Is Wal-Mart Good for America free essay sample

This direct quote from Wal-Mart founder Sam Walton, was placed at the top of their website to nform its consumers of their general management philosophy. It is meant to instill a feeling of comfort that such an enormous multinational retailer still manages to hold on to its small town founders values. Provide people with the lowest possible prices on items that they need, whatever the cost. This slogan of always providing the lowest prices has made Wal-Mart the largest retailer on the planet and they generate billions of dollars in profit annually. But is Wal-Mart good for America? On the surface it would seem that providing a customer with an item at the lowest possible revailing question, one must more closely examine the mechanisms by which Wal- Mart is able to provide merchandise at such bargain basement prices. Providing people the lowest possible prices, whatever the cost. In this case, these low prices are being provided at the cost of the environment, Wal-Mart vendors, Wal-Mart employees, and even the American taxpayer. We will write a custom essay sample on Is Wal-Mart Good for America? or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page As the Wal-Martization of America is forcing businesses to outsource their Jobs oversees Just to stay solvent, it creates a problem here back home of people not being able to pay their bills and maintain adequate living standards. Is Wal-Mart creating the greatest good for the greatest number? Or are they Just creating the greatest good for their executives and investors? This reflection paper will attempt to analyze and answer these questions as we dive deep into the culture of Wal-Mart and its effect on society domestically, as well as globally. The two dominant points of view used to analyze corporations and their overall purpose could be summarized by the terms stockholder and stakeholder management. The former was championed by the well-known economist Milton Friedman. He believed that a corporations primary and perhaps ole purpose is to maximize profits for stockholders (Arnold, Beauchamp Bowie, 2013) Friedman would view Wal-Mart as a corporation that acts solely in the best interest of their stockholders. Wal-Mart is notorious for not paying their employees very high wages and not offering much to their employees in terms of retirement benefits and health care coverage. At least when compared to other successful competitors such as Costco, Wal-Mart clearly comes up short in this department. The latter point of view mentioned was made popular by Edward Freeman in his essay, Managing for Stakeholders. In it he argues that the primary responsibility of the executive is to create as much value for stakeholders as possible, and that no stakeholder interest is viable in isolation of the other stakeholders. (Freeman, 2007) When we speak of stakeholders, we are referring to the five basic groups that stand to gain or lose from corporations. These groups are customers, suppliers, employees, the local community and the stockholders. Freeman argues that no one stakeholders interest should be taken at the expense of the others and that all must be considered by a corporation when it comes to maki ng the best decision. While the Friedmanite view has been seen as the classical dominant view on corporations and their purpose, the stakeholder view on management has been gaining speed over the last thirty years and cannot be underestimated or undervalued these days as companies struggle to stay competitive in a massive global economy. In terms of all stakeholders involved, both Friedman and Freeman would agree that Wal-Mart is acting in the best interest of their stockholders primarily. This benefit to the shareholders is at the expense of all the other stakeholders. The customers will suffer due to the lack of uality of items purchased. Wal-Mart outsources a great deal of their production to China to save on labor and production costs. As a result, the common saying you get what you pay for holds true. These items that Wal-Mart sells in their stores tend to be of inferior quality, and that quality is passed on to the consumer. The employees suffer because they are not able to earn a decent wage to live on. According to an article written by Wayne Cascio, Decency Means More Than Always Low Prices: A Comparison of Costco to Wal-Marts Sams Club, he indicates that The age is hardly enough to live on these days with gas prices where they are and the average cost of living going up. I know I couldnt live on 10 dollars per hour. These low wages actually end up costing the American tax payer in the forms government assistance programs such as Medicaid and food stamps. In a study conducted by the Institute for Labor and Employment at the University of California, Berkeley, taxpayers subsidized $20. million for medical care for Wal-Mart employees in that state alone. (Cascio, 2006) Suppliers suffer because they are forced to accept the ontracts that Wal-Mart offers them to provide their products in their stores that essentially eat up their profits. The local community suffers because when a new Wal-Mart is built, smaller stores struggle to stay competitive due to the fact they cant keep up wit h the prices that Wal-Mart charges for their product. They do not have the ability to outsource production and so they eventually go out of business. While Friedman and Freeman would believe that Wal-Mart is primarily serving the interests of their stockholders while disregarding all other stakeholders, John Boatright would ffer an alternative hypothesis on the issue. In his article, whats wrong-and whats right-with stakeholder management, he argues that a business organization in which managers act in the interest of the shareholders can also be one that, at the same time, benefits all stakeholder groups. (Boatright, 2013) He goes on to provide his definition of what a firm is and what their purpose should be. Boatright defines a firm s a nexus of contracts between a legal entity called a firm and its various constituencies, which include employees, customers, suppliers, investors, and other roups. (Boatright, 2013) It is believed that by each group providing their own services in a Joint effort with a firm, that the greatest financial return will be achieved. From Boatrights point of view, he would view the business philosop hy of Wal-Mart as one that does benefit all the stakeholders. Customers benefit by having more purchasing power. They can walk into a Wal-Mart and purchase more items than they could at any other retailer.

