Category: Business 11471

Zappos is an active business entity that conducts its operations online. The organization stocks a wide range of products, including shoes, clothes, and appliances (Askin & Petriglieri, 2016). Accordingly, Zappos is a subsidiary of Amazon but operates independently. The following section covers the online retail firms financial consideration by focusing on its startup costs, sales forecast for the years 2023 and 2024, break-even analysis, profit, and loss analysis, and funding requirements.

Startup Costs

Being an operational business means Zappos does not involve many fresh costs like other startup enterprises. However, several items require appropriate budgeting for the entity to operate successfully. Such facets fall under two broad groupings; assets and expenses, as shown in Appendix 1. Inventory and equipment outlay constitute the assets cost, amounting to $12,000 a month. Moreover, some of the establishments basic expenses worth budgeting include marketing, web hosting, rent, insurance, utilities, payroll, repairs and maintenance, and organizational dues. Each of these expenses has a monthly budget, stipulated in Appendix 1, with the total budget for the expenses amounting to approximately $8,000. Accordingly, Zappos will require at least $20,000 monthly to finance its elementary operations. The inventory forms the largest part of such a monthly financial plan due to the aspects criticalness in online dealings. Nonetheless, the budget for monthly inventory concerns new stock since Zappos is already doing business. Marketing and payroll expenses form the other expensive budget features for Zappos. That is because the entity culture seeks to set the firm as one of the most caring online retailing organizations per Tonys plans.

Sales Forecasts

Zappos earns by bridging a market gap concerning attire and appliance supply. Initiated before the twentieth century, the organization depends on Tonys customer service brilliance to reach out to millions of consumers all over the U.S. and other parts of the world, mainly Europe. As per Askin and Petriglieri (2016), Zappos best previous sales before the acquisition exceeded $1 billion. Consequently, this sales forecast relies on the preceding records to establish probable and viable projections. Therefore, Appendix 2 shows Zappos likely sales for 2023 and 2024 as $2 and $2.3 billion, respectively. Being part of Amazon, a trusted online player with an extensive network, coupled with the provision of specialized items, makes the estimates substantially reliable.

Break-Even Analysis

Businesses use different approaches to undertake break-even examination, including the break-even quantity or volume method. In this slant, the investor, especially those dealing with multiple products, identifies a specific primary item to utilize for the analysis (Gallo, 2019). For example, Zappos can use its original products; shoes, to find the number of pairs the firm must sell to return all the costs involved in the acquisition and daily operation since the Amazon buyout. Appendix 3 gives the equation for this calculation, where Zappos annual fixed costs immediately after the acquisition (figuring out the $1.2 billion takeover fee) totaled, approximately $2 billion. The entity sells a pair of shoes at about $50, making a profit of approximately $15. Subtracting variable cost per unit of $6, the BEV will be above 181 million pairs of shoes.

Projected P&L

The profit and loss statement shows an organizations profitability by reporting a businesss earned profit or experienced loss within a specific trading period. The statement does this by comparing income and expenditures. Appendix 4 shows Zappos projected P&L based on the projected earnings and expenses for 2023.

Funding Requirements

Zappos requires at least $3,000,000,000 to finance its operations effectively. This amount includes the $1.2 billion utilized during the buyout by Amazon and the subsequent expenses necessary for the firm to function as a real subsidiary of the acquiring retail giant. Correspondingly, part of this sum will cater for the payroll and other basic purchases before Zappos can generate adequate finances to operate independently. Appendix 5 provides information about this figure and where it comes from, based on the fact that Amazon is an already financially stable online retail business.

References

Askin, N., & Petriglieri, G. (2016). Tony Hsieh at Zappos: Structure, culture and change [PDF document]. Web.

Gallo, A. (2019). A Quick Guide to Breakeven Analysis. Harvard Business School Publishing. Web.

Appendices

Appendix 1: Startup Cost Analysis

Appendix 2: Sales Forecast

Appendix 3: Break-Even Analysis

Appendix 4: Projected P&L Statement (Values in 1,000)

Appendix 5: Funding Requirement

Introduction

This memo is about market-based compensation program effectiveness. It offers a working definition of a market-based compensation program and then uses that definition to describe features of the program that a firm would consider when planning and implementing it. The definition and arguments offered are based on secondary scholarly research sources. The memo shows that getting the best out of employees and fulfilling employees requirements for the perception of fairness are the two biggest factors affecting the success of a given compensation program in an organization. The memo also shows the way market factors can influence different approaches to market-based compensation by using examples of companies in the manufacturing and non-manufacturing industry. It discusses a company that has done well and another that has done poorly in implementing the program.

Defining Market-based Compensation Program

Market-based compensation refers to a total compensation philosophy that focuses on current market value conditions for attracting and retaining desired labor skills. A market-based compensation program is specific to a firm and captures the knowledge of the organization about the options for getting new employees and the risks of losing employees to rival firms. Firms have the option to offer all compensation in monetary terms or to offer it indirectly by paying for worker expenses and privileges (Hippie & Stewart, 1996). Besides, the firm has to communicate effectively to ensure that workers and other stakeholders understand the compensation offered, and they can compare it with the competitors offer to make an informed conclusion about equity.

Firms use market rate data effectively and reliably when coming up with market-based compensation. Many firms use an arithmetic average and the median value of data collected in the market (Armstrong, 2012). They will then consider existing legal and policy provisions for offering a particular pay to employees. The eventual pay offered, which is the total of actual salary and any job-related benefits, must attract, retain, and motivate employees to perform at best. The intention of market-based pay is to allow employees to balance work and life and be able to take care of their needs and their family needs while being able to support their organizations goals. Often, knowledge workers and unskilled workers or semi-skilled workers will experience different compensation flexibilities, given that their jobs have different demand and supply dynamics (Armstrong, 2012).

Balancing External Competitiveness & Internal Equity

Firms have to balance their internal equity and external compensation so that the benefits offered do not affect productivity and happiness in a negative way (Boxall, 1998). Focusing on this aspect ensures that organizations compensation programs do not handicap the organizations options for realizing its objectives. The option requires firms seeking both external competitiveness and internal equity to match the financial and non-financial compensation options offered to employees within the existing market range.

A firm may adjust its compensation options such that they fit its ability to offer them and to address employees need for the perception of equity. The financial compensation options can be direct, such as equitable wages, salaries, and market adjustment increases. Insurance plans, social security benefits, and retirement compensations are some of the indirect financial compensation options that directly affect the cost of doing business and achieving objectives of an organization. On the other hand, non-financial options for compensation can be about the job position or the work environment. They include the provision of interesting duties and responsibilities for employees. The challenges, authority, and autonomy features of a job are also under this category. A firm may offer alternative working arrangements or modified retirement options as examples for adjusting its compensation program to support employee perception demands for internal equity while it considers the costs of implementing the compensation program.

A successful compensation system must be fair. Workplace equity is about the perception that all employees in an organization are receiving fair treatment. Internal pay equity arises when employees in an organization perceive their pair as equitable given the roles they play in comparison to what their colleagues do at work. The perception regards the value that employees feel they offer for the firm. This internal equity element is the most important in a given organizations compensation program. For organizations to realize internal equity, they must be using the same compensation guidelines for similar positions. All employee roles belonging to a criterion should determine where the employee would fall in the range of available compensation options (Dulebohn & Martocchio, 1998).

Organizations can realize compensation program effectiveness by working on appropriate job classification systems that are in line with organization and employee expectations. They can improve the outcomes by using organization tenure as part of the features affecting their compensation policy to promote employee perceptions of procedural and distributive justice (Dulebohn & Martocchio, 1998). Organizations can balance external competitiveness and internal equity by taking care of the elements mentioned above. Besides, they should use effective communication for their compensation program, allowing employee input such that they remain responsive to market forces affecting their operating conditions, as well as employees perceptions about job roles and compensation.

Employer Examples

Google and Apple operate in highly competitive technology industries, and they are examples of companies using market-based compensation programs. The stiffer the competition in a particular industry, the more relevant the market-based compensation becomes. As an example, Google has a high employee turnover rate because employees have highly marketable skills. The problem of such turnover is that it increases the cost of recruitment and selection for the company and slows its progress at being innovative. Nevertheless, the high turnover is also attributed to external environmental features that are not related to market-based compensation (Dow, Morajda, & McMullen, 2006).

For example, the workforce is young consisting of Generation Y employees who have less inclination to work in the same jobs for long. Manufacturing companies have employees staying longer because of their age and associated benefits that are tied to their tenure. Another factor is that employees can easily compare what they are doing at the firm and what their colleagues are doing, which makes it easy for them to create accurate perceptions of compensation fairness and use that as a basis for interpreting their firms valuation of the given employees worth.

A company like DHL has been able to stay competitive by focusing on employee competencies as part of its compensation philosophy. The company also uses succession planning to take care of problems that would arise due to employee turnover when the company is less competitive than its rivals are, in its compensation program. The company also includes performance development plans for employees such that they can achieve their optimal potential. Therefore, they can earn the highest possible pay and benefits for their roles. This changes their perception about internal equity while ensuring that the organization can maintain its optimal operation benchmarks for competitiveness (Armstrong, 2012).

References

Armstrong, M. (2012). Armstrongs handbook of reward management practice:Improving performance through reward. Philadelphia, PA: Kogan Page.

Boxall, P. (1998). Achieving competitive advantage through human resource strategy: Towards a theory of industry dynamics. Human Resource Management Review, 8(3), 265-288.

Dow, S., Morajda, D., & McMullen, T. D. (2006). Evaluating pay program effectiveness. World at Work Journal, 15(2), 50-­59. Web.

Dulebohn, J. H., & Martocchio, J. J. (1998). Employee perceptions of the fairness of work group incentive pay plans. Journal of Management, 24(4), 469-488.

Hippie, S., & Stewart, J. (1996). Earnings and benefits of contingent and noncontingent workers. Monthly Labor Review, 119(20), 22-30.

