McDonald Essay Example | Topics and Well Written Essays - 250 words

McDonald - Essay Example Recent statistics shows that McDonald’s operates 31,000 restaurants in 119 different countries (Kroc 23). Additionally, the corporation also operates several other restaurant brands like the Piles Cafà © and Donatos Pizza. Some of the countries that have the McDonald’s food store include Singapore, Malaysia, India and most of the states in the United States and Europe (Kroc 29). McDonald has maintained its vigorous advertising campaign for several decades. They usually use the radio, social networks, billboards, newspapers, television and the internet to advertise their products. Through these advertising schemes, McDonald’s has significantly augmented its market. Until recently, McDonald’s has used up to 23 different slogans to advertise its products in different regions and countries. One of the interesting ads by McDonald’s is the ad concerning Rock and Fries. The ad portrays the McDonald emblem using a human hand. Such an advertising strategy has touched me and many others, and it proves that there is a proper marketing integration because McDonald has augmented its market (Kroc 34). The company is considered as one of the most vigorous fast food

“the Effectiveness of Teaching Moral Values to Elementary Essay Example for Free

â€Å"the Effectiveness of Teaching Moral Values to Elementary Essay ABSTRACT Nowadays, we need the improvement in intensity and quality of character building implementation in formal educational institution. This claim is based on the growing social phenomenon, namely the increasing juvenile delinquency in society, such as brawl and various other cases of moral decadence. These phenomena are obviously not expected to happen in our society. Therefore, the formal education institutions which are functioned to create the younger generation is expected to increase its role in the formation of personality of students through increased intensity and quality of character education. Since the reformation of our national curriculum, we have been developing new methods in building the students’ character, which we know better in schools as character education. It has been applied to the national curriculum method which turns around developing â€Å"good character† in students by practicing and teaching moral values and life skill. Moral values and life skill can be taught in a fun way using the media such as music, specifically songs which has a good moral values and life skill. This paper reports the effectiveness of using character development songs in teaching moral values and life skill in SDN Adiarsa III Karawang. The samples taken will be only the 6th grade students. Data are collected through interview and classroom activity. The study reveals that the effectiveness of using character development songs in teaching moral values is unexpectedly successful, though there are some difficulties in organizing the 6th grade class which are great in number. This study is expected to give contribution to those who are planning to conduct a research on character building in English Language Teaching (ELT). Research Question 1)How can songs as a media in CTL of ELT be implemented in teaching moral values? 2)The students’ response to the use of character building songs in CTL of ELT to teach moral values to the 6th Grade students in SDN Adiarsa III Karawang. Background Nowadays, the need of improvement in intensity and quality character ducation implementation in formal educational institutions is increasing. This idea is based on the growing social phenomenon, namely the increasing juvenile delinquency in society, such as a mass brawl and various other cases of moral decadences. These phenomena are obviously not expected to happen in our society. Therefore, the formal education institutions which are functioned to create the younger generation is expected to increase its role in the formation of personality of students through incre ased intensity and quality of character education. Before we discuss further about the need of character education nowadays, it is better to know the definition of character itself. The Sage’s English Dictionary and Thesaurus defines character as â€Å"the inherent complex of attributes that determines a person’s moral and ethical actions and reactions†. American Dictionary of the English Language defines character to be â€Å"the stable and distinctive qualities built into an individual’s life which determine his or her response regardless of circumstances†. Abraham Lincoln once said that, â€Å"Reputation is the shadow. Character is the tree. † Our character is not just what we try to display for others to see, it is who we are even when no one is watching. Good character is doing the right thing because it is right to do what is right. Nancy A. Wood (2008) defines character as an evaluation of a particular individuals moral qualities. It can also imply a variety of attributes including the existence of lack of virtues such as integrity, courage, fortitude, honesty and loyalty, or of good behaviors or habits. When someone is a moral character, it is primarily referring to the assemblage of qualities that distinguish one individual from another. Character building is the way to strengthen one’s character by molds oneself into a productive person within one’s sphere of influence. Developing such personal qualities seems as a purpose of education. Character building in school, we call this term as character education, is applied to the national curriculum method that turns around developing â€Å"good character† in students by practicing and teaching moral values and decision making. On the other word, character education is an investment system of the character values to the citizens of schools that include components of knowledge, awareness or volition, and actions to implement those values (Bila Nastiti, 2010). As Theodore Roosevelt expresses that to educate a person in mind and not in morals is to educate a menace society. His statement implies that if we want to make students good at not only cognitive aspect but also have a competent in moral aspect, we should educate them in a pleasurable condition. Songs are one of a pleasurable media to teach moral values in English subject. English teachers can use songs as part of their classroom teaching repertoire. Larry M. Lynch (2010), states that songs contain authentic language, is easily obtainable, provide vocabulary, grammar and cultural aspects and are fun for the students, especially to Elementary students. The 6th grade elementary students somehow will enter Junior High School later. This is a stage of adolescence for them. According to Ghifari (2004), adolescence is a group of people who are leaving childhood full of childhood dependency and towards the establishment of responsibility. Therefore, teaching moral values through education is important to be implemented in early education, as well as an early preparation for them to face their adolescence later. This research titled â€Å"The Students’ Response to the Use of English Character Building Songs in CTL of ELT to Teach Moral Values to the 6th Grade Students in SDN Adiarsa III Karawang†, is carried out to see how the students response to the implementation of using character building songs in teaching moral values to them. In order to accomplish this purpose, the writer conducts a teaching simulation of Contextual Teaching and Learning (CTL) using songs as a media in English Language Teaching (ELT) and wrote their responses through interview to conclude how the students response. The writer also purposes to see how songs as one of a pleasurable media, can be implemented to teach moral values to the young learners, specifically to the 6th grade elementary students.

