You might recall from Week 3 the importance of ethical reflection when determining the impact of your actions as a public administrator. Engaging in a similar type of reflection when reviewing literature in the field also can help you determine the possible impact of the latest theories and research on the field of public administration. How might the human rights readings from this week affect your role as a public administrator? Did the readings change your perception of human rights?
For this Assignment, you reflect on your perception of human rights and its role in public administration. You also examine the potential implications that human rights literature might have for public administrators.
The Assignment (3–4 pages in APA format): Your Assignment should include the following:
• A detailed and objective description of the human rights issues presented in this week’s readings
• An explanation of the nature of the issue(s) and its significance to you as a public administrator
• An explanation of what the readings meant to you in the context of your feelings, values, knowledge, and experience
• An explanation of the implications these readings might have for public administrators
• A summary of one of the following:
• What you learned about yourself as a public administrator based on your reaction to the readings
• What you learned about global governance from examining these readings
• Why this knowledge is important to you as a developing public administrator
• How you might apply this knowledge in your future practice
Note: Provide specific examples and cite your references.
Support your Assignment with specific references to all resources used in its preparation. Provide a reference list with all resources included in the paper.
Your Assignment must demonstrate both breadth and depth of knowledge and critical thinking appropriate to graduate-level scholarship. It must follow APA Publication Manual guidelines and be free of typographical, spelling, and grammatical errors.
SAMPLE ANSWER
Human Rights Reflection
Human Rights Reflection
A detailed and objective description of the human rights issues presented in this week’s readings
According to (De Schutter, 2012), it’s possible to achieve self-determination at the national level if the international economic environment can be reshaped, and that internationally recognized human rights provide an effective basis for the realization of this objective. De Schutter presents the ‘double-mind’ problem that indicates the requirements for countries to comply with their human rights commitments at home while at the same time being discouraged from doing so in practice due to the fact that the international environment has not evolved to favor this. Nevertheless, it is very artificial to separate human rights and trade because fair trading provides a basis for fairness in human treatment.
Twiss (2011) also suggests that the human rights movement in all its moral, political and legal aspects provides the most effective basis for a practicable global ethic both in the present and the foreseeable future. This is supported by the contemporary efforts depicted by the movement to intersect explicitly with politics and other areas of international law (Benedek, 2007).
During the initial development of human rights as a branch of international law, it was viewed as an introduction of the Copernican revolution in that through human rights, international law was being used as a regulatory mechanism of state-citizen relations that hitherto were shielded almost wholly from international scrutiny. However, in the contemporary world, there is need for another Copernican revolution in three dimensions: to make possible for use of human rights as a guide of the exercise of the powers of international organizations, to make sure that transnational corporations apply their influential abilities in supporting human rights, and to monitor the influence of measures adopted by states on their national territorial surroundings. There is also a need for development of coordination forms at the international level which have been discouraged by the specialized regimes and organizations. Mitigation of the negative effects of fragmentation is not enough; we need to work towards improving convergence. Finally, we should not be contented with status quo.
An explanation of the nature of the issue(s) and its significance to me as a public administrator
Twiss’s concern is that many globalists tend to overlook the defining similarities between human rights and other spheres of international law because they misconstrue the open-textured nature of human rights and the human rights regime. (De Schutter, 2012) notes that there is need to solve the ‘double-mind’ problem and that it is not enough to guard against violations of human rights in the global economy. Rather, we should plan a transition and slowly transform the structure itself, piece by piece. These issues are significant in public administration because they give insight on implementation of human rights. Public administrators need to develop structures to secure the participation of citizens in public decision-making based on human rights public policies. It is also important for a public administrator to ensure that poor, vulnerable and discriminated people have a say and take part in the public decisions, and not only influential stakeholders. There is need to consider the human rights of the most vulnerable groups in all decisions (Aguilar & Zavala, n.d).
• An explanation of what the readings meant to you in the context of my feelings, values, knowledge, and experience
Twiss’s tactical use of examples of recent human rights developments to show how human rights movement significantly incorporates the goals, norms, and features of global ethics created a reflective encounter with my feelings as to the manner in which the goal of good life for all can be achieved. With regard to knowledge, the readings challenged my deep-rooted misconception that human rights are simply an expression of neo-liberal economic hegemony. I realized that human rights are in fact firmly rooted in relational and mutual understandings of communities and individuals that coordinate strong notions of communal and individual entitlements among present and future generations over all matters relating to survival and flourishing of the entire world. Accordingly, all the readings appealed to my values in the sense that the most important aspect of leadership respect for human rights in the broad sense. These readings also indicated that my professional experience should be tailored in with the promotion of human rights across all dimensions of life.
An explanation of the implications these readings might have for public administrators
These readings might affect public administrators in that they may consider promoting the establishment of social capital and building capacity to enhance the technical and institutional quality of the participation of citizens. The readings might challenge public administrators not to entertain status quo and to take up necessary steps to promote human rights in all dimensions of the leadership. They may be compelled to promote transparency and accountability of the governance process and its results. In essence, public administrators are likely to reconsider the definitive similarities between human rights and other fields of international law.
What I learned about global governance from examining these readings
Global governance greatly affects state-citizen relations and it cannot go unchecked. Effective global governance can best be achieved if human rights are properly incorporated in all its dimensions. This is because human rights inform global ethics due to the fact that human rights movement is well-entrenched throughout the world and it forms a solid basis for democratic leadership and protection of vulnerable groups in the global society.
Benedek W. (2007) ‘The World Trade Organization and Human Rights’ in: Wolfgang Benedek, Koen De Feyter, Fabrizio Marrella, Economic Globalisation and Human Rights, pp. 137-169. Cambridge: Cambridge University Press.
De Schutter, O. (2012). The Role of Human Rights in Shaping International Regulatory Regimes. Social Research: An International Quarterly, 79(4), 785-818.
Twiss, S. B. (2011). GLOBAL ETHICS AND HUMAN RIGHTS: A REFLECTION. Journal of Religious Ethics, 39(2), 204-222.
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For an organization to be successfully innovative, it must be based upon the higher level principles of innovative organizing. Unfortunately, only a limited number of leaders of these high technology companies see the manufacturing process development as one of the main source of competitive advantage. This is why, over the last ten years, trends indicate that more companies are deciding to outsource the manufacturing process to other third party contractors. The reason for such an action is that these high tech companies are trying to avoid the expenses of the manufacturing process as well as having to lose focus on the process of product research and development. They view this research and development to be the major source of competitive advantage. Contrary to this, research conducted in the pharmaceutical industry between 1985 and 1995 suggests that such a view greatly costs organizations as it negatively impacts their competitive health. Different studies support the idea that such high tech companies that encourage the development of organizational capabilities so as to support an innovative, efficient, and effective process development, are better placed to introduce new products faster. This is alongside the higher yields and also the controlled processes that will present the company with a better cost advantage over competitors. With such a step, less capital investment and fewer development resources are usually required, compared to what the competitors will have to apply. Apple has managed to be chosen constantly as the most innovative company in the world. This is because its strategy for innovation is inclusive of amazing new products as well as innovative business models. It always pioneers into untapped business spaces thereby creating new market niches. This is why its innovation strategy is the best to use so as to enable Microsoft/Nokia mobile phones division to also be more innovative. The aim of this report is to properly analyze Apple’s innovation strategy and innovative organizational structure, particularly focusing on the iPhone and iPad products, so as to identify factors that can also be implemented by Microsoft/Nokia mobile phones division to make it more innovative.
Background of Apple Company
Apple Inc., an American multinational corporation, was co-founded by Steven Paul Jobs, Steve Wozniak and Ronald Wayne in 1976 (Finkle & Mallin 2010: 50).Among its best known hardware are the iPhone and iPad products. Research conducted in June 2014 showed that Apple has 425 retail stores in fourteen different countries (‘Event Brief of Q1 2014 Apple Inc. Earnings Conference Call – Final’ n.d.). With an approximate of $446 billion market capitalization, this company is the largest publicly traded corporation in the globe (Mallin & Finkle 2011: 65). In 2012, this company had 72,800 permanent employees who worked fulltime, 3,300 temporary employees working fulltime as well (Sahoo 2012:39). In 2014, its five year growth was registered at averagely 39% for the top line growth and 45% for the bottom line growth (‘Event Brief of Q1 2014 Apple Inc. Earnings Conference Call – Final’ n.d.).
The period between 2007 and 2010 acted as the time when Apple finally started achieving success with its mobile devices. The iPhone and iPpad products introduced innovations in mobile phones and personal computers respectively. With these devices, software applications could only be purchased in a store implemented by Apple, thus the company created a new business model. In mobile phones, touch screens had already been noted before, however, Apple introduced a user interface with specific preprogrammed touch movements that was unique and interesting to consumers (Mallin & Finkle 2011: 66). The cofounders made a great effort to push this company towards attaining an innovative structure. Together, they encouraged innovation as they also innovated, and hired innovative employees. They also had good marketing skills that enabled the public to be informed effectively about the benefits of any newly innovated products, thus sales were boosted within months of release.
The release of the iPhone and iPad products gained Apple great success. This is proof that innovation success goes hand in hand with commercial success. This company managed to increase its customer base by introducing products that would also be important for the newly introduced business model. Therefore, Apple does not rely on specific products, but on unique products, although they perform similar functions. Thus, customers with different needs will always find what they want from the products of this company. As a result of innovation, Apple frequently introduces new products, month after month.
Why iPhone and iPad products can be called Innovative Products
The iPhone and iPad can be referred to as innovative products judging from how the ideas involved in the new product development were noted to be promising. The new product development process will only be successful once there has been a creation and evaluation of the new product ideas. These two tasks can be influenced positively when there is more than one idea and idea creators, when decisions are made as a group and not as an individual, and when there are methods that combine idea creation with evaluation. These three factors can be combined with the aid of idea markets method. This method makes use of virtual idea stocks to act as a representation of new product ideas, enable participants to order and trade stock shares on the virtual marketplace, and thus uses the market efficiency and resulting stock prices as determinants of the likelihood that the new product ideas will be successful (Soukhoroukova, Spann & Skiera 2012: 105).
First, the iPhone and iPad products were generated as a result of many ideas and idea creators, as expected in the idea markets method. This company has employed thousands of employees to work in the different stores around the globe. Therefore, the company has a big number of idea creators, a factor that will also benefit the company as it presents many ideas since each creator will come up with a unique idea for new products. The new product idea quality is important for the commercial success of the final product. However, it is always difficult to choose which idea creator is the best, or what the new product idea should consist of. This is usually as a result of the stochastic nature of creativity, whereby even better ideas may arise unexpectedly where there is actually no demand, and the fact that diversity of skills from the many idea creators may improve the chances that an unconventional new product idea may be developed (Soukhoroukova, Spann & Skiera 2012: 107).
To increase the number of idea creators, Apple Inc. has made it clear that innovation is everyone’s task, and not the task of specific developers (‘DATAMONITOR: Apple Computer, Inc’ 2008:6). Therefore, to make the most of its idea creators, the company makes use of diverse sources including employees, suppliers, customers and researchers (Breen 2014:5). This is very important as all these groups offer important feedback for the organization to use to its advantage. Through feedback from consumers, the company will know what the current trend is all about. This will enable employees to focus on that direction when developing new product ideas. Suppliers and researchers also contribute since during their activity, they can identify a gap in the market. Since this point of having many ideas and idea creators for high quality new product ideas has been achieved, the iPhone and iPad products qualify as innovative products.
Second, Apple has always focused on group decisions rather than individual decisions when it comes to product development. When the different idea creators engage in an exchange of opinions, even better product ideas are developed. This is usually because some ideas may be improved when used alongside other ideas. When it comes to decision making, doing so in a group improves the quality of the outcome. This is because participants may learn from each other, and hence be better placed to understand why a certain idea may not be of quality, and why it should not be implemented. This also makes the decision making process to be accurate in that it will reduce bias. Apple’s iPhone and iPad products are an example of innovative products in that not one individual is involved in the decision making process of the product development, but instead a group of individuals are involved (Castelluccio 2013:59). Hence, these products were developed only after a group of experts decided that the ideas were reliable and promising. If only one person was involved, then the products would not qualify as innovative since the decision making process would have been biased. Eventually, they would not have been as successful in driving the company upwards in its industry. Hence, they are innovative products as they are the result of more than one great idea combined together.
Third, iPhone and iPad, according to the idea markets theory qualify as innovative products since Apple combines idea creation with evaluation (Cusumano 2011:26). Most techniques used in idea generation either support creation of ideas or the evaluation of these ideas. Although participants can be very imaginative when the two actions are separate, a threat is posed whereby creators cannot receive immediate feedback on the ideas they form. It is important to use these two factors side by side as it saves time, reduces costs of screening, and saves resources. Thus, with immediate evaluation and feedback, more time will be saved that can be used for working towards the more quality ideas. Thus, their screening will be more critical and there will be extra resources to be used in the in-depth analysis and implementation of the new ideas. This is what makes iPhone and iPad products to be considered innovative products.
Idea evaluation for the iPhone and iPad that make them innovative products can also be analyzed through the Analytical Hierarchy Process (AHP) approach. This method takes a hierarchical approach to the idea evaluation and decision making processes. A single idea is assessed on multiple criteria before it is structures according to its relative importance (Borade, Kannan & Bansod 2013: 969). The reason why the iPhone and iPad products are innovative products is that Apple ensured to only implement the best ideas brought forward. All ideas cannot be effective for a single product; however, more than one can be used together. Judging from the success of these two products, it is clear that the company took time to identify what the resulting product would consist of, its target market, and its benefits. Since the success was amazing, it is highly likely that only the best ideas were implemented. This is because the target market is highly satisfied with the products being released constantly by Apple Inc. For instance, the iPhone and iPad products were introduced alongside another business model, the app store, that was intended to provide these devices with various applications required (Simmons 2007: 35). Apple saw an opportunity and used different ideas side by side to promote sales while also fully satisfying customer needs.
Apple’s Innovation Strategy Behind the iPad and iPhone
Strategy can be described as an integrated yet overarching approach of how a company intends to achieve its objectives. There are three types of innovation strategy; offensive innovation strategy, defensive innovation strategy and imitative innovation strategy. Apple’s strategy behind the iPad and iPhone is the imitative innovation strategy as the company works towards modifying the already existent products to provide an even more sophisticated and unique product (Davis, Muzyrya & Pai-Ling 2014: 39). Therefore, instead of focusing on creating entirely new products, this company works on identifying areas of improvement and thus works towards promoting these. Thus, the focus is on producing thinner, faster and lighter iPads instead of cheaper hybrid and new offerings. The new innovations made at the current time, will therefore, not lead to the development of new products, but instead will be used to further improve the already available products. For example, the innovations developed for the iPhone 5S are expected to soon be used to further improve the cheaper iPhone 5C (Connolly 2011: 18). The difference is in price and quality as this strategy is supposed to ensure that all customers willing to spend different amounts will be able to get what they need from Apple.
The iPad and iPhone have proven to be the best innovations to drive Apple to commercial success. This happened because Apple was able to implement new product ideas that could be used side by side to facilitate profits. Therefore, the new products were implemented alongside a new business model. Hence, the company was able to use new ways to create, deliver and capture value for consumers. For example, the iPhone is a product that has been matched with the App Store where consumers can go to when they need to purchase software and other applications to customize their iPhones (Maisto 2014: 8). Therefore, the innovation strategy used by Apple is not the development of new products frequently, but the improvement of already available products with the aid of quality ideas. If Apple only focused on new product developments, then chances are high that a similar level of success would not have been achieved. For an innovation to become successful, it must first be acceptable to the customers in the marketplace. Once this happens, the product will sell faster and effectively, thus leading to commercial success. Therefore, commercial success and innovation success may be driven by the New Product Ratio (NPR). The strategy of Apple can be looked at from two perspectives. First, it featured an introduction of new products that were not actually present in the market place. Thus, it attracted a majority of the population as it offered the satisfaction of a need which was not being met by other companies. This is why the innovation became highly successful and, hence commercial success was also achieved.
Another means through which innovation success can drive commercial success is by offering product improvements. This is the current strategy adapted by Apple after the iPhone and iPad were successfully introduced. Instead of working towards other new products, the company has decided to first make use of the available products by introducing new innovations that improve the products (Connolly 2011: 20). When a product is further developed, customers view it as an entirely new product as it may feature newer features and have various capabilities that were not present previously. Thus, the present strategy used by Apple for the iPhone and iPad products is still capable of driving commercial success as it can promote innovation success.
