Verizon Strategic Analysis Essay Example

Verizon Strategic Analysis Paper Verizon Mission Statement With the use of pro-formal balance and income statements, detailed ratio analysis and industry trend tracking we hope o increase share holder wealth while expanding our market share and bringing innovative new products to the consumer. B. Existing Mission Our Nilsson at Verizon Is simple, to be the best and only choice for consumer telecommunication needs. C. Existing Objectives Big changes are happening in the way people communicate, as innovative technologies reshape consumer behavior around convenience, ease of use and instant gratification. With wireless phones, e-mail, instant messaging and the Internet, customers have a range of choices for connecting to people and information. The changes in technology are affecting more than Just phone calls and ext messages. For example, you no longer have to Walt days to mail pictures of your vacation to friends and family you can now share your experiences Immediately using a camera phone or a broadband computer connection. The twin phenomena of increased mobility and broadband availability are restructuring industries and transforming our society. Nearly two-thirds of all American homes now subscribe to both wireless and hireling services, and wireless calls now outnumber calls from traditional hireling telephones. As a measure of the popularity of camera phones, Verizon Wireless customers sent or received more than 30 million stricture messages in just the last three months of 2004. Finally, online usage has grown significantly in the last few years, as 70 percent of U. S. Households now have access to the Internet, and over one-third of those homes are served with a broadband connection. As Americas broadband appetite increases, so too will the sophistication of a new generation of digital devices. Soon, the ability to communicate will be embedded in most electronic devices and will become an essential part of major home appliances. We will write a custom essay sample on Verizon Strategic Analysis specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Verizon Strategic Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Verizon Strategic Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer To meet these escalating demands for communication, Verizons new wireless and fleer broadband technologies have the o provoke our customers Walt all ten Downtown n teeny wall need Tort years to come. As new high-capacity applications continue to become an integral part of our daily lives, Verizons premier communications services will deliver the speed, mobility and control our customers need to stay connected. By providing these services, we enable our customers to enjoy the rich communications experiences made possible by converging technologies. D. Existing Strategies Revenue Growth Our emphasis is on revenue transformation, devoting more resources from traditional services, where we have been experiencing access line shoes, to the higher growth markets such as wireless, hireling broadband, including digital subscriber lines (DSL) and fiber optics to the home (Verizons Bios product), long distance and other data services as well as expanded services to enterprise markets. In 2004, revenues from these growth areas increased by 20% compared to 2003 and represent 53% of our total revenues, up from 47% of total revenues in 2003 and 43% in 2002. Verizon reported consolidated revenue growth of 5. 7% in 2004 compared to 2003, led by 23. 0% higher revenue at Domestic Wireless and 7. 4% total data revenue growth at Domestic Telecoms. Verizon added 6,294,000 wireless customers, 1,240,000 DSL lines, 2,337,000 long distance lines and more than 750 Enterprise Advance sales in 2004, meeting its revenue objective of $250 million. Operational Efficiency While focusing resources on growth markets, we are continually challenging our management team to lower expenses, particularly through technology-assisted productivity improvements. The effect of these and other efforts, such as the 2003 labor agreements and voluntary separation plans, has been to significantly change the companys cost structure. At December 31 , 2002, Verizon had 226,000 employees compared to 202,000 at December 31 , 2003. Domestic Telecoms salary and benefits expenses declined by approximately $1 billion in 2004 compared to 2003 as a result of the voluntary separation plans. Workforce levels in 2004 increased to 210,000, driven by wireless and hireling broadband growth markets. Capital Allocation Verizons capital spending continues to be directed toward growth markets. High-speed wireless data (EVADE), replacement of copper access lines with fiber optics to the home, as well as voice over the Internet (Poi) and expanded services to enterprise markets are examples of areas of capital pending in support of these growth markets. In 2004, approximately $900 million of capital spending at Domestic Telecoms was reallocated from traditional products to growth products. Cash Flow Generation The financial statements reflect the emphasis of management on not only directing resources to growth markets, but also using cash provided by our operating and investing activities for the repayment of debt in addition to providing a stable dividend to our shareowner. At December 31 , 2004, Verizons total debt was $39,267 million, a decrease of $6,113 million from $45380 million at December 31, 2003. Recommended Mission and Vision Statement Verizon Communications Inc. NYSE:VS.), a DOD 30 company, is a leader in delivering broadband and other wire line and wireless communication innovations to mass market, business, government and wholesale customers. At Verizon innovation and being on the forefront of technological advancements insures Verizon Wireless operates Americas most reload wheelers network. Verizon Business operates one AT the most expansive, wholly-owned, global IP networks. Verizon Telecoms is deploying the nations most advanced fiber-optic network to deliver the benefits of converged ammunitions, information and entertainment services to customers. Based in New York, Verizon has a diverse workforce of more than 252,000 highly trained and dedicated employees. The Verizon commitment is to put our customers first by providing excellent service and great communications experiences. This is what we do and this is why we exist. By focusing on our customers and being a responsible member of our communities, we produce a solid return for our shareowner, create meaningful work for ourselves and provide something of lasting value for society. As a result, Verizon is recognized as a great company. In order to keep this commitment, we always honor our core values. Integrity is at the heart of everything we do. We are honest, ethical and upfront because trust is at the foundation of our relationships with our customers, our communities, our stakeholders and each other. We know it is critical that we respect everyone at every level of our business. We champion diversity, embrace individuality and listen carefully when others speak. We hold ourselves to a very high standard of performance. We prize innovative ideas and the teamwork it takes to make them realities.

The Relationships Between Cost Management and Quality Management

The Relationships Between Cost Management and Quality Management The Relationships Between Cost Management and Quality ManagementThe relationships between cost management and quality management are an interesting one. Everyone in this world is a consumer of some sort. We all buy things and we all want only the best products for the best price. But, where is the line to be drawn for how much do we pay for quality? Most competitive companies have goals to put out the best product for the best price. They have many different slogans such as "quality is #1" or "customer service is #1." But how much should a company spend on quality before it starts to cut into profit.Quality ManagementQuality management is one of the hardest jobs of a manager to control. The goal behind good quality management is improving business processes, optimizing the performance of your business, and maximizing profitability. By definition, quality is a degree of excellence, superiority in kind.English: Quality management. Franà §ais : Managemen...(Mish p. 963) And management is defined as the conducting or supervising of something. (Mish p. 722) This leads us to the definition of quality management being the supervising of a degree of excellence. Most companies aim to achieve a certain degree of excellence without going over budget. Many managers out there feel that being overly intricate in their quality inspections is a good way to be a manager. However, after the first few times an employee has completed the same task there should be an understanding by the employee as how to handle their job correctly. If a manager becomes too involved in the processes in production, they begin to lose their management appeal and start to become a production employee. Many companies, such as the producer of tiny microchips, Sawtek in Orlando, FL, have a specific position for quality checks. Once the product is at...

