Month: November 2010

Wal-Mart Core Competencies

Wal-Mart is the largest public corporation according to the Forbes Global, it has been running chain of stores and warehouses nationally and internationally.Wal-Mart has been providing the thousands of brands under one roof at low cost compared to its competitors. • Wal-Mart has competitive advantage over its competitors because of the following core competencies. • As promised in its slogan Wal-Mart has been providing products at lower prices, it is possible due to the low cost operations. Wal-Mart share the value of low cost with customers by selling the products at lower prices. • Hard working, efficient and process oriented employees has been working with Wal-Mart. • Better use of technology to directly connect with supplier and partners. • Implemented Just-in-time inventory process to reduce the cost of managing inventory at Warehouses In summary. Wal-Mart core competencies are employees,cost efficient processes and relationship with supplier and partners by using...

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Dell Core Competencies

Core competencies is the source of competitive advantage for organization by performing the processes in a way that make it different from other competitors. The core competencies of an organization can be innovation, human resource,technology,marketing,processes,relation with customers and partners and etc. Core competencies of organization are rare, valuable for customers and difficult to imitate by competitors. Dell is one of the largest corporation that sells, manufacture and supports computer products and related hardware components. Dell has been doing well in the presence of strong competitors HP, IBM, Toshiba, Sony and Apple.It is worth to mention the core competencies of Dell Computer which make it strong and competitive in the IT industry. Dell has been using the Internet as distribution channel, it has eliminated the dependency of dealers and retailer. Customer can place orders on Dell Website with specification and get their PC or laptop at their door steps. Directly taking orders from customer reduce the cost because no distributer and retailers are involved, reduce the cost of managing inventory by directly ordering the hardware from suppliers based on number of customer order placed. Dell transfer value of low cost to customer by selling products at low price as compared to its competitors. Selling products at low cost by maintaining the quality has been the core competency of Dell. After sale support, marketing, relationship and partnership with suppliers and relationship...

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Apple Core Competencies

Core competencies of any Organization are the assets or expertise which are rare, difficult to imitate, unique and valuable for customers. In this article, I will cover the core competencies of an IT related Organization Apple Computers. People love to buy the products of Apple despite of the high prices. The products Apple offers in the market are more valuable for the customer as compared to its prices due to the following reasons. • Apple invests heavily in research and development to make its products different from others. • Attractive design and simple usage attract people towards Apple Products. • All the Apple products are based on latest technology. • Apple Knows when and where to market its products. • Innovative and domain expert human resource. • When customer thinks about Apple the first things come in mind innovative and unique design. •Apple always utilizes the opportunity available in the IT Industry. • iPhone, Store, iPod and iPad has been doing well in terms customer acceptance, revenues and profits. In summary, Apple products are unique so it’s difficult for competitors to imitate. Human resources are innovative and expert in different domain are rare in the market and latest use of technology, powerful architecture, attractive design, latest software’s and easy to use products are valuable and unique for the...

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Diversification Differences

Diversification is actually a way that allows any company to enter or to establish new lines. In other words we cay that diversification is a way that broaden the segments of any company. It helps in expanding the growth of a company by extending the lines of products, services and various markets. Diversification can be a positive strategy for a company and it can be a negative one. All it depends on the company how it adopt the strategies while implementing them and how they work. While implementing the diversification strategies, differences do arise that can lead towards two situations. Either it can be a positive one or it can generate some negative outcomes two. In order to make the diversification a positive one, companies should try to adopt these strategies ethically as well as efficiently. In order to have growth and sustainability, diversification is adopted by most of the companies. What actually executives believe is bigger is better and in order to have better diversification should be implemented. The diversification is categorized in two major parts: 1. Internal 2. External Internal diversification is something when a company tries to enter in a new market that is somehow related to the existing one. Whereas in external diversification, company enters into a new business line that is totally different from the existing one. Both are important and require equal attention....

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Strategic Group Mapping

Strategic group mapping one of a useful and innovative technique used to rectify and evaluate the rival’s firm position in an industry. In today’s market, every industry consists of rivals who enjoy benefits as compare to other companies. Thus, it is an important issue to rectify as well as to evaluate the major factors on the basis of which companies enjoys benefits and gain certain edge over other companies. Strategic group mapping is known as an important area with the help of which rival’s activities are easily identified. Below mentioned are some of the main issues related to strategic group mapping: 1. Helps in identifying barriers for entry and exit 2. Helps in identifying strategic areas with the help of which benefits can be easily gained 3. Helps in identifying best firms in the industry 4. Helps in rectifying major rivals Strategic group mapping is an important area with the help of which firms can easily analyze where they actually need betterments and with the help of this firms do well and gain well. Constructing strategic group map is a challenging task in which firms requires a clear and vivid analysis in order to gain effective outcomes. Below mentioned are some major steps required in constructing strategic group map: 1. Try to analyze and evaluate the rival’s major areas 2. Setting major areas properly. For instance price and geographic...

