Your paper will be based on the March 17, 2014 article, “The Secret World of Fast Fashion,” by Christina Moon (Pacific Standard Magazine). This article gives an in-depth account of the global logistics of “fast fashion,” its ties to Los Angeles’ Korean community and Jobber market.
Once you’ve read the article, do a little research into retailers like Forever 21, Zara, Urban Outfitters and other fast fashion retailers, several of which are listed in the article and perhaps gain some insight into their supply chain logistics, manufacturing, etc. Write a paper, 3 full pages minimum, 4 full pages maximum (PLUS a works cited page) on your thoughts regarding the article as it relates to what you’ve learned as a supply chain student and as a consumer. Feel free to add your thoughts as they relate to the US job market, whether you’re a US Citizen or whether you’re the citizen of another country.
Your papers must be coherent and well organized. You MUST cite every single source you use. I expect you to conduct internet research, but I also expect you to cite the link(s) you use. I do not want to read a paper that is one big quote. Your paper needs to have original, independent thought. Don’t give me 4 pages of cites (the software will tell me, and you will lose points). Remember, your Works Cited page must be a separate page. Your paper should be Arial or Times New Roman font.
Fashion industry has experienced drastic transformation in the past few years. Different factors have contributed to the transformation in the industry such as increased digitalization and competition among others. A number of articles provide insights on the changes in fashion industry across the globe. This paper is based on Christina Mon article, “The Secrete World of Fast Fashion”. It provides insights on supply chain and other related aspects based on the article.
Fast fashion is a concept that emerged due to the decrease in the period it takes for a given fashion to circulate in the market or to be designed. Nowadays, fashion designers have become creative and design fashions that suit a range of consumers. With increased level of digitalization and competition, fashion industry has become so agile. Designs no longer take months to reach to global markets across the world as it were in the last 15 years (Moon, 2014). Nowadays, this period has reduced drastically and has contributed to increased competition. These changes are explained by the improvement in the supply chain.
In US, fashion found its way in 1980s by the Koreans. Koreans in 1960 were running a lucrative fashion industry before finding their way in Brazil and then exploring markets in Los Angeles, US (Moon, 2014). Nowadays, the largest fast fashion company Forever 21 managed by the Chang Korean family dominates US Los Angeles markets. The retailer competes for the market with other already established retailers such as Zara, Urban outfitters and Jobber market among many others.
Hundred Korea families deal in fashion industry and they design, organize factory labor that usually cut and saw clothes in place that are sold to many retailers in the US. Some of these huge and established retailers include the Urban Outfitters, Forever 21, Nordstrom, T.J Maxx and Anthropologie (Moon, 2014). Some of these clothes are for export in global markets such as Vietnam and China.
This article is therefore informative and educative especially on the supply chain management in fast fashion. Every entrepreneur sets up a business with the intention of getting more customers. The products must get to the customer through certain means or channels. The supply chain management begins from manufacturing whereby raw products are transformed into finished products. The manufacture is expected to identify the most reliable suppliers that can ensure constant supply of raw material to ensure that they are transformed into finished goods. Most of the Korean families manufacture the products and package them in various designs before they supply them to retailers. The products either are sold to major retailers such as Forever 21 at a wholesale price for distribution or are imported to other global markets such as Vietnam (Moon, 2014). The retailers then can either sell the merchandise at a wholesale price or at retail price to the consumers. This ensures that the products reach consumers at their specific locations at the right time. This distribution is very important as it ensure company sustainability and survival. Any challenges in the distribution channel may affect the company profitability and in case of such, then it requires an immediate course of action.
For any consumer, it is important to understand supply chain to be in a position to understand the best way to identify opportunity in the market. This article is more elaborative in explaining how clothes end up reaching consumers. The longer the supply chain, it means the price will be higher and this will be pushed to the consumers. Therefore, as a consumer it is important to identify the distribution channels to access fashion at competitive prices. The US market has many fast fashion players that supply fashion to retailers who finally sell the merchandise to consumers. Having knowledge in this will enable one to benefit from competitive prices. Furthermore, the article has provided substantial information on the various retailers reliable when it comes to supply of fast fashion. Quality and convenience are key aspects to a consumer. The industry is managed by Koreans families that have vast experience and knowledge in the area because of the long period working in the same industry (Moon, 2014). This therefore, explains the level of quality in their design. Multiple sources of channels exists that companies use to ensure that the products they produce reach the markets. With the internet a consumer can easily trace the local store, purchase clothes, compare prices in several outlets and as well preview the new fashion designs on the market. You tube and other video links available through the internet provides an alternative source of information to the consumers. They as well have facilitated the proliferation and spread of fashion designs across the world giving consumers an array of choice.
Communication and sensitivity to cultural aspects is very important for any businessperson that operates in foreign country. It is through communication that people connect and form relationships. Culture presents an obstacle or rather an impediment in most supply chain especially in fashion industry. This situation was typified in the 2000 as Koreans faced challenges in dealing with American retailers. The barriers include lack of American cultural fluency, and could not understand aesthetics and designs of the Americans (Moon, 2014). However, this situation was changed when kids came out of their university to join their families in business. The kids understood English and cultural identities of Americans. They could communicate fluently with the American retailers and domestic department store buyers.
Furthermore, it is prudent for the fashion industry to have skills in design. This calls for innovativeness and creativity to remain relevant in the market. Marketing and merchandising skills are also very important as this ensures that the company expands its markets share and is able to improve in terms of competitive edge. Some of the innovative and marketing skills relevant to boost supply chain in fast fashion include rebranding of business, creating attractive company logos, building showrooms spaces to appeal to the wholesalers buyers, setting up of websites and many other strategies.
Another important aspect to consider in the supply chain in fast fashion industry is cost. Selecting the appropriate supply chain approach is very importnat to reduce costs of production. Reduced costs of production affect the price of the products sold to the consumers. Some of the supply chain approaches used include lean and agile (Hines, 2004). In lean there is correct appropriation of commodity in relation to what it is produced while in agile manufacturers share information and technology. Combining both approaches is refereed as leagile (Hines, Tony & Bruce. 2001). For instance, in US, Koos manufacturing company is a Korean owned factory in the Southgate neighborhood in Los Angel. The company designs, cuts, sew and finishes among many others. This reduces its costs of production as customers can access their products at low costs (Hines, 2007). Relationship between industries, retailers, suppliers and customers across various supply chain is very crucial in ensuring that the process is successful and benefits everyone. For instance, fashion designers such as Forever 21 have established good customer services that have enabled them to remain competitive. They have as well invested more in creativity and quality of their designs making them gain a competitive edge over their rivals. In the Jobber market, there are many showrooms and business dealing in fashions and this gives the buyers a wide array of shops to buy. They can compare the prices, the quality of designs across the market and decide to purchase from those that they feel are cheap and meet their threshold. Furthermore, it is important for the fashion industry to ensure that they have constant supply of designs to allow the consumers to make the decision of what suits them. Consignments in Forever 21 arrive daily and this has as well contributed to the company gaining competitive edge over its competitors in terms of urgency of delivery of supplies (Moon, 2014).
Increased competition in fast fashion as well sparks cooperation that leads to increased creativity. Consumers benefit from this as they get value for their money. Fast fashion industry has become competitive as various retailers companies such as those at Jobber market, Forever 21 compete for the markets (Moon, 2014). It is also very important that there is high level of truth and coordination within every family or businesspersons to boost efficiency of the global production process. The family members must make decisive decisions on the way forward to ensure that the process run on smoothly even as they spearhead their global entrance strategy.
It is also important that companies in fast fashion set up warehouses in different areas to meet the global demand. This ensures constant supply of their merchandise. It is also very important for the company to consider multiple sources of their products and to keep vigilant of the market trends. This ensures that the company keeps track of the fashion trends as well as is able to explore new opportunities in the markets. This is one of the strategies that Forever 21 has adopted and has enabled it to remain competitive.
US job market is inclusive to people from different backgrounds. Consideration that is more important is the skills and knowledge an individual brings to an organization. Fashion industry is opened to both citizens and immigrants. However, most of the people that deals in fashion and textile sectors in Los Angeles is Korean families something contributed by their historical lives (Black, 2012). They specialized in these areas and therefore, took upon themselves to ensure that they earn a living from the same.
In conclusion, this article is insightful and informative especially on the changing and transforming fashion industry. Fashion industry in the previous years has undergone numerous transformations as new designs come up and spread within weeks. Designs range from various styles, colors and sizes giving the consumers an array of choices. This attest to the changes experienced in the supply chain. Clothes are shipped from Asia, designed and manufactured then taken to retailers such as Forever 21 at Jobber markets and other retailers for their distribution to consumers at various locations. Global markets as well are easily accessible through establishment of warehouses and use of new technologies such as internet.
References
Black, Sandy (2012). The Sustainable Fashion Handbook. New York: Thames and Hudson
Hines, T. (2004). Supply chain strategies: Customer driven and customer focused. Oxford: Elsevier.
Hines, T. (2007). Globalization: Global markets and global supplies, in Hines, T. and M.Bruce. Eds. Fashion Marketing Contemporary Issues 2nd Edn. Oxford, Elsevier
Deliverable: A Written Report, 25 pages, lines spacing 1.5, with 11 Times New Roman Format, excluding cover page, appendix, and references.
Questions
Part One: (1 attachment: PowerPoint-M&A Theories and Major Synergies Models)
1- One of the first M&A steps is to screen the market in order to identify potential targets. Suggest three potential targets and document your choice with qualitative and quantitative analysis.
The three targets companies, but we need to do qualitative and quantitative analysis
• www.engilitycorp.com
• www.olivegroup.com
• www.dji.com
2- Describe each of the potential targets using the relevant M&A theories and the relevant synergies valuation models, as listed below.
