Overview Of Walmart Cost Leadership

Overview Of Walmart Cost Leadership The low cost strategy emphasizes having the lowest costs, not necessarily the lowest price, in a market. A firm attempting to realize a low cost strategy should stress resources that facilitate efficiency. A firm that has successfully achieved a low cost position will have the lowest costs relative to competitors. A firm can use such a position to either lower its prices and gain market share and sales from rivals or keep its prices at the present market level and make relatively more profit per unit sold. The key idea is that cost and price are independent choices, and this strategy is focused on cost. The differentiation strategy focuses on developing a unique product or (equally useful) a perception of a unique product that customers are willing to pay a premium for. If a firm is not receiving a premium price for its goods or services it is NOT a differentiator. A firm seeking to follow a differentiation strategy should attempt to develop and enhance its resources that promote customer responsiveness, quality, and/or innovation. Note that costs are still important to a differentiator because it is possible that the costs of making the product unique will be greater than the premium consumers are willing to pay for it. The firm can choose to compete in the mass market with a broad scope, or in a defined, focused market segment with a narrow scope. In either case, the basis of competition will still be either cost leadership or differentiation. In adopting a narrow focus, the company ideally focuses on a few target markets (segmentation strategy or niche strategy). The choice of offering low prices or differentiated products/services should depend on the needs of the selected segment and the resources and capabilities of the firm. It is hoped that by focusing your marketing efforts on one or two narrow market segments and tailoring your marketing mix to these specialized markets, you can better meet the needs of that target market. The firm typically looks to gain a competitive advantage through product innovation and/or brand marketing rather than efficiency. Competitive Advantage Cost Uniqueness Broad Competitive Scope Narrow Our focus in this report is to showcase implementation of these strategies by picking examples of companies that have successfully used these strategies to gain competitive advantages. Walmart: Cost Leadership Founded by Sam Walton, the first Wal-Mart store opened in Rogers, Arkansas, in 1962. Seventeen years later, annual sales topped $1 billion. By the end of January 2002, Wal-Mart Stores, Inc. (Wal-Mart), was the worlds largest retailer, with $218 billion in sales. Wal-Marts winning strategy in the U.S. was based on selling branded products at low cost. Each week, about 100 million customers visited a Wal-Mart store somewhere in the world. The company employed more than 1.3 million associates (Wal-Marts term for employees) worldwide through more than 3,200 stores in the United States and more than 1,100 units in Mexico, Puerto Rico, Canada, Argentina, Brazil, China, Korea, Germany, and the United Kingdom. In 2001, Fortune magazine named Wal-Mart the third most admired company in America, and the Financial Times and PricewaterhouseCoopers ranked it as the eighth most admired company in the world. The following year, Wal-Mart was named number one on the Fortune 500 list and was presented with the Ron Brown Award for Corporate Leadership, a presidential award that recognized companies for outstanding achievement in employee and community relations. Wal-Mart enjoyed a 50 percent market share position in the discount retail industry. Procter Gamble, Clorox, and Johnson Johnson were among its nearly 3,000 suppliers. Though Wal-Mart may have been the top customer for consumer product manufacturers, it deliberately ensured it did not become too dependent on any one supplier; no single vendor constituted more than 4 percent of its overall purchase volume. About 85 percent of all the merchandise sold by Wal-Mart was shipped through its distribution system to its stores. (Competitors supplied to their retail outlets on average less than 50 percent of the merchandise through their own distribution centers.) The company owned a fleet of more than 3,000 trucks and 12,000 trailers. (Most competitors outsourced trucking.) Wal-Mart had implemented a satellite network system that allowed information to be shared between the companys wide network of stores, distribution centers, and suppliers. The system consolidated orders for goods, enabling the company to buy full truckload quantities without incurring the inventory costs. Wal-Marts Value Proposition Wal-Marts value proposition can be summed up as everyday low prices for a broad range of goods that are always in stock in convenient geographic locations. It is those aspects of the customer experience that the company overdelivers relative to competitors. Underperformance on other dimensions, such as ambience and sales help, is a strategic choice that generates cost savings, which fuel the companys price advantage. If the local mom-and-pop hardware store has survived, it also has a value proposition: convenience, proprietors who have known you for years, free coffee and doughnuts on Saturday mornings, and so on. Sears falls in the middle on many criteria. As a result, customers lack a lot of compelling reasons to shop there, which goes a long way toward explaining why the company is struggling to remain pro ¬Ã‚ table. Walmart in 2010 Growth opportunities continue. Price leadership continues to be the cornerstone of how it goes to market. Growth in the United States will come from additional penetration into more metropolitan markets, as well as from new formats and stronger integration with the online business. Walmart.com traffic exceeded one billion visits this past year, growing more than 15 percent over the previous year through Site-to-Storeà ¢Ã¢â‚¬Å¾Ã‚ ¢ and home delivery. Leverage scale and reduce costs. Innovation, process improvements and strong management teams drove significant improvements in our business. Walmart repositioned the business to leverage operating expenses on a slower rate of sales growth this past year. Improved productivity through enhanced scheduling systems better matched associate staffing levels in stores to customer traffic. Stronger supply chain processes also improved inventory flow. Merchandising and planning systems contributed to lower inventory levels, which were also benefited by increased sell-through. Global sourcing initiatives now under way strengthen efforts to drive down the cost of goods and pass those savings on to customers. Improved returns. Walmart significantly increased its cash flow and return on invested capital in fiscal 2010. Gross margin improvements, tight expense control, strong inventory management and efficient capital allocation contributed to this improved performance. It reduced year-end inventory by $1.8 billion, or 7.6 percent, and increased inventory turns as well. Apples differentiation approach enhances the companys competitive advantage in the market. It favors Apple to continue down a path that not only maintains premium positioning but also enhances it. It is clearly doing this at the research and development (RD) level. The introduction of a new portable manufacturing process (the unibody MacBook and MacBook Pro) and a relatively fast-paced operating system release cycle are clearly a function of Apples ever-evolving differentiated positioning. The upcoming Mac OS X Snow Leopard (successor to Mac OS X Leopard) and iPhone OS 3.0 will continue to push the envelope and set the groundwork for continued innovation in the years to come. Apple has never shied away from starting over. It did this with