Day: April 5, 2018

Production Plan for Riordan Manufacturing

Production Plan for Riordan Manufacturing

A Production Plan For Riordan Manufacturing OPS/571 Operations Management A Production Plan For Riordan Riordan Manufacturing has a reputation for precision and innovation. As a Fortune 1000 enterprise, Riordan cannot afford to have the issues of bottlenecking affecting their production. As a result, a detailed analysis of the bottlenecks, the effects, and appropriate strategic planning were examined. Lean production planning was examined as was new processes. The details of the new processes also outlined the benefits to the company. Bottleneck Issues: The Effects

A bottleneck in a process is a specific part which falls short of meeting the demand. The capacity, which is necessary for that portion of the process does not have the capability of meeting that demand, has the most lag, or uses the most time or resources. Bottlenecks lessen the output of a process because the flow of the process is halted or slowed (Chase, Jacobs, & Aquilano, 2006). Strategic Capacity Planning Strategic capacity planning involves keeping the system balanced so the output of one level is the required input of another level. A bottleneck anywhere in this process would limit the thoroughput time within this system.

This is evident in the example of the Riordan manufacturing of the electric fans. The manufacturing process requires specialized piece parts and a specialized labor supply with proper knowledge to create the product. Supply Chain and Lean Production Supply chain efficiency is measured by how quickly inventory turns over and weeks of supply. If a bottleneck exists in the supply chain, such as the packaging and shipping of the inventory, the company could not handle the demand of inventory coming in. Thus, the capacity of shipping resources would be less than the demand of inventory and a bottleneck is created (Chase, Jacobs, & Aquilano, 2006).

This is true for Riordan. The plant in Hanghzou, China experienced problems with shipping the inventory out of the Shanghai port in a timely and cost-efficient manner. Similarly, in lean production a bottleneck could be a machine, which cannot handle the demand at the proper costs and resources; subsequently, the process flow diminishes. Capacity Planning The ability of an organization to determine its production capacity to meet changes for the demand of its product is a process known as Capacity planning. Capacity, in this context, is defined as the maximum output of work that an organization has completed within a specified time frame.

The possibility of inefficiency is inevitable, especially when resources are under- utilized, or when there is a discrepancy between the organization’s capacity versus customers’ demand, or unfulfilled customers. Capacity = (number of machines or workers) ? (number of shifts) ? (utilization) ? (efficiency) (Wikipedia). Because the China plant has already confirmed that there are some individual customers that have schedule products throughout the year for the electric fans, it is necessary to add capacity to meet the increase in demand.

This needs to be done to minimize inefficiency. The strategy to achieve this could be lead, lag, or match. Types of Strategies The Lead strategy is defined as an increase in capacity in anticipation of demand. This ensures customer demands are fully met, to satisfy, and keep them from going to competitors. However, it could result in excess inventory if the demand does not meet the forecast. The Lag strategy is defined as an increase in capacity after the plant is made to run at full capacity or beyond because of an increase in demand.

The risk of waste is decreased, but there may be loss of potential customers (North Carolina State University, 2006). The Match strategy is adding capacity in small amounts in response to changing demand in the market. This moderate approach is recommended for implementation of the electric fan production line at the China plant. Lean Production Planning Lean production planning is a concept developed in Japan, which is based on finishing goods when they are needed (Chase, Jacobs, & Aquilano, 2006).

For Riordan to implement this type of plan, an entire new strategy will need to be developed for handling inventory. Currently, each Riordan plant handles inventory independently. Now Riordan must centralize inventory and ordering systems. The two systems need to be centralized because lean production is based on the theory that goods are produced when needed, thus eliminating waste (Chase, Jacobs, & Aquiliano, 2006). Current Situation Another change to implement is in the receiving of raw materials and the shipping of their finished goods.

In China, the suppliers’ on-time delivery rate is only 93%. This rate will not work in a lean production planning environment. To increase this percentage, the plant will need to have deliveries more frequent so materials are always on hand. This would eliminate a potential bottleneck due to a lack of inventory having a negative effect on production times. Either way, it creates waste and will not maximize the efficiency of lean production. Process Improvement Part of the just in time theory of lean production is it reaches the customer “in time”.