An Introduction To DNA

An Introduction To DNA DNA (deoxyribonucleic acid) is the genetic material of eve living organisms including some viruses. It is a dimer consists of two strands that immerse upon each other and appear as a double helix that are linked together covalently with each other. Each strand is made up of similar repeating units called nucleotides. Each nucleotide composed of three different moieties,a 2-deoxyribose sugar,a phosphate group and a nitrogenous base. 1.1.1 2-Deoxyribose sugar The 2-deoxyribose sugar, a major structural component of DNA is a cyclic molecule .The sugars are joined together by phosphate groups that form phosphodiester bonds between third and fifth carbon atoms of adjacent sugar rings.The 5†² carbon of deoxyribose sugar is attached to the 3†² carbon of the next, and make a network of 3†² carbon and 5†² carbon.5’end of a DNA molecule is characterized by a free phosphate (P) group and the 3†² end is characterized by a free hydroxyl (OH) group. It lacks an hyd roxyl group at the 2 position as in a ribose therefore a sugar moiety is a 2-deoxyribose. Two free hydroxyl groups are also located on the 5 carbon and 3-carbon of 2-deoxyribose sugar.These hydroxyl groups give a DNA oligomer its designation of 5 and the 3 end(usually accent as â€Å"three prime end† and â€Å"five prime end†). 1.1.2 Sugar-Phosphate backbone The 2-deoxyribose sugar and a phosphate group forms the backbone in the DNA which are highly polar and defines directionality of the molecule. The polar hydrophilic back- bone is surrounded by a core of hydrophobic bases and is important for the stability and structure of DNA. The phosphate groups have a negative charge that gives a concentra- tion of negative charge on the backbone of DNA and also makes DNA,a negatively charge 5 1 Fundamentals molecule. The charge is also neutralised by DNA-binding proteins that contain the pos- itively charged amino acids lysine and arginine, which are attracted to the negatively charged phosphate backbone. See Fig. 1.1. Figure 1.1: DNA backbone 1.1.3 Nucleic acid bases DNA contain four different nitrogenous bases that make monomer of one nucleotide different from other. These bases are adenine (A), thymine (T), cytosine (C), and gua- nine(G). The bases come in two categories pyrimidines and purines. Larger nucleic acids adenine and guanine are members of a class of doubly ringed structures called purines while the smaller nucleic acids cytosine and thymine are members of a class of singly- ringed chemical structures called pyrimidines .A six-membered ring with two-nitrogen molecule formed a pyrimidine structure whereas purine is produced by a nine-membered, ring with four- nitrogen molecule. Each unit of the ring constructing the base is numbered to for specific identification. They are arranged in a particular order along the backbone of DNA to make a long chain of varying sequence that contains the code for proteins.The sequence specifies the exact genet ic instructions required to create a particular organism with its own unique traits. 6 1 Fundamentals 1.1.4 Base Pairing in DNA The nitrogenous bases are responsible to form double-strand of DNA in consequence of weak hydrogen bonds and have specific shapes and hydrogen bond properties. The three hydrogen bonds form between guanine and cytosine and then denoted as G.C or C.G,depending on which is associated with the first strand. Similarly adenine and thymine also bond exclusively by pairing of two hydrogen bonds and then denoted as A.T or T.A. This coupling up of nitrogen bases termed as complementarity.,A hydrogen bond donor need an equivalent hydrogen bond acceptor to form a hydrogen bond in the base across from it. Purines are only complementary with pyrimidines because molecules in pyrimidine-pyrimidine pairings are very far from each other that doesn’t makes the hydrogen bonding to be established. Purine-purine pairing are energetically unfavourable because the molecule s are too close and create an electrostatic repulsion. The only possible pairings are GT and AC. Primary and secondary amine groups or hydroxyl groups are common hydrogen bond donar while carbonyl and tertiary amines are common hydrogen bond acceptor groups. There are two hydrogen bonds between an A:T base pair. One hydrogen bond lie between the 6†² primary amine of adenine and the 4†² carbonyl of thymine. The other hydrogen bond form between the 1†² tertiary amine of adenine and the 2†² secondary amine of thymine. On the other hand,G:C base pair has three hydrogen bonds. One hydrogen bond lie between guanine with its 6†² hydrogen bond accepting carbonyl and cytosine having 4†² hydrogen bond accepting primary amine. The second hydrogen bond also formed between guanine on 1†² secondary amine and cytosine 3†² tertiary amine and the third formed between the 2†² primary amine on guanine and the 2†² carbonyl on cytosine.

Creative and innovative management Assignment Example | Topics and Well Written Essays - 7000 words

Creative and innovative management - Assignment Example Innovation changes knowledge, creativity and ideas into extraordinary value and competitive gain. Creative and innovation always makes an organisation to differentiate itself from its competitors. For instance, innovation or creativity need not always results in a new service or a new product. By adopting an innovative techniques, Rent-a-car, a leading rental car operator in USA is able to differentiate itself from its competitors like Avis, Hertz, National and Budget. Facing a stiff competition from the above competitors, Rent-a-Car is able to vie its competitors through introducing an innovation in its business channel, model and customer experience by emphasising on a differential user need where a customer can drive a car by himself when his car is under repair. Rent-a-car established a channel with vast network of both the neighbourhood and local offices and banked upon a unique business model where insurance companies will be paying the major share of the rentals. This innovati ve business strategy facilitated the customer to hire a car and drive by himself for any purpose ending in a diverse customer experience. The outcome was that these innovative strategies enhanced the revenue of Enterprise Rent-a-Car company annual revenue from just $1 billion in 1995 to $11.9 billions revenue in 2013 thereby pushing down the earlier market leader Hertz far behind it. Bill Gates , the founder of the Microsoft Inc, employed creativity , ingenuity , enthusiasm and long-term vision for personal computing, which has pushed Microsoft to advance sustainably and to enhance the available software technology and made strong efforts to make the personal computer cost-effective , less cumbersome and more convenience for the people to use. Microsoft’s revenue stood at $86,833 millions in 2014 and $ 77,849 millions in 2013. Bill Gates initially started his career

The Importance of Law Enforcement Article Example | Topics and Well Written Essays - 750 words

The Importance of Law Enforcement - Article Example As quoted by Schuster (2007) from the American Judicature Society, â€Å"misidentification by the eyewitness was the leading cause of wrongful conviction in more than 75% of the first 183 DNA exonerations in the United States†. From this statement, questions arise on the effectiveness of the methods used by the police in letting the eyewitness identify suspects from photographic and live lineups that are commonly used in the US police departments. There are two kinds of lineups: simultaneous and sequential. In a simultaneous lineup, the eyewitness views all the people or photos at the same time, while in a consequential lineup, people or photographs are presented to the witness one at a time. Both lineups have their disadvantages. In the simultaneous lineup, most preferred by law enforcers, Schuster (2007) quoted that witnesses use â€Å"relative judgment† rather than their memory. This means that they just compare the lineups with each other and choose the one that closely resembles the perpetrator. This becomes a problem most especially when the perpetrator is not present in the lineup because the eyewitness can just pick anyone that closely resembles the perpetrator. In a consequential line-up, on the other hand, a decision should be made about the current lineup before moving to the next. As such, the eyewitness oftentimes relies on the use of â€Å"absolute judgment† in which witnesses compare each lineup on what he or she thinks the offender looks like. Aside from the disadvantages, Schuster (2007) also quoted variables that can affect the outcome of police lineups. These are the pre-lineup instructions given to the witness, the physical characteristics of the fillers, similarities or differences between the witness’ and suspect’s age, race, or ethnicity, and incident characteristics such as the use of force or weapons.

Personal experience at Real Estate Development and Investment Essay Example for Free

