Economic Turbulence in the Retail Industry

This paper deals with the economic turbulence in the retail industry. The paper contains a detailed analysis of the industry in accordance with Michael Porters five forces model. In addition to this, the future of the retail industry is summarized in accordance with the Accenture article containing the modern trends, such as green retailing.

Michael Porters Five Forces Model
Threat of New Entrants
The threat of new entrants in the retailing industry has been reducing in the past several years, as the number of independent retailers has been decreasing during the past decade. Most retail stores nowadays are chain stores. The main reason for this is that establishing favourable contacts with suppliers requires great capacities and efforts of independent stores. Although the barriers for starting a retail store are not impossible to overcome, it is very difficult for new retailers to gain the competitive edge and be successful due to the presence of multinational chain stores.

Authority of Suppliers
Suppliers in the retail industry tend to have very little authority, because of the large number of suppliers and only a few large retail chain stores. In the past, the retailers have exploited the suppliers through setting high quality standards and demanding lower prices and higher discounts. The Sears chain would be a good example to mention here. In 1970s, the Sears chain sought to dominate the household appliances market (investopedio.com, 2009). Sears exploited the suppliers by setting up very high quality standards for the suppliers that they were not able to meet (investopedio.com, 2009). Many of these suppliers were dropped from the Sears product line. Another example would be Wal-Mart chain, which exercises a strict control over its suppliers (investopedio.com, 2009). Small suppliers can become bankrupt or flourish depending on their contracts with large retail stores (investopedio.com, 2009). Therefore, these reasons cause the suppliers to have a very little power in the retail industry.

Power of the Buyers
The individual buyers have a little or no bargaining power over the retail chain stores. The main reason for this is the presence of only a few large retail chains in the world, which are in control of the resources. The other reason is that the prices for the products in most of the large retail store chains are fixed. For example, it is almost impossible for a customer to handle for lower prices for grocery at Safeway (investopedio.com, 2009). But the customers are able to demand high quality products for the fixed prices they pay. Therefore, they have a little power in terms of demanding high quality.

Availability of Substitutes
The retail stores do not specialize on one good or service, but they offer a range of services and products for the customers (thekwoka.com, 2009). Most of the retail store chains offer the same range of products and services, which means that what one retail store offers is likely to be also found at another retail store (investopedio.com, 2009). The retail stores, which offer unique products or services have an absolute competitive advantage over the other competitors and are able to attract more customers.

Competitive Rivalry
There is a large number of retailers in the market. Thus, a large retail store can now be found in every street of most U.S. cities. In 2005, Wal-Mart alone had more than 6,800 stores worldwide (Zook  Graham, 2006). All the retailers nowadays face a tough competition. The slow growth in the retail industry makes the retail chains think of innovations in different ways and engage themselves in competitive rivalry. This competitive rivalry sometimes results in price cuts for a larger market share. Recently, the economic downturn in the global economy has caused cut-throat pricing strategies of the chains. The retailer competitors offer frequent purchase points, membership clubs and other unique services to attract more customers and make the existing customers more loyal.

Future of Retail Industry
As the customers become all the more concerned with the environmental safety, many organizations in the world change their long-term strategies to become green. This trend has also become evident in the strategies of retailers and a new term, Green Retailing, has been coined (Accenture, 2008). Tesco will be transforming its business to suit the needs of the future regulatory requirements by reducing its carbon footprints in large amounts (Accenture, 2008).  This will make Tesco the leader in the low-carbon economy and thus, the chain will be able to attract more customers. Replacing the current transportation system with emission free delivery vans has been the aim for many retail chains (Accenture, 2008). This will save tons of carbon emissions a year, enhancing the image of the retail store chain among the consumers.

The retail stores offering grocery will be tilting more towards organic and green farming (Accenture, 2008). Coop, which is one of the largest grocery retailers, has shown interest for organic farming in future and will buy out more than 6,300 organic farms to grow its own grocery (Accenture, 2008). Creation of ethical trading standards with suppliers, sale of more low energy appliances and premium payments for environmentally friendly products are the most anticipated trends for the future of retail industry (Accenture, 2008).

After you graduate, how are you going to use the learning gained during your time in college

Franklin Roosevelt once said, A man who has never gone to school may steal from a freight car, but if he has a university education he may steal the whole railroad. If one ought to discover a gem of an advice from the late American presidents remark, it would be the immense potential of one person when heshe had gone to school. I doubt not of the huge difference of an educated man and an illiterate

There are many ways of which the learning we had experienced on college could be utilized even after graduation. You could use it to finally fulfill your dream of being a medical doctor, to build a charitable foundation for abused children, to pass a bill in the Senate to build a drainage system on your local town, to accumulate power, to create an empire of colossal proportions. With the learning we had in college, we could be the persons we want to be and build the future as we would like it to be.

As for myself, I would use the valuable experiences I had on college to get myself a job. It would be the first stepping stone on my way to success. College had taught me to persevere I would do the same for my job. I would prove myself as an invaluable asset to my boss and to the whole of the company. The next step would be to climb the ladder of success. The hard work I had made on college I would make useful on real life determination, confidence and endurance. After I had been promoted to the top tier of the company, I would share my experiences to others who are not as fortunate as I am and help them fulfill their dreams. As one popular dogma would say, Success is nothing if there is no one to share it with.

This only shows that the lessons we had on college is not ensnared on the four walls of the classroom it goes beyond it and beyond time as well. Success to be to those who are learned

Environmental sustainability is a widely recognized concept with current environmental changes caused by global warming. Our generation is aware of the destruction people and corporations causing which is depleting natural resources such as ozone hole, rainforest destruction, and air and water pollution.  Honestly, sustainability is compared to environment sustainability. It considers each generation to live high quality life with peaceful positive mind. Due to the high standard of living caused by improvement in technology and science, our children will face modernized social issues such as inequality of wealth, poverty, and discrimination.

These social issues cannot be solved by one leader. Therefore, our generation should care more about these issues in order to leave a good example for our next generations. The United States is worlds leading country, thus small changes such as educating socially responsible investment could impact the whole wide world. The dilemma that modern society carries could be solved by creating more ethical investors. By avoiding businesses such as alcohol, gambling, tobacco, and weapons of mass destruction our society could be peaceful as inequity of wealth diminishes. Additionally, lots of fair trade made by ethical behavior would cause decrease in both poverty and inequity of wealth. As a consequence educating ethical behavior would cause discrimination since equal human right is a basic topic in ethics. It would be applied in reality that all human races are equal no matter what color and gender. 

Unfortunately, the social problems of poverty, inequity, and discrimination were there from the modern history. Between 1929 and 1939 a period know as the Great Depression unemployment in the United States hovered between 25 and 30 (Illinois). A solution to the problem is to continuously educate our children in topics of ethical investment there would be huge change made toward our world. This could result in maximizing both profit and social good would result with this educating process. Since humans are running the Earth right now, social sustainability stands first than environment sustainability. Therefore, lets work together as one to eliminate poverty, inequity, and discrimination.

How my Stanford Education will help me in Achieving my Career Aspirations

Education is an essential pursuit needed to enter the realm of the working class and be a great addition in the community. College education prepares every person to the jobs and careers that they will take on after graduation. My main goal after graduating in my tertiary education is to work for a subsidiary of the Walt Disney Company, a big company venturing in theme parks, film production and merchandise goods.

I think that it is a dynamic company that can make full use of my abilities and talents. Modesty aside, I possess a unique combination of knowledge that may be essential in a big company like Walt Disney. It will be a great opportunity to show my abilities, especially in cross-cultural management, which proved to be crucial and vital in a company like Walt Disney. I already prepared some of my suggestions to the company that may be useful in improving the company and increase its profits. I would like to render them my suggestions for the improvement of the company, especially in their theme parks and how it can be transformed from a simple kiddie carnival into an adult-oriented venue. I will do my best in expanding the business and to make it a place not only for kids but also a place where parents and grandparents can enjoy as well.
   
My long term goal in my career is to become the CEO of the Walt Disney Company. As the CEO of the company, I will revolutionize some of the old policies that may no longer be applicable in the present times and to cope with the competition. My primary goal as the CEO of Walt Disney Company is to bring development and improvement to the company. Walt Disney Company is a company that is in need of new policies and regulations that will improve the whole organization. If I would become the CEO of the Walt Disney Company, I will also include changes in other aspects of the organization like in the film making department wherein I will incur variety in the film department. If I will become the CEO of the Walt Disney Company, I will also incur in the company our social responsibility to help other people here and abroad.
   
My education in Stanford University will play a big role in pursuing my dreams and achieving them. Through my education, I have acquired vital knowledge in international relations and politics focusing on the understanding of international processes that govern the political processes in the world combined with fundamental knowledge of economics. Moreover, I have an experience in cross-cultural management and I have an experience in building teams consisting of people from different ethnicity and cultural background during my work and studies at Stanford University as well as during the summer program at the State University of New York.
   