Introduction

Rob Miranda has been a fountain of ideas since he took the role of chief executive officer (CEO) of Growing Places. For example, he created areas for women to breastfeed their babies during work breaks and put Video cameras in schools for parents to visit their children from their workstations (Burrell, 2006). The CEOs operational expertise and entrepreneurship vision have enabled the company to grow profitably. The problem is that Miranda has a bad tendency of putting his foot in his mouth. Breyer, the companys chairman, hopes Miranda will learn how to avoid using inappropriate language, and he even sets up a meeting between Miranda and a coach.

However, as Breyer finishes off an amenities tour for a possible business benefactor of a scholarship project, Miranda makes an unsuitable statement about nursing in front of the guests, one of whom is a journalist. The local daily prints a critical editorial the next day. A few days later, when presenting the preschool curriculum at a seminar, he says it again and makes the implication that the teachers are lazy. The firms stock price has dramatically decreased as a result. Miranda seems to have no intention of changing, and many committee members are contemplating firing him. The goal of this essay is to assess all of the data presented, take on the role of the companys founder, and determine whether Miranda should quit or continue as CEO of Growing Places.

Should Miranda Leave Growing Places

Miranda ought to resign as Growing Places CEO in light of all the available facts. Miranda has a unique way of speaking that is not diplomatic but rather assertive and aggressive in tone. Aggressive communicators ignore the sentiments of others in favor of what they want or need (Tripathy, 2018). They speak in obtrusive tones and employ domineering gestures and you comments (Rubin et al., 2020). Moreover, the director has a goal-oriented communication style, talks clearly, makes snap judgments, lacks empathy, and is constantly on the go.

Mirandas communication style, whether it is described as confrontational or direct, made others feel devalued. According to Lake et al. (2019), this communication style is helpful for swift dispute resolution, but it has a negative impact on team morale. An assertive communication style is defined as expressing ones opinions and views without hurting the sentiments of otherseven if they are forceful in their delivery (Sims, 2017). Rob expresses himself clearly and without regard for his audience or the people around him. He does not seem to be aware of how aggressive his words are. Rob might not have the emotional intelligence to understand that his behavior is not forceful but aggressive.

Additionally, Miranda was excellent at streamlining procedures and challenging employees to their limits, but in actuality, the organization needs a skilled communicator and a marketer for the next step. Someone who can market the novel concepts already in place and showcase them. The following section includes three further arguments to back up this conclusion, as well as a description of the recommendations of four experts in the matter who are all part of the case given by Burrel (2006).

Verbal Gaffes

Miranda revealed, while a reporter was listening, during a talk about infant nursing with a possible sponsor for a scholarship program: What gets me, though, is how long some of these kids nurse. If they are old enough to ask for a Coke, it is time to move on (Burrell, 2006, p. 36). Furthermore, during a conference where Miranda was the main speaker, someone stated that highly tailored teaching for preschool is crucial in inspiring children to strive but is not always realistic to implement. In response, Miranda states: If you all got off your rear ends and did a little prep work, there would not be a problem. Grade schoolteachers do it all the time; pre-K should not be any different. I am not saying it is all on you, of course. Administrators need to pony up, too, and provide some guidelines (Burrell, 2006, p. 39). As a result, 50 instructors, most of whom were highly experienced, threatened to resign.

These are only a few instances of Mirandas poor judgment and lack of humility in his verbal slip-ups. At this stage, it is presumable that Miranda is leading ineffectively, failing to effectively manage her teams communications. Hubris can be encouraged when there is leadership without management which can seriously lower employee motivation (Gosling & Mintzberg, 2017). Additionally, Mirandas reputation is tarnished as a result of these views both within the firm and in the media, which harms Growing Places brand.

Torie Clarke suggests two primary strategies to address Mirandas poor communication. More staff employees should receive communications training, but at the same time, a new position in public communications should be created to support Miranda (Burrell, 2006). Growing Places might need more communicators, but in actuality, the fundamental 7 Cs of communicationcourtesyare essential for a CEO to carry out his duties successfully (Al-Refai et al., 2022). As per Cleary et al. (2019), the organizations spokesperson should take additional care in their public communications because of the organizations target audience (parents with children), sponsor ties, and anticipated staff recruiting power. Similar to how Roger Brown feels that childcare demands a special humane and compassionate management style more than any other business.

First Founder-CEO Succession

After Breyer, the companys creator, Miranda has served as the organizations first designated CEO for the past four years. This succession is an example of how a founder executes a brilliant idea, and once they step down, the firm must make a significant effort to change its organizational culture. Other organizations have several outstanding instances. For instance, Bob Meers left behind a significant inventory problem and a disillusioned workforce when he resigned as CEO of Lululemon (Baalbaki, Gilliard & Hoffman, 2019). Similar to how Microsofts stock plummeted significantly after Steve Ballmer succeeded Bill Gates a few years earlier (Ramachandran, 2018). Ramachandran (2018) further states that although there was no cultural fit between the new CEO and the companys initial objective in either instance, the necessity for development and transition sufficed to motivate a new CEO. Growing Places growth plan requires a completely fresh approach with a reframed vision after a few years to overcome challenges.

Emotional Intelligence Coach Tried with No Success

Due to certain linguistic blunders and his aggressive demeanor, which disregarded social norms, Miranda has been put in a precarious position numerous times. The problem immediately worsened after a staff retreat discussion on how to ensure that adopted children wouldnt feel different from their colleagues. Miranda stated: The point will be moot if China follows through on its adoption policy and keeps lesbian couples from snapping up its girl babies (Burrell, 2006, p. 38). After the retreat, Miranda started working with an Emotional Intelligence coach that human resources (HR) had recommended, as per Breyers recommendation and Mirandas suggestion. Nevertheless, Miranda continued to make mistakes in speech after these training sessions, indicating that she was not improving. According to Ronald A. Heifetz, it is possible that the CEO did not bond with the coach and thats why he never acknowledged the issue, thus switching coaches would be helpful. He adds that a CEO with excellent communication skills will therefore have trouble coming up with and presenting novel ideas.

In contrast, Growing Places existing financial status implies that creative concepts are already existent and that, to advance the organization, an ambitious marketing plan and a fresh approach to sponsor relationships are mostly required (Xiao & ONeill, 2018). Furthermore, Arslanagic-Kalajdzic et al. (2020) asserts that while a new coach may be beneficial, Mirandas present character and lack of development during the coaching meetings places him in jeopardy. This is a good enough reason for a company of Growing Places size to modify its approach and make a shift since it cannot continue to make the same mistakes.

Other perspectives on this issue emphasize the necessity for Breyer, the chairman, to hire a trainer instead of Miranda since it appears he is having difficulty providing constructive criticism. John H. Biggs is a strong supporter and believer of this strategy (Burrell, 2006). This goes against the consensus inside the sector, where it is believed to be challenging to provide negative feedback (Shannon, 2017). In reality, one of the main issues with performance management is the reluctance to conduct difficult feedback discussions (Eggers & Suh, 2019). Even if constructive criticism is offered, it will be ineffective if the recipient is unable to respond (Cleary, Lees & Sayers, 2019). Miranda does not respond well to criticism and mostly gets upset when criticized.

Mirandas activities do not appear to be those of a person dedicated to growth. Miranda was questioned about his way of providing directives to workers as an illustration of this. He says, I cant deal with people whose feelings bruise so easily. Are we grown-ups or babies who need coddling? (Burrell, 2006, p. 39). Investing emotion into a relationship builds trust and long-lasting commitments (Arslanagic-Kalajdzic et al., 2020). Repressing emotions may be hazardous to the company in general (Thomson, 2021). Emotions not only create an unpleasant work atmosphere but cause employees to internalize and externalize unfavorable thoughts about the corporation (Honari, 2018). As a result, emotions tend to disrupt and interrupt employee performance.

Conditions under which the CEO should leave

Given the advice Miranda has received over the years, it is clear that he should be familiar with the problem, and a transformation plan should really not come as a surprise to him. Nonetheless, because is a high rank with significant repercussions, it is critical to be completely aware of the issue and act in the most humane manner possible (Gosling & Mintzberg, 2017). First and foremost, the board must approve this choice. It is advised that the chairman suggest the change to the committee because he is the primary source of unfavorable input concerning the CEO. It will include a termination payment for Miranda, which might be a lot of money, therefore, the board must assess Growing Places present financial situation.

Second, if this decision is approved by the board, the chairman should inform Miranda of the conclusion in a one-on-one meeting. It is pointless to go into detail about why the board made this decision since it may lead to an unexpected discussion. Knowing how Breyer has avoided having similar conversations in the past, he must practice this dialogue in advance so that he is prepared to tackle many eventualities. The transfer plan, which includes timeframes and duties, as well as offering a public apology, must be considered (Gosling & Mintzberg, 2017). Miranda should also continue with the business for not less than four months to help in the training of his successor, which is crucial for that individual to be successful (Palmer, 2022). Breyer and the board can ultimately assist Miranda by commending him for the successes he accomplished while serving as a CEO to another organization that has problems comparable to those Growing Places faced when he took over.

Finally, when Miranda has been told, the search for a new CEO may start. To discover the next candidate who can fill this post, the board should utilize its networks to the fullest extent possible (Putra & Mulya, 2020). A CEO with strong fairness aptitudes may be advantageous given the very cooperative nature of the firm since they may help the companys reputation for ethics (Putra & Mulya, 2020). To make this transfer as seamless as possible, the new candidate should begin working with Miranda and follow in his footsteps (Palmer, 2022). The Public Relations (PR) staff should then draft a formal apology on Mirandas behalf that may be signed. The next section will cover this strategy.

Containing the Fallout

Rob Miranda does not owe his job at Growing Places. The firm is in a tough state, and while Miranda has given the organization fresh vitality, he has also introduced significant public and internal relations issues. The organization must examine what is beneficial for the organization as a whole. Growing Places must carefully assess the advantages and disadvantages of keeping Miranda. His most recent statements have caused stock prices to fall as a result of bad news attention. Miranda has failed to adjust despite receiving emotional intelligence coaching at the request of the Human Resources department.

As quickly as possible, the communication norm needs to be established. Miranda has not managed to keep his tone polite and diplomatic. The companys culture and connections with external stakeholders are seriously at risk because of Mirandas aggressive attitude and conduct. If Miranda is allowed to continue without being stopped, 50 instructors have vowed to resign, and the firm needs to recognize that. The business must hold Miranda responsible and be open about how it is doing so. The same expectations will need to be applied to every Growing Places employee.

