Wireless communication is one sector of business that has undergone phenomenal growth over the past few years. The number of individuals using mobile devices like cell phones, I phones, laptop and palm to computers has drastically increased even in the developing and third world countries. This growth in market has attracted a lot of attention in this sector attracting new entrants to compete with the traditional communication giants.
Monopolies are described in economics as the existence of a firm or corporation that has so much control over the market that they have a significant influence on whether a new entrant in the market will succeed or not and if they do enter, on what terms (Heywood and Guangliang, 2009). Monopolies are generally discouraged in most economies with laws put in place to regulate it. Certain monopolistic behaviour can sometimes play to the disadvantage of the smaller new entrants thus the need of regulation to avoid unfair competition.
Oligopolies on the other hand are markets whereby there are just a few product or service providers. This is normally characterised by stiff competition and marketing strategies that always have the competitor’s reaction in mind. Oligopolies have sometimes been perceived better than monopolies because the end consumer then has a sense of choice and the cost of products and services are self regulated (Heywood and Guangliang, 2009).
The wireless communication industry is probably one of the best examples of oligopolistic markets. For many years there have been just but a handful of wireless communication firms dominating the market. The main players have been Nokia, Samsung, Sony Ericsson and LG; but with growing markets, new entrants have been attracted into the market.
The i phone by apple is probably the best example of a new entrant. Apple focussed on great innovation to take mobile communication to a whole new level. They came up with the I phone that allows the users to get their e mails directly on their phone just like text messages while supporting all the other conventional phone features.
China has also come into the market with phones similar to the ones made by the original players. All these combined have put pressure on the traditional top players both in terms of pricing and innovation. The china phones are a lot cheaper but perform all the functions as the original phones plus extras like TV reception.
I do not however think that the competition can push out some players because despite the cheap prices, the cheap phones have some downsides like shorter lives and poor batteries. The traditional leaders are therefore almost guaranteed to keep the upper class markets.
The stock prices of the big firms are not likely to be affected because if the firms maintain top quality products then their reputations will remain protected. Reseller phones now available in the market are likely to work against the cheaper Chinese phones rather than the large firms because of the prices. The big firms in the market are only likely to change their strategies in separating their markets.
This they can easily achieve by dedicating a department within their firm to cater for the lower end market by providing good quality phones but at affordable prices.
This would take care of the competition from china. They would also need to invest in innovation to counter competition from the ever emerging new technologies. They would also need to diversify their products to include other services. The graph below shows how these services were distributed in Japan (home of the giants in telecommunications industry) for the year 2009.
Products & Services
Figure 1. IBISWorld (2009).
After all is said and done, it is the end consumer that is bound to benefit from all this competition and innovativeness because they will get quality products at affordable prices.
References
Heywood, J., & Ye, G. (2009). Delegation in a mixed oligopoly: the case of multiple private firms. Managerial and Decision Economics, 30(2), 71- 82.
Radio frequency identification chip is a system that assists retailers in transmitting items or peoples identity through wireless radio waves. The transmission makes use of unique coding to ensure the identity of the sent package is safe and confidential.
Most of the retailers prefer it for security purposes, as there is no need for contacts or physical encounters for the communication to take place (Harley, Jacobsen and Shai 89). The data sent through Radio Frequency Identification is not cumbersome to read as one can do it through human body or any non-metallic objects.
The simplest Radio Frequency Identification system consists of three major parts; an antenna, a transceiver whose main component is a decoder, and a transponder that has a program of an exceptional message.
The Radio Frequency Identification has assisted large retailers in transmitting data safely, to be read by the intended receiver and then processed accordingly. RFID helps large retailers to transmit the information of a certain object in a confidential manner such that the price details, cash transaction, and even the colors of the item are decoded.
Large retailers have made use of RFID for many years because of its ability to follow any load on transit. Moreover, some of its added benefits to the users include asset tracking (National Research Council 12). In large companies there are a list of the objects that are likely to be lost, the objects that are used occasionally, and those that are hard to obtain when in need. Large companies take the advantage of RFID to place some tags on such objects.
For instance, NYK Logistics has used RFID to track its containers. In manufacturing companies, RFID has assisted in several occasions like following up the ongoing process and in reducing imperfections during the process of manufacturing. Through this, the manufacturing companies experience an increased output as it is in a position of producing products of different versions.
Some of the famous retailers like Wal-Mart and Tesco are among the major users of RFID whereby their supply chain is more advanced and efficient. Through this system, they are also able to ensure that all the products that the customers may require at any time and in any quantity are available in their stores (National Research Council 23).
These retailers can now serve their customers better by the use of this system and enjoy an increased output from their businesses. The RFID has also served as a suitable payment system especially for road charges without necessarily stopping.
In many countries, this system is helping customers to pay for their services in big restaurants through the windows for quick and convenient services. Another major benefit of using RFID is for security purposes of homes, offices, and other buildings.
This system also serves as an electronic means to manage the accessibility of areas where security is essential. For the big companies, their employees make use of this system to open the gate and the doors by just holding a badge with minimal tear and wear because there is no contact required (Harley, Jacobsen and Shai 105).
Although Radio Frequency Identification is associated with many benefits, several disadvantages come with it. The major disadvantage of RFID is its cost because its tags range between 8 and 18 cents, making it more difficult to implement. In terms of cost, most of people prefer using bar codes. In addition, the RFID chips are attached to the item by use of adhesive tape that can easily be detached encouraging theft.
Anyone with a reader can take advantage of following up the items with RFID. Competitors can trace company’s product movements because there is no need for sight-to-sight communications when decoding the data. During the rainy seasons, tags can spoil. Readers sometimes make common mistakes when several tags are read at the same place. At times, reader may skip an object or account for an object that does not exist in the package.
Works Cited
Harley, Connie, Lynne Jacobsen and Robkin Shai. Radio Frequency identification handbook for librarians. London: Libraries Unlimited, 2007.
National Research Council. Radio frequency identification technologies: a workshop summary. New York: National Academies Press, 2005. Web.
There are a number of ways to be chosen for the evaluation of the effectiveness inherent to a particular organization. In this paper, Verizon Communications Inc. headquartered in New York will be taken into consideration in order to prove that the already spread low satisfaction of job becomes a serious problem to be solved within a short period of time.
To achieve appropriate results and understand how workers’ needs may be met, the idea of needs assessment is regarded. Needs assessment turns out to be an important activity that pursues a number of training and developing functions and is used in order to solve problems within a particular working environment or consider the necessary productivity issues.
There are three main types of analysis that may be used within needs assessment: organizational, task, and personal (Noe, 2010). By means of the ideas gained during the analysis, it is possible to prove the urgency of a training intervention that will help to benefit employers at work.
Concepts discussed in articles, case studies, and threaded discussions
The main function of Verizon Communications is to provide society with a variety of entertaining, informative, and communicative services in the USA by means of the innovative business solutions which are applicable around the whole world (Verizon Communications Inc., 2010). During the last months, it has been discovered that not all workers of the company are satisfied with the results they achieve.
They are not enough motivated; they cannot understand what purposes they have to set; and, what is more important, the managers do not find it necessary to identify lack of motivation among workers as an important problem. It turns out to be very important to gather information about the company, pay enough attention to the opinions of workers, and identify the most effective means to improve the situation in the company.
As a result thread discussions, it has been identified that company’s goals and missions will be met in case workers’ understand their duties and are motivated enough. Each organization has its own approaches and ideas for improvement and, in the case with Verizon Communications, people’s opinions and attitude to work need to be considered.
Methods to gather information
There are several methods which are used to gather information about the organization. Questionnaires and interviews will help to understand what challenges the workers and which conditions are more preferable for people.
Needs assessment that is based on questionnaires and interviews should certainly help to clarify competencies of the work team as well as to understand the changes which should be done to promote better future for the company and each worker in particular.
Sometimes, the company faces the same challenge as its managers fails to focus on the opinion of each worker; this is why details and careful attitude to each worker have to be taken into account.
Three level of analysis
Needs assessment has to be organized on three different levels, and each level is another powerful opportunity to organize the work properly. There are a number of pressure points in each type of analysis; still, each of them will help to comprehend the necessity of training (Noe, 2010).
In fact, the main purpose of needs assessment in the case under analysis is to prove that training becomes more important that the identification of the problems (Barbazette, 2006).
Individual analysis
By means of individual analysis, it is possible to learn how each worker performs his/her job in the company. As soon as the questionnaires are offered to employees, it is possible to expect to measure some job-related qualities and focus on knowledge and skills which are necessary.
With the help of such work, the vast majority of weak and strong points of the current system are identified. In Verizon, workers admit that they do not have enough chances to improve their skills and use personal improvement as the main source of motivation. People are limited in their activities that results in low job satisfaction.
Organizational analysis
This type of analysis in needs assessment looks at the company’s effectiveness and defines which conditions for training are necessary. Constantly changing technologies, organizational goals, and even political trends may define the level of worker’s competency, this is why the chosen assessment should consider these points to understand what kind of training is more appropriate.
Verizon deals with innovative technologies for people; still, its workers are not always able to learn enough about production. This is why they have to hurry up to meet customers’ expectations at expense of personal unawareness and inabilities to benefit from their occupation.
Task analysis
Finally, task analysis helps to choose the data about the job performed at the company. It is not enough to describe the job available; still, it is more important to ask the questions about how job is offered to people, what conditions are more preferable for workers (Tobey, 2005), and which problems may appear while performing a job.
