Social Media Influences Your Shopping Behaviour Marketing Essay

Social Media Influences Your Shopping Behaviour Marketing Essay Social media is constantly evolving and changing with more and more people around the world jumping on the social media bandwagon. This has impacted and influenced the buying behavior of the people. People are much more informed now and like to read opinions and reviews of other people online before buying any product or service. This report will look at how the buying behavior has been impacted and which stages of the decision making process have been influenced by the rise of social media. This has also changed the way companies used to market their products and services. Now, companies also need to use social media to interact with their customers, market their products, solve the problems faced by customer etc. Social media has given a wonderful platform to the companies for a two way interaction with the customers. Further, the younger generation has been impacted the most as they are the majority users of social networks and hence their buying behavior has under gone a drastic change. Table of Contents Introduction The report will analyze how social media has impacted and influenced the buying behavior of people. Nowadays it is common to see everybody around us joining Facebook, Myspace, Twitter etc. The interactions of people on these social networks impact their opinions about various products which in turn influences their buying behavior. This influence will be analyzed using relevant theories related to buying behavior and social media usage. What is Social Media? Social Media is defined as the use of web-based and mobile technologies which turn communication into interactive dialogue. Kaplan and Haenlein (2009) define social media as a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, which allows the creation and exchange of user-generated content. There are various internet based applications which are driven solely by the media generated by the consumers. These applications act as a platform where users from around the world interact with each other on topics which are of interest to them. Some of the famous social media websites are Facebook, Twitter, Flickr, Blogger, MySpace etc. Facebook has more than 600 million users around the world and an estimated 41.6% of the U.S. population is on Facebook (Wells, 2010). These figures show just how popular social networks like Facebook are and how everybody is jumping on the social media bandwagon. Consumer Buying Behavior Process Consumer Buying Behaviour is the decision making process he/she undergoes while choosing a product or a service. The basic steps in the process are as follows: Need Recognition The buyer identifies the need for which the product or service is required. Alternative Search He/she searches for the alternatives that are available in the market in this stage. Alternative Evaluation Evaluation and comparison of all the alternatives on various factors is done in this stage. Purchase Decision The buyer chooses the best alternative and buys it. Post Purchase Evaluation / Dissonance This stage involves evaluating the benefits of the product / service after using it and forming an attitude about it. How Social Media affects the Decision Making Process ? People from all over the world use Social Media to create and share opinions, insights, experiences and perspectives with each other. Social Media affects the Alternative Search and the Alternative Evaluation stages of the decision making process. Lets see how it does that. Alternative Search After the consumer has identified the need for a product or service, he/she goes on the internet and searches for the same. The search results give an idea to the consumer about the alternatives that are available in the market for the required product or service. The various search results take him to various blogs, review sites, online retailers, Facebook page of the product etc. The user forms an opinion about the product after going through the various reviews and comments about the product which are posted by people from around the world on various social media websites. Alternative Evaluation After knowing the available alternatives the user zeros in on two or three brands which satisfy his need. He/she then goes on the internet to do a comparison between the brands and to know the opinion of other customers who hav used that brand below. Additionally, the user may post on his Facebook / Twitter account asking his friends about their opinion on which brand he/she should go for. After considering the reviews on the internet and the opinions of his friends, the user then decides the particular brand that he/she will finally buy. This is quite different from what previously used to happen in the above two stages i.e. before the coming of social media. Previously, the consumer had no option but to go to the market and visit various shops to find about the various alternatives that are available in the market that satisfy his need. Further, the consumer was solely at the disposal of the retailer for the comparison of the available alternatives and for reviews of the same. The retailer further pushed the product which fetched him the greatest margin irrespective of whether the product is good or bad. The chances of this happening now have become very less because the customer has become much more informed now. How has social media changed the nature of promotion and communication to target markets? Before the coming of social media, the information about a product or service originated from the company and was distributed through the sales rep, distributors and the retailers. But now customers have access to this information directly from the company website or by using Google Search, Facebook etc. The information is available on many websites on the internet and the customer is talking to his/her peers to form an opinion about the product. Thus it becomes essential for the companies to ensure that correct information about their products is easily available on the internet. Hence, companies have started using Google Ads and Ads on Facebook etc. to promote their products. They can also use Search Engine Optimization (SEO) and Search Engine Marketing (SEM) to promote their websites by increasing its visibility in search results. SEM industry in USA was 16.6 Billion Dollars in 2010 (SEMPO, 2011). Further, they can create official Facebook account for their products or services so as to give a platform to their customers to discuss the products. These accounts also act as an information channel which works both ways. The company is able to educate the customer about their product, its features, recent promotions etc. and at the same time the company benefits from the consumer feedback it gets from the consumers of its products. The company can further use this feedback to improve and create better products for the future. In the case of Twitter, companies can create an account where they can proactively update their customers aka followers with new updates, answers etc. It is also essential for the company to keep its followers engaged by coming up with different contests and promotions from time to time. This also helps spread the awareness of the companys Twitter account as the company gets more and more followers. Who are the most receptive target markets ? Around 53% of the US Facebook users are aged between 18 34 (Corbett, 2011). This clearly shows that the young population is the most active on social networks and hence is the most receptive target markets for the companies. Young users spend a considerably time everyday on social networks like Facebook and Twitter. Further, with the coming of smartphones it has become much easier for them to keep in touch with their friends etc. Hence, the impact and influence of social media is the most on the buying behavior of young consumer. This makes it much more important for companies whose target market is young people to get on the social media bandwagon and interact with its customers through various channels like Facebook, Twitter, Blogs etc. This two-way interaction will be beneficial to both the customer as well as the company. Conclusion If theres one constant in social media, its change. Social media is rapidly changing and evolving with more and more people around the world joining the social media bandwagon. Further, the social media influences and impacts the two stages in the decision making process of a customer. These stages are Alternatives Search and Alternative Evaluation. Before buying a product, buyers now search on the internet for the same so as to read the reviews and opinions of the other people. This is especially common among the young generation as they are the most active users on the social networks. Hence, the companies need to interact with its customers through social media channels like Facebook, Twitter etc. to effectively market their products to the target audience.