Impact of Digital Marketing on Food Service Industry Essay -- Digital

Statement of the Problem In the contemporary world, every type of business is going digital. Manufacturers, retail stores, and restaurants, to name just a few, are realizing unimaginable profit margins due to incorporating modern technology in their marketing strategies. Entrance of digital media and real-time marketing into the scene has resulted in a significant improvement in the traditional ways of marketing and carrying out business. Dissemination of information and media has been highly revolutionized. However, there is limited research related to real-time marketing especially as it concerns the service industry. Digital media have proved to be very efficient in their degree of reliability and fast data transmission. This has led to a major boosts in the connectivity and communication of restaurant businesses with their customers. In restaurants, there exists a very close relationship between the attendants and the customer. With such attributive aspect, good customer-producer relations can be built comprehensively through digital media. This study will help justify the past research work and will also seek to unravel the mystery of the impact of technological marketing approaches on the discovery and progress of food and restaurant services enterprises. Background The internet is the biggest digital networking tool. The internet offers a number of platforms for digital marketing. Many electronic communication tools offer access to the internet. Personal computers, mobile phones, smart phones, tablets, and various other electronic products offer access to the internet. Over the internet, platforms such as websites, emails, applications (classic and mobile) and social networks are essential for marketing (Hutley,... ... of current research (Belch & Belch, 2001). References Ashcroft, L., and Hoey, C. (January 15, 2001). PR, marketing and the Internet: implications for information professionals. Library Management, 22, 68-74. Belch, G. E., & Belch, M. A. (2001). Advertising and promotion: An integrated marketing communications perspective. Boston, Mass: Irwin/McGraw-Hill. Hutley R. (2009). Social Networking as a Business Tool. Cisco Internet Business Solutions Joint Research Center Technical Reports (2008). Social Computing: Study on Use and Impact of Kotler, P., & Armstrong, G. (2005). Principles of marketing. Englewood Cliffs, N.J: Prentice Tamburrini, G. and Zhang, W (2014) Entrepreneurship in Time of Crisis: The Outsourcing of Services through Franchise Arrangements in the Italian Food Service Industry. Journal of Food service Business Research, 17(1), 28-47.

Microsoft Csr

â€Å"Technology creates opportunities for people and organizations to realize their full potential† is the thought driving Microsoft’s corporate citizenship program. With the enduring commitment to serve needs of communities worldwide Microsoft is playing the role of a responsible global citizen. Going far beyond its products and services it has collaborated with business partners, governments and non profit organizations around the globe to fulfil its commitment. It delivers new technology to people and organizations to unleash their creativity, productivity and opportunity across borders.In today’s world there is no scarcity of opportunities yet there is a growing divide between young people who have the chance to succeed owing to their enhanced skills and those who don’t. In response to this divide Microsoft has targeted its corporate citizenship program particularly towards youth empowerment. Microsoft YouthSpark is a youth empowerment initiative that connects millions of youth the world over and provides them with opportunities for education, employment and entrepreneurship.It brought together more than 350,000 students from more than 260 regions and countries to participate in the 2012 Imagine Cup—the world’s largest student technology competition. In the auspicious event students from different parts of the world and cultures use their skills to solve world’s most challenging problems. Such competitions are great motivators for youth as it provides them with a platform to showcase their talent across borders and to explore and enhance global opportunities.Microsoft has provided students free access to state-of-art technology facilities at more than 90 Microsoft innovation centres in 44 countries to accelerate their career opportunities. It has also provided innovative designer and web developer tools to students and teachers around the globe under the Microsoft Dreamspark initiative. Most of the companyâ €™s donations are targeted towards Non-profit organizations addressing the need of youth skill development. Also, through Microsoft BizSpark the company is helping young entrepreneurs launch new businesses by providing access to software development tools, industry connections, and investors.Empowering non profits: It goes without saying that the biggest problem a non-profit organization faces is raising funds for the upgrade and betterment of its core processes. â€Å"Nonprofits need powerful tools to transform passion into progress. Modern productivity, communication, and collaboration solutions help people drive social change where it’s needed most. † says Kurt DelBene, President, Microsoft Office Division. Through its technology for good program Microsoft is helping 62,000 non profit organizations around the globe to get affordable access to technology for serving communities with a greater zeal.Some activities under the initiative were donating hardware and so ftware to non profit organizations and providing them with refurbished laptops at relatively cheaper rates. Microsoft also collaborates with nonprofits for hosting more than 100 NGO Connection Days and in educating NGO staff on how to get the most value from donated software via webinars. Other than the above mentioned points Microsoft also provides technological process solutions to the non profits so that they can reach out to the people in need efficiently and effectively.Microsoft’s Employee giving program: Employees are the heart of any organization and the initiatives taken by them are prone to be embedded in the core of the organizational culture . The Microsoft’s employee giving program is a campaign by which employees devote their time and money as a service to the communities. Since its inception in 1983 the company has raised nearly $ 1 billion as donations. On 18th Oct, Microsoft CEO Steve Ballmer and Chairman and Founder Bill Gates commemorated Microsoftâ €™s 30th Employee Giving Campaign during a special town hall event where the congratulated the employees for their efforts.In FY12 the employees gave nearly $100 million with a volunteering percentage of 65%. The company Encourages employee giving and volunteering by offering company matching contributions for US employees up to $12,000 for total time and cash donations. It gives employees at least three days off from their office work if they want to volunteer outside the United States. The volunteering percentage has increased 12. 