the transition to Mac OS X, the transition to Intel processors, and the re-design of their portable Macs. Each enhancement widens the differentiation gap that competitors must narrow or copy in order to compete with Apple. The Company participates in several highly competitive markets. While it is widely recognized as a leading innovator in the markets where it competes, these markets are highly competitive and subject to aggressive pricing. To remain competitive, Apple believes that increased investment in research and development and marketing and advertising is necessary to maintain or expand its position in the markets where it competes. Digging deeper into the strategy, the trade-off protects Apples unique position. Competitors have two main ways to imitate an incumbent. A competitor can (1) reposition itself or (2) straddle, an approach that attempts to match the incumbents position while maintaining its existing position. By maintaining its price premium at the expense of unit volume, Apple has created an imitation barrier that competitors cannot easily cross. PC competitors cannot realistically enter Apples space by transforming themselves into a premium brand without alienating or pricing out existing customers. If a competitor decided to reposition or straddle it would have to compete with Apples decades long premium brand equity. Thus, PC vendors have two transformational issues working against them, time and cost. Apples competitors will not be able to transform their brand image overnight. Any such effort will take considerable amount of time on numerous dimensions ranging from product design to marketing. T his leads to the second issue, cost. Any transformation undertaken by a competitor will cost tens or perhaps hundreds of millions of dollars in a sustained re-branding and advertising campaign. In todays marketplace, a cost of this magnitude is not feasible. From a trade-off perspective, Apple has systematically analyzed what not to do; attempt to compete at lower price points. Apples entry into retailing, for example, is designed to provide better point-of-sales service to customers wishing to purchase an Apple product than can be had from independent stores. By helping to raise the overall level of differentiation associated with Apples offering, the strategy is designed to strengthen Apples competitive position. Zara: Focused Differentiation Zara is a phenomenon in the textile industry; it was a start-up in Spain and gradually has evolved to be today a very successful leader quoted company in its industry. Zara, the most profitable brand of Inditex SA, the Spanish clothing retail group, opened its first store in 1975 in La Coruà ±a, Spain, they have expanded operations into 45 countries with 531 stores located in the most important shopping districts of more than 400 cities in Europe, the Americas, Asia and Africa. Throughout this expansion Zara has remained focused on its core fashion philosophy that creativity and quality design together with a rapid response to market demands will yield profitable results. In order to realized these results Zara developed a business model that incorporated the following three goals for operations: develop a system the requires short lead times, decrease quantities produced to decrease inventory risk, and increase the number of available styles and/or choice. These goals helped to formulate a unique value proposition: to combine moderate prices with the ability to offer new clothing styles faster than its competitors. These three goals helped to sha pe Zaras current business model. Capabilities of Zara, or the required resources needed to exploit the opportunities and execute this conceptual strategy, are numerous for Zara. Zara maintains tight control over their production processes keeping design and manufacturing in-house or with some strategic partnerships located nearby Headquarters. Value drivers for Zara are both tangible and intangible in the benefits that are returned to all stakeholders. Tangibly, Inditex, the parent company of Zara, has 11.02% net margin on operations and their market capitalization (Equity market value) is à ¢Ã¢â‚¬Å¡Ã‚ ¬13, 981 (in thousands) in 2002. Their net working capital (current assets current liabilities) is à ¢Ã¢â‚¬Å¡Ã‚ ¬133 (in thousands) . Additionally, the success of Zara can be demonstrated through their outstanding financial performance. From 1996 to 2000, Inditex SA tripled their corporate profits and in 2001, a year of overall economic downturn in the retail industry, Inditex SA saw a 31% increase in profits. Int angibly, customer loyalty and brand recognition have provided significant value to Zara. The number of consumers they attract continues to rise and their brand is synonymous with the cutting edge of fashion at affordable prices. The successful implementation of Zaras business model provides great value to stakeholders and differentiates their business from their peers. Vertical integration: a distinctive feature of Zaras business model, has allowed the company to successfully develop a strong merchandising strategy. This strategy has led Zara to create a climate of scarcity and opportunity as well as a fast-fashion system. Zara manufactures 60% of its own products. By owning its in-house production, Zara is able to be flexible in the variety, amount, and frequency of the new styles they produce. Also, 85% of this production is done through the season, which allows the chain to constantly provide its costumer with very updated products. Traditional retailers lack this flexibility. Traditional retailers are obligated to place production orders to manufacturers overseas at least 6 months in advance of the season. Zara purchases its fabric in advance , much of it in grienge form this gives flexibility to colour print , to desired effect. Low current inventory: Regular customers know that new products are introduced every two weeks and most likely would not be available tomorrow. Therefore, Zaras scarcity climate allows the company to sell more items at full price. This strategy minimizes Zaras total cost because it reduces 15-20% of markdown merchandise compare to a traditional retailer. Zaras centralized distribution facility gives the chain a competitive advantage by minimizing the lead-time of their goods, distribution center is a place where merchandise is moved rather than stored. The current ratio shows that for every euro in short-term debt, Inditex has 1.02 million euros in current assets. HM however, has 3.40 million euros in current assets for every euro in short-term debt. The company designs and cuts its fabric in-house and it acquires fabrics in only four colors to keep costs low. Zara postpones dyeing and printing designs until close to manufacture, thereby reducing waste and minimizing the need to clear unsold inventories. Technology: Whether measured by IT workers as a percentage of total employees or total spending as a percentage of sales, ZaraÊ ¼s IT expenditure is less than one-fourth the fashion industry average. Zara excels by targeting technology investment at the points in its value chain where it will have the most significant impact, making sure that every dollar spend on tech has a payoff. It still uses the DOS system without much networking capability, whereas its competitors like Prada use RFID technology, Benneton uses SAP. Marketing Advertising: Zara also has an advantage over its competitors due to its low advertising costs. Zaras advertising investment is 0-.3% as compared to traditional retailers who expends 3 4%. Zara relies mainly on its stores to project their image. For that reason, Zara has a department, which exclusively works in acquiring global prime real estate locations. In addition, this department is responsible for the frequent refurbishing of store