Competition Bikes, Inc.
Should the company change to activity-based costing?
Before deciding whether the company should change to activity-based costing (ABC), it is critical to understand what ABC is. ABC is a "special costing model that identifies activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption by each. This model assigns more indirect costs (overhead) into direct costs compared to conventional costing models" (The Economist, 2009). The real benefit to ABC costing for Competition Bikes, Inc., is that it would permit the company to see what part of the overhead expenses were being used for the Titanium Xl and the CarbonLite modes. Each Titanium XL uses $136 in direct labor and $240 in manufacturing overhead. Each CarbonLite uses $294 in direct labor and $420 in manufacturing overhead. However, the models have significantly different selling prices. Therefore,…… [Read More]
Competition in these markets, therefore, is unlikely to be on the basis of product innovation. Service innovation is possible to some degree with the Internet, but there are only so many ways to deliver insurance -- it is a product centuries old and not subject to much innovation. In a market like this, service and price are two methods of gaining competitive advantage. Private insurance firms use proprietary actuarial tables to set rates, and this might be the only way that an insurance firm can gain advantage, since it is nearly impossible to derive sustainable competitive advantage from service. Thus, profit margins are slim and a firm can improve the spread between the table and the consumer price only by increasing volume. This leads to a price war as firms fight for market share. Knowing that price wars are devastating to businesses on already thin margins, the companies in the…… [Read More]
However, because fast food is in part defined by its price point, the companies have only limited pricing power at the high end. Firms in the industry also tend to adopt either permanent or temporary cost leadership strategies (such as 99 cent menus) in order to attract business. The companies are unable to sustain low prices in this industry because the margins are inherently low and because most other firms are capable of matching those prices, negating any market share gains the low prices offer. Thus, fast food companies only have a small degree of pricing power, another characteristic of monopolistic competition.
The fast food industry exists within a broader "food" industry, which is a more competitive environment. Fast food companies are able to set their own prices in order to compete and fast food companies have simply chosen to follow cost leadership strategies. The segment of the food industry…… [Read More]
Competition Laws in Hong Kong
Competition is a mainstay in business just as much as it is for any sports team. Businesses, in general, would probably rather that they have their industry all to themselves, but healthy competition drives the market. Without it there would be no need for innovation, and the one company could set the price of goods wherever they wanted to. Therefore, competition is good for a business because it is good for the consumers. In recent years, the governments of Hong Kong and the People's epublic of China (PC) have both enacted competition or merger law which is supposed to make for a fair free market within the country. This has been met with opposition and with skepticism, but the general feeling is that it could open markets to both smaller investors and foreign firms. This essay will focus on defining what competition law is, the…… [Read More]
Competition Bikes Budgetary Analysis
Budgetary Areas Raising Concern in the Budget Plan.
Competition Bikes, Inc. - Year 8 Budget Concerns
The master budget for year 8 of Competition Bikes, Inc. has all of the required schedules and data. The data is generally sound and there are but a few concerns with regards to its presentation and content.
Concerns -- Lack of Quarterly Activity Reporting
The merger committee's first concern is that all of the reported activity is not broken down by quarter. Since bicycling is usually practiced in the outdoors and is weather dependent, we can assume seasonal the usual seasonal trends with regard to competitions and events that revolve around professional cycling teams.
Without a separation of production (especially by product category, e.g., Carbonlite, etc.) activity by quarter, we cannot forecast and respond to peak and low seasons. For example, many materials are purchased without regard to seasonal activity.…… [Read More]
In this case, the average total cost will continue to decline as the scale of production increase, because fixed (or overhead) costs are being spread over higher and higher levels of output" (Natural monopoly, 2010, Tutor2U). According to economic theory, it is efficient to allow for a natural monopoly because competition would require too large of a diversion of available resources for a competitor. When natural monopolies exist, they are often heavily regulated by the federal government. Examples of natural monopolies include local economic entities such as utility companies (electricity, water, gas, telephone, and cable television services). Given the large investment it takes to provide utilities, and the frequent stress upon the environment it is deemed mutually beneficial for all to have such legal, natural monopolies (Crawford 2005).
Today, four major antitrust laws exist. The first was the Sherman Anti-Trust Act of 1890 which forbade the existence of trusts and…… [Read More]
Now the stores want to make sure that the turkey that they sell is the best turkey and cost the least. In this situation they are competing for the consumer's business.
However, business owners of a monopoly situation disagree with the government. When there is a business that has the potential to become a Competition vs. Monopolies 2 monopoly the government watches it very closely and the business has to go through the government for mergers and such. The more the business becomes a monopoly, the more the government says no to the business's requests. For example, there is Microsoft. The government has been working to keep Microsoft from being the big business that it is today.
So, in conclusion, a perfect competition economy makes benefits for the consumer. Likewise, a monopolistic economy makes benefits for the business owner. On the flip side, a perfect competition shows drawbacks for the…… [Read More]
ather, it is clear Toyota management became too arrogant for its own good, often side-stepping the most critical parts of the TPS quality management initiatives in order to make the production schedules that sent between 40,000 to 60,000 Camry autos to the U.S. For sale every month (Potter, 2010). The TPS today is actually the source of greater knowledge about how to solve their brake and recall problems. The current problems aside, the TPS has proven to be a knowledge sharing network that is very effective for competing in a market duopoly where intelligence not costs are the main differentiator (Dyer, Nobeoka, 2000).