Stanford University is a unique community that is composed of students from various countries seeking their valuable education. As such, I am exposed to different cultures through my interaction with students which can widen my knowledge and understanding of other cultures and will equip me with the ability communicating and interacting with them. I am also fluent in other language like French and currently studying Mandarin and Japanese. I guess that education at Stanford will be a great step towards the achievement of my goals as I will learn more on how to manage people and how to bring all my ideas to life.
   
With the knowledge and understanding that I will learn and acquire during my tertiary education, I will be able to achieve my goals and dreams in my desired career path. This university provides quality education to their students in order to become competitive in the global arena. In addition, Stanford University is a school that not only bequeath the students with appropriate and adequate knowledge, but also hone their personality and traits that may be useful in their careers. Indeed, the Stanford community is also a dynamic and intelligent community that is rich in public discourse of essential topics that may add to the inherent knowledge of students or members of the community. Stanford University is a good place in training for my future career for it provides all kinds of training that I need in order to be successful in my desired career.

BUSINESS STRATEGY

Business strategy is the direction and scope of a business organization over a long period of time. Business strategy focuses mainly on the direction of the organization, market scope, competitive advantage, resources, environment and the stakeholders (De Kluyveer, 2008). It is about where the business wants to get in the long term detection, which markets should the business organization compete in and what kind of activities involved in such markets scope, how can the business compete better than the competition in those markets, external environmental factors affecting the business environment, the values and the expectations for those with power within and without the organization stakeholders. The strategies are decisions that are made in order to achieve advantage for the organization through configuration of the resources of the organization within a challenging economic environment (Gerry,  Whittington, 2005). This is meant to meet the needs of the market and to fulfill the stakeholders expectations. The decisions made by an organization can only be termed as strategic if they involve consciously doing something differently from the competitors and if the difference results in a sustainable economic advantage (Hughes, 2005).

The strategic decisions also involve the activities which will result in the increase in productivity of the organization by making the existing methods more efficient. This will enable the organization to develop a sustainable superior performance for the stakeholders (De Kluyveer, 2008). The business strategies of a particular organization should be hard to imitate and unique. Therefore, the operational efficiency of any organization is not strategic since they can be copied by other business organizations. The one factor that renders the business strategies hard to imitate is the fact that they will always result in a complex interaction between diverse activities, which are not reducible to the sum of the individual activities. Hence, it is this synergy between the activities that produces value of the organization but not the activities themselves (De Kluyveer, 2008).
   
Business strategy is therefore a statement of some selected business plans defining the organizations vision, the strategy and tactics that will enable the organization to meet the objectives, the resources needed, how they are going to be acquired and how they are going to be used effectively as well as efficiency for the betterment of the organization. Economists have argued that business strategy is the foundation of successful business. The business strategy must steer the course between the internal pressures of the business continuity and the demands and challenges of a rapidly changing world of business (Black, 2007).

Theories of business strategies and their differences   
There are four theories that have been put forward by Whittington in order to explain the basic assumptions about some key relationships in business realms with regards to strategies of business. These theories seek to enlighten the business organizations on what to look for, steps to be taken and what to expect as the results of the actions and decisions made within the organization for the organization (Whittington, 2001). However, these theories are neither explicit nor formal but actual assumptions that have been studied for a period of time and have been found to be very relevant in every business organization. All these theories tend to have private assumptions about how business decisions work and how to get these things done in a relevant and systematic manner. It is therefore imperative that every business organization adopts the strategies in order to enable the business unit to survive and to maximize profits. There are four theories of strategy that have been adopted widely, these theories are the classical approach theory, evolutionary approach theory, processual and systematic approach on strategy. There are differences in all these theories. On the other hand, there are also similarities in some aspects.

The classical approach on strategy  
This approach focuses more on the rational approach aspect (Cuizon, 2007). It involves planning as a significant part. This approach was prominent during the 1960s in the United States. In this approach, there is a top-down, rational and logical approach to the formulation of strategies (Whittington, 2001). With regards to this approach, implementation was the responsibility of the operational managers. According to Whittington, the highest goal of the business organization with regard to this approach is the rational planning as a means to attain the business profitability (Gerry,  Whittington, 2005). Therefore, the strategic aim of the organization is to earn a return on capital. However, if in any case the return in capital is not satisfactory, the deficiency should be corrected or the entire activity of this strategy that was used abandoned for a more functional decision (Cuizon, 2007). This approach therefore requires that managers be ready and more flexible in adopting some profit maximizing strategies through rational long-term planning. This theory further assumes that the managers have near or total control over how to allocate both the internal and external resources of the business organization in order to meet the set objectives of the business organization.

Therefore, the managers can manipulate the internal organization by ensuring that the operational managers have the capacity to implement the functional decisions of the organization (Cuizon, 2007). As mentioned above, the strategic behavior is guided by the rationality, opportunism and self interest. This approach basically focuses on the rational profitability and relevance of the business organization. In this approach, the responsibility of control and consciousness rests upon the control of the managers. In most organizations in the world, this approach is explicitly applicable as the managers, especially the top managerial staff, have been allowed to make decisions that will influence the profitability of the entire organization. The organizations have confidence in the managerial staff and have allowed them to make major decisions that will influence the profitability of the organization with regards to planning and implementation of policies of the company (Whittington, 2001).

The evolutionary theory  
The evolutionary approach focuses mainly on the market.  It was developed during the market led 1980s which were all about survival in the market scenario (Whittington, 2001). It allowed the environment to determine the ultimate profitability and not the managers as in the case of classical approach. This approach assumes that market will determine the profit maximization of the entire business organization. On the other hand, it assumes that whatever methods the managers adopt, the best performance will survive. In this approach, unlike the classical approach, rational method is not the basis due to the fact that its evolution is natures cost benefit analysis (Cuizon, 2007). According to this approach, competition is not overcome by some detached calculations like the ones for the classical perspective but rather by constant struggle for survival in the business realms. The evolutionary theory focuses more on the biological principle of natural selection as its core theory (Gerry,  Whittington, 2005).

Therefore, most apt strategies often lead to the best performance while allowing them to survive and progress further in the process of strategic planning and thinking. This theory adjusts the business by letting the market to do the thinking instead of the managers (Whittington, 2001). Therefore, the markets will choose the prevailing strategies within a particular environment. Thus, the survival in the market will appear and favor those business organizations that have adopted themselves in the environment.

This approach assumes that market competition is the most effective way of removing inefficiency in the organization. Unlike the classical approach, evolutionary approach to business strategy does not have confidence in the top management (Cuizon, 2007).

The business organizations maximize their chance of survival in the short term period by ensuring that they achieve a perfect fit against their current environment. Therefore, this approach differs greatly from the classical approach in the sense that the classical approach allows the managers to make decisions and enable the profitability of the organization while the evolutionary approach allows the market to make the decisions and survive in the market environment. On the other hand, while the classical approach favors the long term objectives of the business organizations, the evolutionary approach focuses on the short term period which is dictated by the market environment and survival (Whittington, 2001). Moreover, this approach lacks confidence in the top management.  With this approach, the market has the core responsibility of determining the direction of the organization, while in the classical approach the market environment decides the direction of the organization. Competitive market advantage is more important in this approach than in classical one.

While the evolutionary approach does not involve much planning, the classical theory involves planning by the top management in order to attain the set objectives. Evolutionary approach is based on the market decision and the decisions might be made according to the trend of the market. Though this approach has been used by a number of organizations, it has not succeeded well as compared to the classical approach. Moreover, this theory does not require rational aspects of thinking and decision making unlike the classical approach where the rational thinking and decision making are the core aspects of the theory (Whittington, 2002). 

The evolutionary approach on strategy does not rely on the top managements skills to plan and act rationally but rather depends on the market scenario to enable the organization achieve its objective. Moreover, the two approaches differ from each other greatly in the fact that classical approach is more costly because it involves planning, implementation and evaluation of the strategies and decisions used, while the evolutionary aspect leaves the entire decision making and thinking to the market (Gerry,  Whittington, 2005).

Though the approaches to business strategy are four, they all differ along two dimensions. The difference arises because of the outcomes of the strategy used and the process by which it is made. The evolutionary approach also sides with processual approach in depicting strategy as emerging from the processes that are governed by chance, confusion and conservatism (Ketchen, 2008). This differs greatly from the classical approach with its assumptions that strategy can be deliberate. The evolution theory is evidently used in manufacturing industries where the market dictates the optimum position of the organization while the classical approach is evident in other business institutions and service providing business organizations where strategies are made by the managers in order to capture a diverse range customer base.

