Understanding markets Essay Example | Topics and Well Written Essays - 2000 words

Understanding markets - Essay Example Using different methods, Marketing determines the size of the market that is being approached but this has to be a controlled exercise otherwise the effort will be aimless. Marketing is a highly misunderstood word. It is not tactics or methods of getting customers to buy a company’s product or services. That is advertisement or promotions. It is a conscious effort to analyze and understand what is needed and trying to fulfill this need. But above all, Marketing is all about customers. Their behavior and attitude towards buying a product is of paramount importance. Their needs and wants and their likes and dislikes are decisive factors and purchase decisions depend on these issues. It is the understanding of these factors that will develop a marketing strategy. Therefore Marketing is all about understanding the customers and of finding ways and means to for providing product or service as per his requirements. â€Å"Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders†. (AMA). This comprehensively calls for Market segmentation and results in two way satisfaction of both customer and the stakeholder. Markets are heterogeneous and are created by reasons of different values, needs wants, constraints, beliefs and incentives. Customers differ in their values and perceptions and want to purchase things that have value for them. Value is not just the monetary part, but also the usefulness and emotions that with go with it. The need and want play a great role in determining this value. The price actually determines the location from which this purchase will be made. Service and reliability are other important determining factors. Therefore a market segment is a set of customers that have a common approach to above questions and have a common desire to purchase a common set of goods and or services.

Mergers and Acquisition Essay Example | Topics and Well Written Essays - 2500 words

Mergers and Acquisition - Essay Example On the other hand in the level of operation the managers make the decisions. So in the real world the objective and mode of action differ from the theoretically proved ones. So the optimal strategies have also been driven through the modification. So there are different strategies such as merger, acquisition, research and developments etc are adopted. In this text we will discuss the merger and acquisition policies and their effects through some examples in Europe. In the lexicon of economics the word merger refers to the combination of two or more firms to form a single firm. This takes over all the assets and liabilities of the merging firms: shares in the new firm are divided among the shareholders of the original companies on an agreed basis. On the other hand acquisition refers to the situation when one large firm takes over or better we can say purchase of smaller firms for the sake of expansion. If these are unincorporated the owners agree to the terms. If the other business is a company its shares are purchased. Where some, but not all, the shares of other company or companies are purchased, special rules governs the treatment of the existing shareholders those are not willing to sell their share to the purchaser company. Hence we can say that the merger and acquisition are similar as well as dissimilar. In merger the merging companies continue to hold their ownership rights and the right of decision-making regarding the objective of the collaboration. But in the case of acquisition the company, the shares of which have been sold, possesses the ownership right no more. Nor the acquired firm possesses the power to make decision. The entire ownership remains in the hand of a single firm. The similarity between the two is that both of the strategies have the same aim. The main objective is the expansion of firm. The level and range of production would increase. These have some common benefits, which are given below: Economies of Scale: It

Formal organizations Research Paper Example | Topics and Well Written Essays - 1500 words

Formal organizations - Research Paper Example Microsoft Company has various divisions depending on the functional aspects and the products produced at the divisions. At the head of the hierarchy are the two parallel but complementary positions; there is the CEO who is concerned with product development, sales and marketing, operations, administration, consulting and support, as well as financial management. The Chairman and Chief Software Architect is charged with the responsibility of developing the technical strategy in order to help in planning for the future operations of the organization. The discussion shall be concentrated on the business solutions under business divisions. c. Connection to a specific social institution Microsoft companies have a connection to several social institutions. It particularly has an important relation to the economic growth and development in a given society. The company is a developer and distributor of a variety of computer software and employs tens of thousands of professionals worldwide. The software developed by the company is useful in small businesses and the large enterprises as well. This helps in promoting the business operations hence encouraging economic growth. d. Connection to one or more ‘essential tasks’ of the social institutions Just like any other institution, Microsoft Company has an elaborate system for hiring employees and replacing the old employees who have left or died. We have also seen cases where a top serving officer in the organization resigns from his position and establishes a strategic senior position to help manage the organization. This was seen when the former Chief Executive Officer, Billy Gates, surrendered the position to be the Chairman and Chief Software Architect of the company. Another essential task performed by social institutions is producing, distributing, and consuming goods and services. In deed, Microsoft is the leading world producer of computer packages that are applicable in many sectors of the economy. 2. Using micro sociology a. Routine day to-day interaction patterns in the organization The day-to-day interactions are not very common at the organization at the lower level. The employees are often charged with individual responsibility under certain rules and regulations. The nature of the tasks that require consistent inventive and innovative abilities call for limited interactions. b. How concepts