Lean manufacturing concepts from the foundation of competitive strength of the two dominant companies that form the market duopoly. While each share this common foundation, their respective approaches to manufacturing execution vary significantly. Airbus deliberately created their organizational structure to support more of an engineer-to-order supply chain,…… [Read More]
They did not seek a partner or an acquisition (Schoolcraft, 2007). As of yet, however, they have not made an entrance into the Atlanta market, as their move came at the outset of the economic downturn.
The Atlanta situation exemplifies a shift in Lennar's approach. For much of the past, the company had relied heavily on joint ventures as a means to enter new markets, in part to mitigate the risks and in part to reduce the cost of entering the new markets. However, the financial crisis has left some of their partners unable or unwilling to meet obligations. As a result, Lennar was forced to writedown many of these ventures, and shifted their focus towards a more secular growth model (2008 Lennar Corporation Annual Report).
The Lennar Corporation operates is 57 markets around the country (Lennar.com, 2009). They have used a number of different market entry strategies to fuel…… [Read More]
Competition Bikes, Inc. is a company that manufactures and sells high-end 2-wheel bicycles for sporting enthusiasts, racers, and professional bikers. This is a highly competitive industry and is likely price elastic because it is more of a luxury good -- not a necessity with a limited but global market. Key data for our analysis is based on the Income Statements and Balance Sheets for Years 6, 7, and 8. Our data may be viewed thus:
The clear issue for the company is that the growth experienced in Year 7 did not match sales in Year 8. Further data analysis shows that the company is relatively healthy, but does show some weaknesses when compared with industry standards:
CBI has assets that exceed its liabilities by almost 6 times, higher than industry average.
Lower than industry by almost 14 days, or close to…… [Read More]
Competition Comes to the U.S. Farm Sector
The United States has always supported its farmers through a number of different policies. This policy has included programs designed to distribute the nation's land in an equitable fashion, increase productivity, raising the standard of living of American farmers and helping them to market their products (estcott and Price, 2001). U.S. farm policy since the 1930s focused on price and income supports. Until the introduction of the 1996 Farm Bill, the price support system relied on a series of acreage limits and storage programs (estcott and Price, 2001).
The basis of the current farm policy began during the Great Depression. The focus of the original farm policy was limited; however, the past 15-20 years have seen a broadening of this policy to include many other things other than price support. (estcott and Price, 2001). In 1985 policy changes were instituted that moved the…… [Read More]
Competition Bikes Inc.'s financial status requires evaluating its internal operations reflecting the horizontal, vertical, ratio, and trend analysis, as well as its working capital. hese reviews provide profit margins allowing for projecting any necessary budget restraints in overhead costs and sales potential. Yearly production performance comparisons, based on overhead vs. profit, enable a budget projection for ordering production materials on a month-to-month basis. (Shim, J. And Siegel, J. 2009).
he horizontal analysis is the study of percentage changes of comparative statements in the case of Competition Bikes Inc.'s years six and seven, and seven and eight. Using the horizontal analysis chart, Competition Bikes Inc., shows the accounts payable, between years six and seven increased as it did between years seven and eight.
According to the horizontal analysis, Competition Bike Inc.'s net sales between year six and seven increased 33.3% at $1,495,000. Net sales of the CarbonLite product, between…… [Read More]
Considering, things have become even more competitive it is even more essential to have a mission.
Although it was difficult to get a true handle on how many companies now develop mission statements, googling brings up scores of sites that promote their importance. However, a large number of sites still discuss the number of companies who develop them incorrectly or do not follow them once they are written. For example, a 2000 survey found that U.S. workers want their work to make a difference, but 75% do not think their company's mission statement has become the way they do business (Workplace 2000 Employee Insight Survey). Unfortunately this often happens because the management team that developed the mission statement have since gone to other companies or the organization, itself, has been acquired and the direction is completely changed. A third reason this happens is because a mission statement is created and…… [Read More]
Kahn, K.B., Mentzer, J.T. (1996), "Logistics and interdepartmental integration," International Journal of Physical Distribution & Logistics Management, Vol. 26 No.8, pp.6-14.
Lambert, D.M., Burduroglu, . (2000), "Measuring and selling the value of logistics," International Journal of Logistics Management, Vol. 11 No.1, pp.1-17.
Lambert, D.M., Emmelhainz, M.A. And Gardner, J.T. (1996) "Developing and implementing supply chain partnerships" International Journal of Logistics
Management, Vol. 7 No. 2, pp. 1 -- 18.
Mentzer, J.T. (2004). Fundamentals of Supply Chain Management: Twelve Drivers for Competitive Advantage. Thousand Oaks, CA: Sage Publications, Inc.
Mentzer, J.T., Min, S.H. And Zacharia, Z.G. (2000) "The nature of inter-firm partnering in supply chain management," Journal of etailing, Vol. 76 No. 4,
pp. 549 -- 568.
Mentzer, J.T. (1999), "Supplier partnering," in Sheth, J.N. And Parvatiyar, A. (Eds.),
Handbook of elationship Marketing, Sage Publications, Thousand Oaks,
CA, pp. 457 -- 477.