Similarities between the classical approach and evolutionary theory
There are limited similarities between the two theories however, the similarities seek to explain the ultimate objective of the two approaches which is to maximize the profits. Classical and evolutionary approaches both see profit maximization as a natural outcome of the strategy making. The systematic and processual approaches are more pluralistic and envisioning other possible outcomes as well as profit (Gerry,  Whittington, 2005). Moreover, both evolutionary and classical approaches believe that those businesses that are powerless to change themselves quickly in order to ward off extinction will not survive the competitive process. Therefore, both classical approach and evolutionary one are inclined towards market advantage in order to maximize profits and to survive the economic challenges (Gerry,  Whittington, 2005). Moreover, both theories to strategy depend largely on the social context and therefore both of them should be taken with sociological sensitivity. It is also imperative to note that even though all the four approaches of strategy are different, there are similarities that are evident in all. This is because all the four strategies are geared towards fulfilling the stake holders expectations.

Evolutionists and classicists, on the other hand, insist that the judgment of the market place vindicates the basic efficiency of diversification. With regards to movements of foreign markets and direct investments, both classical and evolutionary approaches countermove as an elaborate game that is designed to protect the business organizations power (Black, 2007). Both classical and evolutionary approaches to strategy are inclined to the long-term aspect of the product life cycle. The organizations life and success is based on how well these strategies have been structured (Whittington, 2002). Therefore, it is imperative for every organization to structure their strategies in an explicit manner for the purpose of meeting the organizations objectives and fulfilling the stake holders expectations.

Classical and evolutionary approaches to strategy are similar in the fact that both are inclined towards attaining a competitive advantage as a means of deliberately choosing a different set of activities in order to deliver a unique mix of value in the business organization. Both strategic approaches are inclined to having as strategic continuity which does not imply a static view of competition (Whittington, 2002). Therefore, all organizations must continually improve their operation effectiveness in order to shift the productivity frontier.
   
Business strategies are choosing to perform activities that are far much different than the ones performed by other rivals. All the four approaches to business strategy are diversely different. However, there are similarities that are evident in both the process and the outcome of the strategy used. Every business organization should have a clear strategic positioning that it should follow until it reaches such targets as profit margins, customer satisfaction and competitive market advantage (Cuizon, 2007). The four approaches to business strategy enable the organization to achieve these objectives. It is also imperative for every business organization to perform these strategies in a unique manner that will be difficult for other rivals to imitate or copy. Therefore, operational efficiency is not strategic though they are activities that improve the productivity of the business organization by making the existing methods more efficient, they can be easily copied by other business organization (Ketchen, 2008). The one factor that makes the business strategies hard to imitate is as a result of the complex interaction between different activities (Hughes, 2005). Therefore, any business organization that concentrates only on the operational efficiency will end up losing their competitive advantage and, on the other hand, might not meet the objectives of the organization.

Reasons for Carrefour moving into Asian Market.

In 1989 Carrefour first made the decision to move into the Asian markets by moving into Taiwan, the reasons for moving into the Asian markets can be called unique to say the least, the first and the foremost reason for moving into the Asian markets was that even though they had low GDPs they had made the transition to mass consumption and they were more mature markets now. The way that Carrefour went about it was even more unique, since they did not have much knowledge about the Asian markets they built partnerships by collaborating with local firms and manufacturers.

Another important factor over here that was taken into consideration by Carrefour was the element of timing, timing was very crucial because to have any substantial and long lasting impact Carrefour had to be the first one to move into the Asian markets, at a time when most firms were delaying there entry because of the Asian crisis Carrefour was able to move into these markets because of their low prices and this actually worked in favor of Carrefour because people were able to buy products at extremely low prices and that was critical at the time of crisis. Another reason for entering into the Asian markets was that it was culturally a different phenomenon, people were moving towards more impulse buying rather than just necessity shopping, culturally it was a different phenomenon, it was a totally different shopping experience for people, a trip to Carrefour became a family outing in a lot of ways.

Carrefour is a company that has not totally relied on research all the time it has been a combination of instinct and market research for example when the company was conducting a market research on whether it should enter Romania or not they had very negative results and the decision that would have been taken according to those results was not to enter Romania but carrefour did not back out due to the results of the research because they had a gut feeling or an instinct that it would not be a bad decision at all and at the end of the day that is exactly what it turned out to be , a very good decision. So another reason for entering Asia could be that it had an instinctive feeling that they would do well in a place that has matured to a certain extent and would be able to accommodate carrefour. Another reason that carrefour decided to enter this market was that they had seen that the pattern for shopping and nature of goods had been changing, the nature of goods were becoming more and more westernized and that is why carrefour decided to enter the market with its global more westernized brands all available to the customers just under one roof.

Ansoff Matrix
The ansoff matrix is a tool that is basically used by companies to exactly pin point what they want to do and what are the strategies that they would require to pull of their objective. For example if a company is not introducing anything new into a market then it needs to go for market penetration strategy which means that they would have to advertise very aggressively, they would have to price their product so that they are able to effectively penetrate the market and may also have to come with bundle offers such as buy one and get one free so that more and more customers try their products.

The same is the case when a company wants to introduce new products into an existing market, it would have to engage in product line extension both vertically as well as horizontally and it might also have to bring in new products altogether into the market.

The third scenario is the new products and new market segment where there is a need for the business to develop associations with the local businesses and attack new market segments which previously had not been targeted, the move might also prompt take over of smaller business competitors in the new market.
The fourth strategy is basically the one that Carrefour engaged in. The market development phenomenon, according to the Ansoff matrix because it introduced its existing products into new markets, this strategy consists of expanding your market geographically, which Carrefour did very effectively by moving into the

Asian markets in a number of countries. It targeted a new consumer segment, which was totally unaware of the hypermarkets phenomenon, and since it had the first mover advantage in most of these markets it emerged as the clear winner in most of the markets and today these markets account for 13 of all the sales of Carrefour globally. Another element of entering into the new markets is that you need to build global and local alliances because the company might not be very aware of the markets and this was also an element of Carrefour expanding into the Asian markets very effectively. The strength of carrefour remains in the size of its business, it stocks very large number of units for each and every brand and hence has the power to negotiate because of the economy of scale, but good companies drive the advantage home rather than just using it, same was the case with carrefour. What carrefour did was to implement a GNX system in 200 where by the store and the suppliers could interact in a more efficient and effective manner.

Another important element when entering into new markets, human resources is an element that has to be kept in mind because if there is a scarcity of high quality labor or the number of people available to work for you then it might be a cause of concern for the company because people make the company, it is interesting to note down carrefours strategy over here. When opening up a new market in a country what carrefour does is to basically employee experienced expatriates as the head of the departments where as the local human resources is hired and sent off to a country in the region where carrefour is already successfully operating so that they can gain know how of the business and then they are called back to the country of origin, what this does is that it integrates the experience of running the store and knowing the internal policies and culture with the local knowledge and culture, which is a very effective collaboration.

These were the tools and strategies that were used by carrefour in a very effective and efficient way and they had not missed out on anything in fact they have taken this strategy to the next level by also highlighting the effect of training local human resources when entering a new market and have provided a framework to do so as well, existing productsNew markets lead to market development in the ansoff matrix and that has been achieved by carrefour in Asia and they have kept on growing where ever they have seen an opportunity to grow and where ever they feel the market is mature enough to accommodate them.

Competitive Advantages
Carrefours competitive advantages include
One stop shopping solution for the whole family, this means that consumers would find each and everything under one roof only and they would not have to go anywhere for their shopping needs. This concept was very important in the Asian markets because it was different from the traditional methods of shopping.
Low prices have always been competitive advantage in the case of Carrefour because of their stocking model, Carrefour stocks almost 50,000 stocks of each and every product and hence is able negotiate very low prices that are transferred on to the consumers by keeping very low margins at times as low as 2.5 net margin. Carrefour promotes new products daily, pricing them at really low prices and challenging their that they can refund their products if they can find them anywhere else at lower prices.

Retailers in these markets were traditionally over the counter oriented and Carrefour introduced self-service which gave the customers the option to look at the products more closely and gauge them accordingly, another important element was that Carrefour introduced more variety under one roof which was very crucial to Carrefours success.

Quality products have been a strong forte of Carrefour, it stocks only quality products and at that too high quality products so that customers can have the highest shopping experience possible. Carrefour had an edge over the competitors because of its global alliances with product manufacturers, which meant that it not only provided highest quality products but also that too at the lowest prices possible and this means that there is more traffic for carrefour because it not only provides the highest quality of fresh goods but it also has the widest variety of the goods.

Freshness of the products is also a very important factor because Carrefour deals with perishable items and it had to ensure that their customers got the goods that were fresh in nature.
Free parking and a lot of parking space ensured that the customers had a good shopping experience because they did not have to go through the hassle of finding parking places in highly congested markets, to add to this experience Carrefour also added play places so that women coming in with children could let their children play as they shop to get the highest degree of satisfaction.

Technology is another factor of carrefour competitive advantage, as mentioned before it introduced the GNX system of procuring supplies from the suppliers in a more efficient and effective manner and this lead to lowering it costs considerably. All the other major super markets and hyper stores were just followers in this program, this shows that carrefour is pretty proactive in establishing what needs to be done to secure the future of the company and how to bring the costs down to the bare minimum.

