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Introduction
The paper sets out to analyze the website structure of http://er.eEducause.edu. Apart from stating the purpose, it will also examine the pros and cons that come with the structure and layout in general. Subsequently, the paper will discuss important lessons learned from the article on Enterprise-Level Networking and whether or not the source is appropriate for research.
A summary description of the website’s structure, purpose, pros and cons
The usability and design of http://er.eEducause.edu are rather complex. As such, it calls for searching several pages and hyperlinks to get that exact data one intends to use. A site with the right usability should be easy to use without necessary examining some pages or hyperlinks to get what they are searching for (Clark, 2002). Again, search engine optimization is the basis for any successful website.
However, Educause.edu has not been optimized appropriately; this is a deterrent factor when it comes to search engine ranking. On the other hand, the website has various content formats such as videos, slides, pictures, and text. If well optimized, this may turn the internet site into a resourceful hub. Loading speed for the website is quite remarkable.
Enterprise-Level Networking
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The quality of videos and pictures are excellent. Nonetheless, modern information websites are mainly generated by way of social media platforms and other associated sites that enhance user interaction. The website has been integrated with youtube.com and twitter; this creates a channel to enhance information sharing. Moreover, the website has a blog that presents a platform for discussion. The capability for users to respond to the articles allows for the interaction with other users that have similar or divergent opinions (Clark, 2002).
Articles are clustered in a category format; this allows for quick peruse. Navigation is done from the right-hand side of the website. Again, the website has a module that permits members to log into the system. For instance, end users can only make comments by becoming members. Apart from social media and blog interaction, a guest can drop an email using the contact link provided at the footer panel. In the end, the homepage layout is simple and professional.
Lessons Learned
Based on this website, it is clear that during initial adoption, the majority of IT firms concentrate on the abilities of the project. For instance, in the wireless systems, the main capability is providing internet connectivity across the organization without necessarily connecting to a wall outlet. Such capability presents various benefits to different areas; employees can access the system as well as the internet during the meeting, scholars can work from anywhere when they gather data, and students can use their laptops across the campus (Grochow, 2015).
Enterprise-Level Networking
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Besides the immediate advantages, IT workers often raise the likelihood of unique benefit, which is wireless networks can minimize or eliminate the importance of wired systems, hence decrease the cost of infrastructure. Furthermore, several new wireless tools would require additional bandwidth; something wired networks will need to comply with. Another aspect to put into consideration is the newness of wireless systems and the relevance to replace the whole infrastructure in the long run.
This website is useful because it demonstrates the need for installing new infrastructures while maintaining old ones or adopting new technology and learning that the new editions supersede it. Therefore, whereas one can expect different benefits from new infrastructure, there is often a risk that such benefits may not be attained. A thorough risk assessment will search for the effects of estimated benefits being unsuccessful and other possible risks such as consequences on a network of departments.
Allowing employee participation is a primary strategy to eliminate surprises while showing that risks have to be assessed comprehensively (Grochow, 2015). By and large, with a new infrastructure, risks and benefits are described with no much information to draw upon. This implies the assessment is significantly qualitative, but some aspects can be quantified. Subjective analysis can come from surveys or experiences from other organizations.
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Business Operations Decision
This paper aims at presenting low-calorie microwavable foods to support the firm’s continuous operational decisions. The paper will assess the results of supply chain since it demonstrates the existing market structure while putting into consideration the expected changes to sell environment and some of the factors that may lead to such a change. Also, the paper will assess the main short run as well as long-term production and cost functionalities as used to new cost information to establish whether there are conditions that can result in discontinuation of business operations decision.
Because there are changes in the market structure, it is important to examine the pricing structure to increase profits. In the end, the paper will present two strategies the firm should implement to enhance profitability while maximizing shareholder value.
Market Structure and Its Effectiveness for the Company
Each firm in a competitive market is the plays an important role in determining the price while the equilibrium cost as well as productivity in the industry are due to supply and demand. Low-calorie microwavable food market demonstrates the way in which demand and supply produced in perfect competition; regulate total productivity and the cost clients are ready to part with. In this case, the equilibrium cost and quantity are 407.65 and 24,335 respectively.
QD = 65,100 -100P
Qs = -7909.89 +79.0989P.
Companies in the purely competitive market have no power regarding the cost of their goods. Nevertheless, it may determine the quantity supplied to the market. Success or failure relies mainly on a pure competitive selling environment and the manner in which the firm identifies production expenses and depicts its products. The capacity of productivity revolves around the revenue the company will generate by producing goods (McGuigan, Moyer & Harris, 2014).
The company should implement strategies of conducting operations to make sure that it increases profits and output in the long run. An effective strategy is necessary when it comes to defining the efficacy of selling environment the firm operates. Furthermore, a proper plan will mainly highlight the availability of products, some enterprises participating, pricing patterns and powerful methods of brand promotion.
Business Operations Decision
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2. Changes in market structure and reasons that have caused changes from the market structure specified in Assignment 1.
Market survey shows that variations in the market structure are based on perfect and the imperfect market systems (Bragg, 2012). In an imperfect competitive oligopoly environment, the organization has the power to determine the price of its products. Information on competing organization demonstrated that there about 15 firms competing for low-calorie microwavable foods’ market share, out of which three companies control 75% of the market.
When it comes to sells, the firm is position 2 with approximately 77% of low-calorie microwavable foods, which reflects market concentration share, which is simply a measure of total market main players in the sector possess. For that reason, it may be necessary to assume that the firm is currently operating in the oligopolistic market, which is a competitive selling environment with relatively a few firms offering comparable brands as well as services (Routledge, 2008). The primary cause of such market is the withdrawal of rivals or increases or declines in the product costs (Bragg, 2012).
These changes mostly impact the operations of the company in different ways. To start with, there is likely to be significant output because the market share grows due to increases operation expenses influencing advertisement and labor costs. It is clear that labor costs may decline in the long run since the companies are controlling new firms are solidifying while redundant positions are eliminated (McGuigan, Moyer & Harris, 2014). Moreover, these changes can make an organization to modify its operations and adopt modern technologies in the operations.
Business Operations Decision
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3. Short and long-run production and cost functions for the frozen, low-calorie microwavable food company.
TC = 160,000,000 + 100Q + 0.0063212Q2
VC = 100Q + 0.0063212Q2
MC= 100 + 0.0126424Q
From assignment 1 QD = 350,000 -100 P
QS = -7909.89 + 79.0989P
ATC = TC/Q
= (160,000,000/Q) + (100Q + 0.0063212Q2)/Q
= (160,000,000/Q) + 100 + 0.0063212Q
AFC = 160, 000, 000/Q
AVC = 100 + 0.0063212Q
To determine production level for minimizing average total price, it is necessary to compute the average total cost to minimum cost.
This to say; the cost of Q =159,096.35 exemplifies production level, which reduces the average total cost. Meanwhile, when production level = 159.096.36, it is easier to fabricate optimum average collective price.
To determine the time it takes manufacturing at the lowest average total cost (ATC):-
This presents per-unit price of production, especially the proficient echelon. In the long-run, if the market varies, a company is forced to generate at the lowest total average price.