Global food retail industry Essay Example

Global food retail industry Essay Example Global food retail industry Essay Global food retail industry Essay Exective Summary Global nutrient retail industry has become tightly competitory in last few old ages. In dynamic operating environment, companies need to understand the competitory nature of the planetary nutrient industry means to understand altering consumer penchants. They are doing uninterrupted attempts to run into these demands in order to procure their places in the industry. Companies have the purpose to construct collaborative working relationships with stakeholders, the ultimate aim of constructing an efficient nutrient distribution system. Wal-Mart is the universe largest retail merchant in nutrient retail industry. The company operates retail shops in assorted formats. It operates more than 6,000 shops in the United States and in 13 international markets. Food retail industry is a extremely concentrated market, new entrants would confront trouble to go consecutive in this industry. Stable relationships with providers are indispensable to Wal-Mart concern. Wal-Mart is concentrating on spread outing its merchandise line by including demanding merchandises every bit good as environmentally friendly merchandises. When analysing the concern of Wal-Mart, they really use all three of the hard Ss of McKinsey s 7S model in their pursuit of their ends: Strategy, Systems, Structure. As a retail company, Wal-Mart offers a broad aggregation of merchandises to the consumers. the food market points can be placed as Wal-Mart s star merchandises. Appliance, kitchen tools, furniture, digital merchandises, music files and package are the hard currency cattles of the company. Pharmaceuticals, playthings, electronics and wellness merchandises are Wal-Mart inquiry Markss. The exposure development, jewellery and shoe merchandises distributed by the company are those that show low market portion. : Wal-Mart has the largest IT systems of any private company in the universe. It has made important investings in supply concatenation direction. Wal-Mart Stores aims to capture the market incursion in nutrient that it has achieved in difficult and soft line goods. The merchandise development squad often attends trade shows in Europe and cardinal manner capitals and travels to topographic points globally. Wal-Mart s variegation scheme of the 1980s was a great success in footings of tapping and acknowledging new market sections. Based from the analysis of the informations by appling selling and strategic theoretical accounts, it is appropriate to urge that the merchandise and service development scheme be applied by Wal-Mart, sing that these factors serve as the nucleus factors impacting its growing and advancement. Strategy Development in the Global Food Retail Supermarket Industry Globalization of retail is non an emerging or wholly new scheme, but a current focal point for many retail merchants. Established retail merchants have recognized that natural growing going more hard to prolong in domistic markets, enlargement into new markets is a necessary measure towards procuring future profitableness. To understand the competitory nature of the planetary nutrient industry means to understand altering consumer penchants and the nutrient industry attempts to run into these demands. The undertaking of traveling nutrient points from the marketer to purchaser is going progressively complex, affecting diverse local, national, and planetary issues. The nutrient retail industry consists of the entire grosss generated through supermarkets, hypermarkets, co-ops, discount houses, convenience shops, independent grocers, bakers, and all other retail merchants of nutrient and drink. Supply concatenation direction ( SCM ) is the direction of stuffs, information, engineering and financess from the natural stuff provider to the consumer. It has become extremely critical. It is now indispensable to a company gross bring forthing activities as it relates to growing, efficiency and client satisfaction. SCM is critical to a company fiscal success in footings of gross, cost and plus productiveness. It has the purpose to construct collaborative working relationships between distributers, retail merchants, makers, gross revenues and selling agents with the ultimate aim of constructing an efficient nutrient distribution system.The most of import end of planetary nutrient retail merchants and jobbers is to guarantee that the merchandises they sel l are safe. They act as the buying agent for the consumer and the concluding nexus in the supply concatenation. The supermarket nutrient industry continually seeks ways to do the state nutrient supply safer. Question One: Globalization in the nutrient retail industry Selected Company: Wal-Mart Wal-Mart Stores ( Wal-Mart ) is the universe largest retail merchant. The company operates retail shops in assorted formats. It operates more than 6,000 shops in the US and 13 international markets including the UK, Canada, Japan, Mexico, Brazil and China. The company retails a wide scope of ware and services at low monetary values. Wal-Mart operates its concern under three concern sections: Wal-Mart Shops, Sam s Club, and the international section. The company has more than 2,000 retail shops in other states. The operating formats vary from state to state. Strategic Alliances, Merger and Acquisition ( M A ; A ) activity ( WAL-MART IN INDIA ) Wal-Mart began looking into making concern in India back in 2005. At that clip Indian authorities was sing opening up foreign direct investing ( FDI ) to retail merchants. In November 2006, Wal-Mart round out Tesco for a joint venture opAÂ ­portunity with Indian Mobile services leader, Bharti. The ground was because Wal-Mart was more flexible about the retail theoretical account to be adAÂ ­opted. The company precedence seemed to be an early entry, so that the universe s largest retail merchant did non lose out on the Indian consumer roar. As per the understanding between the two corporate giants, Bharti would pull off the front-end of the concern, while Wal-Mart would take attention of the supply concatenation, logistics and other back-end opAÂ ­erations. India is a ready and appealing market for Wal-Mart with its turning in-between category of 250 million and an economic growing rate of about 9 % . Although the FDI Torahs of the state are comparatively rigorous, authorities functionaries are non opposed to prosecuting foreign concerns in the Indian market. Since the proclamation of the Wal-Mart/Bharti JV, one taking organisation has emerged to stand for the inAÂ ­terests of the little mom-and-pop shops. This is India FDI Watch and in add-on to educating the proprietors about Wal-Mart, they have held big mass meetings and presentations against