Mass Marketing and Mass Customization Essay

1. Stragetic Marketing In its strategic role, marketing focuses on business’s intentions in a market and the means and timing of realizing those intentions. The strategic role of marketing is quite different from marketing management, which deals with developing, implementing, and directing programs to achieve designated intentions 1.1 Concept of strategic marketing As shown above, the marketing function plays at different levels in the organization. At the corporate level, marketing inputs (competitive analysis, market dynamics, and environmental shifts) are essential for formulating a corporate strategic plan. Marketing represents the boundary between the marketplace and the company, and knowledge of current and emerging happenings in the marketplace are extremely important in any strategic planning exercises. At the other end of the scale, marketing management deals with the formulation and implementation of marketing programs to support the perspectives of strategic marketing, referring to marketing strategy of a product/market. This time, marketing strategy is developed at the business unit level. Marketing’s Role in the Organization Organizational level Role of Marketing Formal Name Corporate Provide customer and competitive perspective for corporate strategic planning Corporate marketing Business unit Assist in the development of strategic perspective of the business unit to direct its future course Strategic marketing Product/market Formulate and implement marketing programs Marketing management Together, the strategic three Cs form the marketing strategy triangle. All  three Cs-customer, corporation, and competition- are dynamic, living creatures with their own objectives to pursue. If what the customer wants doesn’t match the needs of the corporation, the latter’s long-term viability may be at stake. Positive matching of the needs and objectives of customer and corporation is required for a lasting good relationship. But such matching is relative, and if the competition is able to offer a better match, the corporation will be at a disadvantage over time. In other words, the matching of needs between customer and corporation must not only be positive, it must be better or stronger than the match between the customer and the competitor. When the corporation’s approach to their customer is identical to that of the competition, the customer cannot differentiate between them. The result could be a price war that may satisfy the customer’s but not t he corporation’s needs. In summary, marketing strategy, in terms of these three key constituents, must be defined as an endeavor by a corporation to differentiate itself positively from its competitors, using its relative corporate strengths to better satisfy customer needs in a given environmental setting. 1.2 Example for marketing strategy 1.2.1 Around the World There are a lot of corporations succeed in marketing strategy. The most highlight one is Samsung. Just a few years ago Samsung was struggling to catch up in the smartphone market. Now it makes more of them than anybody else and has Apple on the back foot, in addition to being the world’s largest technology company by revenue. Samsung’s aggression has gotten it into trouble in the past, losing a high profile case to Apple for imitating its design. But the reputation hit and the fine were a small price to pay. The company pivots and produces quickly, coming out with a variety of devices. It sees what the market responds to, pushes successes, and kills failures. And now, rather than just providing a cheaper and lesser iPhone, it’s differentiated itself with larger screens, different features, successful marketing, and delivering what consumers want. The Note is a perfect example. The company found through market research that Asian-language speakers in particular wa nted a device that they could hand-write on, because drawing characters is easier with a pen. The result was a combination phone/tablet (â€Å"phablet†) that’s been an unexpected hit. 1.2.2 Vietnam In Vietnam, the marketing strategy has just started in 2006 (as Vietnam joined WTO). Therefore, marketing strategy could count on the fingers of one hand. But there still are some corporations do that. As we know they are ICP, THP, and Vinamilk†¦ To Vinamilk, at the beginning, Vinamilk just paid their intension in distribution. But later, the most important thing that they concerned about is to build the trust and quality (especially after the melamine incident) As the quality is acquired, Vinamilk makes a further step forward in building the trust in their customers. In order to do that, they aim to produce milk from domestic initiative through developing and supporting farmers in their dairy herds. After the melamine incident, it makes a positive impact on Vinamilk. So that Vinamilk can make a further step to increase customers’ awareness in products’ quality. In 2011, Vinamilk went in making trust by cooperating with well-known milk and nutrition research center s. In that way, Vinamilk can be more proactive in meeting the milk and nutrition which suited the Vietnamese. 2. Mass marketing 2.1 Definition Mass marketing is a market strategy in which a firm decides to ignore market segment differences and appeal the whole market with one offer or one strategy. Companies use mass marketing to promote a single product or service to as many people as possible without differentiating how various segments of the market might respond. For example, a fast-food chain might offer the same hamburger promotion at all of its franchises to create a demand for its new product. The idea is to broadcast a message that will reach the largest number of people possible. By reaching the largest audience possible, exposure to the product is maximized. In theory, this would directly correlate with a larger number of sales or buy in to the product. It is the technique of trying to spread our marketing message to anyone and everyone who are willing to listen. It enables us to reach a wide range of services to take any job that comes on our way. Some examples of mass marketing strategies would be direct mail, yellow page ads, billboards, radio ads, free dinner seminars, etc A mass market is a general population which can be targeted at wide for the sales and marketing of a product. A  mass market is broad in nature and is not categorized by demographics. For example – Automobiles – cars and two wheelers, usually target the mass markets with heterogeneous ages, locations and preferences. . However these mass markets can be further diversified into smaller segments. Products which target a mass market generally vary their promotion strategies according to the market. Example – An automobile company or a telecom company targets a mass market. However each individual might have a different preference for automobiles or telecom service providers. Does within the mass market, there exist individual segments. A smart marketer will try to promote his product to the biggest chunk of the mass market. For example – In soft drinks, Pepsi is targeting the youth, but on the other hand coke is targeting whole families through defining values. Thus coke has a bigger market and it is a more widely recognized brand when compared to Pepsi. 2.2 Purpose The purposes of undifferentiated marketing are several. Mass marketing focuses on high sales and low prices. It aims to provide products and services that will appeal to the whole market.It announces the presence of your small business and products to the general public and attracts as many eyes to the brand as possible. By doing so, it allows you to gauge which segments of the market are most interested in your brand and adjust your marketing to target them more specifically. Mass marketing also saves the expense of market research and targeted campaigns by allowing you to reach the market as a whole and fine tune your efforts later on once revenue is comfortably consistent.Henry Ford realized this when he created the Model T. Before him, the automobile was a niche product for the wealthy. Ford developed a vehicle that was accessible to all and made millions. The reason mass marketing strategies work at all is because at any given time, there is approximately 3 percent of the market that is actively looking for what it is you have to offer. For example, 3 percent of people are actively in the market, as we speak, for a new car, a new home or maybe even a new advisor. Mass marketing strategies rely on this 3 percent to give you a return on your investment. To be successful utilizing these strategies, you have to invest a significant amount of time and money upfront to see any response. Many advisors spend a lot of years and money competing with other advisors in their market over this small â€Å"need help now† market. 2.3 Background Mass marketing has its origins in the 1920s with the inception of mass radio use. This gave corporations an opportunity to appeal to a wide variety of potential customers. Due to this, variety marketing had to be changed in order to persuade a wide audience with different needs into buying the same thing. It has developed over the years into a worldwide multi-billion dollar industry. Although sagging in the Great Depression it regained popularity and continued to expand through the 40s and 50s. It slowed during the anti-capitalist movements of the 60’s and 70’s before coming back stronger than before in the 80’s, 90’s and today. These trends are due to corresponding upswings in mass media, the parent of mass marketing. For most of the twentieth century, major consumer-products companies held fast to mass marketing- mass-producing, mass distributing and mass promoting about the same product in about the same way to all consumers. Mass marketing creates the largest potential market, which leads to lowered costs. It is also called overall marketing. 2.4 Products For certain types of widely consumed items such asnecessities, furniture, artwork, automobiles, residential communities, soft drinks and personal computers,†¦mass marketing approach makes the most sense. Typically, things which are perceived to be necessary to the consumer are subject to mass marketing. Resources of mass marketing provide cost-effective marketing solutions for small and micro businesses, including start-ups. For example, toothpaste isn’t marketed to one particular market segment.It is sold in huge quantities. A company or individual who manufactures toothpaste wishes to get more people to buy their particular brand over another. The goal is that when a consumer has the option to select a tube of toothpaste, he would remember the product that was marketed. Often, this type of general appeal is supported by positive, emotional settings, and a great many reinforcers at the point of purchase. Walk through any supermarket, and you will observe hundreds of food products that are perceived as nearly identical by the consumer and are treated as such by the producer, especially generic items. Many mass marketed items are considered staple items. These are items people  are accustomed to buying new when their old ones are used up. Even â€Å"products† like politicians and services from professions such as law, chiropractic and medicine, are subject to mass marketing. A company that sells affordably priced products that appeal to a wide variety of consumers. Mass market retailers are not necessarily known for selling durable, high-quality merchandise or for having exceptional customer service, but they do meet consumers’ wants and needs, at reasonable prices. Examples of mass market retailers include big box stores such as Target, Sam’s Club and Best Buy, as well as brands like Levi Strauss and Gap, and e-retailers like Amazon. Supermarket, drugstore, mass merchandise and warehouse chains, are all considered mass market retailers. 2.5 Shotgun Approach The shotgun theory is an approach of mass marketing. It involves reaching as many people as you can through television, cable and radio. On the Web, it refers to a lot of advertising done through banners to text ads in as many websites as you can, in order to get enough eyeballs that will hopefully turn into sales. An example of shotgun marketing would be to simply place an ad on primetime television, without focusing on any specific group of audience. A shotgun approach increases the odds of hitting a target when it is more difficult to focus. 2.6 Strategy â€Å"All things to all people† It is the technique of trying to spread our marketing message to anyone and everyone who are willing to listen. A truckload of general advertising is done to the mass market in the hope that some of them will hit a target. It enables us to reach a wide range of services to take any job that comes on our way; and ultimately we become a â€Å"jack of all trades and a master of none†. Mass marketing quite simply targets the masses without any concern over addressing different needs and desires of different segments of the population. Mass marketing can be effective for products that are helpful to the majority of people. Advertisers often combine more than one type of ad around a single theme or slogan to help the product become more familiar with consumers. Companies aim mass marketing at the total market for a particular product. With an un-segmented strategy a firm develops a single marketing mix – one combination of product, price, promotion and  distribution. Compan ies that adopt mass marketing take an undifferentiated approach that assume that all customers in the market have similar need and wants that can be reasonably satisfied with a single marketing program. Coca-Cola, for example was available in only one flavor and in one type of bottle. Another example of mass marketing was Henry Ford’s offer to consumers of only one car Model-T in just one color. 