Business Operations Decision
4. Circumstances under which a firm should cease operations.
The association between ATC, average variable cost (AVC), and minimal costs (MC) can be illustrated well using a graph. The MC curvature transects the ATC and AVC curves at their lowermost points. Subsequently, price plummets with MC beneath AVC; however, price rises when the MC is above the average cost. While MC represents price of fabricating the last production unit, MC curve escalates with the measure of production, as such, the MC curve intersects ATC and AVC curves underneath their lowest points and increases.
The form of Minimal Cost curve is informed by the Rule of Shrinking Earnings. Shrinking proceeds in the fundamental logic come about in the event that marginal product flows an increasing measure of a parameter with a corresponding input is smeared to a fixed one (McGuigan, Moyer & Harris, 2014).
In this regard, the closure point is where the minimum AVC overlaps the MC. The firm can contemplate shutting down operations, when the cost plummets below the lowest point b as indicated on the graph. Implicitly by closing down the business can avoid running into more losses. It is only prudent for the organization to close down operations instead of accruing losses.
Business Operations Decision
However, the company can only go about with services by putting in place contingency measures and a strategy that allows it to change tactic and curtail losses (McGuigan, Moyer & Harris, 2014). This may be realized by changing production to a different SRATC curve through several capital alternatives.
When it comes to the breakeven point, the MC transects the ATC. Nonetheless, if the market price falls beneath $21.11, represented by point C on the chart, and above point b, the business may proceed with activities in the short-term. Largely, this may be because the price at the lowest point takes care of variable and fixed cost. Nonetheless, in the long-term under competitive setting, the firm has to quit the industry. As recapped by Stokes, the company’s administration has to play an integral role when it comes to market issues, putting market research individuals and being at the forefront dealing with market costs (Stokes, 2008).
Business Operations Decision
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5. The pricing policy that will allow frozen, low-calorie microwavable food company to capitalize on profits.
With regards to increasing profitability, I suggest cost profit maximization method, whereby the marginal revenue is equal to marginal cost. In this procedure, the firms examine the suitable output with the price levels with the goal of increasing returns. Quantity q* is illustrated by the convergence of MR and MC curves. The price that matches the amount is obtained by increasing q* with the demand curve to find p*.
There is another useful price rule that will be effective at a high rate will reduce the sales below q* while a lower price is likely to increase sales above q*. With the demand function, QD=350,000- 100P, inverse demand function can easily be calculated;-100P =350,000-Q.
P= (350,000/100) – Q/100
= 3,500 – 0.01Q
Total Revenue (TR) = P*Q
= (3,500 – 0.01Q)*Q
= 3,500Q – 0.01 Q2
MR = TR/Q
= 3500-0.02Q
Therefore, to increase earnings, marginal revenue should be compared to marginal cost.
MR = MC
3,500 – 0.02 Q = 100 + 0.0126424 Q
3,400 = 0.0326424Q
104,159.01 = Q
Q denotes return optimizing production that is beneath the output at the lowest average total yield. Therefore, realizing the actual cost for the fabricated unit, to enhance profit, the quantity in the profit is substituted as follows:-
P = 3,500 – 0.01Q
= 3,500 – 0.01Q (104,159.01)
= 2,458.41 = $ 24.58
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Business Operations Decision
6. To evaluate its financial performance.
Based on this computation, production permutation of 104, 159.01 units and with $24.58 as the retailing price puts us at the apex of our profit activity. Owing to our market power, the amalgamation puts the company in the changeable position of the demand curve. Any increase in the price will culminate in the loss of market share and a price fall that lead to higher profit realization. The computation below evaluates the fiscal performance with a fabrication quantity of 104,159.01 units
Products retailing at $24.58 and nevertheless, it take $22.95 to manufacture, generating earnings to the tune of $1.63 per unit. This is a monetary profit.
In this case, short-range earnings would be computed as; T R – TC
Where; TR = P *Q
Therefore; $24.58 * 104,159.01
= $2,560,228.47
TC = ATC * Q
$22.95 * 104,159.01
$2,390,449.28
Profit = $2,560,228.47 – $2,390,449.28
$169,779.19
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Business Operations Decision
7. Two (2) ways the firm can improve profitability and deliver more value to its stakeholders.
The significant costs to the firm are increasing energy costs, and raw material. Much as the organization has broadened the operations through brand innovations; the fixed as well as variable costs keep on increasing. The organization should search for strategies of reducing fuel, raw material and packaging expenses (Bragg, 2012). With regards to reducing fuel costs, the firm can use a direct delivery structure regarding scheduled sales and online orders by each client. Consequently, the company may put into consideration other external delivery channels.
Because the firm handles individual client orders, it should it account the use of direct to customer sales as a campaign to fund learning institutions or other entities. Again, the company needs to consider the techniques of minimizing packaging expenses by either converting the material to cryogenic freezing or suitable packaging methods (Routledge, 2008). By and large, the organization should allow employee participation, especially in the identification of reducible expenses and strategies of conducting such identifications.
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Business Analysis of the Movie “Moneyball” Movie Review
INSTRUCTIONS:
The purpose of this assignment is to pull together everything you have learned throughout your business degree – and to provide an integrated analysis. To do this, you need to pick a movie (some examples are provided below) By an integrated analysis, I am referring to analyses of the management, financial, marketing and sales, operations, and other relevant systems inside of the organization. So, you should think about the organization as a system and each of these functions as subsystems of the organization.
Provide an analysis of each system and then how they work together (or do not). The maximum length is 1,000 words and an emphasis will be placed on the specific identification of each subsystem and the interaction between these subsystems. You do not need to provide an overall summary of the movie – only as it relates to understanding the analyses you provide.
Pick of the following movies:
– Boiler Room
– Moneyball
As a teacher, what can you do to support inclusion and promote disability positive spaces?
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Business Operations and Systems
Introduction
B&M is the fastest growing retailer business that has outlet stores on more than 450 high streets in UK and Germany. In the UK for instance, the company offers clients a wide range of FMCG products at reasonable costs. The company’s primary operations objective is to provide customers with an enjoyable shopping experience, premium products and eccentric value to win customer loyalty.
In 2015 the retailer registered an average 2.7 million client transactions on a weekly basis. Zero expenditure on the advertisement is what drives the cost leadership. This paper evaluates operation management for a B&M retail stores in the UK. It looks at some of the challenges the company grapples with in its bid to transition online.
Part 1
Why Customer Turn up to the Stores
Electronic retail establishments’ invest a lot on promotions to gain more clients. The approach is even capital intensive when customers flock online, especially with heightened competition. With this in mind, it would be prudent to comprehend the type of entry for every client to determine the earnings of the marketing efforts. B&M embraces various channels to win customer loyalty including; recommendations, paid search, marketing offers, mobile apps and gift cards among others.
Customer engagement
Clientele involvement is crucial because it aids in determining consumer behavior. To evaluate customer relationship at B&M, it is necessary to use three fundamental dimensions such as mailer response, visitation trend and procurement behavior.
B&M should use mailer response to enhance shopping. Personalized reminders can be employed to attract customers. Close consideration to this will enhance the organisations capacity to capture the most actionable client-related statistics.
Visitation trend: this type of information is one huge playground on which in-depth review can be pegged. This type of data is critical when it comes to helping clients engage with customers (Pettersen, 2009). For computing customer value, defined metrics such as some visits to either particular brands or offers may be employed to project the clients value (Slack et al. 2012).