This can be accomplished by proceeding with the Shanghai move. This would reduce the steps needed to distribute products to customers. In addition to a decreased throughput time for finished goods to reach the customer, Riordan could save money, thus eliminating wasteful spending. Benefits By centralizing inventory and customer orders, increasing on-time deliveries from suppliers, and eliminating the shipping bottleneck, the Hangzhou plant can minimize the cash outlay by pre-planning production and developing an efficient system that eliminates the most waste possible.

New Supply Chain Process It is extremely important for each organization within Riordan’s supply chain to coordinate with each other for inventory reduction, while maintaining or increasing customer satisfaction through delivery and service performance. Currently, various bottlenecks exist within their suppliers, distributors, inventory, and information management. Ideas for Improvement They should improve the processes by consolidating all of the company’s departments and functions by using Enterprise Resource Planning (ERP) and vendor management inventory system.

A ERP system would allow their China location to integrate all departments, such as sales, inventory, manufacturing, and billing. The use of this system would serve many purposes: improvement of communication between departments, loss of minimal information and allow departments to retrieve information easily and efficiently (Topbits, 2010). This type of system would strengthen the relationship between each department by integrating the supply chain business processes and promoting shared information.

An ERP is also a system, which allows improved communication between the companies and the buyers. Experience has shown a collaborative inventory management system will demonstrate improvements in these areas that can result in the elimination of 20%-30% of the previously required supply chain inventory (The Supply Chain Company, 2010). This type of inventory system would allow Riordan to work with the buying companies by sharing information and inventory. Riordan would then have to maintain a decreased amount of safety stock throughout the year.

The benefits of the vendor management system are significant cost savings, less inventory, and fewer stockouts, resulting in more sales and higher customer satisfaction (The Supply Chain Company, 2010). Conclusion Presently, Riordan has several areas of concern for bottleneck formation. One such area exists in their supplier, another in shipping. With a few changes, these processes could improve thus providing several benefits to the company. In addition to the reduction of the bottlenecks, implementation of these systems would serve to increase sales, build relationships, and improve customer satisfaction.

References Chase, R. B. , Jacobs, F. R. , & Aquilano, N. J. (2006). Operations management for competitive advantage (11th ed). New York: McGraw Hill/Irwin. The Supply Chain Company. (2010). The Vendor Managed Inventory Solution. Retrieved May, 21, 2010, from http://www. i2. com/industries/consumer_industries/vmi. TopBits. (2010). Enterprise Resource Planning. Retrieved May 20, 2010, from http://www. Topbits. com/enterprise-resource-planning. html. Wikipedia. (2007). Capacity Planning. Retrieved May 23, 2010, from http://en. wikipedia. org/wiki/Capacity_planning.

