Innertips

Product Life Cycle impact Competitive Strategy

2023-09-30T05:03:00.000-07:00

The product life cycle is a process that a product goes through into the time it initially appears on the market to the time it is refused or eliminated. The product life cycle is divided into four segments. Introduction, growth, maturity, and decline.

The first stage is once a product has been produced then that is introduction. At this point, the product has been introduced to the market. In this stage, marketing and promotion are quite important. Due to the high cost of product launch, profits are non-existent. The corporation can obtain a feel of how consumers react to the product at this point. The corporation might adopt two techniques during the introductory stage: skimming and penetration. In a skimming approach, the corporation can charge a premium price while stating that the product has technological superiority, greater properties, and quality, as well as a large advertising budget to establish rapid and widespread market awareness. You have to encourage a huge number of people to test out your product. the corporation intends to try this skimming approach with a high pricing and big advertising in order to maximize earnings. Before a rival copied or imitated the product and entered the market. The second penetration technique is for certain businesses to increase their market share. They think that, in the long run, a bigger volume of sales will result in reduced unit costs and more profits. They decide on the lowest price based on the assumption that the market is sensitive to prices.

Growth is the second stage. Consumers are already using and purchasing the product at this point. As a result, sales are growing. Other businesses learn about the product and begin to promote their product. Sales are normally rising and producing income at this point. This stage of marketing sought to increase the product's market share. These three tactics can be used by a corporation in its early stages of development. First and foremost, raise the level of output. The second step is to increase the quality. To increase its product quality standards, the company will take initiatives to upgrade its product quality standards. Quality will contribute in increasing sales of the company's goods. Intel chips, for example, are always working to help increase their quality. The third option has a lesser price. Companies may cut their prices based on the scenario in order to increase their market share and position. In order to attract more consumers during the off-season, several airlines cut their base fare.

Maturity is in the third stage. Since the product has gained acceptability from the majority of possible purchasers, sales growth has slowed at this point. Due to rising competition, profits have remained or decreased. The following three tactics can be used by a mature organization. The first is product customization. When sales are flat, the first thing a corporation may do is change the product's attributes in order to make it more appealing and to keep it on the market. The company will seek out new markets or segments which are unfamiliar with the product or have yet to test it. The third step is to change the marketing mix. The company may look at making certain changes to its marketing mix, such as price and promotion. The simplest strategy to attract the lower-income group or segment with lesser income is to cut the price or offer a larger discount.

The fourth stage would be the decline stage. In the decline stage, product sales fall and customer behavior shift as demand for the product declines. The company's product is losing market share, and revenues are declining as a result of increased competition. We can employ one of the three tactics listed below during the decline period. Harvesting method is number one. In order to maximize profit, the company eliminates all useless marketing costs. However, this technique is followed until the corporation can no longer keep up sales and the product are eventually phased off of the market. An often-known example of a harvest approach is the telecommunications land line company. It was no longer essential to have a landline phone due to the availability of a wireless signal. Concentrated strategy is number two. Even when the business is in decline, the company focuses on a few key areas where its marketing activities are more successful than other segments. Strategic alliances are ranked as the third. The company may decide out an alliance with other organizations that are interested in working together or improving product features, and the product's market value helps to maintain the product and increase profit for a period of time. Each firm may target opportunities from the other's current client base due to the strategic alliance.

Value Chain Analysis of a Market with a Differentiation Strategy.

2023-09-30T04:50:00.004-07:00

Primary Activities

There should be Inbound logistics. Customers desire unique items with differentiated features, which is why I must place a premium on quality, which will need obtaining high- quality raw materials and other goods from suppliers. To do so, I need to establish and maintain positive relationships with their primary suppliers, who can supply me with high- quality raw materials.

Better Operations must be adapted. As buyers desire high-quality products with unique characteristics, I'll have to provide high-quality products with unique features. I'll also need to establish adaptable systems in order to respond rapidly to changing client needs.

There should be Outbound Logistics. As in order to establish complete customer satisfaction, I must assure that goods are supplied precisely and on schedule.

Better Marketing and Sales must be provided. When adopting differentiation approach, I will need to create strong good relationships with customers and invest money in successful promotion and advertising programs. There should be After-sales service. In order to supply after-sales service, a properly trained team should be in place to assure maximum customer satisfaction.

Support Activities

There should be improvement in Infrastructure. There should be Long-term investments in new technologies and innovative products, as well as marketing and advertising to provide great services.

There should be Human Resource Management. Company should provide new technology knowledge, investments in training should be made, as well as people with high qualifications who can provide breakthrough services. Employees should also be compensated more for their creativeness, according to HR.

I must collect and create superior information systems in order to obtain up-to-date market information and real-time information in all domains. The broad systems will provide overview of the entire company. For instance, the sales department will be able to determine whether or not the things that customers want are in stock. How far along they are in the manufacturing process and when they can be delivered on time. ERP systems will also be used to connect the information of the entire organization.

There should be better Procurement process. It is necessary to obtain high-quality raw materials.

Internal Growth Strategy VS External Growth Strategy.

2023-09-30T04:34:00.002-07:00

A corporation can grow using two ways. The first is an internal growth strategy, whereas the second is an external growth strategy.

The following are internal growth strategies:

Market Penetration- Market Penetration refers to a company's ability to grow through boosting sales of existing items to existing market groups without altering the product itself. Its goal is to expand its market share by heavy marketing to existing clients. In market penetration, there are two options. As I may sell to my present consumers who have previously purchased my goods. I can either persuade them to purchase more or I could just select a small portion of the competition. For example, Lux soap sells a blister pack with 3 soaps, and when someone buys two, they get a another one for free. As a result of this technique, Lux soap is able to sell more products to its customers. Another thing I'm aware of is that there are clients that consume Keya soap. So, in order to attract Keya soap’s customers, Lux soap can run a promotion. For instance, if anybody buys Lux soap, he will receive a small shampoo packet.

Product Development- A company's growth is based on the modification or introduction of new items to existing markets. This determines what customers desire and need. This establishes innovative and distinct trends. Through research and development, a new product is created. If sufficient research is not done and new items do not meet client wants, the strategy might be dangerous. For example, Google has added a variety of new technology products.

Market Development- A company's growth is based on finding and developing new market segments for existing items. Managers could do research into new geographic markets. It could be attempting to reach out to a new market sector than its usual customer.

Diversification- Diversification refers to a company's expansion into new areas with new items that are either connected to or wholly different to its current product. This type of tactic can be extremely dangerous. When implementing a diversified growth strategy, a corporation must prepare properly. Marketing research is necessary because a corporation must identify whether consumers in a new market will be interested in the new products.

Microsoft is a very good example of internal growth strategy. When Microsoft recognizes a new market with opportunity for its products and services, it enters it. HoloLens, for example, was previously exclusively available in ten countries, including the United States, the United Kingdom, Canada, Australia, and Germany. HoloLens was distributed to an additional 29 markets after demand for the device grew on a worldwide scale.

The following are external growth strategies:

Merger- Merger is an external expansion strategy in which the operations of two organizations are combined on a relatively equal level. In most cases, a merger occurs between two companies that are on an equal level. The companies decided to merge in order to get more market share. When two organizations merge, the top management of both companies sets their strategies. Mergers take place between two corporations in specialized markets, rather than across all marketplaces.

Acquisition- Acquisition is an external growth strategy in which a corporation buys another corporation in order to extend its business. This type of approach could be used by a company to expand its product line and reach new markets. A growth plan based on acquisitions can be risky, but not as dangerous as a diversification strategy. The basic goal of acquisition is to get more market share.

Strategic alliances- Strategic alliances are agreements between two or more companies to collaborate for the mutual benefit of both parties. It is not a complete transfer of ownership between the involved parties. Instead, organizations aggregate their assets and resources for a limited time in order to achieve set objectives while staying fully independent.

In 2005, Google paid an estimated $50 million for Android. It is one of the best examples of external growth strategy. Android was a relatively unknown mobile startup at the time, so the action attracted attention. The acquisition, on the other hand, provided Google with the resources it required to succeed in a market occupied by Microsoft and Apple.

Coca-Cola Company's SWOT Analysis

2023-09-30T04:21:00.000-07:00

Strengths

Variety of items- One of Coco Coal's great strengths is the wide range of products it offers across many categories. Coco Cola owns over 500 brands and operates over 200 businesses.

Market Share- Through the use of a market share of 43 percent in the soft drink business, they have a strong position comparison to many other competitors.

Brand recognition- Coca-Cola is one of the most well-known brands worldwide, which offers them a great advantage over its rivals. It also guarantees that any new product or brand they invest in it will receive attention extremely quickly.

Secret recipes- The Coca-Cola Company become successful because of possessing a secret formula for their trademark beverage. It means that competitors will have a hard time replicating this product.

Weaknesses

Health trends- One of the company's most important problems is its failure to respond to existing health trends. As individuals grow more aware of harmful foods and the quantity of sugar they consume, soft and sugary beverages are progressively being substituted with healthier alternatives.

Sugar substitute- Another health-related issue for the company is its difficulty to improve product quality while sacrificing its well-known taste. Coca-Cola has spent years searching for a healthier sugar alternative but has failed to develop one.

Opportunities

• Health trends- If the Coca-Cola Company closely analyzes and adapts to current health trends, it has a tremendous potential to expand its market share. Gaining a higher proportion of the soft drink market is also a goal. Mainly whether they can locate a healthy sugar replacement.

• Few Major Competitors- Despite the brand's popularity and the fact that there are only some big competitors for these types of products, Coca-Cola can easily present new items with the correct marketing plan.

Threats

Healthier alternatives- There is firm's domination in the market in soft drinks, however there are numerous healthier alternatives available. People are increasingly preferring tea, sparkling water, smoothies, organic drinks, freshly squeezed lemonade, and other alternatives as they grow highly health conscious.

Negative press and media coverage- The Coca-Cola Company is well-known for its brilliant marketing methods and outstanding brand image, but it gets a lot of negative criticism for being harmful to one's health. In-depth investigations, YouTube videos, and even stories from reputable publications like The Telegraph could be harmful for the company in the long run.

Business Level Competitive Strategies

2023-09-30T04:02:00.006-07:00

The basic purpose of business-level strategy is to provide higher value to consumers while also gaining a competitive advantage. Cost leadership, differentiation, focused low cost, focused differentiation, and integrated low cost differentiation are five different company level strategies.