Bharti, Wal-Mart, and other big-box retail merchants. The mom-and-pops have an advantage as they are handily located on street corners or in the bosom of metropoliss and normally have personal relationships with most consumers. However, they do non transport the assortment of goods that larger retail merchants do. Menace of New Entrants and Substitutes Bing that the nutrient retail industry is a extremely concentrated market, new entrants would confront trouble wining in this industry. In fact, it is extremely hard for price reduction retail merchants to perforate other markets as Wal-Mart tried to come in Germany and South Korea. The company was unsuccessful and had to draw out because of its unprofitableness. Retailers are capable to these obstructions: Economies of Scale Cost of Capital Distribution Channelss Substitute merchandises are merchandises that can be used as replacings for other merchandises to fulfill the same necessity of consumers. Wal-Mart benefits from this thought as discount houses have lower monetary values than section shops and consumers go for higher quality merchandise with the lowest monetary values. Wal-Mart is working on supplying the best client service possible but as a high-traffic shop, it is by and large impossible to supply one on one service. Dickering Power of Suppliers and Buyers Stable relationships with providers are indispensable to Wal-Mart concern. Without timely stock list bringings, Wal-Mart could non keep its full shelves and would lose clients. For this ground, the company engages in contractual understandings with its providers. This agreement is good for both parties, as the provider makes certain it will hold changeless entree to retail merchants with big market portion. This manner, providers have a guaranteed purchaser for the supplies and can set up specific monetary values. Consumers today are seeking for the best trades possible. They are waiting for price reductions and gross revenues to bulk up on merchandises. Discount retail merchants like Wal-Mart are making immense supercenter shops because they want their shops to go a one-stop trip. Customers know what they want and how far they are willing to seek for the point. Retailers must keep high stock list degrees to retain clients and their market portion. Customers going a twosome of stat mis to a shop privation to happen the merchandises they need in stock. Question Two: Global nutrient retail market kineticss The on-going alterations and inventions in planetary nutrient markets, every bit good as the tendencies in different sectors of the nutrient industry, make up a complex quandary with consumers, manufacturers, and planetary retailing and fabrication houses. A turning tendency in nutrient markets is the displacement in growing of nutrient gross revenues from high-income ( developed ) states to take down income ( developing ) states. Despite the displacement, per capita commercial gross revenues show broad regional disparities worldwide, though growing in nutrient gross revenues in the development states is expected to go on. In expectancy of this turning market, nutrient houses appear to be shifting themselves and puting in many developing states. Measures of fight vary at the house, industry and state degree. Competitiveness is influenced by such forces as technological inventions, public establishments, substructure support, steadfast organisational construction, and authorities policies. Small nutrient makers face macroeconomic restraints similar to those of big houses, such as exchange rate fluctuations and market entree barriers in foreign markets. Retail sector issues centered on the impact of globalisation on nutrient retailing in emerging economic systems, and the impact of altering consumer penchants on nutrient retailing. Although a state may import small nutrient, the impacts of globalisation impacts are reflected in its nutrient retail sector. Wal-Mart Profitability Secure Strategies A outstanding tendency in the retail industry is consumers purchasing less and less. Until about few old ages ago, consumers depended on recognition cards. They did non waver to add to their already big debts but now consumers are seeking to pay down debts alternatively. Wal-Mart price reduction shops, supercenters and jobber nines have maintained their monetary value leading scheme known as Save money A ; unrecorded better. This scheme was implemented in twelvemonth 2008 and is aimed at households with kids and in-between income consumers seeking to salvage. Wal-Mart is concentrating on spread outing its merchandise line by including health merchandises every bit good as environmentally friendly merchandises. With the high energy monetary values confronting consumers and the thoughts of eating healthier and natural nutrient, Wal-Mart has stocked merchandises that would appeal to these consumers while keeping its competitory monetary values. The company maintains a flexible direction manner where it is willing to fulfill altering demands. To run into demand, the company must promote directors to supervise high demand merchandises and bead unpopular merchandise lines that may be a waste of stock list infinite. Another tendency is discounter development of private labels. To vie with national trade names, supermarkets and retail merchants have developed their ain trade names with the cooperation of makers. These merchandises are to be distributed and sold merely in the retail merchants shops. Net Net income Margin measures how much out of every dollar of gross revenues a company really keeps in net incomes. A company with high net net income border indicates that it has better control over its costs. In this class, Wal-Mart outperforms Costco, BJ s and industry, but lags behind Target. This tabular array shows that how much Wal-Mart has been successful to put into nutrient retail installations in order to procure its future profitableness in footings of net incomes. Question Three: McKinsey s 7S model for placing nucleus competences and capablenesss, discourse the ability of Wal-Mart When analysing the concern of Wal-Mart, they really employ all three of the hard Ss in their chase of their ends: Scheme Systems Structure Their strength in all three of these S s is likely a large ground why they have been so successful. Scheme Wal-Mart s overall scheme is to ever supply the lowest monetary values. Additionally, they aim to hold a shop which provides convenience by leting consumers to happen everything they need under one roof.This scheme of convenience with low monetary values has driven Wal-Mart to be the concern leader that it is. Additionally, they plan to go on to spread out into markets non yet penetrated by major ironss, and some markets that are already saturated, such as New England and California.The other two difficult S