Analyse The Factors Affecting The Strategic Plans

Analyse The Factors Affecting The Strategic Plans Tesco plc is a well-established and consistently growing food retailer global company operating in UK and many other countries like USA, Europe, Thailand, China, Japan and so on. It was established in 1919 by Jack Cohen, when he sold some groceries in the stall in East London and then it later lead to the opening of the first Tesco store in 1929 in North London. Using the well-researched and consistent strategy for growth, Tesco has been able to strengthen their core UK business and lead them to expand into new markets. Tesco has already been declared as the no.1 superstore in UK against its rivals Asda, Sainsbury and Morrison. Tesco is still aiming to broaden the scope of their business to enable it to deliver strong sustainable long-term growth by following the customers into the basic and the large expanding markets at cheaper price. Currently, Tesco has over 2200 stores in UK and has been able to reach every possible customer through its different types of outlets as superstore, metro, extra, express and by various means as online shopping through Tesco direct, Reserve and collect plus loyalty/club cards, insurance, clothing, banking and financial services, telecoms, insurance. So this report will be identifying Tescos vision, Mission, its current strategic objectives, evaluates them and analyses the factors that will be affecting strategic plan. The purpose of this case study is to review and determine the organizational strategic aims and objectives identify and analyse the progress towards organizational strategic aims and objectives and to determine and evaluate strategic options to support a revised strategic position. 1.1 Identify the current strategic aims and objectives TESCOS STRATEGY Our well-established and consistent strategy for growth has given the business momentum to grow through the downturn. (1) Long term Strategy According to Tescos official website it is clearly evident that Tesco has a well-established and consistent strategy for growth. The rationale for the strategy is to broaden the scope of the business to enable it to deliver strong, sustainable long-term growth by following customers into large expanding markets at home such as financial services, non-food and telecoms and new markets abroad, initially in Central Europe and Asia and more recently in the United States. Objectives:- The objectives of the strategy are: Successful global retailer Tesco aims to be one of the most successful global retailer organisation in the world. With this idea in mind they have opened stores in many other countries like Canada, USA, Europe, Thailand, China and Middle East. Growth in core UK business Tesco also aims on growing its business as the core UK business as it is originated here. It had 1500 stores in UK in 2007 whereas the number has reached to over 2000 by now. And it has diversified its market from only being a food retailer to selling fuel, clothes, housing, finance, banking, insurance, mobile broad band and electronics. Strong non food retailer As Tesco has been known for its food items and is the leader in food retailing, Tesco also aims to develop the rest of the retailing it has been doing. They are working hard to be as strong in non-food as they are in food. Developing banking and finance Tesco is also working for developing retailing services such as Tesco Personal Finance, Banking, Telecoms and Tesco.com. This is showing that Tesco is determined to help its customers even with the financial and banking services. As the name specifies, Tesco is all set to deliver Every little helps. Community friendly Approach Tesco is determined to put community at the heart of what they do and help maintain the natural balance. Values and aims According to the official website, Tesco feels that: No-one tries harder for customers than Tesco They have mentioned that they understand their customers needs and they want to be the first to meet their needs and at the same time they want to act responsibly to their community in order to avoid any kind of degradation in the environment and ethnicity. Tesco promises to treat people as we like to be treated: Work as a teamà ¢Ã¢â€š ¬Ã‚ ¦Trust and respect each otherListen, support and say thank youà ¢Ã¢â€š ¬Ã‚ ¦Share knowledge and experience.so we can enjoy our work. Tesco has been taking regular feedbacks from customers by asking them and the staff what can be done to make shopping with them and working with them better.(2) 1.2 Undertake an evaluation of the component parts of a strategic plan Tescos strategy to diversify the business in 1997 has been a very important landmark and the base to the success of the company. Product Diversification from being only food retailer to non-food retail was the best decision that has made Tesco to be the market leaders in many of their markets in and outside UK. According to Tescos official website (www.tescoplc.com), its vision and mission are: Vision- Every little helps. Tescos vision is very simple as it is stated. It simply focuses on providing every little helps to the customers. Tesco is willing to follow the customers and their basic needs and be the only retailer to help them out with every kind of help they need -small or big Mission Tesco aims to broaden the scope of their business to enable it to deliver strong long-term sustainable growth by following their customer into large expanding markets at home such as financial services, non-food and telecoms and new markets abroad, initially in Central Europe and Asia, and more recently in the United States Chairman s statement Over the past decade Tesco has transformed itself into a diverse international business- we are well-positioned for long-term growth. Tesco is scanning the external environment as much as possible in order to develop its mission and vision. All these efforts from Tesco is making them able to meet their strategic plan to be everywhere, to sell everything and sell to everyone . Managers are taking further actions to full fill their promise. They are satisfying and identifying customer needs through affordable prices, quality products, home delivery, 24 hrs service, recycling, business expansion and technological developments such as online shopping and home deliveries. These evidences shows that; there is a clear alignment between their mission. Vision and strategies. This helps tesco in being market leader in UK retail super markets. 1.3 Analyse the factors affecting the strategic plan For any business to run and meet its long-term strategic aims and objectives, there is a great involvement of the environment. The environment is divided into Macro/external and Micro/internal environment and there factors which are affecting the long-term organisational strategic planning. Some factors both external and internal for Tesco are discussed below: Internal factors are those factors which come from the business and affect it without any regards to the external factors like suppliers, customers, distributors and so on. Some examples are Research and Development, Employee Turnover/employee satisfaction, Physical assets, mission and objectives and so on. The internal environment consists of variables (Strength, Weakness, Threat and Opportunities) that are within the organization itself and are not usually within the short-run control of the Top management. This variables form the context in which work is done. They include the cooperations structure, culture and resources, Key strength form a set of core competencies which the organization can use to gain competitive advantage. (Thomas L. Wheelen, J. David Hunger (2000). Strategic Management Business Policy. p10) By analyzing PEST Analysis, it is observed that Tescos strategic plan is affected by various external factors. They are: 1. POLITICAL FACTORS Government interferes in the economy of every company. Factors such as tax policy, labour law, environmental law, trade restrictions, tariffs and political stability makes the major impact on the business and the society as well as the global market. This year the government has increased the tax from 17.5% to 20%. This has affected the profit of Tesco and is affecting the long-term aims, mission and vision of Tesco. 