Literature Review on Personalized Web Improvement

On Personalized Web Improvement - Literature review Example О Ð ¿Ã'€Ð ¾Ã µÃ ºÃ'‚Ð µ Ð Ã ¾Ã ²Ã ¾Ã' Ã'‚Ð ¸ 21.02.2017ИÃ' Ã ¿Ã'€Ð °Ã ²Ã »Ã µÃ ½Ã ¸Ã µ Ð ½Ã µÃ ºÃ ¾Ã'€Ã'€Ð µÃ ºÃ'‚Ð ½Ã'‹Ã'… Ð ´Ã °Ã ½Ã ½Ã'‹Ã'… Ð ² Ã' Ã'‚Ð °Ã'‚Ð ¸Ã' Ã'‚Ð ¸Ã ºÃ µ Ð ¿Ã'€Ð ¾Ã' Ã'€Ð ¾Ã'‡Ð µÃ º Ð ¸ Ð ¾Ã'‚Ð ºÃ °Ã ·Ã ¾Ã ² Ð ¡Ã »Ã'Æ'Ð ¶Ã ±Ã ° Ð ¿Ã ¾Ã ´Ã ´Ã µÃ'€Ð ¶Ã ºÃ ¸ +7 (495) 789-02-33 Ð ­Ã »Ã µÃ ºÃ'‚Ã'€Ð ¾Ã ½Ã ½Ã °Ã'  Ð ¿Ã ¾Ã'‡Ã'‚Ð ° ПÐ °Ã'€Ð ¾Ã »Ã'Å' Ð’Ð ¾Ã ¹Ã'‚Ð ¸ Ðâ€"Ð °Ã'€Ð µÃ ³Ã ¸Ã' Ã'‚Ã'€Ð ¸Ã'€Ð ¾Ã ²Ã °Ã'‚Ã'Å'Ã' Ã'  PRO-Ð Ã ºÃ ºÃ °Ã'Æ'Ð ½Ã'‚ Ðâ€"Ð °Ã ±Ã'‹Ð »Ã ¸ Ð ¿Ã °Ã'€Ð ¾Ã »Ã'Å'? RU ПÐ ¾Ã ´Ã °Ã'€Ð ºÃ ¸! БÐ ¸Ã'€Ð ¶Ã ° Ð ºÃ ¾Ã ¿Ã ¸Ã'€Ð °Ã ¹Ã'‚Ð ¸Ã ½Ã ³Ã ° БÐ ¸Ã'€Ð ¶Ã ° Ã'€Ð µÃ'€Ð °Ã ¹Ã'‚Ð ¸Ã ½Ã ³Ã ° ÐÅ"Ð °Ã ³Ã °Ã ·Ã ¸Ã ½ Ã' Ã'‚Ð °Ã'‚Ð µÃ ¹ ÐÅ"Ð °Ã ³Ã °Ã ·Ã ¸Ã ½ Ð ½Ã ¾Ã ²Ã ¾Ã' Ã'‚Ð µÃ ¹ Ð £Ã ½Ã ¸Ã ºÃ °Ã »Ã'Å'Ð ½Ã ¾Ã' Ã'‚Ã'Å' Ã'‚Ð µÃ ºÃ' Ã'‚Ð ° ПÃ'€Ð ¾Ã ²Ã µÃ'€Ð ºÃ ° Ð ¾Ã'€Ã'„Ð ¾Ã ³Ã'€Ð °Ã'„Ð ¸Ã ¸ SEO-Ð °Ã ½Ã °Ã »Ã ¸Ã · Ð ¡Ã ¸Ã ½Ã ¾Ã ½Ã ¸Ã ¼Ã'‹ Ð º Ã' Ã »Ã ¾Ã ²Ã'Æ' Ð £Ã ½Ã ¸Ã ºÃ °Ã »Ã'Å'Ð ½Ã ¾Ã' Ã'‚Ã'Å' Ã' Ã °Ã ¹Ã'‚Ð ° Ð £Ã ½Ã ¸Ã ºÃ °Ã »Ã'Å'Ð ½Ã ¾Ã' Ã'‚Ã'Å' Ð ´Ã ¾Ã ºÃ'Æ'Ð ¼Ã µÃ ½Ã'‚Ð ° Ð  Ã µÃ ³Ã'Æ'Ð »Ã' Ã'€Ð ½Ã °Ã'  Ð ¿Ã'€Ð ¾Ã ²Ã µÃ'€Ð ºÃ ° API Ã'Æ'Ð ½Ã ¸Ã ºÃ °Ã »Ã'Å'Ð ½Ã ¾Ã' Ã'‚Ð ¸ ПÐ °Ã ºÃ µÃ'‚Ã'‹ Ã' Ã ¸Ã ¼Ã ²Ã ¾Ã »Ã ¾Ã ² SEO-Ð ºÃ ¾Ã ¿Ã ¸Ã'€Ð °Ã ¹Ã'‚Ð ¸Ã ½Ã ³ Ð ¾Ã'‚ Ð »Ã'Æ'Ã'‡Ã'ˆÐ ¸Ã'… Ð °Ã ²Ã'‚Ð ¾Ã'€Ð ¾Ã ², Ã'€Ð °Ã ±Ã ¾Ã'‚Ð ° Ð ºÃ ¾Ã ¿Ã ¸Ã'€Ð °Ã ¹Ã'‚Ð µÃ'€Ð ¾Ã ¼ Ð ½Ã ° Ð ´Ã ¾Ã ¼Ã'Æ' SEO-Ð Ã Ã Ãâ€ºÃËœÃâ€" Ð ¢Ãâ€¢ÃÅ¡Ã ¡Ã ¢Ã  The literature review "Literature Review on Personalized Web Improvement" discusses today personalised web portals. The paper also analyzes the ways that a program can offer personalisation and how to improve such a service. A personalized web portal lets them quickly check what they need and move on. There are numerous other advantages to the end user, of course. The issue is that there is an inherent tension between personalization and security (Lee and Cranage, 2010). As information becomes personalized, particularly if that information has to be stored on a remote server (like Google), the risk of someone's private data being stolen increases tremendously. If these portals end up governing the entire way that people surf the Net and use electronic services, then they become immensely valuable for marketers, spammers, hackers and phishers. As noted, the most common personalized web services are portals or applications that govern the way one relates to the Internet based on user input. Facebook, for example, is a modular system: It has its core functionality that can be changed according to the individual need of the user, particularly in terms of what information is being shared and what social networking features one uses, and then first and third-party applications can be installed to allow more interaction. Facebook can include news or stocks tickers, games, etc. Of course, Facebook's recent problems with privacy management also show some of the problems with these approaches (Vascellaro, 2010). The literature review "Literature Review on Personalized Web Improvement" discusses today personalised web portals. The paper also analyzes the ways that a program can offer personalisation and how to improve such a service. A personalized web portal lets them quickly check what they need and move on. There are numerous other advantages to the end user, of course. The issue is that there is an inherent tension between personalization and security (Lee and Cranage, 2010). As information becomes personalized, particularly if that information has to be stored on a remote server (like Google), the risk of someone's private data being stolen increases tremendously. If these portals end up governing the entire way that people surf the Net and use electronic services, then they become immensely valuable for marketers, spammers, hackers and phishers. As noted, the most common personalized web services are portals or applications that govern the way one relates to the Internet based on user input. Facebook, for example, is a modular system: It has its core functionality that can be changed according to the individual need of the user, particularly in terms of what information is being shared and what social networking features one uses, and then first and third-party applications can be installed to allow more interaction. Facebook can include news or stocks tickers, games, etc. Of course, Facebook's recent problems with privacy management also show some of the problems with these approaches (Vascellaro, 2010). Ð’Ã' Ã µÃ ³Ã ¾ Ã' Ã ¸Ã ¼Ã ²Ã ¾Ã »Ã ¾Ã ²: 1527 БÐ µÃ · Ð ¿Ã'€Ð ¾Ã ±Ã µÃ »Ã ¾Ã ²: 1290 КÐ ¾Ã »Ã ¸Ã'‡Ð µÃ' Ã'‚Ð ²Ã ¾ Ã' Ã »Ã ¾Ã ²: 240 ПÃ'€Ð ¾Ã ²Ã µÃ'€Ð ¸Ã'‚Ã'Å' SEO-Ð ´Ã °Ã ½Ã ½Ã'‹Ð µ ОÐ ¿Ã ¸Ã' Ã °Ã ½Ã ¸Ã µ ОÐ ¿Ã ¸Ã' Ã °Ã ½Ã ¸Ã µ Ã' Ã µÃ'€Ð ²Ã ¸Ã' Ã ° SEO-Ð °Ã ½Ã °Ã »Ã ¸Ã · Ã'‚Ð µÃ ºÃ' Ã'‚Ð ° Ð ¾Ã'‚ TEXT.RU - Ã' Ã'‚Ð ¾ Ã'Æ'Ð ½Ã ¸Ã ºÃ °Ã »Ã'Å'Ð ½Ã'‹Ð ¹ Ã' Ã µÃ'€Ð ²Ã ¸Ã' , Ð ½Ã µ Ð ¸Ã ¼Ã µÃ'ŽÃ'‰Ð ¸Ã ¹ Ð °Ã ½Ã °Ã »Ã ¾Ã ³Ã ¾Ã ². Ð’Ð ¾Ã ·Ã ¼Ã ¾Ã ¶Ã ½Ã ¾Ã' Ã'‚Ã'Å' Ð ¿Ã ¾Ã ´Ã' Ã ²Ã µÃ'‚Ð ºÃ ¸  «Ã ²Ã ¾Ã ´Ã'‹Â », Ð ·Ã °Ã' Ã ¿Ã °Ã ¼Ã »Ã µÃ ½Ã ½Ã ¾Ã' Ã'‚Ð ¸ Ð ¸ Ð ºÃ »Ã'ŽÃ'‡Ð µÃ ¹ Ð ² Ã'‚Ð µÃ ºÃ' Ã'‚Ð µ Ð ¿Ã ¾Ã ·Ã ²Ã ¾Ã »Ã' Ã µÃ'‚ Ã' Ã ´Ã µÃ »Ã °Ã'‚Ã'Å' Ð °Ã ½Ã °Ã »Ã ¸Ã · Ã'‚Ð µÃ ºÃ' Ã'‚Ð ° Ð ¸Ã ½Ã'‚Ð µÃ'€Ð °Ã ºÃ'‚Ð ¸Ã ²Ã ½Ã'‹Ð ¼ Ð ¸ Ð »Ã µÃ ³Ã ºÃ ¸Ã ¼ Ð ´Ã »Ã'  Ð ²Ã ¾Ã' Ã ¿Ã'€Ð ¸Ã' Ã'‚Ð ¸Ã' . SEO-Ð °Ã ½Ã °Ã »Ã ¸Ã · Ã'‚Ð µÃ ºÃ' Ã'‚Ð ° Ð ²Ã ºÃ »Ã'ŽÃ'‡Ð °Ã µÃ'‚ Ð ² Ã' Ã µÃ ±Ã' : âÅ"” Ð ¡Ã'‡Ð µÃ'‚Ã'‡Ð ¸Ã º Ã' Ã ¸Ã ¼Ã ²Ã ¾Ã »Ã ¾Ã ², Ð ¿Ã ¾Ã ´Ã' Ã'‡Ð µÃ'‚ Ð ºÃ ¾Ã »Ã ¸Ã'‡Ð µÃ' Ã'‚Ð ²Ã ° Ð ·Ã ½Ã °Ã ºÃ ¾Ã ² Ð ¸ Ã' Ã »Ã ¾Ã ² Ð ² Ã'‚Ð µÃ ºÃ' Ã'‚Ð µ Ð ¾Ã ½Ã »Ã °Ã ¹Ã ½ Ð ¡ Ð ¿Ã ¾Ã ¼Ã ¾Ã'‰Ã'Å'Ã'Ž Ð ´Ã °Ã ½Ã ½Ã ¾Ã ³Ã ¾ Ð ¾Ã ½Ã »Ã °Ã ¹Ã ½-Ã' Ã µÃ'€Ð ²Ã ¸Ã' Ã ° Ð ¼Ã ¾Ã ¶Ã ½Ã ¾ Ð ¾Ã ¿Ã'€Ð µÃ ´Ã µÃ »Ã ¸Ã'‚Ã'Å' Ã'‡Ð ¸Ã' Ã »Ã ¾ Ã' Ã »Ã ¾Ã ² Ð ² Ã'‚Ð µÃ ºÃ' Ã'‚Ð µ, Ð ° Ã'‚Ð °Ã ºÃ ¶Ã µ Ð ºÃ ¾Ã »Ã ¸Ã'‡Ð µÃ' Ã'‚Ð ²Ã ¾ Ã' Ã ¸Ã ¼Ã ²Ã ¾Ã »Ã ¾Ã ² Ã'  Ð ¿Ã'€Ð ¾Ã ±Ã µÃ »Ã °Ã ¼Ã ¸ Ð ¸ Ð ±Ã µÃ · Ð ½Ã ¸Ã'…. âÅ"” ОÐ ¿Ã'€Ð µÃ ´Ã µÃ »Ã µÃ ½Ã ¸Ã µ Ð ºÃ »Ã'ŽÃ'‡Ð µÃ ¹ Ð ¸ Ã' Ã µÃ ¼Ã °Ã ½Ã'‚Ð ¸Ã'‡Ð µÃ' Ã ºÃ ¾Ã ³Ã ¾ Ã' Ã ´Ã'€Ð ° Ã'‚Ð µÃ ºÃ' Ã'‚Ð ° Ð’Ð ¾Ã ·Ã ¼Ã ¾Ã ¶Ã ½Ã ¾Ã' Ã'‚Ã'Å' Ð ½Ã °Ã'…Ð ¾Ã ¶Ã ´Ã µÃ ½Ã ¸Ã'  Ð ¿Ã ¾Ã ¸Ã' Ã ºÃ ¾Ã ²Ã'‹Ã'… Ð ºÃ »Ã'ŽÃ'‡Ð µÃ ¹ Ð ² Ã'‚Ð µÃ ºÃ' Ã'‚Ð µ Ð ¸ Ð ¾Ã ¿Ã'€Ð µÃ ´Ã µÃ »Ã µÃ ½Ã ¸Ã'  Ð ¸Ã'… Ð ºÃ ¾Ã »Ã ¸Ã'‡Ð µÃ' Ã'‚Ð ²Ã ° Ð ¿Ã ¾Ã »Ã µÃ ·Ã ½Ã ° Ð ºÃ °Ã º Ð ´Ã »Ã'  Ð ½Ã °Ã ¿Ã ¸Ã' Ã °Ã ½Ã ¸Ã'  Ð ½Ã ¾Ã ²Ã ¾Ã ³Ã ¾ Ã'‚Ð µÃ ºÃ' Ã'‚Ð °, Ã'‚Ð °Ã º Ð ¸ Ð ´Ã »Ã'  Ð ¾Ã ¿Ã'‚Ð ¸Ã ¼Ã ¸Ã ·Ã °Ã'†Ð ¸Ã ¸ Ã'Æ'Ð ¶Ã µ Ã' Ã'Æ'Ã'‰Ð µÃ' Ã'‚Ð ²Ã'Æ'Ã'ŽÃ'‰Ð µÃ ³Ã ¾. Ð  Ã °Ã' Ã ¿Ã ¾Ã »Ã ¾Ã ¶Ã µÃ ½Ã ¸Ã µ Ð ºÃ »Ã'ŽÃ'‡Ð µÃ ²Ã'‹Ã'… Ã' Ã »Ã ¾Ã ² Ð ¿Ã ¾ Ð ³Ã'€Ã'Æ'Ð ¿Ã ¿Ã °Ã ¼ Ð ¸ Ð ¿Ã ¾ Ã'‡Ð °Ã' Ã'‚Ð ¾Ã'‚Ð µ Ã' Ã ´Ã µÃ »Ã °Ã µÃ'‚ Ð ½Ã °Ã ²Ã ¸Ã ³Ã °Ã'†Ð ¸Ã'Ž Ð ¿Ã ¾ Ð ºÃ »Ã'ŽÃ'‡Ð °Ã ¼ Ã'Æ'Ð ´Ã ¾Ã ±Ã ½Ã ¾Ã ¹ Ð ¸ Ð ±Ã'‹Ã' Ã'‚Ã'€Ð ¾Ã ¹. Ð ¡Ã µÃ'€Ð ²Ã ¸Ã'  Ã'‚Ð °Ã ºÃ ¶Ã µ Ð ½Ã °Ã  ¹Ã ´Ã µÃ'‚ Ð ¸ Ð ¼Ã ¾Ã'€Ã'„Ð ¾Ã »Ã ¾Ã ³Ã ¸Ã'‡Ð µÃ' Ã ºÃ ¸Ã µ Ð ²Ã °Ã'€Ð ¸Ã °Ã ½Ã'‚Ã'‹ Ð ºÃ »Ã'ŽÃ'‡Ð µÃ ¹, Ð ºÃ ¾Ã'‚Ð ¾Ã'€Ã'‹Ð µ Ð ²Ã'‹Ð ´Ã µÃ »Ã' Ã'‚Ã' Ã'  Ð ² Ã'‚Ð µÃ ºÃ' Ã'‚Ð µ Ð ¿Ã'€Ð ¸ Ð ½Ã °Ã ¶Ã °Ã'‚Ð ¸Ã ¸ Ð ½Ã ° Ð ½Ã'Æ'Ð ¶Ã ½Ã ¾Ã µ Ð ºÃ »Ã'ŽÃ'‡Ð µÃ ²Ã ¾Ã µ Ã' Ã »Ã ¾Ã ²Ã ¾. âÅ"” ОÐ ¿Ã'€Ð µÃ ´Ã µÃ »Ã µÃ ½Ã ¸Ã µ Ð ¿Ã'€Ð ¾Ã'†Ð µÃ ½Ã'‚Ð ° Ð ²Ã ¾Ã ´Ã ½Ã ¾Ã' Ã'‚Ð ¸ Ã'‚Ð µÃ ºÃ' Ã'‚Ð ° ДÐ °Ã ½Ã ½Ã'‹Ð ¹ Ð ¿Ã °Ã'€Ð °Ã ¼Ã µÃ'‚Ã'€ Ð ¾Ã'‚Ð ¾Ã ±Ã'€Ð °Ã ¶Ã °Ã µÃ'‚ Ð ¿Ã'€Ð ¾Ã'†Ð µÃ ½Ã'‚ Ð ½Ã °Ã »Ã ¸Ã'‡Ð ¸Ã'  Ð ² Ã'‚Ð µÃ ºÃ' Ã'‚Ð µ Ã' Ã'‚Ð ¾Ã ¿-Ã' Ã »Ã ¾Ã ², Ã'„Ã'€Ð °Ã ·Ã µÃ ¾Ã »Ã ¾Ã ³Ã ¸Ã ·Ã ¼Ã ¾Ã ², Ð ° Ã'‚Ð °Ã ºÃ ¶Ã µ Ã' Ã »Ã ¾Ã ²Ã µÃ' Ã ½Ã'‹Ã'… Ð ¾Ã ±Ã ¾Ã'€Ð ¾Ã'‚Ð ¾Ã ², Ã'„Ã'€Ð °Ã ·, Ã' Ã ¾Ã µÃ ´Ã ¸Ã ½Ã ¸Ã'‚Ð µÃ »Ã'Å'Ð ½Ã'‹Ã'… Ã' Ã »Ã ¾Ã ², Ã' Ã ²Ã »Ã' Ã'ŽÃ'‰Ð ¸Ã'…Ã' Ã'  Ð ½Ã µ Ð ·Ã ½Ã °Ã'‡Ð ¸Ã ¼Ã'‹Ð ¼Ã ¸ Ð ¸ Ð ½Ã µ Ð ½Ã µÃ' Ã'Æ'Ã'‰Ð ¸Ã ¼Ã ¸ Ã' Ã ¼Ã'‹Ã' Ã »Ã ¾Ã ²Ã ¾Ã ¹ Ð ½Ã °Ã ³Ã'€Ã'Æ'Ð ·Ã ºÃ ¸. Ð Ã µÃ ±Ã ¾Ã »Ã'Å'Ã'ˆÐ ¾Ã µ Ã' Ã ¾Ã ´Ã µÃ'€Ð ¶Ã °Ã ½Ã ¸Ã µ  «Ã ²Ã ¾Ã ´Ã'‹Â » Ð ² Ã'‚Ð µÃ ºÃ' Ã'‚Ð µ Ã' Ã ²Ã »Ã' Ã µÃ'‚Ã' Ã'  Ð µÃ' Ã'‚Ð µÃ' Ã'‚Ð ²Ã µÃ ½Ã ½Ã'‹Ð ¼ Ð ¿Ã ¾Ã ºÃ °Ã ·Ã °Ã'‚Ð µÃ »Ã µÃ ¼, Ð ¿Ã'€Ð ¸ Ã' Ã '‚Ð ¾Ã ¼: Ð ´Ã ¾ 15% - Ð µÃ' Ã'‚Ð µÃ' Ã'‚Ð ²Ã µÃ ½Ã ½Ã ¾Ã µ Ã' Ã ¾Ã ´Ã µÃ'€Ð ¶Ã °Ã ½Ã ¸Ã µ  «Ã ²Ã ¾Ã ´Ã'‹Â » Ð ² Ã'‚Ð µÃ ºÃ' Ã'‚Ð µ; Ð ¾Ã'‚ 15% Ð ´Ã ¾ 30% - Ð ¿Ã'€Ð µÃ ²Ã'‹Ã'ˆÐ µÃ ½Ã ½Ã ¾Ã µ Ã' Ã ¾Ã ´Ã µÃ'€Ð ¶Ã °Ã ½Ã ¸Ã µ  «Ã ²Ã ¾Ã ´Ã'‹Â » Ð ² Ã'‚Ð µÃ ºÃ' Ã'‚Ð µ; Ð ±Ã ¾Ã »Ã'Å'Ã'ˆÐ µ 30% - Ð ²Ã'‹Ã' Ã ¾Ã ºÃ ¾Ã µ Ã' Ã ¾Ã ´Ã µÃ'€Ð ¶Ã °Ã ½Ã ¸Ã µ  «Ã ²Ã ¾Ã ´Ã'‹Â » Ð ² Ã'‚Ð µÃ ºÃ' Ã'‚Ð µ. âÅ"” ОÐ ¿Ã'€Ð µÃ ´Ã µÃ »Ã µÃ ½Ã ¸Ã µ Ð ¿Ã'€Ð ¾Ã'†Ð µÃ ½Ã'‚Ð ° Ð ·Ã °Ã' Ã ¿Ã °Ã ¼Ã »Ã µÃ ½Ã ½Ã ¾Ã' Ã'‚Ð ¸ Ã'‚Ð µÃ ºÃ' Ã'‚Ð ° ПÃ'€Ð ¾Ã'†Ð µÃ ½Ã'‚ Ð ·Ã °Ã' Ã ¿Ã °Ã ¼Ã »Ã µÃ ½Ã ½Ã ¾Ã' Ã'‚Ð ¸ Ã'‚Ð µÃ ºÃ' Ã'‚Ð ° Ð ¾Ã'‚Ã'€Ð °Ã ¶Ã °Ã µÃ'‚ Ð ºÃ ¾Ã »Ã ¸Ã'‡Ð µÃ' Ã'‚Ð ²Ã ¾ Ð ¿Ã ¾Ã ¸Ã' Ã ºÃ ¾Ã ²Ã'‹Ã'… Ð ºÃ »Ã'ŽÃ'‡Ð µÃ ²Ã'‹Ã'… Ã' Ã »Ã ¾Ã ² Ð ² Ã'‚Ð µÃ ºÃ' Ã'‚Ð µ. Ð §Ã µÃ ¼ Ð ±Ã ¾Ã »Ã'Å'Ã'ˆÐ µ Ð ² Ã'‚Ð µÃ ºÃ' Ã'‚Ð µ Ð ºÃ »Ã'ŽÃ'‡Ð µÃ ²Ã'‹Ã'… Ã' Ã »Ã ¾Ã ², Ã'‚Ð µÃ ¼ Ð ²Ã'‹Ã'ˆÐ µ Ð µÃ ³Ã ¾ Ð ·Ã °Ã' Ã ¿Ã °Ã ¼Ã »Ã µÃ ½Ã ½Ã ¾Ã' Ã'‚Ã'Å': Ð ´Ã ¾ 30% - Ð ¾Ã'‚Ã' Ã'Æ'Ã'‚Ã' Ã'‚Ð ²Ã ¸Ã µ Ð ¸Ã »Ã ¸ Ð µÃ' Ã'‚Ð µÃ' Ã'‚Ð ²Ã µÃ ½Ã ½Ã ¾Ã µ Ã' Ã ¾Ã ´Ã µÃ'€Ð ¶Ã °Ã ½Ã ¸Ã µ Ð ºÃ »Ã'ŽÃ'‡Ð µÃ ²Ã'‹Ã'… Ã' Ã »Ã ¾Ã ² Ð ² Ã'‚Ð µÃ ºÃ' Ã'‚Ð µ; Ð ¾Ã'‚ 30% Ð ´Ã ¾ 60% - SEO-Ð ¾Ã ¿Ã'‚Ð ¸Ã ¼Ã ¸Ã ·Ã ¸Ã'€Ð ¾Ã ²Ã °Ã ½Ã ½Ã'‹Ð ¹ Ã'‚Ð µÃ ºÃ' Ã'‚. Ð’ Ð ±Ã ¾Ã »Ã'Å'Ã'ˆÐ ¸Ã ½Ã' Ã'‚Ð ²Ã µ Ã' Ã »Ã'Æ'Ã'‡Ð °Ã µÃ ² Ð ¿Ã ¾Ã ¸Ã' Ã ºÃ ¾Ã ²Ã'‹Ð µ Ã' Ã ¸Ã' Ã'‚Ð µÃ ¼Ã'‹ Ã' Ã'‡Ð ¸Ã'‚Ð °Ã'ŽÃ'‚ Ð ´Ã °Ã ½Ã ½Ã'‹Ð ¹ Ã'‚Ð µÃ ºÃ' Ã'‚ Ã'€Ð µÃ »Ã µÃ ²Ã °Ã ½Ã'‚Ð ½Ã'‹Ð ¼ Ð ºÃ »Ã'ŽÃ'‡Ð µÃ ²Ã'‹Ð ¼ Ã' Ã »Ã ¾Ã ²Ã °Ã ¼, Ð ºÃ ¾Ã'‚Ð ¾Ã'€Ã'‹Ð µ Ã'Æ'Ð ºÃ °Ã ·Ã °Ã ½Ã'‹ Ð ² Ã'‚Ð µÃ ºÃ' Ã'‚Ð µ. Ð ¾Ã'‚ 60% - Ã' Ã ¸Ã »Ã'Å'Ð ½Ã ¾ Ð ¾Ã ¿Ã'‚Ð ¸Ã ¼Ã ¸Ã ·Ã ¸Ã'€Ð ¾Ã ²Ã °Ã ½Ã ½Ã'‹Ð ¹ Ð ¸Ã »Ã ¸ Ð ·Ã °Ã' Ã ¿Ã °Ã ¼Ã »Ã µÃ ½Ã ½Ã'‹Ð ¹ Ð ºÃ »Ã'ŽÃ'‡Ð µÃ ²Ã'‹Ð ¼Ã ¸ Ã' Ã »Ã ¾Ã ²Ã °Ã ¼Ã ¸ Ã'‚Ð µÃ ºÃ' Ã'‚. âÅ"” ПÐ ¾Ã ¸Ã' Ã º Ã' Ã ¼Ã µÃ'ˆÐ °Ã ½Ã ½Ã'‹Ã'… Ã' Ã »Ã ¾Ã ² Ð ¸Ã »Ã ¸ Ã' Ã »Ã ¾Ã ² Ð ² Ã'€Ð °Ã ·Ã »Ã ¸Ã'‡Ð ½Ã'‹Ã'… Ã'€Ð °Ã' Ã ºÃ »Ã °Ã ´Ã ºÃ °Ã'… Ð ºÃ »Ã °Ã ²Ã ¸Ã °Ã'‚Ã'Æ'Ã'€Ã'‹ ДÐ °Ã ½Ã ½Ã'‹Ð ¹ Ð ¿Ã °Ã'€Ð °Ã ¼Ã µÃ'‚Ã'€ Ð ¿Ã ¾Ã ºÃ °Ã ·Ã'‹Ð ²Ã °Ã µÃ'‚ Ð ºÃ ¾Ã »Ã ¸Ã'‡Ð µÃ' Ã'‚Ð ²Ã ¾ Ã' Ã »Ã ¾Ã ², Ã' Ã ¾Ã' Ã'‚Ð ¾Ã' Ã'‰Ð ¸Ã'… Ð ¸Ã · Ð ±Ã'Æ'Ð ºÃ ² Ã'€Ð °Ã ·Ã »Ã ¸Ã'‡Ð ½Ã'‹Ã'… Ð °Ã »Ã'„Ð °Ã ²Ã ¸Ã'‚Ð ¾Ã ². 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Similarly, RecOrgSeed has real potential to advance democracy in the agricultural domain and help recommend organic seeds to growers (Markellos et al, 2009). In fact, one of the major advantages of personalised web services is the increasing array of options provided to businesses. TV listing services are likely to be increasingly popular in the digital age. â€Å"The Internet has brought unprecedented access to vast quantities of information. However, in recent times, the pr oblem of information overload has become more and more marked, and we are now reaching a point where it is becoming increasingly difficult to locate the right information at the right time† (Smyth and Cotter, 2005). Personalised webs are thus designed

Tesla in Automotive industry Strategy project Essay Example for Free