The strategy used by Apple may also be analyzed from how the company is adapting innovation across various industries. So far, these two products have a link in the hardware, software, entertainment, and also logistics (Maisto 2014: 8). So far, the company has managed to master most of the parts of all these industries so as to improve its competitive advantage. In the development of the iPhone and iPad, Apple had a choice of outsourcing some of the manufacturing activities such as software development. However, to improve its profitability, it decided to develop its own software that would be used for the products as operating systems. For instance, the iPhone uses the iPhone operating system (iOS). Most of the applications involved in this product were developed by Apple and not a third party contractor.
Innovations across industries, therefore has a commonality in that in all industries, customers are in search of a product or service that will meet their unsatisfied needs. Therefore, in any industry, a new and unique product that meets an unmet need will flourish. And by providing consumers with everything they need all in one place, the company will be boosting its customer base. Apple managed to grab this new opportunity by introducing the iPhone and iPad and also producing software, entertainment applications and many more that would make these products even more exciting to use. This factor has greatly improved the competitive advantage of the company in that it will appear at the top of all industries as it has more to offer than companies specializing in a specific industry.
Apple’s innovation and design process are usually influenced by commercial, social and political factors. Design is more of invention while innovation is aimed towards implementing this invention. The strategy used by Apple, therefore, is influenced by the above factors in that the company has to adhere to certain rules when developing any new innovation and design ideas. In developing its products, Apple has to consider the commercial, social and political situations first before moving ahead. For example, social influences may be positive in the process of innovation and design as it can provide information on what consumers are really in need of (Castelluccio 2013:60). Therefore, this information will influence innovation and design by providing ideas that can be used to develop new and exciting products. Social influences may also limit innovation towards a specific direction, a factor that is not entirely positive. This is because it may lead to the innovation of similar products with no new ideas, as most consumers will want to purchase a phone with features similar to what was noted in a friend’s mobile phone. Innovation and design may also be influenced by commercial factors such as the enforcement of various legislations and policies. As a result, Apple may realize that it is expensive to be innovative and to come up with a unique design. Lastly, political influences on innovation arise from the fact that innovation is usually considered to be a political aspect. If the research and development process is seen to be promising, the government may offer to fund the innovation and design process. Such an action will definitely be a positive influence on the process as it will not cost the company to indulge in deeper research. This will also promote the innovation policy within an organization.
The Components of Apple’s Organization that made it an Innovative Organization
Apple did not become a successfully innovative company until years after it was founded. There are certain factors that played a major role in making this company an innovative organization. At the beginning, Apple was merely a computer manufacturer. Today, it has developed into a company offering a wide range of products including different consumer electronic devices and a pioneering business model (Edwards 2005: 2). Therefore, there is more to the high performing iMac computer, amazing MacBook notebooks and the multifunctional operating system Mac OS X. All the consecutive new innovative products are what enhance Apple’s share price to increase drastically. In 2000, the increase was $ 12, and in 2010, the increase was more than $ 200 (Finkle & Mallin 2010: 50). Currently, the competitors have found a reason to worry over losing to Apple. This is as a result of its innovation that came about through many factors. First, the company managed to create and implement an innovative culture, compared to the previous situation. Before this implementation, employees worked individually and selfishly (Nussbaum, Berner & Brady 2005: 63). They were not united and hence always engaged in fighting amongst them. Therefore, despite the presence of highly skilled employees, the company could not be productive as a result of the culture which inhibited collaboration. This collaboration is an essential element for innovation.
This situation changed upon the return of Jobs, the co-founder of Apple, in 1997 after being ousted in 1985 (Stone 2011: 39). As the company’s leader once again, Jobs encouraged calculated and well thought increases in R&D spending, and frequent launching of new products and upgrades. It is important to note that Apple did not apply the exact principles of innovation as developed by scholars. Instead, the company developed its own principles, which turned out to be more effective in enabling it to achieve its objective (Stone 2011: 40). Steve Jobs managed to encourage the company employees to work together by clearly educating them on the importance of adapting a product oriented culture. With such a culture, employees understood that they all have a common goal, thus, must work together towards ensuring they get the best results possible. Aside from having an innovative organizational culture, the leadership of this organization has also encouraged the development of an innovative organization. Ever since Steve Jobs, the next leaders have not taken steps to interfere with what he started. Jobs understood that for the organization to become innovative, he had to stir them towards that direction (Hof, Burrows, Hamm, Brady & Rowley 2004: 198). Therefore, through transformation leadership style, Steve Jobs encouraged and supported various forms of innovations presented by employees (‘Apple Inc.: The Steve Jobs Effect’ 2012: 3). He encouraged employees to work on what they love. He made this rule having in mind the fact that innovation cannot happen without passion. Therefore, employees got the opportunity to work on their various ideas and present them for evaluation. This is what resulted to the many innovation products that followed shortly.
Another factor that contributed to Apple’s innovation is how it does not simply focus on customer needs, but focuses on providing for all these needs, alongside ensuring an improvement of the customer experience (Nussbaum, Berner & Brady 2005: 65). This is what happened with the iPhone and iPad products. Therefore, it also relies on creativity and not only customer feedback. This is a factor that has encouraged the company to use different ideas to create ways of promoting customer interactions. The customers experience is very important, as many people look for a product that will make things easier for them. Therefore, the company assumes that customers, at times, may not have a clear idea of what they want. However, by offering them a high quality product that improves their experience, they will definitely like it.
Apple also managed to become innovative through the business model it adapted after implementing iPhone and iPad products. This new App store business model enabled the company to create and deliver value to customers, thus increasing their level of satisfaction (Schlender & Chen 2000: 70). The App Store will not be beneficial to consumers without the iPhone. This is why Apple has designed a model that captures value beyond the product.
Conclusions and Recommendations
From this analysis conducted on Apple Inc., it is clear that innovation requires great effort. There are many factors that have promoted the innovativeness of Apple. First, the company was careful when choosing ideas to implement for new products. To improve the quality of the new product ideas, employees were encouraged to work together and appreciate one another’s inputs by creating an innovative organization culture ad structure. This was very important as it promoted various working conditions that enhance innovation. Second, the company has developed a strategy for two of its most prominent products; the iPhone and iPad. Instead of focusing its innovation on the development of new products for release, the company focuses on the innovation that will improve the already available products. This is in line with the time frame set by the company that within every 10 years a new product must be developed. Therefore, the company is still on schedule, despite the various claims that it is losing its innovativeness. These two products were implemented within the past 10 years, and the current innovations are supposed to improve their quality and hence the quality of user experience. Third, this company had a leader who knew exactly how to achieve innovation. Some of the tactics used by this leader have never been mentioned in any management model, however the result was amazing. Every leader, therefore, must learn to understand the ideas that will work for its organization, just as Steve Jobs did for Apple. For instance, he understood that innovation will need the employees to work together, a factor that was not present in the current culture. Therefore, he decided to show them that they were not competing against each other, but instead they needed one another. This was very important as the organization soon realized that they need to share ideas so as to come up with good and competitive new products.
The Microsoft/Nokia mobile phone, therefore can borrow a lot from Apple’s innovative strategy. First, the division needs to take extra caution when choosing the ideas of new products to implement. This is because not all ideas are of high quality. Therefore, it is important to incorporate this process with the evaluation process. This will enable the division to develop a habit of ranking ideas in terms of their importance and quality. Thus, only the best will be implemented. To improve the chances of ending up with top quality ideas, the division should also adapt a system of involving everyone in the organization, in the innovation process. Employees with different skills may be asked to work side by side so that they may have a better position of borrowing ideas from one another and coming with an eventual proposal that is of high quality.
Next, Microsoft/Nokia mobile phone division needs to adapt a reasonable product development strategy. This is important as it saves costs and time, and also maximizes revenue for the already available products. Thus, instead of always wanting to develop new types of mobile phones, the leaders need to encourage employees to think of ways and ideas that can b implemented for the already available mobile phones to make them more effective. Third, the company needs to ensure that this department has a leader who is effective in his job. The leaders should be encouraged to use a leadership style that will not limit employee innovation, but instead one that will support it.
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A Report Outlining Main Arguments for and Against the Use of Feasibility Studies to Determine Potential Business Success
Introduction
Feasibility study is the process of analyzing and evaluating the potential of a business or a project that has been proposed. This study entails extensive researches and investigations on the possibility of business success or failure, thus, the information collected becomes pertinent in decision making. The need for feasibility studies has been growing owing to the increase in the number of business failure especially during their first five years of operations. As a result, investors are more willing to spend and finance such studies as they evaluate the validity of a business idea. Specifically, feasibility studies answer the question raised by an entrepreneur regarding the need to either seize or cease a project idea. It has been established that the application of feasibilities studies is extensive such that the information collected from the evaluation can be used in myriads of ways apart from the primary role which is to approve a proposed venture (Lumpkin & Dess, 2006, p 142). The information is as important to banks, venture capitalists and other primary stakeholders as it is to the entrepreneur since it acts as a business plan and thus stating the weaknesses and strengths of a proposed business.
Essentially, competitive analyses and financial analysis could be helpful in determining if a given idea might be a waste of time and resources thus saving the stakeholders the resources that could have otherwise gone to waste. On the same note, it is appreciated that a venture that is economically viable and feasible has to promise that it will generate cash flows that will be profitable. For the entrepreneur to be assured of sustainability, risk assessments have to be conducted so as to identify the intensity of risks the business is likely to face both in the short run and long run. By so doing, the probability of its meeting the goals set by the founders of the business are met. Unlike some entrepreneurs have been made to believe that feasibility studies can only be performed on start-up business ventures, Young (2010, p 380) is of the thought that existing businesses can still conduct feasibility evaluations. This is likely when making arrangements for mergers and takeovers, transfer of businesses or even when an organization wants to launch a new product. Based on this introduction, this report seeks to assess the feasibility of the Community Crusaders business plan which is a sole proprietorship owned by Ian White. The mission of the company makes it vulnerable to financial risks. As a result, the need to outline the main arguments for and against the use of feasibility studies to determine potential business success is raised.
Literature Review
The area of feasibility study and its application in business has not elicited much research in the past. This implies that the topic, unlike other topics related to entrepreneurial business management has not attracted much attention among business researchers and theorists. According to Dana (2010, p 47), feasibility studies also known as feasibility analysis, can combatively be referred to as a cost-benefit analysis. The analysis seeks to evaluate the effectiveness of a new system or a new expansion before it is added onto the business. He further suggests that feasibility studies can be sub divided into two schools of thought; time based study and cost based study. Dana (2010, p 47) goes ahead to argue that the information derived in both studies provide a comprehensive assessment of the organization in terms of profit margins and levels of stability. For instance, the cost based study majors on analysing the probability of a business to be sustainable and successful by calculating operational and developmental costs. Operational costs denotes costs realized during production thus they are necessary in facilitating the functional aspects of the business while developmental costs form the bulk of acquiring the factors of production and setting up a business. Pinson, (2004, p 54) seconds that making calculations related to costs could be helpful in evaluating the chances that a business will either fail or succeed. For example, undertaking a cost analysis on the Community Crusader business venture will enable Mr White to get the near accurate operational and developmental costs for setting up the project. Cost based evaluations often include deep routed considerations that entail a full analysis of the macro environment and the microenvironment. Economic factors are ranked highly while other influential factors such as government regulations and policies or political factors come in handy when calculating costs to be incurred by Community Crusaders business.
Dana (2010, p 50) describes the second sub-division for feasibility studies as being time-based. This explanation is made in form of a hypothesis, which is grounded on the need to establish the time that it will take for the entrepreneur to start enjoying the profits. Such a study is focused on timing, thus, it analyzes the future of a business in terms of profitability. It takes into account commodity value as well as inventories held by the organization. Time based studies are therefore focused determining the ability of the firm to generate profits over an extended period. It is therefore advisable that Community Crusader has to undertake a time based evaluation or study of the proposed community growth start-ups after which Mr. White can decide on the projects that will have a higher chance of sustainability based on estimated calculations of Net Present Value (NPV) and Internal Rate Returns (IRR) (Georgakellos & Marcis, 2009, p 231). Mr. White will find these two studies to be of extreme importance to the business startup as the time based study will estimate the duration required to gain back the money invested in the various high risk ventures. Unlike Danev who classified feasibility studies based on time and cost, O’Brien and Marakas, (2011, p 488) identified five sub divisions of feasibility studies that can be applied to businesses. The different areas include; technical, economic, operational, legal and scheduling. Technological feasibility comes handy with system evaluations, which can be helpful to the Community Crusaders Company when analysing whether the technical expertise of the employees and their ability to contribute towards continued organizational success. In fact, the feasibility study makes provisions for a section where a brief description on the company’s prospects can be made. Secondly, the report gives an analysis of human and economic factors while making provisions for possible solutions to identified problems. In fact, the first stages of the analysis often entail and analysis of the business in terms of its technical requirements and legality.
In the event that the business activities to be undertaken by Community Crusaders are illegal according to the law, then the idea will not go through the other stages of the study. This section is contained in the legal feasibility study where all the components of the system are analysed for compliance. For instance, the tax system, the Information and Technology system, the inventory system and all the other systems will have to be tested for compliance (Ciavarella & Buckholtz, 2011, p 490). The third grouping is operational feasibility, which measures the ability for the management to handle emergencies, solve problems, resolve conflicts and embrace random opportunities. Assessments made at this stage also ascertain the possibility that the business will fit into the competitive pressures set by the industry in which it intends to operate. The nature of operations undertaken by Mr White as the manager for Community Crusaders has to ensure that it conforms to a design that promises efficiency, reliability, supportability, usability, maintainability, disposability, affordability and sustainability (Brinkman, 2010, p 19). In order to be effective, operation feasibility has to be undertaken during the early stages of business design so that the different organization processes can be synchronized in a way that will maximize on profitability. The process of meeting operational efficiency for Community crusaders has to be aided by the input of operation engineers as well as managerial experience. This is because, it is often believed that a system that incorporates operational and technical characteristics into its design increases the chances that it will serve the purpose it was intended for.
Nykiel, (2007, p 22) identifies that there are more advantages of carrying out feasibility studies on a business start-up since the section on economic feasibility helps determine the economic benefits likely to be gained from undertaking a given business venture. The process of assessing this feasibility includes identification and quantification of the expected benefits by use of a cost/benefit analysis. On the other hand, technical feasibility is focused on analysing the technical resources held by an organization and how these resources can be applied to the proposed system so as to increase on the chances of business success (Bentley & Whitten, 2007, p 32). Basically, this section entails a comprehensive evaluation of the software and hardware. Schedule feasibility is an equivalent of the time based analyses. In the event that Mr White delayed the completion of the Community Crusader Company, then there will be an increased chance that the business will fail. The section on scheduling seeks to estimate the time frame for undertaking business projects and the cost implications associated with delayed completion. In reality, increasing the payback period could reduce the chances of business success thus it becomes advantageous for the owner of Community Crusaders to consider undertaking a feasibility study. Other authors seeking a more classified analysis of a start-up business are likely to go an extra mile into considering other feasibility factors such as the market feasibility, resource feasibility, cultural feasibility and financial feasibility.
Example of a feasibility study and discussion
An example of a feasibility study in support of the literature theory stated in the previous section is shown in the XYZ Company, which intends to invest in the production of widget parts. The objective of the project is to determine the appropriateness or the feasibility of producing plastic widgets. The information provided by the company include part drawings of the projected design, description of the part requirements, production information and other information that was requested by the feasibility advisor. The executive summary for the feasibility study identified that the manufacturing process required various components, which included an injection mould made of a polypropylene material. The problem arose from the fact that there were several types of moulds and each would have a considerable impact on the sustainability and profitability of the business. The materials included the single cavity, centre sprue gate (SC, CSG), single cavity, hot runner edge gated (SC, HREG) 3 and multiple tab gates or fan and the two cavity, hot runner edge gated, multiple tab gates or fan (TC, HREG) (Benjamin & Fabrycky, 2010, p 90). A feasibility study for this project could only be possible after the identification of material estimates and the moulding process, tools to be used and the costs of the parts as shown
in the figure below.