2.7 Advantages and disavantages 2.7.1 Advantages Product Life Cycle A mass marketing approach may offer an advantage in cases where a product has reached the end of its life cycle. A product’s life cycle charts its course within a consumer market, from its first appearance on the market to increasing sales followed by its eventual decline in popularity or demand. A decline in sales typically marks the end of a product’s life cycle, regardless of what type of marketing approach you used. At the beginning of the life cycle, businesses may use mass marketing approach to obtain the most sales possible from targeted consumer markets. Once sales start to slow, these marketing approaches show little potential for increasing sales. By using mass marketing approach at the end of a product’s life cycle, businesses may increase the likelihood of sales by making a product available to other market sectors. Economies of scale When applying the mass marketing approach, the companies are able to produce in large scale. This requires that companies have to invest in the modern equipment, improve leadership. Moreover, the production processes need to be standardized in order to gain the economies of scale. For example: Advertising messages by mass media can reach millions of viewers in a single showing, and economies of scale make mass distribution cheaper than regional deliveries Spreading of risk When investment in capital is scattered, the companies can minimize changes of demand. For example, if one segment is crashed, this is likely to be compensated by other segments. Brand awareness and value When applying mass marketing approach, your brand will appear in many segment markets. This will help your company build a strong brand. For example: Hoang Anh Gia Lai has been a wood manufacturing company since 1990. In 2009, this company invested in estate and succeeded quickly thanks to this famous brand 2.7.2 Disadvantage Marketing cost When applying mass marketing approach, companies have to implement the promotion strategies such as: advertising, public relation (PR). For example: when introducing toothpaste product P/S, Unilever implements advertising campaign on national television channels, even on local television channels. According to experts, brands that are as large as P/S, are advertised 30-40 times in a single day on VTV3 channel. The price of a single advertising range is between 7 million vnd to 40 million vnd in accordance with advertising time. It is just a single channel; in fact, P/S has also been advertised on VTV1, VTV2, and many local channels such as DRT†¦ And in addition, Unilever also has to pay for banner cost, labor cost†¦ And P/S is also a single Unilever’s product. Therefore, Unilever spends millions of dollar a day on advertising. Research and development cost and fierce completion Today, technology has become the most important factor in business. This factor is vital factor especially for market leaders. In many cases, the new products of competitor are able to dominate market, even are able to make your products disappear. For example: Kodak is a photography company. While Kodak is competing with Fuji, a photography company from Japan, the invention of digital camera almost makes those companies to be in bankruptcy. Another example, Unilever and many detergent manufacturers are anxious about the invention of ultrasonic washing machine. This may lead to the disappearance of Omo (products of Unilever) Market research cost Today, when the supply of many commodities overcomes the demand, the society changes from manufacturer society to consumptive society. The marketing concept also changes. The manufacturers, now, have to find out the needs of customer, and try to satisfy them. The manufacturers no longer pay attention  about how to find out markets to sell their products, therefore, they try to produce as much as possible. And in order to satisfy diverse needs, companies have to spend much time and money on market research activities such as population census, level of economic growth, demography, culture, polity, national policy†¦ 3 Mass customization 3.1 Definition Mass customization was first popularized in 1993 by B. Joseph Pine II in his book â€Å"Mass Customization – The new Frontier in Business competition† and defined as â€Å"developing, producing, marketing and delivering affordable goods and services with enough variety and customization that nearly everyone finds exactly what they want† Indeed, mass customization did not become a tangible innovative business trend until the second half of the 2000’s thanks to rapid manufacturing and information technologies and more structured customer-manufacturer interaction methods A completed definition appeared. Mass customization, in marketing, manufacturing and management, is the use of flexible computer-aided manufacturing systems to produce custom output. Those systems combine the low unit costs of mass production processes with the flexibility of individual customization. Mass customization has become particularly important within the fashion industry, where ther e is an increasing demand for personalized clothes, handbags, shoes etc. 3.2 Characters of mass customization †¢ It is an evolution of mass production, which seeks to answer customers’ needs, requirements and wishes for having individualized and personalized goods and services. This also implies the production of high quantity at low costs. †¢ It leverages on new information technologies and innovative manufacturing processes to ensure high volumes at low cost; It produces goods and services to meet individual customer’s needs with near mass production efficiency† 3.3 Key success factors of mass customization Customer sensitivity. Refers to customer demands for individualized and customized products, which depends on two main factors: 1) Degree of customer’s sacrifices (how much he is willing to pay and how long he is willing to wait); 2) Firm’s ability to produce according to customer’s  specifications within a reasonable time and cost limits. Process amenability. Manufacturing technology and information technologies must be available for mass customization systems and products must be designed to be customizable. Competitive environment. Market conditions will support competitive environment. Being the first to implement mass customization in a particular industry may lead to gaining competitive advantage but when mass customization becomes more common, there are fewer opportunities to achieve that. Organizational readiness. Organizational readiness refers to the firm’s attitudes, culture and resources. The firm’s management should be open to new ide as and aggressive in competitive advantage and the promotion of a culture through the development of networks, new products and process technologies. 3.4 Example In 1996, Dell drew people’s attention to completely-new computer marketing strategy called â€Å"Build-to-order†: Marketers must first consult with customers to determine their requirements, then realize exactly what customers need and finally, use the information in product design processes. Dell Computer was also eager to use this method very successfully in building a database for their website. They allowed individual customers to assemble and purchase computers and accessories directly via the website www.dell.com. In 2000, Dell’s revenue reached $ 50 million per day. In 2001, Dell surpassed IBM to become the multinational computer technology company having the largest market share in the world. The success of Dell shows trends and demands to shift from mass production to mass customization. A typical example can be found easily through fast food outlets providing â€Å"burger† and chips at a low price. However, until 1995, this model became backward to market growth. Therefore, McDonald’s quickly shifted from mass production to customer requirements. McDonald’s added meatballs, pizza, sandwich, apple pies and ice cream to their menus. Moreover, the menu is suitable for each country and is written in many languages. For example about Big Macs (hamburgers sold by McDonald’s) in India where the majority of people are Islamic, pork is replaced with lamb on the menu, and drinks also diversify with beer and wine beside Coca Cola , Pepsi and 7 Up . The size of the glass also varies by regions: large glasses of water in the U.S. and smaller glasses in Asian countries. The present success of McDonald all  over the world shows a good change in their strategy. 3.5 Advantages and disadvantages 3.5.1 Advantages Benefits to the economy Applying the method â€Å"build to order†, no goods are actually made until the buyers send an order. Unwanted and out-of-date products, which are wasted to our limited resources, are eliminated. Because mass customization uses â€Å"build-to-order†, which requires a very short lead time from the receipt of the customer’s order to the delivery of the product, speedy response and perfect coordination of all types of input is necessary. Therefore, it would be suitable for the company’s functional departments such as procurement, manufacture, assembly and logistics to be addressed which market nears the customer. Specalization will save our resources because it reduces cost and time despite of mass production. Blue-collar workers (people who do physical work in industry) in developed countries will benefit as they have more jobs in their local without going to any far countries. Manufacturers, who always want to sell to large populations of developing countri es, believe that their local subsidiaries are able to independently meet the needs of that market without direct producing from parent company. Therefore, developing economies will also benefit as more knowledge-based jobs moved to their countries. Benefits to manufacturers By applying mass customization and â€Å"build to order† strategies, products are only manufactured when a customer order is received. As nothing is produced until an order is received, there are huge saved successes to be harvested by eliminating of unsold goods, goods in process and raw materials. In the case of Dell, payment is collected upfront when the customised order is received. Therefore, the company’s cash flow position improves and financial risk is reduced. Tseng and Jiao (1996) pointed out that in high volume production; mass production shows an advantage due to the economy of scale. However, with low to medium volume production, where production quantity cannot give remarkable result to buyer’s profits, customers are willing to pay more because their special and divers needs are satisfied. Consequently, small and medium enterprises, that have difficulty achieving economy of  scale, have the most to gain from mass customisation. In taking a custome r order, closed information about the customer’s preferences is collected thus generating a profile of the customer. By keeping profiles of all customers in a database, the company is able to design a â€Å"customised marketing† strategy for each individual customer. More importantly, knowledge of the customer’s profile allows the company to better manage the relationship it has with the customer. This stage also helps the company reduce the cost for market research. Benefits to customers The most obvious benefit to the customers is that goods that can meet the exact needs and wants of an individual are available at prices comparable to those of standard mass produced goods. Fiore et al. (2001) state that in the fashion apparel industry, the process of configuring and designing clothes by themselves proves to be a stimulating experience. The sheer novelty, intriguing application of advanced technology such as body scanning and pleasure from involvement in the creative process may prove as desirable as the apparel itself. As build to order becomes the norm in industry, customers can expect shorter lead-time to delivery. Long wait for goods due to out of stock situation would no longer occur. 3.5.2 Disadvantages Drawbacks for the customers A major concern of customers is whether there would be higher prices for customised product. In short to medium term, pricing would likely be higher than mass produced goods. In the longer term, when mass customisers compete among themselves, prices are expected to fall. A key disadvantage of customised goods is the difficulty in comparing between suppliers. Different suppliers rarely offer the same options for their goods. Therefore, some benefits of sharing information between customers are lost. Consequently, the lack of comparison and competition may result in higher prices for customised products than mass-produce ones. Suppliers are likely to apply value-based pricing rather than cost-based pricing. In value-based pricing, price is set based on the feeling value that customers think about goods. In cost-based pricing, the price is set based on the actual cost of production. However, this disadvantage to the customer is an advantage to the manufacturer who gains a higher profit on customised product. Because the  customer is given multiple choices product, identifying the real cost of the customized product may prove difficult. When the number of product options increases, so does the complexity of cost estimation. To separate the risk of costing, manufacturers may place higher profit on all features of the products. Lack of product knowledge by some customers may result in wrong details and unwanted products. There is also increase in the performance of the customised product due to lack of comparison. Helping customer to learn how to configure the products is an additional unpredicted cost. Entering into the privacy of customers can be a major concern. Personal information is extracted during product detail stage and set database. The information is then sold to other suppliers without previous agreement of the customers; this company may have to be faced with punishment. Drawbacks for manufactures & the economy Although there are many substantial researches into the subject, there are very few actual successful organisations that a working framework can be modelled coherently. A key problem of mass customisation is deciding on the options for customers. Gilmore and Pine (1997a) warned that customisation options should be restricted to limit options for customers to choose, in order to avoid wasteful efforts. Another difficulty is too definite the amount that the customer is willing to pay for functional goods. Mass customisation faces the hard task of changing their organisational structure and culture. When the progress go wrongly, factory productivity and capacity planning can be seriously affected. The complexity of supporting multiple types of product can result in increased cost due to: lower worker, higher machinery cost and higher inventories of goods in process and finished goods. Other concerns are constant re-training demand, production delays and product quality issues. Substanti al investment in information technology is required to create the close relation between all organisation’s value chain and external suppliers and intermediaries. As information technology becomes obsolete (out-of-date) fairly quick, keeping the information infrastructure can increase cost. Approriate market players, whose strategy is to focus on small part of the market, will be the biggest losers. Mass customisation organisations are able to enter all parts of the market, at mass production pricing. Market manufacturers that do not change will not survive. Michael  Cox, chief economist at the Federal Reserve Bank of Dallas, in concurrence with Toffler lamented that â€Å"If you don’t customize, you’re going to lose business in today’s marketplace.† (Wall Street Journal, April 29, 1999, pp. A1). Finally, we may have a remarkable situation, where the market is dominated by a few super efficient mass customisation organisations. Entering into the privacy of customers can be a major concern. Personal information is extracted during product detail stage and set database. The information is then sold to other suppliers without previous agreement of the customers; this company may have to be faced with punishment. 