Utopia Essay Example | Topics and Well Written Essays - 1500 words - 1

Utopia - Essay Example The term was introduced by Thomas Moore, who invented the term to describe his imaginary Island where the inhabitants of the island enjoy the perfect social, legal and political system. An Island, where nothing is amiss, nothing is wrong and people lead what we can call a â€Å"Utopian or flawless† form of life. In modern Latin, â€Å"utopia† means â€Å"nowhere†. As years passed by, Thomas Moore’s famous word became an adjective to be used to describe not just his island but any state of perfectness. In the lives that we live every day, from the moment we learn about the terms â€Å"happiness† or â€Å"flawless† we start on a journey to pursue them and turn our own little lives into something that we consider blessed. But, the truth is no one is ever really happy or satisfied. I am not saying it s a crime to be not or dissatisfied but the fact is that Thomas Moore’s word â€Å"utopia† has little space in our lives. â€Å"Richa rd Cory† a short, narrative and meaningful poem that I came across, vindicates my argument substantially. He was gracious, generous, well schooled and wealthy yet at the end of the poem he ends up shooting himself in the head. Herein, we see that even though Richard Cory had all the materialistic possessions that a person needs for his survival, he was not satisfied and his life was not worth living at all. At first it seems almost necessary to describe Mr. Cory’s life as a Utopian life since everything seemed so perfect yet the end of his story makes us think otherwise- How can the term Utopia be used for a state that is nonexistent?

3M case study Essay Example | Topics and Well Written Essays - 500 words

3M case study - Essay Example The firm depends heavily on smaller market research firms for conducting market research for them. Pricing of their product were also not adequate to compete in the international market. The strategies like â€Å"Lead User† was not successful Most of the new products developed consumed too much time and because of the heavy pricing they failed in the market. The 3M management failed to identify experts at the right time to cater the needs of current trends in the international market. Their efforts to modernize the traditional managers were not succeeded enough. The mixing of diverse knowledge and talent to develop a new project: Since most of the employees working in the 3M company were coming from different parts of the world with different skill sets, the careful blending of such talents were a challenging one Innovation tactics: The 3M firm believed that individual love for discovery would drive innovation. The company allowed all staffs to spend 15% of their time to explore new ideas. This tactics also didn’t work for them The managers needed vigorous training to understand the need of scientific management techniques and modern technologies to lead a business successfully. It is always better to adopt â€Å"Follow User† strategy rather than a Lead User strategy for effective marketing of the products. The pricing of the 3M products must be revised in accordance with the international standards to compete in the market. The R&D should be expanded and it should devote its entire time in developing new ideas and product based on the market feedback. Market research must be conducted by 3M employees only. It is not advisable to depend, secondary sources for market research as marketing is one of the core elements in every

Marketing Mix Analysis of iPad Essay Example for Free

Marketing Mix Analysis of iPad Essay Executive Summary Managing and developing marketing mix appropriately is extremely important to firms marketing and success. In order to marketing product successfully, the right product must be exhibited to right people at the right place, right price and right time. If a firm can manage the marketing mix successfully, as a result, it can be a source of competitive advantage for firms. Each element of the marketing mix should be analyzed and if necessary, adapted to ensure that the right balance is achieved to give the product or service the very best chance of success in the market place. Apple is a successful company and its previous product iPod has a high market share in the global market due to its brand perception and image as s high quality innovative brand. In 2010, Apple launched an innovative product – â€Å"iPad† in US, which is a tablet computer with touch screen. Even in the first launching date iPad had been sold 0.3 million units. The product no doubt is getting support of Apple’s brand image and it has changed the way to consumer lifestyle. That is why iPad is thought as a revolutionary who will arouse a wave to electronic industry. Apple’s iPad delivered the value to the customer via marketing mix tools called the 4Ps: * Product looks good and works well. * Right price. * Right place at the right time. * Successful promotion helps to a larger output. Apple followed this by innovation and introducing new products in the market to satisfy consumer’s needs and wants. The current author here will use the theories, concepts of marketing mix to analysis the iPad. The remainder of this essay is structured into five parts. It begins by defining marketing mix and its evolution. Second, it analyse the company, iPad, its competitor and consumer. Third, it illuminates the marketing mix by analysing iPad. Finally it ends with the overall assessment and conclusion. Contents 1.Introduction and Definition3 1.1Definition of Marketing3 1.2Definition of Customer Value and Value Proposition3 1.3Definition of Marketing Mix4 2.Description of Apple iPad4 2.1Brief Introduction of Apple4 2.2Introduction of iPad5 2.3Brief Consumer Profile6 2.4Brief Competitor Profile7 3.Marketing Mix Analysis of iPad7 3.1Product7 3.2Price10 3.3Place12 3.4Promotion14 4.Assessment of Overall Value Delivered16 5.Conclusion16 6.References18 1. Introduction and Definition 2.1 Definition of Marketing â€Å"Marketing is the process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others and forging relationships with customers.† (Philip Kotler, Gary Armstrong, 2009). This definition recognizes the importance of creating a long term relationship with customers and identifies the importance of satisfying customer wants. 2.2 Definition of Customer Value and Value Proposition Customer value is the difference between the values that the customer gains from owning and using a product and the costs of obtaining the product. Put it simply, customer value is created when the perceptions of benefits received from a transaction exceed the costs of ownership. The same idea can be expressed as a ratio (Chiristopher, 1996): Customer value = Perceptions of benefits The definition of customer value proposition is a well defined and persuasive marketing statement related to a specific product or service that details the reasons why a consumer would benefit from purchasing it. A value proposition is the definition of a firms promise to create and deliver customer value (Chapelet and Tovstiga, 1998). Fig 1.2.1 A model of value creation and the marketing process source: Adapted from Kotler Brown Burton Deans Armstrong, (2010), â€Å"Marketing† 8th Edition Figure 1.2.1 shows a typical model of value creation and the marketing process. Put it simple, marketing is a process cycle which consists of 5 simple steps as below: i. Customer buys or potential customer is contacted to understand the marketplace. ii. Finding out how the customer liked the product or what is needed. iii. Analysing these data and creating a plan that includes goals, strategy and its marketing mix. iv. Implement the plan that delivers value to customer which results in the customer’s buying the product and creating customer delight. v. Repeating the cycle starting with step (i) to step (iv) to make a better product sold with a better plan and continuously keeping this cycle going. Hence, create profits and customer equity. 2.3 Definition of Marketing Mix The concept of the Marketing Mix was first created by Neil H. Borden in his article called â€Å"The concept of the Marketing Mix† in 1964. In his article he explained the importance of a market to try to â€Å"mix ingredients† in their process in the market in order to be successful. E. Jerome McCarthy later grouped these ingredients into the four categories that are known as the 4Ps of marketing (Product, Price, Place and Promotion). Product What does the customer want from the product/service? Price What is the value of the product or service to the buyer? Place Where do buyers look for the product or service? Promotion Where and when can get across the marketing messages to target market? 2. Description of Apple iPad 3.4 Brief Introduction of Apple Apple Inc., founded in 1976, is an American multinational corporation which is best-known for its hardware and software products. The hardware products are: Macintosh, iPod, iPhone and iPad. One example of the famous software of Apple is iTunes, a proprietary media player application that works with iTunes store and allows customers to download music and offers other features of consumer electronics. Fortune magazine named Apple as the most admired company in the US in 2008, and in the world from 2008 to 2012. 3.5 Introduction of iPad On January 27, 2010, Apple introduced the much-anticipated media tablet, the iPad (As shown in Fig2.2.1). Fig 2.2.1 Introduction of iPad (source: www.apple.com) The iPad measure 9.7 inch wide screen display with multi touch screen with 1024 x 768 resolutions which is lighter and thinner than any other notebooks or laptops. Its internal 25 watt-hour battery can run up to 10 hours of video, 140 hours of audio playback and one month on standby as Apple claims. Steve Jobs stated that, with the introduction of the iPad, Apple had opened a market for a new class of mobile devices. (As shown in Fig 2.2.2) Fig2.2.2 Apple iPad First Hands-on (source: http://www.ipadforums.net) 3.6 Brief Consumer Profile Consumer market can be defined as â€Å"all the individuals and households who buy or acquire goods and services for personal consumption† and consumer buying behavior can be defined as â€Å"the buying behavior of final consumers, individuals and households who buy goods and services for personal consumption† (Kotler, 2009). Table 2.3.1 shows the analysis of market segmentation for iPad. SEGMENTATION BASE| SELECTEDSEGMENTATION VARIABLES| Geographic Segmentation| Region| West Malaysia, east Malaysia| City size| Major metropolitan areas, cities| Density of area| Urban| Climate| Hot, humid, rainy| Demographic Segmentation| Age| 18-34, 35-49, 50-64| Sex| Male, female| Married status| Single, married, divorced, living together| Income| RM40,000 and over| Education| College, college graduate, postgraduate| Occupation| Professional, white-collar| Psychological| Needs| Sense of self-worth, fashionable| Personality| Extroverts, novelty-seeker, aggressives| Perception| Low-risk| Learning-involvement| High-involvement| Attitudes| Possitive attitude| Psychographic| Lifestyle| Couch-potatoes, outdoor enthusiasts, status-seekers| Cultures| Malay, Chinese, Indian, and other foreigners| Religion| Muslim, buddhism, hinduism, christian, catholic, and others| Social| Middle, upper| Family| Bachelors, young married, full nesters, empty nesters| Use-Rated Segmentation| Usage rate| Heavy users, medium users| Awareness status| Aware, interested, enthusiastic| Brand loyalty| Strong| Use-Situation Segmentation| Time| Leisure, work, morning, night| Objective| Personal, fun, achievement| Location| Home, work, mega mall, restaurant| Person| Self, family members, friends, peers| Benefit Segmentation| Convenience, social acceptance, easy e-book reading, value-for-the-money, service| Table 2.3.1 Market segmentation for iPad From analysis above can see that most of Apple’s users are high-end clients who have the strong purchasing power, easily accept new technology and they are very loyal to Apple. 