Figure 1: Tooling and Purchased Cost Estimate
This table makes it subtle that the project of manufacturing widgets is complicated by the fact that the machinery used differ in quality and costs. Additionally, the total cost of a machine might be cheap but the spare parts are so costly. This implies that the XYZ Company will have to incur more costs when the machine breaks down than if it had purchased a machine that is expensive but has low cost spare parts. Apparently, an advantage of feasibility study is made evident in this case since it provides a comprehensive report on the estimated costs for the tool and that of the spare parts. This advantage is seconded by a chart which presents a graphical representation of the relationship between the part costs and the possible production volume. As a result, it enables XYZ to have a basis for decision making and this becomes the prerequisite for
determining potential business success.
Chart 1: Part cost versus production volume
The executive summary of the feasibility study for XYZ factory depicts a summary of the findings made after the feasibility study, recommendations made and the conclusion. In part, the study identifies that the two-cavity tool is likely to produce low cost widget parts with a cost range that is medium. All the estimates fall within the range of data given by the management at XYZ except for SC, HREG, which exceeds the annual cost of the produced parts. A decision is not determined at this time on the best production tool to select among the three and so the feasibility study is important helping guide the recommendation process. It is only after the study that it is made lurid on the best tool, operation design and additional costs that will be incurred in assembling the parts, decorating and packaging them. In so doing, it is established that XYZ has to consider making sure that the maximum cost for the produced products does not exceed $5.00. The recommendation made at the end of the study shows that the feasibility study guided the feasibility advisors into giving a conclusion that was unlike the request posed by the owner of the XYZ Company. Because of this, it is essential that the management alters their plan to suit the advice given by the advisors since they have a foresight of the hurdles the business is likely to face in selecting between the three given production machines.
The feasibility study used in the case of XYZ Company follows the theoretic outline presented by Dana, (2010, p 52). The framework used includes the classification of the study into two parts; cost based and time based. The cost based analysis helps in determining the costs of the machines to be acquired by XYZ and the estimations for the costs of the products as well as the spare parts. The analysis is made over an extended period of time which then assures the management that the statistical data presented in the report is well researched and that there is a higher probability that the venture will be profitable if a given machine is preferred instead of the other (Deakins & Freel, 2009, p 41). This is strategically done by calculating and distinguishing developmental costs from the operational costs. The cost based information is elaborated in the part cost and tooling estimations section which stages a coherent discussion weighing between the use of a PTC spreadsheet to estimate the costs or a local tool maker. The calculations on the part costs are made using spreadsheets from PTC. Ostensibly, PTC uses estimations derived from cycle times, material costs, machine costs and tool costs. Several inputs are needed when making the spreadsheets for feasibility studies. The resultant figures show the estimated amounts of money to be paid by XYZ Company when purchasing molded parts from a molder. The other production costs are varied according to volume of widgets produced and these costs include the cost of the tools (10% amortization) over an extended period of 5 years and a scrap rate of 5%. The probability that XYZ could manufacture these parts in-house is also considered in the analysis. On the other hand, the time based feasibility study comes in handy in seconding the findings made in the first research (Herrmann, 2009, p 90). It uses the time series charts to present evidence on the possibility that the business will be profitable over an extended period of time. The feasibility study relating to the case of XYZ analyses the possibility of breaking even with the sales and costs in the near future even as the machines might start to break down.
Assessment of feasibility study
As a feasibility advisor for the Community Crusaders start-up business owned by Mr. Ian White, it is necessary to conduct a feasibility study that will match up to the organization proposed mission of investing in the high growth start-up projects in the community. The importance of these assessments is raised with the realization that most of the proposed projects are have high financial risk. According to economics, high-risk ventures are often more profitable since most investors tend to shy away from such projects (Gelderen & Bosma, 2008). In the event that Mr. White becomes successful in the proposed high growth community start-ups, then there is a higher chance that he will be very successful. But prior to making such a decision, it is mandatory to consider the financial costs and time implications associated with undertaking these high risk projects. The realization that similar firms or firms operating in competing business environments have incorporated the use of feasibility studies should act as a trigger that will help in identifying the near proximal facts related to undertaking the proposed projects (Hmieleski & Corbett, 2006, p 45). Therefore, the following considerations have to be made by Mr. White when making a decision on whether or not to use feasibility studies. First, he has to answer the question: why undertake a feasibility study?
The answer to this question lies in the facts presented in the following argument where the pros and the cons of feasibility studies are highlighted while also a comparison is made between the use of feasibility study and a business plan. First of all, Mr. White must be aware that coming up with a new venture is a difficult process. It is not only involving but tiring and time consuming. In spite of this, most of these ideas do not materialize to become as big as the entrepreneurs ever imagined. In fact, some of the businesses that become operational fail in the first six months. Thus, before making any investment, it is very advisable to ascertain the economic viability of the project. The advantages to be realized from the project have to outweigh the disadvantages and the potential risk factors likely to be experienced. A feasibility study is the most preferred tool to achieving these objectives. Without it, then the number of start-up failures could be much higher. High growth community projects are often capital intensive and involving in terms of expenditure, planning and operations. The importance of feasibility studies is therefore seen in its ability to identify areas of focus while providing alternatives that could be undertaken by the entrepreneur so as to maximize on the expected returns or increase the chances of business success (Jeffrey, 2007, p 37). This scenario is supported by the case study on XYZ where the management is notified on the availability of three manufacturing machine. Each of the machines has its advantages and disadvantages thus the management has to make a decision based on the information.
The second major reason for using feasibility studies is to narrow the alternatives faced by an entrepreneur. There are instances under which an entrepreneur might have several business proposals. As much as each of these proposals might look lucrative when analyzed from an entrepreneurs’ viewpoint, a feasibility study might help identify finer details that will make one of the projects stand out from the rest thus, the project will be prioritized over the others. The third advantage is that the feasibility studies provide information that is substantial to guide decision making. Apart from the documentation of important quantitative information, it is an evidence that an entrepreneur took time to investigate on the subtle factors associated with investing in a certain project. These documents are vital when soliciting for external financing for the projects. On the flip side, using feasibility studies has been associated with certain limitations or demerits. The feasibility study cannot substitute a business plan. The plan comes after a feasibility study especially when the project is in its developmental stages. A business plan tends to respond to the issues raised in the feasibility study where most of the outcomes identified in the feasibility study will form a basis for writing a business plan. First of all, the feasibility study does not identify new concepts or ideas regarding the project. The ideas have to be identified by the entrepreneur before the study can be conducted. The feasibility study is therefore dependent on the assumptions developed by the entrepreneur thus an impartial or unrealistic proposal will lead to a misleading study thus its effectiveness will be significantly reduced. According to Michele (2008, p 111), the leaders of a business might be pressured into skipping a feasibility analysis because there is a high chance that an existing business has succeeded and so are the chances that the new venture will succeed. At times the reports presented by the feasibility advisors and consultants do not reflect the real time information that can guide an entrepreneur into making viable decisions. This means that the read advantages of a feasibility study can only be realized if the study is done accurately.
There are differences between a feasibility study and a business plan. Whereas a feasibility study investigates the possibility of success, a business plan provides an outline towards the realization of the proposal made in the feasibility study. A feasibility study is an affirmation that a business is likely to succeed thus it can help narrow down different project scenarios while a business plan will only deal with one project (James, 2014, p 9). A feasibility study is followed by a business plan, which means that in the event the feasibility study discontinues a certain project a business plan will not be made.
Recommendations for the Organization
Reflecting on the discussions derived from the case study of XYZ Company, assessments and critical thoughts revolving around the need to conduct feasibility studies, it is evident that a feasibility study plays a pivotal role in managing start-up ventures. As a feasibility advisor, I will encourage Mr. White to consider writing up the business proposals for the different high growth community projects then they can be studies by use of the two classifications identified in the literature review. The sub-groupings for the feasibility study to be conducted will include undertaking a cost based and time based feasibility study on these businesses (Matson, 2010, p 90). The cost based study will identify all the economic parameters concerning financing and financial risks while time based studies will identify the time frame for initiating the project and the possibility of breaking even. On a general scale, the feasibility study for Community Crusaders has to follow the following format which begins with an executive summary section. It is in this section that assumptions are documented which then leads to making of inferences on the important findings and recommendations. The introduction section describes the projects and makes a justification on why the community development project is viable. It also introduces the general settings of the project and the needs identified in the immediate environment/ market needs. Third section has to state the industry background where basic information on the industry, feasibility and implications and the economic conditions identified in the industry. The fourth section has to contain information on marketing where the market potential will be analysed, the attributes of the market will be noted in relation to the limitations or ease of entering and penetrating the market. Technical and operational characteristics will form the bulk of the fifth section which will handle concerns regarding labour supply, technical skills, location considerations and the operational capacity and the subsequent efficiency of the Community Crusaders project. Sixth section will consider financial projections such as; revenues, net income, costs, capital requirements, pro forma cash flow statements, accumulated equity and financial plan for the company. The seventh section will have a summary and recommendation for the project followed by an appendix section.
Conclusion
In conclusion, feasibility studies provide a window through which an investor can peep into the viability of a business idea and determine if it is worth risking both time and money. A standard feasibility study has to entail a summarized cost and time analysis which is sub-divided into groupings that will facilitate guiding the data collection process (Justis & Kreigsmann, 2009, p 39). The finance section and marketability section represent the most important sections thus they have to be meticulous. The finance section analyzes the financial risks and implication of the business on the industry as a whole. While assessing financial risks, it has to be noted that the high risk ventures are often more profitable since most investors tend to shy away from such projects. But prior to making such a decision, it is mandatory to consider the financial costs and time implications associated with undertaking these high risk projects. The realization that similar firms or firms operating in competing business environments have incorporated the use of feasibility studies should act as a trigger that will help in identifying the near proximal facts related to undertaking the proposed projects. Likewise, the marketing section incorporates a critical look at the market factors that would either undermine or promote the marketability of the products and services. The market analyses are important when investing in high growth community investments since it assesses the potential of selling the products and services to the community. A feasibility study, therefore, identifies the potential output of a project thus the management has a decision to make between continuing with the project or abandoning it in the event that the output falls below the desired input.
References
Benjamin, S. & Fabrycky, W. (2010). Systems engineering and analysis. Cheltenham: Edward Elgar Publishing Ltd.
Bentley, L. & Whitten, J. (2007). System Analysis & Design for the Global Enterprise. London: Kogan Page Limited.
Brinkman, E. (2010). Research about business success- and fail factors of starters (Master thesis). Englewood Cliffs, New Jersey.
Ciavarella, M. & Buckholtz, A. (2011). The big five and venture survival: Is there a linkage? Journal of Business Venturing, 1(9), 465-483
Dana, L. (2010). Nunavik, Arctic Quebec: Where Co-operatives Supplement Entrepreneurship. Global Business and Economics Review Journal, 12 (1), 42–71.
Deakins, D. & Freel, M. (2009). Entrepreneurial activity, the economy and the importance of small firms: Entrepreneurship and small firms. London: McGraw-Hill Education.
Gelderen, M. & Bosma, N. (2008). Success and risk factors in the pre startup phase. Small Business Economics Journal, 24 (4), 365-380
Georgakellos, D. & Marcis, A. (2009). Application of the semantic learning approach in the feasibility studies preparation training process. Information Systems Management, 26 (3), 231-240.
Herrmann, N. (2009). The whole brain business book. London: McGraw-Hill.
Hmieleski, K. & Corbett, A. (2006). Proclivity for improvisation as a predictor of entrepreneurial intentions. Journal of Small Business Management, 44 (1), 45-63.
James, W. (2014). Your Small Business Adventure: Finding Your Niche and Growing a Successful Business. New York: ALA/Huron Street Press.
Jeffrey, N. (2007). Psychology: concepts and applications. Illinois: Cengage Learning.
Justis, R. & Kreigsmann, B. (2009). The feasibility study as a tool for venture analysis. Business Journal of Small Business Management, 17 (1), 35-42.
Lumpkin, G. & Dess, G. (2006). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21, p. 135-172.
Matson, J. (2010). Cooperative feasibility study guide. New York: ABC Press.
A technology solution to a business problem in a specific company or organization that adds value
Order Instructions:
Objective
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Provide an opportunity for students to apply a technology solution to a business problem in a specific company or organization that adds value to the organization.
Guidelines
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Week 1: Begin thinking of a business problem that could be solved with a technology solution for a company or organization you are familiar with. Use the Q&A Forum to ask questions and discuss your ideas about the project. See the Course Project Technical Areas for ideas.
Week 2: Complete the Course Project Proposal using this format:
Course Project Proposal (1-2 pages, 75 points, due week 2, properly cite any external sources used)
Cover page
1.Subject of Course Project
2.Business problem statement
3.Name of the company or organization
4.Brief description of proposed solution
5.General benefits it will provide the organization
6.Audience to whom you are presenting the recommendation
SAMPLE ANSWER
Introduction about the company
Apple Inc. is an American multinational corporation dealing in designing, developing and selling of various consumer electronics such as personal computers, online services and computer software. The company well known products include ipod media player, Mac line of computers, iphone Smartphone among many others (Linzmayer, 1999). The company was founded in 1976 by 1976 and has evolved over the years to become the world second largest company in information technology after Samsung Electronics (Carr, 2013). It is as well credited as the largest world mobile phone maker. To regain this position, the company must make its decisions well by considering different options. The supply channel is a very critical problem that requires insightful thinking before reaching a solution.
Business problem statement
Apple Inc. increased supply channel conflict with its B2B supply channel is a matter of great concern. The company keeps terminating its distribution agreements with its distributors’ which is unfavorable for business (Apple Inc., 2010). The company has adopted a strategy which is meant to actively edge out it distributors by establishing self-owned stores. This is a strategy seen as strange by many since it is virtually impossible to build or establish stores globally (Muneesh & Sareen, 2012). As matter of fact its sales would drastically decrease before it covers any substantial ground in constructing the stores. Constructing its stores in various regions across the globe is an expensive affair that will cost the company lots of money. This strategy as well would take quite long time before completion, as the processes may be lengthy. Using already established distributors seems to be the most essential opportunity as the infrastructure is already in place. This option will as well take short period and the company will continue to enjoy large market share increasing its revenue. Since Apple Inc. is a company involved in provisions of technological solutions it can do better than avoid solving the supply channel conflict by building stores.
Proposed solution
The proposed solution for Apple Inc. in solving its B2B supply channel conflict is through e-commerce rather than the mechanical solution they have adopted.
E-commerce has shown great potential in solving B2B channel conflict.
E-commerce will reestablish harmony between the company and its distributors (Muneesh & Sareen, 2012).
This strategy involves carefully and in consultation with the channel partners resolving issues causing conflict such as pricing, promotion, distribution, communication and coordination.
A high-level solution involves ensuring that Apple Inc. increases its sales significantly through e-commerce adoption in conflict resolving.
General benefits to Apple Inc.
To start with, to Apple supply channel conflict will be a thing of the past, which will translate to more sales. The company’s sales will increase significantly, since its products will be offered through more than one channel that is self-owned stores, distributor’s stores and online (Muneesh & Sareen, 2012). Thirdly, the company will have opportunity to focus on the clients’ needs through product development.
Audience
These recommendations are directed to company’s top management who make decisions that affect the company’s entire operations. The top management have been unable to generate a solution that will eradicate conflict on the supply channel thus these recommendations will go a long way towards assisting them rethink the earlier strategies.
Preliminary analysis of leadership and organizational behavior concepts
Leadership and organizational behavior play a critical role when making certain decisions. The leadership of the company must be flexible and accommodate other people advice on this important undertaking. The leadership is required to evaluate the options putting in mind the kind of results they want to achieve in future. Organizational behaviors as well are important in reaching an amicable solution. The organization has a positive public image as one of the company that meets the interests and needs of the audience when producing its products. Therefore, the decision should as well consider the organization behaviors and perception.
Muneesh, K., & Sareen, M. (2012). Trust and technology in B2B e-commerce: Practices and strategies for assurance. Hershey, PA: Business Science Reference.
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Journal 1: Marketing Plan Part A: Executive Summary
You will create a fictional start-up company that serves the U.S. market with a product or service.
Write a one to two (1-2) paragraph journal entry in which you:
Provide a detailed description of your company. The description should include, at a minimum,
the company’s name, its history, founders, business purpose, and mission.
Describe, in detail, the product or service the company produces or services. Include trademark,
color, shape, packaging, labeling, and any characteristics that you deem relevant.
Note: Upon completion of the journal, fill out the “Company Overview” section in the Marketing Plan
Template, located in Week 1. Next, insert the information from the completed Journal 1 entry into “Section 1: Executive Summary” within the provided Marketing Plan Template.
