In: Operations Management
INTEGRATED MARKETING COMMUNICATION:
different segmentation variables (demographic: income/gender/ethnic group) geographic, psychographic (when looking at AIO: lifestyle, activities, interest and opinions) and geodemographic /benefit/usage.
need 3 paragraphs to a page max on the different methods of segmenting consumer markets. WITH a couple of EXAMPLES
In: Operations Management
Products often service different needs, appeal to different buyers, or are perceived differently in different markets.
Consider a good or service that is sold in your country and another using different marketing strategies in each.
One of the countries must be the countries home market.
Describe the factors to consider in developing international product strategies.
Explain the factors to consider when designing international distribution strategies.
In: Operations Management
The term social sustainability? What does it mean for organizations in the developed world?
In: Operations Management
INTEGRATED MARKETING COMMUNICATION
what are the advantages of in-house vs outside agencies with details and examples. dont be so advanced with words please, and 3-5 paragraphs max.
need as soon as possible. thank you
In: Operations Management
Identify and explain each of the six domains that are measured when the VOI of an Employee Health and wellness program is assessed
In: Operations Management
The principle of the separate legal entity has been considered as the most fundamental principle of modern corporate law. This independence or distinction is not a new concept as it forms the backbone of the corporation’s legal issues. It is argued, however, that the sanctity of the principle of corporate veil principle is only drawn under compelling
Critically analyses the above statement in light of recent development of cases in the commonwealth jurisdiction of Malaysia and United Kingdom.
In: Operations Management
After having initially started out in 1988 as a reseller of third party software to small distribution businesses and corporate systems for retail home offices, by 1993 Datavantage grew to 16 employees and $1.5 million in sales with only $50,000 of external financing. Very few products were developed internally and, by 1993, Datavantage was slowly transforming itself into a consulting company. Despite relative success, it wasn’t exactly what Marvin envisioned to be an exciting entrepreneurial opportunity and he was ready to get out of the business. A radical change was needed in order for Marvin to consider staying and growing the company.
The opportunity for change arrived in 1994 when Datavantage acquired the services division of LDI, with Chaz joining Datavantage as part of this acquisition. LDI was a reseller of products for store systems and provided a complementary foundation for Datavantage’s further development. This dramatically changed Marvin’s perception of Datavantage’s future potential.
Also in 1994, the organization made a conscious decision to better control its own destiny and transition away from reselling third party software and into internally developing its own Point of Sale software products. After developing Store 21, a complete store management system based on full transaction Point of Sale (POS) applications software, Chaz and Marvin were considering the acquisition of XBR Track, a small loss prevention software company, based in Boston, Massachusetts.
The opportunity for XBR Track emerged out of the need of Specialty Retailers to minimize their internal losses from theft and shrinkage. Chaz and Marvin determined that retailers in the U.S. were losing an average of 2 percent of sales due to retail theft or shrinkage each year. The losses due to shrinkage directly affect the bottom line of the retailer in the form of a pure profit loss. It was estimated that retail employees account for 55 percent to 75 percent of lost revenue because of various fraudulent transactions. Transaction fraud ranges from improper cash refunds and price overrides to employee discount abuse and fraudulent credit card activity. XBR Track was offering the retail industry a solution to the $13.2 billion loses annually due to employee theft.
Chaz and Marvin find themselves in the final stages of negotiation to acquire XBR discussing many related issues regarding the acquisition and its impact on the entrepreneurial culture currently at the company. While there is no doubt about the attractiveness of the acquisition, the case brings up multiple concerns about the post-acquisition integration directly relating them to the challenge of continuing the organizational entrepreneurial culture. Specifically, the two founders are concerned with whether Datavantage will be able to successfully serve the existing customers and maintain its current level of customer support; whether XBR’s geographical location will become an issue during the integration; whether the existing sales force has enough knowledge and competency to sell XBR; and whether Datavantage will be able to effectively execute the “get into the castle” strategy intended for XBR. Above all, however, Chaz and Marvin were wondering if the potential rapid growth that XBR can provide for Datavantage can have a negative impact on the small start-up entrepreneurial culture that made the company successful.
In: Operations Management
Anytime is a good time to inspire change. Is slow and steady is the best way to transition into change? I have said this before, and it always bears repeating…. The only constant in business is changing. Discuss how you bring about/affect/effect change in your business world.
In: Operations Management
Explain "State sovereignty". Explain, what practical impacts it has in environmental law and give a practical example.
In: Operations Management
For your company Amazon:
(Please answer step by step) (Dont copy/paste information please)
In: Operations Management
(The answer to this question must be atleast 2 pages long and must not be copy and pasted from previous answers)
Case Study:
Can Amazon Trim the Fat at Whole Foods?