3.7 Brief Competitor Profile Apple iPad bring threats and impact to PC industry in some way. On one hand, the hot-sell of iPad attracts many PC manufacturers set foot in this field. So the other tablet computers will be the biggest competitor, such as Blackberry’s playbook, this is a tablet computer which located in business person, and it will also attract public’s eyes because of its vast multimedia function. On the other hand, the price advantage of netbook is also a challenge to iPad. After all compared with traditional computer, iPad may not a necessity. To some business and professional people, they will choose the traditional notebook rather than iPad. 3. Marketing Mix Analysis of iPad According to the information that searches from magazines and internet, the author knows many information of iPad. The author here will use the theories, concepts of marketing mix to analysis the iPad. 4.8 Product â€Å"Product means the goods-and-services combination the company offers to the target market. â€Å" (Philip Kotler, Gary Armstrong, 2009). The iPad bridges the gap between smart phone and laptop, it offers equivalent range of features and functions that a computer does. It has internet capabilities running on both Wi-Fi and 3G. Some of the features are discussed previously. Fig 3.1.1 shows its tech specs. Access to Apple Apps Store which has over 300,000 applications and to iTunes are attractive features of iPad. Fig 3.1.1 Tech Specs for Apple iPad (source: http://www.apple.com) Value delivered to customer: 1) Convenient to Carry and Easy to Use Compared to functionalities and performance, it is surprised that iPad weighs only 1.5 pounds. It is very thin and sleek measuring only 0.5 inches. This lightweight iPad is very useful for business trip, making it easy to transport as compared to a laptop. Not only it is easier to carry it around, but also be able to use it to check e-mails, show videos and photos to people instantly whenever required with its long battery life, which at 10 hours is 2-5 times longer than a notebook (As shown in Fig 3.1.2). Fig 3.1.2 E-mail and photo function for iPad (source: http://www.cnbeta.com) 2) Easy for E-Book Reading One benefit that can’t miss is the iBooks Application. Customer can download the favorite e-books to iPad and read while traveling (As shown in Fig 3.1.3). Fig 3.1.3 E-books on Apple iPad (source: http://www.telegraph.co.uk) Retrieving books to read on ibooks application on iPad is simply easy. Browse through the e-bookshelf on the iPad, choose one title wish to read and click, the book opens in front. Customer can view the book in portrait or landscape, and the way the pages flip is awesome flip it with finger and looks just like a real book. 3) Excellent Service for Customer What’s more, the service of iPad is very nice. Apple has its own key service iTunes. Customer can get this value to enjoy the all kinds of internet resources such as music, video and applications (As shown in Fig 3.1.4). Fig 3.1.4 iTunes on Apple iPad (source: http://www.ipadforums.net guardian.co.uk guardia guardia) The iTunes online store makes it incredibly easy to purchase songs and load them onto the devices. When customer wants to watch or listen, they neither need to search from the CDs nor television channels. What they need to do is just opening the iTunes, all they want is in iTunes, it let the media browse much faster, it is easier to sort. 4.9 Price â€Å"Price is the amount of money customers have to pay to obtain the product. â€Å" (Philip Kotler, Gary Armstrong, 2009). The iPad is priced starting from $499 for 16 GB storage to $829 for 64GB storage and 3G connectivity. In detail, tab 3.2.1 shows the price of iPad selling in Malaysia. iPad| 16G| 32G| 64G| Wi-Fi| RM 1, 549.00| RM 1, 849.00| RM 2, 149.00| Wi-Fi + 3G| RM 1, 999.00| RM 2, 299.00| RM 2, 599.00| Tab 3.2.1 Selling price of iPad (source: http://www.apple.com guardian.co.uk guardia guardia) Value delivered to customer: 1) Eco-friendly Device for Environment Protection The iPad is made of recyclable glass and Aluminum and the packaging material is recyclable the packing is efficiently done. It is not using Arsenic, PVC, bromine fire, Mercury as the company has restricted the use of harmful chemicals. With such price, customers are not buying the fashionable device only, more importantly, they are making contribution to environment protection. Fig 3.2.1 shows how green is the iPad. Fig3.2.1 How green is the iPad (source: http://sortable.com) 2) Flexible Price as Actual Needs The iPad price varies according to its storage capacity and the internet access capacity, which leads to reducing the initial cost on the first ever tablets based on customer’s actually needs and application (As shown in Fig3.2.2). Fig3.2.2 Price and configuration of the iPad (source: http://www.apple.com) 3) Cost Saving with Maxis Bundled Package It is available on Maxis bundled packages with a 24-month contract based on different types of iPad internet plan (As shown in Fig 3.2.3). By doing so, the price of iPad has been dropped down from RM450 to RM950. The plan is much more attractive not only for those who can’t afford to pay for the high price, but also for some of the SME to extend their business. Fig 3.2.3 Maxis iPad Bundled Packages (source: http://www.maxis.com.my) 4.10 Place â€Å"Place includes company activities that make the product available to target consumers. â€Å" (Philip Kotler, Gary Armstrong, 2009). Apple started selling the iPad not only from its official websites, but also retail outlets and Apple Store. Value delivered to customer 1) Easy Walk-in Location for Purchase The iPad can be purchased from Apple Store, Apple Premium Reseller and Apple Authorized Reseller located in Malaysia. All shops are conveniently located and beautifully designed, identified by the large backlit Apple logo, such as in most famous shopping mall like Sunway Primary, One Utama, KLCC and Mid Valley in Selangor, even in Melaka, Penang, Sabah and Sarawak. The value is so easy for customer to come and have a journey on iPad (As shown in Fig 3.3.1). Fig 3.3.1 Apple shops in Malaysia In each shop, customer will be able to find dedicated Apple-trained and Apple-certified Mac experts who can come up with the right solution for you. 2) Time-Saving Online Order Apple iPad are also available on internet for the customers on Apple’s website. Online purchase is the easiest and time saving way for most of them (As shown in Fig 3.3.2). Fig3.3.2 Online Apple store for iPad (source: http://www.apple.com) On the website, the Apple explains the number of features and benefits of iPad. This adds the value to the consumers as convenience is a value that people appreciate and for which they will pay more than the actual price. 3) Golden Service for Apple Loyalty When customer are on the go, the Apple Store app is the best way to research, personalize and buy products from Apple and get the most out of customer’s visits to the Apple Retail Store for Apple loyal fans. Fig 3.3.3 shows what can do with the Apple Store app on the iPhone or iPod touch from search to pay. Fig3.3.3 Apple store apps for iPhone and iPod Touch (source: http://www.apple.com) 4.11 Promotion â€Å"Promotion means activities that communicate the merits of the product and persuade target customers to buy it. â€Å" (Philip Kotler, Gary Armstrong, 2009) Apple Company had been promoting the iPad with the help of social media campaigns and multi-channel media strategy. Value delivered to customer: 1) Multiple Channel for Better Understanding of iPad The online promotion by Apple on Facebook, YouTube and other related websites approaches to the consumers added more value to the decision of consumers of buying iPad. Same like in stores all the information is available online for customers. Customers can download brochure from its website for their convenience. When Apple announced the idea of iPad, most fans write blogs and share through internet. Customer will see them and many videos about iPad, some of them are made by Apple and some are made by other people. These blogs and videos are shared by many other people through many ways (As shown in Fig 3.4.1). Fig3.4.1 Video sharing about iPad (source: http://www.9to5iPad.com/) 2) Custom Engraving of iPad Apple had offered free iPad engraving from its online store, allowing customers to add a personal touch to the tablet in time for the holiday seasons (As shown in Fig 3.4.2). Customers are given the option to engrave up to 2 lines of free text on the back of an iPad after selecting an iPad model and any desired accessories from the online store. Fig 3.4.2 Website about iPad engraving (Source: http://store.apple.com/) 3) Free Delivery for On-line Purchase When purchasing the iPad online from Apple’s official website, customer will get the value of free delivery. Just wait for 3-4 business days, the product will be arrived on hand safely. 4. Assessment of Overall Value Delivered Apple has always placed a major emphasis on the marketing and the brand awareness of its products. The iPad’s advantage is that they offer several different features in one product. Converging all the new technology into one product is the route apple is seeking. It’s making life easier for their consumers by being able to conduct many applications in the one product. Apple’s iPad followed all the 4P’s of marketing mix to deliver the high level of value to the customers. The company has manufactured an iPad using strong in-built applications. The gadget permits people to work and entertain anytime anywhere, as a value of experiencing its easy and convenient use. It provides value to customers through a huge number of features which helps in saving time and energy. Adding more to customer value the price of iPad is competitive and flexible in the market as discussed above. It advertised on T.V., newspapers, magazine, radios and also on internet, which makes people have clearer understanding in various channel. It provides value by available at all the apple stores and website. From the iPad’s 4P’s analysis, we can easily see the difference of it, and can answer the question â€Å"why people buy it which seems unnecessary product.† Apple iPad satisfy their needs and this delivers the value as a product and service in terms of features, style performance, durability, quality, reliability and design to the customer. 5. Conclusion Apple iPad is a new product which has made a dent in the history of tablet business domain and the first successful product. This has also ignited the demand for new and improved tablets from Apple and other competitors. Apple has used the 4P’s of marketing in a very efficient and proper manner, so that added the value to the customer’s decisions of purchasing iPad. When Apple introduced iPad, they intended to come across the consumer’s wants and demands which would satisfy to their lifestyles. Apple in future which demands more innovative products and the company still need to adapt to expected changes in iPad which they have already started in their new iPad 2. With their experience, they are able to continue strengthen its position in the industry. 6. References 1. Philip Kotler, Gary Armstrong. (2009). Principles of Marketing. (7th Edition). Australia. Pearson. 2. Kotler Brown Burton Deans Armstrong. (2010). Marketing (8th Edition). Australia. Pearson. 3. Borden, N. H. (1964). â€Å"The concept of the Marketing Mix†. Journal of Advertising Research. Vol II 4. APDGT YAMAMOTO. â€Å"Understanding Customer Value Concept: Key To Success†. pp. 547-552. 5. Chapelet, B. and Tovstiga, G. (1998), â€Å"Development of a research methodology for accessing a firm’s business process-related technologies†, International Journal of Technology Management, Vol. 15 Nos  ½, pp. 10-30. 6. Apple Annual Reports, 2010 7. www.apple.com 8. www.maxis.com.my