The term "cost leadership" is sometimes used to describe a wide low-cost strategy. The term "cost leadership" refers to a company is committed to provide the best price to its consumers. The term "best pricing" refers to a company's commitment to provide the lowest feasible price to its clients. There are businesses that compete to provide clients with the best possible cheap price on practically everything. The method works well in marketplaces when products and services are almost identical and that there is no way to provide variation. The biggest disadvantage of the cost leadership strategy is that buyers may be hesitant to purchase the items because they believe the quality would undergo as a result of the low price. Walmart strategy is efficient and large-scale, allowing them to acquire the lowest pricing on items and offer them at lower prices than other vendors.

Differentiation is the next technique. Broad differentiation approach is another name for it. Such businesses will offer something different that no one else their competitors can do, allowing them to charge far higher prices than their competitors' products. Superior functional features of the items must be used to differentiate the products. On superior

design, branding, and customer service, businesses can charge a premium. In marketplaces where customers' needs and uses of products and services are varied then differentiation is beneficial. The big disadvantage of a differentiation strategy is that it involves a large investment in research and development in order to generate a differentiation product whose pricing could be out of budget for customers. Apple is a company that effectively uses a differentiation strategy to sell its laptops to a large market when it has unique design and engineering that allows it to appear out from the industry and charge a premium price while still competing.

There is the focused low-cost strategy. You will offer a lesser price here, but you will not attract to all in the market. You've narrowed your concentration to a small segment. There is still a need for low-priced items for a certain sector of customers that focus cost approach works well. The biggest drawback of this method is that if you're targeting a certain demographic, sales may not be as high as you'd like. Checkers is a drive-in only fast-food business established in the United States. It saves money over its competitors since it doesn't provide seating for consumers and its facilities are less costly to build. Checkers is a business that focuses to the lower part of the market. Despite this, Checkers is able to maintain strong profits due to its very little overheads.

Then the focused differentiation. You will be unique among rivals, and no one else will be able to duplicate your product or service. You will also charge a premium price, but only for a very tiny niche. When no one else in the market is trying to target a certain market group in a unique way, focus differentiation is successful. The major weakness of this method is the changing in client preferences. It's pointless if the clients for whom it's produced later decide they don't like the items. Rolls-Royce cars have a focused differentiating strategy. Since they are premium priced and focus on a small fraction of the global automotive market, their cars are identified with luxury, standard, and engineering excellence.

The integrated low-cost differentiation method would be the last approach. It combines the best of both environments. You are offering the fairest pricing with extra value. Manufacturers create value by differentiating their products while yet charging a reasonable price. It appears to be a difficult task for businesses, and it is, but with the help of modern technological advancements, businesses can now do this. The Integrated Cost Leadership/ Differentiation method is useful when customers are value-conscious and seeking for attractive product qualities. The most obvious issue in this technique is that organizations that utilize low-cost and distinctiveness methods may take potential consumers. Air Arabia is a perfect example of a hybrid business approach in which a creative airline firm delivers superior services in terms of comfort while still offering a low- cost price by simply cutting on premium in-flight services.

Porter's Five Forces VS Blue Ocean

2022-08-24T05:21:00.005-07:00

Porter's Five Forces is much concerned with the micro-environmental issues impacting enterprises in same sector than it is that keeps a corporation compete in current markets. Competitive rivalry, new entrants, buyer power, supplier power, and threat of substitution are all factors that, if seized will not actually make you a market leader. One criticism of this model is that businesses are not always in a competition whereas Blue Ocean Strategy is a strategy that an organization uses in a new level that its competitors haven't yet stepped into. As a result, the company effectively develops its own new market, which if successful then will uplift you to the position of business leader through active innovation. So, there are some firms today that are dealing with various obstacles in their organization that are being addressed to the management, which is why the firm has certain strategies. The insights suggest that current markets may have a lot more opportunity than previously assumed. The majority of the business press focuses on new and rapidly rising industries; however, this study demonstrates that innovating in established markets is a useful solution, and that competition is a considerably weaker factor in reducing the advantages from that type of innovation. And, more importantly, the sort of innovation you need to consider does not have to be new or revolutionary. In the market, it is more progressive, adaptable, reshaping, and moving forward. Porter's approach is built on the principle that a company's strategy should be adapted to the opportunities and threats it faces in the external environment. Competitive strategy, in particular, should be based on an understanding of industry structures as well as how they develop. Every industry and market are shaped by five competing factors, according to Porter. These forces influence the level of competition and, as a result, an industry's profitability and attractiveness. The goal of corporate strategy should be to alter these competitive factors in such a manner that the organization's position improves. Porter's model aids in the study of an industry's major drivers. Management can select how to modify or utilize specific aspects of their industry depending on the information collected from the Five Forces Analysis. According to the Blue Ocean

Strategy, innovation should generate new market space, connect into unfulfilled customer demand, and seek out unique market. Competition can become almost meaningless in this situation. The term "blue ocean" is a metaphor used to represent the unexplored potential of market. Companies must be more than simply another rival in a developed and over- saturated industry, especially now. 'Value Innovation' is the core of the Blue Ocean Strategy. A blue ocean is formed when a firm accomplishes value innovation which benefits both the customer and the company at the same time. While simultaneously decreasing or deleting features or services that are less valued by the present or future market and innovation in product, service, or delivery must increase and generate value for the market. Both are competing approach. Porter's Five Forces helps firm to compete through five forces. Blue Ocean Strategy helps firms to identify innovation through differentiation strategy and cost leadership strategy to avoid competition.

Resource-based view of the firm

2022-08-24T05:09:00.001-07:00

According to the resource-based view model, a firm's ability to gain a competitive advantage is entirely dependent on its internal rather than external environment. Since everyone's external environment is the same. It is focused on the internal firm and believes that competitive advantage is obtained through using internal company resources and skills rather than external pressures. According to the resource-based concept, businesses rely on both tangible and intangible resources that are diverse and immovable. In terms of giving a competitive advantage, a firm's resources also should include specific characteristics. Those characteristics are valuable, rare, inimitable, and non-substitutable. Land, buildings, machines, and capital are examples of tangible resources that we can see and touch. Intangible resources are not visible or touchable. These are process expertise, as well as skills, competencies, and understand exactly. Intangible assets take years to create and are hard to obtain on the open market. The primary source of competitive advantage is intellectual knowledge. Two major assumptions drive the resource-based view. They are characterized by heterogeneity and immobility. The concept that resources are heterogeneous implies that resources vary from one business to the next, but also that companies in the same industry facing the same external influences might yet have variations in internal resources, resulting in differences in firm performance. For instance, Nike and Adidas compete in the sneaker industry and have the same industry structure. Nonetheless, the firms' internal resources are different, which explains their performance differences. The notion that resources are immovable essentially means that in the short term, resources cannot readily transfer from one organization to another. Competitors can't copy their rivals' resources or strategies since they're immobile. Many firms, for example, would like to have Nike's innovation capability, but developing such a strategic resource takes a long time and money, and it cannot be replicated rapidly. It doesn't move. According to resource-based view model, in order to get a competitive advantage, resources must have extremely specific features. Resources must be valuable, rare, inimitable, and non- substitutable. Resources are useful if they assist a firm in lowering costs, increasing distinction or combining cost and distinction qualities in a way that benefits customers. Resources must also be rare, which means they cannot be readily available to rivals. If everyone accesses a resource, it will be unable to create differential company performance and competitive advantage. In addition, resources must be inimitable, meaning they must be difficult or expensive to replicate and deploy so that competitors cannot quickly copy and apply your strategic approach. Resources must also be non-substitutable, meaning they cannot be replaced by readily accessible resources or, at the very least, finding a

substitutable resource must be costly for a competitor. Resources must be valuable, rare, inimitable, and non-substitutable in order to be useful to gain a competitive advantage. When organizations apply a value-creating strategy which their competitors don't, they get a competitive advantage. In comparison to competitors in the same industry, it results in higher performance.

Chemical Reactions That Form The Earth

2022-08-22T01:57:00.005-07:00

Earth formed approximately 4.5 billion years ago. Scientists thought the planets formed from the solar nebula. This is a process where matter gathered into clouds that began to condense and rotates, creating galaxy byproducts. So, pressure differences in galaxies have caused gas and dust to form distinct clouds. The gas mainly contains Hydrogen and Helium. There was sufficient mass and the appropriate forces, forced the cloud to suddenly fall down by gravitational attraction. As there was enough compression of the mass of material in the cloud, nuclear reactions started and a star was formed. A certain proportion of stars formed in the center of a flattened rotating disk of material. The gas and dust within this disk collided and combined into small grains in the case of our sun, and the grains formed into larger bodies as very small Planets. This process is called accretion. Several of which exceeded several 100Km in diameter. The planets formed with high melting points metals such as iron, nickel, aluminum, and rocky silicates. The compounds are quite rare. The Earth is having three atmospheres. The first atmosphere was made up of light elements from the solar nebula, mainly hydrogen and helium. This atmosphere may have been powered out by a mixture of solar wind and Earth's heat, as a result of which the atmosphere is now decreased of these elements compared to cosmic concentrations. There were regular meteor collisions and a choking atmosphere of carbon dioxide, ammonia, and methane. There were also quantities of methane, ammonia, sulfur dioxide, and hydrochloric acid. It was a wildly uninhabitable place in the early decades. There was no oxygen. There were frequent collisions with other structures that resulted in massive volcanism, half of the Planet was molten at that time. The Moon is assumed to have been formed by a massive impact collision with a planet-sized body called Theia. The molten Earth emitted poisonous gases during the collision that formed the Moon and later more gases were released by volcanoes, completing a second atmosphere that is high in greenhouse gases because of carbon dioxide, methane, and ammonia. The average temperature of the Earth's surface will be approximately −18 °C (0 °F) without greenhouse gases, rather than the actual average of 15 °C (59 °F). The planet's rapid outgassing released huge amounts of water from the mantle, producing the oceans and the hydrological cycle. The acids that were found in the atmosphere eroded rocks, creating rocks that were high in carbonate. The high volcanic activity on Earth may have released sulfur dioxide in the atmosphere between 3.9 and 4 billion years ago. The sulfur would finally have settled as sulfidic anions in water. The level of carbon dioxide decreased when more water evaporated, the atmosphere warmed, and the hydrologic cycle became more intense, increasing rainfall and runoff. The atmospheric carbon dioxide combined with rainwater to produce drainage of carbonic acid, exposing minerals to weathering in the soil. Silicate minerals that were in the atmosphere mixed with carbon, absorbing it in sedimentary rocks. Photosynthesizing microorganisms, such as phytoplankton may slowly extracting carbon dioxide from the air and seas by turning it into calcium carbonate sediments. The Bacteria may raise the carbon dioxide level in soils by breaking down organic matter and creating humic acid. The two-process may increase weathering and remove carbon dioxide from the atmosphere. Finally, in the third atmosphere, there is a high oxygen level. Oxygen is produced from algae in the oceans. But because this gas is extremely reactive and because in the oceans there were many reduced minerals like iron that are rapidly oxidized. Carbon combines with nitrogen to form Hydrogen cyanide. The cyanide had rained down into pools about 3.8 billion years ago, combined with metals, evaporated, baked, and exposed to ultraviolet radiation, and melted into streams running down to a freshwater lake. The chemicals formed there from the cyanide reactions combined in different ways to produce lipid, nucleotide, and amino acid. Organic molecules RNA(Ribonucleic acid) had been developed that can lead to the creation of biological life that involved in protein synthesis. Hydrogen cyanide, hydrogen sulfide, and ultraviolet light are able to synthesize RNA. At the moment, much of it would have been easily accessible on Earth. Hydrogen sulfide may have remained mainly in the atmosphere, instead of rising up in the water. However, those sulfidic anions could theoretically serve the same chemical function as it produces biological molecules. It may created ribonucleotides. The monomer that forms the fundamental building blocks for RNA created from ribonucleotides. This is how life may evolve on Earth. There was continuous continental drift due to volcanoes in sea level that created continents. The plates are moving because lava is created and creates pressure to the rift.