Neuro-Linguistic Programming

Neuro-Linguistic Programming (NLP) is a three component phenomenon that is incorporated in the development of the human experience. The three components are neurology, language, and programming. The neurology regulates the functioning of our bodies the language governs our interaction with other people, whereas the programming determines, which models of the world we are able to create. Thus, Neuro-Linguistic Programming describes the elementary dynamics involving the mind and language, and how their relationship impacts on our bodies and behaviour. NLP is, therefore, a multi-dimensional process, which involves the development of behavioural proficiency and flexibility. It also involves thinking strategically and having a clear understanding of the rational and cognitive processes responsible for a particular behaviour. NLP, therefore, is a set of tools and techniques responsible for the improvement of the awareness of an individuals beliefs, behaviour, and how she can relate at higher levels.
   
Historical Background of NLP
Neuro-Linguistic Programming is a concept that was developed in the 1970s by an information scientist and a linguist known as John Grinder and Richard Bandler respectively. These scholars observed that individuals with similar education, training, experience, and background recorded different results ranging from excellent to poor ones. These scholars wanted to understand the secret of effective performance. Their study zeroed in on the communication aspect and they were interested in how the successful members of the society communicated. They eventually came up with thinking patterns, which they associated with the success of the individuals. They concluded that the brains could learn the healthy patterns and behaviours and, thus, leading to positive physical and emotional impacts (Dilts, 1999).
   
NLP and Business
NLP is regarded as a powerful concept that is thought to possess positive and useful aspects of psychology. This puts it in an important position in influencing personal and interpersonal interactions therefore NLP has a lot of benefits in self development, businesses and organizations. For example, NLP enhances better communication in customer services and selling. It improves understanding in communication, especially, when it is face-to-face. This becomes important, especially during interviews and appraisals. NLP has also proved to be handy for stress management, developing of self confidence and assertiveness. NLP also encourages empathy, which enables one to apply ethics while observing moral standards. These are very salient features of good management in the current world for the success of businesses (Smith, 2008).

NPL more often than not, works on many presuppositions that are in support of the view that change is always in the offing. This is equally important to todays business managers in the ever-changing business environment, where flexibility is very crucial. One of the most important factors regarding NLP concerns what can work and what cannot. The two are distinct, and if what youre engaged in, does not work, then try a different thing regardless of whether your initial efforts should have worked. Flexibility is the key element here and the emphasis is on the fact that to excel, one has to respond to the changing environment accordingly. NLP is much interested in fulfilling peoples potential by giving them what they want in life (Webmaster, 2009).

NLP is a model that can be used to enhance effective communication, personal change and development. Whatever goes on in an individuals mind impacts on ones language and beliefs. This in turn affects behaviour. Thus, it forms a synergetic process in the individual with the whole being greater than the individual parts of the process. NLP looks at how we think and feel and focus on excellence in our day to day life. Therefore, NLP gives one the consciousness in choosing on what to do and how to do it. The self awareness is crucial in self management and influence on others. This begins with the fundamental realization that we are not similar, and thus, we differently react to situations and we use different language at different times. To be able to build interpersonal relationships, we need to have appropriate strategies to understand the people around us (Naicke, 2009).

The ability to manage self affects the extent to which we are destined to achieve our goals. To achieve business success, one has to be a good manager. Among other skills, NLP provides for being able to read the unconscious mind. This is important in managing personal development projected towards achieving full potential of the individual. According to Kotelnikov,
NLP is a process of discovery and as such it is about continually uncovering new ways of thinking and working. It is a process of continuous learning and growth, and key to profound personal development By using NLP you can give yourself more conscious choice over what you do and the way you act (paragraph 5).
   
NLP has been used in almost all aspects of human life, for example, in boardrooms across the world, and the results have been amazing. Those individuals, who have a good mastery of the NLP concept, and are applying it appropriately, behave in a unique manner and are rewarded with amazing results. Successful business people have admirable characters that make them special. They are always open and they dont panic when under pressure. This is what NLP refers to as alignment which means achieving congruency and having complete self belief. NLP is all about being aware of all your senses both physical and emotional (Lusardi, 2002).

NLP has yielded numerous techniques that can be used at a personal or professional level. Businesses around the world have employed these techniques in different areas in order to achieve success. As a business strategy, NLP will enable you to reach and influence others as well as be aware of yourself in order to be able to improve your weaknesses. It also helps managers in the analysis of success secrets of the best employees and be able to teach others these secrets which can have a tremendous positive impact to the success of the business. NLP teaches on customer relation skills which are very crucial in the competitive business world (Kotelniko, 2009).
   
The argument that anything that comes to your mind is achievable draws much from NLP. NLP helps individuals in discovering the utilization of the power of mind to achieve full potential. NLP is not only about positive thinking and attitudinal change. It also encompasses skills to reach high levels of success and fulfillment in all aspects of life including professional and personal relationships. In the business world, NLP may influence, motivate, or break the belief that may be holding individuals from achieving the elusive success they are yearning for. Most of the business leaders around the world are now involved in learning new skills in NLP which gives them an edge in the competitive world to achieve success (MacKay, 2009).
   
Managing in modern days requires flexibility, due to the rapid changes that engulfed the business world. Most managers today have shifted from the classic-based managerial practices to managing the new challenges of complex relationships in the organization. This was due to the realization that maintaining harmonious relationships at the workplace proved to be an important aspect in the companies to realize sustainability in growth. Managers have to master the art of working in teams as well as being able to influence others, motivating them to achieve corporate goals. This can be practiced by some individuals through intuition but can also be learnt and mastered through NLP techniques (Kotelniko, 2009).
   
NLP has been identified as a new revolution in the world of businesses, since it guarantees effectiveness at the workplace. It has provided useful information in building relationships and cooperation in achieving both the personal and corporate goals.  NLP strategies can be applied at the workplace to bring about a harmonious relationship and better customer relations. These are the most essential skills a business requires to survive the cut-throat competition that has been witnessed in the modern world. NLP, therefore, presents a unique phenomenon designed to address the new challenges facing the world. Most business executives have enrolled in schools offering NLP skills to be able to improve and maintain profitability in their businesses.

I choose Question  3 because the financial manager or consultant places primary emphasis on decision making. It uses the financial statements pre pared by the accountants to make decisions about the firms financial condition. Ratios are guidelines to evaluate a companys financial position and the efficiency and effectiveness of its operations. It also enables firms to make comparisons with its competitors or the industry as a whole, or even with itself, i.e. with its own performances in the past. Ratios also act as an alarm or a siren indicating areas of concern for firms, i.e. areas requiring further investigation. Ratios are not only used by the managers that are internal members of the organisation, but creditors, investors, auditors, are common examples of outsiders or people external to the organisation who might be interested in closely examining a firms performance by monitoring its ratios.

INTRODUCTION
Whole Foods Market, Inc is a big name in the natural and organic food industry. Company currently operates in 11 different geographical locations along with 275 stores. Whole Foods Market offers different product lines to its valuable customers like meat, poultry, cereal, seafood, cheese, beers wines, household products, etc. In addition, company also provides catering services to the end users. In the current year, company expands its business operation in different segments and looking to explore more target market (Annual Report, 2009-2008). The financial performance from (2009-08) of Whole Foods Market Inc is stated below

WHOLE FOODS MARKET INC
FINANCIAL PERFORMANCE FROM (2009-2008)
RATIO20092008Liquidity RatiosCurrent Ratio1.540.93Quick Ratio1.090.34Working Capital371,356(43,571)Profitability RatiosReturn on Asset0.040.03Return on Equity0.090.08Gross Profit Margin3434Profit Margin21Asset Management RatiosAsset Turn Over2.122.35Inventory Turn over22 Days21DaysReceivable Turn over9 Days12DaysFixed Asset Turn over4.234.19Debt Management RatiosDebt to Equity1.071.24Debt to Asset0.460.55Interest Coverage Ratio7.816.67
LIQUIDITY RATIOS

CURRENT RATIO
Whole Foods Market, Inc current ratio is slightly lower in the year 2008 than the year 2009 and indicates a lower margin of safety with respect to meeting current obligations .Whole Foods Market, Inc current ratio will allow them to take more debt as compared to previous years. Although, Whole Foods Market, Inc has made short-term investments but still there is no significant impact on the current ratio. The overall condition of current ratio reveals the fact that the current ratio which is not pretty stable and healthy as compared to the previous years (Brigham, 2001).

QUICK RATIO
Whole Foods Market, Inc quick ratio is higher in the year 2009 as compare with the year 2008. The reason behind this is the proper working capital management which makes the quick ratio more attractive in the last two years. The overall signal of Whole Foods Market, Inc liquidity is fair and it sends a positive signal towards the debt holders and also on the debt market. Moreover, the slight liquidity crunch problem makes the performance of Whole Foods Market, Inc slightly vulnerable.

