Policy and Strategy in Global Competition Essay Example for Free

Policy and Strategy in Global Competition Essay Discussion Question 6.1: What are some drawbacks and risks to a broad generic business strategy? To a focused strategy? The two generic business strategies are differentiation and cost-leadership strategies, and they are fundamentally different from one another, both with their own drawbacks and risks (Rothaermel, 2013). These strategies are referred to as â€Å"generic† because they may be used by any type of organization (Rothaermel, 2013). The drawbacks and risks of a differentiation generic strategy is its viability â€Å"is severely undermined when the focus of competition shifts to price rather than value-creating features† (Rothaermel, 2013, p. 155). This tends to occur when there is a level of acceptable quality which has emerged as a standard (Rothaermel, 2013). Organizations pursuing this strategy also need to ensure that they are not adding features which add cost but no â€Å"perceived value in the minds of consumers† (Rothaermel, 2013, p. 155). The drawbacks and risks of a cost-leadership strategy are that new entrants may erode the low-cost leader’s margins because of the â€Å"loss in market share while it attempts to learn new capabilities† (Rothaermel, 2013, p. 154). Also, the converse of the differentiation strategy issue applies, in that organizations need to ensure that the â€Å"focus of competition shifts from price to non-price attributes† (Rothaermel, 2013, p. 154). The organization needs to also be careful not to allow the value of the product or service to fall below the low-cost at which the product or service is offered (Rothaermel, 2013). A focused strategy applies the same concepts as the generic strategies above, but the focused strategy utilizes a more narrow competitive scope than the generic strategies (Rothaermel, 2013). The competitive scope refers to the market segment at which the product or service being offered is aimed (Rothaermel, 2013). An example would be the broad market of wristwatches to the more focused market of luxury watches  (Rothaermel, 2013). Discussion Question 6.4: Create examples of value chains for three firms: one using cost leadership, another using differentiation, and a third using an integration business-level strategy. A value chain is the process in which â€Å"a firm engages when transforming inputs into outputs† (Rothaermel, 2013, p. 95). It is made up of primary activities, which add value directly, and support activities, which add value indirectly (Rothaermel, 2013). Primary activities include production phases, sales, marketing, and customer service (Rothaermel, 2013). Support activities include research and development, â€Å"information systems, operations management, human resources, finance, accounting, and general management† (Rothaermel, 2013, p. 96). Cost leadership firm: As discussed above, a cost-leadership strategy involves maintaining the lowest price of a particular service or product (Rothaermel, 2013). A prime example of a cost-leadership firm would be Walmart (Rothaermel, 2013 ). Walmart’s value chain would begin with its supply chain, which is made up of suppliers with whom Walmart has negotiated the lowest price possible, at a volume sufficient enough to fill its shelves (Rothaermel, 2013). The next link in the value chain would be Walmart’s distribution and operations. Walmart has been able to reduce packaging and mileage, allowing for significant cost savings (Porter Kramer, 2011). Walmart’s sheer size creates significant savings through economies of scale (Rothaermel, 2013). Lastly would be marketing, sales, and service, in Walmart’s value chain. Walmart focuses on â€Å"Saving people money so they can live better†, and continues to take innovative steps to do so (Walmart, 2015). The company has even created a mobile app called the â€Å"Savings Catcher† which allows customers to scan their Walmart receipt to capture savings that they would have missed otherwise (Walmart, 2015). This is a marketing effort which impacts sales and services in a major way. Differentiation: Apple is an ideal example of an organization utilizing a differentiation strategy (Rothaermel, 2013). Apple seems to be able to â€Å"create customer needs (even if customers are initially unaware of the need)† (Rothaermel, 2013, p. 155). Apple’s value chain will differ from Walmart, and other cost-leadership strategy firms, in that it will have a greater focus on the development of their products and in its marketing and customer service. It will focus on product development in an effort to ensure their products continue to set the bar in their respective  categories (Rothaermel, 2013). Apple will also focus on marketing and customer service to ensure that new and current customers are aware of the products’ areas of superiority (Rothaermel, 2013). Integration Business-Level: Hewlett Packard (â€Å"HP†) is an example of an organization that is using the integration business-level strategy, which is a combination of the differentiation and cost-leadership strategies (Rothaermel, 2013). HP utilizes this strategy because Apple holds the differentiation position