Leading virtual teams in today's workforce Thesis

Leading virtual teams in today's workforce - Thesis Example Virtual team has advantages and disadvantages to both organization and employees who are a part of the virtual teams. There are many different views on how beneficial virtual teams really are. To an outsider looking in on an organizational that currently moved from a virtual team to a non-virtual team, you automatically would think they are just looking for ways to improve their bottom line. But there is more to virtual teams then just saving money. Virtual teams have advantages and disadvantages to both organizations and the employees working for these organizations. Efficient participation of a leader normally involves the employees’ corporation in decision making. That is where the virtual teams would come in handy. Leadership attention in its uniqueness and distinctiveness is always required in an organization. Leading virtual teams involves management of resources available in a traditional office setting. First this will improve the members’ participation as well as support for one another. Throughout our research we found there was many articles that identified ways on how to ensure virtual teams succeed. But one of the most common techniques that were mention in all articles was ‘communications’. Effective communication needs the listening, comprehension of ideas and expressing every member’s opinions by use of the appropriate technology. Effective communication is also necessitated by a careful diagnosis of the matters to be addressed in the team with the help of the leader. It was stressed that leaders and employee must choose the right type and the technology to deliver a clear message. Virtual teams serve to improve communication among team members. There are categories of leadership in virtual teams. They are, effective communication, building community on the basis of mutual trust, respect and affiliation, developing clear, shared goals as well as expectations, leadership by example and

Operations Management for the Construction of Sheikh Jaber Al-Ahmad Term Paper

Operations Management for the Construction of Sheikh Jaber Al-Ahmad Hospital - Term Paper Example It has been found that this inefficiency can be attributable to the architects and contracting engineers who are responsible for the development of the construction plan including the type and quantity of materials to be used, the number of construction workers to be employed, and the duration of the project. Nevertheless, in many construction projects where quality has always been deliberately overlooked such that contractors make use of cheaper materials in order to earn more than to erect a high-quality facility, there is dire need to revamp the entire operations management in that the cause of this kind of unscrupulous approach may be detrimental to those who will use the facility at the end of the day. This paper will look at the case of the construction of the Sheikh Jaber Al-Ahmad Hospital and the kind of operations management needed to complete it economically while ensuring productivity and efficiency. In particular, this paper will talk about an important tool in operations management: Economics and Diseconomies of Scale†, which aims to contribute to solving problems involved in the construction phase of the Sheikh Jaber Al-Ahmad Hospital. ... Spreading the fixed costs, reducing construction cost, cutting cost of purchased materials, etc In the case of the construction of the Sheikh Jaber Al-Ahmad Hospital, economies of scale can be a great tool in order to spread the fixed costs (Dixit and Baldick 8). When purchasing materials for the construction, the contractors can take advantage of buying construction materials in bulk or in large quantities such that the fixed cost per one kind of construction material will be distributed to the number of it that has to be purchased; the higher the quantity, the lower the cost for each material would be because for suppliers, the initial set up capital would just be the same regardless of the quantity of the material they have to produce; what these suppliers will have is a marginal extra cost. This is one of many reasons for company mergers or takeovers. Implementing this concept in the construction of Sheikh Jaber Al-Ahmad Hospital, it would be just as certain that the construction cost will be reduced. Obviously, as contractors obtain a good deal in construction materials by taking more quantity at a significantly lower cost would bend the â€Å"extra† budget more on perhaps improvisation of the facility or for the operating cost of the hospital once it becomes operational. Also, when variable cost is cut down, it automatically reduces the entire construction cost considering that the costs of the purchased materials are also cut back. Diseconomies of Scale Purchasing in large quantities does not always entail efficiency. There are cases wherein economies of scale no longer work for a construction operation such that instead of a sustained decrease in fixed cost with

'The Iceman Cometh' by Eugene O'Neill Essay Example | Topics and Well Written Essays - 750 words