Morgan, . And Hunt, S. (1994) "The commitment-trust theory…… [Read More]
External and Internal Environments
Two segments of the general environment that influence the corporation
The technological developments in the market are important to the achievements of any Smart phone company that is constantly expanding. As competition increases, Nokia must make sure that their smart phones are at the highest innovation level. With features such as internet, camera, email, and social networking necessities on smart phones, Nokia will have to think of other features, to help differentiate and separate itself from its competitors. A number of clients look at the software operating all the functions as a key signal of the achievements and quality of the Smart phone. Therefore, Nokia's partnership with Microsoft Company for their newest smart phones seems an excellent move as the market is cognizant of the technical abilities of Microsoft, and the benefit to technological items. Previously, Nokia dominated in the cell phone market (Burn & Ash,…… [Read More]
American Healthcare eform: The benefits of a single-Payer solution
The American healthcare system is unsustainable. It is the most expensive in the world. Despite its costs, American healthcare does not measure up in terms of performance when compared to other industrialized nations. This paper argues that the best healthcare reform policy for the United States does not involve the creation of competition among healthcare providers. ather, a national healthcare policy should implement a universal-payer system. Creating a single risk pool is the most efficient solution for two reasons. Firstly, a single-payer system will reduce the administrative overhead that currently burdens America's multiple-payer system. Secondly, all demographics in American society will be treated with equally when it comes to healthcare coverage.
The United States currently spends more on healthcare than any other nation in the World. Nevertheless, the U.S. lags behind other nations in terms of the quality of its healthcare…… [Read More]
James Baxter Company
Suppliers and Intermediaries
Key environmental factors
The bakery industry is one of the industries driving and contributing to the stability of the global economy. Financial analysts report that, the financial growth of the industry is postulated to increase from the current $235 billion in the year 2010 to $130 billion in the year 2015. Some of the factors expected to fuel economic growth of the bakery industry include affordability of the bakery products, convenience, and health benefits associated with the baked products. Therefore, it is important for new entrants into the market such as James Baxter bakery to conduct market analysis to ensure its success and performance in the competitive marketplace full of established bakery industries (Cousins, Foskett, and Pennington, 2011).
Conducting market analysis will enable the James Baxter bakery to acquire vital information related to the…… [Read More]
The economic system of the United States is based on the fundamental principle that the free market, with limited government intervention, is the most efficient economic system. Free markets do a better job of creating and distributing wealth than other economic systems. Yet, there still needs to be some government influence on the markets because only government can serve as a counterweight to business, to protect the interests of both consumers and investors. It is along these lines that most government regulation of business exists. There are a couple of key classes of laws that the U.S. has to further a balanced, fair and competitive economic system. The first of these are the antitrust laws, another class is securities laws and there is also a section of basic criminal law that deals with business as well. This paper will explore the legal environment in the context of promoting competitive…… [Read More]
Kudler Fine Foods
as a whole has grown more and more sophisticated about food: demand for international foods (including organic and specialty items) has grown exponentially in recent decades. Much like Whole Foods and HEB, Kudler markets to a large target audience but offers a very specific range of products. Kudler is not like, for example, a vegetarian restaurant that solely caters to vegetarians. It offers many foods spanning from wine to cheese to fresh fruits and vegetables that foodies with many different palates can enjoy. It has a niche marketing strategy in the sense that it does not offer a wide variety of products. There are few standard processed foods like Oreos and sweet cereals at the store: the packaged foods that are offered tend to be imported goods.
Competing solely on price alone (which Kudler does not) is seldom thought to be an effective strategy, given…… [Read More]
Traditionally, the transport system was un-integrated and highly segmented, with each mode seeking to exploit its safety, reliability, service and cost advantages to the best of its ability so as to increase revenue and retain business. Each mode viewed the other as a competitor and, hence, treated it with some level of mistrust and suspicion. Public policy accentuated the situation further by frequently barring "companies from owning firms in other modes" (odrigue & Slack, 2014). This system had one significant drawback; load-unit changing procedures attracted high costs which in addition to delays and terminal costs made the transportation of bulk commodities quite expensive (odrigue & Slack, 2014). Efforts to integrate the different modes of transport (intermodalism) began in the 1960s.
The Office of Security Policy and Industry Engagement has ensured the effectiveness of intermodalism through the formulation and implementation of a strategy that does away with industry threat…… [Read More]
Yet, it was continuing to force many organizations to take on large amounts of risk to increase their profits. This exposed them to swings in the economy, as they were so large that they were a major player inside the sector. While at the same time, many of the different elements of perfect competition existed. This is significant, because it shows how the overall model has been changing. At which point, many competitors have been adapting to: these shifts and are using tactics that are increasing their risks. In many ways, one could argue that the new definition has meant that these organizations are not experiencing perfect competition. Instead, they are engaging in activates that will increase their overall exposure to host of events (that are disguised as perfect competition). This has led directly to the shifts in this definition, which have caused different economic calamities (i.e. The financial crisis).…… [Read More]
While competition can therefore be favorable for both the manufacturer and consumer, it could also be beneficial for the economy in general. n addition to providing better quality and service, the competition in the motor industry for example creates an environment in which the consumer receives the best value for money. A wider variety of choice provides the consumer with many different options in terms of safety, aesthetic quality and pricing.
n terms of job creation and provision, competition relates to compensation and bonus packages. Workers are attracted to motor companies with the best package available. Employees are attracted by packages including elements like bonuses and other incentives for excellent performance. n this way, competition results in a healthy, growing economy.