WORKING CAPITAL RATIO
The condition of Whole Foods Market, Inc working capital is awesome in the year 2009. The reason behind this the less dependency on the debt which makes the companys financial condition more stable. The pivotal reason behind the positive impact of the working capital is the proper cash, inventory and receivable management (Brigham, 2001). In the last few years, the company cant generate more current assets in comparison with its business operations the primary evidence of this improper working capital management is the year 2008.

PROFITABILITY RATIOS
RETURN ON ASSET (ROA)
The modest decrease in the ROA suggest that the firm uses its asset at its command and management uses its assets and resources in an appropriate manner in order to generate more profits in comparison with their asset acquisition. This is also gives the signal that proper asset management strategy is adopted in order to generate the maximum out put.

RETURN ON EQUITY (ROE)
The ROE of 9 in the year 2009 indicates that the Whole Foods Market, Inc is not dependent on equity financing, although it is better as compared to the year 2008. It also gives the impression that efficiency under which management has utilized the assets under its control, regardless of whether their assets were financed with debt or equity capital. Because of less dependency on equity financing ROE make a reflection on the stock holder equity and this will highlighted the image of the company and also uplift their stock prices (Myers, Brealey and Marcus, 2001).

GROSS PROFIT MARGIN
Efficient management strategy reflects in the gross profit sales with 34 both in the year 2009 and 2008 (Annual Report, 2009-2008). Whole Foods Market, Inc has focuses on reduces the cost of goods sold which gives a strong reflection on the gross profit. Gross profit margin is almost stagnant in both the years because of economic recession in the economy, High ratio of COGS in the shape of FOH, Purchases etc and also due to internal restructuring. On the whole the gross profit margin is fair enough and one should hope that the percentage of gross profit margin will decline in years to come.

PROFIT MARGIN
This ratio is also called the net profit margin. Net profit margin ratio shows the level of profits that the company is able to earn from every amount of sales. Net profit is the amount of profit left after all the expenses including taxes and interest have been deducted (Myers, Brealey and Marcus, 2001). Net percentage profit ratio acts in the same way as gross profit ratio i.e. it shows the efficiency in production by the company, whether the cost structure and price policy in place is able to generate enough profits (Brigham, 2001). Increment in the Whole Foods Market, Inc profit margin ratio year by year from (2009 to 2008) is a healthy sign from the companys prospective, as it makes a reflection on the stock price, its dividend policy etc. Net Income of Whole Foods Market, Inc shows that implementation of effective financial policies and a strong mechanism of internal control are factors that lead the net profit at its peak in the year 2009 as compare with the previous years.   
ASSET MANAGEMENT RATIOS

TOTAL ASSET TURNOVER
Managing asset in an efficient manner is an art and the management of Whole Foods Market, Inc is an architect. They have utilized their asset in to its full capacity and managing assets in a fashion that every component of total asset utilizes its full capacity (Myers, Brealey and Marcus, 2001). Whole Foods Market, Inc has a slight edge in the year 2009 with respect to previous year practices and it is the prime evident that the component of asset has a made significant impact on the sales due to this the Whole Foods Market, Inc is doing a fine job and this practice also make an impression in the future.

INVENTORY TURNOVER
Whole Foods Market, Inc inventory management strategies make a strong reflection on this ratio and it is evident that in the year 2009 companys operating cycle is slightly high in comparison with the year 2008, which is very good going for the companys perspective .This ratio shows that Whole Foods Market, Inc is better at managing its inventory (Myers, Brealey and Marcus, 2001).

RECEIVABLE TURNOVER
Whole Foods Market, Inc management is working on managing working capital effectively and employed an effective credit policy for its customers .Whole Foods Market, Inc management has working on aggressive credit policies to collect their receivables and rotating its operating cycle effectively and smoothly. On the other hand, the year 2008 is very sluggish primarily due to recession in the economy.

FIXED ASSET TURNOVER
The Whole Foods Market, Inc fixed asset turn over is around 4.23 in the year 2009. The fixed asset turnover shows the consistency is reviewed from (2009-2008). This turn over shows that the company is working on sound practice with respect to managing the fixed assets. It gives a positive signal to investors, as it indicates that Whole Foods Market, Inc does utilize its assets efficiently, they either remain idle or arent utilized to their maximum capacity, in order to generate more sales (Myers, Brealey and Marcus, 2001). Although Whole Foods Market, Inc has made a large amount of capital expenditure and due to efficient management maintains the fixed asset turn over through out the from 2009-2008.
DEBT MANAGEMENT RATIOS

DEBT TO EQUITY
Dependency on debt financing is not a bad habit but it has consequences if you rely on more. Whole Foods Market, Inc debt to equity ratio is on the lower side in the year 2009 in comparison with the year 2008 due to the factors of business volume, increment in sales, fulfillment to pay the suppliers and acquisitions of fixed asset. Due to the expansion in business, Whole Foods Market, Inc has plenty of financial obligations, most of which has been acquired through debt. In 2008, Whole Foods Market, Inc reliance more on debt financing as compare to the year 2009.

DEBT TO ASSET
Whole Foods Market, Inc DA ratio, is around 46 in the year 2009 .In the year 2008 the debt to total assets is 55  which is not good as far as the performance  is concerned. The year 2008 is worst for Whole Foods Market, Inc, the main reason behind is the improper utilization of debt in order to capitalize assets. Moreover, it also reveals the fact that the management of the company cant generate more assets in response with the debt. A higher DA ratio would place the company under increased amount of risk, especially if the interest rates are rising. Hence, a lower DA ratio would be more desirable (Brigham, 2001).

This ratio suggests the fact that TIE ratio is higher in comparison with the industry because of company entertain its business with high proportion of debt financing. Although the companys management runs business successfully and this is shown in the EBIT which suggest that the Company is keep improving in the EBIT year by year. In comparison with the ability of paying interest expense is fine in comparison with he industry practices. The year 2009 is the good year for the company as far as TIE ratio is concerned. On overall basis the densely populated debt financing and creates a doubt in the debt holders mind that the company is in tentative mode to pay its obligations (Myers, Brealey and Marcus, 2001).

According to my analysis and estimations, I summarize the following points regarding the financial condition of Whole Foods Market, Inc. The points are stated below
Whole Foods Market, Inc should opt for a strong strategy between the accounts payable and accounts receivable because in the end it makes an impression on the operating cycle.
Whole Foods Market, Inc. management also looks after the short term liquidity which is pointed out in the current ratio and makes necessary adjustments to finance the business with short and intermediate financing modes according to the business requirements.

Formulate strategies in order to reduce costs of production which resulted in capturing more market segments at competitive prices.
Sound working capital management policies in the year 2009 and I assume that this policy will continue in the future.

Cash reserve is increased primarily because of expansion in business volume and also the equity financing which really helps the companys perspective to hold the cash at the optimum level.

Whole Foods Market, Inc. portrays a very strong and positive position in the markets place and without doubt this company has an ability to challenge its rivals to have a girds to become the market leader. There are certain areas where Whole Foods Market, Inc should pay attention to like in the area of working capital, net profit margin, reduction in revenue expenditures on consistent basis and assist in increase its investors confidence towards the organization.

Technology Solutions Proposal

ClubIT is a downtown music venue that serves as an enjoyment place for people to visit and relax. ClubIT was started in 2005 by Lisa and Ruben, two business graduates, and has since grown to have a significant presence. The club covers the area of 6000 square feet with a 600 square feet dance floor and the capacity for 220 people. The ClubIT has recently been remodeled and it is expected by the owners that ClubIT will become a top place in the local entertainment industry in the near future.

ClubIT and Its Customers
Nowadays ClubIT has a considerable number of staff, apart from its owners, which includes the assistant manager, a bartender, waiters, stewards, short order cooks as well as the security staff. The customers of ClubIT mostly include people in their twenties, thirties and forties, who come to ClubIT to have a good time after a tiring day of work. Many of the customers are students, who used ClubIT as a place to go to, because ClubIT also offers an energetic atmosphere to people in their professional life, so that they can feel motivated again for the next day. Sold out- event nights during live band plays as well as DJ nights show that the customers are big music fans.

Long Term and Short Term Goals
In order to improve business, a number of short term and long term goals need to be achieved by ClubIT. The short-term goals of ClubIT include the implementation of information management solutions concerning sales, the inventory and employee management. Furthermore, ClubITs owners also want to improve the decision making capabilities as well as to make the customer service more efficient and quick, along with the aim to restrict selling of alcoholic drinks to people under age. The company also needs its online service to be improved, which is currently only restricted to selling of ClubITs merchandise. The capabilities of the websites can be extended so that they can not only be used to sell tickets to the events, but would also make it possible for the customers to book tables and place pre-orders for bookings. The long term goals of ClubIT are the following to become one of the top venues for music, night life and entertainment in its area, to expand the business by means of opening another club at a different place offering the same level of energy and entertainment to people.