Notes on King Richard Iii and Looking for Richard

Notes on King Richard Iii and Looking for Richard

Lady Anne scene – – “Presents Anne with an offer she can’t refuse” -Showing the references throughout with popular contemporary context to derive meaning -Anne mostly in the dark enhancing her incomprehension, camera turns away from her or shows only as body parts to frame Richard’s body “Was ever a woman in this humour wooed? Was ever a woman in the humour won? ” – assonance and expansive ‘o’ sounds as well as rhetoric and repetition “I’ll have her but I’ll not keep her long” intercuts of ‘Ha’ as well as an increased speed of cuts through this line – almost portrays Richard as mad – cut of him out of costume in rehearsal laughing – Seduction through language and sexual tension in Pacino’s version – low neckline in costume, attempted kiss- more recognised and understood by audience, romantic model of film – no diagetic sound – dissolving shots, superimposition – foreshadows their union series of dissolves, then cuts from one to another, then in same frame, then simulates the process of initial emotional distance and of gradual physical coming together Shakespeare – power struggle by lines – Anne hold most at start then they level out, beginning to mimic and rhyme – thee and thee, husband and husband, then Anne is reduced to stage directions such as ‘she spits at him’ – Opening Soliloquy- Shakespeare – reveals a brilliant and whity mind within a deformed body as a tool to foreshadow his evil plans and expose his immoral mind manipulative techniques of striking imagery and metaphors; “I that am not shaped of sporting tricks, nor made to court an amorous looking glass” -Shows deceptive way in which Richard interacts with the world -explores its operation portraying the working of Richard’s mind and the methods he uses to control and injure the others; “and descant on my own deformity… I am determined to prove a villain” – Pacino – intimate camera angles – cinematic illusion – head and shoulders – in Cloisters – lighting and use of shadows – easier to interpret meaning and within medieval context – candles + sunlight atmospheric music in enactments – Limitations of stage direction leave AP open for interpretations of tone and scene structure – “now… NOW… now is the winter of our discontent” – Shakespeare accentuates Richard’s deformity to emphasise that Richard was a threat and not a legitimate ruler during Elizabethan period and deformity signifies decay on the inside – “Cheated of feature by dissembling nature” – personification of nature as untrustworthy and unfair – steady cam / hand held camera – more involving and intimate – Ghost scene –anaphora, use of supernatural, flashbacks, voice over, fast cuts Richmond shown to be pious (praying) in bright red velvet costume, young, fair hair and low angled shots contrasting greatly to Richard’s stubbled, dark long messy hair, sleep apparel – “the battle is really the ghost scene” – becomes more of a nightmare in the film – diminished to conventional – audience would not appreciate the depth of scene due to the shift in values away from the supernatural – Close up of symbols of kingship (crown) – dissolved both in and out Swaying movement of camera for Richard and out of focus – shows inevitable demise while stable and clear for Richmond – perfect embodiment of medieval masculinity – Richard spits – frustration and loss of his ability to control emotion and language – fear of divine vengenance – formal language, repetition, balance and contrast depicts that Richards’ real opponent is God rather than mortals – “despair therefore, and die” – Prince Edward + ghosts – foreshawdows the mental, emotional and physical disparity that he is to undergo before he dies – “I shall despair.

There is no creature loves me,/ And if I die no soul shall pity me. ” – “As snow in harvest” – Pacino – context reshapes the fear of divine justice to inner torment – quick edit cuts to characters he has committed crimes against creates a sense of sympathy as he is in a vulnerable position – high angle shots, blue lightning, eerie silences supports Richard’s inner darkness – context allows audience to be more sympathetic – complex psychological theories of 20th century – moral complexity while Shakespeare’s audience held a more simplistic Richard from their knowledge of history Battle Scene -startling effect of fade to white in combination to a sword sound and then the red filter – Wide shots of limited people in battle creates sense of space and diminishes the effect of it – anticlimactic along with the ease at which Richard is defeated – cut from Richards death at the battle field to scene of Pacino and Kimbell brings audience back into present – church bells reflects a new, positive reign and revisits the start of the film – creating the impression of a cycle – alluding to the idea that what was relevant in Shakespeare’s time is still relevant now and always will be inglorious death – removal of red lens and long shot – diminishes Richard’s strength and sense of power Family scene – Queen Elizabeth’s adverse reaction to the impending death of her husband, the king – her loud voice and a tone filled with anger and desperation, highlighted by her dialogue ‘The loss of such a lord includes all harms’ – foreshadows Richards evil reign – actors are seated around a table, arguing about the characterizations.

Penelope Allen’s appearance of a dishelved women fighting for her portrayal of Queen Elizabeth defines how heightened emotions transcend time – emotions are still very real and relevant – Uses several strong puns – irony; “what marry, may she? ” – marry – several connotations which echo and repeat River’s words underlining the strength of his feelings – Whity language techniques of Richard’s speech are used to his advantage to attack and empower making other characters seem weaker. Meeting of the Dons – Pacino’s cultural heritage – utilises fear and his context to help relate – makes the connection between Elizabethan times and today stressing that there will always be individuals who will betray others for power – Pacino shot in low angle shots, in and out of shadows – shot of Hastings half hidden behind the silhouette of Richard – “The truth is that those in power have total contempt for everything they promise, everything they pledge, and this is really what Shakespeare’s great play is really about. ” – “Those who love me, rise and follow me” – sesuras quicken pace, increasing the anxiety and utilising their fear