Workers are not able to define clearly their functions and task at the company, this is why they fail to complete their work accordingly and enjoy the results.
Challenges in gathering information
The only challenge while gathering data about workers and working conditions is based on time limitations. As a rule, Verizon’s employees do not have much free time; this is why the vast majority of their answers in questionnaires are not properly evaluated. It is hard to define whether all answers are true and based on real facts as pressure of the company turns out to be an important aspect in needs assessment.
Initial insights about training intervention
Taking into consideration the results achieved and the challenged faced, it is possible to say that training intervention is crucial for the company. The questionnaires and interviews show that the vast majority of workers lack free time to evaluate their skills and knowledge.
It is important to organize working schedules accordingly and provide people with a chance to learn the peculiarities of the technological world, to improve their knowledge, and to define clearly their goals and needs.
Properly organized training should help employees as well as employers to achieve the best results in their activities within a short period of time due to the fact that potential of each worker is unique indeed, and it is necessary to use it correctly.
Conclusion
In general, the importance of needs assessment is crucial indeed. Not all professional managers understand that their employees are in need of appropriate training that promotes development of the company.
The workers from Verizon understand that their work should not challenge them but inspire, this is why job satisfaction of the vast majority of workers is low, and this is why training and inspiration will be just in time for the company.
Reference List
Barbazette, J. (2006). Training Needs Assessment: Methods, Tools, and Techniques. San Francisco: John Wiley and Sons.
Noe, R.A. (2010). Employee Training and Development. New York: McGraw-Hill.
Tobey, D.D. (2005). Needs Assessment Basics: A Complete, How-to Guide to Help You: Design Effective, On-Target Solutions, Get Support, Ensure Bottom-Line Impact. Alexandria: American Society for Training and Development.
“Verizon Communications Inc. (2010). Hoovers. Web.
This paper is an analysis of companies competing in the wireless device and application products. The products are rapidly changing and have led to competition amongst major producers and developers of software. Google, Apple and Microsoft have made collaborated to make diverse and unique products that meet the needs of the customers. Some products have better applications, advanced applications and others new applications.
They have also collaborated with other mobile produces to make products with better security. The products have enhanced business operations and are being adopted by an increasing number of users.
The research study concluded that the competitor has engaged in research and innovativeness to create unique products. For companies to survive they should be easy to use, accessible and affordable to the customers. The applications must be of quality and collaborations will lead to unique products.
Introduction
Businesses engage in diverse strategies in order to keep up with the competition in the global market. The competition is championed by a constantly changing technological development and instability in the economy. Technology has in turn led to rampant access to information. The wireless devices and application developers have an ever ending challenge to keep up with the development.
This paper will analyze the internal and external environmental trends and strategic management of Google Apple and Microsoft. It will focus on the evolving product category, and the strategic formulation, implementation and outcomes of the competitors. It will also discuss the strategies that may give the competitors an advantage in the future.
Methodology
This analysis will analyze literature in journals. It will also review documented business articles.
Analysis
Environmental trends
The environmental trends of the Apple, Google and Microsoft are characterized by competition. The organizations keep track of developments in the technological world. They are also keen to market themselves to keep their revenues and maintain their name in the market.
The stakeholders of the companies are given attention. The employees of the organizations are useful in developing the competitive products. The experts are hired and employees are trained so that, the strategic objectives are achieved (Hitt et al 2009, p. 12).
Nerney (2011, p. 1) mentions that Google has employed software developers for mobile devices so that they can develop software that meets the demand of the market. The shareholders are involved in decision making.
The organizations can be affected by the changes that happen in the global economy. The market is predictable, and organizations have to restructure their traditional organizational structure to a business model that is adaptive to constantly changing environment.
Strategic management issues
The business has become competitive, and organizations have come up with ways of managing their business processes, enhancing communication, managing knowledge and have ventured into collaborations (Internet.com, 2011, p. 1). Wenzel (2011, p. 1) points out that competition are championed by the need to meet the customers’ needs.
The customers include business people who want to use application software both on the personal computers and on their mobile phones. Web based meeting and email in mobile phone has been enabled and facilitated business process.
Mobile devices that have a word processor have also been effectively used in business to communicate and share knowledge. Google eliminated the monotony that had been created by Microsoft when it produced its own application.
However, the product was not as sophisticated as those produced by Microsoft. Since Microsoft is the master of software, Google offered to collaborate to benefit from its expertise. Microsoft resisted and later agreed due to market competition. Google created its competitive advantage by offering its application free while Microsoft required the organization to subscribe or pay to access the software.
Moyer (2011, p. 1) reveals that Google has engaged in the research and creation of new applications. The applications that are being developed will be free and will pose competition to its competitors. Their strategy will enable them increase the number of users.
Another strategy used is demonstrated by Google and Microsoft. Google enables its users to migrate its online storage to office applications. It developed software to move emails, files, data and calendar among others so as to win more users.
Although their customers can migrate, a large number of the users have been using Microsoft application. Microsoft’s competitive advantage is to upgrade the wireless devices and application to meet the needs of the customers.
The market trends shifting from desk work to online. Information and work is done and stored online. A large number of business people are moving their performing their tasks on their smart phone or mobile phones. With the use of mobile phones and other devices like tablets, the organizations have reduced tasks.
The information technology experts who spend a lot of time fixing the personal computers in the organization are no longer required. Thus, the collaborating companies have taken on the role of maintaining and creating new applications.
Whenever there is collaboration, new features are introduced. They are superior to products in the market, and are appropriate for specific tasks and target specific needs of the customer. Google applications have features that are absent in Microsoft 365. Google applications have been offered without a fee for subscription giving it a competitive advantage.
The collaboration has led to introduction of important software used in business. The charges for applications are less expensive when compared to desktop software. Google is less expensive than Microsoft. Microsoft has introduced a discount and introduced affordable retail cost. The discount has given it a competitive advantage.
In line with Jide (2011, p.1) Google collaboration with mobile phone manufactures has caused competitive advantage. The collaboration with Motorola has features for enhanced security and features that enable marketing which increases the prominence and sales increase. Customers are cooperative to appeal to use the integrated services from two companies.
According to Wenzel (2011, p. 1) most of the customers look for mobile devices with a bigger package. The customers ask for brands such as Microsoft or Google without doing any prior investigations. There are other customers who engage in intensive and extensive research and go for certain brands for specific wireless devices or application. Some may even prefer other unfamiliar brands.
In accordance with Blackboxmobile.com (2011, p. 2) applications designed by one organization can only be applicable in their brands. They are designed for enhancing security and making the product unique. Security in turn increases the number of users hence the brand becomes prominent.
The diverse companies complement each other and collaboration may be inevitable to abandon. Google is superior in search engines while Microsoft has dominated in the creation of software’s. People are likely to test products developed by companies they have known and trusted. This is why Microsoft claims a large number of users of applications.
Moyer (2011, p. 1) mentions that Apple has developed software for the smart phones and has been able to offer best features in iPhone. It competitive advantage is to offer free applications for users of i pad and iPhone. Moreover, they have also ensured that they have a wide variety of the applications.
Lossa (2010, p. 1) indicates that Google is keen to collaborate with the other entrepreneurs so as to remain afloat. Competition amongst the major players in the wireless industry has been expanded. The innovation increase competition and diversify the products.
Jide (2011, p. 1) points out that the wireless mobile and applications, have also been introduced in the medical field. The collaborations are many, and the boundaries between different organizations are becoming narrow.
The organizations manufacturing the wireless devices and applications focus on meeting the customers’ needs. Since technology is moving in a fast pace, the developers have collaborated to gain advantage. The software is improved from time to time, making new applications and software that targeting particular needs of the customer.
They make simpler to use applications while making them accessible or convenient to the users. Organizations engage in development of a wide variety of applications to increase the number of users. They give trials and offer frees software’s. Applications that are for purchase are sold at affordable prices (Hitt et al 2009, p. 12).
The integrations and collaborations between diverse organizations have increased. The collaborations are done with an aim of gaining and improving software so as gain more users.
There are changes that are happening constantly and require the organization to keep up with the competition by making more of what is needed. Thus, they must remain innovative and engage in progressive research to be able to make predictions of what is going to happen.
Barnes (2006, p. 1) states that the market is not limited. It is diverse and the wireless devices and applications can be used across the globe. The devices and applications are more prominent in the developed countries than the developed countries. Since the products can be utilized across the globe, the global economy of is interdependent. An organization can remain afloat by obtaining a unique product.
Kim et al (2006, p. 78) mentions that the wireless technology competition has evolved and become more convenient. More and better software’s and applications have emerged and have led to success in business.
Other areas like education have also benefited from the dynamic changes as information is shared widely. The students of information technology have a great challenge of keeping track of the changes in the globe and should be innovative.
Conclusion
The organizations involved in wireless devices and applications are sensitive to the environment within and outside the organization. They create strategies to keep track of the developments in technology to be able to make revenue. They make changes within the internal organization and with its shareholders to be able to make necessary changes.
Google, Apple and Microsoft have strategized to engage in research, collaborate and become innovative. They choose to become experts in certain products such as search engine, music and software. Their collaboration makes them have unique products that give them competitive advantage.
The products are simple and have a variety of features. The companies will remain top in the competition if they produce products that meet the needs of the clients.
Recommendations
Microsoft can maintain a steep competition by maintaining its customers and attracting others. Since it is known for mastering in software, it can maintain the customers by providing the wireless devices and application as required. Partnering with Google will enable it to keep the customers when search facilities are introduced. It can also consider improving every version and application it introduces according to demand.
