers with low rates, but still had idle funds, and watched their loan growth quota remain under-utilized. In contrast, this is not the situation for banks being weak in liquidity, especially some small banks like BacA Bank, whose charter capital is about VND 3,000 billion. Moreover, due to its small scale, it lacks high prestige among households and enterprises to have more depositors than the larger, which forces them to pay high mobilizing interest rate to attract more capital to maintain its deposit base. In order to retain depositors, larger banks also follow the move, though they do not lack capital for lending. The race of interest rate starts and to win against the giants, the small banks often have to offer higher and higher interest rate to be chosen. Many experts believed it was crazy to raise more and more funds in case of low credit growth and lending...
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...many search engines. It quickly ran away from the pack with its copyrighted PageRank search algorithm which returns superior search results for Web users. It also has developed extensive online advertising services for businesses of all sizes. It’s ability to attract the best and brightest minds in the industry helps make it one of the most successful Web-based businesses ever. Google provides value to the user by using an inexpensive, flexible infrastructure to speed up Web searches and provide its users with a vast array of Web-based services and software tools. Microsoft: Its business model originally focused on the desktop computer running the Windows operating system and Office desktop productivity applications. The company and its products are staples for businesses and consumers looking to improve their productivity with computer-based tasks. While it is trying to expand its presence on the Internet, it still must try to keep customers bound to the desktop computer. 2. Has the Internet taken over the PC desktop as the center of the action? Why or why not? The technology and computing world seems to be approaching the point where the Internet has taken over the PC desktop as the center of action thanks to Google and software-as-a-service companies. The Internet continues to develop and the availability of broadband Internet connections provide more bandwidth for users. Google’s introduction of the concept of cloud computing allows more and more computing tasks to...
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