s, systems and construction, support this scheme. Besides, low monetary values everyday has become the manner and shared values of Wal-Mart. Even the staff is wholly committed to supplying the lowest possible monetary values. The accomplishments of workers are besides geared to happening inefficiencies and towards diminishing monetary values. The low cost scheme has driven Wal-Mart to make things such as call providers collect, do off with maker representatives at gross revenues meetings, make off with regional offices, etc. Systems Wal-Mart has in topographic point a set of systems that helps it accomplish its scheme of low monetary values everyday. The largest and most profitable of these systems is the Information Technology system. Wal-Mart has employed computing machines, networking, and the cyberspace to cut down stock lists and waste, and velocity bringings. Wal-Mart can link to their providers and convey them informations so they know what Wal-Mart demands and when.The lower stock lists allow Wal-Mart to bring forth stock list turnover rates of around 70 % which is truly high. Additionally, Wal-Mart has worked with providers in order to better their efficiencies in production which they so pass to Wal-Mart and so to the consumer. Because of Wal-Mart scheme, these reduced costs due to systems let Wal-Mart to cut down consumer s monetary values. Wal-Mart has streamlined the supply system so good that it would be really difficult to happen any inefficiency and would be difficult for any rival to crush. Addi tionally, Wal-Mart has a really efficient human resource system set-up that has both largely kept employees happy, and resisted unionisation. Wal-Mart is the largest private employer and has developed systems to bind rises and fillips to public presentation. This encourages employees to believe of the company and to ever make their best. Structure Wal-Mart besides employs a good construction that works with the systems to authorise the low monetary value scheme. Wal-Mart has planned warehouses and integrated them with systems. Additionally, they place their warehouses strategically so that one warehouse can function many shops. They have developed clip agendas so that one truck can serve many shops and that after a bringing the truck can take back returned goods to the warehouse. The supercenter design itself is a structural advantage and scheme that Wal-Mart uses. This design allows consumers to come to a individual Wal-Mart shop to happen everything they need from food markets to gifts to apparels to dally. Wal-Mart has designed an efficient direction construction that allows it to extinguish the regional office. This construction entirely has saved Wal-Mart 1000000s of dollars a twelvemonth. When Wal-Mart topographic points shops in strategic locations and thrusts traffic utilizing convenience and so combines the gross reve nues with its systems and construction, people get a extremely efficient corporation that can cut costs to a bare-minimum which are so passed along to the consumer. If Wal-Mart continues to rule these three S s, it will go on to rule the retail market. Question Four: BCG merchandise matrix theoretical account, placing major merchandises of Wal-Mart As a retail company, Wal-Mart offers a broad array of merchandises to the consumers. These include food markets, playthings, dress for adult females, work forces and kids, jewellery every bit good as other difficult goods ; all of these merchandise lines are sold at sensible and by and large low-cost monetary values. In order to analyse the operation and public presentation of the selected merchandises of the company ( Wal-Mart ) , the Boston Consulting Group ( BCG ) Matrix is used. The Boston Consulting Group ( BCG ) Matrix is a tool developed to measure company concern units. Specifically, the BCG Matrix is used to measure the concern units degree of market growing and portion. The distribution done in this matrix was based on the 2008 gross study of the company. Stars In above diagram, the food market points map can be placed as Wal-Mart s star merchandise. The study stressed that this served as the top gross generator of the company, lending to 22 % in the entire gross revenues. While this generates the most hard currency flow, it should besides be considered that this merchandise causes the most inventory cost to the company, sing that Wal-Mart has to deduce its food market supplies to multiple providers or companies. Cash cattles On the other manus, the difficult ( contraption, kitchen tools, furniture ) and soft goods ( digital merchandises, music files, package ) are the hard currency cattles of the company. Compared to the food markets, the supply concatenation for these merchandises are less complex. The private-label goods are considered hard currency cattles peculiarly in the international sector. This is because American trade names do non exhibit the same impact or entreaty to foreign purchasers as with foreign consumers. As hard currency cattles, it is indispensable that Wal-Mart utilizations these merchandises to bring forth financess that would back up its other concern units peculiarly those categorized as stars and inquiry Markss. Question Markss Pharmaceuticals, playthings, electronics and wellness merchandises are Wal-Mart inquiry Markss. As indicated in the gross study, these merchandises may bring forth gross revenues but non plenty to counterbalance the degree of financess required to administer them. Multiple providers and dearly-won stock list make these merchandises the inquiry grade type. For this ground, it is practical that Wal-Mart see restricting the stock list of these merchandises to salvage on stock list disbursals. Dogs Finally, the exposure development, jewellery and shoe merchandises distributed by the company are those that exhibit low market portion every bit good as growing. Sing the figure of options available in the market with these merchandises, it is so hard for the company to maintain these merchandise lines. As certain retail merchants are focused on administering these goods, they have more concern flexibleness than Wal-Mart, leting them to get the better of gross revenues issues. Question Five: merchandise life rhythm and Ansoff growing matrix Product life rhythm Wal-Mart is committed to bettering operations, take downing costs and bettering client service. But the key to retailer Wal-Mart s success is its ability to drive costs out of its supply concatenation and pull off it expeditiously. Many supply concatenation experts refer to Wal-Mart as a supply chain-driven company that besides has retail shops. Wal-Mart s company doctrine ( The Wal-Mart Way ) is to be at the taking border of logistics, distribution, transit, and engineering. Wal-Mart has the largest IT systems of any private company in the