Procurement Behavior: Autoresponders and the visiting trend can be used to analyze the customer interest. Buying behavior is a reflection of how clients are involved.
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Customer Exit/Churn
It is the dream of every business to retain clients, however, for most online retailers, about 50% of customers will just make a one-time purchase. Some recurrent purchases may also wither over a particular period.
At least one in every four online shopping has failed to reach the client in good time, as such; millions have been forced to put up with late consignments (Retail Week. 2012). While more than 50% of people prefer to make online purchases all for good reasons, about twenty-six percent of online customers have witnessed issues when it comes to delivery of products (Retail Week. 2012). In short, B&M is likely to grapple with the urgency of delivery for online distribution market.
Customer value for online shoppers
People make online purchases not because a given store has some of the most sophisticated technology or impressive media; they buy from these infrastructures because they need solutions to their problems. For sustainable business operations, B&M should help clients resolve problems by offering products that are tailored to solving client problems.
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The Changing Online Value Chain
When transitioning online, the value is altered by a linear flow of physical goods and services to a multi-directional data flow. At every phase of the supply chain, valuable information is collected, evaluated and disseminated to others. Apart from the products and services, the information is critical when it comes to creating real clientele value. While B&M takes advantage of cost leadership it is also essential to understand that customers make purchases not because of cheap prices but for many other reasons such as:
Save time: B&M should assist people to access goods and services promptly.
Minimise Risks: Offer complete data that assist each client in making informed procurement decisions Stock Things they Treasure: Sell products people may want to buy
Status: Develop networks with specialized discounts All these variables are dependent on having the best data about items, services, clients, markets and partners. Gathering, synthesizing and disseminating information in ways clients find essential is a powerful means to value creation.
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Challenges of Online Buying
Buying goods online are convenient compared to visiting a physical store. Also, online buying presents clients the opportunity prices a wide of products. Much of online marketing and security have developed; it is associated with a myriad of problems including buying the wrong product, being scammed on the internet (Slack, Chambers and Johnston, 2004).
Wrong order
When buying online, if a shopper request for a product and get a wrong one, it is the responsibility of B&M to correct the mistake or refunds the customers. Online stores recognise the customer service can either make or harm their operations; therefore, B&M should be prepared to correct this issue if they occur. For instance, they can compensate the cost of shipping.
Nonetheless, on internet auction websites, this procedure is not clear since they act as platforms for connecting shoppers and sellers (Rosemann, 2010). In certain cases, they can provide an online method for addressing delivery of wrong products and act as intermediaries in the procedure. Therefore, for B&M when settling for an online system, it should put in place a resolution center to address issues related to the wrong delivery of products as such errors can adversely affect its operations.
Delayed delivery
With online buying, there are changes of not getting products or delayed delivery. If shoppers fail to get their products within the stipulated time frame, the seller should refund the buyers. As such, B&M will be put in place appropriate models to ensure clients get their orders on time. Furthermore, the store will also be ready to help clients in case the product is not delivered. Nevertheless, if the product is not delivered B&M will provide shipping as well as tracking details; refund or send a replacement.
Under certain condition, an order can be shipped but goes to the wrong address; stolen, or inadvertently left. If such occur, the store will be ready to give resolve such issues. With regards to international customers, when a wrong order is delivered, major online vendors require settling the case in a local court. This is not practical; therefore, B&M will liaise with a store near the clients and replace it with the right one.
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Appropriate operations models (quality/depth).
Delivering products to clients on time and the suitable temperature is an import strategy for B&M’s success. Clients have a higher expectation when it comes to distribution of goods, accuracy and flexibility. B&M has to adopt a window while ensuring that frozen products are stored at the appropriate temperature. There are different operation models including;
Distribution operation; this model is regarded strategic operation for an online entity to perform its delivery channels. It implies that the organisations has total control of the distribution process and can use it as a venue for developing a relationship with clients. B&M can adopt its delivery channels enabling it to provide state-of-the-art in a 2-hour delivery window.
Outsource distribution of goods; B&M can contract a third party like express distribution services. This will help the organisation to delegate the challenging role of scheduling daily routes to an expert, permitting it to concentrate on other parts of the operations.
This model does not investigate infrastructural facilities though it’s flexible if demand fluctuates. Nevertheless, this method is perilous such that B&M outsource a third party firm to control its operations. Additionally, this model provides an opportunity for developing a relation with client.
Third location delivery or click and drive model; the clients make online orders and pick them at particular locations.
These sites can be owned by B&M or particular warehouse or third-party areas such as post office. Third location delivery will allow B&M to save distribution expenses and increase client fulfillment with extra services (Retail Week. 2012). Unattended delivery through insulated boxes: This will enable B&M effectively use its distribution routes. Also, this model is convenient particularly, for clients who are present during childbirth time.
There is no appropriate model, in-store buying model appears effective especially, in small demand sectors, however once the volume increases centralised warehouse technique is efficient. Some stores have realized and are adopting hybrid techniques, integrating in-store model with centralised warehouse technology (Johnson & Clark, 2008). Similarly, stores are experiencing a trade-off between providing convenient delivery services and efficiency.
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Creating Customer Value
There are different ways for the organisation to create value for its clients, especially when buying online. These methods include;
Release trapped value to improve efficiency. Creating value is sufficient where shoppers can quickly find products and at affordable rates. B&M can convert its Saturday parking area into a full-time shopping area. Offering new techniques to perform regular tasks also increase value, for example, providing instant downloads for important details instead sending via post office.
New-to-the-World Value presents new things that clients find not only essential but also valuable. In this case, B&M stores can offer products that meet the needs of the individual client, allowing them to develop groups of shared interests while allowing collaboration between individuals separated by location and time.
Online buying is flexible B&M can test new offers and determine the one the works effectively. Integrations can be applied to interrupt existing pricing strategies and increasing access globally. Regardless, value creation plan, the store can rely on the provision of relevant information to create long-term client value.
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Part 2
Tips: Structure for part two:
Root Definition (based on your chosen solution).
Root definition will be used by the project team, estimators and development managers; they will take the project (online ordering system) from the business manager. Using the necessary technology, expertise, process and develop an understanding of the project and the required costs (Holt, 2009).
This is a significant step as it helps the B&M to examine if the project is viable or not. This will be done within a short period with the assistance from consultants. This procedure is extremely competitive where the suitable bidder is selected based on the performance as well as organisational goals.
Table for CATWOE (this is to test the Root Definition).
This project will include
Customer: in this case, B&M clients
Actors including development manager, project team, estimator, software engineer and business manager. In short these are B&M employees who will manage the online system
Transformation; this will be in the form of processes, knowledge, technology and relevant details about the project. All the aspects are important in preparing a detailed recognition of the project while cost estimation to evaluate the viability of the bid. Why bother? Is vital in examining the probability of making the tender.
Therefore, B&M store should adequately understand the project. In essence, the organisation should determine whether or not the project fits with its objectives, cost and time frame. Owner; this include the project team. The environment includes different factors including organisational objectives, quality, cost, timeline, and competition.
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13. “AS IS” process plan (include brief summer of the process plan).
