Italian Market Entry By Superior Chocolate Marketing Essay

Italian Market Entry By Superior Chocolate Marketing Essay Superior Chocolate (SC) is a UK based producer of high quality organic chocolates. The firm has three product lines, namely (a) block chocolate, (b) chocolates for special occasions and (c) speciality chocolates. All chocolates are produced with high quality organically grown ingredients. Whilst the company is far smaller in size than the global and regional market leaders, the firm has established market presence in the UK, the USA and Australia and production facilities in the UK and Australia. The company has adopted a comprehensive marketing strategy for (a) improvement of competitive advantage by improvement of financial strength, and (b) expansion into other markets, in both emerging and developed countries. SC is now actively examining the potential of different foreign markets for entry and expansion, from various business perspectives. Objectives This study aims to investigate and analyse the potential of the Italian market for entry by Superior Chocolate. The study entails the conduct of a focused situation analysis of the Italian market and an examination of the various routes for entry. Such analysis and examination is followed by appropriate recommendations and a concluding section. 2. Analysis of Italian Market The analysis of a national market for purposes of entry and expansion by foreign business organisations is a complex and multi-dimensional task that involves assessment of various market factors, environmental conditions, extent of competitiveness and existing opportunities and threats (Gilligan Wilson, 2005, p 48-51). This study focuses on important market factors in order to produce a representative snapshot of existing conditions and to thereby facilitate decision making on entry and expansion options. Market Analysis Whilst Belgium and Switzerland are globally known for the excellence of their chocolate making skills, chocolates are extremely popular in most European countries and both the UK and Italy have strong chocolate markets (Mintel, 2010, p 1-2). Chocolate consumption in the UK at approximately 600,000 tonnes per year is however much more than that of Italy, which consumes approximately 215,000 tonnes every year (RTS Resource Ltd, 2010, p 1-2). The consumer expenditure on chocolates in European countries in 2007 is detailed in the chart provided below. Consumption of Chocolates in Europe (RTS Resource, 2010, p 1) Information obtained from various surveys and reports lead to the following conclusions about existing market conditions in Italy and other European countries. Expansion of the chocolate market in the immediate future appears to be limited because of low population growth forecasts, depressed economic conditions and competition from other snacks and indulgences. The market is reaching saturation level and much of its growth is coming from market segments rather than from total expansion. The market is in a state of maturity and growth is less than 1% every year. Marketing experts feel that European chocolate sellers should try to improve their market shares by (a) exploiting the health properties of chocolate, (b) engaging in product differentiation through use of shapes, ingredients and packaging, (c) increase in brand diversification, (d) introducing low calorie and low sugar products, and (e) developing the super premium sector. Whilst opportunities do exist in the chocolate market, they are becoming increasingly difficult to find because of increasing market competition and fragmentation (RTS Resource, 2010, p 2). Environmental Analysis Careful environmental analysis of target markets enables prospective market entrants to understand the various environmental features that are different, in small or large measure, in such target markets from those of their existing markets. An understanding of such differences helps organisations in shaping their entry strategies (Hooley, et al, 2008, p 81-86). Such environmental analysis is normally carried out through the examination of political, economic, social, technological, environmental and legal aspects in line with the well known PESTEL format (Hooley, et al, 2008, p 81-86). It is however unlikely that any significant political, environmental and legal issues could cause concerns about the entry of Superior Chocolate in Italy because both Italy and the UK are governed by EU regulations and norms. SC should thus, for purposes of environmental analysis, focus mainly on economic and social issues (Mintel, 2010, p 1-2). Italy is an advanced and affluent nation with an annual GDP of 1.74 trillion USD and a per capita income of 29,900 USD. The ongoing economic recession has however hurt the Italian economy significantly and both annual GDP and per capita income have reduced significantly from 2007 levels. Future growth prospects are also not very optimistic and the country expects to face bleak economy conditions for some years to come. Such depression in economic conditions has obviously led to reduction of discretionary incomes, losses of jobs and decrease in consumer spending (Central intelligence, 2010, p 2-3). The consumption of chocolates has however not been affected, even though the segment has not shown any significant growth in the last two years (Mintel