2. ECONOMICAL FACTORS Economic factors include economic growth, interest rates, exchange rates and the inflation HYPERLINK http://en.wikipedia.org/wiki/Inflation_rate / Inflation raterate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a Tescos revenue and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy. Example: increased fuel tax, impact of credit crunch on sales. SOCIAL FACTORS Social factor includes the cultural aspects and include growth rate of population, age distribution, health consciousness, career attitudes and health and safety. Changes in the social factors affect the demand for a companys products and how that company operates. For example, the new trend of health consciousness has resulted in Tesco to produce more organic and low fat foods such as skim milk, organic milk, organic vegetables, Lighter choices with nutritional value mentioned in the product and local charities and getting Thailand over fit- 3 million people involved in aerobics Tesco has changed various management strategies to adapt to the social trends such as recruiting older workers and long term unemployed people as a part of social responsibility; Regeneration: where people who are unemployed for more than 6 months had been trained for several weeks and were guaranteed jobs; Community Champions and many volunteers helping the community and local charities. (UK supporting canc er research with race for life to fight against cancer) (4) 4. TECHNOLOGICAL FACTORS Technological factors include technological aspects such a Research and development activity, technology incentives and the rate of technological change. Technological changes in Tesco can affect costs, quality, and lead to innovation. Example: Use of self check out service, online shopping and reserve and collect service(new) has saved huge amount of labour cost, has avoided customers from being charged for same product more than one time plus has saved time of the customers. Or use of security system and CCTV cameras has prevented Tesco from having huge amount of stock variances and made the staff more work efficient with the fear of being caught while doing irresponsible activity during their duty hours. 5. ENVIRONMENTAL FACTORS Environmental factors are growing awareness of the potential impacts of climate change is affecting how tesco operates and the products they offer, both creating new markets and diminishing or destroying existing ones. Zero carbon foot prints, Recycling, sustainability are the areas of focus for tesco, so that the products have been labeled with the message of recycling. Using local resourced products is attracting customers towards the specific food products.Example: climate change affecting Tescos supply and transport. 6. LEGAL FACTORS Legal factors include discrimination law, consumer law, data protection law, antitrust law, employment law, and health and safety law. Assuring Health and safety in all the regions wherever it is expanded is one more challenging Legal responsibility of Tesco. These factors can affect how Tesco operates, its costs, and the demand for its products. Example: Tesco to avoid the legal opposition to expand on the high streets LO2: Evaluate alternative strategies to meet the desired future strategic position. 2.1 Apply a range of strategic analysis tools to audit progress towards strategic aims and objectives SWOT ANALYSIS FOR TESCO INTERNAL FACTORS Strength Weakness  · Giant Leader in superstores  · Financial stability  · Huge Brand name  · Bulk goods importers and sellers  · Product Diversification from being food retailer to non food plus electronics, telecom, insurance, banking and finance  · Competitive pricing-providing goods and services in low price  · Ensuring Health and Safety in different parts of the world  · Maintaining Quality issues as the goods are supplied from different suppliers abroad, out of which some are not very experienced with maintaining high quality.  · Stabilizing itself as a good non food retailer.  · Maintaining their presence and growing customer loyalty in the recently expanded countries  · Expansion in more developing c countries  · The competitors: Asda being competitively cheaper Sainsbury, Morrison being food retailers with comparative pricing  · Environmental issues and corporate Governance responsibility Opportunities Threats EXTERNAL FACTORS Strengths Giant leader in superstore and financial stability Tesco has over 2200 stores and Tesco holds more than 71% share in the UK retail market Its strategic capability explains that it will continue to grow share in food, while increasing space contribution from supermarket will allow it to drive a higher share in non-food. Tescos business growth shows no sign of failing. In the UK, Tescos late 2006 investment into West-midlands based convenience store group TS was billed as the most aggressive move into the neighbourhood market by a big-name retailer so far. They are aggressively expanding and going with acquisitions with the local food stores. The deal has turned Tesco into the countrys biggest convenience store chain, and the company also plans to open up 95 new stores PLC in the UK this year which includes 6 stores purely based on Regeneration Scheme. Tescos general growth shows no sign of failing. Health safety issues and maintaining quality Maintaining health and safety is a major challenge for Tesco. From the suppliers to warehouses and to the store, there is always a risk associated. Plus making sure that the stock is properly handled in the store by stacking them properly and the use of trolleys and their proper management is also the major responsibility of Tesco. They must make sure that every single person who is linked to Tesco should be safe while they operate their operations. Maintaining the quality and standard of goods they supply is also a major challenge to a bulk good retailer like Tesco as they have to get goods from their suppliers all around the world. They have been very fair to their suppliers and they want them to be decent to them by maintaining the standard of the goods they produce and supply. Opportunities Business growth and expansion in Europe is successful but it still has to work in some other parts of world. They have just started exploring Asia but being all over Asia and the rest part of the world is a strong opportunity. Being established as a non-food retailer is another very good opportunity for Tesco. Since the start of diversification, they are working to prove Tesco not only as a grocery store but a superstore providing customers with every little helps. Weaknesses 2.2 Review and assess the expectations of major stakeholders and their influence upon the organisational strategy Engagement with stakeholders is helping Tesco identify new risks and opportunities and to ensure that their long-term goal and strategy is sustainable. In some cases, they have found that working with stakeholders in partnership can help deliver shared goals. Tesco feels that they might not be able to satisfy all stakeholder concerns all the time but through proper engagement they can do their best to balance competing demands. Tesco is very committed to having a productive dialogue with its stakeholders inorder ensure that they understand what is important to them. This is allowing themselves the opportunity to maintain their position. Engaging with stakeholders includes customers, employees, suppliers, investors, government, regulators and non-governmental organisations.