G4 How did we do?

Mission: To make high quality products for a low cost and lower price to satisfy the needs of consumers and reward our shareholders/investors with the fruits of our labor.

(It’s through the money invested into Sales people, R&D and Marketing that sales will go up. With this we tried to build facilities to make quality goods at a cost less than our competitors and expanding with product 2 later on.)

Henry Jones built a good name for the Company and we wanted to keep that good name with all our stake holders. Group 4’s main stakeholders were, like in any company Shareholders, Employees, our Customers and Suppliers. Sales were a main priority. Research and Development helped attain a good Idea of our customers need and tastes. This coupled with a lower price than our competitors helped us in this market and we came in second in the stimulation.

All stakeholders have a vested interest in a company. However, Stockholder’s as in any company are very demanding wanting greater returns. Attaining a higher stock price and dividends did just that.

P’5

Threat of New Entrances: The Dinner ware industry is very unattractive. It is largely flat and new entries from countries such as China, where cost of production is low make this market even more unattractive to enter. In addition, the cost of building factories to make Dinner wear would serve to keep away new entrances. Threats of New Entries are LOW.

Power of Suppliers: Ceramic materials such as bone china and porcelain like any commodity there days is relatively high in price. Suppliers have a relatively HIGH power in this market.

Power of Customer: The customer can pick and choose what ever kind of China they would like. The market is saturated. If a customer does not want China (dinner wear) there are many substitutes that many also satisfy their need. Customer Power is HIGH.

Power of Substitutes: The purpose of China can be substituted by Paper plates, or even plastic plates. It is not a necessity. Therefore, substitutes are HIGH.

Rivalry: As an industry becomes more mature, much like Dinner ware. There are only a few big players that will stay in this industry. Rivalry among these players to win over the customer becomes HIGH.

The model gives us a picture of an unattractive market. The market changes in a matter of days. Other groups are always out to get you with pricing. It is impossible to have one fixed strategy from the start. Staying flexible is important.

There has to be a well trained, knowledgeable sales force. This is the only way to grab customers. Our advantage was just that. During team meeting, analyzing price was the most important. We built our strategy for success around sales people, “a well paid sales person is a loyal sales person.” Having enough money to pay and keep these sales people was always a topic of discussion and a barrier. In addition we found out that through under pricing we would never be able to change the industry conditions in the long term.

Our Business and Corporate level Strategy was very basic; Quality products at a good price which would equal satisfied Customers and Share holders. This would help make products for a low cost to maximize profits. Sales people were instrumental in making this happen.

All in all we had a very good strategy. Return on Investment, Stock price, Sales Growth and Credit Rating are all high. What strikes me most looking at the grades of the stimulations is the successful groups were consistent. I believe consistency is important in anything, especially when it comes to running a business. You must change with the market’s needs but remain consistent. A professor of mine once said, “It’s like shooting fish in a pool while you’re bouncing on a bouncing board.” We wouldn’t make any changes in the way we have run our business.

A deteriorating company/brand image & Firm’s product perceived as being relatively substandard

Acer. Its one of the cheapest computer brands you’ll ever find. The only reason to buy this product, if you do not know the companies history would be its price. With low price also comes the perception of low standards. When it comes to an important purchase such as a computer standards or quality is critical. Acer used to make computer chips for companies like IBM and HP. However, as I would later find out their computers are no up to par with the IBM (Laptop division is now Lenovo) or HP brand names. I bought an Acer laptop a couple of months back. I asked my self, what does price really say? If Acer made chips of IBM and HP why couldn’t they make computers just as good? With in a month the computer stopped working due to hardware problems. When I took a look at the brands of products Acer used inside their laptops, I was surprised at their low standards. I returned the Acer for an HP.
If Acer could replace low quality hardware, with high quality and heightened their prices a little I would have still bought the Acer. And also still be an Acer user. This also deteriorated the brand image of Acer in my mind. Acer has continued in the path of a deterioration brand image. After all if an Acer breaks why would you go for another Acer? As a marketing student I know that a low price doesn’t always mean low quality, but in this case it did. This company’s strategic choice to used low quality parts for low prices has made me never want to look at an Acer again.
Acer’s strategy to be to be the new kid on the block with the cheapest price has failed. It is not a means for continued growth. Computers are not bought only on price, quality is a big factor. It is important to satisfy a consumer’s heart and mind, not just their budget. A deteriorating company/brand image & Firm’s product perceived as being relatively substandard are Acer's problems.