Business Management and Change at Billabong (BB)

Business Management and Change at Billabong (BB) HSC Topic One: Business Management and Change Case Study Billabong Management Theory Behavioural Management Theory Creative thinking and innovation are of greater importance than ruthless efficiency. Managers see their roles primarily as motivating staff communicating the companys vision to customers stakeholders. Workers overcame problems and gave input into the way Billabong was run. Primarily to do with business culture and lack of morale caused by inertia of managers their resistance to change BILLABONG Sources of Change * External influences Economic factors: Negative: level of unemployment and growth/interest rates means less people can afford BBs products Rising incomes in East Asia and South America have helped create new markets Social factors: Changing consumer tastes Increasing tastes in sports such as skateboarding and surfing BMX now included at Olympics increases recognition of sport and clothing Political factors: Protectionism and limiting of imports through tariffs has seen BBs product strengthened in the domestic market Gov emphasising and pushing Aus exports, BB has seen improved overseas sales. Geographic: Pollution of beaches discourages people from surfing Influences what products BB have to release Snow gear in countries like Switzerland and surf gear in markets like Hawaii Internal influences  · E-Commerce Positive: Simplifying logistical and organisational difficulties +: Monitoring and tracking sales à  control Internet website greater relationship/interaction with customers  · New Procedures Private à   Public Comply with legal regulations meant à  financial record systems for annual financial report Tighter control over finances so as to increase return for investors  · Business Culture Management team changed in 1998 when Matthew Perrin and Gary Pemberton bought 49% of BB Now comprised of more professional managers with greater business knowledge and procedures than the original surf enthusiasts who established the business Structural responses to change Outsourcing Production to SE Asia and China Response to economic and financial influences Allows company to focus more on design and marketing Lowers costs to maintain competitive advantage in price-sensitive markets Strategic Alliances Cooperated with Channel V Billabong Music Bus Tour Both had similar target markets Increased brand recognition and awareness Reasons for resistance to change Financial Costs Developing new products such as skateboards and sunglasses requires money Acquiring smaller businesses, eg. Honolua Surf Company cost around $20billion Inertia of owners International expansion brings some risk from the financial backers/owners and therefore saw resistance from shareholders Managing change effectively Identifying need for change BB gained an edge over competitors by being one of the first businesses to expand overseas in the early 1980s Diversifying into skateboarding and accessories increased market share Creating culture of change New management team in 1998 acted as ‘change agents achieved growth by constantly observing and pursuing new opportunities Change Models (force field analysis) Driving Forces Restraining Forces à  revenue New opportunities for staff Year round demand (seasons) Costs of production Lack of new designers Need to hire new managers for new departments Change and Social Responsibility Ecological Sustainability Surfrider Foundation Conservation and regeneration of beaches and foreshores Quality of life Encourages team work and a relaxed atmosphere both in the office and in retail stores BB has a strict ‘no child labour policy and regularly inspects overseas production facilities Cultural Diversity Encourages communication between domestic and international stores/offices Employees are encouraged to transfer between international offices to gain new experiences The Nature of Management  · Management Roles -An interpersonal role is one in which the manager deals with people. Proactive- incorporates dynamic action and forward planning to achieve particular objectives -An informational gathers information within the business and supplys it outside the business -A decision-making role involves solving problems and making choices  · Skills of Management -People Skills -Strategic thinking -Vision -Self-Managing -Teamwork Ethical behaviour Responsibilities to stakeholders include: manage change social justice ecological sustainability compliance with the law codes of practice Understanding Business Organisations with Reference to Management theories  · Contingency Theory  · Classical-Scientific Planning, Organising, Controlling Division of labour, chain of command, autocratic leadership style meaning the manager tends to make all the decisions in the business.  · Behavioural ability to understand and work with people from a variety of backgrounds and different expectations Leading, Motivation, Communication Flatter organisational structure democratic leadership style where managers consult employees to ask suggestions and take them into account when decision making.  · Political encourages the formation of coalitions to promote different points of view. Power and Influence within a business can have both a positive and negative effect. It can be sued to intimidate (negative) or empower others (positive). Legitimate power due to status or position of the person in the firm e.g management Expert power due to a result of a persons skills and expertise Referent power from a persons individual characteristics (personality and charisma) Reward Power to the rewards or compensation a manager distributes Coercive power controls individuals by the actions or words of the manager Negotiating and Bargaining, Stakeholder views, Coalitions Managing Change  · Nature and Sources of Change in Business External Changing Nature of Markets, Economic Influences, financial, geographic, social, legal, political, technological Internal Effects of decelerating technological change, e-commerce, new systems and procedures, new business cultures Structural Response to Change -Outsourcing Flat Structure Strategic alliances Networks  · Reasons for Resistance to Change Financial Costs Inertia of managers and owners Cultural incompatibility in mergers and takeovers Staffing Considerations de-skilling, acquiring new sources, loss of career prospects and opportunities. * Managing Change Effectively Identifying need for change- SWOT anaysis and balance sheets Setting Achievable goals mission statements and company goal Culture of Change Change Models Force-Field Analysis Unfreeze/Change/Refreeze Change and Social Responsibility Social Responsibility is the awareness of a businesss management of the social, environmental and human consequences of its actions. Customers eventually find out which businesses are acting responsibly and which are not. Ecological Sustainability Quality of Working life Technology E-Commerce Globalisation and Managing Cultural Diversity HSC Topic Two Financial Planning The Role of Financial Planning * Strategic role of Financial Planning strategic plan Organisational goals and objectives Managing financial resources * Objectives of Financial management Liquidity -pay debts in the short term (less that 12 months) Profitability ability to maximise profit Efficiency -manage its assets to maximise profits with the lowest possible level of assets Growth increase its size in the long term Return on capital -profit returned to owners or stakeholders as a % of their contribution * The planning Cycle Addressing present financial position e.g revenue, p l statements, budgets Determining financial elements of the business plan Developing budgets Cash Flows Financial reports Maintaining record systems Planning financial controls Financial Markets Relevant to business financial needs * Major Participants in Financial markets Banks Financial companies -provide loans to individuals and businesses e.g personal and secured Insurance companies -loans to the corporate sector through insurance premiums Merchant bks (investment bks) -services such as borrowing and lending to the business sector. Superannuation/Mutual funds provide funds to the corporate sector through the investment of funds received from superannuation contributions The Reserve bank of Australia (Government) -acts as a banker and financial agent for the federal government * The Role of the Australian Stock Exchange (ASX) as a primary Market The ASX is the major financial exchange in the country. It comprises the largest primary and secondary markets for companies and individuals wishing to create and exchanges financial assets in the economy * Influences on Financial Markets domestic markets e.g change in inflation, demands for funding, changes in government policies. Companies can be positively and negatively affected. Overseas influences such as world events, foreign exchange rates, tax regulation for foreign operations * Trends in Financial Markets Technology has allowed markets to become more competitive and grow allowing financial transactions all the time. Globalisation will also give overseas investors access to Australian companies and increase opportunities for Australian investors and international markets. Management of Funds * Sources of Funds Internal Owners Equity Retained Profits External Short-term borrowing Bank Overdraft allows a business to overdraw their account to an agreed limit Bank Bills Long Term Borrowing Mortgage Debentures -The company repays the amount of the debenture by buying back the debenture. Finance companies raise funds through debenture issues to the public. Leasing involves the payment of money for the use of equipment that is owned by another party. Factoring is the selling of accounts receivable for a discounted price to a finance of factoring company. Venture Capital is funds supplied by investors to either a new organisation or to an already established business ready to grow or diversify. Grants are provided by the government for businesses to develop and promote international competitiveness. Grants often enable an organisation to become competitive in the global environment e.g exporting organisations. * Comparison of debt to equity financing Debt finance refers to short and long term borrowing from external