Values- Shakespeare – integrity, honesty, loyalty and moderation Pacino – integrity, honesty, loyalty, empathy, equality and perseverance – The values of the texts parallel as they portray the timeless concept of human emotions and destruction within one’s self. Other – – Documentary – flexible medium, modern day analogies, enactments of key scenes – Shakespeare – language, style, character development, plot – both affected by contextualisation (societical, historical, cultural) -supernatural – prophetic curses/ dreams – Margaret – portrayal as mad in Pacino – association of Richard with devils/demons serves to heighten sense that Richard’s reign in innately evil – Seduction – Anne through language and in Pacino through physical seduction – the people through modesty and language – many faces of Richard similar to many different appearances of Pacino – in Shakespeare’s context shows the different forms evil can take to seduce, in Pacino’s it is everyday life – The Godfather Trilogy – Scorsese – editing – interspersed discussion, rehearsal and performance – light and sound – natural light in doco part, darkness and shadows in play – two faced – Pacino utilizes the 20th Century context through anachronisms to modernize he thematic value of Shakespeare Richard is extremely honest with himself and is capable of drawing out and exploiting other’s faults/weaknesses “Well, your imprisonment shall not be long” -Double meaning and dramatic irony and manipulation of Clarence’s trusting and loving nature – original idea that initiated each work is substantially different – ideas are complementary. – A comparison helps understand of power, dishonesty and revenge + Richard’s villainy and characterisation- Differences in perception and presentation reflect different contexts. “As soon as he gets what he wants… the emptiness. ” – shows consequence of suppressing humanity for power – no respect or love – “there is no creature loves me, / And if I die no soul shall pity me. ” – free will vs. Providentialism – “determined to prove a villain” – pun referring to the conflict between his free will and his destiny to be a villain – rhetoric, word play to seduce, moves beyond formal structure of traditional rhetoric to the compelling use of imagery, antitheses (contrasting words) express conflict and ambivalent attitude towards Richard, imagery, metaphors

Market Analysis and Strategic Recommendation

Market Analysis and Strategic Recommendation

Market Analysis and Strategic Recommendation As a Marketing Consultant, my client, which operates in the Mobile phone and Network providers sector of the market and the organisation trades under the name of O2 has asked me to generate a report, including a full market analysis and a set of strategic recommendations. This is to help secure their short (1-3 years), medium (3-5 years) and long term (5 + years) future. I will be using relevant marketing theory and also recent market data to help complete this report.

The report will include an organisation profile, outlining O2’s history, position in the market and many other factors, including product range. The report will then go on to market analysis, where it will concentrate on the impact that the market is having on the organisation. The two main elements of this component will be discussing both the ‘macro’ and ‘micro’ factors. The next stage will be using market intelligence to shape strategic decision making. This will be done using marketing models and frameworks from the data collected about O2. It will include the construction of a ‘SWOT’ diagram.

The last component before the conclusion will be the strategic recommendations. Here, as the consultant, I will be offering O2 my opinion as to how they should proceed, firstly with the factors that need to be addressed immediately and then factors to concentrate on in the future. My recommendations will be based upon the analysis undertaken throughout the whole report. O2 was formed in 2001, following the demerger from British Telecom of its former mobile business; it is a provider of mobile communications services in Europe and also has a leading mobile Internet portal business.