Forces and Chemical Reaction on Rocket

2022-08-22T01:46:00.002-07:00

At first the rocket is in steady state. In the rocket, there is a chamber that contains fuel. The fuel is typically Kerosene or liquid hydrogen of a liquid propellant rocket. Liquid oxygen is an oxidizer. They are mixed in the combustion chamber when the engine starts. The propellants burn and produce extreme temperature and pressure. The gas is produced through the nozzle and goes out of the engine and the rocket goes up from the launchpad. At first, it follows the third law of motion. Every action has an equal and opposite reaction. The action is called the thrust force expels gas out of the engine. The rocket moves in the opposite direction which is a reaction. The trust of the rocket unbalances the forces and must be greater than the mass of the object then it will go up. A weight force is acting toward the center of the earth which depends on the mass of all the parts of the rocket that is pulling the rocket downward. The drag force acting opposite the rocket to opposes the rocket motion through the air. There are lift force acts on the perpendicular in which the rocket is moving which helps to balance and control the direction of the flight. The lift and drag forces depend on the shape, size, velocity of the rocket, and atmosphere properties. The trust force continues and the rocket is using up the fuel and some rocket parts fall off. Most of the rocket have three-stage of engine. When the first stage engine is separated the thrust force is same and the mass decreases and the rocket accelerates. It then follows newton’s second law of motion that when force is applied the speed increases, decreases, or changes direction. The velocity should be more than 25,000 miles per hour to enable a rocket to leave the earth into deep space. The second stage engine burns and sends the rocket to Earth’s orbit. There is accelerating motion as it is changing direction. There is centripetal force because force acts on rocket by moving circular path directed inward toward the Earth. Centrifugal reaction force directing rocket away from Earth. The rocket is in free fall state as the rocket is always falling down. The rocket then orbits the earth one and half times and separate the second stage engine. The third engine starts and the mass decreases and the rocket accelerate more but the thrust force is same. When the third engine stage separated, the rocket comes to the limit where there is no gravity. The faster the fuel burned, the faster the gas produced and much greater the trust of the rocket. There is only thrust force passed from the third engine stage to the rocket. The rocket keeps on moving and into deep space, there is no air so no drag force, no gravitational pull so no weight force and the rocket will follow the first law of motion which is the law of inertia. There is no atmosphere so the rocket will move in constant velocity in the same direction unless an unbalanced force acts upon it. Most of the time rocket will follow the law of inertia as the rocket will take a lot of time to go near the moon. It will take at least three days to reach the moon. Rocket has to travel 240,000 miles. When the rocket comes near the moon, the rocket will stop in lunar orbit. There is accelerating motion as it is changing direction. There is centripetal force because force acts on rocket by moving circular path directed inward toward the Moon. Centrifugal reaction force directing rocket away from Moon. Rocket will be in free fall state. Then the lunar module from the rocket will make the journey to the surface of the moon. The command module will be in lunar orbit. There is a gravitational pull called weight force on the lunar module. The gravitational force is 1.62 m/s² which is 1/6 compare to Earth. Again, the lunar module follows the second law of motion as the lunar module will attract the moon. The lunar module starts the descent engine and follows the third law of motion. The fuel burned and the gas is produced and the Thrust force is created which is less than the mass of the rocket. The lunar module slows down and drops into a lower orbit and stays over the surface. There is no drag force or lift force because there is no atmosphere on the moon. It also follows the second law of motion because it is decelerating and decreasing the speed and change the direction. Then the lunar module will slowly land on the moon.

Comparison between Environmental determinism, strategic choice and stakeholder approach

2022-02-22T21:17:00.002-08:00

Stakeholder approach

According to stakeholder theory, organizations have a responsibility to look out for the interests of all stakeholders. Anybody who will be affected by the organizations' operations is referred to as a stakeholder. Any firm must produce value for customers, suppliers, staff, communities, investors, and shareholders in order to be successful. It states that you cannot consider any of the stakes or stakeholders in alone. Their interests must match: what is good for customers must also be good for suppliers, and what is good for shareholders must also be good for communities. A manager's or entrepreneur's task is to work out how to match up the interests of customers, suppliers, communities, employees, and financiers.

Environmental determinism

The I/O model is also known as environmental determinism. According to the industry organization model, a firm's ability to gain a competitive advantage is entirely dependent on the external environment rather than the internal environment. This says that in order to generate above-average returns, strategy is decided by the external forces and limits. In order to implement strategy, it also requires that resources are highly movable among firms. This says that when developing a plan, you must take into account all external circumstances. First, I'll need to research the external environment, which includes the general environment, industry environment, and competitor environment. However, in particular, we have properly researched the industry environment in accordance with this model. After researching the external environment, I will be able to determine which sector will be worth to invest in, and I will choose an industry based on that information. In the third step, I'll need to develop a plan for the industry in which I'll be operating in order to generate above-average returns. In order to implement the approach, I'll need to acquire or develop assets and talents in the fourth step. Finally, the plan will be implemented using the talents and assets that the company has created or acquired.

Strategic Choice

The resource-based view model is also known as strategic choice. As to the resource-based view model, a firm's ability to gain a competitive advantage is entirely dependent on its internal rather than external environment. Since everyone's exterior environment is the same. This is focused on the internal firm and believes that competitive advantage is achieved by utilizing internal firm resources and skills rather than external forces. The resource-based view paradigm evaluates the firm's strengths and weaknesses. The second stage reveals the firm's strengths that are higher than those of its rivals. Then it decides if any of the firm's resources and talents can give it a competitive advantage in the third step. The fourth step requires the company to choose an industry with a strong profit potential. In the last phase, businesses must create and implement a plan for earning above-average returns via the effective use of their resources and talents.

Potential entrants and substitute products

2022-02-22T21:10:00.001-08:00

Potential entrants are new or existing businesses that are not yet rivals but may enter the market in which your firm operates. Companies may consider entering the industry or area in which you work for a variety of reasons. Low entrance barriers, for example, are one of these. Suppliers are easily accessible. Distribution is easy. Customers aren't extremely loyal to brands. Customers can swap brands at a low cost. Economies of scale achieved rapidly and simply. Government regulations have made it simpler to get into the industry.

There will always be potential entrants eager to offer you with competition if a sector provides rapid or huge potential returns. Some industries are less difficult to get into than others. For example, a corporation joining the service industry faces less restrictions than one entering the manufacturing industry.

A substitute product uses an alternative method to achieve the same or identical purpose as an industry product. Even though they don't appear to be similar on the surface, they fundamentally meet the same underlying need. As a result, they're simple to ignore. Literally having these items raises the likelihood of customers switching to alternatives. You need to go beyond identical products that are labeled differently by rivals to find these options. Instead, any product that meets a similar customer need should be considered. Red bulls, for example, are not often thought of as rivals to coffee companies like Starbucks. However, because both coffee and energy drinks satisfy the same demand of remaining awake or gaining energy, customers may be prepared to move from one to the other if they believe the price of either coffee or energy drink has grown excessively. The overall threat of alternative products is thus determined by the quantity of substitutes, consumers' willingness to substitute, and the relative price performance of substitute products.

Strategic groups and Common mistakes in identifying competitors.

2022-02-21T00:08:00.003-08:00

Even though an industry may include a large number of companies, not all of them are competitors. We need to know about strategic groups in order to figure out who may be my immediate rivals in a certain business. Companies in the same strategic group compete against one another. Firms that will adopt or are pursuing similar strategies will be grouped together under the same strategic umbrella. Those that are part of the same strategic group will have similar strategic goals and plans. This implies we may combine those companies into a strategic group with whom we have common strategies and strategic dimensions. The rivalry will be fiercer among companies in the same strategic group than among firms in other strategic groups. In addition, among the enterprises in the same strategic group, there will be a wide range of performance. There are five different strategic dimensions to consider. Extent of technological leadership, product quality, pricing policies, distribution channels, and customer service are the five strategic dimensions. This means that organizations who want to use technology extensively will be placed in a comparable strategic category. Companies with similar product quality will be placed in the same strategic group. Companies with identical pricing policies will be placed in the same strategic group. Companies with identical distribution channels will be included in the same strategic group. Finally, companies that provide similar customer service will be placed in the same strategic group. Whether these companies think like me or not, being in a similar strategic group has strategic significance. Those that think strategically in the same way will be part of the same strategic group, and they will compete against each other.

The most typical error in identifying direct rivals is that companies look at only a few competitors that have comparable business models to them, that competitor analysis is done only once and only evaluated quarterly, and that indirect competitors are ignored.

Executives utilize Competitor Intelligence tools to help them analyze direct rivals. For example, there are ten firms in the same strategic group as me, and there are nine companies without me. Now the question is who are my immediate rivals among these nine firms. If executives wish to learn more about their direct competitors, they must do a competitor analysis utilizing a competitor intelligence tool, in which they must assess their competitors using four criteria. If these four criteria match some of their competitors in the same strategic group, they will be called direct competitors. One is whose long-term goals are similar to their long-term goals. Then, which has a current strategy that is similar to theirs. Third, which firm’s industry assumption is identical to theirs. Last but not least, whose capabilities are comparable to theirs. If all four of these criteria are met, they are direct competitors.