14. “TO BE” process program (include summary to explain the process plan)
In the “AS IS” process plan the problem is defined based on the clients’ perspective, there will be the challenges of wrong delivery or products and delayed delivery. Therefore, the process will be designed in a way that addresses these problems. In addition, the process will be developed while putting into account the incentive structure of B&M store. For instance, the company will monitor delays and unlawful delivery of products by returning the product to the warehouse.
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When it comes to the cause of wrong or delayed delivery, B&M will adequately assess the current condition with careful consideration of the problem. In the case of additional stages in the delivery process, the firm will eliminate some to fasten the process. After which an improved plan will be designed as shown below;
Part 3
Discuss how the managers would turn performance objectives into operations priorities and the resources that would be necessary for effective implementation of the new process (about six hundred words).
Transforming a strategy into positive outcomes starts with organizing people and practices through actions that are not restricted to strategy formulation, strategic and practical planning, accounting, talent and initiative control, projecting and technology (Heizer, 2011).
The leadership at B&M should implement a deliberate strategy by formulating, scheduling, and strategy control as opposed to depending on informal procedures and worksheets. There’s also the need to link the strategy and operations with an understanding that all areas of the company work in tandem to deliver performance (Marr, 2011).
Handling implementation as a process
The use of a balanced scorecard can help to translate approach into operational reality. Research indicates that the leadership craving for transformation and commitment essential to create and enhance a rigorous performance supervision process enhance the chances of success (Fitzsimmons & Fitzsimmons, 2007).
Strategy development
B&M managers can develop tactics to turn performance objectives into operations priorities. Regardless of the extensive use of management techniques such as balance scorecards, a few managers are skilled in developing a strategy. With a strategy in place, the managers will be able to clearly articulate operational priorities in a given time frame (Holt, 2009). In addition, they will easily galvanise B&M based on a particular as well as measurable strategic direction.
The managers will also use the strategy as a platform for identifying drivers of performance that result in positive outcomes. Besides, managers will be capable of understanding how clients and external environment affect performance while they rigorously examine inherent abilities.
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Translating the strategy
Translation of policy requires that managers use the outcomes and integrate them into a structure such as balanced scorecard. Strategy translation is vital as managers will use it to understand the connections between cause and impact among performance objectives and operations results through a particular structure (Jeston & Nelis, 2008).
This is imperative, as it helps managers to not only identify, but also select and search for portfolios required to prioritise operations. Apparently managers assign responsibility to drive performance against strategic goals while developing an information- acquisition technique to collect metrics (Sachon, 2010).
Structuring
When it comes to structuring, managers control the continuous alignment of the firm by the performance objectives. However, the managers are required to export priorities identified during strategy translation (Jeston & Nelis, 2008). Much as this is vital and challenging move, it requires working in two unique though connected ways. To start with, whether the company is implementing a new process or not, employees should work together and recognise the change.
Managers should be aware of the firm’s strategy and use different methods to ensure that employees understand it (Fitzsimmons & Fitzsimmons, 2007). They also need to align incentives with plan. This is the social component of structuring, where managers persuade the firm to recognise while supporting change.
Moreover, there is a technical aspect of restructuring, which require managers to make sure that different operations work seamlessly. As such, the managers have to align improvement plans using Six Sigma or other performance targets. This procedure is commonly known as cascading and it has to integrate operational dashboard as well as balanced scorecards with strategies associated with the wider strategy of the firm (Rosemann, 2010).
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Plan operations
The top management at B&M should weave initiative control into the budgetary planning process, to ensure strategic investments obtain funding. This calls for the development of an incorporated scheduling procedure that provides a smooth transition from strategic planning to financial planning that is comparatively seamless and harmonized (Simchi-Levi, 2007).
They should employ methods like rolling estimates, model driver transparency to allow on-time allocation (Harrison, 2014). Above all, managers at B&M should leverage the company’s performance and business intelligence applications to support each stage.
Using a Balanced Scorecard, discuss how the business performance can be measured post implementation
Perspectives
As far as the balanced scorecard is concerned, the B&M is examined from four viewpoints, and to develop metrics, collect data and evaluate it based on these perspectives:
The Learning and Growth Perspective
This perception comprises employee training and organisational cultural attitudes connected to both individual and corporate self-improvement. In this age of technological transformation, it is somewhat critical for information employees to be in a continuous learning mode (Kaplan, 2010).
Metrics at B&M can be executed to instruct top managers in channeling training funds where they are needed most (Anupindi et al. 2008). Whatever the case may be, learning and development comprise for the success of B&M. Moreover, learning entails communication among employees that enable them to obtain help on an issue if need be.
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The Business Process Perspective
With this perspective, the top managers can determine how internal business processes run, and whether or not its business processes conform to clientele requirements (Kaplan and Norton, 1996). However, metrics should be developed by those people who understand the business operations, with the organisation’s distinct objectives (Heizer, 2011).
Customer Perspective
When it comes to client perspective, B&M focuses on fulfilling the expectations of customers. These are the main parameters; if the B&M fails to meet clients’ needs, they find other companies, to satisfy these expectations. The poor performance of customer perspective is the main parameter of that can lead to the decline of B&M though the companies past financial records look well. In creating satisfaction metrics, B&M must analyse the type of clients and varieties of procedures used to produce goods and services.
Financial Perspective
Financial information is vital in measuring post implementation. As such it should be timely and accurate as such B&M management should be ready to provide it when needed. There is adequate processing of financial records. With the adoption of the online ordering system, processing will not only be centralised but also automated.
Nonetheless, economic contributes to unbalanced condition compared to customer, business process and learning perspectives (Harrison, 2014). For that reason, financial-based information like cost-benefit and risk assessment information can be integrated to measure adequately business performance.
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Simchi-Levi, D (2007) Designing and managing the supply chain: concepts, strategies and case studies 3rd Int Ed. Boston: McGraw-Hill
Simha, R Magal & Word, J (2009) Essential of Business Processes and Information Systems Chichester: John Wiley and Sons
Slack, N et al (2012) Operations and Process Management: principles and practice for strategic impact third Edition: Pearson
Slack, N., Chambers, S. and Johnston, R. 2004. Operations Management. 4th Success. [online] Available at: http://www.ieseinsight.com/doc.aspx?id=1125 [Accessed: 28th Feb 2016].
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Fair Trade Jewellery
Abstract
This reports aims at establishing the manner in which Fair Trade Jewellery can be mainstreamed. A brief history is described in this paper that clearly looks at the emergence of Fair Trade Jewellery. Additionally, the report also draws an analysis on the challenges the jewelers face in the process of Fair Trade and concludes by giving some thoughtful insights on how this approach may be improved.
Introduction
The purpose of this report is directed towards discovering the manner in which Fair Trade Jewellery can be mainstreamed. The aspect of fair trade Jewellery emerged as one of the responses aimed at tackling the discrepancies that have existed in the current global trade systems that is entirely based on the concepts of free trade. This aspect has evolved to see small organizations buying products from different producers in developing states and selling these products to their acquaintances through a global movement which primarily bases its campaigns of the benefits of such trade networks economies (Alvarado, 2009).
This segment therefore aims at analyzing the manner in which fair trade Jewellery may be mainstreamed or if this aspect of destined as a niche market. Additionally, the section will take an analysis of some of the challenges that jewelers face with the aim of making this a reality.
