A Robust Cost Leadership Strategy Marketing Essay

A Robust Cost Leadership Strategy Marketing Essay As the business environment become even more dynamic, a robust cost leadership strategy within the framework of corporate strategy is vital in order to ensure the success of the organization. It should provide the direction that the whole organization can pursue to secure the companys future survival and success. There are types of generic strategies that companies must possess to achieve competitive advantage. The first generic strategy is cost leadership strategy and the others are differentiation and focus strategies. Competitive advantage can be defined as anything which gives one organization an edge over its rival in the products it sell or the services it offers. In general, cost leadership is about being the lowest cost producer in the industry. For an organization to gain competitive advantage, it must achieve overall cost leadership in an industry it is competing in. For companies competing in a price-sensitive market, cost leadership is the strategic imperative of the entire organization. It is vitally important for these companies to have a thorough comprehension of their costs and cost drivers in order to pursue a cost leadership strategy. They also need to fully understand their targeted customer groups definition of quality, usually denoted in terms of design specifications, contractual requirements, delivery and services at the lowest possible cost. Of particular importance will be for the company to attain a cost level that is low relative to its competitors. Cost Leadership Strategy This strategy according to Porter, involves the firm winning market share by strategizing to cost-conscious or price-sensitive customers. This is achieved by having the lowest prices in the target market segment, or at least the lowest price to value ratio (price compared to what customers receive). To succeed at offering the lowest price while still achieving profitability and a high return on investment, the firm must be able to operate at a lower cost than its rivals. There are three main ways to achieve this. The first approach or way is achieving a high asset turnover. In manufacturing, it will involve production of high volumes of output. These approaches mean fixed costs are spread over a larger number of units of the product or service, resulting in a lower unit cost, for an example the firm hopes to take advantage of economies of scale and experience curve effects. For industrial firms, mass production becomes both a strategy and an end in itself. Higher levels of output both require and result in high market share, and create an entry barrier to potential competitors, who may be unable to achieve the scale necessary to match the firm low costs and prices. The second way is achieving low direct and indirect operating costs. This is achieved by offering high volumes of standardized products, offering basic no-frills products and limiting customization and personalization of service. Production costs are kept low by using fewer components, using standard components, and limiting the number of models produced to ensure larger production runs. Overheads are kept low by paying low wages, locating premises in low rent areas, establishing a cost-conscious culture, etc. Maintaining this strategy requires a continuous search for cost reductions in all aspects of the business. This will include outsourcing, controlling production costs, increasing asset capacity utilization, and minimizing other costs including distribution, RD and advertising. The associated distribution strategy is to obtain the most extensive distribution possible. Promotional strategy often involves trying to make a virtue out of low cost product features. The third dimension is control over the supply/procurement chain to ensure low costs. This could be achieved by bulk buying to enjoy quantity discounts, squeezing suppliers on price, instituting competitive bidding for contracts, working with vendors to keep inventories low using methods such as Just-in-Time purchasing or Vendor-Managed Inventory. Wal-Mart is famous for squeezing its suppliers to ensure low prices for its goods. Dell Computer initially achieved market share by keeping inventories low and only building computers to order. Other procurement advantages could come from preferential access to raw materials, or backward integration. Some writers claim that cost leadership strategies are only viable for large firms with the opportunity to enjoy economies of scale and large production volumes. However, this takes a limited industrial view of strategy. Small businesses can also be cost leaders if they enjoy any advantages conducive to low costs. For example, a local restaurant in a low rent location can attract price-sensitive customers if it offers a limited menu, rapid table turnover and employs staff