The relationship between a firm and the various levels of external environment.

2022-02-20T23:47:00.003-08:00

The relationship between the company and the different levels of the external environment is absolutely vital. Since the external environment has a huge impact on whether or not a business will perform in the long run. As a result, coping with the external environment is a challenge for businesses. The term "external environment" refers to everything outside of a control of a company. That has the ability to have an impact on it in some way. As a result, we work on the assumption that, both as individuals and as businesses, we have very limited control. There is a plenty of things that happens outside of a company's control. Firms can only do their best to pay attention and foresee them. There are three layers to the external environment. Broad environment, industry environment, and competitor environment are the three levels.

The first level is the broad environment, often known as the general environment. If a firm seeks to be in business for years, it must be aware of its surroundings. Businesses will not be able to thrive in the long term if they are not aware of the components of the larger environment, which include economic factors, technical factors, sociocultural factors, and political/legal factors. They must analyze the broader environment based on these characteristics in eliminating dangers and act on opportunities that emerge from the broader environment. If it's done, they will be successful in the long term.

The next level is the industry environment, sometimes known as the operating environment. Businesses must also analyze the industrial environment in order to remain in business for an extended period of time. The examination of the industrial environment will benefit the organization in finding the proper industry. It will provide business insights on whether or not the industry is successful. The industry analysis is carried out using Porter's five forces of competition model, which determines whether or not the sector is appealing. Threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products, and Intensity of Rivalry among rivals are the five factors. When the five forces threats are high, industry profitability is low; when the five forces threats are low, industry profitability is high. Hence it is critical to understand the industry environment; otherwise, whereas if industry environment is not evaluated, companies may select the wrong industry for them, which may negatively impact their business in the long run.

In the operating environment, I believe the buyer is perhaps the most essential stakeholder since whether the firm survives or not in the long term is completely dependent on the purchasers. If the companies are unable to meet the demands of the customers, they will be unable to sell their products to them, leading to huge loss. Therefore, as result when firms are producing products, they must consider whether their customers will like them or not, because it is eventually through the money of customers that firms will be able to survive.

The third level of external environment is the competitor environment, sometimes referred to as the task environment. Companies must also analyze the competitive environment in order to identify who their main rivals are. Businesses will be able to learn about their direct competitors' actions, responses, and intentions with the help of competitor analysis. The results of these three analyses, when combined, have an impact on the firm's vision, mission, strategy selection, and competitive actions and responses.

Industry Analysis of Aerospace industry Using Porter’s Five Forces

2022-02-20T23:30:00.002-08:00

Threat of new entrants: Weak

It is challenging for new brands to get into the business due to the large money required to start a Aerospace brand. At the start, a large amount of cash will be necessary to build up the manufacturing facilities, distribution network, and employ qualified staff. The degree of competition from current brands is another key big obstacle. Unless a new brand brings an original and differentiated product to the market, the chances of earning a large market share are minimal. Although the law has not previously been a barrier to newcomers, legal requirements have expanded in recent years, creating even another barrier to entry. In terms of brand image and reputation, new players may face huge obstacles. In terms of brand image and equity, existing brands have a huge advantage. Any new brand would have to place a strong focus on product engineering and quality. Although raw materials may be easy to get by, small businesses may struggle to achieve economies of scale. It's also challenging to enter into new markets.

Bargaining power of supplies: Moderately Strong

Suppliers have the power to influence an industry by raising prices or lowering the quality of acquired goods or services. Suppliers in the aerospace industry do not have a lot of negotiating strength. There are a number of providers to pick from, and all of the big players are forced to fight for market share. When customers in the aerospace manufacturing business are seeking to make a purchase, they know it will be expensive, and pricing will play a big role in their selection. There are several exceptions, such as when a supplier possesses vital technology that another company does not. In general, prime contractors in the aerospace sector can pick from a range of suppliers.

Bargaining power of buyers: Moderately strong

The aircraft makers, Boeing and Airbus, are frequently forced into fierce rivalry by airline firms. Airlines acquiring a big number of planes, such as China, which aggregates orders

from state-run airlines, may negotiate incredible reductions with prime contractors. Since these orders account for a significant portion of the total sales of aerospace prime contractors, purchasers are in a strong position to negotiate price reductions. Switching costs for aircraft and engines are extremely low, giving purchasers more bargaining leverage. Other planes and engines may be readily learned by airline pilots and maintenance. Most airlines were eager to cut costs after suffering enormous losses in the early 1990s, which had a direct influence on the prices requested for airplanes and engines.

Threat of substitutes: Weak

Since as an airplane's distinct speed and ability to go across water, companies in the commercial aircraft business such as Boeing, an aircraft maker, and Pratt & Whitney, an engine manufacturer, face essentially no risks of alternative products. Main producers dominate the industry. There are few companies and difficult for consumer to change service.

Competitive Rivalry in the industry: Very strong

Despite the fact that there are just a few major contractors in the aerospace business, competition is severe for the reasons mentioned above. Aerospace companies are desperately attempting to obtain huge contracts from airlines in order to cover their high fixed costs and significant expenditures in developing new aircraft and engines. The main contractors in the business are equally matched and have less diversity in their product lines, which tightens the rivalry even more.

The diagnostic role of HR managers

2022-02-07T23:48:00.005-08:00

HR managers have four roles that is important. The roles are The consultant-adviser role, The catalyst-facilitator role, The diagnostic role, The assessment role.

The diagnostic role of HR managers is most important above all. It helps to identify problems in the organization. Finding problems is very important for the company as it will help for the growth of the company. There might be many problems related to management. It is important to have a better structure of the organization that encourages effective performance. The organization structure should be flexible to face the changing demands. The structure should not be very complex. HR manager must identify areas where it is much complex. Staff must have clear roles and responsibilities so that they understand their work properly. The Organization structure should not push problems up and resolve them at the point where they occur. The Procedures and organizational methods should be easier to complete projects. The organization should have a good system. The employee selection and recruiting, promotion, planning, management, information, and monitoring will help the employees work better. The Organization should check the programs regularly to ensure they mutually benefit each other. Better culture also provides better performance. Employees must believe they share common interests with their coworkers and group. A strong team spirit is also important for employees. The employee must have sufficient skills for the job requirement. HR manager can identify their problem. There should also be appropriate leadership skills within the organization. HR manager can find ways to encourage employees so that they share their opinions about the company. They should be encouraged to be innovative and creative by their employers. This way they can solve their own problem. They can feel a sense of individual responsibility for their work. Finding problems will help to maintain quality in all parts of the organization. People of talent can be identified and developed for the future. HR managers can find those employees who need training and provide them training programs like Job enrichment and Management by Objectives (MBO). This will help to increase their productivity. The recognition and feedback should be used to motivate employees to work better. HR managers can later see the impact of those programs. Employees should know the expected performance standard so that they can work efficiently. There might be behavioral problems of the employee like rudeness or disrespect. This is a crucial problem in the organization and creates a conflict that hampers performance and productivity. HR managers can mitigate the problem to maintain the performance of the employees. HR managers can also search the dissatisfaction with pay and conditions and provide a better solution. Good performance of the employee is very important as it will help to increase profit for the company that is one of the main goals of any company. So, after finding a problem HR managers can provide a solution to the organization, and then it’s up to them if they want to apply.

Theories of motivation Explained with Melinda Wilkerson Case

2022-02-07T23:29:00.005-08:00

Melinda Wilkerson is an English Professor and her desk is piled high with student papers, journals, and recommendation forms. Melinda Wilkerson’s colleague is Ron Agua. Agua told her he had reduced his course load because of his extra work on the department's hiring and library committees. He cut down his office hours. Agua asked Wilkerson to join them if she ever got free while walked past her door to the way university’s most popular restaurant and meeting place. She noticed that student comes to her door consistently while Agua spends more time at the word processor rather than talk. Agua reduces his course because of the extra workload on department hiring and library committees but Wilkerson didn’t know about course reduction. As the semester progressed, she realized there was a lot she didn't know about the way the department functioned. When salaries for the next year were announced, her salary was very small while working for a longer period. Wilkerson realized that Agua would be making almost $1,000 more than her after the salary announcement for the following year. Agua’s work is a valuable asset and his three upcoming publications have made him popular than other professors. The university simply didn't value what she did with her time as she thinks she worked the same as Agua. She could quit and go somewhere else where she might be more appreciated, but jobs are hard to find. She didn't really feel discriminated against for being a woman. One day a note from one of her freshman students dropped out from one of the journals where she thanked her for helping her a lot for taking the time to talk to her last week. All her other professors are men, and she just couldn't talk to them. Wilkerson folded the note, put it in her bag, closed her office door and she released the pile of journals and the $1000 didn’t seem so important.

Melinda Wilkerson loses interest in her job because her colleague is getting more advantage than her. Still, she cannot quit her job because it would be hard to find another one. She found out that some students really need her help, especially female students like Wendy Martin. They can easily talk to her. They are very happy to talk to her. So, she would stay. She was not satisfied at first because she wants to be treated the same as Agua. She prefers a higher salary as she has a lot of pressure from the courses. Later, she changed her mind because at least she can help some students that gave her inner peace and makes her feel special.