The Mainstreaming of Fair Trade Jewellery
It is clear to determine the fact that Fair Trade Jewellery offers practicable support directed towards combating the aspect of poverty and approaches that offer structural change on the unjustified trade relations (PR, 2015). The mainstreaming of Fair Trade Jewellery can in this case be depicted as the process of Fair Trade Jewellery economic actors developing approaches aimed at moving from a fully operation of Fair Trade value chain to the increase of operation in conventional market value chain. In achieving the goals of mainstreaming, the introduction and inclusion of product certification is considered, a factor that opens up possibilities for value chains with other mainstream actors.
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A fair approach of trade in this case is one that is characterized by approaches aimed at ensuring that both the social and environmental standards are adhered to, with this considered as an effective approach that ensures the sustainability of the environment and other livelihoods. However, it is essential to also consider the extent at which sustainable use of the environment and sustainable livelihood can be viewed (Jeevananda, 2015).
Fair-trade Jewellery production is one that has several defining elements that include the making of products from different materials. On the other hand, the producer organizations tend to operate in a highly segmented market where products are considered to be relatively expensive and are high in quality with most of the sales of these products done in the Western countries.
Additionally, it is vital to point that organizations that engage in Fair Trade Jewellery have a social mission with profit considered as not the only goal of the operations. In consideration of the aspect of mainstreaming, it is vital to note that organisations are required to comply with the Fair Trade criteria’s (Boyd, 2014). Mainstreaming in this case creates the opportunity for these organizations to increase their sales, spread the risks noted in the industry and learn the different enterprenual skills that come from mainstreaming enterprises.
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Challenges that Jewelers Face
Considering the fact that Fair Trade jewelries sales continue to grow as a result of the growth in new geographical markets, few consumers are in a position to pay the much required for the products, a factor that points out to some of the challenges that this jewelers face (Child, 2015).
It can therefore be argued that since more consumer are not willing to pay the prices for the developed product that would ensure Fair Trade standards are meet within the value chain, then growth in this industry is considered as impossible. On the other hand, several handicraft markets are also characterized by the oversupply and the aspect of poor economic prospects, a factor that has been considered as the reasons why price variables can be viewed in the industry.
Conclusion
This report has clearly discovered that the aspect of fair trade Jewellery emerged as one of the responses aimed at tackling the discrepancies that have existed in the current global trade systems that is entirely based on the concepts of free trade. Fair Trade Jewellery offers practicable support directed towards combating the aspect of poverty and approaches that offer structural change on the unjustified trade relations (Child, 2015).
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The mainstreaming of Fair Trade Jewellery can in this case be depicted as the process of Fair Trade Jewellery economic actors developing approaches aimed at moving from a fully operation Of Fair Trade value chain to the increase of operation in conventional market value chain. In achieving the goals of mainstreaming, the introduction and inclusion of product certification is considered, a factor that opens up possibilities for value chains with other mainstream actors. Some of the challenges that the jewelers encounter in this industry include the, few consumers being in a position to pay the much required for the products.
Jeevananda, S. (2015). Effectiveness of Market Development Assistance Scheme In Handloom And Gems And Jewellery Sectors In India. Scholedge International Journal Of Management & Development, 2(8), 37-50.
PR, N. (2015, December 8). Singapore Jewellery & Gem Fair 2015: A Triumphant Chapter for International Fine Jewellery. PR Newswire US.
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Porter’s Five Forces Model
Introduction
Starting a business or developing an existing business, it is necessary to consider the porter’s five forces to answer questions that may arise from competition. The five porters model help to determine whether a business will be profitable or not when comparing with other businesses within the same field of operation. Magretta (2013) the importance of comprehending the competitive forces and their fundamental reasons, will disclose the base of the market’s present productivity and will provide the procedure for forecasting and inducing competition overtime.
Purpose of porter’s five forces model.
The porter’s five forces study helps a company to comprehend the issues affecting productivity in a given market, help to update judgments connecting to: whether to entre a given market, whether to maximize volume in a given market and developing the competitive strategies, (Magretta, pg. 87, 2013). For example, threat of new entry to a given market is a strong force to the existing marketers in that market.
This is because a market which is productive will attract new entrants and this will eventually corrodes profitability. In order to maintain profitability, the given market will be protected by solid and long-lasting barriers to entry such as economies of scale, patents, government policies or capital requirement. Unless this barriers are implemented, the market will experience a competitive decline rate of profitability.
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Also, the buyer power is a weak force to determine the profitability and competition in a given market. This is because, it is easy for the buyers in a given market to drive the prices down. To do so, several factors such as importance of each buyer in the market, the cost of buyer switching from one supplier to another or number of buyers in the market, (E. Dobbs, pg. 43, 2014). If in a given specific market has few and influential customers, they are in a position to command their own terms.
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FORCE MANAGEMENT: FORM & JUSTIFICATION
INTRODUCTION
Just as it would be in any other organization, there is need to have mechanisms in place to aid in the management of a force. It would be naive to assume that in terms of organizational management, in the context of the forces, there is no need for management. This brief discussion paper aims to enumerate the different aspects of force management and discusses the different bases for the establishment of clear structure for force management. This paper is divided into four thematic areas. There shall be an attempt to ensure that there is synergy in the presentation.
THE PHASES OF FORCE DEVELOPMENT
As rightfully enumerated, force management entails, among other things development of organizational models, determination of organizational authorizations and document organizational authorizations. The three speak to different issues and needs in the superstructure of force management. For instance the development of organizational models comes first because it helps the management have a clear variety of models that can be adopted.
Secondly, the determination of authorization models ensures that there are clear hierarchical structures that can be exploited before an officer gets authorization to deal with a particular issue. This may be as serious as activities in the field of fire or simple administrative decisions at the camp. The last head among the three is the question of document organizational authorizations. There reaches a point where there is need for express and documented authorization for the carrying out of particular tasks.
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This part attempts to highlight the features of the paper on the foregoing. The Paper notes the evolving needs of the army and the USA at large and points out that the same must have an influence on how the United States treats and organizes its army. In a world where the interests of the states remain the same, there is an evolution in the form of the threats that the USA is facing.
This makes it a necessity to change the arrangement after reflection albeit the formation of the army in combat remains the same. The paper spells out the numbers that are already being scaled down be it those in the reserve or those in active combat. Importantly, the report noted the constant state of the government of the United States which is in a constant state of deficit which is intricately tied to the foreign interests of the United States.
In light of the foregoing, turn to the question of which of the three processes is going to be most affected by the issues enumerated by the paper. The paper comes at a time that the force is retreating form war. This is after more than a decade of are in Iraq and we are having the nature of combat in Afghanistan slowly evolving. I submit that the factor that is going to be most has to be the organizational models that are to be adopted going forward. With less direct combat the models of the force are going to change substantially.
This explains the reason why there is an ongoing research according to General Odierno which aims to help the force understand some of the best models that will work going forward.[2] It is suggested by the general that there is a real possibility that going forward, the nature of the military shall take the form of an expeditionary force which will be leaner and more efficient in light of the needs of the time and the overall budget of the united states of America.