Personal experience at Real Estate Development and Investment Essay It was either to be a blessing or cursing. I had just come from the university as a fresh graduate. Job insecurity is a thing that sends chills of tremor down the spine of each graduate. Thank goodness this never happened with me but a new challenge was ahead. The firm which I was operating was quite meticulous in its activities; was I to be their down fall as an omen of failure. No certainly I must work breath out of me to sustain or even improve if there was anything to improve. The workplace was the carrot to reward my personal and professional development or a cane to spank my etiquettes. This was what I was up to when I joined the Real Estate Development and Investment, in Chicago. In customer care office, there were new and old problems which were brought to our attention by the clients. This is when I recognized the question which was posed to me during the interview. The question was what I would do if the length of my tie varies interchangeably during the course of wearing it. Certainly here I was dealing with two anti-parallel problems brought forward by the clients. There were those who wanted new residential houses while there were those in pursuit of selling their houses. With time, I believed that my solid performance would improve. I remember the day a client came complaining we have delayed to find a potential buyer of her house. The lady was pugnant and cantankerous in her behavior. Not a single answer she would hear. I was perplexed because I was new and such an answer would only be averting from attending her problems. Certainly, customers are kings and should be attended to regardless on who first dealt with him/her. After all will s/he have to go home and wait till who attended him/her come? No this would be suicidal to the business. So here I was juxtaposed between a rock and a hard place. The information which I had acquainted myself with was the only arrow in the quiver. Now I had to give an answer for unfamiliar situations and conclusion on the problem raised by the client. To start with I answered that there was already a willing buyer but what he was offering was meager amount and thus we never saw the need to inform her. This was after realizing from her pass that the lady came from California. It was plausible that the house was in Chicago and not California and apparently the cheapest house was selling at $ 210,000. Therefore, by excusing the house was bargained at $ 110,000, the lady will accept that certainly this was cheap and not worth to inform her of such a buyer. Luckily, it turned that what I had said was the case although I had not dome an empirical enquiry on what had happened. Form this is learnt that it’s appropriate to give wrong information than no answer to the client as it would appear rude. Barely a week was not over and there was a crisis. The manager who assisted me to secure the placement at Real Estate Investment Development was linked to a corruption scandal in the organization. So bad for those were affiliated to him. The company decided to pay them prior to sacking them. I merely escaped the crack of whip which was lashing over the innocent and those assumed to be guilty. It was a hectic time trying to convince the management that I was not involved in the graft. Were it not for the quality work that I was delivering to the customers, I would have disappeared together with the rest. The customers complained bitterly of losing an agile and kindhearted official. Besides, everything I did was in accordance to the stipulated rules of the company. Other worker also considered me friendly and my latency was shown through teamwork. Jackson, whenever we meet considers that I came to replace him; therefore it was better not to have considered my request. However, we find ourselves laughing at the idea it was like a substitution reaction which we had earlier learnt in organic chemistry. The firm was behaving like alkanes; it functions by substituting what it previously had. The week days were exceptionally busy for me. I had to equip myself with the current changes in business trends. Changes that are inevitably setting in with advent of technologies were eyesore to the conservatives but an impetus to the radical. At lunch break, fifteen minutes I would spare to browse in the internet and peruse on books so as to keep abreast with changes taking place. My food I would take as if I was in a food eating competition. Two to three spoons were enough to summarize the heap of food lying before me. It was quite symbolical that for any firm to succeed must seize the opportunities as they come just as I was gulping at the food. In the afternoon long queues of people I would find awaiting me as if I was God and on mission to rescue them from Satan. In this case the Satan was financial issues. It was crystal clear that less time was required for each client and at the same time ensuring that a comprehensive and satisfactory answer is given. Most clients were eager to know the factors which they should put into consideration while investing in real estates. Though the factors appear to be obvious, I had to put them in a way they appear new to the client’s ear. To start with, I would give a preamble of what a good investment would include while enlisting the factors to consider. Through this short encounter with customers, there was what I would call ‘resonance transfer of information’. I would make sure the client and I resonate at the same frequency and phase. Anything beyond my scope I would simply seek the information over it for the customers. Real Estate Investment Development was like the components of the table salt how they complement each other. During the course of my internship, I was also experienced the leadership vacuum which arose after summary dismissal of my friend. Jackson even though he had a lot of wiles which led him to rub the management the wrong side; he had the potential to handle any difficulties which emerged. For example, there was no one who was directly responsible for the transactions of the business. The Real Investment Development was using other firms to do their advertisement and the profit leapt was divided according to the proportion of their contribution. The number of new customers dwindled since they feared joining a corporation where you don’t know who is really in control. Collective responsibility cannot fully be trusted since there vices such as sabotage still exist. Attempts to increase the number of directors only increased the cost of management and had little change if any. At Real Estate Investment Development, the number of ladies was more than the number of gentlemen. This though was not meant to be a problem turned out to be a problem. A competition arose among the ladies over men. The dressing code was the most affected. The skirts were shortened by quite a large number. Some were the length of a bow-tie and others were as transparent as a crystal. As if this was not the only problem, the shoes were irritating to the ears as they tried to attract the attention of the men. It was a wake up call of sort, trying to wake men from the cocoon of fleeing form ladies for lack of wooing words. The administration tried to address the problem of Lorita but this never changed the situation. Moreover, the number of absentees increased due to feministic issues which are inevitable. At first I thought the problem was not to affect me. My belief is that a seed needs decomposing materials to germinate. In this case, I was the germinating seed and the ladies the decomposing materials. In the office I was located at the corner at the desk and a lady was located opposite to my desk. This is where the drama started. The way she sat was embarrassing. Thighs ajar and a finger placidly put between the slit on her skimpy dress. This sometimes made my brain go blank as I found myself carried into nitty gritty of even knowing the weekly series of her knickers. This lass was quite provocative besides teasing her wanton eyes and leg theatrics as a seductress lady. At one time she made the boss to suspect there was a beef as she was mostly found reeling on my desk with her merely chest protruding forward. The last experience which I cannot forget was the amount of work. The work was quite exhausting. The number of clients attended to were quite many and the number of staff was a few. All days we were busy searching from the internet for information, replying some emails from clients or discussing with the clients in the office. Within a month my weigh had decreased by two kilograms the exact figure stipulated by physician for the AIDS sufferers. In fact I had to be examined to know my status.

Diversity in the Newsroom Essay -- Journalism Ethics

Ethics in Journalism: Diversity in newsrooms not a trend in the new millennium My interest in the lack of diversity in newsrooms across the United States began while I was enrolled in an ethics course in the journalism department, this semester. I hadn’t realized until this semester that diversity was integral to good, accurate, and fair reporting, and that it is also widely lacking in newsrooms. While the subject of diversity was only discussed over a few class sessions, it became a noticeably important issue for me, especially as I am an aspiring journalist. As a top editor at the Massachusetts Daily Collegian, a student-run newspaper at the University of Massachusetts that has almost no minority representation in the newsroom, I’m realizing that the problem is increasingly important, yet increasingly ignored. Diversity in the newsroom is an important issue in corporate-owned newspapers, private-owned newspapers, and at university and college newspapers. Statistics show that diversity in newsrooms is especially low for the years proceeding 2006, and, in some cases, is declining. Similarly, while many editors endorse diversity and believe that a representative newsroom provides fair and accurate reporting, statistics show that diversity is not an important priority for newsrooms. Though many newspapers are working towards diversity goals, the minimal progress that is being made in some places is especially slow, and not enough newspapers are taking part. The percentage of diversity representation in the newsroom has an effect on credibility. Without a significant representation of reporters who come from diverse backgrounds equal to the percentage of minority readers, information and content have a Page 2 2... ... Nov 2006. (copied in ethics class course pack). Heyboer, Kelly. â€Å"Losing Ground.† American Journalism Review. 2001 June. p. 43 (copied in ethics class course pack). â€Å"The Lackluster Racial Record of University Student Newspapers.† Journal of Blacks in Higher Education. No. 2 (Winter 1993), p. 28. JSTOR. 28 Nov 2006. http://links.jstor.org/sici?sici=10773711%28199324%2F199424%290%3A2%3C28% 3ATLRROU%3E2.0.CO%3B2-1> Hold the Presses! Blacks Now Making Gains on Editorial Boards of Student Newspapers. The Journal of Blacks in Higher Education, No. 18 (Winter, 1997-1998), pp. 33-34. JSTOR. 29 Nov 2006. 3711%28199724%2F199824%290%3A18%3C33%3AHTPBNM%3E2.0.CO%3B2- 8> Tobar, Hector. â€Å"Attempting to Bridge the Divide.† Nieman Reports. Fall 2006. Diversity in the Newsroom Essay -- Journalism Ethics Ethics in Journalism: Diversity in newsrooms not a trend in the new millennium My interest in the lack of diversity in newsrooms across the United States began while I was enrolled in an ethics course in the journalism department, this semester. I hadn’t realized until this semester that diversity was integral to good, accurate, and fair reporting, and that it is also widely lacking in newsrooms. While the subject of diversity was only discussed over a few class sessions, it became a noticeably important issue for me, especially as I am an aspiring journalist. As a top editor at the Massachusetts Daily Collegian, a student-run newspaper at the University of Massachusetts that has almost no minority representation in the newsroom, I’m realizing that the problem is increasingly important, yet increasingly ignored. Diversity in the newsroom is an important issue in corporate-owned newspapers, private-owned newspapers, and at university and college newspapers. Statistics show that diversity in newsrooms is especially low for the years proceeding 2006, and, in some cases, is declining. Similarly, while many editors endorse diversity and believe that a representative newsroom provides fair and accurate reporting, statistics show that diversity is not an important priority for newsrooms. Though many newspapers are working towards diversity goals, the minimal progress that is being made in some places is especially slow, and not enough newspapers are taking part. The percentage of diversity representation in the newsroom has an effect on credibility. Without a significant representation of reporters who come from diverse backgrounds equal to the percentage of minority readers, information and content have a Page 2 2... ... Nov 2006. (copied in ethics class course pack). Heyboer, Kelly. â€Å"Losing Ground.† American Journalism Review. 2001 June. p. 43 (copied in ethics class course pack). â€Å"The Lackluster Racial Record of University Student Newspapers.† Journal of Blacks in Higher Education. No. 2 (Winter 1993), p. 28. JSTOR. 28 Nov 2006. http://links.jstor.org/sici?sici=10773711%28199324%2F199424%290%3A2%3C28% 3ATLRROU%3E2.0.CO%3B2-1> Hold the Presses! Blacks Now Making Gains on Editorial Boards of Student Newspapers. The Journal of Blacks in Higher Education, No. 18 (Winter, 1997-1998), pp. 33-34. JSTOR. 29 Nov 2006. 3711%28199724%2F199824%290%3A18%3C33%3AHTPBNM%3E2.0.CO%3B2- 8> Tobar, Hector. â€Å"Attempting to Bridge the Divide.† Nieman Reports. Fall 2006.