5% year over year and more than 12000 employees and 2,000 non-profits have been registered on Volunteer Manager, Microsoft’s opportunity matching system for bringing needs and skills together.The organization motivates volunteering through the Give SharePoint site, where employees can share experiences and opportunities with the rest of the Microsoft community. Beyond direct service to the community, Microsoft has made significant strides in t he areas of human rights and environmental sustainability. It consulted with businesses, government and other key stakeholders to develop a human rights statement that brings together long-standing policies on issues such as privacy, security, free expression and labour rights.It exceeded its goal to cut carbon emissions by 30 percent compared with 2007, due in part to the 1. 1 billion kilowatt hours of green power it purchased, the third most of any US company. Its endorsement of the United Nations Global Compact drives Microsoft to continually improve its business practices and increase its accountability. â€Å"Stick to your core competenciesâ€Å"– the famous business jargon is what Microsoft is incorporating in its pursuit of becoming a world leader in Corporate citizenship.

Importance of consumer centric approach marketing Essay

           A consumer centric approach is a method in marketing that focuses on the needs and wants of an individual consumer (Kaufmann & Mohammed 302). The approach does not deal with customers like the mass market. It makes constant interaction with the customers. This is done so as to get information that makes a business understand what are customers’ expectations, perceptions and desires. By acquiring all the necessary information the business is able to design new and best strategies to increase its loyalty in the services and products. The businesses also use this approach to increase the customer’s satisfaction. The customer centric is like focusing on what the customers’ value in life. After finding that value is when the business can dedicate its efforts on a particular high value customer segment. Internal and external factors associated with consumer-centric             According to Jham & Puri (3) there are internal and external factors that affect the consumer- centric method from identifying the customers’ behavior. They make it difficult for a business and its consumer to have an interaction. The external factors are the environmental influences and the internal factors are the individual differences. The external factors such as social class, personal influence, attitudes and family: complicate the consumer’s decisions (Jham & Puri 3). The internal factors include; motivation knowledge, personality, attitudes, lifestyle, consumers’ resources and values. They also affect the consumer’s decisions. The consumer resource as part of internal factors; reflects on time and money. It is difficult to establish an interaction with the consumer if he or she is not financially stable. The most crucial factor is behavior. Most of the customer’s can buy the product out of convenience not because they bel ieve in the brand. Why do we need to focus on consumers?            The customers are very important in a business. They are the ones who determine the success of any organization. When an organization focus on consumer satisfaction; it becomes easy to find some metric that it can use to improve its business. However, it also becomes easy to manage the selling of the products and services. Concentrating on consumers has advantages to the business. It helps the business identify the consumer’s loyalty (Beard 1). The consumers’ acts like advocates in a business. They can help the business grow. A satisfied customer is able to share with others the goodness of the product or a service. This help increase the rate of consumers in a certain business. They are like small marketers or â€Å"evangelists.† Unhappy customer results to a risk of losing many consumers in the business. This is because of the negative word of mouth.               Concentrating on consumer help bring differentiation (Beard 1). A market is a competitive place that every business fights to get more customers. In order to succeed in this kind of environment one need to focus customer satisfaction. The customer can only choose to associate with the business that satisfies them. They find that kind of businesses unique and different from others. Customer satisfaction reduces Churning. Poor services make customers want to experience products from the competitors. A certified customer does not find it necessary to experience the quality of other products. In a business, it is very expensive and difficult to acquire new customers. The organization may spend resources on marketing and adverts so as to acquire more customers. The best option to avoid these circumstances is by retaining customers through satisfaction. It is the only way for a business to succeed. Consumer-centric in companies          Customer centric marketing is used by many companies in the world today. The companies that use this approach become knowledgeable on ways to enhance their products and services. However, the consumer-centric companies have more qualities compared to others. They are accessible. The customers find it easy to connect with them. They are responsive. They are able to reach out to their customers by different channels and respond to their suggestions and needs. Customer centric marketing (CRM) has been upgraded into eCRM in many companies (Kaufmann & Mohammed 302). The advances in the technology have changed the way consumers such for information of the products they need. The old CRM did not satisfy the needs of all consumers.             