Iphone 5C price decision Essay Example for Free

Iphone 5C price decision Essay The fist factor that important in the pricing decision of iPhone 5C is by considering costs. For instance, since Apple Inc. wants to maximize its profits through establishing new products, the price should be set at the point where marginal revenue equals to marginal cost. We know that iPhone 5C is in the perfectly competitive market, the company can reach its maximum profit at equilibrium at X* and P*. To determine the price, Apple Inc. needs to do the marginal analysis. According to profits (Ï€) equals to total revenues (TR) minus total costs (TC), which is Ï€=(P*X)-(fixed cost+variable costs per unit *X), X is the number of units sold by Apple Inc. Of course, manager needs to ask several departments and contractors to know the cost of their product and services. From online websites, I get to know that producing a 16Gbyte iPhone, total BOM and Manufacturing Cost is about $173.45, for a 32Gbyte iPhone 5C is approximately $182.85(which accounts only for hardware and manufacturing costs and does not include other expenses such as software, licensing, royalties or other expenditure)(Andrew, 2013). The manager can differentiating the fixed costs and variable costs based on cost behavior, and plug those numbers into the equation and get an equation between Ï€ and X. then differentiate the equation and set it to zero, the manager can get the number of units when profit maximizing. Finally, plug X into assuming demand function, the manager can get the price and make a decision. But, in the real world, it is not easy to implement the marginal analysis method. So, managers usually try to combine cost-based approaches and market-based approach to make a profit satisfying approach, for example full cost-plus target profits, variable costs-plus percentage markup can both assess to pricing decision. However, the common and basic factor for the methods is costs. The second factor that important in the pricing decision of iPhone 5C is product line and competitors. Strategy analysis is the company needs to consider about the Competitors as well as the whole industry, and then assess to firm’s plan. We can figure out that the competitions in the smartphone market are quite intense, there are numerous competitors and are almost equal size, such as Samsung, Microsoft. So, Apple Inc. has to investigate the cost leadership and the unique producers in order to make a competitive price in the smartphone market. The website take the example of Moto X, which has 18 kinds of colors and the functions are really similar to iPhone 5C (Darren, 2013). The price of Moto X is $599, so the manager should decide a lower price than it to gain a competitive advantage. In particular, the competition is not just from the external market, we know that Apple Inc. promoted iPhone 5C as well as iPhone 5S at the same time. To iPhone 5C, the manager needs to consider about the plastic case, which is $42 less than the metal case cost of iPhone5S (Ben, 2013). So manager should also compare the 5C’s price to 5S. It is an important thing to keep secret of the product’s price before they coming out. The manager of Apple Inc. can survey the expected price of the public, or conduct some historical sample tests before making the final price decision. The third factor that important in the pricing decision of iPhone 5C is the manager should estimate the demand. Assume that we are suffering a financial crisis, most people don’t have extra money to pay for new electronic devices. They have already owned iPhone 5 or iPhone 4S and do not want to pay for another similar product. Then the manager should decrease the price of iPhone 5C to fit for people’s expectation of low pricing, using the profit margin per unit to trade for higher quantities. As I mentioned above, the estimation of demand function is also important in the marginal analysis. In order to estimate the demand, the manager should also make market survey to analyze the targeted customers. According to Pew Internet’s report, Teens and Technology 2013, 37% of U.S. teenagers now own a smartphone (which compares to 23% in 2011). And the increases of U.S. wireless carriers’ family data plans, intensive the parents to buy smartphones for their kids (Jason, 2013). Because the iPhone5C is colorful, has proper functions and easy to control, it must a first-choice for kid’s cellphone. Aimed at attracting teenagers group, the Apple Inc. manager should make the price to a certain level. What’s more, we also have to consider whether buyers are sensitive to price. In economics, we call it price elasticity of demand, which means the percentage change in the numbers of units sod to the percentage change in the price of the product. Assume most people are price sensitive, if the price of iphone5C is much higher than they expected, they will not buy it, which decreases demand a lot. So, listen to the public opinions on price is quite important. Before iphone5C facing to the public, a lot of individuals forecast that the selling price should be low enough to satisfy the low-end customers needs. Somebody was kidding that iPhone 5C is iPhone for China or iPhone for cheap. Apple Inc. wants to occupy more market percentage in developing countries, so they advertised that to make a colorful low-end smartphone. However, the price of iPhone 5C is not as low as we expected. The data shows after releasing the iPhone for 72 hours, both in China, Australia, U.S., the sales of iPhone 5S is almost 4 times compare to iPhone 5C. Especially, the graph says in the â€Å"target† country China, where the 5s is outselling the 5c five to one (Christopher, 2013). So I think the price of iPhone 5C is not reasonable. There are several reasons to explain iPhone 5C price is not appropriate. Firstly, compare to iPhone 5S, people claim 5C just looks an iPhone 5 with a candy-colored plastic shell. According to a report published by UBS, the same memory for 16 Gigabyte iPhone, 5S costs $213 in materials, whereas a 5C costs $156IPhone 5S has metal shell, Touch ID fingerprint scanner, more advanced A7 chipset, Motion Coprocessor and True tone flash for camera. The different price due to plastic case of $42 and finger print sensor of $7. However, the price of iPhone 5C is only $100 less than iPhone 5S. The UBS also estimates the gross margins of iPhone 5S is 45-55% and for iPhone 5S is 48-54% (Ben, 2013). As a rational consumer, I will buy iPhone 5S instead of iPhone 5C, since 5S has much more functions, which is not at a so much higher price. Secondly, the factors of competitor also have huge effects. Samsung is the key part for apple to make its â€Å"retina display† screen, as well as apple use Sony’s sensor in its camera. We know that Samsung and Sony are competitors. Apple Inc. is hiring, relying and paying them. But if someday, Samsung or Sony stop providing essential parts to apple, what will happen? I think Apple Inc. has to produce all manufacturing parts by themselves under a big amount of fixed cost, which will have a big effect on Apple’s price decision. Thirdly, the price of iPhone 5C is not as low as rumored. It brings the question to us, who exactly is Apple targeting? We know that Samsung has galaxy series, which with large-screen and liked by fashion people and developing markets. In china, there are a lot of really cheap phones under 1000RMB, those phones have varieties function and beautiful looking. So when Apple Inc. can really open the market to low-end customers? The price decision and targeting customer is not clear and accurate. I am kind of thinking there must be some sailing strategy when apple promoted 5C and 5S at the same time, with a huge cost performance in my opinion. Maybe Apple Inc. just wants to stimulate the sales of 5S, after people comparing these two products.