Pom Omo Unilever

HANOI UNIVERSITYFACULTY OF MANAGEMENT AND TOURISMPRINCIPLE OF MARKETING REPORTOMO – UNILEVER VIETNAMTutor: Ph? m Th? Phu? ngStudents: Khuong Du KimTr? n Th? H? ng NgaD? Qu? nh TrangHoang Thanh LoanTutorial: Tut 5 – Second MajorHanoi, May 2012| PRINCIPLE OF MARKETING REPORT Subject: Principles of Marketing Tutorial: 5 – Second Major Tutor: Ph? m Th? Phu? ng Group members: 1. Khuong Du Kim- ID 0907010110 2. Tr? n Th? H? ng Nga- ID 0907010161 3. Hoang Thanh Loan – ID 0807010102 4. D? Qu? nh Trang- ID 0907010232 Date of submission: May 4th, 2012 TABLE OF CONTENTS Executive summary4 I.Introduction5 II. Situation analysis5 1. Company analysis5 1. 1 Mission statement5 1. 2 Company objective6 2. Environmental analysis7 2. 1 Economic factor7 2. 2 Demographic factor7 2. 3 Cultural factor7 2. 4 Technological factor8 2. 5 Political factor8 2. 6 Natural factor8 3. Competitive analysis8 4. Customer analysis12 4. 1 Geographic segmentation12 4. 2 Demographic segmentation1 2 4. 3 Behavioral segmentation12 4. 4 Psychographic segmentation12 5. Brand analysis13 5. 1 Brand’s current performance 13 5. 2 The current marketing strategy using framework 4 Ps13 6. SWOT analysis16 6. 1 Strengths16 . 2 Weaknesses18 6. 3 Opportunities19 6. 4 Threats19 III. Conclusion20 REFERENCES21 Executive summary In recent years, the surprising growth of economy along with the involvement of Vietnam into WTO has brought many opportunities for the purchase, sale and exchange of goods and services. Therefore, the company’s success mostly depends on how it carries out the business to utilize these advantages effectively. OMO is a highly aware washing powder product of Unilever Vietnam Joint Venture Company (formerly Lever Vietnam) – a joint venture specializing in Home and Personal Care brands.Since the commencement of Unilever’s operation in Vietnam in 1995, Unilever Vietnam has successfully grown to become a leading fast-moving consumer goods company in the local market This report presents the industry and competition analysis of the OMO product and shows the strong and weak features of the Unilever Vietnam to find out the suitable way coping with the current situation by suggesting some recommendations. In the main analysis, first, this report indicates the overview about the company operations. Next, it describes the macro environment trend that affects the market and the company’s competitors.Then, the customer segments and brand are analyzed, followed by the SWOT analysis. Finally, some recommendations are given for the company. OMO has become one of the detergent-leading brands in Vietnam market, but the competition will never stop there. Therefore, this research is essential to maintain the position of the OMO market as well as to help Government design better policies that aim to create a better environment where local business can play a greater role in the development of the society and economy of Vietnam. I. IN TRODUCTIONVietnam’s involvement in WTO has brought in many good results in every aspect of life, especially in the economy. In recent years, Vietnamese businesses have became more interested in and made better use of the big opportunities which WTO brought them. On top of that, there is a growing concern about the purchase, sale and exchange of goods and services. How to facilitate Vietnamese consumers in doing the shopping, supply them with better choices, better goods and better prices is always the deep preoccupation of Vietnamese companies.OMO is a highly aware washing powder product of Unilever Vietnam Joint Venture Company (formerly Lever Vietnam) – a joint venture specializing in Home and Personal Care brands. According to the recently issued report by the Central Institute for Economic Management (CIEM), by 2007, UVN ranks the 27th largest business in Vietnam and the largest in the Fast Moving Consumer Goods (FMCG) sector. Unilever Vietnam is a long-term invest or, who has been deeply rooted in the economy, having strong forward and backward linkages and, by and large, serving domestic consumers. This drives us to conduct research about this product.The economy of Vietnam is gradually growing that enables people enjoy higher living standard. Higher living conditions demand higher quality products. As the world changes so the business must change to meet new consumer needs. It is inevitable that washing power is very a necessary consumer product in almost households. OMO has been partially met customer expectations for their quality products. Now this product has formed its brand equity on the market in both domestic and international market. This study attempts to make a deeper understanding about the OMO product in terms of the current arket, the marketing environment, the organization, the customers, and the competitors – all of which influence the development of the OMO marketing plan. Furthermore, it is conducted to find out the actual situation of customer and the situation of the company. Through this study, the advantages, disadvantages and the competition of the OMO product was clearly highlighted II. SITUATION ANALYSIS 1. COMPANY ANALYSIS 1. 1. Mission Statement Attracting and building long lasting relationship with customers through effective communication is what the OMO product has been doing.It brings the wealth of knowledge and international expertise to the service of local consumers. Its mission is to add continuously vitality to the quality of life of consumers. OMO meets every day needs for hygiene and personal care with brands that help people feel good, look good and get more out of life. Its long term success requires a total commitment to exceptional standards of performance and productivity, to working together effectively, and to a willingness to embrace new ideas and learn continuously.This is its road to sustainable, profitable growth, creating long-term value for our shareholders, ou r people, and our business partners. 1. 2. Company objectives a. Financial In order to achieve the good result for the future development and the mission of maximizing profit, pursuing a business growth strategy, year after year, OMO aggressively pursues the long term profitability and growth objective with the goal of gaining positive financial performance, specifically: * Earn an annual rate of return of at least 30% over the next 12 months. Produce net profits (before interest and tax) of 250 billion VND in 2013. b. Marketing objectives In the long run for the next 12 months, our company aims at becoming a market share leadership in the field of detergent powder. Specifically, the objective is to gain a market share of 68% of the domestic market. In order to reach this target, we have to: * Achieve total sales revenue of 900 billion VND in 2011, which represents a 28% increase. Therefore, achieve a unit sale volume of 800 million products. Increase product awareness of OMO brand among target audience to 98% over the planning period. * Inform target audience about features and benefits of our product and its competitive advantage, leading to a 10 percent increase in sales in one year. * Enter the higher-income segment of the 30 to 35 year old market with internet services and ordering capability. * Enlarge our distribution network by 200% by the next 12 months. * Aim for an average price of 28,000 VND per kilo in the long run. * Increase loyalty among current customer Increase customer satisfaction and relationships 2. ENVIRONMENTAL ANALYSIS 2. 1. Economic factor As the national living standard improves, the demand and need for common products are higher. However, when the inflation has been increasing in Vietnam in recent year, prices of many goods also increases uncontrollably and Vietnamese consumers have to pay more for daily-using products, including washing powder. Some recent statistics show that OMO’s price has increased by about 10,000 VND pe r kilogram since 2002 (Group 9 NH03, 2009).This can makes most of consumer more reluctant when purchasing washing powders with higher price. They are likely to find cheaper substitutes to satisfy their demand. If OMO keeps such a high price level, the number of consumer may reduce significantly no matter how much the company advertises for their products. This will be a big obstacle for OMO in the near future. 2. 2. Demographic factor The Vietnamese population is increasing quickly, as the total population now reaches 90 million and this figure is believed to rise by 1 million per year (Vietnam Demographics Profile 2012).Washing powder is a necessary good used across the country, hence Unilever has many opportunities to increase their sale volume and develop OMO product. Another good news for OMO is that Vietnam’s population density is higher and higher in big cities, especially Hanoi and Ho Chi Minh City (Vietnam Demographics Profile 2012). In addition, the fact that people are leaving the countryside for the city center to find better-paid jobs reduces the distance of delivery between buyers and sellers and saves transportation cost for the company. . 3. Social/ Cultural factor Culture is a vital part of every society and the important cause of people’s wants and behaviours. Recognizing the important role of culture in promoting products, Unilever has focused on Vietnamese culture in many advertisements. For example, OMO flower fragrance is associated with the image of Vietnamese diligent housewives, OMO TET with images of a happy family on Tet holiday with such impressive slogans as â€Å"T? t lam di? u hay ng? i gi v? t b? n†, â€Å"T? t lam di? u phuc, sung tuc c? am†Ã¢â‚¬ ¦ OMO also participates in social welfare programs funding for poor students or contributing to the social facilities with meaningful slogans like â€Å"V? n tim vang cho tri? u t? m long vang†, â€Å"OMO, ao tr? ng ng? i sang tuong lai†, all of which are very consistent with Vietnamese culture and win many customers’ heart (‘Chi? n lu? c marketing c? a Omo’, 2011, TNO, P. , 2005). In addition, Unilever has designed many product lines with diversified features to meet the needs of various customer groups, for instance, OMO 99 Stains, OMO Bleach, OMO Comfort and OMO Matic Frontload. 