It should note that customers are interested in affordable, accessible and easy to use wireless devices and applications. Moreover, it should consider making the products affordable. Just like Google it should consider creating an application for importing data, files, contacts and email from Google so that it can increase the number of users.
Google has achieved an increase in the number of users by introducing options that are friendly. It should keep focusing on a number of features that are ideal for specific tasks. It should also consider making many devices with advanced features. This can be achieved by collaborating with Microsoft.
Microsoft applications will be appropriate if used in a business organization. Microsoft applications are more formal and complimentary to the communication within an organization. Google is friendly and is sometimes considered less formal but appropriate within the business environment.
Moyer (2011, p. 1) says that the developers must perfect the applications on the wireless phones and the application. For an organization to remain outstanding, they should ensure that the collaborations they engage in are characterized by quality. The customers shun away from applications that lag, have poor graphics especially with devices that have large screens.
Reference List
Barnes, S. 2006. Wireless Applications in New Zealand business: A strategic management. Journal of computer information system.
Blackboxmobile. 2011. Mobile device management and security glossary. Web.
Hitt, M. A. Ireland, R. D. & Hoskinsson, R. E. 2009. Strategic Management: Competitiveness And Globalization: Concepts And Cases. Web.
Jide, C. 2011. ‘The Google phone could have Enterprise appeal’. Mobile Application Testing Times. Web.
Kim, S. H., Mims, C., & Holmes, K. P. 2006. ‘An introduction to current trends and benefits of mobile wireless technology use in higher education’. AACE Journal, 14, 1, 77-100.
Lossa, T. 2010. GM Woos Google: Collaboration Would compete with Ford/ Microsoft Sync. Web.
Moyer, E. 2011. Google looking for a few good mobile –apps developers. Web.
Nerney, C. 2011. Google tries to close mobile apps gap with Apple. Web.
Every product passes through various stages and through different organizations or departments before getting to a consumer. These departments or organizations form the supply chain. Supply chains have existed for ages, but the art of managing and controlling the entire process has improved since organizations focus on every stage in the manufacturing process.
The essence of supply chain management is being in charge of every stage in the manufacturing process. Radiofrequency identification aims at improving supply chain management. This essay seeks to define supply chain management, radiofrequency identification and explain advantages and disadvantages of radiofrequency identification in supply chain management.
Definition of Supply Chain Management and RadioFrequency Identification
Supply chain management refers to efficacious management and mastery of all materials used and information available in the planning process. Supply chain management aims at optimizing customer value and realization of sustainable competitive edge. It involves various activities like product design, acquisition of raw materials, planning, production, acquisition and dissemination of information and knowledge.
Radiofrequency identification refers to a technology that integrates the use of electromagnetic pairing through a radiofrequency and an electromagnetic sequence to locate an object, animal or a person. Radiofrequency identification systems have three parts: an aerial, control center and a transponder, which acts as a tag. The aerial utilizes radiofrequency currents to disseminate an indicator that starts the transponder.
On activation, the transponder sends information back to the aerial. The information relayed sends signals to a programmable controller for a response. The area covered by radiofrequency identification depends on the strength of a radiofrequency identification system.
Radiofrequency identification transponders serve various purposes. Business people attach merchandise transponders to products like clothes and electronics to deter theft in retail chain stores. On paying for such goods, those in charge deactivate transponders attached on such goods as a client checks out.
Inventory management transponders assist business people in locating goods conveniently. Aircraft luggage transponders make it easy to track and identify bags while tollbooth transponders in cellular phones allow drivers to go through a toll booth without stopping.
Drivers are able to make payments instantly. Lastly, animal transponders make it easy to locate pets and other animals, either domestically or for research purposes. Radiofrequency identification tags can be either long term in nature and usage or short term. For instance, tags used in retail stores are short-term while those used in toll stations are long-term. Radiofrequency identification has several advantages.
Advantages of RadioFrequency Identification
Radiofrequency identification is useful in alerting business people on out-of-stock goods. When a customer fails to get a product he intended to buy, such a customer opts for a product from competitors or fails to purchase a product altogether. According to a survey, businesses lose over 8.3 percent of revenue per year due to out-of-stock scenarios.
Radiofrequency identification system works to alert a department concerned whenever a customer picks a specific tagged product. As a result, those in charge stock such goods within the shortest time possible. Consequently, business avail goods required by customers all through.
Unlike barcodes, a radiofrequency identification system does not need line-of-sight to read transponders. As such, items do not need any unique positioning for scanning.
This feature assists in computerization of tasks in supply chain management that were previously labor-intensive. Such roles include scrutinizing and scanning incoming goods. In addition, organizations have a clear image of goods level and this translates to reduced inventory costs.
Radiofrequency identification systems play a pivotal role in automation of supply chain to high levels, which in turn leads to minimized labor in the supply chain process. Labor is usually a significant budget item for distribution departments and accounts for around 65 percent of total budgets.
Predictions show that radiofrequency identifications systems would reduce time utilized in receiving goods by around 76 percent, reduce labor costs incurred while picking orders by 36 percent and reduce verifications expenses for freight. For instance, before Collex adopted radiofrequency identification systems, drivers had to leave their trucks at landfills, manually key in their disposal details and then wait for a ticket.
In the same way, drivers had to wait for tickets when leaving the sites. This led to time-wasting, but currently, all a driver does is to hold radiofrequency identification transponder near the reader and receive a ticket in shortest time possible.
Radiofrequency identification systems are suitable for noting entities that need constant positioning and inspection. In addition, radiofrequency identification tags are not detectable on assets making it easy to use them and that way, track how an asset moves, its utilization, and location thus assisting in proper usage of an asset.
In maritime industry, radiofrequency identification assists shipping companies to track containers as they move around the globe. This way, such companies keep track of valuable goods and adhere to regulations by various governments regarding use of containers since radiofrequency identification sends out information on history of a container as well as chemical composition of goods in a container.
TrenStar, which produces beer kegs, adopted radiofrequency identification system that shows the movement of beer kegs in the supply chain. As such, the company gathers comprehensive data on the whereabouts of carts and communicates with retailers who have not sent empty beer kegs to the company.
Radiofrequency identification systems assist in product level tracking. This feature enables retailers to take stock at any given time and re-order goods that are out of stock. In addition, product level tracking minimizes theft incidences and promotes smart shelves. Smart shelves refer to shelves fitted with radiofrequency identification system that enable them monitor products automatically.
Smart shelves keep such useful data as date of manufacture and expiry date. Wal-Mart is among the few fully automated companies in product level tracking area and is now able to track all products from reception to check out of a good.
Radiofrequency identification systems, used along Electronic Product Code (EPC), assist manufacturers in the areas of warranties and mass recalling of products. Lack of proper details concerning warranties on goods issued and instances of mass recalls can lead to big losses for distribution companies.
Radiofrequency identification system and EPC enable manufacturers to recall specific products and not all products in a particular class of products. This way, manufacturers are able to keep a strong company image.
Concerning warranties, it becomes possible for companies to authenticate a warranty to ascertain that it has not expired. If a customer returns such an item, radiofrequency identification system monitors how the product moves and therefore, a company can inform a customer on the progress of repairs needed.
Radiofrequency identification systems grant companies the ability to check quality of goods both internally and throughout the manufacturing process, thus maintaining quality control of products as well as services.
Radiofrequency identification system allows gathering of real-time data in the manufacturing systems for quality control function, decreasing chances of a consumer encountering a defective product as well as decreasing time used in monitoring and reworking on products.
Currently, a pilot project under the U.S. army is testing the use of radiofrequency identification system transponders to monitor locations where they ship goods. Such transponders accompany food products sent to troops to make sure that utilization of food takes place before an expiry date.
Use of radio frequency identification systems leads to enhanced inventory management by assisting manufacturers get suitable goods to right retailers in good time.
Radiofrequency identification system achieves this function and lowers cost of handling goods. In addition, radiofrequency identification system transforms how manufacturers predict demand, manage stock and distribution. Radiofrequency identification system leads to lower inventory levels and increased sales.
It is hard to imitate radiofrequency identification system tags and this makes them appropriate for security programs, which deter theft of goods from the supply chain as well as goods in on transit in airlines or railway lines. Theft of goods while still in the supply chain or product shrinkage leads to massive losses by companies in the supply chain.
Radiofrequency identification systems, used alongside EPC network, enable manufacturers detect loss of goods in the process and take proper steps. In addition, radiofrequency identification system tags can minimize shoplifting incidences in retail stores. Rampant cases of loss of uniforms at Star City Casino prompted authorities to attach radio frequency identification system tags to uniforms to avoid theft.
Use of radiofrequency identification system assists organizations in making optimum use of available assets. Such assets form part of the company’s capital and records must be in place to prevent misuse of assets.
Unfortunately, workers store assets in various trucks making it difficult to monitor such assets. Radiofrequency identification system comes in handy and enables companies keep track of all assets without necessarily offloading assets from trucks for manual counting.
Unlike other tags, radiofrequency identification system tags are durable and can withstand any weather. Tags operate in all temperatures and do survive even after coming into contact with corrosive liquids like acids.
In addition, radiofrequency identification system tags find use in heavy machinery industries as they withstand every condition and more significantly, radiofrequency identification system tags usually last longer than objects of their use. Radiofrequency identification systems have their disadvantages too.
Disadvantages of RadioFrequency Identification Systems
It is costly to install radiofrequency identification systems because they require hardware, software, design and maintenance. Such costs apply both at the inception of using such systems and during the use of radiofrequency identification systems.