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Pharmaceutical Companies Mission Statement, Credo and Values

Pfizer Mission Statement We will become the world’s most valued company to patients, customers, colleagues, investors, business partners and the communities where we work and live. The Mission Statement of the Bayer Group Our expertise and our products are helping to diagnose, alleviate or cure diseases, improving the quality and adequacy of the global food supply, and contributing significantly to an active, modern lifestyle. Our expertise and innovative capability also enable us to offer solutions for protecting the climate and addressing the consequences of climate change. We are committed to the principles of sustainable development and to our role as a socially and ethically responsible corporate citizen. For us, there is a clear link between technical and economic expertise and our responsibility to work for the benefit of humankind, become socially involved and make a lasting contribution to sustainable development. At Bayer, we regard economy, ecology and social commitment as objectives of equal rank. We seek to retain society’s confidence through performance, flexibility and open communication as we work in pursuit of our overriding goals: to steadily create corporate value and generate high value-added for the benefit of our stockholders, our employees and the community in every country in which we operate. GSK Mission Statement The pharmaceutical industry is experiencing a time of unprecedented challenge. Patent expiries, regulatory issues and increased pressures from healthcare providers have combined to create...

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Harley-Davidson SWOT Analysis

Harley-Davidson, he joined the New York Stock Exchange as the HOG (Harley Owners Group), is well known for its motorcycles, which also represent the American spirit and image. Founded in the early time of 20. It is also known to survive the Great Depression. The firm provides heavyweight motorcycles specially designed for cruising. Following are the strengths, Weaknesses, Opportunities and Threats of Harley Davidson. Strengths • There are approximately 70% market share in relation to the market for heavyweight motorcycles. • Has its operation in the manufacture of motorcycles, and is also active in providing financial services. • The only American brand manufacturers of heavyweight motorcycles. • Has a strong brand and is well established in the consumer’s mind with the image of “freedom and strength.” • BRAC (Buell Riders Adventure Group), formed to support the brand and engage customers leverage their standard of fidelity. • Custom Motorcycles is a significant amount of revenue for Harley Davidson. • Excellent relationship with the supplier, so that the integrity of the work and performance is achieved without the expense of quality. • Strong image with respect to the goodwill of the factors (the company has its employees to join with communities to lend a hand.) • strong and durable long-term relationship with employees. • The company admits SNBC (Breast Cancer Network of Strength). • It is also compatible with the MDA...

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Difference between Proportional Tax and Progressive Tax

In one liner Progress tax is the tax with the increasing tax rate on different slabs and Proportional tax is of fixes rate tax to all slabs.  If the tax rate increases with gradual increase on income it is progressive tax. There are different slabs of incomes and proportional tax rates are defined by tax authorities.  It works as there are three slabs 0-1000, 1000-50000 and 50001-Above with a respective tax rate of 5%, 7% and 10%, the tax calculation for a person with income of 35000 will be on 5% for first 10000 and 7% for balance 25000.  This tax is considered to be most justified, as low income individuals have to pay less tax and more tax paid by high income people. Implementation is easy with less resistance by public. Progressive tax helps to decrease the inequality of wealth, which leads to number of social benefits.  It is also a view that rich people have more assets e.g., land, businesses, assets etc. which took more government infrastructure to taken care of these assets. So it is expected that rich should pay more tax as compare to poor people.  Unlike progressive tax a fixed tax rate is charged for all income individuals in proportional tax rate. For instance if the tax rate is set to 10% it would be remain same for a person whose taxable in income...

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Merits and Demerits of Islamic Economic System

Islam provides a complete and simple economic system which is the best alternative for both capitalism and socialism. It has the good things of both without sharing the evils. Islamic economic laws are divine and better in all aspects form man made economic systems.   The revenues of Islamic state comes form Zakat and Usher. These funds used for the welfare and defense of the state.  Islamic economic system strictly disallows the existence of interest, the philosophy behind is this makes society inactive as rich start lending their money for certain interest and would avoid productive activities due to risk factor which slowed the economic and trade cycle.  Merits of Islamic Economic System Democratic In Nature Islam is more diversified and dynamic religion and offers a complete economic system with giving the authority to individuals to get reward of their productive efforts. In Islam powers are exercised through the democratic process. Quran Says. “And they conduct their affairs by mutual consultation.” So the head of Islamic state is bound to consult with Shura Assembly about the affairs of state.   Provision of Basic Necessities of Life This economic system speaks about the common interest of society like socialism without the rigid philosophy of common ownership.  This is the primary duty of the Islamic state that it should provide the basic necessities of life like food, clothing, shelter and education to every...

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Conglomerate Diversification

An important and essential form of diversification that helps in building the internal structure of any firm or business is termed as conglomerate diversification. Conglomerate diversification helps in evaluating and preparing the business unit portfolio based on the financial position of the firm. This type of diversification is entirely different from concentric diversification. In this form, the new developed products are not directly related with the existing technologies, market as well as products. This is somehow interrelated with the financial position as well as stability of any firm or business. Conglomerate is a term that is used for tow or more than two corporations that are involved in different set of businesses in one single corporate structure. They are generally large and huge companies. There are various advantages as well as disadvantages of conglomerate diversification. Advantages 1. It helps in increasing the growth earning rates 2. Helps in creating internal capital markets 3. Helps in reducing the investment risk Disadvantages 1. The overburden management create extra costs 2. Various demographics based differences can increase the risks 3. Focus can be misbalanced Analyzing the current financial position, comparing it with the past financials and generating effective future outcomes are the core areas of conglomerate diversification. If the financials are string enough, the outcomes will be for sure the potential one. Therefore, it is important to create a healthy and positive...

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