layouts, as well as the creation of a common window display for Zaras global stores. Controlling notorious bottlenecks along the supply chain is key to speed. For example dyeing and fit are critical processes within the supply chain. Zara is a large investor in a dye and finishing plant-a notorious bottleneck. Its control allows them to oversee the dyeing process. A further trouble spot is sewing. Even though Zara uses sub-contractors some subcontractors, it carries out the bulk of all cutting itself-a crucial process that determines fit. 60% of the manufacturing processes are outsourced in countries close to the Zara headquarters in Spain to help achieve a quick turnaround. Zara maintains a strong relationship with their contractors and suppliers-viewing them as part of the company. To successfully react to consumers demands, design decisions are delayed as long as possible. Typically, Zara pre-commits to 50%-60% of its production in advance of the season, whereas other clothing retailers commit to 80%-90%. Thus Zara reserves mill capacities to ensure production fac ilities are available when needed. Value Chain In todays competitive environment, Zara has shown that fine tuning the supply chain is no longer a strategic tool, but a necessity. It has shown that supply chain management can be managed provide sustainable competitive differentiation and positioning on the one hand and increase throughput, reduce inventories and operating expenses on the other. Zaras Product Offering Zaras unique capabilites allow it to cater to a focussed set of customers yet at a cost leadership position. Zara has a competitive advantage in logistics, with production just in time with better performance that its competitors, it also has the ability to renew all what is in their stores in few weeks. It also counts with storage in Europe, in Zaragoza that is close to the distribution centres. Product Offer Supply process High customisation Low volume High Margin High quality High volume High standardisation Low unit margin Low quality Flexible process High fashion: out of price Rigid Process ZARA MS :Out of fashion According to Porter, the reason so many firms suffer aggressive, margin eroding competition, is because theyve defined themselves according to operational effectiveness rather than strategic positioning. Operational effectiveness refers to performing the same tasks better than rivals perform them. Everyone wants to be better, but the danger in operational effectiveness is in sameness. At its heart Zara is building on a vertically integrated demand and supply chain, while most other textile chains rely on outsourcing and cheap labour in China. It enables company to short turnaround times and achieves greater flexibility, reducing stock to a minimum and diminishing fashion risk to the greatest possible extent. Ikea: Focused Cost Leadership Ikea is one of the known global home furniture and household goods retailer which is a privately owned company. It was established by Ingvar Kamarad Sweden and in year 2008 the company owned 244 Ikea stores in 24 nations and the management is still planning to open 23 new stores. The company has also 32 stores on 16 nations and these stores were still managed and owned by franchisees outside the Ikea Group which extends the global reach of Ikea to 35 territories overseas. The Ikea Group has also been able to diversify their products beyond furnishings and furniture into food products and prefabricated housing. The company has been able to ensure that they have franchise agreements among most of the overseas operations to ensure capitalization of local marketing expertise and practices of the franchisees. The concept and trademark of Ike is owned by Ikea Systems BV and the operations of the company are basically controlled by Ingka Holding. Primarily, the company is based on providing broad range of well-designed, functional home furnishing goods at an affordable cost to attract more customers. This concept of the Ikea is the foundation of their business operations which includes product designing, manufacturing, transportation, retailing, and assembling. The company sees to it that they work hard in attaining their business goals and providing quality products and services among their target market. Strategy Analysis In order to analyse the capabilities of IKEA, different marketing tools will be considered. This includes the SWOT Analysis, Porters Five Forces Model, and Core Competencies analysis. Capabilities Analysis According to Kim and Weaver (2000), the administration and management of a particular business organization entails full utilization of the resources of the company in order to lead, direct, and control operations to meet the set objectives. It can be said that IKEA has been able to use strategic approach to sustain their competitive advantage. One of the capabilities IKEA is how the leaders of the company do their business. Guided by their vision and mission, the leader and management of the industry clearly illustrate integrity in all their actions. The management has also strong commitment in promoting the company values and the value of diversity among the employees and staffs. In addition, the management of the company has been able to understand the priorities of the business and make every decision in line with the strategic direction by giving consideration to the effect on all aspects of the business and on other stakeholders. Another sustainable capability of the company is its continuous focus on the importance of both internal and external customers to ensure that these customers remain loyal to them. The company also makes it sure that they motivate, inspire, coach, guide, and support their staffs to realise the mission of the IKEA. Furthermore, the companys ability to identify and recognise contributors is another factor that sustains the companys competitive advantages. The ability of the management to diversify and differentiate their business strategy to dominate the global market can also be considered as the major capabilities of the IKEA. Swot Analysis In this report, the analysis of the current situation of Ikea will be done using different marketing tools. Herein, IKEA will be analysed through the use of SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis. The purpose of this internal and external analysis is to see what the organization has to work with as it begins to position itself to deal with the opportunities and threats identified through the analysis of the external environments. Specifically, it helps identify what existing strengths and weaknesses might impact the organizations value creation capabilities. Strengths As mentioned, IKEA has been one of the leading brands in household furnitures in its global operations. One of its strength is its being a very profitable company, in both its domestic and international branches. In addition, IKEA is a global brand established upon a reputation of quality products and services with almost 10,000 product range and 244 stores in different regions. Furthermore, one of the strengths of IKEA is its strong ethical values integrated with its business strategy which include cost leadership and product differentiation. The strength of the company can also be attributed to their ability to distribute their product effectively in the global market. One of their strengths is their ability to diversify when the company has been able to launch their private label food items in 2005. The offerings of the company include Swedish dishes which include meatballs, smoked elk sausage, roll-mop herring, and crisp breads. Weaknesses Although IKEA encompass much strength, the company has also its weaknesses. One of the weaknesses of the companies is the notion that IKEA remain vulnerable to the