universe. The Wal-Mart concern theoretical account would neglect immediately without its advanced engineering and supply concatenation. Wal-Mart has made important investings in supply concatenation direction. Ansoff growing matrix Ansoff matrix allows the sellers to look at different ways to turn the concern through bing merchandises and markets and new merchandises and markets. Furthermore, the matrix is composed of four assorted schemes: Market Penetration Wal-Mart Shops aims to capture the market incursion in nutrient that it has achieved in difficult and soft line goods. The retail giant, which posts more than a 10 % market portion in many nonfood classs, plans to lift up its nutrient portion through speedy supercenter enlargements. To accomplish their market incursion ends, they believe in three steering rules: Customer Value and Service Partnership with its associates Community engagement Merchandise Development Wal-Mart merchandise development group influenced the expression, feel and assortment of ware. The merchandise development group headed by strong communicators worked with the purchaser for the class and assorted providers to better the consistence of qualities and sizes of ware. The merchandise development squad often attends trade shows in Europe and cardinal manner capitals and travels to topographic points globally. The group findings are so on a regular basis presented to merchandisers, sellers and bundle interior decorators during the twelvemonth. Major seasonal tendency overview meetings are held for spring and autumn with smaller meetings held for summer and vacations. Market Development Wal-Mart ever seek to take advantage of on its international scheme, it is working in the way of buildAÂ ­ing new retail shops in other countries.They planned to educate militants around the universe about Wal-Mart retail development schemes and the company impact on local retail civilization. The three major tactics used by the company before to come in a state include: BuildAÂ ­ing partnerships with local concerns and organisations Working with authorities functionaries Taping into the turning in-between category buying power Diversification Wal-Mart s variegation scheme of the 1980s was a great success in footings of tapping and acknowledging new market sections. Sam s nine was the most successful variegation of all at the decennary by following wholesaling construct. The first Sam s Club launched in April 1983. The company, on the other side, opened its first Wal-Mart Supercenter in 1988. It was basically a complete Wal-Mart price reduction shop with a supermarket added to it. Wal-Mart variegation into new retail formats during the 1980s did more than better the house growing in the cardinal countries of retail. Diversification besides gave the company the opportunity to take hazards and experiment. Evaluation the Usefulness of Marketing and Strategic Models Based from the analysis of the selected company, it is so appropriate to urge that the merchandise and service development scheme be applied by Wal-Mart, sing that these factors serve as the nucleus factors impacting its growing and advancement. With this type of scheme, Wal-Mart can increase its gross revenues by agencies of modifying or heightening its bing merchandises and services. This scheme has been recommended as it has the ability to back up the company potency to make greater markets. Wal-Mart has multiple merchandise lines that will be affected by this scheme. With the BCG matrix, it is appropriate that the company starts off the development with its premier merchandise lines. Through this, the company will hold sufficient financess to back up other relevant activities in the hereafter. However, by agencies of this scheme, Wal-Mart will be able to beef up the market place of each of its merchandise divisions, ensuing to greater keep to these specific markets. The suggested scheme does non merely suit the intent of the company and support its future growing but has besides been recommended based on the capableness of the company to implement it. Wal-Mart has an efficient distribution system which in bend would back up this scheme. The civilization of the retail company besides fits the demands of this recommendation. Specifically, the company devotes ample clip and resources to develop and keep a skilled work force. With productive directors and employees, the bringing of the developed goods of the company will be made possible. As a consequence, greater satisfaction from the clients will be obtained. Mention Beginnings Text Books Lynch, R. ( 2006 ) Corporate Strategy, Fourth Edition, Financial Times Prentice Hall. Mintzberg, H. , Ahlstrand, B. and Lampel, J. ( 1998 ) Strategy Safari, Financial Times Prentice Hall Johnson, G. , Scholes, K. and Whittington, R. ( 2005 ) Researching Corporate Scheme: Text and Cases, 7th Edition, Financial Times Prentice Hall. Online Beginnings hypertext transfer protocol: //www.walmart.com/ hypertext transfer protocol: //walmartstores.com/sites/AnnualReport/2008/docs/wal_mart_annual_report_2008.pdf www.economist.com www.metrofoods.net/ www.ft.com www.ers.usda.gov/Briefing/GlobalFoodMarkets/Industry www.plunkettresearch.com/Industries/

Case study analysis Example | Topics and Well Written Essays - 1000 words - 4

Analysis - Case Study Example For this case, the hotel ventured into launching a nationwide campaign for to go green without losing its customers. The firm had a challenge of balancing its corporate strategies with environmental management plans (Slye, 2015). The hotel needed a personnel, who could engineer the delivery of excellent and trendy hotel experiences and at the same time, reduce the hotel’s ecological footprints. The hotel chose on Business Evolution Consulting as the project manager and the latter firm helped to formulate a plan called the Kimpton EarthCare (Slye 2015). The program so far has remarkable benefits to both the hotel group’s management and customer experience. Planning the project occurred in three phases, the first of which was of remarkable success. The remaining two faces of the project are yet to be completed. They include a recycling project, and replacement of the hotel equipment including fabrics with organic materials. The two latter projects faced objection from a section of stakeholders. In ensuring proper and reasonable arguments on the returns from investing in the two projects, there is a need for a review of fundamental lessons from the first project. The first lesson for stakeholders is the fact that the firm has a desire for excellence and creation of difference in approach to balance between corporate strategies and management of the environment. For such a case, it is justified all stakeholders in the corporation should consider that there has already been past success (Silverman & Thomas, 2006). Success is because the company put the project as a part of its vision. There is a generalized ideology for the advocacy for environmental care among the business across the globe. The company already has a history of venturing into managing the environment, which makes it unique among the customers. Some people may consider that the Green initiative is no longer news to the public because the corporate headquarters has the plan