Being a relatively new technology, radiofrequency identification systems demand more research, redesigning based on user feedback, constant testing and marketing or these systems. Currently, a transponder goes for ten British pounds while system set up requires over fifteen British pounds. This is quite costly and risky, especially if competitors stick to barcodes.
With such costs, radiofrequency identification systems might prove risky for small businesses. Radiofrequency identification systems need a lot of time to install as well as time for operating them. They decrease capital budget and if not checked well, installation of radio frequency identification system can result in massive losses for any business venture.
Radiofrequency identification systems require more time for further research and implementation stages. It usually proves hard to calculate the return on investment expected from installation of radio frequency identification systems since they are relatively new in the market. In addition, being a new technology makes it hard for companies to budget on it.
Radiofrequency identification systems are quite intricate and vast. It is hard to replicate radio frequency identification systems because each installation is peculiar to a situation. For instance, an installation meant for goods on transit is different from an installation on retail store goods.
In addition, each business environment provides different factors for consideration and this demands changes or modifications to a radio frequency identification system.
Testing stages in radiofrequency identification system installations are unpredictable and hard to plan for in a budget and this leads to more complications. Use of radio frequency identification systems failed to find its way into small businesses many years after inception. This arises from lack of enough case studies to establish standard operating procedures for radio frequency identification systems.
Concerning adoption and transformation, radio frequency identification systems demand training users on ways of optimizing systems. Adoption of radio frequency identification systems further demands physical tagging of all goods as well as recording such goods.
Employees need to tag objects using both hardware and software, take care of gadgets and keep a workstation in order. Such exercise exerts pressure on staff members and leads to low production before staff members adapt to new system.
There is no universal understanding of principles of radio frequency identification systems. Each country has its own regulations and standards for radio frequency identification system and enforcement concerning interference with the system is currently unavailable.
Knowledge on radio frequency identification systems remains a preserve of manufacturers as educational hubs and government programs do not support such ideas anymore.
Radiofrequency identification systems are susceptible to disruption. Since radio frequency identification systems utilize electromagnetic strips, they can easily jam and thus lead to distress, especially if they are in use in areas like hospitals, military installations, among others. Transponders that utilize dry cells are likely to wear such cells down, leading to a disruption in the system.
Radiofrequency identification systems usually encounter reader collisions. This happens when warnings from two or more readers mix up and prevent a transponder from responding.
Some radiofrequency identification system tags prove difficult to remove from items such as clothing since the transponders are at times too small. On the same line, someone with a reader is able to gather information from an innocent customer.
Conclusion
Supply chain management aims at controlling and managing all aspects that make up the supply chain process. It involves various activities like acquisition of raw materials, planning and designing of products. It involves various organizations that link up using physical communication. To improve supply chain management, organizations adopt technologies such as radio frequency identification systems.
Radiofrequency identification systems assist an organization in various ways that lead to reduction in operational costs. Radiofrequency identification systems have several advantages and disadvantages.
Advantages include easy management of inventory, prevention of theft cases, minimizing of out-of-stock occurrences, monitoring of products while on freight as well as monitoring of chemical compositions to keep them on the level recommended by authorities.
Disadvantages include complexity of radio frequency identification systems, high cost of installation, lack of universal standards and incidences of collision between two radio frequency identification systems.
Reference List
Buzzle 2011, Advantages and Disadvantages of RFID Technology. Web.
Electronic Cash News 2013, Benefits of RFID for Supply Chain and Logistics Operations. Web.
Over the past two decades, there has been a rise in the number of issues facing firms in different economic sectors. According to Gitman and McDaniel (2008, p.34), changes in the external and internal business environments affect the ability of businesses to achieve their objectives.
Human resource managers face diverse challenges in an effort to deal with changes emanating from the external business environments. This arises from the fact that they do not have control over external business environment. However, human resource managers can be able to control issues emanating from the internal business environment.
Firms’ management teams attain this through formulation and implementation of effective human resource management practices. Some of the human resource management practices that organizations implement relate to development of an environment conducive for working.
There are numerous ways through which an organization can attain this. One of these ways entails ensuring fair compensation to the employees. According to Durai (n.d, p.538), organizations must avoid any form unfair labor practices.
Examples of such practices include unfair dismissals of labor union members and unfair employees’ disciplinary actions. Additionally, organizations management teams should not also undermine the employees’ collective bargaining rights.
There has been an increment in the number of labor disputes that organizations experience over the past few decades. Considering the fact that human capital is one of the most important organizational assets, it is paramount for management teams to ensure that disputes are effectively resolved. One of the ways through which organizations can achieve this is through negotiation.
Spoelstra and Pienaar (1999, p.3) define negotiation as the process through which different parties interact with the objective of reaching an agreement or resolving a conflict. Lewicki, Saunders and Minton (1999), assert that there are different strategies that organizations can use to resolve conflicts. Lewicki, Saunders and Minton (1999) further assert that conflicts within can be beneficial if they are resolved effectively.
Spoelstra and Pienaar (1999, p.3) assert that negotiation entails exchange of information. There are four main characteristics of negotiation. These include a common interest, conflicting interest, compromise and a common standard for the agreement to hold.
In an effort to develop a comprehensive understanding of the concept of negotiation as a human resource management strategy, the researcher considered evaluating the concept with regard to its application by Verizon Wireless.
Current issue at Verizon Wireless Company
Verizon Wireless is one of the largest telecommunication companies in the United States. The firm is the leader in provision of wireless services. Currently, Verizon Wireless is facing a labor dispute. Approximately 45,000 of the firm’s employees who work at the firm’s wire lines division who are represented by the union are considering striking.
Some of the unions that represent the firm’s employees include International Brotherhood Electrical Workers (IBEW) and Communications Workers of America (CWA). One of the issues that these unions are advocating for relate to an increment in the hourly wages. Additionally, the unions are also advocating for the betterment of Verizon Wireless employee’s pension and health care benefits.
Over the past few years, Verizon Wireless has experienced a significant growth in its performance with regard to profitability. For example, over the past four years, Verizon Wireless profit has increased to $19.1 billion. As a result, the firm has continuously increased the financial benefits received by the firm’s top executives in terms of annual salary increments and bonuses.
Employees within the lower employment levels in Verizon Wireless are not treated the same with the top level employees despite the fact that the fact that they are the ones who undertake most of the operational tasks that contributes to the firm’s profitability. Durai (n.d, p. 538) asserts that organizations should ensure that the unionized employees receive fair salaries and wage increment and other career development opportunities.
However, Verizon Wireless remuneration to lower level employees has not been fair. Additionally, Verizon Wireless fires employees unfairly (Campbell, 2011, para. 5). For example, Verizon Wireless fires employees who join the workers union. The firm also conducts captive audience meetings in an effort to discourage employees from joining the employees union.
In an effort to diminish the powers of the employees unions, Verizon Wireless is considering influencing employees who are not union members to remain un-unionized. To achieve this, Verizon Wireless is discouraging its employees from signing Union Cards.
According to Durai (n.d, p.538), organization management teams should not engage in unfair staffing process in an effort to discourage its employees from becoming members of the employees union.
Additionally, organization’s management teams should also avoid preventing its employees from forming an employee union unfairly. However, in the case of Verizon Wireless Company, it is the firm’s objective to destroy the union. The poor payment to the firm’s employees has made their living standards to deteriorate. This indicates a high level of unfair treatment to the employees.
Negotiation processes
Kochan and Lipsky (2003, p.15) asserts that the process of negotiation is made up of four main sub-processes which include distributive bargaining, integrative bargaining, intra-organizational bargaining and attitudinal structuring.
Distributive bargaining tactic
According to Kochan and Lipsky (2003, p.15), distributive bargaining entails a negotiation strategy whereby the parties involved are in a conflict. The initial stage of the negotiation process is characterized by a gap between the conflicting parties.
Kochan and Lipsky (2003, p.16) further assert that the bargainers have a particular target and resistance point in their mind. These points affect their offers and counteroffers. The target point represents the most-favorable goal for each stakeholder. On the other hand, the resistant point depicts the least desirable outcome.
According to Lewicki, Saunders and Minton (1999), distributive bargaining as a negotiation process is most appropriate when one of the negotiators’ interests is expressly opposed. During the bargaining process, the parties involved struggle to establish a compromise. According to Kochan and Lipsky (2003, p.16), existence of a huge gap between the two points leads into an impasse.
This impasse is likely to be manifested by a strike during the negotiations. For example, in the case of Verizon Wireless, the strike by the firm’s employees is an indication of an existing gap between the employees’ labor demands and the firm’s top executive desire.
During the negotiations, the union representatives pulled out of the negotiations since the firm’s management team was not willing to give the employees their desires despite making it known to the management team.
According to the union representatives, the firm’s management took a hard-line position hence limiting the effectiveness of the bargaining process. The union representatives further said that the Verizon Wireless was willing to disregard the collective bargaining process which had been established within the firm for over fifty years.
In such a situation, the union members should consider integrating distributive bargaining. According to the firm’s management team, Verizon Wireless have established a contingency plan whose objective is to ensure minimal disruption in the firm’s operation by the strike.
The plan entails training a sufficient number of retirees and management employees who will take the positions of the union workers who go on strike. This indicates a high level of disregard of the employee’s rights.