Snapshotà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ã‚ ¦, 2010, p 4-9). Whilst such trends provide reason for some optimism, continuance or worsening of economic conditions could well lead to reduction in demand and consumption of chocolates in Italy. Italy is an ageing society and with the death rate exceeding the birth rate, the population of the country is decreasing steadily. The average age of the country, at approximately 44 years, is higher than the average European age and significantly higher than that of the UK. With consumption of chocolates being associated with children and young people, the growing average age of the country could lead to stagnation or even reduction in demand for chocolates in future. Italian society is also culturally very different from that of the UK (Central intelligence, 2010, p 2-3). Italians are fiercely proud of their history, society and culture and tend to be ethnocentric in their choice of products. This is even more pronounced in personal preferences like clothes and food. Research has conclusively revealed that greater levels of ethnocentricity by and large lead to preferences for local products, thereby making it difficult for foreign companies to enter and expand in such markets (Arvi dsson, 2003, p 34-39). Porters Five Forces Analysis Porters Five Forces Model provides a useful tool for the analysis of the extent of competitiveness in a particular industrial or sector. Such analysis is done by investigation of five specific market forces, namely (a) the extent of rivalry between market participants, (b) the power of buyers, (c) the power of sellers, (d) the potential threat from new entrants, and (e) the threat from substitutes (Porter, 2008, p 7-15). The extent of competition between market participants is intense. As a strong consumer of chocolates and cocoa products, the Italian chocolate market is crowded by global, regional and local suppliers. With Belgium and Switzerland being geographically proximal, numerous chocolate producers from these countries service the Italian market. The power of buyers is very high because of the numerous choices available to them. The power of suppliers is however low because the ingredients used for production of chocolates are essentially generic in nature and freely available. Chocolates are an easy entry business area in terms of investment and technology and the threat from new entrants, especially those of local origin is high. With new developments in foods and snacks occurring frequently, the threat from substitutes is also high. It is evident from the above analysis that the market for chocolates in Italy is not just sophisticated, mature and slow growing, but also intensely competitive in nature. Areas of Opportunity Whilst the market for chocolates in Italy is undoubtedly slow-growing and intensely competitive, the popularity of chocolates among western populations is an undeniable fact. Italy, with a consumption of more than 200,000 tonnes per year is the fourth largest consumer of chocolates in Europe (Mintel Snapshotà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ã‚ ¦, 2010, p 4-9). Such a strong market undeniably provides opportunities for new entrants. Superior Chocolate, with its range of high quality chocolates produced with organically grown ingredients will essentially target the premium segment of the product. It should be able to find strong niche opportunities through careful differentiation of product qualities and carefully chosen marketing and distribution strategies. Consumption of chocolates is now being associated with a range of medical benefits and chocolates could in future become a strongly recommended consumption product for ageing populations (Stibich, 2009, p 1-2). Such changes in consumption patterns could be significantly important for the ageing Italian population and lead to strong growth in chocolate consumption in future. It is important to note that Italy just about one third of the chocolate consumed in the UK, even though its population is practically 80% of that of the UK. Increase in per capita consumption levels of chocolates in Italy to those of the UK can lead to significant market expansion and cr eate substantial market opportunities for Superior Chocolate. Entry Routes International expansion and marketing not only requires very careful analysis of market situations and business environment but also an appropriate choice of entry strategy. Business firms wishing to enter new markets can choose from a range of alternatives starting with direct export of products to importers in target markets to appointment of franchisees, setting up of joint ventures or investment in fully owned facilities (Kotler, et al, 2008, p 71-77). The choice of entry routes is shaped by a number of external and internal considerations like existing production capacity, distance of target market from current production centres, cost of investment in production facilities in target locations and local environmental considerations (Kotler, et al, 2008, p 71-77). Most organisations that supply non-perishable products to proximal countries choose direct exports as the favoured mode of entry and support such exports by strong local marketing and distribution facilities (Hooley, et al, 2008, p 81-86). Whilst direct exports could facilitate the entry of Superior Chocolate