sidore, Chris. (2000, Dec. 12). "Ed of the road for Olds." CNN Money, 12 Dec. 2000. http://money.cnn.com/2000/12/12/companies/oldsmobile… [Read More]
Monopolistic and Oligopolistic Competitions
Compaison between monopolistic competition and oligopolistic competition
Monopolistic competition is a maket stuctue whee lage numbe of fims sells diffeentiated poducts that ae highly substitutes to one anothe but not pefect substitutes. Thee is a fee enty and exist in the monopolistic competition, and the fims demand cuves ae downwad sloping. Examples of a monopolistic competition ae the fims poducing clothing, toothpaste, estauants etc. On the othe hand, oligopolistic competition is a maket stuctue whee thee ae few fims competing among one anothe. Thee is a baie of enty because of the economic of scale, patent, and the technology involved in setting up the fim and the pesence of few fims give the fims advantage to make excess pofits. Examples of oligopolistic competitive maket stuctues ae automobiles, steel, aluminium, petochemicals, and electical equipments. While thee ae few fims in the oligopolistic maket, thee ae…… [Read More]
role that competition plays in U.S. healthcare
This paper presents a detailed examination of the role that competition plays in U.S. healthcare. The writer explores the impact that the ability to compete for consumers has on the health care industry in America. The writer also looks at the behavior of private and public organizations throughout the nation in the health care industry and speculates both negative and positive conclusions about the long-term impact health care competition will have on the industry. There were five sources used to complete this paper.
The biggest issue in the health care debate today is the financing of the industry. Millions of people are going without insurance or care because they cannot afford the cost. Those who do have insurance are paying premiums that threaten to break the bank, and the companies who are trying to cover the cost for the workers are having a…… [Read More]
Of course, this is a good thing for customers on short-term, but is negatively affects other companies on the market. This is because smaller competitors and especially those that intend to enter the market addressed by IBM find it at least difficult to provide product prices in accordance with those provided by IBM. These smaller companies do not have the ability of reducing their production or operating costs, which does not allow them to introduce competitive prices on the market. This way, they are clearly disfavored by IBM's position and market power.
In addition to this, in a field like it, it is imperative to make continuous investments into the research and development activity. This requires significant capital amounts from these companies. The investment levels that IBM reaches cannot be reached by many of these companies. This makes it difficult for these companies to keep up with IBM and its…… [Read More]
Distraction vs. Competition on Performance
People work best in a quiet environment. A little competition is a good thing. These two tenets have been the pillars upon which the modern school and office have been built. A recent study conducted in a Psychology Research Methods Lab seeks to determine which of these conditions has a greater effect on individual performance.
Several studies have shown that the introduction of noise into an environment has a negative affect on recall. Early examinations of the effects of noise on performance emphasized intensity of sound over other characteristics. However, more recent studies have demonstrated that "the disruptive effect of irrelevant sound on performance is in fact independent of the level of sound." (Jones, 1999) In fact, performance can decline between 30 and 50%, even if the individual is not paying attention to the sounds around them (Jones, 1999).
Conversely, the positive effects of competition…… [Read More]
Instead, IM began to falter after a series of product failures. As a result, many companies gained market share against IM with some even over taking it; an efficient market took care of the issue.
Yet, another example of why government should not interfere with market structures is the airline industry. After 1978, the airline industry was quickly transformed into an oligopoly market structure where only a half dozen or so companies controlled 90% of U.S. travel. Airlines such as American mostly enjoyed high profits until 2000, taking advantage of limited competition and their ability to price discriminate to increase profit margins for those customers who were willing and able to pay higher prices. eginning in 2000, everything came crashing down for the airlines (pardon the pun). American airlines lost money from 2000 until it finally reaped a small net profit in 2005. The oligopoly market structure that once fueled…… [Read More]
4. easons for Differences in Supply, Demand and Price
Before presenting the two major reasons which generate changes within a monopolistic market, it is necessary to state that they refer to a general market, rather than the soft drinks market, which stands fairly increased chances of regulating itself on the long run. This being said, the two reason are the mechanisms of setting price and the control of the monopoly.
Within a well regulated market, in which economic agents compete through the implementation of the principles of friendly competition, the retail price of a commodity is established based on the assessment of the offer and the supply. This feature constitutes the primary reason as to why differences occur in the demand, supply and price, as these three elements are no longer established within the free market, but by the discretionary desires of the monopolistic organization.
The second element of the…… [Read More]
Company members falsifying, altering, destroying or otherwise tempering with organizational documents risk punishments between fines up to 20 years imprisonment
Organizational staff members notifying their superiors or the legal authorities of fraudulent operations are protected under the whistleblower protection provision. People who retaliate against the individuals who offer condemning information of the company are punished with anything between a fine up to ten years imprisonment (Prahalad, 2008).
As an addition to these provisions, it is automatically implied that the auditor will keep an objective opinion and will perform his tasks within the highest standards of professional quality. Yet, since it is possible for the auditor to have shares in the respective organization, have a child employed there or other such situations, he is asked to identify the existence of any conflicts of interest and withdraw from the audit process.
At a first level, the Sarbanes-Oxley act was expected…… [Read More]
In fact, many of them are more likely to make sure that as much space is provided when it comes to taking over the Internet. For example, these individuals want to make sure that they are likely to get what it is they want by having a Web presence. This means that they are going to do everything possible to have as many contacts as possible from off the Internet in order to get as much revenue as possible that it could lead to a monopoly. In essence, if a monopoly does occur, then they are going to face breaking the law in the process. Furthermore, privacy issues are concern because of how much of a giant they have become since the inception of the organization as of 2004 (Facebook, 2011d).