Preparing a Comprehensive Case Analysis Assignment

Preparing a Comprehensive Case Analysis - Assignment Example Besides, corruption, mismanagement, and overstaffing are among some of the key factors that pose as threats to most public companies. This manuscript will effusively analyze Gander Mountain Company by stating its challenges, key strengths, and apparent weaknesses. In addition, it intends to devise an all-inclusive strategy on how to solve such concerns. Existing Objectives and Strategies Gander Mountain is a public company, whose main intentions are to provide outstanding services to its clientele at exceptionally subsidized costs. This is in an attempt to maintain the dependability of their clientele, as well as improve the public image of the company. Moreover, the firm plans to spread out their products to the public by increasing the number of outlets in the US. The firm also plans to boost its annual revenue by making more sales and dropping the expenses (David, 2011). Moreover, the firm intends to improve customer satisfaction by adding value to their current goods and services , therefore, bring in a new line of assorted products and services. Environmental Opportunities and Threats Gander Mountain possesses various strengths significant for its growth and advantage over its competitors. For instance, the firm has created a wide network of reliable customers. Additionally, the company boasts of another group of potential customers. This opportunity will boost the firms’ growth if exploited to the maximum (David, 2011). Additionally, the firm boasts of its powerful link and interactions with its suppliers. This ensures that goods and services provision to their customers is constant and timely. The management team of Gander Mountain is extremely qualified and thus devotes their experience to the ultimate growth of the firm. Besides, the firm experiences a key weakness in its competitive front. Various entrepreneurs have ventured into this industry, therefore, posing a significant threat on the firms goals of expanding outlets within the nation. Addi tionally, the number of former loyal customers has significantly diminished. This may have resulted from the economic recession that has seen the lay-off of many customers. This incapacitates the clients financially, and hence the firm experiences this sudden drop (David, 2011). Therefore, the firm ought to shield itself from the threats of competitors and reduced clients. This is only possible by offering high quality products, as well as services at subsidized prices. This will retain the current customer, and attract more customers into purchasing these products and services (David, 2011). However, this comes at some costs, but the firm will achieve its ultimate goal of growth and increased profitability. Competitive Profile Matrix The table below depicts the competitive Profile Matrix for Gander Mountains, Bucker’s Incorporated, and Kirk’s company. The pricing of goods and services at Gander Mountain is relatively low as compared to its competitive counterparts. Th is is a strategic plan to outshine most of the potential threats of the firm. However, the quality of these products and services offered is exceptionally high. Additionally, Gander Mountain has employed various types of media advertising. This has aided significantly in mounting the number of clients, thus increasing their sales. Moreover, most of their customers depict loyalty to the company, therefore, creating an extensive customer network (David, 2011). The annual revenue for the firm has

Financial management Essay Example for Free

Financial management Essay Q1. What are the goals of financial management? Ans. Financial management means maximization of economic welfare of its shareholders. Maximization of economic welfare means maximization of wealth of its shareholders. Shareholder’s wealth maximization is reflected in the market value of the firm’s shares. Experts believe that, the goal of financial management is attained when it maximizes the market value of shares. There are two versions of the goals of financial management of the firm- Profit Maximization and Wealth Maximization. Profit maximization Profit maximization is based on the cardinal rule of efficiency. Its goal is to maximize the returns with the best output and price levels. A firm’s performance is evaluated in terms of profitability. Profit maximization is the traditional and narrow approach, which aims at maximizing the profit of the concern. Allocation of resources and investor’s perception of the company’s performance can be traced to the goal of profit maximization. Wealth maximization The term wealth means shareholder’s wealth or the wealth of the persons those who are involved in the business concern. Wealth maximization is those who are involved in the business concern. Wealth maximization is also known as value maximization or net present worth maximization. This objective is an universally accepted concept in the field of business. Wealth maximization is possible only when the company pursues policies that would increase the market value of shares of the company. It has been accepted by the finance managers as it overcomes the limitations of profit maximization. The following arguments are in support of the superiority of wealth maximization over profit maximization: * Wealth maximization is based on the concept of cash flows. Cash flows are a reality and not based on any subjective interpretation. On the other hand, profit maximization is based on any subjective interpretation. On the other hand, profit maximization is based on accounting profit and it also contains many subjective elements. * Wealth maximization considers time value of money. Time value of money translates cash flow occurring at different periods into a comparable value at zero period. In this process, the quality of cash flow is considered critical in all decisions as it incorporates the risk associated with the cash flow stream. It finally crystallizes into the rate of return that will motivate investors to part with their hard earned savings. Maximizing the wealth of the shareholders means net present value of the decisions implemented. Q2. Explain the factors affecting Financial Plan. Ans. To help your organization succeed, you should develop a plan that needs to be followed. This applies to starting