4 Mass Marketing and Mass Customization 1. Goal -to appeal to an entire market, create the largest potential market and reach the highest turnover. -Delivering goods and services at prices low enough that nearly everyone can afford them. -to meet consumers’ diverse and changing needs at near mass production prices. -Delivering affordable goods and services with enough variety and customization that nearly everyone finds exactly what they want. 2. Strategy -using one basic marketing strategy to approach the entire market. -using different methods designed to target each specific population segment. Because Mass Marketing is a market coverage technique that does not distinguish or recognize any substantial differences between customer segments, it only use one basic marketing (single marketing mix) strategy by utilizing mass distribution and mass promotion to appeal the entire market place. On the contrary, mass customization uses many different methods to satisfy each specific customer segment. There are 4 types of mass customization (which are Collaborative Customization, Adaptive Customization, Transparent Customization and Cosmetic Customization) and in each type; the company has different ways to communicate with customers. For Collaborative Customization, the company works in partnership with individual customers to develop precise product offerings to best suit each  customer’s needs. For Adaptive Customization, the company produces standardized products that are customizable by the end-user. Transparent Customization is where the company provides unique products to individual customers without overtly stating the products are customized. And Cosmetic Customization produces standardized products but market the products in different ways to various customers. 3. Tools -utilizing mass distribution and mass media. -using technologies such as computerization, internet, product modularization, and lean production. Mass marketing tries to spread the marketing message to anyone and everyone who are willing to listen and let its products/services known by the greatest number of people so that it can reach potential customers. Therefore, mass media and mass distribution are good tools for the strategy. Businesses can reach the mass market with advertising messages through a variety of media. Radio is the oldest mass market medium. Television quickly took a dominant role as the mass medium of choice of a large number of businesses. Television remained the most effective means of reaching mass market audiences until innovations in technology and the Internet began to change the game around the turn of the 21st century. Newspapers are also a traditional mass market medium, although not as effective as radio or television due to the regional or biased nature of individual publications. Mass customization concentrates on using technologies (such as computerization, internet, product modularization, and lean production) in order to make products that really meet customer’s needs and be able to quickly produce an item only when an order is received. 4. Products -standardized products built to inventory. -long product life cycles -standardized modules assembled based on customers’ needs. -short product life cycles Mass marketing aims to attract all kinds of buyers by producing and distributing the one best product at the lowest possible price; no product  is made specially for one person or a group of people. Therefore, the products must be standardized to make sure that the vendor can sell their goods to a large number of customers. Typically, things which are perceived to be necessary/essential to the consumer are subject to mass marketing. It focuses on products that have little change in customer’s demand, so the life cycles of products are long. In mass customization, products are made to satisfied different customer segment, it also have standardization but for modules to be assembled and made complete products based on customer’s need. Because the mass customization produces goods in response to volatile market demand, the life cycles of products is short. 5. Economics -Economies of scale. -Economies of scope and customer integration. An economy of scale means the decrease in unit cost of a product or service resulting from large-scale operations and it plays an important role in mass marketing. When applying the mass marketing approach, the companies are able to produce in large scale. Advertising messages broadcast over mass media can reach millions of audiences in a single showing, and economies of scale make mass distribution cheaper than regional deliveries. Economies of scope are conceptually similar to economies of scale. Whereas economies of scale for a firm primarily refers to reductions in the average cost (cost per unit) associated with increasing the scale of production for a single product type, economies of scope refers to lowering the average cost for a firm in producing two or more products. In mass customization, the product customization concepts and design schemes are determined and agreed between customers and manufacturers. Moreover, by sharing demand and supply information, supply chain partn ers can better utilize production resources in response to volatile market demand. The integration of customer in manufacturing really helps to make products with reasonable and affordable prices. 6. Customer involvement -customers are passively involved in the value chain. -customers are actively integrated into the value chain. In Mass Marketing, products are made before there are orders from customers and they just receive products’ information through mass media like newspaper, TV or internet; then make decisions to buy goods or not. In other words, mass marketing is where the vendor offers a product on a ‘take it or leave it’ basis, so customers are passively involved in the value chain. In Mass Customization, there are many applications including software-based product configurations that allow end-users to add and/or change certain functionalities of a core product. This involvement of the customer in the design and production stage means that the customer becomes a â€Å"prosumer† as described by futurologist Alvin Toffler in the 1970 book, ‘Future Shock’. The â€Å"prosumer† is producer and consumer in concert, defining and producing the product. This type of customization is called Collaborative customization and the customers are really involved in the value chain of products. 7. Type of business -big enterprises. -small and medium enterprises. To carry out a mass marketing strategy, a company must have a strong finance to pay for heavy advertising costs, establishing brands and. The company has to pay a large amount of money on mass media for keep its image in public eyes. Whereas, in mass customization, thanks to the build-to-order method (products are only manufactured when a customer order is received), the company can reduce the cost of a customized products and avoid unsold products. Moreover, the company creates specific marketing strategies to reach different customer segments, so it can really understand the customer’s needs and keep good relationship with them. This also helps the company reduce the cost for market research. This is an advantage for small and medium enterprises to start their business with limited resources. 5 Which one is dead? Mass marketing strategy is trying to reach market in greater areas by using single marketing strategy. The advantages of this strategy is in terms of low cost in production costs and tends to masters market monopolistic ally – as well as – can close all markets from competitors. In the past, mass  marketing was a relatively common and successful approach. The classic example given is the Ford Motor Company with their standard offering of the Model T Ford, which is the only product they sold for many years and it was only provided in one color (black). Nowadays, mass marketing is facing to the death because of several challenges below: Various segmented market and different demand of customer Today’s marketplaces are individualized, customized, and personalized. A single product offering, therefore, cannot fully satisfy the diverse needs of all consumers in a market and consumers with unsatisfied needs expose businesses to challenges by competitors who are able to identify and fulfill consumer needs more precisely. In fact, markets for new products typically begin with one competitor offering a single product, and then gradually splinter into segments as competitors enter the market with products and marketing messages targeted at groups of consumers the original producer may have missed. These new competitors are able to enter a market ostensibly controlled by an established competitor because they can identify and meet the needs of unsatisfied customer segments. In recent times, the proliferation of computerized customer databases has worked to drive marketing toward ever-more-narrowly focused market segments The ineffiecience of communication to customer Mass marketing is an attempt to appeal to an entire market with one basic marketing strategy utilizing mass distribution and mass media. Also called undifferentiated marketing, it maximizes products advertising to consumers. Unlike niche marketing, that targets markets and audiences via research and analytical techniques; mass marketing advertises products to a large audience. Until recently, marketers have pretty much taken a â€Å"mass media† approach to their efforts: Blast out as many marketing messages as possible on every medium available as often as you can afford it. In an era when it’s not really possible to learn anything about the audience and their tastes, this crude shotgun method of attack is pretty much the only option. Mass marketing tactics are really just slightly more sophisticated versions of standing on the street corner yelling at people who walk by, hoping that some small percentage of them might be interested in what you have to say. The development of the Internet and social media Traditionally mass marketing has focused on radio, television and newspapers as the media used to reach this broad audience. By reaching the largest audience, exposure to the product is maximized. In the new millennium, the Internet – a mass communications medium- is more and more developing. Besides, it also changes the way people approach new products. The Internet has allowed people to reach out to each other and becomes a powerful force of one. Through ‘world wide web’ and social media, customers are able to connect with others who have similar interest, share experiences about products, complain about poor performing products or even become brand advocates.. Thereore, customers – not mass maketing tools – have influence on their decision buying products themselves. The Mass marketing could be coming to an end replaced by a new era of personal marketing. The businesses should make the right marketing strategy to approach their targets. VII. Conclusion Mass marketing is old school marketing. No longer can businesses afford to blindly send large volume of the same messages to unqualified recipients. Nor can they afford to treat each customer to same way. Yet many businesses still practice these useless exercises. Plenty of businesses practice bad marketing on a regular basis. It’s wasteful and it produces negative effects. With an unfocused target, the wrong people will get the wrong message. As a result, marketing dollars will be wasted. Prospective elients may look unfavorably on your business because you appear to be careless, desperate, or just plain clueless, and no one wants to work with a business like that. Customers can’t be treated anonymously. One of the keys to successful marketing and sales understands your customer’s needs and pains, and how to better serve them. Personalized marketing will help businesses address these customer needs. Today, when more and more industries move towards creating mark ets of one, the satisfaction of increasingly individualized consumer demand is a challenge faced by many manufacturing organizations. Consequentially, this situation has led to a rapid growth in the attention given to mass customization for the fulfillment of individual consumer requirements. Customer co-design and integration are the keys to  mass customization. This is the core element that differentiates mass customization from other strategies like lean management or agile manufacturing. With today’s information technology, mass customization customers can be included into the value creation chain by defining, configuring or modifying an individual order. Though an interactive website customers can configure specifications of the product or service, packaging and even delivery options. The use of build-to-order methods, where an item is not constructed until an order is received, is an important factor in minimising the cost of a customized product. Mass customization is a reality because it is an attractive strategy for both manufacturers and customers. Producers are able to reduce their inventories a nd manufacturing overhead costs, eliminate waste in their supply chains, and obtain more accurate information about demand. Including the customer in the product design also establishes an individual contact between the manufacturer and customer, which offers possibilities for building up a lasting relationship. Mass customization technologies make it possible for companies to create a cost efficient value chain, while increasing flexibility towards answering customers’ needs from heterogeneous market demands. In this way, companies pay more attention in delivering products and services, and, instead of focusing just on acquiring new customers, they concentrate on building lasting relationships with the existing customers. Involving customers into the company’s value creation process increases their sense of contribution in the end product and brings real first hand customer knowledge. Small and medium enterprises comprise most of the world’s manufacturing secto r. In addition to feeling intense pressure from low-cost international competitors, these organizations have to deal with rising raw material cost, customers demanding high quality service, support, and product variety. Mass customization has snuck up on many of us. It has happened gradually and has moved from industry to industry without carrying the â€Å"mass customizing† label. We have gotten used to having our products and services customized without having the label â€Å"mass customizing† used to define customizing what is happening. We take mass customization for granted. We turn on our computer, click on â€Å"Word,† choose our favorite font, our color of the day, and the stationery that we think will impress our reader, and within seconds we are creating a document that we have quickly and effortlessly customized  to meet our personal desires. We believe that mass customization has great potential to be a source of sustainable financial and strategic adv antage. Today’s market characteristics and competitive challenges favor mass customization in many industries and market situations. We invite managers to learn more about this strategy and investigate how a customized mass customization approach can suit their businesses better.