Furthermore, the performance criteria ought to lay out some specific objectives for communication and operation. The repercussions of failing to fulfill the performance requirements should also be stated explicitly (Eggers & Suh, 2019). The Board of Directors will have to set aside any prior financial gains and insist that Miranda stop his conduct immediately. Miranda requires an aggressive approach from Evan Breyer. According to Eggers and Suh (2019), Great managers do not merely tell employees whats required of them and leave it at that; instead, they constantly interact with employees about their duties and success, he should set up regular, formal meetings to offer feedback. If Rob does not live up to the expectations that have been set forth for him, the board should fire him right now. Meanwhile, Growing Places is ready to go on a long-term healing road now that Miranda has been told about the shift. In the meantime, the public apologies produced by PR would go a long way toward preventing additional media concerns. To avoid more disagreements and verbal gaffes, it is strongly advised to present the message in writing.

The case study clearly portrays the life envisaged in most corporations. Particularly, it portrays the life employees and customers go through at the hands of rowdy officials. Rob Miranda being in a senior position is expected to treat his accomplices in the right way possible since he is the face of the organization. It is a lesson to any individual in a senior position that customer rapport matters. Mirandas verbal gaffes and unmeasured utterances have cost the company its stock and also the fear of resignation. Nonetheless, it is a lesson to any board that behavior and public image is more important than knowledge. It is better to employ an individual who is less skilled but with good customer rapport.

Conclusion

In conclusion, for a publicly traded company like Growing Places that wants to continue expanding and move on to the next stage of its lifecycle, years of improper communication are too much. Although Mirandas character was considered a risk when he was hired, the consequences were worse than anticipated. Miranda was given several opportunities to absorb criticism and be encouraged to change, but when he grew defensive, the companys brand suffered irreparable harm. There are many unknowables in the near future, hence it is strongly advised to simulate several possibilities before taking any decisions. But in the end, a smoothly handled transfer to a new CEO with new perspectives and a distinct personality would unquestionably boost the morale of Growing Places whole workforce.

References

Al-Refai, A. M., Ahmad, A., Akroush, L. W., Suwan, R., & Sumadi, M. (2022). The impact of 7cs of communication interaction on effective teaching among students of Jordanian universities. Journal of Positive School Psychology, 6(8), 5451-5467.

Arslanagic-Kalajdzic, M., Kadic-Maglajlic, S., & Miocevic, D. (2020). The power of emotional value: Moderating customer orientation effect in professional business services relationships. Industrial Marketing Management, 88, 12-21. Web.

Baalbaki, S., Gilliard, D. J., & Hoffman, D. L. (2019). Is Lululemon Athleticas Turnabournd Sustainable? American Journal of Management, 19(2), 26-39. Web.

Burrell, L. (2006). The CEO couldnt keep his foot out of his mouth. Harvard Business Review, 84(12).

Cleary, M., Lees, D., & Sayers, J. (2019). Leadership thought diversity and the influence of groupthink. Issues in Mental Health Nursing. Web.

Eggers, J. P., & Suh, J. H. (2019). Experience and behavior: How negative feedback in new versus experienced domains affects firm action and subsequent performance. Academy of Management Journal, 62(2), 309-334. Web.

Gosling, J., & Mintzberg, H. (2017). The five minds of a manager. In Leadership Perspectives (pp. 41-49). Routledge. Web.

Honari, A. (2018). From the effect of repression toward the response to repression. Current Sociology, 66(6), 950-973. Web.

Lake, C. J., Carlson, J., Rose, A., & Chlevin-Thiele, C. (2019). Trust in name brand assessments: The case of the Myers-Briggs Type Indicator. The Psychologist-Manager Journal, 22(2), 91. Web.

Palmer, S. (2022). Rational coaching: A cognitive behavioral approach. Coaching Practiced, 211-221. Web.

Putra, F. A. A., & Mulya, H. (2020). Effect of Internal Audit Quality On The Effectiveness Of Good Corporate Governance (Case Study At Pt Jasa Raharja). Dinasti International Journal of Management Science, 2(2), 203-217. Web.

Ramachandran, I. (2018). Triggering absorptive capacity in organizations: CEO succession as a knowledge enabler. Journal of knowledge management. Web.

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Sims, C. M. (2017). Do the big-five personality traits predict empathic listening and assertive communication? International journal of listening, 31(3), 163-188. Web.

Shannon, E. A. (2017). Motivating the workforce: beyond the two-factormodel. Australian Health Review, 43(1), 98-102. Web.

Tripathy, M. (2018). AssertivenessA win-win approach to business communication. IUP Journal of Soft Skills, 12(2), 48-56.

Tao, R., & Zhao, H. (2019). Passing the Baton: The effects of CEO succession planning on firm performance and volatility. Corporate Governance: An International Review, 27(1), 61-78. Web.

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Introduction

This paper is a strategic analysis of three large companies  Severstal, Air Asia & Tune Group Case Studies. Strategic analysis is a way of researching and turning the database obtained from the analysis of the environment into an enterprise strategy. It allows to assess the internal capabilities of the organization, its resource potential, determine the impact of environmental factors on financial and economic activities, assess the market position, identify competitive advantages and unused reserves, as well as justify management decisions to adjust the current strategy of the enterprise.

Severstal is a vertically integrated mining and metallurgical company with significant assets in Russia and a small number of enterprises abroad. Severstal is one of the worlds largest vertically integrated steel and mining companies, with investments in Russia, Belarus, Ukraine, Kazakhstan, Latvia, and Poland. AirAsia is the largest budget airline in Asia. It was founded in 1993 in Kuala Lumpur, Malaysia. The company is not part of any alliances; the home airports are Kuala Lumpur and Kota Kinabalu. The AirAsia fleet consists of 92 Airbus A320 and A321 aircraft. The Skytrax rating awarded the company three stars at the end of 2018 (Whittington et al., 2020). Tune Group is a Malaysian leisure and entertainment corporation. The mission of Tune Group is to ensure the availability and accessibility of leisure and entertainment, primarily in Asian markets.

First of all, PESTLE will be used  as a tool for analyzing the external business environment. It includes political, economic, social, technological, legal, and environmental factors. PESTLE is used to avoid a failed product launch and to identify accents for advertising. Then the attractiveness of the global steel industry in Severstal using Porters Five Force Framework will be analyzed. This is a classic method of analysis that helps to assess business prospects for several years ahead. It is used to analyze the external environment. Five forces that exert pressure on the global steel industry will be consecrated in detail: buyers, suppliers, current and potential competitors, and substitute products.

Then the competitive strategy of Air Asia and the Tune Group using Porters Generic Strategies will be analyzed. Porter identified four types of basic competitive strategies in the industry. The choice of the kind of competitive strategy depends on the companys capabilities, resources, and ambitions in the market. The competitive strategy is a list of Air Asia and the Tune Group actions to obtain higher profits than competitors. Next, the direction of growth understood by Air Asia and the Tune Group using Ansoffs Matrix will be analyzed. The Ansoff matrix is one of the essential business analysis tools, just like SWOT or PEST. The Ansoff Matrix is an analytical tool that helps to develop a companys development strategy. In conclusion, the results of the conducted analyses will be summarized.

PESTLE model analysis in the Severstal case study

The PESTEL model is an effective tool for assessing a companys macro environment. the model can identify the key external factors influencing a companys performance. The key external factors which impact Severstal, a Russian steel company, can be divided into six categories: political, economic, social, technological, environmental, and legal. Political factors refer to the companys operating environments political and legal environment, such as government stability, taxes, and regulations.

Economic factors include macroeconomic indicators such as inflation, exchange rates, interest rates, and GDP growth. The population demographics and culture of the companys environment are linked to social factors. Technological factors refer to the companys technological advancements and infrastructure. Environmental conditions, such as pollution and natural resources, are examples of environmental factors. Finally, legal factors refer to the legal framework and regulations that govern the companys operations (Whittington et al., 2020). These elements can have an impact on a companys operations, either positively or negatively.

Russias political environment is highly volatile, and the government is frequently prone to interference and abrupt policy changes. The condition can significantly impact Severstal because the government has a strong political influence over the companys operations and can impose new taxes, regulations, and import/export restrictions that can affect the companys operations and profitability. The government can also impose sanctions or pass laws that limit the companys ability to operate. Severstal operates in a political environment influenced by other countries international relations. Relations with the United States and the European Union have been strained since 2014 due to the conflict in Ukraine and the imposition of economic sanctions (Whittington et al., 2020).

This has made it difficult for the company to access capital, technology, and markets. Furthermore, the companys access to capital, technology, and markets has been hampered by strained relations with the United States and the European Union due to the conflict in Ukraine and the imposition of economic sanctions (Whittington et al., 2020). Sudden policy changes and political instability are unfavorable factors for any company, so countries should consider enacting policies that benefit the companies that operate in them.

The Russian economy is highly cyclical, with fluctuations in oil prices, exchange rates, and other macroeconomic factors. The Russian economy relies heavily on natural resources, and the steel industry is especially vulnerable to commodity price fluctuations. This could directly impact Severstals bottom line, as the company relies on steel prices to stay competitive. Furthermore, Severstal has had to shift its strategic focus to remain competitive. The company has also been impacted by Russias economic downturn, which has decreased product demand. Changes in the global economy, such as the US-China trade war and other geopolitical events, also impact the company (Whittington et al., 2020). The economic conditions of a country are critical for a companys operations.

Russian society is rapidly changing, which may impact Severstals operations. For example, the population is aging, and the proportion of working-age people is declining, which may affect the companys labor costs. The steel industry requires much labor, and Severstals workforce comprises people from all over the world (Whittington et al., 2020). This can make managing diversity and ensuring that all employees are treated fairly and equally challenging. Customers increasingly demand higher-quality products and services from Severstal, so the company may need to invest in new technologies. Evidence in the case: Severstal invested in new technologies for its customers to remain competitive.

This included purchasing a new hot-dip galvanizing line, which enabled the company to manufacture higher-quality steel products. Severstal also invested in new software systems to improve its manufacturing processes and research and development to create new products. The company should be innovative to address the problem of labor shortages caused by the aging population, which will positively impact its operations.