plausibility that the creativity and product development may falter over time. In addition the company has also lacking the ability to look for a business portfolio for various regions, like in the case of IKEA so as to spread business risk. Opportunities With the management system and the marketing strategies implemented within IKEA as well as with the strengths that the company, it can be said that IKEA has bigger opportunities to still dominate the global market in terms of providing quality household furniture as well as food products and services to its residents, commercial and industrial clients or even have an opportunity to be the most competitive brands in the global market. With the continuous innovation of the company and the support that it shows to different needs of the region, the company can gain loyalty from their customers to make them more competitive in the marketplace. The continuous initiatives of the company in diversification of its revenue resources also open new opportunities to make the business become stronger to outgrow all its rival companies. Such opportunities will include the development of new products, leveraging the companys investment in the low cost leadership and differentiation, and other business opportunities in both non-core and core areas. In line with IKEA, the household furniture as well as food products and services have the opportunity to expand their market in the global level, and it can be said that IKEA is on its way ahead of its competitors in terms of international expanding. Threats One of the threats of that IKEA may face is the emergence of a new and stronger company which offered a more diversified household furniture as well as food products which is cheaper than the existing companies. If these companies will not be able to provide the latest trends in this kind of business industries, the company may experience some industrial threats. In order for the company to maximise its strengths and minimise or totally eliminate its weaknesses, the company must be able to use or impose a strategic management system that will help them enhance their business operations. Porters Five Forces Model It can be noted that an industry is a group of firms which market its products and services closely substituted from one another. According to Porter (1980), some firms tend to become more profitable and gain competitive advantage than their rivals companies. With this, a company like Ikea should always bear in mind that the industry will only survive in the global market by using a strategy that will sustain their competitive advantage and position. Through the use Porters Five Forces Model, the analysis of the industry aspects of the IKEA will be analysed. New Market Entrants The first element of Porters Five Forces Model includes threat of entrance of new industries. Apparently, the objective of IKEA is to build a position in the household furniture as well as food shops service industry and to be recognised as company which would always be competitive in the global market. IKEA is said to be a world-class companies in providing household furniture as well as food products and services in market environment. With this, it can be said that because of the existence of IKEA, having another household furniture as well as food shops is unnecessary unless, the new company which will emerge will have the appropriate and efficient marketing strategy to outgrow both leading companies. Hence, it can be said that the household furniture as well as food shop belongs to a higher entry obstruction because of the existence of competitive companies like the companies and their other rival industries. Supplier Power It can be noted that the conditions and the present system in the household furniture as well as food shop industries largely determines the extent in which effective competition can be achieved. The bargaining power of a supplier could be a threat for the profit of the company, and both IKEA is very much aware of it. In this manner, IKEA is trying to have a good contract with its supplier, herein; IKEA makes it sure that they are also benefited in the said contract while the suppliers enjoy the agreement with them. In this kind of business, there is a high level of competition in the household furniture as well as food brand supply market. Competitive Rivalry IKEA still enjoy their competitive position in the global market. In this analysis, it shows that the company still dominate the household furniture as well as food market by providing those quality and innovative services. This means that IKEA is still on top of the competition among other household furniture as well as food retail companies in world. The company enjoys its competitive position in the region and still trying to sustain its competitive advantage among its rivals. Buyer Power Porters also include in his model the concept of the bargaining power of Buyers. Hence, the management of IKEA makes sure of it that their clients and customers in all aspects will be satisfied for the quality service they provide. Specifically, the company has focused their marketing approach on the demands and needs of the buyer for a household furniture as well as food service source that satisfy them and heavily positioned their products in this segment. The company also uses their corporate responsibility as a good public image to make the company more appealing to their customers. The competitive aim of each company is to do significantly a better job of providing what buyers are looking for and, thereby enabling the firm to gain competitive advantage and out compete rivals within the marketplace (Thompson, Strickland Gamble, 2003). Threats of substitutes In terms of threats and substitutes, although the company is aware that there were threats for substitute products or retail household furniture as well as food shops because of its high demand in the global market, specifically now that companies offered household furniture as well as food alternative products and flavours which suit the needs of the household furniture as well as food market. The company has been able to continue to grow and expand their business in various parts of the world. It can be said that IKEA has been able to use various strategies which enable them to sustain their competitive position in the global market. Ikea Strategy IKEA follows the focused cost leadership strategy. Young buyers in search of stylish and fashionable furniture and household accessories at a low cost are IKEAs targeted market segment. For these customers, the firm offers home furnishings that combine good design, functionality and acceptable quality at low prices. According to the firm, low cost is always a priority. This applies to every phase of their activities. IKEA emphasises several activities to keep its costs low. For example, instead of relying primarily on third party manufacturers, the firms engineers design low-cost, modular furniture ready for assembly by customers. IKEA also positions its products in domestic settings. Typically, competitors furniture stores display multiple varieties of a single item in separate rooms, meaning that their customers examine living room sofas in one room, tables in another room, chairs in yet another location, and accessories somewhere else entirely. In contrast, IKEAs customers can view different furniture combinations (complete with sofas, chairs, tables, and so forth) in a single setting, which eliminates the need for sales associates or decorators to help the customer imagine how a furniture arrangement would look when placed in the customers home. This approach requires fewer sales personnel, allowing IKEA to keep its costs low. A third practice that helps keep IKEAs costs low is expect

Social Media Is Good or Bad?