By studying Porter's Five Forces, one learns that Facebook is an MNE that is as big as Google. They…… [Read More]
For specialty goods, however, brand and packaging are very significant (Nickels, McHugh, & McHugh, 2005). These are items that are purchased because of their brand of packaging. In other words, the person that goes to a jeweler to purchase a Rolex watch with a gift box and papers will not settle for a Timex in a plastic box because it is cheaper. Cell phones are also considered to be specialty goods because packaging, brand, and features matter very strongly to many of the people that purchase them. These people may be interested in whether the phone offers text messaging, camera features, or eb access, among other features. They may also be interested in what they can save or what they receive along with their phone, which means that they will be interested in irelesstoyz because the company offers many important promotions that customers will see as being valuable. The idea…… [Read More]
Monopolistic competition occurs in marketplaces where there is competition, but the competition is imperfect. Firms sell goos that are similar, but firms have ifferentiate them, either practically through prouct or service characteristics, or through avertising, so they are perceive as being ifferent by the consumers (Gillespie, 2013). This creates the ability to act in a manner similar to a monopoly in the short-term (Gillespie, 2013). The concept may be examine in more etail by ientifying several firms that are monopolistic competition, an how those firms may become more monopolistic an face less pure competition.
Three examples of monopolistic competition are McDonals on the fast foo inustry, Disney Inc. In the entertainment inustry an Apple in the IT inustry. Each has a highly ifferentiate prouct that is similar to others on the market.
To become more monopolistic firms may unertake a range of strategies to limit the effectiveness of competition. To…… [Read More]
business proposition business competition chain. Word count: 400 words B) Based idea produced question 1 part A, explain main difficulties/barriers? Word count: 400 words Question 2 A) eflect possibility finance business.
In the current context of the unstable economy, more and more people and firms have come to lose their activity and their savings. In such a context, they seek to become engaged in new opportunities, to create new business ventures and to ensure their functioning and living. In other words, despite the still ongoing effects of the economic crisis, fact remains that some business ideas could turn into successful ventures. One example in this sense is that of providing child care services.
The small firm would operate in its own facility, but would provide a series of services outside its facilities, as well. For instance, the company could pick the children up in the morning and drive them to…… [Read More]
Non-Price Competition BETWEEN HOME DEPOT AND LOWE'S
The Home Depot was founded by Bernie Marcus and Arthur Blank. They opened the first Home Depot stores in Atlanta on June 22, 1979. The first few stores were later attached to Treasure Island stores, stocking around 25,000 products. Today, on average, Home Depot stores are large covering an area of approximately 130,000 square feet, and offering between 40,000 and 50,000 products. While the initial motto of the company was to provide the products at the cheapest price, later on the company began to provide hands-on training for attracting the customers from various walks of their lives (Howell, 6).
The Home Depot grew to encompass stores in Georgia, Florida, Louisiana, Texas, and Alabama within the first 5 years and this growth continues to this day.
Home Depot's approach is simple. It opens massive stores (130,000 square feet, on average) at different locations and…… [Read More]
The Psssssst! brand is well-established in dry shampoo. It is owned by Freeman Beauty Labs. The brand comes in several varieties, including the regular Dry Shampoo and Dry Shampoo avy Curly. On Amazon (2013), the regular Psssssst! is priced at $5.71 for a 5.3 ounce container. The product reviews on Amazon (2103) indicate higher customer satisfaction than with Tresemme. It is difficult to infer from the marketing who the target market for Psssssst! might be under Freeman's ownership.
Batiste has a wide range of dry shampoo products available, including Original, Dark and Deep Brown, Blush Hair, Blush Floral & Flirty, Tropical, a Hint of Color, and more. The Original is priced on Amazon at $8.45 for a 5.05 ounce container and the specialty products in the line are typically priced at a premium to this. The company is independent and British (Batiste.com, 2013), specializing in dry shampoo as…… [Read More]
Fluor and Their Competition in the Construction Industry
usiness Strategy(s)/Strengths of Fluor
Porter's Five Strategies/Forces
usiness Strategy(s)/Strengths of Fluor
Fluor Corporation is seen as one of the largest and publicly owned organizations in the world. It is in the business of engineering, procurement, construction and maintenance of facilities for manufacturing organizations. As a company it operates through its subsidiaries and has become now one of the world's business leaders. It is able to provide very good expertise and technical knowledge during all phases of a project. The strength of the company is viewed by its customers as being able to provide the best possible solutions which are able to optimally use the assets of the customer. This helps the customers improve their competitive business position and provide greater successes…… [Read More]
The bargaining power of suppliers
High, given that suppliers can exercise a great deal of leverage in promoting an antivirus product. Consumers are often unsure how to judge antivirus software, or even why they should purchase it at all. Including free trials for antivirus software on PCs, using in-store or website promotions, and other brick-and-mortar methods can be highly influential in encouraging consumers to buy a particular product. While free versions can promote themselves on the web, consumers who are security-conscious may seek a more reputable venue in which to purchase the product.
The popular computer magazine PC Magazine did not give the $39.95 Norton AntiVirus software a glowing endorsement. It was particularly critical of its un-installer. Norton's protection was deemed solid, nothing more (2010 eviews, 2010, PC Magazine). $29.95 VIPE AntiVirus + AntiSpyware was called "the lightest-running, best antivirus software for 2010" in the magazine's reviews section. McAfee…… [Read More]
Production and Market Competition
Microeconomics Module 3 - Case Production, Costs, Profits Cost Profit in assignment, review reference material: Rittenberg Libby T. Tregarthen. (2009). Chapter 8: Production Costs. Sections 1-4 Principles Microeconomics.