Instead of developing a contingency plan, Verizon Wireless and the unions’ representatives should emphasize on developing a positive contract zone. According to Kochan and Lipsky (2003, p.16), establishment of a positive contract zone increases the probability of the parties reaching an agreement. Additionally, there is an increment in the level of motivation with regard to negotiation amongst the parties involved.
By establishing a continuing interdependent relationship between Verizon Wireless management team and the union representatives, there is a high probability that no employee strike would occur. This means that both the employees and firm would not be adversely affected since they are dependent on each other.
Integrative bargaining
This negotiation strategy is also referred to as cooperative negotiation. The process entails negotiating with the objective of achieving a mutual gain. According to Guasco and Robinson (2007, p.66), it is the objective of the parties involved to create a value that will be shared by the two negotiating parties. Integrative bargaining is only successful if the negotiating parties avoid exploitation during the initial stages of the negotiation.
Additionally, the negotiators must accept an anti-competitive premise. One of the ways through which the negotiators can achieve this if they are negotiating for establishment of a shared gain is by developing a mutually satisfying deal. This is referred to as the win-win negotiation (Guasco & Robinson, 2007, p.66).
Integrative negotiation is aimed at developing a situation whereby both negotiators attain what they need. For cooperative negotiation to be successful, a high degree of patience is required. Kochan and Lipsky (2003, p.18) assert that in the event of a mixed-motive situation, the negotiations must identify a trade-off that will contribute towards ensuring that the both parties are better off.
In the case of Verizon Wireless, the employees were motivated to strike because of unfair treatment by the management team in a number of ways. For example, the lower level employees were poorly remunerated while the top level managers were highly remunerated.
Additionally, in their negotiation with the firm’s management teams, the union representatives are also pressuring Verizon Wireless to increase their employees’ pension and health care benefits.
However, Verizon Wireless is not willing to compromise on its reserved profits by increasing the employees’ financial benefits. This is despite the fact that it is the lower level employees who have worked hard to ensure that the firm remains profitable. Verizon Wireless management team should strive to ensure that the lower level employees also benefit from their hard work.
Intra-organizational bargaining
The objective of this strategy is to resolve internal conflicts such as the labor disputes within Verizon Wireless Company. It is aimed at establishing consensus between the employees and the management teams. Kochan and Lipsky (2003, p.18) appreciate the fact that most negotiators do not act in their own individual capacity. However, they act as representatives of a particular group of individuals.
Within organizations, the union representatives are the ones who are mostly involved in the negotiation process. For example, in the case of Verizon Wireless, the employees are interests are advocated by unions which include CWA and IBEW. The representatives have an obligation to report to their constituents.
Due to existence of a large number of individuals, there is a high probability of conflict of interest as a result of diversity in their views. Therefore, there is a high probability of differences amongst the union members.
Prior to the representative engaging in the negotiations, the union should reconcile internally with the members of the group so as to eliminate any differences. This means that there has to be an intra-organizational bargaining which entails undertaking negotiation within the particular teams. The resultant effect is that there is a high probability of the negotiations succeeding.
Attitudinal restructuring
Organization’s management teams should not only emphasize on distributive and integrative bargaining, however, they should also consider attitudinal restructuring in their negotiation process. According to Lewicki, Saunders and Barry (2010), the negotiators perception of each other affects the outcome of the bargaining process.
The negotiators should develop strategies on how to positively influence each parties approach in an effort to attain their needs. The resultant effect is achievement of a mutual benefit. Attitudinal restructuring in negotiation entails developing trust between the parties. Lewicki, Saunders and Minton (1999), assert that development of trust aid in effective conduction of integrative negotiation.
According to Kochan and Lipsky (2003, p.18), the negotiation process may result into development or a decline in the level of trust between the parties depending on the treatment received.
The union members have developed a negative attitude towards Verizon Wireless. This is due to the unfair treatment that the firm subjects to its employees. This may have adverse effects on future relationship between the firm and its employees.
Context of negotiation
There are a wide range of contexts which compose the negotiation process. One of these contexts relate to relationships. Lewicki, Saunders and Barry (2010) assert that the relationship between the negotiators affect the outcome of the negotiation.
During internal conflicts, the parties involved must assess the effect of negotiation on the future relationship established. In order to manage negotiations, human resource managers promote positive emotions amongst the parties. Organizations should also ensure that they address the issues they are facing with justice and fairness.
The negotiation process is also composed of an audience. The audience may be composed of different parties such the team or the group members. According to Lewicki, Saunders and Barry (2010), the audience in the negotiation puts more pressure to the negotiators to be more tough and unyielding.
As a result, the negotiators usually advocate their audience’s position (Asherman & Asherman, 2001, p.207). In the case of Verizon Wireless, the union representatives have an obligation to advocate for the needs of the firm’s employees.
According to Asherman and Asherman (2001, p.207), there are two main rules that guide negotiators when there is an audience involved. The first rule relates to flexibility whereby the negotiators make proposals and compromises that may seem undesirable to the audience initially.
On the other hand, a win-lose negotiation compels the negotiators to adhere to the audiences’ position which means that they should not concede so easily.
In an effort to fight for their rights, Verizon Wireless employees are using CWA and IBEW to negotiate with the management. Additionally, the employees should also consider incorporating agents in their negotiation process. The agent is required to act in accordance with the needs of the audience. In the event that the agent makes a concession that is not desirable, the principal can withdraw.
Asherman and Asherman (2001, p.207) asserts that using agents in the negotiation process can be advantageous since they are not intensely involved psychologically in the negotiation. In addition, the probability of emotions interfering with the negotiation process is limited since the agents do not have their ego at stake.
On the other hand, multiparty negotiation, entails a large number of parties whereby each party is either concerned with achieving their own ends or a group consensus. Multiparty negotiations are also characterized by formation of coalitions.
The coalitions contribute towards the strengthening of the weaker parties thus enabling them to push for their needs and to block any unacceptable decisions (Harvard Business School Press, 2005, p.59). According to Lewicki, Saunders and Barry (2010), assert that coalitions may be dissolved during the negotiation process.
There are two main forms of coalitions in multiparty negotiation. These include natural coalition and a single-issue coalition. Natural coalition is characterized by one or more allies who have a wide range of universal interests.
For example, in negotiating for their rights, Verizon Wireless employees are represented by two parties which include IBEW and CWA. The objective of the two labor unions is to fight for the employees rights within the telecommunication industry. On the other hand, a single-issue coalition is composed of two of more parties whose interests differ but unite on others.
Negotiation and culture
Culture has a significant effect on the outcome of the negotiation process. According to Brett (2007, p.280), cultural differences exist in the negotiation process. This is due to the fact that the principals and the representatives have different priorities, interests and positions.
These positions are influenced by different factors which emanate from social, economic, and political contexts. Additionally, the negotiators have diverse motives which include individualistic, competitive and cooperative motives.
The parties involved in the negotiation process in the case of Verizon Wireless should have a comprehensive understanding of the existing cultural differences. This will play a vital role in ensuring that the negotiation is successful. For example, in a collectivist culture, negotiators tend to avoid any form of direct conflict or its manifestation.
For example, when Japanese is negotiating with an American and he or she is not comfortable with proposal; the Japanese may say that he will look further into the issue. This may be a tactic of saying no which the American does not understand (Trevino & Nelson, 2011, p. 406).On raising the issue later, the Japanese may be direct and say no.
This may make the American to perceive the negotiation process as being unfair. When resolving conflicts, understanding the culture is also critical since it aids in determining the most effective conflict resolution strategy to use. For example, some cultures prefer mediation as the best method of conflict resolution.
Negotiation and gender
Numerous studies have been conducted to establish the relationship between gender and negotiation. These studies were aimed at establishing whether various demographic characteristics such as age and race affect the outcome of the negotiation process.
This is due to the fact that negotiation is an interpersonal process. According to Moffitt and Bordone (2005, p.136), gender as an individual attribute plays a vital role in the negotiation process.
Moffitt and Bordone (2005, p.136) assert that women are more sensitive and tend to nurture a long term relationship. Therefore, women involved in a negotiation process are more likely to consider the negotiation process as a long term relationship. As a result, they are likely to be more concerned with ensuring that the process is fair.
On the other hand, men are more individualistic. In addition, they regard the negotiation process to be a one time event which does not have any direct consequences with regard to future interactions. Moffitt and Bordone (2005, p.137) are of the opinion that women are less aggressive in that they do not feel that they are entitled to receive the same salary as their male counterparts.
Findings by researchers reveal that women are likely to accept relatively low salaries. They also feel less confident in the negotiation process. On the other hand, men are more offensive which makes them to succeed in the negotiation process.
However, when women are negotiating for others as agents, they tend t o be more effective compared to when they are negotiating for their own demands. In order to reach a consensus with Verizon Wireless management team, the labor union should ensure that both genders are considered in the selection of negotiators.
Individual differences; personality and abilities
According to Griffin and Moorhead (2009, p. 395), personality traits such as authoritarianism, self-esteem, Machiavellianism, tolerance to ambiguity, risk taking, and locus on control affect the negotiation process. Griffin and Moorhead (2009, p.395) assert that the two parties involved in a dispute should ensure that they select the right negotiators.
The success of Verizon Wireless employees in negotiating for their rights is dependent on the effectiveness of selecting negotiators from the union to represent the members. Griffin and Moorhead (2009, p.395) asserts that the selection of a negotiator with the right personality is critical factor in the negotiation process. This arises from the fact that the negotiation process is both personal and interactive.