Severstal operates in a high-tech industry that is constantly evolving, which can have an impact on its operations. For the company to remain competitive in the steel industry, advanced technology is required. The company has invested in new technologies such as automation and artificial intelligence to stay competitive, ensuring its information technology infrastructure is up-to-date and secure (Whittington et al., 2020). Severstal must also regularly invest in research and development to ensure that it has the most up-to-date technologies and manufacturing processes. Furthermore, critical external factors can have a significant impact on business operations. Changing customer preferences, for example, and increased demand for environmentally friendly technologies can significantly impact the companys operations. Severstal must continually invest in new technology to remain competitive in the market.

Environmentally, the Severstal steel industry is a resource-intensive industry governed by environmental regulations. The company must comply with these regulations to avoid fines and other penalties. Furthermore, the company must invest in environmentally friendly technologies to reduce its carbon footprint Case Evidence is the location where to demonstrate evidence of its commitment to reducing its carbon footprint; Severstal has invested in new environmentally-friendly technologies, such as a new waste heat recovery system, which is expected to reduce the companys energy consumption by up to 20% (Whittington et al., 2020).

In addition, the company has purchased a new dust collection system, which is expected to reduce dust emissions by up to 50% (Whittington et al., 2020). These investments enabled Severstal to lower its energy costs while complying with environmental regulations. The company must always abide by environmental laws to evade fines and penalties for breaking the set rules and regulations.

The Russian legal system is constantly changing, which can affect Severstals operations. For example, the company must ensure its contracts align with new laws or regulations. The steel industry is subject to some rules and regulations in Russia and globally. Severstal must ensure that it complies with all relevant laws and regulations to remain competitive. In addition, the company must also comply with antitrust and competition laws to avoid fines and other penalties. In 2018, Severstal was fined $4.3 million by the Russian Federal Anti-Monopoly Service for alleged violations of antitrust laws (Whittington et al., 2020).

The investigation found that Severstal had abused its dominant market position by imposing unfair prices on its suppliers. The company was also accused of restricting access to the market for specific products. This case highlights the importance of complying with antitrust and competition laws to prevent costly fines and penalties (Whittington et al., 2020). Severstal may invest in research and development to align with the newly enacted rules and regulations.

Analyzing the attractiveness of the global steel industry in Severstal using Porters Five Force Framework

Porters Five Forces framework is a tool used to analyze the competitive forces within an industry. It can be used to assess the attractiveness of the sector in which a company operates. The global steel industry is attractive for Severstal, as it is a significant player in the worldwide steel market. Severstal is a major Russian steel producer, controlling over 70% of the countrys metal production (Whittington et al., 2020).

It is one of the largest steel producers in Europe and the world, and it has a strong presence in the automotive, construction, and energy sectors (Whittington et al., 2020). In the case of Severstal, a Russian-based company, the attractiveness of the global steel industry can be assessed by analyzing each of these forces: the threat of new entrants, the threat of substitutes, the bargaining power of suppliers, the bargaining power of buyers, and competitive rivalry.

The company experiences the threat of New Entrants as the steel industry is highly capital-intensive, with high fixed costs and significant investments required to establish and maintain production facilities. Additionally, significant barriers to entry include economies of scale, access to technology, and brand recognition. These factors make it difficult for new entrants to the industry to compete with established players such as Severstal. Furthermore, the steel industry has been subject to high consolidation in recent years, with the top four producers accounting for more than 50% of global steel production (Whittington et al., 2020).

This reduces the potential for new entrants. Case evidence is observed in 2015 when global steel production was dominated by four prominent players, which accounted for more than 50% of the market share (Whittington et al., 2020). This demonstrates the high level of consolidation in the steel industry, which reduces the potential for new entrants to the market.

The global steel industry faces competition from substitutes such as aluminum and other materials though there is no direct substitute. These substitutes are often cheaper and easier to use, making them attractive options for customers. However, steel still has its advantages, such as its structural strength and durability, which makes it versatile and necessary material for many industries and products, so it is unlikely that substitutes will ultimately replace it.

A 2018 survey of aerospace engineers, who frequently use steel, found that most respondents prefer steel for its unique structural strength and durability over aluminum or other substitutes for their applications (Whittington et al., 2020). Additionally, a study published in 2019 found that although aluminum has certain advantages over steel, such as being lighter in weight, steel remains the preferred material for specific applications due to its superior strength-to-weight ratio (Whittington et al., 2020). This data provides evidence that steels advantages are still attractive to customers, rendering it less susceptible to the threat of substitutes.

The bargaining power of suppliers is relatively low in the steel industry. This is due to the fact that the steel industry is highly concentrated, and suppliers have few alternatives. As a result, suppliers have limited bargaining power and cannot pressure buyers into increasing prices. Furthermore, Severstal has a vertically integrated business model, meaning it controls its raw materials and inputs (Whittington et al., 2020).

This further reduces the bargaining power of suppliers. An example of how Severstals vertically integrated business model decreases the bargaining power of suppliers can be seen in the case study of Severstal. In this case study, the authors describe how Severstal can control its raw materials and inputs, meaning it does not need to rely on external suppliers. This reduces the bargaining power of suppliers as they have limited alternatives and cannot pressure buyers into increasing prices. This is further evidenced by the fact that despite the highly concentrated.

The bargaining power of buyers is relatively low in the steel industry. This is because the steel industry is highly concentrated, and buyers have few alternatives. Global steel has many buyers, such as automakers and construction companies. As a result, buyers have limited bargaining power and cannot pressure suppliers into reducing prices. In 2019, the global steel market was highly concentrated, with the top 8 steel producers controlling over 60% of the market (Whittington et al., 2020).

This industry concentration, coupled with the limited number of steel suppliers, resulted in buyers having little bargaining power and limited their ability to pressure steel suppliers into reducing prices (Whittington et al., 2020). This was evidenced by a 2019 report by the World Steel Association, which stated that steel prices had mainly remained stable despite a period of weak demand (Whittington et al., 2020).

The rivalry among existing firms is relatively intense in the steel industry. This is because the industry is highly competitive, and firms are constantly vying for market share. The steel industry is highly competitive, and there is intense rivalry between the primary producers. Severstal is one of the largest producers, but it is still subject to competition from other producers such as ArcelorMittal, Nippon Steel Corporation, and Baowu.

This rivalry can lead to price wars and other competitive tactics, reducing profits for all major players. In addition, firms are constantly innovating and introducing new products and technologies to gain an edge over their competitors. For example, Severstal has developed an innovative steel production process called cold rolling, which is more efficient and cost-saving than other methods of steel production (Whittington et al., 2020). The innovation has enabled Severstal to gain a competitive advantage over its rivals as it can produce steel more quickly and cost-effectively.

Analyzing the competitive strategy of Air Asia and the Tune Group Using Porters Generic Strategies

Porters Generic Strategies, developed by Michael Porter, are used to analyze the competitive strategies employed by firms. Air Asia and the Tune Group have hired a few of Porters Generic Strategies to gain a competitive edge (Whittington et al., 2020). Air Asia and the Tune Group have employed the Differentiation strategy. Due to incorporating it, the companies gained a competitive edge in the market. Air Asia has differentiated itself from its competitors by providing lower fares and providing more routes and destinations than its competitors. In addition, Air Asia has also employed ancillary services such as online booking and ticketing, online check-in, and baggage check-in to further differentiate itself from its competition.

The Tune Group has also employed a differentiation strategy by offering services such as travel packages, hotel booking, and car rental. The Tune Group has also developed a loyalty program that rewards customers for their loyalty. The case evidence to support Air Asia and the Tune Groups use of Porters Generic Strategies can be found in Air Asias annual financial report. The report outlines the companys efforts to differentiate itself from its competitors by providing lower fares, more routes and destinations, and ancillary services such as online booking and ticketing, online check-in, and baggage check-in.

The report also highlights the Tune Groups efforts to differentiate itself from its competition by offering a range of services such as travel packages, hotel booking, and car rental, as well as its loyalty program, which rewards customers for their loyalty (Whittington et al., 2020). The services provide further evidence of Air Asia and the Tune Groups use of Porters Generic Strategies to gain a competitive edge which the company successfully achieved.

Air Asia and the Tune Group have also employed a Cost Leadership strategy based on the idea that the companies can achieve a competitive advantage by having the lowest costs in the industry. Air Asia has employed a low-cost strategy by offering low fares, reducing costs, and utilizing a hub-and-spoke route system. The strategy includes reducing overhead and other operational costs (Whittington et al., 2020). Due to incorporating it, Air Asia and the tune group have been able to offer lower fares than their competitors and become the most cost-efficient airline in the industry.

Air Asia and the Tune Group have focused on reducing costs to become the most cost-efficient airline in the industry. For example, the companies have reduced staff costs by using part-time staff and outsourcing some services such as ticketing and catering. Additionally, the companies have reduced operational costs by using a fleet of Boeing 737-300 aircraft, which allows them to reduce fuel costs by 10% (Whittington et al., 2020). The tune group has employed a cost leadership strategy by leveraging its strong relationships with suppliers and service providers to reduce costs. For example, the company has negotiated lower prices with suppliers for aircraft parts, which has allowed them to reduce their operating costs.

Additionally, the company has partnered with key suppliers to reduce costs in other areas, such as marketing and customer service. Finally, the company has implemented a fuel efficiency plan that has allowed them to reduce its fuel costs by 5% (Whittington et al., 2020). Air Asia and the tune group have also employed a focus strategy to gain a competitive edge in the market. Air Asia has focused on providing low-cost flights to regional destinations, while the Tune Group has focused on providing travel packages and services to customers (Whittington et al., 2020). A cost leadership strategy is effective in places where competitors offer the same products but at a different or higher price.

Analyzing the direction of growth undertaken by Air Asia and the Tune Group Using Ansoffs Matrix

Ansoffs Matrix is a strategic planning tool used to analyze and plan for product and market growth. It could be a device that can offer assistance trade proprietors and directors in deciding which techniques to utilize for development, such as showcase infiltration, item improvement, advertise improvement, and enhancement. Showcase entrance includes expanding the deals of existing items or administrations in existing markets. At the same time, Item advancement includes creating everyday items or administrations for existing markets. Showcase improvement includes finding new markets for existing items or administrations. Broadening includes making everyday items or administrations for new markets. Acquisitions and mergers are business strategies (Whittington et al., 2020).