Children can gain social confidence from interacting with other people online, which may help them feel more secure in new situations. Some Children can help people in the social networking websites like Facebook and Twitter. Some knowledge that they do not know, they can ask them. While some of the knowledge he/she does not know, he/she can ask his social networking’s friends. Friends should help each other, so that they can build a strong bond in our friendship. What Happened to quality relationships?While social networking sites can aid to online relationships, real life relationships can become weak or even non existent. While your cooped up in your room on your laptop, you are spending less time with real life and legitimate relationships and spending more time on a false friendship with some one online. What ever happened to a good old phone call or meet up? Is this really where my generation is headed? We are in trouble. the brain cannot complete the learning process It is not yet known as to the affects that a combination of hard copy books and reading off the internet will have on young people.But there is evidence for older people that suggests they are finding it more difficult to stay focused and even actually read something more than 3 pages and this evidence is from a previous columnist for the guardian and executive editor of the harvard business review author Nicholas Carr. Furthermore, the information we read on the internet minimizes the amount of thinking our brains have to do this is not a good sign if anything, the analyzing process of the text is more important, this process is there to help us remember information as opposed to just finding the answer.

Income Inequality Essay

Nowadays, China has become the second largest economy in the world. The GDP (gross domestic product) of china was growing at 9. 7% per year in average since 1978, which the year of Chinese â€Å"open door† politic founded. China also has become the biggest producer and consumer in many key agricultural and industrial markets and the largest FDI recipient among the developing countries. The performance of china in developing of economy is called â€Å"china’s economic miracle†, which be studied by many economists. However, there are also bad results with the development of economy in china such as environment disruption, corruption and income inequality, which have been seen as important issues to Chinese society and its future economic growth. The income inequality in china The rising income inequality in china is seen as the most important issue to Chinese society and its future economic growth by many economists recently. The income inequality in china is complex and multi-dimensional, which is divided to four aspects that rural-urban income inequality, regional inequality, marginalisation and class formation. The rural-urban income inequality actually has been existed in china since 1949. However, with the economic focus from agriculture shift to industry, the rural-urban income inequality gets large increased from 1984. These data which followed significantly showed the huge increasing of urban-rural income inequality in china Figure 1 Urban and rural incomes per capita (1978-2006) Figure 2 Ratio of urban/rural incomes per capita (1978-2006)  As shown in figure 1, the urban-rural income inequality per capita increased from 200 Yuan at 1978 to about 8,000 Yuan at 2006. The figure 2 also showed about the increasing urban-rural income inequality that the ratio of urban to rural income per capita increased from 2. 5 at 1978 to 3. 3 by 2007 though it lower to 1. 8 at 1984. The regional income inequality is mainly caused by the â€Å"open door† policy. The provinces near coast in china such as Guangdong, Jiangsu and Zhejiang have geographical advantage to get FDI (foreign direct investment) and export products. At the same time, the Chinese government made these places as special economic zones, which provided preferential tax policy to foreign investors to â€Å"make a few people rich first†. As the figure 3 showed below, the east only accounted for 42. 8% population but get 86. 9% FDI and 92. 6% exports in china. The centre and west just get very little FDI and exports. Therefore, this policy tendency and geographical advantage made a deep gap between regional areas, mainly the southeast and northwest areas. Figure 3 Regional income inequalities in GDP, FDI, and exports in China in 2006  Figure 4 Regional income inequalities in per capita GDP, 1992 and 2007 at current prices As shown in figure 4, the regional income inequality in per capita GDP was not significant in 1992 except few cities like Beijing and shanghai. However, the data showed that in 2007, there is an obvious income inequality per capita GDP between east and west, which the highest number is 7 times to the lowest number. The Marginalisation and class formation are the other important aspects of income inequality in China. Economists usually use the Gini coefficients to describe the income inequality in a significant way. The Gini coefficient can range from 0 to 1; it is sometimes multiplied by 100 to range between 0 and 100. A low Gini coefficient indicates a more equal distribution, with 0 corresponding to complete equality, while higher Gini coefficients indicate more unequal distribution, with 1 corresponding to complete inequality. Generally, the income inequality is acceptable if the Gini coefficient range from 0. 2-0. 4, and we can see the Gini coefficients of China bellowed.

History and Timeline of the Wheelchair

It is uncertain as to what can be considered the first wheelchair, or who invented it. The first known dedicated wheelchair (invented in 1595 and called an invalids chair) was made for Phillip II of Spain by an unknown inventor. In 1655, Stephen Farfler, a paraplegic watchmaker, built a self-propelling chair on a three-wheel chassis. The Bath Wheelchair In 1783, John Dawson of Bath, England, invented a wheelchair named after the town of Bath. Dawson designed a chair with two large wheels and one small one. The Bath wheelchair outsold all other wheelchairs throughout the early part of the 19th century. Late 1800s The Bath wheelchair was not that comfortable and during the last half of the 19th century, many improvements were made to wheelchairs. An 1869 patent for a wheelchair showed the first model with rear push wheels and small front casters. Between, 1867 to 1875, inventors added new hollow rubber wheels similar to those used on bicycles on metal rims. In 1881, the pushrims for added self-propulsion were invented. The 1900s In 1900, the first spoked wheels were used on wheelchairs. In 1916, the first motorized wheelchair was manufactured in London. The Folding Wheelchair In 1932, engineer, Harry Jennings, built the first folding, tubular steel wheelchair. That was the earliest wheelchair similar to what is in modern use today. That wheelchair was built for a paraplegic friend of Jennings called Herbert Everest. Together they founded Everest Jennings, a company that monopolized the wheelchair market for many years. An antitrust suit was actually brought against Everest Jennings by the Department of Justice, who charged the company with rigging wheelchair prices. The case was finally settled out of court. First Motorized Wheelchair - Electric Wheelchair The first wheelchairs were self-powered and worked by a patient turning the wheels of their chair manually. If a patient was unable to do this, another person would have to push the wheelchair and patient from behind. A motorized or power wheelchair is one where a small motor drives the wheels to revolve. Attempts to invent a motorized wheelchair were made as far back as 1916, however, no successful commercial production occurred at that time. The first electric-powered wheelchair was invented by Canadian inventor, George Klein and his team of engineers while working for the National Research Council of Canada in a program to assist the injured veterans returning after World War II. George Klein also invented the microsurgical staple gun. Everest Jennings, the same company whose founders created the folding wheelchair were the first to manufacture the electric wheelchair on a mass scale beginning in 1956. Mind Control John Donoghue and Braingate invented a new wheelchair technology intended for a patient with very limited mobility, who otherwise would have issues using a wheelchair by themselves. The BrainGate device is implanted into the patients brain and hooked to a computer to which the patient can send mental commands that results in any machine including wheelchairs doing what they want it to. The new technology is called BCI or brain-computer interface.