The company operates in the UK, Germany, Ireland and the Isle of Man, employing 25,000 people. It is headquartered in Berkshire, UK. The company recorded revenues of ? 6683 million during the fiscal year ended March 2005, an increase of 17. 4% over 2004. The operating profit of the company during fiscal 2005 was ? 341 million, an increase of 115. 8% over fiscal 2004. The net profit was ? 301 million during fiscal year 2005, an increase of 81. 3% over 2004. By June 2008, O2 had 1,070 unbundled exchanges covering over 57% of the UK population and having a 25. % market share of the total network subscribers. O2 is the largest company in terms of consumer penetration, with 13% of the market, due to having a very large number of national outlets. O2 has a wide product range, varying from basic mobile phones to the top quality, such as the iphone. Source (datamonitor, o2) The mobile phone industry began in the mid 1980’s, however, due to the developments of the early 1990s, such as the introduction of digital networks and the introduction of additional service providers into the market it took off very quickly.

This generated extra investment for the mobile industry to develop the technologically advanced mobile phones for consumers today. At this current time the mobile phone market is saturated; with 76 million subscribers in the UK in 2008 (Mintel 2009). Looking forward in time, it is thought by experts that volume growth should slow as penetration levels plateau and the growth will be focused more on the upgrading to more expensive phones once the economy shows signs of recovery.

As o2’s marketing consultant I will be carrying out an analysis of the current market, concentrating on both the ‘macro’ and ‘micro’ elements. The macro environment includes all factors that can influence the organisation, but that are out of their direct control, including PEST analysis (political, economic, social and technological). A very important macro element is the economy and the economic situation, particularly the state of interest rates.

If interest rates are high, individuals with mortgages will have less disposable income and therefore the concern for mobile phone retailers is that consumers may view a mobile phone contract as non-essential spending and either trade down to pay as you go or cancel it all together, leading to less turnover/profit for o2 and the industry in general. It will also affect o2 if they are borrowing money and may have to cut down on other costs, such as advertising, possibly leading to other competitors, such as Vodafone having an edge.

Consumer spending will decline during 2009 as consumers cut back and choose to save or pay down their debts. The current economic situation may lead to the first serious test of Telecoms as being ‘recession proof’; 2009 will be a tough year for the market in terms of investor confidence and the ability of the industry to raise capital for investment in mobile internet services which are hoped will create future profitability. Controlling costs while maintaining a quality product range to keep consumers happy is a key strategic issue for all operators and market players, especially o2.

From a social side of things, a change in the demographic structure, which can be described as the changes within the UK’s population, including age and sex (Jordan 2003) also affects o2. In absolute terms, the UK population is expanding, producing further sales opportunities. However, the age group forecast to grow the fastest over the next five years are the over-65s, who traditionally have counted for a low proportion of consumer spending. Having said that, many of these new over65s are baby boomers who have “grown older with technology” and will therefore be more receptive to new product launches and new technology.

The 25-34 age groups is also forecasted to grow strongly and this is a core category for many technology sectors. Technological factors play a major role in the market, for example, E-commerce has already become a key channel for the distribution of mobile phones with over a quarter of consumers shopping online without reference to a store. E-commerce is already an important channel of distribution for mobile phone retailing, with 27% of consumers buying their latest mobile phone online (Mintel 2009).

This will result in less face to face customer service required for o2 and may result in a reduction of in store jobs if this trend continues. This channel is predictably less popular with older consumers, who are conversely more likely to buy in store without looking online. Increasing internet penetration should also be looked at as a tool that not only empowers the shopper on a price perspective, but also as a way of providing the potential mobile buyer with knowledge about particular handsets. This gives o2 even more of a reason to ‘outdo’ other competitors in terms of innovation and design.

Macro elements will generate many issues for o2, but none that other competitors will not avoid either. The micro elements are the factors in a company’s immediate environment that affect its capabilities to operate effectively. O2 will be concentrating on their customers, employees, suppliers, media, shareholders and importantly their competitors. Shareholders number one aim is to make money and receive a dividend, considering the current economic climate this will require more effort from o2, leading to some different strategies/ tactics concerning decision making.

Increase in raw material prices will have a knock on affect on the marketing mix strategy of o2. Prices may be forced up as a result, leading to a possibility of a drop in sales. If o2 have a closer relationship with their suppliers then that could lead to higher quality mobile phones and therefore a competitive advantage over other brands. Employees are key to o2’s success and employing the correct staff and keeping these staff motivated is an essential part of the strategic planning process of an organisation.