With the help of the new technology both eCRM with traditional CRM are now used by companies to enhance consumer quality service standards. The eCRM is a new tool being used by many companies to enhance their marketing skills. This is because it allows transferring of information across channels through the data driven tools. The companies that use eCRM are able to increase consumer satisfaction, their services and loyalty. However, some of them have increased online sell through this new technology. Customer centric companies have large market share compared to others. This is because they are able to reach out the market through â€Å"customer satisfaction.† This is very important thing. Other companies that do not have CRM have small market share. The business can only have a large market share by being the heart of the consumers. Concept of relationship marketing in consumer-centric approach            Relationship marketing is a concept in the business related to Consumer-centric marketing. Its main agenda is to achieve the consumer’s loyalty. The approach makes sure the businesses have interaction and long term engagement with the consumers (Learning business 1). The approach allows open communication with customers and gives them information suited for their needs. It makes the business develop an emotional connection or relationship with the customer. This approach is same as the consumer-centric. It deals with loyalty and developing a good interaction with the consumers. It has the same agenda of satisfying consumers. The methods used in relationship marketing apply in CRM. They use methods such as; marketing campaigns. This can be used by the CRM to promote organizations, the products, special offers and the brand.             Methods such as competitive prices, excellent customer services and quality products are essential in providing a good relationship with the customers (Learning marketing 1). They lead to best buyer- consumer relationship. They are the best methods of retaining customers in a business. However, the relationship marketing monitoring methods used to ensure customer satisfaction are appropriate for CRM. Personal interview by use of questionnaires or phone calls is best to find out consumers view regarding products and services. The mystery shoppers can also be applied. They include suggestion boxes, online surveys. Customer complaints and customers’ general comments are also important. They help business know where they stand in the market. The CRM help the business to come up with the best market segmentation. It is because they can know the needs of each individual in a certain area. The fit of marketing offering in consumer-centric approach             Marketing offering is appropriate when using the consumer- centric approach. It is because it deals with additional values to the customers (Hunt 1). In order to deliver values such as availability, technical support, convenient delivery or quality service; CRM is the right approach. It deals with maintaining a good relationship with the consumers. Adding the values to CRM helps the consumers be more loyal and trust the products or services. The offering marketing fits in the CRM because before it is carried out. The business needs to understand customers’ important factors. They help understand if the products are supportive or convenient. The convenience acts like a differentiator between the values offered to that of the competitors. The offerings are determinants whether the customer can buy from a certain company or not. They also involve the customer service similar to the CRM. If a business responds to the request of customers immediately; it gives t hem confidence. Conclusion               Customer- centric is a good approach for business. It enable establish a good relationship between the business and consumers. However, it responds to customers request which a very important aspect. Customer satisfaction is a very important thing. Consumers determine the growth of the business. They are advocates. A business that practices consumer satisfaction has a competitive differentiation. However they do not experience churning since their services and products are convincing than others. CRM is related to the relationship market. All this approaches are interested in customers’ loyalty. They are approaches that help the business acquire a large market share. Customers’ are always attracted with satisfaction than any other thing in the product or service. Reference Beard, R. Why customer satisfaction is very important (6 reasons). (2014). Retrieved on 27th February 2015. < http://blog.clientheartbeat.com/why-customer-satisfaction-is-important/> Hunt, Shelby D.  Marketing Theory: Foundations, Controversy, Strategy, Resource-Advantage Theory. Armonk, N.Y: M.E. Sharpe, 2010. Print. Jham, Vimi, and Sandeep Puri.  Cases on Consumer-Centric Marketing Management. Hershey, PA: Business Science Reference, 2014. Internet resource.Kaufmann, Hans R, and Mohammad F. A. K. Panni.  Customer-centric Marketing Strategies: Tools for Building Organizational Performance. Hershey, PA: Business Science Reference, 2013. Print. Learning marketing. (2014). Relationship marketing. Retrieved on 27th February 2015.< http://www.learnmarketing.net/relationshipmarketing.htm> Source document

Swisher Motor Case Analysis Essay Example

Swisher Motor Case Analysis Essay Example Swisher Motor Case Analysis Paper Swisher Motor Case Analysis Paper Essay Topic: Push Precious Wayne Swisher, President and Chief Executive Office of Swisher Mower and Machine Company (SMC), was weighing the proposal of a private branding arrangement for SMC’s line of riding mowers. He thought the inquiry presented an opportunity but details should be studied more closely. Situation Analysis: Company Background: Established in 1945 by Max Swisher, SMC grew steadily with unit volume for SMC riding mowers peaking at 10,000 units with sales of $2 million in 1966. In the 1990s, the unit volume remained constant with around 4,250 riding mowers per year. Compared with 1,263,000 unit sales in riding mowers and tractors industry, SMC only occupied around 0. 3% market share. Max Swisher, the current CEO, thought maintaining a small company image had also been an important aspect of his business philosophy, which led to the good personal relationships with dealers and customers alike. SMC produced limited but differentiated products. SMC’s flagship product, the Ride King, was credited with the first zero-turning-radius riding mower. SMC also produced a trail-mower called T-44 with a cutting width of 44 inches. Kits, the self-propelled push mower, accounted for 8. 