2. 4.Technological factor In the technological era, every company tries their best to apply the newest technology to produce new products. In recent years, Unilever  has invested much in R&D to have modern production lines and new technology which help reduce costs and add more features to their products (Unilever, 2011). Because of the technology advance, advertisements of OMO appear constantly  in the media, hence  bring OMO much closer to the consumers (‘Danh gia hi? u qu? qu? ng cao’, n. d. ). Therefore, technology enables OMO not only to enhance its quality but also to reach target consumers easier. . 5. Political factor The government has a vital role in operating the business over the whole country. Vietnam  is now  implementing an open market policy  by  facilitating  access to a wide variety of  products. However,  obstacles like  tariffs and quotas  on materials increase the price of many goods including OMO. Moreover, the regulations in Vietnam  are not strict enough and people may commit illegal actions as in the case of a firm in Thanh Hoa province which produced fake OMO with a lot of stone (Huy, Q. , 2010).Such problem may leave negative impressions of OMO brand in the customers’ mind. Nonetheless, the stability of Vietnam’s politics is still a significant factor that draws the interests of many international firms. 2. 6. Natural factor Today, most industries have to face a serious lack of resources and OMO is not an exception. Resources for OMO production have been increasingly exhausted because the main ingredients are fat acids deriv ed from crude oil. In recent years, the oil price keeps going up, leading to the rise in costs of production and causes the price of OMO to increase.Oil price increases also cause delivery cost to increase too. Moreover, nowadays, environment is a very hot issue; many companies have failed because they ignore the environmental concerns. The case of Vedan is one typical example. Producing environment friendly products is a good way to attract customers who want to do something good for the surrounding environment. To save the environment, every company needs to follow the government laws, and take their responsibility to protect environment even when that will make their product more expensive.Unilever is successful with their waste treatment water process and receives good feedbacks from society (Unilever, n. d. ). 3. COMPETITIVE ANALYSIS Nowadays, washing powder has become a common good and there are pretty much washing powder brands of different manufacturers in the market competi ng with each other for customers’ attention. Specifically, OMO are facing many competitors such as: Tide, Hoa Mo, Surf, Viso, Vi Dan. However, Viso and Surf are both products of Unilever while P&G owns Tide and Vi Dan belongs to Vico.These two brands, especially Tide, are the most threatening rivals to OMO in the market at the moment. According to the statistics, OMO currently accounts for 60% of the market share, while Tide makes up 30% and other brands only contribute 10% (Group 9 NH03, 2009). 3. 1. Direct and indirect competitors a. Indirect competitors Indirect competitors are businesses that are offering products and services that are close substitutes. These competitors are probably targeting one’s markets with a same or similar value proposition, but delivering a different product.In Vietnam, there are many indirect competitors for OMO like Ariel, Amway, Lix, Lifeboy, Pamolive, Enchanteur, Lux, †¦ as they also provide washing products but concentrate more o n washing water and soap. b. Direct competitors Direct competitors are businesses that are offering identical or similar products or services as a person’s business. These are companies that customers can easily buy from instead of from that one, and they represent the most intense competition. In the situation of Vietnamese washing powder market, we can clearly see two strong competitors of OMO, which are Tide and Vi Dan. 3. 2.Analysis of two direct competitors The table below shows the comparison of three washing powder brand names. Products Characteristics | OMO| Tide| Vi Dan| Quality| Good| Good| Normal| Design| Diversity| Diversity| Normal| Skin safety| Relative| Relative| Relative| Name| Simple, easy to remember, consumers preferred| Simple, easy to remember, consumers not appreciated| Close to the Vietnamese people| Catalog| Diversity| Relative| Less| Price| Expensive| Expensive| Cheap| Distribution| Wide| Wide| Within territory| Advertising| Good, a lot, attractive| G ood, not much| Less| Promotions| A lot, attractive| A lot| Less|Technology| Modern| Modern| Modern| Brand name| Famous, prestigious| Famous, prestigious| Normal| Scale| Large| Large| Small| Management ability| Good| Good| Good| a. Advantages of Tide over OMO Tide belongs to P&G Corporation which concentrates on detergent and cosmetics. In terms of global strategy, P&G is considered to be superior to Unilever with a more advanced position in many important market sectors. By occupying Gillete and focusing on its strategic goods, P&G will continue to expand (Unilever vs. P&G (Procter and Gamble), 2009).In terms of brand, while OMO has a series of products including OMO 99 Stains, OMO Bleach, OMO Matic Frontload and Topload, Tide also has a wide variety of products such as Tide Downy, Tide Spring Flower Scent, Tide Supermatic, Tide White and Clean†¦ It targets all customers with different income levels and characteristics with different styles and features. Tide has launched many impressive promotion programs under the theme â€Å"Dirt can’t hide from intensified Tide,† â€Å"If it’s got to be clean, it’s got to be Tide† and â€Å"Tide’s in, dirt’s out. † These programs attract a lot of people and gradually gain position in customers’ mind. . Disadvantages of Tide relative to OMO Firstly, P&G penetrates the Vietnamese market after Unilever. Vietnamese people know about OMO before Tide, and Comfort before the existence of Downy. In addition, the pronunciation of â€Å"OMO† is quite easy for Vietnamese while many people feel ashamed of pronouncing â€Å"Tide† in Vietnamese as it can easily cause misunderstanding. Moreover, the producer of Tide has not paid enough attention to the product design so Tide remains relatively simple and little changed (Unilever vs. P&G (Procter and Gamble), 2009). c.Advantages of Vi Dan relative to OMO Besides Tide, OMO also has to pay attention to the exi stence of Vi Dan – a product of Vico Co. , Ltd. , a 100% Vietnamese washing powder brand. The brand name Vi Dan sounds very Vietnamese and familiar with Vietnamese people life. The price of Vi Dan is also much lower than both Tide and OMO. Therefore, Vi Dan attracts more low income people and people in countryside (Phuong, K. , 2010). d. Disadvantages of Vi Dan relative to OMO Vi Dan is a small brand name so their products are distributed in a small areas and the scale is also small.Vi Dan is not popular in the market because VICO does not pay much attention to advertisement and promotion. This company also has little experience in producing and distributing. These drawbacks make customers know little about Vi Dan (Phuong, K. , 2010). * OMO Low reliable trademark Low perceived quality High reliable trademark * Vi Dan * Tide To sum up, in such a competitive environment, OMO should push up their promotion and improve the products’ quality to retain customers in current m arkets and aim at expand their market further to the rural areas.A positioning map 4. CUSTOMER ANALYSIS Criteria| Target customers| Behaviour| Purchase occasion: regular occasionBenefits sought: clean and bright clothes, safety, labour-free, time-savingUser status: regular userUsage rate: heavy userLoyalty status: strong Readiness state: almost all Vietnamese households have tried OMO at least once (Unilever, 2011). Brand familiarity: preference or recognition (the most highly recognized brand in Vietnam in 2005, second rank in top 500 famous brand name in 2006) (Unilever, 2011). Psychographic| Socioeconomic status: women are getting more important positions in society, holding responsible for choosing which domestic products to purchaseValues, attitudes and lifestyles: customers prefer products that can offer quick, safe and effective stain removal, modern style, natural sweet scent and family’s satisfaction| Demographic| Age: users of all age groups, especially those who ar e eighteen and above, mature, employed and marriedGender: mainly focus on female who are responsible for washings in a familyFamily size: extended families with two or three generations living in the same houseIncome: stable, medium to high income| Geography| Density: focus on cities and towns with high population density such as Hanoi, Ho Chi Minh, Hai Phong, Da Nang,.. | Decision type of the product: Routine response behaviour OMO is a low cost, low risk and frequently purchased product. Therefore, the customers need little search and decision effort and mostly rely on past experience when buying this product. We need to satisfy current customers by maintaining sufficient quality service and value. We must also try to attract new buyers by introducing new features and using points of purchase displays and price deals. 5.BRAND ANALYSIS 5. 