Choice of factors of production
A firm's choice of factors of production to change will be determined by likely outcomes of the change. In the short run, a firm can only increase its variable cost. The required consideration in this case is marginal return. The needs to assess whether increasing a variable cost leads to; increasing marginal returns, diminishing marginal returns or negative marginal return. In the long run, a firm's production factors can all be changed. The firm will need to consider the marginal benefits and loses from capital or labor increments.
The considerations that the restaurant manager need to have is the likely change on its cost function. The manager should also be guided by the…… [Read More]
Environmental Noise May Have a Negative Impact on Human Cognitive Abilities
Environmental noise may have a negative impact on our cognitive abilities. In contrast, competition may attenuate the negative effects of noise on cognitive abilities. Further, noise and competition may interact in their effect on cognitive abilities. In this study, researchers attempted to determine if environmental noise reduced the performance of participants in a visual task. Specifically, participants were asked to locate objects in a picture, and then exposed to noise alone, competition alone, or noise and competition, or no noise or competition. Competition was defined as the presence of a $20 award, while noise was defined as white noise.
Participants were timed in the cognitive task.
There is compelling evidence that noise can alter human cognitive abilities. A recent study published in Psychological Science demonstrates the potentially negative effect of noise on human cognitive processing. The study of 326…… [Read More]
It was a beautiful summer, as I was thinking about the junior world championship in Bucharest, I was very nervous and my legs literally felt like they weighed a million pounds each. As I climbed up the stairs and stepped on the mat, I felt as if I stepped onto a giant Tempurpedic mattress.
My feet sank in, and my heart was beating a faster mile a minute. I knew that the next thing to do is to read my daily affirmation before each match and this would calm me down. However, this was the world championships, the biggest stage that a boy of between 17 and 20-year-old could wrestle at in the world. I knew that going into the match is going to be a big challenge because I was up against a two-time world champion who had accumulated a lot of experience in the field.
Compared…… [Read More]
industry, the drivers of competition are largely revealed by competitive forces. Hence the ability to detect and address a wide range of competitive threats is largely founded on the fact that competition is not in any way limited to existing rivals. After a comprehensive study of various corporations' competitive strategies, the author of "The Five Competitive Forces that Shape Strategy" attempts to demonstrate how a company can enhance its profitability while at the same time ensuring that it significantly decreases its vulnerability to attack by way of understanding its industry's structure using the five forces.
The Article's Key Concepts
From the onset, Porter states that understanding competition and formulating strategies to deal with it remains every strategist's main objective. However, it should be noted that in most cases, strategists define competition in chronically narrow terms by limiting their scope to industry rivals only. With that in mind, Porter's insistence on…… [Read More]
The Toronto Stock Exchange has long attracted issuers in the mining industry because the level of investor knowledge of this sector has traditionally been higher in Canada. Thus, the TSX has a competitive advantage in attracting new mining issues since those types of companies find it easier to raise capital there than on most other exchanges.
Another major point of competition is the investment banking sector. Firms often choose their exchange based on their ability to raise capital. This requires a strong investment banking sector, and a market in which a broad range of institutional investors participates. This increases the pool of available capital as well as overall market liquidity. For example, London Stock Exchange Chairman Chris Gibson-Smith outlined the need for European capital markets to integrate in order that their liquidity and capital-raising ability match that of the U.S.
Each of the world's major capital markets has recognized the…… [Read More]
Antitrust Practices and Market Power: Google Antitrust Behavior
Economic theory expresses that competition contributes substantially to the efficient operations of markets, and hence to the improvement of a nation's wealth status. Antitrust laws seek to foster competition in the marketplace and to consequently ensure that the welfare of consumers is maximized through the provision of low-priced high-quality products. This the laws do by preventing the emergence of cartels and monopolies, which impede on competition by creating barriers to entry, with the help of which they are able to obtain market power and consequently drive market prices to favor them. Although monopolies may result from either government action or natural reasons, in which case they are referred to as government and natural monopolies respectively, most monopolies are formed through exclusivity contract arrangements, mergers, acquisitions, and collusion. Antitrust laws work at limiting these.
The Costs of Antitrust Behavior
A number of companies…… [Read More]
Geopolitical Energy Competition
One hundred years ago, oil supplies were a non-issue. There was limited demand for oil, and hence limited supply. Today, oil is the most important factor shaping the geopolitical landscape. Global demand for oil is estimated to be 84.6 million barrels per day (OPEC, 2009). OPEC produces 24.845 million barrels per day, and non-OPEC nations produce a further 50.7 million barrels per day for a total production of 75.545 bpd (OPEC, 2008). Many observers believe that the world has already passed "peak oil," that is to say the point at which the majority of the world's oil reserves have been discovered and production maximized (Deffeyes, 2003). Demand in the United States is presently estimated to be 20.7 million barrels per day, some 68% of that going to meet transportation needs (Energy Information Administration, 2007). However, demand from emerging economies such as those in India and China are…… [Read More]
Indeed, according to later reports, this is indeed what the company has done. Whether this will have the desired effect or will simply drive Blockbuster further away from their competitive edge, remains to be seen. Indeed, Netflix has the advantage of diversity in terms of its rental titles. The Johnson piece reports that Blockbuster was planning to gain customers by offering better Internet deals than Netflix. In retrospect, the problem is however that the deals are so excellent that they badly affect Blockbuster's revenues (Cruise, 2007). Indeed, the company's current strength - its in-store customers - is being undermined by its efforts to increase its online customers to compete with Netflix.