Tesla in Automotive industry Strategy project Essay 1. Introduction The Encyclopaedia Brittanica defined the automotive industry as all the companies and activities involved in the manufacturing of motor vehicles, including most components, such as bodies and engines; but excluding tires, batteries and fuel1. The automotive industry started with the production of what is widely considered to be the first ever automobile, the Benz Patent-Motorwagen in 1886. Although the first car was originally manufactured in Germany, in the many decades to come, the United States led the world in total automobile production until the start of the 21st century, when China took the top position. Today, China produces nearly 20 million units per year, almost double the amount of the United States. It is one of the world’s most important sectors when measured by revenue and it is a business that is still growing significantly. Last year for example, over 87 million automobiles were produced worldwide, a 3. 6% increase compared to the year before and a 43. 82% increase compared to 20032. Needless to say, the automotive industry is big business and it is very probable there are business opportunities that are yet to be exploited. Tesla Motors is an American car manufacturer that tried to exploit such a business opportunity. It’s an American company that designs and manufactures electric vehicles and electric car components3. Founded in 2003, Tesla’s goal was to lessen the world’s dependence on petroleum-based transportation and drive down the cost of electric vehicles. Moreover, Tesla’s aim is to prove that electric vehicles can be awesome as well4. This might not sound particularly unique, but Tesla Motors does have a very distinct strategy in the sense that it wants to enter the automotive market by first focusing on high-end luxury cars and sports cars. Later, when Tesla’s products and consumers acceptance have matured, they would move into the market for the middle-class consumer, which is larger but also significantly more competitive5. The idea is to establish a strong brand name at first, which will aid the company in a later stage when the decision is made to start producing lower-priced automobiles. Tesla’s first 1 http://global. britannica. com/EBchecked/topic/45050/automotive-industry 2 http://www. oic a. net/category/production-statistics/ 3 http://www. te slamotors. com/ 4 http://www. teslamotors. com/about 5 http://www. greenc arreports. com/news/1022275_msnbc-calls-ev-drivers-lunatic-fringe 3 model, the Roadster, had a base price of approximately $100. 0006. Their second car, Model S, is priced at $63. 750 including a $7. 500 tax credit. The company now has plans to launch a $30,000 small SUV the Tesla Model X 7. Eventually, Tesla wants to become a mass producer of electric vehicles and service both upper- and middle-class customers8 This discussion aims to analyze Tesla’s strategy. It is clear that Tesla has a very differentiated strategy and we will want to determine whether or not Tesla is likely to succeed in achieving its goals and become a successful enterprise. Firstly, we will take closer look at the ‘environmental’ automotive industry using Porter’s theory. Secondly, we need to closely look at Tesla’s strategy. How will Tesla try to win a respectable share of the market? As mentioned before, Tesla is a very young company and it will inevitably face fierce competition from incumbent firms. A clear plan to establish a foothold in such a market will be essential for the firm’s survival. The next step is to see if Tesla identified all relevant factors and industry forces, and if it has defined a strategy that takes all of these elements into account. It will surely need to attain a unique strategy if it wants to position itself in a key position in the market. What is it exactly that differentiates Tesla from other car manufacturers and in what way could this be beneficial for the firm? Does their strategy have a high chance of success? How can Tesla create a network of electric chargers? Before evaluating Tesla’s strategy, we must first clearly take a closer look at the company Tesla Motors itself and define the market in which the company is active. Even though they are currently operating in a smaller niche market (mid to high-end luxury cars), the plan is to eventually address the middle-class consumer and enter the ‘standard’ automobile market. This will inevitably complicate our discussion but it is essential for determining the chance of success. The paper includes a discussion on the high entry barriers that are typically associated in the automotive industry and the possible presence of strategic entry barriers raised by incumbent firms to reduce the likelihood of new entrants. We will also mention any other strategies adopted by firms in the automotive industry who want to improve their competitive position. Furthermore, the extent to which the industry is concentrated will be discussed, as well as the possible presence of strategic complements and substitutes. Moreover, Tesla will also need to take the non-market environment into consideration. Typical for the automotive sector is that it is an industry with very strict safety regulations. Tesla of course will also 6 http://jalopnik. com/5135290/tesla-increases-prices-on-already-ordered-roadsters 7 http://onpoint. wbur. org/2009/09/25/teslas-elon-musk-on-a-sub-30000-electric-car 8 http://www. marketwatch. com/ story/strategic-corporate-profile-of-tesla-motors-global-operations-2014-01-13 4 have to face the challenge of producing vehicles that respect these requirements. On top of that, the relatively recent discovery of global warming, partially caused by car emission (CO2), has led to the implementation of a series of emission standards that aim to reduce the greenhouse gasses emitted by petroleum-powered vehicles. This may not seem relevant for Tesla Motors at first since its goal is to produce electric vehicles. These regulations are however accompanied with a credit system, which means that car manufacturers that do not meet the standard are penalized and have to buy credits from other manufacturers that have a surplus of credits9. Since Tesla Motors only produces emissions-free vehicles, it has a major surplus of credits which it can sell to other car manufacturers. General Motors for example has to buy additional credits from Tesla in order to respect the regulation. This implies large transfers of wealth across car manufacturers. As a result, companies selling cars with a (too) high emission must raise prices to pay for the credits. On the other hand, the beneficiaries of these wealth transfers such as Tesla can now use the extra revenue to lower prices and take on a more competitive position in the market. All of this will of course be discussed more thoroughly in our discussion below. The paper concludes with a summary of the discussion and our prognosis regarding the future success of Tesla Motors in the automotive industry. 2. Market definition This paper only looks at models available in the US because it’s the largest electric car market, the EU is the second largest market but is much more complex because EU-countries have different legislation for electric cars. Some countries have large subsidies for electric cars and thus large market shares such as Norway, on the other hand some countries have almost no market share. The Model S is the only available model at the moment targeting the middle to high-end luxury car market. This model costs between 63. 750$(base model, 7500$ tax credit) and 125. 220 $(full option, 7500$ tax credit). 10 Because the model S is all electric, we can compare the car to slighter cheaper models because of lower long term ownership cost thanks to lower cost for electricity compared to fuel. The base model is a full-size 5 adult seat sedan powered by a fully electric 60 kW-h motor achieving 302hp. Top speed is relatively low at around 200km/h but acceleration is very good at 5. 9 seconds to 100 km/h, this is typical for an electric engine. More expensive models offer better range and performance and a warranty with unlimited kilometers on the battery for 8 years compared to 200. 000km for 8 years on the base model. 9 http://mitsloanexperts. mit. edu/californias-auto-emissions-policy-hits-a-tesla-pothole/ 10 Teslamotors. com 5 We will consider the mid to high-end luxury market containing one electric the Tesla, a couple of hybrids and a lot of traditional cars. Mid-end starts at prices of approximately 50. 000 $ with cars such as the BMW 5-serie, Audi A6 and Mercedes E-class. 11 High end stops at prices above 130. 000$. For the following analyses we will sometimes look at broader markets containing cheaper alternatives because even though these cars aren’t substitutes they are still relevant. Research show that tesla owners were most likely to previously own a Toyota prius hybrid or secondly luxury BMW and Mercedes. 12 3. Industry attractiveness and profitability In this section the overall attractiveness of the ‘environmental’ automotive industry is assessed using Porter’s influential five forces model. The term environmental indicates those vehicles that do not solely rely on the combustion of fossil fuels to power their engine. Examples are electric vehicles, hybrid vehicles or plug-in hybrid electric vehicles (PHEVs). Both the pure electric automotive industry as well as the overarching environmental automotive industry is presented, as these cannot always be seen separately. In his model, Michael Porter identifies five key competitive forces that determine the structure and profitability of a certain industry. The five forces are the bargaining power of suppliers, the bargaining power of buyers, the threat of substitutes, the threat of entry and the rivalry among existing competitors. Porter’s model enables managers, in an easy and straightforward way, to understand their industry environment and to shape their firm’s strategy accordingly. As a rule of thumb, the stronger the five forces, the lower the industry’s profit potential and hence the industry’s attractiveness to competitors. The most influential forces that have shaped and continue to shape the environmental automotive industry are discussed in the following paragraphs. A first restraint on the overall profitability of a firm is the bargaining power of its suppliers. For the environmental automotive industry the bargaining power varies among the suppliers of different components. An important component in the construction of hybrid and electric vehicles is the battery. The bargaining power of the battery companies is low as there are a lot of manufacturers present on the market. Tesla Motors, for instance, buys Li-ion cells from different manufacturers. Consequently, in the case any problems occur with a particular battery supplier, Tesla can easily switch or threaten to switch to other suppliers at low costs. Among others, Tesla works together with Daimler AG and Panasonic to develop battery packs and chargers (Boyke, Cheng, Clevers, Schroeder, Strupp, 2010). Another important component of any vehicle is the chassis. For the construction of the chassis 11 http://buyersguide. caranddriver. com 12 h%p://www. wired. com/2014/03/tesla-model-s-toyota-prius/ 6 specialized engineering skills are required. These skills can often be obtained through strategic partnerships with other car manufacturing companies. In the case of such strategic interdependence the bargaining power of the suppliers is higher than in the ‘take-it-or-leave-it’ battery case. In the past Tesla had an exclusive partnership with Lotus for the physical construction of the Roadster13. As of recently Tesla and Toyota Motor Corporation also agreed to cooperate on the development of electric vehicles, parts, the production system and engineering support14. In conclusion, however, the overall bargaining power of suppliers in the automotive industry is low. The supplier firms must contend with substitute products for sale to the industry. Tesla has more than 150 suppliers around the world, which provide over 2000 parts to Tesla. For the production of the Model S, Tesla uses a highly integrated manufacturing approach, even negotiating with suppliers to manufacture products on site to use the excess capacity. In this way, the integrated approach enables Tesla to alleviate its dependence on supplier performance (Boyke, Cheng, Clevers, Schroeder, Strupp, 2010). A second force that determines the profitability in an industry is the bargaining power of buyers. The bargaining power of buyers concerns the pressure buyers can put on the margins of producers by demanding a lower price or a higher product quality. In the environmental automotive industry the bargaining power of buyers is rather low. For Tesla in particular this is even more so. For starters, Tesla does not sell products in bulk. This means that for the consumers that purchase the finished products no real scale effects are present. Moreover, Tesla has a quite unique position on the market. Tesla is the only manufacturer on the US market that produces high-end, full electric cars that can drive autonomously for over 400 km. By employing a highly skilled, technocratic labour force and management team, Tesla has branded itself as a cutting-edge, innovative firm. They manufacture high quality electric vehicles that are very performing while being environmental-friendly and fun at the same time. The buyers of the Model S also have the possibility to entirely customize the vehicle to their taste. This creates a sense of exclusivity among the clients. Besides the B2C applications Tesla has also established a strong position in the B2B environment 15. Tesla for example licenses its patented processes and technologies to other companies. Especially in the area of battery technology 13 http://www. teslamotors. com/blog/lotus-position 14 http://www.teslamotors. com/about/press/releases/tesla-motors-and-toyota-motor-corporation- intend-work-jointly-ev-development-tm 