Advantages And Disadvantages Of Nike - 969 Words

Weaknesses Nike Latest moves on social media towards its hi-tech innovation of Nike + FuelBand is dangerous and challenging its marketing strategies since the idea of sharing information can be at odds with the individualism of Nike Brand. Nike Brand identity has always been associated with individualism, performance, and empowerment as a way of differentiating themselves from its competitors. However, the company as well cannot ignore its social media’s fans and ends up not embracing their brand’s individualism in the process. The stress on using social media as a platform where the company can celebrate individual achievement is the right way to go without compromising the company’s brand (Park, and Doris, 182-193). Additionally, Nikes†¦show more content†¦Additionally, since Nike’s core strategies depend on a group of athletes to promote their products, the same athletes that are caught in drug addictions and any immoral attitude affects customers not to buy their products hence affecting their sales and revenue (Kerin et al, 322). Additionally, Nikes marketing strategies are considered costly which has incurred high cost in producing and further promoting its products. Moreover, the cost has increased due to other expenses such as handling inventory and designing cost. Thus, for the company to deal with high cost of marketing, they need to improve their products prices and reduce its marketing budget (Park, and Doris, 182-193). Nike is also facing intense competition from Adidas, Puma, and Reebok in comparison to Adidas, Nike is slightly different where they mainly focus on footwear for women and men that are between the ages of 15-35 years, while Adidas specialize in ages from 10-30. Hence, as a result, there is less diversity of Nike’s marketing strategies (Park, and Doris, 182-193). Recommendations to Improve Marketing Strategy For Nike to make the â€Å"Run For â€Å"campaign a success they need to at least ensure that the local people get the inspiration of running. Chinese people understand the benefits of sports, but they need an inspiration that will make them run frequently. The company needs to understand how they can drive them to go out of their house and doShow MoreRelatedNike Strategic Plan1034 Words   |  5 Pagescan Nike continue to increase their sales and profitability, not only here in the U.S. but around the world? Nike also needs to improve their public image as well as their customer service to continue to be competitive in the apparel industry. Possible Action Alternatives 1) Continue expansion into global markets where competitors have been successful. There are huge opportunities for Nike to grow across multiple dimensions in terms of international expansion. Nike should take advantage of promotingRead MoreNike Wacc1068 Words   |  5 Pagesfirm’s bond, Johanna only used the interest expense of the year divided by the average debt balance, which fully ignored the discounted cash flow of the cost of debt. 2. If you do not agree with Cohen’s analysis, calculate your own WACC for Nike and be prepared to justify your assumptions. Combining the analysis above, we now give our own WACC calculation as following: 2.1 The value of debt(based on EXIHIBIT 3). Since the book value of debt may represent the market value, we merelyRead MoreNike Inc Cost of Capital Case Study917 Words   |  4 PagesNike Inc. Case Number 2 Nike Incorporated’s cost of capital is a vital element when addressing opportunities regarding top-line growth and operating performance. Weighted Average Costs of Capital (WACC) is an essential estimation that is needed in order to determine the amount of interest that will be paid for each additional dollar financed. This translates to be the minimum overall required rate of return that the firm will keep. We disagree with Johanna Cohen’s assessment of Nike due to twoRead MoreNike Case1172 Words   |  5 PagesNike Inc. Case 1. What is the WACC and why is it important to estimate a firm’s cost of capital? WACC is weighted average cost of capital, which is the expected rate of return on average from all the company’s existing debts and securities. It takes into account all different types of financing in the company’s capital structure. The reason it is important to estimate WACC is because it measures what it costs the firm to take on a project based on its current Debt and Equity mix. When theRead MoreGlobalization And Its Discontents : The Promise Of Global Institutions Essay874 Words   |  4 Pagesuse of advanced technologies, large corporations can supply the world populous with consumer goods that would only be available in 1st world countries. Despite the numerous contributions that globalization has brought, it also carries with it disadvantages. Large corporations, through globalization and expansion, foster the notion of inequality by further separating the economic gap between the developing and industrialized nations, oppressing laborers, and exploiting wo men across cultures. The primaryRead MoreSupply Chain Management - Woolworths and Nike1585 Words   |  7 Pagesresults in delays and inefficiency within the organisation. When the communication is insufficient between the levels of organisations, the supply chain will not improve its response enough to increase profits which results in loosing competitive advantage. But the art of technology has changed these barriers into opportunity by inventing tools (softwares) like Just-in-Time (JIT), Materials Requirement Planning (MRP), Materials logistic Management (MLM), Total Quality Management (TQM), Agile ManufacturingRead MorePestel Analysis on China1481 Words   |  6 PagesPolitical factor: If Nike wants to open international market such as China, the company would get disadvantages because every country will protect and priority for its domestic products. So, the company must find out exactly these requirements that the country require in Nike to overcome these barriers. International trade regulations The trade regulations in China are formulated in accordance with the Foreign Trade Law of the Peoples Republic of China in order to maintain foreign trade orderRead MorePrivate Voluntary Regulation Is Not An Effective Substitute For National And Multilateral Regulations1338 Words   |  6 PagesThis essay will argue that private voluntary regulation is not an effective substitute for national and multilateral regulations. Although it has advantages, it requires certain situations to ensure that the regulations are effective; it also poses a lot of disadvantages. Concluding private voluntary regulation should maybe be seen as complementing national and multilateral regulations instead of substituting to maximize effectiveness. Firstly we will begin by looking at the reasons why there hasRead MoreAnalysis of Nike by Porter Five Forces Model1430 Words   |  6 PagesFamily name Bao First name Cheng ( Steven ) Title: The analysis of Nike in athletic footwear market based on porter’s Five forces model 1. Introduction One and a half months ago, the biggest athletic event in the world  ultimately drew its curtains after a pitched one-month-long battle, which saw thirty-two teams vying for the roll of honor of being crowned the final kings of football – the World Champions – and earn bragging rights for four years at least. It was not onlyRead MoreSWOT Analysis Section here about the overall SWOT analysis and the benefits of doing one for a800 Words   |  4 Pagesgive the business a competitive advantage over others. Nike has a strong international brand in which everyone recognizes it from their logo. The logo can be presented by itself without the name and everyone will know what it is. This is a huge, competitive strength that Nike claims. Expanding their product is something else Nike is really good at. In the beginning, Nike started out making shoes. Now they are world-wide leader in sports apparel and equipment. Nike does well to present itself on