sources of an organisation Equity Financing refers to the internal sources of finance in the organisation Gearing/Leverage is the proportion of debt to equity which is used to finance the activities of a business Using Financial Information * The Accounting Framework Financial Statements Revenue Statements shows the revenue earned and expenses incurred over the accounting period with the resultant profit or loss. Revenue statements show operating revenue earned from the main functions of the business e.g sales of inventories and the non-operating revenue earned from operations such as rent and commission. It also shows operating expenses such as rent, advertising, insurance. Balance Sheets represent the assets and liabilities at a particular point in time expressed in money terms and calculates the net worth of the business. The balance sheet shows the level of current and non-current assets and liabilities including investments and owners equity. Balance sheets indicate whether it has enough assets to cover debt interest and money borrowed that can be paid assets used to maximise profits if owners are making a good return on their investment * The accounting Equation and Relationships (A) Assets = (L) Liabilities + (OE) Owners Equity The accounting equation forms the basis of the accounting process which shows the relationship between assets, liabilities and owners equity. The accounting equation shows that the assets of the business may be financed by either the owners or by parties external to the business. COGS = inventory + purchases closing stock * Comparative Ratio Analysis By comparing ratios of a firm over time reveals trends and indicate directions for the future. Comparisons with other businesses and industry ratios is often used although can be inaccurate due to differences in companies and industries. Businesses often compare ratios against common standards such as statistics from the ABS. * Limitations for Financial Reports Historic cost accounting states that values are stated at the cost incurred at the time of purchase or acquisition, meaning financial statements will be a mixture of different year figures. Historic cost has been used for a long time although may become inaccurate in times of inflation. Value of Intangibles licences, trademarks, brand names and goodwill. Effective Working Capital (Liquidity) Management * The Working Capital Ratio Working Capital Ratio = Current Assets over Current Liabilities (2:1 ACCEPTABLE ALTHOUGH VARIES) The Working capital ratio shows if current assets can cover current liabilities. * Control of Current Assets Cash Balances are generally kept at a minimum and hold marketable securities as reserves of liquidity. Receivables is important in terms of management of working capital. The quicker the debtors pay, the better the firms cash position. Inventories make up a significant account of current assets and their levels must be carefully monitored so that excess or insufficient levels of stock do not occur. * Control of Current Liabilities Payables must be paid by their due dates due to avoid any extra cash charges imposed for late payment and to ensure that trade credit will be extended to the business in the future. Loans management of loans is important for establishment interest rates and ongoing charges must be investigated and monitored to minimise costs. Overdrafts policies should be used to manage bank overdrafts and monitor budgets on a daily or weekly basis so that cash supplies can be controlled. * Strategies for Managing Working Capital Leasing Factoring Sale and Lease back is the selling of an owned asset to a lesser and leasing the asset back through fixed payments for a specified number of years. Effective Financial Planning * Effective Cash Flow Management The activities of a business are divided into three categories as a statement of cash flows 1. Operating Activities e.g inflow cash and credit, outflow payments to employees 2. Investing Activities -e.g selling of old motorbike, purchasing new property 3. Financing activities- e.g inflow selling of shares, outflow repayment of debt. * Management Strategies distributing payments through out a month or year or different period so that cash shortfalls do not occur payments and bad debt of accounts by debtors can cause shortfalls of cash for businesses at important times. discounts for early payments * Effective profitability Management Cost Control Fixed Costs e.g insurance and salaries Variable costs change with the level of activity within a business e.g materials and labour used in the production of a product e.g fixing a roof. Cost Centres are particular areas, departments or sections of a business to which costs can be directly attributed. Direct costs are those allocated from a particular product, activity, department or region e.g depreciation of equipment used solely in the production of one good. Indirect costs come from shared projects, activities, departments or regions. Staff should be motivated to minimise expenses where possible as savings can be substantial if people take a close look at costs and eliminate waste and unnecessary spending. * Revenue Controls Sales objectives must be at a level of sales that will cover costs (fixed and variable) and result in profit. Changes to the sales mix can affect revenue. Research should be made to identify the effects of sales mix changes before implantation. Pricing Policy affects revenue and therefore impacts on working capital. To attract buyers while underpricing may bring high sales but still result in cash shortfalls. Ethical and Legal Aspects of Financial Management * Audited Accounts An audit is an independent check of the accuracy of financial records and accounting procedures. Types of Audits- 1. Internal conducted internally by employees 2. Management used to review the firms strategic plans and determine if changes need to be made. 3. External required by corporate law to ensure it complies with Australian auditing standards. * Australian Securities and Investments Commission (ASIC) ASIC enforces and administers laws and protects consumers in the areas of investment, life, insurance, super and Australian banking. ASIC sets out to reduce fraud and unfair practices in financial markets and products. ASIC ensures that companies adhere to the law. Collects information about companies and makes it accessible to the public. * Corporate Raiders and Asset Stripping Asset Stripping describes the practice of organisations that identify and sell off for a profit, assets of a company, especially one that has been acquired in a recent takeover. Entities that take over other companies and sell off the assets are known as corporate raiders. HSC Topic 3 Marketing Case Study Types of Markets Resource BHP Billiton Industrial Painter Intermediate Gloria Jeans selling cakes Mass IBM Computers Niche ‘Mountain Bike Magazine Developing Marketing Strategies Product and Service Positioning * Qantas was under competitive pressure from Virgin Blue in the leisure market * Qantas wanted to maintain its higher positioned government and business segments * Expanded to a subsidiary Jetstar who were positioned as a value-for-money product Price including pricing methods Price Points * Jetstar International * Base price for seat, Charge $30 for meal, $7 for blanket and amenity kit and $12 for entertainment kit Promotion Advertising * Dell Computers focus much of their advertising to print media * Use inserts/pamphlets/brochures in magazines, typically in the technology liftout section of the newspaper, where their target market is most likely to be reading Place Distribution * Dell distribute products directly, with no intermediaries * Exclusive distribution (no stores), Intensive (internet) * Distribution system is e-commerce Ethical and Legal Aspects Role of Consumer Laws in dealing with Deceptive and Misleading Advertising * Gillette (Duracell) VS Eveready * TV advertisement claims Duracell lasts up to four times longer than ordinary batteries * Eveready claimed the ad infringed the TPA * Independent tests showed the Duracell batteries never last 4x longer * Federal Court ruled Duracell breached the TPA in the areas of misleading and deceptive conduct and false representations about the quality and benefits of goods The Nature and Role of Markets and Marketing Marketing is a total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers. * Types of Markets Resource markets e.g mining, agriculture, forestry and machinery. Industrial Markets purchase products to use in the production of other products e.g buying flour to make bread Intermediate markets (resellers) consist of wholesalers and retailers who purchase finished products and resell them to make profit Consumer Markets e.g cars, clothing, food Mass Market is when the seller mass produces, mass distributes and mass promotes one product to all buyers Niche Markets are micro markets made for buyers who have specific needs or lifestyles * Production Production Orientation 1820s 1920s When a business concentrates on making as many possible goods at the lowest price possible Sales Approach 1020s 1060s When a business concentrates on selling techniques to attract customers Marketing Approach 1060s 1980s When a business collects information on consumer trends to sell its products * The Marketing Concept Consumer Orientation when a business concentrates on maximising customer satisfaction to sell its products Relationship Marketing the focus on encouraging repeat purchases and loyalty to the business by managing customer relations at the time of and after the initial purchase. Elements of a Marketing Plan * Establishing Market Objectives * Identifying Target Market Total Market Approach one type of product with little or no variation aimed at everyone through one distribution system. Market Segmentation approach the market is subdivided into groups of people who share certain characteristics. * Developing Marketing Strategies (examining elements of the 4 Ps) * Implementation, Monitoring and Controlling Financial Forecasting measures the sales potential and revenue forecasts (benefits) for strategies and compares these with anticipated costs. Comparing actual and planned results 1. Sales analysis comparing of actual sales with forecast sales to determine the effectiveness of the marketing strategy 2. Market share analysis/Ratios by comparing competitions market share to their own this can reveal changes in total sales (increase or decrease) 3. Marketing Cost Analysis marketer breaks down the total marketing cost into specific marketing activities to access the effectiveness of each activity. Market Research Process Market research is the process of systematically collecting, recording and analysing information concerning a specific marketing problem. The three steps of the market research process are; 1. Determining information needs 2. Collecting data from primary and secondary sources 3. Data analysis and interpretation -the data that represents average, typical or deviations from typical patterns. The data must be then displayed in way which statistics and figures can be conducted e.g spreadsheets Customer and Buyer Behaviour Customers are classified into two categories: Consumer the process of purchasing goods and services for personal household use. Organisational the purchase of goods and services by producers, resellers and