Journal 2: Marketing Plan Part B: Targeting Customers
You will now consider who your customers are and identify your market segment.
It is vital that you clearly identify your target customers within your marketing plan. Knowing your target
customers will help you to:
pinpoint where you should spend your advertising budget
the type of campign you intend to run, and
ensure that your marketing message speaks the customer’s language (based on their needs and
wants, demographic, location, ethnicity, etc.).
Write a one to two (1-2) paragraph journal entry in which you:
Analyze the business customers / clients that you wish to target. Your analysis should include,
geographic location (e.g., country, region, city, rural, urban, climate)
precise wants and needs as they relate to the products and / or services you offer.
Use at least two (2) quality references. Note: Wikipedia and other Websites do not qualify as
academic resources.
Note: Insert the information from the completed Journal 2 entry into “Section 2: Targeting Customers” in the provided Marketing Plan Template (located in Week 1).
Journal 3: Marketing Plan Part C: Unique Selling Proposition
You will now complete your secondary market research and consider what distinguishes your company
from your competitors, their products, and / or the price of their products and services.
Use the Internet to research your customer demographics and market segment from Journal 2. Consider
what you think you know versus what you know to be true based on research from reports, publications,
course content, etc.
Write a four to six (4-6) paragraph journal entry in which you:
Describe your unique selling proposition (USP). Next, explain the key aspects of your business,
products, or services that make them unique when compared to your competition (e.g.,
Southwest Airlines’ USP is providing customers with low airfare without compromising service
and comfort).
Describe the marketing objectives of your company. Your marketing objectives should, at a
minimum, address potential customer profile and market segmentation. Explain the manner in
which you conducted your secondary market research.
Use at least two (2) quality references. Note: Wikipedia and other Websites do not qualify as
academic resources.
Note: Insert the information from the completed Journal 3 entry into “Section 3: Unique Selling
Proposition” in the provided Marketing Plan Template (located in Week 1).
Journal 4: Marketing Plan Part D: Pricing and Distribution Strategy
You will now consider your company’s strengths and weakness, along with your product or service price.
Use the Internet to research strategies for conducting a Strengths, Weaknesses, Opportunities, and
Threats (SWOT) analysis. Based on your company’s market information, consider the strengths and
weakness of your company and its products or services.
Write a four to six (4-6) paragraph journal entry in which you:
Determine the key strengths and weaknesses of your company, as well as both the primary opportunities and threats that it faces within its industry.
Discuss your critical steps within your supply-chain and operational system. Explain the key
aspects of your strategies for producing and distributing your products and services to both your stores and customers. Determine whether you will use an outside vendor or complete the work in house.
Analyze the company’s pricing strategy relative to its pricing objective. Examine major internal and major external factors that could potentially affect the pricing of the company’s products or services.
Use at least two (2) quality references. Note: Wikipedia and other Websites do not qualify as academic resources.
Note: Insert the information from the completed Journal 4 entry into “Section 4: Pricing and Distribution Strategy” in the provided Marketing Plan Template (located in Week 1).
Journal 5: Marketing Plan Part E: Distribution Plan and Promotions Strategy
You will now consider mechanisms by which your customers will purchase your products and / or services
(e.g., online, storefront, direct sells) and the primary manner in which you intend to reach new customers
(e.g.,TV, radio, social media, special events).
Consider the marketing materials that you intend to use. According to the textbook, marketing materials are collateral used to promote your business or products. Promotional strategy may include free trial offers, money-back guarantees, and buy two (2) for the price of one (1) type of deals.
Write a five to seven (5-7) paragraph journal entry in which you:
Determine the distribution strategy relative to your target market, location, and selection of distribution channels. Indicate whether or not you will leverage the following strategies:
use stores located in different regions
sell online
hire a sales team to sell directly to suppliers and door-to-door
Recommend three (3) strategy options that you could use in order to get your product or services out to your customer base.
Outline your main marketing goals for promotions, offers, and giveaways. Discuss the key types of marketing materials that you intend to develop and share.
Propose three (3) action steps that you can use to move your plan forward. Consider how, when, and who will be involved in the execution of this plan.
Use at least two (2) quality references. Note: Wikipedia and other Websites do not qualify as academic resources.
Note: Insert the information from the completed Journal 5 entry into “Section 5: Distribution Plan and
Promotions Strategy” in the provided Marketing Plan Template (located in Week 1).
SAMPLE ANSWER
Company Overview
Owner(s):
Prof. Sebahatin Blunt & Dr. Menzies Macadam
Company Name:
Revmi Technologies Inc.
Product Name:
Smart Rear View Mirror
Location:
New York City
History (yrs.):
Three years
Section 1: Executive Summary
Revmi Technologies Inc was incorporated on 5th February, 2010 to carry out the business of designing, developing and marketing advanced automobile technologies in the United States of America. The target market for the innovative products is the rich and super rich members of society since these products are aimed at enhancing automobile comfort and security of users and prevent car accidents. The business idea was conceived after research findings from a research study done by Prof. Sebahatin Blunt indicated that the largest corporations in USA are owned and controlled by a small number of wealthy entrepreneurs compared to the rest of the American population. In addition the research found that these wealthy individuals make decisions that determine the quality and quantity of food on the table of millions of American families and their decisions also generate tax revenues that fund important government projects. In other words this special class of Americans controls a huge part of the economy and should therefore be protected and accorded the best comfort possible to make them generate even better ideas for the future growth of the American economy. Professor Blunt found that the loss of one or more of these top business leaders cost their companies a lot of money while seeking for suitable replacements and most found it difficult to find someone with similar ideas and vision. The founders of the company are Prof. Sebahatin Blunt & Dr. Menzies Macadam and are both renowned scholars having written many articles on motor vehicle safety and comfort features. The two entrepreneurs, who are both American citizens, met in a conference in Japan organized by major motor vehicle manufacturers to discuss recent developments in motor vehicle safety and struck a friendship. The company’s flagship product is a Smart Rear View Mirror which is revolutionary in many ways. The mission of the company is to enhance the safety of motorists by providing smart rear view mirrors that improve the safety of motorists while driving on American roads.
Product description
The flagship product for Revmi Technologies Inc is a Smart Rear View Mirror. The mirror will eliminate drivers “blind spots” that are dreaded by drivers’ especially on busy highways and which have been a major cause of accidents on many roads in America. With continued growth in the economy, many Americans own cars which lead to a major nightmare on roads as drivers try to change lanes especially on roads with many lanes. The smart rearview mirror is aimed at eliminating blind spots thereby making it easier for drivers to change lanes without the danger of being hit by vehicles at the rear and which are moving at higher speeds. The 16-inch mirror will eliminate drivers’ blind spots by providing a 180- degree view of vehicles following at the rear of a car. Current standard rear view mirrors provide about 52-degrees view which create large driver blind spots. The mirror size is also designed to reduce headlight glare by over 50% and enables drivers to see adjacent vehicles until they are visible in their peripheral vision. The mirror will provide a distortion-free-reflection across a highway with as many as five lanes. The mirror weighing 10 ounces only will be attached easily by clamping on the existing mirror in the vehicle. The mirror is developed with a special 4:1 aspect ratio Liquid Crystal Display (LCD) which is fitted inside the mirror and linked to a 6.2-megapixel camera fitted at the rear window glass of the luxury vehicle. At the touch of a switch the images taken by the camera will be viewed in a flash on the mirror which will convert to a screen in a row. The camera will take large clear pictures and will be invisible to rear car drivers. The camera will take pictures at the pressing of a switch fitted on the car steering wheel. This will enable the driver to take a picture of a suspicious car or object in the car’s rear and display it on the mirror. This will enable him to inform the police if he deems that the security of the car and its occupants are in danger. At the touch of a switch fitted on the steering wheel the screen will revert to a mirror and continue providing a 180 degree view of the vehicles on the rear on the vehicle. Viewing of pictures will be timed that it will take a very short time to ensure it does not deter the driver’s view of the rear of his vehicle. The pictures will also be sending automatically to an email address for viewing at a time convenient to the owner. A picture of the mirror fitted in a vehicle is shown here below.
The smart rearview mirror enables a driver, without turning his or her head, to continuously monitor adjacent vehicles when changing lanes or merging lanes as it provides a 180 degree panoramic view. The color will be customized according to the desires of the buyer and /or designed to fit well with the main color of the car. Packaging of the product will be designed in such a way that it provides protection in shipping and storage. The outer cover will be made of heavy gauge plastics which will be thermoformed with varying degrees of rigidity to suit the needs of shipping, storage and the time it will take on the shape before being purchased. The packaging will be designed to securely protect the mirror while shipping or movement across the country. The packaging will be as per the picture below
The plastic casing will be thermoformed with varying degrees of rigidity to ensure that it is hard enough to withstand rough handling, accidental banging on hard surfaces and/or dropping on the hard floor. The transparent material will enable customers to view the product while inside he packaging material to avoid repeated touching as that may damage the electronic equipment and camera. The product will be labeled using the most modern labeling style that will enhance the company product’s image in the market.
Section 2: targeting customers
The target customers for the Smart rearview mirror are the rich and the super rich in USA. The reason why this is the ideal market segment is because the product is not necessarily a necessity for motorists but somewhat a luxury to have. Many motorists can still use standard rear view mirrors that come fitted in many ordinary vehicles to drive to their destinations (Fripp, 2011). The smart rearview mirror is targeting those consumers who are particularly sensitive to their personal security while on roads and those who are likely to be targets of extortionists, criminal gangs, blackmailers and kidnappers due to their status in society and wealth they control. This category is mainly made up of the rich and super rich. According to Forbes magazine the net worth of the richest Americans in 2013 was $2.29 trillion. By conservative estimates close to 10.2 % of all Americans as at 2012 were millions and the number keeps on rising (http://www.forbes.com/forbs-400/). This means that among every 10 American cars on the road at least one is a millionaire. The target market is composed of this class of Americans; the millionaires, multimillionaires and billionaires. This is the class of people who could be persuaded to purchase the revolutionary Smart rearview mirror (Fripp, 2011).
Demographic profile
Demographic profile is used to describe the market segment that the company will target. The demographic profile will determine where advertising will be done and when to achieve maximum impact and achieve sales targets (Hubbuch, 2013). The average age of the targeted customers will literary cut across all ages but will mostly be concentrated between the ages of 35 to over 80 years old. This is the age group that has risen to the pinnacle of their careers and control substantial wealth. The gender of the target market is both male and female and is mostly those who own their own homes and most are chauffeur driven. The target market is quite mobile and is found in all major towns of America. The targeted customers are educated and they enjoy above average incomes in a year. They literary own the prime land and property in the whole of America (Shi, 2011).
Psychographic profile
Psychographic profile of the target customers will assist the company to better market to the target market. Psychographic profile of customers refer to their lifestyles and looks into the interests, activities and opinions of the target customers. The information will be used to design effective advertising strategies that will ensure the target market is reached. Most of the targeted customers control huge economic resources and most would want to give back to the society. Most of these customers like patronizing exclusive clubs and spots. They also consume fine things that life can offer (Hubbuch, 2013). They are sensitive to changes in technology, lifestyle and security threats. They are well informed, knowledgeable and have an opinion on major issue in the world. They influence government policy and have friends in government. They are likely to join politics at one point in their life and therefore their public image is of paramount importance. Knowing the psychographic details of customers will help the company to design targeted advertising to reach customers who might be interested in purchasing the company’s flagship product (Hubbuch, 2013).
PROFESSION
The targeted customers are found in all fields of human endeavor. They lead flagship companies and institutions in banking, social sector, healthcare, entertainment, tourism, education, security etc (Hubbuch, 2013). Most of the targeted customers are the leaders in their industries and make strategic decisions that influence the institutions that they lead. The targeted customers hold leadership positions such as those of chief executive officers, chairmen of boards, owners of companies, directors, chief security advisors, leading scholars and eminent personalities (Hubbuch, 2013).
geographic LOCATION
The targeted customers are located in each and every bustling town and city in America. They are to be found in exclusive spots and clubs. They frequent high end entertainment spots and live in exclusive estates. They own prime real estate properties and live in high class estates exclusively populated by the rich and influential in society (Hubbuch, 2013).
Wants and needs
With increase in terrorism threats and general rise in crime in many states the rich feel particularly targeted. There is a general rise in the number of kidnappings and some are undertaken on the roads. The rich and super rich are generally worried at what would happen to their wealth if something was to happen to them. They are concerned about the security and safety of their loved ones when they leave their houses (Hubbuch, 2013). Since most of their homes and offices are secured by top of the range security systems, their main worry is how to enhance their safety while on the roads. The smart view mirror will meet this need as it will ensure that they monitor every vehicle that will be following them and even take pictures of the occupants and sent to the police if they feel their security is at risk. Products are generally aimed at meeting needs and the need in this case is safety and security while driving on major highways and roads (Hubbuch, 2013).
Section 3: Unique Selling Proposition
Unique Selling Proposition (USP) describes a unique message about a company versus the competition which is used over and over again in promotions, advertising and marketing communication. The Unique Selling Proposition will assist the company to focus on what its business is all about (Stimmel, 2007). The unique selling proposition for Revmi Technologies Inc smart rearview mirror includes the fact that the mirror system will be sold through online methods. The company will sell the mirror through online retailing methods. Clients will be able to order online and the product will be delivered by the company distribution vans at their door step using the address they provide. The company will also partner with large online supermarket chains such as Amazon.com to sell its products. The next selling proposition will be the degree of road safety and security that the rearview mirror system will offer to users. This will be a major USP since the rich are constantly looking for ways to enhance their security and safety while on the roads (Merritt, 2011).
marketing objectives
The main marketing objective of the company will include attaining a market share by 30% in the target market and grow revenues by 30% each year. To do this the company will target the American citizens who have millions or billions in their possession. The company will sell a product that will enhance the safety of this special class of people and which will enable them to identify suspicious vehicles and people who may be trailing them and thus provide them with an opportunity to inform the authorities. The secondary research to establish the availability of an adequate market was done through internet based sources. References of the articles are provided in the reference section of this report (Hubbuch, 2013).
Section 4: Pricing and Distribution Strategy
strengths, weaknesses, opportunties and threats (SWOT)
Strength, Weaknesses, Opportunities and Strengths (SWOT) analysis is one of the tools that organizations use to create a competitive advantage. Revmi Technologies Inc used SWOT analysis to position itself in the target market (http://www.mindtools.com/pages/article/newTMC_05.htm ).
Strengths
Revmi Technologies Inc strengths include the fact that it has a well established distribution network and strategy that it can leverage to grow revenues. The next strength is that it has patented its technology which will enable it to generate competitive advantage. The next strength is that it has built a good reputation among international rating agencies that will enable it to secure funds to expand from financial institutions. The other strength is that it has an experienced and talented workforce and is managed by professional managers with a passion and vision for the business (Jupesta, Harayama &Parayil, 2011).
Weaknesses
One of the weaknesses of the company is that it is still young in the business and therefore has not built adequate switching barriers to ensure it retains its clients (Haider, 2013). The other weakness is that it has not built its own distribution channels and will leverage established supermarket chains who may not give its products special focus (Jupesta, Harayama &Parayil, 2011).
Opportunities
The major opportunity is that the company is poised to reap from increase in wealth of the rich who will definitely look for ways to enhance their safety and security. It has been found that as the economy continues to pull itself from the recession the major beneficiaries are the rich. The next opportunity is that the company will easily attract the attention of major security organization such as the police, the armed forces and spy agencies which will offer a very large market for the company to meet. The other opportunity is in using its dynamic and experienced work force to develop winning strategies (Hubbuch, 2013).