B) Blockbuster believes that it can gain competitive advantage over Netflix by offering better deals to their in store customers, which could also entice online customers away from Netflix (Cruise, 2007). uch deals include in store coupons and free…… [Read More]
Christianson-Heiska, I; Wahteristo, P.; Kastilan, E.; Bergelin E.; Bylund, G.;
Isomaa, B. (2004). "Effects of the wood extractive betulinol and 17?-
oestradiol on reproduction in zebrafish, Danio rerio (Hamilton)
complications due to a bacterial infection." Journal of fish diseases 27(5), pp.
In this study, the existence of certain chemicals in waterways on the spawning and general reproduction capabilities of zebrafish was examined. The hypothesis was, simply put, that the exposure of zebrafish to the chemical betulinol (which is extracted from wood) would cause detrimental effects to the various reproduction mechanisms of both male and female zebrafish. The primary focus of the research, however, was to determine the precise mechanisms by which such detrimental effects would actually occur. The results of the study basically supported the hypothesis, but with some surprising and unsought for results that showed a very different mechanism at work than the basic hormonal and other physiological…… [Read More]
Globalization and competition within the international markets demands that multinational corporations employ a series of strategies aimed at ensuring that they maintain a competitive advantage over their rivals. Such strategies can never be realized without first being aware of the external environment differences. An external environment analysis is therefore a key factor in the formulation of a successful internationalization strategy (Kennedy,1984).In this paper, we explore the concept of external environmental analysis and its role in the success of Starbucks as a multinational company.
The role of external environmental analysis in the strategic formulation of an internationalization strategy
The work of Babatunde and Adebesi (2012) noted that every organization that operates in a competitive business environment must employ strategic environmental scanning techniques in the evaluation of the external environmental forces (the opportunities and threats) in order to help the organization seize the opportunities and avoid threats and thereby gain profitability. Organizations,…… [Read More]
Essentially, Porter’s five forces affect my company’s financial strategy for being competitive in the marketplace by summing up its principal concerns. What Porter has done by elucidating the five forces which shape industry competition is to outline the main themes one’s financial strategy must be prepared to address. By denoting exactly what these forces are, Porter has provided a baseline of prudent concerns with which to shape my organization’s financial strategy around. His efforts have prepared us for the coming challenges of both today and tomorrow in this regard.
Specifically, in order to maintain competitiveness my organization needs to focus on the correlation between the central challenge, rivalry among competitors, and the threat of new entrants. In the publishing field for information technology, there is always the reality that a new publication can emerge and provide similar content which could potentially detract from the revenues our organization earns. Naturally, those…… [Read More]
Goals Athletes Set in Training and Competition
Perhaps the biggest mistake a researcher can make it to assume that if research has been done, that means the research is good research. In actuality, there is a significant amount of bad research available and those who rely upon it can easily draw bad conclusions. While there are an infinite number of ways that research can be bad, probably the most significant risk in bad research is research that detects a relationship (correlation) between two or more different variables and, from that relationship, seeks to suggest that there is causation between two or more of those variables. This can be due to an improper conclusion, but it can also be due to faulty research design that has failed to account for all of the other variables that could impact the results.
Defining Good esearch
It can be difficult to define good research…… [Read More]
In limited situations, an employee might attempt to obtain injunctive relief but it would be available only where the employer has somehow already prohibited the employee from otherwise working.
Money damages would be available for both sides of the litigation depending upon who prevails on the underlying issues. Unfortunately, litigation costs can be expensive and result in neither party benefiting in pursuing the matter to that end.
The fact that lawyers are specifically prohibited from participating in non-compete agreements is telling as to the utility of such documents. Although lawyers actively participate in the preparation of such documents for other professionals and employees, the ethical guidelines published by the American Bar Association states: "A lawyer shall not participate in offering or making: (a) a partnership or employment agreement that restricts the right of a lawyer to practice after termination of the relationship, except an agreement concerning benefits upon retirement (American…… [Read More]
S. For its weapons sales to Taiwan. (Janbo)
It must also be noted that China's Naval expansion is a departure from what many experts conjectured in the recent past. Like many before, Lee Lai To commented just a few years ago that China, regardless of its even then obvious desire to expand its naval might would be very unlikely to challenge the U.S. In any significant way. To argues that:
"U.S. military deterrence and U.S. interests -- particularly with regard to maintaining the security of the sea-lanes and forward deployment of the U.S. military in the Asia-Pacific region, including the South China Sea area -- have made and will continue to make China extremely cautious about engaging in actions that might draw Washington into the South China Sea disputes. (To 26)" (Wong)
To was also quick to note that up to the time of his research and work in 2003…… [Read More]
sex education is designed to increase teenagers "tastes" for premarital sex? How could it act to increase those "tastes"?
The desire for sexual contact is a natural, innate human desire and is not something that can suddenly be stimulated by knowledge like an advertising campaign can make you thirsty for soda. It is possible that sexual education can normalize sexuality and remove a sense of guilt teens might have; however, it can also normalize safe sex and abortion.
Why could the two consequences of sex education discussed above either raise or lower the number of teenage pregnancies that result?
Sex education can lower the number of teenage pregnancies by providing accurate information to teens about sexuality and disabusing them of myths such as the idea the withdrawal method is an effective form of birth control. It can also provide them with information about the best methods of birth control possible.…… [Read More]
People often cite the need for better handling of time. Time has become a hot commodity and something customers crave. In fact, people consider time a luxury and is an integral part of convenience. Businesses wish to capitalize on this with strategies that give a Time-Based Competitive Advantage. They do this through implementation of new technology. That new technology is FID.