2% of SMC’s total sales, though it did not provide a material contribution to the company’s gross profits. The replacement parts for mowers posed a good business for SMC, accounting for 20% of the total sales. The following table showed the detailed comparison of the percentage in total sales and total gross profits across different modes of mower together with replacement parts. 1995 dataRide KingT-44KitsReplacement Modes of MowerRiding MowerTrail-mowerPush mower/ % of total Sales63. 60%8. 20%8. 0%20% % of Gross Profits57. 80%13. 20%029% SMC planned to broaden SMC product line in 1996 by introducing a high-wheel string trimmer product, Trim-Max, a high-wheel, walk-behind product. With manufacturing plant in Warrensburg, Missouri, SMC owned an annual capacity of 10,000 riding mower units on a single 40-hour-per-week shift with distribution mainly in non-metropolitan areas. About 75% of sales of SMC were made in non-m etropolitan areas. SMC sold 30% through wholesalers, 25% through direct-to-dealer, 40% as private-label, and the rest 5% as exports. It sold the Ride King through wholesalers, who located throughout the country, focusing on farm dealers situated in the south central and southeastern US. SMC remained a profitable company since its founding with a net profit return on sales of 10 percent or more annually. The sound financial position minimized the need for any major short-term or long-term financing. Industry Backgrounds: Riding lawn mowers are classified as lawn and garden equipment with two basic configurations, the front-engine lawn tractors and rear engine riding mowers. However there are some mid-engine riding mowers on the market, such as those produced by SMC. Front-engine lawn tractors are the most popular design followed by rear-engine and mid-engine models. Rear engined lawn tractors are perceived as stronger and more durable. Competition in riding lawn mower market was fierce with ten manufacturers comprising major competitors in 1995, while SMC only occupied around 0. 3%, based on sales units. All these companies made Riding mowers under a nationally branded name and at the same time were engaged in private-label production. It was estimated that private-label mowers account for 65 to 75 percent of total industry sales. Each riding mower manufacturer priced its products at price points. The representative retail prices for national and private-label riding mowers typically ranged from $800 to $5,000. The manufacturer’s price of Ride King of SMC, $ 650, was quite comparative, compared with industry average. Sales trends of riding mowers were cyclical and highly seasonal. With slice decline of sales in 1991, projections for 1995 and 1996 point toward further increases in unit volume. Industry statistics show that over half of manufacturer shipments of these products occur in the four-month period from January to April. A SWOT Analysis on current situation of SMC: InternalStrengthsWeaknesses Producto Distinct products o High quality, simple design, ease-to-use and maintain, no significant claim o Interchangeable parts o Competitive priceo Limited range of products o Perception on rear and mid engine not as strong and durable as front-engine Managemento Customer-oriented Personal relationship with dealer, distributors and end-customers o CEO expertise in marketing, VP of Sales for 6 yearso One man makes all the decision o Small business mentality Marketingo Co-op advertising with its dealers o Good relationship with dealers and end-customerso Previously neglected consumer advertising o Insufficient attention for promotion and advertising campaign o No national distribution network RDo One new product on the way (Trim Max)o Not so aggressive Financeo Consistent net profit of approx. 10 percent o Adequate cash flow to finance operation o Minimize the need for short-term or long-term financingo Poor cost management o Possible liabilities – self-insurance of products External OpportunitiesThreats Market expansiono Limited market coverage (south central, southeastern). Potential expansion to the west o New target market include consumer housing, in addition to farms o Private labels business may be growingo Many big competitors like Honda, John Deere, American Yard Production etc with stronger financial resources and economic size of capacity Industry Outlooko Growing industrieso Cyclical industry o After next year, industry may be down Technologyo Possibility for automation by technology development in long term (production streamline, cost reduction)o Imitation is allowed as patent expired Problem Statement How to grow the business since sales plateau existed for almost 20 years despite continuous profits? This is what Wayne Swisher had been concerned for several years. In early 1996, Wayne Swisher received a certified letter from a major national retail merchandise chain, inquiring about a private branding arrangement for SMC’s line of riding mowers. Wayne had to decide whether or not to accept the proposal as well as the next step to grow SMC. The Private-label Proposal Contract: A 2-year contract which could be automatically extended on a year-to-year basis, with price and other terms negotiable then. Also can be terminated by any party with a 6-month notice. ? Product: Minor changes based on Ride King ? Order: An annual order of approximately 8,200 units, a sample order of 700 standard riding mower units to be delivered in Jan1997. ? Price: FOB; 5% discount on SMC’s manufacturer’s list price for its standard model; Reorders will be at the same price Marketing: SMC did not need to make any promotion effort to either the chain or the consumers. In addition, the private label relationship with the chain should be held confidential. ? Negotiable Inventory holding payment term: The chain would carry inventories in its regional warehouse. However, only until the mowers were shipped to a company store, or only when they had been in a regional warehouse for 2 months, would title be transferred and would the 45 da ys’ payment term start to take effect. Warranty: SMC’s standard warranty would be required for all mower parts. SMC was expected to bear any labor costs resulting from warranty work at $22 per hour. Replacement parts would be sold to the chain at present price point and shipped FOB factory. Proposal evaluation To facilitate our analysis with limited information, the following reasonable assumptions are taken: a) Unit sales without cannibalization, selling prices and costs (except the