on minimum wage. Innovation of products or processes may also enable a startup or small company to offer a cheaper product or service where incumbents costs and prices have become too high. The Starbucks Company Starbucks used mostly a differentiation strategy; however it had also used a cost leadership strategy. Its differentiation strategy was exemplified by their stores providing an experience, offering interesting coffee-related drinks in a theatrical kind of atmosphere, their unique Coffee blending and roasting process which enabled them to create an extensive product variety, their employees received great deal of training to become very knowledgeable about coffee in order to provide an exceptional service to increasingly coffee-educated consumers, and their ability to find the perfect location for their stores enabled them to maximize market share in a given area of a city and build their regional reputation which then increased their image to a national level of high prestige and status. For all these reasons, consumers were willing to pay a premium. Their cost leadership strategy was exemplified by their supply chain operations where they received the best transportation rates, and were able to achieve economies of scale by eliminating redundancy and maximize efficiency. Starbucks was also a cost leader due to its good relationship with coffee exporters who were very anxious to become Starbucks suppliers; a fact that enabled the company to get better prices and reduce bean-sourcing costs. The activities that created superior value for Starbucks retail coffee-house business were: Procurement purchased more high quality coffee than anyone else in the world. Technological Development a lot of research was put into the roasting and blending process to create unique tastes. Human Resource Management extensive training and educating of employees (baristas) and turning them into part of the organizational culture. Outbound Logistics finding good Real estate to maximize market share in certain area and provide the coffee in key places to consumers. The Nestle Company Nestlà © with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlà © and is today the worlds biggest food and beverage company. They employ around 250,000 people and have factories or operations in almost every country in the world. The Companys strategies are guided by several fundamental principles. Nestlà ©s existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for short-term performance. The Companys priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives. Nestlà © Company has aimed to build a business based on sound human values and principles. Nestlà © believes in making a long-term commitment to the health and wellbeing of people in every country in the scope of their operations. At Nestlà © Significant differentiation from traditional retail and less price transpar ency is followed. They follow this differentiation strategy to reduce the risk of complexity of supply chain and lower attractiveness for discounters. Pepsi Co merged with the Quaker Oats Company, creating the worlds fifth-largest food and beverage company, with 15 brands each generating more than $1 billion in annual retail sales. Pepsi Co follows the differentiation strategy. Their ability to innovate is their competitive advantage. They look for opportunities to capitalize on the value of their brands by creating new products and varieties. By innovating to meet consumer needs and preferences, they fill consumption gaps and contribute to create both healthier and indulgent choices for consumers, and bringing more enjoyment to their lives. As you can see, Nestle also uses the differentiation strategy for cost leadership strategy just like the Coca cola Company. This shows that the customers are asking for a change. They want revolution in the products. That is what these two companies are doing to keep alive and top in what they do. Conclusion As conclusion, I would like to say that cost leadership strategy is used by organizations to lower the cost used for business and enhance the productivity and profit. This is a very good strategy to be used in a business.

Book Review Wild Swans Essay