Training and development plays an essential role particularly in the mobile phone industry, in-order to gain a competitive edge. O2’s survival is based on meeting the needs, wants and providing benefits for their customers. Failure to do so will result in a failed business strategy and also consumers are likely to move to a competitor. Competitors are a crucial area of the micro environment and O2 need to establish differentiation in their marketing in order to continue in the way they are.

Competitor analysis and monitoring is crucial if an o2 is to maintain its number one position within the market and keep competitors such as Orange and Vodafone below in terms of market share. Lastly within the micro environment is the effect the media have on o2. Positive or adverse media attention on my client’s products or services can in some cases determine the future sales. A good way to shape strategic decision making is to first look at a SWOT diagram. This is a diagram showing the strengths and weaknesses (factors relating to the company) of o2, compared to the opportunities and threats (factors out the company) for o2.

Strengths Wide customer baseProduct and service innovationStrong brand imageTop up surprisesMajor sponsorship deals| Weaknesses Weak performance in Irelandincrease in churn rate| Opportunities Continued 3G technologyGrowth in European residential Internet marketHealthcare and educationFinancial services| Threats Telecom consolidationSaturation in the European mobile marketEU regulation on international roaming| SWOT analysis. Fig. 1 Summary of some of the above: Strengths: O2 has a wide customer reach in most of its markets. As of September 2006, the company’s subsidiaries O2 UK and O2 Germany have approximately 17. million and 10. 6 million customers respectively. Similarly, O2 Ireland, with 1. 6 million customers has the second largest market share (40%) in its domestic market; and Telefonica O2 Czech Republic has approximately 1. 8 million customers. The company’s wide customer reach increases the cross selling opportunities for the company (datamonitor 2009) The most significant strength of O2 is its brand equity. A strong brand enables a significant price premium in the market, which leads to a sustainable long-term increase in margins.

Weaknesses: Churn rate, which is the number of disconnections for the preceding 12 months as a percentage of the weighted average number of active customers for the same period has seen a large rise in O2’s UK market. The churn rate was 30% in 2003 and sharply rose to 35% in fiscal 2005. In comparison, Vodafone, the largest telecommunications operator in the UK had a churn rate of about 27% in 2005 (datamonitor 2009). The rise in the churn rate in the post-pay segment would adversely affect the company’s average revenue per user.

Rising churn rate also imply increasing subscription acquisition costs, which directly affect the profitability of the company. Threats: O2 faces intense competition from European and international mobile telecommunications providers, such as Vodafone, T-Mobile, TIM (Telecom Italia Mobile), and Hutchison, all of which have international networks. Increasing consolidation in the telecommunications industry would further intensify competition putting pressure on company’s margins, which could affect the profitability of the group. European mobile markets have become saturated as a result of high penetration rates.

In 2005, the market penetration in the UK, Spain, Netherlands, and Switzerland was 110. 6%, 105. 3%, 102%, 95. 5% respectively (datamonitor 2009). This means that most of the population in Europe now owns a mobile phone and there is little room for any future growth. This can threaten to erode company’s revenues in this region in future. The identification of opportunities might be exploited using company strengths, whilst the identification of threats that must be addressed either using company strengths or through minimising areas of weakness.

Introducing strategies that can either minimise the areas of weakness or turn areas of weakness into strengths is very important for o2 as a group. Benchmarking is a marketing model and is the process of identifying, understanding and adapting outstanding practices from within the same organisation or from other businesses to help improve performance (Cook 1997) It will help o2 to focus on the external environment and improve process efficiency. Fig. 2 Source: http://www. e-benchmarking. org/graphics/steps. gif

After carrying out my investigation and analysis on my client, I will now put forward my recommendations, starting with the immediate factors to consider. O2 are in a very competitive market called an oligopoly, “A market dominated by a small number of participants who are able to collectively exert control over supply and market prices” (Salvatore 2006), so in order to get customers from the likes of Orange, Vodafone and other competitors cannot be achieved through just price. To do this O2 will have to offer other benefits to their consumers, such as, contracts with added extras.