Managing negotiation difficulties
According to Lewicki, Saunders and Barry (2010), there is a high probability of negotiations failing due to different reasons. In the case of Verizon Wireless, the negotiations stalled as a result of the firm’s management team failure to change its initial proposal regarding the employees’ demands to have a fair employment contract.
This motivated the firm’s employees to resort to strike as an alternative to address their concerns. Lewicki, Saunders and Barry (2010) assert that integrative bargaining may fail in the event of the negotiators failing to establish a mutually beneficial option.
Additionally, negotiations may also fail if one of the parties to the conflict has adopted an integrative negotiation strategy while the other party has adopted a distributive strategy.
Failed negotiations can result into the parties involved incurring significant cost. In order for the negotiation process to be successful, the parties must develop effective strategies aimed at ensuring that an impasse does not occur.
One of the ways through which they can achieve this is by ensuring that there is effective communication amongst the negotiators. In the case of Verizon Wireless, it is important for the firm’s management team and the union representatives to ensure that there is effective communication between the parties.
The strike by Verizon Wireless employees may affect the firm’s profitability. As a result, it is vital for the firm’s management team to incorporate enticing offers. In addition, the negotiators should strive towards developing a common ground. To manage negotiation difficulties, the parties involved must undertake effective preparations prior to the negotiation.
Conclusion
The analysis illustrates the importance of negotiations in resolving conflicts within organizations. In its operation, Verizon Wireless Company is experiencing an internal conflict between its employees and the management team.
The current dispute between the management team of Verizon Wireless and its employees relates to labor issues. The employees union is advocating for better employment terms which the management team is not willing to offer.
In order to resolve this labor dispute through negotiation, there are different negotiation processes that negotiators can adopt. However, the choice of the negotiation process to adopt is dependent on the existing situation. Some of the negotiation processes to consider include distributive bargaining, integrative bargaining, intra-organizational bargaining and attitudinal restructuring.
Additionally, the research also evaluates the diverse contexts which compose the negotiation process. These contexts include the various relationships in the negotiation, agents, audiences, coalitions, and constituents. Additionally, the negotiation process may be composed of multiple parties.
During the negotiation process, the negotiators must also have a comprehensive understanding of the existing cultural differences. Other factors that the negotiators must consider relate to gender, individual differences and abilities. This is due to the fact that these factors influence the outcome of the negotiation.
The research has also appreciated the fact that there are a number of difficulties that can affect the success of the negotiation process. Therefore, to ensure that negotiations do not fail, effective strategies should be implemented. Some of these strategies relate to ensuring effective communication, establishing a common ground and effective planning.
Reference List
Asherman, I. & Asherman, S. (2001). The negotiation sourcebook. Amherst, Mass: HRD Press.
Brett, J. (2007). Negotiation globally; how to negotiate deals, resolve disputes and made decisions across cultural boundaries. San Francisco: Jossey Bass.
Campbell, T. (2011). CWA/ IBEW Verizon strike is more than just a labor dispute; unions draw a line in the sand; make stand for all working people. Web.
Durai, E. (n.d). Human resource management. Sydney: Pearson Education India.
Gitman, L. & McDaniel, C. (2008). Future of business; the essentials. New York: Cengage.
Griffin, R. & Moorhead, G. (2009). Organizational behavior; managing people and organisations. Oxford: Oxford University Press.
Guasco, M. & Robinson, P. (2007). Principles of negotiation; strategies, tactics, techniques to reach agreements. New York: Entrepreneurship.
Harvard Business Press. (2005). The essentials of negotiation. Boston: Harvard Busines School Press.
Kochan, T. & Lipsky, D. (2003). Negotiations and change; from the workplace to society. Ithaca, NY: ILR Press.
Lewicki, R., Saunders, D. & Barry, B. (2010). Negotiation. Ohio: Ohio State University.
Lewicki, R., Saunders, D. & Minton, J. (1999). Negotiation. Boston: Irwin McGraw- Hill.
Moffitt, M. & Bordone, R. (2005). Handbook of dispute resolution. San Francisco: Jossey Bass.
Spoelstra, H. & Pienaar, D. (1999). Negotiation; theories, strategies and skills. Kenwyn: Juta.
Trevino, L. & Nelson, K. (2011). Managing business ethics; straight talk about how to do it right. New York: John Wiley.
This project schedule defines a plan for an online radio project execution. Skyline online radio is a web based radio that is intended to facilitate an online forum for colleges on the eastern coast in United Arab Emirates. Schedules form a vital component for any project because they show the project team, project stakeholders and sponsor on the progress state of the project at a definite time.
The rationale for a schedule management plan identifies the method the project team uses to create the project schedule. The schedule management plan also consists of ways the team use to monitor, and manage the project schedule including changes made once the schedule’s baseline has been accepted. This involves the identification, analysis, and documentation of schedule-related changes.
Schedule Management Approach
The Skyline online radio project schedule will be created using Microsoft Project 20XX or a similar project schedule management software tool. The process starts by identifying the deliverable that includes website development and setup, e-mail accounts, website logo, and domain name registration which are identified in the work break down structure (WBS) of the Skyline online radio project. Activity definition covers the particular work packages that must be carried out to attain each project deliverable1.
The work package sequence will be determined using the activity sequencing tools like the network diagram tool. An assignment of relationships between the project activities can then be determined. Estimates for activity duration are used to determine the work periods included within the work packages. A resource estimation process can be for allocating the project resources to their respective work packages and thereby complete the schedule development.
Schedule Control
After completing the preparation of the preliminary schedule, its review will be carried out by the project team. This is to tentatively identify any resources allocated to respective project tasks. Skyline online radio project team should approve the proposed assignments, duration and schedule to each work package.
The following are considered typical milestones for this online radio project schedule:
Develop the project’s scope statement
The sponsor’s approval of the project’s schedule
The sponsor’s approval of the project’s budget
The project manager will define the project roles and responsibilities.
Approving the project’s requirements prior to kick-off
Defining the project’s data requirements.
Schedule development roles and responsibilities:
Fatima Mohamed as the project manager arranges to have the project work package defined. This package will be sequenced, and an estimated duration determined.2
This package will be sequenced, and an estimated duration determined. The project manager is also responsible for creating a timetable using project schedule management software such as Microsoft project 20XX and validates the project timetable with the team, sponsors, and stakeholders. The project manager will proceed to obtain the schedule’s approval by the project sponsor. Upon approval, the project manager can then baseline the schedule.
The project team consisting of Amira Al Mansouri, Maryam Salem, Kholoud, and Zainab Barman will participate in defining the project’s work package, arranging the work package activities, and estimating the work package duration and resource needed. The project team will also review and approve the proposed project schedule, and carry out any allocated activities after the project timetable is approved.
The Skyline online radio project sponsor can participate in proposed schedule reviews and endorse the final schedule to be baselined. The Skyline online radio project stakeholders can participate in reviews and validation of the planned timetable.
Schedule Changes and Thresholds
The Skyline online radio project schedule can be updated after reviewing as often as required which maybe twice a week with real project start, finish, and completion indicators that will be submitted by different task owners.
The project manager will facilitate the bi-weekly schedule reviews and updates. This will determine effects of the project schedule variances. The project manager also submits project schedule change requests, and reports the project schedule status according to the communication plan.
The Skyline online radio project team will participate in bi-weekly project schedule updates and reviews. The team should also communicate and ensure the implemented changes to the definite start and finish dates.
The effect of the change to the project schedule must also be determined. On completion of this evaluation, the project manager decides whether the change will surpass the project boundary conditions. Assuming that such is the case, a project schedule change request is presented. The proposed change is likely to reduce by 0.01 or more the work package duration.Alternatively an increase by 0.01 or more to all work package durations may be necessary3. All requested change that falls below these thresholds will be evaluated and approved by the project manager. The project manager will then implement any change that has been reviewed and approved.
Project schedule (Gantt chart using Microsoft Project/XL)
The Gantt chart is a project schedule management tool that shows the various work package tasks, their relationship, and the overall project duration. The Gantt chart also shows the sequence of the activities in each project work package.
(See appendix for the Gantt chart for the Skyline online radio project)
Bibliography
Duncan, WR, A guide to the project management body of knowledge, Project Management Institute, Sylva, North Carolina, 1996.
Schwalbe, K, Information technology project management, Course Technology-Cengage, Boston, 2010.
Appendix: skyline online radio project gantt chart
Footnotes
1 WR Duncan, A guide to the project management body of knowledge, Project Management Institute, Sylva, North Carolina, 1996, p. 69.
2 K Schwalbe, Information technology project management, Course Technology-Cengage, Boston, 2010, p.11.
BBC Radio Leeds is one of the 39 local radio stations of BBC (BBC Trust 2015a, para. 2). Despite the name, the station started serving the entire West Yorkshire very soon after its launch in 1968 (BBC Bradford and West Yorkshire 2009, para. 1-3). Its aim consists in providing the listeners with the information concerning “the five districts of Leeds, Bradford, Wakefield, Kirklees and Calderdale” (BBC Bradford and West Yorkshire 2009, para. 1). The second aim, which is as important as the first one, is to broadcast the “voice” of West Yorkshire, to give its people the opportunity to tell their stories (BBC Bradford and West Yorkshire 2009).
Funding
BBC Radio Leeds as any other BBC local Radio operates “appropriate standard budgetary control procedures” (BBC Trust 2012, p. 44). Its expenditure is controlled by the Trust that seeks to increase the budget of the local stations.
The licence fee for Radio is £2.30 per month per household; this fee is set by the government (BBC 2015d, para. 3). BBC is proud of providing quality service for the money, and in order to do it, the six public purposes of BBC have been introduced by the Trust (BBC 2015c).