additional costs mentioned in the case) of Ride King would remain the level of 1995. b) Ignore the impact of decreasing unit fixed cost with expanded production volume. ) Recognize sales in late 1996, though the sample order of 700 was to be shipped and sales were to be recognized in 1997 d) Assume consistent cannibalization rate among two-year contract period (=300 cannibalized annually/8,200 annually) e) Average the one-time costs of $10000~12000, i. e. $11,000, and the costs are expense d when accepting the proposal. f) Assume SMC could well arrange production and avoid excess OT work for PL/Ride King over the minimum of 2100 units/year. g) Assume the new mowers under proposal (â€Å"PL†) occupied the same capacity as Ride King did. ) Assume after negotiation, title can be transferred upon shipment from SMC. Sales Analysis (Table A) Total Ride King Sales, both the original and those from Private Label proposal (â€Å"PL†), would be 4,874, 12,100 and 12,100 units for year 1996~1998 respectively, with net increase of 674, 7,900 and 7,900 after cannibalization. Financial Analysis ? Additional income per unit (Table B) * As stated in Assumption b), united fixed cost is overstated. Hence, gross profit of the proposal would be slightly higher. Hence, the proposal would bring an additional per unit income of $42. 5 (gross profit of 6. 5%) if within the 10,000 capacity with a single 40-hour-per-week shift and an additional income of $16. 25 (i. e. GP of 2. 5% ) if over capacity with overtime work. ? Capacity Analysis (Table C) Assume SMC could manage to arrange a smooth production without significant fluctuation to counter the seasonal delivery. Hence, production volume could be consistent with sales volume as shown in Table A. Hence, in 1996, as total production volume still under capacity, no overtime work for PL needed. While for both 1997 and 1998, 2,100 units of PL would be produced with overtime work. Incremental Income (Table D) Based on the assumption and calculation above, total incremental income can be derived as follows. The proposal would generate an extra net profit before tax for SMC of $11,098, $88,850 and $88,850 in year 1996, 1997 and 1998 respectively. On the base of year 1995, the sharp increase in sales by 178% would bring in a 21% increase in net profit before tax. Table D Ride King199619971998 Cannibalization loss Gross Profit per unit97. 5097. 5097. 50 Cannibalized volume-26-300-300 Cannibalization lost-2,535-29,2 50-29,250 Additional Income from PL Within capacity Volume7006,1006,100 Gross Profit per unit (see Table B)42. 2542. 2542. 25 Additional Income29,575257,725257,725 Over capacity Volume02,1002,100 Gross Profit per unit (see Table B)16. 2516. 2516. 25 Additional Income034,12534,125 Total Additional Income29,575291,850291,850 Incremental Income27,040262,600262,600 Additional Cost One-time cost-$11,000$0$0 **Additional Financial expenses For additional AR (ignore that of sample)$0-$57,929-$57,929 For additional Inventory (Average inventory of 2100units. )$0-$116,091-$116,091 Additional net profit before tax$16,040$88,580$88,580 1995199619971998 Additional net profit before tax $11,098$88,580$88,580 Net Profit$430,200$446,240$518,780$518,780 % increase in net profit 3. 73%20. 59%20. 59% Sales -Ride King $2,713,354$2,535,000$2,535,000 -PL $432,250$5,063,500$5,063,500 Sales$2,730,000$3,145,350$7,598,500$7,598,500 % increase in sales 15. 21%178. 33%178. 33% For detailed information on Additional Financial Expenses, please see the Table F as follows: (To simply analysis of AR financing cost, we ignore cannibalization of the sample order, and use the same selling price and payment term of PLs for the small quantity of cannibalized Ride King. Also, we ignore the inventory financing cost for 1996. ) ** Additional Financial Expenses 199619971998 Cost to finance additional AR Cannibalized Ride King-26-300-300 PL7008,2008,200 Net Additional Unit Sales 6747,9007,900 Net increase in Sales (@617. 5)$416,195$4,878,250$4,878,250 Impact on AR (45 days /360)$52,024$609,781$609,781 Cost to finance additional AR (@ 9. 5%)$4,942$57,929$57,929 Cost to finance additional Inventory Additional average inventory (assume nil for sample order)02,1002,100 Average unit cost [=((6100*(650-42. 25)+2100*(650-33. 5))/8200]$0$582$582 Average inventory cost$0$1,222,008$1,222,008 Cost to finance additional Inventory (@ 9. 5%)$0$116,091$116,091 ? Sensitivity Analysis: In order to gauge the risks associated with the terms and conditions of the proposal, SMC tried to analyze the sensitivity of the sales and profits to the changes of terms and conditions in payment terms, inventory costs, interest rates and cannibalization volume. To illustrate the point clearer, the breakeven point of each terms and condition is calculated with other situation held constant. SensitivityNo Additional Profit Payment terms -65% 114 days Extra holding inventory-131%3,700units Interest rate-196% 14. 3% Cannibalization volume -22%1,690units Because all these conditions above are unlikely to happen, SMC can be rather confident that the proposal is quite favorable in making profits. Evaluation of the proposal Just like a coin has two sides, the proposal also has pros and cons. SMC can benefit from the private label proposal from six aspects. SMC can enjoy the increase in sales and profits after accepting the proposal. The details can be seen in the following table: 19951996 Increase*1997Increase*1998Increase* Sales2,730,0003,145,60415. 22%7,598,500178. 33%7,598,500178. 33% Net Profits430,200446,2403. 73%518,78020. 59%518,78020. 