Ansoffs Matrix can be a helpful tool for Air Asia and the Tune Group to identify the direction of growth for their businesses. By centering on procedures such as advertise infiltration, item advancement, advertise advancement, expansion, and acquisitions/mergers, the companies can proceed to develop and create their businesses. These strategies can help them stay competitive and ensure their business remains successful.

Air Asia and the Tune Group have used Ansoffs Matrix to identify the direction of growth they have taken to expand their businesses. Air Asia has focused on market development by offering low-cost flights to new markets, such as India and Japan. It has also diversified its product offering to include holiday packages and other forms of transportation. The Tune Group has also focused on market development by launching new services, such as Tune Hotels, Tune Insurance, and Tune Talk (Whittington et al., 2020). The case evidence is that Air Asia and the Tune Group have successfully used Ansoffs Matrix to identify and implement successful growth strategies. This proves that Ansoffs Matrix is a valuable tool for businesses to analyze and identify the best strategies for growth.

In terms of recommendations for future growth, Air Asia and the Tune Group should focus on market penetration and product development. Advertise infiltration includes extending their existing client base to existing markets, whereas item advancement includes presenting everyday items to existing markets. They could also focus on diversification, which involves expanding their operations by entering into new markets or industries that are unrelated to their current operations. This could involve launching new products or services or entering new geographical markets. It is a way for businesses to minimize risks and increase their growth potential. Finally, they could look into acquisitions and mergers to expand their business.

Conclusion

The PESTEL model analyzes the critical external factors impacting the Russian steel company. Severstal operates in a highly competitive and complex environment subject to external factors, such as political, economic, social, technological, environmental, and legal. These factors can significantly impact the companys operations and performance, and the company must continually invest in new technologies and processes to remain competitive.

In addition, the company must ensure that its operations comply with all relevant laws and regulations to avoid fines and other penalties. Overall, the global steel industry is relatively attractive for Severstal due to the low threat of new entrants, low bargaining power of buyers and suppliers, low threat of substitute products, and intense rivalry among existing firms. These factors make the steel industry an attractive industry for Severstals operations.

Air Asia and Tune Group have used various strategies to gain a competitive edge in the market. Differentiation strategies have been used to set their services apart from the competition and gain a competitive advantage in the market. The strategies have included offering low fares, loyalty programs, and customer service initiatives. Cost leadership strategies have been used to reduce costs and increase profits by increasing efficiency and minimizing expenses. Finally, focus strategies have been employed to target specific customer segments and ensure that their services are tailored to meet their needs.

Overall, this combination of strategies has allowed Air Asia and the Tune Group to remain competitive in the market by providing a unique offering that meets the needs of their customers. By leveraging their competitive advantages, the companies have gained a competitive edge and remain competitive in the industry. These strategies have allowed them to stay ahead of their competitors and ensure that their services remain attractive to customers.

Ansoffs Matrix provided a helpful tool for Air Asia and the Tune Group to identify the direction of growth they have taken to expand their business. By focusing on market penetration, product development, diversification, and acquisitions/mergers, the companies can continue to grow and develop their businesses, remaining competitive in the market for a long time without being displaced by the new entrants. The strategies help the company always stay ahead of its competitors.

Reference

Whittington, R., Regnér, K., Johnson, D.A.G & Scholes, K. (2020). Exploring strategy. Pearson College Div.

P&G CASE

This recommends the implementation of the North America Compaction Roll Out. In this framework, Powder Laundry Detergent Compaction will be undertaken as well. Mainly, this initiative will lead to substantial market growth and enhanced customer loyalty, which is likely to enhanced profitability over time. It is also targeted at the improvement of business sufficiency.

Background

The sphere of laundry develops with time due to the continuous innovations maintained in various industries. To be distinguished among other businesses, companies, including P&G, need to point out their uniqueness. Thus, the company decided to emphasize compaction. Following global tendencies, P&G started to focus on positive contributions to environmental quality and society. It believes that with the implementation of new compaction, those people will resort to a larger amount of green services and operations. The cleaning product industry is not tightly connected with environmentally friendly changes because it is mainly associated with some chemicals. Thus, with the emphasis on environmental benefits, the company is likely to reach unexpected excellence. What is more, the implementation of detergent compaction is currently seen as a highly valuable offering to clients and positive intervention to professionals because it allows to reduce product price to some degree and to provide more convenient products. Such alteration is required now because the company has existed for almost 20 years already and it has reached the global market, the representatives of which appreciated it so that further improvement can be reached only when resorting to some unusual interventions. In addition to that, P&G has enough experienced employees who can accept a change with a limited course of time and continue to gather different important information. The organization has effective technologies that allow managers to utilize them to provide clients with better services.

Recommendation

As soon as P&G decided to introduce a compacted power laundry, it stopped the provision of products that were manufactured based on the standard formulation. Professionals believed that in this way it would be much easier for them to monitor alterations in human behavior. Still, the price for the product did not change significantly so that everyone had an opportunity to use the laundry. The research study showed that even though P&G provided smaller compaction currently, its advanced qualities allow the representatives of the general public to use for 40 loads just as other standard products of this type. From the very beginning, the company expected a decrease in sales and was getting ready for it. However, it was revealed that people and to give preference to the second option because they emphasize the convenience of the product and its influence on the environment. Thus, at least a 3% increased intake of a new product was offered. Other organizations that operate in the same sphere may try to spend their time to implement this change successfully.

Basis for Recommendation

• The implementation of new cultural approaches that deal with environmentally-friendly transformations allows P&G to attract clients attention
• Competitive advantage can be obtained with the development of detergents, and P&G is likely to pay back its initiative.
• More powder laundry detergent in smaller and lighter forms expenditures can be reduced, especially operational costs.
• P&Gs products have a stable position in the market regardless of competitors (see Exhibit 1).

Discussion

P&G is likely to obtain the most benefit from the implementation of laundry detergent compaction because it provides a range of benefits for the company and society (see Exhibit 2). For example, it allows the reduction of expenditures but still provides a product that has the same qualities and allows the representatives of the general public to fulfill their needs. As the assessment of P&Gs performance showed, such an approach provides it with the opportunity to increase income and attract clients. It is also environmentally friendly, which allows gathering new customers for whom such characteristic is critical. The increase in income with such an option is not extreme, but even in this way, it provides an opportunity to earn more. Still, it is not clear what should be done if competitors resort to similar alterations.

Another option that can be offered is the opportunity to stick to commonly accepted practices. It means that P&G should not emphasize innovations and should focus on the improvement of existing offerings in a less invasive way. However, many organizations that operate in this market tend to follow such a path, which means that P&G will not be able to differentiate itself from its competitors. The company is not likely to obtain additional income because the resources of the revenue remained the same. All in all, P&G may lose its image and uniqueness if it decides to follow this way.

Finally, it is also possible for P&G to focus on the innovations but not to try to enhance something that has already been created. For instance, it can offer some unique cleaner for carpets. It is expected that the focus on such an innovative idea and provision of a good offering is likely to appeal to the representatives of the general public so that they start buying it. However, the company already has numerous products and can just improve their quality, which will also be less expensive. Otherwise, the development of additional products will increase expenses.

Thus, focusing on three possible options, it can be stated that the most advantageous initiative for the companys cusses seems to be the first one. It provides a lot of different benefits that are not considered to be vital enough.

Next Steps

P&G has already implemented enormous alterations in the way this business is developed with time. Still, the company believes that it will not only compact powder laundry but also reformulate cleaning compounds completely. It believes that it is possible to use less detergent in comparison to other cleaning powers. P&G also thinks that it may be advantageous to develop products that are targeted at washing machines, etc. However, even though the representatives of the general think about this book and even do not eat in the elevator.

Exhibits

Exhibit 1

Rationale for Recommendation

• The implementation of new cultural approaches that deal with environmentally-friendly transformations is the right thing to do in the current situation. The representatives of the general public tend to pay more attention to those products that are somehow concerned with the issues that are critical for todays world. In this way, P&G attracted the clients attention because it revealed its transparency and stated that its clients were free to find out how the company operates.
• Analytics considered the way, in which competitive advantage can be obtained as soon as possible. While standard soaps have been used for numerous years already, nothing unusual could have happened to them. They have already be used from different sides so that it was possible to cope with bathing and soap with time. Still, the first detergent was developed in the 20th century already and the representatives of the general public tend not to worry about them. A detergent sector revealed data that showed that American families have about 600 laundries per year. With the development of the detergent market, penetration increased as well as the amount of the targeted market. As a result, P&G obtained an opportunity to turn into a leading company, with almost a 60% value share of the North American market. In this way, P&G is likely to pay back its initiative.
• Under the influence of retailers and due to the increased customer demand, the company had to consider the opportunity to provide more powder laundry detergent. Trying to enhance product delivery and make it less costly but more streamlined, P&G started to offer the same product in smaller and lighter forms. Soon, the additional alteration was made to appeal to both producers and clients and to reduce transportation costs. With the creation of compacting powder, professionals provided an opportunity to reduce expenditures needed for packing materials and warehousing. The water usage would also improve. All in all, these changes ensure that P&G reduces the number of negative influences made on the environment due to the companys operations.
• Those products that are provided by P&G turned out to be rather difficult to reach. They are widely used by the individual representatives of the general public and organizations that offer cleaning. The company needs to deal with lots of competitors because they all operate in the same market and have extremely similar components. Still, P&G itself gathers enough revenue so that it is not that vital to have everything ordered.

Exhibit 2

Options Grid

Wells Fargo & Company (simply known as Wells Fargo) remains one of the most respected brand names in the global finance industry. It is currently a revered financial services holding company (Wells Fargo, 2016, para. 3). The companys human resource (HR) practices are critical towards empowering more workers. However, there are specific gaps that make it impossible for the HR leaders to align employee performance with the firms strategy. Competent leaders should be recruited to implement a new change whereby the firm aligns the current HR practices with its business strategy. This new development will ensure the employees focus on the mission to support the firms business strategy.