while Dell holds the cost-leader position in the mobile devices market (Rothaermel, 2013). For this reason, HP must seek to implement both the cost-saving strategies in supply chain management, like Walmart, and the differentiation strategies in product design, like Apple (Rothaermel, 2013). There are differences, however, in the value chain between HP and the two companies above. HP has sought to cut costs by trimming its workforce, thereby helping in its cost-leadership strategy (Rothaermel, 2013). In regard to its design efforts, HP has improved â€Å"the differential appeal of its product and service offerings† (Rothaermel, 2013, p. 162). Chapter 7 Discussion Question 7.1: What strategy might the firm use to unseat Windows in this market? Although the small firm has developed a new product, it is a product which will be introduced into an industry which is most likely in the growth or maturity stage of the industry life cycle (Rothaermel, 2013). As such, the small firm’s best strategy would be to employ a cost-leadership strategy (Rothaermel, 2013). This is the best option because both the differentiation and cost-leadership strategy are viable options during the growth stage, but firms that adopt the cost-leadership strategy which dominate during the maturity stage (Rothaermel, 2013). The small firm’s new product is likely considered a process innovation, as it seeks to accomplish the same tasks in a more efficient manner (Rothaermel, 2013). Discussion Question 7.2: How does the industry life cycle affect business strategy? Detail your answer based on each stage: introduction, growth, maturity, and decline. During the introduction stage of the industry life cycle, the companies which tend to be, and stay successful, are innovative and tend to be few  (Rothaermel, 2013). As such, the strategy used during this stage is likely the differentiation strategy, since firms are seeking to establish the uniqueness of their products’ features (Rothaermel, 2013). The growth stage tends to allow organizations to be a little freer to decide which strategy would work best for them (Rothaermel, 2013). It is during this stage that a dominant design, or standard, is established, which means that firms may choose to differentiate their product, or choose to attempt to offer the same type of product at a lesser cost (Rothaermel, 2013). The maturity stage begins to see less design changes and more process innovations within the industry (Rothaermel, 2013). For this reason, it is cost-leaders that tend to succeed during this stage (Rothaermel, 2013). The decline stage differs from those above, as it introduces four strategic options for firms to pursue: (1) exit, (2) harvest, (3) maintain, and (4) consolidate (Rothaermel, 2013). The exit strategy is precisely as it says: it involves the firm choosing to leave the market to pursue other endeavors (Rothaermel, 2013). The harvest strategy means that the firm will still sell the product or service, but will reduce the level of investment in its maintenance and development (Rothaermel, 2013). The maintain strategy is also exactly what it sounds like: the firm continues offering the product or service at the same level as it has been, despite the declining demand (Rothaermel, 2013). The consolidate strategy involves the purchasing of rivals in an effort to shrink the industry, which provides firms employing this strategy to reach near-monopolistic status (Rothaermel, 2013). Discussion Question 7.4: Why are standards important in many industries? As standards get adapted and become dominant, how does this process influence the competitive nature of the industry? Standards are important in many industries because the firm whose product becomes the standard â€Å"tends to capture a larger market share and can persist for a long time† (Rothaermel, 2013, p. 175). Once the standard is adopted, the market tends to focus more on process innovation than on product innovation (Rothaermel, 2013). This means that firms are focusing their RD efforts â€Å"on process innovation in order to improve efficiency† (Rothaermel, 2013, p. 177). Since the standard tends to be set during the growth stage,  either the differentiation or cost-leadership strategy is used, for the reasons discussed above (Rothaermel, 2013). Chapter 8 Discussion Question 8.1: When Walmart decided to incorporate grocery stores into some locations and created â€Å"super-centers,† was this a business-level strategy of differentiation or a corporate-level strategy of diversification? Why? Explain your answer. Walmart’s incorporation of grocery stores into some locations represents a corporate-level strategy of diversification, as opposed to a business-level strategy of differentiation. While business-level strategy typically involves individual markets, corporate-level strategy encompasses decisions which impact multiple markets and industries simultaneously (Rothaermel, 2013). Diversification occurs when a firm seeks to increase â€Å"the variety of products or markets in which to compete† (Rothaermel, 2013, p. 216). By incorporating grocery stores into some of its locations, Walmart made a corporate-level strategy decision to diversify the products offered in its stores, and the markets within which it chose to operate (Rothaermel, 2013). Chapter 9 Discussion Question 9.1: List some specific advantages of this acquisition for Live Nation. Do you see any downside to the merger?  