The theory of Hierarchy of needs can be used to explain the behavior of Wilkerson and Agua. There are five essential levels of needs that are ranked from lower to higher. The first one is Physiological needs that have to satisfy externally. The needs are the biological requirement for human survival. It includes hunger, thirst, shelter, and other bodily needs. Food, drink, and clothing will fulfill the need. The second one is Safety needs which are also externally satisfied and lower order need. It includes security and protection from any bodily and emotional harm. The third one is Social needs that are internally satisfied and it is in higher order. It includes the need for belongingness, friendship, love, and affections. The fourth one is Self-esteem needs that include self-respect and appreciation by others. It is internally satisfied and it is higher order. Individuals will want to get attention, achievement, recognition, and have status. The fifth one is self-actualization that is also internally satisfied and it is in higher order. It is about self-fulfillment, the potential that the individual wants to achieve, and also includes personal growth. People are self-aware of their potential and want to experience something new. McClelland’s Theory of Needs can be used to explain the behavior of Wilkerson and Agua, which are the need for achievement, need for power, and need for affiliation. Need for achievement is the desire to achieve something that an individual does. Need for power is the need to keep influence and control another person to manipulate and to change his choice for the individual’s own desires and interests. The need for affiliation is the ability of an individual to have good interpersonal and social relationships with others. They will have all he three needs but one need will dominant them. Equity theory can also be used to explain the behavior of Wilkerson. This theory tells that an individual will compare the job input and outcome with others. Job input means the number of hours, commitment, enthusiasm, any personal sacrifice, Responsibilities, loyalty, and flexibility. The outcome means salary, bonus, holiday allowance, recognition, Promotion, the flexibility of work arrangement, and a sense of achievement. There are four types of comparisons. External is that comparing with someone in the same industries. Internal is that comparing with someone in the same organizations with different departments. The individual is comparing with someone in the same organization with the same department. Procedural that is comparing with the policy of organization with other organizations. Herzberg’s two-factor theory can also be used to explain the behavior of Wilkerson and Agua. Hygiene Factors are salary, work conditions, and company policies. So, the absence of hygiene factors will create dissatisfaction but not necessarily individual will be satisfied. Motivators include achievement, responsibility, and growth. It is related to satisfaction but not necessarily the absence of motivators, individuals will be dissatisfied. Expectancy theory can be used to explain the behavior of Wilkerson and Agua. There are three steps. The First step is Expectancy where it depends on the individual’s capability to achieve the desired level of task performance to complete the goal. The Second step is Instrumentality where the individual will get the reward by performing at a particular level. The third step is Valence where the reward satisfies the individual goal or not and also if it is important or not.

In the theory of Hierarchy of needs, Wilkerson completed physiological needs, safety needs, and social needs. She wants to be at self-esteem needs level. She wants recognition and attention like Agua as she thinks she worked really hard and she could have done exactly the same thing. Agua is in the self-actualization level as for the self-fulfillment he reduces his course and worked on the department’s hiring and library committees. He understood his potential and for peak experiences, he chooses this path. Also, he had three upcoming publications. In McClelland’s Theory of Needs Wilkerson has the need for achievement as she worked very hard to be successful and hoped to earn more money but it was not enough. Agua has the need for affiliation as he is very good with people because he spent more time with the department’s senior members and gives talks to groups around the state. In Equity theory, Wilkerson used individual comparisons. She found it an injustice as she worked more than her colleague but still did not get much pay compared to him where he reduced his course and got additional pay. There was no equity in the way they were treated which did not motivate her. In Herzberg’s two factor theory, Wilkerson has some hygiene factors. She gave the same effort as Agua but still, her salary was lower than him. She had a problem with work conditions as she had a workload because of many student papers and she was worried about the weekends. She is dissatisfied. At last, she was satisfied because she got some responsibility as she was able to help a female student. She got some motivation to stay in the job. Agua had some motivation factors as he got achievement and personal growth opportunities like he was working for department hiring and library committee. He was earning around $1000 more than her. The human resource committee recognized him as a valuable asset. People talk about him and he got three upcoming publications. So, he was satisfied. Expectancy theory can be used for Agua. In the expectancy step, Agua knew his potential and gave that amount of effort to become a good performer in his works. In Instrumentality, he got the benefit of additional income that is almost $1000 more than Wilkerson and he also became very well-known for his works. In valence, the benefit is very important to him and he likes it. However, Wilkerson remains dedicated and motivated to her work until she knows the effort is not as rewarding as she wants to be and does not see the improvement quickly.

Theories of motivation Explained with Lemuel Greene Case

2022-02-07T23:18:00.007-08:00

Lemuel Greene worked as a trainer for National Home Manufacturers, a huge builder of prefabricated houses. He was given the task of writing and revising company brochures. However, as soon as Greene and senior managers noticed that he has been working well with executives, he has been confident in his writing and the executive is always more willing to take on the future writing task after they work with the executive on a paper. So National Home moved Greene to its prestigious department of teaching. His salary increased and earns more than those executives who are in the company three times longer. Yet Albert could say in her biweekly meetings with him that Greene wasn't happy. When she asked about it, Greene responded that he was in a bit of a rut. Although the business filtering memos are now flawlessly completed and the annual report is 20% shorter but describes what it requires, still Greene is not fulfilled. Next week Greene came with a suggestion to Albert that if he began to educate some of the floor-workers, many of whom had no future in or outside of the business, as many people could only write their own names. They told her that they were not going to oppose it, but Greene couldn't continue to draw such a large salary while working with minimum wage pay workers. Greene accepted to a smaller pay and started providing English lessons in the factory. Greene eventually became serious about what he was doing and didn't treat the staff as kids in the remedial program. A bonus from a new source arrived from Greene at the end of the year. Although Greene's teaching has forced workers out of work for a few hours a week, the level of productivity has also risen, job turnovers have decreased, and some employees have continued to apply for supervisory positions for the first time in over a year.

The theory of Hierarchy of needs can be used to explain Lemuel Greene’s situation. There are five essential levels of needs that are ranked from lower to higher. The first one is Physiological needs that have to satisfy externally. The needs are the biological requirement for human survival. It includes hunger, thirst, shelter, and other bodily needs. Food, drink, and clothing will fulfill the need. The second one is Safety needs which are also externally satisfied and lower order need. It includes security and protection from any bodily and emotional harm. The third one is Social needs that are internally satisfied and it is in higher order. It includes the need for belongingness, friendship, love, and affections. The fourth one is Self-esteem needs that include self-respect and appreciation by others. It is internally satisfied and it is higher order. Individuals will want to get attention, achievement, recognition, and have status. The fifth one is self-actualization that is also internally satisfied and it is in higher order. It is about self-fulfillment, the potential that an individual wants to achieve, and also includes personal growth. People are self-aware of their potential and want to experience something new. Herzberg’s two-factor theory can also be used to explain Lemuel Greene’s unhappiness. Hygiene Factors are salary, work conditions, and company policies. So, the absence of hygiene factors will create dissatisfaction but not necessarily individual will be satisfied. Motivators include achievement, responsibility, and growth. It is related to satisfaction but not necessarily the absence of motivators individuals will be dissatisfied. McClelland’s Theory of Needs can be used that are need for achievement, need for power, and need for affiliation. Need for achievement is the desire to achieve something that an individual does. Need for power is the need to keep influence and control another person to manipulate and to change his choice for the individual’s own desires and interests. The need for affiliation is the ability of an individual to have good interpersonal and social relationships with others. He will have all three needs but one need will dominant him. Expectancy theory can be used here. There are three steps. The First step is Expectancy where it depends on the individual’s capability to achieve the desired level of task performance to complete the goal. The Second step is Instrumentality where the individual will get the reward by performing at a particular level. The third step is Valence where the reward satisfies the individual goal or not and also if it is important or not.

Green unhappiness can be shown with Maslow’s theory. He belongs to self-actualization. He already completed his Physiological needs as the basic need was satisfied for human survival. Safety needs were completed too as he has a very good salary so he has good safety and security. He also completed his social need as the executive like his work and love to work with him for the next task. He completed the needs of belongingness. His self-esteem needs were also completed as his opinion is valued. He is respected for his work and appreciated by everybody. He has very good achievement and has status. People recognize him and he gets attention from others. So, he is in self-actualization because he comes to the realization of his potential by offering classes to those people who don’t know how to write. He needed self-fulfillment because money was not important to him, rather he wants to help people. He was bored doing the same thing as business memos were not interesting as literature and the memos were flawlessly polished. Herzberg’s two-factor theory can be used here. He already has a good amount of salary, earning more than any other executives who have been in the company three times as long. He has no complaints about work conditions and company policies. There was no dissatisfaction but he was not satisfied. He had an achievement that he had moved him to the prestigious training program department but still, he wants to take responsibility for the workers on the plant floor that gave him satisfaction. It was not necessary he will be dissatisfied but he was not satisfied at first. Using McClelland’s Theory of Needs, Greene was dissatisfied because his desire for achievement and power is not satisfied despite the more income. He would want to focus more on teaching, want to solve a complicated problem, do a difficult task to support floor workers efficiently, and create a better way to accomplish his work. The expectancy theory can also be used to explain Green’s unhappiness. In expectancy, he believed and give effort in writing that leads to good performance. In Instrumentality, his performance increases his salary. In valence, salary is important but getting high income was not that important to him. His goal was that he wants to see others in a good position. The benefit was not important to him. That is why he was unhappy. Later when he started to teach floor workers, he gave effort and did not treat them like kids. His performance was really good that the workers learned a lot and apply for a supervisory position job. He was able to help the workers was the reward of self-fulfillment which was important to him.

Industry Analysis of Automobile Industry Using Porter’s Five Forces

2022-01-30T00:58:00.012-08:00

Industry Analysis of Automobile Industry Using Porter’s Five Forces

Threat of new entrants: Weak

Due to the huge capital requirement to establish a car brand, it is difficult for new brands to break into the industry. To set up the manufacturing facilities, distribution network, and hire skilled staff, a significant capital will be required at the outset. Another significant impediment is the level of competition from existing brands. Chances of gaining a significant market share are slim unless a new brand introduces an innovative and differentiated product to the market. While the law was not previously an obstacle to new entrants, legal requirements have increased in recent years, adding another barrier to entry. New players may face significant challenges in terms of brand image and reputation. Existing brands have significant advantages in terms of brand image and equity. Any new brand would have to put a lot of emphasis on product quality and engineering. It may be simple to obtain raw materials, but small businesses will struggle to achieve economies of scale. Furthermore, breaking into new markets is difficult. To discourage foreign brands, some governments have imposed high import taxes. As a result, there are several factors that reduce the threat posed by new players. Apart from Tesla, there is hardly a new brand in the automobile industry that has been able to make a significant mark on a global scale.

Bargaining power of suppliers: Weak

Because the majority of suppliers in the automotive industry are small businesses, their bargaining power is limited. Only a few of them are large enough to be considered significant. For the aforementioned reasons in the first category, the threat of forward integration from suppliers is minimal. These suppliers must follow the rules set forth by the automobile manufacturers. Vehicle brands such as BMW, Ford, Toyota, and Volkswagen wield enormous power because raw materials are always widely available, and switching from one supplier to another is simple for them. As a result, suppliers' bargaining power is significantly less.

