Porter Essay Example for Free

Porter Essay Porters Five Forces Analysis Threat of New Entry There are many companies manufacturing and selling office products at an International level. New entrants can find it easy to enter and establish their position In the market by basing their strategy on low cost. The market offers growth opportunities to new entrants as well Indicating low entry barriers for the firms wanting to enter into the area of office products. Therefore It can be stated that Staples Inc Is operating In an Industry where the threat of new entry Is high. Buyer power The bargaining power of buyers Is determined In an Industry on the basis of the Influence that they can have on the price structure of the products of a firm. In case of organizations manufacturing office related products the issue they are facing is that few of the products that they are manufacturing are easily available in the market, such as stationery items. Staples Inc is dealing with medium organizations and fortune 1000 companies as customers of their products. They need to provide these organizations with a competitive price structure or the customers can shift to another company for the supply of office items. But the company also has an dvantage that it provides them with products that have unique designs and packaging. Therefore it can be stated that Staples Inc is operating in an industry where the customers have moderate bargaining power. Supplier Power There are many suppliers operating in the industry of office supplies and office related products. The large number of suppliers has resulted in low level of bargaining power of suppliers. The companies that are manufacturing the office related products can select the suppliers that offer them the most suitable package. In case of Staples Inc they have strong ties with their suppliers and are taking dvantage from a network of supply parties that maintain the effective flow of raw materials being supplied to the company. Threat of Substitutes There are many companies manufacturing office related products and offering them at a lower cost than the price charged by Staples Inc for their products. This situation has resulted in moderate level of threat of substitutes. In case If an organizations is not satisfied with the price structure offered by Staples Inc for their products, It can opt for other companies which are manufacturing slmllar products and charging less for them. Threat of Competitors The Industry In which Staples Inc Is operating In, It has many small and large scale companies. Therefore the Industry has a high level of threat of competitors. Staples Inc Is dealing with competitors such as Office Depot Inc ; OfficeMax Inc (Staples Inc TOP competitors, 2011). PESTEL Analysis Political Factors The political disturbance in US or in other countries of the world disrupts the supply and manufacturing process of Staples Inc. Other political factors such as changes in tne rules ana pollcles developed Dy OITTerent governments 0T tne world In wnlcn Staples Inc has its stores also have an impact on the profitability of the organization. Economic Factors Financial condition of a country has an influence on the price and purchase of the raw material, manufacturing of the number of products and buying behaviour of the people. Staples Inc also faced problems due to global financial crisis. Abelson (2008) has reported that due to the economic crisis, Staples Inc had to take steps such as decreasing the rate of capital investment for manufacturing of certain products which were facing low demand due to recession. One of the products that were ompromised on during economic downturn was office furniture, as the sales of these products had declined and customers were avoiding the purchase of these items. Social Factors Many organizations around the world have been trying to bring in changes in their set up and to participate in activities that are a reflection of corporate social responsibility. Staples Inc has also been focusing on participating in community building activities to create a positive image in the mind of the consumers. Staples Inc has been trying to share in the process of community development by providing unds for social causes and benefit of the people (What is Staples Soul, 2010). Technological Factors Staples Inc is a supplier of computer related products and also offers after sales services related to these products to the organizations that are their customers. Technological changes and advancements enable the company to bring in necessary modifications and provide its customers with the latest version of the computer and its related accessories. Technological factors have a significant impact on the production of Staples Inc as they can not only develop new product designs but also evelop low cost manufacturing means. Environmental Factors Many organizations around the world have been required to alter their business processes top meet the policies developed by the governments and environmental protection agencies. As stated by the annual report of the company, the Race to the Top strategy applied by the management of the company is a reflection of the efforts they have been putting in to obtain a competitive position in the market through effective business practices and environment friendly products (Staples, Inc Annual Report, 2010). Legal Factors Staples Inc is currently dealing with legal issues related to the lawsuits filed by its employees with the claim that the organization has been indulging in unjust business practices. For instance the company had to manage the case in which claim was made that it was not paying the workers with over time charges (Lawsuits: Staples Inc, 2007). Along with that the company has also been dealing with the patent issues. These issues not only portray a negative image of the company in front of the public but also require capital investment by the company.