into the European market, the additional freight and cold chain costs could well make the firmà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s products uncompetitive in the long run, especially in comparison with competitors in proximal countries or those who have local production facilities. SC must essentially aim to establish its captive production facilities in Italy, even though it can initially enter the market through direct exports. Such a medium term strategy will not only enable it to be more competitive in terms of costs and prices but will also enable it to adapt and customise its products in line with local preferences. The company must, if such a strategy is adopted, decide between putting up its own facilities and entering into a joint venture with a local business firm for production and manufacture of chocolates. The decision to set up own facilities in foreign countries, whilst keeping full control of the business within the organisation, is however far more difficult to implement because it calls for detailed environmental and cultural knowledge of the target market. The adoption of the joint venture route on the other hand entails entering into a partnership with a local organisation for sharing of investments, management control, responsibilities and profits of the proposed business (Adcock, 2000, p 35-42). Whilst joint ventures require mutual understanding, collaboration and a spirit of give and take and beneficial partnership, they enable foreign companies to associate with local business organisations and take advantage of their knowledge of local environmental, social and cultural condit ions (Adcock, 2000, p 35-42). 3. Recommendations The foregoing analysis of market and environmental conditions leads to the inescapable conclusion that the Italian market for chocolates, whilst strong and with potential for good future growth, is at present increasing very slowly and is furthermore fragmented and intensely competitive. With the Italian economy experiencing a prolonged period of economic downturn, Superior Chocolate will have to face and overcome intense competitive challenges and difficult market conditions in order to establish and expand its product line. The demanding market and environmental conditions, coupled with the ethnocentric social and cultural environment, call for the careful selection of entry strategy. It is recommended that the firm should engage in planned market activity and enter into an agreement with a strong, reliable and well known local business firm for production and sale of chocolates. Such a strategy will enable SC to obtain extensive information about local market realities and customer preferences and adopt appropriate business strategies. Market leaders like McDonalds, KFC and Mark and Spencer are using the joint venture route successfully to expand their operations in foreign locations. Superior Chocolate will also benefit from adopting such an entry route. 4. Conclusions Superior Chocolate is a UK based producer of high quality organic chocolates. The firm has three product lines, namely (a) block chocolate, (b) chocolates for special occasions and (c) speciality chocolates. The company has adopted a comprehensive marketing strategy for (a) improvement of competitive advantage by improvement of financial strength, and (b) expansion into other markets, in both emerging and developed countries. This study investigates and analyses the potential of the Italian market for entry by the company. The analysis makes use of a focused situation analysis of the Italian market and an examination of the various routes for entry for its final recommendations. The analysis of market and environmental conditions leads to the inescapable conclusion that the Italian market for chocolates, whilst strong and with potential for good future growth, is at present increasing very slowly and is furthermore fragmented and intensely competitive. The demanding market and environmental conditions, coupled with the ethnocentric social and cultural environment, call for the careful selection of entry strategy. It is recommended that the firm should first enter the market through direct exports and thereafter enter into an agreement with a strong, reliable and well known local business firm for production and sale of chocolates. Such a strategy will enable SC to obtain extensive information about local market realities and customer preferences and adopt appropriate business strategies.

Biological Theories of Aging

Aging is a biological phenomenon all the living things are undergoing. We are not sure about anything in the world except the aging. We are approaching getting nearer to the death from the time of the birth onwards. No living thing in the world has the ability to defeat death as it occurs sometimes naturally and sometimes accidently. Aging has different dimensions like physical, psychological, and social. There are many biological theories with respect to aging.Simple Deterioration, Non-programmed Aging and Programmed Aging, Autoimmunity theory, Free radial theory, Telomerase Theory of Aging etc are some of them. This paper briefly explains some of the biological theories of aging mentioned above. Aging: Simple Deterioration Theory/ Wear and tear theory Simple Deterioration Theory argues that Aging is the accumulative result