15 http://www. slideshare. net/joseangeldf/darden-school-of-business-tesla-strategic-analysis 7 and the construction of ‘supercharging’ stations Tesla has a lot of expertise16. The proper licensing of these assets will benefit the entire environmental automotive industry as a whole. An especially important force in the electric automotive industry is the threat of substitutes from outside the given industry. Hybrid vehicles and more specifically PHEV provide a similar functionality as the full electric vehicles. Those manufacturers within these strongly related industries, which produce vehicles and services with an attractive price and performance, pose a serious threat to the established electric car manufacturers. For the Model S the most important substitutes are those mid to high-end hybrids. These vehicles offer low emissions and a good fuel economy at a similar price as the Model S. The most successful alternatives within the US automotive industry are discussed in the next chapter. In the specific price range of the Model S the threat of substitutes is still limited as Tesla is gradually positioning itself as a high-value, exclusive and environmental brand with a growing number of enthusiasts17. Nonetheless, a possible future expansion into the mid-end and low- end market segment will significantly increase the threat of substitutes. There are, however, some complementing factors that might reduce the threat of substitutes both for Tesla as well as the electric automotive industry in a whole. The scope for future development in battery technology, the presence of several tax and parking incentives for electric vehicles and the expected rise in oil prices in comparison to electricity prices might spur the attractiveness of the electric automotive industry. These market dynamics both play on the level of customers as well as producers. One possible negative factor in the realisation of potential sales is the low availability of charging and home charging facilities. However, Tesla Motors is addressing this issue by investing heavily in strategically located charging facilities and by expanding the power and endurance of the battery pack 18. Tesla’ s battery pack technology is critical to the company’ s positioning and competitive differentiation. The low cost of the battery pack allows Tesla to not only design cars with battery ranges greater than the competition but also place equal emphasis on design, performance, and energy efficiency. On the short term, the threat of new entrants in the electric US market is rather limited because of several entry barriers. The industry is characterised by high capital requirements and high sunk costs. 16 http://www. sl ate. com/articles/technolog y/technolog y/2013/05/tesla_model_s_the_electric_car_compa ny_is_a_little_bit_apple_a_little_bit. html 17 http://www. wikiwealth. com/five-forces:tesla-motors, http://www. teslamotors.com/blog-and-press- releases. 18 http://www. slideshare. net/joseangeldf/darden-school-of-business-tesla-strategic-analysis, http://www. reuters. com/article/2014/02/26/us-tesla-battery-panasonic-idUSBREA1O1MF20140226, http://www. t eslamotors. com/supercharger 8 Moreover, advanced, often patented, technologies and processes as well as a highly skilled workforce are required to successfully manufacture an electric car. The success of a firm in the industry is also largely determined by its brand image and the realisation of economies of scale19. Therefore, it is not easy for a potential new entrant to establish a foothold. This is even enhanced by the fact that the incumbent firms have a large and flexible production capacity that can be used as a retaliation device in case of entry (Boyke, Cheng, Clevers, Schroeder, Strupp, 2010). However, established vehicle manufacturers with deep pockets that have currently missed the ‘environmental train’ or disruptive innovators like Tesla Motors might overcome these entry barriers in the long run. The current competition in the US environmental automotive industry is moderate. Only a few major brands are competing. Because of the high entry barriers and the threat of substitutes not a lot of brands risk burning cash in an innovative and insecure business. However, as the sector matures and more people consider switching to an electric car this will change. In a recent report of the Electric Vehicles Initiative (EVI) a global goal of 20 million electric passenger cars, including plug-in hybrid vehicles, battery electric vehicles (BEVs) and fuel cell electric vehicles, in stock by 2020 is set forward. This is still a long way to go as the total worldwide electric vehicle stock at the end of 2012 only amounted to a large 180. 000 units. In 2012, 38. 585 PHEVs and 14. 592 BEVs were sold in the US. The cumulative stock in the US in 2012 was 71. 174 units (Clean Energy Ministerial, Electric Vehicles Initiative, International Energy Agency, 2013). In 2013 roughly 96. 000 electric vehicles were sold in the US environmental automotive industry(including hybrids)20. The three top selling brands are the Chevrolet Volt, the Nissan Leaf and the Tesla Model S. It is clear that the popularity of electric vehicles has significantly increased over the last few years. It is expected that this trend will only continue in the future as the number of models on the market increases. The share of electric cars is still only about 3,5% of the total number of cars that are sold annually in the US market21. Hence, the growth potential of the environmental automotive industry is huge, this both on a domestic as well as an international level. In conclusion of this section an assessment is made of the overall profitability of the environmental automotive industry. As previously argued, the bargaining power of suppliers and buyers is rather limited in the industry. Therefore, the vehicle manufacturers can attract more profits than their up- and downstream partners. The industry is also characterised by several entry barriers, especially on the 19 http://www. wikiwealth. com/five-forces:tesla-motors 20 http://www. greencarreports. com/news/1089443_plug-in-electric-car-sales-for-2013-almost-double- last-years 21 http://electricdrive. org/index. php? ht=d/sp/i/20952/pid/20952 9 short term. The effective prevention of possible entrants reduces the pressure on prices and allows incumbent firms to attract a significant share of the profits. The threat of substitutes is one of the most important restrictors on the profitability within the industry. Because of the similarity in functions between electric brands and hybrid brands it is important for the incumbent firms to create a positive consumer image towards their products. The growth potential of EVs is the most important driver of future profitability of the industry. Until now incumbent firms have undertaken a lot of RD initiatives in the area of battery and charging technologies. The sales numbers in the US market show that these investments are finally starting to pay-off. In the long run, with a growing global popularity of EVs, it is to be expected that also other companies will consider entering the environmental automotive industry. 4. Tesla in the market Tesla differentiates itself by producing environmental responsible cars that have all the benefits of a luxury vehicle. By equally emphasizing on speed, handling, design, comfort, and zero-emissions, Tesla creates a unique balance between performance, efficiency and aesthetics. Through the offering of this first fully electric luxury sedan car, Tesla attained a first mover advantage. Together with its ‘Silicon Valley’ culture, an approach that is innovative, competitive, and effective, Tesla achieved a solid brand name in the automotive market. (Mangram, 2012) Tesla’s battery technology is also critical to the company’s competitive advantage. With its cutting-edge battery technology, combined with essential technology research, Tesla is able to design and produce electric cars with a far greater range than its competitors. Its lithium-ion based battery, for instance, is 250 kilograms lighter compared and has a range of up to 500 kilometers. Bron ? vergeleken met wat ? But even with a supercharger a full charge is approximately one hour. Moreover the company produces many of its key parts in-house, thus making it harder for competitors to replicate. With the expansion of its own retail shops and the establishment of a network of free recharging points for its customers, Tesla keeps challenging the traditional car companies (The Economist, 2013). Tesla’s main strategy can be seen as a reflection of the innovative marketing approach Apple used for its ingenious technology. It holds that any new technology is often very expensive and wealthy customers are regularly the first to accept it. Consequently, Tesla produced its first vehicle, the Roadster, for the premium sports car consumer segment. Nowadays, with the production of the Model S Sedan, the middle to upper- middle class consumers are being targeted. Finally, by 2015 Tesla plans to produce and market an electric car available at a mass-market consumer price range (Tesla Motors, 10 2014). Although this ‘Apple Computer’s business model’ is considered to be rather exceptional in the automobile industry it helped the company to position itself as groundbreaking, self-determining, and cool. Tesla BMW Daimler AG General Motors Toyota Revenue 2 billion 60 billion 117 billion 155 billion 22 trillion Net Income -74 000 2 billion 6,4 billion 5,35 billion 962 billion Sales Growth 387% 7,2 % 3,22 % 2,08 % 18,73 % The luxury car market is highly competitive, with several incumbent companies with loyal customers. Tesla’s main competitors in the luxury car segment are BMW, General Motors, Toyota and Mercedes. While the number of any competitive electric car is still low, an increase can be expected. General Motor’s Chevrolet Volt is one of the main competing vehicles in the market. It covers a wide target market and comes at a notable lower price than Tesla’s Model S. Toyota remains the global leader when it comes to selling hybrids. Although Toyota has 4 electric cars (the Prius, the RAV4 EV, the FCHV fuel cell car, and the Scio IQ-EV), it strategically collaborates with Tesla to improve the electric car development. This alliance has been one of the main factors of Tesla’s growth as Tesla consumers can get customer service in Toyota sites (Toyota Motor Corporation, 2014). The chart compares Tesla’s main competitors on the basis of revenue, net income and sales growth. As we can see, its sales growth is overwhelming. Given that is a rather new company, it indicates its rapid expansion on the electric car market. However, Tesla’s net income remains negative. Nonetheless, the company’s share is currently being traded at 20 times its earning, and as the company continues to grow these numbers are expected to rise. According to an article by Wall Street, 43 new hybrid, electric, and fuel-cell vehicles will be produced in the US market by 2015. Moreover, the market share of alternative fuel cars will increase from 3% in 2012 to almost 5% in 2014 (Wall Street, 2013). New electric vehicle entrants and existing plug-in hybrids manufactures will continue to compete with Tesla in the near future. While the traditional car manufactures are firmly entrenched, Tesla’s competitive advantages could develop to the securing of a significant market share in the electric car market. 5. Sustainability of the competitive advantage. This chapter analyses the degree of sustainability of Tesla’s competitive advantage. First the relevant trends and developments in the automotive industry are briefly reviewed. Furthermore, the 11 predominant isolating mechanisms in force given the market position of Tesla are discussed. We argue Tesla is a textbook example of a disruptive technology. To conclude, strategy recommendations hereupon are formulated. The primordial focus of our analysis shifts in this chapter from the luxury car market to the overarching automotive industry. The rational hereof is clear-cut. On the one hand, the trend analysis for the automotive industry applies to and sufficiently covers the luxury car segment. On the other hand, Tesla continuously voices the strategy to level down through the segments. Furthermore, the majority of car manufacturers produce for multiple segments of the industry. The sustainability of Tesla’s competitive advantage thus strongly depends on the industry rather than the Model S market segment. 