Brand management Essay Example | Topics and Well Written Essays - 2750 words

Brand management - Essay Example Specifically that brand aims at reaching out for the professional class, which can afford to purchase and maintain this brand of vehicle (Spiggle, Nguyen, & Caravella, 2012). The company has diversified its models to fit the various demands of their target customers by manufacturing small and bid body size cars, all body types. Apart from being a part top-class vehicle, Mercedes model is preferred for its safety features. Mercedes-Benz has invested a lot on the safety of their vehicles by considering its high quality brakes, stable body structure and installation with airbags for sensitive impacts. This makes it ideal for its target class, who consider safety as a priority while selecting a vehicle brand. The originality of the vehicle makes its one of the most unique automobile brands in the automobile industry. For instance, its body type is unique and different from that of competitor companies. As depicted in the company’s website, the model takes the body of a â€Å"chicken† that is complex to define and hence unique only to the company. Uniqueness is a feature that the upper-class associated with style and fashion of an automobile (Whitson, R 2013). This is the major reason why this brand has received a lot of favoritism from the professional class. Over 80% of the purchases of the Merc edes-Benz brand prefer it for its optimal fashion design. Quality is an important aspect of the Mercedes-Benz brand that makes its preferable by its target customers. Although its repair and maintenance are expensive, it does not demand for frequent repair and maintenance, hence giving a desirable service to its users. The physical appearance makes it a likeable brand. Mercedes-Benz has a shiny appearance that reflects its classy design and style which makes it admirable from a far. Technology is another important aspect of the brand that makes it a favorite for the youths in the middle. For instance the

Sociology of human rights - Explore and assess the challenges of Essay

Sociology of human rights - Explore and assess the challenges of cultural relativism and cultural imperialism in the context of - Essay Example However, such a deterministic view of universality is destined to be unsuccessful as it was in the case of development theory (Donnelly, 2007). According to Barr (2002), consequently, cultural relativists are often similarly deterministic, arguing the permanence and fixity of traditional culture. Specifically, in the aftermath of the Second World War, when human rights became a component of international affairs and political scheme as a result of the Holocaust, the universal human rights theory became ever more detached from its previous socioeconomic and cultural ties (Doebbler, 2004). Theorists such as John Rawls, Ronald Dworkin, and Maurice Cranston argue that political and civil rights are natural, and are privileges for everyone (Bruun & Jacobsen, 2000). However, these rights have been interpreted as theoretical legal rights, thus assigning a value to equality without thought on the required condition for the accessibility of such rights, either institutionally or concerning th e socioeconomic prerequisites (Brannigan, 2000) fundamental to their attainment. Moreover, social and economic privileges were discounted at some point in the Cold War period by political leaders and Western intellectuals as only a great deal of Soviet expression to fight the West’s stress on political and civil rights and individual liberties (Brannigan, 2000). Community, the heart of the argument of cultural relativists, was absent in the framework of universal human rights. The system of communism is frequently viewed as repressive and a defiance of genuine human nature (Hashimoto, 2004). In other words, it can be claimed that the advocates of universality have deconstructed political and civil rights, which are allowed to churn in their own dimension, as scholars discuss the details of their arguments (Hashimoto, 2004), which are frequently enveloped in moral principles. The objective of this essay is to review and discuss the debate on the universality of human rights. T he discussion will be composed of a comprehensive analysis of the arguments and danger of cultural relativism and cultural imperialism, specifically in the context of the Asian values debate. The Debate between Universalists and Relativists Basically, cultural relativists claim that basic values or rights are specific to a culture and that the collective, and not the individual, is the core social component (Pollis & Schwab, 2000). An individual’s identity is rigid, reliant on group membership, and the role and status of an individual in this community (Bruun & Jacobsen, 2000). A contemporary Western creation, the rhetoric of rights, is absent in most instances. Interpersonal ties are ruled by a mutuality of disproportionate duties and privileges, which are varied, similar to their core behavioral norms and values (Brannigan, 2000). Nevertheless, what is widespread is that concepts like legal equality, free will, or individualism are foreign, usually hollow notions. The indiv idual is included within the collective whose interests and security has dominance, though the specifics of what comprises the collective good differ (Bell, Nathan & Peleg, 2001). As stated by Sloane (2001), basic to the collective structure is a network of alternative cultural and/or philosophic ideals that furnish legality and authenticity to the social order. Developing Clifford Geertz’

The video game console wars Essay Example for Free