WHEN FOUR YOUNG entrepreneurs opened a small natural-foods store in Austin, Texas, in 1980, they never imagined it would one day turn into an international supermarket chain with stores in the United States, Canada, and the United Kingdom. Some 35 years later, Whole Foods has about 450 stores, employs 85,000 people, and earned $16 billion in revenue in 2016.
Whole Foods' mission is to offer the finest natural and organic foods available, maintain the highest quality standards in the grocery industry, and remain firmly committed to sustainable agriculture. The grocery chain differentiates itself from competitors by offering top-quality foods obtained through sustainable agriculture. This business strategy implies that Whole Foods focuses on increasing the perceived value created for customers, which allows it to charge a premium price. In addition to natural and organic foods, it also offers a wide variety of prepared foods and luxury food items, such as $400 bottles of wine. The decision to sell high-ticket items incurs greater costs for the company because such products require more expensive in-store displays and more highly skilled workers, and many items are perishable and require high turnover. Moreover, sourcing natural and organic food is generally done locally, limiting any scale advantages. Taken together, these actions reduce efficiency and drive up costs. The rising cost structure erodes Whole Foods' margin.
Whole Foods Market:
Stuck in the Middle
Given its unique strategic position as an upscale grocer offering natural, organic, and luxury food items, Whole Foods enjoyed a competitive advantage during the economic boom through early 2008. But as consumers became more budget-conscious in the wake of the deep recession in 2008—2009, the company's performance deteriorated. Competitive intensity also increased markedly because basically all supermarket chains and other retailers now offer organic food. As a result, sales performance of existing Whole Foods stores ("same-store sales," an important performance metric in the grocery business) has been declining since 2013. Overall, Whole Foods Market has sustained a competitive disadvantage, underperforming not only its competitors, but also the broader market by a wide margin. Over five years, Whole Foods Market underperformed the broader stock market by some 200 percentage points!
To revitalize Whole Foods, co-founder and CEO John Mackey decided to "trim fat" on two fronts: First, the supermarket chain refocused on its mission to offer wholesome and healthy food options. In Mackey's words, Whole Foods' offerings had included "a bunch of junk," including candy. Mackey is passionate about helping U.S. consumers overcome obesity
to help reduce heart disease and diabetes. Given that, the new strategic intent at Whole Foods is to become the champion of healthy living not only by offering natural and organic food choices, but also by educating consumers with its new Healthy Eating initiative. Whole Foods Market now has "Take Action Centers" in every store to educate customers on many food related topics such as genetic engineering, organic foods, pesticides, and sustainable agriculture.
Yet, a 2015 mislabeling scandal in New York—in which city officials found that Whole Foods had mislabeled weights of several freshly packaged foods such as chicken tenders and vegetable platters, leading to overcharges of up to $15 an item—reinforced the public's image of Whole Foods as overpriced. Mackey made a video apology and said this was an unfortunate but isolated incident caused by inadvertent errors of local employees. He also emphasized that the problems were found in only nine out of 425 stores (at that time).
Second, Whole Foods is trimming fat by reducing costs. To attract more customers who buy groceries for an entire family or group, it now offers volume discounts to compete with Costco, the most successful membership chain in the United States. Whole Foods also expanded its private-label product line, which now includes thousands of products at lower prices. The company also launched a new store format, "365 by Whole Foods Market," based on its "365 Everyday Value" private label. The 365 stores focus exclusively on Whole Foods' discount private labels, primarily to address the rise of discount competitor Trader Joe's. The risk, however, is that this strategic initiative will cannibalize demand from the higher end Whole Foods Markets, rather than taking away customers from Trader Joe's. To offer its private label line and volume-discount packages, Whole Foods is beginning to rely more on low-cost suppliers and is improving its logistics system to cover larger geographic areas more efficiently.
Mackey indicated that he planned to grow threefold in the future and believes the United States can profitably support some 1,200 Whole Foods stores. Larger scale and more efficient logistics and operations should allow the company to drive down its cost structure.
Whole Foods got stuck in the middle. It was outflanked on the low end by national grocery chains such as Publix or Kroger that offer a wide variety of organic foods at lower prices. At the higher end of the market, Whole Foods Market was outperformed in urban centers by more specialized grocery stores focusing on specific segments such as seafood, meats, breads, cheese, or wines.