NOrdstorm Case Analysis Essay

â€Å"Our staff is genuinely interested in seeing that all your needs are meet. They are professionals-will help you with everything from gift suggestions to wardrobe planning. They will even accompany you from department to department until you find exactly what you’re looking for† , a quote from Nordstrom directory as a benchmark for service exceptions. How is Nordstrom able to claim this unexceptional goal within retail industry? The answer lies with the great achievement of motivation produced within Nordstrom culture. The case in question is prepared by Richard D. Freedman and Jill Vohr, Stern School of Business, New york University. This case analysis is based on the experiences and background of retail giant, Nordstrom. The store started its operations with humble beginning of providing excellent customer service to constituents. Nordstrom operates almost 100 stores in 10 states. It’s a growing company with great working culture. There are approximately 35000 employees working within Nordstrom family. The focus of Nordstrom’s management is to create an ambitious and motivated team that provides customer service like no one else offers, service above and beyond the call of duty. All employees are made to feel like members of a family sharing in â€Å"the Nordstrom way†. Company has been able to create an environment where promotions are only from within the company, where employees keep a journal of customers to send thank you letters and upcoming promotions. Employees perform all operations relevant to their jobs, even unpacking items, shelving and storage responsibilities. The astonishing thing is that all these tasks are performed on off the clock. Nordstrom has been able to create an environment where employees are pushing themselves to limits. Doing chores during their lunch time or after the clock has been a Nordstrom culture for a while. Even though this practice had created some controversy with few employees and unions are trying to pursue Nordstrom to abolish these motivational techniques to have employees work off the clock to achieve better status and money. There have been various lawsuits involving Nordstrom employees and management. This analysis can provide us some insight on how Nordstrom has been able to use motivational theories to purse employees to be part of this huge enterprise. Motivation is a force that come from within a person that can help create a willful direction towards achieving some specific goals, where achievement is not due solely to ability or to environmental factors. Performance of a certain individual can be accounted using: Performance = f (Ability x Motivation) Nordstrom had created a place of business where they pick the best sales people from the given population and provide them motivation in form of promotion, excellent sales commissions and social stature of working for a prestigious retailer like Nordstrom. Nordstrom has been able to use content theories of motivation to produce current company’s culture. Using content from Hierarchy of Needs Theory by Maslow’s, Nordstrom can motivate people according to their desire to satisfy specific needs. Using physiological needs like money, Nordstrom had created an excellent base pay structure along with the opportunity to create more opportunities for sales people in form of high commissions. Nordstrom’s pay structure is more rewarding than its competitors. Using physiological paradigm as a motivation force, Nordstrom is an industry leader for harvesting the best talent within sale force. Second level of Maslow’s theory is Safety needs. Nordstrom had created a culture that resembles to an individual family boutique operating within its own means and create its own identity. Nordstrom managers are free to hire and the only rule exist is to help the customer by any way possible as long as it’s legal. This attitude towards management had created a safety net at work place thus helping Nordstrom employees achieve better motivation. Maslow’s theory also promotes social and belongingness needs. Nordstrom has a culture of creating a family within a certain store thus helping with social and belongingness needs of employees. Self Esteem is also considered an important factor of motivation used by Nordstrom. Employees of Nordstrom gladly introduce themselves to others due to the fact that Nordstrom has a certain place in society and this approach helps create more motivation for employees to be more productive. Maslow’s theory also embraces self-actualization for creating employee motivation. Nordstrom is one of the few companies that can help employees design their own business cards and schedules. The focus is to create entrepreneurial spirit among employees because Nordstrom want performance to come from ambition and motivation and not from corporate headquarters. ERG theory by Clayton Alderfed explains three categories, existence (E), relatedness needs (R) and growth needs (G). This theory can be considered one of the pillars within methodologies used by Nordstrom. Employees are motivated using growth, relatedness needs and existence needs. Using this theory as an approach for design business model, Nordstrom helped employees look for their basic goals and use Nordstrom as a vehicle to accomplish those goals. Theory of achievement, affiliation and power by David McCelland can explain the motivational force Nordstrom is using to achieve ambitious goals of sales and motivation. By creating goals to be achieve every month, quarter and year, Nordstrom can help employees create a schedule for themselves to achieve those goals. Nordstrom had created unofficial standard of excellence that can help set goals for employees. Need for affiliation is also used during the course of employment with Nordstrom. Managers acknowledge the best employees and considered as a pacemaker to others so others can follow their example of excellent customer services and sales. Need of power if another factor involved in creating motivated employees. Nordstrom use strict policy with promotions within the company, this process helps provide power to the ambitious and motivated employees in form of management and team leader positions. Even though traditional research had not supported claims by two-factor theory or dual-factor theory by Frederick Herzberg; Nordstrom has been able to use the concept of motivators like achievement, recognition, responsibility, growth and challenging work and hygiene factors like pay, working conditions , technical supervision, status , interpersonal relationship with peers and security. Nordstrom had implemented this idea to create a self-realization environment where employees create goals and motivation comes from within. Nordstrom’s focus on use of expectancy theory is another motivational factor for creating motivation. Expectancy is the subjective probability that a given amount of effort will lead to a particular level of performance. Using instrumentality and valence as an outcome, Nordstrom can increase motivational force. Another factor that Nordstrom is so successful in creating employee motivation is use of equity theory. Equity theory suggests that motivation is based on person’s assessment of the ratio of outcomes he/she receive (e.g., pay, status etc). Nordstrom had implemented these theories to create a model that help employees do things with motivation from within and increase productivity and motivation. Goal setting has been a key motivator for people working within Nordstrom. Even though, many controversial lawsuits and complaints by employees and union had surfaced in last few years, Nordstrom is still promoting its culture. Nordstrom had set aside more than $15 million for paying employee for times that has not been paid in past due to the fact it was not on clock. Nordstrom still embrace job enlargement and job enrichment policies. Job enlargement is a process of making a job more motivating by adding tasks that are similar in complexity relative to the current task. For example, Nordstrom employees work with a customer in any department to satisfy that customer’s needs. Job enrichment is a process of creating more job motivation by increasing responsibilities. For example, Nordstrom designate employees to take responsibility and act as a concierge and interact with customers using letters and photos and scrap book etc. Using these theories, Nordstrom, had increase employee motivation instead of creating a hostile work environment. I personally think that Nordstrom can alter few methods to treat with how employee time is compensated. Motivation theories applied at Nordstrom are brilliant and using those theories, Nordstrom had created a culture where employees are working hard to achieve success and reach the goals set by employees and not corporate headquarters. Some of the complaints mentioned in case seem legit but the role of motivation is a two way stream. Nordstrom should deal with these complaints in a manner where it can help employees gain more confidence and motivation. For example, Nordstrom should change the way feedback mechanism handled. Throughout the whole case, I saw a lack of feedback method that can help employees get better and increase motivation. Feedback plays and important role within company’s motivational efforts. Feedback process can clarify the goals and expectations of certain employees who seem to be abused by this culture. Nordstrom should also focus on including the time for extra circular activities to enhance sales on actual paid time. This would help employees use pay as a motivational factor to increase productivity as defined as Maslow’s, ERG and dual factor theories.

Ancient Religions

Principal beliefs of Nordic religion and its meaning to adherents. The ancient Norse religion was commonly followed and practiced by people in northern regions of the world, such as Scandinavia, Norway, Iceland and surrounding countries. It was believed that the world first came about when a northern and southern land, Niflheim and Muspellheim, both joined together. Niflheim (house of mists) , an extremely cold, icy land and Muspellheim (home of desolation) the seemingly opposite of Niflheim, a hot, fiery land. As both lands joined together, the reaction of the contrasting temperatures caused the ice of Niflheim to melt creating the first two living creatures Ymer, the giant and Audhumla, a female cow. From these two the first Gods were created (Odin, Vile and Ve), and from them the first human beings were created by Odin from an elm and ash tree. Due to a disagreeance between Ymer and the God’s, the giant was killed and from his body, landforms and other living races were created. The gods were revered by many as they were the creators of the races and established the different parts of the world, the world tree or Yggdrasil included. The Yggdrasil is one of the principal beliefs in Nordic religion as it was known as the centre of their nordic universe, the world tree was said to have held nine different realms within its branches. The realms were situated in different areas of the tree at the top, within the canopy; Asgard (heaven) was located. This is where many gods lived including Odin in Valhalla. In addition to Asgard two other realms Vanaheim (home of the fertility god) and Aflheim (home of light elves) were located at the highest level of the world tree. These realms were known as â€Å"divine†. Norse folk believed that Midgard, the middle section of Yggdrasil held the human world. Along with midgard, Nidavellir, Jotunheim and Svartalfhiem, home of the dwarves, giants and dark elves were also present here. At the third and bottom level of the tree the two lands that created the first living beings are found. It is believed that Hel, the place of death, is part of the harsh, destitute lands of Niflheim. Hel is connected to one of the three main root of the world tree and it is known as the underworld, the second root leads to Jotunheim( realm of the giants) and the third is connected to the divine realm, Asgard. The roots linked together the different levels and realms of the tree, likewise Bifrost, a magical bridge located between Asgard and the human world, Midgard was another connection between realms, allowing gods an entrance into the mortal world. The Influence of the Nordic beliefs in society was great as followers of the ancient religion could identify with the extreme life conditions and harsh weather that was also portrayed in the Nordic creation story. The Norse saw their conditions of life as a blessing from the gods and often used these gifts to the greatest advantage for example men often became farmers, cultivators, tradesmen or traders. Women in Nordic society also searched for meaning and insight from the gods as they held powerful positions in the religion. Women played a strong part in the community and often had to run the villages when the Viking warriors were away. The Norse strived to maintain a balanced lifestyle from the influence of what they had learned and incorporated from the gods. Odin was known as a wise and great warrior and many Viking men chose to follow the same path by becoming a warrior also. I was believed that one of the only worthy ways to die was to die in battle. This factor greatly contributed to the decisions of the Norse men. When a warrior died in battle he would go on to Valhalla, in the divine realm, if not they would go to Hel. The Norse people not only sought meaning from the gods, but from the actions and rituals they performed.

Nicole Krauss' The History of Love Essay Example | Topics and Well Written Essays - 1000 words

Nicole Krauss' The History of Love - Essay Example These ideas are illustrated in the life of the characters in the novel, particularly Leo Gursky. In the novel, change is commonly associated with distance, and Krauss illustrates this idea in the life of Gursky. As for Gursky, the world after the war and the departure of Alma has changed considerably that he resolved to isolate himself from the rest of the world. In the statement, it seems that Gursky holds on to the thought of meeting the sender of the letter because he hopes to find a connection between himself and the world outside his own emotional confines. The statement is also related to the line â€Å"the physical distance between two people using a string was often small; sometimes the smaller the distance, the greater the need for the string† (111). Considering the changes that occurred in his life, Gursky attempts to bridge the gap between himself and the fast pace of the changing world. The statement also shows the inevitability of sadness due to loving and losing someone. Throughout the novel, Krauss illustrates the beauty of life and loving; however, she does not fail to show the sad part of those aspects of life. Specifically, Krauss illustrates the plight of Gursky as the effects of losing someone. Further, Krauss states the inevitability of sadness in the line: â€Å"there are two types of people in the world; those who prefer to be said among others, and those who prefer to be sad alone† (155). With this statement, Krauss seems to generalize that all people are sad; people just handle their loneliness in different ways. In relation to what Krauss states in page 233, this line supports the idea that anticipation bridges distances. It allows people, particularly the sad ones, to establish a connection in the world and distance themselves from the deteriorating effects of isolation. In the holistic view, the statement serves as the general idea of the novel; it illustrates the idea that life is full of surprises as depicted in the l ives of the characters. The beauty of the novel lies in its capacity to spur the imagination of its readers. The statement is also related to the line: â€Å"all possible feelings do not exist, there are still those that lie beyond our capacity and our imagination† (107). With this line, Krauss puts value on imagination, particularly in the life of Gursky as he deals with the realities of life, and the illusions of his past. As what Krauss said in page 233, life is full of surprises that can alter our direction in life, particularly in relation to the people and events that we are accustomed to. With this statement, Krauss suggests that people should be open to the opportunities that may come in life, notwithstanding the fact that those opportunities have the capacity either to hurt, or please us. Although the novel is characterized with Krauss’ prolific and metaphorical use of language, the statement emerges as the most striking line as it captures the overall signifi cance of the novel, particularly in its broader context of live, loving, and change. At the onset of the story and throughout its unfolding, Krauss establishes the complexities of living, particularly in dealing with loss and loneliness. The structure of the novel is complex as it involves a variety of literary techniques including the use of â€Å"