Bargaining power of buyers: Moderately strong

Small individual buyers who purchase single vehicles account for a large portion of the buyers. Corporations and government agencies, on the other hand, purchase fleets of vehicles. These buyers have the ability to negotiate for lower prices. Buyers, whether large or small, can easily switch to a different brand. Switching to a different brand or mode of transportation does not incur any significant costs. The majority of buyers are price sensitive and would switch to a different brand if a better product is available at a lower price. Backward integration is not a threat to any of the buyers, whether they are large corporations or individual small businesses. Based upon the overall picture their bargaining power is moderately strong. In the grand scheme of things, their bargaining power is moderate. Customers' loyalty is built through design, quality, and competitive pricing, according to brands. The automobile industry has become more competitive, and changing consumer trends have increased customers' bargaining power.

Threat of substitutes: Strong

The automobile industry is filled with substitutes and switching cost of the customers is very low when choosing the substitutes. Companies regularly compete by introducing similar cars with lower prices. Thus, making the threat of substitutes very high

Competitive Rivalry in the industry: Very strong

The number of well-known and influential brands is small, and the barriers to exit are high. Any brand attempting to exit would have to accept significant losses. Customer loyalty is high, and the industry, despite its size, has matured. The competition for market share becomes even more intense as a result of this. Different brands, on the other hand, target different market segments, but they overlap. Price, design, quality, technology, customer safety, and a variety of other factors are all factors that brands compete on. Overall, the auto industry's competition is a powerful, if not overwhelming, force. To increase sales and customer base, auto manufacturers are investing heavily in R&D, digitization, marketing, and overall customer experience. The level of competitive rivalry among leading brands is fierce, whether in the premium category or in the small car segment and SUVs. With more competition, brands are attempting to increase customer satisfaction while competing to provide the best customer experience. They are also investing in growing their sales and distribution network as well as focus on after sales service is higher now. They are also investing in expanding their sales and distribution network, as well as a greater emphasis on after-sales service.

A Large Note on The World War 2 and It's Impacts

2022-01-30T00:44:00.005-08:00

A Large Note on The World War 2 and It's Impacts

The world War II occurred from 1939 to 1945 that happened almost every part of the world. The War was started by Germany and later form alliances with Italy and Japan. The chaos of World War I had massively weakened Europe, and there were problems left unresolved by the World War I in many ways that led World War II. There was Political and economic instability in Germany, as well as continuing criticism of the Versailles Treaty's harsh terms that led Adolf Hitler rise to power and the rise of the National Socialist German Workers' Party that was also called as NSDAP in German and the Nazi Party in English. The Axis powers were Germany, Italy, and Japan and the Allies were France, Great Britain, the United States, the Soviet Union, and China.

In the early part of 1939, Adolf Hitler, the German Leader had made up his mind to conquer and occupy Poland. Poland had military protection from France and the United Kingdom in the event of a German attack. Hitler had already decided to conquer Poland, so he wanted to remove the possibility that the Soviet Union would oppose the occupation of its western neighbor. There was a secret negotiation that was The German-Soviet Nonaggression Agreement which was signed in Moscow on August 23–24. The Germans and the Soviets agreed in a secret protocol of this agreement to separate Poland between them, with Germany receiving the western third and the Soviet Union receiving the eastern two-thirds. I found from websites that Hitler invaded Poland from the west on September 1, 1939, and France and Britain declared war on Germany on September 3 that was the beginning of World War II. I found out that The Soviet forces attack Poland from the east on 17 September. In 1940 Germany and the Soviet Union split their dominance over the country. Stalin’s armies capture and conquered the Baltic States of Estonia, Latvia and Lithuania and also Finland in a Russo-Finish War. Also, in a violent fight between British and German marines and German submarines attacked merchant shipping of Britain that sank over 100 ships for the first four months.

Germany invaded Norway and Denmark at the same time on 9 April 1940. On May 10, German armies marched through Belgium and the Netherlands. Three days later Hitler's troops crossed the Meuse River and attacked French in Sedan. On 10 June the Italian dictator Benito Mussolini formed an alliance with Hitler while French was about to get destroyed. Italy then declared war against France and Britain. France ultimately was separated into two zones: one by the German army and the other by the Petain’s leadership, the hero of France. Now Hitler turned his attention to Britain, which was protected by the English Channel from the continent. German planes bombed Britain in 1940 but The Royal Air Force defeated the them. In 1941, Hungary, Romania and Bulgaria entered the Axis and in April Germany and Greece were occupied by the German forces. Hitler also Conquered the Balkans and colonized. Hitler also killed 4 million Jews in the death camp of Poland as he planned to kill all the Jews in Europe. Hitler ordered Operation Barbarossa to conquer the Soviet Union on 22 June 1941. Soviet Union had more tanks and aircraft than German but Russian technology was mostly outdated, and by mid-July Germans was within 200 miles of Moscow. On December 7, 1941 Japan wanted to take precautions so Japan attack the U.S. naval base at Pearl Harbor because the United Kingdom, the Netherlands and the United States would interfere its planned military actions. The U.S. Pacific Fleet won battle against Japan in June 1942 in Battle of Midway. Allied forces pushed closer to conquer the mainland Japan.

British and U.S. armies conquered Italians and Germans in North Africa by 1943. The Battle of Stalingrad, one of the fierce battles of the Second World War ended on the East Front in November 1942 by the counterattack by Soviet. The Winter season ended the life of German soldiers. They also faced the shortage of food and medical support though they surrendered on 31 January 1943. On 6 June 1944, also known as D-Day where 156,000 American, British and Canadian troops landed on five beaches along the defended 50 miles coastline in the French area of Normandy. Hitler gathered all his army's remaining strength into Western Europe while Germany already lost in the East. Soviet soldiers quickly marched to Poland, Czechoslovakia, Hungary and Romania. I learned from the internet that The Battle of the Bulge that happened in between December 1944 and January1945, Hitler gathered his armies together to win against Americans and British which was the last great German war. In February1945, there was heavy bombing in Germany by the Allied Nation, and the Soviet forces had conquered most of the country by the time of Germany's formal surrender on 8 May. Hitler committed suicide in his Berlin bunker on 30 April. After the war Germany was broken down into four areas and dominated by the Soviet Union, the United Kingdom, the United States and France. An Interesting fact I found on internet that the United States Allow the use of modern and powerful weapons in Japan that was developed in secret operation called the Manhattan project. In August 6, 1945 atomic bomb was dropped on the Japanese cities of Hiroshima and Nagasaki. On September 2, Japan surrendered in Tokyo Bay.

A lot of inventions took place in World War II. Jet Engine was made by Dr. Hans von Ohain and Sir Frank Whittle that is the modern foundation of military air forces and civilian transport. Synthetic rubber and oil were made. synthetic oil were used by The United States to run engine better. The Allies developed synthetic rubber because it produces better rubber that lasts longer. The pressurized cabin was made to protect passengers and crew from lack of oxygen from high attitude. Rader was developed to detect and send radio wave. V2 missiles was made by Germans. Single seat helicopter was developed to carry small things between ships. Penicillin drugs were used by soldiers in World War II to prevent infections and saved many lives. German developed Enigma that is encrypted communication system. Alan Turing developed a machine called Bombe to break Enigma code that machine is the foundation of modern Artificial Intelligence. Finally, the development of atomic Bomb that led the innovation of nuclear energy.

In the Second World War, approximately 75 million people died that includes around 20 million military and 40 million civil. Many of whom died of planned genocide, slaughter, mass bombs, illness and famine. More than 100,000 crew members of allied bomber were murdered in Europe. In the Air Corps more US soldiers died than the Marine Corps. On the Eastern Front, four of the five German soldiers killed in the war. I learned from internet that German loses territory of Eastern Prussia, Pomerania and Silesia, Poland, Saarland and Austria as well. Italian loses both colonies in Africa, the Aegean, Albania and Istria. Polish loses Kresy territories that was occupied by USSR. Japanese loses the territories of continental Asia, Kuril Islands, Sakhalin Island and the Pacific Islands, including Taiwan. Finish loses Karelia, Salla and Petsamo. India, Pakistan, Bangladesh, Nigeria, Palestine, Singapore, Australia, Canada, New Zealand and Malta got independent from United Kingdom. America granted the Phillipines independence. The Netherlands lost Indonesia. France lost Vietnam and Algeria. North and South Korea were separated by the Allies and Russia. Russia was preparing to dominate the North and the South will be dominated by Allies until the whole world was safe. Russia later rejected and North Korea still remains divided and controlled by communists to this day. Israel was born in Palestine. The United States were less likely got affected. China was affected a lot as 20 million people died. The war killed more lives and damage more land and infrastructure around the world in the six years than any previous conflict.

Counterfeiting in Bangladesh

2022-01-30T00:38:00.001-08:00

Counterfeiting in Bangladesh

Counterfeiting has become a real concern in Bangladesh. It becomes very difficult to compare between real and fake products. Those fake products look similar to original product but sold at less price. I found from internet that counterfeiters have been able to set up small backyard factories and centers for the production of fake products by the use of easy production and technological advances. They also make fake labels and packaging to cheat consumers. Counterfeiters refill or repackage duplicate products using the packaging of original products. It has been observed that several products, including old plastic water bottles, are being repackaged and sold in the market. Consumers and brand owners both have lost due to entrusted duplicate products.

In the fast-moving consumer goods (FMCG) sector the counterfeit market is increasing at a rate of 44.4 percent per year. There is increasing usage of e-commerce websites for internet purchases and financial transfers. Consumers, users, and reputable businesses have become frustrated by the distribution of counterfeit products, especially fast-moving consumer goods (FMCGs) and transactions with fake accounts. I found on internet that due to counterfeit products, real FMCG suppliers lose 30% of their market share. There are fake toothbrushes such as Sensodyne, Colgate, Oral-B, and Dr. West, ball pens such as Linc and Fort, and herbal incense sticks. The government's total income growth is being affected by loss in tax return and customers are more likely to develop various illnesses as a result of consuming such bad counterfeit items. There are also counterfeit cosmetics such as Fogg, Cobra, Parachute Coconut oil, La Bamba, Orange body spray, etc. There are even fake baby products such as Johnson & Johnson, Kodomo, Cetaphil, Huggies, etc. Those are produced from harmful and toxic chemicals that cause various diseases such as cancer. There is also a huge amount of counterfeit medicine in Bangladesh. During the Covid-19 outbreak, a number of fake or lookalike hand wash products of well-known brand names hit the market. I learned that these fake medicines are created at Gazipur's capital, Uttara, Fakirapool, Chawkbazar, and Tongi, and then sent to various renowned drug stores that are charged high prices. There are fake post-operative antibiotics like cephradine and hydrocortisone are manufactured by a number of firms. It is surprising to know that Bangladesh manufacture and export drugs but still there are fake drugs. I found in newspaper that according to the Bangladesh Pharmaceutical Industry Association, yearly sales of counterfeit medications in Bangladesh exceed Tk 1,500 crore that is 20% of total sales.