the company, developing new product, creating a new department or any undertaking that affects the company’s future. There are several factors that affect planning in an organization. To create an efficient plan, you need to understand the factors involved in the planning process. Organizational planning is affected by many factors: Priorities In most companies, the priority is generating revenue, and this priority can sometimes interfere with the planning process of any project. When you start the planning process for any project, you need to assign each of the issues facing the company a priority rating. That priority rating will determine what issues will sidetrack you from the planning of your project, and which issues can wait until the process is complete. Company Resources Having an idea and developing a plan for your company can help your company to grow and succeed, but if the company does not have the resources to make the plan come together, it can stall progress. One of the first steps to any planning process should be an evaluation of the resources necessary to complete the project, compared to the resources the company has available. Some of the resources to consider are finances, personnel, space requirements, access to materials and vendor relationships. Forecasting A company constantly should be forecasting to help prepare for changes in the marketplace. Forecasting sales revenues, materials costs, personnel costs and overhead costs can help a company plan for upcoming projects. Without accurate forecasting, it can be difficult to tell if the plan has any chance of success, if the company has the capabilities to pull off the plan and if the plan will help to strengthen the company’s standing within the industry. For example, if your forecasting for the cost of goods has changed due to a sudden increase in material costs, then that can affect elements of your product roll-out plan, including projected profit and the long-term commitment you might need to make to a supplier to try to get the lowest price possible. Contingency Planning To successfully plan, an organization needs to have a contingency plan in place. If the company has decided to pursue a new product line, there needs to be a part of the plan that addresses the possibility that the product line will fail. Q3. Explain the time value of money. Ans. Money has time value. A rupee today is more valuable than a year hence. It is on this concept â€Å"the time value of money† is based. The recognition of the time value of money and risk is extremely vital in financial decision making. Most financial decisions such as the purchase of assets or procurement of funds, affect the firm’s cash flows in different time periods. For example, if a fixed asset is purchased, it will require an immediate cash outlay and will generate cash flows during many future periods. Similarly if the firm borrows funds from a bank or from any other source, it receives cash and commits an obligation to pay interest and repay principal in future periods. The firm may also raise funds by issuing equity shares. The firm’s cash balance will increase at the time shares are issued, but as the firm pays dividends in future, the outflow of cash will occur. Sound decision-making requires that the cash flows which a firm is expected to give up over period should be logically comparable. In fact, the absolute cash flows which differ in timing and risk are not directly comparable. Cash flows become logically comparable when they are appropriately adjusted for their differences in timing and risk. The recognition of the time value of money and risk is extremely vital in financial decision-making. If the timing and risk of cash flows is not considered, the firm may make decisions which may allow it to miss its objective of maximizing the owner’s welfare. The welfare of owners would be maximized when Net Present Value is created from making a financial decision. It is thus, time value concept which is important for financial decisions. Thus, we conclude that time value of money is central to the concept of finance. It recognizes that the value of money is different at different points a of time. Since money can be put to productive use, its value is different depending upon when it is received or paid. In simpler terms, the value of a certain amount of money today is more valuable than its value tomorrow. It is not because of the uncertainty involved with time but purely on account of timing. The difference in the value of money today and tomorrow is referred as time value of money. Q6. What are the assumptions of MM approach? Ans. Modigliani Millar approach, popularly known as the MM approach is similar to the Net operating income approach. The MM approach favors the Net operating income approach and agrees with the fact that the cost of capital is independent of the degree of leverage and at any mix of debt-equity proportions. The significance of this MM approach is that it provides operational or behavioral justification for constant cost of capital at any degree of leverage. Whereas, the net operating income approach does not provide operational justification for independence of the companys cost of capital. Basic Propositions of MM approach: 1. At any degree of leverage, the companys overall cost of capital (ko) and the Value of the firm (V) remains constant. This means that it is independent of the capital structure. The total value can be obtained by capitalizing the operating earnings stream that is expected in future, discounted at an appropriate discount rate suitable for the risk undertaken. 2. The cost of capital (ke) equals the capitalization rate of a pure equity stream and a premium for financial risk. This is equal to the difference between the pure equity capitalization rate and ki times the debt-equity ratio. 3. The minimum cut-off rate for the purpose of capital investments is fully independent of the way in which a project is financed. Assumptions of MM approach: 1. Capital markets are perfect. 2. All investors have the same expectation of the companys net operating income for the purpose of evaluating the value of the firm. 3. Within similar operating environments, the business risk is equal among all firms. 4. 100% dividend payout ratio. 5. An assumption of no taxes was there earlier, which has been removed. Limitations of MM hypothesis: 1. Investors would find the personal leverage inconvenient. 2. The risk perception of corporate and personal leverage may be different. 3. Arbitrage process cannot be smooth due the institutional restrictions. 4. Arbitrage process would also be affected by the transaction costs. 5. The corporate leverage and personal leverage are not perfect substitutes. 6. Corporate taxes do exist. However, the assumption of no taxes has been removed later.