Case Study Example | Topics and Well Written Essays - 500 words - 45

Case Study Example This, therefore, means that a twist may be seen in the restaurant industry in terms of what they prepare and avail in menus to customers. The realization of the value of vegetables and the role they play in shaping dietary life implies that people will shift from HÃ ¤agen-Dazs Dazzler to vegetables as many would not wish to gain weight associated with junk foods. The hotel industry integrates a system in which every meal served must have some vegetables on the side (CSPI, 2015). Customers are more likely to feel satisfied only when they eat vegetables along with whatever meal they are taking. This revelation is enough to persuade the restaurant industry to revise and regulate their production in terms of how much HÃ ¤agen-Dazs Dazzler and vegetables they avail to customers. Continued campaign for vegetables over HÃ ¤agen-Dazs Dazzler will sensitize the public about eating right; therefore, the industry will have to comply by the customers’ demands. It is essential to make it clear that the Centre for Science in the Public Interest (CSPI) is genuine in the claims made. New research discoveries imply that people will definitely change their behaviors and consequently the industries that serve them will have to modify and adapt to the changes. The revelations exposed by the organization in healthy dietary has shed light on what exactly it means to eat whatever one chooses and the possible outcomes to one’s health (Shils, 2005, p.143). The scientific manner in which CSPI carries out its procedures makes it reliable as its outcomes and claims are thoroughly researched. It has been a tradition especially in the American culture for people to prefer fast foods over well prepared and nutritionally rich meals. The emerging reports presented by CSPI give people a different outlook into nutrition matters. The restaurant industry also has to alter its every day way of doing things and adopt new strategies

Evidence, argumants and evaluation on whether mergres and acquisitions Essay

Evidence, argumants and evaluation on whether mergres and acquisitions incraese shareholders wealth - Essay Example The following sections of the paper discuss the effects of Mergers and acquisitions on the shareholders’ wealth. Mergers and acquisition have led to the increase of shareholders market presence in certain industries according to Brigham and Houston (2009). This has also led to effective sales and marketing associations by the merging companies. As a result, this leads to increased wealth of the shareholders. Mergers and acquisitions often lead to greater market presence of the companies involved (Fleuriet 2008). Higher market shares that result from mergers and acquisitions often lead to increased purchasing ability and control over suppliers as suggested by Bruner (2004). When an organization buys a product in higher volumes than previously, the purchase cost becomes lower making the company become more price competitive. This has the potential of attracting greater sales and, therefore, higher value to shareholders. Mergers ad acquisitions may lead to improvements in company operations especially in the case of manufacturing companies as suggested by DePamphilis (2011). Therefore by increasing facilities through mergers and acquisitions, the company raises its capacity to manufacture more products or higher quality products. The company as well has its credibility increased which positively increases the shareholders wealth (Maddiganand and Zaima 1985). Mergers and acquisition often lead to symbiotic relationships between the two companies. As a result, the two companies tend to support one another, which in return helps the shareholders realize greater value from their investments. Mergers and acquisitions combine the operations of the two companies leading to higher sales capable of supporting their concurrent higher budgets hence raising the wealth of the shareholders (Cartwright and Schoenberg 2006). In some cases, mergers and acquisitions may not add value to shareholders’ wealth. This happens for example when management of one

The first paper will be an individual evaluation of the importance of Essay

The first paper will be an individual evaluation of the importance of being a learned person in a 21st century socioeconomic soc - Essay Example The words is normally used for individuals holding bachelors, masters and PhD degrees but have varied knowledge in other important subject matters of society. This is differed from an educated person who depicts characteristics like having a college or high school diploma. The educated person displays civilized behaviors representing his or her stay at school. The educated individual understands the moral civic and social responsibilities. In simple terms, they hold some unique capabilities that uneducated individuals do not have. Society usually consists of both of these individuals and the uneducated people. This essay therefore, seeks to explain the role of critical thinking and being a learned person in the society. It focusses this on commerce in a society with modern technology. Critical thinking is an integral characteristic of a learned person. Being a leaned individual in a society comes with numerous responsibilities. Learned individuals are regarded as the light of the soc iety and their opinion counts in every issue affecting society. These include opinions on technology, politics, philosophy and commerce. The definition of critical thinking is the intellectual practice of conceptualizing, scrutinizing and applying skills as a framework to action and belief. It includes analyzing the sources of information too. In its unique form, it bases on conventional values that govern subject matter divisions. This definition is important since society includes different fields and subject matter that are of contention. This as a character of learned individuals improves society’s understanding of these contentious issues. Critical thinking is totally different from being augmentative. It also does not mean the character of criticizing fellow individuals in society. In a modern society, critical thinking abilities are used in revealing bad reasoning and fallacies. The economy in a society is a main issue that requires critical thinking to enhance. Critic al thinking plays the important part in constructive task forming and cooperative reasoning. Through these characteristics, the commerce in the society grows. Commerce is a section of any business that concerns itself with exchange of goods and services (Dyer 5). This entails all the direct and indirect activities that facilitate the exchange. In a modern society, commerce gets enhancements from over the edge technology. The development of technology cannot be attributed to any other thing that learned individuals. Through critical thing, the learned individuals develop new ways of making business more efficient and faster. They develop new accounting methods, business development strategies and future research. Learned individuals in the field of computer science have such technological tasks in the society. Critical thinking helps the society to strengthen existing arguments on commerce, acquire knowledge and improve theories. This is achievable through initiation of learned perso ns in the field of business and commerce. The society employs critical thinking to improve work practices and progress social organizations. The society consists of populations with wants. These include secondary and basic wants, which are never ending. Social welfares are promoted in the society through commerce. This is to the sense that the innumerable wants of people in the society are met. For this wants to be met critical thinking is

Globalisation - Challenges and Opportunities in China Essay

Globalisation - Challenges and Opportunities in China - Essay Example It is under the prevailing circumstances that the behavior of Chinese market is studied in context with latest confidence building measures being taken up by the Chinese government, the trend of international investments, views of the international community and the ‘threat’ perception from the cheap Chinese manufacturing sector. Having inspired the marketers, with a vision of billion people consuming international brand in downtown, China is now recognized as a capable global competitor in its own right. And it has ambitious expansion plans - not only for Asia but also for the Europe, United States and elsewhere. Traditionally, the problems of doing business in China, in general, can be categorized into four main categories;It is under the prevailing circumstances that the behavior of Chinese market is studied in context with latest confidence building measures being taken up by the Chinese government, the trend of international investments, views of the international c ommunity and the ‘threat’ perception from the cheap Chinese manufacturing sector. Having inspired the marketers, with a vision of billion people consuming international brand in downtown, China is now recognized as a capable global competitor in its own right. And it has ambitious expansion plans - not only for Asia but also for the Europe, United States and elsewhere. Traditionally, the problems of doing business in China, in general, can be categorized into four main categories.

Question answer Essay Example | Topics and Well Written Essays - 2000 words

Question answer - Essay Example Notably, finance minister of State X was present at the signing of the agreement between the two parties and after signing the document, the finance minister added the words â€Å"approved and ratified† and the minister also placed his own signature. Later on, a dispute aroused where OIC initiated a settlement proceeding in accordance with the procedures set out in the joint venture contract specifying both IPF and State X. However, State X argued that settlement tribunal has no jurisdiction over it. The major case issue is that whether State X can be excused from participating in the suit or not. With regard to the case, it can be stated that State X cannot be excused from participating in the suit. As the common law of contract in Australia affirms that any third party benefitting from the contractual agreement is liable to sue the other major party under the contractual agreement and vice versa. Nonetheless, privity of contract states that only the major parties entering in to the contractual agreement has the right to sue each other if any dispute arises. Simultaneously, the doctrine of privity of contract denies any obligations or liabilities to third party1. However, the doctrine of privity states that the major party has the right to sue the third party benefiting from the contract. ... over the performance of IPF, it cannot be denied that any action performed by IPC is governed by and taken with the active participation of State X2. Thus, the action of IPC cannot be distinguished from State X. In addition, State X also affirmed the contract by providing its approval and rectification as well as the finance minister of State X placed his signature to the contractual agreement which provided an evidence of State X’s involvement to the contractual agreement entered between OIC and IPF. At the same time, it can be argued that finance minister of State X was endorsing the contract but he was not making government as a party to the contract entered. Despite this aspect, it can be stated that State X should not be excused from participating in the suit. Additionally, the arbitration tribunal has sole power to involve State X in the suit. QUESTION 2: Considering the case of the Republic of Argentina et al v. Weltover Inc. et al., The United States used the Foreign S overeign Immunities Act of 1996 to bring suit against Argentina for a default on bond repayment. According to Foreign Sovereign Immunities Act 1996, statutory method can be ascertained from the United States courts to acquire jurisdiction over non-US sovereign. It offers that any person in the United States can seek for jurisdiction for disputes resulting from business transactions to non-US sovereign. It immunises non-U.S. states from jurisdiction of US court unless any exceptional scenario applies. Accordingly, Supreme Court of the USA has characterised â€Å"commercial activity† as the most important exception. This exception provides the verdict regarding which party can apply for lawsuit against the non-US sovereign in the US court. As part of a plan to stabilise petitioner, the Republic of

Economics assignment Example | Topics and Well Written Essays - 750 words

Economics - Assignment Example To avoid this situation particularly when it is occasioned by the fact that the involved firms receive inputs from input suppliers and are attempting to innovate to produce differentiated products and even seeking patent of those products, is by the firms involved getting integrated vertically so that they can reduce some of the dead weight losses. Sometimes it would be necessary that the firms involved within the particular supply chain get to mergers and acquisition. One of the ways in which double marginalization may be solved is by Suppressing the Double marginalization. This can be done by avoiding the firms involved in unnecessarily applying for mark-ups over the cost of their own outputs; rather, they should increase their overall profits through internal suppression of the double marginalization. This should be strategically done by ensuring that they transfer the intermediate costs of the products they have through the application of a single optimal mark-ups. The above solution coincides with the profit maximization solution of innovating and producing up to the point where marginal cost equal marginal revenue. Like any other good practice in profit maximization in business, overcoming double marginalization solves the problem of losses. in the case of application of the marginal cost equals to marginal cost revenue, a firm will attempt to produce that additional production which will assure it of additional revenue. At the point where the marginal cost rises to equal the marginal revenue, it can then be said that the firm is maximizing the profit. The rule usually demands that; in the event that the marginal cost gets greater than marginal revenue, the firm must cut down on its cost. This is why by avoiding the dead weight loss through the reduction of double marginalization; the firm automatically reduces on its cost. 2) Suppose firms A and B are going head to head developing new products