Counterfeiting of wearing accessories is also very common. There are fake T-shirts, shirts, jeans, etc. of well-known brands such as Armani, Fendi, Gucci, Ralph Lauran, etc. Counterfeit footwear is also distributed in local shops in many shopping centers located in Elephant Road, Gulistan, etc. Most of the fake footwear are Nike, Puma, Adidas, etc. There are also fake watches in Bangladesh in many local shops such as Rolex, Omega, Patek Philippe, Gucci, etc. There are even fake watches of Nika and Puma. There is also fake jewelry in almost every local shop in shopping centers. There are fake earrings, rings, necklaces, bracelets, brooches, etc. Some of them are named popular brands such as Cartier, David Yurman, Harry Winston, etc. There are Counterfeit handbag and wallets in almost every local shop in shopping centers. There are fake handbags and wallets of popular brands such as Burberry, Calvin Klein, Gucci, Hermes, etc. I remembered last year I went to Gulistan and bought a Gucci brand wallet that just cost 100 Tk and I still use it. There are counterfeit consumer electronics such as TVs, cellphones, accessories, etc. There are counterfeit products of well-known brands such as Sony, Samsung, LG, Panasonic, etc. There are also counterfeiting of computer accessories of famous brand such as TwinMos, Kingston, Rapoo, Adata, Asus, Hoco, etc. I remembered I bought a fake TwinMos pen drive for 500 Tk that did not last long. I read in a blog that e-wastes are illegally shipped to developing countries mainly India and China. Then workers search and pick components through toxic electronics dumps to recycle. After finding components they will go for production of fake products and sell to black market that are offered mainly in bulk on online brokerage sites. Finally, middlemen buy those products. In Bangladesh these products are imported and also some are made. The government may shut down the counterfeit website but they can open another website very quickly.

Counterfeit optical media is very common in Bangladesh. Software piracy is huge the piracy rate is 92%. Pirated software includes operating systems, systems software like databases and security packages and application software like office packages, finance and tax packages and PC computer games. A friend of mine bought a pirated software disk of Microsoft Office 2019 for 60 TK from Gulistan. However, buying CDs and DVDs has reduced globally. People can find anything on the internet. Today people can download pirated software from various websites for free that I use pirate bay. I have downloaded Microsoft Office 2019 crack version for my mac that was totally free. I also download pirated movies, books, video courses, etc. from those websites. There is also counterfeiting of toys in Bangladesh. Most of the toys in Bangladesh are fake and dangerous. I learned from internet that toxic chemicals are typically used in fake toys. There are heavy chemicals such as lead and phthalates that harm young children. Phthalates have been related to cancer among other dangers and are believed to create permanent harm to essential organs. There is another aspect of toys is the size of objects and how well they are shaped so that they do not end up in small children's mouths. Stuffed teddy bears are an example. Each component must follow strict requirements that counterfeiters hardly meet. There are other counterfeits products such as plush toys, electric toys, Lego, Super Mario, etc. Sometimes there are also fake foods in the market. There was fake rice, eggs, oil, etc. that are harmful to the human body and banned by government as soon they were detected. There was also a counterfeit of Bangladesh currency that is totally illegal. RAB sieged those fake notes and arrested those people. There is also fake cigarettes of high-priced brands most are British American Tobacco.

Overall, people of Bangladesh are facing a lot of problems due to fake products. There is less supervision from officials, poor regulations that affect people easily. However, protecting customers' rights and the market image of reputable businesses has become a major challenge. Hopefully government will take right action for the betterment of the economy. However, I watched on television that there are new and innovative packaging technologies where counterfeiters have difficulty copying FMCG products with success in recent years. Many businesses are adopting the use of security labels, security logos, barcodes, and other technology to protect their names from the threat of counterfeiting.

10 Daily Habits to Become Smarter and Improve Brain Power

2021-03-12T23:49:00.005-08:00

Do you want to be smarter? You can do 10 things every day to become smarter. Make some changes in your lifestyle and see the result that will make you different from others.

Cut back on TV time:

Stop wasting time watching long shows. By wasting hours watching shows, you do not earn something productive. When watching TV, your brain enters passive mode, so it's best for your health to keep it involved and engaged in productive activities.

Ted Talk:

Hearing Ted talks every day. There is a lot that you can learn from insightful persons who share brilliant ideas and discoveries. There are conversations ranging from 5-20 minutes, so pick one every day. You should have learned more by the end of the month.

Research:

Get into the habit of finding out on your own about things. On the internet, study thoroughly on subjects that concern you and how things work. For authentic knowledge, you can use Google Scholar. Every day, learn something new and devote at least 30 minutes to it. Also, when you learn more by doing/execution/implementation, share your experience and teach it to others.

Reading:

For your aging brain, reading is necessary and safe, as always said. For example, the Huffington Post, Washington Post, Wall Street Journal, Reader's Digest & Narrative Magazine, Success Magazine, New York Times, Time Magazine, make it a daily habit, whether it is a book, newspaper article, or online articles. In addition, in the dictionary, look up new words. Download a decent dictionary app to find the meaning of unfamiliar words/expressions and it will be less time-consuming. Once, Oprah Winfrey said that she often preferred to read a book rather than watch TV.

Language:

To get started, you can download some language apps. Learning a new language will make you familiar with various people, cultures, and vocabulary. It opens your eyes to things that are different. It helps to develop communication skills as well.

Online Courses:

This is another way to learn about subjects and to improve your abilities. You can browse through courses and sign up for the one you like, then move on to the next. For this reason, websites such as Coursera, Alison, MIT Open Courses & Khan Academy are excellent. Learn new skills every day and try to use them in real-life situations.

Documentary:

This is another way to substitute for watching shows for long hours. You can use these websites: Documentary Heaven, National Geographic, and Top Documentary Films to gain a better understanding of the world.

People:

Go out with people, hang out with them. For others that are smarter, hang out. Be available for new people to meet. Get others to know. Every person comes from a different context, viewpoint, and experience. From them, you will learn a lot.

Reduce social media use:

Restrict the amount of time spent using social media, much like television. Better to spend the time watching a Ted talk or reading.

Exercise: This can be as quick as walking, helping to clear your head and think. It also reduces the risk of illnesses dramatically. If done consistently, it keeps you in good shape, balanced, and protects your beauty. In addition, you eat to live, not the other way around!

Top 10 Foods to reduce Hair Loss

2021-03-12T23:24:00.000-08:00

Top 10 Foods to reduce Hair Loss

Whether it's hair loss, injury, or length that you just are attempting to beat or accomplish, you wish over simply shampoos or hair masks to nourish your hair from within out. These seven foods won't solely facilitate accelerate your hair growth however will keep them healthy and nourished.

Chicken

Rich in animal supermolecule, chicken greatly aids within the ceratin production of the hair—keratin is that the substance the hair shaft is basically created from.

Eggs

Eggs contain amino acids and essential amino acid, each of that is crucial for healthy hair and quick growth. Eggs also are a good supply of supermolecule and B that mostly facilitate in stopping hair loss.

Salmon

Loaded with omega-3 fatty acid fatty acids, B12, and iron, salmon can strengthen your hair follicles and stimulate the expansion of your hair.

Almonds

Almonds are a good supply of vitamin E, B vitamins, B, and fatty acids, that not solely profit the skin however additionally strengthen and accelerate hair growth.

Pumpkin seeds

If you're battling major hair loss problems, pumpkin seeds are your best bet. With cram full of vitamins B1, B2, B3, B4, B5, and B6, pumpkin seeds can aid in hair growth and improve scalp health.

Lentils

Incorporate a couple of tablespoons of lentil dahl into your diet. High in iron content, Zn, and vitamin B complex, lentils are vital for healthy hair growth and bloody provide to the scalp.

Sweet potatoes

Loaded with beta carotene, a precursor for antiophthalmic factor, sweet potatoes boost hair growth and keeps your scalp healthy.

Data used by Policymakers of a country

2020-10-11T04:14:00.001-07:00

How can the policymakers of a country take advantage of Data?

Data is very important for policymakers of the country. Data will provide a lot of information or knowledge which is described that is acceptable for proper use or analysis. The main task of the policymaker is to act as a medium by consultation and research to collect information and to minimize and produce from the information, a decision, or a collection of policies that help to encourage the desired course of action. They gather statistical data. They hold a meeting and conducting groups for discussion. They write policy statements without confusion and inappropriate language which is understandable by everyone. They find information from independent organization experts like hiring a company for Data. So, Improving the standards of living of people is the government's challenge. In order to face this challenge, a government must create an appropriate and meaningful collection of visionary ideas and use the resources and tools available as effectively as possible to achieve the results that people want. The best way to strengthen governance is to improve the ability of the government to handle risk and achieve outcomes and data will help them to make good decisions. Data can help to define a variety of economic indicators that effectively capture the performance of governance. This will help to analyze everything from national security to personal security, from public policy to gender equity, from physical infrastructure to political engagement, and from health and education to rural welfare. So, Data will help the government to make the right decision to face any crisis. This crisis is the policymaker's goal that needs to improve. After the policymakers have defined the issue that needs to be solved and the policymakers are going to make a decision, it is time to identify and bring relevant information. So, Policymakers hire a company to get appropriate data to face the issue. The historical data they have gathered and they will use it to recognize trends or patterns. They identified the objective they decided to improve and analyzed the data and make a final decision about whether a new strategy is moving forward. They would need to build a course of action to transform the decision into effect. they will make well-defined targets about what needs to be done and why, by whom, why they are doing it and what is the result they foresee. They will measure success and repeat the whole process. They will use the indicators to make policies like trying to reduce poverty, increase export, and stable the oil price.