Some advantages to the acquisition of Ticketmaster by Live Nation include: a reduction in competitive intensity, lower costs, increased differentiation, and access to new markets and distribution channels (Rothaermel, 2013). While these are some possible advantages for Live Nation, mergers and acquisitions do not result in a competitive advantage the majority of the time (Rothaermel, 2013). Shareholder value is usually destroyed after a merger and acquisition, and it is only the shareholders of the acquired company that tend to benefit (Rothaermel, 2013). Chapter 10 Discussion Question 10.1: How might your relationship change as the MNE moves from Globalization 2.0 to Globalization 3.0 operations?  Globalization is the process of increasing â€Å"integration and exchange between different countries and peoples worldwide† (Rothaermel, 2013, p. 271). Globalization 2.0 refers to growing business globally from 1945 to 2000 (Rothaermel, 2013). It involved large foreign direct investment, with the  state-side corporate headquarters directing strategic goals and resource allocation (Rothaermel, 2013). Globalization 3.0 covers the time period from 2000 to the present (Rothaermel, 2013). Tremendous strides in technology allow for less need of foreign direct investment, and this stage has allowed the MNE to reorganize as a â€Å"global enterprise with centers of expertise† (Rothaermel, 2013, p. 273). As a small firm supplying a product or service to an MNE, the degree of change which would arise in our relationship, as the firm moved from Globalization 2.0 to Globalization 3.0 operations, would depend heavily on the location and type of services or product provided. The MNE would likely become more dependent on technology for telecommuting and would seek to operate twenty-four hours a day, year round (Rothaermel, 2013). As such, if our service or product was related to the technologies being implemented by the MNE, then the firm would become a larger player in the MNE’s operations. However, if the MNE was able to tap into its own knowledge-base to provide the services or product our small firm provides, then we would no longer be needed by the global giant. References Rothaermel, F. T. (2013). Strategic Management. New York: McGraw-Hill/Irwin. Walmart. Our story. Retrieved on January 25, 2015, from http://corporate.walmart.com/our-story/

Essay --

The Roman orator once stated, â€Å"Outside of my home is where my life is made† or in the Roman language he said, â€Å"Ex mei domus est ubi mei vita factavest†. He understood that most of our lives take place other than inside our homes. Also, it is important for people to enjoy the natural environment for several reasons. First of all, around the world lumberjacks are cutting down trees to make room for houses, office buildings, movie theatres, malls, and much more. The company who has told these lumberjacks to do this hideous deed does not know that by carrying out this action, the company and its employees are taking away millions of animal habitats. It varies from the Bobcat to the Grey Squirrel and animals like humans need shelter, food, and water to survive but without it, they die. People being able spend time in the outdoors will see what mankind is doing to these innocent little animals and might consider not to demand things that might hurt someone else. They will soon appreciate the natural environment and what Mother Nature has to give to the world. Another reason is that the p...

M1a3 livoria sandwiches, inc. Essay

This report examines strategic alternatives that would help owners of Livoria Sandwiches Inc. gain competitive advantage in a growing market, achieve its profitability target and maintain its strong reputation of having a high quality and unique product in the industry. This report provides an analysis of the company’s current situation, identify strategic issues and analyze strategic alternatives. These also provide recommendations as to courses of actions the brothers should adopt to reach their goal, and proposed implementation plan. CURRENT SITUATION Stakeholders Preferences: * Go franchising (Paul) * Enhance vegetarian menu (Sam) * Preserve quality and control (Sam) * Realize $1.1M net income by 2015 (both Paul and Sam) *Avoid using line of credit (both Paul and Sam) Constraints: * Cash * One supplier of all store requirements/ingredients * Bank requires $20,000 minimum cash balance at any given time * Number of hours work * Working space Environmental Scan : SWOT Analysis Exhibit 1 Current Financial Assessment – Lowest profit of .29% compared to industry wide due to $500,000 contingent liability booked in 2012. Removing this extraordinary item would result to 24% operating income which is higher than Dawkins industry benchmark – 52.93% highest Contribution margin than industry average – High growth % versus set by the industry – Available line of credit -Impressive performance among competitors