of universal deteriorative processes such as oxidation, molecular damage, wear and tear, or accumulation of adverse byproducts (Goldsmith, p. 3). Even though man and machine are two entirely different things, both of them have certain similarities in their functioning.No machine is able to function more than particular period of time because of the wear and tear due to continuous work. Same way bodies of the living things are also undergoing continuous work which causes damages to the parts of the body. Even though we refill the fuels in the form of food, nutrients and water, there are certain limitations for the body of the living things to survive for a longer period. In chemistry, most of the chemical reactions yield products and by-products. These by-products are not necessarily the intended one.Same way our body chemistry also yields different by-products which are harmful to our health and may reduce our life span. At the same time we cannot avoid the production of such by-products Aging: Non-programmed Aging Theory Non-programmed theory of aging believes that aging is a passive result of an organism’s inability to better resis t fundamental deteriorative processes. Moreover aging serves no purpose, is not an adaptation, and is not programmed (Goldsmith, p. 8). Our body is undergoing lot of changes and processes virtually in very seconds. Most of the activities inside our body are beyond our control.For example, the pumping of blood by the heart is not done with our permission. We cannot stop any of the internal functions. Everything inside our body is tuned to do certain things and any malfunctions occur inside our body may result in diseases. We are passive observers of our body functions. Aging: Programmed Aging Theory â€Å"Organisms are purposely designed and genetically programmed to age or otherwise limit life span because the deterioration and life span limitation serves an evolutionary purpose† (Goldsmith, p. 9). It is unimaginable to think of a world without death for living things.The earth might not be able to give shelter to all the living things if death was not there. So as part of th e natural evolution process, nature has programmed death; natural and accidental to all the living things. August Weismann (1834–1914), the great German theorist and experimental biologist of the 19th century, was one of the first biologists to use evolutionary arguments to explain aging. His initial idea was that there exists a specific death-mechanism designed by natural selection to eliminate the old, and therefore worn-out, members of a population.The purpose of this programmed death of the old is to clean up the living space and to free up resources for younger generations (Gavrilov &Gavrilova) Aging: Autoimmunity theory This theory argues that our body has the tendency to reject its own tissues with the increasing age (Biological theories of aging, p. 21). For example, it is difficult for the older people to take heavy foods because of digestion problems. Moreover, it is a fact that we are losing many hairs and skin and nail cells periodically. In other words, our body has the tendency to reject certain things as time passes.Free radical theory Free radical theory says that certain chemical compounds in our body does damage which accumulates to produce aging (Biological theories of aging, p. 22). Our body is just like a factory. We know that a factory can produce lot of industrial wastes and these wastes can sometimes affect the functioning of the factory. Same way our body also produces lot of harmful wastes. Some of them will be released through, stools, urines, and sweats. But most of the harmful wastes will be accumulated at some part of the body like Kidney. Kidney stone is a common disease occurring in many people.Kidney failures can cause problems to the blood purification purpose and death can happen. Telomerase Theory of Aging Discovered by scientists at the Geron Corporation, Telomerase Theory of Aging argues that telomeres (the sequences of nucleic acids extending from the ends of chromosomes), shorten every time a cell divides. This sh ortening of telomeres is believed to lead to cellular damage due to the inability of the cell to duplicate itself correctly. Each time a cell divides it duplicates itself a little worse than the time before, thus this eventually leads to cellular dysfunction, aging and indeed death (Kleinsek Ph.D. ) We have the ability to either accelerate or slow sown the DNA damage. Those who have the ability to slow down the DNA damage may live much longer than those who have not such abilities. DNA can be repaired using artificial means up to certain extent which can delay the death. But under no circumstances, it is possible to avoid death as per the researches and findings till now. Conclusions Aging is a natural phenomenon incorporated to all the living things by nature in order to find spaces for the coming generation.Even though there are many biological theories are there with respect to aging and death, all of them unanimously agree that death is inevitable.Works Cited 1. â€Å"Biologica l Theories of Aging†. 16 March 2010. 2. Gavrilov Leonid A and Gavrilova Natalia S. 2002. â€Å"Evolutionary Theories of   Aging and Longevity†. 16 March 2010. 3. Goldsmith, Theodore. C. 2009. â€Å"Theories of Biological Aging†. 16 March 2010. 4. Kleinsek, Don Ph. D. â€Å"Theories of Aging†. 16 March 2010. http://www. antiaging-systems. com/agetheory. htm |