Should Marijuana Be Legalized - 870 Words

Legalize Marijuana In my opinion I think marijuana should be legalized across the country because it does benefit a lot of people with autoimmune problems, anything that weakens the immune system, cancer, M.S., and more. Doctor’s believe that the prohibition of marijuana causes the public more harm than good. Those are some of the pros. Some of the cons of legalizing marijuana is it has an addictive nature, it can alter a user s perception, is popularly known as a gateway drug, does damage to the brain, and more. People across the country, doctors or not, argue that marijuana is very successful in treating a range of health conditions people commonly have including: Crohn’s disease, epilepsy, multiple sclerosis (M.S.) and posttraumatic stress disorder (PTSD). More doctors are on board with legalizing marijuana every year. Physicians say that, â€Å"...creating a legal and regulated marijuana market is the best way to ensure public safety, combat the illicit drug trade and roll back the negative consequences of strict enforcement policies on disadvantaged communities.† Doctors have found that it has improved their cancer patients when they gave them marijuana or even cannabis oil. It is said that, â€Å"A number of small studies of smoked marijuana found that it can be helpful in treating nausea and vomiting from cancer chemotherapy.† It has also been said, â€Å"...to help improve food intake and prevent weight loss in patients with HIV.† It also has the proper ties of helpingShow MoreRelatedShould Marijuana Be Legalized?849 Words   |  4 Pageswhether marijuana should be legalized. Around 23 states have legalized marijuana for medical and recreational use. In the state of Illinois, medicinal use of marijuana has been passed on April 17, 2013. Since January 2014, patients are able to obtain marijuana with a doctor s recommendation. The new debate is whether marijuana should be legalized for the general public as a recreational drug. Although some believe that marijuana is harmless, and that it has beneficial medicinal uses, marijuana shouldRead MoreShould Marijuana Be Legalized?1715 Words   |  7 PagesMarijuana in Society Cannabis, formally known as marijuana is a drug obtained from the tops, stems and leaves of the hemp plant cannabis. The drug is one of the most commonly used drugs in the world. Only substances like caffeine, nicotine and alcohol are used more (â€Å"Marijuana† 1). In the U. S. where some use it to feel â€Å"high† or get an escape from reality. The drug is referred to in many ways; weed, grass, pot, and or reefer are some common names used to describe the drug (â€Å"Marijuana† 1). Like mostRead MoreShould Marijuana Be Legalized?1489 Words   |  6 Pagescannabis plant or marijuana is intended for use of a psychoactive drug or medicine. It is used for recreational or medical uses. In some religions, marijuana is predominantly used for spiritual purposes. Cannabis is indigenous to central and south Asia. Cannabis has been scientifically proven that you can not die from smoking marijuana. Marijuana should be legalized to help people with medical benefits, econo mic benefits, and criminal benefits. In eight states, marijuana was legalized for recreationalRead MoreShould Marijuana Be Legalized?1245 Words   |  5 PagesMarijuana is a highly debatable topic that is rapidly gaining attention in society today.   Legalizing marijuana can benefit the economy of this nation through the creation of jobs, increased tax revenue, and a decrease in taxpayer money spent on law enforcement.   Ã‚  Many people would outlaw alcohol, cigarettes, fast food, gambling, and tanning beds because of the harmful effects they have on members of a society, but this is the United States of America; the land of the free and we should give peopleRead MoreShould Marijuana Be Legalized?1010 Words   |  5 PagesThe legalization of marijuana became a heated political subject in the last few years. Twenty-one states in America have legalized medical marijuana. Colorado and Washington are the only states where marijuana can be purchased recreationally. Marijuana is the high THC level part of the cannabis plant, which gives users the â€Å"high† feeling. There is ample evidence that supports the argument that marijuana is beneficial. The government should legalize marijuana recreationally for three main reasonsRead MoreShould Marijuana Be Legalized?1231 Words   |  5 Pagesshows the positive benefits of marijuana, it remains illegal under federal law. In recent years, numerous states have defied federal law and legalized marijuana for both recreational and medicinal use. Arizona has legalized marijuana for medical use, but it still remains illegal to use recreationally. This is absurd, as the evidence gathered over the last few decades strongly supports the notion that it is safer than alcohol, a widely available substance. Marijuana being listed as a Schedule I drugRead MoreShould Marijuana Be Legalized?1350 Words   |  6 Pagespolitics in the past decade would have to be the legalization of marijuana. The sale and production of marijuana have been legalized for medicinal uses in over twenty states and has been legalized for recreational uses in seven states. Despite the ongoing support for marijuana, it has yet to be fully legalized in the federal level due to cultural bias against â€Å"pot† smoking and the focus over its negative effects. However, legalizing marijuana has been proven to decrease the rate of incrimination in AmericaRead MoreShould Marijuana Be Legalized? Essay1457 Words   |  6 PagesSHOULD MARIJUANA BE LEGALIZED? Marijuana is a drug that has sparked much controversy over the past decade as to whether or not it should be legalized. People once thought of marijuana as a bad, mind-altering drug which changes a person’s personality which can lead to crime and violence through selling and buying it. In the past, the majority of citizens believed that marijuana is a harmful drug that should be kept off the market and out of the hands of the public. However, a recent study conductedRead MoreShould Marijuana Be Legalized?1145 Words   |  5 PagesLegalizing Marijuana Marijuana is a drug that has been actively used for centuries. This drug can be traced back to 2737 BC by the Chinese emperor Shen Nung. He spoke about the euphoric effects of Cannabis and even referred to it as the â€Å"Liberator of Sin.† Since early on, marijuana was seen as a medicinal plant that was recommended for medical uses. Marijuana is currently in schedule I, which means that physicians are not allowed to prescribe it in the United States (Hart, Ksir 2013). This drugRead MoreShould Marijuana Be Legalized?1596 Words   |  7 Pages But what needs to be known before a user can safely and completely make the decision if trying Marijuana is a good idea? Many do not want the drug to be legalized because they claim that Cannabis is a â€Å"gateway drug†, meaning it will cause people to try harder drugs once their body builds up a resistance to Marijuana, because a stronger drug will be needed to reach a high state. This argument is often falsely related to the m edical side of the debate over legalization. It is claimed that this would