Furthermore, ClubIT would also like to expand its relationship with its business partners and suppliers through expanding the range of products it currently offers to its customers, as well as improve the sales.   The role of information systems in achieving this goal will be very important. Information systems will provide ClubIT with a way to align the use information technologies in accordance with their organizational goals. Many of the problems at ClubIT are related to the management, storage and processing of information from various sources in an efficient and quick manner. The use of information systems, such as Inventory Management and Customer Relationship Management software, not only allow the use of computers to automate various processes within ClubIT, thus, making them more efficient and effective while also allowing for information from these processes to be used in analysis and adjustment in the process in accordance with both short term and long term goals (Rainer  Turban, 2008).

Professional Development
In order to ensure that the Information systems are used efficiently, the staff at ClubIT will have to be given training in both theoretical and technical aspects. For this purpose workshops and training classes along with hands-on training with the information systems will be used. The workshop and training classes will be used to increase the awareness of ClubIT staff about the information systems that will be implemented along with the advantages that they would bring in at various organizational levels. It would also serve as a platform to inform the employees of any changes of the rules and regulations that would be made due to the introduction of information systems, as well as any new policies. Hands-on training, on the other hand, will be used to familiarize the staff with the implemented technology, as well as making them proficient in its use. The workshops and training classes will start as soon as the implementation of information systems is authorized, while the hands-on training will start once the implementation of information systems is completed. The training will initially be conducted by either the information system provider or by any other third party trainer. The first batch of trainees will consist of executives along with management level employees as well an experienced person from each of the department at ClubIT. This batch of trainees will later train other employees (Noe, 2004).

Assessment of Needs
Though the owners are very keen on using the information technology to enhance their business, currently, ClubIT uses it its website to promote its menus as well as sell merchandise. All orders and selling of tickets takes place in reality or over the telephone. All the information handling with regards to sales, purchases and ordering is managed by the club owners without much support of IT. Customers of ClubIT also include people, who are tech savvy and own PDAs and Laptops. There are a number of technologies, which can be employed in the number of information system, which can be implemented in ClubIT.  For example, to make orders efficient, a wireless order taking system as well as ordering kiosks will be established inside ClubIT. Furthermore, as a part of Enterprise Resource Planning (ERP) implementation, several sub-systems can be purchased and installed in order to automate various processes inside ClubIT. For example, in order to manage records of sales and purchases as well as ordering in ClubIT, an Inventory Management System will be used. Furthermore, a Customer Relationship Management (CRM) system will also be used to enhance the experience of customers through personalized serving. CRM would not only help hosts in serving the customers according to their needs and requirements, but would also allow a better targeting of offers and future services.

The Internet Service, available inside the club would be an additional service that would help ClubIT in attracting new customers. Furthermore, the Human Resource system would also allow for efficient management of employees attendance as well their pays. In addition, the ClubIT will also use a full fledge B2B and B2C e-Commerce website to expand its services online. This website will be used to sell ClubIT merchandise, Pre-Ordering, Pre-Booking of Table as well as Discounted Sales of Tickets of the events happening in ClubIT. Furthermore, in order to give Lisa and Rubens an executive level the view of the current and past activities as well as to assist them in future predictions of their business, Executive Dashboards will be used.  The implementation of information systems will start by the implementation of Inventory Management System, followed by a Customer Relationship Management system. Once completed, the ClubIT website will be revamped and re-launched, integrated into the Inventory Management System, as well as Customer Relationship Management System. The Executive Dashboard will then be looked at. Once these are implemented the Human Resource Management System will then be implementing automating the process of attendance, shifts as well as pays (Obrien, 2008).

The Budget
The annual income of ClubIT is around 28,000. For the purpose of implementation of information system at ClubIT, a medium size budget is available ranging between 10,000 and 15,000. Best use of the budget can be made by using it to automate the business critical systems of ClubIT. These systems are the order taking system and the inventory management system, which can greatly improve the business if made automatic. An information system can either be purchased off the shelf, can be leased for a time or built in-house. It is recommended that ClubITs management carries out a cost-benefit analysis on these options and invites information system vendors to conduct a trial of their information system, so that it can be evaluated properly. Furthermore, a significant share of the budget should also be spent on quick training of employees, who should be taught to use these information systems in an effective manner. For this purpose, training contracts can be agreed amount by the information system vendor to train one group of employees, which would then train their respective departments. The hardware bought for the information system will meet the minimum requirement of the information system software, while room for upgrading will be present in the system. Furthermore, the implementation of other information system can be delayed, until the information system handling business critical processes are implemented, debugged and maintained for sufficient time (Rainer  Turban, 2008).

Evaluation
In order to verify, if the information systems are contributing effectively to the goals of the organization, evaluations will need to be carried out. The evaluation of the information system can be carried out by its users, and will be compiled as a review on weekly basis. Short term goals of ClubIT can be divided into departmental objectives and key performance indicator sets, which would be monitored and evaluated by department heads on monthly basis. Long term goals, on the other hand, can be evaluated by Lisa and Rubens on either half yearly or yearly basis, in which the performance of each department and process would be analyzed to ensure the direction of organization in right and how improvements, if any, can be made. In this regard an Executive Dashboard can be used. The executive dashboard allows for the display the current status of key performance indicators, set by executives, as well as their trend. Another important feature is that the user can drill down to the minute details behind the information that is viewed. It also allows executives to set exceptions which can be use to point out area and products in the business which are not doing well (Rainer  Turban, 2008).

Currently ClubIT has only a website, which is hosted a PC Server system. It consists of a number of components including motherboard, Random Access Non Volatile memory for temporary storage of data and a hard drive for storage of data on permanent basis. Software inventory of ClubIT include a licensed version of Microsoft Windows 2000 Server operating system, Microsoft Internet Information Web Server along with a Cable Modem Broadband Internet Connection.

Through the Implementation of the Information System and related technology, ClubIT will not only benefit through enhanced business processing but would also become innovative as not many nightclubs make extensive use of information technology. However, it is important that the cost as well as benefits of these systems should be kept in mind and steps should be taken to ensure that the implemented systems are exploited to their full extent.

Modern Book Distribution, Inc. Case Study Evaluation

MBD needs to realize that in order to survive amid increasing competition where their competitors are implementing cutting edge supply chain strategies the organization will need to change instead of relying on their old model. The new model will need to be a combination of both pull as well as push strategies to counter both bigger retailers as well as online shops as well.  Thus the best fit in such a situation would be to use a push pull strategy. Since MBD is already using forecasting techniques they can use the same to judge the books that will be an easy sell and thus apply a push strategy to this by predicting in advance and building up stock to meet demand. At the same time, there will be orders for books that are relatively unpredictable and in order to remain flexible yet responsive to customer needs, MBD will need to employ pull strategies and go towards the order based distribution which will involve more postponement methods and more time lags, yet will deliver to customers as per their requirements. If this new push pull strategy is used effectively, it can counter the current competition that they are currently feeling.

At the end of the day, for any business, the customer matters, and the bottom lines are adjusted to maximize revenues by keeping the customer satisfaction levels at a premium. These are the central questions that the management needs to ask themselves. How can we maximise output and customer satisfaction and increase our responsiveness at the same time Also, what are the best mix of strategies that will balance the pay offs between efficiency and responsiveness to ensure that a sustainable competitive advantage is built that the customer will learn to trust and thus help in retaining them  One must also look at the effects of demand variability, transportation costs, and inventory costs. Keeping this in mind, there is no one best distribution strategy but rather multiple options that can be utilized to serve the different market segments that  MBD is operating in, and thus a hybrid of push and pull strategies should be used. As part of the pull strategy, the direct shipment strategy may be used where books with high demand variability and low turnover. However, push strategies will include intermediate inventory storage point strategies so that books with low demand variability and high turnover may be stocked at distribution centres to increase responsiveness and reduce lead time.

Through the pull strategy, MDB will be able to maintain lower inventory and this also applies to direct shipment as well. This will lead to lower inventory costs, facility and handling costs and lower lead times due to the direct shipment strategy. Also, since MBD will be keeping a lower inventory of value added products and a higher inventory of generic products, thus order customization will be catered to properly. The advantage of the push strategy will lower lead times, increases responsiveness and lower transportation costs due to economies of scale.

If MBD is to use less warehouses and more centralized operations, transportation costs will decrease, information sharing will be more accurate with an added reduction in the bullwhip effect, leading to more accurate forecasting and better planning. This will in turn lower response times as well. If MBD is to use more warehouses and a more decentralized approach, transportation costs will be higher, information sharing will decrease, there will be the added threat of bullwhip effect at multiple levels and longer time to market for new products under development. Inventory storage and handling costs will also be higher. However, the flip side would be since the warehouses are more distributed, response times and lead times will decrease.

Situations for a distribution strategy
If a firm already has the internal infrastructure to support its operations and it is also its core strategic strength, than the obvious choice is to use an internal logistics expertise. This is because it will not only reduce cost, but also decrease dependency on other parties as well. Since an organization already knows its own strengths and weaknesses, thus it will also increase efficiency of the process and control on the value chain.
Sometimes another companys location in the supply chain is more congruent with logistical demands. It is at such times that an organization will need to overlook its infrastructural sufficiency and look to acquiring a company with this expertise. The best determinant is a combination of the position in the supply chain, resources and expertise.

