Month: December 2012

Environmental Scanning

Environmental scanning is  a process of conducting a research (Primary or secondary research) and gathering external environment information or industry analysis. External environment includes competitor analysis, customer analysis, supplier analysis, industry analysis, government analysis and other external factors and entities. The external information is used to formulate strategies to capitalize on external opportunities and reduce the impact of external threats.This is the main reason for identifying, evaluating and monitoring external opportunities and threats. Majority of organizations spending millions of dollars to obtain external information. Indeed, this information helps to get to know about external factors which are important for...

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Strategic Management and Empowerment

There could be many benefits for practicing strategic management in organizations. However, empowerment is one of the best benefit that comes with strategic management in organization. Empowerment can be defined as, increase employee effectiveness, confidence and contribution by increasing his/her authority in term of making decision or contribution in formulating strategies. Majority of organizations have realized the importance and benefits of empowerment. Therefore, they are decentralizing the strategic process in order to involve lower level managers and employees in planning. As the time passes, more and more organizations are moving from centralization to decentralization structure. The worst thing a strategist could do is to develop the strategies and pass it to the line manager for execution. By involving line manager in strategies formulation makes him owner. Giving ownership to people involved in implementation is a key of success. However, strategic management does not guarantee success. Although, strategies formulation are primary right of CEO, board of directors and middle management. However, taking operational manager and ground staff on board is a key for gaining commitment for changes that may arise during the implementation and evaluation...

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Business Ethics

The principals of conduct within organizations that guide decision making and behavior. It tells the different between “right & wrong”. Better strategic management is not possible without good business ethics; organizations having good ethics are doing good business! Ethics related issues include but not limited to the following; product safety, sexual harassment,AIDS,smoking,political & religious talks,dress code,sharing confidential information outside organization and inappropriate gifts. Following are the code of ethics and conducts of some major companies: Amazon’s Code of Conduct or Ethics Apple’s Code of Conduct or Ethics Dell’s Code of Conduct or Ethics Facebook’s Code of Conduct or Ethics Google’s Code of Conduct or Ethics Intel’s Code of Conduct or Ethics LinkedIn’s Code of Conduct or Ethics Microsoft’s Code of Conduct or Ethics Twitter’s Code of Conduct or Ethics Yahoo!’s Code of Conduct or Ethics There are many ethical question arises after inclusion of Internet in workplace. However, in today’s world organization is dead in absence of Internet therefore it become a critical requirement for doing business. Following are few examples for breaching business ethics: 1. Doing personal business at workplace. 2. Sending religious emails 3. Hacking someone network/system using workplace Internet facility. 4. Watch/downloading inappropriate contents. In short, organization values, culture, policies, decisions and  reputation are based on business...

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What are Annual Objectives?

Annual objectives are the objectives made for a year. Annual objectives are the short term milestones should be achieved in order to meet long term objectives. Similar to long term objectives, annual objectives should be SMART; Specific, Measurable,Attainable,Realistic and Timely. Annual objectives should be established at following levels of an organization: 1. Corporate level (For example, GE is a corporation) 2. Divisional level (For example, GE’s divisions include GE Capital, GE Energy, GE Technology Infrastructure, and GE Home & Business Solutions) 3. Functional level (For example, GE functional areas could be Finance, Marketing, Management, HR, Manufacturing, Supply Chain, Technology and etc) A list of annual objectives is required for achieving long-term objective. Annual objectives plays critical role in strategy implementation on the other hand long-term objectives are important in strategy formulation. Example of Annual Objectives XYZ corporation has an annual objective to increase market share by 10%, revenues and profits by...

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Internal Rate of Return (IRR)

IRR Definition The Internal Rate of Return is the discount rate which makes the Net Present Value(NPV) of all cash flows from a project equal to ‘zero’. Internal Rate of Return can also be defined as the return on investment. Explanation Internal Rate of Return indicates the feasibility of a project. Which means higher the Internal Rate of Return of the project, the more feasible is the project to undertake. Decision Making Internal Rate of Return helps a firm to decide which project to consider amongst several other projects. The project with the highest Internal Rate of Return would be considered the best to undertake. Internal Rate of Return also helps the firm in forecasting the expected profitability and growth of that particular chosen project. In other words, you can also think of Internal Rate of Return as an expected growth rate of a chosen project. Though the actual rate of a project may differ from the estimated Internal Rate of Return, but a project with highest Internal Rate of Return will have the strongest chances of providing high growth as compared to the other available projects. Internal Rate of Return in Securities Internal Rate of Return can also be used for securities. In security market, Internal Rate of Return can also be compared with several other rate of return of different securities. In this case. Internal Rate of...