government. Types of Customers Household Personal personal and household spending plays a dominant role within the economy as it contributes to the level of economic activity which affects business profits, unemployment levels, interest rates levels and rate of inflation. The Firms market consists of businesses that purchase goods and services for further processing or for use in their production process. Educational institutes Government Customers Governments spend billions of dollars each year for a wide variety of goods and services ranging from battleships to paperclips. All purchases of the government spend public funds to buy products, the government is accountable to the public, requiring a much more formalised set of buying procedures where firms submit quotes to supply a particular good or service and the lowest bid is generally accepted. * The Buying Process The buying process involves 5 common steps: Recognise the problem need or want requiring satisfaction Search for info brands, product characteristics, warranty, price etc Evaluate alternatives cost and benefit analysis Purchase Evaluate after purchase stability of product, satisfaction gained or dissatisfaction may occur. * Factors influencing Customer Choice Psychological influences e.g perception, motive, attitude and personality Socio-cultural influences e.g family, friends, social class, culture and subculture. Economic Influences -A boom is a period of low employment and rising income. Contraction is a period of slowly rising unemployment with incomes stabilising. Recession sees unemployment reach high levels and incomes fall dramatically. Expansion means unemployment levels start to fall slowly and incomes begin to rise. Government Influences government will put into place policies that expand or contract the level of economic activity. These policies directly or indirectly influence business activity and customers spending habits and such will influence the marketing plan. Developing Market Strategies * Pricing Strategies Price Skimming charging the highest price possible for innovative products Pricing Penetration charges to lowest price possible for a product or service to achieve large market share Loss-leader selling a product below its cost price to attract customers Price Lining a limited number of key prices for selected product lines e.g one line of watches for $35 and a more expensive line at $55 * Pricing Methods Cost-plus margin the total cost of production then adds on amount for profit (mark-up) Market set prices according to the level of supply and demand, when demand is high prices are high Competition based a business chooses a price based on competition, either below, equal to or above * Marketing segmentation and product Mass marketing or a total marketing approach This includes basic food items, water, gas, electricity etc. Concentrated Market Approach -By using the concentrated market approach the business is able to analyse its customer base more closely and design strategies to satisfy this select groups needs, and develop particular products based on customer feedback. Product Differentiation is the process of developing and promoting differences between the businesses products and those of its competitors. e.g jeans with designer labels and washing detergent with brightener additives * Place/Distribution Channels of Distribution or marketing channels are routes taken to get the product from the factory to the customer. The process usually involves a number of intermediaries such as wholesalers, brokers, agents or retailers. To choose the channel of distribution the location is the main contributor of the business market or market coverage (number of outlets a firm chooses for it product). There are three ways a business can cover a market Intensive distribution when a business saturates the market with their product e.g milk, lollies and newspapers Selective Distribution businesses use a moderate proportion of possible outlets where customers are prepared to travel e.g clothing, furniture Exclusive Distribution only one retail, outlet in a large geographical area for exclusive and expensive products. Physical Distribution Transport Warehousing involves receiving, storing and dispatching goods. Inventory controlled through a system that maintains quantities and varieties of products appropriate for the target market.  · Effects on Distribution 1. Technology 2. Local Government Approving new development applications and alteration to existing premises Fire regulations Determining land zoning and the purpose for which a building and land can be used Parking regulations Health regulations Size, shape and location of business signs Ethical and legal Aspects Environmentally responsible products Materialism an individuals desire to constantly acquire possessions Impact of retail development -intensely competitive environment may result in some retailers using questionable marketing practices Sugging Selling Under Guise of a survey, Role of Consumer Law Deceptive and misleading Price- Discrimination Implied Conditions or terms Merchandise quality meaning that the product is of a standard a reasonable person would expect for the price Fitness of purpose meaning that the product is suitable for the purpose for which is being sold. That is, it will perform as the instructions or advertisement implies Warranties Resale Price Maintenance Legislations to respond to ethical and legal aspects of marketing: The Trade Practice Act 1974 is one of the most important pieces of legislation in Australia and has two purposes: 1. To protect consumers from misleading and deceptive conduct 2. Restrictive trade practices to restrict competition as well as ensuring that a number of businesses are operation at any one time in the same market, to avoid the problem of monopolistic power. Fair Trade Act (FTA) is a mirrors legislation that covers sole traders and partnership as well as companies Implied conditions in both Acts: Merchantable quality worth the money Fit for purpose does its jobs. HSC Topic Four: Employment Relations Case Study Managing the ER function Line Management * ALDI Supermarkets * Individual store managers are expected to solve all instore problems there is no ‘area manager or specialist ER department Key influences on ER Social Inf Business Management and Change at Billabong (BB) Business Management and Change at Billabong (BB) HSC Topic One: Business Management and Change Case Study Billabong Management Theory Behavioural Management Theory Creative thinking and innovation are of greater importance than ruthless efficiency. Managers see their roles primarily as motivating staff communicating the companys vision to customers stakeholders. Workers overcame problems and gave input into the way Billabong was run. Primarily to do with business culture and lack of morale caused by inertia of managers their resistance to change BILLABONG Sources of Change * External influences Economic factors: Negative: level of unemployment and growth/interest rates means less people can afford BBs products Rising incomes in East Asia and South America have helped create new markets Social factors: Changing consumer tastes Increasing tastes in sports such as skateboarding and surfing BMX now included at Olympics increases recognition of sport and clothing Political factors: Protectionism and limiting of imports through tariffs has seen BBs product strengthened in the domestic market Gov emphasising and pushing Aus exports, BB has seen improved overseas sales. Geographic: Pollution of beaches discourages people from surfing Influences what products BB have to release Snow gear in countries like Switzerland and surf gear in markets like Hawaii Internal influences  · E-Commerce Positive: Simplifying logistical and organisational difficulties +: Monitoring and tracking sales à  control Internet website greater relationship/interaction with customers  · New Procedures Private à   Public Comply with legal regulations meant à  financial record systems for annual financial report Tighter control over finances so as to increase return for investors  · Business Culture Management team changed in 1998 when Matthew Perrin and Gary Pemberton bought 49% of BB Now comprised of more professional managers with greater business knowledge and procedures than the original surf enthusiasts who established the business Structural responses to change Outsourcing Production to SE Asia and China Response to economic and financial influences Allows company to focus more on design and marketing Lowers costs to maintain competitive advantage in price-sensitive markets Strategic Alliances Cooperated with Channel V Billabong Music Bus Tour Both had similar target markets Increased brand recognition and awareness Reasons for resistance to change Financial Costs Developing new products such as skateboards and sunglasses requires money Acquiring smaller businesses, eg. Honolua Surf Company cost around $20billion Inertia of owners International expansion brings some risk from the financial backers/owners and therefore saw resistance from shareholders Managing change effectively Identifying need for change BB gained an edge over competitors by being one of the first businesses to expand overseas in the early 1980s Diversifying into skateboarding and accessories increased market share Creating culture of change New management team in 1998 acted as ‘change agents achieved growth by constantly observing and pursuing new opportunities Change Models (force field analysis) Driving Forces Restraining Forces à  revenue New opportunities for staff Year round demand (seasons) Costs of production Lack of new designers Need to hire new managers for new departments Change and Social Responsibility Ecological Sustainability Surfrider Foundation Conservation and regeneration of beaches and foreshores Quality of life Encourages team work and a relaxed atmosphere both in the office and in retail stores BB has a strict ‘no child labour policy and regularly inspects overseas production facilities Cultural Diversity Encourages communication between domestic and international stores/offices Employees are encouraged to transfer between international offices to gain new experiences The Nature of Management  · Management Roles -An interpersonal role is one in which the manager deals with people. Proactive- incorporates dynamic action and forward planning to achieve particular objectives -An informational gathers information within the business and supplys it outside the business -A decision-making role involves solving problems and making choices  · Skills of Management -People Skills -Strategic thinking -Vision -Self-Managing -Teamwork Ethical behaviour Responsibilities to stakeholders include: manage change social justice ecological sustainability compliance with the law codes of practice Understanding Business Organisations with Reference to Management theories  · Contingency Theory  · Classical-Scientific Planning, Organising, Controlling Division of labour, chain of command, autocratic leadership style meaning the manager tends to make all the decisions in the business.  · Behavioural ability to understand and work with people from a variety of backgrounds and different expectations Leading, Motivation, Communication Flatter organisational structure democratic leadership style where managers consult employees to ask suggestions and take them into account when decision making.  · Political encourages the formation of coalitions to promote different points of view. Power and Influence within a business can have both a positive and negative effect. It can be sued to intimidate (negative) or empower others (positive). Legitimate power due to status or position of the person in the firm e.g management Expert power due to a result of a persons skills and expertise Referent power from a persons individual characteristics (personality and charisma) Reward Power to the rewards or compensation a manager distributes Coercive power controls individuals by the actions or words of the manager Negotiating and Bargaining, Stakeholder views, Coalitions Managing Change  · Nature and Sources of Change in Business External Changing Nature of Markets, Economic Influences, financial, geographic, social, legal, political, technological Internal Effects of decelerating technological change, e-commerce, new systems and procedures, new business cultures Structural Response to Change -Outsourcing Flat Structure Strategic alliances Networks  · Reasons for Resistance to Change Financial Costs Inertia of managers and owners Cultural incompatibility in mergers and takeovers Staffing Considerations de-skilling, acquiring new sources, loss of career prospects and opportunities. * Managing Change Effectively Identifying need for change- SWOT anaysis and balance sheets Setting Achievable goals mission statements and company goal Culture of Change Change Models Force-Field Analysis Unfreeze/Change/Refreeze Change and Social Responsibility Social Responsibility is the awareness of a businesss management of the social, environmental and human consequences of its actions. Customers eventually find out which businesses are acting responsibly and which are not. Ecological Sustainability Quality of Working life Technology E-Commerce Globalisation and Managing Cultural Diversity HSC Topic Two Financial Planning The Role of Financial Planning * Strategic role of Financial Planning strategic plan Organisational goals and objectives Managing financial resources * Objectives of Financial management Liquidity -pay debts in the short term (less that 12 months) Profitability ability to maximise profit Efficiency -manage its assets to maximise profits with the lowest possible level of assets Growth increase its size in the long term Return on capital -profit returned to owners or stakeholders as a % of their contribution * The planning Cycle Addressing present financial position e.g revenue, p l statements, budgets Determining financial elements of the business plan Developing budgets Cash Flows Financial reports Maintaining record systems Planning financial controls Financial Markets Relevant to business financial needs * Major Participants in Financial markets Banks Financial companies -provide loans to individuals and businesses e.g personal and secured Insurance companies -loans to the corporate sector through insurance premiums Merchant bks (investment bks) -services such as borrowing and lending to the business sector. Superannuation/Mutual funds provide funds to the corporate sector through the investment of funds received from superannuation contributions The Reserve bank of Australia (Government) -acts as a banker and financial agent for the federal government * The Role of the Australian Stock Exchange (ASX) as a primary Market The ASX is the major financial exchange in the country. It comprises the largest primary and secondary markets for companies and individuals wishing to create and exchanges financial assets in the economy * Influences on Financial Markets domestic markets e.g change in inflation, demands for funding, changes in government policies. Companies can be positively and negatively affected. Overseas influences such as world events, foreign exchange rates, tax regulation for foreign operations * Trends in Financial Markets Technology has allowed markets to become more competitive and grow allowing financial transactions all the time. Globalisation will also give overseas investors access to Australian companies and increase opportunities for Australian investors and international markets. Management of Funds * Sources of Funds Internal Owners Equity Retained Profits External Short-term borrowing Bank Overdraft allows a business to overdraw their account to an agreed limit Bank Bills Long Term Borrowing Mortgage Debentures -The company repays the amount of the debenture by buying back the debenture. Finance companies raise funds through debenture issues to the public. Leasing involves the payment of money for the use of equipment that is owned by another party. Factoring is the selling of accounts receivable for a discounted price to a finance of factoring company. Venture Capital is funds supplied by investors to either a new organisation or to an already established business ready to grow or diversify. Grants are provided by the government for businesses to develop and promote international competitiveness. Grants often enable an organisation to become competitive in the global environment e.g exporting organisations. * Comparison of debt to equity financing Debt finance refers to short and long term borrowing from external sources of an organisation Equity Financing refers to the internal sources of finance in the organisation Gearing/Leverage is the proportion of debt to equity which is used to finance the activities of a business Using Financial Information * The Accounting Framework Financial Statements Revenue Statements shows the revenue earned and expenses incurred over the accounting period with the resultant profit or loss. Revenue statements show operating revenue earned from the main functions of the business e.g sales of inventories and the non-operating revenue earned from operations such as rent and commission. It also shows operating expenses such as rent, advertising, insurance. Balance Sheets represent the assets and liabilities at a particular point in time expressed in money terms and calculates the net worth of the business. The balance sheet shows the level of current and non-current assets and liabilities including investments and owners equity. Balance sheets indicate whether it has enough assets to cover debt interest and money borrowed that can be paid assets used to maximise profits if owners are making a good return on their investment * The accounting Equation and Relationships (A) Assets = (L) Liabilities + (OE) Owners Equity The accounting equation forms the basis of the accounting process which shows the relationship between assets, liabilities and owners equity. The accounting equation shows that the assets of the business may be financed by either the owners or by parties external to the business. COGS = inventory + purchases closing stock * Comparative Ratio Analysis By comparing ratios of a firm over time reveals trends and indicate directions for the future. Comparisons with other businesses and industry ratios is often used although can be inaccurate due to differences in companies and industries. Businesses often compare ratios against common standards such as statistics from the ABS. * Limitations for Financial Reports Historic cost accounting states that values are stated at the cost incurred at the time of purchase or acquisition, meaning financial statements will be a mixture of different year figures. Historic cost has been used for a long time although may become inaccurate in times of inflation. Value of Intangibles licences, trademarks, brand names and goodwill. Effective Working Capital (Liquidity) Management * The Working Capital Ratio Working Capital Ratio = Current Assets over Current Liabilities (2:1 ACCEPTABLE ALTHOUGH VARIES) The Working capital ratio shows if current assets can cover current liabilities. * Control of Current Assets Cash Balances are generally kept at a minimum and hold marketable securities as reserves of liquidity. Receivables is important in terms of management of working capital. The quicker the debtors pay, the better the firms cash position. Inventories make up a significant account of current assets and their levels must be carefully monitored so that excess or insufficient levels of stock do not occur. * Control of Current Liabilities Payables must be paid by their due dates due to avoid any extra cash charges imposed for late payment and to ensure that trade credit will be extended to the business in the future. Loans management of loans is important for establishment interest rates and ongoing charges must be investigated and monitored to minimise costs. Overdrafts policies should be used to manage bank overdrafts and monitor budgets on a daily or weekly basis so that cash supplies can be controlled. * Strategies for Managing Working Capital Leasing Factoring Sale and Lease back is the selling of an owned asset to a lesser and leasing the asset back through fixed payments for a specified number of years. Effective Financial Planning * Effective Cash Flow Management The activities of a business are divided into three categories as a statement of cash flows 1. Operating Activities e.g inflow cash and credit, outflow payments to employees 2. Investing Activities -e.g selling of old motorbike, purchasing new property 3. Financing activities- e.g inflow selling of shares, outflow repayment of debt. * Management Strategies distributing payments through out a month or year or different period so that cash shortfalls do not occur payments and bad debt of accounts by debtors can cause shortfalls of cash for businesses at important times. discounts for early payments * Effective profitability Management Cost Control Fixed Costs e.g insurance and salaries Variable costs change with the level of activity within a business e.g materials and labour used in the production of a product e.g fixing a roof. Cost Centres are particular areas, departments or sections of a business to which costs can be directly attributed. Direct costs are those allocated from a particular product, activity, department or region e.g depreciation of equipment used solely in the production of one good. Indirect costs come from shared projects, activities, departments or regions. Staff should be motivated to minimise expenses where possible as savings can be substantial if people take a close look at costs and eliminate waste and unnecessary spending. * Revenue Controls Sales objectives must be at a level of sales that will cover costs (fixed and variable) and result in profit. Changes to the sales mix can affect revenue. Research should be made to identify the effects of sales mix changes before implantation. Pricing Policy affects revenue and therefore impacts on working capital. To attract buyers while underpricing may bring high sales but still result in cash shortfalls. Ethical and Legal Aspects of Financial Management * Audited Accounts An audit is an independent check of the accuracy of financial records and accounting procedures. Types of Audits- 1. Internal conducted internally by employees 2. Management used to review the firms strategic plans and determine if changes need to be made. 3. External required by corporate law to ensure it complies with Australian auditing standards. * Australian Securities and Investments Commission (ASIC) ASIC enforces and administers laws and protects consumers in the areas of