Effects of Emotion in Eyewitness Recall and Recognition

Effects of Emotion in Eyewitness Recall and Recognition Aaron Glogowski Houston, K. A., et al. (2013). The Emotional Eyewitness: The Effects  of Emotion on Specific Aspects of Eyewitness Recall and Recognition Performance. Emotion, 13  (1), 118-128. doi: 10.1037/a0029220 In the world of criminal science, there are several factors that can interfere with the accuracy of eyewitness reports. This article, by Kate Houston and her team, delves into the effects of emotion on eyewitness encounters. The main argument that they are looking at focuses on negative emotion enhancing central memory while impairing the peripheral memory, where central memories are the main details that occurred, likely relating specifically to the action of the crime, and peripheral memories are the smaller details that were happening around the crime. Houston notes that in spite of all of the writings on eyewitness memory, very few studies attempt to show a correlation between it and memory. She goes on to hypothesize that negative correlations will indeed enhance the central memory of the event, further exploring details like the crime itself. In her observations of other studies however, she does note that high stress scenarios tended to cause subjects to forget details about the perpetrator of the situation, at least in the case of a previous study on soldier’s interrogations. In order to test their hypotheses, Houston and her team set up two different experiments designed to test recall memory performance, as well as the participant’s ability to identify the perpetrator of the crime, both associated with negative emotional response. In their first experiment, the team hypothesized that a negative emotional response would allow the participants to more easily describe details about the perpetrator. They gathered a participation group of 101 students from the University of Aberdeen (30 males; 71 females) to engage in the study. They divided the group into two subgroups. The group of 51 was shown a video that was meant to induce an emotional response, and the group of 50 was shown a video intended to illicit a neutral response from the participants. Both videos used the same actors and scenarios up to the point in which the story deviates to the emotional induction. Once the participants had watched their respective videos, they were asked to answer a brief survey about how the video made them feel. They were given several different emotions, as well as a neutral â€Å"I feel nothing† option, and were asked to rank all of these emotions on a scale of 0-3 (0 being not at all, and 3 being very much). After they rated what they were feeling, the results were collected and the participants were given a 20 minute wait period in which they had to fill out a questionnaire on likes and dislikes, though this questionnaire was truly only present to provide a distraction for the next part of the experiment. The participants were then asked to write down as many details about the video that they could remember. In the results of the experiment, Houston’s team discovered that the emotion-inducing video tended to cause much higher responses to negative emotions than the neutral video did. They also noticed that the group viewing the emotional video recalled the events of the emotional moment in much more clarity and complete detail than the neutral video control group, however, they could not recall details about the perpetrator as well. Their data also shows that there is not a significant correlation between the negative emotional responses and the amount of information given about the perpetrator and the critical moment. This data concludes that those experiencing negative emotions tended to focus their attention directly on the perpetrator, however, there was no significant difference in their ability to describe the perpetrator when compared to the results from the neutral video control group. While the idea that focus is altered in a critical moment coincided with the evidence, t he data could not identify any significant difference in memory and recall. The second experiment was designed to test whether or not negative emotions and stress impair the individual’s ability to identify a perpetrator when they are presented with a series of options (in this case, a photo line-up). Houston’s team used two separate photo line-ups for the experiment: one in which the perpetrator’s photo was present, and another where the perpetrator’s photo had been replaced by one that looked very similar to them. The team made sure to select alternates for the replacement photo based on resemblance to the perpetrator according to a method recommended by the Police and Criminal Evidence Act used to identify criminals in the United Kingdom. They split up a group of 233 participants into relatively even subgroups at the beginning of the study. They began the study in the same way as the first experiment: two separate videos were shown, one emotional, one neutral, then the participants were asked about their emotional responses to the videos, and given time after the emotional response portion. Once the period after the emotional response survey had passed, the participants completed a recall survey about the videos, then they divided the groups again into two separate subgroups. One subgroup was shown the picture line-up containing the perpetrator’s image, while the other was shown the line-up with the face double’s image. The results of the second experiment confirmed the team’s previous theories that the video was successful in eliciting an emotional response, and that emotional responses were similar to the previous experiment, based on their initial observations. The second set of findings turned out to be in accordance with the initial hypothesis of the second experiment. Participants who watched the emotional video were much more likely than those who watched the neutral video to incorrectly identify an innocent target as the perpetrator. Around 25% of the time, participants in the group in which the perpetrator’s photo was included would claim that the perpetrator’s picture was not among those in the line-up. Those who saw the neutral video were much more likely to identify the real perpetrator (40.4% as opposed to 27.1% from the emotional video group). In the group in which the perpetrator’s photo was absent however, there appeared to be no significant correlation between emotional response and the answers given. The recall results for this experiment were very similar to the recall results for the first experiment. In collecting their results from the second experiment, Houston’s team arrived at several conclusions based on the data that had been collected. Their data further supported the idea that people exposed to negative emotional experiences focused more on the perpetrator, but less on the rest of the situation, but they no longer had any sense of improved environmental detail. They both however showed the same level of accuracy in describing the target. The photo line-up tests show very different results however, showing that those exposed to negative emotional experiences would more likely identify the wrong target when the target’s picture appears along with others similar in appearance and features to them. When the target was not shown however, the emotional video groups tended to have similar results to those in the neutral video group. In the team’s conclusion to their article, they discussed the probable reasoning behind the discrepancies in their experimental results. They note that the environmental results differ between the experiments, showing that it may be unreliable. The data as a whole shows that negative emotional responses may have different results on eyewitness testimony, depending on the situation.