1. 1 Trends in the automotive industry The automotive industry is, may be argued, rather conservative. The market structure is little dynamic, without change in market leading firms for long. Furthermore, the industry evolved the past century merely through optimising the traditional ‘automobile’, with limited major breakthroughs. To illustrate, though fuel efficiency and exhaust of the combustion engine has greatly improved, working principles remain unchanged. The emergence of (electrical) alternatives that are sold commercially is only a recent phenomenon. We review three developments that will impact the automotive industry. First, the society-wide surge of environmentalism a fortiori impacts the automotive industry. A thickening body of government actions forces car manufacturers to produce cleaner cars. This both directly, through legislation (e.g. CO2 output limits for new cars), or indirectly by altering consumer behaviour through excises or tax incentives. Furthermore, consumers are increasingly environmentally conscious. Bottom-line, car sales undeniably grow more eco-friendly. Furthermore, the panoply of driver assisting technology that brakes automatically for obstacles or parks the car will be further developed. Self-driving cars may be short-term everyday reality, with Google pulling the cart. Lastly, Gen Y is argued to focus on services rather than ownership. The emergence and success of car sharing by Zipcar or Cambio illustrates this shift in mentality for the automotive industry. 1. 2 The isolating mechanisms The electric car is strongly based on the century old inventions of Serbian engineer Nikola Tesla. We nevertheless argue that the electric car is a text book disruptive technology. This technology, spearheaded by Tesla, will herewith potentially overturn the automotive industry, challenging the 12 incumbents. The early-mover advantage in this creative destruction may enable Tesla to sustain its competitive advantage. The disruptive technology concept is extensively reviewed in the of literature. We apply the framework to the Tesla case. First, the environmental movement and increasing fuel prices created momentum for alternatives of the traditional combustion engine. Both incumbent car manufacturers and many start-ups invested in research. The hydrogen car made the press as a promising technology, but proved little feasible. Eventually the electric car showed market-viable. Many innovators inter alia Fisker, failed. However, as statistics dictate tech start-up Tesla got ahead in the race at the expense of dominant car manufacturers. The 2400 Tesla Roadsters produced, sales manifestly unattractive   toincumbents, were a great success and learning opportunity for the start-up. The Tesla Model S unprecedented battery range no longer forces consumers to trade off fuel efficiency for convenience. Herewith it can shift from niche product for wealthy eco-hipsters to head on competition for the traditional luxury sedan. The Model S proves superior to its competition threefold. First, the position of the battery pack lowers the gravity centre of the car for superior handling (and creates a spacious trunk in the back and front). The electric engine also delivers instant torque, further allowing sporty driving. Furthermore, the Model S was granted a record safety score of 5,4 out of 5. Lastly, electric engines are maintenance free. Note that the electric car still offers greater potential for technological progress than the more tried and tested combustion engine. The incumbent firms are wary of this potential shift to electric for the automotive industry, note the growing number of electric cars offered. However, extensively studied, the difference in investment dynamics with nimble start-ups impedes them to appropriately and successfully commit to the disruptive technology. The sunk cost and replacement effect are strong in this case. Therefore, it is Tesla that has a head start, with Daimler and Toyota asking the new kid on the block for help. The early-mover advantage of Tesla will sustain its competitive advantage threefold. First, we consider the economies of the learning curve. The first car manufacturer to fully grasp the paradigm shift Tesla benefits hereby manifold. The design-from-scratch approach is inevitable to exploit the electric car technology to the full. The Model S is a thus a step ahead of the build-on competitors, quickly adding to Tesla’s experience with every unit sold. Furthermore, the superior battery packs are en route to continue to offer greater range and faster charging at a lower unit cost. Note that Tesla supplies its electric powertrain to Toyota and Daimler, further adding to its cumulative experience. Moreover, the strong experience gained is further protected from imitation through multiple patents. The literature further arguments the reputation for quality to be an important source of early-mover advantage for experience goods. Thus, the brand image of an electric car brand may be considered important, notwithstanding the ubiquitous possibilities for test drives. Tesla has a rock solid reputation 13 for quality, though much like Apple it has irrational haters22. To illustrate, the Tesla recall threat due to 3 car fires was resolved by an overnight software update that would slightly raise the Model S when driving on the highway. The Tesla stock price had a field day23. Furthermore, the Model S production cannot keep up with sales. Herewith, Tesla doesn’t spend a dollar on marketing. Thirdly, Tesla benefits from network effects to sustain its competitive advantage. Tesla heavily invests in the supercharger network, that quickly expanding adds to the convenience of driving an electric car station by station. For competitors it is meanwhile.

Callaway Golf Company: Analysis

Callaway Golf Company: Analysis The driver of the Callaway Golf Company is a world-class institution designed to provide a clear advantage, and to please different golf products, including breakthrough technology the backup these products significantly superior customer service, and generate a return to shareholders the cost in excess of capital. CGC was led by Ely Callaway, a powerful motivator who defined the companys culture. Its a world famous golf brand of club and product. CGCs sales had increased from 1988 to 1998. However, CGCs sales have decreased after 1999. What are the problems to stop that eagle? In fall 1999, Callaway faced these questions; the answers would guide him in refocusing CGCs retail channels, new-product development, and marketing strategies. In my case study, I will focus on new-product development and described my plan. Logistic include products transport, warehouse, and information processing center. Callaway Golf Club is in expensive price, but popular amateurs and professionals alike. Through its website and golf sporting goods stores, sporting goods retailers, large shopping malls selling its products in over 100 countries and regions,.(Hoovers, Dec) External Environment CGC is in the Cash cow. It means high relative market share and low market growth rate. Thats because CGC is well known in the world and their products in a lots of retailer stores and the clubs are famous. When Callaway buy the company, his first initiative is to develop original products. Product of golf innovation and superior performance is very important, because the equipment is considered to have a significant impact the performance of the players. In addition, innovation is very important too, because the CGC technology leader in sales of its premium products continue to exceed our customers expectations. However, his competitors more focus on specific target market. The technical quality of the product, to enhance the CGC of high quality brands and keep customers to replace the brand. The impact of the external environment, customers are more likely to have special clubs and low cast. To pay the annual high. The CGC is located in Carlsbad, CA(CGC official website) which full of sunshine. It is usually a good place to travel and enjoy golf. People in there might feel more relax than other states. Also, in CA, the employees are enough to do the work. Analysis For the external analysis, the company has a lot of opportunities. Many sports good manufacturers are expanding in the golf market. The aging of the worlds population, many old people play golf, they have flexible income to buy golf equipment. Also, in New England state, Mid- Atlantic state and parts of south west, there are many golf players and the number is increasing. (New York Times. Feb) In Figure 3, CGC strengths are new-products development and well known in the world. The weaknesses are high prices and company relied more heavily on off-course shops. The opportunities are new-products on existing markets and marketing strategies. The threat is new-products sales decrease, low prices, cannot have good value. I will talk about products transport and warehouse in my first step, information processing center will be a follow page. The catastrophic storm affects not only the golf round in the storm, but a significant period of time. The external analysis will change, because face different economic and compare the situation in the global market. There are several reasons that will treats the external analysis. The high rate of unemployment rate and the increase in the level of consumer debt. Rejected consumer confidence and spending is increasing year by year. The most important reason is that the increase in the euro against the U.S. dollar, sales in euros had a negative impact. For internal analysis, small golf club manufacturers, new technologies and new production methods to become the worlds largest manufacturer of premium golf clubs and a dominant force in the industry. (ELY: NEW YORK) The CGC sell more units, the highest price of more equipment than any other company in the business of golf. This is a successful marketing decisions and strategies. , And provide high quality at a high price sales. People will be willing to buy products and interest rates high. Callaway consumers can trade allowances. From their club to the new Callaway clubs. This option is for consumers to upgrade their equipment. However, the internal analysis is also have weaknesses. Callaway marketing is focused on promotion, by professional players. The company tracks imitate, resulting in higher administrative costs and loss of income, this is very difficult. Global Manufactory and Warehouse CGC need to set up manufactory in different countries for new-products transporting and saving. In figure 1, I can clearly find that CGC is in the Product development square, the top right side. It means new-products for the existing markets. To achieve that, CGC had to consistently be on the leading edge of technology and to continually exceed customers expectations (CGCs case page 505). CGC need to make new-products to continually exceed customers expectations. But that CGCs biggest challenge, therefore, was to have products differentiated not only from competitors products but also from its own. If a product stayed in the pipeline too long, even if it was the best product, its sales would begin declining. This decline occurred because the people who really wanted the product would buy it within the first two years of its introduction (CGC. 4). The key word is pipeline. What is that? Its a conduit of pipe, especially one used for the conveyance of water, gas, or petroleum products( http://www.thefreedictionary.com/pipeline). Yes, products transport. CGCs wasted time in new-products transp ortation. For instant, main manufactory transports new-products to global market need a month. If CGC has global manufactory, they just need a week or least in the transportation. That is the reason why manufactory set in foreign countries is very important stratagem. For instant, Apple Co. set his manufactory in China, cheap labor and costing, and than area manager saved those products in their warehouse in location and reported main logistic manager how many products they reserved. Marketing research, area manager build profitable relationships and create customer delight and reported main company about their