investment, life, insurance, super and Australian banking. ASIC sets out to reduce fraud and unfair practices in financial markets and products. ASIC ensures that companies adhere to the law. Collects information about companies and makes it accessible to the public. * Corporate Raiders and Asset Stripping Asset Stripping describes the practice of organisations that identify and sell off for a profit, assets of a company, especially one that has been acquired in a recent takeover. Entities that take over other companies and sell off the assets are known as corporate raiders. HSC Topic 3 Marketing Case Study Types of Markets Resource BHP Billiton Industrial Painter Intermediate Gloria Jeans selling cakes Mass IBM Computers Niche ‘Mountain Bike Magazine Developing Marketing Strategies Product and Service Positioning * Qantas was under competitive pressure from Virgin Blue in the leisure market * Qantas wanted to maintain its higher positioned government and business segments * Expanded to a subsidiary Jetstar who were positioned as a value-for-money product Price including pricing methods Price Points * Jetstar International * Base price for seat, Charge $30 for meal, $7 for blanket and amenity kit and $12 for entertainment kit Promotion Advertising * Dell Computers focus much of their advertising to print media * Use inserts/pamphlets/brochures in magazines, typically in the technology liftout section of the newspaper, where their target market is most likely to be reading Place Distribution * Dell distribute products directly, with no intermediaries * Exclusive distribution (no stores), Intensive (internet) * Distribution system is e-commerce Ethical and Legal Aspects Role of Consumer Laws in dealing with Deceptive and Misleading Advertising * Gillette (Duracell) VS Eveready * TV advertisement claims Duracell lasts up to four times longer than ordinary batteries * Eveready claimed the ad infringed the TPA * Independent tests showed the Duracell batteries never last 4x longer * Federal Court ruled Duracell breached the TPA in the areas of misleading and deceptive conduct and false representations about the quality and benefits of goods The Nature and Role of Markets and Marketing Marketing is a total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers. * Types of Markets Resource markets e.g mining, agriculture, forestry and machinery. Industrial Markets purchase products to use in the production of other products e.g buying flour to make bread Intermediate markets (resellers) consist of wholesalers and retailers who purchase finished products and resell them to make profit Consumer Markets e.g cars, clothing, food Mass Market is when the seller mass produces, mass distributes and mass promotes one product to all buyers Niche Markets are micro markets made for buyers who have specific needs or lifestyles * Production Production Orientation 1820s 1920s When a business concentrates on making as many possible goods at the lowest price possible Sales Approach 1020s 1060s When a business concentrates on selling techniques to attract customers Marketing Approach 1060s 1980s When a business collects information on consumer trends to sell its products * The Marketing Concept Consumer Orientation when a business concentrates on maximising customer satisfaction to sell its products Relationship Marketing the focus on encouraging repeat purchases and loyalty to the business by managing customer relations at the time of and after the initial purchase. Elements of a Marketing Plan * Establishing Market Objectives * Identifying Target Market Total Market Approach one type of product with little or no variation aimed at everyone through one distribution system. Market Segmentation approach the market is subdivided into groups of people who share certain characteristics. * Developing Marketing Strategies (examining elements of the 4 Ps) * Implementation, Monitoring and Controlling Financial Forecasting measures the sales potential and revenue forecasts (benefits) for strategies and compares these with anticipated costs. Comparing actual and planned results 1. Sales analysis comparing of actual sales with forecast sales to determine the effectiveness of the marketing strategy 2. Market share analysis/Ratios by comparing competitions market share to their own this can reveal changes in total sales (increase or decrease) 3. Marketing Cost Analysis marketer breaks down the total marketing cost into specific marketing activities to access the effectiveness of each activity. Market Research Process Market research is the process of systematically collecting, recording and analysing information concerning a specific marketing problem. The three steps of the market research process are; 1. Determining information needs 2. Collecting data from primary and secondary sources 3. Data analysis and interpretation -the data that represents average, typical or deviations from typical patterns. The data must be then displayed in way which statistics and figures can be conducted e.g spreadsheets Customer and Buyer Behaviour Customers are classified into two categories: Consumer the process of purchasing goods and services for personal household use. Organisational the purchase of goods and services by producers, resellers and government. Types of Customers Household Personal personal and household spending plays a dominant role within the economy as it contributes to the level of economic activity which affects business profits, unemployment levels, interest rates levels and rate of inflation. The Firms market consists of businesses that purchase goods and services for further processing or for use in their production process. Educational institutes Government Customers Governments spend billions of dollars each year for a wide variety of goods and services ranging from battleships to paperclips. All purchases of the government spend public funds to buy products, the government is accountable to the public, requiring a much more formalised set of buying procedures where firms submit quotes to supply a particular good or service and the lowest bid is generally accepted. * The Buying Process The buying process involves 5 common steps: Recognise the problem need or want requiring satisfaction Search for info brands, product characteristics, warranty, price etc Evaluate alternatives cost and benefit analysis Purchase Evaluate after purchase stability of product, satisfaction gained or dissatisfaction may occur. * Factors influencing Customer Choice Psychological influences e.g perception, motive, attitude and personality Socio-cultural influences e.g family, friends, social class, culture and subculture. Economic Influences -A boom is a period of low employment and rising income. Contraction is a period of slowly rising unemployment with incomes stabilising. Recession sees unemployment reach high levels and incomes fall dramatically. Expansion means unemployment levels start to fall slowly and incomes begin to rise. Government Influences government will put into place policies that expand or contract the level of economic activity. These policies directly or indirectly influence business activity and customers spending habits and such will influence the marketing plan. Developing Market Strategies * Pricing Strategies Price Skimming charging the highest price possible for innovative products Pricing Penetration charges to lowest price possible for a product or service to achieve large market share Loss-leader selling a product below its cost price to attract customers Price Lining a limited number of key prices for selected product lines e.g one line of watches for $35 and a more expensive line at $55 * Pricing Methods Cost-plus margin the total cost of production then adds on amount for profit (mark-up) Market set prices according to the level of supply and demand, when demand is high prices are high Competition based a business chooses a price based on competition, either below, equal to or above * Marketing segmentation and product Mass marketing or a total marketing approach This includes basic food items, water, gas, electricity etc. Concentrated Market Approach -By using the concentrated market approach the business is able to analyse its customer base more closely and design strategies to satisfy this select groups needs, and develop particular products based on customer feedback. Product Differentiation is the process of developing and promoting differences between the businesses products and those of its competitors. e.g jeans with designer labels and washing detergent with brightener additives * Place/Distribution Channels of Distribution or marketing channels are routes taken to get the product from the factory to the customer. The process usually involves a number of intermediaries such as wholesalers, brokers, agents or retailers. To choose the channel of distribution the location is the main contributor of the business market or market coverage (number of outlets a firm chooses for it product). There are three ways a business can cover a market Intensive distribution when a business saturates the market with their product e.g milk, lollies and newspapers Selective Distribution businesses use a moderate proportion of possible outlets where customers are prepared to travel e.g clothing, furniture Exclusive Distribution only one retail, outlet in a large geographical area for exclusive and expensive products. Physical Distribution Transport Warehousing involves receiving, storing and dispatching goods. Inventory controlled through a system that maintains quantities and varieties of products appropriate for the target market.  · Effects on Distribution 1. Technology 2. Local Government Approving new development applications and alteration to existing premises Fire regulations Determining land zoning and the purpose for which a building and land can be used Parking regulations Health regulations Size, shape and location of business signs Ethical and legal Aspects Environmentally responsible products Materialism an individuals desire to constantly acquire possessions Impact of retail development -intensely competitive environment may result in some retailers using questionable marketing practices Sugging Selling Under Guise of a survey, Role of Consumer Law Deceptive and misleading Price- Discrimination Implied Conditions or terms Merchandise quality meaning that the product is of a standard a reasonable person would expect for the price Fitness of purpose meaning that the product is suitable for the purpose for which is being sold. That is, it will perform as the instructions or advertisement implies Warranties Resale Price Maintenance Legislations to respond to ethical and legal aspects of marketing: The Trade Practice Act 1974 is one of the most important pieces of legislation in Australia and has two purposes: 1. To protect consumers from misleading and deceptive conduct 2. Restrictive trade practices to restrict competition as well as ensuring that a number of businesses are operation at any one time in the same market, to avoid the problem of monopolistic power. Fair Trade Act (FTA) is a mirrors legislation that covers sole traders and partnership as well as companies Implied conditions in both Acts: Merchantable quality worth the money Fit for purpose does its jobs. HSC Topic Four: Employment Relations Case Study Managing the ER function Line Management * ALDI Supermarkets * Individual store managers are expected to solve all instore problems there is no ‘area manager or specialist ER department Key influences on ER Social Inf