The video game console wars Essay 1. Compare and contrast Nintendo’s marketing strategy for the Wii with Sony’s strategy for PS3. By the end of 2006, two game console industry giants, Nintendo and Sony had launched their respective new products; the Wii and PS3. Various marketing strategies were implemented by both rivals and this writing attempt to analyse common and differing elements. Similarly, both companies had a product differentiation strategy, with the aim of being distinctly set apart from their competitors by the viewing market. However, different elements of this strategy were focused on by the firms. For instance, Nintendo differentiated via product form and design. Instead of the traditional controller where buttons are pressed, the Wii had a wireless motion-sensitive controller, which recognises the player’s arm movements. Thus, actions such as golfing, tennis and even dancing can be detected by the game. It is assumed that the rationale behind this is the fact that â€Å"new things and ways of doing things† always grab attention, whether good or bad. Thus, Nintendo’s aim would have been to gain the market’s attention and then convince them positively about the Wii. Conversely, Sony attempted to differentiate through performance quality. Heavy investment was made on a new processing chip and a laser diode, which would rev up the speed drastically and offer superior graphics quality. The video gaming industry prides itself on graphics; hence differentiating in this area may significantly increase demand. One believes however, that Nintendo’s product differentiation strategy had a stronger impact than Sony’s. This is because Sony followed the industry norm, of each new generation of machines being faster and more powerful than the preceding generation, as the case states. Thus, the market was already expecting the enhanced features, compared to the curiosity of a completely new game design by the Wii. With reference to the Ansoff Matrix framework, Nintendo implemented a marketing diversification strategy, whereby they offered a new product to new markets (in terms of untouched customer segments). Nintendo’s designers, according to the case, deliberately developed a machine that is simpler to use, since the complexity of current games appeal only to advance gamers. This thus, would allow market reach to a broader demographic of new segments, thereby beginning to challenge Sony’s market share dominance. For instance, males and female above and below the common age bracket of video game players may now demand the Wii. On the other hand, Sony implemented a product development strategy, by launching a new product in their existing market segment of customers, as the Ansoff theory advocates. Hence, Sony’s PS3 targeted their current customer segment for the PS2. A marketing strategy of Sony may have been to have first mover advantage, by launching in November 2006 in the United States before the Wii. Most studies indicate that the market pioneer gains the greatest advantage, however sometimes it can be risky and expensive. In Sony’s case, they would have easily been able to capitalise on the fans of the playstation and PS2 and new customers entering that market. Their downfall however was inadequate launch preparation and planning with regards to their diode technology, as mass production issues caused shortages. Thus, achieving the Christmas season’s full revenue potential was lost. Even though Nintendo was the second mover launching a month after in December, they had an international marketing launch strategy being executed. They made the Wii available in the United States, the Eurozone and United Kingdom. As a result, the benefits of being the first mover would have been gained in the Eurozone and United Kingdom. It is noted that Sony launched the PS3 four months after in Europe. Being the second to enter that market, Sony may have researched any problems Nintendo may have encountered and adjusted accordingly, for a smoother launch. Nintendo appears to have implemented a market-penetration pricing strategy. The Wii at a cost of $250 is 50% less than the 20-gigabyte PS3 (smaller hard drive machine). At this lower price, it is easier for the product to penetrate the market due to affordability in most segments. This aligns with the assumed company’s aim of maximising market share in the current and new segments. To achieve this, Nintendo ensured that the Wii was less costly to manufacture. Moreover, a higher sales volume may lead to lower unit costs and higher long run profits. Conversely, Sony is believed to have a market-skimming pricing strategy. The company invested $2 billion in technology, so this strategy aims at recovering the maximum amount of revenue to cover the high costs incurred in the early stages of the product life cycle. Additionally, Sony has a strong brand due to the success of their previous machines (PS2 and playstation) and the high price assists in communicating the image of a superior product with quality. 2. What is the key to the Wii’s popularity? The key facet responsible for the Wii’s popularity lies in the innovative design, which â€Å"calls to action† the player with physical movement. The writer views the wireless motion sensitive game console as a new, simple and fun method of gaming for all age groups. As a result, it may appeal not only to the traditional expert video game player like the PS3, but other individuals outside that segment. It thus makes marketing sense, if Nintendo promoted the game as a family requirement for cultivating an enjoyable, quality family time with members. It seems also a great game for various informal social events. Furthermore, since different types of games can be played, the Wii has the potential to appeal to a vast number of different market segments. For instance, The Wii Fit is an exercising game, where aerobics, yoga and other body strengthening activities can be done. Thus, the Wii Fit may have been positioned as a convenient way of losing or maintaining your weight, as it can be done in the comfort of one’s home and a more enjoyable method compared to simply following an instructor on a DVD. Likewise, sports fanatics may gravitate towards the Wii sports for the games of their interest. There also is the possibility of the Wii being used for rehabilitation after a stroke or injury, due to it body strengthen capabilities. It must be noted, that Nintendo’s international marketing strategy of launching in three distinct major areas, was a contributing factor towards the quick popularity gained. The areas were the United States, the Eurozone and the United Kingdom. This means that great strategic marketing focus had to be made on the different areas, to accommodate international cultural differences and legalities. As a result, Nintendo may have had to implement global product strategies for market adaptation in areas such as price, sales promotion, colours, labelling and advertising execution, to name a few. 3. Do you agree with Sony’s decision to incorporate a Blu-ray DVD player in the PS3. The writer agrees with the decision to incorporate a Blu-ray