Comparing IFRS to GAAP Essay Example for Free

Comparing IFRS to GAAP Essay GAAP rules for recognition are detailed regarding specific industries, such as real estate and software. It uses the complete contract method and has special rules for rendering software services. Organizations can recognize revenue from the sale of goods made delivery from a definitive agreement for a fixed fee that they are reasonably sure they will collect. Under GAAP, companies must wait until the whole process of the contract is complete to recognize revenue. GAAP also has specific types of transactions, and it required public companies to follow rules that are set by the Securities and Exchange Commission. IFRS Revenue Recognition IFRS revenue recognition states that revenue can be recorded when it becomes economically significant: IFRS revenue recognition can be defined as not as strict as opposed to GAAP. IFRS is considered universal; standard 18 sets forth general principles and examples applicable to all industries. IFRS allows recognition when the rewards and risk of ownership is transferred, giving the buyer control of the goods, revenue is understood and the economic benefits will flow to companies or in other words, you will get paid. IFRS bans the completed contract method and under certain circumstances will allow the percentage of completion method. IFRS allows you to combined contracts. However, applies different criteria compared to GAAP. (Ref. Eric Bank, Demand Media). IFRS Order of liquidity IFRS does not require a specific order of classification on the Statement of financial position. IFRS provides the same set of objectives for business and non-business entities. The separation of assets and liabilities is required, and deferred taxes are shown on a separate line item on the  balance sheet. Minority interests are included in equity as a separate line item. The financial statements include an income statement, balance sheet, changes in equity, footnotes and a cash flow statement. IFRS main goal is to give a financial statement with a clear understanding of the companys asset structure. GAAP Order of Liquidity GAAP has a specific requirement that all accounts are measured by liquidity. The framework has no provision that the expressly requires management to consider the framework in the absence of a standard or interpretation for an issue. GAAP requires a balance sheet, income statement, statement of comprehensive income, changes in equity, cash flow statement and footnotes. The difference, as opposed to IFRS, is that deferred taxes are shown with the assets and liabilities. IFRS Commonly used Terms IFRS terms that are commonly used together are statement of financial position, balance sheet and share capital ordinary to common stock. The statement of financial position and balance sheet are synonymous. The formats may be different. It is made to show a comparison of liabilities and equity to assets. IFRS picked the term financial position because it describes the purpose of the statement. The heading stands for the position of receivables and assets on one side and all the liabilities and equity on the other side which can be done at any given date. These statements provide how financial strong the company is. IFRS terms that are commonly used together are share capital ordinary and common stock. IFRS uses the term share capital ordinary to explain the stakes of the ownership. Common stock is identical to share capital ordinary which shows the equities values that the owners have in exchange for cash. The European Union utilizes the term share capital ordinary which is why it was chosen by the IFRS as the norm. The heading shows the equity shareholders what the capital value is. The heading is equity of net worth subheading. Understanding Gains, Losses GAAP defines expenses, revenues, losses, and gains as it correlates with the income statement. The losses and gains would not appear since they do not constitute as operating activities. Even though gains and losses would not appear it will specify the information that would need to be reported on the  income statement. It would only allow expenses by description or function. The bottom line would be called as a loss of profit. It prohibits extra ordinary items to be reported in the notes or income statement. The losses and gains that are reported on the income statement are shown separately so the cash flow that can be assessed in the future. Income defines both gains and revenue. Revenue from a company from activities and are in the form of rents, interest, sales, fees, and dividends. Gains are items that are accrued in a form of income from ordinary activities from a company. Gains can include the gains of long-term assets sale. They can be gains from securities. Securities and Exchange Commission The Securities and Exchange Commission (SEC) has several aspects to consider when it comes to trying to get the United States to adopt IFRS. First, the people and the overall cost that it would have on their business should be something for SEC to consider. SEC should consider the overall costs impact this will have on businesses. It would cost millions if not billions of dollars for U.S corporations to implement IFRS using a good portion of their time and money to put this into effect. Accounting firms would now have to change their education requirements. In a predictions report released in 2008 by the SEC, it stated that large U. S. based companies with revenues in excess of one billion dollars would be paying more than its European counterparts in converting to IFRS. In this report, it also states that small businesses could be hit with more costs than larger companies. This is due to the need for new trained staff members that are educated in IFRS and the need for new IT systems to meet the needs of the conversion. The implementation of new systems will also require new training standards for current employees, which will cost companies time and money. The conversion from GAAP to IFRS can and will have an effect on U. S. companies overall operations, taxes, and their internal reporting processes. Sarbanes-Oxley Act The Sarbanes-Oxley Act of 2002 (SOX) was signed into law by President George Bush in response to issues in accounting at several major US companies. It was intended to address corporate responsibility, combat fraud and improve a companys financial disclosures. Some would argue that guidelines enacted by  SOX puts US companies at a disadvantage competitively to companies operating abroad. One principle of the act was the requirement of an independent auditor to evaluate the financial records of businesses at the cost of the business to boot. Executives must certify that the records are accurate and are subject to imprisonment for fraud. The threat of oversight may cause some businesses to refrain from taking the necessary risks to help business grow. The advantages of SOX to some far outweigh the costs. The most important of them all could be that companies and the executives that run them are kept honest about financial records. The act created an organization with the responsibility of oversight of auditors called the Public Company Accounting Oversight Board. With such oversight, it helps in restoration of public/investor confidence. According to Forbes Magazine a Harvard Business School professor Suraj Srinivasan â€Å"Markets have been able to use the information to assess companies more effectively, managers have improved internal processes and the internal control testing. (Forbes, 2014) References Goodbye GAAP. (2008, April). CFO Magazine, Retrieved from: Goodbye GAAP Hanna, J. (2014, March 10). The Costs and Benefits of Sarbanes-Oxley. Retrieved October 30, 2014. KPMG cutting through complexity. (2014). Retrieved from http://www.kpmg.com/global/en/issuesandinsights/articlespublications/ifrs-guide-to-financial-statements/pages/default.aspx Chapter 4 Income Statement and Related Information. (n.f.). Retrieved from http://higheredbcs.wiley.com/legacy/college/kieso/0470587237/ifrs_supp/ch04.pdf

Biodiversity Lab Essay Example for Free

Biodiversity Lab Essay 1. Explain how the ecosystem was affected by the missing species for each round of the demonstration. a. Round 1 = white bead representing lichens. Our laboratory reading for the experiment stated that lichens are instrumental in the development and needs for all species. The text stated, â€Å"Lichens play a part in the creation of soils from which plants can obtain nutrients. Like all living organisms, lichens need nutrients and energy to grow. Nutrients may be obtained from the air including dust, water, and from the substrate organisms grows on obtaining energy through photosynthesis, which is the role of the algal partner. They may also be incidentally fertilized hybrid and insect dung† (Bottcher Rex, 2012, p. 43). With the information obtained from the reading, without lichens, bees, trees, flowers, and humans will all have negative repercussions. b. Round 2 = Yellow bead, representing bees. No bees and lichens the trees will not be pollenated, which will result in a loss of a food source  for humans since bees pollenate trees and flowers for food. Without bees to pollenating, the ecosystems takes another dramatic step towards extinction. One study stated, â€Å"Deduction from floral structure indicates that the flowers of many crops and wild plants are adapted for bee pollination. Further experimental studies of pollination are much needed, to see whether inadequate pollination limits seed set, and which insect species are potential or actual pollinators. The adequacy of pollination of a given plant species will vary regionally with climate, habitat and the nature and density of the local pollinator community† (Corbet, Williams, Osborne, 1991, para. 3). Minus the bees, the results for all other species will be negatively impacted. c. Round 3 = Orange bead, representing trees. The trees are dependent on lichens and with lichens removed. The trees will not have enriched soil to keep living. This is the reason for loss of oxygen for all species who require it and without bees, the fruit that some trees produce will cease to exist, causing food shortages and lack of shade and protection for flowers and humans (Bottcher Rex, 2012). d. Round 4 = Red bead, representing flowers. Lichens removed the soil could not adequately support nutrients required to keep alive. The flowers needs protection and shade from trees to sustain life and the trees were removed due to soil composition and loss of lichens from ecosystem. 2. Provide one action we as humans engage in that leads to the extinction of each of these components. Action affecting Lichens = The use of pesticides, chemicals, other pollutants, and people cause damage to this component that can lead to the irreversible impact on the lichens. Action affecting Trees = The destruction of soil and pollution, a major area where humans are impacting trees is through the removal of forests for trees to support human projects and constructions. â€Å"Ninety-three percent of the forestland in the United States is Privately owned† (Hazel baker, 2008, para. 1). Action affecting Flowers = Even though our chemicals are killing these flowers and making the soil contaminated and resistant to flower species. The use of pesticides and other chemicals, flowers are not engineered like crop seed to survive these chemicals. Action affecting Bees = Due to several human factors, bees are being threatened and destruction of their habitat is the number one reason. For a habitat to remain successful and sustain populations it must provide nesting sites and a seasonal succession of forage, and humans are depleting these areas through population growth and industrialization (Corbet, Williams, Osborne, 1991). 3. Provide three specific actions that humans can take to minimize our impact on the ecosystem and ensure the survival of lichens, trees, flowers, and bees. Action 1 = Bees are a critical part of the ecosystem. Humans need to ensure habitat sustainment to sustain bee populations do not deteriorate to levels that cannot be corrected. â€Å"Bees need food (nectar, pollen) provided by insect-pollinated plants in order to reproduce and produce more bees† (Corbet, Williams, Osborne, 1991, p 2). By creating hives and environments that are conducive to bee sustainment, it is possible that strides can be to reverse the downward trend in populations. This is critical as one study showed. It stated that the loss of bees was a domino effect to other species. It stated, â€Å"If bee pollinated flowers  do not seed, the integrity of Europe’s remaining semi natural vegetation will be destroyed and the colorful flowers of the countryside will be lost. This in turn will deprive many other herbivorous or seed-eating insects, birds and small mammals of their host plants and/or food,  with consequent further loss of species diversity†(Corbet, Williams, Osborne,1991, p 2). Through the saving of the bees, the increase of pollinated of other species helps ensure survival of flowers Action 2 = Humans can stop polluting the soil and surface of lands through illegal dumping, spills, etc. that contaminate and kill lichens that are critical in soil creation and providing nutrients to other plants and trees. With the help of government agencies and through stricter enforcement, creation of neutral pesticides and chemicals, and other products to eliminate harm to the environment and providing a healthier ecosystem for all life to thrive. Action 3 = The best way to save our tree populations is to protect the public lands from forest harvesting and ensure there environmental regulations for commercial logging businesses. â€Å"93% of the forestland in the United States is privately owned† (Hazelbaker, 2008, para. 1). That means that there are plenty of lands available for harvesting and ensuring forests do not die off and leave the negative impacts and loss of a precious resource. Due to the benefits that can be found in the national and state forests, such as clean air, fresh water, etc. I feel it is a good practice to prevent commercial access on these lands. These lands serve as a refuge to wildlife and often provide unique opportunities to the citizens who rarely get an opportunity to experience nature and these environments. POST LAB QUESTIONS 1. Develop a hypothesis on which pot you believe will contain the highest biodiversity. Hypothesis = One pot has direct exposure to sunlight it will have the highest level of biodiversity 2. Based on the results of your experiment, would you reject or accept the hypothesis that you produced in question 1? Explain how you determined this. Accept/Reject = Reject. Table 2 of this experiment, the pot that was placed from all windows had a greater diversity of growth from the random seeds planted in it, versus the one with direct sunlight. The pot that had direct sunlight yielded smaller totals in each of the five plants planted in each pot as well as a smaller overall plant yield. While some individual plants had close results, there was a total difference of the total plants of 48. 3. If each pot was a sample you found in a group of wildflowers, would you determine based on the diversity of flowers that the ecosystem is healthy? Why or why not. Answer = I would say that each sample would yield results of a healthy ecosystem based on the diversity in each sample. Each plant has samples of  all five seeded plants planted and yielded results in two weeks. While both specimens yielded results, I would say the ecosystem sample that was not in direct sunlight did show signs of a healthier ecosystem and believe that the temperature and light changes the other sample was exposed to could have played a part in the results. Example, living in Arizona my residence has low humidity and low temperatures at night and moderate temperatures in the mid-morning through sundown that affected the sample with sunlight exposure. The other sample, the one away from the windows, sat in the middle of my apartment on a shelf in the laundry room, with no direct exposure to sunlight, but not completely in the dark, had more stable temperatures and had constant ambient light exposure through the day and did not suffer cold drafts from the windows that could have made the other specimens plants yield lower results. 4. How does biodiversity contribute to the overall health of an ecosystem? Provide specific examples and utilize at least one scholarly resource to back your answer. Answer = Biodiversity contributes to all levels of an ecosystem. â€Å"Biodiversity, short for biological diversity, includes the genetic variation between all organisms, species, and populations, and all of their complex communities and ecosystems. It also reflects to the interrelatedness of genes, species, and ecosystems and their interactions with the environment† (Bottcher Rex, 2012, p. 39). The experiment with the two pots is similar to that of a forest ecosystem. â€Å"A functioning forest ecosystem, for example, exhibits rates of plant production, carbon storage, and nutrient cycling that are characteristic of most forests† (Chapin, Costanza, Ehrlich, Golley, Hooper, Lawton, Tilman, 1999, para. 9). The five seeds that grew in each pot were sharing nutrients from the soil and the evidence showed that certain species thrived in numbers over the others that grew. As one research analysis on biodiversity, there are always species interactions that have impact on the other species. The study stated, â€Å"Ecosystem functioning results from interactions among and within different levels of the biota, which ecologists describe as a nested hierarchy. Example, green  plant production on land is the end product of interactions of individual plants nested within populations; interactions among populations nested within a single species; interactions among a variety of species nested within a group of functionally similar species; and so on up to the level of interactions between different types of ecosystems nested within landscapes† (Chapin, Costanza, Ehrlich, Golley, Hooper, Lawton, Tilman, 1999, para. 11). While some ecosystems continue to exist, some thrive, the harm being done to, and overall health of the ecosystem is dependent on the actions we as humans take. Our society has destroyed ecosystems, species, etc. and pollution, air quality, and other factors have seen many ecosystems destroyed and become extinct. â€Å"From current research, we have identified the following impacts on ecosystem functioning that often result from loss of biodiversity: -Plant production may decline as regional and local diversity declines; -Ecosystem resistance to environmental perturbations, such as drought, may be lessened as biodiversity is reduced. -Ecosystem processes such as soil nitrogen levels, water use, plant productivity, and pest and disease cycles may become more variable as diversity declines† (Chapin, Costanza, Ehrlich, Golley, Hooper, Lawton, Tilman, 1999, para. 11). In the end, if action is not taken soon, the devastation created through our industrialization, over population in countries across the world, etc. can lead to consequences that can see more devastation and harm that may not be able to be undone if our society fails to take the necessary action to sustain life of all ecosystems. References Hilmo, O., Sà ¥stad, S. M. (2001). Colonization of old-forest lichens in a young and an old boreal i Picea abies forest: an experimental approach. Biological Conservation, 102 (3), 251-259. Chapin III, F. S., Costanza, R., Ehrlich, P. R., Golley, F. B., Hooper, D. U., Lawton, J. H., Tilman, D. (1999). Biodiversity and ecosystem functioning: maintaining natural life support processes. Washington, DC: Ecological Society of America. Hazelbaker, J. (2008). Logging on national forests national forest management zero cut – no. Retrieved from: http://www.worldissues360.com/index.php/logging-on-national-forests-national-forest-management-zero-cut-no-26744/. Corbet, S. A., Williams, I. H., Osborne, J. L. (1991). Bees and the pollination of crops and wild flowers in the European Community. Bee World 7 (2), 47-59.