areas demand. And they made every months demand figure for data copy. Manufactories know how much product they need to make and warehouse will has enough room for new-product and old one. Aside from that, global warehouse good at fix that demand exceeds supply and supply exceeds demand problems. In CGCs case, manufactory made new-product and transport to off-cause retailers h ave at least two problems. One is transport slowly, wasting time and declining value of new. Another problem is retailer hasnt enough room for new-products. The second question CGC tried to use other way to fix. Closeouts generally occurred when existing equipment was discontinued to make room for new products or when CGC had too much inventory itself and wanted to get rid of it. At the time of a new-product introduction, for example, if a retailer had eight of the previous clubs left in inventory, CGC would supply the store with one more new club for free, which brought down the average cost of the remaining inventory. Once a new product was introduced, the retailer had the discretion to mark down the remaining inventory to a price at which it would sell (CGCs case page 514). Its helpful to make room for new-products and low price to sell closeout. In 1999, CGC held its own closeout and sold $40 million of excess inventory of Great Big Bertha, Biggest Big Bertha, and Great Big Bert ha irons to the market at a lower price (CGCs case page 514). If they have global warehouse, that would be saving resource and decreasing supply exceed demand risk rate. Information Processing Center Information processing center is the place that customers require report department. Their have information collect and transmit system to support manufactory, warehouse, and logistic manager or decision center. In case, CGCs customers are from True friends shift to Butterflies. Customers are no longer loyalty and they just need the products to play golf thats it. New-products are the way to continually exceed customers expectations, thats a reason why CGC need to know what customers needs and wants. Golf was a difficult game whose participants emotions ranged from frustration to addiction, with passion and fun mixed in. Even when played in teams, golfers were very competitive with themselves. Golfers often blamed their equipment for their poor play and thus often wanted to update their clubs (page 506). Those are all different levels golfers wants and needs, high-level golfers doesnt matter what type of club they used. Average golfers want to play golf and win the game in golf clubs, so they will keep the clubs. Although ones mental state and skill level had much to do with on-course achievement, in golf, unlike almost any other sport, the equipment also had a significant effect on a users performance. Even though highly skilled golfers would play well no m atter what type of club they used, average golfers were able to see noticeable improvements in their game when they used premium equipment. Beginning golfers also benefited because the more forgiving clubs allowed them to make ball contact sooner, frustrating them less so they would not quit the sport prematurely(case page 506). Beginning golfers would more advice of salespeople. For a beginning golfer, buying new clubs was a daunting task. Retail shops offered a wealth of options that forced beginners to rely on the advice of salespeople(page 507). CGC need to have those require from information processing center and make marketing strategies, refocusing on retailer. For example, focus on salespeople training for new-products promotion. For a beginner, salespeople can promote new-products or some old-model with 30%-50% discount. Old-model with discount would easier for people needs. It would not cast a lot of money and good for closeout from warehouse. And CGC gives those salespeop le who are selling master 10% of $500 units sold encourage and 20% maximum. Those encourages also be used to information processing center to collect information from customers demand. And transmit this information to decision center. Summarize CGC has a premium pricing strategy. It provides a high-quality product premium average players who want the performance benefits of the product. Callaways strategy is successful, mainly because of its innovative edge. In addition, the average golfer that their products provide performance advantages. The country has contributed to the success of the industry. During this time the public interest in golf increased a lot. In addition, the market is not over saturated, the Internet is not in selling products an important factor. Establish a global manufacturer and warehouse sales will add new products and maintain profitability. And information processing center is useful to study the market and customer feedback and requirements. This will help from the external environment and threat reduction rate. Cities Callaway Golf Company. New York Times, 8 Feb 2013. Web http://topics.nytimes.com/topics/news/business/companies/callaway-golf-company/index.html Callaway Golf Company Company Information. Hoovers, 31 Dec 2012. Web http://www.hoovers.com/company-information/cs/company-profile.Callaway_Golf_Company.fd42e2e0f3140749.html Callaway Golf Company (ELY: NEW YORK). Bloomberg BusinessWeek, 2 Feb 2013. Web http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=ELY What is involved in an ethical business? What is involved in an ethical business? Nowadays in our global world, national and international competition forces businesses to act in certain ways to achieve particular goals. Every company environment is made up of different cultures, values and believes which makes ethical issues to a complex topic. What is involved in being an ethical business and what are the benefits and disadvantages of being socially responsible? The following assignment explains the need for and some aspects of ethics in companies. It also gives a definition and a brief description on problems arising throughout global businesses and reviews a number of ethical frameworks and their application in company policies and practices. The assessment summarizes different theories, styles, and advantages. It also compares disadvantages and addresses the importance of company profits. It will sketch ethical concerns supported by case studies. To complete the assignment adequate grounds for a conclusion will be assessed and own judgment will be added. Introduction In the early 1980s Britains estimated energy bill amounted to over twenty billion pounds per annum. Throughout the 1970s continually rising fuel prizes had a direct and damaging impact on business costs and profits. Energy use, graphs and tables (1995-2002) Available from: www.dti.gov.uk/graphs/521chart.gif [Accessed 1/12/2005] People and organizations are increasingly concerned that supplies of energy and materials are likely to become scarcer and more expensive. Fossil fuels have finite geological limits and are subject to political, environmental and social questions. Whatever alternative sources may be developed in the future, days of plentiful and cheap energy are not going to return. Debates on business ethics are concentrating on social and ecological responsibility of companies within society which is regarded to be crucial in the external self-presentation and public perception of (economic) organizations. In satisfying our needs, business must be aware of those diverse topics and should aim on achieving a sustainable development. Sustainable development meets the needs of the present generation without compromising the ability of future generations to meet their own needs. Companies positive responses to such issues are rarely altruistic. It is often for their own public relations or enforced by legislation. Findings-main facts about business ethics What does the word ethics mean? The word ethics originates from the Greek word ethos, meaning custom or character. Definitions have included phrases like the science of the ideal human character or science of moral duty. What defines business ethics? Ethical business issues are identifiable problems, situations or opportunities requiring a choice between several actions. It is a set of values, beliefs, goals, norms and responsibilities that members of an organization recognize and share. Business ethics and morality refer to well based standards of right and wrong and prescribe what humans ought to do- usually in terms of rights, benefits to society, or specific virtues. It also relates to how a company conducts its business to make profit. What is an ethical business? An ethical business focuses on giving positive contributions (i.e. providing goods, services) to the community without causing damage to the environment, exploiting its workforce ( paying low wages), using child labor, or producing products which are dangerous content. A company will seek to balance financial and human needs of their stakeholders (employees, customers, suppliers and shareholders) and ensure that it is ecologically sustainable. Corporate businesses are undertaken to create an environment of strong held values, tradition and culture. What relevance do ethics have in business? Companies do not operate in a vacuum, they are part of society. People expect certain standards of behavior from businesses (i.e. addressing its environmental impacts; provide fair salary to employees that can increase motivation). According to MORI research in July 2002, 80 % of the UK public believes that: Large companies have a moral responsibility to society. The 2002 major national survey of public perceptions of energy use (2006) Available from: http://www.tyndall.ac.uk/index.shtml [Accessed 10/05/2006] Corporate ethics- A growing trend In a world of finite resources, wasteful use of energy/materials is increasingly regarded as anti-social behavior and subject to diverse geological and political constraints. Environmental groups and political parties campaign to stop the destruction of ecology and resources. Efficient use of energy provides benefits individual enterprises and a wider society. A socially responsible business will respond to public demand for improved efficiency and includes consumer wants for now and the future. Firms are increasingly aware that ethics are a unique selling preposition in todays business life. Companies are incorporating social responsibility programs into marketing decisions. Increasing evidence indicates that being ethical results in valuable benefits: It can enhance public reputation and therefore increase profits. A recent study discovered that 84 percent of U.S. respondents have incorporated business ethics. A study found that 71 percent of UK companies used codes of ethics in 1991. The 2002 major national survey of public perceptions of energy use (2006) Available from: http://www.tyndall.ac.uk/index.shtml [Accessed 11/05/2006] Introducing strict ethical/environmental considerations in financial markets (FTSE Good Index) shows outperforming conventional stock exchange indices. Figures for the Dow Jones Sustainability Index (ethical index) in the US show that it outperformed the Dow Jones Global Index by 46 %. Griffiths, A.; Wall, S. ;( 2005); Economics for business and management; 1st ed.; UK, Prentice Hall; pp. 149 The ethical code-Code of conduct Ethical codes formalize rules and standards and reflect values and missions of a company. Leaders and members must have an obligation to operate in a consistent way meeting core objectives and society needs. Contributing to local, national and international communities by adopting a code of conduct can ensure honesty, fairness and respect in the organization and its environment it operates in. Developing a code of conduct Developing ethical behavior in an organization can be achieved by enforcing rules and standards that describe what the company expects of its employees and managers. To ensure ethical conduct, open communication and coaching staff are essential. Other important development factors include: Training/ including employees in developing a code of ethics. Clear channels of communication, trust and good employee-manager relationships Improved motivation to achieve objectives and goals Adhering to the guidelines of an ethics code A code of conduct requires shared commitment to achieve and develop high standards of production for its success. Open communication and coaching