DVD player in the PS3. Firstly, Sony is considered one of the market leaders in the consumer electric industry; where the brand is known for high quality and advance technology. Since the consumer market started demanding more high definition TVs and viewing of DVD’s in high definition, it made good marketing sense to satisfy that need for high definition imagery in the video games, which ultimately reinforced the company’s brand. A â€Å"spin off† from this implementation of Blu-ray, is that the PS3 can actually be used by consumers to watch Blu-ray DVD movies, for those who may not own a Blu-ray DVD player. Thus, the value of the PS3 may increase, due to more product uses than the main function. Secondly, it was wise for Sony to include the Blu-ray DVD player in the PS3, due to their current product range developments. Sony had already launched the Blu-ray video format in their DVD players, thus the inclusion in the PS3 was a commendable and necessary marketing move, in order to keep as many products in the range up to date with the latest technological advancements. More importantly, this was a medium to push and promote the adoption of the Blu-ray in the market, reflecting strong strategic planning for profit maximisation. The draw back to the implementation however, was the issue of mass-production difficulties of the diode for the Blu-ray, resulting in shortages for the U. S holiday launch, as the case explains. Thus, it is assumed that there was a deficiency in proper operational planning and execution. This can be a critical concern with new product planning, since shortages can greatly impact forecasted revenue streams and significant opportunities may be lost. In Sony’s situation, the launch was around the Christmas season, where many PS3s may have been gift considerations and individuals generally spend more on commodities at this time, due to Christmas bonuses and advances. Thus, Sony would not have been able to capitalise on this, due to low supply of machines. In the final analysis however, if Sony had anticipated any production issues to cause marginal temporary shortages at the launch, one is of the opinion that this is not drastic a problem enough, to decide forgoing the implementation of the Blu-ray. This is because consideration is given to the return on investment with the Blu-ray inclusion and the technological drive in the industry at large. The Blu-ray would have generated greater demand than the HD-DVD and take longer to become obsolete, thus having an extended life-span. 4. Some industry observers have noted that the battle between HD-DVD and Blu-ray is reminiscent of the showdown between Beta and VHS videocassette formats in the 1970s. What was the outcome? The videocassette showdown between Beta and VHS in the 1970’s mainly was a clear example of â€Å"listening and responding† to what the market wants. It began when Sony produced Bata, a video standard which had a recording time of 60 minutes. Almost one year later, JVC launched the VHS, which is another video standard that had a recording time of 120 minutes. The two videocassettes were different in size and completely incompatible. The VHS was cheaper than Beta; however the longer the recording time resulted in a degraded quality of image. The market nevertheless, wanted a longer recording time, which allowed for longer movies and football matched to be recorded. Sony held their end for more years supplying the more upscale market with the 60 minute high quality videocassettes, but eventually in the mid 80’s they had to offer videocassettes with a longer recording time to remain competitive. By then however it was too late and VHS already held dominance in the market. VHS won the battle and in 2002 the last Beta machine was produced. Sony’s mistake was not listening to what the market wants and not willing to compromise the quality to satisfy the market. The battle between HD-DVD and Blu-ray is quite similar, however this time Sony is not the defender, but the challenger. To forecast who the winner may be, the same underlying factor exists, regarding listening to the market and responding. The case explains of the continuous electronic industry’s upgrade towards high definition TVs and DVD movies. Thus, one can assume that consumers want a player which provides the greatest quality of high definition. A common element between HD-DVD and Blu-ray is that they have 1080 lines of resolution (the highest quality video playback possible) on their widescreen HDTV set, as the case shows. Thus, consumers are going to look for other factors which can determine which player provides better quality. Firstly, the fact that Sony’s Blu-ray technology is incompatible with Toshiba (assuming other rival products as well) and can only be used on Sony products, signals that Sony is trying to maintain a type of niche market, which in essence aims at guaranteeing that using Blu-ray technology on Sony products will produce the best quality. This is similar to what Apple does with their range of products. Secondly, over the years Sony has positioned and built their brand to represent â€Å"high quality† and thus brand loyalty is strong among customers in the electronic industry. Lastly, price sends market signals and the common understanding is that high price tends to reflect high quality. The case states that Sony BDP-S1 and S300 cost $999. 99 and $600 respectively, compared to Toshiba’s models ranging from $399. 99 to $799. 99. Thus the higher price of Sony can be assumed to have better quality. Conclusively, HD-DVD and Blu-ray battle is almost mirrored in Beta and VHS rivalry. VHS won the battle since they satisfied the market’s demand for longer recording time with the videocassette. With HD-DVD and Blu-ray, the market is assumed to want high quality on their high definition widescreen HDTVs. The writer believes that Sony with their Blu-ray technology would win the battle, given that they can reflect a better level of quality over Toshiba, through â€Å"non-1080 lines of resolution† factors. CITATION Czinkota, Michael, and Ilkka Ronkainen. International Marketing . Thomson South-Western, 2007. Harvey, Nathan, and Louise Ada. 2012. Suitability of Nintendo Wii Balance Board for rehabilitation of standing after stroke. Physical Therapy Reviews 17, no. 5: 311-321 Kotler, Philip, and Kevin Keller. Marketing Management. Pearson Education Limited, 2012.