whether franchising or non-franchising -Debt free Key Success Factors: * High-quality traditional custom-made sandwiches developed through generations *Loyal client base and recognition * Effective obsolescence plan * Zero Debt Key Risks: Losing market share and competitive advantage Limited experience how to compete and to grow the business Just one supplier to sustain store operation/production MAJOR ISSUES 1. Increase profitability 2. Growing market STRATEGIC ALTERNATIVES 1. Expanding without franchising 2. Open Franchise Agreement ANALYSIS OF STRATEGIC ALTERNATIVES I. EXPANDING WITHOUT FRANCHISING PROS CONS Develop product lines by introducing vegetable sandwiches (Appendix 4) shows an increase in cash inflow from 155% in 2013 to 319% in 2015 May cannibalized existing/old product lines which the company is being known for Attracts customers with other preferences and may compete broadly in the industry by branching out in new locations Requires additional training cost, space, business strategy and building customers recognition, hire professional help which may cause additional fund or used available line of credit Established and maintained more suppliers that would provide more options and huge discounts in large orders May affect existing quality standard of the custom-made sandwiches Discover more hidden opportunities from existing operations, by adding value to the product, and improve training the staff Financial Assessment if expansion without franchising: a.Total CM% increase from 2012 52.93% to 60.50% in 2015 (Appendix 3) b. Total profit show a positive increase from 18% in 2013 to 31% in 2015, far reaching the brothers’ preference of $1.1 M in 2015, Appendix 3 showed $1.4 M net profit c.Return on investment assuming initial cash balance net of the minimal requirement ($20,000) was use to introduce new line of menus showed a remarkable result of 21% ROI in 2013 to 249% return in 2015, Appendix 3 d.Cash budget projections with new line of products showed increase cash inflows from $556K (2013),$869K (2014) and tremendous increase of $2.3 M by the end of 2015 – Appendix 2 e. Appendix 4 showing Statement of Cash Flow present a positive economic growth, from $423K cash inflow generated in 2013 155% increase in cash to $1.9M in 2015. Calculating IRR for the next 3 years showed 478% return. II. OPEN FOR FRANCHISE AGREEMENT PROS CONS 1. opportunity to grow faster than would be the case of training employees create internal marketing strategy, sales and distribution 1. significant disadvantage is loss of control, though substantial restrictions may apply because of franchise agreement, franchise is still considered a 3 rd party who would seek to maximize return of investment at your expense 2. use of franchising fee/capital will expedite growth/network of the company than finding one for the business 2. part of your profit is use to utilized to promote your franchise/s 3. franchising motivates franchisee to excel and go beyond to succeed due to incentive scheme and growth is dependent upon the success of your business 3. substantial product knowledge and expertise has to be shared concerning your business although restrictions may apply but control over it is difficult to enforce and monitor 4. will increase purchasing power as franchising network grows and that eventually reduced cost to operate, gain profitability from small units 4. skills required to monitor, manage and support franchise/s are far different than handling your own employees 5. may thrive from downturn like recession compared to non-franchise business 5. standard sets in doing franchise may alter your consumer taste. RECOMMENDATION Both alternatives if done in a well thought out plan may manage company’s growth strategically. Since it can be done drastically and uncontrolled way major casualties of which could be customer dissatisfaction and will adversely affect cash flow. IMPLEMENTATION PLAN So it is necessary therefore to manage the growth process so we can obtain benefits in a medium and long term. The following may be executed: 1.Plan your expansion, not just by reacting to the circumstances but creating a solid plan, Ansoff Matrix (Exh 2) can be a helpful tool in creating this roadmap. 2.Don’t over expand, which is one of the biggest danger in growth phase. A 3 to 5 year projections plan capacity is doable and allow additional 10% capacity over and above that for challenging times. 3.Get professional financial advice because expansion entails monetary implications, with expert help we can reduce the risk and address issues right away. 4.Shop around, look for the target-location where marketing the product may established the same acceptance by the customers. 5.Develop a project management for the expansion in a formal way to uncover other possibilities 6. Keep customers informed about expansion plan and what to expect, when disruption may take up and how will the company will deal with it. 7.Announce the completion of the expansion. Inform target customers about the increase capacity, new menu and additional services to be offered. A good marketing device will help the company introduce this expansion in a high note.