• Synergies: Operating Synergy & Financial Synergy
• Valuation: The Discounted Cash-Flow (DCF) Model, The Discounted Future Earnings (DFE) Model, The Multiple Model, The Comparable Transactions Model
3- What are the potential synergies that may come from merging with each of the identified targets? Suggest an economic assessment of these synergies.
4- Based on your assessment and analysis done in questions 1to 3, recommend the firm among the three selected ones that should be subject to be merged with Tawazun. Recommend an execution plan for this merger within a realistic timeline and illustrate how and when the synergies will be achieved.
A) Explain each of the below on the three Targets Selection Framework
• Profitable and financially healthy targets: Gross Profit Margin, Net Profit Margin, Current Ratio, Quick Ratio, Dept to equity, Return On Equity, Return on Asset, EPS, P/E (for each of the three companies)
• Stability of the revenues
• Publically listed or private?
• Maturity (age of the firm)
• Geographical consideration
• Business model similarities and/or complementarities
• Existence of a Competitive advantage or not
• Regulated industry/sector or not
• Size: too much small or too much large (implications on the M&A financing scheme)
• Dependence on one customer or not
• Long-term contractual arrangement with suppliers?
• Law suits?
B) Overview of the Selected Targets
• Industry
• Products
• Business model
• Governance structure
• Financial facts and performance
• etc.
C) Use one or more of the valuation models to assess the potential synergies
D) Be conservative (not too optimistic…)
E) Cover different dimensions as much as possible
• Operations
• HR
• Finance
• Strategic
• IT
F) Recommendation and first draft of M&A Planning
Part Two: (3 attachments: Reading 4-M&A Execution Imperatives, Reading 3-a- Performance Assessment in M&A, and Reading 3-b- Performance Assessment in M&A)
5- According to Wang and Moini (2012) and Zollo and Meier (2008), what are the different methods used to assess the performance of M&A? Describe them.
6- According to Arthur et al. (2003), what are the main executions problems for which M&A may fail? Describe them.
7- According to Arthur et al. (2003), what are the two M&A integration imperatives? Describe them.
8- In question 4 of the part one, you recommended and execution plan for a target integration. Enhance this plan using some of the relevant performance metrics.
9- Explain how your recommended execution plan prevents from M&A execution problems?
SAMPLE ANSWER
Introduction
According to Basmah and Rahatullah (2014), mergers happen when organizations verify that consolidating their business operations with an alternate venture is of profit. This is generally helpful as expanded quality for the shareholders. While a merger of equivalents can happen when two organizations consolidate, this is not regularly the situation. Rather, the two organizations will go to an assention in which one of the organizations buys the other association’s regular stock from its shareholders in return for the buying organization’s basic stock. Here and there, money or different sorts of installment are utilized as a part of request to encourage the value exchange. Nonetheless, the most well-known methodology for a merger is the stock-for-stock plan (Adomako, Gasor & Danso, 2013). At the point when a merger happens, it is uncommon that there is an exchange of stock on a coordinated premise. This is almost constantly finished with a proportion. This is on account of the organizations are seldom of precisely the same size. For instance, Company A may be obtaining the stocks from a littler Company B. In the event that Company A is three times the extent of Company B, then the degree would be 1:3. As such, for every three shares of Company B, Company A would pay with one of its own stocks.
Part One
Engility
This is a company formed a couple of years ago to offer various technological solutions. For the past three years, the company has been busy providing critical services and support to the American department of defense and Federal civilian agencies with technological solutions to these bodies. In the recent past, the company has expanded their operations in line with their capabilities and brand in order to take advantage of the market opportunities. Therefore, the company is determined to enhance value for their customers by providing business services that are benchmarked with other similar businesses in the industry. The company has a workforce composed of character, skills, and expertise that are necessary for undertaking the most challenging tasks that may arise in the course of their operations. Since the company operates in more than 40 countries, the company has a wide market for their products and this enhances their strategic position (Engilitycorp, 2015). The company boasts a global of excellence in command and control system software, engility services, global security and engineering solutions, linguistic operations, and technical support.
Olive group
This is a company that provides resilient safety, security, and technological systems that support the core business functions in the oil and gas sector (Olivegroup, 2015). The oil and gas industry continue to venture into remote and high risk areas due to increased demand for hydrocarbons and this requires technological solutions to minimize such risks. The Olive group takes advantage of the need to provide advanced security, safety, and technological solutions in the energy sector that is subjected to high risk operations. In addition, the Olive group is determined to take care of the criminally and the politically motivated threats in the oil and gas infrastructure that increases with increased global demand.
DJI
DJI is a company that provides creative tools used to capture images that were previously out of the reach of human beings. The company operates flying cameras with the ability to move in the air and capture images that are then transmitted to the central server for adequate analysis. The DJI products are able to capture professional and high quality images and videos in every corner of the world, thus enhancing surveillance systems. Through their commitment to R&D and innovation, the company has managed to produce easy-to-use devices combined with advanced technologies and modern designs that promote the ethos of “form follows function”. Due to its strategic headquarters in the Chinas Silicon Valley, Shenzhen, the company benefits from direct access to raw materials, creative talent pool, and other important supplies that improve their chances of success (DJI, 2015). Due to the nature of their products, DJI has successfully managed to redefine various industries by accomplishing safer, faster, and more efficiency that before.
Analysis of the marker screening
From the above analysis, the three companies can form a very successful merger due to the nature of their operations. Since the companies operate in related environments, their merger can create more efficiency leading to improvement in their overall productivity (Cefis, Marsili & Schenk, 2009). This is because the security operations provided by the two companies will provide solutions to the highly risky oil and gas operation of the other company. In addition, the ability of these companies to form a merger will enhance their market power due to increased quality of their products. Due to the quick growth anticipated with mergers, the companies will have enhanced market power due to their diversified product portfolio. Since these three merging companies operate in related industries, they are likely to share information related to the market of their products and this will have them in formulating an advanced business operation strategy.
Operating synergies
According to Weber and Shlomo (2012), operating synergy is a type of a synergy that results to companies increasing their income and growth by the use of the same level of assets. It is useful, and divided into the four parts. These four parts are inclusive of the economies of scale that makes the organization to be more efficient in its operation due to combined effort following the merger that has been done. There is more profit that is evident in the company when merging is done and this increase the profitability of the company (Vu, Shi & Hanby, 2009). This is only evident, where both the parties are involved in the same kind of business that is headed in the same kind of direction with the same aim of profit making as the main outputs. Operating synergies give yield to a more increased pricing seen to be experienced by the company at hand the company that has merged will have high increased profits and higher margins following the reduced competition that is now evident. When companies come to work together, there is combined strengths will provide diverse strengths that will propel the organization forward. On the side of technology, it will improve because, the strengths that were employed by the single companies will now be put together leading to high productivity. Operating synergies will lead to a combination of multiple strengths and higher growths in the market (Schraeder & Self, 2003).
Financial synergies
These are type of synergies that are related to payoffs and in some cases, they can related to low, high or even both pay offs. When projects are of low rate, there is a high cash flow in such an organization and the value of that firm is highly increased following the high returns in the same organization (Schief et al, 2013). When a big company acquires a large company, the value of that big company will automatically increase due to the acquisition that has been made. This will further define the debt capacity of the two companies that have merged together to be highly increased because, there is consolidation of cash flows and other accounts of the two companies (Rosi, Shlomo, & Raviv, 2013). There is what will be termed as a tax case resulting from the acquisition of the smaller company the larger one. The companies will tend to benefit themselves by ensuring that that they manipulate the taxes by ensuring that they write off loses of other companies to reduce their tax liability. This will of high benefit to such firms who will evade the huge taxes they are entailed to pay but will be a loss on the other side if the laws governing the country finds out the trick the company is using to evade responsibilities. Whenever there is diversification, the firms are liable to face huge problems and more in the case of the investor’s diversification.
Discounted cash-flow (DCF) model
This is the main valuation model that is highly considered by companies that are about to carry out the mergers and acquisition process (Pillania, 2011). When the cash flow of a given company is well analyzed, it is thus very easy to tell the value of that given company and the amount of money that ought to be paid for it to be acquired by a much bigger company. The value of the company will give its estimated cash flow in the future; hence the other company acquiring it will tell if it will be able to benefit from it. This is a very rare opportunity that is used to measure the attractiveness of the investment opportunity to the acquiring company in a more realistic way (Nogeste, 2010). The cash flows of the firms is done separately, then from the combined firms and this is done to get the actual analysis of each firm with the aim of getting the true value and the benefits that can be experienced by the firm. The calculation follows two models that are to be followed to ensure that the actual value of the company is well tabulated. The model involves the forecast period and the terminal period, which have to be analyzed to get the cash flow made during that time. After the computation of the company’s value, it is prudent to get the cash flow over the life of the company in comparison to its present value. This is useful in analysis the amount of money the company big company acquiring the smaller company will be required to pay (Merikas, Polemis, & Triatafyllou, 2011).
Discounted future Earnings (DFE) Model
This is another type of model used in the analysis whose main aim is to relate the present value earnings of the given firm with its synergy value in the same given company (Mehta & Hirschheim, 2007). The company’s present value of the future earnings in most cases, it recommended to be compared with its synergy value especially to the smaller company and that of the two companies combined to give the credit worth of all.
Multiple models
The product of the flow of synergy is well tabulated by the use of this model and it is also compared with the value of the synergy that is present in the company. Comparison of the two firms is as well done through the use of this model, thus, for the comparison to be more effective, the common variable present in both the companies is kept constant. In the case of multiple cases, the synergy of the individual company is highly recommended to be compared with the difference between the multiple values of the firms at the combined state to ensure that the multiple value is accurately tabulated (Malik et al, 2014). The multiple value of the combined firms will be excess as compared to the value of the individual firm implying that in the case of multiple tabulations, the multiple firm have to be involved in whole.