The Organisational Challenges Faced By Debenhams Commerce Essay

The Organisational Challenges Faced By Debenhams Commerce Essay The following report looks at an organisation (Debenhams) the authors employer, its profile, culture and how the current economic climate has affected its profile and culture What is an organisation? Organisations are social arrangements for achieving controlled performance in pursuit of collective goals, Buchanan and Huczynski (1997). The collective goals at Debenhams are aimed at, identifying, creating and maintaining satisfying relationships with customers resulting in value for both the customer and the organisation. Profile Debenhams Plc is a public limited company. Founded in 1778 as Flint Clark, Debenhams operated as an independent company until its hostile takeover by the Burton Group in the late 1980s. In 1998 Debenhams regained its independence when it was demerged from the Burton Group, which subsequently changed its name to Arcadia Group plc. The Groups principal activity is selling of fashion clothing and accessories, cosmetics and products for use in the home. It retails womenswear, menswear, homewares, health and beauty, accessories, lingerie and childrenswear. The Group trades from department stores and small store formats .Brands include Designers and Debenhams, including third-party brands. The Group has 161 department stores including 10 Desire by Debenhams stores, across the United Kingdom and Ireland with approximately 11 million square feet of trading space and around 27,000 employees. The Group has a portfolio of more than 55 own brands such as Debut, Maine New England, Red Herring and Thomas Nash including 25 Designers of Debenhams brands. Company brands account for about 70% of sales. Debenhams also offers a wedding gift service, in-store restaurants and cafes. The company has 51-plus international franchise stores in 19 countries including, Bahrain, Egypt, Indonesia, Malaysia, Saudi Arabia and Turkey and will soon be opening 8 in Denmark. Debenhams also extends its customer reach by making direct sales through its website. Debenhams is company that is registered and trades its shares on the London Stock Exchange (LSE). Its registered office is at: 1 Welbeck St London W1G 0AA United Kingdom The companys key people are the Chairman: John D. Lovering, CEO: Rob Templeman and Deputy CEO and Director: Michael Sharp. Structure An organisation structure according to Mintzberg (1979) is the sum total of the ways in which it divides its labour into distinct tasks and then achieves coordination between them An organisation structure determines task allocation, reporting lines, and formal coordination mechanisms and interaction patterns. According to Basset and Carr (1996) an organisations structure should emphasise flexibility of response to market and environmental forces, this is accomplished by appropriate variability in the leadership role to fit the circumstances. As a retail organisation, Debenhams emphasises its structure in response to market and environmental forces by identifying and developing new talents to suit whats happening in the market and the retail and business environment in general. Wright and Burns (1998) state that, organisation structures largely depend on what kind of business the organisation is e.g. primary (e.g. extraction of raw materials, secondary, (e.g. conversion of raw materials to finished goods) and tertiary (e.g. services). The structure of an organisation is also affected by ownership and number of employees in the business. Debenhams is a public owned company. Its functional organisation based on product/brand but has a flat organisational structure headed by a Chief Executive Officer (CEO) and organises employees into different departments selling different products The functional structure groups employees together based upon the functions of specific jobs within the organization. Melissa Bushman (2007). The author belongs to the Home department where they deal in home wares including wedding gifts. Other departments include Mens wear and Womens wear. The dividing of employees according to departments in Debenhams allows managers to exert con trol on a smaller number of employees, making it easier to manage, be more efficient and allows for easy communication between employees and management. Culture The culture of an organisation refers to the unique configuration of norms, values, beliefs, ways of behaving and so on that characterize the manner in which groups and individuals combine to get things done, Eldridge Crombie (1974). At Debenhams they have a unique configuration of norms, values and beliefs that characterize the manner in which they work as a group to get things done. They have a way which sets them apart from others. Drennan (1992) defines culture as, how things are done around here. It is how things are done at Debenhams that makes them who they are. Its about their brand, their people and how they market themselves. Schein (1990) suggests a view of organisational culture based on distinguished three levels of culture, from the shallowest to the deepest artefacts and creations, values and basic assumptions. The Debenhams culture is about excellence, its about design and innovation. The culture at Debenhams goes with the times but its traditions remain intact and h ave been so for two centuries. Debenhams culture is based on being a premium department store retailer. A family friendly store who supply designer labels at affordable prices. The best statement to Debenhams culture is its people. Retail is a fast-moving, exciting business where teamwork really makes an impact. At Debenhams they think everyone can have an impact on their success. Wherever you go in Debenhams you will meet friendly, welcoming people who will care about your well being and support your development but also expect you to be a valuable member of the team. If you want to push your boundaries and take the initiative, they help you do it. Whether you are a sales advisor or merchandiser, Debenhams growth and breadth of opportunity and focus on personal development makes it the ideal place to develop your career. From the sales floor where people can influence customers to behind the scenes roles, every person can influence the performance of Debenhams. Our senior management team listens and acts on feedback. At Debenhams they want people who have a real passion for what they do, people who are self-motivated. People who will use their initiative to act on the freedom they are given and will drive their own development. Sutherland Canwell (1997) say if employees share the cultural values of the organisation then they will be more likely to be committed to it. At Debenhams employees are committed to the organisation as they believe and share in its culture and values. Certain organisations stress the importance of personal initiative and achievement; indeed they reward employees for personal performance. On the other hand, other organisations positively encourage competition between departments or sub-division of the organisation, Sutherland et al (1997). The Debenhams culture stresses personal initiative and achievement and at the same time positively encourages competition between departments of the organisation. Both individual and team initiative and growth are encouraged. The culture in Debenhams is one that is caring, daring, enabling and encourages sharing. According to Blanchard and Bowles (1998) and their Gung Ho culture, an organisation should aim to create a culture of committed employees who love what they do by adhering to the following three principles: Worthwhile work driven by goals and values- An organisation should focus on worthwhile work, use of case studies, review goal standards for individuals and team members. Putting workers in control of achieving the goal. Cheering each other on- the