Amazon Acquires Whole Foods
Mackey's turnaround initiative failed. This became more apparent as activist investors honed in on Whole Foods' poor performance and highlighted the strategic shortcomings of the organic grocery chain. Even though Whole Foods Market attempted to strengthen its strategic position and also changed its board of directors, bringing in more large-chain retail experience, it was too little, too late. In 2017, Amazon acquired Whole Foods Market for close to $14 billion.
With the acquisition of Whole Foods, Amazon continues its vertical integration along the value chain into physical retail spaces. Two aspects about this acquisition are particularly noteworthy. First, the Whole Foods acquisition is 10 times larger than any other acquisition the Seattle-based technology firm has undertaken (its second-largest acquisition, Twitch, a live-video streaming site was acquired for less than $1 billion in 2014). Second, Amazon chose to make an acquisition in the grocery business and not in any other retail space. Why?
Amazon already dominates categories such as consumer electronics; therefore, it has no need to acquire a retail outlet such as Best Buy. The Whole Foods acquisition also offers Amazon a slew of new benefits: The organic grocery has a national footprint, which allows the ecommerce firm to test its latest technology on a much larger scale. For example, it has experimented with Amazon Go, a grocery concept without checkout counters. Shoppers fill their carts, and software automatically tallies the bill and deducts it from the person's account. This technology could be rolled out at Whole Foods Market. Amazon will also be in a position to gather more data about shopping behavior. Grocery shopping is a particularly important need for consumers, and Amazon reasons if shoppers start associating groceries with Amazon, they will want to buy other items online also. In addition, Amazon is notoriously cost conscious. Bringing down the cost structure of Whole Foods by applying Amazon's world-leading logistics technology could significantly strengthen the grocer's strategic position.
Finally, Amazon bought Whole Foods to compete more effectively with Walmart. The largest physical retailer in the world is the largest U.S. grocery chain, accounting for some 15 percent market share. In addition, the grocery business is Walmart's most profitable, and is the strongest draw for customers to the big-box stores. In recent years, Walmart has been more aggressively moving to combat Amazon's dominance in ecommerce. The Bentonville, Arkansas, retail chain purchased Jet.com for more than $3 billion in 2016, just one year after the site was launched. Jet. com offered lower prices than other retailers, expecting that many consumers would be willing to wait a bit longer for their shipments. The entrepreneurs were correct in making this assumption. In addition, Jet. com's strategic approach was tailor-made to enhance Walmart's online presence. Walmart.com has become a star performer as the site's user-friendliness has improved. Walmart has also been at the forefront of implementing a hybrid retail concept where consumers order goods online and pick them up in stores.
The stage is set for a battle of the retail giants, with the number-one old-line physical retailer in one corner of the ring and the ecommerce leader in the other. Stay tuned!
DISCUSSION QUESTIONS
1. Why was Whole Foods successful initially? Why did it lose its competitive advantage and underperformed its competitors?
2. Why did Whole Foods end up being "stuck in the middle"?
3. What changes do you expect at Whole Foods following the integration with Amazon?
4. Why did Amazon acquire Whole Foods? What are some operational and strategic reasons for this decision? Do you think the Whole Foods acquisition was a good move for Amazon? Why, or why not? Explain.
In: Operations Management
Chapter Case: S&S Air’s Mortgage
Mark Sexton and Todd Story, the owners of S&S Air, Inc., were impressed by the work Chris had done on financial planning. Using Chris’s analysis, and looking at the demand for light aircraft, they have decided that their existing fabrication equipment is sufficient, but it is time to acquire a bigger manufacturing facility. Mark and Todd have identified a suitable structure that is currently for sale, and they believe they can buy and refurbish it for about $35 million. Mark, Todd, and Chris are now ready to meet with Christie Vaughan, the loan officer for First United National Bank. The meeting is to discuss the mortgage options available to the company to finance the new facility.
Christie begins the meeting by discussing a 30-year mortgage. The loan would be repaid in equal monthly installments. Because of the previous relationship between S&S Air and the bank, there would be no closing costs for the loan. Christie states that the APR of the loan would be 6.1 percent. Todd asks if a shorter mortgage loan is available. Christie says that the bank does have a 20-year mortgage available at the same APR.
Mark decides to ask Christie about a “smart loan” he discussed with a mortgage broker when he was refinancing his home loan. A smart loan works as follows: Every two weeks a mortgage payment is made that is exactly one-half of the traditional monthly mortgage payment. Christie informs him that the bank does have smart loans. The APR of the smart loan would be the same as the APR of the traditional loan. Mark nods his head. He then states this is the best mortgage option available to the company because it saves interest payments.