Company Profile of Sainsbury

Company Profile of Sainsbury SAINSBURY is one of the leading food retailers in UK. It is a public limited company and is registered with LSE and FTSE 100. The company is the oldest food chain retailers in UK being established in 1869 by J.J Sainsbury. At present the company owns around 800 stores including supermarkets and convenience stores. The company is the third largest food-retailer in UK and has a share of around 16.3 percent of the total market. The company after leading the UK food retail market for decades faced a downfall during the 1990s. At present, the company is trying to retrieve its position in the UK market and expand its global market share. In this report, an attempt has been made to analyse the different business strategies used by the company at different times and to compare its strategies to that of its competitors in order to assess the effectiveness. The first section of this report deals with the company profile of Sainsburys and a recap of its early establishment. This will help in understanding the activities of the business and the business strategies adapted by it. The second section analyses the different strategies adapted by the company. The third section deals with the competitors of Sainsburys i.e. Tesco and Asda and a short analysis of the strategies adapted by them. And finally, the report has been concluded in line with the different activities carried on by Sainsburys and the strategies that should be followed by it in order to be more competitive. REPORT ON BUSINESS ANALYISIS In this report, an analysis of the business strategy of an organisation is required to be carried out. Business strategy refers to the various activities carried out by an organisation at different stages of its growth and expansion plan. (Tayeb, M. 2000) All the stages of a business growth commencing from the start up involves some type of business strategies. A business strategy can be defined as a long term plan designed to attain a specific organisational goal. The strategy acts as a guide for the business to reach its target. A successful business strategy will design and plan all the activities to be or required to be carried out in order to reach the organisational goal successfully. (Source: Rapid Business Intelligence Success; http://www.rapid-business-intelligence-success.com/definition-of-business-strategy.html, Accessed on 23.05.2010; 16:15hrs). Therefore, from the above discussion on business strategy it can be concluded that a business strategy plans the growth of a business and describes the pathway for attaining it. Business strategy involves analysis of various factors involved with the organisation (i.e. external and internal organisational environment, market size, organisational structure, economy of the market, local and regional economy, target customer, income of the local people, customer preference, socio-cultural issues etc.). All these factors help in forming a business strategy suitable for an organisational. A business organisation aiming at growth, expansion and value creation is an outcome of the vision of an entrepreneur. Once the entrepreneur locates the opportunity in a society, he/she tries to implement some innovative ideas in order to exploit that opportunity and gain profit. The process relating to the implementation of the innovative idea and bringing the opportunity into reality is termed as business. (Kuratko, 2009) A business plan is required in order to bring the business into reality. Similarly, a business strategy is required for attaining the business goal. The strategy gets involved from the beginning of a business i.e. early start-up. But the strategy involved in the different stages of organisational growth will be distinct from the other. The following diagram will help us in further understanding the different business strategies involved in different stages of organisational growth. (Adapted from: HIT; Business, organisation and information architecture; http://www.hit.nl/Product_BusinessStrategy.asp) In this report, I am going to analyse the various business strategies of Sainsburys and have made an attempt to compare those strategies with that of Tesco and Asda, the two famous competitors of Sainsburys. I have chosen Sainsburys, Tesco and Asda for this report. An attempt has been made to analyse and compare the different strategies adapted by these companies. All the organisations dealt with in this report are multinationals based in UK and are continuously growing. Moreover, Sainsbury has been selected because of its diversified ownership structure, different strategies adapted by it in the recent days which have helped it to gain its market share and increase its profitability besides being a sluggish growth in the economy and the main reason being its history. COMPANY PROFILE: SAINSBURYS is a public limited company registered in the London Stock Exchange and FTSE 100. It is one of the leading UK food retailers and had been part of the financial and property sector. The retail food chain is the main business accounting for the major turnover of the company. Sainsburys group employs more than 145,000 people and therefore, is one of the major players of the economy. Sainsburys its known for its quality and service besides its price. Sainsburys success can be traced back in 1869 when the company was founded by J. J Sainsbury. It started with the aim of providing its customers the ‘best butter in the world at an affordable price. Sainsburys started with the fresh foods and later enter the market for packaged food products. It mainly focused on the dairy products, however, it was the first retail food chain to improvise, petrol stations, fresh food and poultry counter in their retail stores. Since inception, Sainsburys tried to aim at providing best quality at low prices. At present Sainsburys retail food chain consists of more than 800 stores including supermarkets and convenience stores. It started its journey from London and is now spread all over UK with stores in Scotland, Ireland, Belfast and North east United States. Sainsburys used to be the largest grocery chain in UK till 1995 whereby, Tesco overtook the first position and Asda became the second largest chain in 2003. The company started its activities in 1869 as a business owned and operated by the Sainsbury family. It carried on its culture till 12 July, 1973, when the organisation became public. However, the major shareholding of 85% was with the family and therefore, after becoming public also, the organisation carried on its legacy and the traits of a family business. But, the company started facing some managerial issues with the new management in 1993 and since then, the family has divested their ownership. At present, Qatar Holding LLC, a wholly owned subsidiary of Qatar Investment Authority is the major stakeholder owning around 26 percent of the companys share. (Sainsburys Corporate Website; http://www.j-sainsbury.co.uk/index.asp?pageid=229, Accessed on: 25.05.10, 10:15hrs) Sainsburys was among the first few organisations, which hired women employees during the World War, since most of their male employees had to b there in the war front. They develop a separate and exclusive training programme for their women employees who will help them work effectively in this new environment. Though, Sainsburys has lost their position of being the market leaders but still it is one of the biggest names in UK food retail chain and moreover, in the recent years it has achieved a remarkable growth. ANALYSIS OF THE DIFFERENT STRATEGIES The business strategies as discussed before, is an inseparable part of a business and is linked with all the activities of a business organisation. The companies adapt several strategies for the start-ups, entering a new market, growth strategy, marketing strategy. COMPETITIVE STRATEGIES Sainsburys started its journey as a grocery chain aiming at producing quality goods at affordable price. The organisations aim of producing â€Å"quality goods at affordable prices† can be treated as its market entry strategy. On further analysis of this strategy, it has been noted that its market entry strategy possess the qualities of a low-pricing strategy. Low-pricing strategy is an integral part of the business-level strategy. It helps the organisation enjoy a competitive advantage over its competitors. Low-pricing strategy aims at producing quality goods but at lower prices than offered by its competitors. It is mainly