power of feedback, rewards and recognition and action planning. The Gung Ho process aims to address the following: Improve morale and productivity Reduce employee turnover Develop a sense of purpose Improve creativity and innovation Improve service to internal and external customers Empower individuals and teams The author feels Debenhams their employer, fulfils principles as described in the Gung Ho process by Blanchard et al (1998). This is so because the work is driven by goals and values. Good standards are maintained through regular training and review of individuals and team members. By setting reasonable and realistic targets workers are put in control and are able to achieve set goals and even outdo themselves by going beyond. The organisation recognises the power of feedback by holding regular meetings where everyone participates. It also recognises the importance of rewards and action planning. Rewards help boost morale and productivity while action planning and develop a sense of purpose. Current Economic Climate and how it might affect profile and Culture The past eighteen months has seen the economy of the UK and the rest of the world badly hit and seriously bruised by the credit crunch. The current economic climate could have great impact on the profile and culture of Debenhams as an organisation. These impacts could be Political, Economic, Social, Technological, Environmental and Legal, shortened to PESTEL. PESTEL Analysis of Debenhams Political changes-E.g. a change in government or a change in government policy. Government plans to implement the scheduled VAT increase (back to 17.5 per cent) on New Years Day. To change every price in all of its 161 stores at that time would take 250,000 man hours. Debenhams has been encouraged by governments decision on Local Employment Partnership Scheme (LEP) to create employment and will create 1200 jobs between 2010 and 2011and receive government assistance in meeting its training needs. Economic changes-Relate to changes in the wider economy such as rises in living standards or the general level of demand, rises or falls in interest rates, etc. UK markets have been affected by economic concerns through the credit crunch. Lower available income will impact and strategic focus may need to change to lower priced basic products with less focus on higher priced brands suggesting a switch in price architecture. The economy is predicted to grow out of recession in the coming year. As the US economy, the worlds biggest has started growing the growth of exports to that country will create more jobs in the UK economy and as a consequence more consumers will buy the Debenhams brand. The continuous fall in the value of the Pound Sterling against the Euro is likely to bring in more tourists from the EU and beyond who will purchase Debenhams products at a competitive price. As most of the world recovers from the current economic crisis. Debenhams are likely to spearhead their expansion into the international market, introducing new customers to new brands in an exciting retail environment. Social changes-Relate to changes in wider society such as changes in lifestyles e.g. more women going out to work, changes in tastes and buying patterns. Debenhams has added customer ratings and reviews to its online shop to enhance its customers online shopping experience and drive sales. Debenhams customers dont just have to rely on a brands professional opinion they will also now be able to hear what fellow shoppers think. The group is also improving its web site, adding features such as social networking capability, video and catwalk/outfit projection, an online outlet that leads to current offers and promotions, a facility that allows customers to shop by size, as well as product reviews and surveys. The call for fair trade is also another thing that Debenhams has to observe. For example Debenhams restaurants now stock only Douwe Egberts Good Original Coffee. Every cup of Good Original Coffee can be traced back to the farm where it was grown and has been certified by Utz Kapeh, a global non-governmental organisation. This is ensuring we are helping farmers look after their workers, their families and the environment in which they live and work. Technological changes-Relate to the application of new inventions and ideas such as the development of the Internet and websites as business tools. New internet and television technology which use special effects in advertising will make Debenhams products known and attractive to more customers as more people are now making use of the internet. Debenhams has opened online stores due to advancement in technology of the internet and can now sell its products without using shop space. This will allow it to compete favourably in this harsh environment. Positive performance online is helping lift yearly profit at Debenhams, this is despite the harsh economic turmoil in the domestic and international market Environmental changes-Relates to what is happening with respect to the ecological and environmental aspects. Debenhams have also joined calls to reduce impact on global warming by driving a Store energy saving plan, reviewing timings for lights, escalators and air conditioning. Overnight shifts have been reduced with light focussed only in the areas its needed. As a result of these efforts the organisation has achieved the Energy Efficiency Accreditation awarded by the energy Institute. Debenhams is now contributing to a national fund which will help to develop specific WEEE (Waste Electrical and Electronic Equipment) collection centres to ensure that more WEEE gets recycled. Debenhams offer a collection service on a like for like basis, for example if you buy a washing machine we can take away your old one. All the appliances we collect are then sent to be recycled. More eco friendly measures have to be implemented, for instance Debenhams have developed a more eco-friendly packaging for the bra collars on Lingerie, by using a new type of board and are now able to maintain the print quality, whilst introducing 20% recycled content. Legal changes-Relate to changes in legislation. This may impact employment, access to materials, quotas, resources, imports/exports, taxation etc. Debenhams has been affected by the WEEE (Waste Electrical and Electronic Equipment) directive from the government and is doing its bit to help care for the environment. The directive states that as a retailer we are responsible for increasing the amount of WEEE (Waste Electrical and Electronic equipment) that is recycled in the UK. Debenhams reactions to the current economic climate Trigger events like the credit crunch affect organisations in many different ways. Towards the end of 2008, Debenhams struggled as customers were no longer buying much of their products as the economy slid into recession. The current economic climate is likely to impact on Debenhams profile and culture. The report by Graeme Wearden, in the Guardian of (21st October, 2008) gives a clear example of how the current economic climate has affected Debenhams. Debenhams has slashed its dividends after a sharp fall in sales during the past few weeks as the economy deteriorates, Debenhams is planning cost-cutting measures to reduce debt of  £994m, which it admitted was causing uncertainty over its future. It also plans to strip out  £15m of costs, and is cutting almost  £40m from its capital expenditure. The profile of the organisation might change as it could be more difficult to raise funds for new ventures or expansions and also might reduce the current size of the company as there could be downsizing. The negative trends in the economy also might affect the culture of Debenhams as its employees will be operating in a culture of uncertainty. However, the negative trends in the economy have had some positive effects on Debenhams as reported in the Waterford Today (6th January, 2009). On the day (6th January 2009) Debenhams released its interim management statement for the 18 weeks to the 3 January 2009, it also reported that sales of designer gear normally associated with boom times rather than bust, are back in vogue thanks to a new type of shopper, the recessionista. Spring/Summer 09 at Debenhams draws the latest influences from catwalks around the globe with a strong focus on wearability all with famous name designer influences but with high street price tags. ClickPress (14th January 2009)The retailer reported double digit sales growth across its Designer at Debenhams offer in the run up to Christmas, as well as seeing sales and profits increase and market share gains in all major clothing categories, while reducing its debt. The current economic climate has shaken Debenhams, but the Debenhams culture that encourages initiative has seen them shake off the initial fall in sales which shrunk the organisations profile and brought a culture of uncertainty as Debenhams struggled to survive. Whilst Debenhams is a premium department store retailer the external factors of banks going bust, rising unemployment adversely affected their operations. The public could no longer afford their products. The organisation strategized and came up with the idea of selling designer labels with famous name influences but sold at high street prices. Despite the credit crunch Debenhams has been able to maintain its culture of hard work and excellence through its people. The outgoing Chairmans words sum up the Debenhams culture. John Lovering said: I am proud of what Debenhams has achieved over the last six years whilst I have served as chairman.  We have set direction for a sound future. Debenhams is a well managed, properly financed company with a clear and successful strategy and a number of exciting development opportunities. I hope my successor enjoys the role as much as I have. Debenhams has taken advantage of the recession; its combination of quality, price and design in its products has continued to attract customers. Sky News (17 March, 2009). The companys profile will expand as in 2010 theyll open eight new stores bringing the total number to 161 stores across the UK and will employee 1200 new people. The culture of the organisation has altered slightly as the perceived credit crunch crisis initially shook the organisation and drastic measures had to be implemented, the crisis brought a culture of uncertainty across Debenhams. The measures implemented have seen the UKs second biggest department store chain continue to take market share from its competitors in all major product categories. Sky News (March, 2009). The culture change which has taken place at Debenhams is what Brown (1998) terms, specific evolution, which is the adaptation of particular organisational functions (such as research and development, data processing and marketing), to fit the environment. People at Debenhams had to adapt to the credit crunch and found working ways to rise above the crisis. The Debenhams culture has been sustained through new pattern- maintenance symbols, beliefs and structures. Debenhams has been able to weather the storms of the credit crunch because of proper planning and effectively managing todays business risks. Reuvid (2005) points out that organisations should spend time researching the possibility of a risk occurring and the probability of that risk occurring and interrupting businesss flow, then find ways to reduce and mitigate these risks. The organisation should continuously be evaluating the overall risk management infrastructure and investments necessary to look beyond financial statement, risk to enterprise and external risks should not be undervalued and cannot be underscored enough. The organisation needs to protect itself from excessive risk. This should be top priority for management and the audit team. They should understand the extent to which the company is exposed to financial, operational or strategic risks. Because of its preparedness and strategic use both of its financial, creative talent and its human capital Debenhams has survive d the worst recession in decades and remains standing strong.

If I Were George Bush Essay example -- essays research papers

If I Was George Bush   Ã‚  Ã‚  Ã‚  Ã‚  If I was George Bush I would follow the exact same path he is following right now. His plans for our countries Education and Health Care plan live up to their promises. These plans also benefit the country greatly as a whole. Yet, if I was President Bush, I would make the positive effects of these plans to prove themselves more immediate than they have been. This would urge America to follow my, or Bush’s, plans to make America a better place.  Ã‚  Ã‚  Ã‚  Ã‚   The Education Plan the Bush has produced is almost perfect. It contains six key points that I totally agree with. The first part of the plan says that American will provide state grants to recruit and train teachers. The second part of the plan being that America will be recruiting high quality Individuals to become teachers. The third part says that America will be expanding programs to train teachers in specific subject areas. The fourth part suggests that America will implement the Teachers Protection Act. The fifth part says that a new teacher’s tax deduction will be implemented. Lastly, the sixth part of the plan says that America will be providing expanded student loan forgiveness for teachers. All of these goals lead to one key plan. This plan is to put a quality teacher in every room. If this feat can be accomplished, I would follow the exact same plan Bush is following right now. Bush basically has this plan covere...

Welcome to Life :: Essays Papers

Welcome to Life "Dear mother, can you hear me whining? (Green Day)" When something was difficult what did you do, especially when you were a young child? You whined. That was the way you got people to pay attention to you. You hoped that this way they could make life better for you. Complaining to your mother will make everything better. That is the logic that many young children are taught. Life is different as you reach different stages and becomes more difficult each time you reach a new challenge. The stages start with your being comfortable in your surroundings, well protected by your family. As you grow older, you begin to grow apart from the people and the area that you were once close to. You start to go on your own path. This path leads you to a new place with which you may not be as comfortable. The song "Welcome to Paradise" by the punk-rock band Green Day explains the difficulty of moving away from home and how eventually life will get better and you will find that you are not as dependant on your family. The song "Welcome to Paradise" begins a mere three weeks after the boy has left his home. He is writing a letter telling his mother how horrible it is to be away from home. He feels he is alone; this is a scary feeling. He reaches out to the audience by discussing a feeling that many young people have recently experienced. I remember when I first started college, whether I want to admit it or not, I was scared. I moved to a new location three hours away from my warm room and, for the first time, I had to do my own laundry, take care of myself, and keep my area clean and livable. These were new and challenging tasks. At times, even though there are forty-two thousand people here, it feels very lonely, as if you are the only one going through this situation. Everyone experiences some sort of uncomfortable feeling when they have to move to a new location and start a new stage in their lives. From personal experience a college senior explains how he felt the first day he moved to live at college, "I definitely felt like I was in some strange limbo Twilight Zone kind of place†¦It wasn’t a very comfortable feeling at all.