Threats
The main threat that the company faces is intense rivalry that is likely to follow as a result of the possible success of the company in the industry. The other threat would be the slow pace of the product uptake. Previous entrants into the sector performed poorly and made many customers doubt similar products. Some previous entrants produced rear view mirrors which were too blurred by rear vehicles headlights at night whereas cameras used previously were too small to take useful pictures. It will take a while to make substantial sales but when that happens the company will grow very fast especially due to word of mouth. The company will use its strengths to overcome its weaknesses and take up emerging opportunities while at the same time militating against threats ((Jupesta, Harayama &Parayil, 2011; Haider, 2013).
supply-chain and operational system
The company will use the just in time inventory management plan in its supply-chain. This will ensure that it does not hold a lot of funds in its inventory that may affect other important functions that the company will be undertaking. The company will use value chain analysis to ensure only activities that add value are actually implemented. It will ensure lean synchronization is upheld to eliminate wastage in its operational system. The company will use a direct channel through its online distribution platform (Hubbuch, 2013). In this channel, customers will have an opportunity to place an order in the company’s website after which the product will be delivered directly to the registered address of the customer. The company will also use indirect distribution using renowned distribution channels such as Amazon.com. The company in this case will partner with the distribution companies to sell its product through their channels. The company will manufacture its flagship product from its factory in New York. It will set up distribution stores in major towns in USA from which it will supply customers in the town and surrounding environs (Hubbuch, 2013).
pricing strategy
Pricing strategy is the process of setting objectives, determining the available flexibility, developing strategies, setting prices and engaging in implementation and control. Pricing is a very important marketing mix variable as it contributes directly to the profitability of the firm. Price will also be used to enhance the image and quality of the product as it is argued that price and the quality of a product are directly related. Price decisions can impede or enhance the marketing strategy. The pricing objectives will consistent with other marketing mix variables. The pricing decisions will however ensure the prices set exceed the average unit costs (Febrianti &Ariffin, 2013). The company will use psychological pricing strategy to create customer price perceptions to have a special appeal to the target market. The company will deliberately set high prices to imply high quality. The target market is not people who are likely to take too much interest on price as their concern will be the quality of the product. If the company prices it too low then the product will be viewed as of inferior quality. The factors that will influence the company’s pricing decisions include; cost of production, perceived quality of the product, the kind of consumers, the government, channel members and competition (Barnett, 2011; Klapper & Oetzel, 2011).
Section 5: Distribution Plan and Promotions Strategy
distribution strategy
Distribution relates to “place”, one of the Ps of marketing. Distribution creates a link between the manufacturer and the customer. Good distribution systems are important in ensuring that customers get the right products at the right time. Distribution logistics is very wide and covers areas such as retailing and retail management, stores management, selection of warehouse location, and transportation. The company will use direct and indirect channel of distribution. Through its own website the company will receive orders and transport the products to customers after receiving a confirmed order. The company will also use indirect channels such as Amazon.com etc which are renowned throughout the country. The target customers will be located all throughout the country and online distribution whereby customers are sold to directly will be the most ideal. However, due to the fact that the company is relatively new it will partner with large online stores to move its products while at the same time advertise through their websites (Helms & Nixon, 2010).
marketing goals
Promotion is basically the communication component of marketing and marketers use it to communicate to customers about their products. It is often said that one can have a very good product which is marketed at a very competitive price, but it will not attract customers unless it is properly communicated to the customers through promotion. Indeed, the sales philosophy is built on the premise that customers will not just buy a product because it is there. They need to be persuaded to buy. They need to be reminded to buy and so on (Hubbuch, 2013). The promotion mix is comprised of advertising, personal selling, sales promotion and publicity. The company will use the unique selling point as the basis for designing the marketing message. The message will be carried in all forms of promotional activities. The main marketing goals for promotions will be to create a need for this type of product and once that is created, market the product as the one best suited to meet the need (Hubbuch, 2013). This need can be said to be latent which requires the company to really convince the target market that it is very important that they urgently address it. The company will offer money back guarantees if the product fails and will also offer a long warranty period in which the company will replace a defective product at its own cost. The company will carry out intensive promotion activities through television, print and leading journals that the rich are known to read (Kanagal, 2013).
action steps (conclusion)
The action steps are as follows;
No
Action
Department
Officer responsible
Proposed completion date
1.
Hire qualified personnel
Human resource
Human resource manager
15th, December 2014
2.
Secure funding
Finance
Finance Manager
30th October, 2014
3.
Rent factory premises and acquire production machines
Production
Production/factory Manager
15th January 2014
4.
Design and approve the packaging and labeling
Marketing
Marketing manager
31st January, 2014
5.
Set price for the product
Finance/ marketing
Finance and Marketing manager
31stJnauary 2014
6.
Design and create website for online distribution
Information Technology (IT)
IT Manager
5th February , 2014
7.
Sign product distribution agreements with large online retailers
Legal
Legal manger
20th February, 2014
8.
Set promotion budget
Marketing
Marketing Manager
28th February, 2014
9.
Roll out promotion activities and distribution
Marketing
Marketing Manager
31st March, 2014
Reference list (APA format)
Barnett, M. (2011). PRICE PERCEPTIONS: Is your pricing strategy costing you customers?
Marketing Week, , 12-16. Retrieved from http://search.proquest.com/docview/848829828?accountid=45049
Febrianti, R. A., &Ariffin, S. D. S. (2013).The influence of product differentiation and pricing
strategy on customer value in appreciating traditional batik. International Journal of Innovations in Business, 2(4), 395-415. Retrieved from http://search.proquest.com/docview/1435824786?accountid=45049
Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysis – where are we now? Journal of Strategy and Management, 3(3), 215-251. doi:http://dx.doi.org/10.1108/17554251011064837
Hubbuch, C. (2013, Jan 06). Marketing 101: More than just a message. McClatchy – Tribune
Business News Retrieved from http://search.proquest.com/docview/1266530760?accountid=45049
Jupesta, J., Harayama, Y., &Parayil, G. (2011). Sustainable business model for biofuel industries in indonesia. Sustainability Accounting, Management and Policy Journal, 2(2), 231-247. doi:http://dx.doi.org/10.1108/20408021111185394
Kanagal, N. B. (2013). Promotions as market transactions. Journal of Management and
Shi, H. (2011). Three essays on distribution channels and pricing strategy.(Order No. 3479342,
University of Illinois at Urbana-Champaign). ProQuest Dissertations and Theses, , 112-n/a. Retrieved from http://search.proquest.com/docview/901233243?accountid=45049. (901233243).
Stimmel, A. C. (2007). Unique selling propositions: Why you need one today. Office World
2,000-word essay with supporting visual documentation, accurate referencing. Describe and analyze an experimental design or designer’s work on exhibition at Feral Experimental at UNSW galleries, drawing on a theoretical framework discussed during the semester and critically engaging with design discourse on a contemporary issue, such as globalization, sustainability and consumerism.
SAMPLE ANSWER
The Kindred Design on Globalization
The Feral Experimental Exhibition describes several topics from different designers. The show therefore describes the content of the presentations alongside all the designs, the consequences to both the surrounding and the design itself. The topics areas addressed are the cooperative design, the design involving speculation the design that engages people through participation and the one through each person is involved.
The speculative design process does not concentrate on a given problem that needs to be addressed. The design focuses on a given starting point that is very influential upon which a given design emanates (Galeffi, 2009, 199-200).
Participatory design was initially referred to as the Cooperative design (Co-design) (Karakas, 2011). This design basically incorporates every player in a given field in the development of a particular design in order to ensure the outcomes are relevant. Those involved in this scenario include those who employee people, the general public, clients, partners and the consumers (Steen, 2013, 201).
Interaction Design addresses the issue of how people carry out themselves in a given field. It develops systems, services, information technology and the surroundings (Karakas, 2011, 199). This design mainly organizes the digital world to enhance its utilization by the people
Exploratory Experimental Design tries to solve a particular problem in research especially in areas with very limited or no research work having been carried out at all. The main aim is to come up with new ideas or add new information to the already existing one.
Kindred Spirits is a design that is a cooperative research project which was designed in collaboration with the people of the drug rehabilitation clinic in Netherlands (Matisoff & Edwards, 2014, 133). The design was developed by Susana CamaraLeret hence became part of the research project of the government. The project was intended to portray an imaginary clinical setting composed of a mixture of creatures with different characters. The design specifically tries to explain about a person who is self-centered and shares the attitudes, features, beliefs and feelings only with oneself. The Kindred spirit comes into two forms that include a crustacean with claws to handle anything and a trumpet-like creature that speaks to the hearts of the people. The crustacean offers a relaxing environment hence good to listen to. This is in relation to its brainwaves that offer that conducive environment which makes someone feel relaxed. On the other hand, trumpet-like creature is very cooperative and listens to every issue. This creature therefore influences the surrounding hence one is able to appreciate and give in to the every event
Therefore, Kindred spirits is the close relationship between the normal needs of every creature and the excellent and most appealing needs in our everyday life. Consequently, Kindred spirit project harmonizes both what people imagine about and what they desire in real life situation. It also develops hands on feeling in order to make people have other options in life in future. As a result of this design, people are made to reform especially in things that they are so used to.
The main agenda of this design is to influence how people think hence change their mindset. This is mainly achieved by making someone feel relaxed in the mind hence be able to influence others through conversation. The design involves contribution in the comprehension and development of very important roles for the designers in very many aspects. With this approach, those involved especially the designers have to play a critical role in sorting out challenges in the society hence the beginning of the introduction of this design. Through this design therefore, the designers are well equipped with the necessary skills to come up with solutions to every problem. In addition, the designers are able to make the economy more competitive through the strategic role design. This eventually benefits both the designers and the society which becomes more flexible. Besides, the strategic designers will come up with new ways of solving problems that had never been imagined of.
Kindred spirit design is therefore applied in coming up with appropriate solution to globalization. According to Guy (1997), globalization sorts out problems in the society by offering a chance for enhancement in flexibility, improvement in quality and generation of better ways of designing liberalization of economic trade. He further states that globalization involves interaction of several aspects in the society especially in the advancement of information technology, advancement in the strategic moves especially in the manufacturing industry. Furthermore, he suggests that consumer culture results from the exponential growth of demand. The design profession is imbricated in this process because it creates a demand for its services through the excessive production typical of market expansion. In addition, he defends market expansion, rarely discusses the eco-effects of design innovation/over-production. Julier (1997) believes the consumer is a self-determining agent involved in the “exercise of private, personal choice within the market”, but he also concedes that consumerism “concerns the manipulation of needs and wants by dominant institutions”.
Rather than seeing inequality as the most apt term to describe how contemporary capitalism creates unequal relations between producers and consumers, Julier (1997) suggests that the concept of mutuality better characterizes the closeness that exists among the different form of economies that are present on earth. The varied views about reduction of the world into a very small village states that the world has to comply with the requirements of the multinational bodies in the whole world. The view of this idea is that such kind of ruling means that the developing countries are only being forced to adopt foreign values that do not belong to them. Therefore the big challenge is how to address the question as to whether reduction of the world into a very small village has any help to the third world countries. The argument is that, the reduction of the world into a very small village has only helped specific people.
According to Gui (1997), who was influential in the Design for Need and Appropriate Technology debates of the 1970s and 1980s, sees the effects of globalization on design as being a very important part towards improving people’s lives around the world. The writer therefore supports industrialization and designing as the means to bringing development in both the developed and the developing countries in the world. To begin with, Bonsiepe (1997) relates underdevelopment of most countries to the selfishness of some multinational organization whose interest is to exploit countries around the world. The writer further states that the reduction of the world into a very small village is the main reason as to why the developing countries are very poor. This also applies to some countries in the western nations. In addition, the writer reports that, reduction of the world into a very small village is the reason as to why there is increased rate of pollution of the environment. Therefore, these organizations embrace capitalism and always think that the resources are always present and should be exploited. In addition, they perceive environmental pollution as a very insignificant factor.
While Julier (1997) provides a useful description of how globalisation operates in design, he does not address the tensions and inequalities produced by globalisation. In contrast, Bonsiepe ( 1997) agrees that these approach of utilizing resources around the world due to the reduction of the world into a very small village is the main cause why people have no power to express how this move is affecting the environment. The writer is against all forms of this design especially the ones involved in promoting this ideology to the entire world. The writer further rubbishes the current move for different nations to associate in terms of what they consume. He further states that, independence beyond just choosing or deciding on what one wants to consume.
Market as a euphemism that obscures how corporations exert power over consumers, while exploiting the notion of consumer sovereignty for profit. The main concern rising from the world reducing into a global village is whether the current move promotes independence among nations or just countries that depend on others for survival. The writer therefore relates this move to the artistic work in a theatre in that reduction of the world into a very small village is not beneficial to the common people but to the few who are in control of all the affairs. In further analysis of the fetishisation of designed objects he draws attention to design’s role in branding to penetrate world markets in globalisation.
Third, a key factor in the proliferation of design through branding, Foster argues, is the
expanded role of the media and computing in the promotion of consumerism. On this basis, he argues that the inflation of design creates passivity in citizens, moulding them as consumers whose social role is reduced to making choices.
Within a context of the design globalised world, Foster observes a recurrence of the past ways of doing business in the current society and that the people involved are not ready to change their ways of thinking. The writer does not see any positive thing about this move but rather exploitation of people, meaning they “exist in the shadow of old genres”, He argues spectral artworks suggest regret for what has been lost. He says that this works reconcile so many forgotten works of art hence they make someone remember about the past sufferings making someone see no meaning of advancement from the past into the present world., and according to conflicting perspectives products. Artworks that evoke historical precedents also prompt memories of alternatives to globalization, and thereby interrupt the totalizing impulses of globalisation. In other words, alternatives exist in historical references that, although incomplete, are available to develop as viable substitutes to the socio-cultural dominance of global capital.
Foster defines such options as a mix between the future and the present. He contends that unresolved issues of the past are revisited in contemporary spectral artworks. Although Foster concedes the spectral quality of such artworks may be a “weak critique”, he insists they question the concepts that underpin globalisation by recalling the “wish symbols” and “forfeited dreams” of the culture in which it occurs assumptions about the structural coherence of the field of visual art in relation to society in the contemporary context of globalization.
Bonsiepe (1997) and Julier (1997) perceive globalization differently thus, Bonsiepe relates the economic decline of some nations to certain multinational companies who have selfish interests. The author perceives reduction of the world into a very small village as a way in which people look at the different blessings of wealth that countries own in both the developing and the developing countries. He further observes that, globalization results into enhanced environmental mass wastage due to need for amassing wealth by every individual. To such people who exploit resources, their main agenda is utilizing the resources without caring about tomorrow especially the effect it has to the environment. While Julier (1997) provides a useful description of how globalisation operates in design, he does not address the tensions and inequalities produced by globalisation. In contrast, Bonsiepe (1997) contends that the design should always focus on responsible use of the resources in order to take care of the future generations and also how to conserve and preserve the environment.
Conclusion
Designers and the public in particular develop their understanding of the world, the design of a toaster, and other people according to implicit theoretical frameworks. The world operates differently hence one need to understand different theories in order to comprehend these uncertainties. Planning in terms of designing therefore depends on having a fairly accurate understanding of the factors influencing a design situation.
In most cases, when researchers talk about a theory, they are actually talking about ideas that are relied on to understand a situation, but that have also been formalized in a philosophy or ‘capital-T’ theory. Externalizing implicit or unconscious theories is an important part of research because it makes ideas and assumptions open and available for questions to be asked about them without a formalized theory that pulls together many separate indistinct thoughts or assumptions. Therefore design researchers cannot really analyze or criticize their own and others’ designs and ideas.
In any research work, determination of the success of the design used is vital. Economic growth therefore based on productivity is the highest social value. This means that design success is evaluated solely within a quantitative framework according to economic measures. On the other hand, positivist refers to the fact the only information that is true is that information that has been researched through a scientific process.
Positivism follows scientific method in its rejection of all sources of data that cannot be backed up with empirical evidence. Positivist design analysis, therefore, holds that design, like science, can only be based on objective truths or universal laws. The focus on economic growth to evaluate a design’s success and the scientisation of design analysis rejects reflexivity in design practice and therefore the critical premises of experimental design (Fry, 1994, 89-100).
References
Benyus, Janine M., Biomimicry: Innovation Inspired by Nature (New York: HarperCollins, 2002). First published by William Morrow, 1997.
Bonsiepe, Gui, Interface: An Approach to Design, ed. Dawn Barrett (Maastricht: Jan van Eyck Akademie, Department of Design, 1999).
Draxler, Helmut, ‘Letting Loos(e): Institutional Critique and Design’, Art after Conceptual Art, ed.s
Galeffi, A 2009, ‘Biographical and Cataloguing Common Ground: Panizzi and Lubetzky, Kindred Spirits Separated by a Century’, Library & Information History, 25, 4, pp. 227-246.
Karakas, F 2011, ‘Positive Management Education: Creating Creative Minds, Passionate Hearts,and Kindred Spirits’, Journal Of Management Education, 35, 2, pp. 198-226.
Matisoff, D, & Edwards, J 2014, ‘Kindred spirits or intergovernmental competition? Theinnovation and diffusion of energy policies in the American states (1990–2008)’, EnvironmentalPolitics, 23, 5, pp. 795-817.