() (www.tesco.com/cr2010) The major stakeholders of Tesco plc.are: Customers Customers need to be able to trust tescos business and they will only trust only if they believe that there is appropriate engagement in regular basis with the stakeholders. Tesco has been using various strategies to able to win the trust of its stake holders by following various strategies such as Cost leadership, diversification, Tesco believes that if they can offer what the customer needs than surely they will come back and purchase again. This is helping to establish and gain lifetime loyalty of the customers. The launch of Club cards is helping customers satisfy their needs and quality services are the functional business strategy of Tecso. They have been innovating more than 2000 new products (food/non-food) every year depending upon the demand of the customers. Example: Launching organic, dietary and healthier food options, Nutritional values in the packaging and making sure that the quality of the food is maintained by doing mystery audits in the suppliers factories. And the new self check out system where customers can grab whatever they want and go has helped the customer to manage their time and made it simple to operate. According to the Tesco website, Tesco says No-one tries harder for customers: Understand customers. Be first to meet their needs. Act responsibly for our communities. Treat people as we like to be treated: Work as a team. Trust and respect each other. Listen, support and say thank you. Share knowledge and experience.so we can enjoy our work. We regularly ask our customers and our staff what we can do to make shopping with us and working with us that little bit better. This proves Tesco has been treating their customers as the core of their business and are providing every simple and small helps by being fair to them. (http://www.tescoplc.com/plc/about_us/values/) Employees Tesco employees 285,000 employees. Philip Clarke, Chief Executive from 2011 says If we dont look after our staff the chances are they will not look after our customer. (http://www.tescoplc.com/plc/media/board_announcement/) Tesco has been using the term A great place to work in which they include; Our staff have told us what is important to them to be treated with respect, having a manager who helps them, having an interesting job and an opportunity to get on. Helping achieve what is important to our staff will help us to deliver an Every Little Helps Shopping Trip for our customers. (http://www.tescoplc.com/plc/about_us/values/) The statement clearly states that they treat everyone with respect and dignity. At the same time they have great managers who are always ready to help the team and make their job interesting everyday and giving them good opportunities by job rotation, job enrichment and job enlargement. These activities take the employees off from the regular job pattern, motivates them to learn and do new things everyday. And staff are the basic point of contact to customers and it is very important to get them right to gain satisfaction and loyalty of all our customer. Employees are the most important and basic level of contact with customers. Every customer remembers his first experience when he visits the store and the way he had been assisted. A good and motivated employee always treats them very well. So Tesco has been very focused to make sure the employees do their duties in the right way and makes sure that every customer and even the employee is being treated in the right way. Rewards wise also Tesco is the only organization which has been giving bonuses to their staff on doing their regular jobs. For maintaining the accuracy of stock level they get 15% bonus, till accuracy 5% bonus and Mystery shoppers result 5% bonus. Apart from this there are more benefits and rewards the employees are getting like holiday pay, outstanding service award, discount in shopping, career breaks, free company shares. Tesco has recently given a huge amount of share profit to its employees (02/06/10). More than 216,000 Tesco staff, from checkout operators to drivers and managers found out that they will share a  £105 million bonus pot as the company announced details of its biggest ever Shares In Success scheme(http://www.tescoplc.com/plc/media/pr/pr2010/2010-06-02/). Supplier Tesco has been supplying goods from different parts of the world as the bulk retailer has to meet the demands of huge retail market segment like Kenya, South Africa, Spain, Scotland, Wales, and has high expectations of its suppliers. They have built a strong relationship with their suppliers, have given them the best value for their customers and given their customers the confidence of maintaining good standard through out their chain. They are very focused in treating the people in the right way so that they perform better and which will automatically helps in improving sustainability in their supply chain by encouraging suppliers to make proper investment in products and stable work. Due to their decent pricing, Tesco is confidient to keep the trading for longer period of time and is willing to get enough support from its supplier by being with them and helping them maintain their ethical and food standards. Tesco has been sourcing products from the countries which has cheaper good employment practices, cheap labour and less regulations to maintain the level of margin. (http://cr2010.tescoplc.com/en/buying-and-selling-our-products-responsibly.aspx) Tesco has been paying more for the diary suppliers. Kenayen suppliers had been supplying goods since long time. Tesco launched an awarding agenda where they had been launching surprise visits and evaluating the hard work done by the suppliers and rewarding them afterwards. Tesco has also been providing necessary training to the suppliers staff in Kenya, South Africa. The following diagram shows the competitive rivalry and shows the effect of stake holders in the business. 2.3 Analyse, interpret and produce a structured evaluation of the organisational strategic position Note: The challenges faced by the organisation may be identified, for example, competitive environment, external climate and globalisation (if applicable) may be examined. The knowledge gained by studying Porters three generic strategies and PESTAL analysis may be applied. Political view reflects that the economic downturn- credit crunch has lead to high number of unemployment. But Tesco has been able to help a number of people by providing them jobs. and therefore helping the unemployment. Regeneration: People who are unemployed for more than 6 months had been trained for several weeks and were guaranteed job. Three new stores were opened and 320 people were employed. 6 more stores will be opening this year. Community Champions: Tesco has Community Champions and many volunteers helping the community and local charities, Healthy living for customers: is one of key promise by Tesco and is celebrated by producing healthy products like lighter choices, nutritional value mentioned in the product, getting fit-Thailand over 3 million people involved in aerobics, UK supporting cancer research with race for life to fight against cancer. Tesco is also instrumental as a retailer in supporting carbon reductions and have also encouraged their customers to make low carbon choices .They created a  £100 million Sustainable Technology Fund for this purpose. At the same time they are maintaining the eco-friendly approach by helping reducing the pollution-they are passing the message to their customers to reuse and recycle the wastages. LO3: Decide upon a strategy and identify how, if required, you would justify your selection to meet the required future strategic position. 