Background Information: Wells Fargo

Company History

Wells Fargo has a long history in the industry. The firms website indicates that it was started in the year 1852 by two partners named William Fargo and Henry Wells. The main objective pursued by the new firm was to provide banking products to potential customers in California (Wells Fargo, 2016). Within a period of ten years, Wells Fargo had managed to increase its profits. This growth made it easier for the company to acquire Overland Mail and Holladay in 1866 (Wells Fargo, 2016, para. 2).

By the year 1950, Wells Fargo had grown significantly to become a leading brand name in the American financial market. In the recent past, this giant corporation has acquired a number of businesses such as American Trust Company, Union Trust, and First Security Corporation (Geisst, 2014). By 2009, the company had established Wells Fargo Securities (Wells Fargo, 2016). Because of its powerful business model, Wells Fargo has continued to attract stakeholders and customers from different regions. This move explains why the firm has remained competitive and successful in the investment banking subsector. With over 265,000 employees, Wells Fargo operates many branches in North America.

Wells Fargos Strategy

In order to remain successful, Wells Fargo uses a powerful business strategy guided by its mission and vision statements. These statements are usually aimed at promoting the best business practices that can empower more customers and support their financial needs (Wells Fargo, 2016). On top of that, the corporation uses powerful strategies to support the workers. The employees are equipped with the most appropriate skills, competencies, and resources in order to deliver competent services to the customers. Specific concepts such as teamwork, leadership, collaboration, and decision-making define the companys business strategy (Geisst, 2014).

Research and development (R&D) is taken seriously to support the firms strategy. This approach makes it possible for Wells Fargo to offer superior financial products that can address the changing financial needs of the targeted customers. The firms superior products such as banking, mortgage, and investment support the implemented strategy (Wells Fargo, 2016, para. 3). Wells Fargos global strategy plays a critical role towards ensuring that the targeted products are delivered to the greatest number of consumers. The firm uses its core values to promote specific action plans such as corporate social responsibility (CSR). These approaches work synergistically to define Wells Fargos business strategy.

Market Position

Wells Fargo has been operating in a very competitive industry. This is the case because the financial services industry is characterized by giant firms such as Citigroup Incorporation and JP Morgan Chase (Wells Fargo, 2016). Despite the presence of such competitors, Wells Fargo offers superior products to its clients. This practice explains why the firm has remained a revered brand in the industry. However, the firm is the third-largest in terms of assets (Wells Fargo, 2016, para. 2). The other important thing to consider is that the firms businesses are mainly concentrated in the United States. Its subsidiaries in Europe encounter stiff competition from different companies in the banking industry.

It is agreeable that Wells Fargo is a pacesetter in the industry. However, the company has limited presence in different parts of the world. The competitive rivalry in the sector explains why more companies continue to attract more customers (Wells Fargo, 2016). The industry is also less attractive to new players. However, clients have a wide range of options from the products in the industry. Despite being a successful provider of financial products and services to more customers, Wells Fargo continues to have a limited market share in the United States (Geisst, 2014). The organization has also failed to expand its operations across the globe.

Specific Area of Alignment

Organizational managers should use their skills to create sustainable firms. They can implement a wide range of strategies to achieve this objective. Wells Fargo has been using various strategies such as human resource to empower its workers. The human resource (HR) outlines a number of core principles and values in attempt to guide the employees. By so doing, the firm has managed to drive performance. The targeted customers find it possible to get quality financial services and support from the corporation (Sluijs & Kluytmans, 2012, p. 3). However, the firm encounters several challenges such as changing consumer needs, competitive rivalry, diversity, and consolidation in the industry. That being the case, the company must be prepared in order to remain successful in the future.

In order to improve its performance, Wells Fargo should align its HR practices with the current business strategy. As mentioned earlier, the companys business strategy focuses on the best practices in order to deliver quality financial services to the targeted customers. This strategy is supported by powerful initiatives such as R&D and positive leadership (Wells Fargo, 2016). The current HR department offers adequate inputs in order to support the strategy. Unfortunately, the current HR practices do not align with the firms strategy.

This gap can be addressed through the use of a powerful HR strategy. This means that the HR department should promote something known as performance capability (Sluijs & Kluytmans, 2012, p. 6). This kind of strategy attracts the right people and equips them with desirable skills in order to improve the existing business processes. The alignment will definitely play a positive role towards making the company successful. The HR department should identify and promote the best behaviors that can promote business performance. The processes should focus on the experience of every customer. The employees should be empowered, guided, and mentored in order to focus on the established organizational processes.

Aligning HR Practices to Business Strategies: Key Steps

Attracting Talent

The main objective is to ensure Wells Fargo implements the best business strategy in a professional manner. This approach will play a positive role towards delivering quality results within the shortest time possible. Before realizing this objective, the firm should attract the right individuals who can support the proposed realignment process. The targeted professionals can be recruited from the existing workforce. These positions include Chief Human Resource Officer (CHRO), Business Strategist, and Administration Officer (Nigam, Nongmaithem, Sharma, & Tripathi, 2011). The three key positions will play a major role towards improving the firms performance.

The candidates should receive competitive compensation packages. The occupants of these positions should receive similar salaries and remunerations. This is the case because they possess similar skills and competencies. They will also be required to present their inputs and competencies. The move will ensure the firms HR aspects focus on the implemented business strategy. Each position will therefore attract an annual remuneration package of $72,000. Every manager will also receive medical insurance, education cover for his or her children, transport allowance, and an annual leave.

Current and Targeted HR Processes

Currently, Wells Fargo is characterized by a strong HR department that focuses on the needs of the workers (Wells Fargo, 2016). The department has been on the frontline to address the grievances and differences experienced in the working environment. The HR Manager offers powerful guidelines to ensure the best resources are available to the employees. This approach encourages the employees to work hard and focus on the firms objectives. Issues affecting different stakeholders (including customers) are handled by the HR office (Sluijs & Kluytmans, 2012). This practice has made it possible for the company to realize its goals.

This discussion shows conclusively that the basics of HR are embraced at Wells Fargo. The main observation from this analysis is that the HR practices are not aligned with the firms strategy. The proposed approach seeks to implement new HR processes capable of supporting the companys business strategy (Sluijs & Kluytmans, 2012). Several processes will therefore be promoted by this new change. To begin with, the HR department will be on the frontline to attract the right people who possess the required interpersonal and technical competencies (Oxelheim, Randoy, & Stonehill, 2011).

The next process is establishing or promoting the concept of performance capability. This approach will ensure the firm identifies and cultivates the best behaviors and processes capable of improving customer experience (Nigam et al., 2011, p. 152). The workers will be empowered and equipped with the right resources to support the implemented processes. Departments and units will be guided by the right leaders to support the established systems. This new approach will create a new working environment driven by the companys mission.

The nature of leadership at Wells Fargo is expected to change significantly. This happens to be the case because the above three professionals will offer better leadership styles. The main objective is to ensure the workers are guided and empowered to support the companys strategy. The leaders will collaborate with the followers and show them the way (Loshali & Krishnan, 2013, p. 11). It will also be appropriate for the professionals to implement new practices that can drive performance. For instance, issues such as employee recognition, training, and satisfaction should be taken seriously. Performance evaluation should be done annually to empower the workers (Nigam et al., 2011). These evaluations will ensure competent employees are empowered in order to support the firms strategy. The performance evaluations can be used to reward specific workers who support Wells Fargos business model.

Knowledge, Skills, and Abilities (KSAs)

The employees in a specific company dictate its performance and ability to realize the targeted business goals. The proposed strategy is aimed at supporting the corporations business performance. The inclusion of HR in the firms business model can support the targeted objectives and eventually make the firm profitable. It will therefore be appropriate to hire competent individuals who possess the most desirable competencies. Such skills will be needed to empower the current workers and equip them with the relevant resources. It is important to ensure the above three positions attract professionals who possess similar skills (Loshali & Krishnan, 2013). The leaders will be required to transform the HR operations of the company. This strategy will support the existing business strategy. The targeted Chief Human Resource Officer, Business Strategist, and Administration Officer should therefore possess the KSA competences presented below in order to support the firms objectives.

Knowledge

The leaders should be aware of the major principles and procedures associated with human resources. This knowledge will make it easier for them to select, train, empower, and guide the employees. Business administration and management is another key area that should be clearly understood by HR practitioners. They should be aware of the major leadership techniques. Knowledge of specific customer service processes will make the individuals successful. They should have a strong background in philosophy and psychology. This background will ensure the candidates understand human behavior, personality, and motivational processes. The other key knowledge areas to consider include information technology, economics, public safety, counseling, and accounting (Loshali & Krishnan, 2013, p. 15). A proper background in these areas will make it easier for the leaders to support the organizations mission.

Skills

Human Resource (HR) leaders should possess a wide range of skills in order to empower their followers. The first skill to consider is critical thinking. The targeted candidates should be able to use logic whenever coming up with new decisions. The approach can make it easier for the leaders to offer reasonable and logical solutions to various problems. Decision-making and problem-solving should be considered during the hiring process. Developed system analysis skills will make it easier for the leaders to examine how specific processes influence performance. The individuals should be active listeners, good time managers, and team players. It is appropriate to hire professionals who listen attentively, collaborate with others, and make positive judgments (Hunt, 2014). Persuasion should be considered as a powerful skill during the hiring process.

Abilities

Some people use the terms skills and abilities interchangeably. Skills and knowledge dictate the abilities of an individual. That being the case, the targeted professionals should possess a number of abilities. For instance, organization is a powerful ability that can make many HR managers successful. This ability is characterized by effective time management, efficiency, motivation, and good recordkeeping (Walsh, Sturman, & Longstreet, 2010, p. 17). The candidates should be effective leaders. They should use their competencies to guide their followers, make appropriate decisions, and address the major challenges affecting performance. The individuals should be able to act ethically and professionally. Problem-solving and conflict management are powerful abilities that can make a difference for HR professionals and Operations Managers (Hunt, 2014). They should also be able to implement and manage change. Every new change at Wells Fargo should be supported by the right leaders.