1. Brand’s current performance Since the first day of appearing in Vietnam in 1995, through delivering the simplest and most efficient lau ndry, OMO are contributing to a cleaner and happier Vietnamese life. The consumers’ love for OMO brand is the highest recognition for what the company has been doing (Unilever, 2011). Theoretically, most of products follow 5-stage product life cycle and each stage is marked with certain sales growth and profit level (Kotler, P. , Adam, S. , Brown, L. , & Armstrong, G. , 2006). The five stages are product development, introduction, growth, maturity and decline, which represent an S-shaped life cycle.Since OMO came to Vietnam, it seemed that this product has undergone 4 stages: product development, introduction, growth and maturity. Today, OMO is at the maturity stage because of some reasons: it is facing growth rate slowed down, supply of goods tends to rise higher than actual demand, having high pressure from large customers because of various choices of other brands. OMO is implementing some special strategies to deal with this period. For instance, OMO is always changing to improve product quality to attract the attention of customers and maintain market share as adding washing powder for more active whitening ingredients, bleaching 99 types of stains, flower flavors added to make clothes more sweet smelling, †¦OMO also changes the products’ styles from package into plastic bags with many size for more convenient usage, or changes the color and image†¦ Beside, OMO has applied cutting price strategies by increasing the amount of products without rising prices, promotional bonus, using the form of lucky draw, lucky scratch card, won gold, houses, cars, tours,†¦ together with discounts in special occasions to attract more consumers’ attention (‘Chi? n lu? c marketing c? a Omo’, 2011). 5. 2. OMO using the 4Ps framework To gain such a position in current marketplace, Unilever had an excellent marketing strategy for all of their products in general and for OMO in particular. It can be said that the company has appli ed the 4Ps framework effectively to promote the OMO brand. a. Product: Characteristics: OMO is a product with high quality in comparison with other kinds of washing powders; it can dislodge completely any dirty spots on the clothes. * Brand name: OMO is the short name which is easy to remember and pronounce. * Packaging: Packaging is considered as a silent salesperson, and the most outstanding feature about packaging of OMO products is that it is very vivid, colorful, fresh, friendly, striking and very eye-catching. OMO's traditional colors are red, white, and blue. Packaging is always improved to create the highest aesthetics to consumers and ensure the product quality. * Size: To meet consumers’ demand, there are many kinds of OMO products with many sizes: 400g, 800g, 1. 5kg, 3kg, 4. kg, and 5kg. * Types of product: During development period, OMO always gives new products to meet the new demand as soon as possible. For example: * In 2003, OMO is the first brand to provide d etergent for washing machine. Up until now, OMO Matic has been recommended by 80% of washing machine manufacturers in Vietnam (Unilever, 2011). * In 2004, OMO launched break-through formulation which cleans dirt even in hard-to-reach places, showing that it is the expert when it comes to removing the toughest  stains. * In 2007, OMO Comfort with long lasting fragrant was introduced. * On May 8th 2010, Unilever launched the OMO Concentrate Laundry. b. PricePrice is another important part of the marketing mix including wholesale prices, retail prices, discounts, rebates and credits. Price must be commensurate with the value received by customers and competition. Recognizing that 80% of consumers in Vietnam live in rural areas with low incomes; Unilever Vietnam has set targets to reduce production costs in order to bring the reasonable price for consumers. The company has relied on small local businesses to find local raw materials to replace the imported ones, reducing costs by payi ng less import taxes. In addition, the company has allocated the branches across the North, Central and South areas to reduce transportation and warehouse costs.Moreover, Unilever provides financial supports to help local businesses upgrade production facilities, offers technology transfer, and holds training programs to increase the quality and productivity. Besides, OMO uses the penetration price strategy. In the first 5 years since the introduction, the company maintained OMO price and quality in the face of rises in raw materials and fuel price. These measures helped OMO gradually gain market share and increase the price later. Calculations show that from 2002 up to date, OMO washing powder prices have increased by about 10,000 VND/ kg (Group 9 NH03, 2009). ND? c ng? a c. Placement Unilever decided to create a marketing and distribution system across the country, covering more than 100,000 locations. Unilever Vietnam is divided into seven regional sales.Unilever has classified t he cities into one group, the group communication channel 2 (GT2), including Ho Chi Minh City and Hanoi, the GT4 group consists of GT2 and Da Nang, Can Tho; and GT8 includes GT4 and Hai Phong, Vinh, Nha Trang, Bien Hoa (Chi? n lu? c marketing c? a Omo, 2011). OMO is the daily and individual consumption, so the channels also differ compared to other commodities. Firstly, as a direct channel, the producers sell directly to final consumers. Consumers now have a certain belief in the OMO products so the company only has to use some forces as home sales, or sales through mail, mail order †¦ The forms allow the consumer to buy products through the media without advertising directly and interacting with the seller.Secondly, the product is sold via indirect channels using intermediaries between producers and consumers. There are three levels in this channel. * Manufacturers =; Retailers =; Consumers. For example, OMO products sold in retail stores such as Big C , supermarket chain Co-o p mart, Maximax systems †¦ * Manufacturer =; Wholesalers =; Retailers =; Consumers. For instance, OMO products sold in the commercial distribution centers such as Metro Binh Phu in Ho Chi Minh City. * Manufacturer =; Agent =; Wholesalers =; Retailers =; Consumers. For example, agents in Binh Duong have very modern equipments and scientific operating layouts.Goods after production at the plant will be set up in this center, and then shipped to dealers in Central (from back to Nha Trang) and the South, and this is the transit point for goods from Hanoi and Da Nang. d. Promotion: Promotion is a series of mixtures of activity: Advertising, promotions, public relations, direct sales and direct marketing. The selection of promotional tools to spread the brand image and message is extremely important. Unilever Vietnam have chosen to promote OMO through commercials on television and newspapers, organized programs such as promotional support, participates in events or exhibitions, estab lished study promotion funds for poor children†¦ The company also sponsored TV programs like â€Å"Vu? t qua th? thach† and â€Å"Chi? c non ki di? u†.OMO’s advertisements usually take the theme of family, contributing to the emotional appeal. As a result, OMO is getting more supports from the Vietnamese consumers. Besides, OMO is known as a leading brand participating in many social activities. Among these, poverty reduction is the most outstanding activity: OMO has developed the project â€Å"OMO mai d? ?m tinh xuan,† building nearly 300 houses in 37 districts of five poorest provinces in Vietnam and supported economic development programs at Cu Chi. Through these activities, Unilever drew a lot of attentions and received many positive responses for the company as well as the brand. 6. SWOT ANALYSISThe SWOT Analysis of the company is summarized in the following table: Internal External Unfavorable Favorable Strengths * Brand equity * â€Å"Talentà ¢â‚¬  policy * Distributor channels * R;D * Market share| Opportunities * Vietnam’s demographics * Favorable environment for foreign investment * Geographical favors | Weaknesses * Foreign brand in an Asian country | Threats * Shrinking market share * Decreasing customers demand due to economic downturn| The strengths, weaknesses, opportunities and threats of the company are discussed in details in the following section. 6. 1. Strengths * Brand equity Unilever was first founded in 1890s.In 2011, this Anglo-Dutch multinational group ranked the third-largest consumer goods company measured by revenues after P;G and Nestle. The company’s 400 brand portfolio ranges from nutritionally balanced foods to indulgent ice creams, affordable soaps, luxurious shampoos and everyday household care products. They are sold in more than 190 countries with 2 billion consumers on any given day. Unilever so far has expanded its business to more than 100 countries, including Vietnam. After more than 15 years of operation in Vietnam, Unilever has become a very familiar brand with the Asian country’s people. Nearly 5 million Unilever products such as OMO, PS, Clear, Pond’s, Knorr, etc are bought by Vietnamese consumers per day, (JV Raman, as cited in Phuong, T. , 2011).Obviously, trade mark is an advantage for Unilever to shorten the gap between the company products and the consumers. OMO, as a result, enjoys the favorable brand name to be an international standard detergent. * Effective â€Å"talent† policy â€Å"Brand and brains are two assets of our company† said Mr JV Raman, chairman of Unilever Vietnam. Unilever Vietnam is fully aware of the human resource’s role in business performance. The company has a variety of activities to pool in high-quality employees. Logging on Unilever website, the message of the Chairman is like a welcoming greeting, which offers the opportunities for all the people with the willing to co-ordinate, t o challenge themselves and to help develop the company.The company program known as â€Å"Unilever Future Leaders Program† was first launched in 1998 and till now, it has provided many newly-graduated students