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REFORM OF THE ACQUISITION SYSTEM: BETTER AUTHOTITIES AND ACCOUNTABILITY
There is definitely need to reform the force acquisition systems. The CRS Report discusses this extensively and specifically elucidates the issues surrounding question of accountability. The Report notes that the bases for reform range from the increased complexity of the acquisition process, the fluidity of the process which constantly changes thanks to legislative process, the slowly changing landscape of the acquisition process and the persisting costs and low performance.
There have been successful effort of reform. The Example given by Moshe is the Weapon Systems Acquisitions Reform Act of 2009. As noted, this Act did not bring in wide sweeping changes. It was pigeon holed to reform in the area of initial stages of acquisition and this explains why there was the creation of the portfolio of the Director of Cost Assessment and Project Evaluation, Director of Developmental Test and Evaluation, Director of Systems Engineering among others.
It is clear from a keen reading of the Act and its provisions that the intention of Congress was to insulate the government form faulty acquisitions of weapons which may fail after a lot of expenditure is incurred to purchase them.
However, a more important area of reform is what Moshe terms establishment of authority and accountability in the process of acquisition. In this area, we need to allow those persons with responsibility to be given the lee way to do what they are expected to do. For instance if a person is given the responsibility to deal with analyzing the potency of a particular product being purchased form a particular supplier, there should be a framework within which he is allowed to do so with little interference.
The problem we have currently is that ta large number of people can say no to the execution of diverse mandates regardless of how insignificant the said mandate is. In this case, we end up having bottlenecks on the form of bureaucracies. Ultimately, the process of acquisition is made slower and more costly. Suppliers would then rather deal with others or in more efficient markets and products.
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NEWLY PROPOSED INTEGRATION MODEL AND THE CHALLENGES THAT ABOUND
The lapse of a phase of war has necessitated the rearrangement of the outlook of the army to suit the changed times. The new model is based on the resource priority list which has, a priori, evolved with the times. As mentioned by General Ordieno, the budgetary constrictions require that the army strategizes on how it can continually have its presence felt effectively in the new era without drastically reducing its capacity and capabilities as one of the most lethal and well equipped armies in the whole world. A new outlook is being proposed.
According to the 2013 Army Strategic Planning Guidance, the aim is to sustain the capability of the army to meet its current and emerging combatant and commander requirements. A keen analysis of the proposed changes show that there is a greater preference for an army that strikes a balance between its active and reserve troops in a model that can actively deploy the said armies rapidly and flexibly. This new model deals with the question of excess costs which are often not required in times when there is heightened sensitivity on issues of budgetary allocations.
The new model will consist of a mission force pool, a rotational force pool and an operational sustenance force pool. The mission force pool is a force that is ever ready and is properly trained for combat for instance the 20th Support Command which will be maintained at the highest readiness level. The second pool will be manned and be fully equipped. These units move through the Reset, Train/ Ready, and Available cycles in preparation for a rotation into a known deployment.[5] The last category will not be fully equipped as those already deployed as the preceding two categories. They will be trained based on available training days.
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The challenge as noted by Odierno begins with proper financing of all these categories. Certainly, having a typology that only mans and equips according to need is efficient and sustainable only to the extent that there do not arise situations which overwhelm and require rapid deployment leading to an exhaustion of the standing and current combat battalions. An example is that troops such as the Calvary Regiment at the National Training Centre may end up being overwhelmed in case they are suddenly required for deployment.
RELIANCE ON COTRACT SUPPORT
I think that it is right for the army to reduce its reliance on contract support. As rightly pointed out by General Odierno, these are times when the overwhelming need for such contracts during the Iraqi and Afghan wars have reduced. The buildup in terms of orders that were put to the army reached unprecedented levels and it might be wise if the reliance on such contacts is cut down. The supply of goods and services on the basis of contracts cannot possibly be done away with entirely. However, to increase efficiency and cut down on expenditure it is a wise move to continue the reduction efforts.
Foremost, this will cut down on costs if the army personnel are properly equipped to deal with the issues of supply and demand themselves. This may take the form of equipping them with skills to maintain our systems. The officers better understand the needs of the army and in the event they are properly trained to deal, there will be a reduced rate of error and the civilians will be allowed to deal with civilian affairs.
Secondly, over the period, it has been discovered that some of those tasks were inherently public functions and could be better performed by army civilians as opposed to private individuals. This saw the conversion of thousands of portfolios into state jobs which however the same period has cut down operation costs by over 13%.
HQ, Department of the Army G8, Army Equipping Guidance 2013 through 2016 (Washington, DC: HQDA, 20 June 2013), 18-19
Statement of Moshe Schwartz Specialist in Defence Acquisition Before the Committee on Armed Services, Twenty-Five Years of Acquisition Reform: Where Do We Go from Here 29 October 2013. (On file with author)
[3] See the Statement of Moshe Schwartz Specialist in Defence Acquisition Before the Committee on Armed Services, Twenty-Five Years of Acquisition Reform: Where Do We Go from Here 29 October 2013. (On file with author)
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The next superpower of manufacturing economy
Over a period of many years, China has held its position as the world superpower of the manufacturing in the general merchandise sector. This is due to the rapid and dynamic growth in its economy, building focus in the world demand for manufacturing products and services. The country’s population, political stability and consumer interest and pattern can be explain its position as the world superpower of manufacturing in general merchandize. The country is however experiencing stiff competition from India, one of the world’s rapidly growing country economies.
India has in the past twenty years rapidly increased its share in the manufacturing industry. The country has recorded positive improvement in its gross domestic product (GDP). India just like China records one of the highest populations in the world (Ghemawat & Hout, 2016, p. 86). This offers a vast market for consumers and traders in the region. The country has taken advantage of its growing population to invest in merchandise market development. This has posed a significant threat to China’s position as the world superpower in the manufacturing industry.
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Subsequently, it can be argued that India is rapidly rising into the next superpower after China through their shift in development of technology (Gupta & Wang, 2009, p.25). The country is facing a drastic change in the industrial revolution through adopting a modern forms of technology applied in the manufacturing industry. This has increased their overall business performance.
India has tightened its grip in both the private and public sector, embraced trade liberalization and increased their involvement in foreign direct investment (Xingxing 2015, p. 685). This has primarily improved the manufacturing industry of India, making it a viable candidate as the next superpower after China.
Furthermore, the rapid expansion of information technology in India has accounted for the growth of commerce, business services, and banking. Moreover, India has gained an international reputation as an IT enabled center of the world. This has increased its global position in the e-commerce sector, improving its strength in the manufacturing industry globally.
In addition, India is experiencing growing investment rate, with an average of thirty-two percent compared to that of China at thirty-five percent (Mahtaney, 2007, p. 2455). This rate is set to project in the next year and India could surpass China’s the rate, making it the world superpower in the manufacturing industry.
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China is facing a significant challenge in their population, as a large percentage of the population is set to experience old age in the future years. This is bound to affect its general labor output, unlike that of India which is strengthening. India has a demographic surplus of younger generation increasing their task force in the manufacturing sector (Takeuchi, Chen & Lam, 2009, 86). The growing generation is also experiencing the best form of education, expanding their expertise in the sector. Based on these projections, it is predicted that India may overtake China as the current superpower in the manufacturing industry.