Public Finance and Taxation Essay

There are varying definitions of what public sector economics is and what topics it covers. In a layman’s language Public economics is the application of economics to the activities undertaken by the state. Black et al. defines public sector economics as â€Å"the field of economics which studies the nature, principles, and economic consequences of government expenditure, taxation, financing and the regulatory actions undertaken in the non-profit making government sector†. Thus it looks at the efficiency of various approaches used by government in its day to day operations. For the government uses economic policy instruments which are designed to influence economic behavior in order to achieve certain outcomes. The government has various goals which it pursues they include; i) Macro-economic stability ii) Enhanced economic growth iii) Balance of payment stability iv) Income distribution. The ultimate goal of these policies is to improve people’s welfare. As already mentioned government uses instrument of fiscal and monetary policy to achieve its goal. The use of government expenditure and taxation to influence economic outcome is referred to as fiscal policy. Fiscal policy is often outlined through the annual budget which is presented to parliament every year. The budget outlines its objectives in the budget and how these are going to be achieved. On the other Monetary policy is aimed at influencing the supply of money and consequently economic growth. The central Bank is an independent arm of the state which is mandated with running the monetary policy. In Zambia, monetary policy is the responsibility of the Bank of Zambia. In public sector economics we study the impact of instrument of fiscal policy on economic efficiency. Instruments of fiscal policy include; i) Expenditure ii) Taxation iii) Financing iv) Regulations The first two involves the procurement and spending of the government funds on various programs such as public infrastructure, education, health and public security. Example the government collects revenue using tax and spends the revenue on education, health, roads etc. in economic terms the use of these two constitutes the direct mobilization and allocation of scarce resources. In contrast, regulation entails a law or administratively proclaiming an enforceable instruction that leads to a different allocation of private sector resources than would apply in the absence of government intervention. That is allocation resources are influenced indirectly. Example the government through the Environmental Council of Zambia has put regulations to curb environmental damage; this has lead to increased investment in environmentally friendly technology by private firms. This is something the profit seeking private sector would not have done if there was no government intervention. PUBLIC FINAN CE AND IDEOLOGY Opinions on how government should function in the economic sphere are influenced by the ideological views concerning the relationship between the state and the individual. Political philosophers have distinguished two major approaches. These approaches are the organic view and the mechanistic view of government. Organic View of Government In this view society is considered as a natural organism and the government is the heart of such an organism. Society is an organic whole, just as the human body. Each individual is a constituent part of the organism just like a body part. In this view an individual has significance only as a part of the community and the good of the individual is defined with respect the good of the whole. A person’s action is seen as important if it leads to the improvement of the wellbeing of society. In Plato’s view, ‘an activity of citizen is only desirable if it leads to a just society’. In this view, the goals of society are set by the state which attempts to lead society, toward their realization. The goals of society do differ from one state to another. For example Plato conceived that the goal of government was the achievement of a golden age in which human activities would be guided by rationality. In short society strived to achieve a state in which the decisions of all individuals and the state were rational. So society was support all activities which would lead to the achievement of this goal. In Adolf Hitler’s view, the state’s goal was the achievement of social purity. He envisaged the creation of a supper race. To achieve this goal the state supported all activities which were aimed removing human impurities. They include bizarre actions such as extermination of Jews, physically disabled people and invasion of all countries to ensure that his goals are achieved over the world. The Grand Ayatollah Khomeini argued that the goal of society is to create good believers. Thus all actions of individuals and the state should be aimed at creating a cadre of believers. Closer home, Kaunda envisaged that the goal of society was the attainment of a just society. He coined the concept of human centered development or Humanism. In this ideology he argued all the actions of individuals and government should be aimed achieving a society in which all persons are equal to each other. Proponents of the organic view argue that certain goals are natural for the societal organism such as pursuit of sovereignty over some geographical area. From a policy perspective, the organic view emphasizes combating poverty and equity issues notably redistribution of income as justification for government intervention. In addition, this view tends to support existence of a large government. That is government has a large part to play in of the nation’s activities. Mechanistic View of Government In this view government is not an organistic part of society, but it is a creation of people to better achieve their individual goals. Here government is seen as a reflection of individual preferences or tastes. In short, society is a mirror of individual wants and needs. In this case, government intervention is only justifiable if it leads to individual welfare maximization. An individual will only support a government if it helps him/her to achieve their individual goals. Example government should protect individuals from violence. To do so the individuals gives government coercive power. In Adam Smith view, Government should protect society from violence and invasion from other states. This view advocates for government intervention only to correct market failures and letting the market decide who gets what. In addition, the role of government should be limited to certain public works such as roads, bridges, sewer, and airports. These are infrastructures which make society function. There are several divergent views within the mechanistic view. Some of these are; i) Libertarians View which argue against any further role in the economy beyond providing justice and protecting individual liberty. ii) Social democrats believe that sustained government intervention is need for the good of individuals. These interventions can be as diverse as safety regulations at work place, banning racial discrimination, welfare payments to the poor. In totality, the mechanistic approach focuses relatively more on the efficiency of markets and economic growth. ROLE OF THE STATE 1. Equity and Efficiency Principles Pareto Efficiency-occurs when it is not possible to improve the welfare of some people without making the welfare anyone worse. An economic system that is not Pareto