Dell Jit

Dell – Supply Chain Management Case Study 1 Case Contents 1. Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 2 2. Dell – Company Overview †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 2 3. Dell Products and Services †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 3 4. Dell – Key Facts †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 4 5. Dell Timeline†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 6. Dell – Business Segment Information†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 6 7. Dell’s Evolving Supply Chain Strategy†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 7 7. 1. Typical Working of Dell’s Supply Chain †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 7. 2. Five key strategies in Dell’s successful Direct Model †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 7. 3. A supply chain with old technology is of little value â € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 8 8. Restructuring at Dell †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 8. 1. New Distribution Channels – Direct Model and Retail Strategy †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 8 9. Integrating the Supply Chain †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 9 This case study covers the following issues: 1. Examine and analyze Dell’s Direct model, its basic working, success and future challenges 2. Typical Working of Dell’s Supply Chain and future supply chain challenges 3. Highlights Dell’s evolving Supply Chain practices and strategy and steps being taken by it to recapture its lost market leader positionCase Study Keywo rds: Dell, Direct model, Supply Chain Management, Supply Chain Strategies, Build-to-order model, Inventory optimization, PC Manufacturing, Retail Distribution Channel, HP, Notebook computers, Desktop personal computers, Competitive Business Strategies, Sustaining competitive advantage, Michael Dell 1 Please note: This case study was compiled from published sources, and is intended to be used as a basis for class discussion. Accuracy of information cannot be guaranteed. Please do not copy without permission.  © casestudyinc. com 2008 1. Introduction Dell thinks about their offerings as microprocessors, disk drives and frames-per-second graphics. But consumers just want a computer they can be proud of when they show it to their friends, listen to music, watch videos and do office work† – Christian Terwiesch, a Wharton professor Dell has been following its unique ‘direct build-to-order’ sales model for more than 20 years. Customers can plan their own configu ration and place orders directly with the company via the phone or its Web site. Over the years, Dell’s supply chain efficiencies and direct sales gave it a competitive advantage.In 2006 however, Dell faced several problems. Many customers complained about long delays in supplies. Recall of Sony battery cells in its laptops brought undesirable media hype to the company. Increasing discontent of customers led to a slowdown in sales. Consequently, Dell lost its market leadership to HewlettPackard Co. (HP). Industry analysts felt that, with Dell's competitors also improving their supply chains and matching Dell's direct model, the company had been losing its competitive edge. Dell will have to bear additional costs with its foray into retail distribution thereby minimizing its cost advantage.Besides, profit margins of Dell will drop further since it will have to offer incentives to compete with HP in retail stores. Though Dell spruced up its product design and range but Apple is clearly far ahead of it. Many experts feel that such new initiatives will only distract Dell from its supply chain operations. 2. Dell – Company Overview Dell is a leading technology company, offering a wide range of computer product categories. Its product categories include: desktop computer systems, mobility products (notebooks), servers, storage, software and peripherals, and services.Dell is the number one supplier of personal computers in the United States, and the number two supplier worldwide. Dell also offers various financing alternatives, asset management services, and other customer financial services. Dell has manufacturing locations worldwide. Dell’s build-to-order manufacturing model allows it to substantially reduce costs and at the same time offering customers the ability to customize their product purchases. 3. Dell Products and Services Product Lines and Brands Desktop PCs †¢ OptiPlex †¢ Dimension †¢ XPS †¢ Alienware †¢ Vost ro Servers and Networking PowerEdge and PowerConnectStorage Dell | EMC and Dell PowerVault Mobility XPStm and Alienware, Inspiron and Latitude lines of notebook computers Software and Peripherals Dell branded Printers, software titles, televisions, notebook accessories, networking and wireless products, digital cameras, power adapters, scanners, and other products Enhanced Services †¢ Infrastructure Consulting Services †¢ Deployment Services. †¢ Asset Recovery and Recycling Services. †¢ Training Services †¢ Enterprise Support Services †¢ Client Support services †¢ Managed Lifecycle services Financial Services Various customer financial services for business and onsumer customers in the U. S. through Dell Financial Services L. P 4. Dell – Key Facts Dell: Quick Facts Company Type Corporate Headquarters Revenues Industry Employees Manufacturing Facilities Distribution Product Lines Brands Major Competitors Business/Growth Strategy Key Executive s Name, (age),Designation Website Public (NASDAQ: DELL) Round Rock, Texas $57. 