Reference List
Ghemawat, P, & Hout, T 2016, ‘Can China’s Companies Conquer the World?‘, Foreign Affairs, 95, 2, pp. 86-98, Academic Search Premier, EBSCOhost, viewed 30 March 2016./
Gupta, A, & Wang, H 2009, Getting China And India Right: Strategies For Leveraging The World’s Fastest-Growing Economies For Global Advantage, San Francisco: Jossey-Bass, eBook Collection (EBSCOhost), EBSCOhost
Mahtaney, P 2007, India, China, And Globalization: The Emerging Superpowers And The Future Of Economic Development, Basingstoke [England]: Palgrave Macmillan, eBook Collection (EBSCOhost), EBSCOhost
Takeuchi, N, Chen, Z, & Lam, W 2009, ‘Coping with an emerging market competition through strategy-human resource alignment: a case study evidence from five leading Japanese manufacturers in the People’s Republic of China’, International Journal of Human Resource Management, vol. 20, no. 12, pp. 2454-2470. Available from: 10.1080/09585190903363763.
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Transocean Strategic Management
1.0 Introduction
The paper will evaluate the strategic position of Transocean, a major player in global offshore drilling services in the oil and gas industry. Strategic management is a process that entails formulating and implementing main objectives as well as initiatives a company takes based on the available resources. It also takes into consideration the evaluation of external and internal environment in which the firm operates.
Founded in 1953, the company is headquartered in Houston Texas. Transocean administrative division has since shifted to Vernier, Switzerland for tax and client servicing reasons. Various models such as STEEPLE, Ansoff and Porter’s Five Forces will be used to paint the company’s strategic position when it comes to, macro-environmental review, competition, diversification strategy, market development, product development and market penetration. To wrap up, the paper will make recommendations regarding the direction the company has to take to remain sustainable.
1.1 Analysis of Transocean Limited
Transocean is a prominent global provider when it comes to offshore drilling services for energy establishments. The company owns and operates the world’s most multipurpose flotillas that concentrate on deep-sea and extremely harsh environment drilling (Deepwater.com, 2016). With a fleet of sixty-one portable offshore drilling components, the company offers powerful rigs for deepsea drilling. Transocean helps clients to establish and develop oil as well as natural gas stockpiles.
The company offers an exceptional drilling performance that is anchored in a solid experience that spans more than a half a century. Transocean shares are listed on the New York Stock Exchange under the acronym RIG and Swiss Stock Market under the acronym RIGN.Transocean operates more than 140 offshore rigs in almost all mainmarine markets. Apart from offering drilling services offshore, the company offersdrill management services globally. Transocean operates not just the largest extreme-deepsea flotilla of drill ships global, but it is also the largest offshore fleet worldwide.
The company hires more than 20,000 employees with the technical expertise that is the envy of their business rivals(Deepwater.com, 2016). Moreover, Transocean provides management and accomplishment services for assessment and production firms regarding offshore drilling schedules. The company’s mission is to become a leading offshore drilling organisation that provides rig-based services with a global reach, by incorporating a highly dedicated workforce,state of the art machinery and ultra-modern technology, while concentrating on technically demanding environments (Transocean, 2007b)..
The company is dedicated to values that represent its focus, innovativeness, safety, trust and reliability. The company promises to surpass not just the anticipations of theclient, but employees and shareholders as well (Deepwater.com, 2016). Transocean’s strategic goals include getting aligned with its customers when it comes to supporting and ensuring delivery of clients’ business objectives.
The company conducts its operations with distinction which is characterized by safety and efficientoffshore solutions (Deepwater.com, 2016). In addition,Transocean keeps on enhancing its corporate culture and processes to optimize returns. Lastly, the company not only attracts but also nurtures and retains the industry’s best employees.
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2.0 Industry Trends
Drilling oil and gas was previously dependent on backlogs. Contract bores alter their rates based on their rig charges relative to retailing oil and gas prices. Usually, contract bores tend to wait on the day down, and speedily adjust their prices upwards depending on how the markets are performing (Redall, 2012). There has been a widespread pattern of extreme deepsea rig business with strong daily charges.
However, there has been a downward trend in mid-water rig markets. The most lucrative market lies of the Gulf of Mexico and West African coastal line, down to the south of Africa. The demand for deep-sea rigs is anticipated to remain jerky in the short-term(Helman, 2015).As of now, approximately 206 floaters are operating under contract across the industry (Deepwater.com, 2016).A large percentage of the total number is idle for completing major contracts.
3.0 Analysis the different types of strategic options
3.1Ansoff Matrix:
Existing Markets
Market Penetration
Product Development
New Markets
Market Development
Diversification
Existing Products
New Products
Transocean is a dominant player in a market that is not highly saturated. However, to remain at an edge over its closest business rivals, the company has adopted different approaches. Based on the Ansoff matrix, Transocean has been using a low pricing model to penetrate the market. When it comes to market development, Transocean has been offering ultra-deepsea drilling and management services in various parts of the world. What makes the company the envy of its business rivals is the fact that Transocean’s product development strategy works magic. Apart from ultra-deepsea boring services, the company offers rig and deepsea drilling consultancy services which is certainly some form of diversification hence competitive edge.
In short, Transocean operates in the same market by adopting a horizontal strategy in terms of expanding the product line. Lastly, Transocean has a predominantly diversified portfolio. To diversify risks, the company has necessitated mergers and acquisitions when it comes to financial management and technical expertise. The company operates in various regions such as the United States, the Gulf of Mexico, the North Sea, West Africa, and Southeast Asia, Middle East and the Arctic.
3.2Porter’s Five Forces
3.2.1Competition
Transocean threat of competition is moderate to high. For example, following a merge in mid-2007 between Rig and Transocean’s chief rival Global Sante Fe, this attempt reduced competition particularly, in ultra deep-water segments. While Transocean has almost a monopoly in ultra deep-water drilling, It is likely to enjoy less competition in ultra deep-water, especially in harsh climates that require technical personnel.
In fact, this contributed to the need for anti-trust lawsuit following the merger between RIG and GSF. Nonetheless, the firm has exposure to different offshore markets such as jackupsegment that is associated with intense competition in various regions globally as well as pricing (Porter, 2008). By and large, the organisation has less competition in ultra deep-water segments, with a somewhat intense competition in mid-water floater and also jackup segments.
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3.2.2 New entrants
Transocean enjoys a low threat of new entrants. With respect to offshore contract drilling sector, it requires huge investment in fleet and rigs before getting inflows from gas and oil organisations (Porter, 2008). This makes nearly impossible for new firms to enter this sector.
3.2.3 Substitute
The main threat of substitute is the changing the energy source from hydrocarbon to renewable sources across the world, which is not likely in the short-run (Turner, 2007). Therefore, the threat of substitute is low.
3.2.4Purchasing power
Transocean’s purchasing power is moderate. Much as exploration and production firms have power when it comes to negotiating, especially in mid-water floaters and jackupsegments, they have sufficient ability and provision of idle rigs. In essence, the buyers are in aposition to negotiate low daily rates in the contracts while ultra deep water segments maintain stringent rates (Schlumberger, 2008).