Technology Considerations

The above discussion shows clearly that the targeted professionals should be conversant with different information technology (IT) and computer skills. Modern informatics and technologies are transforming the manner in which business is done. Wells Fargo should therefore consider various technologies in order to drive performance. The first issue to consider is the use of social media networks. These platforms have the potential to improve the morale of many employees. Wells Fargo should embrace the use of social media platforms to communicate with its employees (Walsh et al., 2010). The employees should be guided to use such platforms and inform the targeted clients about Wells Fargos financial products.

The HR department should embrace the use of computers and online-based videos (such as YouTube) to educate the employees. Such videos will equip the workers with appropriate skills and eventually focus on the companys business strategy. Modern computer systems should be implemented to guide and monitor the behaviors of different employees. Decision support systems (DSS) have become common in many financial institutions than ever before. These DSS systems should be implemented at Wells Fargo to guide the managers throughout the decision-making process. The systems will encourage the workers to present their grievances (Hunt, 2014). The process will make it easier for the HR department to address the needs of the stakeholders. The companys website has been used to inform more people about its business agenda. It will be appropriate to improve the website in such a way that it engages more customers (Walsh et al., 2010). Such measures will ensure the companys R&D produces innovative services that have the potential to transform the experiences of the clients.

Labor Market and Law: Addressing Legal Changes

Wells Fargo operates in a complex, diverse, and competitive industry. The current labor market is characterized by unique aspects such as diversity and legal frameworks. The firm hires its employees from the American population. The country has different racial groups. Throughout the hiring process, the firm should consider specific individuals from diverse backgrounds in order to support its business strategy. The targeted persons are characterized by unique differences in terms of gender, culture, education level, skills, and expectations (Colby & Ortman, 2015, p. 4). That being the case, the company should attract different individuals without any form of discrimination.

Cases of discrimination or unfair dismissal will always result in legal procedures. The labor laws in the country (and across Europe) dictate the minimum salaries for specific positions. Malpractices such as child labor are prohibited in the countries. Companies should provide the best opportunities to their workers (Colby & Ortman, 2015). Specific issues such as workplace safety, compensation for injuries, and retirement benefits are governed by labor laws. It should also be acknowledged that such labor laws change frequently in order to address the emerging needs of more stakeholders.

The government and other agencies propose laws that can impact the finance industry (Oxelheim et al., 2011). Some of these laws focus on the welfare of different workers. When there are new legal frameworks or changes, companies such as Citigroup, Wells Fargo, and JP Morgan Chase come together to challenge such propositions. The ultimate goal is to ensure the regulatory changes do not harm their business operations. Similarly, the American Bankers Association (ABA) supports the initiatives undertaken by these companies.

HRM Recommendations

Description of Other Human Resource (HR) Issues

Human Resource (HR) is an inexhaustible field that focuses on the welfare of different stakeholders in an organization. At Wells Fargo, HR has remained a powerful aspect that supports more workers. The proposed strategies will also play a positive role towards aligning the HR practices with the companys business model (Sluijs & Kluytmans, 2012). This approach will make it easier for the workers to focus on the goals of the company.

It is also agreeable that several issues can be considered to transform the performance of the company. For instance, the hired professionals can use their KSA skill sets to promote good governance. The ultimate goal of HR should be to facilitate a powerful culture that supports the goals of the organization. Wells Fargo should ensure the HR leaders are willing to oversee specific activities that affect performance. The leaders should also promote new practices such as training and empowerment of different workers (Hunt, 2014). This process will make it easier for the employees to make the best decisions independently.

The HR department should link the employees in every business unit. By so doing, a common language will emerge whereby the workers focus on the companys values, principles, and mission (Colby & Ortman, 2015, p. 5). The HR leaders should present the best concepts and inject the most desirable philosophy. The new ideology will guide and make it easier for the workers to deliver positive results.

Conclusion

Although Wells Fargo is one of the leading players in the Americas financial market industry, it faces stiff competition from different companies such as Citigroup. Additionally, its current HR practices are unsustainable and incapable of supporting the firms business model. Any attempt to improve Wells Fargos HR agenda will make a huge difference and eventually make the firm successful. Wells Fargo should recruit competent HR professionals who have the potential empower the workers. By so doing, the leaders will ensure the followers are aware of the targeted organizational objectives (Hunt, 2014). Consequently, the HR processes will result in performance capability and eventually make Wells Fargo the most successful company in the industry. The firm will use its new position to offer superior services and financial products to the targeted customers across the globe.

References

Colby, S., & Ortman, J. (2015). Projections of the size and composition of the U.S. population: 2014 to 2060. Web.

Geisst, C. (2014). Encyclopedia of American business history. New York, NY: Facts on File Incorporation.

Hunt, T. (2014). Common sense talent management. Hoboken, NJ: John Wiley and Sons.

Loshali, S., & Krishnan, V. (2013). Strategic human resource management and firm performance: Mediating role of transformational leadership. Journal of Strategic Human Resource Management, 2(1), 9-19.

Nigam, A., Nongmaithem, S., Sharma, S., & Tripathi, N. (2011). The impact of strategic human resource management on the performance of firms in India: A study of service sector firms. Journal of Indian Business Research, 3(3), 148-167.

Oxelheim, L., Randoy, T., & Stonehill, A. (2011). What can international finance add to international strategy? IFN Working Paper, 1(8), 1-28.

Sluijs, E., & Kluytmans, F. (2012). Business strategy and human resource management: Setting the scene. Business Strategy and Human Resource Management, 1(1), 1-23.

Walsh, K., Sturman, M., & Longstreet, J. (2010). Key issues in strategic human resources. The Scholarly Commons, 1(1), 1-30.

Wells Fargo. (2016). Our strategy. Web.

Consumer attitudes are formed by several aspects

They can be influenced by the peoples beliefs, intentions or feelings towards certain types of goods and objects (Attitudes 2010). Besides, the attitudes make consumers prefer different brands or even favor certain stores and prefer them to the other ones. Of course, these attitudes are very individual and vary from one buyer to another.

For example, consumer attitudes about ice cream can be different. Someone believes that ice cream is refreshing on a hot day and this belief will make this person purchase a bucket of ice cream. The other person does not enjoy eating cold food; this is why ice cream would not be their choice of a dessert. It is impossible to suit all of the potential clients because there will always be opposing opinions about every type of goods.

Effect is an emotive part of the attitude; it is based on the way a person feels about a certain product, it could be related to some individual experiences (What Can Attitudes Tell Us about Consumers? n. d.).

For example, someone dislikes sushi because the ones had food poisoning after eating sea food. Some other customer purchases mint biscuits because they remind them of childhood. Behavioral intention is the possibility of a consumer to purchase certain goods. This variable is inconsistent.

The marketers try to influence the beliefs using changing the affect factor. Classical conditioning approach works through the pairing of goods with commonly liked stimuli, for example, by involving beautiful women into the advertisements of the products.

Besides, the advertisements add another attractive trait to the goods, making them well known. The product people saw or heard about before is more likely to be purchased than an unknown new product.

The key elements that influence the customers decision-making process can be cultural, individual, social, and psychological

It is crucial for a successful marketer to understand how these factors work to make their product more attractive and maintain their marketing campaigns (What Is Consumer Behavior? 2014).

In most cases, the marketers strategies are focused on the psychological factors that influence decision making and encourage people to purchase certain goods. This aspect includes peoples self-perception and image. To stay in the trend people would gladly buy fashionable clothing, accessories, and electronics.

Even food can be fashionable. This is how cheaper replicas or variations of goods are promoted, they represent expensive and fashionable things, yet they cost much less. In order to make certain goods reputation better, the marketers engage celebrities in the advertisements. This makes the promoted goods fashionable and desired.

Another strategy the marketers use to promote their products is scheduling the most suitable time for the advertisements. For example, advertising beer and snacks in the breaks of sports programs or after the half-time of football games. The marketers of food products study their potential groups of clients and find out the time when these people are hungry. This strategy helps them make the customers crave for the promoted goods.

Studying these factors and strategies is useful for consumers because it makes them re-think their attitudes towards purchasing and decision making. The person-oriented towards extended problem solving is more involved into the process of evaluation of the products, while the person, whose problem solving is low, is more likely to buy things on impulse (Grewal & Levy 2012).

Humans live in groups

They have families, friends, colleagues from work, school mates. We are used to dividing our society into various groups and relating to some of them. Normally, the members of one group share certain behavioral patterns. Such reference groups are able to create a strong impact on an individual. The group influences are widely used in the sphere of marketing.

The references can be of three main types. Aspirational reference includes the individuals against which the customers would mainly compare themselves. This is why makeup companies use celebrities for advertising their products. The good looking stars represent the image women would generally want to be like. Associative references represent the equals because the opinion of the members of our groups often means a lot to us.

This is why teenagers shop in two stages. First, they go to a store with their friends a pick out things that will be approved by the group and after that bring the parents that would buy the chosen items (Group Influences 2010). Dissociative reference involves the groups people would not want to be like.

The store called The Gap uses this kind of reference to work though the dissociation of young people from their parents and the older generation that wears old-fashioned clothing.

Reference groups shape individuals purchasing decisions. Besides, the marketers strategies are based on the observation that the members of one group share behavioral habits and needs.

Opinion leaders are the people that are in charge of groups and can form and influence the groups actions and choices. Normally, the marketers believe that if statistically, the group is interested in a certain product, other people that associate themselves with this group will also purchase this product (Reference Groups n. d.).

References

Attitudes 2010, Consumer Psychologist.

Grewal, D & Levy, M 2012, Marketing, Irwin Australia, Sydney.

Group Influences 2010, Consumer Psychologist.

Reference Groups n. d., Boundless. Web.

What Can Attitudes Tell Us about Consumers? n. d. Crab.

What Is Consumer Behavior? 2014, WiseGeek.

Introduction

Acer, Inc. is a company based in Taiwan, serving several nations. It specializes in advanced electronics technology and is headquartered in Xizhi, New Taipei City, Taiwan. Acer is a company that can provide innovative and high-quality products at a lower price than its competitors. Acers competitive advantage lies in its ability to provide innovative and high-quality products at a lower price than its competitors. The companys strong Research &D department constantly develops new and improved products. Additionally, Acers efficient manufacturing and logistics processes keep costs low and offer competitive prices. Furthermore, the company has a strong global brand and a vast distribution network, which gives it a significant advantage in the market. Acer has a decentralized organizational structure, with each business unit having a high degree of autonomy. The company has an established global brand and a wide distribution network, which gives it a significant advantage in the market.