There are many decision challenges. People make poor decisions by guessing. It is also not good not to have adequate information to help decision making and everyone should certainly be up to date with all the necessary information to come up with the best solution for any issue. We should have accessed the kind of user-friendly information that is important to choices for decision-making, otherwise, we can feel misguided and frustrated. So, policymakers of the country must have the necessary data to make the right policy. A mechanism needs to be developed while making decisions. Policymakers must develop a process. First, they need to get data as they will gather data from a company that provide Data. Then they will develop a model by choosing the right model depending on the task. Finally, they will analyze the information and find indicators to make the required policy. It required tools to make decisions, some resources require experience and context, some can be automated at different stages. Policymakers must have the required background and experience for using some tools. Beware of after-the-fact decisions: Policymakers may produce a spectacular outcome, but random.

Ecommerce Business Models

2020-10-11T03:42:00.008-07:00

Describe the Ecommerce Revenue Models?

There are many types of eCommerce revenue models.

Advertisement sales model - In the advertisement sales model, a website creates revenue by obtaining a wide number of users that will then be subjected to ads.

Sales revenue model - Companies earn money from the sales revenue model by selling products, content, or services to the customer.

Subscription revenue model - In the subscription revenue model, a website providing content or services charges a subscription fee for the option to continue to any or all of its offers.

Free sales model - Firms deliver basic facilities or products for free under the free sales model, while charging a fee for specialized or exclusive features.

Transaction fee revenue - A business earns a commission for approving or performing a transaction in the transaction fee revenue model.

Affiliate revenue model - In the affiliate revenue model, web pages redirect users to other websites in exchange for a referral charge or percentage of the revenue on any purchases made.

What are the Forms of Ecommerce?

There are 4 major Forms of Ecommerce:

Business to Business(B2B): The businesses do business with each other here. It is not the actual user who is concerned. Therefore, online sales include only suppliers, wholesalers, sellers, etc.

Business to Consumer(B2C): The business will offer its products or services directly to the customer. Consumers will visit their websites to look at items, videos, reviews, to read them. They eventually put their order and the company directly delivers the goods to them. Amazon, Flipkart, Daraz, etc. are common examples.

Consumer to Consumer(C2C): Consumers are in touch with each other directly. There is no business involved. It lets individuals directly sell their personal products and belongings to an interested person. Traded products are typically vehicles, boats, appliances, etc. This model is accompanied by OLX, Quikr, etc.

Consumer to Business(C2B): This is the opposite of B2C. The consumer provides the business with a product or a certain service. Say, for instance, an IT freelancer who demonstrates and sells his software to a corporation. It will be a trade involving C2B.

What are the Advantages of Disintermediation?

The Advantages of Disintermediation is that there are cost benefits and margin benefits that can be realized by removing middlemen as for example my business model is Business to Consumer, Products are sold to consumers directly so many retailers or wholesalers are removed. This will decrease the cost and increase profit. Electronic customer relations and customer interaction are formed with the help of Internet-based means of communication. Full access to the consumer enables consumer actions to be evaluated and customer expectations to be measured. Information about the consumer review helps in the necessary growth of the product and service range. I will easily know how many consumers will actually buy my product and know do consumers prefer the product. So, Specific goods and services can be sold to individual customers based on the desire of the customers to pay.

Agency

2020-08-07T03:12:00.005-07:00

What is an Agency?

Agents are those who act on behalf of others. They do commercial transactions acting with the scope of the authority that has given on them whether expressly or by implication. They do it for the principle to make a contract with a third party. Once principle and third-party form contract the agent is no longer part of the scenario. The only person who may sue is the principal, and the only person who can be sued is the principal. Lord Alverstone CJ once defined an agent as ‘any person who happens to act on behalf of another’ (The Queen v Kane [1901] 1 QB 472). For example, a teaching institution asked the teacher to teach the students. Here, teaching institution is the principle, the teacher is the agent and students are the third parties. He may have indemnification against the third party or the principle. Generally, agents are entitled to be indemnified for all liabilities reasonably incurred in the execution of the agents´ authority. The agency is created by the actual authority which is express and implied authority, apparent authority which is the representation by the principal to the third party and when the principal ratifies.

What is meant by the Actual Authority of an Agent? Explain with example.

Actual authority includes express authority and implied authority. Express actual authority occurs when the principle expressly by words gives the agent the authority or permission to do something for the principle and the agent agrees. In Aviva Life & Pensions UK Ltd v Strand Street Properties Ltd [2010] EWCA Civ 444 at 54, the agent is instructed to sell a particular property for the principal. This authority may be contained in documents and conversations between the parties. For example, a teaching institution has instructed the teacher to teach the students. So, the teaching institution has given the teacher the authority to teach and that is the express actual authority. If the instruction from the principal to the agent is not clear then the reasonable interpretation will not be in breach in the mandate. However, the agent should not do more than the instructions and there is modern communication available to sort out the problem.

The agent uses implied actual authority to express actual authority. Implied actual authority is a way of filling in the gaps in order to make sense of the agency agreement. It is necessarily incidental to the execution of the express actual authority. For example, a teaching institution gives the authority to the teacher to teach the student that’s the express actual authority and teacher will do necessary things like providing notes, extra time, the reward for a test that is implied actual authority to complete the express actual authority. In Rosenbaum v Belson [1900] 2 Ch 267 an agent was given authority to get into a contract of buying land so the implied actual authority is signing the document that is required to buy the land and without such authority, the agent would not be able to perform the task agreed.

What does it mean when the law says that an implied authority cannot contradict express authority? Examples with case law.

Implied authority cannot contradict express authority means the agent cannot alter the agreement of the principle or making it in some fairer. If principle has limited an agent’s express authority, then the fact that the agent cannot do something which is irrelevant. For example, a teaching institution gives the photocopier the authority for printing, the photocopier implied authority is to buy ink, edit paper, maintenance printer, and so on. Now the photocopier takes a short-term loan to buy a new printer for printing more students which is irrelevant because the teaching institute did not give the implied actual authority and he cannot change the agreement. In Bryant, Powis, and Bryant Ltd v Law Banque du Peuple [1891-94] All ER 1253, an agent, who had express actual authority to buy or sell goods, charter vessels and employ agents and servants, did not have implied actual authority to borrow money because this was not necessary to carry through the tasks that had been expressly authorized. It is difficult to take a loan in a company as it requires every owner's permission. The agent could communicate with the principle to sort out the problem and the principle may pay the money.

As expressed by Lord Denning apparent authority is ‘the authority of an agent as it appears to others.’

As expressed by Lord Denning apparent authority is ‘the authority of an agent as it appears to others. In order to understand we first need to know what is apparent authority. Apparent authority occurs when principle gives no authority expressly or impliedly to the agent but the agent can still be legally bound to the third party. Third-party will have no knowledge of the term of the contract and agent’s actual authority. Apparent authority arises when it appears as the agent has actual authority, there is a representation by the principle as the principle might have said or did and the third party relies on the representation and get into the contract by believing that the agent is acting on behalf of the principle. The representation creates an agency by estoppel. An agency by estoppel arises the principle that represents the third party that the agent is authorized and the agent does not purport to make the agreement as a principle. The principal is estopped from denying that the agent has this authority. In Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] one director of a Buckhurst, its agent, hired Freeman and Lockyer as architects for their Buckhurst Park Estate project. Buckhurst later refused to pay their invoices, saying that the director was not authorized to enter into the transaction which commissioned the architects. The director had acted as the managing director of Buckhurst and he did not have actual authority. The representation was made by the appointment of the director into his position, whose office would normally provide powers of authorization, the company had the power to appoint its own directors, the architects were induced into carrying out the work by the representation of the company that the director had authority and the company was not prohibited from entering into contracts with the architects. So, Buckhurst Park Properties (Mangal) Ltd was bound and had to pay the invoice. The principle is bound to a third party even though the agent does not have actual authority, agency agreement has ceased and the agent acts beyond the actual authority granted by the principal. In Nayyar & Others, v Sapte & Anor [2009] a person purporting to be an agent and represent that he has authority from principle. The principle will not be bound to the third party and the bogus agent will be liable for breach of an implied warranty of authority. The representation may be by words or by actions. When there is a duty to say something, silence or inaction may be a representation. In Spiro v Lintern case Linter’s wife wants to sell the house. Lintern said nothing and his silence amounted to represent that his wife had the authority to sell the house because Spiro had various expenses in contemplation of completion of the sale. When the third party knows that the agent does not have authority then the agent will not have apparent authority. In Armagas v Mundogas, Armaga's apparent fraud, an agent purported to conclude an agreement leasing a ship back from the principal for a period of 3 years. The agent only had actual authority to conclude an agreement lasted for 1 year. The agent claimed that he had obtained specific authority for the transaction but the agent was appointed as the principal’s chartering manager. The agent’s title of ‘chartering manager’ did not bring with it the apparent authority to conclude the contract or represent specific authorization. The principle may not represent his authority. So, the principle was not bound.

What does it mean that an agent’s action has been ratified and what effect does it have on the Third Party?

An agent’s action has been ratified means principal retrospectively clothes his agent with authority and the law then proceeds on the basis that the agent had authority from the outset or beginning. It happens when an agent exceeds actual authority and he accepts an agreement without the authority. When the principle adopts the agent past act then the agent had authority from the beginning which is ratification. Ratification is a means by which the agency relationship is created retrospectively. When the third party had an agreement to the transaction and ratification should be accepted. Before the transaction is concluded the agency must be revealed to the third party. In Keighley, Maxsted & Co v Durant [1901]case an agent got into a contract and purchase wheat in his own name without revealing to the principle. There will be no ratification where the agent makes a contract as a principle. A contract on behalf of an undisclosed principal cannot be ratified, it is complete upon signing. There will be no contract until the principal has approved it. The third-party must believe that the person with whom they are dealing has the authority to act for another.

In Bolton Partner V Lambert's case, an agent of Bolton's partner accepted the authority without the principle authority. Lambert withdraws the offer and then the principle ratifies. The contract was binding on Lambert and the claimant entitled to specific performance. The agent is put in the same position as if he had the authority to do the act at the time the act was done by him. It is unfair for the third party because it allows the principle to choose whether or not to ratify. The third-party may hold the principle and then the principle declines to ratify which is even more unfair. So, the third party may bring an action for breach of warranty of authority against the agent because of loss. There is a limitation to ratification that the third party will give a reasonable time after the agent’s unauthorized acts. If the third party knows that the agent is unauthorized then the third party can give a reasonable time. If the principal does not ratify within such reasonable time the principle will lose the right to ratify. In Metropolitan Asylum Board v Kingham and Sons case the principal purported ratification one week after the agent’s contract entered into without authority to buy eggs and it was held too late. Ratification must not injure the third party and reasonable time will depend on the nature of the contract and circumstances.