Comparable transactions model
The common variable, which is maintained constant to all firms, is compared with the synergy and the product of the synergy that flows in all the organizations under the comparable transactions model. This also implies that, the comparable transaction model is useful in the comparison of the comparable transactions with the company’s synergies.
Question three
Operation synergy
There are two types of potential synergies that come as a result of merging the three companies inclusive of the financial and the operating synergies. On the side of the operating synergies the economies of scale on the side of the company’s will be said to increase following the merged efforts of the three companies. The organization will now be more efficient in its operations due to, the combine efforts that come as a result of the merging of the companies. The cost incurred in the production of the company’s product will be reduced, leading to increased profit to the company (Huang & Kleiner, 2004). This is because all the parties are therefore, involved in the same type of business that entails all having the same goal of making profit and improving the performance of the company. Once the companies have merged together, the competition power will be reduced; thus, the power of pricing will be increased at a very high rate. This will increase the company’s sales and profit at the same time; hence increasing the value of the company. Merging of three companies leads to a high combination of the multiple strengths that may result to the way of success to the newly formed company. The strength of one company might compliment the strength of the other company to mean that, when all these strengths are combined together the capability of the company will be increases to a higher percentage (Fiarield, Ogivile, & DelVecchio, 2002). This will therefore result to higher growth in the market, which will mean all the customers of the old companies will now be customers of the new company. The potential of the market growth will highly be increased such that, no matter the pricing of the products, people will tend to buy the products of the company because they can only access them there. The potential of the market growth will highly be increased such that, no matter the pricing of the products, people will tend to buy the products of the company because they can only access them in that one company.
Financial Synergy
This is termed as good potential for growth for the newly formed company that will now have a guaranteed increased number of customers old and newly formed ones. On the side of financial synergies that are formed as a result of the merging of the three companies, the cost of capital may be high, low or even the two circumstances can as well be noted depending on various situations in the three companies. The organization will have a high cash flow that will result from the low rate of projects that is evident in the company. The debt of the newly formed will be rated higher than before due to the companies that have merged to form the new company; thus, combining their debts together (Dorota, 2012). This will be a disadvantage to the new company that will have to pay huge amount of debts, for it to pave its way through. The debt will increase as a result of consolidating the cash flow, accounts of all the companies and other accounts belonging to the individual companies as well. In some instances, the company will tend to manipulate the tax that it ought to pay just for the sake of its own interest gain. This can be done through the use of the profits of one organization to cancel the losses of the other organizations to mean that, the tax liability of the new organization is increased (Clayton, 2010). The three companies that have merged together were from diverse grounds with diverse leadership, management that might be a problem to the new company, which is at a high risk of encountering insurmountable challenges in the incorporation of the diverse operations from the three companies.
Assessment
Based on the above assessment, the best company to be merged with Tawazun is Engility since they are closely related in the sense that they both deal with military technologies. In this regard, it would be very easy to streamline the operations of the two companies since they have related clients. Since the companies come from very different markets, the merger between them is likely to cause an improved market for the merged companies. Engility alone operates in more than 40 countries and this makes them a strategic partner for the merger with Tawazun due to the large nature of their market. Englity also forms a strategic partner of Tawazun due to their global excellence in command and control software, global security, and engineering solutions.
Execution plan
The beginning of the execution plan will begin with creating a unified organizational culture for the merged companies since the two companies comes from diverse cultural environments. The next stage will involve merging the vision and mission of the companies. The next stage involves integrating the personnel of the two companies into one unit to build the team momentum required for the success of the organization. This will help to develop the human capital that ensures the planning and retention of the best talent needed for the proper implementation of the company’s mission and vision. Integrating the cultures, formulating mission and vision statement, and development of the human capital can be done within one year period.
After the actual merger, the synergies will automatically be obtained and this will help the companies to create some opportunities that were not available in case they were working independently (DivyaPriya, 2012). After the merger, the companies will form one big company and this will enable them to achieve economies of scale, resulting into more profits. Merger enables the company to reduce the competition among them and this increases their pricing power, leading to more profits from their sales. In addition, the merger will enable the companies to have a combined strengths that if they were operating independently. Since these companies come from diverse geographical locations, they would achieve higher growth due to the increased market presence. The merger between these two companies will also result in financial synergies, such that their debt capacity would increase as their cash flow and other accounts are consolidated, leading to increased debt capacity.
Part 4 A.
A vital part of the successful merger or acquisition is proper evaluation of the target company (Schef et al, 2013). Like nearly any sales transaction, this can result in differing opinions. The company selling stocks will want the price to be high. The purchaser will work to achieve the lowest price. Since there are often many millions of dollars involved, methods for determining the value of a company have been developed. One method for establishing the value for a company is to use comparative ratios. Many ratios exist, and the most common of them are the Price to earnings ratio (P/E ratio) and the Enterprise Value to Sales Ratio (EV sales). The P/E ratio includes the acquiring company make an offer which is some multiple of the target company’s earnings. Examining the P/E ratio can provide the purchasing company with guidance concerning the multiple which should be used in the purchase. A higher P/E ratio will generally lead to the use of a higher multiple. The EV sales ratio allows the acquiring company to base their purchase multiple on the revenues of the company (Rossi, Shlomo, & Raviv, 2013). If the company has a relatively high EV sales ratio, then the multiple paid for the purchase stocks will be higher.
Another important factor to consider when determining the value for a company is its replacement cost. If the value for the company were the sum of its staffing and equipment costs, the company doing the acquisition could purchase the staff and equipment in order to evoke the acquisition. This type of evaluation is used primarily when the assets for a company are tangible such as vehicles, mines, and products. Companies which are in the service industry may have assets such as ideas and people, which do not lend themselves to this type of valuation.
Gross profit margin is the type of profit in a given company that is calculated with the selling price multiplied by 100 and it can best be defined as the selling price that is turned to profit of a company. Return on assets is well used in showing of how a company’s given assets are in the fore front of giving high returns and profits to the same company (Nogeste, 2010). The best way of tabulating the return on assets is by dividing the net income of the same company with its average total assets that will give the actual tabulations. This will give the actual figure gained by the company after it has employed the usage of its assets in profit making.
The current ration of the company is its financial ratio hat is used in the measure of resources of the firm that it will use in the paying of acquired debts either through the bank or any other loner channel (Pillania, 2011). The company’s market liquidity ratio can be compared to the company’s current ratio; hence, tabulated by diving the current assets with the current liabilities. This is the best way of a company that is interested in comparing of its current assets with its current liabilities that it will be entailed to surrender on failure of paying the acquired loan.
Quick ratio is the measure of the how fast a company will be in a position of using its available cash that will be needed to clear its liabilities within then given time as earlier agreed. The faster the company uses its money to clear its debts the higher the position it will attain of acquiring bigger loan from the same loner. The quick ration is obtained through the addition of the accounts receivable, the cash and cash equivalent with the marketable securities whereby, the total sum is divided by the current liabilities.
Debt to equity ratio indicates the relative equity that belongs to the company’s shareholders equity in combination of the debt a company has been in a position of acquiring to finance its assets to work accordingly (Mehta & Hirschheim, 2007). This type of a ratio is mostly termed as the risk leverage a company has to incur in its operations of expanding the business to higher heights. To obtain debt to equity ratio, the total debt that a company has acquired is divided by its equity. This will therefore, give the financial leverage of the company as a whole and corrections will be done on the right places.
Return on equity will best give the required return to the company’s interest by measuring all its efficiency of a company on how profit is given to the shareholders on each unit. It can best be tabulated by dividing the net income with the shareholder equity of the given company to ensure the returns are equal to the fiscal year net income. This is a ratio that is given in percentage terms; thus, also referred to as the return on investment. It can be given by tabulation of the Net Income that is divided with the Total Assets.
Stability of the revenues will have an impact on the success of the merging companies such that the more stable their revenues, the more profitable the merging venture is due improved profitability. Since both the three companies have stable revenues, they are likely to take advantage of the synergies created by the merger to increase their profitability.
The nature of the companies, whether public or private, affects the success of the merging process. For public companies, the process of merging usually becomes complicated since it involves government bureaucracies and processes which often take long time to reach conclusions. In addition, some government entities are usually guided by some laws and regulation that requires the parliamentary not to continue with the merging process. For the private companies, the merging process becomes relatively easier since the ownership of the companies is in private hands with main focus driven by profits. This is quite different for public listed companies since the government is also highly concerned on other factors such as the loss of employment and environmental impact of such mergers. Since all the three targets are privately owned, the process of merger is simple and faster due to less bureaucracy involved.
Maturity age of the firms also determines the success of the firm, such that the firms at their maturity level are likely to carry out successful mergers than firms at their advanced stages. Firms are maturity level are have reached their final stage of their growth and have nothing left apart from forming mergers and acquisitions to form multinational corporations. Since all the three firms are at their maturity levels, it becomes simple and profitable for them to form mergers that they will use to benefit from opportunities that come from globalization.
The geographical location should always be considered for firms intending to form mergers since it determines the level of market penetration of the proposed merger. Companies that are located in different places have more capability to increase their market presence that those companies located in the same geographical location. The fact that these companies are located in different locations enables them to form strategic partners for merger that would result into increased market presence.
The nature of the business model also affects the success of the merger, such that firms with similar business model integrate their business activities easily than those firms with different business models. All the above companies strive to achieve innovation in their businesses, they form potential targets for the merger due to similar business model.