4 Tips for Completing Your Homework On Time

Homework, a necessary evil according to many teachers, has a lot of students tied up in knots. Some students can never seem to get things turned in on time. In fact, many students do not even realize that they  have  homework  until a friend from class texts them or they overhear someone in the halls talking about Ms. So-and-sos terrible, no-good, awful, horrifying worksheet for Chemistry that is due the next day. These five tips for completing your homework on time, however, should help you get that homework finished on time.   Tip 1: Rely On a Planning System Most of you by now are well acquainted with a homework planner. It has the dates, the school subjects you are taking, and a whole lot of blank space to write down your homework assignments. Use these planners if you have them. Writing with an actual pencil or pen may seem almost archaic what with technology virtually doing everything for us, but the kinesthetic movement of writing down an assignment into one of those little squares (Language Arts test tomorrow - STUDY TONIGHT), will actually help solidify that homework in your brain. Plus, when you are packing up to go home at the end of the school day, all you have to do is open up that planner to see which books, folders, and binders need to go home with you so you will not miss out anything that you need to do that evening. Some people  hate  using planners. Theyd rather walk on a pile of crushed glass than actually write something down in a planner. Thats quite all right. One student kept a wadded up piece of paper in his pocket where hed scrawl his assignments. It worked for him, so it was fine. For those of you not keen on planners or crumpled up notes,  your phone can come in really handy. Just download a productivity app and type your assignments in there. Or, keep track of all the work due in the notes section of your phone. Or, snap a picture of the homework board in each teachers class before you head out into the hallway. Or, if you are really dead-set against anything planner-related, then just send yourself a text after each class with your homework assignments for the night. No matter which planning system you prefer, use it. Check off each item once you get it in your backpack. Your brain can only process so much information at a time, so you absolutely must write your homework down if you plan to complete it on time.   Tip 2: Prioritize Your Homework Assignments All assignments are not created equal. Its strongly recommended you use a prioritizing system when you sit down at home with your homework. Try a system a little  something like this: A 1 assignment is of primary importance. Severe negative consequences will occur if this assignment is not completed tonight.Examples: Studying for a major test coming up tomorrow. Finishing a major project due tomorrow. Writing an essay worth a LOT of points that is due tomorrow.  A 2 assignment is important. Some negative consequences will occur if this assignment is not completed tonight.Examples:  Studying for a quiz coming up tomorrow. Completing a homework sheet that is due tomorrow. Reading a chapter that is due tomorrow.  A 3 assignment needs to be finished by the end of the week.  Examples: Studying for a spelling test that will occur on Friday. Writing a blog and posting it on the class board by Friday. Finish a book upon which you will take a quiz on Friday.A 4 assignment is ongoing and needs to be finished by test day or the end of the quarter.  Examples: Reviewing chapters for the midterm exam. Working on an on-going project, research paper, or long assignment due at the end of the quarter. Completing a packet that isnt due for two weeks.   Once youve prioritized the work you have to do, complete all the 1s first, then the 2s, moving down as you go. That way, if you find yourself pressed for time because Great-Grandma decided to stop over for family dinner and your mom insisted you spend the evening playing bridge with her despite the fact that you have hours of homework ahead of you, then you will not have missed anything vitally important to your grade.   Tip 3: Get the Worst Assignment Over With First So, maybe you absolutely hate writing essays (But, why, though when all you have to do is follow these essay tips?) and you have a major essay staring you in the face that  must  be completed before tomorrow. You also have to study for a major math test, complete a social studies blog by Friday, study for the ACT  next month,  and finish up your science worksheet from class. Your 1 assignments would be the essay and the math test. Your 2 assignment is the science worksheet, the 3 assignment is that blog, and the 4 assignment is studying for the ACT.   Ordinarily, you would start with the science worksheet because you  love  science, but that would be a big mistake. Start with those 1 assignments and knock out that essay first. Why? Because you hate it. And completing the worst assignment first gets it off your mind, out of your homework cache, and makes everything that comes after it appears to be really, really easy. It will be an absolute  joy  to complete that science worksheet once you have written the essay. Why rob yourself of joy?   Then, once youve completed the stuff due first, you can focus on putting in a little bit of time on the ACT. Easy peasy. Tip 4: Take Planned Breaks Some people believe that sitting down to complete homework means that you literally park your behind in a chair and you dont move it for the next four thousand hours or so. That is one of the worst study ideas in history. Your brain only has the capacity to stay focused for about 45 minutes (maybe even less for some of you) before it goes on the fritz and starts wanting to make you get up and dance the Roger Rabbit. So, schedule your study time with breaks actually built in. Work for 45 minutes, then take a 10-minute break to do whatever it is people your age like to do. Then, rinse and repeat. It looks a little something like this: Homework Time: 45 minutes: Work on 1 assignments, starting with the absolute worst.10 minutes: Get a snack, play Pokemon Go!, surf Instagram45 minutes: Work on 1 assignments again. You know you didnt finish.10 minutes: Do some jumping jacks, dance the Macarena, polish your nails.45 minutes: Work on 2 assignments and maybe even finish with any 3s and 4s. Put everything in your backpack. Completing your homework on time is a learned skill. It requires some discipline and not everyone is naturally disciplined. So, you have to practice checking that you have everything you need for homework when you are still at school, prioritizing your work, plunging into the assignments you loathe, and taking planned breaks. Isnt your grade worth it? You bet it is.