Acer America

In 2004, Acer developed the Aspire, a line of consumer laptops. The Aspire was designed to be a more affordable alternative to the higher-end laptops at the time. The Aspire was a success and helped Acer to gain market share in the United States. The Aspire was developed at Acers research and development center in Taipei. The team that developed the Aspire was a mix of Taiwanese and American engineers. The Aspire was designed to be a more user-friendly and stylish laptop than the other laptops on the market. The Aspire was a success and helped Acer to gain market share in the United States. In 2006, Acer was the fifth largest laptop manufacturer in the United States. The Aspire helped Acer to become a global brand and gave the company a foothold in the US market. The development of Aspire was a crucial moment in Acers transformation into a worldwide company. The Aspire was developed by Taiwanese and American engineers at Acers research and development center in Taipei. The Aspire was a success and helped Acer to gain market share in the United States.

Philips has a competitive advantage in its innovation, technology, high-quality products, and innovation. Matsushita employs cost effectiveness to earn a competitive advantage. Phillips is organized in a matrix structure, where each product type has its unit with specific employees. However, Matsushita has a traditional hierarchical structure with a transparent chain of command. This structure allows the companies to be efficient and control costsboth Philips and Matsushita have intense research and development capabilities and their sales and marketing expertise. Jollibee is organized into a traditional hierarchical structure, has robust brand recognition, and has manufacturing expertise and lower-cost production capabilities. The company also has a robust supply chain and distribution network. Lincoln Electric has a competitive advantage in terms of its technology and product quality, has a traditional hierarchical structure, and produces goods cost-effectively. Development capabilities for Lincoln include marketing expertise and a strong R&D. The company has a global reach and can sell its products in many different markets.

The findings from the articles suggest that companies should adopt a frugal and Matsushita resourceful mindset, be willing to take risks, invest in an intense research and development team, and ensure they have a manufacturing capability to be successful in the global market. Apple is a company that is currently in the process of expanding its global reach. The company could use the lessons learned from the articles to help guide its expansion. In particular, Apple could focus on being frugal and resourceful, taking risks, investing in research and development, and ensuring it has a manufacturing capability.

Samsung can also employ the strategies used by the discussed firms to enter the international markets. First, it is vital to study and comprehend the target market clearly. This requires it to understand the particular needs of the customers and their buying potential. Samsung should also hire highly trained personnel who understand the companys goals. Like Acer, Samsung should establish a strong distribution network to ensure it manages a smooth supply to its existing and new customers. Samsung should also maintain or strengthen its brand presence to capture customer trust (Lobo et al.). Extensive research and development will also play a central role in gaining international markets.

Recommendations

Looking at these lessons, a few recommendations can be made for companies expanding into the global market. First, companies should carefully consider their growth strategy and how aggressive they want. Second, companies should consider their organizational structure and how it will impact their expansion plans. Thirdly, companies should consider their core competencies and how they can be leveraged in new markets (Lobo et al.). International trade is an essential requirement for companies wishing to expand their returns.

Conclusion

In conclusion, the strategies employed by Acer, Philips, and Jollibee Foods Corp. to be successful in the international market can be summarized into a few key points. A company must be frugal and resourceful to keep costs low. Moreover, an organization should be willing to take risks to gain a foothold in new markets. Firms should invest in research and development teams to create innovative, high-quality products. These lessons can be applied by companies such as Apple and Samsung, looking to expand their reach into new markets.

Work Cited

Lobo, Carla Azevedo, et al. Factors Affecting Smes Strategic Decisions to Approach International Markets. European J. of International Management, vol. 14, no. 4, 2020, p. 617. Web.

The article The Most Praised Generation Goes to Work by Jeffrey Zaslow uncovered several important questions and answers to them regarding self-esteem of the children who are growing up. To be more precise, the article that was published in the Wall Street Journal is revealing the truth about how children with high self-esteem can function as adults.

The educators and employers claim that the young generation of adults has a strong need for praise; otherwise they would wither under an unfamiliarly compliment deficit (Scenters-Zapico 220). The main point, or thesis of the article is that the adults in their mid-twenties should be praised, applauded and showered with encouragement, or they would feel insecure and low-spirited.

As a consequence of this phenomenon, corporations and companies attempt to follow up on these demands. Not only they try to praise the adults more, the employers sometimes engage consultants in order to teach an effective ways of encouraging and complimenting employees to managers. These methods can include praise emails, oral compliments or prize stimulation; furthermore, the worker feels appreciated more than for just showing up to work.

Nevertheless, the author focuses not only on the employees but also on the young couples and relationships in early marriage. He reveals the difficulties that executives, educators, and spouses are facing as they are constantly dealing with those who need praises and stimulation.

One of the few drawbacks of the new policy of encouragement is that with constant praise and celebration employees will not feel unique at their job anymore, as every single worker is appraised. Moreover, the article claims that nowadays young generation is more self-centered that any previous one; students are depicted as more self-absorbed than ever, which would result in a new narcissistic and arrogant generation.

However, according to the research, praise culture can help the employers with job retention, and marriage counselors say couples often benefit by keeping praise a constant part of their interactions (Scenters-Zapico 221). A relationship investigation firm, which is located in Seattle, claims that one of the keys to happiness in marriage is praising and complimenting your spouse at least five times a day.

In his article, Jeffrey Zaslow suggests several approaches that will help educators and bosses master the craft of constructive praise and compliments. There are a few points that are essential for productive encouragement: restriction of the adjectives, limiting the emails, controlling the motivation, not falling into the extensive publicity and understanding that sometimes praise is the only choice available.

Besides, the author observes various approaches for different age groups. For example, people over 60 years old are more likely to enjoy receiving a public award while their need for praise is minimal. On the other hand, workers in their forties expect constant feedback on their work and supplemental merchandise connected with the company.

The last age group is the target group, the young adults. Employers have to emphasize the improvements in the performance of the young workers, which may seem odd to older generations. Nevertheless, this scheme proved itself to be quite useful.

In conclusion, it has to be said that everybody needs praise now and then. However, ego-stroking may feel good, but it doesnt lead to happiness (Zaslow par. 28), though it may and help the worker to give more productive performance at work, and the young couples will be able to find harmony and satisfaction in some parts of the wedlock.

Works Cited

Scenters-Zapico, John. Identity: A Reader for Writers, Oxford, England: Oxford University Press, 2013. Print.

Zaslow, Jeffrey. The Most Praised Generation Goes to Work. Wall Street Journal.

Globalization has given firms across the globe the opportunity to reach clients in any part of the world. However, with this opportunity comes stiff competition from other firms across the globe. A case in point is the Intel Corporation. In the last decade, the firm has faced stiff competition from Advanced Micro Devices (AMD) (Lévâque, 2010). As a result, it chose to employ unorthodox business practices to retain its market monopoly. The practices infringed antitrust laws, both in the U.S. and Europe, prompting investigations that found Intel culpable (Lévâque, 2010). This article explores the antitrust behavior exhibited by Intel during the superiority war that ensued between the two firms when the AMD attempted to release its x86 CPUs ahead of Intel.

Intels Antitrust Behavior in Perspective

The war in question ensued when Intel discovered that AMD had successfully developed x86 CPUs and was already trying to sell them to major computer manufacturers (Lévâque, 2010). At the time, Intel was yet to develop a similar product. In other words, Intels computer chips were inferior to what AMD had at the time. Sensing defeat, Intel colluded with its key OEM customers to bar AMDs x86 CPUs from entering the market (Lévâque, 2010). Consequently, Intel was investigated for antitrust behavior by the State of New York, the Federal Trade Commission (FTC), and the EU and was found culpable (Lévâque, 2010).

Intel paid Dell three hundred million U.S. dollars quarterly for five years to discourage it from purchasing AMDs x86 CPUs for use in its computers (Lévâque, 2010). Similar payments were made to HP to discourage it from using AMDs x86 CPUs. Intel also paid Acer and Lenovo, which had already bought and used AMDs x86 CPUs in some of their computers, to delay the release of those computers to the market (Tung, 2014). It sought to maintain a monopolistic hold on the market. However, it instead lost billions of dollars in terms of the payments it made to the mentioned firms and fines. It also denied end-users the utility they would have derived from computers fitted with AMDs x86 CPUs by forcing them to buy computers fitted with its chips. These actions were found to violate Section 2 of the Sherman Act (Lévâque, 2010).

Intels antitrust behavior shows that in most cases, monopolies and oligopolies are bad for society. By forcing computer manufacturers to use only its chips, Intel denied end users the freedom to choose the chips they preferred. The issue is aggravated by the fact that AMDs x86 CPUs were ready for use by 2003, but Intel ensured that no computer fitted with the chips entered the market until much later (Lévâque, 2010). The firm denied computer users better technology to maintain a monopolistic market structure. This example shows that monopolies and oligopolies often impose inferior products and high commodity prices on consumers. As such, they can only be beneficial to society in exceptional cases.

Conclusion

Monopolistic market structures do not encourage innovation because there is no pressure on the dominant firm. As such, only firms that have the interests of their consumers at heart can benefit the society in which they are dominant. Oligopolistic market structures for their part can sometimes be beneficial. For instance, the war between Coca-Cola and PepsiCo gives society better quality beverages as well as competitive prices (Hampp, 2012). It should, however, be noted that this is an exceptional case because conventionally, oligopolies are characterized by imperfect competition. Sometimes firms that operate in oligopolistic markets engage in price-fixing to maintain high-profit margins. As such, the bottom line is that monopolies and oligopolies are bad for society because they jeopardize liberalization.

References

Hampp, A. (2012). The Cola Wars. Billboard, 124(15), 18-25.

Lévâque, F. (2010). Law and technology Intels rebates: Aboveboard or below the belt? Communications of the ACM, 53(6), 35-37.

Tung, L. (2014). Intel loses fight against ¬1bn EU antitrust fine. Web.