'The Iceman Cometh' by Eugene O'Neill - Essay Example That which separates them paradoxically joins them, suggesting the principle of complementary opposition uniting yin and yang. The relationship of Harry Hope and Jimmy Tomorrow is more complex; for the focus on past and future they respectively symbolize takes us closer both to the pipe dreaming that is the thematic core of Iceman and to the Taoist manner in which ONeill structures the plays thematic oppositions. In a sentimental monologue halfway through act one, Harry Hope remembers the time he almost ran for alderman, and vows to renew his political involvement; moments later Jimmy Tomorrow, in counterpoint, dreams about regaining his former position in public relations. For both, however, pipe dreams for the future rest on self-deceit about the past. With no chance of winning twenty years ago, Harry used his wifes death as an excuse to withdraw from the race and the world; Jimmy conveniently forgets being fired for drunkenness. The close proximity of their speeches, however, allows Larry Slade to articulate their symbolic connection. Harrys maudlin reminiscences about Bessie prompts Larrys remark, "Isnt a pipe dream of yesterday a touching thing?" And when Jimmy vows to spruce up his appearance for a future interview, Larry sardonically comments, "The tomorrow movement is a sad and beautiful thing, too." While Hope focuses on illusions about the past and Jimmy leads the "tomorrow movemen t," they actually form another complementary couple who represent the interdependence of false memories and empty ambitions--the neurotic state of mind that afflicts virtually all the barroom derelicts. As Larry laughingly crows to Jimmy, "Worst is best here, and East is West, and tomorrow is yesterday. What more do you want?" The identity of "yesterday" and "tomorrow," apparent opposites, again resembles that of yin and yang: past and future interpenetrate at Harry Hopes saloon. Iceman also mingles another pair of