McDonough, William, and Michael Braungart, Cradle to Cradle: Remaking the Way We Make
Steen, M, Arendsen, J, Cremers, A, De Jong, A, De Jong, J, & De Koning, N 2013, ‘Usinginteractive model simulations in co-design: An experiment in urban design’, Codesign, 9, 1, pp.2-16 .Things (New York: North Point Press, 2002).
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using three of ethical principles of the global business standards codex, two arguments, one counter argument to write. Ethical principles of the global business standards codex :
1 – Fiduciary Principle:
Is concerned with money and finances
Each officer has a legal fiduciary duty to act in the best interests of the stakeholders and other employees within the firm.
An implied fiduciary duty for every employee to act in a way that generates positive benefits for the firm.
• Examples: conflicts of interest, good faith efforts for carrying out responsibilities. Prudence with the company’s resources, loyalty.
2 – Property Principle:
• Based on the belief that every employee should respect property as well as the rights of the owners of the property.
• Expected that the employee should be a good steward to the resource that he/she has access to.
• Examples: theft, misappropriation of funds, wasting resources, misappropriation of intellectual property
3 – Reliability Principle:
• Based on the belief that it is the employee’s responsibility to honor the commitments he or she has made to the firm.
• Examples: breaching a promise or contract, not fulfilling a promised action, ensuring that suppliers and other business partners are paid in a timely manner.
4 – Transparency Principle:
• Based on the belief that every employee should conduct business in a truthful and open manner.
• Assumes that employees will not make decisions based on a personal agenda.
• Examples: keep accurate and current records of business obligations, fraudulent and deceptive actions of the employee, financial information is presented in a truthful and accurate way
5 – Dignity Principle:
• Based on the belief that each employee needs to respect the dignity of all individuals.
• Encourages the enhancement of human development not only within the company and the marketplace, but also in the society at large.
• Examples: ensuring the human rights of health, safety and privacy.
6 – Fairness Principle:
• Based on the belief that stakeholders who have a vested interest in the firm should be treated fairly.
• Reciprocal fairness
• Fair exchange – getting paid a fair wage for an honest days work.
• Distributive fairness
• Equity – all groups (sex, gender etc.) get paid the same for the same work)
• Wages are distributed fairly amongst the various positions in the organisation
• Fair competition
• Avoiding price wars, bribery and collusion.
• Procedural fairness
Stakeholders are treated fairly and whistleblowers are protected
7 – Citizenship Principle:
• Based on the belief that every employee should act as a responsible citizen in the community.
• Expected that employees respect the laws of the community – criminal, competition, environmental, corporate social responsibility.
• Examples: Taking a universalist approach and doing the right thing even when no one is looking.
8 – Responsiveness Principle:
• Based on the belief that employees have a responsibility to respond to the requests for information about the operations from various stakeholders.
• Expected to react in a timely manner.
• Examples: disclosing who your suppliers are or how your goods are being produced.
using at least 3 out 5 materials i gave.
Louw et al.(2007)?
Codex was established by two United Nation’s Organization, FAO (Food and Agriculture Organization) and the World Health Organization (WHO) in the year 1963. Codex is the organization that establishes the international standards for food. Codex provides the guidelines that promote and implement the fair trade practices in the food trade. The principles of Global Business Standards Codex govern the entire fair trade practices in all business universally. This paper evaluates the fair-trade practices in the fresh food industry especially in the context of the value chains that enhance the supermarket business operations. Supermarkets provide useful and informative materials on fair and ethical trade practices that complement the basic concepts quality as applied in the convention theory. (Gereffi 1994)
Fairness Principle
Fairness principle stems from fair trade which refers to a trading partnership that’s based on transparency, dialogue, respect and equity in the international trade. The association of fair trade major objective is to facilitate fairness even to the small traders or producers in the international market by providing guarantees and fair trading terms and prices, access to credit, stable supply relationships and other fair conditions for their produce in the international market. (Smith & Barrientos 2005) Large multinational organizations have been known to frustrate the growth of smaller companies in the emerging markets in the hope of minimizing any threats to their business operations and profitability. (Vorley 2004)
Fairtrade is principally concerned with business terms and prices between the producers and buyers, the ethical trade main concern is the working environment of the workers. The conditions like favorable working environment, good ventilation and adequate sunlight or visibility. Ethical trade ensures that the employers provide safe and comfortable working environment for all the employees. (Lee & Billington 1992) For many years, workers in the supermarkets were overworked and their counterparts in the factories worked under very poor working conditions like in the agricultural, garment and foot-ware industries. (Dolan & Humphrey 2004)
The impersonal capitalist markets and the characteristics of the unfair trading practices that dominated the international market in the early 1960’s that marginalized most producers were greatly challenged by the introduction of the fair-trading practices. (Murray & Raynolds 2000)
Reliability Principle
Reliability principle is hard to address when the buyers exert pressure on the suppliers to deliver goods on time with such instruments as insecure supply contracts, shortening lead times, falling prices and irregular orders of goods. These suppliers offset their costs by passing on the loses to the poor workers who have to work through short term contracts, increased workloads, low wages and impromptu long periods of work with unpredictable rates of overtime compensation. These practices are in direct violation of the codes that buyers and suppliers are supposed to promote and which the buyers insist that the suppliers must adopt and implement positively. The labor laws that the suppliers are supposed to honor are difficult to implement because of the harsh trading terms that the buyers insists on the suppliers to adopt. (Halbenwang 2004)
For many years, the South African Grocery market favored large and well established suppliers whose reliability can’t be matched with the small suppliers hence the ineffectiveness in the application of the equity principle. (Louw, Vermeulen, Kirsten & Madevu 2007) To guarantee the small supplier’s consistency on food quality, safety and volumes is very difficult due to competition from the large producers hence the apparent discrimination. (D’Haese & Huylenbroeck 2005)
However, the brands that are popular and available are not necessarily the best in terms of quality as most consumers rely heavily on the information available from the media through advertisement and other sources of information. Smith & Barrientos (2005) contends that the information available to the public is mostly limited and the imbalance that exists between the consumers and the retailers is associated with the search costs that may be prohibitive and unaffordable hence the customers may not be in a position to discover and also compare the food prices and services at all levels of each individual value chain. The brand loyalty ones created can attract more customers by virtue of the market power that the brand name has on the consumers.
The vertical market power that exists in big chains and brand names makes the fair trade play second fiddle as they can use their economies of scale to influence the prices that are payable by final consumer and also they can minimize or influence the prizes negatively that are receivable by the raw material suppliers. The Australian market has positive attributes but double marginalization arises where two companies that are vertically adjacent can seek or scheme to maximize their profits. (Cotterill 2006)
These activities may raise the prices of the retail markets, lower the supply profit or limit the final output. These inadequacies can be addressed by applying the vertical integration where a particular chain cannot be allowed to buy all the suppliers or allow a supermarket to dominate and monopolized the sales of a supplier. The private label companies can be utilized to minimize double marginalization.
Dignity Principle
The principles of human rights have to be adhered to in an organization. The rights of the employees to have a safe and secure working environment that is well ventilated and well lit is mandatory. The dignity of the workers have to respected by offering competitive compensation and also treating all the employees fairly without any discrimination based on gender, color, race, disability or nationality. According to the fair trade practices, all the employees should be compensated adequately and their working environment and conditions must be acceptable and standardized. The workers are entitled to a safe working environment that is well lit and ventilated. (Young 2003) Fair trade ensures that the employers provide safe and comfortable working environment for all the employees. For many years, workers in the retail outlets and supermarkets were overworked, underpaid while others in the factories worked under very poor working conditions like in the shoe factories, agricultural sector and the shoe industries. All the employees have a right to a dignified treatment under the fair trade agreements.
For the consumers, the fair trade allows the consumers to have an opportunity to choose branded products from the international markets. The small scale producers and suppliers are given equal opportunities to participate in the market and trade openly with other big players in the market. The multi-actor approaches as illustrated by Louw et al (2007) confirms the importance of the fair trade practices that aim at reducing the bottlenecks that are in the supply chain and which promote the collective actions that facilitate equity and competitiveness.
References
Murray D, Raynolds L., 2000, Alternative trade in bananas: obstacles and opportunities for progressive social change in the global economy. Agriculture and Human Values 17: 65–74.
Gereffi G., 1994, Capitalism, development and global commodity chains. In Capitalism and Development, Sklair L (ed.).Routledge: London; 211–231.
Vorley, B., 2004, Food Inc. Corporate Concentration from Farm to Consumer. UK Food Group: London.
Young, G., 2003, Fair Trade’s Influential Past and the Challenges of its Future. King Baudouin Foundation: Belgium.
Dolan C, Humphrey J., 2004, Changing governance patterns in the trade in fresh vegetables between Africa and the United Kingdom. Environment and Planning 36(3): 491–509.
D’Haese, M & Van Huylenbroeck, G., 2005, The rise of supermarkets and changing expenditure patterns of poor rural households: a case study in the Transkei area, South Africa. Food Policy, 30: 97–113.
Louw, A., Vermeulen, H., Kirsten, J. and Madevu, H., 2007, Securing Small Farmer Participation in Supermarket Supply Chains in South Africa, Development of Southern Africa, 24:4, 539 – 551.
Smith, S., & Barrientos, S., 2005, Fair Trade and Ethical Trade: Are There Moves Towards Convergence, Sustainable Development, Sust, Dev. 13, 190 – 198. Wiley InterScience, online publication, www.interscience.wiley.com. Doi: 10.1002/sd.277
Halbenwang, B.B (Ed.) 2004, Urbanisation trends in South Africa. Social Environment, Vol. 9, April. Institute for Futures Research, University of Stellenbosch.
Lee, H.L. & Billington, C., 1992, Managing supply chain inventory: pitfalls and opportunities. MIT Sloan Management Review, 33(3): 65.
Cotterill, R.W. (2006). Antitrust analysis
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PROJECT REPORT ASSIGNMENT IN REPORT FORM 2500 WORDS TEN PERCENT PLUS OR MINUS
AS H2 RAY CONSUITANT LTD
CLIENT AS CHEVERON OIL COMPANY
DEFINITION OF A PROJECT
WHAT IS SOLAR ENERGY
WHY CHOSEN SOLAR ENERGY
Solar Panels Enhancement
• Develop a justification for the area of improvement (such as improvement in
service, new ways of working, even new products.
• Prepare the following analysis : Stakeholders Analysis, Risk Analysis, Constraints
(Internal and External).
Undertake a feasibility study for the Project.
• Develop a work breakdown structures
• Develop costing for the project based on identifying (research required – prices
should be based on realistic indicative figures) the main components that you will
need to procure in order to carry out the project:
? Machinery
? Material, product, software, etc
? Manpower: (installers, experts, etc)
Budget = £500,000 to £1 million.
Deliver a detailed project plan showing the benefits to the organisation including:
• Time-scale and risk.
• Critical Path Analysis, Gantt chart, Communication Plan
? Word count: 2500 words (- or + 10%)
? Structure: report style
? The report is expected to reflect a sufficient level of research Word count: 500
• Critically analyse the component parts of a major
oil project
• Evaluate the time and cost constrained project
plan and complete a Critical Path Analysis on the
project
• Analyse the planning process and management of
a major oil project
• Discuss project management constraints of
quality, time and cost
Development of knowledge and understanding:
development of detailed knowledge of project
management and how these may be required in everyday management in oil & gas companies
Cognitive/intellectual skills: ability to analyse data and to evaluate significant evidence and interpretive actions required as a consequence
Key/Transferable skills: demonstrate skills in
information management and in defining complex
problems by use of work breakdown structures
Practical skills: ability to operate in complex situations and to present and use a wide range of techniques
SAMPLE ANSWER
Solar Project Assignment:
Introduction:
Solar steam injection system
The idea is for Naiga-Solar to construct the above solar energy for chevron. The project uses over 7,600 mirrors to focus the sun’s energy into a solar boiler. It is a unique project aimed at demonstrating the viability of using solar energy to produce oil. The steam produced is injected into oil reservoirs to increase oil production. The project is the only one of its kind in the world.
It is the desire of Chevron to enhance oil production from the coalinga field by injecting steam to heat the crude oil, thereby reducing its viscosity and making it easier to produce. The solar-to-steam project will supplement the gas-fired steam generators and help determine the commercial viability of using heat from the sun instead of natural gas to generate steam.
Plan:
Naiga-Solar is incorporated with the sole purpose of constructing a solar steam injection system in Nigeria. This is a Chevron funded project that is to be implemented in Nigeria. The choice of the country is almost paradoxical given the amount of oil found in Nigeria. Despite the oil wealth, a majority of Nigerians do not have access to regular and reliable energy source.
The choice of Solar Panel Enhancement to achieve energy sufficiency is ideal especially given the amount of sun that is experienced in the country. Nigeria being in the Equatorial region does not have four seasons (winter, spring, summer and autumn) and has on average of 12 hours of sunshine daily. This makes an energy project viable since the basic raw material is abundant and cheap.
Objectives
With the incorporation of Naiga-Solar, the company will be fulfilling some very important objectives. It will in its operations, aggressively pursue a project that is both sustainable in sourcing for raw materials and operations, contribute both in offering practical solutions to the problem of insufficient power and when this is achieved, that the power is affordable and reliable. To achieve this objective, Naiga-Solar and Chevron believe that the Sun will offer affordable solutions to the challenge of universal affordable and reliable energy.
Justification
Nigeria must start looking at other sources of energy apart from fossil fuels (Oil). For the amount of Oil that has been extracted from Nigeria, the economy should be more robust and the population would be much wealthier. This notwithstanding, Nigeria with its unreliable energy supply system is experiencing rapid population growth. This will only make an already bad situation worse. When the above factors are considered in light of the environmental degradation that has happened in the Niger delta, the need for an alternative source of energy cannot be wished away.
The choice of solar as a viable alternative is premised on its abundance- especially in Nigeria a tropical country. Solar energy is simply the energy generated directly by the sun through a thermonuclear process, which changes nearly 650,000,000 tons of hydrogen to helium per second and then collected on the Earth (Graf, Monnerie, Roeb&Schmitz 2008, p. 57).
The choice of a solar as opposed to Oil as a source of energy is based on the need to be concerned about the environment. The solar energy is both sustainable and ubiquitous. It is also the safest and least environmentally exploitative and degrading source of energy. It can also significantly contribute in the lessening of energy-related GHG discharges which help in reducing climate change.
Feasibility study for Solar Panel Energy
A Solar power project has to be located in a place where there is a lot of sun. This is because the sun the main raw material in generating solar energy. By identifying the ideal location, construction should not take a long time. Identifying the ideal location will require significant resource investment. The work schedule is meant to run for a period of eleven weeks with an aim of raising 20 MW of solar power.
It is important to consider all stakeholders if the project is to be successful. Those to be considered will include individuals, the community, government, private sectors, foreign bodies, customers and international influence. These stakeholders play an influence on the project as they will determine the rate with which the project is to be completed.
Project Phase Lifecycle
From beginning to the end, Niaga-Solar will undertake the solar panel enhancement project in four phases. The project has been divided into the phases to facilitate easier monitoring and evaluation of specific benchmarks that will be agreed and set-out at the project onset. The project phases will be initiation, planning and development, implementation and commissioning and hand-over.
Initiation: it is at this stage that the projects scope, purpose, objective and deliverables will be defined and established. With this will be the setting up of the actual project office (Steinfeld& Palumbo 2008, p. 11). It will now be the responsibility of the project office to follow up on approval requirement allowing the project to move to the next phase.
Design planning and development: With the approval of the project, the project team will move on to defining the project activities. This definition is important as it eases the task of mapping out the project operations sequence, makes the task of estimating required resources and time for the completion of the project (Azar &Sandén, 2011, pp. 136).
Execution/Implementation and Control: The main task of this stage will be to actualize the plan already established the previous phase (Azar &Sandén, 2011, pp. 136). The project team will have to use the procedures, templates and schedules already developed to deliver the project efficiently and effectively.
Commissioning and Handover: Once the project is complete, the team that will be taking over from the project team will come in to be part of this phase. In this phase, the project will commissioned and as the equipment and installation are being monitored train the new team on the operations of the project. They will together perform functional and installation tests on the plant (Azar &Sandén, 2011, pp. 136). After all the processes have been audited, the project will be ready for handing over to the project owners at a date convenient to them.
PROJECT PLAN FLOWCHART
WEEK / ACTIVITY
1
2
3
4
5
6
7
8
9
10
11
Feasibility study: Designing, Planning and Development phase.