followed in a competitive commodity market where the products are more or less similar. The low-pricing strategy leads to lower profit margin and therefore, it is not adapted by all the organisations. The business has to be confident about the product and service offered by it. Moreover, has to develop a cost structure which will help the business sustain in this low price strategy. Low prices and lower product quality is something normal, and thus can easily be followed by the competitors. However, producing similar quality goods at a lower price is a challenge as it requires a developed cost structure. Moreover, the cost structure has to be developed in such a way that the competitors cannot easily follow it. Therefore, the key challenge lies in structuring the cost in a manner that will help the organisation to enjoy a sustainable advantage following the low pricing strategy. In regard to this scenario, Sainsburys has developed a unique cost structure by developing close relationships with its suppliers and by irradiating the agents in between. Both these policies helped the organisation enjoy a cost advantage over their competitors. Moreover, the companys manufacturing and packaging cost are developed in a way to keep the product cost lower than its competitors. The company being the market leader also enjoyed the volume of the quantity produced and thus, enjoy the economies of scale. (Johnson, G., 2002) Low-pricing strategy adapted by Sainsburys helped the organisation to become the market leader whereas, its in-house product variants helped it to develop a wide market and attract customers from all the strata of society. The product variants are the result of the product differentiation policy adapted by the company. Sainsburys has a varied chain of in-house products. Moreover, it has also differentiated its in-house products and brands in such a way that it can reach all the segments of the market, this strategy helps Sainsburys to capture a large share of the household market. Sainsburys differentiation strategy helped it to come up with different lines of similar products. The differentiation was done on the basis of the cost and the product quality. The product differentiation was done in several stages. The company came up with a basic product line followed by superior quality products. The basic line of product is cost effective but maintains the quality. With the higher line of product the company brought in higher variants of similar by adding value to it. The higher variants not only has added value in respect of the quality of the product, but also the product packaging and marketing. For the basics, Sainsburys has adapted minimalistic packaging cost and marketing structure. The differentiation strategy is really important for an organisation aiming at growing its market share. The differentiation strategy helps the organisation to provide products and services different from those offered by its competitors in terms of quality, uniqueness and value addition. The differentiation strategy helps the organisation to increases its market share and thus enabling it to enjoy a cost advantage. Therefore, cost function can be termed as a function of product differentiation. (Johnson, G. et. al, 2002) Sainsburys product differentiation has enabled it to gain a major market share of the lower and the middle income group. It has introduced product differentiation in all the product lines offered by it, may it be, dairy products, meat and poultry products, fresh and packaged vegetables and fruits, spices, household products etc. For e.g. The oatmeals and cornflakes comes in several variants. The range of basic oatmeals and cornflakes range between 48 pence and 64 pence whereas the higher end product variants of the similar line range between 150 190 pence. The above example, helps us to understand not only the product variants and product differentiation but also that the company follows a focused differentiation strategy. In order, to aim the higher strata of the society, the company came up with products with better packaging, added quality and thus adding on to the value of the products. Moreover, the higher variants not only come up with added quality but also innovative products which them to differentiate from the similar kind of products offered by its competitors. For e.g. Sainsburys raisin-filled oatmeals, raspberry-filled oatmeals differentiate its products from the other competitors The company with its own differentiated line of products comes up with several other products offered by leading retailers and therefore, gives its customers a varied choice of products. The varied products attract customer base and thus enabling it to increase the market share. In addition, the company has incorporated several innovative ideas in its supermarket model like petrol stations, fresh bakery items, fresh meat, cooked meat and fish selling counters which makes them different from its competitors. This idea has not only differentiated them from their competitors but as helped them to act according to their value of providing healthy and quality foods. The different competitive and strategies in order to be competitive and gain the market share has enabled it form a hybrid strategy comprising of the main elements of low pricing, differentiation and focussed differentiation strategy. All these strategies merged together helped the business grow at a faster pace. LOCATIONAL STRUCTURAL STRATEGIES Since early period, Sainsburys built in the concept of departmentalisation in its stores. Its early food stores were divided into 6 departments, dairy products, ham and bacon, poultry and game, fresh meats, cooked meat and groceries. It was an unique concept at the 1900s which shows its innovative thinking from its inception. The use of mosaic floors, marbled topped counters, uniformed staffs, white tiles background not only enabled to have a comprehensive and similar looks through the stores but also shows their innovativeness and capability of thinking ahead than others.(The Sainsbury Archive; Accessed on 25.05.2010; The Design Journal 1966. Further, a companys store location plays an important role in its business. In the case of Sainsburys, it has always chosen a central position in the parade for a larger display and better connectivity to overcome the constraints relating to limited vehicles for home delivery. It was the first retail store chain to bring in home delivery service in UK. All these strategies helped the business to grow and become a pioneer in its field. The organisation also pioneered in the self service supermarket in UK between 1950s and 1960s. All these add up to the locational and structural strategies adapted by the company since its inception to be a market leader. ORGNISATIONAL STRUCTURAL STRATEGY The organisational upbringing of Sainsburys has been pretty different from that of its competitor e.g. Tesco. Unlike, Tesco, Sainsburys relied on the family mode of business. The company went public in 1973; however, the major shareholding has always been within the family till 1990s when the major shareholdings by the family were divested following a strategic downfall. Unlike Tesco, which was mostly depended on the market wealth and capital generated from the equity market for its expansion and growth, Sainsbury mainly focussed at the inner source of capital and reserves for its expansion. Following the diversification of the shareholdings in 1995, the major share holding is with QIA, a foreign investment company. The companys early strategy of not involving market equity capital has helped the organisation to maintain cohesiveness in the organisational activities and has enabled the initial growth and expansion. Employee employer relationshiphas always been an advantage for the company. The company has always given preference to the organisational and personal requirements of its employees. The employee policy designed by the organisation has helped it in its success. It is rated as one of the leading recruiters of UK at present. It has a very large yet strong organisational base which has evolved with time. The organisational structure of the company has always been subjected to a change. The hierarchal set-up during the early stages evolved into a much flatter organisational set up with time and changing society. This proves the adaptive strategy followed by the company. Supplier retailer policyadapted by Sainsburys since its inception, has helped the organisation