Teachers Usage on Social Media free essay sample

Facebook is an online social networking service that becomes â€Å"booming† over the past years. Facebook that was officially invented in February 2004 has shown a rapid growth in the quantity of its active users, starting with only 1 million active users in the end of the year 2004 to currently millions of active users. A recent study (Wilson, Gosling, Graham, 2012) predicted that the latest calculus in 2012 corncering the number of active users on Facebook reached more than 800 million. For its renown, Facebook later becomes known of being the latest phenomenon to the society. Unwittingly, since millions of people using Facebook, there is a possibility of the professionals using it too. Despite of the fact that some professionals use Facebook because it is â€Å"trending†, Facebook also has several useful functions, namely, Facebook can be summed up as a tool to bound people together. Lampe, Ellison Steinfield (2008) elaborated on the practical usage of Facebook obtained through surveys. From the surveys, they pointed out that the place to find new connections, the source of information of acquaintances and the tool to keep in touch with old fellows as three most common useful functions of Facebook. Moreover, it is impossible to ban professionals to keep pace with the latest trend (since it is fair for Facebook to be called â€Å"a trend†) and to utilize Facebook as a social tool, undoubtedly professionals have social life too. At Miscrosoft company, most employees have used social networking sites (Skeels Grudin, 2008) In fact, some companies started giving social network tutorials to their employees, it seems like becoming â€Å"social media pro† (â€Å"Facebook pro†) is now written down on the job descriptions, however, each social media platform has certain reputation, and Facebook is not considered as a generally business site. (Klamn, 2010) The main concern is that Facebook itself makes it easy to blur lines between professional and personal purposes. But, it is believed that professionals using Facebook for professionals’ interests will lead them to negative professionalism judgments. According to Skeels and Grudin (2008) Facebook describes itself as a social utility that connects people with friends and others who work, study and live around them. Since Facebook pictures itself as a connection from those who work and study together, it is plausible if some professionals utilize Facebook to be connected with their professional fellows and unconsciously for professional interests. For example, in a professional world, such as in schools Facebook is used by certain teachers for their teaching purposes. Madge, Meek, Wellens and Hooley (2009) conducted a research project at a British university and found that particular teachers used Facebook to assist their teaching. Mazer, Murphy and Simonds (2007) came up with another finding relating to teachers using Facebook for their professional purposes. They noted that teachers utilized Facebook to foster staff-student relationships while constantly advising to do it with caution, such as, to put merely self-disclose appropriate information. The main reason for teachers using Facebook for their professional purposes is because they found out a large number of students are checking their Facebook accounts daily, hence, it is the most effective strategy to post latest announcements regarding to school work on Facebook. However, this idea of using Facebook for professional purposes is not only keen in schools, in the year of 2009, current president of U. S, Barrack Obama utilized Facebook to assist his campaign and this approach is still considered to be a brilliant approach that leads him to a major success. Obama might also take the fact that Facebook is a social media that has been flooded by millions of people into his consideration, just like the teachers did. Yet, they may not notice that using Facebook for professional interests is invasive. (Klamn, 2010) Looking at the overview of Facebook, it does not delineate a professional site. Facebook profiles are extensible, they optionally include martial or relationship status, religious and political views, hobbies, birthday, favourite books, movies, music and quotations. Even though particular professionals utilize facebook for professionals’ interests, Facebook was not originally designed for it. There are several illustrations supporting disadvantages and negative professionalism judgments after Facebook is involved in a professional matter. Mazer, Murphy and Simonds (2007) reported that the tensions were aroused when teachers added their students on Facebook, this could happen since the students were anxious about their personal information might get revealed. In the professional world, personal things are definitely things that have to be put aside. Moreover, some students stated after being added as a friend on Facebook by their teachers, the students personally felt the power distance between teachers and students was a bit loose. There is a chance of the prior established relationship being threatened. Since power distance is slightly loose, it may be possible that this may trigger students to be less respectful to their tutors. According to Madge, Meek, Wellens and Hooley (2009) the idea of being contacted by tutors via Facebook is not overly keen by the majority of students. This explains why students were shocked and found it inappropriate to be contacted through Facebook. Madge, Meek, Wellens and Hooley (2009) also clearly stated that the use of Facebook was most importantly for social reasons not for formal business purposes. Apart from teachers’ reason for using Facebook for professional matter stating that most students access Facebook daily, so Facebook is an effective means to inform latest announcements, there may be trouble encountered while discussing professional things on Facebook, since it may later engage personal things and may lead to an unsuccessful attempt of maintaining the image of professionalism. To sum up, to professionals, it is best to maintain their professional image and Facebook does not assist on maintaining it. However, this does not conclude to ban professionals from using Facebook, Facebook is an open site and everybody can utilize it. Professionals may use it but obviously not for professionals’ interests, other types of means will work more efficiently than Facebook, such as, Email, and the newest social site, called Linkedin. Moreover, the examples of unsuccessful attempts of professionals trying to use Facebook for their professional purposes.