FID technology has been available for years. However, it is only in recent times that is has seen a heavier implementation in grocery stores. Grocery retail chains like Tesco utilized FID-based self-checkouts along with other chains like Costco to save the store and store employees time and allow customers to things on their time. This makes customers feel more satisfied and leave employees with more time to assist and maintain the stores. Although DID has its setbacks, it still offers many advantages. This essay will talk about such advantages.…… [Read More]
WORLD ELECTRONICS LTD
Scenario: World Electronics Ltd. is a multinational company, offering top quality products at affordable prices. In recent months, due to a significant number of complaints, some important legal issues have been brought to the attention of the directors of the company. You have been asked to advise the company and its subsidiaries on their legal position in relation to the following legal issues.
Electronics Ltd. is a German company that manufactures and supplies the popularly used LED energy saving bulb that is sold under its unique brand name "OKN." At present, the company has 65% of the German, UK and French market for the "OKN" LED energy saving bulb. The company's EU share of the market for energy saving bulbs is estimated to be 20% and 10% for all energy saving technologies. Using its extensive financial resources generated from healthy profits over the past seven…… [Read More]
Lean Synchronization at Boeing
The author of this report has been asked to focus on a particular realm and part of operations management as it relates to a particular firm. The operations management facet that shall be the focus of this report is lean synchronization and the company that shall be the focus is aircraft manufacturer Boeing. Boeing has done very well for itself in the grand scheme of things but they face competition from a good number of companies with the largest competitor being Airbus. Boeing has never rested when it comes to the adjustments and pivots it makes. Indeed, they have been in the news and/or raised the attention of government regulatory agencies like the National Labor elations Board. While Boeing is facing heavy competition and operational management challenges including from the government and overall political climate, they are making the right overall moves in terms of lean…… [Read More]
Globalization refers to global competition usually characterized by networks that arise due to international connections which bind people, institutions as well countries in a global economy that is interdependent. Globalization has had a great impact of international business due to the development of economic integration. This has led to less trade barriers as well as an increase in the flow of goods, services, labor, capital and technology all over the world. The world has now becomes increasingly borderless that has made it easy for technological advancements as well as rise of economies that are developing such as India and China. Globalization in a wider sense has resulted to the narrowing down of the difference between border outputs growth rates since there is an increase in economic activities (Deresky, 2011).
Aspects of Globalization
One significant aspect of globalization is the formation of regional trade blocks. There are very many…… [Read More]
How does competition relate to communism, socialism, capitalism and monarchy?
As for capitalism, it thrives on competition, and is "legitimized by competition" (Kasper). In fact competition is a way of redistributing a society's wealth and helps to prevent concentrations of power in the hands of one company. Competition is absent in communism (the communist committees govern prices and have controls on all regulations) and also in most socialist countries; in fact "Property is theft," Kasper writes on page 4. In monarchies the government imposes "coercive regulations" to protect state interests. Fascist governments are all-controlling and competition is a foreign word in this style of government. People are not free to form new businesses in fascism, communism and in monarchies.
To what extent does capitalism include "crony capitalism" and why?
Cronies sometimes form "competitive truces" (Kasper) to cut deals on prices and that is actually a violation of anti-trust laws.…… [Read More]
Marketing strategies are longstanding, progressive-leaning approaches to planning with the key objective of attaining a sustainable competitive advantage. They are approaches that are employed laying emphasis on the business and marketing efforts. Our company faces direct and intense competition from Colloquy.com, Points.com, and Nerdwallet.com. The key marketing strategy employed by Points.com is points exchange through its website and company blog. Consumers take part in several loyalty programs but the actuality is that the miles as well as points in all of these various programs never amass to amounts that in fact result to awards. In this regard, Points.com permits consumers to take all these various points and exchange them into whatever program is most valuable to them (Strategy Online, 2001). In addition, the company has a Points Hub where consumers can gain more information regarding life at Points.com, obtain practical advice and insider tips for earning additional points, miles…… [Read More]
Policy Making and Power Plant Emissions
There are many considerations that a government official in charge of developing policy concerning gas and particulate emissions must take into account in order to protect the environment and citizens while allowing business and the basic functions of society and its infrastructure to progress. The balance that must be struck here is one of the major reasons that environmental policy is so complex, and why it is such a hot-button issue for many officials and constituents alike. The potential effectiveness of each policy detail that might be implemented, the cost of each proposed implementation, the benefits and detriments to the various parties, and all other related minutiae must be taken into account in order for the best possible policies to be developed and implemented. The following paragraphs will consider two different alternative policies for protecting the environment and the human population surrounding a…… [Read More]
Samsung competes in a market that is now becoming more commoditized. The overall smart phone market is entering its mature phase. As is characteristic of many firms in this phase, competitors will attempt to steal market share from each other. This occurs because industry growth is slow, and the only way to stay profitable is to take customers from other consumers. Marketing has a very integral role as it relates to consumer preferences and behaviors. In particular, Samsung must differentiate itself among a litany of similar product offerings in the market (Cho, 2009).
Currently, Samsung is unique in its ability to garner a loyal and profitable following. Much like its competitor, Apple, participants who enter the Samsung ecosystem usually stay within it. The familiarity, efficiencies and convenience of the ecosystem make switching to other brands costly for consumers. For example, an Android user, switching to Apple would need to learn…… [Read More]