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SWOT Analysis of Wal-Mart (WMT)

Following are the Strengths, Weaknesses, Opportunities and Threats (SWOT) of Wal-Mart. Strengths 1- Huge and loyal customer base. 2- Strong employees base. 3- Strong financial position. 4- Offer low prices to its customers in retail industry. 5- Holding top position in Fortune 500 companies. 6- Power brand in retail industry. 7- It has been offering wide range of products. 8- Wal Mart core competencies includes information technology, supply chain and inventory. 9- Strong operations in USA, UK and China. 10- Large network of retail outlets. 11- Domestic presence in USA is very strong. 12- Huge market share in USA. Weaknesses 1- Complaints have been received regarding the product quality of Wal-Mart. 2- Improve HR policies for employee retention. 3- Product recall 4- Simple retail outlet structure. 5- Revenues are declining. 6- In past, Wal-mart was criticized for pressurizing employee Union. 7- Reducing suppliers profit margin. Opportunities 1- Expansion in existing domestic and international markets. 2- Market development by entering into countries; India, Pakistan and Bangladesh. 3- Offering products online for sale could increase revenues. 4- Opt for outsourcing or partnership model  for remote marketing. 5- Expand brand portfolio 6- Contribute to corporate social responsibility. 7- Improve perception of people via different programs. 8- Partnership or acquisition of supplier(s) would further reduce the cost of the products. 9- Promote labor laws and fair trade. Threats 1- Economic slow down in...

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Adidas SWOT Analysis

SWOT Analysis of Adidas operating in Apparel industry; Strengths,Weaknesses,Opportunities and Threats of Adidas. Strengths 1. It has high brand value among the consumer. 2. It has been sponsoring major sports events including Olympics and sports team. 3. Adidas products are available worldwide. 4. Producer of wide variety of products; sports footwear, Adidas,bags, shirts, watches, eyewear, and other sports and clothing related good. 5. Strong workforce 6. Customer retention ratio is high 7. Impactful marketing strategies attracting consumers to buy Adidas products. Weaknesses 1- The prices of products are high 2-  It has been serving limited segment 3- Cost structure of company is high Opportunities 1- Market penetration in current markets 2- Develop new products to attract new consumers segment. 3- Contribute to corporate social responsibility 4- Strong its market position in Pakistan, India and Bangladesh 5- Expand customer base 6- Merger and acquisitions Threats 1- It has been facing strong competition from Nike and PUMA. 2- Demand of the products could decreased due to economy slow down in European countries. 3- Social and environmental concerns due to Human right violations and employment practices. 4- Macroeconomic risks due to change in consumer spending and confidence. 5- Technological and design changes. 6- Unrest political...

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Starbucks Mission Statement

Our Starbucks Mission Statement Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Here are the principles of how we live that every day: Our Coffee It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this; our work is never done. Our Partners We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard. Our Customers When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers – even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection. Our Stores When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. It’s about enjoyment at the speed of life – sometimes slow and savored, sometimes faster. Always full of humanity. Our Neighborhood Every...

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ConocoPhillips Vision & Mission Statement

ConocoPhillips Vision Statement The vision of the Global Water Sustainability Center (GWSC) is to become the center of excellence for key water-related technologies particularly those applicable to the petroleum and municipal sectors. ConocoPhillips Mission Our primary mission is to develop innovative ways to treat and reuse by-product water from oil and gas production and refining operations. Vision and Strategies Our Vision Be the leading independent oil and gas supplier to the Chinese economy, delivering value to the people of China, local communities, investors, partners and employees through the application of our SPIRIT value. Our Strategies Grow the China Business Unit:     Maximize the value of the Bohai Bay and Xijiang assets;     Identify and pursue new opportunities to provide energy to China, primarily targeting the natural gas business;     Leverage our global capabilities and knowledge sharing opportunities;     Develop skilled and motivated people to realize this growth. Source: http://www.globalwsc.com/en/who-we-are/vision-mission http://www.conocophillips.com.cn/EN/about/vision/Pages/index.aspx http://www.conocophillips.com/EN/about/who_we_are/purpose_values/Pages/index.aspx Industry: Petroleum...

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Rio Tinto Group SWOT Analysis

British based International Mining and Metal Corporation Rio Tinto SWOT analysis; Strengths,Weaknesses, Opportunities and Threats analysis:   Rio Tinto Strengths 1. Reputable corporation operating in Melbourne, Australia since 1873. 2. Manufacturer of first class products therefore, famous among people among the world. 3. Rio Tinto manufacture variety of products which includes copper, diamonds, coal, aluminum, uranium, iron ore, gold and also materials that are used in industry such as talc, salt, zircon, borates and titanium oxide. 4. According to public’s choice in March 2009, it’s considered as the forth largest mining company. 5. It has been serving worldwide. 6. Huge employees base approx 68,000. 7. Upward trend in revenues and profits.   Rio Tinto Weaknesses 1. Negative growth in revenue according to quarterly financial report of 2012. 2. Prices of Iron ore fell 20% result in the segment fall to 9% to 12.5 billion. 3. Incapable for facing risk regarding its country.   Rio Tinto Opportunities 1. India and China are growing segment. 2.Coal has great demand all over the world. 3. It should divest the weak segments. 4. It should further invest in strong segment such as coal. 5. Address environmental concerns by contributing to society in the shape of donations,charity and other projects.   Rio Tinto Threats 1. Prices of copper and iron-ore are decreasing. 2. High expectation of investors on ROI. 3. Economy downfall may impact...

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