The existence of competitive advantage also has an important role to play in the merger process since such combination of attributes supports the synergies developed (Nogeste, 2010). Since all these merging companies have highly qualified staff, this gives them a competitive advantage necessary for the merger process. In addition, the location of these companies makes it possible for them to attain natural resources that enable them to make their products with lots of ease. All these merging companies also focus on innovation from new technologies such as robotics and information technologies. According to Pillania (2011), the competitive advantage gained from these individual attributes will enable the merging companies to outdo their rivals in the industry and realize more profits needed for the success of the organization.
The nature of the industry, whether regulated or not, determines the success of the overall merger of the organization. According to Nogeste (2010), the technological sector is not much regulated and thus companies have enough freedoms to explore their innovative strategies as long as they are observing the patent and copyright laws. These merging companies have rare patent litigation incidences and this means that they are well prepared in observing their patent and copyright laws. Therefore, the regulation in the technology industry is less likely to interfere with their operations.
According to Basmah and Rahatullah (2014), the size of the merging companies has implications on the financing scheme. All these companies are medium sized companies and this implies that they have moderate influence of the financing scheme. Since the size of the companies is somehow similar, this will highly positively impact the merging process due to similar perspectives.
Both Engility and DJI are highly dependent on one customer, which is the government, for their supplies. On the other hand, the Olive group has a diversified market for their products. In this regard, the three companies are not dependent on one customer since others serve the government while the other serves the general publics. This diversified customer base enable the merging companies to have a diversified market for their products and this reduces the nature of risk due to global market risks.
The nature of contractual relationships with the clients also determines the success of the merging companies. If one of the merging companies have long-term contractual relationships with their suppliers and the other is not, the process of negotiating the contract agreements may become complicated (Cefis, Marsili, & Schenk, 2009). On the other hand, if both companies have short-term contractual relationships with their suppliers, the process of merging the companies becomes very easy and simple. In addition, the lawsuits arising from any company should be determined before the merging process. This is because companies with lawsuits are risky to merge with since the legal battles can result into huge financial and reputational losses for the companies. In turn, this would impact the level of profits realized by the organization. In this regard, it is safe and secure to merger companies which are free form law suits in order to reduce the risks that may result from the legal proceedings.
Part B
Overview of the selected Targets
The above mentioned firms operate in the high-tech industry that is characterized by accelerated innovation cycles, margin pressures, and intensive global competition. In addition, this industry is characterized by complex supply chains. In order to competitive in the high-tech industry, a company has to respond rapidly to the highly changing market conditions and demands and incorporate into their strategies. Therefore, such companies needs to have a an efficient and reliable landscape to support their complex business processes at all time of their operations (Clayton, 2010). Due to the capital intensive nature of the company, it barriers to entry are so high that only few players exist in the market.
The products for these three companies are related to robotic cameras with the potential of providing surveillance to areas that are beyond the reach of human beings. These cameras have the capability of capturing images and video from all the corners of the earth with the aim of improving security and reducing the risks in various types of businesses. These products can also be used in high risks operation such as military operations to provide surveillance and support where necessary.
The business model for the three companies is somehow the same since both of them apply the concept of innovation to create hi-tech products. Both the three companies invest a lot of money in R&D to create cutting edge products that can perform highly sophisticated security surveillance. The In addition, the governance structure of the three companies is also related since they are both headed by the CEO who is supported by various level managers. In the past few years, these three companies have had a strong financial performance with strong asset based and high sale. Therefore, these companies shows strong financial performance and their financial projections are also bright.
Part C
The merger between these companies can also be viewed under various valuation models. The discounted future earnings model can effectively be used to analyze the performance of these three companies in case of merger. The discounted future earning analysis helps to determine the current value of each of the merging companies in accordance to their estimated cash flows. The present value of the future earnings for both the organizations is then calculated for both the companies and the combined firms separately.
Part E
The operations of the company are somehow similar since they both operate in the high-tech industry. The operations of the company are geared towards achieving technological solutions that are capable of providing enough security in the most effective manner. The human resources available for these companies are also similar from the fact that they both employ highly skilled and talented pool of professionals to drive innovation from the companies. In addition, the human resources should develop and maintain a highly skilled manpower to support R&D initiatives. Since these companies have readily available market, their sales provide them with huge financial strength. In addition, these companies are credit worthy and can easily access loans for financial to finance various projects. Security is one of the main concerns for most organizations since breach of it can result into series of losses. In this regard, these three companies operate a strategic business since they have a wide market for their products across the industry. These companies take advantage of the development in information technology to develop their products, leading to improve efficiency in their operations.
Part F
I recommend that merging of these companies will result into positive synergies that would result into increased market presence and improved sales. In addition, the merger between these companies would result into increased talent pool, leading to improved chances for innovation and subsequent development of the company.
Part two
Methods used to assess performance
There are Different methods of assessing the performance of Mergers and acquisition of a given company. They are inclusive of the level of analysis, time dimension that is classified into long-term measurers and short to medium measures (Wang & Moini, 2012). The other method is the complete model that is basically used in the analysis of the logical progression that entails the consideration of the firm performance with its short term acquisition. The integration of the companies will enable the new company to reach its desired target level by ensuring that the desired level is attained for the success of the company. The task level of the new company will be highly increased following the merging of the two companies as the control systems of the company will be well aligned for smooth operations. When the degree of target level is attained by the three organizations in a satisfying manner will be the task level obtained by the merged organizations (Zollo & Meier, 2008). The transaction level will be well improved to ensure that, the company is well encompassed to ensure that the revenue growth is high together with the efficiency of the cost that is incurred in production. This will mean that, the acquired and merged companies are now having a good transaction level that can be measured by the amount of value that is generated by the new company. The value creation is very important as its realization by the new company will aid boost its transaction level that will be a measure of its new value after merging has taken place.
The performance that will be now be evident after the acquiring and merging of companies has taken place; thus, being in a reputable position of clearly the performance of the firm that is newly formed. In a firm there is a variation that mostly occurred during the time of relevance when the business plan was to be executed is also used in the definition of the company’s level of performance and its credit worth. When the performance is at a high level, the rating of the company’s level will be higher compared to other type of business.
When dealing with the matters of time horizon there are different classification that are followed inclusive of the long term measures together with the short to medium measures that are followed to ensure time is not wasted anyhow rather should be used for the well-being of the company. The period of implementation will be covered by the completion of transaction that is needed to be covered by the firm in combination of the consequent creation (Wang & Moini, 2012). The quality of the conversion of the information technology and t effectiveness of the knowledge e that ought to be well transferred defines the short to medium measures that ought to be employed for the job to be well done in the given company. The retention of the employees in the new company will a long term measure that the company will have to use in ensuring that when workforce is maintained things will be all right (Weber & Shlomo, 2012). Customers, suppliers and the business partners is a task that has to well-coordinated by the entire formed company only if it deems them necessary to it. If need be, the relationship of the partners with the new company ought to be well improved to ensure that, the company’s performance will be at the fore front.
Complete model considers the company’s short term and its performance over a long and the short period of time with the aim of acquiring the returns and stock over a short given period of time. When the transaction period has been announced, the company is required to give its stock analysis over that given time to ensure the model of acquisition is completed. When dealing with the completion of the long term windows, knowledge of what happened during the integration period has to be incorporated following that it is of great use to the acquisition and the merging program of the company. The success of the strategic move evident in the merging program is also analyzed by the market because the market will have a direct effect after the merging of the companies has been done (Vu, Shi & Hanby, 2009).
Execution problems
The main execution problems that may fail the process of merger and acquisition are inclusive of; under communication, missing momentum, information issues that are addresses too late, unclear financial expectations, unclear strategic concept and the master plan that might be missing (Wang & Moini, 2012). The new organization structure might have high compromises that might interfere with the functioning of the company; thus becoming a problem that might result from the merging and acquisition a company. When a company has done the acquisition and merging the integration of the companies ought to be the shortest possible because of delayed loss may be highly incurred as a result. When problems are evident, the potential that is used in the building of the synergies is therefore not maximized and this also leads to the destruction of the share-holders value on the same company (Zollo & Meier, 2008). Momentum that is obtained early will tend to produce acquisitions that are successful; whereas, those which do not obtain early momentum will tend to suffer loss. The deal of acquiring the mergers depend on the execution that is put forth to ensure that the acquisition process is smoothened (Schief et al, 2013). Different cultures accompanied by different management styles will be prone to bring out.
Integration imperatives
The integration imperatives explained by the Arthur are the urgency imperative and the execution imperative. The mergers that will prove to have a high progress will be the one that the market will easily trust to operate with for its growth and prosperity. The management with highly recognized actions will be at a high consideration by the company that is out to acquire the acquisition process (Arthur et al, 2003). The highest prioritized projects have to be won quickly to create a good impression to the investors that value is being created in the company that they want to acquire. There ought to be a very high urgency inclosing of underused facilities that may be the source of los to the company’s. Investors will be highly in need of knowing the value they will attain after attain the best out of the management.
Execution plan with metrics
The extent of the execution plan has an important role to play in the success of the merger and acquisitions. For proper integration to take place, it is necessary to set expectations regarding the merger in order to determine whether the merger is a success or a failure. The management can decide to set a particular financial target, say 30% profits, to be realized after the merger of these companies has taken place. creating such a blue print for the organization enable the teams involved to work hard with the aim of ensuring that such a dream is realized. The execution plan should be developed such that it can easily show results as quickly as possible to demonstrate confidence in maintaining business momentum and continuity (Schraeder & Self, 2003). The execution plan should also focus on gaining and retaining more customers than the individual companies had. In this regard, a proper target of the customers can be set, which is above the individual companies, so that assessment can be made later concerning the number of new customers acquired.