Effects and Importance of Osmosis

Effects and Importance of Osmosis Osmosis is the movement (natural) of a solvent, in the case of living organisms (water) selectively through a semi-permeable membrane down a water potential gradient. In other words it is the movement of water across a selectively semi- permeable membrane from an area of high water potential (low solute concentration) to an area of low water potential (high solute concentration) (Bowen, 2000). Semi-permeable membrane A membrane is partially (semi) permeable, if it will let in water molecules but not the molecules or ions dissolved in water (the solutes such as sugar molecules). Many cell membranes function in this manner. Osmosis is there for an important mechanism in the transport of fluids in living organisms (Bowen, 2000). Osmosis: Movement of water across a selectively permeable membrane from an area of low solute concentration to an area of high solute concentration. Key: Water, o Solute Osmosis is important in biological systems, as many biological membranes are semi-permeable. In general, these membranes are impermeable to organic solutes with large molecules, such as polysaccharides, while permeable to water and small, uncharged solutes. Permeability may depend on: solubility properties, charge, or chemistry, as well as Solute size. Water molecules travel through the plasma cell wall, tonoplast (vacuole) or protoplast in two ways, either by diffusing across the phospholipids bilayer directly, or via small transmembrane proteins similar to those in facilitated diffusion and in creating ion channels). Osmosis provides the primary means by which water is transported into and out of cells. The turgor pressure of a cell is largely maintained by osmosis, across the cell membrane, between the cell interior and its relatively hypotonic environment (Maton et al., 1997). The process of osmosis accounts for many functions that maintain life. In relation to blood cells, blood cells placed in pure distilled water will swell and burst. If these cells are placed in a Hyper osmotic (hypertonic) solution, i.e., the solution has more dissolved particles, salts, sugar, etc., than is in the cells, they will shrivel up (a process called crenation in the case of blood cells). The energy that drives the process of osmosis is called osmotic pressure. In animal (human beings included), the red blood cells are very important to the survival of the organism because they transport oxygen from the gills, skin, or lungs to the cells of the various tissues (muscles, nerves, etc.). These blood cells are transported in a fluid (serum) that has approximately the same salt content as sea water. Effects of Osmosis on Red Blood Cells Red blood cells as in all animal cells dont have cell walls. In cases of hypotonic solutions, red blood cells will swell up and burst (explode) .when the cell is in danger of bursting due to accumulation of too much water in it, contractile vacuoles will pump out the water out of the cell to prevent it from bursting. In hypertonic solutions, water will diffuse out of the cell due to osmosis and the cell shrinks. For the red blood cell to stay in its normal condition, its always surrounded by isotonic solution. If the concentration of the cells cytoplasm is lower then medium (the medium is hypotonic) surrounding the cell, then osmosis will result by the cell gaining water, hence the cell will swell up and burst. If the concentration of the water inside the cell is the same as that outside the cell (the medium is isotonic solution), there exists a dynamic equilibrium, meaning the number of cells getting in and leaving the cells is the same hence the cell will retain its original size. The red blood cell retains its shape because of the isotonic nature of the plasma. If the water concentration inside the cell is higher than that of the medium (the media is a hypertonic solution), hence the number of molecules diffusing out will be more than that entering, and the cell will shrink. The kidneys in the human body provide the necessary regulatory mechanism for the blood plasma and the concentration of water and salt removed from the blood by the kidneys, which is controlled by the hypothalamus. This process of regulating the salty and the mineral salts in the blood is called osmoregulation. Osmosis and diffusion a have related concepts: Both processes involve the movement of materials from an area of high concentration to an area of low concentration. Diffusion involves the movement of chemical molecules from a low concentration to a higher concentration whereas osmosis involves the movement of water molecules from a high to low concentration via a semi permeable membrane. Importance of Osmosis in the animal/human body Salts and minerals are transferred from water through osmosis. Osmosis transfers water through the plasma membrane (which is selective and semi permeable) of the cell. It manages the mixing of water, glucose and salts in the body cells, this is important, otherwise the cells would loose too much water and eventually die. Hence osmosis plays an important role in keeping the cells alive. Osmosis plays an important role in the functioning of the kidneys, it is also important in the helping to transfer water and various nutrients between the blood and fluid of the cells. People who suffer from kidney diseases depend in kidney machines to remove waste substances (products from their blood, such machines use a process called dialysis, which is similar to the process of osmosis. Salt water fish constantly consume a lot of water, which is released to the environment through osmosis, while fresh water fish dont drink water because their skin is responsible to absorbing water. Diffusion of Potassium Permanganate (KMnO4) Diffusion is the movement of molecules from an area of high concentration to an area of low concentration across a permeable membrane as a result of kinetic energy of random motion. It is a random movement of molecules which is directional from an area of high concentration to an area of low concentration until equilibrium is achieved. Molecules are in a constant state of motion. For example, if you dissolve KMnO4 in water so that the concentration is initially higher in one part of the water that another, diffusion will occur so that there is a net movement of KMnO4 from area if high concentration to an area of lower concentration. However, if the KMnO4 molecules have a complete even and random distribution through out the water, there will be no movement of KMnO4 in any direction. The rate of diffusion will be affected by properties of: The cell The diffusing molecule Surrounding solution The rate of diffusion increases as the concentration gradient increases. When the concentration of molecules outside the cells is very high, relative to the internal concentration, the rate of diffusion will also be high. If the internal concentration are the same (low concentration gradient), the rate of diffusion will be low.

Dr. Harold Glucksberg vs. The State of Washington Essay example -- Eut

Dr. Harold Glucksberg vs. The State of Washington 'Choosing death before dishonor is seen by some philosophers and ethicists as a rational reason to commit suicide.' In the 1994 case of Glucksberg v. Washington (Otherwise acknowledged as Compassion In Dying v. The State Of Washington), Harold Glucksberg, alongside the right-to-die organization Compassion In Dying, filed a suit in opposition to the state of Washington for three fatally ill patients he treated. Dr. Glucksberg and 'Compassion in Dying' set their case saying that the ban against doctor-assisted suicide was violating the right patients right of due process and placed an unjustified burden on terminally ill patients who required help to stop suffering misery from the disease that plagued their body and/or mind. While the case was in the state of Washington, it was seen in the plaintiff's favor: Dr. Harold Glucksberg and Compassion In Dying. Because of this the state laws changed in support of doctor-assisted suicide. The state of Washington still opposed the idea of this so they ordered an appeal. By 1997 the case, along with another case, (Quill v. Vacco), reached the Supreme Court. The decision in the Supreme Court did not, however, meet up to the original case. The defense won the trial. The case had a many important questions to it. In one question: is physician-assisted suicide morally, ethically, legally correct, and/or fair to anyone? Ethically Correct? ?One ought not to commit an act ...

Therapeutic Benefits of Stem Cells Essay -- Science Health Technology

Therapeutic Benefits of Stem Cells A stem cell is a cell which can differentiate into any other type of cell in the body. It can become a blood cell, a liver cell, or even a nerve cell. The only problem with stem cells is that they can only be found in the bone marrow of living humans or the gonadal tissue of developing fetuses. There are many people who believe that stem cells are the miracle cure for cancer, Parkinson’s, and many other terminal diseases, but there are large groups of people opposed to the use of stem cells because of the means by which they are attained. This debate will go on indefinitely, because there are prodigious amounts of support for both sides of the issue. The many benefits of stem cells out weigh the ethical issues behind the retrieval methods. There are many diseases that can be cured with stem cells. Lou Gehrig’s disease is a disorder in which the â€Å"nerve cells which operate muscles degrade over time† (Langreth, 2001). There is no certain cure for the disease, but â€Å"embryonic stem cells have been known to differentiate into motor neurons† (Langreth, 2001). The fact that stem cells can become motor neurons is astonishing because they can lead to a cure for Lou Gehrig’s disease. The possibility of curing this disease has many positive implications. Before, anyone who developed this condition was labeled as â€Å"dead† because there was no possibility of curing the disorder. The fact that we have a chance to cure this disease through the use of stem cells gives the people who suffer from the disease a glimmer of hope that they can be cured. Another disease which can possibly be cured through the use of stem cells is X-SCID. X-SCID is an X-linked immunodeficiency that is genet ically inherited... ...5F0+ds+%5Fs%5F0+dstb+KS+fcl+Aut+hd+0+hs+0+or+Date+ri+KAAACBVB00236207+sm+KS+ss+SO+C061&cf=1&fn=1&rn=1&+KS+so+b+ss+SO+C495&cf=1&fn=311&rn=319 4. Langreth, Robert. Daring to Live. Retrieved March 25, 2003 from http://web13.epnet.com/citation.asp?tb=1&_ug=dbs+0+ln+en%2Dus+sid+EEDE302C%2DD4AF%2D4AE5%2D8E99%2D32B074FDD225%40sessionmgr3%2Dsessionmgr4+2762&_up=dba+aphdeh+st+alpha+43DB&_us=bs+ALS++AND++stem++cells+ds+ALS++AND++stem++cells+dstb+KS+hd+0+hs+0+or+Date+ri+KAAACBVB00282442+sm+KS+so+b+ss+SO+1F99&cf=1&fn=1&rn=1& 5. FDA Consumer. Temporary Halt on Gene Therapy Trials. Retrieved March 25, 2003 from http://web13.epnet.com/citation.asp?tb=1&_ug=dbs+0+ln+en%2Dus+sid+EEDE302C%2DD4AF%2D4AE5%2D8E99%2D32B074FDD225%40sessionmgr3%2Dsessionmgr4+2762&_us=bs+X%2DSCID+ds+X%2DSCID+dstb+KS+gl+%5Fs%5F8+hd+0+hs+0+or+Date+ri+KAAACBVB00282749+sm+KS+so+b+ss+SO+CBEE&cf=1&fn=1&rn=1&