The Northern Lights Essay -- essays research papers fc

The Northern lights are poetry, they are nature's light show, and they are quantum leaps in the oxygen atom. They are elementary particle physics, superstition, mythology and fairy tales. The northern lights have filled people with wonder and inspired artists; they have frightened people to think that the end is at hand. More exact explanations of the phenomenon could not be given until modern particle physics were developed, and knowledge about details in the earth’s magneto sphere has been based on measurements from satellites. When the northern lights are seen over Tromsà ¸, it happens in a set pattern, although this pattern varies considerably. The outburst starts with a phosphorocent glow over the horizon in northwest. The glow dies out and comes back, and then an arch is lit. It drifts up over in the sky. And new arches are lit and follow the first one. Small waves and curls move along the arches. Then within a few minutes a dramatic change is seen in the sky. A hailstorm of particles hit the upper atmosphere in what is called an aurora sub-storm. Rays of light shoot down from space, forming draperies, which spread, all over the sky. And they really remind us of draperies or curtains, which are flickering in the wind. And you can see a violet and a red trimming at the lower and upper ends. Or the colors are mixed all together, woven into each other. The curtains are disappearing and forming all over again by new rays of light shooting down from space. Above our head we cans see rays going out in all directions forming what is called an aurora corona. After 10 to 20 minutes the storm is over and the activity decreases. The bands are spread out, disintegrating in a diffuse light all over the sky. We can not see individual pockets of light, but the total effect is bright enough to enable us to make out details of the countryside around us. If we look very carefully, we can see the remains of the northern lights display as faint, pulsating flames. Clouds of light which is turned on and off regularly every 5 - 10 seconds as though by an electric light-switch. The natures own gigantic light show is over. What causes the northern lights? To answer this, we start with the sun whose energy production is far from even and fluctuates on an 11-year cycle. Maximum production coincides with high sunspot activity when processes on the sun's surface throw particles ... ...ll over the sky. 7) Bands of northern lights one above the other, raising towards the zenith indicates that the sub storm is starting. 8) Rays of light shoot down from space tells about higher activity. 9) Draperies are formed with waves at the lower end. 10) Curls and waves wave along the draperies. 11) The draperies look as if they are flickering in the wind. Maximum activities close. 12) The interaction between the moving charged particles and the earth’s magnetic field creates a charging magnetic field. The particles stream down along the magnetic field lines. 13) Rays and draperies can die out in one place of the sky, and form at another. 14) During the maximum of a sub storm, the whole sky can be full of light. 15) An all-sky (fish eye) picture showing that the draperies are stretched from east to west, through zenith. 16) When the activity reaches Zenith, by an optical illusion, it seems like the rays stretch out in all directions above our heads. This form of the northern lights is called aurora corona. Works Cited http://www.uit.no/npt/nordlyset/nordlysbilder.en.html http://www.uit.no/npt/nordlyset/ Way North Magazine, publication by Tromsà ¸ Museum.