1. Main Thesis In Wild Swans, Jung Chang describes the life of three generations of woman in her family. Beginning in the year 1909 and ending in present time, it gives an insight into almost eighty years of the cultural history of China. Jung Chang has said in a interview that her intention in writing Wild Swans was to show how the Chinese people, and in particular the women in her family, â€Å"fought tenaciously and courageously against impossible odds.† The book is a testimony to the strength and determination of her grandmother, her mother, and herself and their resourcefulness in recreating themselves during suffering, humiliation and disillusionment. She interweaves personal and historical stories fluently and the stories of these women and their families act as a lens through which you gain insight into the turbulent history of twentieth century China. The most important themes in this book are: love of family, loyalty and self-sacrifice 2. Chapter Summaries The book starts by relating the biography of Chang’s grandmother, Yu-fang. After the birth of Chang’s mother, De-hong, the book moves to her story. After the birth of the Jung Chang, the focus of the book now shifts again to cover Jung’s own autobiography. Chapter 1: The father of Yu-fang, was Yang Ru-shan, born in 1894 as the only son. It was his duty to produce heirs to continue the family name. One a year after he married he got a daughter, Yu-fang. Political unrest caused problems for many in China over the next years. He arranges that a powerful warlord general, Xue Zhi-heng takes Yu-Fang as his concubine at age fifteen. The general stays only a few days after the traditional marriage and then leaves, not returning for six years. During his next brief visit, Yu-Fang becomes pregnant. The general’s household is run by his legal wife and the head concubines. The wife immediately lays claim to Yu-Fang’s daughter, who the general named Bao Qin. Yu-Fang kidnaps her daughter and escapes from the household. She lies, saying that the child died during their trip. When the general dies, Yu-Fang discovers that one of his final actions was to release her from her duties as his concubine. Chapter 2: Soon after, Dr. Xia, a matured doctor of Manchurian ancestry, falls in love with Jung’s grandmother and the feelings could be felt the same from Jung Chang’s grandmother as well. The doctor proposes and grandmother says yes. Although not thrilled with the marriage, Jung Chang’s grandmother’s father agrees to the marriage and sends her daughter off with a traditional wedding. When Dr. Xia’s three sons, their wives, and grandchildren hear about the marriage, they’re extremely angry. The grandmother receives quite a bit of harassment from the family and the eldest son even commits suicide, nevertheless the wedding still continues. He accepts Yu-Fang’s daughter, who he renames â€Å"De-hong†, meaning â€Å"virtue† and â€Å"wild swan†. Chapter 3: China is living under Japanese rule. After moving to a new province of Manchuria, Jung Chang’s grandmother, now living with Dr. Xia, begins to realize how terrible life is under the Japanese. The Japanese rulers are very cruel. The people are only allowed to eat acorn meal and sorghum, as the Second World War drags on, fewer rations and supplies are given to the people in Manchuria as Japan is losing the war. Finally, an American B-52 bomber flies overhead and she realizes that Japan had indeed lost the war. As Japan’s last officers commit suicide or run away, the town is in chaos just like the rest of Manchuria. Chapter 4: The Japanese are replaced by Soviets who were almost as bad. They pillaged and raped, taking what they wanted and dismantling entire factories. However, they soon leave and the Kuomintang arrives in shining uniforms and rifles. The Kuomintang turns out to be oppressive and ineffective at keeping justice and peace. The remaining Japanese are systematically murdered by the Russians and the Kuomintang. After a while the country is in a civil war between the Kuomintang and the Communists. De-hong sees communism becoming increasingly important to many people but has yet to make up her own mind about the situation. She continues to watch those in power, including those over the teaching school where she now resides. When she learns that a favorite teacher and then her best friend, Cousin Hu, had been Communists and had been either chased from the city or executed for their political beliefs, she makes up her mind that she, too, will become a Communist. Chapter 5: De-hong asks to be a part of the communist movement but she’s found too young. A short time later, she begins distributing Communist literature. The economic situation is so bad that the family has no savings and Dr. Xia, now nearly eighty, is worried about what will happen when he dies. Extortion is rampant, food is scarce, and the money that does exist has almost no value. De-hong becomes friendly with a Kuomintang general. Using his military freedom, they travel outside the walled city occasionally and De-hong leaves messages for her Communist counterparts.. The Communists then start regular bombardment of the city, including one dud shell that crashes into the home of De-hong’s family. Chapter 6: De-Hong helps clean up the carnage cause by all the civil war. When the communists take over the town, they do not pillage, rape, or extort as all the other groups of people had done before them. Many are courteous and kind and seem to be the fit kind of soldiers who destroyed the Kuomintang. When De-Hong reports to receive her first assignment for the communists, she