This will happen if a company does not have the valid resources to implement what it has planned. This is often the case with smaller companies who may be specialists within their own supply chain segment but still due to a paucity of resources are unable to implement a variety of plans. A strategic alliance of this nature can add value, improve market access, strengthen the operations, aid technological muscle, enhance growth and organizational skills and build financial muscle as well.

Third party logistical support is usually used when another party can perform a range of functions better then the company that needs the job to be done. This will improve the focus on core strengths, as well as increase all sorts of flexibility. However, the loss of control is what one must watch out for.

IBMs private exchange vs. consortia of e-markets
The relatively simple answer to this question would be that IBM being one of the worlds leading distributors in this segment is using both pull and push strategies and information sharing paradigms that will help in both cases. Through the private exchange, IBM uses a pull strategy that presumes postponement of value addition information sharing is stronger and more accurate which helps in better forecasting and hedging against demand variability. On the other hand, the consortia of e-markets have been used to upgrade to answer to a new market segment and new information sharing paradigm.

Decisions based on the size of an electronic company
A smaller company should use a hedging strategy. Being in an electronic industry, the average time to market for products is extremely low thus there is a higher risk of demand variability.
To lessen the impact of demand variability. The essential issue with small scale operations is that they have lesser sources and cannot afford customer losses which may come as big hit. They do not have the luxury of being too flexible or speculative.

Yes it would definitely change
A larger firm will have more resources at its disposal which will allow it to be more flexible and speculative as well. Economies of scale will play a very important part in flexibility, where as stronger planning resources and better information sharing will lead to more accurate speculation as well. These will help prevent demand variability.

Dimensional impacts on supply chain design
A supply chain needs to conform to requirements so that it can deliver what it is designed to do, otherwise it would be without a core purpose and useless. A supply chain manager needs to be clear in the purpose as well as objective so that the designated systems such as inventory storage, transportation modes, and lead times are all designed to a specific requirement to deliver maximum value.

Each product varies on a variety of attributes which may include both physical as well as competitive. Physically, if a product is larger and bulky, the lot size, transportation costs, storage space etc will all change with it. Furthermore, it may depend on the competitive industry that it operates within.
Brand and price will play an important part since each will have a different need. When prices drop, the supply chain will need to be flexible enough to support a spike in demand. Also brands come up with promotions that may increase or decrease variability according to a series of media, and the supply chain must support this every step of the way.

Value added services must also be kept in mind while designing the supply chain. This is because value addition may change to nature of the product or the associated process at any step of the chain.
Relationships remain of paramount importance since any supply chain is like a strong bond of interconnected agreements that need to be kept. Also, stronger relationships may help in controlling bullwhip with better information sharing as well as decreasing demand variability or flexibility to deliver from other locations within the supply chain.

The Power of Brand Value

The power of brand value may be said to be associated with both the psychological and experiential aspects and some people are able to discern accurately between the two.  The experiential aspect, also known as the brand experience, is the sum total of the points of contact with the brand.  The brand image is a symbolic model created in the minds of people and makes up the psychological aspect.  The psychological aspect is made up of all the expectations and information related to the product or service in question (Lepla, Parker, 21).  The two, psychological and experiential aspects form the basis of band value which has substantial effects on the consumers and the company selling the products or rendering the service. 
The branding exercise is always done by seeking to align or develop the anticipations behind the experiences of the brand.  This creates an impression that a certain brand that is associated with a product or a service has specific qualities that gives it the uniqueness.  Therefore, brands have been imperative elements in the themes of advertisement (Varley, 20).  The brand demonstrates exactly what the brand owner would have been able to offer in the marketplace.   The creation and the maintenance of a brand is called brand management and integrated marketing consist of the orientation of the entire organization towards the brand.  

The power of the brand value will be reflected by the careful management of the brand which is propped up by superbly devised means of advertising.  This can significantly attract customers to pay dearly for the even cheaper products to make.  The brand value can be modified through the active advertisement and when this happens, value is created.  The concept of creating value involves the careful manipulation of the preconceived image of the products such that the consumer gains a different picture about the product or service as being worth the high cost charged by the advertiser (Goodchild, Callow, 14).  This concept, creating value, does not follow the traditional method of calculating cost.  Usually, the valuation of a product considers the aggregate of the raw materials cost plus the manufacturing cost plus the distribution cost.  In the modern days, this valuation does not stand to be considered an advertisement can make a consumer to pay 50 U.S Dollars for a product worth 5 U.S Dollars. For instance, a breakfast containing cheap cereals can be given great advertisement and a consumer can end up buying it at a very dear price. 

There should be a perception brands are not always equivalent to the actual cost of a product and the final selling price.  Brands represent the total value of the qualities contained in the product to the consumer.  Usually, business involves a lot of intangibles which are often excluded when preparing the balance sheet and the financial statements.  These intangibles dictate how a business is perceived and one of the intangibles is the brand. The spectacular abilities of a highly specialized doctor will make a difference in the cost of healthcare provided to a patient (Mathieson, 45). This is the similar case when seeking high quality tailoring or salon services.  Although the products and service may be the same, these aspects always bear a hidden cost only known by the customers seeking the services and products.  The people who already know the hidden quality of a companys products should always be maintained as regular customers.  The company should be able to recognize the qualities of the business as one of the assets and sometimes after the business is up for sale, the quality can be valued as good will.

A widely known brand in the marketplace achieves greater brand recognition and the subsequent build up of the recognition makes the brand to enjoy a significant mass of positive outlooks in the marketplace (Nachum, Wymbs, 25). At this point, a brand is said to have attained a brand franchise.  Brand recognition aims at the identification of a brand even if the companys name is not appearing anywhere in the product.  An example is the brands of soft drinks produced by the Coca Cola Company which are already highly marketable even if the name Coca Cola does not appear to be prominent in the product advertisement.  Other brand names like Disney which was initially created for Walt Disney signature logo has been used recently by go.com as their logo.

The customers often perceive the branding to be an essential value added element of a good or service. Brands always serve to show a specific attractive quality in a product which makes the product to look different from others of the same type in the market. Brand owners have constantly regarded the branded products and services to have a higher price as compared to those without although the basic satisfaction may be the same.  This example is best observed in most pharmaceutical products where some are branded while others are generic.  Generic drugs seem to be sold at a considerably lower price (Timothy, 29).  The lower price of store branded or generic products does not make many consumers to opt for them but rather seek the expensive option of branded. The branded options are believed to have ultimate quality hence gaining more consumers.  Other people may select a branded product or service because of the reputation of the brand owner.  For example, commuters may choose services of Virgin Airways because of the repute or IBM computers because of the companys reputation. This is the power of brand value to the companies of the products and services and to the consumers. 

There is significant power in the name of a product which is known as a brand name.  Brand name, though at times interchangeably used with the word brand, means specifically the spoken or a written element of a product.  Having in mind that a brand name is a written or verbal linguistic element, brand name can be termed as an example of trademark in a situation where the name absolutely identifies the commercial source of the product or service to be from the owner of the brand (Meyers, Gerstman, 61). The brand is such a powerful element that the owners can always seek proprietary rights to protect the name by registering it in the trademarks.  Tangible elements like spokesmen have recently been treated as part of brands where a specific spokesman advertises specific products or services.

There are several types of brand names and all have a command of some power over the consumers to make decisions on what to buy.  Some brand names are in the forms of acronyms which are made of initials.  For example, IBM stands for International Business Machines.  Other names are descriptive in nature.  These names may describe the function or the benefits of a product for example Herbal Toothpaste (Peterson, 569). Other names may have a rhyming or alliteration nature like Luck Lick.  Some names can be neologism, evocative, foreign or some still may contain in them the founders of the products like Disney and Hewlett-Packard.  Brand names like Fuji film and Cisco have been derived from the geographical origin of the products while Nike products got the name from mythical personification.  

Brand owners always want to communicate specific identity of the product or services to the consumers.  Brand identities are typically brand images or product identities. These are attributes which consumers may associate to the brand.  The identity of the brand gives a clear picture on how the owner of the brand would like the consumer to regard the brand.  Brand owners usually strive to make a clear-cut difference between the brand identity and the brand image.  A connection between the brand personality and the product itself is only brought about by effective brand names. For brand names to command the power they often pose on consumer decisions, they should have the same target in line with the products of the company.  This means that the brand names should depict what the company stands for in terms of products and services (Jerrald, Newport, 32).  Some brands have been misleading although these are few exceptional cases.  A brand name like Oral Opticians may seem to have a controversy ending up to the potentials service consumers not to identify what is advertised.  The name, Oral Opticians may refer to both medical care givers having interests in mouth care and eye care.  Both the patients having the problems of mouth and eyes may visit the place and still, because of confusion, none will visit the facility. Another important issue about brand names is that they should be easier to remember and should target the right audience.