3.1 Identify and develop a range of alternative strategic options to meet strategic aims and objectives Note: This section requires the candidate to apply his/her own judgement so that a few alternate options are visualised and discussed,. For example the candidate may propose emphasis on alternate products, or increased after sale service, or following aggressive marketing strategy etc. During the 1980s Professor Michael Porter from Harvard Business School developed the model of generic competitive strategies. He called the strategies generics as they can be undertaken by businesses of any size or type, even if they are non-profit organisations (Hunger and Wheelen [2001]p82). He argued that companies only have three strategies to choose from: Cost leadership Differentiation Focus Porter also believed that before a company decides which strategy to adopt, it must know its competitive scope: the breadth of its target market, the range of products it wishes to produce, the distribution channels, the type of buyers and geographic areas it wants to serve and the related industries it will be competing in (Hunger and Wheelen [2001]p82).The cost leadership strategy is aimed at the broad mass market and requires actions like cost minimisation in research and development, services, sale forces, advertising and so on. By doing this the company will sell its product for smaller price than its competitors but still achieve reasonable profit. This also creates entry barrier for the new market entrants, as it would be difficult for them to match the low cost of the existing producer. (Hunger and Wheelen [2001] p83). The differentiation strategy is aimed at the broad mass market as well, but this time creating a product which must be perceived as unique by its customers, for example through design, The strategy aims to gain customer loyalty and therefore making the buyer insensitive image, technology, customer service, dealer network and so on to a higher price. This again will also make entry more difficult for new entrants (Hunger and Wheelen [2001] p83). (Hunger and Wheelen [2001] p83) argue, differentiation strategy generates high profits as it creates a better entry barrier. Low cost strategy however creates increase in market share. Focus strategy concentrates on serving only a certain niche market as either a cost leader or with a differentiation strategy. In cost focus a firm seeks a cost advantage in its target market only, in differentiation focus a firm seeks differentiation in its segment (Lynch [2000]p.568) The following diagram may illustrate Porters model in more detail: Fig: Porters Generic Model (http://www.quickmba.com/strategy/generic.shtml) Tesco has been implementing the cost leadership strategy since its establishment. And after going to non-food retail in 2004, it also applied the diversification strategy in their business to meet the customers every needs. Tesco launched its own broad band in 2004 followed by Home plus in 2005. Globalisation has been another important step taken by Tesco. Though Tescos Fresh n easy did not do very well in USA in the first 2 years of its establishment, now it is maintaining its grip among the customers, according to Sir Terry Leahy Chief Executive. Tesco has been very successful in Europe and in Asia. To flourish more of its business in South Asia, Tesco has an exclusive franchise agreement with Trent, the retail arm of Tata Group to support the development of their Star Bazaar format by the end of 2010 in India. Since Tesco has already used the first two strategies, it still has the Focus strategy in hand. Tesco can still aim on the niche markets and work on that segment of the market in order to gain more market share. Tesco has recently opened their first baby store in Manchester which provides all the necessary materials to the toddlers including clothes, push chairs, strollers, car seats, high chairs etc. Similarly, the start of DRIVE-THRU store has covered another segment of people who drive and have very strict time schedule. Apart from that Tesco should also work on its weaknesses. Maintaining Health and safety in all parts of the world with its globalisation and maintaining quality of goods upto the Tesco standard at all times is the major challenge. Tesco should make sure that their ware house, suppliers factories and even the shop floor should be Health and Safety approved and should have all kinds of equipments that helps in maintaining it such as use of helmets, gloves, safety goggles and also training the people with right procedures of lifting weight, handling chemicals and so on. Tesco must make sure that every product they sell is 100% hygienic to the customers and has the same quality and standard at all times. Because of having different suppliers all over the world and buying goods on bulk, Tesco might not be have been able to keep proper maintained standard at all times(as some issues were raised last year regarding the bread supplier) So focusing strategy is not only a good idea to get a grip over the niche market segments but also to maintain its brand value among the existing customers. 3.2 Determine and justify the strategic option that meets the revised strategic position Note: Out of the alternate options in 3.1 above, the one which is considered to be most suitable to meet the new strategic position, may be identified. Justification may be given as to how this selected option is likely to fit in the present position. Out of the various strategies suggested above in 3.1,Focus on maintaining quality and brand value at all times all over the world without a single compromise is the most important option which is most suitable to meet new strategic position and is likely to fit in the present position. Tesco has already been market leader in Cost leadership and has used Differentiation strategy to its limit by understanding the needs of people to the basic extent and providing them the services and satisfying them. They have already started working in the niche marketing strategy by starting DRIVE-THRU store and Kids store. Tesco is aiming to launch mortgages in the first half of 2011, followed by current accounts in the second half of 2011/2012 financial year.

Teenagers Have Rights! :: essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  Under the eyes of god we are all created equal, and under the foundation of the country with gods blessing all patrons of the great USA are created equal. Right? Well that's what I thought until my eyes were opened this summer to the cruel REAL world. Is there any reasoning that befalls the United States Police Force to undermine the future of the USA? Are we so evil that we must be 'Plagued'; by the constant harassment of the police to follow us wherever we go no matter what we do? Are we so naive as to let this continue in the world that is supposed to be our Peaceful and Humble abode? No. We are the ones that will soon run this country and change starts with us. So here is our voice. Listen if you will, or listen if you wont. Either way you will hear our voice. We are of millions in size and will not fall to the beck, call, and command of those who only hold age higher than us.   Ã‚  Ã‚  Ã‚  Ã‚  Inside this document of our complaints, compliments, and worries you will hear how the young leaders feel and suffer. Points will be explained and many voices will talk. This is not just the viewpoint of me, but that of the entire generation around me. I am just the 'message bearer.'; Take offense to the following if you wish. Though this is not meant to offend, it is meant to constructively criticize. We are here not to exploit ourselves within the name of heroes. We are here to undermine the wrong and uphold the right. POINT 1: Stereo Typical Teenager   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  On Sunday night, September 5th 1999, friends and I were eating outside of Apple Valley McDonalds. Two Apple Valley Police Officers approached us in their vehicles and asked us to leave. Upon a friends departure I threw, a hand signal, which is known as 'Peace.'; Deriving from the old hand signal of victory from the war. It is a hand motion that consists of the middle finger and forefinger being placed in the upright position and the thumb crossing behind them. Do not let this be confused with a gang sign, as did the two police officers. I was told that I was to receive a citation upon the next time I threw this 'Gang Sign'; in public, for Disorderly Conduct. Upon our leaving a police officer followed the car of 'John Doe'; for a block and a half and then pulled over his vehicle.