instantly falls in love with a dreamy man, named Wang Yu, who was a high ranking communist official. He had been on many dangerous missions with the communists and rose through the ranks by being extremely loyal to the party and its ideals of sever equality. The two and several other teachers and students travel by train to another communist held town for fear that the town may be retaken by the Kuomintang and there, the two fall in love. Wang Yu eventually submits a request to â€Å"talk about marriage† to the party leaders and the two are engaged and finally married. Chapter 7: Chang’s parents join a group of people traveling south. The trip is dangerous as civil war is still raging. The walk is long and hard, walking forty days to reach their destination, Nanjing. Her mother is forced to walk but her father is allowed to ride in a jeep, a privilege he accepts. De-hong is soon pregnant though she doesn’t realize it until she’s in the process of miscarrying because of the ordeal. She’s very heartbroken and angry at her husband. After the miscarriage, her parents are separated because of his transfer to Yibin. It takes her four months to recover and then make the trip to him. During that time, her anger has cooled and they are happy to see each other. Chapter 8: When Chang’s parents arrive in Yibin, her father is appointed leader and returns to a form of his former name, Chang Shou-yu. He and her mother live together in a mansion confiscated by the Communists. Chang’s grandmother, Fang-Yu, despite her bound feet and difficulty walking, makes the long trek from Jinzhou to Yibin to see De-hong. De-hong gives birth to her first daughter, Xiao-hong. Chapter 9: This chapter tells of her mom’s life as being in the Public Affairs Department in Yibin. She tells of living with a denouncing of her grandmother, the birth of herself and the strictness of her father. Being part of the Communist was hard and had many of its hardships. Having a husband was harder for her mother than anything else. Chapter 10: Chang’s mother goes under suspicion during the course of this chapter. Being that she had some relations with Kuomintang participants she went under suspicion. But, after all that she had to go through, she was able to be free of any charges. Chapter 11: During this chapter, Mao decides to purge the Communist party again. This time devises that most people are â€Å"rightists† and need to leave the party, which ruin their lives forever. However, he got help this time and made all of his officials get rid of 5 % of their total participants. In the end, Chang’s mother was able to get to this quota after many different approaches of convicting people of being a â€Å"rightist.† Chapter 12: A famine strikes the land of China during this chapter. Many people die and starve from this famine all because Mao decides to make this situation look like their wasn’t a famine at all. Mao wanted to produce steel which led to a drop in production of food which leads to the famine. But, the famine gets cleared after Mao lets others to take charge of the situation. Chapter 13: Chang describes life in a compound during this chapter. Moving into a compound was for Chang and her siblings to go to a very nice and prestigious school. Living in a compound was very contained with its many entertainment locations. There was no need to go outside the compound for any reason. She also tells of how nice her life was as a child, living in a home where she was a good kid and her family noticed that. Chapter 14: This chapter describes the event that occurred with the cult of Mao. Many youths were forced into living like Lei Fang, a man who had a huge fondness for â€Å"Chairman Mao† and living his entire life revolving around him. Education included studying the words of Lei Fang and viewing the beatings of â€Å"class-enemies.† Chapter 15: After hearing about the collapse of Stalin’s Russia, Mao realized that he represented a Stalin figure waiting to be overthrown by his own people. In order to stop this from happening, Mao endorse’s books called â€Å"The Quotations of Chairman Mao†. This book contained his quotes and would be used to strengthen his popularity with the Chinese. In short, Mao’s control over China tightened throughout this chapter. Chapter 16: Not until, chapter 16 did Mao’s rule become apparent. Mao issued the use of Red Guard’s who he said protected and fought for Mao (in other words his own police force). Most of these Red Guards came from the families of high officials and came as teenagers. These Red Guards reinforced Mao’s word and rule and when someone was â€Å"betraying† Mao, he or she would be beaten, raided, tortured, or executed. Chapter 17: Jung Chang’s father starts to question Mao’s actions and asks whether if the actions of the Chinese are justified. Eventually Jung Chang’s father writes a letter to Mao explaining the wrongs of Mao’s actions (which in