staff are essential but can introduce high costs and conflicts between share-and other stakeholders. Does being an ethical policy bring advantages? Being socially responsible enhances/protects corporate reputation and motivates/encourages loyalty and trust in organizations relationships. For example an ethical policy can reassure investors and stakeholders about the companys approach to its non-financial risks by providing a license to operate. Where do Ethical issues arise from? Ethical issues generally arise when marketers fail to understand risks of function, value or use of a product. Pressures can arise from substituting inferior materials to minimize costs or failing to inform customers about existing conditions or changes in product quality. Many car, gas and tobacco companies have experienced negative publicity associated with design or safety issues (as well as global warming, water pollution, noise and congestion issues) that resulted in control of their behavior by laws, regulations and higher taxations. Developing and selling a product which does not harm the environment refers to green marketing and must focus on long-term as well as short-term results. Most organizations participating ethics are beginning to realize that they have traded short-term profit margins for long-term morale and productivity. No matter what laws or regulations are passed onto the business, ethics cannot be externally imposed. Buying a healthy product, without considering its prize or shopping for bargains-neither side is immoral or unethical. Ethical companies will focus on all types of consumer wants and try to ensure working within their social mission. Taking social responsibilities towards stakeholders and evaluating the effects of a companys activity in its microenvironment (social auditing) involves/includes: Social auditing Benefits for company No difference between employees(equal rights) Increased motivation, established social performance Identification of ethical values and social objectives Easier identification of criticisms and meeting company objectives Understanding and applying customers views+ providing information for pressure groups Easier to measure performance/ results to make informed decisions about impact of activities, gaining new customers Improving brand and image attracts employees and perhaps leads to higher sales Management setting example to incorporate ethics Employees convinced being ethical improves organization (including profits) Being unethical can lead to: less resources for future generations and environmental damage due to wasteful use of energy high level of unit cost in economy which leads to being uncompetitive in world markets and trading performance increased poverty due to unfair distribution of money (i.e. wasting money on luxuries) price increase of non-renewable fossil fuels, leading to high expenditure on overseas supplies increase of private costs (i.e. wages, rent) and social costs (i.e. noise, pollution) violation of laws or company policies unfair balance to parties concerned both in the short-term as well as the long-term increase of private benefits (i.e. profits) and social benefits (benefits to the rest of the society) Becoming a socially responsible company has many advantages. However, managers of companys hold different views of moral positions. And sometimes, organizations have to choose between being an ethical company or striving for increased or kept profit. Often, companies and customers find themselves in an ethical dilemma by choosing between local or global spending. When money is spent globally, cheaper products are bought, creating a short-term advantage. This can have a negative impact on undeveloped countries if the buyers exploit their monopoly power and pay unfair prices to poor countries. Businesses therefore have to weigh up long-and short term decisions. Suppliers can increase profits by raising prices or reducing the quality of a product (bargaining power of suppliers). Therefore, underdeveloped countries with no other substitute products available have to accept the competitors demands or choose inefficient but cheaper companies to do the job. An example is the case study from Stuart Wall and Bronwen Rees book. Both describe Bribery and corruption by the World Bank as the single greatest obstacle to economic and social development. Poor infrastructure and higher pay from poor countries are often the result of bribes. Rees; B.; Wall, B.; (2004); International Business; 2nd ed.; England; Prentice Hall, pp. 212 Disadvantages of becoming a socially responsible business can include: At first the costly, costly, takes time and effort to introduce changes change of business culture, expensive and time-consuming to promote new culture loosing established customers conflicts of aims between share-and stakeholders (paying increased wages can loose business profit) new recruitment and redundancies of employees (difficult to be ethical since there is the need to get rid of staff in order to keep profit up) time-consuming to adopt to new image turning down low costs of production (i.e. labor) costly to change working conditions for labor being ethical introduces motivation which is not desired in every company adapting to new policies may not be profitable management and employees need training ( costs extra money) organization may not be able to cope with extra pressure increased quality of product will lead to raising productioncosts In every company, profit is an important objective for success and decision making. Being ethical can benefit businesses, society and economy. But should trustees make bad investments for social responsibility? Being an ethical company includes pressure of balancing profits and ethics at the same time (I.e. profits vs. exploiting stakeholders). Organizations have to invest in training, research, and product development. Only a few companies are immune to economic fluctuations and can stay committed to investment in societal behavior. For a new firm entering business, being ethical can mean less profitable short-run incomes that are desired to stay in competition. Larger organizations often have profit to enhance its reputation, creating greater long-term benefits even though is difficult to guarantee a big companys ethical status due to its involvement in many business activities. Customers expect quality products for a fair prize. Often, share-and other stakeholder get in conflicts due to increased prizes on the production of products. Many regard the government as being slow on promoting ethical behavior. Old motorways and power stations are contributing factors to the collapse of many economies. Reconstructions are costly and businesses as well as customers are often the ones suffering higher prizes. For example there is a chance for the UK of loosing out on the new industry for wind farms. Green peace is backing up NPower, defusing local protests for wind power. Creating a new type of electricity shows economic responsibility but is the company socially responsible by defusing customers views about the massive turbines? It can be argued that companies can use a of cost- benefit analysis to determine forecasts, outcomes and consequences. Known to philosophers as utilitarianism, this principle is best known by the maxim: Do whatever produces the greatest good for the greatest number- Do what best is for the best for the greatest number of people. Rushworth, M., (1995), Good people make tough choices, NY, 1st ed., firesides books, pp.24 Some businesses, like Nestlà © and Esso are acting accordingly to fixed rules, never mind the outcomes (Rule-based thinking). Often associated the German philosopher Immanuel Kant, this principle is firmly based on duty- On the way we ought to do, rather than we think what might work- Follow only the principle that everyone else will follow. Rushworth, M., K., Good people make tough choices, firesides books, NY, 1995, 1st ed., pp.24 Some organizations believe that shifting the business to an undeveloped country will reduce prices for production and wages for employees, therefore increasing profits for the company. This behavior seems unethical even if it can lift people out of poverty and assists to international development and the finance for decommissioning for a cleaner environment. The website maketradefair.com shows that 68 % of people in the UK supporting Fair-Trade but green products still command less than 1 % of the market. Make trade fair (2006) Available from: http://www.maketradefair.com [Accessed 16/04/2006] Some companies have had very bad publicity on this and are now trying to rebalance their practice. It can be argued that supermarkets not promoting their (by putting products on bottom shelves) products enough. Another reason is the increased price on Fair-Trade products. To underline the pressure of being a socially responsible business, the example of organic farming is given from the book International Business, by Stuart Wall and Bronwen Rees. Going organic includes changes in transforming middle-class specialties to a mass market phenomena for retailers. Farmers have to switch to natural herbicides and fertilizers which are benefits to society but can include extra costs (for the farmer and the consumer) and are easier to achieve with funding from the government. Those who buy organic food have to except higher prices because they are paying for sustainable, agricultural techniques and healthier food- People have to realize you dont get something for nothing. Simon Brenman, of The Soil Association. Rees; B.; Wall, B.; (2004); International Business; 2nd ed.; England; Prentice Hall ,pp 223-224 To succeed with environmentally friendly products, the image of benefits must be clearly defined and a market segment consisting of consumer who are willing to pay for better quality must be found. Countries have different cultures, values, beliefs and expectations. Companies operating internationally cannot transfer all business standards unchanged, expecting the business partner to understand their core values. For example, ethical codes tend to be seen as legal documents in the US whereas it is viewed as a social compact between company and its workers in Europe. Financial institutions are more experienced in the channels of communication and are sensitive to indices of firm performance. Often, those institutions have profit maximizing objectives but also enough income to spend on promotion and technological innovations to reach their customers to be socially and economically responsible. Promotion can create false or misleading advertising and manipulative/deceptive sales tactics and publicity. A major issue pertains the marketing of video games that promotes violence and weapons to children. Not every company has the choice of being ethical or not. For example the tobacco industry is regarded as being irresponsible towards society but is reasonably safe during market collapses, as they tend to have a safe and predictable profit flow. Defense companies benefited from higher arms spending following September 11 attacks on the US. Nowadays, even ethical businesses agree to. An example is the retailer Body Shop, agreeing to the takeover by French cosmetics giant LOreal in a deal worth  £652m. Anita Roddick, consultant, said the companys values (like community trade) would not change. But the organization has yet to show its commitment to ethical issues. LOreal takes over Body shop 2006) Available from: http:// www.clarionledordger.com [Accessed 12/05/2006] Evaluation Ethics refers to what is acceptable in a certain society. Organizational ethics is an important element and a unique selling preposition in business as it can determine beliefs and responsibility of the company in the eyes of society. However, it should not be assumed that doing good is desirable or acceptable. People expect certain ethical behavior from companies but they do not operate in a vacuum. Every country has different business values and views. Being social and ecological responsible in one country doesnt mean its ethical in the other. It implies that there is no morality of being right or wrong in ethical businesses. Companies focusing on future-orientated thinking are working within their social mission which can enhance public reputation and increase profits to remain competitive in todays business world.