Ralph Waldo Emerson and Transcendentalism Essay -- Biography Biographi

Ralph Waldo Emerson and Transcendentalism      Ã‚  Ã‚  Ã‚   Ralph Waldo Emerson believed in the potential within every individual to achieve a heightened state of being and awareness through a close observation of the world and an introspective look at himself. Infused in his work are the influences of transcendentalism and his life as a Unitarian pastor. James D. Hart, when discussing the spirit of transcendentalism, states, "Man may fulfill his divine potentialities either through a rapt mystical state, in which the divine is infused into the human, or through coming into contact with the truth, beauty, and goodness embodied in nature and originating in the Over-Soul. Thus occurs the doctrine of correspondence between the tangible world and the human mind, and the identity of moral and physical laws" (Hart 674). This concept is the embodiment of Emerson's sermons and essays, and any one of his works fulfills or inspires a divine potential.    "Self Reliance," published in 1841, is one of Emerson's most influential essays, and its title addresses a central concept of American Transcendentalism. The essay promotes self trust and independence of the individual, and this idea is expressed in the final lines, "Nothing can bring you peace but yourself. Nothing can bring you peace but the triumph of the principal" (Lauter 1638). The principal he refers to is a moral truth that can only be developed in one's own mind. As man lives in search of this truth, he achieves human divinity. "There is a time in every man's education when he arrives at the conviction that envy is ignorance; that imitation is suicide; that he must take... ... and divine because nothing is at last sacred but the integrity of your own mind" (Lauter 1624).    Works Cited    Emerson, Ralph Waldo. Young Emerson Speaks. New York: Kennikat Press Inc., 1938.    Hart, James D., The Oxford Companion to American Literature. 6th ed. New York: OxfordUniversity Press, 1995.    Howe, Daniel Walker. The Unitarian Conscience. Massachusetts: Harvard University Press, 1970.    Lauter, Paul, ed. The Heath Anthology of American Literature. 3rd ed. Boston: Houghton Mifflin Company, 1998.    Emerson, Ralph Waldo. "Self Reliance."Lauter 1622    Emerson, Ralph Waldo. "Nature."Lauter 1582    Whitman, Walt. "Song of Myself."Lauter 2743    Wilbur, Earl Morse. A History of Unitarianism In Transylvania, England, and America. Boston: Beacon Press, 1945.

Theme Of A Dolls House Essay -- essays research papers

Henrik Ibsen's, A Doll's House is definitely a unique story written by a very intelligent, complicated writer. I believe he intentionally wrote the play in a manner which would lead every reader to draw his own conclusions. He forces us to find our own interpretation of the play in context with our personal lives and experiences with the opposite sex. The theme may be interpreted by many as a study of the moral laws that men and women are required to follow by nature. I believe it is primarily based on the gender stereotypes that determine the role of women in society. During the time in which the play took place, society frowned upon women asserting themselves. Women were expected to play a role in which they supported their husbands, took care of their children, and made sure the house was in perfect order. In Act I, there are many clues that hint at the kind of marriage Nora and Torvald have. It seems that Nora is like a doll controlled by Torvald. She relies on him for everything, from her movements to thoughts, much like a puppet who is dependent on its puppet master for all of its actions. In the beginning of the play, Nora did enact the stereotypical role, which she felt she was required to do. In once instance, Torvald feels that he must reteach Nora how to dance the tarantella. Nora of course pretends that she needs him to teach her every move in order to relearn the dance. In truth, this is an act and proves her submissiveness to her husband. Once he is finished te...

Preparing for academic success at a graduate level Essay

Having academic success is what a person strives for as they first pursue a collegiate education especially at a graduate level. But there are instances when the journey is first pursued that many students may feel intimidated by responsibilities, preparedness, and the confinement of certain codes and rules set up by how an instructor may grade and the format a student writes in, like American Psychological Association (APA) style. Knowing that the main goal overall is to graduate and a main component of academic success is writing. Being prepared and responsible may be challenging but can produce a greater reward of success in the future, if managed correctly. Graduate Level Writing At a graduate level responsibility and preparedness are very important. With the main goal being on gaining a degree at graduation, academic writing, knowing personal strengths and weaknesses, finding out and knowing ways to improve on weaknesses, time, and stress are among some of the crucial areas at a graduate level to not only be responsible for but to also be prepared for. Seeing that the occasion of graduation comes with many responsibilities before-hand to reach that ending result, it makes sense that, â€Å"the more serious the occasion the more preparation is required and the more responsibility you have for the occasion, the more preparation is required† (Byrd, 2010). Graduate Level Different from Other Forms of Writing A good source of responsibility to prepare for is academic writing. At a graduate level writing is different because there is a quality and integrity standard and a larger reading audience. As a graduate student writing is a main proponent to academic responsibility, preparedness, and success and it is important to remain authentic in writing style. Authenticity, in writing allows the writer to express a topic creatively and with integrity. But this comes with the challenge of knowing personal strengths and weaknesses when writing. Strengths and Weaknesses of Graduate Level Writing Weaknesses can include poor time management, being ill-prepared, misunderstandings of material and format, stressors in life, and laziness. While strengths can be researching, the codes and rules of proper American Psychological Association (APA) format, citations, and references. Characteristics of Graduate Level Writing When writing at a graduate level the responsibility of integrity should be at the highest priority. By knowing when writing, what part of the subject is common knowledge and what is deemed a major offense called plagiarism. Plagiarism is described in Merriam-Webster Online Dictionary as the adoption of another’s ideas, works, or words without well deserved credit being given (2012). Using someone else’s words or ideas and not giving due credit is a major infraction that a lot of students resort to whether intentionally or ignorantly. Plagiarism is usually due to poor time management or simple laziness. The suggested format style is American Psychological Association style or better known as APA. Using the APA style includes New Times Roman font, 1 inch