the words of Mao, was considered â€Å"against Mao† and could face charges such as death). He soon serves time in detention. Also he starts to oppose Mao’s thoughts and expresses them out loud which can lead to very harsh outcomes. Chapter 18: To summarize this chapter, Jung Chang and her friends make a pilgrimage to Peking. The goal of this pilgrimage: to see the Great Chairman Mao. Chapter 19: The control of Mao switches into high gear. Because her parent’s become branded as â€Å"capitalist-roaders† they suffer from many brutal denunciation meetings, beatings, harassment, and embarrassment. They are hurt for their crime of being â€Å"capitalist roaders† and bitterness starts to arise because they were only ever loyal to Mao. Chapter 20: Jung Chang’s father soon serves time in detention (due to sending another letter to Mao) and his wife makes a trip to Peking in order to speak to Premier Zhou Enlai, who she believes could help in their situation. On her way to Peking she meets two lovers Yan and Yong who join her. Finally with the help of Premier Zhou Enlai, Jung Chang’s father no longer served in detention. However, this does not end well. While in detention the guard watching over Jung Chan’s father plays mind games with him and convinces him that his wife created a conspiracy against him. Things got out of hand causing them to sleep in seperate areas and forces Jung Chang’s father’s mental and physical health to deteriorate (which later, his health imporved). Next more denunciation meetings hold misery for the parents. Chapter 21: Chapter 21 discusses some of the events that occured within her family. (her siblings) For example, Xiao-hei’s becomes a member of a gang and Jin-ming’s â€Å"black market† book experience. Along with these events being told, she tells of people drawing lines between their enemies and friends, sometimes causing friends to betray each other. Luckily her friends did not tell on Jung Chang which relates back to the title of the chapter, â€Å"Giving Charcoal in the Snow†, that refers to helping out others when needed. Also in this chapter, Jung Chang experiences her first time in a university. Chapter 22: Within this chapter, Mao institutes the idea of â€Å"thought reform through labor†. The intentions of this quote made Communists all around China to go to the countryside and work alongside the peasants (Jung Chang was sent to Ningnan). Mao said that it would make the Communists closer to China. Sadly, at the end of the chapter, the friend’s of Jung Chang pronounced her grandmother dead. Chapter 23: To summarize this chapter, Jung Chang pursues her career as a â€Å"barefoot doctor†. Mao defined barefoot doctor’s as doctors that could be turned out en masse. However, before she became a barefoot doctor she was relocated to another peasant village, Deyang, where she learns of what happened to China before the Cultural Revolution. Chapter 24: With her entire family on the mission of completing â€Å"thought reform through labor†, Jung Chang decides to visit her parents who can be found in separate locations. Her mother in Buffalo Boy Flatland and her father in a labor camp. While visiting her father, she tries to cheer him up by keeping him company. Eventually other family members come visit which allowed her father to not suffer from suicidal thoughts and whatnot. In the end, Jung Chang’s father apologizes to Jin-ming, her brother, about their current situation and past events. Chapter 25: In this chapter, Jung Chang takes her career in being an electrician. In her factory, she meets Day and eventually they both fall in love. However, it becomes shortlived because of their different social status’. In the end, Jung Chang’s father dies and she enrolls into an english university. Chapter 26: Education in China becomes less stressed, however those who had connections with officials became legible to enter universities, through the process which later became known as using the †back door†. Teachings elements became based on Mao as well as military tactics and defending the country. Chapter 27: This chapter gives rise to the death of Jung Chang’s father. Her father died due to a heart attack which a doctor refused to see immediately. In his honor, an elaborate funeral was held for Jung Chang’s father. After the funeral, Jung Chang’s school decides to go on a field trip to the Chinese port, Zhanjiang, where the students could practice their English with the incoming and outgoing sailors. At the end of the chapter, Jung Chang’s Party secretary announces the death of Chairman Mao. Chapter 28: After the death of Mao, the Chinese become a bit confused on what they should do. The idea of studying in the West became very prominent, as the government handed out scholarships for those wanting to go to the West. The story ends as Jung Chang traveled to the West in search of broadening her horizons and experiencing more freedom.