4 billion (fiscal 2007) Hardware, PC Manufacturing Approximately 90,500 total employees (Fiscal 2007) †¢ Brazil — El Dorado do Sul †¢ Florida — Miami (Alienware) †¢ North Carolina — Winston-Salem †¢ Ohio — West Chester †¢ Tennessee — Lebanon and Nashville Texas — Austin †¢ Ireland — Limerick and Athlone (Alienware) †¢ China — Xiamen †¢ Malaysia — Penang Worldwide †¢ Desktop PCs †¢ Mobility products †¢ Servers and Storage †¢ Software and peripherals and †¢ Services †¢ OptiPlex †¢ Dimension †¢ XPS †¢ Dell Precision and Alienware MJ-12 ® †¢ PowerEdge †¢ Dell PowerVault †¢ Inspiron †¢ Latitude †¢ HP †¢ Acer †¢ Lenovo Direct customer model Highly efficient manufacturing and logistics, and New distribution channels to reach custo mers Michael S. Dell (42) Chairman of the Board of Directors and CEO Donald J. Carty (61) Vice Chairman and CFO Michael R.Cannon (54) President, Global Operations Stephen J. Felice (50) Senior VP and President, Asia Pacific-Japan Mark Jarvis (44) Senior VP, Chief Marketing Officer David A. Marmonti (48) Senior VP and President, EMEA www. dell. com 5. Dell Timeline Dell Timeline 1983 Michael Dell used to upgrade IBM compatible PCs in his spare. (He was a freshman at the University of Texas, Austin) 1984 Michael Dell established PC's Ltd with sales US$ 6 million in its first full year of operations 1985 Turbo PC, first computer introduced by the company. Turbo PC was advertised in computer magazines and sold directly to customers 993 Dell joins the ranks of top-five computer system makers worldwide 1996 Dell pioneers Internet sales with earnings approx 1 million dollars per day just seven months after launch of www. dell. com 1998 The company changed its name to Dell Computer Corporat ion 1999 Dell introduces E-support tool to provide online technical support 2000 Online sales continue to grow to $50 million per day 2001 Dell achieves No. 1 ranking on global market share 2003 Dell launches Dell Recycling initiative 2004 Inventory turnover rate in Dell was at 107 times a year, compared to 8. 5 times at HP and 17. times in IBM. 2005 â€Å"America’s Most Admired Company† – Fortune Magazine 2005, 2006 Dell faced several problems, and lost its position as the largest selling PC manufacturer to HP 2007 Dell announced that it planned to move most of its global supply chain and manufacturing operations to Singapore, which would function as the company's ‘shared headquarters 2007 Michael Cannon assumes responsibility as the Head of Global Operations Organization 2007 Michael Dell (Michael) returned as CEO on January 31, 2007 2007 Retail partnerships with Wal-Mart, Staples, Gome, Bic Camera and Carphone Warehouse 2007Dell launches the Direct2Dell corporate blog and other idea forums to listen and engage customers 6. Dell – Business Segment Information Dell conducts operations worldwide. Dell is managed in three geographic regions: †¢ †¢ †¢ Americas Europe, Middle East, and Africa (EMEA) Asia Pacific-Japan (APJ). Major Business Segment Based in Americas Round Rock, Texas EMEA Bracknell, England APJ Singapore Covers Business – sales to corporate, government, healthcare, education, and small and medium business customers U. S. Consumer – sales primarily to individual consumers and selected retail partners Covers Europe, the MiddleEast, and Africa. Covers the Asian countries of the Pacific Rim as well as Australia, New Zealand, and India 7. Dell’s Evolving Supply Chain Strategy Dell’s past performance has been the result of its direct customer model. Dell’s success is attributed to a constant focus on delivering directly to its customers, related technology and services a t the best value. Dell’s operations involve highly efficient manufacturing and logistics to lower the cost of technology. 7. 1. Typical Working of Dell’s Supply Chain Dell Supply Chain works as follows: 1. Customer places an order, either by phone or through the Internet on its website . Dell processes the order in 2-3 days by evaluating financial feasibility (credit checking) and technical feasibility (technical con? guration) 3. Dell processes the order to one of its manufacturing locations 4. These plants can put together, test, and package the product in about eight hours 5. Dell typically plans to ship all orders no later than ? ve days after receipt 7. 2. Five key strategies in Dell’s successful Direct Model Five key strategies in Dell’s successful Direct Model †¢ †¢ †¢ †¢ †¢ Rapid time to volume Built to order products Elimination of reseller markupsSuperior customer service and support Low inventory and capital investment 7. 3. A supply chain with old technology is of little value The direct model involves bypassing retailers and selling personal computer systems directly to customers. This helps avoid the delays and costs of an additional stage (holding inventory) in the supply chain. Typically, each technology component loses about 0. 5 to 2 percent in a rapidly changing environment. A supply chain with old technology is of little value. Dell maintained very little inventory and concentrated on pacing its products through its supply chain.This also meant that there was no question of selling old products at a discount. 