margins, double spacing, title page, running head, citations, and references to name a few (APA, 2010). Common knowledge is also often a part of graduate level writing and it is based on how many individuals would know a certain subject to be matter of fact (Purdue University Online, 2007). Being that the core to academic writing is to be authentic and to use integrity, applying APA format to writing is an efficient way to avoid plagiarism and gives freedom to write creativity and honestly and helps eliminate undue stressors. Balancing and Managing Time and Stress Time management is another great way to prepare and get rid of undue stressors that can lead to major offenses such as plagiarism. Procrastination is often a huge problem as a student. Procrastination is an area that shows poor time management and poor time management often leads to stress because things are not done in a timely manner (Scott, 2011). Great ways to manage time for projects or events that come up is to get organized and try to stay that way, building a routine, practicing or forming a good time managing habits, prioritizing by making a to-do list, and having a schedule or a personal planner (Scott, 2011). Having a balance in life is  also a great way to manage time and reduce stress. Balancing exercise and eating better into the daily planner are great choices to make because eating better and exercise aid in thinking clearer which can help you make better choices (Scott, 2011). Another part of balancing is knowing how and when to relax. Breathing exercises, working out, hobbies and interests, or just a quiet setting can promote wellness and relive stress leading to managing life with balance and fulfillment (Scott, 2011). In conclusion, areas of academic writing at a graduate level, time management, how to deal with stress and balancing life academically and personally can be challenging and intimidating at times. So many things can come to mind negatively when accomplishing goals, being responsible, and preparing for a future that cannot be seen yet. A wonderful quote letting an individual know who is holding back the steps to a better future is written by Marianne Williamson (1992) that states, â€Å"Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frightens us. We ask ourselves, who am I to be brilliant, gorgeous, talented, fabulous? Actually, who are you not to be? You are a child of God. Your playing small does not serve the world. There is nothing enlightened about shrinking so that other people won’t feel insecure around you. We are all meant to shine, as children do. We were born to make manifest the glory of God that is within us. It’s not just in some of us; it’s in everyone. And as we let our own light shine, we unconsciously give other people permission to do the same. As we are liberated from our own fear, our presence automatically liberates others† (Pgs. 190-191). Being responsible, preparing and adjusting to the demands of a graduate student is inevitable and making the adjustments as a student and knowing what is expected is all part of the journey. References American Psychological Association. (2010). Publication Manual of the American Psychological Association (6th ed.). Washington, DC: Author. Byrd, J. R. (2010). Preparation is Easier Than Being Unprepared. Retrieved July 6, 2014 from http://ezinearticles.com/?Preparation-is-Easier-Than-Being-Unprepared&id=4494958 Merriam-Webster Online Dictionary. (2012). Retrieved July 6, 2014 from

The Low-cost Orange Flying Machine: The Case of easyJet Essay

The colour orange is increasingly becoming synonymous with the firm easyJet as it has become one of the world’s most profitable low-cost airlines (Alamdari and Fagan, 2005). This paper examines the basis of their success and argues firstly, that easyJet from its inception essentially adopted and stayed with the original low-cost model that was pioneered by Southwest airlines in the USA. Moreover, this is a model that has served them well, resulting in sustained business performance and growth over a decade. However, our second point is that with this growth, and increased competition, there are signs of the need for a change. Accordingly, in what follows, we examine in turn: the historical origins of easyJet, emphasizing its values and the influence of the Southwest airlines model; the essential features of its business model; and some indication of its business performance over time. Historical Origins: Personality, Values and the Southwest Way EasyJet was conceived in 1995, with its first flight occurring in November of that year. There are numerous descriptions of the early start-up days, but one of the most vivid is surely the following (Calder 2006: 113): The entrance to the average airline’s headquarters is an impressive affair, intended to impress visitors. But the HQ of Britain’s most successful low-cost airline is far from average. For a while, the modest foyer of easyland – the huddle of temporary buildings from which one of Europe’s leading airlines is run – was adorned by a tent. It was a small, two-person job, strung from the roof†¦ Take one shipping millionaire, two Boeing 737s normally used for British Airways flights and several dozen gallons of orange paint, and you have a revolution in the skies. But industry watchers like myself were slow to realise the scale of the upheaval signified by the first flight of easyJet. The picture conveyed above stands in marked contrast to the subsequent growth and current performance of easyJet. Indeed as we were preparing the first draft of this paper easyJet announced that pre-tax profits were up by 55 percent to a record  £129 million in the year to September 2006. Turnover was up 21 percent, passenger numbers by 11.5 percent (to 33 million), the share price hit an all time high, and 52 new Airbus jets were to be ordered (Financial Times 2006). The contents of Figure 1 below lists some of the key milestones in the evolution of easyJet. Much of the early discussion of easyJet pivoted around its founder, Stelios Hajin Ioaanou (‘Stelios’). His personality, background, ‘entrepreneurial approach’ (Rae 2001) and ‘managerial style’ were all much discussed: the ‘no frills’ working environment (e.g. no private offices) and the ‘orange culture’ (i.e. ‘being up for it’; ‘passionate’ and ‘shar’p) were held to be important legacies following his stepping down as Chairman in 2002. In what was initially seen as very much a ‘personality-driven’ organization it is important to emphasise the place and role of Southwest airlines in influencing the personality of the Chairman. As one study stated: ‘It was not until he flew on Southwest airlines that Stelios felt he had found the right concept for a European airline. Stelios intensively researched Southwest, meeting with founder and CEO Herb Kellacher and buying 250 copies of Nuts – a book documenting Southwest’s success – for distribution to potential employees and customers. (Sull 1999: 22) Southwest airlines is very much an organization in which a high level of ‘selective perception’ is apparent among observers and emulators; you can see what you want to see in it (Pate and Beaumont 2006) To easyJet the key message received, accepted