Aqa Business Studies Essay

Explain two benefits to them of setting up the business as a partnership. (4 marks) Explain two ways that Expresso Printing Ltd could motivate its two new employees (4 Marks) Explain two possible effects on Good for Us of lowering its prices (4 Marks) Good for Us prides itself in providing good customer service. Explain two ways in which Good for Us could provide good customer service (4 Marks) Explain the benefits to Darren of producing a business plan (4 Marks) Explain two benefits to Darren of aiming his product range at a gap in the market (4 Marks) Explain why the charity uses volunteers in the shop and not paid workers (4 Marks) Explain why the profit or loss made in November 2010 has changed from the ? 50 000 profit made in November 2009. (4 marks) Using the data in Figure 1, calculate the profit or loss made by Atkins Ltd in November 2010. (4 Marks) Explain why it is important and how does it benefit Atkins Ltd for having a high quality product. (4 Marks) Explain one advantage and one disadvantage for Jenny of operating as a franchise. 4 Marks) Explain two possible reasons why A to Z Frames has highly paid workers (4 Marks) Explain how STS would benefit from improving its customer service. (4 Marks) State one other source of finance and explain why it might be suitable for Tony and Rima (4 Marks) Explain the possible effects on Meals for All of using cheaper ingredients (4 Marks) Describe the effect that the opening of the new pizza takeaway might have on two different groups of stakeholders of Marco’s business (4 Mar ks) Explain what other information Marco would need to consider before deciding whether to reduce his price (4 Marks) Explain two advantages to Budget Signs Ltd of using batch production to produces its large range of standard signs (4 Marks) Explain two advantages to Budget Signs Ltd of using job production to produces its large range of standard signs (4 Marks) Explain two disadvantages to Budget Signs Ltd of using batch production to produces its large range of standard signs (4 Marks) Explain two disadvantages to Budget Signs Ltd of using job production to produces its large range of standard signs (4 Marks) State and explain two reasons why the company mainly employs part – time staff State and explain two reasons why the company mainly employs full – time staff Explain two benefits to them of setting up the business as a company. (4 marks) Explain two benefits to them of setting up the business as a franchise. (4 marks) Explain two benefits to them of setting up the business as a partnership. (4 marks)

A Look at Shakespeares 154 Sonnets

Shakespeare wrote 154 sonnets, which were collected and published posthumously in 1609. Many critics segment the sonnets into three groups: The Fair Youth Sonnets (Sonnets 1 – 126)The first group of sonnets are addressed to a young man with whom the poet has a deep friendship.The Dark Lady Sonnets (Sonnets 127 – 152)In the second sequence, the poet becomes infatuated with a mysterious woman. Her relationship with the young man is unclear.The Greek Sonnets (Sonnets 153 and 154)The final two sonnets are very different and draw upon the Roman myth of Cupid, to whom the poet has already compared his muses. Other Groupings Other scholars lump the Greek Sonnets with the Dark Lady Sonnets  and call out a different cluster (Nos. 78 to 86) as the Rival Poet Sonnets. This approach treats the subjects of the sonnets as characters  and invites ongoing questions among scholars about the degree to which the sonnets may or may not have been autobiographical. Controversies Although its generally accepted that Shakespeare wrote the sonnets, historians question certain aspects of how the sonnets came to print. In 1609, Thomas Thorpe published  Shakes-Peares Sonnets; the book, however, contains a dedication by T.T. (presumably Thorpe) that confounds scholars as to the identity of whom the book was dedicated, and whether the Mr. W.H. in the dedication may be the muse for the Fair Youth Sonnets. The dedication in Thorpes book, if it had been written by the publisher, may imply that Shakespeare himself did not authorize their publication. If this theory is true, its possible that the 154 sonnets we know today dont constitute the totality of Shakespeares work.