Niche, Market Share and the Gov.

Niche dominance and Market Share, A Story of both

A Niche is a special area of a market the big firms fail to fill. A small firm comes into fill the niche, or as I like to call it “small hole” the big guys in the market over look. An example is when Amazon first came in to fill the need for customers to buy books online. At the time it was niche, the big players such as Barnes and Nobles thought was insignificant.

Another niche can be found in the Beer Industry. Called Craft Beer, these specialty type Beers were until recently overlooked by Millar, Anuhiser-Bush and Coors, the big three in beer. However in the face of lower demand for Regular Beer the big three have come in to buy and start their own Craft beer companies. The reason for this is for past few years Craft Beers have been the only part of the Beer Industry that has been growing. The Craft Beer Niche has dominated growth while regular beer was flat.

Now the big three, with the biggest market share also own Niche, Craft Beers with the highest growth.
-Blue Moon is owned by Coors
-Skip Jack Amber, Rolling Rock, Bare Knuckle Stout are owned by Anheuser- Busch
-Henry Weinhard’s, Milwaukee’s Best, Mickey’s, South-pair, Steel reserve are owned by Miller.

The firms with the biggest Market Share have dominated. The Big guys win. Again!


Government Protected

Government Protected = Incompetent

The worst way to run a business is for the government to intervene in it. The MTA, Amtrak, and Con-Edison are a few firms that come to mind. Remember the summer of 2006 in Queens. Customers were without electricity for weeks. Government Protection had given Con-Edison a relaxed corporate culture that did not know how to act in an emergency. In the 1980’s when AT&T became too big the Federal Government broke it up. In 2000 there was talk about breaking up Microsoft. However, Con-Edison is allowed to monopolize a whole industry in New York City. Same can be said about the MTA and Amtrek.

American Car Market

Porter's 5 Forces: U.S. Automotive Industry

Potential New Entries (LOW)

It is hard for foreign competitors to enter the U.S. Automotive Market. Current outside players in the U.S. market such as Toyota, Honda and Nissan (Dotson) only gained acceptance from decades of learning and adopting. Other outside brands such as Peugeot and Citron have been discontinued. While opportunities for new entries are low, foreign companies still want a share of the U.S. market. The reason is American is the largest passenger vehicle market in the word. China's Geely and Chery are due to enter the U.S. in late 2008. Geely is already in Puerto Rico. However these two new brands are finding it hard to establish a proper support network for their cars.

Bargaining Power of Buyers (HIGH)

The U.S. auto market has many competitors. These range from GM brands, Ford brands, Honda, Toyota, Hyundai, Chrysler, and BMW to Mercedes Benz. The buyer power in this market is very high. Many Auto makers engage in deals such as Zero down, money back etc. American car manufacturers currently sell cars at a loss.

Bargaining Power of Supplier(LOW)

American Auto makers have been known to squeeze their parts suppliers. In November 2003 the Wall Street Journal details how American Auto makers GM and Ford are squeezing their supplier. It suggests that U.S. Auto makers want some parts to equal the same prices as those of Chinese parts makers. Supplier power in this industry is very low. Some American auto parts makers have dropped out of contracts with Auto makers because there simply is not enough of a profit.

Threat of Substitute Market (LOW)

While substitutes such as Motorbikes, Scooters exist they cannot replace an automobile. No one who really wants a car would buy a Scooter. A Scooter can get you from point A to B, but it cannot replace the car. Similarly Trains and Planes can also satisfy the same functions as automobiles but these are used mainly for along distance travels.