Distribution Channel And Parle Essay Example for Free

Distribution Channel And Parle Essay Introduction The bread and biscuits constitutes the largest segments of consumer foods in India. Both Biscuits and Bread are items of mass consumption in our Country. Almost 2 million tons of biscuits are produced in India each year and consumption is growing at 10-12 per cent annually. The per capita  consumption of biscuits in the country is about 1.52 kg annually. Contrary to popular belief that biscuits are consumed by the middle and high income groups, it is actually the only nutritious and hygienic food product for children, lower income groups and the rural population. Nearly 50 per cent of biscuits produced are consumed in rural areas and 30 per cent by income groups earning below Rs 750 per month. Every 100 gm of glucose biscuits roughly provides 20 per cent of energy, protein and calcium required by an average adult. So as to explore the opportunities in these sectors, a large no. of companies is trying to increase their consumer base in these areas. For this they are offering various promotional schemes in order to make their brand familiar to consumers and to have a Competitive edge. Parle G Industries has made a rapid progress in the variety, quality and quantity of biscuits and baked foods and has become India’s biggest brands and the preeminent food brand of the country. It is equally recognized for its innovative approach to products and marketing. The company’s offerings are spread across the spectrum with products ranging from the healthy and economical. About the company In 1929 a small company by the name of Parle products emerged in British dominated India.The intent was to spread joy and cheer to children and adults alike, all over the country with its sweets and candies. The company knew that it wouldn’t be an easy task, but they decided to take the brave step. A small factory was set up in the suburbs of Mumbai, to manufacture sweets and toffees. The Parle brand became well known in India following the success of products such as the Parle-G biscuits and Thums Up soft drink. The original Parle Company was split into three separate companies: Parle Products Parle Agro Parle Bisleri Today, the great strength of Parle Products is the extremely widespread distribution network. Even at the remotest places, you can buy Parle biscuits and sweets from the local grocer. It has taken years to create this  extensive network. Parle’s sales force started with one salesman in Bombay and some agents in few other cities. Gradually, Parle Products expanded. Soon sweets and biscuits were being sent by rail to Calcutta, Delhi, Karachi, Madras and other major cities. As production increased, distribution was amplified. Full time salesmen were appointed in different areas. Currently, Parle Products has over 33, 00,000 distribution outlets. Distribution Channel Network of Parle-G Intensive Distribution- Parle uses, Intensive Distribution for Parle G. This is the ideal strategy for the market leader as intensive distribution has the following advantages; Increases coverage and sales. Increases product availability. Encourages retailers to compete aggressive. Higher competition leads to narrower margins for the retails hence, increases the ultimate margin for the manufacturer. Channel members of the distribution network: The Parle distribution network for biscuits has essentially four levels as enlisted below: Parle Depots Wholesalers and Distributers Carry Forward Agents (if required) Retailers Channel members and logistics: Parle has nearly 1500 wholesalers, catering to 425000 retail outlets directly or indirectly. A two hundred strong dedicated field force services these wholesalers and retailers. Additionally, there are 31 depots and Carry and Forward agents supplying goods to the wide distribution network. Parle has level 1, level 2, level 3 distribution channels levels. Level1- Availability at all departmental stores across the length and breadth of the country. Level2- Channel exists for customers scattered throughout the country. Level3-Mass consumption and suitable for National and International coverage. Channel Dynamics: Parle has a multi-channel marketing system since it uses more than two marketing channels to reach all its customer segments. Parle Distribution Network Logistics Selection of Channel Members: Parle takes into consideration a host of factors while selecting the channel members. This is because it believes that selection of channel members is a long run decision and the rest of the decision regarding the supply chain depends upon the efficiency and coverage by the channel members. The following are the host of factors considered by the company in selecting the channel members: Authentication is required by the regarding the identity of the channel members, which includes the name and address, photograph of the location. Proof of solvency which requires name and address of the channel member’s bankers Safety of the inventory, which means that the distributor/ dealer should get the stock of the company insured. Inventory or the perishable goods kept by the distributor/ dealer should be in good condition which means a detail of storage space and Refrigeration facility is to be provided. Details of the delivery vehicle, which includes the fo llowing. 1. Light Commercial Vehicles: 2. Matador 3. 3 Wheeler Van 4. Tricycle Van and Hand/Push cart. 5. The number and model of each of the vehicle needs to be furnished to the company. Company acknowledges the fact that it needs to be sensitive to the market demands. For this it requires that a number of salesmen needs to be present on the field. The salesmen too are divided into various categories like 1. The Field salesmen 2. Counter salesmen The details of Clerical Staff and labour are to be provided. The technical competence of the salesmen needs to be mentioned. Details of the various products of other companies that the channel member keeps have to be  provided. The following also need to be furnished with the above: 1. The annual sales of these products have to be mentioned. 2. Details of complementary products and product lines need to be mentioned. Dealers of the company must carry a good reputation. This is due to the fact that Parle believes that the reputation of the dealer affects the clientele in the long run. Market coverage by the distributors needs to be defined which includes details of Geographic coverage and Outlets per market area. The company also requires the dealers to furnish any Advertising and Sales initiative undertaken by them on behalf of the company. Channel Members of the Parle Distribution Network a) Distributors: One of the main factors, which keep the distributors motivated, is the margin. Usually the margins offered by Parle are 8%. Now-a-days it has been raised to 8.5%. Volume wise this comes out to be a big figure since Parle’s product has a good demand in the market. However compared to the other companies the margins are still lower since the new players in the market offer a much higher margin. But the very fact that Parle’s products have good demand in the market motivates the distributors to stock it. Parle Products being a cooperative cannot afford to give heavy monetary incentives. Parles products are considered to be value for money since the company does not believe in charging high margins. In fact all monetary incentives are just the short run means to promote the company’s product. b) The Retailers: Trade schemes: these are undertaken by the company only for the hard selling items. Glow boards: the company puts up glow boards at the retailer and pays the major portion of the cost. Schedule of the salesmen: they provide the retails with this schedule so the retailers can pre -estimate the quantities of the various products needed. Infrastructure facilitation: the company facilitates the retailers to buy beautiful stalls by formulating an easy payment program and a commitment to buy back the equipment at a reasonable price when the value of the equipment has depreciated. Distribution Channel and Parle The company’s strength is in the procurement of raw materials and essentially not the distribution of its product. Even though Parle is the market leader in biscuits. But, distribution logistics is the industry’s main problem. While the other companies fail to replenish demand due to lack in procurement of rawmaterial, Parle’s inventory management is sound. Parle has loyal cooperatives that provide products only to them, over time the relationship of trust has built up with these people that Parle leverages now. The transport channel is another strong point for Parle. As these transporters have grown with the company overtime; the bonding with them enables the company to give least margins when it comes to the distributors in the industry, lowering the costs. Parle believes that there is an ongoing demand in the market and therefore no promotions are needed to increase the sales, also the fact this would affect the cost of the product the company doesn’tundertake many promotion schemes. Parle is able to provide products at the least price in the industry, and is able to give least channel margins as the channel members earn through volumes and not through high margins. The company has been able to push its new products into the market by hooking them onto the fast moving products like Parle butter bite. Because of the strong relationship that Parle shares with the constituent channel members, it forces the channel members to carry all its new products. Suggestions for Distribution Channel The following are the suggestions that Parle can implement to better its distribution channels: Increase the margins: In order to motivate the channel members it is also very essential for the company to increase the margins for the hard selling items. Pushcarts: These should be increased in number in order to increase the market reach (especially the rural market). This can provide with a very effective channel. Parle should also go in for ‘Parle’ Zones: It is primarily for big city retail outlets. Here all the Parle products can be stalked. This can be an effective mode of umbrella marketing. This strategy can be implemented in regions where the footfalls are large in number. The advantages of this alternative channel would be as follows: 1. Full range display. 2. Easier to promote new products. 3. Easy to push impulse purchase products. 4. The Parle Brand building exercise will be enhanced.