and followed faithfully, was to adopt and stick to the original low-cost model pioneered by Southwest. The Basic Low-Cost Business Model The key features of this model are outlined below in Figure 2 below. Product Features 1. Fares/ network Low, simple and unrestricted fares, high frequencies, point to point, no interlining 2. Distribution Travel agents and call centres (today internet sales), ticketless 3. Inflight Single class, high density seating, no meals or free alcoholic drinks, snacks and light beverages for purchase, no seat assignment Operating Features 1. Fleet Single type, Boeing 737, high utilisation, 11-12 hours per day 2. Airport Secondary or uncongested, 20—30 minute turnarounds 3. Sector length Short, average 400 nautical miles 4. Staff Competitive wages, profit sharing, high productivity (Source: Alamdari and Fagan 2005: 378) Figure 2: The original Southwest Airlines low-cost business model Indeed, if anything easyJet appears to have achieved further leverage along the ‘no frills’ dimension of this basic model: travel agents were completely avoided (direct sales only) and passengers had to pay even for soft drinks and snacks (Sull 1999, 23). Such features of the easyJet low-cost model were held to be acceptable, or indeed attractive, to ‘people who pay for travel from their own pockets’ (Sull 1999:23). Specifically easyJet targeted three cost-conscious and price-sensitive customer segments: (1) the traveller visiting relatives; (2) leisure travellers working brief trips; and (3) entrepreneurs and managers from small firms. At this stage we need briefly to comment on staff conditions (competitive wages, profit sharing, high productivity) in Figure 2. First, in a general sense, it is remarkable how little human resources and staffing matters figure in discussions of the easyJet strategy (Sull 1999; Jones, 2005); they are essentially conspicuous in their absence. Secondly, if one turns to more specific matters there are grounds to question the reality of the staffing approach in Figure 2. For example, on the competitive salary front, it has been estimated that pilots at easyJet earn around 25% less than pilots working for traditional carriers (Jones 2005: 151). This differential was a considerable source of tension and difficulty when easyJet took over the airline GO in August, 2002, with calls for strike action occurring at the time (Jones 2005:91). In the latter part of this paper we turn to look at these sorts of human resources and employment related matters in more detail. The Basic Business Model and the Bottom Line Earlier we made reference to the impressive performance figures of easyJet for the year to September 2006. This has not been an isolated success story. For example, easyJet pre-tax profit figures rose from  £5.9 million in 1998 to  £40 million in 2001, and now to the current all time high of  £129 million. At least one major study has attributed this success to easyJet sticking very closely to the original features of the low-cost model outlined in Figure 2. In essence this research (Alamdari and Fagan 2005), which involved 10 low-cost carriers in Europe and the USA, reported that, firstly, easyJet adhered very closely (74% compatible) to the original model, a figure only exceeded by that for Ryanair (85%) (Alamdari and Fagan 2005: 388). Moreover their second key result was that the closer one adhered to this model, the higher was profitability. The success of easyJet (and Ryanair) in this regard has been noted in other studies. For instance, the McKinsey Quarterly (2005) reported that easyJet and Ryanair account for about 50 percent of seat capacity in Europe’s low-cost market, with between 2004 and 2006 only easyJet (8.9%) and Ryanair (29.4%) having positive average operation margins. Although both easyJet and Ryanair are always hailed as the two financial success stories of the European low-cost sector, with both adhering most closely to the original low-cost model (Figure 2), it is important to recognise important differences between them. For example, easyJet’s unit costs are reported to be double those of Ryanair, with the former break-even point (76% of capacity) being higher than that of Ryanair (63%) (McKinsey Quarterly 2005). Other differences between the two, which have been noted, are that easyJet has more head –to-head competition with the conventional carriers because it uses more established airports than Ryanair (Jones 2005: 211). Much of the bottom line success of easyJet has been attributed to its yield management system which seeks to extract the maximum revenue per flight (Jones 2005: 212). It is these sorts of sentiments which underpin their micro-type targets. For example, the aim is to grow the current profit per seat figure of some  £2.50 to  £5 by the end of 2008. Are there Signs of Changes in easyJet’s Business Strategy? Current profits are good and the emphasis on yield measurement and tough targets will still remain. This said, there are signs of some actual or proposed changes in the business model. These have arisen because of the rise of new low-cost competition, changes in the conventional carriers (limited frills), and external pressures such as oil price rise. The changes are designed to address some concerns of existing customer segments and to attract new customers. For example, in April 2003 easyJet launched a dedicated website for business travel arrangements which allows corporate customers to access monthly management information so that they can track travel spend. In June 2005 it introduced easyJet lounges, which passengers had to pay for, but which were viewed as attractive to business travellers. Figures released in The Times (11th November, 2006) suggest that they have been relatively successful in capturing the business market: Stansted and Luton (easyJet’s London bases) have the highest proportion of frequent flyers among major airports at over 50 percent as compared to 39 percent of passengers at Heathrow. Measures have also been taken in recent years to address customer concerns regarding the lack of clarity of the full fare until the last stage of booking, through an upgraded software system. A key question remains; can easyJet consistently capture the business traveller sector, with their considerable expectations of ‘added extras’ while remaining true to their winning formula of cost leadership? Only time will tell. References Alamdari, F. and Fagan, S. (2005) Impact of the adherence to the original low-cost model on profitability of low-cost airlines, Transport Reviews 25, 3: 377-392. Calder, S. (2006) No Frills. London: Virgin Books. Financial Times (2006) 15th November, p24. Jones, L. (2005) easyJet, the Story of Britain’s Biggest Low-Cost Airline. London: Aurum. McKinsey Quarterly (2005) August edition. Pate, J. and Beaumont, P. (2006) The European low-cost airline industry: the interplay of business strategy and human resources, European Management Journal 24, 5: 322-329. Rae, D. (2001) easyJet: a case of entrepreneurial management, Strategic Change 10, 6: 325-336. Sull, D. (1999) easyJet’s $500 Million Gamble, European Management Journal 17, 1: 20-38. The Times (2006), 11th and 15th November. View as multi-pages