Execution plan to prevent M&A problems
Execution plan can adequately be used to prevent the problems identified in the post-merger integration. During the execution, proper communication should be enhances using the right channels and media in order to ensure that all issues are ironed out in good time (Wang & Moini, 2012). In addition, the execution plan needs to entail realistic and clear financial expectations to avoid failures due to unrealistic financial projections. The new organizational structure should also be arranged that it incorporate the managerial aspects of the merging companies and allow for proper communication flow within the organization. The organization should also create a master plan to help establish the momentum needed for the success of the organization. According to Zollo and Meier (2008), all the people involved in the execution plan should be fully committed and should be ready to follow the clear strategic concept set by the organization. All the execution plans should have set timelines in order to ensure that all the issues are addressed within good time.
Reference
Adomako, S., Gasor, G. K., & Danso, A. (2013). Examining human resource managers’ involvement in mergers and acquisitions (M&As) process in Ghana. Journal of Management Policy and Practice, 14(6), 25-36. Retrieved from http://search.proquest.com/docview/1503084748?accountid=45049
Arthur, B., McDonald, T., & Herd, T. (2003). Two merger integration imperatives: Urgency and execution. Strategy & Leadership; 31, 3; ProQuest Central
Antila, E. M., & Kakkonen, A. (2008). Factors affecting the role of HR managers in international mergers and acquisitions. Personnel Review, 37(3), 280-299.
Cefis, E., Marsili, O., & Schenk, H. (2009). The effects of mergers and acquisitions on the firm size distribution. Journal of Evolutionary Economics, 19(1), 1-20.
Clayton, B. C. (2010). Understanding the unpredictable: Beyond traditional research on mergers and acquisitions. Emergence : Complexity and Organization, 12(3), 1-19. Retrieved from http://search.proquest.com/docview/847014363?accountid=45049
DivyaPriya, B. (2012). A study on impact of mergers and acquisitions in the growth of total assets and profits of selected merged banks. Sumedha Journal of Management, 1(2), 90-96. Retrieved from http://search.proquest.com/docview/1339409324?accountid=45049
Dorata, N. T. (2012). Determinants of the strengths and weaknesses of acquiring firms in mergers and acquisitions: A stakeholder perspective. International Journal of Management, 29(2), 578-590. Retrieved from http://search.proquest.com/docview/1020619654?accountid=45049
Fairfield-Sonn, J., Ogilvie, J. R., & DelVecchio, G. A. (2002). Mergers, acquisitions and long-term employee attitudes. The Journal of Business and Economic Studies, 8(2), 1-16. Retrieved from http://search.proquest.com/docview/235797496?accountid=45049
Malik, M. F., Anuar, M. A., Khan, S., & Khan, F. (2014). Mergers and acquisitions: A conceptual review. International Journal of Accounting and Financial Reporting, 4(2), 520-
Mehta, M., & Hirschheim, R. (2007). Strategic alignment in mergers and acquisitions: Theorizing IS integration decision making. Journal of the Association for Information Systems, 8(3), 143-149,151-174. Retrieved from http://search.proquest.com/docview/198830538?accountid=45049
Nogeste, K. (2010). Understanding mergers and acquisitions (M&As) from a program management perspective. International Journal of Managing Projects in Business, 3(1),
Rossi, M., Shlomo, Y. T., & Raviv, A. (2013). Mergers and acquisitions in the hightech industry: A literature review. International Journal of Organizational Analysis, 21(1), 66-82.
Schief, M., Buxmann, P.,Prof Dr, & Schiereck, D.,Prof Dr. (2013). Mergers and acquisitions in the software industry. Business & Information Systems Engineering, 5(6), 421-431.
Vu, D. A., Shi, Y., & Hanby, T. (2009). Strategic framework for brand integration in horizontal mergers and acquisitions. Journal of Technology Management in China, 4(1), 26-52.
Weber, Y., & Shlomo, Y. T. (2012). Mergers and acquisitions process: The use of corporate culture analysis. Cross Cultural Management, 19(3), 288-303.
Wang, D & Moini, H. (2012). Performance Assessment of Mergers and Acquisitions:
Evidence from Denmark. E-Leader Berlin.
Zollo, M & Meier, D. (2008). What Is M&A Performance? Academy of ManagementPerspectives, pp55-77
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1.Why was this case so important?
2.Why did the U.S. Supreme Court develop the “effects on interstate commerce” test?
3.Is most commerce considered “interstate commerce”? Why or why not?
SAMPLE ANSWER
Interstate Commerce
The Commerce Clause of the United States Constitution states that the Congress shall have the power to regulate interstate and foreign trade. The case was so important since commerce clause had never been construed in its narrow sense. The clause states plainly that, there is limited power to control trade between people in one country and people outside that country (Brown, and company, 1907,6).
The clause and the economy of the US has progressed and turned out to be very sophisticated. In addition, as soon as the congress engaged in addressing the social challenges in the country, the commercial law was used as the referencing point for any law that was passed. Consequently, the commerce law has developed into a very significant law for the congress for the last 50 years. The clause therefore is now one of the main referencing points for the congress authority (The Baldwin law book co, 1917,3).
Moreover, the commercial clause is very important in the US. This is simply because, a keen look at the US code clearly shows that approximately 700 provisions of the state which affect various issues revolve around interstate commerce. For instance, Supreme Court in United States v. Lopez and United States v. Morrison concluded that a gun possession law and a law concerning sexual violence were not the mandate of the congress to control. In another case Gonzales v. Raich, later confirmed the powers of the congress to control medical marijuana. The court decided that the consequences of the previous cases would be limited. The case of National Federation of Business v. Sebelius, which was challenging the role of a person to purchase health insurance, the court declared that commerce clause did not have a room for such provision. In Sebelius, the Court provided regulations in the instances where people had already chosen to involve themselves in commercial engagements (Washington : U.S. Govt,1910,7).
References
Washington : U.S. Govt. (1910). Hearings before the Committee on Interstate and Foreign , by HathiTrust)Commerce of the House of Representatives on bills affecting Interstate commerce. United States House Committee on Interstate and Foreign Commerce
Identify your selected empirical research problem (HIV and Pregnancy among African teen) and the units of analysis. Include support for these units as being reasonable for comparison and how you would avoid the ecological and individualistic fallacies.
Determine two researchable hypotheses based on your research problem (HIV and Pregnancy among African teen). For each hypothesis, identify the independent, dependent, and control variables. Moreover, estimate expected changes in the magnitude and relations between the dependent and independent variables.
SAMPLE ANSWER
HIV and Pregnancy among African teens
Problem Statement
HIV and Pregnancy among African teen rates are constantly increasing as per the international comparison. The problem leads to school dropout, causes future unemployment among the youth, preterm birth and mental disturbances which results into poor mental health.
Objectives
The objectives of this study are to determine and understand the attitudes and perception of teenagers in Africa concerning early pregnancies in teenagers. The other objective is to determine the understanding of the teenagers concerning sexuality and use of contraceptives to prevent infection of sexually transmitted diseases. This study will contribute to the knowledge concerning HIV and teenage pregnancy in Africa. In addition, the study will pursue the deeper understanding of how the youth perceive early pregnancy and to identify factors in their own view that can prevent this problem.
Researchable hypothesis
The teenagers in Africa do not understand sexuality and use of contraceptives to prevent infection of sexually transmitted diseases.
The teenagers in Africa do not understand the effects of early pregnancies in their own life.
The study will involve qualitative data. The independent variables for the study will include the need to prove fertility, Poor sexual negotiation skills and Poverty. The dependent variables will include Peer pressure from boyfriends or the social networks, the need to prove one’s fertility and Socio economic factors. The control variables on the other hand will include: Pregnant teenagers, Teenage girls who are aged 16-19 years who have never had who had never been pregnant and Teenagers who had a baby while they were teenagers (Bastien, Leshabari & Klepp , 2009.12).
Expected results
The teenagers being ignorant about the consequences of early pregnancy and of having unprotected sex
The teenagers engage in early sex due to poverty
References
Bastien S, Leshabari MT, Klepp KI, (2009) Exposure to information and communication about HIV/AIDS and perceived credibility of information sources among young people in northern Tanzania. African Journal of AIDS Research, 2009; 8(2):213–22. https://www.ncbi.nlm.nih.gov/pubmed/25875572
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According to evidence based practice, hospitals are under pressure from public insurance to provide quality care to minimize re admissions especially for patients suffering from Congestive Heart Failure (CHF). This calls for proper utilization of telehealth technology to improve patient’s outcome. CHF, a cardiovascular complication arises when the heart is unable to pump enough blood as demanded by the body. This results to irregular heartbeat, fluid retention and shortness of breath. The conditions are usually fatal especially among the elderly. With the new trend of telehealth systems, CHF patient will become empowered to manage their symptoms better and improve the quality of life. This is one of the strategies which are aimed at improving smooth transitional processes of hospital care to home care. The move is aimed at reducing the rate of re admissions and emergency department visits by the CHF patients (American Nurses Association, 2010).
Despite the innumerable advantages, there is reduced acceptance of the new technology, which has become the road block for successful implementation of the programs. There are concerns that integration of telehealth systems will interfere with the nurse-patient relationship. This indicates the need to implement a strategy/ action plan which is tailored made for this particular health care facility to ensure that collaborative involvement is achieved. The change model that will be utilized to implement the nursing changes is the John Hopkins Nursing Evidence based practice (JHNEBP).
Change Model Overview
The Johns Hopkins Nursing evidence based practice model was chosen due to its ability to effectively guide the translation of healthcare evidences into practice. The model is characterized by three cornerstones of nursing including practice, education and research. The model also integrates the internal and external factors during transition.
JHNEBP model has three phases commonly referred to as the PET processes; (a) identification of the problem question; b) systematic review of the problem question and research evidence and c) Translation process which includes implementation processes, pilot study, outcomes evaluation and monitoring of the findings. The model provides examples of EBP projects which have been successful, and guides step by step the process for planning and implementing the program.