Brand names have significant effects in the market place. Manufactures of new products may wish to be associated with the already established companies.  Some shoddy companies make a step further to counterfeit the names of big companies like Sony, Samsung or Apple.  By taking up these names, they aim at confusing the consumers who will end up buying from them.  What is in a name, does it mean anything to do with the company anyway  Apple was a brand name that was selected by Steve Wozniak and Steve Job to their products that included computers and other electronic gadgets (Kwon, Mondello, 50). The name basically represented the plain obviousness to the creative geniuses of Apple.  When others like Apricot tried to take the concept, they did not succeed but rather failed.

The brand name is therefore one of the most influential sources of identity. When a brand queries its individuality, the most appropriate answer is therefore to painstakingly look at its name and so make an effort to identify with the reasoning behind its establishment. Through this process, we can exactly link and find out the brands intent and agenda. Several brands make al the necessary effort to set free the qualities which their brand name fails to reveal or simply excludes on the whole (Duffy, Hooper, 17). The examination of the word Apple can conclude that the name just sounds fun and not such a serious name. Many companies have ignored their own brands to follow what the simple name brought to the success of the Apple Company. 

Majority of companies are tempted to ignore the brand names of their products after they realize that they have been surpassed by other brand names.  This temptation is merely based on a rash understanding of the belief of brand self-sufficiency. From a keen observation on the past events, brands turn out to be self-sufficient as they start to give words precise meanings other than those that are found in the contemporary English language or usual human usage. For example, a brand name like Red Bull may not have anything to do with the bulls but is well understood by the people who take high energy drinks (Balmer, Greyser, 87(). This applies to other brand names like that of Nike and Mercedes. In fact, Mercedes is a Christian name in Spain nevertheless the brand has made it to be a popular symbol in Germany. The naming of brands and other proper nouns have taken this characteristics to an extent that one is not able to differentiate or define the names.  Whichever the name, the products first will have to build the brand name then the same brand name will market the products and services. 

Brand names are like identities which need to be protected and managed. Some other names which may be used as brand names may have a two times connotation. The rationale of communication in that case is to decide on one meaning and go down with the other. For instance, the petroleum company, Shell chose the name to mean and emphasize on the seas shells rather than the one which means the bomb shell. At the same time, the international temporary employment agency also referred to as Ecco, has avoided the choice of exploiting the impending connection with matters of economy which come out in its name. What is clearly seen in Ecco is that it does use its name as a natural means to add force to its positioning in the sector of high excellence service.  Ecco keenly looks into the issue of duplication through its advertisement and puts back into track those treading out of the agency.

The discussion on the power of brand value on both the consumer tries to examine important issues regarding the basic types of brand that are evident in the modern society.  We realize that sometimes brands are also called brand names and the brand names are owned by the brand owners.  The brand names are protected by a legal framework and show the ownership. Although some products can be made as generics, proprietary products and services have much regard when it comes to the consumer side (Duffy, Hooper, 33).  Example is the medicines sold by giant pharmaceutical like GlaxoSmithKline or Pfizer which are the original compound under patent laws. Similar generic drugs can be made by other pharmaceuticals but attract less customers despite their low price. The brand name therefore makes the product to be of more demand than those without big names.  The brand names may be named notwithstanding the relatedness to the brand owners although sometimes they take the names of the founders like the Hewlett Packard.  For the brand names to have more power on consumer decision, they should be easy to remember.  They can also be named according to the products being traded.  

Saviour Management Consultancy

This is in reference to your request for recommendations for motivating employees at Royal Oil Company. My firm, Saviour Management Consultancy, is pleased to offer its services in this regard. Below you will find a brief summary of the recommendations report we have already mailed to Mr. Christopher Kassel, HR Manager, Royal Oil Company, as per your request.

It is a well-known fact that employees are motivated by money, interesting job descriptions, and co-workers who make their organisation a fun place to work. Another way of motivating employees is for your company to ensure that its missions are spelled out. In fact, the mission of each task must be explained to employees in simple terms.  

Mr. William D. Rusak    - 2 -    13 December 2009

Recognition is an important motivator, too. Whenever an employee or a team performs a good job, your company should make a public announcement. Awards should also be handed out, and managers should mention the productive effort of a high achieving employee or team whenever there is an opportunity. In point of fact, the successes of your employees andor teams must be celebrated by your company. We further advise you to motivate your employees by making them feel that although they have reached the top, they are still climbing the mountain of success. At Saviour Management Consultancy, we refer to this approach as the maintenance of balance between challenge and achievement.

Yet another way to motivate your employees is to understand their personalities, based on which you may determine their needs. Typically there are seven kinds of employees
Commanders are employees that seek control,
Drifters require flexibility,
Attackers require respect,
Pleasers need appreciation,
Performers require recognition,
Avoiders require security, and
Analyticals require certainty.


This need theory of motivation is built upon the fact that the fulfillment of your employees needs is enough to motivate them. There are different ways to motivate the seven types of employees. The commanders among employees, for example, must have their work linked to results in order to feel that they are in control. If these individuals lack a sense of being in charge, they would be unmotivated. Likewise, the drifters in the workplace should be given free rein to express their creativity, without which they may be unmotivated to work efficiently.

Derived from organizational research, all of the above recommendations are successful tools to increase employee motivation. We would be honored to offer our services in the implementation of these tools at your organisation. Please feel free to contact us again.

For many people today, Microsoft Windows has become a household name. Whereas branding may be a big part of their success, one cannot overlook their world class distribution system which has helped them become the leader in operating systems the world over. The recent launch of Windows 7, Microsofts latest operating system has been in the news for some time now, and thus will be used as an example for further discussion

Direct distribution Strategy
A direct distribution system is one in which the manufacturer directly interacts with the customer. In the case of Microsoft windows this can be done through online delivery systems. Current Windows users can upgrade to the newest version or just have it shipped to their location by paying online. The advantages of such a system are that information sharing is at a maximum. This in turn ensures that Microsoft can setup an effective customer service system that ensures that customers are taken care as per the agreed standard operating procedures, issues that may come to light through an indirect distribution strategy.

Indirect distribution strategy
An indirect distribution system entails the manufacturer interacting with a third party (such as the retailerwhole seller) who will then distribute it to the end customer. In the case of Windows 7, this is done through licensed distributors of the software. Any customer can just walk into any licensed seller and pick up his preferred version of the software from the shelf. The advantage of setting up an indirect system is so that the manufacturer can reach out to more customers, essentially increasing the width of its market.

Chapter 7 of the Title 11 of the United States Code

Chapter 7 of the Title 11 of the United States Code is a very good instrument which can help a person handle debts that are not manageable however not all qualify. People file for bankruptcy for various reasons. Bankruptcy influences the rates of interest on loans and credit cards.

Chapter 7 of the Title 11 of the United States Code, the Bankruptcy code, directs the process of dealing with individuals and organizations that have in law been declared not in a position to pay their creditors. The history of bankruptcy law dates back to as early as 1942. Closely related to Chapter 7 is Chapter 13 which allows debtors who have regular income to come up with a concrete plan of how to repay all or part of the debt during a given period within which the creditor is not supposed to take any recovery action. (www.uscourts.gov)

Who may file Chapter 7 bankruptcy
Chapter 7 is a very good tool of dealing with devastating debts. However, it is not available to all. Those who qualify are those who have no enough income to meet their financial obligations and cannot therefore use Chapter 13.The income of a person filing Chapter 7 should pass the all new means test if at all its higher than the median. The purpose of the mean test is to determine whether a person has enough disposable income (net of certain allowable expenses) to repay all or some of the unsecured debt.
Further, people who had previously received a bankruptcy discharge within the last eight years under Chapter 7 and within six years incase of Chapter 13 dont qualify. A dismissal of a previous bankruptcy within a period of 180 days disqualifies a person from succeeding in a Chapter 7 case. (www.uscourts.gov)
Any person who defrauded his or her creditors cannot enjoy Chapter 7.This applies also to those who had concealed some assets so that they can keep them for themselves.

How has this changed over the past few years
The latest changes regarding bankruptcy law are geared towards making it harder for people to file bankruptcy. For example certain people are now restricted from filing chapter 7, previously one had just to chose between chapter 7 and Chapter 13.Previously,there was no means test which is now being applied to determine those who qualify for Chapter 7. (Broude, 2005)    The other important change is that requiring people to undergo credit counseling with one of the agencies approved by the United States Trustees Office. This will help people determine whether to file for bankruptcy or make an informal arrangement on how to pay the debt.

What are some of the reasons why people file bankruptcy
Many people file bankruptcy for one of the following reasons stop foreclosure, remove community debt, stop collector harassment as well as eliminating the legal obligation to pay many more debts.                           

How does bankruptcy affect interest rates on loans and Credit cards
The relationship between bankruptcy and interest rates on loans and credit cards is positive. Those who have filed for bankruptcy will pay more interest rates since they are viewed as relatively riskier than those who have never filed for one. Those who have never filed for bankruptcy are viewed as more financially stable. (Broude, 2005)