Can Utopia be obtained in a Capitalist Society :: essays research papers

In a capitalist society can utopia really be obtained? I really don’t think so; because if utopia is defined as a place of ideal perfection especially in laws, government, and social conditions, then a place where everything is perfect for everyone is not likely. Perfection, I believe, cannot be obtained in a capitalist society because of competition. Competition can help society in many areas, such as improving technology, forcing individuals to work harder, and making more money for the overall economy. But ideal perfection can’t be realistic with competition.   Ã‚  Ã‚  Ã‚  Ã‚  Because of competition, in my opinion, perfection in laws cannot be attained. One reason I think this is true is because of the many laws that governments of a capitalist society has; such as monopoly be outlawed. Laws are not ideal perfect because they are some people who would want to generate more money and can’t because of some law that would prevent them to do so. There might also be some ethical issues between businesses that might lead to imperfection. There might be some common law within businesses that might be unfair for other business that makes society imperfect. Ideal perfection means that all people in the society are not only happy with their economic status but also have no need to improve on that, and when we have competition playing a major part in our society, there is no chance of improvement not happening.   Ã‚  Ã‚  Ã‚  Ã‚  Government perfection is really hard to attained because it is rare when everyone agrees on something that the government provides. Government has to maintain not only a good economic system, but also a stable society. In an ideally perfect government there cannot be any differentiation in taxes, nor can there be such a great difference between upper class and lower class. In a capitalistic society there is differentiation in taxes and a wide gap between upper and lower class incomes. A good, successful government in my opinion cannot be ideally perfect. I would think that that could only happen if the government controls the people, like a communist country, but then that in the society’s point of view isn’t perfect either.   Ã‚  Ã‚  Ã‚  Ã‚  Can social conditions really be perfect, ideally perfect, for everyone? This is I believe the strongest argument against attaining utopia. What is perfect social conditions, is it everyone having a job, family, and values. Is it following the economic system and trying to reach for the ultimate goal in a capitalist society, which is the bottom line.

Marijuana

The use of marijuana in human civilization dates back to 6000 B. C. In this era, China found that cannabis seeds are edible and later discovered a greater use as textiles. From that time period, humanity has made significant advancement, and has discovered further uses for the marijuana plant. Today, marijuana can be used as medical cannabis to treat ailments that other medication cannot possibly treat. Although medical cannabis has some great benefits, in the many countries it is still illegal to possess and/or use.Thus the legalization of marijuana should be legalized through its promising and beneficial results. Contrary to belief, medical cannabis has very few health risks compared to propaganda suggested to most people in mainstream media. Throughout the years many random and bogus facts of marijuana have circulated, many of these disputes however, have been debunk through actual scientific study done today. The monkey marijuana experiment in 1973 for example was a huge hoax. In the case study, the monkeys were exposed to marijuana smoke everyday and died after ninety days.The autopsy report ruled that hey died to a dead brain through great loss in brain cells. Therefore, the conclusion of the study was that marijuana kills brain cells, but the experiment failed to report the monkeys were being suffocated for five minutes on a daily schedule for three months. The process of asphyxiation or suffocation causes lack of oxygen to the brain, which leads to death of brain cells. Soon after, many more theories have been tested and most of the so-called health risks were nothing more than hokum.Marijuana has fairly less harmful effects, unlike other legal drugs such as: alcohol, tobacco, cetaminophen, amphetamine, OxyContin, Xanax, sleeping pills, and many other legal drugs. Adversely, compared to other drugs and the drugs listed prior, marijuana has very few health risks. Since there are very few scientifically proven health risks, they are much more minimal in h armful effects than other recreational drugs. Alcohol and tobacco for instance, have higher risk in use than marijuana.The Center of Disease Control and Prevention states that: There are approximately 80,000 deaths attributable to excessive alcohol use each year in the United States. l This makes xcessive alcohol use the 3r d leading lifestyle-related cause of death for the nation. 2 Excessive alcohol use is responsible for 2. 3 million years of potential life lost (YPLL) annually, or an average of about 30 years of potential life lost for each death. l In 2006, there were more than 1. 2 million emergency room visits and 2. 7 million physician office visits due to excessive drinking. The economic costs of excessive alcohol consumption in 2006 were estimated at $223. 5 billion. 3 Compared to the average marijuana smokers, tobacco smokers frequently smoke more as stated in Mikaela Conleys ABC News article, â€Å"Among the study participants, the average pot smoker lit up two to three times per month. The average tobacco user smoked eight cigarettes per day. † Due to the greater amount of frequency in lighting a cigarette the average tobacco smoke causes much more air pollution as well as second hand smoke.In summation, the negative output of marijuana is miniscule compared to the negative output of most legal drugs/over the counter drugs. The medical uses of prescribed a mysterious herb as tea. This tea was marijuana and was used to treat, everything from pain relief to earache to childbirth. Doctors also warned against overuse of marijuana, believing that too much consumption caused impotence, blindness and â€Å"seeing devils. (Stack& Suddath)† Ever since then the uses of medical cannabis has varied from nausea to cancer and even to pain relief.According to â€Å"Disabled World†, Few herbs offer a wide variety of therapeutic applications like these: Relief of muscle spasms, relief of chronic pain reduction in interlobular pressure inside t he eye, suppression of nausea, weight loss – increase and restore etabolism, AIDS – Marijuana can reduce the nausea, loss of appetite, vomiting from the condition itself and the medications as well. Today, medical cannabis remains one of the most controversial social issues around the world.Although many people disagree with the drug, for one boy it proved valuable results. Jayden David of California suffers from a, â€Å"debilitating form of epilepsy, which causes him to experience frequent seizures – some lasting up to 90 minutes. (Fox40)† This only treatment for his epilepsy prior to medical marijuana was twenty types of medication hat he must take everyday in order to control his epilepsy. Once Jayden was on CDB (cannabidol), â€Å"Jayden's seizures are down approximately 80 percent. Jayden is functioning now,' David, of Modesto, Calif. told Fox 40. ‘The doctors told me Jayden would never walk or talk. ‘ (Fox40)† This is Just one of the stories of many lives that medical cannabis has managed to improve, including: cancer, chemotherapy, anorexia, bulimia, and many other ill patients. Due to its already besmirched image, the process in which obtaining medicinal marijuana has become such a hurdle that it is much harder to obtain than it should. Along with its beneficial results as medical cannabis, marijuana could have a substantially great impact on economy.With the drug being legal, less police force is needed to enforce the law, thus saving a substantial amount of taxpayer's money from the â€Å"get-go'. The Budgetary Implications of Marijuana Prohibition in the United States reveals that, â€Å"The report estimates that legalizing marijuana would save $7. 7 billion per year in government expenditure on enforcement of prohibition. $5. 3 billion of this savings would accrue to state and local governments, while $2. 4 billion ould accrue to the federal government. This is Just from deprivation of reduced polic e force, TBIMP states that, â€Å"50% of possession arrests are due solely to marijuana possession rather than being incidental to some other crime. † Declaring the arrest rate of 50% of all arrests are marijuana possession shows and reinforces the idea of how much the United States can save with reduced arrests and enforcements. In addition to the legalization of the drug, it could be taxed and distributed as a product worldwide for increase GDP in not only the United States, but also many other countries. However in the U. S. he estimated report says it would yield is, â€Å"$2. 4 billion annually if marijuana were taxed like all other goods and $6. 2 billion annually if marijuana were taxed at rates comparable to those on alcohol and tobacco. † Increase of new product in the market allows more economic growth worldwide. If the enormous revenue of legalization of marijuana is so great, it imposes the question of the legitimacy of illegalization of a drug in the first place, and to answer that question frankly it should! morality of it (which is the only answer to the question imposed prior to this entence).Most people against marijuana say that it is a drug and it is bad, but hold no other credible evidence of it truly being â€Å"bad†. In 1920 the United States imposed an alcohol prohibition because of their morale of it being â€Å"bad†. Just like marijuana alcohol is a drug, and has many pros and cons, such as medical uses like a disinfectant as well as a recreational drug. The hypocrisy came when the government imposed the prohibition when the motto has been â€Å"for the people by the people†. This lack of representation of the people caused one of the greatest failures in law reation since slavery.Not only did prohibition fail in stopping people from drinking alcohol, it also increased the amount of people drinking as well as crime rate. The distillation process of making alcohol became a homemade Job, but due to the lack of proper equipment and sanitation this beverage was much more hazardous to drink. It was estimated at least ten thousand people died during the enforcement of the 1920 to 1933 Prohibition. During this time the profit of making alcohol skyrocketed, which made it more tempting to break the law.Along with the increase crime rate, it as also reported that vandalism and public disturbances increased. This example is currently like the prohibition of marijuana, not only is it making crime more profitable, but it is also increasing the negligence of the people consuming and the law enforcement. However, due to a greater understanding of responsibility and information of recreational drugs, modern day society has allowed awareness in safety of alcohol consumption. This awareness could also be used for marijuana, Just as it has been done for tobacco and other drugs.In summation, the use of marijuana medically and recreationally has been around ince the beginning of civilization, and sh ould still be continued today; Just as Bert Lance once said, â€Å"If it ain't broke, don't fix it. † In addition, the legalization of marijuana should Just be reinstated prior to it's ban through its promising medical uses for all sick and ill patients, its beneficial economic results for everybody, and its use as a reminder that public opinion are still held accountable; even with the modern political Jargon going around today.So, for the sake of the ill who needs the drugs, to us, the people who could benefit from the drug, we should keep in mind that the ecision is more than Just a basis of morality, but also the basis of something for all. â€Å"The needs of the many outweigh the needs of the one. Marijuana Even the Persian founder of Suffix, who struggled with depression until discovering the plant, requested in his death, ‘to be buried amid cannabis leaves so his spirit may walk in the shade Of the plant that eve him much joy in his lifetime† (Medical-Marijuana-Mentor. Com). However, if marijuana has been embraced by diverse faiths and civilizations, why is marijuana such a controversial subject now? In America's inception marijuana was used to generate vast government money by our founding fathers; George Washington and Thomas Jefferson both grew hemp on Mount Vernon.But in 1932, the Confirm State Narcotic Act gave legislative control of marijuana from the federal government to the states, thus prohibiting the use of marijuana (The Free Dictionary). Nevertheless, numerous studies have shown the benefits of marijuana outweigh its negative effects. Therefore, the stigma should be lifted so that the people of the Lignite States can enjoy the benefits of marijuana. The legali zation of marijuana in the U. S. Would lower crime, stimulate the economy, and provide medical relief.First of all, the legalization of marijuana would lower the crime rate in the United States by creating a safe environment for its users. If marijuana is taken off the street, and out of the hands of the dealers, the crimes associated with these types of dealings would also be taken off the street. It would put marijuana into a legal market where it could be controlled by the proper authorities. â€Å"By providing legal supplies of currently illegal drugs the price will fall, leading to a collapse in the illegal drug industry, and a reduction in crimes committed by both drug suppliers and users† (Legalization of Marijuana).To illustrate this, just three months after the state of Colorado legalized marijuana, crime decreased 14. 6% and in Denver from the same time last year†¦ Violent crime also went down 2. 