Literature Review: primary and secondary sources
Execution phase: Site preparation, clearing of the field and Site construction.
Constituent installation: materials, software and product installation.
Acquiring manpower.
Methodology
Commissioning and Handover phase.
Stakeholder Analysis:
This is a project that will bring together a diverse group of people all with a stake in the successful completion and implementation of the project. These stakeholders will each have a unique contribution to the project that will cover their interest in the project. Similarly, each will exert influence and exercise power equal to their contribution to the successful implementation and commissioning of the project.
In undertaking the stakeholder analysis, the project implementation team will be able to develop a useful and viable engagement plan that will guide the project interaction with the stakeholders. Each stakeholder will be plotted against a two variable graph taking into consideration their resources and plotting their significance against their influence (Arce, Medrano, Gil&Cabeza2011, p. 2766). The stakeholders in the first quadrant – high influence and impact on the project, will be local politician and senior project officials.
The local community – beneficiaries of the project, will be in the high significance and low influence quadrant. It will be their responsibility to protect their interests by engaging in special initiatives – (public-private partnership). In the third quadrant, among the stakeholders with high influence and low interests are the financial administrators.
The project success is influenced by their contribution during implementation. They ensure all the other stakeholders do not lose sight of the project goals (Arce, Medrano, Gil&Cabeza2011, p. 2764). Finally the stakeholders with low influence and interest in the project are the consumers of the generated power. This group of stakeholders will require very minimal if any monitoring at all.
Constraints Evaluation:
External Constraints and possible solutions;
Quality: Naiga-Solar will have to deal with the variable demand. This is a especially significant in renewable power generation. Currently, Naiga-Solar projects a 13% forecasting backup margin which it believes will be adequate to ensure tolerable system capability. This will be used as cover for peak freight requirement and to anticipate and dissipate unanticipated system eventualities.
From its planning, Naiga-Solar has exhibited awareness of the augmented demand danger linked with renewable assets. To address this, Naiga-Solar is considering the potential of energy stowing skills, client demand reaction programs and the want for extra quick-start burning turbines as potential qualification strategies (Azar, &Sandén 2011, p. 137). This diversification strategy should assist Naiga-Solar reduce the magnitude of productivity disparities and to alleviate concurrent solar reductions from cloud cover.
Cost: For a project that covers the use of renewable energy, the two principal costs linked with the conduction and delivery of solar energy are the capital and functional costs of the organization such as lines and substations and energy lost during delivery makes this project inefficient as costs are incurred(Hermann 2006, p. 1685). Conduction and distribution costs may also differ greatly depending on geographical factors specific to certain regions this affects the demand pattern. The most effective way to reduce these costs by increasing the use of internal constrains.
Time: In project management, time is a friend only to those who manage it well. This is because it plays a very significant role in determining the success or failure of a project. Timely completion of a project is considered a measure of success while overshooting the set timeframe is a sign of failure (Bosi& Pelosi 2007, p. 47). To manage time best, a Gantt chart present very useful possibilities given its diversity as a tool.
Funding: When a project is adequately funded right from the beginning, this enhances its chances of success. Adequate funding allows the operation of the project to be executed effectively and efficiently (Bosi& Pelosi, 2007, pp. 55). On the other hand, inadequate funding may slow down the project’s operations or lead to shortage of supplies, thereby leading to the project’s failure. This problem will be addressed by preparing a budget and ensuring that all expenditures are in line with the budget.
Raw Materials: When setting up a project it is advisable to do so near the source of the raw materials. This point illustrates the importance of raw materials in determining the success or failure of a project. Inadequate supply of or total lack of raw material may cause termination of a project (Bosi& Pelosi 2007, p. 4511).
In relation to this, reliable suppliers will be signed with the role of supplying equipment and other materials that are needed for the successful implementation of the project. A signed contract/agreement will be made with these suppliers to help avoid issues such as default in supplying raw materials.
Internal Constraints and possible solutions;
Labor: Every project needs labor to actualize it. It is people who actually take charge of the different aspects of a projects operation and activities. Inadequate personnel could jeopardize the project and lead to its failure. Naiga-Solar will hire enough personnel to manage all the various activities and aspects of the project.
Activity Performance: There exists a real and alive risk that a team member could perform or execute an activity contrary to the proscribed project way. Such an action on the part of team members may impact negatively on the accomplishment of the project’s objectives (Bosi& Pelosi, 2007, pp. 56). This problem will be addressed by informing project team members on the significance of adhering to the project’s guidelines/procedures.
Conflicts among project team members: Within a group, conflicts are good. However how they are managed makes the difference between the success or failure of a group undertaking. The same is true with this project. With conflict between members of the team is not managed well, the team and by extension the project will disintegrate (Bosi& Pelosi, 2007, pp. 53). As such, the project may fail to realize its goals. This problem will be addressed by educating project team members on the significance of teamwork.
Communication: If the project lacks an effective communication strategy, it will suffer from poor information flow among team members. This could lead to further problems brought about by misinterpretation. It is important that the open communication is encouraged between the team members (Bosi& Pelosi, 2007, pp. 54). Besides, directive will issued from the project manager to the rest of the project implementation team.
Policy Constraints: Whenever there is a deviation from the project policy no matter how miniscule, the chances of a problem arising are greatly amplified. To deter this, Naiga-Solar needs to consider employing punishment to ensure compliance to the projects governance policies.
Work Breakdown Structure (WBS): Method of Subdivision
Work Breakdown Structure: Activity List
The activity list will refer to units of work that are separate from other tasks. The activity list will have scheduled start and end dates, short lifespan and an assigned budget (Bosi& Pelosi 2007, p. 64).
Project Scope Management:
Naiga-Solar will adopt a manage changes within it operations by developing and implementing a change management plan. This strategic decision is premised on the knowledge that the only thing that is constant is change. The current strategy of investing in the solar powered steam injection system is actually anchored on the backbone of managing scope in the long-term.
Project Scope Verification:
Verification will entail formalization of the project’s acceptance by stakeholders. As a direct consequence of this, the work products will be reviewed to ensure that their completion is successful (Bosi& Pelosi 2007, p. 62). Some of the areas that will be verified are work results and product documentation among others.
Project Change Control:
Clear definitions of all proposed changes in the project execution will be captured. After this, there will be no other alternations to the project. To achieve this, the following processes will be covered. These processes will include change proposal, summarization of impact of the proposed change, decision making, change implementation and change closure (Bosi& Pelosi 2007, p. 63). Besides, a change log will used in providing a record of all the requested changes and decisions made. A change request form will be employed in documenting change details for the solar project.
Project Impact Statement:
Naiga-Solar will by installing the solar plant be contributing significantly to the provision of a solution to the perennial energy problem in Nigeria. The sun should provide a reliable and safe energy that will be available to the majority of the citizenry.
Critical Path Analysis:
It will be important that the breakdown of the project into executable activities or events. This will then be aligned in their execution order and a network prepared. The time and cost associated with each individual activity is determined. It is only then a critical path or the longest path via the network determined (Bosi& Pelosi 2007, p. 66).
Gantt chart
Communication Plan
The environmental gains from adoption of the new operations will need to be communicated to the community. It has to be exhibited in light of the gain the community will gain as a result of the adoption of sustainable extraction strategies. For this task, the company will rely on news from the broadcast media – local and regional FM stations, community outreach programmes – this could generate word-of-mouth channel if there is a positive perception.
Evaluation of Information:
When evaluating an technology that is trend setting, the challenge becomes how compare. The polar steam injection system if successful would greatly enhance the environment for the communities where it operates. This would gain for Chevron social points. For a company that has for so long been the face of environmental degradation, it could do with some positive news. It is anticipated that the results should start coming through in nine months to one year. This timelines are based on analysis of the implementation of similar projects coupled with knowledge of local conditions by Chevron staff. The risk of violent attack or even kidnapping is very alive. The Niger Delta is designated high risk posting to all staff – local and international.
Project Total Cost:
Total (in £)
Research, Development and Testing 150,000.00
Transport (to the site) 75,000.00
Construction of Solar boiler steam system 500,000.00
Research and Advance Party 11,250.00
On-Site Activities 10,000.00
Manpower (Locals and experts) 150,000.00
Contingencies 103,750.00
Total Cost 1,000,000.00
Profoma Profit and Loss
Income (Contract to construct Solar Steam Injection System) 1,000,000.00
Expenses:
Transport 75,000.00
Manpower (Locals and Expatriate) 150,000.00
Construction, testing and commissioning 671,250.00
Contingencies 75,000.00971,250.00
Profit (Loss) 28,750.00
Recommendation and Conclusion
It is anticipated that the universal demand for energy will not dissipate soon. Using the solar steam injection system, Chevron should be able to increase their production efficiency significantly. By using solar energy to produce oil, chevron is making significant investment in ensuring the environment is less polluted. It will also be able to produce more oil using the same investment as a result of the steam heating the oil and making it less viscous thus reducing the cost of production significantly.
References
Arce, P., Medrano, M. A., Gil, E. O. &Cabeza, L.F. 2011.Overview of thermal energy storage (TES) potential energy savings and climate change mitigation in Spain and Europe. Applied Energy Journal, 88(8), pp. 2764-2774s.
Arif Hasan, M., &Sumathy, K. 2010.Photovoltaic thermal module concepts and their performance analysis: A review. Renewable and Sustainable Energy Reviews, 14, pp. 1845-1859.
Azar, C. &Sandén, B. A., 2011. The Elusive Quest for Technology-Neutral Policies.Environmental Innovation and Societal Transitions, 1(1), pp. 135-139.
Bosi, M., & Pelosi, C. 2007.The potential of III-V semiconductors as terrestrial photovoltaic devices.Progress in Photovoltaics: Research and Applications, 15(1), pp. 51-68.
Bouzguenda, M., and Rahman, S. 2012.Value analysis of intermittent generation sources from the system operations perspective.IEEE Transactions on Energy Conversion, 8(3), pp. 484-490.
Graf, D., Monnerie, N. Roeb, M. &Schmitz, 2008.Economic comparison of solar hydrogen generation by means of thermochemical cycles and electrolysis. International Journal of Hydrogen Energy, 33(17), pp. 4511-4519.
Green, M.A., Emery, K. &Hishikawa, Y. 2010.Solar efficiency tables (version 36). Progress in Photovoltaics: Research and Applications, 18(5), pp. 346-352.
Hermann, W. A. 2006.Quantifying Global Energy Resources.Energy Journal, 31(12), pp. 1685-1702.
Jacobson, M. Z. &Delucchi, M. A., 2011.Providing all Global Energy with Wind, Water, and Solar Power, Part II: Reliability, System and Transmission Costs, and Policies.Energy Policy, 39(3), pp. 1170-1190.
Steinfeld, A. and Palumbo, R. 2008. Fuels from Sunlight and Water.Sun at Work in Europe, 12(2), pp. 8-10.
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OIL AND GAS RETAIL ASSIGNMENT IN REPORT FORM
IN 2000 WORDS
Learning outcomes to be examined in this assessment
1. Demonstrate the ability to analyse the factors affecting the present size and structure of the current oil and gas retail sectors and the impact of the rising price of oil.
2. Evaluate the potential of technological change on the energy retailing industry in the next decade.
Assessment criteria Explanatory comments on the assessment criteria Maximum marks for each section content, style, relevance, originality Clear demonstration of rigorous research from recognised authoritative sources. 50% format, referencing, bibliography Harvard 10% Constructive critical analysis, introduction, conclusion Demonstration of a clear understanding of the issues. Use of academic models. 40%
At the European Summit on March 20th and 21st, government leaders were supposed to agree
climate and energy targets for 2030. Instead, they discussed Crimea, Ukraine and
Russia. Leaders were right to postpone discussion of the targets, but wrong to postpone action
on reducing Europe’s dependence on Russian gas. Russia supplies around a third of the EU’s
gas. So the Union is to an extent dependent on Moscow – as it discovered when the Russians
turned off the gas flow though Ukraine in 2009. But the Kremlin is, to a greater extent,
dependent on revenue from oil, gas and coal exports – above all to the EU. Indeed, over half of
the Russian government’s revenue comes from the sale of fossil fuels: 19 per cent each from
gas and oil and 14 per cent from coal. The EU summit conclusions did refer to the need to
diversify sources of gas, and asked the European Commission to prepare a report on this. That
approach lacks the urgency which the situation in Ukraine demands. If EU leaders want to
impose sanctions on Russia which may change its behaviour, rather than simply slapping
Putin’s wrist, they should reduce purchases of Russian energy as far and fast as possible. To
do that, they must develop alternative energy sources. That would cost money, but deliver
major energy security, foreign policy and climate benefits. – See more at: http://www.cer.org.uk/insights/how-reduce-dependence-russian-gas#sthash.1felVk05.dpuf
ASSIGNMENT TASK
Europe energy strategy tends to focus on energy efficiency, alternative sources of gas,
renewable energy, coal and gas with carbon capture and storage (CCS) and nuclear power. How
the new policies and technologies will impact the Oil and Gas Industry in terms of production
and consumption? What would be the new strategies to tackle these impacts?
Grade
UK% marks Characteristics.
Distinction 70%+ • Very high standard of critical analysis using appropriate conceptual frameworks.
• Excellent understanding and exposition of relevant
issues.
• Clearly structured and logically developed
arguments.
• Original thinking and clarity of arguments and/or
assertions made.
• Good interpretation of the geopolitics of oil and the
new paradigm in energy policy
• Substantial evidence of well-executed independent
research.
• Excellent evaluation and breadth of source material
including Academic research materials.
• Relevant data and examples, all properly
referenced using Harvard system.
SAMPLE ANSWER
Table of Content Page Number
Executive Summary…………………………………………………………………………..3
Introduction………………………………………………………………………………….3
The Europe energy strategy and energy efficiency………………………………………. 3
Alternative sources of energy, gas, renewables, coal and gas with carbon capture,
Storage and nuclear power……………………………. ……………………………………….5
Policies and technology………………………… ……………………………………………6
The impact on oil and gas industry and remedies……………………………… ……………9
References……………………………………………………………………………………13
Executive Summary
The political tension existing between Russia, the European Union and its immediate neighbours is affecting the production and the expansion of the oil market. But the reduction in oil production is compensated by increases in oil prices due to shortages in the global market. The Russian Ural Mountains contains the world’s richest reserves for natural gas, coal and oil. Oil and gas exports make up to 70% of Russia’s total exports and accounts to about 16% of its GDP.
Russia supplies about 30% of the total energy needs of the European Union. To avoid reliance on the Russian oil and gas, the European Union has opted to exploit other alternative sources of renewable energy. Countries like Denmark have already laid out plans to be self reliant on renewable power sources by the end of the year 2050 while countries like Poland still rely heavily on the Russian oil to power its economy (U.S. Energy Information Administration, 2014).
Introduction
Russia is one of the countries with a mixed economy of high income while the state controls most of the strategic resources in the economy. The Russian economy relies mostly on its energy revenues to maintain its capital and recurrent expenditures. The Crimean crisis has led to a recession in Russia that has affected its economy largely due to its dependency on the energy revenues.
The energy Strategy that Europe seeks to adopt is based on three objectives. a) It seeks to avoid reliance on the Russian Oil b) Improve production in the energy sector c) Improve environmental conservation.
The reliance on oil from Russia has made it possible for the Russian government to continue its forceful annexation of the Crimea region as a source of its own oil supplies and revenue source. Most of the European member states depend largely on the Russian oil as a source of energy.
(U.S. Energy Information Administration, 2012)
The EU seeks to exploit alternative sources of LNG gas, maximize the use of renewable energy like hydro electricity, wind energy and the geothermal energy extraction, Coal and gas with the carbon and storage popularly referred to as CCS and also introduce the use of nuclear power.
To improve efficiency in the energy sector, the EU has made plans to retrofitting the double glazed insulation to existing building in European homes to curb the loss of energy in a bid to improve the efficiency of energy consumption during winter. It also seeks to improve the net work facilities for transporting heat from the generation plants to homes and commercial centers. It’s estimated that about 10% of the heat supplies is lost during transportation on average but it some instances up to 50% is lost in transportation networks (Tindale, 2014). The other strategy is to expand the capacity for EU to import LNG gas by constructing new pipeline to the coasts of Caspian sea to Europe, from Azerbaijan to the coast of the Mediterranean sea in Turkey known as the Trans-Anatolian pipeline whose contracts have already being worked out and signed and the construction on Italian Trans-Adriatic pipeline. These infrastructures have been recommended to improve production in the energy sector and to reduce the loses that increase the cost of consumption. The Russian crisis that was occasioned by its reduction of the supply of gas from the Ukraine region to the EU prompted the initiatives to develop alternative sources of energy. The major challenge is to develop the use of renewable energy in a bid to conserve the environment and to promote the protection of the environment through the control of carbon emissions. Renewable energy is costly and currently the sources are not fully developed. The nuclear energy can be used to supplement the sources of renewable energy but with the Japanese incident of the 2011 Fukushima accident most countries are reluctant to adopt the nuclear energy as it’s considered risky and dangerous to human health.