to enjoy a lower cost and better quality. The supplier management strategy is very essential for a growing transnational organisation like Sainsbury. The company has always aimed at maintaining a good relationship with supplier, thus enabling them to be a market leader. However, the companys downfall during the early 1990s has been an effect of a major relationship difference between the reailer and supplier. Building up a supplier-retailer relationship and maintaining it is the role of a successful organisation. STORE FORMATS The company adapted the hyper-market policy during the early 1970s following its competitors. The company operated this format of stores through bigger outlets (over 45000 sq.ft ) and varied range of products under the brand Sainsbury Savacentre. But, later it got incorporated into the main channel being a part of the integrated sales and back office operations unlike, Tesco. The product distribution followed the policy of equal distribution between groceries and non-food items as followed by Tesco. The supermarket (average of 34000 sq.ft) the hypermarket store format only differ in the size and the quantity of product variants offered by the two types of stores. The company also followed the concept of convenience stores followed by the other food retailers like Tesco, The Cooperative store, etc. This store format is also be termed as local store and is meant for a local market, much smaller in size (between 2000-6000 sq.ft) with limited variants offering top-ups and go and grab deals. Asda, did not follow the concept of convenience stores. The store formats helped us analysing the customer serving strategy and the customer base of the organisation. FRANCHISING Unlike its competitors, Sainsburys does not involve franchising. Tesco recently has planned to go for a franchising in order to enter further into this multi-billion dollar market of retail groceries. Its considering the franchising scope followed the step taken by its French competitor Carrefour. Franchising will help Sainsbury to reach a broader customer base and reach further corners which is no possible through direct acquisitions and mergers. Further, acquisitions involve managerial constraints which can be easily avoided in case of franchising. MERGER ACQUISITION In line to the discussion Mergers and acquisitions it can be rightly pointed out that the company is rightly catching up the growing model of business UK and worldwide. Its acquisitions of Bell supermarkets which operate in north east England and a merger with Shell stations will help it to grow the number of convenience stores and petrol stations in UK. (Food Drink Europe.com http://www.foodanddrinkeurope.com/Retail/Sainsbury-s-image-takes-another-knock). The company went for a merger with Shaws Supermarket Inc. a leading super-market chain in U.S and later acquires the company accompanied by its acquisition of Star Markets. These acquisitions have helped Sainsburys to control competition in the foreign market. However, a detailed analysis has pointed out that the business acquisition decisions and deals have not been of much success and therefore, affecting its worldwide turnover. OTHER MODES OF OPERATION Sainsbury has started providing financial services through Sainsbury Bank which is joint venture between Sainsbury and Lloyds Banks. Its property management team is helping its property management business to reach new heights. The company has started diversifying its portfolio and its activities bt it will take time in attaining the aimed success. COMPETITORS Sainsbury is the UKs third largest food retail chain trailing behind Tesco and Asda. TESCO, the leading retail food chain has started its operation since 1919 as a surplus grocery store in East End of England under Jack Cohen. The first TESCO store came into existence in 929 after being a limited company in 1924. Tescos growth was mainly through acquisitions along with organic growth. During early 1970s TESCO group owns around 700 stores nationwide. Tesco was the pioneer in offering the customers several facilities like customer rewards and club points which were previously unheard of. It introduced in internet shopping for the customers that help in growing the business and building up its brand image among its customers. During 1980s and 1990s it went through couple of successful takeovers including that of William low, a Dundee based firm competing with Sainsbury. In 1997, Tesco also went into a business alliance with esso in order to get a lease of its several petrol filling stations. In July 2001 Tesco became involved in Internet grocery retailing in the USA when it obtained a 35% stake in GroceryWorks.In 2002 Tesco purchased 13 HIT hypermarkets in Poland. It also made a major move into the UK convenience store market with its purchase of T S Stores, the owner of 870 convenience stores in theOne Stop, Dillons and Day Nite chains. At present, Tesco is leading the UK retail food chain though its 27 hypermarkets all over UK. Tesco and Sainsbury growth structure mainly differs. Tesco has mainly focused on the growth through takeovers, acquisitions and mergers on the other hand; Sainsburys growth was mainly based on organic growth. Growth through takeovers, acquisitions and mergers has helped Tesco to gain better and more market knowledge, technological knowledge and management knowledge. Whereas, organic growth for Sainsburys has taken through a longer period of time and through the evolution of the own management and acquired knowledge. On analysing, the growth factors, it can be pointed out that the growth strategy adapted by Sainsbury has been a major reason for its slower growth rate. ASDA STORES LIMITED was founded asAssociated Dairies Farm Stores Limitedin 1949 in Leeds. However, the present name of Asda came into existence following a merger with Asquith chain of three supermarkets and Associated Dairies in 1965. The company however, parted with its dairy department on a management buyout. The company followed the growth policy similar to that of Tesco in order to grow and provide different kinds of products. The newly focused food retail group in order to expand its activities beyond the north England, went for buyout in the south where it took over the large format stores ofGateway Superstoresin 1989. On 26 July, 1999 Asda was purchased by the US retail-giant Wal-Mart. Since then the company, has operated as a subsidiary of the Wal-Mart group. However, Asdas management has gone though a restructuring when it was sold to a Leeds based investment subsidiary of Wal-Mart, Corinth Services Limited in 2009. Asdas marketing campaigns has always been in limelight. The major strategic similarity between Asda and Sainsbury is that, both the organisations aim at low pricing. Therefore, the low pricing strategy that helped Sainsbury, to attract more customers and a major share in the market needs to be revised. Moreover, being an US subsidiary, it also followed several managerial set-ups those were previously unknown. A global growth of the Wal-Mart group, helped Asda gain its position as the second largest food-retailer in UK. Both Tesco and Asda have structural, organisational and managerial differences with Sainsburys but on comparing the whole set-up, it can be concluded that Tesco and Sainsburys have some structural similarity. On the lines of structural strategy, it can be concluded that Tesco follows a more diversified activities by using several variants like, Express, Metro, superstore, Extra and Homeplus which helps them to reach larger number of customers with different kinds of variants.   CONCLUSION While concluding this report, it can be said Sainburys has several strategical differences with its leading market leaders Tesco and Asda, however, it has started working on its set back and is currently responding to the organisational and social needs in a better way. Instead of a sluggish growth of the economy post 2008 it has recorded an increase in the total turnover thus, showing its organisational and managerial strength. On analysing the retail food market and the activities of the major market leaders, it can be predicted that Sainsburys will enjoy a fast and steady growth following the path of organisational mergers, takeovers and most recently franchising. All these will help Sainsbury to grow at a faster pace. All the discussions, that have been done in this report are not absolute and are subject to limitations regarding the information, word limit and time.