Differences of Love in Shakespeares Romeo and Juleit Essay -- Shakespe

Two lovers, different in beliefs, yet the same in thoughts and feelings, are set to have a tragic ending in their life story. In William Shakespeare's The Tragedy of Romeo and Juliet, Shakespeare portrays differences between the love of Romeo for Juliet, and the love of Juliet for Romeo. Many people often wonder why this love between Romeo Montague and Juliet Capulet did not turn out for the best. It is not their love for one another that finally breaks them apart from the world, it is the way they love one another. The couple struggled to the death trying to make their passionate love work out with each other, but their many differences kept coming up in their lives and getting in the way of their love. While Romeo is a Manic lover and Juliet is an Erotic lover, their love is more likely to be star-crossed. Romeo is a Manic type of lover, which is the main reason why The Tragedy of Romeo and Juliet did not have a happy ending. There are many examples of Romeo being a Manic lover. One good example is when he is talking to Friar Lawrence the morning after Romeo meets Juliet and sneaks away to her house to woo her. Romeo says to Friar Lawrence, ?Then plainly know my hearts dear love is set / On the fair daughter of rich Capulet, / As mine on hers, so hers is set on mine?/ We met, we wooed, and made exchange of vow?/ That thou consent to marry us today? (II, iii, 57-59, 62, 64). This explains how Romeo becomes intensely preoccupied with thoughts of Juliet and need for Juliet?s love. Romeo?s heart is set on Juliet, and he can?t stop thinking about her. Inside, Romeo also knows that Juliet loves him, too, and her heart is set on his. Love at first sight is quick on Romeo. After less than one day of knowing her, Romeo has ... ...n love at first sight, this story may have had a different ending. In The Tragedy of Romeo and Juliet, Shakespeare clearly displays the tragic ending between Romeo and Juliet. The tragedy is not because of their love for one another, but for the differences between the ways they loved each other. Romeo was too fast for Juliet, and Juliet was too ideal for Romeo. If Romeo had been an Erotic lover, or Juliet had been a Manic lover, this tragedy may have ended up differently. It may not have even been a tragedy at all. Despite all the struggles between differences and families, Romeo and Juliet still had a very passionate love for each other at the ending, although it did not turn out as they had first planned. Romeo and Juliet?s love for one another did not have a truly happy ending, because the love between Romeo and Juliet was star-crossed from the beginning.

Play And Physical Health Essay

Play is characterized by behaviors that are intrinsically motivated and self initiated. It is a process oriented, non-literal and pleasurable activity. it also has other characteristics as being exploratory, among other things (Fromberg, 2002). Play is an encompassing activity that affects the physical (Frost et al. 2001), social (Murata & Maeda, 2002), emotional and cognitive development of the child. (Murata & Maeda, 2002) Children spend an ample of their time playing. Children interact with their peers and parents most time by playing with them. A lot of their interaction with their parents builds their intellectual prowess. They learn to build social bonds with their family. (Rivkin 1995) . Moreover, interacting with their peers help them to become individuals that are completely incorporated into the society. Interaction with their colleagues sometimes brings about traumatic experiences like inflicting bodily wounds. The effect of what they do might linger with them for the rest of their lives. However sweet the playing experience could be, it can also be nasty. Aside from sharpening the physical and mental agility of a child, playing can also bring upon them serious medical emergencies as a result of accidents. Although play is an important part of sociological interaction, it is one of the major ways by which children learn role playing. Playing is also a way by which children keep themselves healthy. (Murata & Maeda, 2002) Play is good for the children but in order for it to bring out the desired results, it must be in the right environment (Rivkin 1995). The environment must be attractive enough to facilitate the play so as to encourage the action. In selecting play objects for children, it is important to consider their abilities and temperament so as not to inadvertently hand them tools that they can use in inflicting bodily harm to themselves and their peers. Also, they must play under the supervision of an older adult to monitor their activities. Play is pleasurable, it is good for the development of the child but it must not be allowed to get out of hand.