Concepts of Operations Management to the Fast Food Industry

Concepts of Operations Management to the Fast Food Industry INTRODUCTION: The ability of every organisation to make profit and sustain in this competitive world revolves around its competency to perform its operations accurately. Hence although the term Operations Management seems to be recently evolved. It has oriented with the industrial revolution itsef. In a lay mans language, operations management is the effective and efficient running of the various resources within an organization. The work below looks at the various theoretical concepts of operations management and how these are applied in the practical from in the various industries. It looks the interrelation between operations management and strategic objectives of an organisation. It can be rightly said that if these two concepts have to merge appropriately for a company to survive and make profit. OPERATIONS MANAGEMENT:   Operations management can be explained as providing the finest service at the lowest possible prices. This objective can only be achieved if each and every operation within the organisation is managed optimally. The various operations within an organisation that needs to be managed are  financial operations, capital management and human resource management. The legitimate and accurate management of these valuable resources results in successful operations management according to Stevenson 1993, Operations Management can be described as follows management of systems and processes that create good sand/or provide services(  Ã‚  as cited in J.Bicheno and B.Elliot,1977,p9). A more detailed definition of operations management is given by J.Bicheno and B.Elliot 1997, a field study that focuses on the effective planning, scheduling, use and control of a manufacturing or service organisation through the study of concepts from design engineering, industrial engineering, management infor mation systems, quality management, production management, accounting and other functions as they affect the operations. (J.Bicheno and B.Elliot,1977,p9).According to Mahadevan, Operations Management is a systematic approach to address all the issues pertaining to the transformation process that converts some inputs  Ã‚  into output that are useful and could fetch revenue for the organisation.(B.Mahadevan,2007,p5).Thus a detailed study of both the definitions states that Operations management is concerned with the accurate management of the various operation within any kind of organisation so as to maximise results by minimum use of resources. Thus for any organisation to perform successfully, it is mandatory to strictly monitor the smooth functioning of the various operations within the organisation. Thus in brief the role of operations management is to  transform the input into output in an  efficiently  manner.   Following are some of the benefits of effective operations management: Improves the productivity of the organization.    Minimizes the cost of the organizations.   Ã‚  Helps in forecasting the various trends within the market.   Ã‚  Avoids duplication of work.   Ã‚  Helps in intelligent use of resources.   Ã‚  Guides the company to provide excellent services and products.   Ã‚  Helps in developing solutions for the various problems faced by the organization. (B.Mahadevan,2007,p6,7) (C.Vidler, 2001, p7). INTRODUCTION TO MCDONALDS Every organisation that exists in the market has a goal set that has to be achieved by it within a given frame of time. These are goals can also be called as strategic objectives. Each organisation before entering the competitive market sets its strategic objectives and also develops a strategy to achieve the same. The organisation that is being studied is a famous chain of Fast Food Restaurants, McDonalds Corporation US. Its an organisation that started in 1940s by two brothers Dick and Mac McDonald. They stared a small restaurant in California in 1940s.Another personality that completely changed the fate of this organisation is Ray Krocs. A combined effort of all these three entrepreneurs resulted in an organisation which is one of the leading fast food  restaurants. (web-1) .Some of the objectives of McDonalds Restaurant is To cater good quality food to the customers in an environment that is benevolent and  Ã‚  Ã‚  Ã‚  enjoyable. To keep their shareholders happy by providing good returns to them consistently. Their aim is to serve food at a faster pace which has value for money and impeccable taste and quality. They are also aim in perform their corporate social responsibilities in an effective manner. They are also doing their duties by being an eco friendly organization. A look at the  various strategic objectives it can be concluded that McDonalds has set up a defined set of objectives. They also have developed various strategies to achieve these objectives. The three features that the organisation concentrates on are quality, speed and satisfying customers. The  restaurant  has carried out many training programmes for the crew members so as to achieve the best customer service. They also focus on the  ambience  of the  restaurant  and put a lot of effort to maintain it. They also have special kids section in some restaurants so that the children and parents can have a quality time at one place. Cleanliness is not only maintained within the restaurant areas around the restaurant also cleaned up on a regular basis. They also perform corporate social duties judiciously. They support a  charity which helps the old people. McDonalds has also stopped using plastic bags and promotes the use of paper bags. They also propagate the idea of re cycling. There are many operations within the organisations. The main operations within McDonalds are  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Procurement of raw materials and machinery  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Production and Quality Maintenance  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Pricing  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Advertising and Marketing  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Customer Service  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Corporate Social Responsibilities Procurement of raw materials and machinery: The main strategies used by McDonald have to maintain the inventory is JIT, Just in Time. According to Modem, JIT can be defined as a production system to produce a kind of unit needed, at the time needed and in the quantities needed (W.Jedlicka, 2009). The idea behind this is to reduce the cost of inventory management. This also helps in providing fresh food to the customers. This stragey is successful since the mangers in the restaurants do a daily stock count at the end of the day to keep a track of the avaiable things and things that have to be ordered. This also helps to double check the sales that are performed by the restaurant. Another strategy that is used by the restaurant is the First in First out (FIFO). According to this startegy the make it a point to sell product that have arrived earlier first and then the latter ones. The whole stock management process is designed in such a manner that this principle of Just in Time and First in First Out is strictly followed. Production and Quality Maintenance: In this phase the raw materials used are converted into finished products that are presented to the customers. This is a very important step. The kitchen crew is trained to produce the products by following a standard protocol. Every product that is created in the McDonalds kitchen has to follow the protocol so as to maintain the standard and quality of the products. Handling the production bin is a very important task. Every item that is produced has a certain shelf life after which it is declared to be unfit for consumption. Hence the food items are produced sloley on the basis of demands. During the busy hours there is always a manger on the production bin who manages the bin. It is only during this period that food is created a little in excess based on the expected crowd of customers. This is a strategy used by the restaurant to avoid long ques and to provide fresh food at a faster pace. Another measure that is taken by the company is the use of labels. Every ingredient with the kitchen has a label on it. This label states the time by which this product should be used and when the product should be discarded. Such a system helps in maintain the quality of the food served. The company also has the program of Mystery Shopper. In this program a member from the companys head office visits the individual restaurants as a regular customer to check the various aspects. This visit not only checks the quality of the food, it also checks the service provided to the customers, cleanliness within the  restaurant  and the overall experience in the restaurant. Thus we can see that effort is done by the individual restaurant and the company as well to maintain high standards in terms of quality of food. Pricing: The fact that McDonalds was making a good profit even during the time of recession is a clear reflection of the fact that they have a well developed pricing  strategy. They are one of the few restaurants that have a very well established 1 £ menu as well. This pound menu not only includes only one item it has a mix of all products that can be bought. Thus it is not only cheap but also provides variety for the customers to choose from. Even the  regular meals are priced rightly. Hence the customers do not hesitate. Thus in short one can surely say that dining at McDonalds is not a good experience that is not too heavy on the pockets.   Advertising and Marketing: McDonalds uses many channels of advertising like print media, bill boards, television advertisements and also sponsorship. Any new product that enters the menu is well advertised and marketed by the company. They create a great amount of awareness of the product that is being launched. Thus  attracting  the customers to their outlets.  Ã‚  Vouchers are also provided to the customers. It has been noticed that this startegy of providing vouchers is one of the major attraction for the customers. They also have promotional activities. Some of the promotional activities that are done by the restaurant are providing Coca-Coal glasses with every purchase of a large meal. They also play the game of monopoly in this every product that is sold to the customer has a sticker which may either be a part of the monopoly game or will be a coupon for a free product from their menu. Another marketing strategy that is used by the company is the use of loyalty cards. This helps in compelling their customers to come back to the same place. They also use the strategy of innovation. In this there will  able a particular range of new products that will be  available  for stipulated period of time. Once this time period is over they will have a new  product that  takes it place. Hence there is something new every time a customer walks- in. This helps in retaining the customers. Customer Service: This operation forms the base of the organisation. The aim of the company is to make the experience at the restaurant a unique one. This is only possible by providing excellent customer service. The company trains the newly recruited employees for providing excellent customer service. The crew members are asked to be sensitive to the needs of the customers. Although they have a protocol to treat the customers the employees are given the liberty to act according to the need of the  situation. Especially in the case of senior employees and mothers.  Ã‚  The company strongly believes that only if a customer is comfortable at the restaurant will they come back. Hence all measure is taken by the store employees to make sure that the customers are  completely  satisfied when they leave. They also have crew training programmes on a regular basis to upgrade the service and to develop new skills. Regular meetings are conducted to deal with any issues that are faced by the employees. T he company also promotes the crew members to take part in the various programmes that are conducted by the company. Thus motivating the employees. The company does annual appraisal in terms of salary as well as position based on the employees performance.   