Rivalry among Competitors (HIGH)

Rivalry in this Industry is high. Toyota, Honda, Ford, General Motors and Chrysler are all fighting for the same customer. They all make automobiles in each class. An automobile is a high involvement purchase. The customer only has so much money to spend. American auto makers have begun to sell some models at a loss, just so they can keep market share and get rid of excess inventory. Currently (last Quarter), only Honda reported to have positive sales growth in the industry. All other auto makers are suffering due to the current recession.

Relatively speaking the U.S. Automotive market is NOT a good market to enter. The main players are already well established and even most of them sell their cars at a loss.

Criteria for an effective Mission statement.
1. Fundamental Purpose of the organization
2. Corporate Philosophy (family oriented, cut throat etc.)
3. Inspirational but realistic.
4. To the point.
5. Informative and motivational

Boeing Mission Statement (1950’s)

Boeing (1950)"Become the dominant player in commercial aircraft and bring the world into the jet age"
-This mission statement of 1950’s Boeing states the fundamental purpose of the organization(commercial air craft); it’s inspirational but realistic(this is obvious because Boeing did bring the world in to the jet age), to the point and also informative and motivational. If I were reading this mission statement in the 1950’s the feeling of determination from the mission statement alone would be enough to make me take a second look at Boeing. The only criteria it does not properly meet is Corporate Philosophy, however one may argue that “becoming the dominant player” gives Boeing a cut throat, determined image with something to prove to the aviation community.

In my opinion this mission statement has done in one sentence what many of today’s companies try to do in a paragraph. Many of today’s companies still come up short. Take for instance Pizza Hut’s Mission statement:

“We take pride in making a perfect pizza and providing courteous and helpful service on time all the time. Every customer says, "I'll be back!"
We are the employer of choice offering team members opportunities for growth, advancement, and rewarding careers in a fun, safe working environment.
We are accountable for profitability in everything we do, providing our shareholders with value growth.”

It is too wordy, and tries to address too many things!

The Circus gets more fun!

Remember the 2000 U.S. presidential election. There were two main candidates from the Republican and Democratic parties running, Bush and Gore. Oh yeah, and there was this one other guy who spoiled things, Independent, Ralph Nader. Remember him?

Let me tell you more about Mr. Nader. He is a consumer advocate who has been working for the safety of the American people for 40 years. As he says him self, he gets things done. This is his fourth strait bid at the White House. Read more about him on CNN: http://www.cnn.com/2008/POLITICS/02/24/nader.politics/index.html .

"He seems to have a pretty high opinion of his own work." And now Nader is entering the Race, again.

With the liberals and moderates divided between Hilary and Barak, Nader entering the race does not help thing for the democrats or for America.

Due to events during the Bush years( 9/11, the 2nd Gulf War, Katrina, China’s raise, weak dollar and the current recession due to the Mortgage Crises) American World Hegemony has been threatened. As a country America is weaker and continues to loose its place on the world stage. The first thing we must do to get things back on track is to come back home from Iraq. Then we must fix the problems at home to get our place and our respect back in the world.

Nader’s entry splits the vote of the Liberal and Moderate Americans that would have voted for the Democratic Candidate. This may help McCain (the Republican presidential candidate). He fails to see the first step in fixing things which is bringing the troops home. Instead he wants to keep the troops in Iraq for another 100 years or how ever long it takes.
I wish Nader would stay home, at least this one time. After all if a democrat does not become president, it is not going to take 100 years for America to loose its place in the world.

Introduction: Bus. and Us

My name is Waruna. I'm originally Sri-Lankan. I've been living in New York since I was twelve. I'm an International Marketing major, who wants a career in International Business. I went to Spain, Portugal and France on Study Abroad last month. Finding a job where I get to travel is my ultimate goal.You’ll find out more about me as you read my blog.