Personality Theories Essay -- essays research papers Freud Psychology

Personality Theories   Table of Contents Freud Jung Adler Rogers Maslow Humanistic strengths and weakness Psychodynamic strengths and weakness Some similarities of both Web Resources Freud Biography Biography Sigmund Freud was born May 6, 1856, in a small town -- Freiberg -- in Moravia. His father was a wool merchant with a keen mind and a good sense of humor. His mother was a lively woman, her husband's second wife and 20 years younger. She was 21 years old when she gave birth to her first son, her darling, Sigmund. Sigmund had two older half-brothers and six younger siblings. When he was four or five -- he wasn't sure -- the family moved to Vienna, where he lived most of his life. A brilliant child, always at the head of his class, he went to medical school, one of the few viable options for a bright Jewish boy in Vienna those days. There, he became involved in research under the direction of a physiology professor named Ernst Brà ¼cke. Brà ¼cke believed in what was then a popular, if radical, notion, which we now call reductionism: "No other forces than the common physical-chemical ones are active within the organism." Freud would spend many years trying to "reduce" personality to neurology, a cause he later gave up on. Freud was very good at his research, concentrating on neurophysiology, even inventing a special cell-staining technique. But only a limited number of positions were available, and there were others ahead of him. Brà ¼cke helped him to get a grant to study, first with the great psychiatrist Charcot in Paris, then with his rival Bernheim in Nancy. Both these gentlemen were investigating the use of hypnosis with hysterics. After spending a short time as a resident in neurology and director of a children's ward in Berlin, he came back to Vienna, married his fiancà ©e of many years Martha Bernays, and set up a practice in neuropsychiatry, with the help of Joseph Breuer. Freud's books and lectures brought him both fame and ostracism from the mainstream of the medical community. He drew around him a number of very bright sympathizers who became the core of the psychoanalytic movement. Unfortunately, Freud had a penchant for rejecting people who did not totally agree with him. Some separated from him on friendly terms; others did not, and went on to found competing schools of thought. Freud emigrated to England j... ... capacity for a psychologically healthy human evolutionary process. These theorists are upbeat and positive about life and seem to have genuine empathy and liking for their fellow humankind. There were also some large theoretical differences observed among the theorists. 1. When is personality fixed ? Adler argued basic personality was fixed at age five, and Jung thought that the thirties and forties were an important time of intense personality development. 2. What is the goal of the personality theorist ? Cattell was in the traditional "understand and control" camp of psychology, while Carl Rogers argued it is pathological to try to control other peoples behavior. 3. What is the role of the client during treatment ? Here, we have seen somewhat of an evolution in treatment philosophy. Early theorists such as Jung and Freud were very directive in their therapy, and controlled much of the interpretations of thoughts and behaviors. More recently, theorists have tried to make the cl ient a full partner in the research, even to the point of having the client suggest solutions. Web Resources www.webster.edu www.mccc.edu www.reference.com www.wynja.com www.rpi.edu classweb.gmu.edu

Essays --

Enviro Geo 1 CP: Take Home Final Exam Unit One Review: Biodiversity A. What is biodiversity? Biodiversity is the variety of life and all natural processes found on Earth. B. Why is global biodiversity decreasing? The main cause of the decrease in global biodiversity is the result of human activity. This means habitat destruction, hunting, invasive species, pollution, and climate change that threaten the extinction of species. C. How can we protect and preserve biodiversity? One way we can preserve and protect biodiversity is through the law. Right now, legal actions are being made to save species from extinction. For example, the Endangered Species Act (ESA) forbids the government and private citizens from harming listed endangered and threatened species or their habitats. Also Species Survival Plans (SSP) are made to manage, protect, and reintroduce threatened and endangered species by putting them into captivity until safe to be released. D. How do energy and nutrients move through ecosystems? a. (reference food webs/food chains/energy pyramids) Energy and nutrients move throughout the ecosystem through the consumption of other creatures. This transfers energy to the next consumer, however it transfers smaller and smaller amounts of energy as the chain of consumers grows larger. E. THE BIG QUESTION: Why is it important to protect biodiversity? Biodiversity increases an ecosystem’s productivity; meaning all species play huge roles in it, especially humans since they have the ability to completely change nature. Humans heavily depend on plants and animals and benefit directly from diverse ecosystems: plants, clean water, oxygen, food, and fertile land all come from healthy bio... ...ding then transforming into Industrial agriculture with the advancements of technology. B. How can we produce enough food for a rapidly growing population while sustaining our ability to produce it? Our world today faces the problem of running out of space. We need not only land to live on, but also land to cultivate crops. Already forty percent of Earth’s land is used for farming purposes, and with a population over seven billion and still rapidly growing, the main problem is, There isn’t enough room. So the price of food is raising. Right now, one billion people are suffering from hunger, they can’t afford the food that is taking up living space, so if we cut down more forests and destroy nature, will the prices go down? The best way to produce enough food for our population as of now is to use our resources more efficiently and reduce our wastes of food. Essays -- Enviro Geo 1 CP: Take Home Final Exam Unit One Review: Biodiversity A. What is biodiversity? Biodiversity is the variety of life and all natural processes found on Earth. B. Why is global biodiversity decreasing? The main cause of the decrease in global biodiversity is the result of human activity. This means habitat destruction, hunting, invasive species, pollution, and climate change that threaten the extinction of species. C. How can we protect and preserve biodiversity? One way we can preserve and protect biodiversity is through the law. Right now, legal actions are being made to save species from extinction. For example, the Endangered Species Act (ESA) forbids the government and private citizens from harming listed endangered and threatened species or their habitats. Also Species Survival Plans (SSP) are made to manage, protect, and reintroduce threatened and endangered species by putting them into captivity until safe to be released. D. How do energy and nutrients move through ecosystems? a. (reference food webs/food chains/energy pyramids) Energy and nutrients move throughout the ecosystem through the consumption of other creatures. This transfers energy to the next consumer, however it transfers smaller and smaller amounts of energy as the chain of consumers grows larger. E. THE BIG QUESTION: Why is it important to protect biodiversity? Biodiversity increases an ecosystem’s productivity; meaning all species play huge roles in it, especially humans since they have the ability to completely change nature. Humans heavily depend on plants and animals and benefit directly from diverse ecosystems: plants, clean water, oxygen, food, and fertile land all come from healthy bio... ...ding then transforming into Industrial agriculture with the advancements of technology. B. How can we produce enough food for a rapidly growing population while sustaining our ability to produce it? Our world today faces the problem of running out of space. We need not only land to live on, but also land to cultivate crops. Already forty percent of Earth’s land is used for farming purposes, and with a population over seven billion and still rapidly growing, the main problem is, There isn’t enough room. So the price of food is raising. Right now, one billion people are suffering from hunger, they can’t afford the food that is taking up living space, so if we cut down more forests and destroy nature, will the prices go down? The best way to produce enough food for our population as of now is to use our resources more efficiently and reduce our wastes of food.