Toothpaste and Colgate- Palmolive

1. 0 Introduction Colgate- Palmolive is one of the leading consumer product organizations that have been dealing its products in worldwide. Colgate- Palmolive is an America based company and has many branches all over the world. One of the branches is located in Malaysia. Colgate- Palmolive (M) Sdn Bhd focusing their product segment on toothpaste and toothbrush. Both products are very competitive presently in Malaysia market. At the present, Colgate is implementing Activity-Based Costing (ABC) method.ABC is a system had been practices in many organizations for being a tool to measures the cost and performance of the activities and the cost objects. Hence, the management should look into ABC system which uses to provide more accurate information for decision making in determining costs by cost object such as product, customer, and location and the cost pool of the company. 2. 0 Keys Areas for Improvement According to Reuben Mark (2003), Colgate Palmolive has highlighted its strategy o f developing and launching innovative new products globally continues to strengthen the company’s market leadership positions around the world.Hence, it does apply to Colgate Palmolive Malaysia. Indeed the implementation of activity based costing by Colgate Palmolive (M) provide information for achieving its plans since the ABC is costing technology that traces cost to products according to activities perform on them. Accurate cost information is produced as to such purposes; focusing company strategy, designing products to increase customer value, and continuously improving activities on the operation throughout the company (Peter, 1989).In general, the ABC system cover such following area of activities including product design and processes, storage of raw materials, set up of machinery to ensure a smooth flow in the production line, machine operating time as well as cleaning of machine after each production. Product design is crucially for Colgate Palmolive (M) to survive in the market and leading the position. Innovation allows the company to continue doing business and thus create the competitive advantage as to product differentiation. The research and development indeed plays role for this rocess such example where Colgate Palmolive worked on improving soap packaging through quality engineering (Boehmer, 2008). Meanwhile, storage of raw materials ensures the effectiveness of the company on handling its inventory. Chilshom (2000) stated that the potential areas for optimization in production is through shortening of product lead times in which leads the Colgate Palmolive (M) to an increase in machine capacity, a reduction of inventories, shorter, and a higher customer satisfaction thus also leads to increased revenues in a demand driven-market.Besides, by improving unit costs where a reduction of the units costs can be achieved by a high degree of machine capacity utilization. Having accurate cost data will allow Colgate Palmolive to identify acti vities which are not efficient and important, eliminate waste and reduce costs while improving the quality of the products. 3. 0 Steps for Each Activity There are arguments stated that traditional costing (TC) method can misrepresent a cost of the product where it might have deceive the management doing the resolution relating products (Briers, M. , Luckett, P. and Chee, C. 1997). According to Mansur, N. N. , Tayles, M. and Pike, R. (2012), the TC method apportion the indirect costs based on a single element when the deciding a product cost. The element such as number of direct labour hour or number of machine hour was used to apportion the indirect costs. This has created unfairness in costs apportionment into product as different activity provides different incurrence of cost. Furthermore, different product consumed different level of costs in different activities. Therefore, ABC method is formed to solve the traditional costing flaw.ABC method emphasizes on each of the activity c onsumption that needed for producing a product. For the overhead costs to be incurred into the products, the resources, activities, costs and quantities are to be identified (Mansur, N. N. , Tayles, M. and Pike, R. , 2012). The allocations vary to products consumption in different activities. Therefore, management can makes decisions accurately. 3. 1 Cost Object Cost object can be customer, product, service or any other work unit for which a separate cost measurement is desired. The ideal cost object is â€Å"products† which are individual items that are sold to customers.Linking the cost of activities directly to the products that consume the activities is the basis for product costing using the ABC system. To operate effectively, cost drivers should be selected with specific product. Besides that, the customer costing which is the calculation of the total of the total cost of serving a customer makes it possible to assess the profitability of possible either individual or g roup of customers. Hence, the cost object is different for different companies but there are similarity cost object within the industry which is products and customers. (Gunasekaran, A. , 1999) 3. 2 Cost DriverBefore a cost driver is selected, the management needs to gather up the activities in the manufacturing process which then needs to report the cost of each activity and later choose the suitable driver for the activity (No, J. J. and Kleiner, B. H. , 1997). *A cost driver is a factor that has direct influence on the cost and performance of the activities. The cost drivers provide the best explanation of why the costs in an activity cost pool change over time. The activity cost pool is the total cost associated with an activity. Cost driver is a variable used as denominator in the rates used to apply activity costs to product or cost objects.In practice, it is possible that the number of cost drivers exists for the same cost pool. For example, purchasing activity’s cost pool has different cost drivers such as the numbers of orders, number of suppliers and number of parts ordered. (Gunasekaran, A. , 1999) 3. 3 Calculation of Total Cost and Cost Drivers Colgate-Palmolive has numerous products with numerous activities and different cost drivers and taken toothpaste and toothbrush as an example for ABC calculation. Assume the following was the information of toothpaste and toothbrush production.                                     |                                                               |Toothpaste                      |Toothbrush                      |                           | |Number of units produced                                                                |30000                            |20000                               |                           | |Direct Materials                                                                            |450000                            |350000                            |                           | |Direct Labours                                                                               |350000                            |50000                               |                           | |Activity                      |Cost Driver                                              |Cost Driver Volume                                                 |Total                   | |Setup                            |Number of setups                                        |150                               |50                                  |200                      | |Making                         |Machine Hours                                           |3000                               |2000                               |5000                      | |Inspection                   |Number of inspection                                  |100                               |100                                  |200                      | Table 3. 1 Information of relating toothpaste and toothbrush Activity                                                                                                          |Overhead Costs                                                                   | |Setup                                                                                                             |150000                                                                               | |Making                                                                                                             |750000                                                                               | |inspection                                                                                                       |100000          à ‚                                                                     | |Total Overhead Costs                                                                                        |1000000                                                                            | Table 3. 2 Overhead costs for toothpaste and toothbrush If calculate the unit cost by assuming using machine hours as the element. |overhead costs/ machine hour                                                                         |=          |1000000                                                                | |                                                                                                                     |             |5000                                                                   | |                                                                                                                     |=          |200 / machine hour                                              |                                                                            |Toothpaste                                                       |Toothbrush                                           | |Direct Materials                                                    |450000                                                       à ‚      |350000                                                 | |Direct Labours                                                       |350000                                                             |50000                                                 | |Overhead costs                                                       |600000                                                             |400000                                                 | |Total Costs                                                             |1400000                                                          |800000                                        à ‚         | |Number of units produced                                        |300000                                                             |200000                                                 | |Unit Cost                                                                |4. 67                                                                |4                                                       | Table 3. Statement showing calculation of unit cost using traditional method Below show the calculation of unit cost using ABC method. |Activity                            |Cost per driver                                                                                                                                              | |Setup                               |750 per setup (150000/200 setups)                                                                                                                   | |Making                               |150 per machine hour (750000/5000 machine hours)                                                                                              | |Inspection                         |500 per inspection (100000/200 inspections) | Table 3. 3 Calculation of driver for each activity.                                                                                           |Toothpaste                                           |Toothbrush                                        | |Direct Materials                                                                   |                           |450000                      |                           |350000                   | |Direct Labours                                                                      |                           |350000                      |                           |50000                   | |Overhead Costs                                                                      |                           |                              |                           |                           | |Setup (750 per setup)                                                          |112500                |                              |37500                   |                           | |Making (150 per machine hour)                                              |450000                |                              |300000                   |                           | |Inspection (500 per inspection)                                           |50000                   |                              |50000                   |                           | |Total Overhead Costs                                                             |                           |612500                      |                           |387500                   | |Total Costs                                                                         |                           |1412500                   |                           |787500                   | |Number of units produced                                                       |                           |300000                      |                           |200000                   | |Unit cost                                                                            |                           |4. 7083                      |                           |3. 9375                   | Table 3. Statement showing calculation of unit cost of toothpaste and toothbrush using ABC method. |Particular                                                    |Toothpaste                                                    |Toothbrush                                                    | |Traditional Method                                        |4. 