Telehealth are the best intervention to manage and improve CHF quality of life. However, the use of Telehealth has not developed at the anticipated scale and pace. There are increased organizational, resources/financial, technological barriers and mixed perceptions and evidence of the telehealth have hindered implementation of the system. The research question is “why nursing care interventions coupled with telehealth technology is is increasingly being resisted, even with the increased evidence that it improves CHF patient’s quality of life?”
The Problem in this case is the resistance to care management change by nurses who provide care for CHF patients. The intervention being considered is to establish a tailor made implementation action to reverse the resistance into acceptance of telehealth technology. This is because the technology will empower the patient and simultaneously provide workload relief to the nurses. The intervention will be compared with the conventional standard care. The desired outcome includes reduction of re-hospitalization, ER visits and considerable reduction of CHF care costs. The overall outcome expected is improved CHF patient quality of life and reduction of nurses care workload; thereby increasing quality service delivery.
Step 2: Scope of practice question
Among the non-communicable diseases, CHF is reported to be the leading cause for mortality and morbidity in the industrialized countries. Additionally, it is the leading cause for hospitalization and emergency department visits. Despite the advances in pharmacology and medical care trends, nurses who provide care for CHF are faced with increased workloads (62%) due to the increased rates of re-hospitalization. With no exception, the CHF trend (prevalence and increased medical resource consumption) is projected to increase by five folds if no intervention is put in place (Dearholt &Dang, 2012).
According to literature, effective disease management requires the patient to be actively involved in disease management and decision making processes. Unfortunately, patient empowerment has been lagging in CHF disease management system for a long period of time; thus the increased re-hospitalization incidences. The introduction of telehealth technology is important because it facilitates frequent communication between the patient and the care provider; the ability to monitor health at home increases patient’s health outcome (American Nurses Association, 2010).
Steps 3, 4, and 5: Team
For a study to have an impact on the health policy, communication with the relevant stake holders (who are directly affected by the transition) is very important. In this context, the stake holder’s participants include; Advanced community nurse, Nurse CHF service managers semi-clinical staff (includes telehealth installers), General practitioner, and Organizational commissioning managers.
The varying stakeholders were chosen because each group has values which seem important. For example, the physician is concerned with patient safety and quality care delivery; whereas organizational commissioning managers are concerned with system efficiencies at a low cost of operational cost. By involving the stakeholders, the negative perceptions and doubts about telehealth technology will be addressed; and could result to changes of ideas position from negative grounds to a neutral one.
Evidence
Steps 6 and 7: Internal and external search for evidence
Four patterns of nursing research evidence influenced the internal search for evidence. This includes empirical evidence which is based on scientific research; ethical evidence based on nurse’s perception, cultural competency and preferences; personal evidence and aesthetic evidence. Empirical evidence indicates that two thirds of the healthcare providers are not willing to integrate telehealth care due to uncertainty on assessing patient’s suitability, and the difficulty in prediction of the patient’s response to the technology (concerns of depression and anxiety). Again, there is limited data which is relevant to telehealth patient outcomes coupled with the mixed published evidence reduced the acceptance of the new trend. Ethical evidence is discerned through limited referral, implying that only the patients of certain economic status can enjoy the privileges. There are also concerns on impact of the technology on nurse’s roles especially with the sharing of care delivery with the patient. These evidences highlight the absence of shared visions and telehealth rationale, thus the heightened resistance among the CHF care providers (American Nurses Association, 2010).
The external evidence search includes the legislation and standards. For instance, the public health insurance policies are emphasizing hospital to minimize the rates or re-admission and re-hospitalization. Again, World Health Organization has outlined standards for telemedicine. The importance of telemedicine in ensuring that patient’s safety and quality of care is delivered.
Steps 8 and 9: Summarize the evidence
Analysis of data generated from Veterans Health Administration (VHA) on Home Telehealth program indicated a 25% reduction in length of hospitalization days and 19% less re-admissions. Data generated from the Center for Connected Health (CCH) program which has been offering cardiovascular patients care intervention indicates 84.7% success in CHF management while undertaking the program. Another remote monitoring program I Ontario Telemedicine Network which had 800 patients with CHF indicated 65% reduction in hospital admission and 72% reduction on emergency visits (American Psychological Association, 2010).
Lawton (2010) acknowledges the importance of telehealth technology. However, the prevailing barriers impede successful integration of new trend in the healthcare sector. Paul and colleagues (2010) evaluations produces comparable results. This includes 27.1% readmission reduction and reduction of ER visits by 38.3%. The study concludes by pinpointing cost effectiveness as the key challenge for the program implementation in most healthcare settings.
Baker and Colleagues (2010) evaluations on the role of telehealth in managing CHF disease indicated a 15% mortality rate reduction, and 18% ER visits reduction. Brewster and colleagues found out that increased staff resistance as the main barrier for integration of telehealth system. The paper recommends future research on cost effectiveness and nurse workload reduction.
Step 10: Recommendations for change
The largest challenge in the implementation of telehealth is staff resistance to change. The results indicated that staff acceptance is critical for telehealth to be integrated; and is a research area which has been largely neglected. Until the innovation is viewed as better than or superior than conventional care, challenges on implementation will persist. In this case, it is not a question of replacing the technology face to face with the conventional approach, but rather according the staff support demand which ensure that their skills are improved, which will further change judgment and knowledge.
Further translational research to ascertain the benefits of the innovation would be effective in overcoming the barriers. Where most of them focus on training; the training scope should be expanded to include ways to retain and to refine strong staff-patient interaction and training on equipment use. These processes will empower staff; that in turn will empower the patients. The computer based hybrid models should entail staff training, lessons on home monitoring, and access to specialist and in person patient care which will change nurse’s perception on telehealth.
Translation
Steps 11, 12, and 13: Action plan
A computer based training module will be implemented. This module will contain all the hospital policies and protocols regarding evidence based practice. The exact model is the Continuous Quality model; FOCUS-PDSA. The action steps include (Dearholt &Dang, 2012):
Step 1: Find the underlying root for telehealth resistance by the staff
Step 2: Organizing committee and relevant stake holders to preside over the identified barriers
Step 3: Analysis and clarification of the underlying concepts
Step 4: Understanding the barriers and analyzing the discrepancies
Step 5: Recommendation of solution: Computerized training model
Step 6: Implementation of the solution recommended
Step 7: Evaluation of the outcome.
Steps 14 and 15: Evaluating outcomes
The outcomes evaluation will be conducted after 12 months. Evaluation will not be limited to this stipulated period. This is because interventions outcomes may not be immediately realized within the short term duration (Dearholt &Dang, 2012). Evaluation will include measuring the percentage or re-hospitalization, emergency department visits rates, and the mortality rates in two groups, the intervention group and control group. Additionally, evaluation tools such as 4 Likert scale will be used to evaluate nurses and patients responses.
Steps 16, 17, and 18: Implementation
Implementation of the action plan entails integration of online computer based practice. The first part of the module will have the prevalence rates of telehealth resistance and its clinical implications. The second part will highlight the procedures for telehealth, including the risky behaviors associated with poor telehealth practices. The implementation of this strategy is necessary because it will ensure that the novice’s nurses and new employees learn about safe telehealth process. If the strategy is found to be successful, it will be integrated in other departments. This model is chosen due to its efficacy, it is time conscious, easily accessible and can be retrieved on demand and at any location (Dearholt &Dang, 2012).
Conclusion
As indicated from the study, growing number of systematic reviews indicates a range of improved outcomes of normal care. The practice question was on how to address the increased resistance of integrating telehealth technology in management of CHF patients. The research evidence indicates reduced re-hospitalization rates, reduced mortality, reduced ER visits, which results to reduced quality of care. The study translation includes the implementation of nurse led computerized coaching on the approaches to manage the telehealth procedures. This strategy is aimed at improving nurse’s clinical judgments, reducing nurse workloads; and to simultaneously, improve CHF patient quality of life.
References
American Nurses Association. (2010). Nursing: Scope and standards of practice (2nd ed.). Silver Spring.
American Psychological Association. (2010). Publication manual of the American Psychological Association (6th ed.). Washington, DC:
Baker, LC. Macaulay, D S., Sort, A., Diner, M., Johnson, G., Birnbaum, G. (2012). Effects of Care Management and Telehealth: A Longitudinal Analysis Using Medicare Data. Journal of the American Geriatrics Society 1: 1560–1567
Brewster, L., Gail M., Wessels, B., Kelly, C., & Hawley, M.(2013) Factors affecting frontline staff acceptance of telehealth technologies: a mixed-method systematic review. Journal of Advanced Nursing 1: 660–667
Dearholt, S. L., & Dang, D. (2012). Johns Hopkins nursing evidence-based practice: Model and guidelines (2nd ed.). Indianapolis, IN: Sigma Theta Tau International Lawton, G. (2010). Telehealth Delivers many benefits, but concerns linger. PTin motion journal.
Paul, YT. , Gregory, Pecina, J., Stroebel, R., Chaudhry, R., Shah, N.D., & Naessens, JM. (2010). A randomized controlled trial of telemonitoring in older adults with multiple chronic conditions: the Tele-ERA study. BMC Health Services Research 10: 255
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Open door policy in Australia with regard to the reception of Refugees fleeing war torn regions or political turmoil in their countries
Order Instructions:
1. Please read the attached stimulus reading.
2. Write a response to the stimulus reading, arguing for or against the points made. (275 words).
3. Ensure that you make reference to any relevant news articles or academic publications to strengthen your argument.
4. All sources must be referenced correctly.
SAMPLE ANSWER
Open door policy in Australia
Australia should not have an open door policy in Australia with regard to the reception of Refugees fleeing war torn regions or political turmoil in their countries (Australian Government, 2015). This is because it puts at risk the country’s security and also the welfare of its citizens. The Australian government owes a duty of care to it citizens first of all and then everybody else should come second. Taking in refugees’ costs a lot of money and the process is prone to abuse if it happens to be completely open.