Christie agrees with Mark, but then suggests that a bullet loan, or balloon payment, would result in the greatest interest savings. At Todd’s prompting, she goes on to explain a bullet loan. The monthly payments of a bullet loan would be calculated using a 30-year traditional mortgage. In this case, there would be a 5-year bullet. This means that the company would make the mortgage payments for the traditional 30-year mortgage for the first five years, but immediately after the company makes the 60th payment, the bullet payment would be due. The bullet payment is the remaining principal of the loan. Chris then asks how the bullet payment is calculated. Christie tells him that the remaining principal can be calculated using an amortization table, but it is also the present value of the remaining 25 years of mortgage payments for the 30-year mortgage.
Todd has also heard of an interest-only loan and asks if this loan is available and what the terms would be. Christie says that the bank offers an interest-only loan with a term of 10 years and an APR of 3.5 percent. She goes on to further explain the terms. The company would be responsible for making interest payments each month on the amount borrowed. No principal payments are required. At the end of the 10-year term, the company would repay the $35 million. However, the company can make principal payments at any time. The principal payments would work just like those on a traditional mortgage. Principal payments would reduce the principal of the loan and reduce the interest due on the next payment.
Mark and Todd are satisfied with Christie’s answers, but they are still unsure of which loan they should choose. They have asked Chris to answer the following questions to help them choose the correct mortgage.
Questions
1. What are the monthly payments for a 30-year traditional mortgage? What are the payments for a 20-year traditional mortgage?
2. Prepare an amortization table for the first six months of the traditional 30-year mortgage. How much of the first payment goes toward principal?
3. How long would it take for S&S Air to pay off the smart loan assuming 30-year traditional mortgage payments? Why is this shorter than the time needed to pay off the traditional mortgage? How much interest would the company save?
4. Assume S&S Air takes out a bullet loan under the terms described. What are the payments on the loan?
5. What are the payments for the interest-only loan?
6. Which mortgage is the best for the company? Are there any potential risks in this action?
In: Operations Management
After having initially started out in 1988 as a reseller of third party software to small distribution businesses and corporate systems for retail home offices, by 1993 Datavantage grew to 16 employees and $1.5 million in sales with only $50,000 of external financing. Very few products were developed internally and, by 1993, Datavantage was slowly transforming itself into a consulting company. Despite relative success, it wasn’t exactly what Marvin envisioned to be an exciting entrepreneurial opportunity and he was ready to get out of the business. A radical change was needed in order for Marvin to consider staying and growing the company.
The opportunity for change arrived in 1994 when Datavantage acquired the services division of LDI, with Chaz joining Datavantage as part of this acquisition. LDI was a reseller of products for store systems and provided a complementary foundation for Datavantage’s further development. This dramatically changed Marvin’s perception of Datavantage’s future potential.
Also in 1994, the organization made a conscious decision to better control its own destiny and transition away from reselling third party software and into internally developing its own Point of Sale software products. After developing Store 21, a complete store management system based on full transaction Point of Sale (POS) applications software, Chaz and Marvin were considering the acquisition of XBR Track, a small loss prevention software company, based in Boston, Massachusetts.
The opportunity for XBR Track emerged out of the need of Specialty Retailers to minimize their internal losses from theft and shrinkage. Chaz and Marvin determined that retailers in the U.S. were losing an average of 2 percent of sales due to retail theft or shrinkage each year. The losses due to shrinkage directly affect the bottom line of the retailer in the form of a pure profit loss. It was estimated that retail employees account for 55 percent to 75 percent of lost revenue because of various fraudulent transactions. Transaction fraud ranges from improper cash refunds and price overrides to employee discount abuse and fraudulent credit card activity. XBR Track was offering the retail industry a solution to the $13.2 billion loses annually due to employee theft.
Chaz and Marvin find themselves in the final stages of negotiation to acquire XBR discussing many related issues regarding the acquisition and its impact on the entrepreneurial culture currently at the company. While there is no doubt about the attractiveness of the acquisition, the case brings up multiple concerns about the post-acquisition integration directly relating them to the challenge of continuing the organizational entrepreneurial culture. Specifically, the two founders are concerned with whether Datavantage will be able to successfully serve the existing customers and maintain its current level of customer support; whether XBR’s geographical location will become an issue during the integration; whether the existing sales force has enough knowledge and competency to sell XBR; and whether Datavantage will be able to effectively execute the “get into the castle” strategy intended for XBR. Above all, however, Chaz and Marvin were wondering if the potential rapid growth that XBR can provide for Datavantage can have a negative impact on the small start-up entrepreneurial culture that made the company successful.
In: Operations Management
the inability of differing emergency responders from various jurisdictions to communicate with each other has been a major problem. Even though the situation has improved over the last decade, problems still exist.
In: Operations Management