efficient implies that it is possible to change resource allocation without making any one worse off. Example if an economic system is not Pareto Optimal it is possible to increase consumption by one group and reduce for others without making them feel worse off. This is known as Pareto Improvement. Pareto improvement occurs when a change to a different allocation makes at least one individual better off without making any individual worse off. To make us under this lets assume that; i) There are two individuals A and B, ii) There are two goods X and Y, iii) There are two factors of production Labor (L) and Capital (K) iv) We assume that we have a static economy such that XA+XB=X and YA+YB=Y Exchange Efficiency or efficiency in consumption Efficiency in consumption is achieved when the marginal rates of substitution are equal for all persons; MRSXYA=MRSXYB The Marginal Rate of Substitution is simply the slope of indifference curve. ∆∆Y ∆X X MRS=-∆Y∆X If you have a utility function: uX,Y=U0 totally differentiating MUxdX+MUydY=0 MRSxy=-dYdX=MUxMUy In the Edgeworth box efficiency is achieved where the indifference curves are tangent; Lets pick a point such as ‘e’. At point ‘e’ it is possible to make person A better without making person B worse off. This can be done by moving along Indifference Curve no B2 to point d. At point‘d’ the welfare of person A improves because he moves from a lower indifference curve A2 to a higher indifference curve A3. The improvement for person A continues until point ‘c’ where the indifference curves are equal. At point ‘c’ it is not possible to make any Pareto improvement. At point ‘e’ we have MRSXYA>MRSXYB This also true for point ‘d’. This outcome of Pareto efficiency is only possible under perfect competition. This is because in perfect competition all consumers face the same market prices for these goods. That is they equate the marginal rate of substitution to the same price ratio. MRSXYA=MRSXYB=PxPy Each individual maximizes their utility function subject to the budget constraint. That they maximize the following function U0=uX,Y subject to I=XPx+YPy therefore the langrangian L=UX,Y+ÃŽ »(I-XPx-YPy) First order conditions ∂L∂X=MUx-ÃŽ »Px=0 and ∂L∂Y=MUY-ÃŽ »PY=0 MUX=ÃŽ »Px and MUy=ÃŽ »Py solving simultaneously we getMUxMUy=PxPy=-dYdX=MRS Therefore, each person will equate their MRS to the price ratio. Production Efficiency Production efficiency requires that the marginal rates of technical substitution are equal in the production of good X and good Y. That is MRTSLKX=MRTSLKY In the Edgeworth box this requires this occurs where the isoquants are tangent to each other. The marginal rate of technical substitution is simply the slope of the isoquant. K L U0 ∆K Given an isoquant QL,K=Q0 totally differntiating we get MPldL+MPKdK=0 MRTSLK=-dKdL=MPlMPK Lets have a factor Edge worth box to make our illustration easier. Remember from our study of micro-economics we defined an isoquant as a curve that represent the combination of labor and capital which give the same level of output. In the diagram below production of X uses labor from point X to the right and capital from X upwards. For good Y it is the opposite of good X. All points along XPY are Pareto efficient in the sense that it is not possible to improve or increase the output of good X or good Y without reducing either of them. To under this lets pick point ‘a’ which is not along XPY. This point is not Pareto optimal because it is possible to improve the production of X without reducing the output of good Y simply by moving along the isoquant no Y2 output of good X improves/increases to X2 from X1. Pareto efficiency is only possible under a perfectly competitive market system because all produces face the same factor prices (PK and PL). Thus Pareto Optimality condition reduces to: MRTSLKX=MRTSLKY=PKPL Proof: Q0=QL,K subject to C=LPl+YPy therefore the langrangian L=QL,K+ÃŽ »(C-LPl-KPk) First order conditions ∂L∂L=MPl-ÃŽ »Pl=0 and ∂L∂K=MPk-ÃŽ »Pk=0 MPl=ÃŽ »Pl and MPK=ÃŽ »PK solving simultaneously we getMPlMPk=PlPk=-dLdK=MRTS Therefore all firms will be minimizing their costs while facing the same factor prices. OVERALL EFFICIENCY This requires that the production possibility frontier (PPF) and the social welfare function are tangent. That is; MRSXY=MRTXY. X SWF PPF Y The PPF shows the maximum quantity of good X and good Y that can be produced using the existing technology and resources. An increase in the amount of labor and capital available or an increase in the level of technology will make the PPF to move outwards to the right. All points inside the PFF are attainable but not efficient and all points the right of the PPF are not attainable. To achieve, the Marginal Rate of Substitution for society (slope of SWF) must be equal to the PxPy and the marginal rate of transformation (slope of PPF) must be equal to the MCxMCy or resources must be fully utilized. In perfect competition, P=MC. Hence it is possible to achieve the following outcome; MRSXY=PxPy=MRTXY=MCXMCY. Thus a perfectly competitive outcome results into a Pareto optimal allocation of resources. It is important to note that Pareto optimal allocation may not be the best outcome in the sense that it does not consider equity. That is there is no equity consideration. Equity is the fair d istribution of resources in sources. There are two concepts of equity used in economics horizontal and Vertical Equity. Horizontal equity means that people in similar positions/situation must be treated equally. Example if two people have HIV and the same level of CD4 count they should have equal access to ARVs. The only condition is that they are positive and have the same CD4. Vertical equity means that people in different economic situations must be treated differently from a poor person when allocating resources. This is because treating them in the same manner is not equitable. MARKET FAILURE A market failure occurs when the market fails to allocate resources according the Pareto criterion. In other words, a market failure is a situation in which the market fails to allocate resources efficiently according to the Pareto Criterion. Fundamental Theorem of Welfare Economics Welfare economics is the systematic method of evaluating the economic implications of alternative resource allocation. It answers the following questions; i) Is a given resource allocation efficient? ii) Who wins and looses under various allocations? First Fundamental Theorem of welfare Economics- It states that if there is a perfectly competitive market and consumer tastes are convex then any equilibrium will be a Pareto optimal allocation of resources. In short, the competitive market allocates resources efficiently without any need for government intervention. Further, the theorem states that the price from the perfectly competitive market induces selfish individuals independently maximizing their welfare, to bring the economy to a socially optimal state. That is prices rise in response to excess demand and they fall in response to excess supply. Normatively this theorem says that use free market system to allocate resources. The Second Fundamental Theorem of Welfare Economics states that â€Å"society can attain any Pareto optimal allocation of resources by making a suitable assignment of initial endowment of resources and then letting the people freely trade with each other as in the Edgeworth box.† To help us underst and this lets relook at the contract curve which gives the Pareto Optimal outcomes.