Corporate Social Responsibilities: According to P.Kotler and N.Lee, Corporate social responsibility is a commitment to improve community well-being through discretionary business practices and contributions of corporate resources (P.Kotler and N.Lee, 2005). Thus it can be seen that CSR has to be a way of functioning of every business that  exists. This function has to be implemented in every activity within the business. McDonalds officially absorbed this function into their operation in 2007; it was at this time that they developed a Sustainable Supply Steering Committee (SSSC).this committee was responsible to keep a check on the supply chain activities within the organisation. The company adopted the  Three Es into their supply chain. These are Ethical Responsibility, Environmental Responsibility and Economic Responsibility. The idea behind adopting these were to make sure that all the operation carried out within the organisation follow a ethical pattern  Ã‚  (Web 2). The company has also developed a Global Advisory Council (GAC) in 2004 that provide advice as to how  create a menu that provides healthy nutrition and a balanced-diet to the customers. (Web-3) Thus we see that every operation within the organisation from the procurement of raw materials to the disposition of corporate social responsibilities is performed diligently by the organisation. A smooth co -ordination between this function is the secret to the success of the organisation. This individual operation has to be controlled in an effective manner for the overall stable performance of the organisation. QUALITY, RESOURCE AND TOOLS MANGEMENT: The word quality has different meanings based on individual perceptions. For some quality of product or service means. The nutrition value or standard of the product or service for some others quality is that the product or service should meet their requirements  satisfactorily. In some other cases quality means value for the money that has been spent. Hence there is no definite way in which quality can be described. However an official  definition  of Quality has been given by International Organization for Standardization ISO 2000, the extent to which a group of intrinsic features (physical, sensorial, behavioural, temporal, ergonomic, functional, etc) satisfies the requirements, where requirement means need or expectation which may be explicit, generally implicit or binding.  Ã‚  (A.Illy and R.Viani, 2005).Another pragmatic definition of quality is given by Harrington 1990, Meeting or exceeding customer expectations at a cost that represents value to them. (A.Illy and R.Vi ani, 2005). In any company quality of the product and service is based on resources, tools and systems used by the company. McDonalds serves beef patties, these patties are made from cows that are corn -feed  in the U.S and some of these are also imported from Australia and New -Zealand. These patties are instantly frozen to maintain the freshness and quality. This process of freezing is known as Individual Quick Freezing developed by Herb Lotman. Herb Lotman is the founder of the Keystones Company, which is one of the major suppliers of McDonalds. The French fries are cooked in Canola Oil which provide 0 gram of Trans Fats. Salads that are served at the restaurant are freshly prepared in the restaurant as per the request of the customer. No preservatives are used in the salads that are served in the  restaurant. Most of the fountain drinks that are served at the restaurant are regularly monitored to maintain optimum quality. All milk based drinks are well pasteurised and mainta in high standards and quality. McDonalds coffee which is very famous is obtained from Brazil, Gutaemala and Costa Rica. The equipment that is used in the McDonalds Kitchen is Grills, Microwave, Shake Machines and many more. The grills are standardised to cook a particular meat, so they automatically set the time for cooking the meat. These grills are cleaned on a regular basis at the end of the day with strong solvents to ensure its cleanliness. The shake machines and the fountain drinks machines are regularly cleaned to ensure quality of the drinks. The fries are cooked in the frying vat at high temperatures. The quality of the oil is checked regularly to maintain the quality of the food. TOTAL QUALITY MANAGEMENT AN ANSWER TO ALL QUALITY ISSUES: The perfect way to imbibe quality as a part of the organisational culture is by adopting the principles of Total Quality Management. According to A.Rawlins, Total Quality Management is a way of managing to improve effectiveness, flexibility and competitiveness of an organisation as a whole. (R.A.Rawlins, 2008 p19). This concept of TQM proposes that quality is not a term that should be confined to the end product or service. Quality has to become a part and parcel of every operation within the organisation, thus making it an obligatory to maintain the same at every step. According to G.K.Kanji and M.Asher TQM can become a part of the organisation if its principles and concepts are applied accurately. They have given four principles of TQM and eight core concepts  for TQM.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Principles  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Core Concepts   Ã‚  I.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Delight the customer:  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Customer Satisfaction, Internal Customers are real   II.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Management by Fact:  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  All work is process, Measurement   III.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  People-based Management: Team work, People make quality   IV.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Continuous Improvement: Continuous improvement cycle, Prevention. If all the areas mentioned in the above diagram are well managed this will result excellent functioning of the organisation. In which quality is maintained at every step hence there will not be any quality related issue. (G.K.Kanji and  M.Asher, 1996, p1). Advantages of Total Quality Management: 1)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Helps the organization to concentrate of the market trends. 2)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Inculcate a culture of quality in every aspect of the organization from top to bottom. 3)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Regularly assess all the process within the organization to eliminate outdated processes. 4)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  To  continuously  develop new strategies for the company to achieve the changing strategic objectives of the organization. 5)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  To work as a team and have problem solving attitude. 6)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  To keep the goal and achievements of the organization well communicate d at every level. 7)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  To always involve in a continues development programmed.   (R.A.Rawlins ,2008,p20,21). SCOPE OF IMPROVEMENT: No organisation a be sated as perfect because there is room for improvement. An organisation that always updates or modified itself according to the need of the market is always successful. Carrying out a SWOT analysis is the best possible way to identify the weak links within an organisation. There is a lot of speculation on the companys role in providing nutritional food. As obesity is one of the major health issues in the current scenario. The company will have to reinforce as to how they are contributing to the society by providing food of the top most quality. It has been noticed that McDonalds faces the problem of high rates of attrition. This is a serious threat for the company as it is based on customer service. The reason this becomes a major issue is because it become an additional cost. As well the can also affect the companys sales and overall image. An unpleasant experience in the restaurant can be a major disaster. This can result in bad or negative marketing for the or ganisation. Another issue that is faced by the company is the health issue. The effect of this high turnover ratio on the organisation is as follows: 1)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  High  financial  cost in terms of training the employee every time. 2)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Lack of trained employees can result in downfall of the organization. 3)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Reduced productivity and interruptions in the workflow 4)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Loss of expert professionals. 5)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Loss of business opportunities as the company is overwhelmed by the internal issues. 6)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Administrative issues within the organization. 7)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Loss of job satisfaction of the other employees and insecurities among the employees. (P.P.Phillips, 2002) RECOMMENDATIONS: The major issue in McDonalds as mentioned earlier is the high rate of attrition. Below are some of the points that would help in retaining the employees. Another problem that is faced by the organisation is a health issue. Ø  Ã‚  Peers Reviews is one of the strongest methods that can be used for employee retention. Ø  Ã‚  Fostering trust and respect and reducing management employee conflicts by regular meetings.(J.A.Carsen, 2002). Ø  Ã‚  Doing timely performance appraisals. Ø  Ã‚  Continuous motivation to be done- by rewarding at achievements. Ø  Ã‚  Recognition given to good work. Ø  Ã‚  Regular meetings to solve any grievances. Ø  Ã‚  Training the employees accurately. Ø  Ã‚  Job rotation should be practiced avidly so as to increase employee knowledge and enrich his experience. Many a times there have been cases were the organisation has been blamed for being responsible for health issues like obesity. Although the organisation makes use of healthy food ingredients there are such speculations. The best way to deal with this is to market the right and more explicit information on their products. This not only allows the customers to have a clear picture but make healthy choices while ordering. They can also get their food certified by authorities in the health and food section. Such an attempt will only help to clarify these false allegations. Last but not the least a customer survey should be done to identify their opinion and bring about changes within the organisation in a manner which is helpful to the company and the customers. Such an effort on the part of the organisation will strengthen their relation with their customers. CONCLUSION: Quality can be defined as anything that has value for the money and energy spent on it. It is not a onetime attempt to set up a good system in action and then never bother about it. Every organisation should maintain its quality standards not for good sale and profit, but must develop quality as a culture within the organisation. This culture of quality has to be passed down into every process within the organisation. It is only then a company will never face failures in achieving its goals  and objectives.   REFRENCES: 1)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Web 1:  http://www.aboutmcdonalds.com/mcd/our_company/mcd_history.html 2)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Web2:  http://www.aboutmcdonalds.com/mcd/csr/about/sustainable_supply.html 3)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Web3:  http://www.aboutmcdonalds.com/mcd/csr/about/nutrition___wellbeing.html 4) J.Bicheno and B.Elliot (1997), Operations Management: an active learning approach, Blackwell Publishers Ltd, UK, p9 5)  Ã‚  B.Mahadevan(2007),Operations Management Theory and Practice,Dorling Kindersley(India) Pvt Ltd, India,p5 6)  Ã‚  C.Vidler(2001),Operations Management, Heinemann Educational Publishers, Oxford. 7)  Ã‚  W.Jedlicka(2009), Packaging Sustainability, John Wiley Sons Inc, USA,p303 8) P.Kotler and N.Lee(2005), Corporate Social Responsibility, John Wiley Sons Inc, USA,p3 9) A.Illy R.Viani(2005), Espresso Coffee: The Science Of Quality( 2nd  edn), Elsevier Academic Press, UK,p2 10)Web4:  http://www.mcdonalds.com/us/en/food/food_quality/see_what_we_are_made_of/your_questions_answered/fresh_produce.html 11)  Ã‚  P.P Philips(2002), Retaining Your Best Employees, American Society For Training and Development,USA,p2 12) J.A.Carsen(2002), HR How to Employee Retention, CCH Knowledge Point, USA. 13) G.K.Kanji and M.Asher(1998), 100 Methods For Total Quality Management,Sage Publication Ltd, London, p1-2