67                                                             |4                                                                   | |ABC Methods                                                    |4. 7083                                                          |3. 9375                                                          | Based on the calculation shown in the table above, product toothbrush price is under traditional method and the product of toothpaste is underpriced in using the traditional method.Even though, the price between both products are not much in difference but it can be claimed that ABC system more accurately measurements the resources consumed for both products. 4. 0 Increased on National Market Share in Context of Cost Leadership and Product Differentiation Bhimana, A. , Horngren, C. T. , Datar, S. M. , Forster, G (2008) state that the cost leadership is one of strategy in a business offer the average product at lower costs for a broadest possible market. Product differentiation is the strategy to focus offers the unique product by creating new products (innovation). Therefore, Colgate Palmolive is considering and focusing to these challenges through two basic of strategies: differentiating its product a nd achieving the cost leadership.It can see that Malaysia had chosen by Colgate Palmolive because has higher market share of tooth brush and tooth paste. In fact, Colgate was selling more than 30 kinds different products of tooth paste and it’s most popular brands’ name in Oral care. By differentiating the products, this company creates the different new product form the other competitors such as focusing on the design and packaging of the tooth brush should be innovative, colourful and unique then make customer interested and touched to those products. The cost of tooth brush and tooth paste usually based on the quality of products, and it may allow Colgate to charge a higher price.Here, the solution is to reduce the costs and designing the new brand of product and technologies. Obviously, Malaysia has successful cost leadership could generally increase Colgate Palmolive Sdn Bhd’s market share and make this company to grow up. 5. 0 Advantages of ABC System One of the advantages of ABC is that this system gives more accurate costing. ABC system is the method which is useful for all types of business (Hansen, D. R. and Mowen, M. M, 2007). For instance, Colgate Palmolive uses the ABC software that can evaluate the cost of its activity and cost object. The reason of Colgate Palmolive adopted the ABC system is to provide the more accurate revelation of the cost of program and services.Moreover, Colgate Palmolive implemented the ABC system which helps the manager easily understand the impact of products and customers variety on profit margin. After that, this ABC system took the difference in how this company entered orders from its customers, how the packaged orders, how delivered orders, and spent time to deliver it to each customers location. This ABC system has helped Colgate Palmolive acquire the large national customer because it has identified ‘the specific manufacturing, distribution, and handling costs related with serving this c ustomer†. Furthermore, ABC provide support on performance measurement whereby the information provided on cost drivers and cost driver rates shows great influential power on staff behaviour and used as performance measurement.Cost drivers provide volume measures on different aspects of operational performance which reflect the effectiveness of the activity concerned. When linked to costs, the cost drivers can help in assessing the efficiency with which activities are carried out. Colgate- Palmolive can In addition, the detailed information by ABC system assists management in making decisions about product profitability. This is because ABC using unit cost rather than the total cost on making decision. Management can evaluate how the current product and process designs affect activities and costs as a way of identifying new designs to reduce costs. Colgate can do investigation based on the current product costs to do adjustment on the new products that going to be launch. 6. 0 ConclusionThe activity based costing is one of the tools of strategic management accounting which allow the Colgate Palmolive (M) to measure the cost and performance of the activities and the cost objects. It does provide more accurate information for decision making in determining costs by various cost object. The implementation of ABC system by Colgate Palmolive (M) is closely in line with the objective of the company to leads in the market of oral, health and care industry in Malaysia. Innovation in its products and having a lower cost in the market with a good quality always get into the attention of the company as these product differentiation and cost leadership are the key for the competitive advantage.

Censorship Essay - No Need to Censor Pornography - 1362 Words

No Need to Censor Pornography Pornography is often considered an ugly word and possibly an ugly act. The pictures and words of pornography can be vulgar and degrading to many of us, but is it the evil of all things? Is it, and it alone, responsible for sexism, rape, racism, battery, and child abuse? No! The media is loaded with many sexist, racist, violent material, and most of it is not considered pornography. The issue of violence and oppression is much deeper than pornography. Most people are not in favor of pornography; however, the public should not be in favor of censoring pornography. Freedom of speech is more logical than censorship because of the lack of a definition of pornography, individual rights and the claim that†¦show more content†¦Freedom of speech; on the other hand, is vital for discussion of pornography. Willis states that, Pornography-which, my dictionary and I agree7 means any image or description intended or used to arouse sexual desire...(182). This definition of pornography is v ery different from Dworkins previously stated definition. Whos definition is correct? An individual or group may not agree with either definition, but they should not be restricted from expressing their own definition because they have that freedom. If censorship of pomography were in place, the courts would decide for evetyone how pornography is defined regardless of individual opinions. It only makes sense that freedom of speech be protected otherwise individual beliefs or definitions will be suppressed. Freedom of speech is logical to have in place if for no other reason than the definition or the lack of a definition for pornography. Another issue in this controversy is individual rights. Womens interests are at the top of the list. McEntee suggests, Studies indicate that porn addicts are 40 percent more likely to commit a sex ctime than non-addicts...(174). This quote could have been one of many quotes used by pro-censorship activists. 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