I think the off-shore processing regime is effective in that it helps to resettle the refugees while concurrently averting a larger problem of tension between citizens of the country and a swelling number of refugees who would begin putting pressure on current resources. By processing them off-shore Australia also manages to help them resettle away from the danger that lies in their home country while giving them some degree of independence (Australian Human Rights Commission, 2014).
Assylum seekers should be offered temporary protection for a set period of time that is determined by the severity of the danger involved. During this period of protection a more permanent solution needs to be worked out with input from the asylum seekers concerned regarding how they can regain their independence (Phillips, 2014).
The Liberal party approach fits better under the ‘status quo’ category since it seeks to maintain a distinction between the refugees and the current residents of Australia. The ‘turning back the boats’ initiative is well aligned with this concept. The idea of the greens to have Australia take in much more refugees is closer to changing the situation since it will be much easier for asylum seekers to get into Australia as refugees without facing any major legal hurdles (Liberal Party, 2014; The Greens, 2015).
In the personal essay you will write your life experience, why you chose to come back to school which is the assoc RN PROGRAM. Im now a LPN. and what you expect to get from your education.In this essay, you will analyze and evaluate your personal beliefs, goals and expectations including educational and professional outlook,business and personal encounters and career transformation. this paper cannot be plagiarized
SAMPLE ANSWER
Growing up, I could never picture myself doing anything else but becoming a nurse. My mother was a nurse and my grandmother before that. I would listen to their touching and inspiring moments that happened to them daily, as well as, the heartbreaking experiences that they faced. This real human connection made me fall in love with the idea of becoming a nurse. I would like to use my skills to help patients in the recovery process.
My first opportunity to personal interact with patients came when I was in high school where I worked as a volunteer at a skilled nursing facility. When I first stepped onto the floor, the smells and sights of deterioration caused by aging overwhelmed me, at that moment I started doubting whether I was meant for this line of work. However, my perceptive started changing as I interacted with the patients. Whether attending to their needs or transporting them, I realized that most elderly people avoid having eye contact and never spoke unless when it was really necessary. This became my biggest challenge, because how would I know what they wanted, how they felt if they did not speak. I visited the patients on a weekly basis over the next year. This helped me to gain experience and learn to approach the elderly patients. Surprisingly, many of them found me to be so friendly and began looking forward to seeing me.
As I worked in the facility, I came across several experiences that have had an impact on my career as a nurse. I remember there was this day that I saw a certain nurse speak and treat the elderly in a dehumanizing manner. This enormously disturbed me. That day I left and began crying. For heaven’s sake, these were old people and all they needed was proper care and concern. Nurses should just view their work as a calling not as a job. Through my exposure, I recognized that compassion and sensitivity are as integral to healthcare delivery as is medical knowledge.
In response to my desire to acquire knowledge about the medical profession, I spend my college breaks standing side by side with operating physicians. The intense and critical nature of the medical atmosphere has broadened my perspective to the qualifications and characteristics that nurses mostly possess. For example, I realized that most decisions made by the doctors are critical to the life of the patients. The decisiveness and intensity with which the physicians must respond to medical cases is not only appealing to me, but also part of my core characteristics. I like responding quickly to challenges.
I decided to join the school to continue my involvement in research in nursing-related activities so that I can enrich and fuel my desire to succeed in my goal of becoming an asset to my country. I never want to stop learning. I always want to be well equipped to help anyone who needs me. Furthermore, nursing is a profession where one never stops learning. When practicing, I learned a lot of things that made me feel incompetent as a nurse. I challenged myself on what I knew and found out that it was not enough to help me attended to the patients confidently. Joining school happened to be the best choice. This is one of the best decisions I have ever made in my life.
I am grateful for the experiences that I have had so far. I cannot imagine pursuing any other career path at this time.
I believe in motivation as a key for a successful career as a nurse. I consider myself to be an extremely motivated individual. My parents instilled in me values of strong work ethic and responsibilities that one should incur to enhance their goals, motivations, and dreams. Therefore, when I have a goal to achieve, I dedicate myself until I attain the task. This extends my aspirations as a nurse. I feel that as an emotional and intellectually capable individual, I have a calling to dedicate myself to helping others.
I intend to establish a Skilled Nursing Care Facility where residents staying in the facility will receive necessary medication, administered by the nursing staff, and overseen by a Medical Director. The patients will be encouraged to take part in physically non-demanding activities to improve their sense of connection and speed up their recovery (Oermann& Gaberson, 2014, P.57). My facility will focus on offering respectful and nurturing care. We also offer a more humane, but still a medically-qualified, option to ensure that we provide standard medical procedures.
All I would like now is to graduate to get to the point where I can always have the skills and knowledge to be there for people. I just want to see my childhood dreams come true. I cannot wait to show my gratitude to all those who have been there for me throughout this journey. I believe with care, understanding, determination and inspiration I will be one of the greatest nurses our country has ever seen.
What are the causes of poverty in Sub- Saharan Africa
Variables, Hypotheses, and Relations;what are the causes of poverty in Sub-Saharan Africa?
Order Instructions:
Variables, Hypotheses, and Relations
This week’s Discussion will assist you in starting the Final Project. This is the only Discussion in this course that relates directly to this assignment. Ensuing work on the Final Project will be done as written assignments submitted to the Instructor for evaluation.
To prepare for this Discussion:
• Review Chapter 3, “Elements of Research” in the course text Research Methods in the Social Sciences, as well as the quantitative sections of Chapters 2, 3, 5, 6, and 7 in the course text from RSCH 8100, Research Design: Qualitative, Quantitative, and Mixed Methods Approaches.
• Review the Final Project Description document, located in the Learning Resources.
• Select an empirical research problem to focus on for this Discussion and, in turn, for the Final Project.
• Identify the units of analysis. How can you support that these are reasonable items to compare? How can you avoid the ecological and individualistic fallacies with respect to units of analysis?
• Determine two researchable hypotheses for the research problem you have selected and the independent, dependent, and control variables for each hypothesis.
• What changes in magnitude and relations do you expect between the dependent and independent variables for each hypothesis?
With these thoughts in mind:
Post by Day 3: 2 or 3 paragraphs in which you do the following:
• Identify your selected empirical research problem and the units of analysis. Include support for these units as being reasonable for comparison and how you would avoid the ecological and individualistic fallacies.
• Determine two researchable hypotheses based on your research problem. For each hypothesis, identify the independent, dependent, and control variables. Moreover, estimate expected changes in the magnitude and relations between the dependent and independent variables.
When appropriate, be sure to support your postings and responses with specific references to the reading(s) and/or video program(s) and use APA format.
SAMPLE ANSWER
What are the causes of poverty in Sub-Saharan Africa
Week1RC
Research topics will vary from one to another and will depend on the situation and the needs of the researcher. Through research, it becomes easy to understand various dynamics or situations at hand. Research involves different concepts and process that researchers need to understand and embrace.
The empirical research problem identified is ‘what are the causes of poverty in Sub-Saharan Africa?’ In this research problem, the unit of analysis is the communities that reside in Sub-Saharan Africa. Units of analysis in this matter are the major entity the study seeks to analyze (LaFountain & Bartos, 2002). Community in Sub-Saharan Africa is the unity of analysis. Individualistic and ecological fallacies may lead to errors in the study. Ecological errors arise because of reasoning about differing units of analysis where by data generated from individuals is used to draw conclusions on a group (LaFountain & Bartos, 2002). To avoid such errors, the researcher should ensure that the data generated from the group is used to draw conclusions on that particular group but not on specific individual. For instance, in this case, the conclusions derived from the study should state that the community is power as whole because of reasons they found out.
Hypothesis that related to this topic include:
Ignorance contributes to increased cases of poverty in sub-Saharan Africa
Dependent variable is ignorance while independent variable is increased case of poverty while controlled variable is similar to Independent variable. These two variables are related since they affect each other. The expected change in magnitude is average. Increasing level of literacy will reduce poverty to some level but is not a guarantee.
Poor governance causes poverty in Sub Saharan Africa
In this second hypothesis, the independent variable is poor governance while dependent variable is the causes of poverty. Controllable variable is governance. Similarly, the independent and dependent variable have closer relationship in the sense that they affect each other. The change in magnitude between the two is expected to be higher because is there is good governance, is possible to formulate possibilities that can drive the region forward and help eradicate poverty.
Provide two examples in which traditional assessment is used.
Multiple-choice or matching
Essay
Other
Replace each with an authentic assessment.
Design four assessments that align to standards and instruction.
Identify each assessment as summative, formative, standardized, or self-assessment.
SAMPLE ANSWER
Traditional Versus Authentic Assessments
Various methods exist for teachers to assess their students. Assessments help teachers to understand better the current knowledge of students. The two commonly assessment methods are traditional and authentic.
Traditional assessments methods widely used include short answers, essays and multiple-choice tests and true and false tests. In true and false test, students are given two options to make the right decision depending on the question asked (Dikli, 2003). Multiple choices test allows students to select one correct answer in a list of options provided. Essays are flexible and help to assess higher order learning skills of students. These traditional assessments can be replaced or substituted with authentic assessment which allows learners to relate instructions to real world experiences. The two example of authentic assessment includes portfolios and projects. Portfolios allow students to display their work to determine whether they have mastered skills to handle certain task. It helps to assess the capability of student to self reflect, and to make correct judgment. Project as well allows the learners to display what learners know about a topic, as it requires one to apply related concepts and prior experiences.