3.2.5Suppliers’ power
The supplier power is moderate. Transocean providers have some degree of power. For instance, suppliers like National Oilwell Varco take part in the decision making in constructing Transocean’srigs andother essential parts. Luckily, this is crucial for Transocean since National Oilwell Varco has a few plans of increasing the fleet of drillships. In general, benefits from pricing since they are the main clients to themajority of their specialised providers (Porter, 2008).
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3.3 STEEPLE
3.3.1 Social
The organisation takes part in various social activities, including charitable contributions to developing environmental initiatives to increase its reputation.
3.3.2 Technological
Technology is necessaryfor drilling sector as such Transocean gets its strength in technological development. While oil drilling and the ecology are related, so is technology and demand. Drilling in deepwater is more and more vital from drilling organisations since they are considered to be more profitable. The firm is positioning itself to capitalize in this segment. For instance, in 2007, Transocean acquired a drillship worth USD 470m to take advantage of deep-water drilling, which allows the firm to drill up to ten thousand feet.
Due to advanced underwater drilling, there has been a decrease in jackup rigs demand (Associated Press, 2007). This presentsTransoceanwith the opportunity to beat their rivals like Noble Corporation in the struggle for innovation. Currently, the firm is leading in deep-water exploration (Katsaros & Christy, 2005).
3.3.3 Economic
Cost is a major challenge for drilling organisations. As oil price rises, the cash flow increases too, which makes organisationsinvest considerably in drilling activities? Furthermore, the new techniques of recovering oil though they are essential in the growth of petroleum production, are leading to an increase in the gasoline price. Implicitly, thehigh price of oilis required to make drilling firms profitable. High global investment drives drilling.
With great interest to drill in foreign regions, global investors are significantly investing, hence leading to expansionof oil and gas sector (Maksoud, 2007).Even though raising oil cost will adversely influence Transocean, in reality, will be beneficial in the long run. Oil cost is inelastic. In other words, afluctuation will insignificantly affect demand. Therefore, increasing oil prices willboost cash flow for Transocean, which means additional business like funding new drilling projects.
3.4.4 Environmental
On environmental protection, Transocean is committed to enhancing its stringent police on Environmentalmanagement system (EMS). Transocean’s EMS visitation is conducting its operations in a standardised manner that fulfills the high levels of stipulated laws to drive continuous enhancements while instilling ownership across its facilities (Transocean, 2007a). The organisation is environmentally sustainable by way of using green products and assessment is utilized as part of routine operations.
The firm also focuses on recycling. Additionally, Transocean has set up a recycling plan, where recyclables are sorted and compressed in rigs. After compression, they are transported to Tech Oil Products and donated to a recycling hub in the ARC of Iberia.
Transocean has collaborated with different oil and gas firms such as Subsea 7, and BP in the SERPENT project. Thisentails necessitating access to the installations, in partnership with their customers to present scientific knowledge to experts in the SERPENT project (Dictionary.Cambridge 2012). In turn, the analysts conduct various projects including assessing biodiversity and effects of drilling on the environment.
The analysts also work on the company’s rigs to study marine species (Transocean, 2007a). By and large, Transocean protects the environment in which it operates to demonstrate that the company recognises the consequences of natural demand shifters.
3.4.5 Political/Legal
Oil presents this organisation with a strong political force. Because oil is the primary source of energy internationally, thus, the supply of oil is related to power regardingpolitics; oil firms leverage authority over regimes (Dictionary.Cambridge 2012). With no oil organisations, United States is likely to lose its dominance in developing nations remarkably. Though oil drilling firms are fundamental in giving regimes the authority, they are still regulated and work as per government laws, such as prohibiting drilling in particular regions like the Gulf of Mexico to protect the environment.
In 2007, the Congress was promoting the closure of a quarter-century ban on the production of offshore energy. This decree banned 85 percent of all drilling in United States’ continental shelf, greatly affecting oil drilling firms including Transocean (Kamalick, 2007). Furthermore, the Congress were supporting the opening of additional shorelines, which was associated with renewable sources of energy, as such they sought for support from environmentalists. While regimes exercise their authority on oil and gas providers, these providers, in turn, have authority over the very regimes.
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3.4.6Ethical Standards
Transocean aspires to ensure financial discipline in their disclosure, honesty and candor in all their engagements with clients, ahigh esteem for employees, customers and suppliers, the safety of employees, property and the ecosystem and technical leadership. Loyalty to these core values demands the company to execute its operations in tandem with thelaw and the utmost standards of business ethics.
In advancing that objective, the company embraces the Code of Business Conduct and Morality, the firm’s environment is also a corrupt free zone and an Anti-Corruption and Business Conduct Policy takes care of that. Again, directors and employees are not allowed to enhance the culture of inside trading. Nonetheless, all employees should adhere to the privacy policy.
4.0 Recommendations
Since oil is directly associated with international authority, oil drilling organisations have authority over regimes, nevertheless, with another alternative, Transocean should continuously go this direction to maintain the lead if the primary source changes
Much as the company has advanced drillship tools, it should take a notch higher by researching new products in comparison to its rivals.When it comes to maintaining competitiveness in oil and gas industry, Transocean should use differentiation strategy that will be vital in developing clients’feedback and service delivery. The differentiation strategy should focus on quality rigs, particularlydeep-water drilling and ability to survive environmental disasters such as hurricanes.
While this threat of substitute islow, in future it may reduce the demand for oil. For that reason, Transocean should create awareness among clients about the benefits of oil in comparison to other energy sources. This can be carried out through advertisements. For instance, the organisation should use ads that demonstrate even with the use of alternative sources such as ethanol, which is considered environmentally sustainable compared to oil. Ethanol requires aconsiderable quantity of biomass. In the even that US, ethanol from corn is employed on a large scale, then it will contribute to increased costs of corn.
The prices of beef will also skyrocket remarkably as cows feed on corn products. On the other hand, if Brazilian corn is used thatis produced from sugar; rainforests in the region will be cut to provide land to grow sugar. Creating awareness through ads will help Transocean increase the demand for oil while increasing the demand for petroleum products from the company.
The company should embrace Ansoff model to diversify its portfolio. Instead of concentrating on drilling and consultancy, the company can take a leap of faith and venture in other business like marine transport, finance, healthcare, real-estate, heavy metal processing among others. Diversification is critical because it will help the company spread risks, when oil business is at its low.
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5.0 Conclusion
The study set out to evaluate Transocean position in the offshore drilling services. The company’s background, values and strategic goals were highlighted at the outset. To understand the company’s product and market development; market penetration and diversification, the Ansoff Matrix was used. The Porter’s Five Forces were employed to establish the intensity of the competition. However, STEEPLE model was used to evaluating the company macro-environment. In the end, the paper touched on the best practices as assured by ethics codes. Recommendations were made regarding the corporation’s future.
6.0 Bibliography
Associated Press 2007. JP Morgan Securities analyst upgrades GlobalSantaFe, Transocean to “neutral.” Retrieved 17th March. 2016 from Factiva.
Berman, A. 2007. Drilling advances. World Oil, 19. Retrieved March 17, 2016 from Business Source Premier Database
Deep Sea Drilling Project 2015.” The Columbia Encyclopedia, 6th ed.. 2015. Encyclopedia.com. 17 Mar. 2016 <http://www.encyclopedia.com>.