Along with this, o2 will need to consider options concerning the iphone, such as a new advertising campaign and maybe different pricing strategies, due to Tesco now having a contract to sell the 3G handset. O2 will feel the power of Tesco if they do not adapt to the situation immediately. Looking at the medium term, I believe o2 need to communicate to their target audiences through new forms of media, for example, Facebook and Spotify. This would attract more consumers who wouldn’t usually see or hear the advertising.

Long term recommendations would involve looking at the rising economic conditions in East European countries, especially Poland and Hungary. They provide a huge market for telecommunication service providers such as o2. GDP of Hungary is expected to increase by 3. 9% in 2006, similarly in Poland the GDP has been growing at 4. 4% which is estimated to reach 4. 5% in fiscal 2006 (datamonitor 2009). With the improving economic condition in these two countries, the trade and business activity in the region would escalate.

The lack of presence in these emerging markets, where other players such as Vodafone and T-Mobile have already made a mark, deprives o2 of substantial revenues. Considering the weakening of the Western European economy, unless o2 moves into the East European market, the company would face serious problems in the future. Other long term strategies would be to continue with the sponsorship of England Rugby, Arsenal Football Club, 02 arena, as this is adding value to their brand name and also creating.. “better experiences for our customers.

At O2, we stick by our brand promise to be ‘better connected’ and offer our customers PRIORITY tickets to The O2 and all O2 Academy venues, whilst offering PRIORITY treatment at England Rugby and Arsenal events” (o2 2009). O2 have a very ‘sustainable’ advertising campaign with the bubbles that might be subtle but has become clearly linked to the O2 brand name and so could be used in other ways to advertise the o2 group. Before carrying out the strategic decision it is important to communicate. The relevant people, both inside and outside the organisation, need to be informed about the decision and how it may affect them.

After this is done the decision will be implemented using the resources of the business. After a while, managers and other key members of the work force should look at the results and obtain as much feedback as possible and finally see if the decision worked. It is important to see if it was the best decision and if it wasn’t how it could be improved on for next time to improve the situation. References Decision making:an organisational behaviour approach JM Pennings 1986 The basics of Benchmarking 1995 R. Damelio www. o2. com www. datamonitor . com http://www. e-benchmarking. org/graphics/steps. gif www. mintel. com

The Bypass Strategy

The Bypass Strategy

The Bypass Strategy Probably the most difficult and failure-prone of all plans, the bypass strategy enables attackers to bypass its chief competitors and diversify into unrelated products or markets. From a military perspective, this may work as a temporary flanking strategy, but in marketing it runs the risk of diluting the core business and central operating strategy, extending resources into areas where the company had no business being. Pepsico diluted its core competency—the production and distribution of soft drinks—to move into the fast food market, purchasing brands such as Taco Bell and KFC.

The move was well out¬side the influence sphere of its chief competitor, Coca-Cola. The Atlanta-based soft drink producer retrenched and stuck to its primary purpose—producing Coke. Coca-Cola was and still re¬mains the leader of the two brands in markets worldwide. One company that was able to diversify successfully was Virgin, the massive British-based music retailer that acquired and has made a rousing success out of Virgin Atlantic Airlines. According to entrepreneur/owner Richard Branson, if you” can succeed with one company, you can succeed with them all.

Branson’s belief is that if you break the right rules of business, you’re bound to gain ground. Go figure. Bypass attack The bypass attack allows the attacker to circumvent its chief competitors and diversify into unrelated products or unrelated geographical markets for existing products. For example,Eastman Kodak Co. successfully used a bypass approach into such diverse areas as electronics and biotechnology, with products as diverse as electronic publishing systems,cattle feed nutrients, and anti cancer drugs.