with employment opportunities. This policy no doubt has been an efficient investment of Unilever Vietnam in human resource. * Distributor channels By the year 2009, Unilever had a total of 283 distributors and nearly 150,000 retail stores across the country. In the year 2011, the number of retail stores rocketed to 180,000 – channeling Unilever products to an average number of 35 million Vietnamese customers per week. Larger distribution systems prove stronger position of Unilever brand name in the market.This system not only focuses on metropolitans like Hanoi or Ho Chi Minh city but also allocates evenly throughout the country. OMO then, like other Unilever products, has the access to a wide range of customers. * R;D Recognized innovation as â€Å"the key to p rogress†, research and development are always paid sufficient attention. Generally, nearly â‚ ¬1 billion was reported to have been invested in research and development every year, contributing to laboratories establishment, which paved the way for new thinking and techniques. Till now, a variety of OMO products are available: OMO bleach, OMO comfort, OMO packshot handwash, OMO packshot matic front load, OMO topload.This variety offers multiple choices for customers with different preferences. Moreover, to be in line with the company’s Sustainable Living Plan, the technology is suggested to be based on sustainable inputs and used in a sustainable manner. Unilever products are used 2 billion times per day (Wright, R. , n. d. ) and each technology advance in each product can help to protect the environment. Take OMO liquid for example, if dosed correctly, the concentrated OMO liquid provides the same number of washes as ‘dilute liquids’ and at the same time , reduces water and waste, halving the number of trucks required to transport them and then reducing greenhouse gas emissions per wash, (Wright, R. , n. d. ).This new type of OMO detergent not only saves the time and the cost for the consumers but also raise the awareness of environment protection and social responsibility. * Market share Despite the fact that Unilever holds 48% of Vietnam market share, in term of Fabric cleaning, Unilever is the leading brand with a dominant provider with 77% of Vietnam market share (Manwani, H. , 2005). This figure clearly confirms OMO position in the detergent market of Vietnam. However, the statistics from 2005 has not fully reflected the current situation of fiercer competitions since new products have been entering the market. Unilever generally and OMO particularly is suggested to continue advance its technology and product quality to retain the market share. 6. 2. Weaknesses * Foreign brand in a typical Asian cultureDespite many years of exp erience operating in Vietnam, the Anglo-Dutch multinational group sometimes seems to have encountered cultural disparity between it and the Asian country. Take OMO Bleach promotion program for example. In the year 2006, Unilever organized an event called â€Å"Possible mission†, involving the giant short sleeve shirt washed with OMO bleach (Huong, L. , 2006). This Guinness recognized largest shirt was made from 6,200 meters of cloth. And for OMO Bleach to wash the shirt, a team of more than 100 engineers and mechanics had been working for 17 straight days to make a giant steel washing tank. After pouring 1800 liters of colors into the shirt, Unilever cleaned it out just in 10. 35 minutes with OMO Bleach.This set Unilever records but posed a negative group image towards Vietnamese people, who would prefer practical contributions to heavily brand promotion like that. The organization then had responded timely, using the shirt cloth to make 3000 small shirts for disadvantaged Vi etnamese children. Being a foreign brand in an Asian culture like Vietnam, Unilever then needs to improve its marketing approach for them to be more suitable and relevant with the country context and people’s norms. 6. 3. Opportunities: * Vietnam’s demographics By July 2011, total Vietnam population was more than 90 million people. This is obviously a dynamic market with a lot of potentials to realize. Children account for 25. 2%, adolescent and adults account for 69. % of the total 90 million people. This golden demographic model happens only one time of a country’s history. Conglomerate like Unilever then can tap on consuming market and at the same time take the full advantage of the available labor force. This may be the reason why for OMO to choose children as their advertisings’ main characters. With the slogan â€Å"Dirt is good†, OMO encourages all the parents to let their children freely explore the life and naturally uncover their own pote ntials (Unilever, 2011). In this way, OMO is not simply a fabric cleaning product but a close friend of every household. * Favorable environment for foreign investmentIn the global context of political disturbance and conflict, it is Vietnam’s political stability and national integrity that draw the attention of foreign investors. Moreover, since the â€Å"Doi Moi†, Vietnam authorities have implemented a variety of transformation, from administrative procedure to policies. The administrative procedure is much more simplified. Tax incentives are also employed to encourage foreign investors to invest in the Asian country. Last but not least, the bilateral dialogue between government and enterprises is encouraged. Foreign investors in Vietnam like Unilever have the right to directly reveal their opinions and recommendations. Vietnamese authorities at the same time can give positive or negative feedbacks on the businesses’ activities.Specifically, Unilever received the Prime Minister’s award for environmental protection in 2011. This two-way interaction ensures that all the company’s aspirations as well as efforts are fully recognized by the government. * Geographical favors Being a country in the favorable position, Vietnam has long coastlines with many harbors along. In addition, the country share border lines with a number of countries like China, Laos and Cambodia. As a result, it is very convenient for Unilever to export products, import raw materials or allocate products flexibly within the region. 6. 4. Threats * Shrinking market share More and more foreign investors are entering this Asian country.Not to mention Unilever’s biggest competitor in Vietnam – P;G, many distributor groups now came up with their own products. Take Big C Supermarket for example. This French supermarket group has had their own products like Big C detergent, Big C softener, etc at more reasonable prices. To solve the problem of differ ent level of income, Unilever has had three types of detergent including OMO, Surf, Viso. However, in order to retain the market share, Unilever is suggested to make each detergent product to be more customers-oriented. Otherwise, OMO market share can be lost to another Unilever detergent like Surf or Viso. * Decreasing consumer demand due to economic downturnAs a result of overheating economic growth, Vietnam economy is now in the situation of hiking inflation. The Consumer price index hit its peak at 18. 6% in November 2011. Although this index has been gone down to 16. 5% in March 2012, it is undeniable that the high inflation had decreased the people’s trust and their consuming demand. Depreciated currency lowers the people’s purchasing power. As a result, instead of buying a high-quality and high-price detergent like OMO, they can make up with an average-quality and more reasonable price one. It is Unilever’s duty to figure out ways to minimize the cost, im proving the production’s efficiency and then gradually offer the products at a more affordable price.Besides, promotion and sales are appropriate solution to stimulus the demand. Only by doing these can Unilever take a firm hold on its current market share in Vietnam. III. Conclusion In conclusion, OMO has got a large market share in Vietnam. From the product life cycle perspective, the Unilever’s detergent has entered the process of maturing, which signals the requirements to have more innovations with the view to upgrading quality and decreasing cost. In the context of more domestic and foreign competitors emerging in Vietnam, not to mention the inflation rate which has not completely decreased, the long-term relationship with customers is much more emphasized in OMO’s strategies.Being a daily household’s product, the long-term relationship with customers definitely will enhances and prolongs OMO sales and profits. Last but not least, more promotions an d continuingly updated commercial ads to catch up with customers’ expectations and market trend will be a deciding factor for OMO future development. Directing development to be more in line with government’s policies and stake holders’ benefits, OMO’s stance on Vietnam market is for many years to come. 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Nhan hang OMO T? y An Toan dang ky thi? t l? p c? k? l? c Vi? t Nam va th? gi? i, viewed May 1 2012 . Kotler, P. , Adam, S. , Brown, L. & Armstrong, G. , 2006, Principles of marketing, 3rd ed. , Prentice Hall, Australia. Manwani, H. (2005). Unilever in Asia, viewed May 1 2012 . Message from Chairman, n. d. viewed May 1 2012 . Phuong, K, 2010, T? hao thuong hi? u Vi? t: B? t gi? t â€Å"Vi Dan†, viewed May 1 2012 . Phuong, T, 2011, Tai s? n c? a Unilever Vi? t Nam: Thuong hi? u va nhan tai, viewed May 1 2012 . T, D. , 2006, OMO gi? i thi? u m? u bao bi s? n ph? m m? i, viewed May 1 2012 . TNO, P. 005, Chuong trinh OMO – Ao tr? ng ng? i sang  tuong lai 2005, viewed May 1 2012 . Unilever, 2011 , Our brands Omo, viewed May 1 2012 . Unilever vs P&G (Procter and Gamble), 2009, viewed May 1 2012 . Unilever Sustainable Living Plan, 2010, viewed May 1 2012 . Unilever, 2011, Hanh trinh kham pha: Unilever, em la ai? viewed May 1 2012 .