Production Cost Analysis

Production Cost Analysis: Economic Analysis as a tool for Process Development: Harvest of a High Cell-Density Fermentation For the biotech industry to be profitable, it must consider economics along with process recovery, purity, and product quality. The number of biotechnology-based human therapeutic products in the late-stage pipeline, and the average cost to commercialize a biotech product, have steadily increased. 1,2  This has required biotech companies to use economic analysis as a tool during process development and for making decisions about process design.Process development efforts now aim to create processes that are economical, as well as optimal and robust. 3-6 |[pic] | Novais et al. recently performed an economic comparison of conventional versus disposables-based technology for the production of an antibody fragment from an  E. coli  fermentation. 7The authors concluded that the capital investment required for a disposables-based option is substantially reducedâ €”less than 60% of that for a conventional option.The disposables-based running costs were 70% higher than those of the conventional equivalent. However, the net present value of the disposables-based plant was found to be positive and within 25% of that for the conventional plant. More recently, the economic feasibility of using disposables has been examined for facility design, highlighting the need to perform a thorough analysis for the application at hand. 8,9 |[pic] | |Quick Recap |Harvesting biotechnology products from cell culture or fermentation process streams is often performed by a combination of several-unit operations. Centrifugation, depth filtration, and microfiltration are commonly used. In a recent publication, different harvest approaches were investigated for a case study involving recovery of a therapeutic protein from  Pichia pastoris  fermentation broth. 10 |[pic] | |Figure 1. Schematics for options 1 and 2 | that are examined in this economic analysis | This article, the seventh in the â€Å"Elements of Biopharmaceutical Production† series, describes how economic analysis can be used to compare different processes and assist in designing an â€Å"economical† option. BACKGROUND |[pic] | |Table 1. Comparison of process performance | |for option 1 and option 2. Adapted from | |reference 10. | Figure 1 illustrates the two options that will be examined in this economic analysis.Option 1 involves a three-unit operation harvest process: centrifugation, followed by depth filtration, and completed with a concentration and buffer exchange via tangential flow ultrafiltration–diafiltration (UF–DF). Option 2 involves a two-unit operation process: microfiltration followed by a concentration and buffer exchange via tangential flow filtration (UF–DF). Table 1 presents a comparison of process performance under the two options. Under optimal conditions, both options can deliver the desired product recovery (> 80% ), harvest time (

Marketing †Brand Essay

1. Executive Summary This report provides an analysis of the international marketing environment of fast- food industry in US and evaluates the international marketing activities of McDonald’s, which is considered a key player. Firstly, the PEST framework is used to analyse external environmental factors influencing the industry. The Porter’s Five Forces framework is utilised to analyse the competitive rivalry within the industry, and its attractiveness for potential new entrants. Key players and their positioning was identified using a strategic-groups model, mapping brand value against global presence. Based on the industry analysis, McDonald’s was identified as the market leader and an examination of their market entry modes was carried out. Their international marketing mix was evaluated to identify success factors, drawing focus upon international branding, international distribution, international communications and standardisation vs. adaptation of the service offering. An internal analysis identified the firm’s strengths and weaknesses whilst an external analysis considered the opportunities and threats posed to McDonald’s as market leader. Finally, short and long term strategic and tactical recommendations were outlined in order to enhance McDonald’s competitive position within the global fast-food industry. These recommendations are both realistic and well supported, based upon the evaluation of their current strategy and activities. 3 2. Introduction The global fast-food industry is dynamic with a variety of competitors. This report identifies the current factors influencing the industry before specifically focusing on McDonald’s Corporation, who is considered as the current global leader. Based on this analysis, the report identifies several areas for improvement and makes strategic recommendations for McDonald’s to enhance its position. 4 3. International Marketing Analysis? 3. 1. PEST Analysis and Environmental Impact Matrix (Macro Environment) The following framework provides an analysis of the external international marketing environment, relating to the fast-food industry: *These ratings are based on the authors’ subjective judgement 5 Political Global fast-food firms must comply with country-specific political requirements, such as national minimum wage regulations, affecting costs. Hygiene and quality regulations vary significantly between nations and may influence the quality of products provided by fast-food outlets (FDA, 2012). Different countries set varying regulations regarding labelling and packaging. For instance the UK government pressured firms to promote healthy eating, and several fast-food companies have voluntarily included calorie information on their products (BBC, 2011). Economic Despite the 2008 recession and the resulting decrease in consumer confidence across the globe, average consumer fast-food spending has increased (The Economist, 2010) due to convenience and low-cost. Consumers are still looking for the convenience of eating out, but are drawn to the low prices of fast-food over table-service restaurants (Financial Times, 2009). Many fast-food chains have capitalised upon the recession by introducing new deals in addition to their already low-priced menus. Between 2005 and 2010, Latin America, Asia Pacific, Eastern Europe and Russia accounted for 89% of global growth in the fast-food industry (Passport, 2012). Social Increasing consumer awareness about healthy lifestyles has pressured many fast-food players to offer healthier selections within their menus (BBC, 2011). This includes offering low- calorie options and salads alongside burgers, and prominently displaying nutritional content. The fast-food industry has also been heavily criticised for targeting young children by including toys within children’s meals (New York Times, 2003). Recently in the UK, the broadcasting of ‘junk food’ adverts during commercial breaks in children’s programmes has been banned (BBC, 2007), following increasing childhood obesity. 6 Technological As consumer familiarity with new technology increases, fast-food firms are using channels such as social media websites to engage with their customers. For example, McDonald’s is the 9th most ‘liked’ brand on Facebook (CNBC, 2012) (Appendix 1). Additionally, digital displays allow outlets to change their menus efficiently, to suit the time of day (NRA, 2012) and self-service ordering points have increased service speed and reduced labour costs. Environmental Environmental lobbyists and governments are pressuring the fast-food firms to become more ‘green’ (Greenpeace, 2012). Rainforests are being destroyed to increase the area of land for beef production to meet the demand for beef-burgers (Kline, 2007). Recycling is a prominent global issue and in response, McDonald’s adopted recyclable packaging. Increased environmental awareness among consumers provides firms with a significant opportunity to position themselves as ‘green’ to garner customer loyalty (National Pollution Prevention Centre for Higher Education, 1995). Legal Global operators must comply with country-specific regulations and legislation. This includes opening hours, taxation and employment regulations such as the National Minimum Wage Regulations (1999) in the UK. Firms are often required to meet national food standards such as the requirements set out by the US Food and Drug Administration (FDA). Furthermore, authorities are becoming increasingly worried about childhood obesity associated with the industry (WHO, 2012) and have tightened regulations regarding targeting children. 