59% * % increase versus those in 1995 If SMC accepted the proposal, its sales could rocket up almost 178% in 1997, compared to sales in 1995. It profits could be increased by 21% in 1997, compared to those in 1995. The proposal posed a good opportunity to SMC to increase sales and profits. SMC could also benefit from stable demands for its products in the next two years. The private proposal would offer stable orders to SMC. SMC could fully utilize its currently idle production capacity. Without acceptance of this private label proposal, the idle manufacturing capacity is 5,800 units per annum, more than 50% of total capacity. The high opportunity cost incurred could not be neglected. Furthermore, SMC could utilize this opportunity to make entry into the most important retail distribution channel: national retail merchandise chains, which currently accounts for 24% of the national market. Moreover, this proposal could provide an extra benefit of free test market! In fact, SMC remains a regional manufacturer of riding mowers for almost half a century. Its sales had plateaued for a decade while industry as a whole embraced record increase in recent years. SMC could take this precious chance to survey customer reaction across US to its unique mid-engine products with the help of the mass merchandise distributor’s strength of marketing without even using any of SMC’s scarce valuable marketing resources. Additionally, this new challenge would be a best learning opportunity for SMC when it operates on a scale twice the size of current operation. SMC could learn how to cope with the production within or even exceeding full capacity. For example, stretched manufacturing would lead to unprecedented pressure for purchasing department, warehouse management, logistics, etc. On the other hand, SMC should look at the other side of coin and analyze the cons of the private label proposal as well. Upon adopting the proposal, SMC would contribute more than 50% of its capacity for Ride King to one single private label mower production. Furthermore the improvement of SMC’s own brand could be limited by the remaining 42% production capacity. Limited capacity could hamper the introduction of new product, say missing the good timing, or could lead SMC to miss the good chance to grow current brand, say if demand for current brand increased. Other than capacity, the proposal also put pressure on SMC’s other resources, such as financial budget, labor, general management, etc. Private label production would consume a certain part of the limited and valuable corporate resources. Moreover, accepting proposal to manufacture private brand and distribute the private brand through other channels might lead to potential conflict with its traditional distributors. Although the chain’s outlets were located in metropolitan areas, there would be some overlap in trade areas with SMC’s current dealers. SMC, a small concern, relies heavily on its regional dealers to promote its products to consumers. Such a bold move might lead to certain percentage of independent dealers to drop the SMC line. The less profitable Private Label could cannibalize 300 units of the sales of more profitable Ride King annually in 1997 and 1998. What is more, the cannibalization rate could be higher than estimated 300 units a year. Additionally, SMC had to bear the risks ssociated with the private label plan. Accepting the proposal is confronted with two uncertainties. One is that the mower producer had committed two third of its current capacity to one single distributor. Once there was no renewal of the contract, it would be difficult to develop another comparable buyer. The other is that the contract would be terminated midway, i. e. one party is entitled to break the deal with a six-month notice beforehand at any time. Furthermore, although the total sales and output would expand almost twice, the increase in profits will not keep the same pace with the increase of the sales. Finally, SMC should consider other potential costs. For example, sudden expanded production might lead to quality insurance challenges. The product liability claims might eat up the minute increase in profit from the contract. Plus, the warranty costs would $22 per labor hour. Alternatives: ? Alternative 1: Accept the proposal and, in the long run, develop own brand based on the experiences of private label production: SMC should incorporate the consideration of the following elements when accepting the offer. Firstly, during negotiation with the mass distributor, SMC should try its best to make the contract terms more favorable. Albeit its bargaining power is somewhat limited, as a reliable provider of a highly differentiated mower product, SMC had some say o n the some part of the contract. To negotiate to transfer title upon shipment by SMC would be very reasonable and fair. Holding inventory of an average of 2,100 units in the chain’s regional warehouse under SMC’s title would be very unfavorable to SMC, given PL’s high average monthly inventory financing cost of ~$4. 61 per unit per month and even higher AR financing cost of ~$4. 9 per unit. Although SMC would not hold a big chance for this as in title transfer, still Wayne could try as 15-day could save SMC an AR financing cost of ~$19,310 a year. Secondly, in order to enhance its own brand and strengthen its own brand product, SMC should make this deal only as a short run option. Production of private label can only be regarded as a temporary way to improve SMC’s sales and profits, and is not a reliable one in the long run. To develop its core competency, SMC has to emphasize on improving its own brand image and establishing its own national distributio n channel. Further actions should be taken if SMC decides to accept the proposal: Aimprove its current product mix. In its four core products, Kits makes up to 8. 2% of its annual sales yet offer zero profits. With the coordination among its relevant functional area within the firm, SMC could gradually drop the whole product line of Kits if it could not improve its profitability. BHire more temporary labor to avoid excessive overtime work Since the firm scaled up its production, it should hire temporary labor with adequate training to ensure the on-time delivery and quality control. Excessive overworking for a long period might causes the decrease in both workers’ productivity and production quality. Of course, SMC should reach a good trade-off between the costs to hire extra hands and the improvement in productivity and quality. C Establish nationwide distribution network Unsatisfied being a regional riding mower provider, SMC should take the chance of free market test provided by the private label proposal to help establish its own national distribution network. Western part of United Sates poses great new chance for SMC. DDiversification of product lines It is important for SMC to build more consumers-oriented mower in addition to its current farm mower offering. For example, mowers used in cutting the grass in garden offer great potential for SMC since SMC are already quite specialized in movers used by farmers. The change in product orientation would help it to capture different market niche and widen its target customer base. ? Alternative 2: Reject the proposal and concentrate on the development of own brands: On the other hand, SMC should consider further actions to develop alternative strategies if it rejects the proposal to produce the private label. ALaunching of new product: Trim Max. If rejecting the offer, the company could put more of its limited resources to the launch of Trim Max as a strategic move, widening its product line of trail-movers under the Swisher name. But the firm will possibly be confronted with some uncertainties, such as poor sales of Trim Max. BImproving profitability of Kits or discontinue it Among SMC’s four core products, Kits makes up to 8. 