BBC Trust Radio Policy
BBC Trust is “the sovereign body within the BBC” that licenses all the BBC radio stations, performs the review of their content and quality, and considers the proposals for innovation (BBC Trust 2015c, par. 1; BBC Trust 2015a; BBC Trust 2015b).
Public Purposes
The public purposes as suggested by the Trust include “sustaining citizenship and civil society, “promoting education and learning”, “stimulating creativity and cultural excellence”, “representing UK, its nations, regions, and communities”, “bringing the UK to the world and the world to the UK”, “delivering to the public the benefit of emerging communications technologies and services” (BBC 2015e, para. 2-7).
Main Ideas
According to BBC Trust (2015b), the key priorities of the radio include the improvement of the quality and diversity of content, and most of the efforts are directed at the achievement of these aims, both for paid and public services, which appears to summarise the Purposes. The Purposes demonstrate the fact that BBC acknowledges the importance of public media in the modern society and takes the responsibility for its actions; apart from that, BBC appears to be ready to perform every function that a mass media tool can fulfil.
Supposed Outcomes
The Purposes should be regarded as the guidelines for actions that require continuous improvement of BBC service. To achieve the Public Purposes, BBC provides the listeners with accurate and inspiring information about the UK and the world (BBC 2015e, para. 2-7). Another important aspect of the Trust’s radio strategy is its intention of encouraging its listeners to switch to digital radio, which is in consistency with government’s ambitions in this respect (Goddard 2010, para. 3-6). The BBC Trust (2015b) monitors the implementation of the Purposes by every BBC service.
BBC Radio Leeds and the Public Purposes
Being certified by the Trust, BBC Radio Leeds is expected to act in consistency with the Public Purposes. This involves all the actions mentioned above; by introducing the world to the Yorkshire and Yorkshire to the world, BBC Radio Leeds is fulfilling its part of the BBC Purposes (BBC 2015b).
An Opinion
In my opinion, even though the majority of the programmes of the station are aimed at the audience of the Yorkshire, those of them that are not devoted to the local news can be of interest for listeners all around the world. An example of such a programme is the One on One by Martin Kelner that includes conversations with people of various occupations. These discussions are very entertaining and occasionally even inspiring and educational which means that they are created in consistency with the aims and the Purposes. The episodes of this programme are available at the website BBC Radio Leeds (2015), where they are stored for 30 days for anyone to listen.
Mix of Programs
The BBC Radio Leeds offers “local news, traffic, travel and weather information” as well as “conversation, debate, music and entertainment” programmes (BBC 2015a, para. 1). The music programmes include “Yorkshire Brass, The Durbervilles folk and roots Show and BBC Introducing in West Yorkshire “; the sport ones are concerned with local teams in rugby, football, and cricket; the presenters that are “synonymous” with the station are “Harry Gration, Peter Levy and Alvin Blossom” (BBC 2015a, para. 3-6). The programmes can be found in the archive and podcast section; they are usually available for 30 days on the station’s website.
Strengths and Weaknesses
A major strength of BBC Radio Leeds is its experience: soon the station will be celebrating its fiftieth anniversary (BBC Bradford and West Yorkshire 2009, para. 1). This also means that the brand of the station is quite distinguished and popular; it must have been able to hold the listeners’ attention for so long.
The weaknesses of BBC Radio Leeds are not obvious unless one takes into account the threats that the station has to face. Being a local station, BBC Radio Leeds is limited in terms of listeners, sources and even themes. Still, this is not exactly a weakness but rather the condition of the station operation. The major threat is the existence of other radio stations that are capable of providing the information concerning the world outside Yorkshire (BBC Trust 2012). This factor serves to limit the audience of the station even further; at the same time, it cannot be denied that, for West Yorkshire BBC, Radio Leeds is a significant asset and the chance of making the world hear the “voice” of the region.
Information from the Wireless Cafe from their web site
Kind of food featured by the Wireless Café
According to the company website, the Wireless Café serves the ritzy food of three major types: starters, main dishes, and desserts (“Shanghai Wireless Cafe” par. 2). The café’s sophisticated starters include chili prawns and steamed crabs and Jicama Spring rolls; nutritious main dishes include different dishes of meat and vegetables; and tempting desserts include sorbets, puddings, and cooked fruits (“Shanghai Wireless Cafe” par. 3).
The attractions of the Wireless Cafe
The attractions of the Wireless Café are free of charge wireless Internet access and system of instant messaging between the visitors allowing the creation of the visitors’ community.
The organizational structure of the Wireless Cafe
The organizational structure of the Wireless Café consists of:
owners Jade Leung and Jimmy Kwok;
manager Lucy Zhao;
Chef William Feng;
sous Chefs Tommy Ho and James Ten;
kitchen staff managed by Lin Moo;
wait staff headed by Ruth Schwartz;
stewards supervised by Lee McGavin and supported by the tea sommelier Kevin Burns;
tech support with the network manager Chao Zhang and technician Harry Vindar (“Shanghai Wireless Cafe” par. 11).
The head chef
The head chef is William Feng, famous for being the prominent figure in Shanghai fine dining industry (“Shanghai Wireless Cafe” par. 4).
Recognition received by the Wireless Cafe
The Wireless Café was recognized as the leader in the area of innovation among modern restaurants worldwide. It has received the following awards to confirm its weighty status in the fine dining industry arena: Shanghai “Golden Chopsticks” for the best Chinese fusion cuisine and Shanghai Reader’s Survey Restaurant Awards for best wireless connectivity (“Shanghai Wireless Cafe” par. 5).
The current job openings at the Wireless Cafe
The current job openings at the Wireless Café are
wireless technician;
assistant chef;
events manager.
Contacts of the Wireless Cafe
One can contact the Wireless Café through the contacts placed on their website.
The Wireless Café’s intranet
The Wireless Café’s intranet employs the system of instant messaging.
Evidence that the Wireless Café is a digital enterprise
The website provides the evidence proving that the main focus of the enterprise is providing free high-quality Internet connection to the visitors.
Market and societal pressures unique to the hospitality industry
The market pressures unique to the hospitality industry, in general, are the unstable demand rates and severe competition (Prud’homme and Raymond 76). The societal pressures are the necessity to monitor customer needs constantly and keep on finding new solutions to meet customer expectations and support a high quality of the offered services such as customer service, food hygiene, and cutting edge techniques utilized (Bowie and Buttle 25). The evaluation of the Wireless Café situation suggests the conclusion that the enterprise has the same challenges.
The Wireless Café’s business operations
The technologies and impact on business operations
Current technologies that have been discovered during the research are The Internet of Things and wireless charging. The first technology has a huge impact on today’s users because it allows communication between human and multiple technologic tools. This pleasant convenience exceeds the person’s user comfort levels (Jones, Hillier, and Comfort 1001). Wireless charging also has a significant impact on users by allowing their long hours spent outdoors with their Internet-surfing gadgets without any additional discomfort (Jones, Hillier, and Comfort 1001).
The way these technologies transform the Wireless Café business
These technologies would increase the Wireless Café profits because customers will be encouraged to stay long hours on the premise and therefore, order more products from the enterprise (Brotherton 36).
Recommendations how to use the technologies at the Wireless Café
I would recommend using the technologies described above because they will attract even more customers and increase the company gross profits (Chang and Ma 1).
Porter’s model
Potential competitors
Potential competitors of the Wireless Café are the cafes and restaurants along with the Internet clubs and coworking centers located on the Bund and the surroundings.
Competitors’ services
They sell food and offer free or commercially-based Internet connection and space for customer activity.
Competitive advantage in the Wireless Café’s marketplace
Based on the findings made by Jones, Hillier, and Comfort, the threat of substitutes increasing competitor rivalry has the highest influence upon competitive advantage in the Wireless Café’s marketplace because the market frequently becomes affected by the impact of the new solution (1001).
The dominant competitive strategy in the Wireless Café’s marketplace
A Combination of the best gastronomic products with the free Internet connection appears to be the dominant competitive strategy that exists in the Wireless Café’s marketplace.
Enhancing the Wireless Café’s visibility with customers
Based on my knowledge and experiences with social networking technologies and systems, these could dramatically enhance the Wireless Café’s visibility with both current and potential customers. According to Jones, Hillier, and Comfort (1001), Facebook is the leading marketing tool for online commerce and there is no other solution of similar effectiveness enabling addressing potential customers with powerful advertising instruments.
Suggestions
The suggestion to implement social networks for attracting more customers to the Wireless Café would increase the company profits by helping to find new clients and increase the present customers’ loyalty. Also, with the help of this solution, the company can significantly reduce its operational costs on advertising on other platforms because Facebook and other social networks such as Instagram are currently the advertizing resources with the top rate back-blow (Jones, Hillier, and Comfort 1001).
Works Cited
Bowie, David, and Francis Buttle. Hospitality Marketing, New York: Taylor & Francis, 2013. Print.
Brotherton, Bob. International Hospitality Industry, London: Routledge, 2012. Print.
Chang, Hsiao-Ping, and Chun-Chieh Ma. “Managing the service brand value of the hotel industry in an emerging market.” International Journal of Hospitality Management 47 (2015): 1-13. Print.
Jones, Peter, David Hillier, and Daphne Comfort. “Sustainability in the Hospitality Industry: Some Personal Reflections on Corporate Challenges and Research Agendas.” International Journal of Contemporary Hospitality Management 28.1 (2016): 987-1005. Print.