Standards defines what learners should know, understand and be able to do while instructions provide framework on how to effectively teach that which learners should know (Jones, 2002). Therefore, teachers can design different assessments that align to the standards and instructions. Examples of formative assessment are to ask students to draw a concept map to represent the way they understand the topic. This assessment aims to identify areas of weaknesses, make improvement, and have low point value. Example of summative assessment is to ask the learners to take a midterm exam. This assessment is high value and aims at assessing learning progress at the end of the term. Example of standardized assessments is the queries designed by an expert or a teacher and aim at testing specific abilities of the learner such as during admission to a certain grade. The learners are given time limit to respond to them. Example of self-assessment question is where a learner develops own questions and solves them. It aims to assess an individual capability in certain area.
References
Dikli, S. (2003). Assessment at a distance: Traditional vs. Alternative assessments. The Turkish online journal of Educational Technology, 2(3), 13-20. Retrieved from: http://www.tojet.net/articles/v2i3/232.pdf
Jones, T. (2002). Options and Considerations for Distance Education: Learner Assessment and Self-assessment,(3)3. TOJDE (Turkish Online Journal of Distance Education). ISSN 1302-6488 Available at:
As mentioned in the previous papers that I submitted, this papers are all connected and the same company will be use throughout the entire course . The writer must pay attention to that and continue to note that some of the information will also be carry forward to the next paper. For this paper, the writer will have to follow the instructions included hear below to respond to the questions raise at the end of the instructions. the writer will use pear-review articles to support the facts in the paper.
When planning a vacation, you may do research on a variety of external factors that can impact the quality of your trip. Some of these factors, such as transportation costs and flight delays or road construction, will have a similar impact on the plans of a large number of travelers. Others, such as the expected weather conditions and location of attractions, are related to the specific area in which you plan to vacation.
Like travelers planning for a trip, organizations must carefully monitor the external environment in which they plan to operate. Organizations have a number of tools to aid them in doing this successfully. A General Forces Analysis encourages organizations to examine broad trends and forecasts that could potentially impact a broad range of organizations. Porter’s Five Forces Analysis allows organizations to more closely examine external forces that may impact profitability, which are closer to the specific organization. Taken together, the results of these analyses provide a comprehensive picture of the external environment of a specific organization.
To prepare, review this Learning Resources at the bottom of the page. Begin searching for scholarly peer-reviewed resources on General Forces Analysis.
(Note: You will also use the General Forces Analysis and Porter’s Five Forces Analysis in Part I of your SSP.)
Prepare both a General Forces and a Porter’s Five Forces analysis of the industry of the organization you selected for your SSP (Apple Inc.). Your total response should be 4 minimum paragraphs.
– Using General Forces analysis, identify trends and forecasts in each of the five categories of forces in the industry environment in which your organization exists.
– Explain the impact of these trends and forecasts on the industry.
– Next, using Porter’s Five Forces analysis, identify external forces that might impact the organization’s profitability and why.
– Identify potential opportunities or threats created by these five forces. Justify your response.
– Finally, evaluate the utility of General Forces Analysis and Porter’s Five Forces analyses for developing organizational strategy.
– Identify 3–5 opportunities, and 3–5 limitations for each analysis tool.
Extend the conversation by identifying implications for practice or research, as well as for your own research agenda, where appropriate. Be sure to integrate one or two new related, and engaging, questions that will extend the discussion about your paper in constructive ways. Try to think of a question that will engage your peers in critical analysis and thinking about your organization, which may provide insight for your use as you continue preparing your sections of the major Weeks 4 Sustainable Solutions Paper (SSP) due in this course.
Your response should have proper APA citations and adhere to all guidelines of APA style.
Resources
• Harvard Business School Press. (2005). Strategy: Create and implement the best strategy for your business. Boston, MA: Author.
o Chapter 1, “SWOT Analysis I: Looking Outside for Threats and Opportunities” (pp. 1–15)
The chapter briefly describes the concept and components of Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis before turning to the examination of threats and opportunities in the external environment. The authors stress the importance of examining the external environment. They identify specific elements to examine in an external analysis. These include work and lifestyle trends, customers, price sensitivity, and elasticity of demand, competitors, and emerging technologies. The chapter closes with a brief discussion of Porter’s Five Forces.
o Chapter 2, “SWOT Analysis II: Looking Inside for Strengths and Weaknesses” (pp. 17–28)
The chapter begins by describing the purpose of internal analysis before addressing three specific areas for consideration during such an analysis. The authors provide guidelines on how to analyze competencies and rate them against those of competitors. They also delineate aspects of financial performance and company culture that should be considered during internal analysis. They close the chapter by presenting a specific model for conducting internal analysis.
o Chapter 3, “Types of Strategy: Which Fits Your Business?” (pp. 29–46)
The chapter describes four broad strategies commonly implemented by organizations: low cost leadership strategy, differentiation strategy, customer relationship strategy, and network effect strategy. The authors provide examples of organizations that have successfully implemented each strategy. They also explain several means by which each strategy may be successfully implemented. The chapter closes with an explanation of how to choose the best strategy.
• Dasgupta, M., Gupta, R. K., & Sahay, A. (2011). Linking technological innovation, technology strategy and organizational factors: A review. Global Business Review, 12(2), 257–277.
Dasgupta et al. (2011) states the essence of business growth in technological innovation and successful management lies in skillful allocation of resources to enact technological change. The authors summarize research in the area of technological innovation and technology strategy and present a relationship between the organizational factors supporting technological innovation and technology strategy. Additionally, Dasgupta et al. presents practical implications and a direction for future research
• Kaplan, R. S. & Norton, D. P. (2008). Mastering the management system. Harvard Business Review, 86(1), 62–77.
Kaplan and Norton (2008) propose a five-stage process for defining and implementing strategy, with implications for assessment via metrics and results.
• Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1), 78–93.
This article is a reprise and expansion of the author’s original seminal work. In this modern version, the author updates his original thesis and applies the ideas to contemporary business strategy analysis.
SAMPLE ANSWER
External Remote Environment Analysis
General Forces and Porter’s Five Forces analysis is a tool designed to help evaluate competitive forces and the business strategy suitable for a firm in an industry it operates (Porter, 2008). If the forces in the industry operate wholesomely then it means that the industry is not attractive. The industry becomes more vulnerable if the level of competition is higher. The paper therefore uses Porters five forces to evaluate the industry Apple Inc., operates and not the firm itself. Therefore, on that premise, the assessment as well will apply to other firms in this industry such as IBM, Nokia and others.
Computer and Smartphone manufacturing has become a key sector as the world adapt to new forms of technology. The players therefore, must define their business before there analyze them using the porters five forces (Harvard Business School Press, 2005). The threats and forces in this market will not be similar to those in other markets outside such as Japan and China. The five forces has horizontal and vertical forces that affect and industry and therefore require analysis. Horizontal forces include threat of new entrants, competition in the same industry, and threat of established rivals and substitute products. On the other hand, vertical forces are those that originate from supply-chain or the vertical competition and include bargaining power of suppliers and bargaining power of customers. In summary using General Forces and Porter’s Five Forces analysis, it can be concluded that; the industry has low threats on new entrants, bargaining power of the customers/buyers is low, there is a threat of substitute products, suppliers have much bargaining powers and there is a significant level of rivalry among competitors. Based on this analysis, the industry is open to greater opportunities in future. The fact that the threat to new entrant is low; the company can use this opportunity to increase its sales in future. Bargaining power of buyers is low and therefore, the industry can have an upper hand hence will continue to reap handsomely. Threat to substitutes exists as different companies have products that offer alternative products. The bargaining power of suppliers is high and this is likely to increase the costs of supplies. The level of rivalry is significant hence, the industry is expected to adapt to appropriate strategies to reach to the customers and win over them. As discussed, these trends and forecasts have ramifications on the industry. To ensure that the industry remains competitive, the firms must continue to invest in quality and increase marketing. The industry as well may face an increase number of new entrants if the industry is perceived to be profitable.
Based on Porter’s five analysis, a number of factors may impact on the Apple Inc., profitability. One of the external forces that may affect profitability of the industry is the increased level of competition and rivalry. This will push the company profitability low as the firm adopts strategies to attract more customers. Higher level of bargaining power of suppliers will also reduce profitability on the industry (Narayanan & Fahey, 2005). Other forces include higher bargaining power, and increased number of substitutes. Other forces may include, stiff government regulations among others. Potential opportunities created by the five forces include increased number of customers through increased advertising. The industry is open to opportunity as the market share is yet to be exploited as is low. Threats includes, increase threats of new investors due to the perception that it is profitable. General Forces Analysis and Porter’s Five Forces analyses is used to developing organizational strategy because it provides vital information about the industry. Through this analysis, a firm like Apple gets insights on the industry at large hence can adopt suitable strategies to enable it gain a competitive edge (Apple Case Study, 2012).
The opportunities of these tools include, it is easy to use, and it provides insights about the industry and allows a firm to understand the competiveness of the industry. The limitations of the tool are that it may not provide accurate result because firms in an industry may vary due to circumstances. The tool requires good analysis and it may take considerable time to understand the industry as a whole because of the size. Therefore, this analysis is important and has implication for practice. Apple Inc., can use this information to understand the industry and adopt suitable strategies that can enable it achieve its goals. In such industry, it is expected that the company remains creative and innovative to remain competitive. The two questions that should be considered in this analysis are; does the size of the industry affect analysis using Porters Five forces? How can a firm use the tool to change its weakness into strengths?
References
Apple Case Study (2012). Apple Inc.: The Steve Jobs Effect. The Steve Jobs Effect, 1-16
Harvard Business School Press. (2005). Strategy: Create and implement the best strategy for your business. Boston, MA: Author.