2% of SMC’s annual sales yet offers zero profits. With better coordination among its relevant functional areas within the firm, SMC could examine closely the root causes of the unprofitability of Kits and try to eliminate the non-value added portion of the value chain. If SMC cannot improve Kits’ profitability at last, it should consider dropping the production of Kits at all. CEstablishing nationwide distribution network Upon rejection of the offer, in the long run, SMC should put its efforts on establishing national distribution network for its product mix, especially Trim Max, the new introduction to the market. As we mentioned earlier, the western part of United Sates is untouched yet. SMC could try to push the distribution channel toward the western part. DDiversifying product lines The advent of the new product, Trim Max, would no doubt improve the product diversification. Furthermore, SMC should expand the newly introduced products and reduce the reliance on its old flagship product, the Ride King, which was designed in the 1950s. EMore advertising Obviously, the introduction of the new product should be fully assisted by full-scale advertisements and vigorous promotions. SMC can promote its products in the current geographic scope of distribution channel to expand the sales. Furthermore, SMC could consider vigorously promoting its product to the untouched part, the western part of US, and help to set up the national distribution channels. Final decision: After delving into all the pros and cons of the two alternatives, Wayne believes that SMC should adopt this private label proposal with eyes on the long-term development of own brand. Major reasons: For SMC, the benefits are comprised of both direct and indirect contributions. Direct cost saving and profit generation, Aexcess capacity utilization The most important reason to accept this offering is that SMC can make a full use of its capacity and make more profit. As we have explored previously, SMC has around 60% of idle capacity which comprised a potential opportunity costs. In addition, analyzing from economics’ angle, we find that total fixed costs of SMC’ s products remain unchange d with the utilization of idle capacity. The additional revenue arising from the sales of private label may possibly increase profits in SMC. BProfitability In 1996, sales can increase by 15. 2% and net profits would boost by 3. 74% after accepting the proposal. In the next two years, the sales and net profits will be rocketed to 178. 3% and 20. 59%, respectively, comparing with those in 1995. Indirect benefits on regarding the production of private label as a stepping stone to promoting SMC’s own brand AAccumulation of profits to finance future development The increased profit aroused from the contract could be accumulated as retained earning to finance the company’s future expansion. This is especially true, when SMC is of such a small scale (market share is less than one percent). It would be quite difficult to fully expand after sales and profits had plateaued for more than a decade. At this stage, private label production could provide SMC with necessary profits, which could finance future development. BAccumulation of operational experience The firm can get much precious experience on operating business on a larger scale and in full capacity. The experience includes management, marketing, operation and technology experience. All of these experiences should be considered as a preparation for great leap in the future. One afternoon in early 1996, Wayne Swisher, satisfied with his analysis about the current and future development of SMC, was confident that SMC could both benefit from the private label proposal, the birds at hand, and stay in track with the long-term development of SMC’s own brand. The funds, raised by utilization of excess capacity and the production of private label, and the experiences learned from production in full capacity, could assist SWC to step further to fully develop its own brands in the long run.

The fall of the Wiemar Republic essays

The fall of the Wiemar Republic essays The Weimar republic was never without some weaknesses, in the early years the republic was marked by economic crisis in the shape of inflation and hyperinflation, which led to declining living standards and obliterated the small savings of many Germans, leading to resentment of the new political order from the very beginning. The second half of the 1920s is often seen as a period of prosperity for Weimar and good years for many Germans. A measure of relief from the burdens of the Versailles Treaty came in 1924 with the Dawes Plan (and furthermore, later with the Young Plan, 1929), which eased the rate at which Germans reparations were to be made and led to an influx of foreign capital, which greatly contributed to the prosperity of Germany during this period. The German industry was re-equipped and capital assets were rebuilt. This created more jobs and more homes than any time since 1914. However the Young plan was also the target of considerable hostility from the German right as they regarded it as capitulation to the Allies. Many Germans supported what the Government was doing at this time so they stopped listening to the extreme ideas of Nazis and Communists and voted instead for more moderate parties. As long as times were good for Germany, the extreme parties did badly in elections. This period between 1924-29 commonly became known as the Stresemann era- named after the dominant political figure of this time. However before his death Stresemann himself warned Germany not to take anything for granted as they were relying to heavily on foreign loans- Germany prospered only as long as the foreign aid flowed. He said: The economic position is only flourishing on the surface. Germany is in fact dancing on a volcano. If the short-term credits are called in, a large section of our economy would collapse. Stresemann was in fact correct in his prediction, with the Wall Street crash obliterating the German Bankin...