However, this relatively sudden move into diverse fields followed an ultraconservative period in which Kodak temporarily stalled and competitors grabbed such markets as instant photography, 35mm cameras, and video recorders. All of which were natural extensions of Kodak’s core business. The bypass strategy does include a measure of risk because expansion into a range of unrelated fields can diminish a company’s strength in any single area. An example of a somewhat unsuccessful use of bypass strategy is the Colgate-Palmolive Company. Although Colgate surpassed the Procter & Gamble Co. n many European markets and maintained a lead for its existing products there,in most North American markets Colgate remained behind Procter & Gamble. Related Terms: Dictionary of Marketing Terms offensive warfare marketing warfare strategy whereby a company in a second or third position will attack a competitive leader in the marketplace. Offensive warfare differs from defensive warfare in that in defensive warfare, the market leader is protecting its position, whereas in offensive warfare, the market challenger is launching an attack on the market leader.

There are five basic offensive strategies: (1) frontal attack, where the challenger attacks the competitor’s strengths by matching the product, price, advertising, and distribution; (2) flanking attack, where the challenger attacks the leader’s weakness by filling gaps not filled by the competitor and by developing strong products where the competitive products are the weakest; (3) encirclement, where the challenger attacks from all directions; (4) bypass attack, which is not really a direct attack but one where the challenger bypasses the competitor and targets an easier market, hoping that demand for its product will overtake the competitor’s product; (5) guerrilla attack, where the challenger makes small periodic attacks with price cuts, executive raids, or concentrated promotional outbursts, hoping eventually to establish permanent footholds in the marketplace. Dictionary of Marketing Terms defensive warfare competitive marketing strategies patterned after successful military defense strategies. Also called marketing warfare, defensive warfare is used by market leaders to protect their position in the marketplace against competitor attacks. There are six basic strategies: position defense, the most basic defense, which consists of building fortifications around the current market position; flanking defense, keeping careful check around the lanks and protecting the more vulnerable areas; preemptive defense, assumes that an ounce of prevention is worth a pound of cure and strikes out at competitors before they can make a move against the leading product; counter offensive defense, where the market leader studies the competitor’s offense to find a gap and make counterattacks at this weak point; mobile defense, wherein the market leader stretches to new markets that can serve as future bases for defense and offense; contraction defense, a strategic withdrawal from the marketplace, giving up weaker positions and concentrating resources on stronger ones, or serving fewer markets but serving them much better.

What Is Participative Leadership?

What Is Participative Leadership?

Participative leadership is a style of leadership that involves all members of a team in identifying essential goals and developing procedures or strategies for reach those goals. From this perspective, participative leadership can be seen as a leadership style that relies heavily on the leader functioning as a facilitator rather than simply issuing orders or making assignments. This type of involved leadership style can be utilized in business settings, volunteer organizations and even in the function of the home.

One of the main benefits of participative leadership is that the process allows for the development of additional leaders who can serve the organization at a later date. Because leaders who favor this style encourage active involvement on the part of everyone on the team, people often are able to express their creativity and demonstrate abilities and talents that would not be made apparent otherwise. The discovery of these hidden assets help to benefit the work of the current team, but also alerts the organization to people within the team who should be provided with opportunities to further develop some skill or ability for future use.

Participative leadership also expands the range of possibilities for the team. When leadership styles that essentially leave all the direction and decision making in the hands of one individual, it is much more difficult to see a given approach from several different angles. When the leadership style encourages others to be involved in the decision making process, a given course of action can be approached from a variety of perceptions. This can often point out strengths or weaknesses to the approach that would have gone unobserved and thus unresolved without this type of participatory brainstorming and decision making.

One potential disadvantage of participate leadership is the time factor. This leadership style does often involve the need for more time before action is taken. This is only natural, since the very nature of participative leadership means allowing input from every member of the team. However, the extra time necessary for this process often leads to decisions that ultimately benefit everyone to a greater degree than faster decisions that are more limited in scope.

Effective participative leadership allows the talents and skills of all the team members to be utilized in arriving at decisions and taking courses of action. While the team leader is usually still responsible for making the final decision, this sharing of functions within the team provide the perfect environment for everyone to provide input that has the potential to make that final decision more well rounded and ultimately profitable for the company as a whole.