8. Restructuring at Dell Dell failed to meet its quarterly financial forecasts. Consequently, Dell lost its market leadership to Hewlett-Packard Co. (HP). In order to settle a few accounting issues, the company decided to restate its financial results for the last four years. Michael Dell had to take the CEO’s responsibility again, replacing Kevin Rollins. Michael Dell felt th e importance of increasing the capacity, via the direct model, to manufacture close to its customer and fully integrate its supply chain into one global organization.To do so Dell had to innovate and adapt its supply chain model to help drive differentiated product design, manufacturing and distribution models. He began a series of restructuring exercises. 8. 1. New Distribution Channels – Direct Model and Retail Strategy While part of the restructuring involved cutting 8,000 jobs, or 10. 0% of its workforce, the biggest surprise was the move of Dell to complement its ‘direct sales model’ with sale of PCs through retailer channels as well. To reach even more customers globally, Dell launched new distribution channels to reach commercial customers and individual consumers around the world.This meant moving from a model of direct sales to making its goods available in stores across the world. This move allowed Dell to reach customers that it could not reach directl y previously. From June 2007, it started placing its products in the shelves of Wal-Mart and Sam's Club stores. In December 2007, Dell also announced that its Dell laptops and desktop computers will be sold through Tesco stores in Britain and Ireland as well as the high-growth eastern European markets of Poland, Czech Republic, and Slovakia. In U. S. Asia and Europe, Dell added Best Buy, WalMart, Staples, China's Gome Stores, Japan's Bic Camera, France's Carrefour and British phone retailer, Carphone Warehouse to sell its products at nearly 10,000 retail outlets worldwide. In December 2007, Dell also chose WPP, the world's second-largest marketing, media and communications conglomerate after Omnicom, to create a new agency that will handle $4. 5 billion in accounts over the next three years. Dell hoped that creating the agency would increase the time and money spent focusing on marketing and customers rather than pitching for the next project 9.Integrating the Supply Chain Earlier, Dell's manufacturing, supply chain and procurement activities functioned separately. Procurement functioned as a standalone unit, the regional business executives were in-charge of manufacturing, and supply chain was a part of the worldwide operations of the company. All Dell's factories had been managed regionally, and procurement functioned as a separate division. Michael aimed to integrate its supply chain and achieve higher efficiency and quality through Global Operations Organization (GOO). GOO is Dell's center for integrating its global manufacturing, procurement

Chinua Achebe s Things Fall Apart - 1628 Words

Since the initial use of the literary device of tragic heroes, various renowned works of modern literature have implemented it. There are two types of tragic heroes Greek and Shakespearean. A Greek tragic hero is defined as a character of noble or high standing, who is destined for suffering, downfall, or defeat, due to forces outside of his control. A Shakespearean tragic hero is defined as a character of noble or high standing, who attempts to do the right thing, but in doing so â€Å"misses the mark† and does the wrong thing, ultimately bringing about his downfall. In many modern novels the existence of a tragic hero can be argued. An example is the postcolonial novel Things Fall Apart by Chinua Achebe. The novel follows the struggles of a†¦show more content†¦In doing this he is not only freely choosing that but is also going against what he was told. A Shakespearean tragic hero is often attempting to do the right thing but â€Å"miss the mark† and does t he opposite. In Thing Fall Apart this is not the cause for the protagonist Okonkwo, when he kills Ikemefuna, the young boy sacrificed by Mbaino to Umofia to prevent war, he does it out of fear of being weak. Okonkwo not only kills Ikemefuna out of fear but he was earlier told by Ezeudo, is oldest man in the village, to not take part in his death. This shows that Okwnko committed this act of violence for self-gain as opposed to being the right thing to do. â€Å"He heard Ikemefuna cry, My father, they have killed me! as he ran towards him. Dazed with fear, Okonkwo drew his machete and cut him down. He was afraid of being thought weak† (Achebe 61). Achebe distinctly writes that when Ikemefuna runs towards Okonkwo he is fearful and he draws his machete and kills him. This displays that Okonkwo although high in rank is not a noble man. He has distanced himself from all things seen as weak or feminine in his society to the point where acts of violence are his responses to situatio ns where he is fearful. His actions in this part of the novel directly go against the definition of a tragic hero. In killing Ikemefuna in an attempt to appear courageous, Okonkwo carries out this action for self-assurance of his own strength but in doing so he displays his fearful nature. Okonkwo