Prud’Homme, Brigitte, and Louis Raymond. “Implementation of Sustainable Development Practices in The Hospitality Industry: A Case Study Of Five Canadian Hotels.” International Journal of Contemporary Hospitality Management 28.3 (2016): 75-89. Print.
The business that I intend to start is a franchise of Wireless Zone. It is one of the most aggressively growing retailers and has more than 400 outlets all over the US (Sinclair, 2011; Nemic, 2012). The business model is accepted in the franchise model of doing business.
The core business of the company is selling technology-related products and provides solutions. The company operates on a franchise model that allows the company to expand at a relatively fast rate and find operates who are actually the owners of the store and have an interest in successfully running the business. Wireless Zone is the name of the company as it literally shows the kind of product sold in the stores i.e. cellular and wireless phones, wireless accessories, GPS navigation, Wireless Data Service, pre-paid cellular service, etc. (Wireless Zone, 2011).
This paper presents a detailed outline of the different aspects of the marketing, managerial, and financial aspects of running a franchise business. The paper will also show why and how the external environment provides support or threat to the operations of the business. the objective of the paper is to understand the feasibility and prospective success of the business.
Management Section
Legal Structure
The franchise model of doing business is based on the concept of a franchisor that licenses a trademark and advances the business expertise and the method of doing business to a franchisee in exchange for a fee from the latter called franchisee fee (Legal Help USA, 2012). Usually, there is a contractual agreement between them, therefore, using a franchise model is an easier and safer method of doing business.
In other words, someone with a business idea sells the right to another person to use the name of the business, sell its products and services to the consumers. A franchise model of business is advantageous for the franchisee to start a business without any hassle of developing a new product, primary research on product demand, and establishing a brand. A franchise model allows a franchisee to develop an already established idea and not build a business right from scratch. The only disadvantage of a franchise model of business is that it reduces the power over certain things like product, branding, marketing, etc. of the franchisee.
Otherwise, the franchise model is a very effective and hassle-free method of starting a business. In term of starting a franchise, the company Wireless Zone will provide “training at Wireless Zone University in Connecticut as well as start-up, operational, customer service, and marketing support.” (Allbusiness.com , 2011) Therefore, from the legal perspective as well as operational perspective, starting up a franchise is much easier and assured of business than to build a new start-up.
Management and Owner
The management of the company will remain with the franchisor i.e. Wireless Zone. The company will have its CEO and other top managerial officials and board of directors. The ownership of the franchise will however remain with the franchisee. Therefore, the person who takes up the franchise is the owner of that specific retail outlet. However, he has to abide by the terms and conditions laid down in the franchise agreement.
As the owner, I will also be managing the store. Therefore, the strategic decision making will be done at the franchisor level by the Wireless Zone CEO and management, but on the store level, the owner will be responsible to handle the day to day managerial activity.
Staff
For the store, the staff that is expected to require are a Manager, Assistant Manager, and a few full and part-time associates. I will take up the responsibilities of the Manager. I will require hiring an assistant Manager and associates who will be responsible for retail sales. Therefore, associates will be the selling point for the store. The staff is to be recruited by the store owner. However, on opening the store Wireless Zone headquarters provide two weeklong training for the franchisee and the new managers and associates at the headquarters of the company (Entrepreneur, 2012). Apart from this, there is an additional 5 days of training at the franchisee’s location.
Marketing Section
The environment in which Wireless Zone operates is very competitive. There is a high degree of supplier power overpricing as there are few suppliers of the popular branded wireless devices. There are a large number of buyers for wireless devices, which therefore reduces buyers’ power. The external environment has been turbulent for Wireless Zone since 2010 with the market hit by the recession.
The US economy was hit by the recession, which affected most businesses. The main reason for this slump in the economy was the failure of the banking system in the economy and dipping in consumer confidence that led to a lowering of demand for consumer durables. However, the company has not been affected by the recession: “Though the economy may be suffering” (Nemic, 2012). Therefore, the external environment through bad for business did not affect the Wireless Zone.
Change in preference of the customers, i.e. a phone is no longer considered just a device through which one communicates but it does much more than that. It is used for various other purposes than just suing for communication. Therefore, even during the recession, there was an increased demand for its products. Given the external environment for wireless technologies, it is now important to understand the opportunities and threats that the company faces.
First, it is a growing company. As Wireless Zone is a fast-growing company, it has the opportunity to grow further. Moreover, the company grew even during the recessionary period when its stores increased from 180 in 2008 to 400 in 2010 (Nemic, 2012). As they provide a niche product of all wireless technology products, its success is greater. The reason being it is a one-stop-shop for buying anything wireless right from cell phones to car phones or GPS systems, to Bluetooth headsets.
There is a great demand for such products as these are relatively new in the market. Another opportunity that Wireless Zone has exploited is its reach in the rural areas. Wireless Zone has 25 to 30 percent of its retail stores in rural areas. However, there are many rural areas where expansion is possible and where there is a great demand for such products (Palenchar, 2009).
The threat that is imminent is that it is a retailer in the ever-changing technology-oriented market. In technology-related products, innovation is paramount, which reduces the product life cycle. Therefore, the products sold by Wireless Zone too may become backdated and there would be less demand for the product, which will reduce their growth. However, if the company achieves to keep pace with the fast-moving wireless product industry there will also be continuous growth for the company.
For instance, the Wireless Zone started as a car phone company in 1988 but expanded its product range to a wide variety of wireless technology products commercially sold today (Palenchar, 2009). Another threat that Wireless Zone faces is from competitors who too may follow the business model and strategy of the company and eat away a part of their revenue share.
Target market
The target market of the Wireless Zone is the rural market in the US. Top management of the company has stated as “Rural America in ‘A’ locations is a definite focus for us” (Palenchar, 2009) however, they plan to expand also in urban and suburban areas. In 2007, their target in the rural market was about 25 to 30 percent. The market segmentation followed by Wireless Zone is based on geographic location. The company has a strong and mature market in the Northeast of the country. The other geographical targets of the company in recent times have been “Midwest and South regions” (Palenchar, 2009). One opportunity that they derived from this expansion is that Wireless Zone is the only agent operating for Verizon.
Positioning Strategy
The company is positioned on two unique lines – first, it is the only supplier of all products that are wireless, and second, they are the sole retailers for Verizon. This provides the company with a double edge that helps the company to operate in greater parts of the country. The company is positioned as the provider of wires technology be it cellular phones or GPS devices or car phones. Therefore, the company has a distinct positioning in the wireless technology market.
Promotional Strategies
The company already has an established brand name. Wireless Zone is a highly popular company, however; consumer ratings or business ratings provided to the company by various media channels are a boon that helps in the promotion of the company. Wireless zone promotes its brand through direct-mail promotions and advertisements through televisions. Promotional activity will be done by the franchisor provided to the franchisee.
The other promotional activity that the franchisee is facilitated with is in-store design. Promotional and sales promotions are done directly in the stores with direct planning done by the franchisor and company management. Other promotional activities that are done are through “ Co-op advertising, Ad slicks, Regional advertising” (Entrepreneur, 2012). Other promotional activates are done through a company newsletter, grand openings, Internet marketing, etc. Public relations activities through philanthropic work also provide a good state for increasing brand awareness (Entrepreneur, 2012).
Financial Section
The financial requirement to start up the store is expected to be around $65,250 – $223,500 and the franchise fee that has to be paid every year is $1,000 – $30,000 (Entrepreneur, 2012). The royalty fee that is to be paid to the company, however, varies. The term of the agreement is of 7 years after which it can be renewed.
Table 1: Investment to start a Franchise.
Investment
Amount
Total Investment
More than $100,000
Franchise Fee
$1,000 – $30,000
Ongoing Royalty Fee
Varies
Term of Franchise Agreement
7 years, renewable
Table 2: The first year projected Budget.
Month
M1
M2
M3
M4
M5
M6
M7
M8
M9
M10
M11
M12
Expenses
Initial franchisee Fee
$50,000
Inventory Fee
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
$15,000
Marketing
$10,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
Sign & Displays
$15,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
Opening Expense
$15,000
Staff
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
5 Associates
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
1 Assistant manager
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
Other Expenses
Electricity
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
Excess Capital
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
Table 2 presents the projected budget for the first year of operation of the store. The budget shows that the maximum cost that would be incurred is in the initial set up period. In the initial state when the company is contacted for franchising and initial payment is made after the agreement is signed by both parties. The initial payment has to be around $50,000. The must be noted that in order to take up a franchise for Wireless Zone it is important to have an initial capital of at least $100,000.
Then there are additional costs of inventory, marketing, store opening, display, and signage, etc. It should be noted that costs such as opening costs, heavy marketing costs would be initially incurred due to the initial set up of business. However, these costs will reduce as these are no recurring costs. The recurring costs are some marketing sign related costs, staff salary, and other expenses such as electricity bill. Apart from this, the franchisee has to have excess capital in hand in order to pitch in time of immediate requirement.
Conclusion
The proposal to open a franchise of Wireless Zone is a lucrative option. There is a great growth potential for the brand even though the market of technology gadgets retail is fiercely competitive. The setting up cost is initially high but then the potential to grow and early breakeven provides a grand opportunity for a franchisee. Apart from that, there is a lot of company support in terms of training, marketing, and store designing. Therefore, a lot of strategic work is reduced. Wireless Zone provides a lucrative opportunity for franchisees.
References
Allbusiness.co. (2011). Wireless Zone Ranked #10 Franchises Systems. Web.