7 3. 2. Porter’s Five Forces – Fast-food Industry This framework identifies the competitive forces affecting the fast-food industry: THREAT OF NEW ENTRANTS Industry dominated by global chains with very high brand values High brand awareness and loyalty. Retaliation from strong incumbent players Low initial capital outlay Low fixed costs Economies of scale POWER OF SUPPLIERS Many undifferentiated suppliers Fast-food chains have high purchasing power due to high volume COMPETITIVE RIVALRY IN THE FAST-FOOD INDUSTRY Fragmented market Low exit costs Low margin, high turnover – drives competition High brand power POWER OF BUYERS High product differentiation Target many segments High price sensitivity THREAT OF SUBSTITUTIONS Alternative foodservice options Ready meals and home cooking ingredients Main players quite differentiated No switching costs. Convenience is the value adding component which is difficult to substitute 8 Threat of New Entrants – Moderate The industry is dominated by a number of international Quick Service Restaurant (QSR) chains, including McDonald’s, Burger King, Pizza Hut, KFC and Domino’s (Datamonitor, 2010). These global brands are extremely valuable, boasting strong customer loyalty and recognition; indicating consistent quality and service. Key players including McDonald’s, adapt their marketing orientation to suit local cultures and social norms (Datamonitor 2010), strengthening the brand and avoiding consumer alienation. New players struggle to compete with incumbent firms, as their brands are unknown and advertising campaigns are expensive. Established chains have the resources to retaliate aggressively through pricing promotions, deterring new players from entering the marketplace. New entrants lack economies of scale, which existing chains have developed over time, and utilise to remain competitive in this low-margin, high-turnover industry. However, social media websites have evened the playing field in terms of marketing communications; they allow firms to efficiently communicate their message inexpensively. Initial capital outlay and fixed costs are low, encouraging new entrants (Datamonitor, 2012). Threat of Substitutions – Moderate Substitutes are readily available: food can be purchased almost anywhere, through foodservice or retail. However, convenience is the value-adding component of the service which reduces the threat of substitutes. Consumers can cook at home cheaply, but this lacks the convenience element which people require nowadays. Ready-meals are therefore a more substantial threat, competing with fast-food on price as well as convenience. (Datamonitor, 2012). If you are ‘on-the-go’ however, without access to a microwave, QSRs are almost uncontested if you want a hot meal in a short timeframe. With many differentiated players (Datamonitor, 2012) and varying service offerings, customers can select the best value option. 9 Competitive Rivalry – Strong Although McDonald’s and Burger King almost hold a duopoly in the ‘burger segment’, the market as a whole is fragmented with many global chains and independent operators (Datamonitor, 2012). Competition is primarily cost-based with firms continuously investing in their production and service processes to undercut competitors. Exit costs are low and capacity is easily increased through franchising. Branding is the most prevalent weapon for competing; McDonald’s spent over $650 million on global advertising in 2009 (Datamonitor, 2012). Power of Buyers – Moderate Figure 1 shows sales and growth of the top ten fast-food companies (Euromonitor International, 2012). The market’s competitiveness increases buyer power and customers are price sensitive (Muhlbacker et al., 1999) with no switching cost between providers. However, key players attempt to reduce buyer power, offering a product range which caters for the entire demographic, rather than one specific segment. For example, McDonald’s target children with ‘Happy Meals’ and professionals with breakfast options and take-away coffee (McDonald’s, 2012). Firms are increasingly promoting differentiated products: McDonald’s â€Å"Big Mac†, Burger King’s â€Å"Whopper† and offers such as Domino’s â€Å"Two for Tuesday† campaign. High brand value and customer loyalty has reduced buyers’ bargaining power. The 2011 ranking of the top 100 brands indicates McDonald’s’ success (Interbrand, 2011). 10 Power of Suppliers – Moderate Figure 1: Top Ten Fast-food Companies by Growth. With a competitive global supply chain, supplier power is limited. â€Å"17,500 British and Irish farms that provide us with top-quality ingredients. † (McDonald’s – UK, 2012) These farms supply Tier 1 suppliers who transform raw materials into food items, ready for McDonald’s to cook and serve. Due to the number of suppliers in the industry, it is difficult for them to leverage significant power over fast-food firms. The supply of soft-drink is dominated by Coca-Cola (McDonald’s and Burger King) and Pepsi (KFC) due to their global distribution channels. Additionally, Coca-Cola and Pepsi provide fast-food chains with equipment such as refrigerators and drink dispensers. This markets their brand and aligns it with fast-food brands, reducing costs for customers, which would otherwise be passed onto them (SMO, 2011). 11 3. 3. Identification of Key Players and their Competitive Position 3. 3. 1. Strategic Groups The following framework identifies the key players in the international fast-food industry and identifies which firms are in the most direct competition with each other: Brand value and the chain’s global presence (Appendix 2) are significant indicators of overall performance. The above strategy-group chart maps the firms’ performance. Brand value (US$) is plotted against the chain’s global presence, in terms of the number of outlets worldwide. The strategy-grouping shows that McDonald’s has the 12 highest global market value and revenue in the industry, despite Subway having more international outlets. 4. Key Player – Evaluation of International Activities 4. 1. Identification of Key Player Based upon their global presence, market value and revenue, McDonald’s is identified as the key player in the industry. 4. 2. McDonald’s International Market Entry Modes In 1940, McDonald’s operated only one QSR but today has restaurants at 33,000 locations in 119 countries. McDonald’s utilises a variety of international market entry modes for rapid expansion: sole ventures, franchising, master franchising and joint ventures. 15% of McDonald’s branded restaurants are operated as sole ventures. This involves a significant capital commitment but allows the highest degree of control.? Most restaurants are operated as franchises, allowing rapid expansion without high capital requirements. Franchising has also allowed McDonald’s to benefit from local knowledge, demonstrated by the menu differences by country. However, McDonald’s maintains control over crucial aspects such as the supply chain, marketing mix and staff training. Master Franchising introduces a third party as a ‘go-between’ to overcome geographical and cultural barriers. The combination of the master franchisee’s local knowledge and McDonald’s brand and model has been a successful formula, allowing expansion whilst maintaining significant control. McDonald’s has also expanded internationally through joint ventures. Again, this allows for rapid expansion and utilises the knowledge of firms in closely-linked markets. Since 13 Both firms invest equity in the project, there is a lower financial risk for both parties; however, many joint ventures end in hostility and conflict due to firms taking advantage of one another (Brown and Harwood, 2010).