Profit Maximization vs Maxing Shareholders Wealth Essay

Shareholder wealth is defined as the present value of the expected forecasting of returns to the owners which are the shareholders of one’s company. These returns can take the form of recurring dividend payments and or proceeds from the sale of the stock. Shareholder wealth is measured by the market value which is the price that the stock trades in the marketplace of a firm’s common stock. (James, Charles & Frederick, 2008) Profit maximization is defined as a more fixed concept than shareholder wealth maximization. The profit maximization objective from economic theory does not normally consider the time dimension or the risk dimension in the measurement of profits. In contrast, the shareholder wealth maximization objective provides a convenient framework for evaluating both the timing and the risks associated with various investment and financing strategies. Some marginal decision rules derived from economic theory are extremely useful to a wealth maximizing firm. Any decision, regardless of the duration short or long inevitably results in marginal revenues exceeding the marginal costs of the decision will be consistent with wealth maximization. When a decision has penalties extending beyond a year in time, the marginal benefits and marginal costs of that decision must be evaluated in a present value framework. The goal of shareholder wealth maximization is a long term goal. Shareholder wealth is a function of all the future returns to the shareholders. Therefore, in making decisions that maximize shareholder wealth, management must consider the lasting impact on the firm and not just focus on immediate ramifications be it negative or positive. For instance, a firm could increase short run earnings and dividends by eliminating all research and development expenses. However, this decision would reduce long run earnings and dividends, and also reduce shareholder wealth, because the firm would be unable to develop new products to produce and sell. (James, Charles & Frederick, 2008) The separation of ownership and control in corporations may result in management pursuing goals other than shareholder wealth maximization, such as maximization of their own personal significance. Concern for their own self-interests may lead management to make decisions that promote their long run survival such as job security, also minimizing and limiting the amount of risk incurred by ones firm. A narrow-minded person lacking such vision or a business solely concerned about short term benefits can be detrimental to the overall goals. A short term run can fulfil objective of earning profit but may not help in creating wealth. It is because wealth creation needs a longer duration to accumulate. Therefore, financial management emphasizes on wealth maximization rather than profit maximization. For a business, it is not necessary that profit should be the only objective; it may concentrate on various other aspects like increasing sales, capturing more market share which will support profitability. (James, Charles & Frederick, 2008) Furthermore, one may think that profit maximization is a compartment of wealth and being a compartment, it will facilitate wealth creation. The better and more accurate evaluation of business as it relates to wealth maximization, focuses more on the importance of cash flows rather than profitability. It is often stated that profit is a relative term and it can be a figure in some currency, while it is a percentage in others. For example, a profit of $20,000 cannot be considered good or bad for a business, until it is compared with investments, sales and other performance measures. Similarly, extent of earning profits is important whether it is earned in short term or long term. In wealth maximization, there is a major emphasis on cash flows rather than profit. That being said, to evaluate various alternatives for decision making, cash flows are taken under consideration. For example to measure the worth of a project, present value of its cash inflow and present value of cash outflows which is the net present value is equated. This approach considers cash flows rather than profits into consideration to find out worth of a project. (James, Charles & Frederick, 2008) Thus, maximization of wealth approach believes that money has time value. In conclusion, profit maximization is directly correlated to profits only, while shareholder wealth encompasses total company equity, debt ratios and many other financial performance measure ratios. One’s company could focus on profit maximization over a longer period of time, while the shareholder would rather see stock values and corporate total value increase immediately also known as getting in and get out. If ones management focused on short-term profit maximization, at the expense of long term sales revenues, then shareholder wealth/stock price could actually decrease because of the loss of market share. What are the differences between the goals of profit driven organizations and not for profit organizations? Both for profit and not for profit entities in general have enterprising owners who open bank accounts, own assets and employ staff. They also try to maximize the income, rationalize expenses and establish and achieve the business objectives of the organization. However, founders of the enterprises start their ventures with different objectives in mind. For instance, the focus of a technology start up may involve manufacturing and marketing an innovative product with the goal of attracting angel investors. The owners may have vision of a multimillion-dollar stock offering at some point in the future. Alternatively, a community minded person might have the goal of starting a not for profit business with the aim of starting a technologically driven Community Center with state of the art computers and other state of the art technology that provides new resources for disenfranchised urban city students. Both types of organizations, when formed as corporation, have board of directors that oversee the business of the organizations and ensure the continuity of the enterprise over time. The board members also may have the responsibilities of approving a chief executive to manage the day to day affairs of the organization. Not for profit board members play a significant role in the development of the enterprise and fundraising activities. For profit business owners and shareholders own the assets of the companies. If the business dissolves for any reason, the property gets distributed among the individuals based on their ownership in the business. Individuals involved with not for profit enterprises cannot have ownership in the assets of the organization. If the entity ceases operation, the law requires distribution of the property to another not for profit with a similar mission. A major difference between for profit and not for profit involves the payment of federal and state taxes. Not for profit corporations have some tax-exempt statuses, which the entity must apply for with the Internal Revenue Service and the state. (â€Å"non profits,†) For profit businesses must pay taxes on the net earnings of the business or the excess income earned over the expenses. In addition not for profits have to report the salaries of the five highest paid employees and contracts more than $50,000.

Silas Marner Chapter 3 essays

Silas Marner Chapter 3 essays Squire Cass, who lived in Raveloe, lived in a huge house. He was known to the people of Raveloe as a very rich man, with a rich family. He has two completely opposite sons, Dunstan (nicknamed Dunsey) and Godfrey. Dunstan liked to gamble and drink. Leaving Godfrey with the other things of life, such as being good-natured and handsome, very different from his brother. One day the brothers get into a fight over money that belongs to Squire Cass, that came from one of his tenants. Godfrey lent Dunstan the money and needs it back to give to their father or he will be quite upset. Dunsey tells Godfrey to pay the money back by himself and to sell his horse, Wildfire, or hes telling the Squire about Godfreys secret marriage with a druggie, Molly Farren. Dunsey cracks at Godfrey telling him that he should just get rid of Molly, Godfrey tells Dunsey that he will tell the Squire about the money and the marriage himself, getting both of the boys kicked out of the house. Godfrey chooses not to do that, because he is so scared of what his father will think of the secret marriage. Dunsey offers Godfrey to sell Wildfire for him. Godfrey tells Dunsey that is cool with him. Godfrey thinks about his secret marriage and remembers that he was pushed into by his brother for no other reason to get use it against him. Although he his married to Molly, he is deeply in love with Nancy Lammeter, who would make a great addition in the womanless household of the men, which has been that way for years since their mother died. Because Godfrey is too insecure, he only hurts more to know that he isnt with the woman he loves. ...

Responses to Students Posting Essay Example | Topics and Well Written Essays - 250 words

Responses to Students Posting - Essay Example I concur with you on the point that sometimes it is necessary to put ethics aside and cross the moral line in order to ensure security and protect the American populace. Considering the statement that to corner a criminal, one has to think like one, criminals have no rules or laws to abide by. In a case where there is no other option, the intelligence service personnel have to violate some laws when dealing with criminals such as terrorists. As much as this is illegal, I support the claim that sometimes, the undercover agents have to do so since if they do not cross the line, they will not effectively fight terrorism and America may face attacks similar to 911. Your yardstick of weighing between what is legal, ethical and moral is quite interesting and favorable especially in this topic of handling criminals. The legal aspect is usually ruled out in an instance where the only way out has to be an illegal process. As much as the 2014 National Intelligence strategy demands that the intelligence personnel must stick to some code of ethics that requires respect for human rights, sometimes they have to violate the ethics to save the larger masses. Torture is usually against the moral nature of human beings. The intelligence personnel however usually employ this method on some suspects in order to derive critical information from them. It is important to note that this method does not work in all cases especially those involving terrorists. Most of them work under oaths and will not let out any secret pertaining their organizations.

Federalism and Administration of Policy Research Paper

Federalism and Administration of Policy - Research Paper Example The federalist system in the USA enjoys shared power between federal, state and local governments and involves a requirement for cooperation, harmonization, and interaction. In the American federalism system, the local governments possess most of the discretions and responsibilities for emergency and disaster management where federal organizations are envisioned to deliver monetary support and resources. State governments act as intercessor by enabling the operations of federal policies regarding emergency and disaster management at the local level .Role Of Three Branches Of Federal GovernmentThe constitution comprises of a system which separates the authority where three branches of federal government can scrutinize and balance the role of each other. The three branches of federal government are ‘Executive branch’, ‘Legislative branch’ and ‘Judicial branch’ .Executive Branch: Executive branch comprises of the President, Vice President, and othe r Cabinet Officials such as State Secretary, Treasury Secretary, Defense Secretary and Labor Secretary among others. These officials are appointed by President and together they make up the executive branch. : The legislative branch comprises of the ‘Senate’ and ‘House of Representatives’.   The most important role of legislative branch is to make the rules, regulations and laws. It is the duty of legislative branch to decide the policies and how the federal money can be used for the benefits of the country4.