4% (Natural Society). Another disconcerting problem with marijuan a being sold on the street is its accessibility to minors. Drug dealers do not discriminate and do not care whether the buyer is a minor or not; their interest is solely in their own profits. High school students have reported that illegal drugs are easier to access than alcohol and tobacco.This would obviously explain why the percentage of teens using weed is drastically on the rise. On the other hand, if marijuana was legalized and sold as cigarettes, the buyer or consumer would have to produce a valid identification before purchasing it, and a vendor cannot legally sell alcohol and tobacco to minors. As a result, legalizing Arizona would establish more of control of its distribution, and would also reduce the usage of it among minors. With the economy in the United States in shambles, legalizing marijuana would allow it to be a taxable item and would produce millions of dollars into the system. The new measure is expected to bring†¦ [in] $550 million combined, with more than 300 economists previously estimating that legalizing pot could save the U. S. Up to $14 billion a year† (Huff Post Business). We should not allow drug dealers the ability to control the market and benefit on a product that has the potential to ring in high profits into our much-needed empty confers. With marijuana being sold on the black market drug dealers charge exuberant prices because they have the monopoly on the market; keeping pot illegal is inadvertently enriching greedy drug dealers.On a similar note, by legalizing marijuana the demand will rise for more farms and dispensaries. With this comes more jobs because establishments like this would be hiring farmers, growers, and employees would be needed to run the new dispensaries, thus creating a new and large job market. By legalizing Marijuana it can be something the American people can profit from as a whole, as well as the U . S. Government, instead of a small group of criminals who's only priority is to enrich thems elves. Lastly, and most importantly marijuana can treat diverse mental and physical illnesses.Medical marijuana or cannabis has already been legalized in 20 of the 52 states in the U. S. Marijuana can treat cancer patients suffering from the affects of chemo and radiation by dehydrogenation's (TECH) -? which has pain-relieving properties. It can also be used to prevent the spread of cancer cells. â€Å"CB (one of the components n cannabis) represents the first nontoxic exogenous agent that can significantly decrease old-l expression in metastasis breast cancer cells leading to the down-regulation of tumor aggressiveness† (National Library of Medicine).Furthermore, marijuana can be used to treat and prevent eye disease such as glaucoma. It has also been know to treat mental illnesses such as depression and anxiety. In addition, some independent studies have shown Marijuana to prevent suicide in those who use it for medical purposes. Marijuana is, at present, successfully treat ing people suffering from the effects of illnesses, but only in the states that have legalized it. However, everyone should have access to the medicinal properties found in cannabis and the ability to use them legally.Therefore it should be legally available to those whose health can benefit from it. In closing, it is safe to say there are many beneficial uses to this controversial drug known as marijuana. Prohibiting the use of marijuana does not prevent it from being used, but rather gives a small and dangerous group a large portion of control and power. If we are to learn anything from the history of prohibition in the hearties in relation to alcohol is that it did the opposite of what it was intended, â€Å"Alcohol became more dangerous to consume; organized crime blossomed; courts and prisons systems became overloaded† (1 920-30. Mom). Such is the case of the country today in regards to marijuana. The legalization of marijuana would not raise but rather lower crime, and would allow marijuana to be more controlled by the governing authorities. It would produce billions of dollars into an economy frocked with debt and create jobs in a time where unemployment is at record highs. It would allow those offering from the horrors of illnesses to find a means to ease their pain, and in some cases actually treat the illness itself.

The Benefits of Cultural Diversity Management in a Hotel

The Benefits of Cultural Diversity Management in a Hotel Different cultures have varyingt perspectives. Some perspectives and attributes can affect the operations and performances of an organization. For example, some cultural practices and attributes can dictate what to do and what not to do. Companies should focus on managing this diversity in people for the betterment of giving a good value to the operations of the company.Advertising We will write a custom essay sample on The Benefits of Cultural Diversity Management in a Hotel specifically for you for only $16.05 $11/page Learn More According to Anca and Vazquez (2007, p. 13), companies should focus on identifying dominant as well as rising values in the people. These values should be enhanced for the betterment of maintaining cohesiveness. This cohesiveness in workplace is vital for organizational performance. Hospitality industry provides a perfect means of effective management of diversity in workplace. This is because this industry attracts employees from diverse backgrounds. This is as opposed to regional companies whose workplace staff is likely to be from one region. Hotels and restaurants are most visible in hospitality industries. The paper looks at ways and means of managing workplace diversity in an international hotel. There also some difficulties that are associated with management of workplace diversity, especially diversity based in culture. There exist a number of benefits accrued out of management of workplace diversity. This paper discusses a number of benefits that are attached to management of workplace cultural diversity in a hotel. Management of this diversity can optimize user experience. It is possible to facilitate exchanges of cultures among people in an organization. Management of this diversity can help in identifying as well as removing barriers associated with equal opportunities. Workplace diversity can enhance team performance and operations of the organization when it is managed well. It can encourage th e employees to enhance their talents and provide an opportunity for managers to retain the talents. Holden (2002, p. 95) writes that management of cultural diversity in workplace is the same as managing innovative knowledge. People in the organization have different talents, the same way they have different cultural perspectives. Management of talent ensures that performance of organizational operations is enhanced. In countries such as China, cultural influences on performance are huge (Holden, 2002, p. 158).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More There are some means of managing this workplace diversity in the organization. Phillip (2006, p. 36) lists some of means as enhancing a psychological contract, enhancing personal motivations, giving referrals to the employees and building employment relationships plus confidence in employees. This paper specifically analyzes ma nagement of recruitments and utilizations of people and personnel from different ethnic and cultural backgrounds. A typical international hotel has people from the whole world visiting and spending some nights in it. For this therefore, the kind of employees in the organization to serve these people must be well trained. They must be thinking on the same line so as not to cause confusion on the visitors. The cultures of these people must be enhanced and given an organizational outlook. This is where cultures belonging to the employees are directed to have similarity with organizational policy. There are however various difficulties that come with various practices of managing workplace diversity. Management of workplace diversity in an international hotel Diversity in cultures in a hotel is a major factor. According to Deresky (2002, p. 34), management of diversity in culture in an international hotel or restaurant provides a classic example of international human resource managemen t. The same way an organization can put measures of managing people from different countries is the same way an organization can manage people of varying cultural and religious backgrounds. Two most popular areas of management of diversity are in recruitments and utilizing people from different backgrounds. Recruitment as an area of management of diversity Recruitment in an organization is a way of adding human resource in the organization. It helps the company add to potentiality of performing in the competitive market. For an international hotel, recruitment is a way of adding human resource and knowledge in the company to manage visitors in the hotel/restaurant. Recruitment is critical and should be done with utmost care. The company has a choice to either put people of homogenous backgrounds or people of diverse cultural backgrounds. A well thought out recruitment process is capable of putting committed employees in the organization. Committed employees would put a working staff that is loyal to the management.Advertising We will write a custom essay sample on The Benefits of Cultural Diversity Management in a Hotel specifically for you for only $16.05 $11/page Learn More According to Healey (2002, p. 22), management of diversity is a crucial way of managing cohesiveness in an organization. This cohesiveness helps in removing some common barriers that come with organizational management. A workforce that does not operate from one front is capable of developing some conflicts. These conflicts can affect the performance of the organization. For an international hotel, group conflicts can alter how people and especially visitors value the organization. This cohesiveness and elimination of group conflicts can only be done if the recruitment process is fair and well balanced. Strategies of managing cultural diversity in recruitment for competitive advantage External recruitment for cultural diversity Price (2005, p. 570) qualifies exte rnal recruitment as the best form of recruitment in managing diversity. In a study involving 29 heads of departments in a health care provision center, use of external recruitment method was noted as the best. External recruitment is pitted against getting employees from relatives and friends of organizational employees. Price (2005, p. 570) notes that 21 of the participants supported this kind of recruitment on the basis that it will give fair representation in terms of cultural and religious diversity. Soliciting workforce amongst members of the workforce would mean that the kind of cultures in the employees would be increased. In a hospitality industry, getting people outside makes the organization have a pool of cultures. Competitive advantage comes when a pool of talents is brought into the organization through different cultures in the organization. Agency recruitment for cultural diversity Price (2005, p. 568) adds that external recruitment is largely carried out by agencies. The agencies carry out advertisements for available jobs and conduct interviews. Zanoni and Janssens (2007, p. 1386) write that agency recruitment is recognized as ideal form of recruitment. In study involving minority employees in the organization in terms of cultures, it was discovered that the use of agency recruitment goes for diversity in areas such as culture, religion and experience. This is opposed to using human resource department in the organization to get people. Such a case may prompt employing people who are favored by some people in the organization and so resulting to homogenous kind of organizational culture.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Utilization of personnel from different backgrounds Cox and Blake (1999, p. 53) write that there are some positive and negative issues that come with taking people from varying cultural backgrounds. However, it is recognized that utilizing people from varying cultural backgrounds is beneficial for enhancing balanced organizational performance (Cox and Blake, 1999, p. 53). It has become a trend in international management especially in considering people from different countries. Utilization of people from diverse cultural backgrounds is a way of management of competition in the company. This is because with diverse people, there are diverse talents (Cox and Blake, 1999, p. 45). The contemporary globalization trends, especially the business trends are making organizational managers turn to differences in cultural backgrounds in the organization. Utilizing people who come from different backgrounds is beneficial because it makes the organization have a fair image among its publics. We therell (2008, p. 46) adds on this and writes that an organization that is full of homogenous people in terms of cultural backgrounds maintains the status quo. However, an organization that utilizes people of different backgrounds is capable of improving in performances. This is because there would be multiple talents carried by people of different backgrounds. Strategies of utilizing people of diverse cultural backgrounds Selective training opportunities for competitive advantage Lau (2006, p. 300) uses the example of preferential trainings for parents in hospitals by use of cultural adaptations. Some training is more adapted to particular cultures than others. In a hospitality organization, some communities or cultures are more suited to some professions than others. Lau (2006, p. 300) notes that adaptability is not the same in various cultures. For example, there are some communities known for customer service while others are known for manual operations. This is good for gaining a competitive niche. Some people would be used for capturing the market in some ways or means while other communities would be used for other ways. However, all trainings should be evidences from parent training.† John Wiley publication, 13(4), 295-310. Philip, G. 1996. Managing workforce diversity a response to skill shortages? Journal of Health Manpower Management, 22 (6), 34 -37. Price, E. G. 2005, â€Å"The role of cultural diversity climate in recruitment, promotion, and retention of faculty in academic medicine.† Journal of general internal medicine, 20(7), 565-571. Umans, T. 2009. â€Å"Research angels on cultural diversity in top management teams.† Journal of problems and perspectives in management, 7(1), 90-101. Wetherell, M. 2008. Identity, Ethnicity, Diversity and Community Cohesion. Singapore: Sage Publications. Zanoni, P. Janssens, M. 2007. â€Å"Minority employees engaging with (diversity) management: An analysis of control, agency, and micro-em ancipation.† Journal of management studies, 44(8), 1371-1397.