The alternative sources of energy that EU has planned to undertake are the use of renewable energy like hydro electricity, wind energy and the geothermal energy extraction. The objective of CCS is to restrict the CO2 to its own bases of operation and preventing it from entering the atmosphere. It’s a system that is also known as the geoengineering technique (Smit, Reimer, Oldenburg and Bourg, 2014).
The European Union’s major policy is to reduce its energy imports from Russia to minimum levels. Russia supplies almost 30% of Europe’s energy supplies as at the end of year 2012.
The EU policies target the promotion of renewable energy using modern technology that minimizes the carbon emission (U.S. Energy Information Administration, 2014). Coal energy as a source of renewables has some setbacks because of its high air pollution rate (Tindale, 2014). However, the use of CCS (Carbon Capture and Storage) has been introduced to reduce such emissions (Metz, 2005). CCS is a process where carbon dioxide is captured from the large point emission sources such as the fossil generated fuel power plants and transporting it in a way that it’s not exposed to the environment usually using underground geological formation (Wilson and Gerard, 2007). The objective of CCS is to restrict the CO2 to its own bases of operation and preventing it from entering the atmosphere. It’s a system that is also known as the geoengineering technique. The first trial of the use of CCS to minimize the release of carbon dioxide into the atmosphere was applied in Schwarze Pumpe in eastern Germany that was being operated by a firm known as Vattenfall in the year 2008. It was the first successful application of technological feasibility and also economic efficiency in the protection and conservation of the environment in bid to create a sustainable environment for future generations (Bistline, 2010).
The EU policies on renewable energy have been given more weight by the German Chancellor Angela Merkel estimated that the EU transition to the use of renewable energy in all the sectors will take probably fifty years to be fully implemented (Bistline, 2010). Gas is relatively better than the use of Coal in energy production when it applies to environmental conservation and protection measures. However, Germans can’t be persuaded easily to adopt the nuclear energy production method as they consider it unsafe following the Japanese experience in the year 2008 in Fukushima. Germany would prefer to use coal energy than the nuclear.
The other strategies target the improvement of capacities in handling and transporting the energy generated. Most of the power supplied or generated is lost during its transportation and also on its application. It’s estimated that about 10% of the heat supplies are lost during transportation on average but it some instances up to 50% is lost in transportation networks (Tindale, 2014).
EU policies aim at controlling and improving efficiency in the energy production plants and also in storage systems. The replacements of the heating systems in some cities have to be overhauled to improve the efficiencies in gas handling and transportation logistics (Tindale, 2014).
The other policies target the development of new pipelines to transport gas and oil from different coasts in the region to supplement or reduce the dependency on the Russian energy. The Construction of the new pipeline from the Caspian Sea to Europe, from Azerbaijan to the coast of the Mediterranean Sea in Turkey known as the Trans-Anatolian pipeline and the construction of the Italian Trans-Adriatic pipeline are some of the policy statements that EU plans to implement.
The impact of transforming a nations power consumption from the oil and gas powered industries to green energy consumption or other non- pollutant sources of energy are the cost implications that may be required to implement the construction of such energy plants like the hydro electricity power plants, wind energy power generators and the geothermal power generation, coal and gas extraction with the modern system of carbon and storage formulas referred to as CCS and also introduction of the use of nuclear power that is generated from nuclear power plants (Tindale, 2014).
These projects require substantial amounts of funds to improve and expand the current infrastructures that will eventually be passed on to consumers in the form of increased rates of electricity or energy supplied (Tindale, 2014). The construction of the pipelines from different coasts in Europe to different destination to transport oil and gas will also take time to construct. Other forms of harnessing the energy will also be adopted. These methods will create jobs and also increase the circulation of money in different economies in Europe. The economies of these affected countries will start showing signs of growth especially as the new infrastructures are constructed.
The application of CCS in controlling the CO2 emissions to the atmosphere will certainly have some cost implication which naturally may lead to extra costs in energy generation (Tindale, 2014). The CCS will initially need power or energy to capture and compress the CO2 and it will need extra capital costs to set up the whole system. These processes will increase the consumption of energy and also the energy requirements of such plants. For example, in a coal powered plant, the CCS will require about 25% of the energy generated to operate the CSS system while in a gas powered plant the CCS will require 15% of the total energy output of the plant to maintain the CSS system. The cost of capture and storage of CO2 varies with the method of CSS applied. In general, the cost of power or energy will increase with margins ranging from 30% – 60% (Tindale, 2014).
Renewable gas generated from farm waste, sewage system, food and manure can be harnessed and collected and transferred to a power grid so that it can be distributed to other consumers. These options when fully exploited and integrated to the national energy supply system will eventually do away with the use of fossil energy. The future of the energy industry is based on green energy policies that seek to stop or minimize the use of oil as a source of energy. These sources of alternative energy generation can supplement environmental protection measures. If the sources of energy are restricted to renewable energy supply then the use of expensive CCS operations will also reduce drastically and it will also reflect on the charges that the consumers are paying to obtain power. The CCS systems depend on the energy extraction method and the materials that are being extracted.
The EU strategy will be a gain to the proponents of green energy as some countries like Denmark have already strategized on how to transition from their current dependency on fossil energy to 100% dependency on renewable energy by the end of the year 2050 (Tindale, 2014). The other European countries like Germany, France and Italy that use to rely on the Russian oil will also have to exploit other means of generating power for their consumers and industrial power plants.
The factors affecting the size and the structure of the current oil and gas sectors in Russia are Political, economical, environmental and technological. The Russian economy largely depends on the oil exports which also shapes its political environment. The consumption of oil and gas remains on the essential lists of most families and industries and it remains the most critical component of the industrialized world growth factor. It’s the key component for all nations that are working progressively towards economic prosperity and empowerment of populations. As the demand for oil and gas increases, its production is not matching the increment (Longwell, 2002).
The technological advancement in exploration techniques has led to rapid expansion in the new discoveries of oil reserves in parts of Africa, North Alaska, Russia and in the Middle East. Technological advancement has also led to new development of efficient methods of extraction and refinery processes. The increment in prices of oil products has not been a factor in the production quantities; however, technology and geopolitics have been at the center stage of the expansion processes (Longwell, 2002).
The rising prices will eventually encourage more diversification in energy consumption. The alternative use of clean energy may gain more ground as a result of regular oil price increases.
The energy retail market will continue experiencing high prices as more demand in the energy market continues to rise as the new oil discoveries are being made much further away and in the deeper seas. The further away they are the more expensive their transportation costs raises their final market prices in the consumer markets (Longwell, 2002).
To conclude, the new policies on renewable energy sectors across the world are targeting the reduction of non- renewable energy use to manageable levels that will result in more renewable energy use across the world. The green energy revolution is expected to generate billions of dollars in commercial activities. The renewable energy resources include solar, water, wind, bioenergy and geothermal. These resources when fully exploited then the reliance on oil as the only source of energy would certainly reduce. The policies that aim at promoting green energy are expected to erode the future oil market prices but it will take many years the global economy can rely on other sources of energy leave alone renewable energy.
References
Bistline, J.E., 2010, Energy Policy on the Role of Carbon Capture Technologies in Greenhouse Gases Emissions and Reduction Models: A Parametric Study for the US Power Sector, Elsevier (Abstract) Vol. 38, Issue 2. Viewed 28 November 2014 from http://www.sciencedirect.com/science/article/pii/S0301421509008362
Product development strategy adopted by an energy company as it attempts to build an effective international innovation strategy.
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Choose two components of the new product development process e.g. idea generation, product development, market analysis, commercialization or product launch and describe and analyses the product development strategy adopted by an energy company as it attempts to build an effective international innovation strategy.
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Introduction
The dynamics of technology, competition, and markets have resulted to significant changes to almost all sectors of the global market and one of the activities that have remained most powerful is new product development (Ullman, 2009). Therefore, as global market continue to become more competitive due to increased provision of high quality products and services which are available in a wide range from numerous companies at affordable prices, adoption of new product development on regular basis through a comprehensive innovation policy remains the most important factor to any company a competitive edge in the international market (Bruiyan, 2011). This is attributable to the fact that companies that embrace innovativeness and creativity continue to strongly support their processes of new product development mainly because they make them unique in the market by using innovation and research to produce unique and high quality products. According to Ulrich and Eppinger (2004) new product development process involves all the steps involved in the entire process of developing and introducing new products to the markets. Therefore, in literature new product development is widely defined as the process through which a market opportunity is transformed into a finished product ready for sale either tangible or intangible (Krishna and Ulrich, 2001). However, in order for a new product development process to be successful it is always essential to have a clear understanding of consumer wants and needs, the nature of the market as well as the competitive environment (Kahn, 2013).
This report discusses the new product strategy at Total Energy Company in its attempts towards building an effective international innovation strategy. The reason for choosing Total Energy Company as the case study company for discussion in this report is motivated by the fact that the company has embraced almost all the components involved in the process of new product development, but the report will mainly focus on two components of the process such as idea generation and product development as the key initial stages of new product development process.
Background of Total
Total is a French international energy company operating in over 130 countries that began in 1920’s, then engaging in oil production in the Middle East region (Total, 2014). Over the years the company has widely expanded its operations globally together with diversification of its operations into refining, marketing of petroleum products, as well as production and marketing of chemicals. After almost a century of existence, Total has grown to become one of the leading energy companies in the world based on its cutting edge of innovativeness and new product development (Total, 2014). Total’s oil production activities began in 1924 majorly in the Middle East region, subsequent to the beginning of the expansion of the oil exploration to other countries in 1929 aimed at discovering and developing new resources. At the same year the company began its refining activities. The company’s chemicals business started in the 1960’s when the company’s retail network expansion also continued to grow eventually becoming the presently existing global operation network (Total, 2014).
Throughout Total’s history, the company has always embraced an unwavering emphasis on innovation whereby it discovered its first offshore fields in Gabon in the year 1961. In 1975, the company made its initial foray into solar energy which it has continued to grow until today (Total, 2014). The company also began its initial operations in deepwater drilling in the Mediterranean in 1986 (Total, 2014). Apart from focusing on developing new products through innovation, the company has also embarked on making sure that its customers get value for their money by producing high quality products at affordable prices where in 2011, for instance, the company created the network for Total Access consisting of low-price stations throughout France in order to make sure that its customers obtain its products conveniently and affordably (Total, 2014).
Energy is undoubtedly the most vital factor for improvement of living standards and economic development. This is attributable to the fact that modern day lifestyles rotate around the availability of energy because it helps in driving progress, but to ensure this trend is sustainable changes in the utilization and management of energy are inevitable and Total has been in the front line to use innovation in developing new products that are more efficient and effective (Total, 2014). Total has operations in about 130 countries and it is amongst the top international oil companies as well as a leading natural gas operator, petrochemical producer, refiner, and lubricant and fuel retailer (Total, 2014). Total Energy Company employees also leverage on their acknowledged expertise across the globe towards discovery, production, refinery and distribution of oil and gas for effective provision of products and services to the company customers globally (Total, 2014). The company has also been using its innovation strategy in developing new products, particularly energies that are likely to partner oil and gas. In addition to producing new and improved products that are related to oil and gas, the company has also embarked on producing products that are entirely new from their areas of specialization including solar energy and biomass energy (Total, 2014).
Through its new product development strategy, the company has managed to place itself to be among the market leaders in the global energy sector through its cutting edge exploration and production, gas and power, refining and chemicals as well as production of new and renewable energies particularly solar and biomass (Total, 2014).
Idea Generation
According to Cooper (1990) stage-gate model is definitely the widely used approach to managing development of new products which consists of ideas generated from the need for product improvement, as well as extension of product line and product launch through product innovation. All sections at Total are involved in product development ranging from top level management to the lowest cadre of level employees through strong leadership and integration across the company. Idea generation through innovation and new product development not only involves technical research, but also the total company technology, internal organization of the company, the entire marketing, the consumers and the customers, as well as the technological ambience which surround the company such as the physical and social environments and the competitors presents around the company (Krishna and Ulrich, 2001).
Considering that idea generation is the most crucial step in the new product development process, then this is the step at which the ideas developed through the research & development (R&D) process are refined in order to ensure that they are developed to new products (Smith and Reinertsen, 1998). In a company setting idea generation is definitely the protocol or precursor for the subsequent steps in an idea generation process where a new product is envisaged to be developed. At Total Company research and development (R&D) remains very critical in determining the viable ideas and those which are not. At this stage the company should be able to know if the market research done has provided valid and/or reliable results since the subsequent step in the research process can not be carried out without his/her consent which is often done on the basis on the initial instructions provided by the individual person (Krishna and Ulrich, 2001). Furthermore, the company has been able to highlight the necessary steps that should be followed during the research and development (R&D) process in order to make sure that the company’s production has been improved on the basis of the records kept by marketing and supply staff (Krishna and Ulrich, 2001). This is attributable to the fact that the generated ideas are eventually transformed into viable products that can be marketed and supplied to the general public in order in any viable commercialization of the idea generation towards a product generation.
Product Development
This is undoubtedly the most involving and costly step in the new product development process since it includes prototype development, simulations and designs all the way to the eventual or desired product. At this stage the actual product is produced prior to its commercialization and marketing in order to make sure considerable volumes of the product are sold to ensure the company’s competitive edge is sustained (Yan-mei, 2009). According to Kim and Wilemon (2007) BAH model suggests that the most crucial outcome of any new product production process is to see a finished product from the entire process of new product development where innovation was at the center stage.
Therefore, the considered product development is vital towards making sure that the process is effectively completed. The company has been very proactive towards implementing its industrial property policy aimed at protecting its innovations which has made the company to be amongst the leading energy companies in terms of patents registration. For instance, in 2012 Total in conjunction with Peugeot developed a new car model known as the Peugeot 208 Hybrid FE Concept which had the capacity to produce very low carbon emissions. This was achieved by levering on the cutting-edge expertise of the company staff together with that of its partners. This vehicle is to accelerate to significant speeds within a very short period of time and emit very low levels of carbon into the environment (Total, 2014).
Moreover, Total has been in the forefront towards making sure that its innovations and new product development are aimed at reducing environmental. This has been necessitating the company to make sure its petroleum products have the least negative impact to the environment. For example, in 2009 through its innovativeness the company developed a new diesel product that significantly improved fuel efficiency known as Excellium Diesel which acts as an automotive diesel likely to achieve an average of 2.5% fuel efficiency improvement. This newly developed product has been boosting engine efficiency through its enhancement with specific additives aimed at preventing engine clogging (Total, 2014). This product was also chosen for the Total Ecosolutions label award which the company began to identify the most innovative services or products that offers the best environmental standards or energy performance. The company has been very active in making sure that in the company’s R&D strategy there is a very strong link between the idea generation and product developments stages in the new product development process. This has ensured that Total is able to consistently produce new products into the markets through its cutting edge innovation (Total, 2014). Therefore, by embracing innovation and implementing an appropriate risk management strategy, the company been able to constantly develop new products throughout its history as a mode through which it achieves its competitive advantage against its competitors. The company policy towards innovation and new product development has also been very critical towards ensuring that it remains a frontrunner in the energy sector globally (Total, 2014).
Conclusion
In conclusion, it is evidently clear that Total has embraced innovation as an integral part of its day to day operations as a way of matching its solutions towards environmental and energy challenges. Total company has inherently embraced innovation as a way of enhancing new product development to ensure that the company maintains its cutting edge competitiveness in the international market through production of high quality and unique products at affordable prices. Thorough screening of new ideas likely to result to new product development has been in the forefront towards making sure that the company maintains its vigor in innovativeness and new product development both of which are essential in ensuring the company remains competitive in the international market. Thus, idea generation and product development considered in this report seems the most important components of new product development process embraced by the company to make sure it continues to leverage on its innovativeness and risk management for posterity and achieving more global competitiveness.
Reference List
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